Document:

Amended Series C Loan - Exhibit 10.5

Exhibit 10.5

MODIFICATION AGREEMENT

THIS MODIFICATION AGREEMENT (this "Agreement") is entered into as of September 24, 2014 by and between SERIES C, LLC ("Lender") and COLE OPERATING PARTNERHIP V, LP ("Borrower'').

PRELIMINARY STATEMENT

A.     Borrower is indebted to Lender as evidenced by that certain Subordinate Promissory Note dated March 18, 2014 in the original principal amount of $10,000,000 (the "Note").

B.     The unpaid principal balance of the Note as of the date hereof is $0.00.

C.     Lender and Borrower have agreed to modify the Note as set forth in this Agreement.

AGREEMENT

For good and valuable consideration, the receipt  and adequacy of which is hereby acknowledged, the parties agree as follows:

1.Accuracy of Preliminary Statement. Borrower acknowledges the accuracy of the above Preliminary Statement.

2.Note Modification.

(a)In order to increase the maximum principal amount of the Note from $10,000,000 to $60,000,000, the reference to $10,000,000.00 on the first line of the first page of the Note is hereby amended to $60,000,000.00 and the first full paragraph of the first page of the Note is hereby amended and restated in its entirety as follows:

FOR VALUE RECEIVED, Cole Operating Partnership V, LP, a Delaware limited partnership (“Borrower”), hereby promises to pay to the order of Series C, LI.C, an Arizona limited liability company (“Lender”), at the offices of Lender located at 2325 East Camelback Road, Suite 1100, Phoenix, AZ 85016, the principal amount of $60,000,00, together with interest on the principal balance outstanding hereunder, from (and including) the date of disbursement until (but not including) the date of payment, at a per diem rate equal to the Stated Interest Rate specified below or, the extent applicable, the Default Interest Rate specified below, in accordance with the following terms and conditions:

(b)The Note is hereby further modified to add the following legend at the top of the first page thereof:

The indebtedness evidenced by this instrument is subordinated to the prior payment in full of the Lender Debt (as defined in the Subordination Agreement hereinafter referred to) pursuant to, and to the extent provided in, the Amended and Restated Subordination Agreement dated as of September ___, 2014 among Cole Credit Property Trust V, Inc., Cole Operating Partnership V, LP, Series C, LLC and JPMorgan Chase Bank, N.A., as administrative agent.

(c)The Note is hereby modified by amending and restating the second sentence of Section 8 as follows:
The term “Credit Facility” shall mean that certain credit facility in an amount not to exceed $750,000,000 pursuant to that certain Credit Agreement dated as of April 25, 2014 by and among the Borrower, as borrower, the lenders from time to time that are parties thereto, and JPMorgan Chase Bank, N.A., as administrative agent, and the other loan documents executed and delivered in connection therewith (each as amended, supplemented or replaced).

Borrower acknowledges and agrees that: (i) except to the extent expressly provided for in this Agreement, the Note is not modified or amended by this Agreement and shall remain in full force and effect and this Agreement shall not constitute a waiver of any rights or remedies in respect of the Note; (ii) the Note (as modified

by this Agreement) and all rights, title, interest, liens, powers and privileges by virtue thereof are hereby reaffirmed, ratified, renewed and extended and shall be and continue to be in full force and effect to secure the payment of the indebtedness evidenced by the Note  and any and all restatements, renewals, modifications, amendments, increases and/or extensions thereof; and (iii) no payment, discharge or release of any collateral securing the Note is intended hereby and all liens on all such collateral shall continue in full force and effect, unimpaired from the date of 1heir execution and perfection.

3.Miscellaneous.    The provisions of this Agreement shall be deemed severable. If any part of this Agreement shall be held unenforceable, the remainder shall remain in full force and effect, and such unenforceable provision shall be reformed by such court so as to give maximum legal effect to the intention of the parties as expressed therein. Each of the parties hereto agrees to sign such other and further documents, and to take such other actions, as may be reasonably appropriate to carry out the intentions expressed in this Agreement, including, without limitation, documentation in respect of the reaffirmation and confirmation of liens, and the priority of such liens, on the collateral, if any, for the loan evidenced by the Note. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. This Agreement, the Note and any other instruments referred to herein, constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understanding, both written an oral, of the parties and any of them with respect to the subject matter hereof, if any.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date set forth above.

SERIES C, LLC, an Arizona limited liability company

By: /s/ Daniel T. Haug            
Printed Name: Daniel T. Haug
Its: Authorized Officer

COLE OPERATING PARTNERSHIP V, LP, a Delaware 
limited partnership

By:    Cole Credit Property Trust V, Inc., a Maryland
corporation, its general partner

By: /s/ Simon J. Misselbrook        
Printed Name: Simon J. Misselbrook
Its: Chief Financial Officer and TreasurerWG Assumed Loan Pool 1 - Exhibit 10.6

Exhibit 10.6

LOAN AGREEMENT

FIXED RATE

BETWEEN

WOOD 1031 LLC, A MICHIGAN LIMITED LIABILITY COMPANY

AS BORROWER

AND 

CAPMARK BANK, A UTAH INDUSTRIAL BANK

AS LENDER

DATED AS OF MARCH 29, 2007

Loan Number: 56533

# 1155891 v2-  Loan Agreement- Walgreens Pool I

	
			
	Table of Contents

	 
	 
	Page

	 
	 
	 

	ARTICLE 1 DEFINED TERMS AND CONSTRUCTION GUIDELINES 
	1

	1.01
	 Defined Terms 
	1

	1.02
	 General Construction 
	1

	1.03
	 Intentionally Omitted 
	1

	1.04
	 Property 
	1

	ARTICLE 2 MAXIMUM LOAN AMOUNT; PAYMENT TERMS; ADVANCES;
	 

	 
	DEFEASANCE 
	2

	2.01
	 Commitment to Lend 
	2

	2.02
	 Calculation of Interest 
	2

	2.03
	 Payment of Principal and Interest
	3

	2.04
	 Payments Generally 
	4

	2.05
	 Prepayment Rights 
	6

	ARTICLE 3 CASH MANAGEMENT 
	12

	3.01
	 Intentionally Omitted 
	12

	ARTICLE 4 ESCROW AND RESERVE REQUIREMENTS 
	12

	4.01
	 Creation and Maintenance of Escrows and Reserves 
	12

	4.02
	 Tax Escrow 
	14

	4.03
	 Insurance Premium Escrow 
	15

	4.04
	 Immediate Repair Escrow Account 
	16

	4.05
	 Replacement Reserve Account 
	17

	4.06
	 TI/LC Reserve Account
	17

	ARTICLE 5 COMPLETION OF REPAIRS RELATED TO RESERVE
	 

	 
	ACCOUNTS; CONDITIONS TO RELEASE OF FUNDS 
	19

	5.01
	 Conditions Precedent to Disbursements from Certain Reserve Accounts 
	19

	5.02
	 Waiver of Conditions to Disbursement
	21

	5.03
	 Direct Payments to Suppliers and Contractors 
	21

	5.04
	 Performance of Reserve Items 
	21

	ARTICLE 6 LOAN SECURITY AND RELATED OBLIGATIONS 
	23

	6.01
	 Security Instrument and Assignment of Rents and Leases 
	23

	6.02
	 Assignment of Property Management Contract 
	23

	6.03
	 Assignment of Operating Agreements 
	23

i

	
			
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	(continued)

	 
	 
	Page

	 
	 
	 

	6.04
	 Pledge of Property; Grant of Security Interest
	23

	6.05
	 Environmental Indemnity Agreement
	23

	6.06
	 Guaranty of Borrower Sponsors 
	23

	ARTICLE 7 SINGLE PURPOSE ENTITY REQUIREMENTS 
	24

	7.01
	 Commitment to be a Single Purpose Entity 
	24

	7.02
	 Definition of Single Purpose Entity 
	24

	7.03
	 Lender's Acknowledgments
	27

	7.04
	 Acknowledgment; Conflicts 
	28

	ARTICLE 8 REPRESENTATIONS AND WARRANTIES 
	28

	8.01
	 Organization; Legal Status 
	28

	8.02
	 Power; Authorization; Enforceable Obligations 
	28

	8.03
	 No Legal Conflicts 
	28

	8.04
	 No Litigation 
	29

	8.05
	 Business Purpose of Loan 
	29

	8.06
	 Warranty of Title 
	29

	8.07
	 Condition of the Property 
	29

	8.08
	 No Condemnation 
	30

	8.09
	 Requirements of Law 
	30

	8.10
	 Operating Permits 
	30

	8.11
	 Separate Tax Lot 
	30

	8.12
	 Flood Zone 
	30

	8.13
	 Adequate Utilities 
	30

	8.14
	 Public Access 
	30

	8.15
	 Boundaries 
	30

	8.16
	 Mechanic Liens 
	31

	8.17
	Assessments
	31

	8.18
	 Insurance 
	31

	8.19
	 Leases 
	31

	8.20
	 Management Agreement 
	32

	8.21
	 Financial Condition 
	32

ii

	
			
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	(continued)

	 
	 
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	8.22
	 Taxes 
	32

	8.23
	 No Foreign Person 
	32

	8.24
	 Federal Regulations 
	32

	8.25
	 Investment Company Act; Other Regulations 
	32

	8.26
	 ERISA 
	32

	8.27
	 No Illegal Activity as Source of Funds 
	33

	8.28
	 Compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money
	 

	 
	Laundering Laws 
	33

	8.29
	 Brokers and Financial Advisors 
	33

	8.30
	 Complete Disclosure; No Change in Facts or Circumstances 
	33

	8.31
	 Survival
	33

	ARTICLE 9 BORROWER COVENANTS 
	33

	9.01
	 Payment of Debt and Performance of Obligations 
	33

	9.02
	 Payment of Taxes and Other Lienable Charges 
	33

	9.03
	 Insurance 
	34

	9.04
	 Obligations upon Condemnation or Casualty 
	39

	9.05
	 Inspections and Right of Entry 
	44

	9.06
	 Leases and Rents 
	44

	9.07
	 Use of Property 
	45

	9.08
	 Maintenance of Property 
	46

	9.09
	 Waste 
	46

	9.10
	 Compliance with Laws 
	46

	9.11
	 Financial Reports, Books and Records 
	47

	9.12
	 Performance of Other Agreements 
	48

	9.13
	 Existence; Change of Name; Location as a Registered Organization 
	49

	9.14
	 Property Management 
	49

	9.15
	 ERISA 
	50

	9.16
	 Compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money
	 

	 
	Laundering Laws 
	50

	ARTICLE 10 NO TRANSFERS OR ENCUMBRANCES; DUE ON SALE 
	50

	10.01
	 Prohibition Against Transfers 
	50

iii

	
			
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	(continued)

	 
	 
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	10.02
	 Lender Approval 
	50

	10.03
	 Borrower Right to Partial Defeasance and Release for Allocated
	 

	 
	Maximum Loan Amount
	51

	10.04
	 Other Releases of the Mortgaged Property 
	53

	10.05
	 OF AC Compliance; Substantive Consolidation Opinion 
	53

	ARTICLE 11 EVENTS OF DEFAULT; REMEDIES 
	53

	11.01
	 Events of Default 
	53

	11.02
	Remedies
	56

	11.03
	 Cumulative Remedies; No Waiver; Other Security 
	58

	11.04
	 Enforcement Costs 
	58

	11.05
	 Application of Proceeds 
	58

	11.06
	 Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets 
	58

	ARTICLE 12 NONRECOURSE-LIMITATIONS ONPERSONALLIABILITY 
	59

	12.01
	 Nonrecourse Obligation 
	59

	12.02
	 Full Personal Liability 
	59

	12.03
	 Personal Liability for Certain Losses 
	60

	12.04
	 No Impairment 
	61

	12.05
	 No Waiver of Certain Rights 
	61

	ARTICLE 13 INDEMNIFICATION 
	61

	13.01
	 Indemnification Against Claims 
	61

	13.02
	 Duty to Defend 
	62

	ARTICLE 14 SUBROGATION; NO USURY VIOLATIONS 
	62

	14.01
	 Subrogation 
	62

	14.02
	 No Usury 
	63

	ARTICLE 15 SALE OR SECURITIZATION OF LOAN 
	63

	15.01
	 Splitting the Note 
	63

	15.02
	 Lender's Rights to Sell or Securitize 
	64

	15.03
	 Dissemination of Information 
	65

	15.04
	 Reserves Accounts 
	65

	15.05
	 Securitization Indemnification 
	65

iv

	
			
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	(continued)

	 
	 
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	15.06
	 Additional Financial Information for Large Loans 
	67

	ARTICLE 16 BORROW FURTHER ACTS AND ASSURANCES PAYMENT OF
	 

	 
	SECURITY RECORDING CHARGES 
	67

	16.01
	 Further Acts 
	67

	16.02
	 Replacement Documents 
	68

	16.03
	 Borrower Estoppel Certificates 
	68

	16.04
	 Recording Costs 
	69

	16.05
	 Publicity 
	69

	ARTICLE 17 LENDER CONSENT 
	69

	17.01
	 No Joint Venture; No Third Party Beneficiaries 
	69

	17.02
	 Lender Approval 
	69

	17.03
	 Performance at Borrower's Expense 
	70

	17.04
	 Non-Reliance 
	70

	ARTICLE 18 MISCELLANEOUS PROVISIONS 
	70

	18.01
	 Notices 
	70

	18.02
	 Entire Agreement; Modifications; Time of Essence 
	71

	18.03
	 Binding Effect; Joint and Several Obligations 
	72

	18.04
	 Duplicate Originals; Counterparts 
	72

	18.05
	 Unenforceable Provisions 
	72

	18.06
	 Governing Law 
	72

	18.07
	 Consent to Jurisdiction 
	72

	18.08
	 WAIVER OF TRIAL BY JURY 
	72

	ARTICLE 19 LIST OF DEFINED TERMS 
	72

	19.01
	 Definitions 
	72

v

LOAN AGREEMENT (FIXED RATE LOAN)

THIS LOAN AGREEMENT is made as of this 29th day of March, 2007 by WOOD 1031
LLC, a Michigan limited liability company (“Borrower”), as borrower, and CAPMARK BANK, a Utah industrial bank (together with its successors and assigns “Lender”), as lender.

Background

Borrower desires to obtain a commercial mortgage loan from Lender in the original principal amount of Thirty-Three Million Eight Hundred Fifty Thousand and 00/100 Dollars ($33,850,000.00) in lawful money of the United States of America. Lender is willing to make such loan to Borrower on the terms and conditions set forth in this Loan Agreement.

Agreement

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

ARTICLE 1
DEFINED TERMS AND CONSTRUCTION GUIDELINES

1.01.  Defined Terms. Each defined term used in this Loan Agreement has the meaning given to that term in Article 19 of this Loan Agreement unless otherwise stated in any other provision hereof.

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

1.03.     Intentionally Omitted.

1.04.  Property. The parties hereto acknowledge that the defined term “Property” has been defined to collectively include each Individual Property. All references to “Property” in this Loan Agreement shall be deemed to refer to one or more Individual Properties, as the context requires. It is the intent of the parties hereto in making any determinations under this

Loan Agreement, including, without limitation, in determining whether (a) breach of a representation, warranty or a covenant has occurred, (b) there has occurred a default or Event of Default, or (c) an event has occurred which would create recourse obligations under Article 12 of this Loan Agreement, that any such breach, occurrence or event with respect to any Individual Property shall be deemed to be such a breach, occurrence or event with respect to the Loan.

ARTICLE2
MAXIMUM  LOAN AMOUNT; PAYMENT TERMS; ADVANCES; DEFEASANCE

2.01.     Commitment to Lend.

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

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

2.02.    Calculation of lnterest.

(a)    Calculation Basis. Interest due on the Loan shall be paid in arrears, calculated based on a 360-day year and paid for the actual number of days elapsed for any whole or partial month in which interest is being calculated.

(b)   Applicable Interest Rate.  Interest shall accrue on outstanding principal at the rate  of five  and sixty-six hundredths percent (5.66%) per annum (“Applicable  Interest Rate”).

(c)   Adjustment for Impositions on Loan Payment. All payments made by Borrower hereunder shall be made free and clear of, and without reduction for, or on account of, any income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings hereafter imposed, levied, collected, withheld or assessed by any government or taxing authority (other than taxes on the overall net income or overall gross receipts of Lender imposed as a result of a present or former connection between Lender and the jurisdiction of the government or taxing authority imposing same provided, that this exclusion shall not apply to a connection arising solely from Lender's having executed, delivered, performed its obligations under,  received  a  payment  under,  or  enforced  this  Loan  Agreement  or  any  other  Loan Document). If any such amounts are required to be withheld from amounts payable to Lender, the  amounts  payable to  Lender under the Loan Documents shall be increased to the  extent necessary to yield to Lender, after payment of such amounts, interest or any such other amounts payable at the rates or in the amounts specified herein.  If any such amounts are payable by Borrower, Borrower shall pay all such amounts by their due date and promptly send Lender a certified copy of an original official receipt showing payment thereof.  If Borrower fails to pay

such amounts  when due or to deliver the required receipt to Lender, Borrower shall indemnify Lender for any incremental taxes, interest or penalties that may become payable by Lender as a result of any such failure.

(d)   Increased  Costs  of Maintaining  Interest.  If Lender  detem1ines that  the adoption  of  any  local,  state  or  federal  law,  regulation,  rule  or  guideline  (including,  without limitation, any  change  regarding  the  imposition  or  increase  in  reserve  requirements but excluding,  specifically,  increases  in state or federal  corporate  income  taxes),  whether  or not having the force of law, does or will have the effect of reducing Lender's  rate of return  on the Loan, then, from time to time, within five (5) business days after written demand by Lender, Borrower  shall pay Lender such additional amount as will compensate Lender for its reduction; provided,  however,  Lender  shall only require  Borrower  to pay said amount  if: (i)  Lender  is requiring  similar payment from a majority of the borrowers  under similar types of loans  made by, held  by or serviced  by Lender for Property  located  in the same geographic  region  as the Property, and (ii) such reduction has an effect upon the rate of return to Lender on the Loan and not an immaterial increased administrative cost imposed on businesses or lenders in general. In addition, if any law, regulation, rule or guideline hereafter is enacted or modified, whether or not having  the force of law, and compliance therewith  results in an increase in the cost to Lender (including,  without limitation, a reduction in the income received by Lender) in making, funding or maintaining  interest  on the Loan at the rate herein provided, then, within five (5)  business days  after  written  demand  by  Lender,  Borrower  shall  pay  Lender  the  additional amounts necessary  to compensate Lender for such increased costs; provided, however, Lender shall only require Borrower to pay said amount if: (i) Lender is requiring similar payment from a majority of  the  borrowers  under  similar  types  of  loans  made  by,  held  by or  serviced  by  Lender  for Property  located  in the same geographic region as the Property and (ii) such reduction  has an effect  upon  the  rate  of  return  to  Lender  on  the  Loan  and  is  not  an  immaterial  increased administrative  cost imposed on businesses or lenders in general.

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

2.03.     Payment of Principal and Interest.

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

(b)   Payment  Dates. Commencing  on the first  (1st)  day of  May, 2007  and continuing on  the  first  (1st)  day  of  each  and  every  successive  month  thereafter  (each,  a "Payment Due Date"), through  and including the Payment Due Date immediately prior  to the Maturity Date,  Borrower  shall  pay  consecutive  monthly  payments  of  interest  only,  at  the Applicable  Interest Rate, based on the outstanding principal balance hereof and any amounts due pursuant to Section 2.02 ofthis Loan Agreement.

(c)   Maturity Date. On the first (1st) day of April, 2017 ("Maturity Date"), Borrower  shall pay the entire outstanding principal balance of the Loan, together with all accrued but unpaid interest thereon and all other amounts due under this Loan Agreement, the Note  or any other Loan Document.

2.04.     Payments Generally.

(a)   Delivery of Payments.  (i) All payments due to Lender under this Loan Agreement  and  the other  Loan Documents  are to  be paid in immediately  available  funds  to Lender  at Lender's  office located at 116 Welsh Road, P.O. Box 809, Horsham, Pennsylvania
19044, Attn: Servicing - Accounting Manager, or at such other place as Lender may designate  to Borrower  in writing  from time to time. All amounts due under this Loan Agreement  and the other  Loan  Documents shall  be  paid  without  setoff,  counterclaim  or  any  other  deduction whatsoever.

(ii) Notwithstanding  the foregoing  subsection (i), Lender shall provide continuous  on­ line internet access to Borrower which details on a daily basis all activity regarding the account into  which  all  Rent  is  deposited  and  maintained  by  Lender  pursuant  to  the  terms of  the Assignment of Leases and Rents.  Borrower shall be responsible for monitoring the account,  and the failure  by Walgreens or any subsequent tenant to deposit rents on a timely basis shall  in no way relieve  Borrower  of its payment obligations  hereunder. If at any time Borrower  does  not have access to the internet site for a period of more than 24 hours due to a failure on Lender's or Lender's agent's part to  make  the site  accessible  to  Borrower  via the  internet, or  due  to  a circumstance  affecting access generally (A) to the internet site or (B) to the internet in the greater Detroit Metropolitan area, and Borrower promptly notifies Lender of such event, Lender shall thereafter  be obligated to deliver to Borrower via facsimile or other suitable form of transmission a  hard  copy of such account  activity on a daily basis, until such time as Borrower is  able to access the internet site for at least 24 hours.

(b)   Credit for Payment Receipt.  No payment due under this Loan Agreement or any of the other Loan Documents shall be deemed paid to Lender until received by Lender  at its designated  office on a business day prior to 2:00 p.m. Eastern Standard Time.  Any payment received  after the time established by the preceding sentence shall be deemed to have been paid on the immediately  following business day.  Each payment that is paid to Lender within ten (10) days prior to the date on which such payment is due shall not be deemed a prepayment and shall be deemed to have been received on the Payment Due Date solely for the purpose of calculating interest  due.  Where a Payment Due Date falls on a date other than a business day, the Payment Due Date shall be deemed the first business day immediately thereafter.

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

(d)       Late Charges.  If any payment due on a Payment Due Date is not received by Lender in full on or before the fifth (5th) day from and including  the Payment Due Date on which such payment  is due (e.g., if the Payment Due Date is the 1st day of month, a late charge would accrue if the full payment is not received on or before the 5th day of the month); Borrower shall pay to Lender,  immediately  and without demand, a late fee equal to five percent (5%)  of such delinquent  amount.  Notwithstanding the foregoing, the parties agree that if the Loan is not paid in full on or before the Maturity Date, the late charge under this subsection shall not apply to the balloon  payment  due on the Maturity  Date; the Default  Rate,  however,  shall  apply  as provided below.

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

(f)        Application  of Payments.   Payments  of  principal  and interest  due  from Borrower  shall  be applied  first to the payment  of late fees, then  to Lender  advances  made  to protect  the Property  or to  perform  obligations  which Borrower  failed  to perform, then  to the payment of accrued but unpaid interest, and then to reduction of the outstanding principal.   If at any  time Lender  receives less than the full amount due and payable  on a Payment Due  Date, Lender may apply the amounts received to amounts then due and payable in any manner  and in any order determined by Lender, in its sole discretion.  Following  an Event of Default,  Lender may apply  all payments  to an1ounts then due in any manner  and in any order determined  by Lender, in its sole discretion.   Lender's  acceptance of a payment from Borrower in an  amount that is less than the full amount then due and Lender's  application of such payments to amounts then due from Borrower  shall not constitute or be deemed to constitute  a waiver of the  unpaid amounts or an accord and satisfaction.  No principal amount repaid may be reborrowed.

2.05.     Prepayment Rights.

(a)        Open Date.  Borrower acknowledges that Lender is making the Loan to it at the interest rate and upon the other terms herein set forth in reliance upon Borrower's promise to pay the Loan over the full stated term of this Loan Agreement and that Lender may suffer loss or other detriment  if Borrower were to prepay all or any portion of the Note prior to its stated Maturity  Date.   Except  as provided in this Section 2.05 and in Section 10.03, Borrower  agrees that Borrower  has no right to prepay all or any part of the Loan prior to the Maturity Date. At any time on and after the 117th Payment Due Date  (the "Open Date"), Borrower may prepay the Loan in whole, but not in part, provided Borrower pays with such prepayment (i) all accrued interest and all other outstanding amounts then due and unpaid under this Loan Agreement  and under the other Loan Documents, and (ii) if the prepayment is not made on a Payment Due Date, Borrower  pays with  such prepayment  the full interest amount that would have accrued  for the period from the date of prepayment through the day prior to the next Payment Due Date.

(b)     Voluntary Defeasance of the Loan.

(i)        Defeasance to Release Property from Security Instrument.   Subject to  Borrower's  compliance  with  all  terms  and  conditions  of this Section  2.05(b), Borrower  may defease  the Loan  in whole  or in part as set forth in Section 10.03 ("Defeasance") on any Business Day after the Lock-out Period Expiration Date (defined below) and obtain  a  release  ("Release") of  the  Property  or  one  or  more Individual  Properties  provided  Borrower  complies  with  Section
10.03 from the lien of the Security Instrument. Once a Defeasance in whole has been completed, the Loan will be secured by the Defeasance  Collateral  (defined  below),  and  thereafter  the  Loan cannot  be the  subject  of  any  further  Defeasance  nor  prepaid  in whole  or  in  part,  notwithstanding  any  provision  of this  Section
2.05 to the contrary.  Once partial Defeasance has been completed, the Loan will be partially secured by the Defeasance Collateral (defined below), and thereafter the portion of the Loan defeased cannot   be  prepaid  in  whole  or  in  part,  notwithstanding  any provision of this Section 2.05 to the contrary. "Lock-out Period Expiration  Date" means the earlier to occur of (i) the third  (3rd) anniversary  of the Closing  Date,  or  (ii) the  second  (2nd) anniversary oft he "startup date" of the REMIC within the meaning of Section 860G(a)(9) of the Tax Code.

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

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

(B)       not  less  than  forty-five   (45)  days  (but  not  more  than  one hundred  fifteen  (115)  days)  prior written  notice  shall be given to Lender  specifying  the  Release Date;

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

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

(1)   The  Defeasance  Collateral which  meets all requirements of  subsection 2.05(b)(iii) below  and  is owned  by Borrower, free  and  clear  of all liens  and claims  of third-parties.
(2)    A  written  certification of  an  independent  certified public accounting  firm  (reasonably acceptable to  Lender), confirming  that  the  Defeasance Collateral will  (y) in the  event of Defeasance of the entire  Loan  generate  amounts  sufficient to make  all Scheduled Debt  Payments  as they fall due under the Note,  including  full payment due on  the  Note  on  the  Open  Date  or  (z)  in  the  event  of  partial  Defeasance  generate amounts sufficient  to  make scheduled  Debt  Payments  as  they  fall due  under  the  Defeasance  Note including full payment on such Defeasance Note on the Open Date.
(3) Lender's form of a pledge and security  agreement ("Defeasance  Pledge  Agreement") and  financing statements which  pledge  and  create a first priority  security  interest  in the Defeasance  Collateral  in favor of Lender.

