Document:

PURCHASE AND SALE AGREEMENT

DATED:        September 23, 2005 ("EFFECTIVE DATE")

BETWEEN:      SELLER

              Tiffany and Company, a New York corporation
              600 Madison Avenue
              New York, NY 10022
              Attention: Patrick B. Dorsey, Legal Department

AND:          PURCHASER

              Caplease, LP, a Delaware limited partnership
              110 Maiden Lane, 3rd Floor
              New York, New York 10005
              Attention: Paul Hughes, Esquire

      A. Seller owns that  certain real  property  described in Section 1 below,
commonly  known as 15 Sylvan Way,  Township  of  Parsippany-Troy  Hills,  Morris
County, New Jersey, together with the improvements located thereon.

      B.  Seller  desires to sell all of the  Property  (as defined in Section 1
below) to Purchaser,  and Purchaser desires to purchase all of the Property from
Seller,  on the  terms  and  conditions  set  forth  in this  Purchase  and Sale
Agreement (the "Agreement").

      NOW,  THEREFORE,  for value  received and in  consideration  of the mutual
promises set forth in this Agreement, the parties agree as follows:

      1. PURCHASE AND SALE OF THE PROPERTY

      Seller agrees to sell the Property to Purchaser,  and Purchaser  agrees to
purchase the Property from Seller, on the terms and conditions set forth in this
Agreement. The Property consists of:

            (a) All of Seller's  right,  title and interest in and to the parcel
or parcels of land described in Exhibit A attached hereto (the "Land"), together
with all easements, rights-of-way, appurtenances (including, without limitation,
air rights,  development  rights and other similar rights,  if any),  tenements,
hereditaments and water rights (if any) appertaining to or otherwise  benefiting
the Land or any of the Improvements (as defined below);

            (b) All of Seller's right,  title and interest in and to any and all
improvements,   buildings,   structures,  and  facilities,   including,  without
limitation,  the  structures  now located  thereon  consisting of structures for
office,  warehousing,  manufacturing and parking uses (the  "Building"),  now or
hereafter situated on the Land (collectively, the "Improvements");

            (c) All of  Seller's  right,  title and  interest  under all leases,
licenses  and  other  agreements  to  occupy  all or any  part  of the  Land  or
Improvements  (collectively,  the  "Leases"),  together with, and subject to the
manner in which the same are to be  prorated  under this  Agreement,  all rents,
charges,  deposits and other sums due, accrued or to become due thereunder,  and
all guaranties by third parties of any tenant's obligations under such leases;

            (d) All of Seller's right, title and interest, if any, to the extent
assignable  (without  obtaining  consent),  in  and  to  all  of  the  following
intangible  property now or hereafter existing with respect to the Property (the
"Intangible Property"):

                  (i) all  plans  and  specifications,  architectural  drawings,
building  permits and other permits issued in connection with the  construction,
operation, use or occupancy of the Improvements, and all warranties,  guaranties
and sureties now or hereafter received in connection with the construction of or
equipment on the Improvements; and

                  (ii)  all  licenses,  permits,   approvals,   certificates  of
occupancy and franchises relating to the zoning, land use, ownership, operation,
occupancy,  construction  or  maintenance of the  Improvements  running to or in
favor  of the  Seller,  the  Land,  or the  Improvements,  and all  deposits  to
governmental authorities relating to the Seller, the Land, or the Improvements.

      The Property  does not include and Seller is retaining  and not  conveying
hereby Seller's  manufacturing and materials handling equipment;  trash-handling
equipment,  industrial  waste-handling  equipment and  dust-handling  equipment;
racks and conveyors;  modular safes and vaults; washers;  electrical generators;
uninterrupted  power  supply  equipment   associated  with  computer  room  use;
independent  air-conditioning units for computer room use and all other computer
room  equipment and raised  flooring;  employee  lockers;  cafeteria  equipment;
security  equipment  (cameras,  metal detectors and the like); the "ATLAS" clock
that stands over the  front-entry,  and other  equipment  used in the conduct of
Seller's business operations.
<PAGE>

      2. TOTAL PURCHASE PRICE AND DEPOSIT

            (a) The  total  purchase  price for the  Property  is  Seventy  Five
Million Dollars ($75,000,000.00) (the "Purchase Price").