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

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

(6)    Such  legal  opinions given  by  Borrower's  counsel (which counsel  must  be reasonably  acceptable to Lender)  as Lender  may  require  to confirm (i) that the Defeasance Collateral  and the proceeds  thereof have been validly  pledged to Lender, that the Defeasance  Pledge Agreement and other Loan Documents  after the Defeasance  are enforceable against  Borrower in accordance with the respective  terms and Lender  has a perfected first priority  security interest  in  the  Defeasance Collateral, (ii)  the  release  of  the  lien of the

Security Instrument and the pledge of Defeasance Collateral will not directly or indirectly result in or cause any REMIC that then holds the Note to fail to maintain its status as a REMIC and (iii) the defeasance will not cause any REMIC to be an investment company under the Investment Company Act of 1940.
     (7)      Forms   of  all  Release  Instruments,  each  in appropriate form required by the state or states in which the Property or, in the case of partial Defeasance, the state or states in which the Release Property is located.  Such other certificates, confirmations, documents or instruments as Lender reasonably deems necessary in connection with the Defeasance, including, without limitation, a Rating Confirmation.
 
(E)    Borrower shall satisfy the requirements of Section  10.03 
hereof.

(iii) Purchase and Ownership of the Defeasance Collateral. The "Defeasance  Collateral"  must consist only of non-callable  and non-redeemable securities issued, or fully insured as to payment, by the United States of America (including, without limitation, obligations issued or held in book-entry form of the Department of the Treasury and principal-only and interest-only strips  that  are issued by the United States Treasury, or non-callable obligations, the principal of and interest on which are unconditionally guaranteed by the United States of   America,   or senior, unsubordinated U.S.  Agency   for   International  Development (U.S.A.I.R.) guaranteed notes which mature at least four (4) business days before the appropriate Payment Due Date), or such other securities as are permitted at the time of Defeasance by the Tax Code with respect to REMIC collateral substitutions.The Defeasance Collateral also must provide for (A) redemption payments to occur prior, but as close as possible, to all successive Payment Due Dates occurring after the Release Date and (B) deliver redemption proceeds at least equal to (1) in the  event of Defeasance of the entire Loan the amount of principal and interest due on the Note on each such Payment Due Date including full payment due on the Note on the Open Date or (2) in the event of partial Defeasance the amount of principal and interest due on the Defeasance Note on each such Payment Due Date, including full payment    due  on   the  Defeasance  Note on the Open Date ("Scheduled Debt Payment"). The Defeasance Collateral shall be arranged such that redemption payments received from the Defeasance Collateral are paid directly to Lender to be applied on account of the Scheduled Debt Payments. Unless otherwise agreed in writing by Lender, the pledge of the Defeasance Collateral shall be  effectuated through  the  book-entry  facilities of  a  qualified

securities intermediary designated by Lender (which may be Lender itself or an Affiliate of Lender if such party qualifies as a securities intermediary) in conformity with all applicable laws.

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

(v)       Substitute Notes on Partial Defeasance. With respect to any partial Defeasance, Borrower  and  Successor Borrower,  as  applicable, shall execute and deliver to Lender all documents necessary to amend and restate the Note with two substitute notes: one note having a principal balance equal to the defeased portion  of the Loan (the "Defeased Note") and one note having a principal balance equal to the undefeased portion of the Note (the "Undefeased Note").  The Undefeased Note may be the subject of a further Defeasance in accordance with the terms of this Section

	
			
	 
	 
	2.05(b) (the term "Note" , as used in this Section 2.05(b), being deemed to refer to the Undefeased Note that is the subject of further Defeasance).

	

(vi)
	

Defeasance Costs and Expenses. Borrower shall pay all reasonable costs and expenses incurred by Lender in connection with Defeasance, which payment is required prior to Lender's  issuance of the Release and whether or not Defeasance is completed.  Such expenses include, without limitation, the cost incurred by Lender to    obtain   Rating   Confirmation   contemplated   by    Section
2.05(b)(ii)(D)(7), the reasonable fees and disbursements of Lender's legal counsel and a processing fee to cover Lender's administrative costs to  process Borrower's  Defeasance  request. Lender reserves the right to require that Borrower post a deposit to cover costs which Lender reasonably anticipates will be incurred.

	

(c)
	 
	

Prepayment Yield Maintenance Premium. Borrower, at its option,

may prepay the Loan in whole, but not in part, by delivery of the outstanding balance of the Loan
less  any portion of the Maximum Principal Amount that is evidenced by a Defeased  Note together with the Yield Maintenance Premium (as defined in subsection (d) below) to Lender on any Business Day after the Lock-out Period Expiration Date and obtain a Release of the Property from the lien of the Security Instrument; provided that Borrower satisfies all of the conditions of
this Section 2.05(c).

(i)        Conditions to Release.  Borrower may cause a Release upon the satisfaction of the following conditions (all as reasonably approved by Lender):

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

(B)      not less than forty-five (45) (but not more than one hundred fifteen (115)) days prior written notice shall be given to Lender specifying the Release Date;

(C)      all accrued and unpaid interest and all other sums due under the Note, this Loan Agreement and under the other Loan Documents up to the Release Date including, without limitation, all fees, costs and expenses incurred by Lender and its agents in connection with such Release shall be paid in full or evidenced by a Defeased Note on or prior to the Release Date;

(D)      Borrower shall deliver forms of Release Instruments, each in appropriate form required by the state or states in which the Property is located; and

(E)   Borrower  shall  deliver  such  other  certificates, confirmations, documents or instruments as Lender reasonably deems necessary in connection with the Release, including, without limitation, a Rating Confirmation.

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

(d)       Prohibited Prepayment Prior to Open Date.  Except as otherwise set forth in Section 2.05(b) or in Section 2.05(c), if payment of all or any part of the principal balance of the Loan is tendered by Borrower, a purchaser at foreclosure, a Guarantor, or any other Person prior  to  the  Open  Date,  whether by  reason of  acceleration  of  the  Loan  or  otherwise  (a "Prohibited   Prepayment"),  such  tender  shall  be  deemed  an  attempt  to  circumvent  the prohibition against prepayment set forth in Section 2.05(a) and, at Lender's option, shall  be an Event of Default.  If a Prohibited Prepayment occurs and is accepted voluntarily or otherwise by Lender, then, in addition to all other rights and remedies available to Lender upon an Event of Default, a Prohibited Prepayment Fee (as defined below) shall be due to compensate Lender for damages suffered as a result of the Prohibited Prepayment, such amount shall be due in addition to the outstanding principal balance, all accrued and unpaid interest and other outstanding amounts due under the Loan Docun1ents. The "Prohibited Prepayment Fee" shall  be a prepayment premium equal to:

(i)       three percent (3%) of the outstanding principal balance of Note, plus

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

The "Yield Maintenance Premium" shall be equal to the greater of (i) one percent (1%)  of the outstanding principal balance of the Note or (ii) the excess, if any, of (A) the present  value ("PV")  of  all scheduled interest and principal payments due on each Payment Due  Date  in respect of the Loan for the period from the date of such accepted prepayment to the Maturity Date, including the principal amount of the Loan scheduled to be due on the Maturity  Date, discounted at an interest rate per annum equal to the Index (defined below), based on a 360-day year of twelve 30-day months, over (B) the principal amount of the Loan outstanding immediately  before such accepted prepayment [i.e., (PV of all future payments) - (principal balance at time of acceleration)]. The foregoing amount shall be calculated by Lender and shall be conclusive and binding on Borrower (absent manifest error).

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

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

(f)        Revocation  of  Notice.    In  the  event  Borrower  revokes  any  notice  of defeasance   in  accordance   with  subsection  2.05(b)  above,  Borrower   shall  be  obligated   to reimburse to Lender all fees, costs and other expenses incurred in connection with such notice.

ARTICLE3
CASH MANAGEMENT

3.01.     Intentionally Omitted.

ARTICLE  4
ESCROW AND RESERVE  REQUIREMENTS

4.01.     Creation and Maintenance of Escrows and Reserves.

(a)       Control of Reserve Accounts.   On the Closing Date, each of the  Reserve Accounts  shall  be established  by Lender.    Each  Reserve  Account  required  under  this  Loan Agreement  shall be a custodial account established by Lender, and, at Lender's option, funds deposited  into a Reserve Account may be commingled with other money held by Lender.   Each Reserve Account shall be under the sole dominion and control of Lender, and Borrower shall not have any right to withdraw funds from a Reserve Account. Borrower shall be entitled to earnings or interest  on funds deposited in the Reserve Accounts other than the Tax Escrow Account  and the  Insurance  Premium Escrow Account; provided, however, that interest paid or payable  with respect to any Reserve Account held by or on behalf of Lender may not be based on the highest rate of interest  payable by Lender on deposits and shall not be calculated based on any particular external  interest  rate or interest  rate index, nor shall any such interest reflect the interest  rate utilized  by Lender to calculate  interest payable on deposits held with respect to any particular loan or borrower or class of loans or borrowers, and Lender shall have no liability with respect to

the amount of interest paid and/or loss of principal.  Upon the occurrence of an Event of Default, Lender may, in addition to any and all other rights and remedies available to Lender, apply any sums then present in any or all of the Reserve Accounts to the payment of the Debt in any order as determined by Lender  in its sole discretion.

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

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

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

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

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

(g)       Insufficient Amounts in a Reserve Account.  Notwithstanding that  Lender has  the  right  to  require  Borrower  to  pay  any  deficiency  in  a  Reserve  Account  if  Lender determines that amounts in a Reserve Account are insufficient,  the insufficiency of funds  in a Reserve Account,  or Lender's  application of funds in a Reserve Account following an Event of Default  other  than  for  funding  of  the  Reserve  Items,  shall  not  relieve  Borrower   from  its obligation   to  perform  in  full  each  of  its:  (i)  obligations  and  covenants  under  this   Loan

Agreement; (ii) agreements or covenants with tenants under the Leases; and (iii) agreements with leasing agents.

(h)       Escrow   Waiver  Criteria.     Notwithstanding  anything  in  this   Loan Agreement to the contrary, Borrower shall not be required to make monthly payments to the Tax Escrow Account, the Insurance Premium Escrow Account, the Replacement Reserve Account, or the TI/LC Reserve Account, provided that the following conditions (collectively, the "Waiver Criteria") are satisfied:

(i)        no Event of Default nor any event which with the passage of time or the giving of notice or both would constitute an Event of Default) has occurred and is continuing under the Note, this Loan Agreement or any other Loan Document; and

(ii)      those certain leases entered into by and between Borrower or its predecessor, as landlord, and Walgreen Co. or Walgreen Louisiana Co., Inc. (in either case, "Walgreens"),  as tenant, as more particularly described on Exhibit H attached hereto, (individually or collectively, as the context may require, the "Walgreens Leases") are in full force and effect and either (A) Walgreens has taken and remains in physical possession of same or (B) Walgreens continues to maintain an Investment Grade Rating.

Upon the failure of Borrower and/or Walgreens to satisfy the Waiver Criteria, and continuing  until  the  Waiver  Criteria  are  thereafter  satisfied, Borrower  shall  on  the  next succeeding Payment Due Date commence making monthly deposits to the Tax Escrow Account, the Insurance Premium Escrow Account, the Replacement Reserve Account and/or the TI/LC Reserve Account in such amounts reasonably determined by Lender; provided, however, that if the Waiver Criteria are not satisfied solely because Walgreens fails to be in physical possession of one or more of the Individual Properties, then Borrower shall be obligated to make monthly payments to the Reserve Accounts only in such amounts as Lender reasonably allocates to such vacant Individual Properties.

4.02.     Tax Escrow.

(a)       Deposits to the Tax Escrow Account. On the Closing Date, Borrower has deposited such amount as is noted on the closing statement relating to the closing of the Loan, to the Tax Escrow Account which is the amount determined by Lender that is necessary to pay when due Borrower's  obligation for Taxes upon the later of the actual due dates or the dates prior to  delinquency (if  available) established by the appropriate tax or assessing authorities during the next ensuing twelve (12) months, taking into consideration the Monthly Tax Deposits to  be  collected :from the  first Payment Due  Date to  the  due  date  for payment of  Taxes. Thereafter, beginning on the first Payment Due Date and on each Payment Due Date thereafter, Borrower shall deliver to Lender the Monthly Tax Deposit, subject, however, to the terms set forth in Section 4.01(h) above.

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

(c)       Surplus or Deficiency in Tax Escrow Account.  If amounts on deposit in tl1e Tax Escrow Account collected for an annual tax period exceed the Taxes actually paid during such tax period, Lender shall, in its discretion, return the excess to Borrower or credit the excess against the payments Borrower is to make to the Tax Escrow Account for the next tax period.  If amounts on deposit in the Tax Escrow Account collected for an annual tax period are insufficient to pay the Taxes actually due during such tax period, Lender shall notify Borrower of the deficiency and, within ten (10) days thereafter, Borrower shall deliver to Lender such deficiency amount.  If, however, Borrower receives notice of any such deficiency on a date that is within ten (10) days prior to the later of the actual due dates or the dates prior to delinquency (if available) for such Taxes, Borrower will deposit the deficiency amount within one (1) business day after its receipt of such deficiency notice.

(d)       Changes in Amount of Taxes Due; Changes in the Monthly Tax Deposit. Borrower shall notify Lender immediately of any changes to the amounts, schedules and instructions  for payment of any Taxes of which it has or obtains knowledge and authorizes Lender or its agent to obtain the bills for Taxes directly from the appropriate taxing authority.  If the amount due for Taxes shall increase and Lender reasonably determines that amounts  on deposit in the Tax Escrow Account will not be sufficient to pay Taxes due for an annual tax period, Lender shall notify Borrower of such determination and of the increase needed to the Monthly Tax Deposit.  Commencing with the Payment Due Date specified in such notice from Lender, Borrower shall make deposits at the increased amount of the Monthly Tax Deposit subject, however, to the terms set forth in Section 4.01(h) above.

4.03.     Insurance Premium Escrow.

(a)       Deposits to Insurance Premium Escrow Account. On the Closing Date, Borrower has deposited such amount as is noted on the closing statement relating to the closing of the Loan to the Insurance Premium Escrow Account which is the amount determined by Lender that is necessary to pay when due Borrower's obligation for Insurance Premiun1s during the next ensuing twelve (12) months, taking into consideration the Monthly Insurance Deposits to be collected from the first Payment Due Date to the due date for payment of such Insurance Premiums.  Thereafter, beginning on the first Payment Due Date and on each Payment Due Date tl1ereafter, Borrower shall deliver to Lender the Monthly Insurance Deposit subject, however, to the terms set forth in Section 4.01(h) above.

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

(c)        Surplus or Deficiency in Insurance Premium Escrow Account.  If amounts on deposit in the Insurance Premium Escrow Account collected for an annual period exceed the Insurance  Premiums actually paid during such period, Lender shall, in its discretion, return such excess  to  Borrower  or  credit  such  excess against  the  payments  Borrower  is  to make  to  the Insurance Premium Escrow Account for the next annual period. If amounts on deposit in the Insurance  Premium  Escrow Account collected for an annual premium period are insufficient to pay  the  Insurance   Premiums  actually  due  during  such  annual  period  Lender  shall   notify Borrower of the deficiency and, within ten (10) days thereafter, Borrower shall deliver to Lender such deficiency  amount.  If, however, Borrower receives notice of any such deficiency on a date that  is within  ten  (10) days prior to the date that Insurance  Premiums  are due, Borrower  will deposit  the deficiency  amount within one (1) business  day after its receipt of such deficiency notice.

(d)       Changes  in  Insurance  Premium  Amounts;  Change  in Monthly  Deposit Amount.   Borrower  shall notify Lender immediately of any changes to the amounts, schedules and instructions  for payment of any Insurance Premiums  of which it has or obtains knowledge and authorizes  Lender or its agent to obtain the bills for the Insurance Premiums directly from the insurance provider or its agent. If the amount due for Insurance Premiums shall increase and Lender  reasonably   determines  that  amounts  on  deposit  in  the  Insurance  Premium  Escrow Account  will not be sufficient to pay the Insurance Premiums,  Lender shall notify Borrower  of such determination  and of the increase needed to the Monthly Insurance Deposit.  Commencing with the Payment Due Date specified in such notice from Lender, Borrower shall make deposits at the  increased  amount of the Monthly  Insurance  Deposit  subject, however,  to the terms  set forth in Section 4.01(h) above.

4.04.     Immediate Repair Escrow Account.

(a)       Immediate Repair Escrow Generally.   Amounts in the Immediate  Repair Escrow  Account  are  to  be  used  for  the  purpose  of  funding  the  Immediate  Repairs,  which Borrower covenants and agrees to perform in accordance with the terms of this Loan Agreement on or before the dates specified on Exhibit C but not later than twelve (12) months from the date hereof.

(b)       Deposit to the Immediate  Repair Escrow  Account.  On the Closing  Date, Borrower shall deposit $0.00 with Lender as the reserve for completion of the Immediate Repairs ("Immediate Repair Deposit").

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

(d)      Reassessment of Required Deposit.   If at any time Lender reasonably determines  that  the  Immediate  Repair  Deposit  will  not  be  sufficient  to  pay the  cost  of  the Immediate  Repairs,  Lender  may  notify  Borrower  of  such  determination  and  of  the  amount estimated by Lender to make-up such deficiency as reasonably determined by Lender based upon changes in circumstances.   Within ten (10) days after such notice from Lender, Borrower  shall deliver  the  deficiency  amount  to  Lender,  and  Lender  shall  deposit  in the Immediate  Repair Escrow Account and hold and administer same in accordance with this Loan Agreement  subject, however, to the terms set forth in Section 4.01(h) above.

4.05.     Replacement Reserve Account.

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

(b)       Deposits  to  the  Replacement  Reserve  Account.    On the  Closing  Date, Borrower  shall  deposit  $0.00  with  Lender  as an  initial  deposit  to  the Replacement  Reserve Account.   Subject to the terms set forth in Section 4.01(h) above, beginning on the first Payment Due Date and on each Payment Due Date thereafter, Borrower shall pay $0.00 ("Monthly Replacement Reserve Deposit") to Lender as a deposit to the Replacement Reserve Account.

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

(d)       Reassessment of Required Monthly Deposits.   Lender may, from  time to time  based  on  Lender's   inspections  of  the  Property,  reassess  its  estimate  of  the  Monthly Replacement  Reserve  Deposit and may increase  such amount on not less than thirty  (30) days written  notice  to  Borrower  if  Lender  determines  that  an  increase  is  necessary  (i)  to  fund replacements  not  listed  as part of the Replacements  (and  not intended  to be covered  by the Immediate  Repair Escrow Account or TI/LC Reserve Account) which are advisable to keep the Property  in good order, repair and marketable condition, or (ii) to fund the replacement  of any major building systems or components (e.g., roof, HVAC system) not listed as part of the Replacements  (and  not intended  to be covered  by the Immediate  Repair Escrow  Account  or TI/LC Reserve  Account)  which will reach the end of its useful life within two (2) years  of the date of Lender's  inspection subject, however, to the terms set forth in Section 4.01(h) above.

4.06.     TI/LC Reserve Account.

(a)        TI/LC Reserve  Generally.   Amounts  in the TVLC Reserve  Account are to be used  for the purpose  of funding the costs of Tenant  Improvements and Leasing  Commissions that are paid by Borrower during the tem1 of the Loan.

(b)        Deposits to the TVLC Reserve  Account   On the Closing Date,  Borrower shall  deposit  $0.00  (the "Initial TI/LC Deposit") with Lender  as an initial deposit to the  TIILC Reserve Account.   Subject  to the terms  set forth in Section  4.01(h)  above, beginning  on  the first Payment  Due  Date   and   on  each  Payment   Due  Date  thereafter,  Borrower   shall  pay   $0.00 ("Monthly TI/LC Deposit") to Lender as an additional deposit to the TIILC Reserve Account.

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

(i)       Lender shall make disbursements from the TVLC Reserve Account to  reimburse  Borrower   for  Tenant  Improvements   required  under any  new  Lease  or  any  modification, renewal  or  extension of an existing  Lease  paid  by  Borrower, in  accordance   with  the disbursement procedures    (including     evidence     of     lien-free performance) set forth  in Article  5 hereof,  provided  that:    (A) the Tenant Improvements are required  under any new Lease or any modification,  renewal  or extension  of any existing Lease,  provided that  any such new  Lease  or modification, renewal  or extension of an existing Lease is entered into in accordance with the terms and provisions      of    Section    9.06;    (B)   the    cost   of   such    Tenant Improvements is market, reasonable  and customary;  (C) the  Tenant Improvements     are   fully   performed    in   accordance    with    the standards  set  forth  in  Article  5  hereof  and  have  been   accepted without   condition   by  the   related   tenant;   (D)   unless   otherwise agreed  to  by  Lender,   the  related  tenant  is  occupying   the   space benefited  by the Tenant  Improvements and has commenced paying rent;  (E)  if  required   by  Lender,   the  related  tenant   shall   have executed     and     delivered     a     subordination,   non-disturbance agreement  and an estoppel  certificate  or both all on such  forms as is  reasonably   acceptable   to  Lender;   and  (F)  unless   otherwise agreed by Lender, the related  Lease has an effective rental rate, net of any  concessions, of  at  least  90%  of the  proforma  rents   at the Property;

(ii)        Lender shall make disbursements from the TVLC Reserve Account to reimburse Borrower for Leasing  Commissions  paid by Borrower in accordance  with the disbursement procedures  set forth  in Article
5  hereof   provided   that:      (A)   such   leasing   commissions   and "override" leasing  commissions are  market,  reasonable  and customary  for properties  similar to the Property  and the  portion  of

the Property leased for which a commission is due and, unless otherwise agreed by Lender, with respect to a new Lease at the Property  do not exceed six  percent  (6%) of the total amount  of base rent payments  under the  related  Lease  and  with  respect  to renewal Leases with existing Tenants at the Property do not exceed two percent (2%) of the  total amount of the base rent payments under   the   related   Lease;   (B)   the   amount   of   such   leasing commissions and "override"  leasing commissions  are determined pursuant to arms length transactions  between Borrower  and  each such leasing agent to which a commission is due; (C) the Lease has been approved by Lender in accordance with this Loan Agreement or, if Lender's  approval is not required, conforms with  all requirements set forth in Section 9.06 of this Loan Agreement  (D) unless otherwise agreed by Lender, the tenant under the Lease  for which such Leasing Commission  is claimed has taken occupancy of the leased space and commenced paying rent and (E) unless otherwise  agreed  by Lender,  the  related  Lease  has an  effective rental rate, net of any concessions, of at least 90% of the pro forma rents at the Property.

(d)       Deposit Reassessment.  Lender may, from time to time, based on Lender's review  of Leases  and leasing information relating to the Property,  reassess its estimate  of the Monthly  TI/LC Deposit and may increase such amount on not less than thirty (30) days  written notice  to  Borrower  if Lender  determines  that  an increase  is  necessary  to maintain  a  proper reserve to pay the costs of likely Tenant Improvements or Leasing Commissions that may arise during the remaining term of the Loan subject, however, to the terms set forth in Section 4.0l(h) above.

4.07.     Excess Cash Flow Reserve Account.

(a)       Deposits  to the Excess  Cash Flow Reserve  Account.   Excess cash  flow generated by the Property shall be deposited into the Excess Cash Flow Reserve Account  in accordance  with the provisions of Section 1.04(b) of the Assignment of Leases and Rents.

(b)       Excess Cash Flow Reserve Generally.  Amounts in the Excess Cash  Flow Reserve  Account shall be held in the Excess Cash Flow Reserve Account as additional collateral for the Loan.

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

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

(a)        Disbursement  only  for  Completed  Repairs.     Disbursements   shall   be limited to Reserve Items that are fully completed and paid for in full by Borrower except  to the extent permitted under Section 5.0l(b)  of this Loan Agreement and, in the case of Leasing Commissions,  fully and unconditionally earned and paid in full by Borrower.  At no time shall Lender  be  obligated  to  pay  amounts  to  Borrower  in  excess  of  the  current  balance   in  the applicable Reserve Account at the time of disbursement.

(b)       Partial Completion.  Lender may agree to disburse funds for Reserve  Items prior  to  completion  thereof  where (i)  the contractor  performing  such  work requires  periodic payments  pursuant to the terms of its written contract with Borrower and Lender has given its prior written approval to such contract, and (ii) the cost of the portion of the Reserve Item to be completed under such contract exceeds $10,000.00.

(c)       Disbursement  Request;  Maximum  Frequency  and  Amount.    Borrower shall  submit  to Lender  a Disbursement  Request  together  with  such  additional information  as Lender  may reasonably  request in connection with the Disbursement  Request at least  ten (10) business days prior to the date on which Borrower requests Lender to make a disbursement  from a  Reserve  Account.    Unless  otherwise  agreed  to  by Lender,  Borrower  may not  submit,  and Lender  shall  not  be required  to  make,  more  than  one  (1)  disbursement  from  each  Reserve Account  during  any calendar  month.   No Disbursement  Request  shall  be made for  less  than
$2,500.00 or the total cost of the Reserve Items, if less.

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

(e)        Responsible Officer Certificate.  Lender must receive a certificate,  signed by  a  Responsible  Officer  of  Borrower  (and,  at  Lender's  option,  also  signed  by  Borrower's project architect or engineer if the cost of a single Reserve Item or the aggregate amount  of the Disbursement  Request exceeds $50,000.00), which certifies that:

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

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

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

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

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

(f)        Inspection  to Confirm  Completion.    Prior  to making  any  disbursement which exceeds $50,000.00  in the aggregate or for a single Reserve Item, Lender may require  an inspection  ofthe Property, performed at Borrower's expense, to verify completion thereof.

(g)       Absence of Liens.  Lender may require that Borrower provide Lender with any or all of the following: (i) a written lien waiver acceptable to Lender from each party to be paid  who  is to receive  payment of $10,000.00  or more in connection  with the Disbursement Request;  (ii) a search of title to the Property  effective to the date of the disbursement  which shows  no  Liens other than  the Permitted Encumbrances;  or (iii)  an endorsement to  the  Title Insurance  Policy which updates the effective date of such policy to the date of the disbursement and shows no Liens other than the Pem1itted Encumbrances.