            (b) Within  three (3)  business  days after the  Effective  Date (as
hereinafter  defined),   Purchaser  shall  deposit  with  First  American  Title
Insurance  Company of New York,  633 Third  Avenue,  New York,  New York  10017,
Attention:  Bruce Clay (the  "Title  Company")  the sum of One  Million  Dollars
($1,000,000.00)  (the "Initial  Deposit") to be held as an earnest money deposit
as provided in Section 2(c) below.

            (c) Within three (3) business days  following the  expiration of the
Review Period,  Purchaser shall deposit an additional sum of Two Million Dollars
($2,000,000)  with the Title  Company (the  "Additional  Deposit").  The Initial
Deposit  and  the  Additional  Deposit  are  collectively  referred  to  as  the
"Deposit".

            (d) The  Deposit  will be  placed  and held in  escrow  by the Title
Company  in  an  interest-bearing  account  at  a  mutually  acceptable  banking
institution,  utilizing Purchaser's taxpayer identification number. Any interest
earned on the Deposit  shall be  considered  as part of the  Deposit.  Except as
otherwise  provided  in this  Agreement,  the  Deposit  will be  applied  to the
Purchase Price at Closing.

      3. PURCHASER'S REVIEW PERIOD

      Purchaser  shall have until  11:59 p.m.  eastern  time on the date that is
twenty-five  (25) days after the Effective Date (the "Review Period") to conduct
its due  diligence of the Property;  provided,  however,  if Purchaser  does not
receive the Title  Commitment and Survey (as  hereinafter  defined) on or before
the date that is fifteen (15) days after the Effective  Date (the "Title Receipt
Deadline"), the Review Period shall be extended by the number of days beyond the
Title  Receipt  Deadline,  but not in excess of five (5)  business  days,  until
Purchaser  has  received  the Title  Commitment  and  Survey.  During the Review
Period,  Purchaser shall have the right at Purchaser's expense to perform tests,
inspections  and  feasibility  studies on the  Property  as  Purchaser  may deem
necessary (collectively, the "Inspections");  provided, however, Purchaser shall
not take soil borings or perform other  invasive  tests without first  obtaining
Seller's  prior  written  approval,  which  approval  shall not be  unreasonably
withheld.

      All costs and expenses of all of Purchaser's  Inspections shall be paid by
Purchaser.  Purchaser  shall  indemnify,  hold  harmless and, at the election of
Seller,  defend  Seller  from any and all cost,  expense  (including  reasonable
attorneys' fees and costs), liability,  lien, charge or claim arising out of the
exercise by  Purchaser of its  inspection  rights  hereunder,  or the act of any
employee,   servant,  agent,   contractor,   officer  or  invitee  of  Purchaser
(collectively,   together   with   Purchaser,   referred   to  as   "Purchaser's
Representatives")  on the  Property,  including all damages  resulting  from any
damage to the  Property or any  property  of any tenant or other  person and any
injury  to  or  death  of  any  person,  provided,   however,  that  Purchaser's
obligations  hereunder  shall not apply to the mere  discovery of a pre-existing
environmental or physical condition at the Property.  Purchaser's obligations in
this  paragraph  shall  survive  Closing  (hereafter  defined)  and shall not be
limited as provided in Section 9.1.

      Purchaser  shall not cause or permit any mechanic's  liens,  materialmen's
liens  or other  liens  to be filed  against  the  Property  as a result  of the
Inspections. Purchaser shall immediately repair and/or restore any damage to the
Land or Building  caused by entry upon the Land or Building by  Purchaser or the
other  Purchaser's  Representatives  to  its  pre-existing  condition  following
performance of the Inspections.