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

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

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

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

any one supplier  or contractor which is in excess of $10,000.00 may be paid directly by Lender to such supplier or contractor.

5.04.     Performance of Reserve Items.

(a)       Performance  of  Reserve  Items.    Borrower  agrees  to  commence   each Reserve Item by its required commencement date stated on the applicable Exhibit to this Loan Agreement  identifying  such Reserve Item and to pursue completion diligently of each Reserve Item  on  or  before  its  completion  date  stated  on  such  Exhibit  and,  in  the  absence   of  a commencement  date or completion date being specified,  when necessary  in order to keep  the Property in good order and repair, in a good and marketable condition and as necessary to keep any portion  thereof from deteriorating, or in the case of Tenant Improvements, when required under  the  Leases.    Borrower  shall complete  each  Reserve  Item in  a good and workmanlike manner,  using  only new materials of the same or better quality than that being replaced.    All Reserve Items shall be performed in accordance with, and upon completion shall comply  with, all Requirements  of Law (including without limitation obtaining and maintaining in effect all necessary permits and governmental approvals) and all applicable insurance requirements.

(b)       Contracts.    Lender  shall  have  the  right,  at  its  option,  to  approve   all contracts or work orders with materialmen, mechanics, suppliers, subcontractors,  contractors  or other parties providing  labor or materials in connection  with the Reserve Items which contract contains costs in excess of$10,000.00.

(c)       Entry onto Property.   Subject  to the rights of the tenant set forth  in the Walgreens Lease, in order to perform inspections or, following an Event of Default, to complete Reserve  Items  which Borrower  has failed  to perform,  Borrower  hereby  grants Lender  and its agents the right, from time to time, to enter onto the Property upon twenty-four (24) hours notice, which  may be telephonic, except that no notice shall be required in an emergency or  after  an Event ofDefault.

(d)       Lender Remedy for Failure to Perform.  In addition to Lender's  remedies following  an Event of Default, Borrower acknowledges that Lender shall have the right (but not the obligation) to complete or perform the Reserve Items for which amounts have been reserved under  this  Loan  Agreement  (or  pay  the  Leasing  Commissions  as  applicable)  and  for  such purpose,  Borrower  hereby appoints Lender its attorney-in-fact  with full  power of substitution (and which shall be deemed to be coupled with an interest and irrevocable until the Loan is paid in full and the Security Instrument is discharged of record, with Borrower hereby ratifying  all that its said attorney  shall do by virtue thereof):   (i) to complete or undertake such work  in the name  of Borrower;  (ii)  to proceed  under existing  contracts  or to terminate existing  contracts (even  where  a termination  penalty may  be  incurred)  and  employ  such contractors, subcontractors,  watchmen, agents, architects and inspectors as Lender determines necessary  or desirable for completion of such work; (iii) to make any additions, changes and corrections  to the scope of the  work as Lender deems necessary  or desirable for timely completion; (iv)  to pay, settle or compromise  all existing bills and claims which are or may become Liens against  the Prope1iy or  as may be necessary  or desirable for  completion of such work; (v) to execute  all

applications  and certificates  in the nan1e of Borrower which may be required to obtain permits and approvals for such work or completion of such work; (vi) to prosecute and defend all actions or proceedings in connection with the repair or improvements to the Property; and (vii) to do any and every act which Borrower might do in its own behalf to fulfill the terms of Borrower's obligations  under this Loan Agreement.   Amounts expended by Lender which exceed  amounts held  in  the  Reserve   Accounts  shall  be  added  to  the  Maximum  Loan  Amount,   shall   be immediately  due  and  payable,  and  shall  bear  interest  at  the  Default  Rate  from the  date  of disbursement until paid in full.

ARTICLE 6
LOAN SECURITY AND RELATED OBLIGATIONS

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

6.02.    Assignment  of  Property  Management  Contract.     Borrower  and  the  Property Manager  shall execute  at closing the Assignment  of the Property Management  Contract  and to abide by their respective obligations thereunder.

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

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

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

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

ARTICLE 7
SINGLE PURPOSE ENTITY REQUIREMENTS

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

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

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

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

(d)        All  of  the  factual  assumptions  made  in  any  substantive   consolidation opinion delivered  by Borrower's counsel to Lender  (if any) are, as of the date of such  opinion, true and correct in all respects.

(e)        The  "single   purpose   entity"   prov1s10ns included  in  the  organizational documents of Borrower and SPE Equity Owner shall not, without  Lender's prior written  consent, be amended, rescinded  or otherwise  revoked until the Loan has been paid in full.

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

7.02.     Definition of Single Purpose Entity.

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

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

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

(iii)      if such entity is (A) a limited  liability  company  (other than  a single member  limited liability  company  which  satisfies the requirements of clause  (iv) below),  has had and shall have at least one  member that satisfies the requirements of Section  7.02(b) below  and such member  is its managing  member,  and (B) a limited partnership, all of  its general  partners  have  satisfied  and  shall  satisfy the requirements of Section 7.02(b)  below;

(iv)      if  such  entity  is a single  member  limited  liability  company,  such entity shall be (A) formed and organized under Delaware law and otherwise comply with all other Rating Agency criteria for single member  limited  liability  companies (including, without  limitation, the  inclusion  of a "springing member" and  delivery  of  Delaware single member  limited liability  company  opinions  acceptable in all respects to Lender and to the Rating Agencies); and (B) such  entity shall have at least one (1) Independent Director  on its board  of managers;

(v)     if such entity  is a corporation, has had and shall have at least  one
(1) Independent  Director  on its board of directors;

(vi)       has  and  shall  preserve  its  existence  as  an  entity  duly  organized, validly existing  and in good standing  (if applicable)  under  the laws of the jurisdiction of its formation or organization;
(vii)     has not and shall not merge or consolidate with any other Person; 
(viii)     has not taken,  and shall  not take,  any action  to dissolve,  wind-up,
terminate   or  liquidate   in  whole   or  in  part;  to  sell,  transfer  or
otherwise  dispose  of all or substantially all of its assets;  to change its legal structure;  transfer  or permit  the direct or indirect transfer of   any   partnership,   membership  or  other   Equity   Interests,  as applicable,  other  than  Permitted Transfers; issue  additional partnership, membership or other Equity Interests,  as applicable; or seek to accomplish  any of the foregoing;

(ix)         shall not, without the unanimous written  consent  of all Borrower's partners,  members,  or shareholders, as applicable,  and the  written consent  of 100%  of the members  of the  board  of directors of the SPE  Equity  Owner  or board  of  managers  in the case  of  a  single member  limited liability  company,  including without limitation the

Independent Director(s):  (A) file or consent to the filing of any petition, either voluntary or involuntary, to take advantage  of any applicable insolvency, bankruptcy, liquidation or reorganization statute;  (B)  seek  or  consent  to  the  appointment  of  a  receiver, liquidator  or any similar official;  or (C) make an assignment  for the benefit of creditors;

(x)       has   not,   and   shall   not   amend   or   restate   its   organizational documents if such change would adversely impact or result in any additional conflicts with the requirements set forth in this Section
7.02;

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

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

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

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

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

hold out its credit as being available to satisfy the obligations  of any other Person;

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

(xix)    shall file its  own tax returns  as required  under federal  and  state law;

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

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

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

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

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

(b)         SPE Equity Owner Criteria.  With respect to SPE Equity Owner, a "Single Purpose  Entity" means  a corporation or a Delaware single member limited liability  company which,  at all times since its formation and thereafter complies in its own right with each  of the requirements  contained in Section 7.02(a)(i)- (xxiv), except that:

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

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

(iii)      with respect to Section 7.02(a)(xiii) the SPE Equity Owner has not and  shall  not  incur  any  debt,  secured  or  unsecured,  direct  or

contingent     (including,     without     limitation,     guaranteeing     any obligation).

7.03.    Lender's  Acknowledgment.    Notwithstanding  anything  to the contrary  in  this Loan Agreement,  Lender acknowledges that Borrower does not satisfy the following criteria  to be a Single  Purpose Entity: the delivery of Delaware single member limited liability company opinions  with  respect  to  the  SPE Equity  Owner.    Lender  reserves  the right  to  require   any transferee  of the Property approved by Lender at its sole discretion under Section 10.2 below to comply with and satisfy all of the Single Purpose Entity criteria set forth in Article 7 hereof  (and in any other provisions of this Loan Agreement).

7.04.   Acknowledgment; Conflicts.  Borrower and Lender hereby acknowledge that the provisions  set fo1ih in the respective organizational documents of both Borrower and SPE Equity Owner are, in their current form, consistent with, and do not violate, the terms of this Article  7; provided, however, that in the event a conflict arises between the provisions of this Article  7 and of the organizational  documents, the terms of the organizational  documents shall govern and any such conflict  shall  not be deemed an Event of Default  as long as each of Borrower  and  SPE Equity Owner continues to operate in compliance with the provisions currently set forth  in its respective  organizational documents.

ARTICLE 8
REPRESENTATIONS AND WARRANTIES

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

8.01.    Organization;  Legal Status.    Borrower  and  each  SPE  Equity  Owner  are  duly organized,  validly  existing  and in good standing  under the  laws of its state of formation  and Borrower;  (a) is duly qualified to transact business and is in good standing in the state where  the Property  is located;  and (b) has all necessary  approvals,  governmental  and otherwise,  and  full power and authority to own, operate and lease the Property and otherwise carry on its business  as now conducted  and proposed to be conducted.  Borrower's  correct legal name is set forth  on the first page of this Loan Agreement.  Borrower is a "registered  organization" within the meaning of the UCC and Borrower's organization identification number issued by its state of organization is correctly  stated on the signature page to this Loan Agreement.

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

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

8.04.  No  Litigation.    No action, suit, or proceeding or investigation, judicial, administrative  or otherwise (including, without limitation, any reorganization, bankruptcy, insolvency or similar proceeding) currently is pending or, to the best of Borrower's knowledge, threatened or contemplated against or affecting Borrower, SPE Equity Owner, any Guarantor or the  Property  that  has not  been  disclosed by Borrower in  writing to  Lender and  which,  if adversely determined, could reasonably be expected to have a Material Adverse Effect.

8.05.   Business Purpose of Loan. Borrower will use the proceeds of the Loan solely for the purpose of carrying on a business or commercial enterprise and not for personal, family or household purposes.

8.06.    Warranty of Title.  Borrower has good, marketable and insurable fee simple title of record to the Property, free and clear of all Liens whatsoever except for the Permitted Encumbrances.   When properly filed in the appropriate recording or filing office, the  UCC financing statements covering all Personal Property (including, without limitation, the Leases), all in accordance with the tenus thereof, will in each case be subject only to Permitted Encumbrances.   None of the Permitted Encumbrances, individually or in the aggregate: (a) materially interferes with the benefits of the security intended to be provided by the Security Instrument, (b) materially and adversely affects the value of the Property, or (c) materially and adversely impairs the use and operations of the Property.  Borrower owns or has rights  in all collateral given as security for the Loan, free and clear of any and all Liens except for the Liens created in favor of Lender in connection with the Loan.  Borrower shall forever warrant, defend and preserve the title and the validity and priority of the Liens created in favor of Lender in connection with the Loan and shall forever warrant and defend the same to Lender against  the claims of all persons whomsoever.

8.07.    Condition of the Property. To the best of Borrower's knowledge, information and belief, and subject to the information contained in those certain property condition reports prepared and delivered to Lender in c01mection with the underwriting of the Loan: (a) the Improvements are structurally sound, in good repair and free of any material defects in materials and workmanship and have been constructed and installed in substantial compliance with the

plans  and  specifications relating thereto;  (b)  all major building systems located within  the Improvements (including, without limitation, the heating and air conditioning systems, the electrical systems, plumbing systems; (c) all liquid and solid waste disposal, septic and sewer systems) are in good working order and condition and to the best of Borrower's knowledge, information and belief, in compliance with all Requirements of Law and (d) the Property is free from damage caused by fire or other casualty.

8.08.   No Condemnation. No Condemnation proceeding has been commenced or, to the best of Borrower's knowledge, is contemplated with respect to all or any portion of the Property or for the relocation of roadways providing access to the Property.

8.09.   Requirements of Law.   The Property and its present and contemplated use and occupancy are in material compliance with all Requirements of Law.

8.10.   Operating Permits.   Borrower, as fee owner and subject to the terms of the Walgreens Lease to the extent the landlord thereunder is obligated to do so, has obtained all licenses, permits, registrations, certificates and other approvals, governmental and otherwise (including, without limitation, zoning, building code, land use and environmental), necessary for the use, occupancy and operation of the Property and the conduct of its business thereat, all of which are in full force and effect as of the date hereof   No event or condition currently exists which could result in the revocation, suspension, or forfeiture thereof.

8.11.    Separate Tax Lot.  Except as may be disclosed in the Title Insurance Policy, the Property is assessed for real estate tax purposes as one or more wholly independent tax lot or lots, separate from any adjoining land or improvements not constituting a part of the Property.

8.12.   Flood  Zone.    Except  as  otherwise disclosed  on  the  survey of  the  Property provided to Lender in connection with the Loan, no portion of the Improvements is located in an area identified by the Federal Emergency Management Agency or any successor thereto, as an area having special flood hazards.

8.13.   Adequate  Utilities.    To  the  best  of  Borrower's  knowledge, the  Property  is adequate!y served by all utilities required for the current or contemplated use thereof.  All water and sewer systems are provided to the Property by public utilities, and the Property has accepted or is equipped to accept such utility services.

8.14.   Public Access. To the best of Borrower's knowledge, all public roads and streets necessary for access to the Property for the current or contemplated use thereof have  been completed, are serviceable and all-weather, and are physically and legally open for use by the public.

8.15.   Boundaries.  Except as otherwise disclosed in the Title Insurance Policy and the survey of the Property delivered to Lender in connection with this Loan, all of the Improvements lie wholly within the boundaries and building restriction lines of the Property, and no easements or  other  encumbrances  affecting the  Property  (including, without limitation, the  Permitted

Encumbrances)  encroach  upon  any  of  the   Improvements.  No  improvements  on   adjacent properties encroach  upon the Property.

8.16.    Mechanic   Liens.   To   the   best   of   Borrower's   knowledge,    no   mechanics', materialmen's or similar  liens or claims have been,  or may be, filed for work, labor or  materials affecting the  Property  which  are  or may  be  Liens  prior,  equal  or subordinate  to  the  Security Instrument.

8.17.    Assessments.     To   the   best   of   Borrower's   knowledge,  no   unpaid    special assessments for public  improvements or assessments otherwise  affecting  the Property currently exist  (other  than assessments for utilities)  or, to the best of Borrower's knowledge,  are  pending, nor  are  improvements contemplated to the  Property  that  may  result  in  any such  assessments (other  than assessments for utilities).

8.18.    Insurance.    In the event Walgreens shall not be in compliance  with  the  terms  of the  Walgreens Lease  to  provide  insurance,   Borrower   shall  obtain  and  deliver  to  Lender  all insurance policies  Lender  has required  pursuant  to Section 9.03 of this Loan Agreement, with all Insurance Premiums  prepaid thereunder,  reflecting the insurance  coverage, amounts  and  other requirements set forth  in this Loan  Agreement.  No  claims  have  been  made under  any  of  such insurance policies,  and  no  party,  including  Borrower,  has  done,  by  act  or omission, anything which  would impair the coverage  of any of such insurance  policies.

8.19.    Leases.   With respect  to the Leases:   (a) the Rent Roll certified by Borrower and dated  on or about the Closing  Date is true, complete  and correct and the Property is not subject  to Leases  other than the Leases identified  on such  Rent Roll; (b) Borrower  has delivered  to Lender complete and  accurate  copies  of  all Leases  and  no verbal  or  written  agreements  exist   which terminate, modify  or supplement the Leases,  except  as otherwise  disclosed  to Lender  in  writing and  acknowledged by  Lender;  (c)  each  Lease,  by  its  terms,  is  subordinate  to  the  lien  of the Security Instrun1ent or the subject of a separate  subordination agreement subordinating the Lease to  the  lien  of  the  Security  Instrument;   (d)  Borrower  is  the  sole  owner  of  the  entire   lessor's interest in the Leases  and has not assigned,  pledged  or otherwise  transferred  the Rents  reserved in  the  Leases  (except  to  Lender);  (e) all of the  Leases  are bona  fide,  arm's-length agreements with  tenants  unrelated  to Borrower;  (f) none  of the Rents  has been collected  for more  than  one (1)  month   in  advance   (and  for  such  purpose,   a  security  deposit   shall  not  be  deemed  Rent collected in advance);  (g) all security deposits  reflected  on the Rent Roll have been collected and are  being  held  by Borrower in the  full  amount  reported  on the  Rent  Roll;  (h)  all  work to be performed by Borrower  under each Lease has been performed  as required  and has been  accepted unconditionally  by  the  applicable   tenant  or  alternatively,  if  any  work  is  not  yet  complete, Borrower is not in default  of its obligations  thereunder with respect  to such work;  (i) no  offsets or defenses  exist in favor of any tenant to the payment  of any portion  of the Rents and Borrower has  no monetary  obligation to any tenant under  any Lease; G) Borrower  has not received notice from  any  tenant  challenging the  validity  or enforceability of  any  Lease;  (k)  all payments due from  tenants  under the Leases are current; (1) no tenant under any Lease is in default thereunder, or  is  a  debtor   in  any  bankruptcy,   reorganization,  insolvency   or  similar  proceeding,  or  has

demonstrated  a history of payment problems which suggest financial difficulty; (m) each  Lease contains  a right of first  refusal to  purchase (but  no option to  purchase  or related  provision); provided,  however, that such right shall not apply to Lender in connection  with a foreclosure, deed-in-lieu  of foreclosure or any other enforcement action under the Loan Documents, but such right shall  apply to subsequent  purchasers of the Property from Lender, and no Lease contains any  other  similar  provision  that  is  otherwise  not  subordinate  to  the  lien  of  the  Security Instrument  pursuant to the terms of a subordination agreement delivered in connection with the closing  of  the  Loan;  and  (n)  no  brokerage  commissions,  finders  fees  or  similar   payment obligations  are due and unpaid by Borrower or any Affiliate of Borrower regarding any  Lease which have  not been disclosed in writing to Lender and for which adequate amounts  have  not been set aside in the TI/LC Reserve Account.

8.20.  Management Agreement.   No change in the Property Manager or Property Management Contract  has occurred since the date of the most recent information submitted  to Lender with respect thereto, other than has been disclosed in writing to Lender.

8.21.   Financial Condition.  Borrower currently is solvent and has received reasonably equivalent  value for its granting of the Liens in favor of Lender in connection with the Loan.  No change  has occurred in the financial condition of Borrower, SPE Equity Owner, Guarantor,  or any of their respective constituent equity owners, general partners or managing members  which would have a Material Adverse Effect, since the date of the most recent financial statements submitted  to Lender with respect to each such party, other than has been disclosed in writing  to Lender and acknowledged by Lender in writing.

8.22.    Taxes.   Borrower  and SPE Equity  Owner have filed  all federal, state,  county, municipal,  and city income  tax returns required  to have been filed by them and have  paid all taxes and related liabilities which have become due pursuant to such returns or pursuant  to any assessments   received  by  them.    Borrower  does  not  know  of  any  basis  for  any  additional assessment  in respect of any such taxes and related liabilities for prior years.

8.23.     No Foreign Person.   Borrower is not a "foreign  person" within the meaning  of
§1445(£)(3) of the Tax  Code.

8.24.    Federal Regulations.   Borrower is not engaged nor will it engage, principally,  or as  one  of  its  important  activities,  in  the  business  of  extending  credit  for  the  purpose   of "purchasing" or "carrying"  any "margin  stock" within the respective meanings of each  of the quoted terms under Regulation U or Regulation G.

8.25.   Investment Company Act; Other Regulations.  Borrower is not an "investment company" or a company "controlled" by an "investment company" within the meaning  of the Investment   Company  Act  of 1940  and  the  regulations  issued  thereunder,  each  as  amended. Borrower  is not subject to regulations under any federal or state statute or regulation which  limits its ability to incur indebtedness.

8.26.    ERISA.    (a)  Borrower  is  not  and  will  not  be an "employee  benefit  plan,"  as defined  in  §3(3)  of ERISA,  subject to Title  I of ERISA, (b)  none  of the  assets of  Borrower constitutes  or will constitute "plan assets" of one or more such plans within the meaning  of 29 C.F.R.  §2510.3-101,  (c)  Borrower  is not  and  will  not  be a "governmental  plan"  within  the meaning  of §3(3) of ERISA, and (d) transactions  by or with Borrower are not and will  not be subject to state statutes regulating investment of, and fiduciary obligations with respect to, governmental  plans.

8.27.    No Illegal Activity as Source of Funds.   No portion of the Property has  been or will be purchased, improved, equipped or furnished with proceeds of any illegal activity.

8.28.  Compliance  with  Anti-Terrorism,  Embargo,  Sanctions  and  Anti-Money Laundering  Laws.  Borrower, SPE Equity Owner, each Guarantor, the Property Manager, and to the best of Borrower's  knowledge, after having made reasonable inquiry (a) each Person owning an  interest  of  20%  or  more  in  Borrower,  SPE  Equity  Owner,  a  Guarantor,  or the  Property Manager  (if  the  Property  Manager  is  an  Affiliate  of  Borrower)  and  (b)  each  tenant  at  the Property:  (i)  is not currently identified  on OFAC  List, and (ii) is not a Person with  whom  a citizen  of  the  United  States  is  prohibited  to  engage  in  transactions  by  any  trade  embargo, economic  sanction, or other prohibition of United States law, regulation, or Executive Order  of the President  of the United States.  Borrower agrees to confirm this representation and warranty in writing on an annual basis if requested by Lender to do so.

8.29.    Brokers  and  Financial  Advisors.    Borrower  has  not  dealt  with  any  financial advisor, broker, underwriter, placement agent or finder in connection with the transaction contemplated  by this Loan Agreement who may be owed a commission  or other compensation which Borrower will not have paid in full as of the Closing Date.

8.30.    Complete  Disclosure;  No  Change  in Facts  or  Circumstances.    To  the  best  of Borrower's knowledge, (a) Borrower has disclosed to Lender all material facts and has not failed to disclose any material fact that could cause any representation or warranty made herein  to be materially  inaccurate, incomplete or misleading and (b) all information  provided in or supplied with the application for Loan, or in satisfaction of the terms thereof, remains true, complete  and correct in all material respects, and no adverse change in any condition or fact has occurred that would make any of such information materially inaccurate, incomplete or misleading.

8.31.    Survival.  The representations and warranties contained  in this Article 8 survive for so long as the Loan remains payable and any Obligation remains to be performed.

ARTICLE9
BORROWER COVENANTS

9.01.    Payment  of  Debt  and  Performance  of  Obligations.    Borrower  shall  fully  and punctually   pay  the  Loan  and  perform  the  Obligations  when  and  as  required  by  the  Loan Documents.   Borrower may not prepay the Loan except in strict accordance with this Loan Agreement.

9.02.     Payment of Taxes and Other Lienable Charges.

(a)       Payment Obligation.   In the event Walgreens shall not be in compliance with the terms of the Walgreens Lease obligating Walgreens to unde1iake the payment of Taxes and Other Charges assessed or imposed against the Property, Borrower shall promptly and fully pay or cause to be paid by their due date all Taxes and Other Charges now or hereafter assessed or charged against the Property as they become due and payable. Borrower shall promptly  cause to  be  paid  and  discharged  any  Lien  which  may  be  or  become  a Lien  against  the  Property (including, without limitation, mechanics' or materialmen's liens).  Except to the extent sums sufficient  to pay Taxes or Other Charges have been deposited with Lender in accordance  with this Loan Agreement,  Borrower shall furnish to Lender, upon request, evidence satisfactory  to Lender that all Taxes and Other Charges have been paid and are not delinquent.

(b)       Right to Contest.  In the event Walgreens shall not be in compliance  with the tenns  of the Walgreens Lease obligating Walgreens to undertake the payment of Taxes and Other Charges assessed or imposed against the Prope1iy, after prior written notice to Lender, Borrower,  at its own expense, may contest by appropriate legal proceeding, promptly  initiated and conducted in good faith with due diligence, the amount or validity or application in whole or in part of any of the Taxes or Other Charges, provided that: (i) no Event of Default exists;  (ii) such  proceeding suspends the collection of such Taxes or Other Charges and the Property  will not be in danger of being sold for such unpaid Taxes or Other Charges, or Borrower has paid all of such Taxes or Other Charges under protest; (iii) such proceeding is permitted under and is conducted  in accordance with the provisions of any other instrument to which Borrower  or the Property is subject and does not constitute a default thereunder; (iv) if Borrower has not paid the disputed  amounts  in  full under  protest,  Borrower  shall  deposit  with  Lender  cash  (or  other security  as may be approved, in writing, by Lender)  in an amount Lender deems sufficient  to insure  the  payment  of any such Taxes  or Other  Charges  together  with  interest and  penalties thereon,  if any, provided that after a Securitization,  one hundred twenty-five percent (125%)  of the contested  amount (plus anticipated penalty and interest) shall be deposited with Lender;  (v) Borrower  furnishes to Lender all other items reasonably  requested  by Lender; and (vi)  upon a final  determination  thereof, Borrower   promptly  pays the amount of any such Taxes  or Other Charges,  together  with  all costs,  interest  and  penalties  which may  be payable in  connection therewith.    Lender  may pay over any security  held  by Lender  pursuant to this Section  to the claimant  entitled  thereto  at  any  time  when,  in  Lender's   judgment,  the  entitlement   of  such claimant  is  established,  and,  to  the  extent  the  security  posted  by  Borrower  with  Lender  is insufficient to pay the full amount due (including, without limitation, any penalties or interest thereon),  Borrower  shall be liable  for the deficiency.    If Lender  pays the deficiency  (which Lender shall not be obligated to do), the amount paid by Lender shall be added to principal, shall bear interest at the Default Rate until paid in full and payment of such amounts shall be secured by the Security Instrument and other collateral given to secure the Loan.

9.03.     Insurance.

(a)       Insurance  Required  During  the  Loan  Term.    Borrower,  at  Borrower's expense, shall obtain and maintain, or cause to be obtained and maintained during the tenn  of the Loan such insurance coverage (including, without limitation, type, minimum coverage  amount, maximum  deductible and acceptable exclusions) for Borrower and the Property as Lender  deems reasonably   necessary  considering,  among  other  things,  the  location  and  occupancy   of  the Property   and  all  uses  of  the  Property.  Lender  reserves  the  right  to  periodically  review  the insurance coverage Lender has required (types, minimum coverage amounts and maximum deductibles)  and to increase or otherwise change the required coverage should Lender  deem an increase   or  change  to  be  reasonably  necessary  under  then  existing  circumstances.  Without limiting  Lender's  rights hereunder in any respect, it shall be deemed reasonable for  Lender  to require  no less coverage than the coverage Lender required to be in place on the Closing  Date. Subject  to the foregoing, Lender shall require the following insurance coverage to be  effective during the term of the  Loan, coverage amounts and deductibles to be acceptable to Lender:

(i)        Property Insurance.  Casualty insurance must be maintained  for the Improvements and all Personal Property insuring against  any peril now or hereafter included within the classification "all  risks of physical loss" and in an amount at all times sufficient to prevent Borrower or Lender from becoming a co-insurer within  the  terms of the applicable policies but in any event at all times equal  to the full replacement cost (as reasonably determined and adjusted from time  to  time  by  Lender)   of  the  Improvements  and   Personal Prope1iy  (without   taking   into   account   any   depreciation   and exclusive  of  excavations,  footings  and  foundations,  landscaping and paving), without any exclusions  for windstorms.   Where  any part of the Improvements constitutes a legal non-conforming use or structure under the Requirements  of Law, such insurance must include  "Ordinance   of  Law  Coverage,"  with  "Time   Element," "Loss  to  the  Undamaged  Portion  of the Building," "Demolition Cost" and "Increased  Cost of Construction" endorsements,  in the amount of coverage requested by Lender.  The policy must  name Lender  as  an  insured  mortgagee   under  a  standard   mortgagee clause.  The deductible shall not exceed $10,000.00.

(ii)       Insurance  against  Acts  of  Terrorism.    The  insurance   coverage provided under Section 9.03(a) in effect as of the Closing Date and during  the  Loan  term  must  also  insure  against  loss  or  damage resulting from acts of terrorism or comparable coverage acceptable to  Lender  in  its  discretion.     The  deductible  shall  not   exceed
$10,000.00.

(iii)      Boiler   and   Machinery   Insurance.      Broad   form   boiler    and machinery   insurance   (without   exclusion   for   explosion)  and systems  breakdown  coverage  must  be  maintained,  covering   all

steam boilers, pipes, turbines, engines or other pressure vessels, electrical  machinery,  HVAC  equipment,  refrigeration  equipment and other similar mechanical equipment located in, on or about the Property in such amount per accident equal to the full replacement cost thereof (as reasonably  determined and adjusted from  time  to time  by  Lender)  and  also  providing  coverage  against   loss   of occupancy or use arising from any breakdown thereof. The  policy must name Lender as an insured under a standard joint loss  clause and provide that all proceeds are to be paid to Lender.

(iv)      Flood  Insurance.    Flood  insurance  must  be  maintained   if  any portion of the Improvements is located in an area identified  by the Federal Emergency Management Agency or any successor  thereto as a 100-year flood zone or special hazard area.  The required coverage  amount  shall  be  the  maximum  allowable  per  building under the then-current  guidelines published by the  Federal Emergency Management Agency or any successor thereto.   Such coverage may need to be purchased through excess carriers  if the required  coverage  exceeds  the maximum  insurance available  for the  Property  under  the  then-current  guidelines  published  by  the Federal Emergency Management Agency or any successor thereto. The policy must name Lender as an insured mortgagee  under a standard mortgagee clause.

(v)         Business Interruption.  Business interruption insurance must be maintained  in  an  amount  sufficient  to  provide  the  lost   rental income for the Property for a period of not less than 1 year  from the date of Casualty, with a 6 month extended period of indemnity (but a minimum of 18 months with a 6 month extended period  of indemnity  at  all  times  during  which  the  outstanding  principal balance of the Note is greater than $25,000,000.00).   For purposes of this coverage, "rental  income" means the sum of (A)  the total, then ascertainable Rents payable under the Leases and (B) the total ascertainable amount of all other payments to be received by Borrower from third parties which are the legal obligation  of the tenants, reduced to the extent such amounts would not be received because of operating expenses not incurred during the period  that any portion of the Property cannot be occupied as a result  of the Casualty.  The  policy  must  name  Lender  as  a  loss  payee   and provide that all proceeds are to be paid to Lender.

(vi)      Liability   Insurance.      Commercial   general   liability   insurance coverage must be maintained, covering bodily injury or death  and property damage, including all legal liability to the extent insurable

and all court costs, legal fees and expenses, arising out of, or connected with,  the  possession,  use,  leasing,  operation, maintenance   or   condition   of   the  Property   in   such   amounts generally  required  by  institutional  lenders  for  properties comparable to the Property  but in no event for a combined  single limit of less than $2,000,000 aggregate and $1,000,000 per occurrence.     In  addition  to  the  required  Commercial   General Liability  insurance,  Borrower  shall  maintain  an    Umbrella  and Excess  Liability  Policy  for  an  amount  equal to  a minimum   of
$10,000,000.00. The required coverage must provide for claims  to
be made on an occurrence  basis.   The policies must name  Lender as an additional insured.

(vii)        Workers'  Compensation  Insurance.     Workers'  compensation insurance must be maintained with respect to all employees of Borrower  employed at the Property, in compliance with the laws of the state in which the Property is located.

(viii)    Earthquake Insurance.  If the Property is located in seismic zone 3 or   seismic   zone   4,   as   defined   by   the   Federal   Emergency Management Agency, earthquake insurance must be maintained  in form, amount and with deductibles satisfactory to Lender.

(ix)      Other  Coverage.     Without  limiting  Lender's   rights  under   this Section 9.03(a), Lender may also require Borrower to maintain builder's risk   insurance   during   any   period   of   construction, renovation  or  alteration  of  the  Improvements,  motor   vehicles liability  insurance  in  connection  with  all  owned  or  non-owned motor vehicles used in connection with the management  or maintenance of the Property, "dram shop" or similar coverage  if alcoholic beverages are sold at the Property, fidelity bond coverage for employees handling Rents and other income from the Property, environmental  insurance,  sinkhole  coverage  and  other  insurance with respect to the Property or on any replacements or substitutions thereof or additions thereto against other insurable hazards or casualties which at the time are commonly insured against  in the case of property similarly situated, due regard being given  to the height and type of buildings, their construction, location, use and occupancy.

(b)       Qualified Insurers; Lender's  Consent.  All insurance must be issued  under valid  and enforceable  policies  of insurance  acceptable  to Lender  and issued by one  or  more domestic  primary  insurers  authorized  to issue insurance  in the  state in which the Property  is located.   Each  insurer must have a minimum investment  grade rating of "A"  or better  (but a

minimum  of "A+  or better" at all times during which the outstanding principal balance  of the Loan is $25,000,000.00 or more) from S & P and/or equivalent ratings from one or more Rating Agencies  acceptable  to Lender.   Lender's  approval of insurance  coverage at any time  is not a representation  or warranty  concerning the sufficiency  of any coverage  or the solvency  of any insurer, and Lender shall not be responsible for, nor incur any liability for, the insolvency  of the insurer or other failure of the insurer to perform.

(c)       Policy Requirements.   All policies must be for a term of not less  than a year  and  name  Lender  as a beneficiary  of such coverage  as provided  in this Section  9.03  or otherwise identified by Lender.  Each policy must also contain: (i) an endorsement or provision that permits recovery by Lender notwithstanding the negligent or willful acts or omission of Borrower; (ii) a waiver of subrogation endorsement as to Lender to the extent available  at commercially  reasonable rates; (iii) a provision that prohibits cancellation or termination  before the expiration  date, denial of coverage upon renewal, or material modification without  at least thirty (30) days prior written notice to Lender in each instance; and (iv) effective waivers  by the insurer  of all claims  for Insurance Premiums  against Lender.  Borrower  shall be permitted  to obtain the required insurance coverage under a blanket policy covering the Property  and other properties and assets not part of the Property, provided that such blanket policy must specify the portion of the total coverage that is allocated to the Property and any sub-limit in such  blanket policy  which is applicable  to the Property and shall otherwise  comply in all respects  with the requirements  of this Section 9.03.  Lender may approve higher deductibles and such other policy modifications that are reasonable under the circumstances for such blanket policies.

(d)     Evidence of Insurance.

Borrower  must deliver to Lender on or before the Closing Date either (i) the original  of each  insurance  policy  required hereunder;  (ii) a copy  of each  original policy certified  by the insurance  agent to be a true, correct and complete copy of the original; (iii) the insurance  binder (Acord Form 25S provided by the insurance carrier) (as well as proof of payment of the premium for the first year); (iv) a certificate of insurance (Acord Form 28 provided by the insurance  agent or,  where form Acord  Form  28 is not available, a certificate  of insurance confirms  the same rights as are confirmed by form Acord Form 28); (v) an original letter from the insurance  carrier on the primary layer, signed by an officer of such carrier, attaching the form of insurance  policy pursuant to  which  coverage will be provided  (and, if applicable,  an original letter  from  each insurance carrier on the excess layers, signed by an officer of each such carrier, agreeing that it is bound to the form of insurance policy delivered by the primary carrier (i.e., agreeing to "follow fonn" to the primary carrier); and provided each such letter must (A) set forth the date by which the policy will be delivered to the Lender, which must not be more than sixty (60) days following the Closing Date and (B) include as attachments all mortgagee/loss payee/additional insured endorsements.  Evidence  of the required coverage for the first year of the Loan (as well  as proof of payment  of the first year's  premium)  must be delivered to Lender on or before the  Closing Date and thereafter not less than thirty (30) days prior to the expiration date of each policy.

(e)       Lender's  Right to Obtain  Insurance for Borrower.    If Borrower  fails  to deliver to Lender the evidence of insurance coverage required by this Loan Agreement and does not cure such deficiency within ten (10) days after Lender's  notice of nondelivery, an Event  of Default shall be deemed to have occurred (without further cure period or notice) and Lender  may procure  such  insurance  at Borrower's  expense,  without  prejudice  to  Lender's  rights  upon  an Event  of Default.   All amounts advanced by Lender to procure the required insurance  shall  be added  to  principal,  secured  by the Security  Instrument  and bear interest  at the Default  Rate. Lender  shall not be responsible for, nor incur any liability for the insolvency of the insurer  or other failure of the insurer to perform, even though Lender has caused the insurance to be placed with the insurer after Borrower's  failure to furnish such insurance.

Notwithstanding  anything to the contrary contained in this Section 9.03, Borrower  and Lender acknowledge that Walgreens shall maintain insurance for the Property in accordance  with the terms set forth in the Walgreens Lease.   Lender hereby approves the insurance currently maintained  by Walgreens and acknowledges that same shall constitute full compliance with the terms  of Section  9.03  of this Loan Agreement.    If at any time  during  the term of  the  Loan Walgreens  shall breach any obligation to maintain the insurance or any coverage required  under the Walgreens Lease,  then Borrower shall immediately  obtain the insurance coverage  required under  this Section 9.03 and provide Lender with the evidence of same required under  Section
9.03(d) hereof.

9.04.    Obligations  upon  Condemnation  or  Casualty.  If  the  Property,  or any  portion thereof,  shall be damaged or destroyed by a Casualty or become subject to any Condemnation, the following shall apply:

(a)        Generally.    Borrower  shall  promptly  notify  Lender,  in writing,  of  any actual  or threatened  Condemnation  or of any Casualty  that damages  or renders unusable  the Property   or  any  part  thereof  and,  except  as  otherwise  provided  below,  shall  promptly   and diligently   pursue  Borrower's   claim  for  a  Condemnation   award  or  insurance  proceeds,   as applicable.   Borrower shall not make any agreement in lieu of Condemnation or accept any Condemnation  award of $250,000  or more without Lender's  prior written  consent.   Borrower shall  not  accept any settlement  of insurance  proceeds  of $250,000  or more with respect  to a Casualty  without Lender's  prior written consent.   If requested  by Lender,  Borrower agrees  to provide  copies to Lender of all notices or filings made or received by Borrower in connection with the Casualty or Condemnation or with respect to collection of the insurance proceeds  or Condemnation  award,  as applicable.   Notwithstanding  that  a Casualty  or Condemnation has occurred,  or that rights to a Condemnation  award or insurance proceeds  are pending, Borrower shall continue to pay the Loan at the time and in the manner provided in this Loan Agreement.

(b)       Lender  Right  to  Pursue  Claim.    Borrower  hereby  grants  Lender   the authority,  at Lender's  option, either: (i) to settle and adjust any claim arising with respect  to the Casualty  or Condemnation  without Borrower's consent, or (ii) to allow Borrower to settle  and adjust such claim; provided that, in either case, the insurance proceeds or Condemnation  award, as applicable,  is paid directly to Lender.   Borrower hereby appoints Lender its attorney-in-fact

with  full  power  of substitution (and  which  shall  be deemed  to be coupled  with an interest and irrevocable until  the  Loan  is  paid  and  the  Security  Instrument   is  discharged of  record,  with Borrower hereby  ratifying  all  that  its  said  attorney  shall  do  by virtue  thereof)  to  endorse  any agreements, instruments or drafts  received  in connection with  a Casualty  or Condemnation.   If any  portion  of the  insurance  proceeds  or  Condemnation award,  as  applicable, should   be  paid directly  to  Borrower,  Borrower  shall  be deemed  to hold such amounts  in trust  for Lender  and shall  promptly remit  such  amounts  to  Lender.    If the Property  is sold,  through  foreclosure  or otherwise, prior to the receipt  of the Condemnation award, Let1der shall  have the right,  whether or not a deficiency  judgment  on the Note shall have been sought, recovered  or denied,  to receive the proceeds of such sale in an amount  sufficient to pay the Loan in full.   All expenses  incurred by  Lender   in  the  settlement and  collection of  amounts   paid  with  respect  to  a  Casualty  or Condemnation  (including,  without   limitation,  reasonable   legal  fees   and  expenses)   shall   be deducted   and  reimbursed to  Lender  from  the  insurance  proceeds  or  Condemnation award,  as applicable, prior  to  any  other  application thereof.     The  insurance  proceeds  or  Condemnation award  paid  or payable  on account  of a Casualty  or Condemnation, as applicable  (including all business  interruption insurance  proceeds  paid as a result of such Casualty  or Condemnation), less expenses  to  be  reimbursed   to  Lender   hereunder, is  referred  to  herein   as  the  "Restoration Proceeds."

(c)        Application of Restoration Proceeds;  Restoration Obligations. Except  as specifically hereafter  provided  in subsection (d) below,   Lender may, in its sole discretion, either (i) apply  the Restoration Proceeds  to payment  of the Loan, whether  or not then due and  payable, or  (ii)  hold  and release  the Restoration Proceeds  to Borrower  (A) for  the  costs  of Restoration undertaken by Borrower  in accordance with this Loan Agreement  and (B) to cover any  shortfall in Operating Income  as a result of such Casualty  or Condemnation that is necessary  to pay  in full the  debt  service  payments  due  from  Borrower  on each Payment  Due  Date  and other  Operating Expenses falling  due during  the period  until  Restoration is completed; provided,  however, that Lender  shall  have no obligation to release  Restoration Proceeds  to fund  amounts  contemplated by clause  (B) unless  (1) Lender  is satisfied  that Restoration Proceeds  are sufficient  to pay  in full the estimated cost to complete  Restoration and (2) all Operating  Expenses to be funded with Restoration  Proceeds   are  approved   by  Lender.     If  Lender  applies   Restoration  Proceeds  to payment  of the Loan and the Loan is still outstanding, interest will continue  to accrue  and  be due on  the  unpaid   principal   at  the  Applicable  Interest   Rate.    If  Lender   makes  the  Restoration Proceeds available  to Borrower  for Restoration, Borrower  shall diligently  pursue  Restoration so as to restore  the Property  to at least  equal value  and substantially the same character  as  existed immediately  prior  to  such  Casualty   or  Condemnation.   All  plans  and  specifications  for  the Restoration and all contractors, subcontractors and materialmen to be engaged in the Restoration, as well  as the contracts  under  which  they  have  been engaged,  shall be subject  to Lender's  prior review  and  approval.    Lender  may  engage,  at Borrower's expense,  an  independent engineer  or inspector to assist Lender  in its review  of the approvals  requested  of Lender  in connection with the  Restoration and  to  periodically  inspect  the  Restoration   in  progress   and  upon  substantial completion.

(d)     Condition  to  Release  of  Restoration  Proceeds  for  Restoration.     Lender agrees to make the Restoration Proceeds available to Borrower  for Restoration as long as:

(i)       The Restoration Proceeds recovered are less than the outstanding principal balance ofthe  Loan.

(ii)     No Event of Default exists.

(iii)      Borrower     demonstrates    to    Lender's     satisfaction     that    the Restoration Proceeds are sufficient to pay in full the estimated  cost to complete Restoration and any shortfalls in Operating  Income  as a result of such Casualty or Condemnation that are anticipated until Restoration   is   substantially   completed,   or,   if  the   Restoration Proceeds  are determined by Lender to be insufficient to pay  such costs in full, Borrower deposits with Lender, in cash or by a cash equivalent  acceptable to Lender,  the additional amount  estimated by Lender to be necessary to pay the full cost of Restoration ("Restoration Deficiency  Deposit").

(iv)      The  Casualty  or Condemnation  has not occurred  in the  eighteen (18) months prior to the Maturity Date (without taking  into consideration any unexercised extension).

(v)       Restoration  can  be  completed  not  later  than  the  earlier   of  (A) twelve (12) months from the date the Casualty or Condemnation occurred,  (B)  the earliest  date  by which  completion  is  required under any Major Lease, (C) the earliest date by which completion is required under the Requirements of Law to preserve the  right to rebuild the Improvements as they existed prior to the Casualty or Condemnation or (D) the expiration of Borrower's business interruption insurance.

(vi)      If  a Condemnation  has  occurred,  less  than  10%  of  the  Land  is taken and the land taken is along the perimeter or periphery  of the Land, and no portion of the Improvements are taken.

(vii)     If a Casualty has occurred, less than 25% of the total floor  area of the   Improvements   is   damaged   or  rendered   unusable   by  the Casualty and Borrower demonstrates to Lender's  satisfaction that a reasonable means of access exists to the Property and within the Improvements unaffected by the Casualty.

(viii)    Borrower  demonstrates  to  Lender's   satisfaction  that  the  tenants under  Major  Leases  will  continue  occupancy  of  the  Property without   rent  abatement  following   Restoration   and   that,   upon

completion of Restoration, the net cash flow of the Property will be restored  to a level sufficient  to cover  all Operating  Expenses of the Property,  including,  without  limitation, supporting  a Debt  Service Coverage  Ratio  at least equal to, or greater than, the greater of (A) the Debt  Service  Coverage  Ratio  existing  as of the  Closing Date, or (B)  the  Debt  Service  Coverage  Ratio  which  existed   as  of the date immediately preceding  such Casualty  or Condemnation.

		
	(ix) 
	The Property  and its use after completion of Restoration will  be in compliance with, and permitted  under,  all Requirements of Law.

(e)        Disbursement Procedure; Holdback.    If the  Restoration  Proceeds will  be made  available by  Lender  to  Borrower  for  Restoration and  the  estimated  cost  of Restoration approved by  Lender  (together   with  all  other  amounts  then  held  by Borrower  pursuant to  this Subsection (e)) is less than $250,000, Lender  shall disburse  the entire  amount  of the Restoration Proceeds  to  Borrower,  and  Borrower   hereby   covenants   and  agrees   to  use  the  Restoration Proceeds  solely   for  Restoration  performed   in  accordance  with   this  Loan  Agreement.     If, however, the estimated cost  of Restoration approved  by Lender  (together  with all other  amounts then held  by Borrower pursuant to this Subsection (e)) is more than $250,000,  Lender  may  retain the   Restoration  Proceeds    in   a   non-interest  bearing    escrow    account   and   make    periodic disbursements to Borrower as follows:

(i)     Disbursements for Restoration.

(A)       Lender  will  disburse  Restoration Proceeds  for the  costs  of Restoration  to,   or  as  directed   by,  Borrower   from   time  to  time   during  the   course   of  the Restoration, upon  receipt   of  evidence  reasonably   satisfactory to  Lender  that  (1)  all  materials installed and work and labor  performed  in connection with the Restoration have been paid  in full (except to  the extent  that  they  are to be paid  out of the requested disbursement), and  (2)  there exist   no  notices   of  pendency,  stop  orders,   mechanics'   or  materialmen's liens   or  notices  of intention to file same, or any other Liens of any nature whatsoever on the Property  arising out of the  Restoration which  have  not  either  been  fully  bonded  and  discharged of record  or,  in the alternative, fully  insured  to  Lender's reasonable satisfaction by  the title  company  insuring  the Lien of the Security Instrument.

(B)     Lender  may limit  disbursements to not more  than  one  (1) per month.
(C)     Lender  may  hold-back   from  each  requested  disbursement an amount equal  to the greater  of (1) ten percent (10%)  of the requested disbursement or  (2) the amount  which  Borrower  is  permitted   to  withhold  under  its  contract   with  the  contractor or supplier to be paid with the proceeds  of such  disbursement (either  a "Restoration Holdback"). Amounts  held   as  the  Restoration  Holdback  shall   be  disbursed  once:   (1)  Lender    receives satisfactory  evidence  that   Restoration  has   been   fully   completed  in  accordance  with   all Requirements of Law;  (2)  Lender  receives  satisfactory evidence  that  all Restoration  costs  have

been  paid  in  full  or  will  be  fully  paid  from  the  remaining  Restoration  Proceeds  and  the Restoration  Holdback;  and  (3)  Lender  receives,  at  Lender's   option,  a  search  of  title  to  the Property, effective as of the date on which the Restoration Holdback is to be disbursed, showing no Liens other than the Permitted Encumbrances or an endorsement to its Title Insurance Policy which updates the effective date of such policy to the date on which the Restoration Holdback  is to  be  disbursed  and  which  shows  no  Liens  since  the  date  of  recordation  of  the  Security Instrument (other than the Permitted Encumbrances).

(D)      Notwithstanding subsection (C) above, Lender may release from the Restoration Holdback payments to a contractor or supplier if: (1) Lender receives satisfactory   evidence   that   such  contractor   has  satisfactorily   completed   its  contract   with Borrower;  (2) such contractor or supplier delivers to Lender an acceptable written waiver  of its mechanic's lien, in recordable form; and (3) Borrower provides written consent from the surety company,   if  any,  which  has  issued  a  payment  or  performance  bond  with  respect  to  such contractor or supplier.

(ii)       Disbursements for Shortfalls in Operating Income.   Provided  that Lender determines  that the Restoration  Proceeds are sufficient  to pay in full the estimated cost to complete Restoration, Lender  will disburse Restoration Proceeds not reserved for Restoration  to pay the shortfall in Operating Income  necessary  to pay (A) first,  the debt service payments due from Borrower  on each Payment  Due Date falling due from the date of the Casualty or Condemnation through the date on which Restoration  is substantially completed and  (B)   then,  any  Operating  Expenses   approved  by   Lender. Lender may require satisfactory evidence that Operating Expenses to be paid have been incurred and may issue payments directly to the  Person  entitled  to  the  payment   claimed  as  an  Operating Expense.

(iii)      Restoration   Proceeds   Deemed   Insufficient.      If, in   Lender's judgment, at any time during Restoration,  the undisbursed  portion of the Restoration Proceeds shall not be sufficient to pay the costs remaining for Restoration to be completed  or to pay any shortfall in Operating Income needed to pay in full Borrower's  debt service payments on the Loan and Operating Expenses anticipated to be incurred during the period of Restoration,  Borrower shall  deposit the  deficiency  with  Lender,  in  cash  or  by  a  cash  equivalent acceptable to Lender (also called a "Restoration Deficiency Deposit"), within ten (10) days after Lender's  notice of such deficiency,   and   no   further   disbursement   of   the   Restoration Proceeds  will be made until such funds are deposited.   Amounts held by Lender as the Restoration Deficiency Deposit shall be disbursed in accordance with this Section 9.04.

(iv)      Consequence of Event of Default.  Lender shall not be obligated to disburse Restoration Proceeds or amounts from the Restoration Holdback   when   an   Event   of   Default   exists,   and   upon   the occurrence of an Event of Default, any undisbursed portion of the Restoration     Proceeds    (including   the   Restoration    Deficiency Deposit and the Restoration Holdback) may, at Lender's  option, be applied against the Loan, whether or not then due or accelerated, in such order and mam1er as Lender determines.

(v)       Surplus Restoration Proceeds After Restoration Completion.  Any Restoration Proceeds remaining after full payment of Restoration costs and unpaid expenses due to Lender for which Lender is permitted reimbursement under this Section 9.04 shall be released to Borrower provided no Event of Default exists, and Borrower delivers  evidence  satisfactory to Lender that (A) Restoration  has been fully completed in accordance with all Requirements  of Law and (B) the Property is free and clear of all Liens which may be asserted with respect to the Restoration.

Notwithstanding  anything to the contrary contained in this Section 9.04,  Borrower  and Lender acknowledge that in the event of an inconsistency between the terms herein and the terms of the Walgreens Lease regarding the subject matters of this Section 9.04, the Walgreens  Lease, to the extent in effect, shall govern and control.

9.05.    Inspections  and Right of Entry.   Lender and its agents  may enter the  Property upon prior notice to Borrower (notice to be given unless an Event of Default or an emergency exists, as determined by Lender in good faith) to inspect the Property and Borrower's books and records  relating  to the  Property.   In making  such  entry and inspection,  Lender  agrees  to  use reasonable  efforts to minimize disturbance to Borrower and tenants of the Property.  Lender and its agents shall have access, at all reasonable times, to the Property, including, without limitation, all contracts,  plans  and specifications,  pem1its, licenses and approvals  required or obtained  in connection with the Property.

9.06.     Leases and Rents.

(a)        Right to Enter into New Leases.  Borrower may enter into new Leases for space at the Prope1iy and renew or extend existing Leases without Lender's  prior written consent provided that each such Lease: (i) is not a Major Lease; (ii) provides for rental rates and terms comparable to existing local market rates and terms (taking into account the type and quality of the tenant) as of the date such Lease is executed (unless in the case of a renewal or extension, the rent payable during such renewal term, or a formula or other method to compute such rent, has been specified in the original Lease); (iii) is an arms-length transaction  with a tenant that is not an  Affiliate  of Borrower;  (iv)  will  not  have  a Material  Adverse  Effect  on  the  value  of  the Property taken as a whole; (v) is subordinate to the Security Instrument (other than with respect to residential  leases) or (vi) is extended pursuant to the Walgreens Lease.  All proposed  Leases

that  do  not  satisfy  the  requirements  set  forth  in  this Section  require  Lender's  prior  written approval at Borrower's expense (including reasonable legal fees and expenses).  Borrower  shall promptly deliver to Lender a copy of each Lease (other than a residential lease) entered into after the Closing Date, together with written certification from a Responsible Officer which confirms that (x) the copy delivered is a true, complete and correct copy of such Lease and (y) Borrower has satisfied all conditions of this Section. Lender's  acceptance of Borrower's  certification  or a copy of any Lease shall not be deemed a waiver of the requirements of this Section if the Lease is not in compliance herewith.

(b)       Leasing Decisions.   Provided  no Event of Default  exists, so long  as the Lease is not a Major  Lease (or as a result of any of the following  actions to be taken  would become  a Major  Lease)  and except as otherwise  provided in  this Subsection,  Borrower  may, without  Lender's  prior written consent: (i) amend or supplement any Lease or waive  any term thereof (including, without limitation, shortening the lease term, reducing rents, granting rent abatements,  or  accepting  a surrender of all or any portion of the leased space); (ii)  cancel  or terminate any Lease; (iii) consent to a tenant's  assignment of its Lease or subleasing of space; or (iv)  amend, .supplement,  waive or  terminate  any  Lease  Guaranty;  provided  that  none  of the foregoing  actions  (taking into account tl1e pla1n1ed alternative  use of the affected space  in the case of termination, rent reduction, surrender of space or shortening of term) will have a Material Adverse Effect on the value of the Property taken as a whole and such Lease, as amended, supplemented  or waived,  is otherwise in compliance with the requirements  of Section  9.06(a) hereof.    Tem1ination  of  a Lease (other  than  a Major Lease)  with a tenant  who  is  in  default beyond applicable  notice and grace/cure periods shall not be considered an action which  has a Material Adverse Effect on the value of the Property taken as a whole.  Any action with respect to  any  Lease  that  does  not  satisfy  the  requirements  set forth  in  this  Section  9.06  requires Lender's   prior   written   approval  at  Borrower's   expense  (including   reasonable  legal   fees). Borrower  shall  promptly  deliver to Lender  a copy of all instruments  documenting  the  action taken, together with written certification from a Responsible Officer that (x) the copies delivered are true, complete  and correct copies of the materials represented thereby and (y) Borrower  has satisfied all conditions  of this Section 9.06. Lender's  acceptance of Borrower's  certification  or a copy of such Lease materials shall not be deemed a waiver of the requirements of this Section
9.06 if the action taken is not in compliance herewith.

(c)        Observance of Lessor Obligations. Borrower (i) shall observe and perform all obligations  imposed  upon the lessor under the Leases and shall not do or permit to be done anything to impair  the value of any of the Leases as security for the Loan; (ii) upon  Lender's request, shall promptly send copies to Lender of all notices of default which Borrower shall send or receive (or may have sent or received) under any non-residential Lease; (iii) shall enforce in a commercially  reasonable ma1n1er all of the material terms, covenants and conditions contained in the Leases to be observed or performed by the tenant; (iv) shall not collect any Rents more than one  (1)  month  in  advance  (and for this  purpose  a security deposit  shall not be deemed  rent collected in advance); and (v) shall not execute any assignment or pledge of the lessor's interest in any of the Leases or the Rents (other than in co1n1ection with the Loan).

9.07.    Use  of Property.   Borrower shall  not allow changes  in the use of the  Property without  Lender's  prior written consent.   Borrower  shall not initiate, join in, or consent  to any change in any private restrictive covenant or zoning or land use ordinance limiting or  defining the uses which may be made of the Prope1iy.  If use of all or any portion of the Property  is or shall become a nonconforming  use, Bo1rower will not cause or permit the nonconforming  use to be discontinued  or the nonconfonning  portion of the Property to be abandoned without Lender's prior written consent.

9.08.    Maintenance  of Property. In the event Walgreens shall not be in compliance  with the terms  of the Walgreens  Lease obligating Walgreens to undertake the following obligations, Borrower  shall maintain the Property in a good and safe condition and repair.  No portion  of the Property   shall  be  removed,  demolished  or  materially  altered  (except  for  normal  repair  or replacement)  without Lender's  prior written consent.  Borrower shall promptly repair or replace any portion of the Property which may become damaged, worn or dilapidated.

9.09.    Waste.   In the event Walgreens shall not be in compliance with the terms  of the Walgreens  Lease obligating  Walgreens to undertake the following obligations,   Borrower  shall not commit  or suffer  any material, physical waste of the Property or do or permit to  be done thereon anything that may in any way impair the value of the Property or invalidate the insurance coverage required hereunder to be maintained by Borrower.  Borrower will not, without Lender's prior written consent, permit any drilling or exploration for or extraction, removal, or production of  any  minerals  from  the  surface  or  the subsurface  of the Property,  regardless  of  the  depth thereof or the method of mining or extraction thereof.

9.10.     Compliance with Laws.

(a)        Obligation  to Perform.  Borrower  shall promptly  and materially  comply with all Requirements  of Law now or hereafter  affecting the Property.   Borrower shall  notify Lender promptly of Borrower's knowledge or receipt of any notice related to a material violation of  any  Requirements  of  Law  or of the commencement  of any  proceedings  or investigations which  relate  to compliance  with Requirements  of Law.   At Lender's  request, Borrower  shall provide Lender with copies of all notices, reports or other documents relating to any litigation  or governmental  investigation relating to Borrower or the Property.

(b)       Right  to Contest.   After prior written notice to Lender, Borrower,  at its own expense,  may contest by appropriate legal proceeding, promptly initiated and conducted  in good  faith  and with due diligence, the Requirements  of Law affecting the Property  or  alleged violation  thereof,  provided  that: (i) no Event  of Default  exists; (ii) such proceeding  shall  be permitted under and be conducted in accordance with the Requirements of Law; (iii) the Property will not be in danger of being sold, forfeited, terminated, cancelled or lost; (iv) non-compliance with such Requirement  of Law shall not impose any civil, criminal or environmental liability  on Lender  or Borrower;  (v) Borrower deposits  with Lender cash (or other security acceptable to Lender) in such amount as Lender deems sufficient to cover loss or damage that may result from Borrower's failure  to prevail  in such contest, provided that after a Securitization,  one  hundred twenty-five   percent  (125%)  of  the  amount  estimated  by  Lender  is  deposited;  (vi)  Borrower

furnishes to Lender all other items reasonably requested by Lender; and (vii) upon a final determination  thereof, Borrower promptly complies with the obligations determined to be applicable.

9.11.     Financial Reports, Books and Records.

(a)       Delivery of Financial Statements.   Borrower shall keep adequate books and records of account with respect to its financial condition and the operation of the Property, in accordance with GAAP consistently applied (or such other method which is reasonably acceptable to Lender; Lender acknowledges the financial statements received for Guarantors and Borrower's Affiliates in connection with Closing are in a form reasonably acceptable to Lender), and shall furnish the following to Lender, each prepared in such detail as reasonably required by Lender and certified by a Responsible Officer to be true, complete and correct:

(i)        as soon as available, but in any event within thirty (30) days after the end of each fiscal quarter, a quarterly Rent Roll providing the required information as of the end of such fiscal quarter;

(ii)       as soon as available, but in any event within thirty (30) days after the end of each fiscal quarter, a quarterly operating statement for the Property detailing the operating income received, operating expenses    incurred,    the    cost    of    all    Immediate   Repairs, Replacements    and     Tenant     Improvements    and     Leasing Commissions performed or paid during such quarter, and the Debt Service Coverage Ratio as of the end of such fiscal quarter;

(iii)     as soon as available, but in any event within ninety (90) days after the close of Borrower's fiscal year, (A) an annual Rent  Roll, presented on an annual basis consistent with the quarterly  Rent Rolls described above; (B) an annual operating statement for the Property presented on an annual basis consistent with the quarterly operating statements described above; (C) an annual balance sheet and profit and loss statement for Borrower; and (D) a statement of change of financial position of Borrower, setting forth in comparative form the figures for the previous fiscal year;

(iv)      as soon as available, but in any event at least thirty (30) days prior to the start of each calendar year, an annual operating budget for the Property presented on a monthly basis consistent with the information required in the quarterly operating statement described above which budget shall be subject to Lender's approval  (each such budget as approved, the "Approved Budget");

(v)       upon Lender's request, monthly Rent Roll and operating statements for the Property; and

(vi)    such  other  financial  information  or  property  management information  (including,  without  limitation,  copies  of Borrower's state and federal tax returns, if applicable, information  on tenants under  Leases  to  the   extent   such   information   is  available   to Borrower, copies of bank account statements from financial institutions where funds owned or controlled by Borrower are maintained, and an accounting of security deposits)  as may reasonably be required by Lender from time to time.

(b)       Lender  Audit Rights.   Lender  and its agents have the right, upon  prior written notice to Borrower (notice to be given unless an Event of Default exists), to examine the records, books and other papers which reflect upon Borrower's financial condition or pertain to the income,  expense  and management  of the Property  and to make copies and abstracts  from such  materials.  Lender  also shall have the right, from time to time (but, in the absence  of an Event of Default existing, not more than annually) and upon prior notice to Borrower (notice to be given unless  an Event of Default exists), to have an independent  audit conducted of any of Borrower's  financial   information.     Lender  shall  pay  the  cost  of  such  audit  unless  Lender performed the audit following the occurrence of an Event of Default or if the results of Lender's audit  disclose  an  error  by  more  than  ten  percent  (10%),  in  which  case  (and  in addition  to Lender's  other remedies)  Borrower shall pay the cost incurred by Lender with respect  to such audit upon Lender's  demand.  Upon Borrower's failure to pay such amounts, and in addition to Lender's  remedies  for  Borrower's  failure  to  perform,  the  unpaid  amounts  shall  be  added  to principal, shall bear interest at the Default Rate until paid in full, and payment of such amounts shall be secured by the Security Instrument and other collateral given to secure the Loan.

(c)        Financial  Reports  From Guarantors  and SPE  Equity  Owner.    Borrower shall cause each Guarantor and, at Lender's request, the SPE Equity Owner, to provide to Lender (i) within ninety (90) days after the close of such party's fiscal year, such party's balance  sheet and profit and loss statement (or if such party is an individual, within ninety (90) days after the close of each calendar year, such party's personal financial statements) in form reasonably satisfactory  to  Lender  and certified  by such party to  be accurate  and complete;  and  (ii)  such additional financial  information as Lender may reasonably require from time to time and in such detail  as reasonably  required  by Lender,  which  shall  not  include  federal  or state  tax  return; provided, however, that (A) no Event of Default shall have occurred and be continuing  and (B) Guarantor, within ten (10) business days following written request by Lender therefore,  delivers a  certified  statement   indicating  there  has  been  no  material  adverse  change  in  Guarantor's financial condition  as of the Closing Date, the financial reporting requirements  set forth  above with respect to Guarantor shall be waived.

(d)        Reporting  Subsequent  to Securitization.   Notwithstanding  the foregoing, after a Securitization,  Borrower shall  only be required  to furnish the following  to Lender:  (i) copies of all financial information provided to Borrower by Walgreens; and (ii) upon Lender's request,  confirmation whether Walgreens is open for business at the Property and is paying all Operating Expenses relating to the Property.

9.12.    Performance  of  Other  Agreements.    Borrower  shall  observe  and  perform  in a timely  manner each and every obligation to be observed or performed by Borrower pursuant to the terms of any agreement or recorded instrument affecting or pertaining to the Property  or used in connection with the operation of the Property (including, without limitation, the Operating Agreements).   Without limiting the foregoing, Borrower shall (a) give prompt notice to Lender of  any  notice  received  by Borrower with respect  to  any of the  Operating  Agreements  which alleges  a default or nonperformance  by Borrower thereunder, together  with a complete  copy of any such notice; (b) enforce, short of termination,  performance  of the Operating Agreements  to be performed or observed, and (c) not terminate or amend, or waive compliance with, any of the Operating  Agreements  without  Lender's  prior written consent,  except as may be (i)  permitted pursuant  to the respective terms thereof or (ii) absent the existence of an Event of Default,  done in the ordinary course of business.  If the absence of an Operating Agreement that has terminated will have a Material Adverse Effect on the value of the Property, Borrower agrees to enter into a new  Operating  Agreement  in replacement ·of the terminated  Operating  Agreement,  containing tenns  and conditions no less favorable to Borrower than the terminated Operating Agreement. Borrower  shall notify Lender if Borrower does not replace the terminated Operating Agreement.

9.13.    Existence;  Change of Name;  Location  as a Registered  Organization.   Borrower shall  continuously maintain  (a) its existence and shall not dissolve or permit its dissolution,  and (b) its rights and franchises  to do business in the state where the Property is located.   Borrower shall not change Borrower's name, legal entity, or its location as a registered organization  within the meaning  of the UCC, without notifying Lender of such change in writing at least thirty (30) days prior to its effective date.  The notification requirements set forth in this Section 9.13 are in addition to, and not in limitation of, the requirements of Article 7.  Borrower shall pay all costs and  expenses  incurred   by  Lender  (including,  without  limitation,   reasonable  legal   fees)  in connection with any change described herein.

9.14.     Property Management.

(a)       Borrower shall cause the Property Manager to manage the Property in a commercially  reasonable  manner.  Borrower shall not remove or replace the Property  Manager (which, with respect to a Property Manager which is an Affiliate of Borrower, shall be deemed to occur upon a change of Control of the Property Manager) or modify or waive any material  terms of the Property Management Contract without Lender's  prior written consent and, ifrequested by Lender, a Rating Confirmation.  Upon replacement of the Property Manager, Borrower shall, and shall cause the new manager of the Property to, execute an Assignment of Property Management Contract  in fonn  and substance  similar  to the Assignment  of Property  Management  Contract executed  by the Property  Manager.   Borrower  shall  comply  with all obligations  of  Borrower under the Assigmnent of Property Management Contract.  The property management fee and all other  fees  payable  under  the  Property  Management  Contract  shall  not  exceed  3%  of  gross revenues.

(b)       Termination of Property Manager.  Following the occurrence of an Event of Default,  Borrower agrees, that, Lender may deliver written notice to Borrower and Property

Manager   tem1inating  the   Property   Management   Contract,   which   notice   shall   specify   in reasonable  detail the grounds for Lender's  determination.   If Lender reasonably determines  that the conditions  specified in Lender's  notice are not remedied to Lender's reasonable satisfaction by Borrower  or  Property  Manager  within thirty  (30)  days  from  receipt  of such  notice  or if Borrower  or  Property  Manager  has failed  to  diligently  undertake  correcting  such  conditions within such thirty (30) day period. Lender may direct Borrower to terminate the Property Management  Contract and to replace Prope1iy Manager with a management company acceptable to Lender.

9.15.    ERISA.   Borrower  shall not engage in any  transaction  which would  cause  any obligation  or action taken or to be taken hereunder by Borrower  (or the exercise by Lender  of any of its rights under any of the Loan Documents)  to be a non-exempt  (under a statutory  or administrative  class exemption) prohibited transaction under ERISA.  Borrower agrees to deliver to Lender  such certifications  or other evidence throughout the term of the Loan as requested  by Lender  in  its  sole  discretion  to  confirm  compliance  with  Borrower's  obligations  under  this Section  9.15  or  to  confirm  that  Borrower's  representations  and  warranties  regarding  ERISA remain true.

9.16.    Compliance    with    Anti-Terrorism,    Embargo,    Sanctions    and    Anti-Money Laundering Laws.  Borrower shall comply with all Requirements of Law relating to money laundering,  anti-terrorism,  trade embargoes and economic sanctions, now or hereafter  in effect. Without  limiting the foregoing, Borrower shall not take any action, or permit any action  to be taken, that would cause Borrower's representations and warranties in Section 8.28 of this  Loan Agreement  to become untrue or inaccurate at any time during the term of the Loan.   Borrower shall  notify  Lender  promptly  of  Borrower's   actual  knowledge  that  tl1e representations  and warranties  in Section 8.28 of this Loan Agreement may no longer be accurate or that any  other violation of the foregoing Requirements of Law has occurred or is being investigated  by Governmental  Authorities.   In connection with such an event, Borrower shall comply with all Requirements   of  Law  and  directives  of  Governmental  Authorities  and,  at Lender's  request, provide  to Lender  copies of all notices, reports and other communications  exchanged  with, or received from, Governmental  Authorities relating to such event.  Borrower shall also reimburse Lender for any expense incurred by Lender in evaluating the effect of such an event on the Loan and Lender's interest in the collateral for the Loan, in obtaining any necessary license  from Governmental  Authorities  as may be necessary for Lender to enforce its rights under the  Loan Documents, and in complying with all Requirements of Law applicable to Lender as the result of the existence  of such an event and for any penalties or fines imposed  upon Lender  as  a result thereof.

ARTICLE 10
NO TRANSFERS OR ENCUMBRANCES;  DUE ON SALE

10.01. Prohibition Against Transfers. Borrower shall not permit any Transfer to be undertaken  or cause any Transfer to occur other than a Permitted Transfer.  Any Transfer  made in violation of this Loan Agreement shall be void.

10.02.  Lender  Approval.     Lender's   decision  to  approve  any  Transfer  proposed   by Borrower  shall be made in Lender's  sole discretion and Lender shall not be obligated to approve any  Transfer.    Borrower  agrees  to supply  all information  Lender  may  request  to evaluate  a Transfer,   including,   without   limitation,   information    regarding   the   proposed   transferee's ownership  structure, financial condition and management experience for comparable properties. Borrower   acknowledges   that  Lender  may  impose  conditions  to  its  approval  of  a  Transfer, including,  without limitation, (a) no Event of Default, or an event which with the giving of notice or lapse of time or both could become an Event of Default, has occurred and is continuing,  (b) approval  of the proposed transferee's  ownership structure, financial  condition and management experience  for comparable properties, (c) payment of an assumption fee (i) equal to one half of one percent  (0.5%) of the outstanding principal balance of the Loan for the first such Transfer and (ii)  equal to one percent  (1%) of the outstanding  principal  balance of the Loan  for  each subsequent  transfer, (d) approving substitute guarantors, (e) assumption in writing (acceptable  to Lender  in  its  sole  discretion)  by  the  transferee  and  a  guarantor  (which  guarantor  must  be acceptable  to Lender in  its sole discretion)  of all obligations  of the transferor and Guarantor under the Loan Documents and execution and delivery of such other documentation  as may be required  by Lender  and the Rating  Agencies, (f)  delivery  of  a new substantive  consolidation opinion,  a  tax  opinion  and  other  applicable  opinions  as required  by  Lender  and  the  Rating Agencies, (g) adjusting amounts required for the Reserve Accounts, and (h) obtaining Rating Confirmations if a Securitization has occurred.  Borrower agrees to pay all of Lender's  expenses incurred  in   connection   with   reviewing   and  documenting   a  Transfer   (including,   without limitation,  the costs of obtaining Rating Confirmations  ifrequired), which amounts must be paid by Borrower  whether or not the proposed Transfer is approved.  Upon Borrower's  failure  to pay such amounts, and in addition to Lender's remedies for Borrower's failure to perform, the unpaid amounts  shall be added to principal, shall bear interest at the Default Rate until paid in full, and payment  of such amounts shall be secured by the Security Instrument and other collateral  given to secure the Loan.

10.03.  Borrower Right to Partial Defeasance and Release for Allocated Maximum  Loan
Amount.

(a)       Right to Release.   After the Lock-out  Period Expiration Date, Borrower shall have the right, from time to time, to partially defease the Loan and obtain a partial  release ("Partial  Release")  of a Release Property from the Security  Instrument,  Assignment  of Leases and Rents and related UCC financing statements upon satisfaction of the conditions to a Release set forth in Section 2.05(b).  Borrower must provide not less than thirty (30) days prior  written notice to Lender requesting a Partial Release and identifying the Release Property and date upon which  it  desires  to  have  the  Release  Property  released  ("Partial  Release  Date").     Lender's agreement  to  a Partial  Release  shall  be  subject  to  the  following  conditions,  which  must  be satisfied to Lender's reasonable satisfaction:

(i)        No Event of Default shall have occurred and be continuing  at the time Borrower requests a Partial Release or on the Partial  Release Date.

(ii)      On or before the Partial Release Date, Borrower shall arrange to partially defease the Loan, in accordance with Section 2.05(b), in an amount equal to one hundred twenty-five percent (125%) of the Partial Release Price allocated to the Release Property under this Loan Agreement.

(iii)     As of the Partial Release Date, and after giving effect to the Partial Release to occur on such date the Loan to Value Ratio for the remaining Property is no more than eighty percent (80%), as determined by Lender in accordance with Lender's then standard and customary underwriting criteria and requirements for similarly situated properties and loans.

(iv)      Borrower  has  delivered  to  Lender  forms  of   all  documents necessary to release the Release Property from the liens created by the Security Instrument, Assignment of Rents and Leases and related UCC financing statements, each in appropriate form required by the state in which the Release Property is located and otherwise satisfactory to Lender in all respects.

		
	(v)      Borrower has delivered a Compliance Certificate along with a certificate
	from   a   Responsible   Officer   ce1iifying  that   the requirements set forth in this Section 10.03 have been satisfied in all material respects.

(vi)     Borrower has paid all amounts then due and unpaid under the Loan Documents through (and including) amounts due on the Release Date and in connection with the Partial Release.

(vii)    As of the Partial Release Date, and, after giving effect to the Partial Release to occur on such date, the Debt Service Coverage Ratio for the remaining Property is at least 1.10:1.00, as determined by Lender.

(viii)   Lender shall have received a copy of a deed conveying all of the Borrower's right, title and interest in and to the Release Property to an entity other than Borrower and any SPE Equity Owner and a letter from Borrower countersigned by a title insurance company acknowledging receipt of such deed and agreeing to record such deed in the real estate records of the appropriate recording office in which the Release Property is located.

(b)       Reimbursement of  Lender Expenses.    Borrower  agrees to  pay  all of Lender's  expenses incurred in connection with reviewing and documenting such Partial Release (including,  without  limitation, the  costs  of  obtaining Rating  Confirmations if  required  by

Lender), which amounts must be paid by Borrower whether or not the proposed Partial Release is approved or executed.   Upon Borrower' s failure to pay such amounts, and in addition to Lender's  remedies for Borrower's failure to perform, the unpaid amounts shall be  added to principal, shall bear interest at the Default Rate until paid in full and payment of such amounts shall be secured by the Security Instrument and other collateral given to secure the Loan.

(c)       Liens of Security Instrument Otherwise Unaffected.  No Partial Release granted  by  Lender shall, in any way, impair or affect the  lien or  priority of  the  Security Instrument relating to the portion of the Property not included in the Partial Release or improve the position of any subordinate lienholder with respect thereto, except to the extent  that the obligations  hereunder shall have been reduced by the actual monetary consideration, if any, received by Lender for such Partial Release.  The Security Instrument shall continue as a Lien and security interest on the portion of the Property not included in a Partial Release.

10.04.    Other Releases of the Mortgaged Property.  In addition to the rights granted to Borrower under Section 10.03  with respect to the Release Properties, Lender may release any other portion of the Property for such consideration and upon such conditions as Lender may require without, as to the remainder of the Property, in any way impairing or affecting the Lien or priority of the Security Instrun1ent or improving the position of any subordinate lienholder with respect thereto, except to the extent that the obligations hereunder shall have been reduced by the actual monetary consideration, if any, received by Lender for such release, and Lender may accept by assignment, pledge or otherwise any other property in place thereof as Lender may require without being accountable for so doing to any other lienholder.  Notwithstanding anything to the contrary herein, Borrower shall have no right to request and Lender shall have no obligation to grant its consent to any release pursuant this Section 10.04.

10.05.    OFAC  Compliance;  Substantive  Consolidation   Opinion.     Notwithstanding anything to the contrary contained in this Article 10 (but without any Transfer deemed permitted solely  by this Section 10.05),  (a) no transfer (whether or not such transfer shall constitute a Transfer)  shall be made to any Person on the OFAC List and (b) in the event any  transfer (whether or not such transfer shall constitute a Transfer) results in any Person owning in excess of forty-nine percent (49%) of the ownership interest in Borrower or any SPE Equity Owner (if such  Person  has  not  owned at least forty-nine percent (49%)  of  the ownership interest  in Borrower or any SPE Equity Owner, as applicable, prior to such transfer), Borrower shall, prior to such transfer, deliver a new substantive consolidation opinion letter with respect to the new equity  owners which is acceptable in all respects to Lender and to the Rating Agencies  if a Securitization has occurred.

ARTICLE 11
EVENTS OF DEFAULT; REMEDIES

11.01.    Events of Default.  The occurrence of any one or more of the following events shall, at Lender's option, constitute an "Event of Default" hereunder:

(a)       If any payment of principal and interest (or interest if the Loan is interest- only) is not paid in full on or before the fifth (5th) day from and including the Payment Due Date on which such payment is due (e.g., if the Payment Due Date is the 1st day of month, an Event of Default occurs if the payment is not received on or before the fifth (5th) day of the month);

(b)     If any monthly payment required to be made to a Reserve Account  is not paid in full on or before the fifth (5t)  day from and including the Payment Due Date on   which such payment is due;

(c)      If unpaid principal, accrued but unpaid interest and all other amounts outstanding  under the Loan Documents are not paid in full on or before the Maturity Date;

(d)     If  an "Event  of Default"  as that term is  defined  under any other  Loan
Document has occurred;

(e)    If the Prohibited Prepayment Fee is not paid in full when required;

(f)        If any representation or warranty made by Borrower, SPE Equity  Owner or any Guarantor herein, in the Guaranty, in the Environmental Indemnity or in any other  Loan Document,  or  in  any certificate,  report, financial  statement  or  other  instrument or  document furnished  to Lender in connection herewith or hereafter, or in connection  with any request  for consent  by  Lender  made  during the term of the Loan  shall have  been  known by the  Person making it to be false or misleading in any material respect as of the date made;

(g)       If  Borrower,  SPE  Equity  Owner  or  any  Guarantor  shall  (i)  make  an assignment for the benefit of creditors; (ii) generally not be paying its debts as they become  due; or (iii) admit in writing its inability to pay its  debts as they become due;

(h)       If (i) Borrower, SPE Equity Owner or any Guarantor shall commence  any case, proceeding or other action under any existing or future law of any jurisdiction, domestic  or foreign, relating  to bankruptcy, insolvency, reorganization, conservatorship  or relief of  debtors (A) seeking  to have an order for relief entered with respect to it, or seeking to adjudicate  it a bankrupt  or insolvent,  or seeking reorganization,  arrangement,  adjustment, winding-up, liquidation,  dissolution, composition or other relief with respect to it or its debts, or (B)  seeking appointment  of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial  part of its assets; or (ii) there shall be commenced  against Borrower,  SPE Equity Owner or any Guarantor any case, proceeding or other action of a nature referred  to in clause (i) above by any party other than Lender which (A) results in the entry of an  order for relief or any such adjudication or appointment, or (B) remains undismissed, undischarged or unbonded for a period of ninety (90) days; or (iii) there shall be commenced against Borrower, SPE Equity Owner or any Guarantor any case, proceeding or other action seeking issuance  of a warrant of attachment, execution, distraint or similar process against all or any substantial  part of its assets which results in the entry of any order for any such relief which shall not have  been vacated, discharged,  or stayed or bonded pending appeal within ninety (90) days from the entry thereof;  or  (iv)  Borrower,  SPE  Equity  Owner  or  any  Guarantor  shall  take  any  action  in

furtherance  of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above;
 
(i)     If any  Guarantor  repudiates  or revokes  the  Guaranty  or Environmental 
Indemnity;

G)       If any judgment for monetary damages is entered against Borrower,  SPE Equity  Owner or any Guarantor which, (i) in Lender's  sole judgment,  has a Material  Adverse Effect and (ii) (A) is not covered to Lender's reasonable satisfaction by collectible insurance proceeds, or (B) Borrower does not fully satisfy within ten (10) business days after it is entered;

(k)       If Borrower or SPE Equity  Owner violates  or fails to comply with  any provision of Article 7 of this Loan Agreement (captioned:  Single Purpose Entity Requirements); provided,  however,  that such violation or failure shall not constitute an Event of Default  if (i) such violation  or failure is inadvertent, immaterial and non-recurring  and (ii) such violation  or failure is curable, Borrower shall promptly cure such breach within thirty (30) days;

(1)       If  Borrower  materially  violates   or  fails  to  comply  with  any  of  the provisions of Section 9.03 (captioned: Insurance), Section 9.06 (captioned: Leases and Rents), or Section 9.13 (captioned: Existence, Change of Name  or Location as a Registered Organization);

(m)     If  a  Transfer  (other  than  a  Permitted  Transfer)  shall  occur  without
Lender's prior written consent or in violation of the terms of Lender's consent;

(n)       If   Borrower   abandons   or   ceases   work   on   any   Immediate   Repair, Replacement  or Tenant Improvement for a period of more than twenty (20) consecutive  days, unless  such  cessation  results  from  causes  beyond  the  reasonable  control  of  Borrower   and Borrower is diligently pursuing reinstitution of such work;

(o)       If a Lien other than a Permitted Encumbrance is filed against the Property, unless such Lien  is promptly contested in good faith by Borrower  as permitted  in accordance with Section 9.02(b);

(p)       If  any  of  the  assumptions  contained  in  the  substantive  consolidation opinion, if any, delivered to Lender in connection with the Loan, or in any update thereof or in any additional substantive consolidation opinion delivered subsequent to the closing of the Loan, is or shall become untrue in any material respect;

(q)       Except for the specific defaults set forth in this Section 11.01, if any other default occurs hereunder or under any other Loan Document which is not cured (i) in the case of any default  which  can be cured by the payment of a sum of money, within five (5) days after written notice from Lender to Borrower, or (ii) in the case of any other default, within thirty (30) days after written  notice from Lender to Borrower; provided that if a default under clause (ii) cannot reasonably  be cured within such thirty (30) day period and Borrower has responsibly commenced  to  cure  such  default  promptly  upon  notice  thereof  from  Lender  and  thereafter

diligently  proceeds to cure same, such thirty (30) day period shall be extended for so long as it shall require Borrower, in the exercise of due diligence, to cure such default, but in no event shall the entire cure period be more than ninety (90) days.

11.02.  Remedies.   If an Event of Default occurs, Lender may, at its option, and without prior notice or demand, do and hereby is authorized and empowered by Borrower so to do, any or all of the following:

(a)       Acceleration.   Lender may declare the entire unpaid principal balance of the Loan to be immediately  due and payable.  If such acceleration takes place prior to the Open Date,  an amount  equal to the Prohibited Prepayment Fee shall be added to the balance  of the Debt.

(b)       Recovery  of Unpaid  Sums.  Lender  may,  from  time to time,  take  legal action  to recover any sums as the same become due, without regard to whether or not the Loan shall be accelerated  and without prejudice to Lender's  right thereafter to accelerate the Loan or exercise any other remedy, if such sums remain uncollected.

(c)       Foreclosure.   Lender may institute proceedings, judicial or otherwise,  for the complete  or partial foreclosure of the Security Instrument or the complete or partial sale of the Property under power of sale or under any applicable provision of law.  In connection  with any such proceeding,  Lender may sell the Property as an entirety or in parcels or units  and at such times and place (at one or more sales) and upon such tem1s as it may deem expedient unless prohibited  by law from so acting.

(d)       Receiver.   Lender may apply for the appointment  of a receiver,  trustee, liquidator  or conservator  of the Property, without regard for the adequacy of the security  for the Debt or a showing of insolvency, fraud or mismanagement on the part of Borrower. Any receiver or other party so appointed has all powers permitted by law which may be necessary or usual in such cases for the protection, possession, control, management and operation of the Property. Borrower  hereby consents, to the extent permitted under applicable law, to the appointment  of a receiver or trustee of the Property upon Lender's  request if an Event of Default has occurred.  At Lender's option, such receiver or trustee shall serve without any requirement of posting a bond.

(e)       Recovery  of Possession.  Subject  to the  rights of tenants under  existing Leases,  Lender  may  enter  into or upon  the  Property,  either  personally  or by its  agents,  and dispossess  and  exclude  Borrower  and its  agents  and servants  therefrom  (without liability  for trespass, damages or otherwise), and take possession of all books, records and accounts relating to  the  Property,  and  Borrower  agrees  to  surrender  possession  of the  Property  and  all  other Property, including without limitation, all documents, books, records and accounts relating to the Property,  to Lender upon demand.  As a mortgagee-in-possession  of the Property, Lender  shall have  all  rights  and  remedies  permitted  by  law  or  in  equity  to  a  mortgagee-in-possession, including,  without limitation,  the right to charge Borrower the fair and reasonable rental  value for Borrower's use and occupation of any part of the Property that may be occupied or used by Borrower   and  the  right  to  exercise  all  rights  and  powers  of  Borrower  with  respect  to  the

Property, whether in the name of Borrower or otherwise (including, without limitation, the right to make, cancel, enforce or modify Leases, obtain and evict tenants, and demand, sue for, collect and receive all Rents of the Property).

(f)        UCC Remedies.   Lender may exercise with respect to the Property,  each right, power or remedy granted to a secured party under the UCC, including, without limitation, (i) the right to take possession of the Property and to take such other measures as Lender deems necessary  for the care, protection  and preservation  of the Property, and (ii) the right to require that  Borrower,  at  its  expense,  assemble  the  Property  and  make  it  available  to  Lender  at  a convenient  place acceptable to Lender.  Any notice of sale, disposition or other intended  action by Lender with respect to the Property sent to Borrower in accordance with the provisions hereof at least ten (10) days prior to such action, shall constitute reasonable notice to Borrower.  Lender shall not have any obligation to clean-up or otherwise prepare the Property for sale.

(g)       Apply  Funds  in  Reserve  Accounts.  Lender  may  apply  any  funds  then deposited  in any or all of the Reserve Accounts and or otherwise held in escrow or reserve  by Lender  under  the  Loan  Documents  (including  without  limitation  Restoration  Proceeds)  as a credit to the Loan, in such priority and proportion as Lender deems appropriate.

(h)       Insurance Policies.   Lender may surrender any or all insurance  policies maintained  as required by this Loan Agreement, collect the unearned Insurance Premiums  and apply  such  sums  as  a credit  on the  Loan, in  such  priority  and  proportion  as Lender  deems appropriate.   Borrower hereby appoints Lender its attorney-in-fact with full power of substitution (and which shall be deemed to be coupled with an interest and irrevocable until the Loan is paid and the Security  Instrument is discharged of record, with Borrower hereby ratifying all that its said attorney shall do by virtue thereof) to surrender such insurance policies and collect such Insurance Premiums.

(i)     Intentionally Omitted.

(j)        Protection  of Lender's  Security and Right to Cure. Lender may,  without releasing  Borrower from any obligation hereunder or waiving the Event of Default, perform the obligation which Borrower failed to perform in such manner and to such extent as Lender deems necessary to protect and preserve the Property and Lender's interest therein, including without limitation (i) appearing in, defending or bringing any action or proceeding with respect to the Property, in Borrower's  name or otherwise; (ii) making repairs to the Property or completing improvements   or  repairs  in  progress;  (iii)  hiring  and  paying  legal  counsel,  accountants, inspectors  or consultants;  and  (iv) paying amounts  which Borrower  failed to pay.   Amounts disbursed by Lender shall be added to the Loan, shall be immediately due and payable, and shall bear interest at the Default Rate from the date of disbursement until paid in full.

(k)       Violation   of  Laws.     If  the  Property  is  not  in  compliance   with   all Requirements  of Law, Lender may impose additional requirements upon Borrower in connection with  such  Event  of  Default   including,  without   limitation,  monetary  reserves  or  financial equivalents.

11.03.  Cumulative Remedies; No Waiver; Other Security. Lender's remedies under this Loan Agreement are cumulative (whether set forth in this Article 11 or in any other section of this Loan Agreement) with those in the other Loan Documents and otherwise permitted by law or in equity and may be exercised independently, concurrently or successively in Lender's  sole discretion and as often as occasion therefor shall arise. Lender's delay or failure to accelerate the Loan or exercise any other remedy upon the occurrence of an Event of Default shall  not be deemed a waiver of such right as remedy. No partial exercise by Lender of any right or remedy will preclude further exercise thereof.  Notice or demand given to Bonower in any instance will not entitle Borrower to notice or demand in similar or other circumstances (except where notice is expressly required by this Loan Agreement to be given) nor constitute Lender's waiver of its right to take any future action in any circumstance without notice or demand. Lender may release security for the Loan, may release any party liable therefor, may grant extensions, renewals or forbearances  with respect thereto, may accept a partial or past due payment or  grant  other indulgences, or may apply any other security held by it to payment of the Loan, in each case without prejudice to its rights under the Loan Documents and without such action being deemed an accord  and satisfaction or a reinstatement of the Loan.  Lender will not be deemed  as a consequence of its delay or failure to act, or any forbearance granted, to have waived  or be estopped from exercising any of its rights or remedies.

11.04.  Enforcement Costs.  Borrower shall pay, on written demand by Lender all costs incurred by Lender in (a) collecting any amount payable under the Loan Documents, or (b) enforcing its rights under the Loan Documents, in each case whether or not legal proceedings are commenced  or  whether legal  action is pursued to fma1 judgment. Such fees and  expenses include, without limitation, reasonable fees for attorneys, paralegals, law clerks and other hired professionals,  a reasonable assessment of the cost of services performed by Lender's  default management staff, court fees, costs incurred in connection with pre-trial, trial and appellate level proceedings, including discovery, and costs incurred in post-judgment collection efforts or in any bankruptcy proceeding. Amounts incurred by Lender shall be added to principal, shall be immediately  due  and  payable,  shall  bear  interest  at  the  Default  Rate  from  the  date  of disbursement until paid in full, if not paid in full within five (5) days after Lender's  written demand for payment, and such amounts shall be secured by the Security Instrument and other collateral given to secure the Loan.

11.05.  Application of Proceeds.  The proceeds from disposition of the Property shall be applied by Lender as a credit to the Loan and to recovery or reimbursement of the  costs of enforcement (contemplated by Section 11.04 above) in such priority and proportion as Lender determines appropriate.

11.06.  Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets.

(a)       Borrower acknowledges that Lender has made the Loan to Borrower  upon the security of its collective interest in the Property and in reliance upon the aggregate of the Property taken together being of greater value as collateral security than the sum of each Individual Property taken separately.  Borrower agrees that the Security Instruments are and will

be cross-collateralized and cross-defaulted with each other so that (i) an Event of Default  under any of the  Security  Instrun1ents shall constitute  an Event  of Default under each of  the  other Security Instruments  which secure the Note; (ii) an Event of Default under the Note or this Loan Agreement   shall  constitute  an  Event  of  Default  under  each  Security  Instrument;  (iii)  each Security  Instrument  shall constitute security for the Note as if a single blanket lien were  placed on all of the Properties as security for the Note; and (iv) such cross-collateralization shall  in no event be deemed to constitute a fraudulent conveyance.

(b)       To  the  fullest  extent  permitted  by  law,  Borrower,  for  itself   and  its successors  and assigns, waives all rights to a marshalling of the assets of Borrower, Borrower's partners and others with interests in Borrower, and of the Property, or to a sale in inverse order of alienation in the event of foreclosure of all or any of the Security Instruments, and agrees  not to assert any right under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead  exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents to a sale of the Property for the collection of the Debt without any prior or different resort for collection  or of the  right of Lender to the payment of the Debt out  of the net proceeds of the Property  in preference   to  every  other  claimant  whatsoever.    In  addition,  Borrower,  for  itself  and  its successors   and  assigns,  waives  in  the  event  of  foreclosure  of  any  or  all  of  the  Security Instruments,   any  equitable  right  otherwise  available  to  Borrower  which  would  require  the separate  sale of the Property or require Lender to exhaust  its remedies against any Individual Property  or any  combination  of the Property  before  proceeding  against  any other  Individual Property  or combination  of Property; and further in the event of such foreclosure Borrower  does hereby expressly consent to and authorize, at the option of Lender, the foreclosure and sale either separately or together of any combination of the Property.

ARTICLE 12
NONRECOURSE- LIMITATIONS ON PERSONAL LIABILITY

12.01.   Nonrecourse  Obligation.   Except  as  otherwise  provided  in  this  Article  12  or expressly  stated  in  any of  the other  Loan  Documents,  Lender  shall  enforce  the  liability  of Borrower to perform and observe the obligations contained in this Loan Agreement and in each other  Loan  Document  only  against  the  Property  and  other  collateral  given  by  Borrower  as security for payment of the Loan and performance of Borrower's  obligations under the Loan Documents and not against Borrower or any of Borrower's principals, directors, officers or employees.       Notwithstanding   the   foregoing,   this   Article   12  is   not   applicable    to   the Environmental  Indemnity or to any Guaranty executed in connection herewith.

12.02.   Full Personal Liability.  Section 12.01 above shall BECOME NULL AND  VOID and the Loan FULLY RECOURSE to Borrower if: (a) the Property or any part thereof  becomes an asset in a voluntary  bankruptcy or other insolvency proceeding; (b) Borrower or SPE  Equity Owner commences  a bankruptcy or other insolvency proceeding; (c) an involuntary bankruptcy or other insolvency  proceeding is commenced against Borrower or any SPE Equity Owner  (by a party  other  than  Lender)  but only if Borrower  or such  SPE Equity Owner has  failed  to use

commercially reasonable efforts to dismiss such proceeding (provided, however that the foregoing clause shall not be deemed to require Borrower or SPE Equity Owner to incur any monetary cost in order to obtain such dismissal) or has consented to such proceeding; (d) if Borrower, any SPE Equity Owner, any Guarantor or any Affiliate or agent of (x) Borrower, (y) any SPE Equity Owner or (z) any Guarantor has acted in concert with, colluded or conspired with any party to cause the filing of any involuntary bankruptcy or other insolvency proceeding; or (e) a Data Delivery Failure occurs and is not cured within thirty (30) days after Lender's written notice thereof, which notice shall be a second notice given after the expiration of the notice required under the definition of Data Delivery Failure.

12.03.  Personal Liability for Certain Losses.  Section 12.01 above SHALL NOT APPLY and Borrower shall be PERSONALLY LIABLE for all actual losses or expenses incurred by Lender arising out of, or attributable to, any of the following:

(a)       Fraud or material misrepresentation or failure to disclose a material fact by Borrower, any SPE Equity Owner, any Guarantor or any Affiliate or agent of Borrower, any SPE Equity  Owner or  any Guarantor in connection with (i) the application for the Loan  or the execution  and  delivery of the  Loan Documents  or  making of the Loan, (ii)  any  financial statement  or any other material certificate, report or document required to be furnished  by Borrower to Lender herewith or hereafter, or (iii) any request for Lender's consent made during the term of the Loan;

(b)    A violation of any provision of Article 10 (captioned:  No Transfers or
Encumbrances; Due On Sale);

(c)       A material failure by Borrower or the SPE Equity Owner to comply with any provision  of Article 7 (captioned: Single Purpose Entity Requirements) or  Section 9.13 (captioned:  Existence, Change of Name or Location as a Registered Organization) of the Loan Agreement;

(d)       Misapplication or misappropriation by Borrower, any SPE Equity Owner, any Guarantor or any Affiliate or agent of Borrower, any SPE Equity Owner or any Guarantor of (i) insurance proceeds or condemnation awards payable to Lender in accordance with the Loan Agreement; (ii) Rent received by Borrower, (iii) Rent paid in advance by tenants under the Leases;  (iv)  tenant security deposits or  other refundable deposits held by or  on  behalf  of Borrower in connection with Leases; or (v) any funds disbursed or advanced by Lender for Reserve Items pursuant to the provisions of this Loan Agreement.

(e)       Fees or commissions paid by Borrower, after the occurrence and during the continuance of an Event of Default, to any Guarantor, any Affiliate, or any principal of Borrower, any Guarantor or Affiliate, in violation of the Loan Documents;

(f)        Damage to or loss of all or any part of the Property as a result of material, physical waste, gross negligence or willful misconduct by Borrower or its agents;

(g)    Criminal  acts of Borrower,  any  principal  of Borrower, or any  Affiliate resulting in the seizure, forfeiture or loss of all or any part of the Property; and

(h)    Removal  by Borrower  of all or any portion of the Personal Property in violation of the Loan Agreement.

Lender  acknowledges  that  Borrower  shall  incur  no personal  liability hereunder  to the extent  Lender  incurs  any  actual  losses  or  expenses  arising  out  of,  or  attributable   to,  the circumstances  described  in  clauses (a) through  (h) in this Section  12.03 which were  caused solely  as by acts or omissions of Walgreens, as tenant under the Walgreens Lease or the agents of Walgreens.

12.04.  No  Impairment.   Nothing  contained  in this Article  12 shall impair,  release  or otherwise adversely affect: (a) any lien, assignment or security interest created by the Loan Documents;  (b) any indemnity,  personal  guaranty,  master  lease or similar instrument  now  or hereafter made in connection with the Loan (including, without limitation, the Environmental Indemnity  and  Guaranty);  (c) Lender's  right  to  have  a receiver  or trustee  appointed  for  the Property;  (d)  Lender's   right  to  name  Borrower  as  a  defendant  in  any  foreclosure  action  or judicial sale under the Security Instrument or other Loan Documents or in any action for specific performance or otherwise to enable Lender to enforce obligations under the Loan Documents or to realize upon Lender's  interest in any collateral given to Lender as security for the Loan;  or (e) Lender's right  to  a judgment  on the  Note  against  Borrower  if necessary to (i)   enforce  any guaranty or indemnity provided in connection with the Note, (ii) preserve or enforce its rights or remedies against any Individual Property or(iii) obtain any insurance proceeds or Condemnation awards  to which  Lender  would  otherwise  be entitled  under this  Loan  Agreement;  provided, however,  that  any judgment  obtained  against  Borrower  shall,  except to the extent  otherwise expressly  provided  in this  Article 12, be enforceable  against Borrower  only to the  extent  of Borrower's interest in the Property and other collateral securing payment of the Loan and performance of Borrower's obligations under the Loan Documents.

12.05.  No  Waiver  of  Certain  Rights.   Nothing  contained  in  this  Article  12  shall  be deemed a waiver of any right which Lender may have under the Bankruptcy Code or applicable law to protect and pursue its rights under the Loan Documents including, without limitation,  its rights under Sections 506(a) or any other provision of the Bankruptcy Code to file a claim for the full  amount  of  the  Loan  or  to  require  that  the  collateral  continues  to  secure  all   of  the indebtedness  owing to Lender under Loan Documents.

ARTICLE 13
INDEMNIFICATION

13.01.  Indemnification  Against Claims.  Borrower shall indemnify, defend, release  and hold  harmless Lender and each of the other Indemnified  Parties from and against any  and all Losses directly or indirectly arising out of, or in any way relating to, or as a result of (a) accident, injury to or death of Persons, or loss of, or damage to, property occurring in, on or with  respect to the Property or on the adjoining sidewalks, curbs, adjacent property or adjacent parking  areas,

streets or ways or otherwise arising with respect to the use of the Property; (b) failure of the Property to be in compliance with any Requirements of Law; (c) breach or default of Borrower's representations or obligations under Sections 8.27, 8.28 or 9.16 of this Loan Agreement; (d) any and all claims and demands whatsoever which may be asserted against Lender by reason of any alleged obligations or undertakings on its part to perform or discharge the lessor's  agreements contained in any Lease; (e) breach or default under the ERISA obligations set forth in Sections
8.26  and  9.15  of  this Loan  Agreement (including, without limitation, legal fees  and  costs
incurred  in  the  investigations, defense and  settlement of  Losses incurred in  correcting  any prohibited  transaction or  in  the sale of  a  prohibited loan,  and in obtaining any  individual prohibited  transaction  exemption  under  ERISA  that  may  be  required,  in  Lender's  sole discretion); or (f)  any claim, litigation, investigation or proceeding commenced or threatened relating to any of the foregoing, whether or not Indemnified Party is a party thereto; provided, however, any such indemnity shall not apply to any Indemnified Party to the extent any such Losses  arise from Indemnified Party's  gross negligence or willful misconduct (collectively,
"Indemnified  Claims").

13.02. Duty to Defend.  If an Indemnified Party claims indemnification under this Loan Agreement, the Indemnified Party shall promptly notify Borrower of the Indemnified Claim. After notice by any Indemnified Party, Borrower shall defend such Indemnified Party against such Indemnified Claim (if requested by any Indemnified Party, in the name of the Indemnified Party) by attorneys and other professionals reasonably approved, in writing, by the Indemnified Party.  Notwithstanding the foregoing, any Indemnified Party may, in its sole discretion and at the expense of Borrower, engage its own attorneys and other professionals to defend or assist it if such Indemnified Party determines that the defense as conducted by Borrower is not proceeding or being conducted in a satisfactory manner or that a conflict of interest exists between any of the parties represented by Borrower's counsel in such action or proceeding. Within five (5) business days of Indemnified Party's demand, Borrower shall pay or, in the sole discretion of the Indemnified Party, reimburse, the Indemnified Party for the payment of Indemnified Party's costs and expenses (including, without limitation, reasonable attorney fees, engineer fees, environmental consultant fees, laboratory fees and the fees of other professionals in connection therewith) in connection with the Indemnified Claim.   Payment not made timely  shall  bear interest at the Default Rate until paid in full and payment of such amounts shall be secured by the Security Instrument and other collateral given to secure the Loan.

ARTICLE 14
SUBROGATION; NO USURY VIOLATIONS

14.01.  Subrogation.  If the Loan is used to pay, satisfy, discharge, extend or renew any indebtedness secured by a pre-existing mortgage, deed of trust or other Lien encumbering the Property, then to the extent of funds so used, Lender shall automatically, and without further action on its part, be subrogated to all rights, including lien priority, held by the holder of the indebtedness secured by such prior Lien, whether or not the prior Lien is released, and such former rights are not waived but rather are continued in full force and effect in favor of Lender

and are merged with the Liens created in favor of Lender as security for payment of the Loan and performance of the  Obligations.

14.02. No Usury.  At no time is Borrower required to pay interest on the Loan or on any other payment due hereunder or under any of the other Loan Documents (or to make any other payment deemed by law or by a court of competent jurisdiction to be interest) at a rate which would subject Lender either to civil or criminal liability as a result of being in excess of the maximum interest rate which Borrower is permitted by applicable law to pay. If interest (or such other amount deemed to  be interest) paid or payable by Borrower is deemed to exceed  such maximum rate, then the amount to be paid immediately shall be reduced to such maximum rate and thereafter  computed at such maximum rate.   All previous payments in  excess  of  such maximum rate shall be deemed to have been payments of principal (in inverse order of maturity) and  not  on  account of  interest due hereunder.   For  purposes of determining whether  any applicable usury law has been violated, all payments deemed by law or a court of competent jurisdiction to be interest shall, to the extent permitted by applicable law, be deemed  to be amortized, prorated, allocated and spread over the full term of the Loan in such manner so that interest is computed at a rate throughout the full term of the Loan which does not exceed the maximum lawful rate of interest.

ARTICLE 15
SALE OR SECURITIZATION OF LOAN

15.01.  Splitting the Note.  Lender has the right from time to time to sever the Note into one or more separate promissory notes in such denominations as Lender determines in its sole discretion (including the creation of a mezzanine loan secured by a collateral assignment of the Equity Interests in Borrower and SPE Equity Owner), which promissory notes may be included in separate sales or securitizations undertaken by Lender.  In conjunction with any such action, Lender  may redefine the  interest rate and amortization schedule; providing, however:  (a) if Lender redefines the interest rate, the initial weighted average of the interest rates contained in the severed promissory notes taken in the aggregate shall equal the Applicable Interest Rate, and (b) if Lender redefines the amortization schedule, the amortization of the severed promissory notes taken in the aggregate shall, require no more amortization to be paid under the Loan than as required under this Loan Agreement and the Note at the time such action was taken by Lender (adjusted, if applicable, to account for an amortization schedule of thirty (30) years with the first five (5) years interest only) and (c) the principal balance of the components of the Note immediately after the effective date of such modification equals the principal balance of the Loan immediately prior to such modification. Subject to the foregoing, each severed promissory note, and the Loan evidenced thereby, shall be upon all of the terms and provisions contained in this Loan Agreement and the Loan Documents which continue in full force and effect, except that Lender may allocate specific collateral given for the Loan as security for performance of specific promissory notes, in each case with or without cross default provisions. Borrower, at Borrower's expense, agrees to cooperate with all reasonable requests of Lender to accomplish the foregoing, including, without limitation, execution and prompt delivery to Lender of a severance agreement and such other documents as Lender shall reasonably require, which shall all be subject to the

reasonable approval of Borrower's counsel.    Borrower  hereby  appoints  Lender  its attorney-in­ fact  with  full  power  of substitution (and  which  shall  be deemed  to be coupled  with  an  interest and irrevocable until the Loan is paid and the Security  Instrument is discharged  of record, with Borrower hereby  ratifying  all that its said attorney  shall  do in accordance  with the terms  hereof by  virtue   thereof) to  make  and  execute   all  documents  necessary   or  desirable   to  effect   the aforesaid  severance; provided,  however,  Lender  shall not make  or execute  any such documents under such  power  until five (5) days  after written  notice has been  given to Borrower  by Lender of Lender's intent  to exercise its rights under such power.  Borrower's failure to deliver  any of the documents requested by Lender that Borrower  is required  to deliver  hereunder  for a period  of ten (10) business  days  after such notice  by Lender  shall, at Lender's  option,  constitute an   Event  of Default  hereunder.  Notwithstanding the foregoing,  (i) Borrower's payment  obligations shall  at all  times   be  the  same  as  if  the  entire  Loan  was  evidenced   by  one  promissory  note   at  the Applicable Interest  Rate; (ii) subject  to the limitation  set forth in  Section  15.02,  Lender's costs incurred in connection with any splitting  of the Note  shall  be shared  equally  between  Borrower and  Lender;  and  (iii) in the event  new promissory notes  evidencing the Loan  are prepared and executed in  connection with  such  a  splitting   of  the  Note,  Lender   shall  promptly   return the original  Note to the Borrower.   Nothing  in this Section  15.01 shall result in an economic change in the transaction, impose any legal obligations  on Borrower  or restrict  Borrower  in any material way.

15.02.   Lender's Rights  to Sell  or Securitize.   Borrower  acknowledges that Lender, and each  successor to Lender's  interest,  may  (without  prior  notice  to Borrower  or Borrower's  prior consent),   sell  or  grant participations in the  Loan  (or  any  part  thereof),  sell or  subcontract the servicing  rights   related  to  the  Loan,  Securitize   the  Loan  or  include  the  Loan  as  part   of  a Securitization and,  in connection therewith, assign  Lender's  rights  hereunder  to  a securitization trustee.     Borrower, at  its  expense,  but  subject  to  the  limitation set  forth  in  the  next   to  last sentence of  this  Section  15.02  agrees  to  cooperate  with  all  reasonable   requests  of  Lender in connection with  any  of  the  foregoing  including,   without  limitation, executing   any  financing statements or other  documents  deemed  necessary  by Lender  or its transferee to create,  perfect  or preserve the rights  and interest  to be acquired  by such transferee,  provide  any updated  financial information  with   appropriate   verification  through    auditors   letters,   revised    organizational documents and counsel opinions  consistent with those delivered  by Borrower  in connection with the   origination  of  the   Loan,   execute   amendments  to  the   Loan   Documents  (which  Loan Documents, as modified,  will  be subject  to the same  limitations set forth in Section  15.01), an agreement (A) certifying  that Borrower has examined  such  sections  specified  by Lender of any Disclosure Document specified  by Lender  and that each section of such Disclosure  Document, as it relates  to Borrower, SPE Equity  Owner,  Guarantor, or the Property,  does not as of the  date of such  Disclosure Document  contain  any  untrue  statement  of  a material  fact  or  omit  to  state  a material  fact  necessary in order to make the statements made,  in the light of the circumstances under which they  were made, not misleading;  provided, however, such obligation  does not  create any obligation on the part of Borrower to update  the effective  date of any representations made by  Borrower in  com1ection with  the  origination of  the  Loan,  providing   a mortgagor  estoppel certificate and such other information about Borrower,  SPE Equity  Owner, any Guarantor or the Property as  Lender  may  reasonably require  for  Lender's  offering   materials.  Notwithstanding

anything to the contrary in this Section 15.01 or this Section 15.02, Lender shall not require that (i) Borrower incur more than $5,000.00 in out of pocket expenses or (ii) Borrower make any representations or warranties; provided, however, Borrower shall deliver to Lender and/or any Rating Agency a certificate executed by the manager of Borrower certifying as to the accuracy in all material respects, as of the closing date of the Securitization, of all representations made by Borrower in the Loan Documents as of the origination of the Loan or, if such representations are no longer accurate, certifying as to what modifications to the representations would be required to  make such  representations accurate in all material respects as of the closing date  of the Securitization.  Borrower shall promptly notify Lender at such time that its legal expenses have exceeded $5,000.00.

15.03. Dissemination of Information. Borrower acknowledges that Lender may provide to third parties with an existing or prospective interest in the servicing, enforcement, evaluation, performance, ownership, purchase, participation or Securitization of the Loan, including, without limitation, any Rating Agency and any entity maintaining databases on the underwriting and performance of commercial mortgage loans, any and all information which Lender now has or may hereafter acquire relating to the Loan, the Property, Borrower, SPE Equity Owner or any Guarantor, as Lender determines necessary or desirable and that such information may be included in disclosure documents in connection with a Securitization or syndication of participation interests, including, without limitation, a prospectus, prospectus supplement, offering  memorandum,  private  placement   memorandum  or   similar  document   (each,   a "Disclosure   Document")  and  also may  be included in  any  filing with the  Securities  and Exchange Commission pursuant to the Securities Act or the Securities Exchange Act.   To the fullest extent permitted under applicable law, Borrower irrevocably waives all rights, if any, to prohibit such disclosure, including, without limitation, any right of privacy.

15.04.  Reserves Accounts. If the Loan is made a part of a Securitization, Borrower acknowledges that all funds held by Lender in the Reserve Accounts in accordance with this Loan Agreement or the other Loan Documents shall be deposited in "eligible accounts'' at "eligible institutions" or invested in "permitted investments" as then defined and required by the Rating Agencies, and this Loan Agreement will automatically be amended to so provide.

15.05.  Securitization Indemnification.  Borrower agrees to provide in connection  with each Disclosure Document, an indemnification certificate: (a) certifying that certain designated sections of any such Disclosure Document (as specified for Borrower's review by Lender) have carefully been examined, and that, to the best of such indemnitor's knowledge, such sections do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they  were made, not misleading; provided, however, such obligation does not create any obligation on the part of Borrower to update the effective date of any representation made by Borrower in connection with the origination of the Loan; (b) indemnifying Lender (and for purposes of this Section 15.05, Lender shall include its officers and directors) and the Affiliate of Lender that (i) has filed the registration statement, if any, relating to the Securitization and/or (ii)  which is

acting as issuer, depositor, sponsor and/or a similar capacity with respect to the Securitization (any Person described in (i) or (ii), an "Issuer  Person"), and each director and officer  of any Issuer Person, and each Person or entity who controls any Issuer Person within the meaning of Section 15   of the Securities Act or Section 20 of the Securities Exchange Act (collectively, "Issuer Group"), and each Person which is acting as an underwriter, manager, placement agent, initial purchaser or similar capacity with respect to the Securitization, each of its directors and officers and each Person who controls any such Person within the meaning of Section 15  of the Securities Act or Section 20 of the Securities Exchange Act which is acting as an underwriter, manager, placement agent, initial purchaser or similar capacity with respect to the Securitization, each of its directors and officers and each Person who controls any such Person within  the meaning of Section 15 of the Securities Act and Section 20 of the Securities Exchange  Act (collectively, "Underwriter Group") for any Losses to which Lender, the Issuer Group or the Underwriter Group may become subject insofar as the Losses arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in such section (and required to be certified by Borrower as described above and provided that Borrower  and Guarantor have been given an opportunity to examine and approve such sections) or arise out of are based upon the omission or alleged omission to state therein a material fact required to be stated in such sections necessary in order to make the statements in such sections (and required to be certified by Borrower as described above and provided that Borrower and Guarantor have been given an opportunity to examine and approve such sections) or in light of the circumstances under which they were made, not misleading (collectively, "Securities  Liabilities");   and (c) agreeing to reimburse Lender, the Issuer Group and the Underwriter Group for any legal or other expenses reasonably incurred by Lender, the Issuer Group and the Underwriter Group in investigating or defending the Securities Liabilities; provided, however, that indemnitor will be liable under clauses (b) or (c) above only to the extent that such Securities Liabilities arise out of, or are based upon, any such untrue statement or omission made therein in reliance upon, and in conformity with, information furnished to Lender or any member of the Issuer Group or Underwriter Group by or on behalf of Borrower or a Guarantor   in connection with the preparation  of such sections of the Disclosure Documents (and required to be  certified  by Borrower as described above and provided that Borrower and Guarantor have been  given an opportunity to examine and approve such sections) or in connection with the underwriting of the Loan, including, without limitation, financial statements of Borrower, SPE Equity Owner or any Guarantor, and operating statements; provided, however, Borrower indemnification and reimbursement obligations set forth in this Section 15.05 (x)  shall not apply to the extent any Securities Liabilities arise as a result of Lender inaccurately transcribing written information provided by the Borrower and (y) with respect to any information contained in a Disclosure Document that is derived in part from information provided by Borrower and/or Guarantor and in part from information provided by others shall be limited to any untrue statement or alleged untrue statement therein or omission therefrom that results from an error in any information provided by Borrower and/or Guarantor which Borrower and Guarantor have been  given an opportunity to  examine and approve.   This  indemnity is in  addition to any liability  which Borrower may otherwise have and shall be effective whether or not an indemnification certificate described in (a) above is provided and shall be applicable based on information previously

provided  by or on behalf of Borrower  or a Guarantor   if the indemnification  certificate  is not provided.

15.06.   Additional Financial Information for Large Loans.

(a)       If requested by Lender in connection with a public Securitization in which the Loan  constitutes  at least ten percent (10%)  of the assets of the  Securitization  (a "Large Loan"), Borrower,  at Lender's  expense, shall provide Lender with all financial statements  and other financial, statistical or operating information, to the extent required pursuant to Regulation S-X of the Securities Act or any other Requirements  of Law in connection with any Disclosure Document  or Securities Filing.   All financial statements provided by Borrower pursuant  to this Section  shall  be  prepared  in  accordance  with  GAAP  and  shall  meet  the  requirements  of Regulation  S-X and other applicable Requirements  of Law.   All financial statements  reporting for a full operating  year (i) shall be audited by the independent accountants in accordance  with generally  accepted auditing standards, Regulation S-X and all other applicable Requirements  of Law, (ii) shall be accompanied by the manually executed report of the independent accountants thereon, which report shall meet the requirements of Regulation S-X and all other applicable Requirements  of Law, and (iii) shall be accompanied by a manually executed written consent  of the independent accountants, acceptable to Lender, that authorizes the inclusion of such financial statements  in any Disclosure Document  or Securities Filing and permits the use of the name of such independent accountants and reference to such independent accountants as "experts" in any Disclosure  Document and Securities Filing, all of which shall be provided, at Lender's  expense, at  the  same  time  as the related  financial  statements  are required  to  be provided.    All  other financial statements shall be certified by the manager of Borrower, which certification shall state that  such  financial  statements  meet  the  requirements  set  forth  in  the  first  sentence   of  this paragraph.

(b)       If requested by Lender in connection with a Large Loan, Borrower  shall provide  Lender,  promptly  upon  request,  with  any  other or additional  financial  statements   or financial, statistical or operating information as Lender determines to be required pursuant to Regulation  S-X or other legal requirements in connection with any Disclosure Document  or any filing under or pursuant to the Securities Exchange Act in connection with or relating to a Securitization.

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

16.01.  Further Acts.   Without regard to  Borrower's  obligation  to cooperate  in  certain matters set forth in Article 15, Borrower, at Borrower's  expense (unless otherwise provided  for herein),  agrees  to  take  such  further  actions  and  execute  such  further  documents  as  Lender reasonably  may request to carry out the intent of the Loan Documents or to establish and protect the rights and remedies created or intended to be created in favor of Lender under the Loan Documents  or to protect the value of the Property and Lender's  security interest or liens therein. Borrower  agrees  to  pay  all  filing,  registration  or recording  fees  or  taxes,  and  all  expenses

incident to the  preparation, execution, acknowledgment, or filing/recording of the  Security Instrument, the Assignment of Leases and Rents, financing statements or any such instrument of further assurance, except where prohibited by law so to do.

16.02.  Replacement Documents. Upon receipt of an affidavit from an officer of Lender as to the loss, theft, destruction or mutilation of the Note or any other Loan Document which is not of public record, and, in the case of any such mutilation, upon surrender and cancellation of such document, Borrower will issue a replacement original in lieu thereof in the same original principal amount and otherwise on the same terms and conditions as the original.

16.03. Borrower Estoppel Certificates.

(a)       Borrower Information. Borrower, within ten (10) days of Lender's written request (provided that such requests shall be limited to no more than one (1) time per calendar year unless  an  Event of  Default shall have occurred), shall furnish to  Lender or  Lender's designee a statement, duly acknowledged and certified by a Responsible Officer, setting forth: (i) the Maximum Loan Amount and the amount of principal advanced as of the certificate date; (ii) the unpaid principal amount of the Loan; (iii) the calculation of the rate of interest accruing on the Loan, including the then Applicable Interest Rate; (iv) the Payment Due Date and the Maturity Date; (v) the date installments of interest and/or principal were last paid; (vi) that, except as provided in such statement, no defaults or events exists which would be an Event of Default with the giving of any applicable notice or the expiration of any applicable grace or cure period or both; (vii) that the Loan Documents are valid, legal and binding obligations and have not been modified or, if modified, giving the particulars of such modification; (viii) whether any offsets or defenses exist against Borrower's obligation to pay the Loan and perform the Obligations and, if any are alleged to exist, a detailed description thereof; (ix) that all Leases are in full force and effect, and for Leases other than residential Leases, have not been modified or if modified, setting forth all modifications; (x) a current Rent Roll for the Property, (xi) the date to which Rents under the Leases have been paid; (xii) whether or not, to the best knowledge of Borrower, any of the tenants under the Leases are in default under the Leases, and, if any of the tenants are in default, setting forth the specific nature of all such defaults; and (xiii) such other matters reasonably requested by Lender and reasonably related to the Leases or the Property.

(b)       Tenant Estoppels. Borrower shall deliver to Lender (at Lender's  expense any time following the Closing Date provided no Event of Default shall have occurred) and promptly upon Lender's  written request (but in any event no later than forty-five (45)  days following Lender's  request), duly  executed estoppel certificates from  tenants  identified  by Lender attesting to such facts regarding a Major Lease as Lender may require, including, without limitation: (i) that the Lease is in full force and effect with no defaults thereunder on the part of any party, and no event exists that would be an event of default thereunder with giving of any applicable notice or the expiration of any applicable grace or cure period or both; (ii), that none of the Rents has been paid more than one month in advance, except as a security deposit; and (iii) that the tenant claims no defense or offset against the full and timely performance  of its obligations under the Lease.   For purposes of this Section 16.03, the form of estoppel  letter

required by the Walgreens Lease shall be an acceptable form, and may, during the first year of the Walgreens Lease, be subject to any remaining punchlist items.

(c)       Lender Statement of Loan Information. After written request by Borrower not more than twice  annually, Lender shall furnish  Borrower  a statement setting  forth:  (i) the original  Maximum  Loan Amount  and the amount  of principal advanced  by Lender  as of the certificate date; (ii) the unpaid principal amount of the Loan; (iii) the rate of interest accruing on the Loan, including the then Applicable Interest Rate; and (iv) the balance of amounts held in the Reserve Accounts, if any.

16.04.  Recording   Costs.    Borrower  will  pay  all  transfer  taxes,  filing,  registration, recording  or  similar  fees,  and  all  expenses  incident  to  the  preparation,  execution, acknowledgment,   recording,   filing  and/or  release   or  discharge  of  the  Note,  the   Security Instrument  and each of the other Loan Documents,  and all modifications,  extensions, consolidations, or restatements of the same, except where prohibited by law so to do.

16.05.  Publicity.     Borrower  acknowledges   and  agrees  that  Lender  may   use  basic transaction information (including, without limitation, the name of the Borrower and the address of the Property) publicly in press releases or other marketing material, but shall not disclose any personal financial information regarding any principals of Borrower or Guarantor.

ARTICLE 17
LENDER CONSENT

17.01.  No Joint Venture; No Third Party Beneficiaries.  Borrower and Lender intend that the relationships created hereunder and under each of the other Loan Documents are solely those of borrower and lender.   Nothing herein or in any of the other Loan Documents is intended  to create, nor shall it be construed as creating anything  but a debtor-creditor relationship  between Borrower  and Lender nor shall they be deemed to confer on anyone other than Lender,  and its successors and assigns, any right to insist upon or to enforce the performance or observance  of any of the obligations contained herein or therein.

17.02.  Lender  Approval.  Wherever pursuant to a Loan Document (a) Lender exercises any right to approve or disapprove or to grant or withhold consent; (b) any arrangement  or term is to be satisfactory  to Lender;· (c) a waiver is requested from Lender, or (d) any other decision is to be made by Lender,  all shall be made in Lender's sole discretion, unless expressly  provided otherwise  in such Loan Document.   By approving or granting consent,  accepting performance from Borrower, or releasing funds from a Reserve Account, Lender shall not be deemed to have warranted  or  affirmed  the  sufficiency,  completeness,  legality  or effectiveness  of  the  subject matter or of Borrower's compliance with Requirements of Laws.  Notwithstanding any provision under the Loan Documents which provide Lender the opportunity to approve or disapprove  any action or decision by Borrower, Lender is not undertaking the performance of any obligation  of Borrower  under any of the Loan Documents or any of the other documents and agreements  in connection with this transaction (including, without limitation, the Leases).

17.03.   Performance  at Borrower's  Expense.  Borrower acknowledges and agrees  that in connection with each request by Borrower to: (a) modify or waive any provision of the Loan Documents;  (b) release or substitute Property; (c) obtain Lender's  approval or consent whenever required  by the Loan Documents  including,  without  limitation,  review of a Transfer  request, matters  affecting a Major Lease, improvements or alterations to the Property, and easements  or other additions to Permitted  Encumbrances; or (d) provide a subordination, non-disturbance  and attornment  agreement,  Lender  reserves  the  right  to  collect  a  review  or  processing  fee  from Borrower based on a reasonable estimate of the administrative costs which Lender will  incur to connection  therewith. Borrower agrees to pay such fee along with all reasonable legal  fees and expenses incurred by Lender and the fees required for a Rating Confirmation or approval  from the trustee if the Loan has been Securitized, as applicable, irrespective of whether the matter is approved, denied or withdrawn. Any an1ounts payable by Borrower herem1der, shall be deemed a part of the Loan, shall be secured by this Loan Agreement and shall bear interest at the Default Rate if not fully paid within ten (10) days of written demand for payment.

17.04.  Non-Reliance.   Borrower agrees that, except as specifically provided in the Loan Documents,  any diligence or investigation performed by or on behalf of Lender in underwriting or servicing the Loan (including, without limitation, information obtained about the Property the Borrower  or its equity  investors  or affiliates)  does not in any respect limit  or excuse  any of Borrower's  representations,   warranties,   covenants   or  agreements   set   forth  in   this   Loan Agreement  or any of the other Loan Documents.   The fact that Lender has performed  diligence does  not  affect  Lender's  ability  or  right  to  rely  fully  upon  the  representations,  warranties, covenants  and agreements made by Borrower in the Loan Documents or to pursue any available remedy for a breach thereof.   If Lender delivers or has delivered to Borrower (or to Borrower's agents,  equity  investors  or representatives)  any information  obtained  or developed by  Lender relating to the Loan, the Property or Borrower, Borrower acknowledges and agrees that such information  has been delivered for informational  purposes only and Lender has no liability  of responsibility to Borrower with respect to such information, including, without limitation, the completeness  or accuracy  of any such information.   No due diligence  consultant engaged  by Lender is or shall be deemed an agent of Lender.

ARTICLE 18
MISCELLANEOUS PROVISIONS

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

change is sent.  Notice to outside counsel or parties other than the named Borrower and Lender, now or hereafter designated by a party as entitled to notice, are for convenience only and are not required for notice to a party to be effective in accordance with this section. Notice addresses  are as follows:

Address for Lender:     Capmark Bank
6955 Union Park Center- Suite 330
Midvale, Utah  84047
Attention:  President
Fax:  801-567-2681 with required copies to:
Capmark Finance Inc.
116 Welsh Road
Horsham, PA  19044
Attention:  Commercial Loan Servicing
Fax:  215-328-3478

Address for Borrower:     Wood 1031 LLC
7439 Middlebelt Road, Suite 2
West Bloomfield, MI 48322
Attn: Norbert A. Zuckerman
Fax: 248-737-2401 and     Borrower's counsel
Jaffe Raitt Heuer & Weiss, P.C.
Suite 2500
27777 Franklin Road
Southfield, MI  48034-8214
Attn.: Noam Y. Raz, Esq. or Arthur A. Weiss, Esq. Fax:  248-351-3082

18.02.  Entire  Agreement;   Modifications;   Time  of  Essence.    This  Loan  Agreement, together  with the other Loan Documents, contain the entire agreement  between Borrower  and Lender relating to the Loan and supersede and replace all prior discussions, representations, communications  and agreements (oral or written). If the terms of any of the Loan Documents  are in conflict,  this  Loan  Agreement  shall  control  over all of the other  Loan Documents   unless otherwise  expressly  provided  in  such  other  Loan  Document.  No  Loan  Document   shall  be modified, supplemented or terminated, nor any provision thereof waived, except by a written instrument  signed by the party against whom enforcement thereof is sought, and then only  to the extent  expressly  set  forth  in  such  writing.    Time  is  of  the  essence  with  respect  to  all  of Borrower's obligations under the Loan Documents.

18.03.  Binding Effect; Joint and Several Obligations. This Loan Agreement and each of the other Loan Documents shall be binding upon and inure to the benefit of Borrower and Lender and their respective successors and assigns, whether by voluntary action of the parties or by operation of law. (The foregoing does not modify any conditions regulating Transfers.)    If Borrower consists of more than one party, each shall be jointly and severally liable to perform the obligations of Borrower 'under the Loan Documents.

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

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

18.06.  Governing Law.  This Loan Agreement and each of the other Loan Documents, other  than  the  Security Instrument and the Assignment of  Leases, shall be interpreted  and enforced according to the laws of the State of Michigan (without giving effect to rules regarding conflict oflaws).

18.07.  Consent to Jurisdiction.  Borrower hereby consents and submits to the exclusive jurisdiction and venue of any state or federal court sitting in the county and state where the Property is located with respect to any legal action or proceeding arising with respect to the Loan Documents and waives all objections which it may have to such jurisdiction and venue. Nothing herein shall, however, preclude or prevent Lender from bringing actions against Borrower in any other jurisdiction as may be necessary to enforce or realize upon the security for the  Loan provided in any of the Loan Documents.

18.08.   WAIVER  OF  TRIAL  BY  JURY.   BORROWER  AND  LENDER   EACH WAIVE THEIR RESPECTIVE  RIGHT, TO THE FULLEST EXTENT PERMITTED BY LAW,  AND AGREE NOT TO ELECT A TRIAL BY JURY WITH RESPECT  TO  ANY ISSUE  ARISING  OUT  OF  THIS  LOAN  AGREEMENT,  ANY  OTHER  LOAN DOCUMENT, OR THE RELATIONSHIP BETWEEN THE PARTIES  AS BORROWER AND LENDER.

ARTICLE 19
LIST OF DEFINED TERMS

19.01.  Definitions.  The following words and phrases shall have the meaning specified below.

"Affiliate" of any Person means (a) any other Person which, directly or indirectly, is in Control of, is Controlled by or is under common Control with, such Person; (b) any other Person who is a director or officer of (i) such Person, (ii) any subsidiary of such Person, or (iii) any Person described in clause (a) above; or (c) any corporation, limited liability company or partnership which has as a director any Person described in clause (b) above.

"Applicable Interest Rate" has the meaning set forth in Section 2.02(b) of this
Loan Agreement.

"Approved Budget" has the meaning set forth in Section 9.11(a)(iv) of this Loan 
Agreement.

"Assignment of Leases and Rents" means the Assignment of Leases and Rents dated as of the Closing Date from Borrower, as assignor, to Lender, as assignee, assigning to Lender all of Borrower's right, title and interest in and to the Leases and the Rents with respect to the Property.

"Assignment of Property Management Contract" means an Assignment of Property Management Contract and Subordination of Management Fees dated as of the Closing Date from Borrower, as assignor, to Lender, as assignee, and acknowledged by Property Manager or as applicable, any other Assignment of Property Management Contract executed pursuant to Section 9.14.

"Bankruptcy Code" means the Bankruptcy Reform Act of 1978 codified as 11
U.S.C. §101 et seq., and the regulations issued thereunder, both as hereafter modified from time to time.

"Borrower" has the meaning set forth in the introductory paragraph of this Loan
Agreement.

"Business Day'' or "business day" means any day other than a Saturday, a Sunday, or days when Federal Banks located in the State of NewYork, State of Michigan, State of Illinois or Commonwealth  of Pennsylvania are closed for a legal holiday or by government directive.

"Capital Expenditures" means any hard or soft costs spent to add, improve or expand property, plant and equipment assets (including, without limitation, the Replacements contemplated under the Loan) and/or amounts budgeted for the future for the same purposes.

"Cash Flow Available for Debt Service" means, for a specified period, (a) the Operating Income less (b) Operating Expenses as determined by Lender using the underwriting standards for the closing of the Loan.

"Casualty" means the occurrence of damage or destruction to the Property,  or any part thereof, by fire, flood, vandalism, windstorm, hurricane, earthquake, acts of terrorism  or any other casualty.

"Closing Date" means the date of this  Loan Agreement.

"Compliance Certificate" means a compliance certificate substantially in the form of Exhibit A hereto, signed by a Responsible Officer of Borrower.

"Condemnation" means the taking by any Governmental Authority of the Property or any part thereof through eminent domain or otherwise (including, without limitation, any transfer made in lieu of or in anticipation of the exercise of such taking).

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

"Data Delivery Failure" means, without reference to any cure period under Article 11, each instance that any of the following occur: (a) failure to deliver any of the reports, information, statements or other materials required under Section 9.11 within ten (10) business days after written notice from Lender, (b) failure to provide the Compliance Certificate within ten (10) business days after written notice from Lender, or (c) failure to permit Lender or its representatives  to inspect or copy books and records within two (2) business days of Lender's written request.

"Debt" means the aggregate of all principal and interest payments that accrue or are due and payable in accordance with the Loan Agreement, together with any other amounts due under the Loan Documents.  The terms "Debt" and "Loan" have the same meaning whenever used in the Loan Documents.

"Debt Service Coverage Ratio" means, as to a  specific period, the ratio of (a) the Cash Flow Available for Debt Service, to (b) the principal and interest that would be due and payable under the Note based on the then current Applicable Interest Rate.

   "Default Rate" has the meaning set forth in Section 2.04(e) of this Loan Agreement.
 
   "Defeasance" has the meaning set forth in Section 2.05(b)(i) of this Loan 
Agreement
"Defeasance Collateral" has the meaning set forth in Section 2.05(b)(iii)  of this
Loan Agreement

"Defeasance Pledge Agreement" has the meaning set forth in Section 2.05(b)(ii)
of this Loan Agreement.
 
"Defeased  Note" has the meaning set forth in Section 2.05(b)(v) of this Loan
 Agreement.

"Disbursement Request" means a written request substantially in the form of Exhibit B from Borrower delivered to Lender, signed by a Responsible Officer of Borrower and requesting Lender to disburse funds from a Reserve Account.  Each Disbursement Request shall describe in reasonable detail the use of the funds requested by the Disbursement Request and shall have attached to it, as applicable: (a) the original invoices for all items or materials purchased or services performed which are to be funded by the Disbursement Request, and (b) copies of all pem1its, licenses and approvals, if any, by any Governmental Authority confirming completion of the Reserve Items.  If an original invoice is not available, Borrower shall be required to evidence, to Lender's satisfaction, the amounts expended for which reimbursement is requested.
 
"Disclosure Documents" has the meaning set forth in Section 15.03 of this Loan
 Agreement.

"Environmental Indemnity" means the Environmental Indemnity Agreement dated as of the Closing Date from Borrower and the other "Indemnitors" named therein to Lender.

"Equity Interests" means (a) partnership interests (whether general or limited)  in an entity which is a partnership; (b) membership interests in an entity which is a limited liability company; or (c) the shares or stock interests in an entity which is a corporation or (d) beneficial interests in a trust.

"ERISA" means the Employee Retirement Income Security Act of 1974, and the regulations issued thereunder, all as amended or restated from time to time.

"Event of Default" means any of the events specified in Section 11.01 of this
Loan Agreement.

"Excess Cash Flow Reserve Account" means an account held by Lender,  or Lender's  designee, in which the excess cash flow deposited in accordance with the provisions  of Section 4.07 oft his  Loan Agreement will be held, which shall not constitute a trust fund.
 
   "FRB Release" has the meaning set forth in Section 2.05(d) of this Loan Agreement.

"GAAP" means generally accepted accounting principles in the United States of
America as in effect from time to time.

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

"Guarantor" means the Person, Norbert A. Zuckerman, individually or collectively as the context requires, who is executing the Guaranty as guarantor and the Environmental  Indemnity as indemnitor.  If more than one, Guarantors are jointly and severally liable for their obligations under such agreements.

"Guaranty" means the Guaranty (Exceptions to Nonrecourse Liability) dated as of the Closing Date from Guarantor to Lender.

"Immediate Repair Deposit" has the meaning set forth in Section 4.04(b) of this
Loan Agreement,  subject to adjustment as set forth in Section 4.04(d).

"Immediate Repair Escrow Account" means an account held by Lender, or Lender's designee, in which the Immediate Repair Deposit will be held, which shall not constitute a trust fund.

"Immediate Repairs" means the repairs or improvements to the Property identified on Exhibit C hereto.

"Improvements"  has the meaning set forth in the Security Instrument.

"Indemnified Claim" means the basis for the Indemnified Party's claim for indemnification  under Article 13 hereof.

"Indemnified Parties" means Lender, together with its successors and assigns, which shall include, without limitation, any owner or prior owner or holder of the Note, any servicer of the Loan, any investor, or holder of a full or partial interest in the Loan, any receiver or other fiduciary appointed in a foreclosure or other proceeding under any Requirements  of Law
regarding creditors' rights, any officers, directors, shareholders, partners, members, employees, agents, servants, representatives, contractors, subcontractors, Affiliates of any and all of the foregoing, in all cases whether during the term of the Loan or as part of, or following, a foreclosure of the Security Instrument.

"Independent Director" means an individual who shall not have been at the time of such individual's initial appointment, and may not have been at any time during the preceding five years, and shall not be at any time while serving as an Independent Director  of the SPE Equity Owner or Borrower if a single member limited liability company or, if applicable, either (a) a shareholder of, or an officer, director, partner or employee of, Borrower or SPE Equity Owner or any of their respective shareholders, partners, members, subsidiaries or Affiliates, (b) a customer of, or supplier to, Borrower or SPE Equity Owner or any of their  respective shareholders, partners, members, subsidiaries or Affiliates, (c) a person or other  entity Controlling or under common Control with any such shareholder, officer, director, partner,

member, employee, supplier or customer, or (d) a member of the immediate family of any such shareholder, officer, director, partner, member, employee, supplier or customer.

"Index" has the meaning set forth in Section 2.05(d).

"Individual Property" means each of the properties described in Exhibit G.

"Initial TI/LC Deposit" has the meaning set forth in Section 4.06.

"Insurance Premium Escrow Account" means an account held by Lender, or Lender's designee, in which Borrower's initial deposit for Insurance Premiums paid on the Closing Date and the Monthly Insurance Deposits will be held.

"Insurance Premiums" means the premiums for the insurance Borrower  is required to provide pursuant to Section 9.03 of this Loan Agreement.

"Investment Grade Rating" means a credit rating of either BBB- from
S&P or a credit rating ofBaa3 from Moody's.
   "Issuer Group" has the meaning set forth in Section 15.05 of this  Loan Agreement.

   "Issuer Person" has the meaning set forth in Section 15.05 of this  Loan Agreement
.
"Land" has the meaning set forth in the Security Instrument.
 
    "Large Loan" has the meaning set forth in Section 15.05 of this  Loan Agreement.

"Lease" has the meaning set forth in the Security Instrument.

"Lease Guaranty" has the meaning set forth in the Security Instrument.

"Leasing Commissions" means leasing commissions incurred by Borrower  in connection with the leasing of any Individual Property or any portion thereof (including any so­ called "override" leasing commissions which may be due to any leasing or rental agent engaged by Borrower for the Property if an agent other than such agent also is entitled to a leasing commission, but excluding commissions due any principal, member, general partner or shareholder of Borrower or any Affiliate of Borrower).

"Lender" has the meaning in the introductory paragraph of this  Loan Agreement.

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

limitation, any conditional sale or other title retention agreement, the filing of any financing statement under the UCC or comparable  law of any jurisdiction in respect of any of the foregoing and a mechanics' or materialmen's lien).

"Loan" means  the aggregate of all principal  and interest  payments that accrue  or are due and payable  in accordance with the Loan Agreement,  together  with any other amounts due under the Loan Documents. The terms "Loan"  and "Debt" have the same meaning  whenever
used in the Loan Documents.

"Loan Agreement" means this Loan Agreement.

"Loan Documents" means, collectively, this Loan Agreement,  the Note, the Security Instrument, the Assignment of Leases and Rents, the Assignment of Property Management Contract,  the Environmental Indemnity, the Guaranty,  and any and all other documents and agreements executed in connection with the Loan, as each such agreement may be modified, supplemented, consolidated, extended,  restated or reinstated from time to time.

"Loan to Value Ratio" means with respect to the specified period, the ratio obtained  by dividing (a) the Maximum  Loan Amount, .by (b) either, as selected in Lender's discretion, the "as-is"  or "as-stabilized" value of the Property  as set forth in the appraisal
.   obtained  by Lender in connection with its underwriting of the Loan or any update thereto, whichever is most recent;  provided however, that should the Operating  Income or market  rents for the Property  as underwritten by Lender change  by ten percent (10%) or more during the period  in question, Lender  may obtain a new appraisal  at Borrower's expense.

    "Lock-out Period Expiration Date" has the meaning  set forth in Section  2.05(b) hereof.
"Losses" means any and all claims,  suits, liabilities  (including,  without limitation, strict liabilities and liabilities under federal and state securities  laws), actions,  proceedings, obligations, debts, damages, losses, costs, expenses,  fines, penalties, charges, fees, judgments, awards,  and amounts  paid in settlement  of whatever  kind or nature (including without limitation reasonable legal fees and other costs of defense).

"Major Lease" means any Lease.

"Material Adverse Effect" means, with respect to any circumstance,  act, condition or event  of whatever  nature (including  any adverse determination in any litigation, arbitration, or governmental investigation or proceeding), whether singly or in conjunction with any other event, act, condition circumstances, whether or not related, in Lender's reasonable judgment, will result in a material adverse change  in, or a materially  adverse effect upon (a) the business, operations, prospects or financial condition of Borrower or Guarantor;  (b) the ability of Borrower or Guarantor  to perform its obligations under any Loan Document  to which it is a party; (c) the value or condition of the Property;  (d) compliance  of the Property with any Requirements of Law; (e) the validity, priority  or enforceability of any Loan Document  or the liens, rights (including, without limitation, recourse against the Property) or remedies of Lender hereunder or thereunder; or (f) the occupancy rate of the Property.

"Maturity Date" has the meaning set forth in Section 2.03(c) of this Loan Agreement.
"Maximum Loan Amount" means the maximum principal amount ofThirty­ Three Million Eight Hundred Fifty Thousand and 00/100 Dollars ($33,850,000.00), in lawful money of the United States of America, to be advanced to Borrower pursuant to this Loan Agreement.  Reference in the Loan Agreement to "Maximum Loan Amount" mean the maximum principal amount, irrespective of actual principal amount outstanding or actually advanced to Borrower during the term of the Loan.

"Monthly Insurance Deposit" means, with respect to the specified period, an amount  equal  to one-twelfth  (1112) of the Insurance  Premiums  that Lender  estimates  will  be payable during the next ensuing twelve (12) months, subject to adjustment as set forth in Section
4.03(d) of this Loan Agreement.

"Monthly Replacement Reserve Deposit" has the meaning set forth in Section
4.05(b) of this Loan Agreement, subject to adjustment as set forth in Section 4.05(d).

"Monthly Tax Deposit" means, with respect to the specified period, an amount equal to one-twelfth (1/12) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months, subject to adjustment as set forth in Section 4.02(d) of this Loan Agreement.

"Monthly TI/LC Deposit" has the meaning set forth in Section 4.06(b) of this
Loan Agreement, subject to adjustment as set forth in Section 4.06(d).

"Moody's'' means Moody's Investors Service, Inc. and any successor thereto.

" Note" means the Promissory Note dated as of the Closing Date from Borrower  to the order of Lender in the original principal amount equal to the Maximum Loan Amount.

" Obligations" means the Loan, and all other obligations and liabilities of the Borrower to Lender, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with the Loan the Loan Documents, whether on account of principal, interest, fees, indemnities, costs, expenses (including, without limitation, all reasonable fees and disbursements of legal counsel) or otherwise.

"OFAC List" means the list of specially designated nationals and blocked
persons subject to financial sanctions that is maintained by the U.S. Treasury Department, Office of Foreign Assets Control and any other similar list maintained by the U.S. Treasury
Department,  Office of Foreign Assets Control pursuant to any Requirements of Law, including,

without limitation, trade embargo, economic sanctions, or other prohibitions imposed by Executive Order of the President of the United States.  The OFAC List is accessible through the internet website wwtreas.gov/ofac/t11sdn.pdf 
 
   "Open Date" has the meaning set forth in Section 2.05(a) of this  Loan Agreement.

"Operating Account" means that certain bank account or those certain bank accounts in the name of or for the benefit of Borrower now or hereafter established and maintained in connection with the management of the Property during the term of the Loan.

"Operating  Agreements" has the meaning set forth in the Security Instrument.

"Operating Expenses" means all cash expenses actually incurred by or charged to Borrower (appropriately  pro-rated for any expenses that, although actually incurred in a particular period, also relate to other periods), with respect to the ownership, operation, leasing and management of the Property in the ordinary course of business, determined in accordance with GAAP, and adjusted by Lender in accordance with Lender's customary underwriting procedures and policies then in effect which Operating Expenses are also adjusted to include any underwritten reserves for Replacements, Tenant Improvements and Leasing Commissions and any  other underwritten reserves as determined by Lender whether or not required to be reserved. Operating Expenses shall specifically exclude (1) costs of Tenant Improvements and Leasing Commissions, (2) capital expenditures, (3) depreciation, (4) payments made in connection with the payment of the outstanding principal balance of the Loan, (5) costs of Restoration following
a Casualty or Condemnation, (6) funds disbursed from any Reserve Account, and (7) any other non-cash items.

"Operating Income" means all gross cash income, revenues and consideration received or paid to or for the account or benefit of Borrower resulting from or attributable to the operation or leasing of the Property determined in accordance with GAAP and adjusted by Lender in accordance with Lender's customary underwriting procedures and policies then in
effect but excluding any income or revenues from a sale, refinancing, Casualty or Condemnation, payment of rents more than one (1) month in advance, lease termination payments, or payments from any other events not related to the ordinary course of operations of the Property.

"Organizational  Chart" means the chart attached hereto as Exhibit D which shows all persons or entities having an ownership interest in Borrower and in the SPE Equity Owner.

"Other Charges" means all ground rents, maintenance charges, impositions (other than Taxes) and similar charges (including, without limitation, vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Property), now or hereafter assessed or imposed against the Property, or any part thereof, together with any penalties thereon.

 
   "Partial Release" has the meaning set forth in Section 10.03 of this Loan Agreement.

            "Partial Release Date" has the meaning set forth in Section 10.03 of this Loan Agreement.

"Partial Release Price" means the portion of the Maximum Loan Amount allocated to the following portions of the Property as set forth below:

	
		
	Release Property
	Partial Release Price

	

Delavan, WI
	

$3,728,498.00

	

Houma, LA
	

$4,022,018.00

	

Kokomo, IN
	

$3,173,190.00

	

Lubbock, TX
	

$4,125,146.00

	

Salisbury, NC
	

$3,776,096.00

	

San Antonio, TX
	

$7,536,325.00

	

Sulphur, LA
	

$3,553,972.00

	

Whiteville, NC
	

$3,934,755.00

"Payment Due Date" has the meaning set forth in Section 2.03(b) of this Loan Agreement. It is the date that a regularly scheduled payment of principal and interest (or interest if the loan payments are interest-only) is due.

"Permitted Encumbrances" means only those exceptions shown in the Title
Insurance Policy and each other Lien which has been approved in writing by Lender.

"Permitted Transfer'' means each of the following:

(a)       Transfers of Equity Interests which, in the aggregate over the term of the Loan  (i) do not exceed  forty-nine  percent (49%)  of the total interests  in Borrower  or  in SPE Equity  Owner,  as  applicable;  (ii)  do  not  result  in  any Person  holding  an Equity  Interest  in Borrower  or SPE Equity  Owner, as applicable, which exceeds forty-nine percent (49%)  of the total Equity Interests in Borrower or in SPE Equity Owner, as applicable; and (iii) do not result in a change of Control.

(b)     Transfers  with  respect  to  any  Person  whose  stocks  or  certificates  are traded on a nationally recognized stock exchange.

(c)     Transfers  which  have  been  approved  by  Lender  in  accordance   with
Section 10.02 of this Loan Agreement.

(d)     Permitted Encumbrances.

(e)       All Transfers of worn out or obsolete  furnishings, fixtures or equipment that are promptly replaced with property of equivalent value and functionality.

(f)        All Major  Leases  which  have  been  approved  by Lender  in  accordance with this Loan Agreement.

(g)       All Leases which are not Major Leases and which have been approved by the Lender pursuant to Section 9.06 or that do not require Lender's approval pursuant to Section
9.06.

(h)       Notwithstanding  subparagraph  (a)  above,  (i) Transfers  by devise  or by operation  of law upon the death of a member, partner or stockholder of Borrower, any Guarantor or  any  member  or  partner  thereof,  or  (ii)  sale, transfer  or hypothecation  of  a membership, partnership   or  shareholder  interest  in  Borrower,  whichever  the  case  may  be,  by  a  current member,  partner or shareholder, as applicable, to an entity under substantially identical  control, an immediate family  member (i.e., partners, spouses, siblings, children or grandchildren)  or such member,  partner or shareholder, or to a trust or other estate planning vehicle for the benefit of an immediate  family member of such member, general partner or shareholder; such Transfers which are Permitted Transfers under this subparagraph (h) shall not be subject to any fees other than the reimbursement  of Lender's reasonable out-of-pocket fees and expenses incurred in connection therewith.

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

"Personal Property" has the meaning set forth in the Security Instrument.

"Prohibited Prepavment" has the meaning set forth in Section 2.05(d) of this
Loan Agreement.

"Prohibited Prepayment Fee" has the meaning set forth in Section 2.05(d) of this Loan Agreement.

"Property" means collectively, all Individual Properties securing the Loan, as described  on Exhibit  G  attached  hereto, or  one or  more  of the  Individual  Properties,  as the context requires..

"Property Management Contract" means the agreement dated as ofMarch 1,
2007, between Borrower and Property Manager which provides for the management of the
Property for Borrower by Property Manager.

 
"Property  Manager" means NZ1031 Manager LLC, a Michigan limited liability
 company.

"PV" has the meaning set forth in Section 2.05 (d).

"Rating Agencies" means Fitch, Inc., Moody's and S & P, or any successor entity of the foregoing, or any other nationally recognized statistical rating organization to the extent that any ofthe foregoing have been or will be engaged by Lender or its designees in connection with or in anticipation of Securitization or any other sale or grant of participation interest in the Loan (or any part thereof).

"Rating Confirmation"  means a written confirmation from each of the Rating Agencies (unless otherwise agreed by Lender) that an action shall not result in a downgrade, withdrawal  or qualification of any securities issued in connection with a Securitization.

" Release" has the meaning set forth in Section 2.05(b) of this Loan Agreement.

"Release  Date" means (a) in case of a Defeasance pursuant to Section 2.05(b), a date on which the Defeasance Collateral is to be delivered, or (b) in case of a prepayment pursuant to Section 2.05(c), a date (such date being a Payment Due Date) on which the Yield Maintenance Premium is to be delivered.

"Release Instruments" means all documents necessary to release the Property or in the case of a partial Defeasance, the Release Property, from the liens created by the Security Instrument and related UCC financing statements.

"Release Property" means each portion of the Property identified as "Release
Property" above in the definition of Partial Release Price.

"Rent Roll" means a written statement from Borrower, substantially in the form attached hereto as Exhibit E, detailing the names of all tenants of the Property, the portion of Property occupied by each tenant, the base rent and any other charges payable under each Lease, the term of each Lease, the beginning date and expiration date of each Lease, whether any tenant is in default under its Lease (and detailing the nature of such default), and any other information as is reasonably required by Lender, all certified by a Responsible Officer to be true, correct and complete.

" Rents" has the meaning set forth in the Security Instrument.

"Replacement Reserve Account" means an account held by Lender, or Lender's designee, in which the Monthly Replacement Reserve Deposits will be held, which shall not constitute a trust fund.

"Replacements" means the scheduled repairs and replacements to the Property identified on Exhibit F hereto.

"Requirements of Law" means (a) the organizational documents of an entity, and (b) any law, regulation, ordinance, code, decree, treaty, ruling or determination of an arbitrator, court or other Governmental Authority, or any Executive Order issued by the President of the United States, in each case applicable to or binding upon such Person or to
which such Person, any of its property or the conduct of its business is subject including, without limitation, laws, ordinances and regulations pertaining to the zoning, occupancy and subdivision of real property.

"Reserve Accounts" means, individually and collectively, as the context requires, the Tax Escrow Account, the Insurance Premiums Escrow Account, the Immediate Repair Escrow Account, the Replacement Reserve Account and the TI/LC Reserve Account.

"Reserve Item" means, individually and collectively, as the context requires, the
Immediate Repairs, the Replacements, the Tenant Improvements and the Leasing Commissions.

"Responsible Officer" means, as to any Person, an individual who is a managing member, a general partner, the chief executive officer, the president or any vice president of such Person or, with respect to financial matters, the chief financial officer or treasurer of such Person or any other officer authorized by such Person to deliver documents with respect to financial matters pursuant to this Loan Agreement.

"Restoration"  means the repairs, replacements, improvements, or rebuilding of or to the Property following a Casualty or Condemnation.

"Restoration Deficiency Deposit" has the meaning set forth in Section 9.04(d) of this Loan Agreement.  All amounts deposited by Borrower with Lender as the Restoration Deficiency Deposit shall become a part of the Restoration Proceeds and disbursed by Lender for Restoration  on the same conditions applicable to disbursement of Restoration Proceeds and, until so disbursed, are pledged to Lender as security for the Loan and Obligations.

"Restoration Holdback" has the meaning set forth in Section 9.04(e) of this
Loan Agreement.

"Restoration Proceeds" has the meaning set forth in Section 9.04(b) of this
Loan Agreement.

"S & P" means Standard & Poor's Ratings Services, a division of The McGraw­ Hill Companies, Inc., and any successor thereto.

"Securities Act" means the Securities Act of 1933 and any successor statute thereto and the related regulations issued thereunder, all as amended from time to time.

"Securities Exchange Act" means the Securities Exchange Act of 1934, and any successor statute thereto and the related regulations issued thereunder, all as amended from time to time.
   "Securities Liabilities" has the meaning provided in Section 15.05 of this Loan Agreement.

"Securitization" or "Securitize'' means the sale of the Loan, by itself or as part of pool with other loans, in a transaction whereby mortgage pass-through certificates or other securities evidencing a beneficial interest, backed by the Loan or such pool of loans, will be sold as a rated or unrated public offering or private placement.

"Security Instrument" means individually or collectively, as the context requires, each Mortgage, Assignment of Rents and Leases, Security Agreement and Fixture Filing; or Deed of Trust, Assignment of Rents and Leases, Security Agreement and Fixture Filing; or Deed to Secure Debt, Assignment of Rents and Leases, Security Agreement and
Fixture Filing as applicable, encumbering the Property and executed by Borrower to Lender or to
a trustee for the benefit of Lender, as the case may be, to secure Borrower's payment of the Loan and performance of the Obligations.
 
  "Single Purpose Entity" has the meaning set forth in Section 7.02 of this Loan
 Agreement.

  "SPE Equity Owner" means Wood 1031 Mezz Two LLC, a Delaware limited liability company.

"Standard Lease Form" means, as applicable, the standard form oflease agreement  used by Borrower for the rental of commercial units at the Property and the standard form of lease agreement used by Borrower for the rental of residential units at the Property, in each case in the fonn certified to Lender as of the Closing Date or subsequently approved by Lender in writing.
 
"Successor Borrower" has the meaning set forth in Section 2.05(b) of this Loan
 Agreement.

"Tax Code" means the Internal Revenue Code of 1986 and the related Treasury Department regulations issued thereunder, including temporary regulations, all as amended from time to time.

"Tax Escrow Account" means an account held by Lender, or Lender's designee, in which Borrower's initial deposit for Taxes made on the Closing Date and the Monthly Tax Deposits will be held, which shall not constitute a trust fund.

"Taxes" means all real estate taxes, government assessments or impositions, lienable water charges, lienable sewer rents, assessments due under owner association documents, ground rents, vault charges and license fees for the use of vault chutes and all other charges (other than the Other Charges), now or hereafter levied or assessed against the Land and Improvements.

"Tenant Improvements" means improvements made to the Property to prepare the same for tenant occupancy in connection with each Lease and made by Borrower in conformity with the terms of the related Lease and this Loan Agreement.

"TI/LC Reserve Account" means an account held by Lender, or Lender's designee, in which the Initial TI/LC Deposit and the Monthly TIILC Deposits will be held, which shall not constitute a trust fund.

"Title Insurance Policy" means the mortgagee title insurance policy obtained  by Lender in connection with the Loan, and, until the issuance of such policy, the commitment for title insurance as marked-up as of the Closing Date, in either case in form and substance (with such endorsements and affirmative coverages) as is satisfactory to Lender, insuring that the Security Instrument constitutes a perfected first Lien against the Property in the Maximum Loan Amount, subject only to Permitted Encumbrances.

"Transfer" means any action other than a Permitted Transfer by which either (a) the legal or beneficial ownership of the Equity Interests in Borrower or in SPE Equity Owner or (b) the legal or equitable title to the Property, or any part thereof, or (c) the cash flow from the Property or any portion thereof, are sold, assigned, transferred, hypothecated, pledged or otherwise encumbered or disposed of, in each case (a), (b) or (c) whether undertaken, directly  or indirectly, or occurring by operation of law or otherwise, including, without limitation, each of the following actions:

(i)        the sale, conveyance, assignment, grant of an option with  respect to, mortgage, deed in trust, pledge, grant of a security interest in, or any other transfer, as security or otherwise, of the Property  or with respect to the Leases or Rents (or any thereof);

(ii)       the  grant of  an easement  across  the  Property  (other  than  minor easements not having a Material Adverse Effect) or any other agreement granting rights in or restricting  the use or development of the Property (including, without limitation, air rights);

(iii)      an installment sale wherein Borrower  agrees to sell the  Prope1iy for a price to be paid in installments;

(iv)      an agreement by Borrower leasing  all or a substantial part  of the Property  for  other  than   actual  occupancy   by  a  space   tenant thereunder; or

(v)       the issuance of additional partnership, membership or other equity interests, as applicable.

" UCC" means the Uniform Commercial Code in effect in the State where the Prope1iy is located, as from time to time amended or restated.  For purposes of the UCC's application to the Reserve Accounts, the parties agree that the Reserve Accounts shall be deemed located in the state where the Property is located.

"Undefeased Note" has the meaning set forth in Section 2.05(b)(v) of this Loan Agreement.
 
"Underwriter Group" has the meaning provided in Section 15.05 of this Loan
 Agreement. 
 
"Waiver Criteria" has the meaning provided in Section 4.0l(h)  of this  Loan
 Agreement.
 
"Walgreens" has the meaning provided in Section4.02(h)(ii) of this Loan Agreement.
 
"Walgreens Leases" has the meaning provided in Section 4.02(h)(ii) of this Loan
 Agreement.
"Yield Maintenance Premium" has the meaning set forth in Section 2.05 (d).

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

IN WITNESS  WHEREOF,  Lender and Borrower  hereby  sign, seal and deliver  this Loan Agreement.    By signing  below  on behalf of Borrower,  SPE  Equity Owner  also consents,  in its individual  capacity,  to the obligations of SPE Equity  Owner  set forth in Sections  7 .02(b), 8.21,
9. 11(c) and Article 15 of this Loan Agreement.

BORROWER:

WOOD 1031 LLC, a Michigan  limited liability company

By: Wood 1031 Mezz Two, LLC, A Delaware
limited liability company, its Manger

                                
              By: /s/ NORBERT A. ZUKERMAN
               Norbert A. Zukerman, Manger    

Borrower's Tax ID Number: 20-8568411
Borrower's State Organizational  ID No.: D l293L

{Signatures continue on following page]

#1155891     Loan Agreement (Walgreens  Pool I)

                        

LENDER:
                                    
CAPMARK BANK,  a Utah industrial bank
                                

By:/s/KEITH E. ARMSTONG
      Name: Keith E. Armstrong
               Title: Limited Signer

Attachments:

Exhibit A    Compliance Certificate Form
  Exhibit B    Disbursement Request Form
  Exhibit C    Immediate Repairs
  Exhibit D     Organizational Chart
  Exhibit E     Rent Roll
  Exhibit F    Replacements
  Exhibit G    Individual Property

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}]]