      If,  before the end of the Review  Period,  Purchaser  notifies  Seller in
writing that  Purchaser does not accept the Property,  in  Purchaser's  sole and
absolute  discretion,  for any reason or for no  reason,  this  Agreement  shall
automatically  terminate, the Title Company shall immediately return the Deposit
to  Purchaser  and,  except for the  Post-Termination  Obligations  referred  to
Section 12.1 hereof,  neither party shall have any  obligations  to the other by
virtue of this Agreement.  In connection with such termination,  Purchaser shall
provide copies of all reports,  studies,  surveys and other data  (collectively,
"Inspection  Reports") obtained as a result of its Inspections to Seller, unless
otherwise  directed  in  writing  by  Seller  as to some  or all the  Inspection
Reports.

      4. SELLER'S TITLE TO THE PROPERTY

      At the Closing,  Seller shall  convey to Purchaser  fee simple  marketable
title to the Property,  subject only to the Permitted Exceptions (as hereinafter
defined)  and any liens or  encumbrances  caused  by  Purchaser  or  Purchaser's
Representatives.

      5. DOCUMENTATION REQUIRED FOR REVIEW PERIOD

      (a) Title Commitment.  Prior to or concurrently with the execution of this
Agreement,  Purchaser shall have ordered a commitment from the Title Company for
an extended  coverage owner's policy of title insurance  together with copies of
all items shown as exceptions to title therein (the "Title Commitment").  Within
five (5) business  days  following the  Effective  Date,  Seller shall deliver a
current as-built ALTA survey  ("Survey") of the Property  prepared by a licensed
engineer,  which  Survey  shall be  sufficient  to provide the basis for an ALTA
owner's policy of title insurance. All matters shown in the Title Commitment and
Survey and any other matter of record with respect to which  Purchaser  fails to
object prior to the  expiration of the Review Period shall be deemed  "Permitted
Exceptions";  provided,  however,  Permitted  Exceptions  shall not  include any
contractor's lien or any monetary lien, except for taxes and special assessments
not yet due and payable and  contractor's  liens and  monetary  liens  caused by
Purchaser or Purchaser's  Representatives,  or any deeds of trust, mortgages, or
other  loan  documents   secured  by  the  Property   (collectively,   "Monetary
Encumbrances").  If any matter not revealed in the Title Commitment or Survey is
discovered  by  Purchaser  or by the  Title  Company  at or  prior  to  Closing,
Purchaser  shall  have  until  the  earlier  of (i)  ten  (10)  days  after  the
Purchaser's  receipt of notice of such new matter,  together with a legible copy
of any such new  matter,  or (ii) the Date of  Closing,  to provide  Seller with
written  notice of its  objection  to any such new matter (an  "Objection").  If
Seller  does not  remove or cure such  Objection  prior to the Date of  Closing,
Purchaser  may  terminate  this  Agreement,  in which case the Deposit  shall be
returned  to  Purchaser  and neither  party  shall have any  further  obligation
hereunder,  except for the Post-Closing  Obligations referred to in Section 12.1
hereof,  or Purchaser can waive the Objection and complete Closing without claim
against Seller or deduction or set-off  against the Purchase  Price.  Except for
Monetary Encumbrances,  Seller shall not be obligated to remove any Objection or
other matter  which would be  disclosed  by an accurate  title search or survey.
Seller shall be deemed to have removed a Monetary Objection if the Title Company
is  willing  to omit a  Monetary  Objection  or to insure  Purchaser's  title as
provided  herein  with  affirmative  insurance  against  loss by  reason of such
Monetary Objection, at no extra charge to Purchaser.

                                       2
<PAGE>

            (b) Copies of Plans and Other  Information.  Seller  promptly  shall
deliver to or make reasonably  available to Purchaser,  the following materials,
documents and information,  to the extent the same are in Seller's possession or
control (excluding draft documents and legally privileged  materials):  (i) all,
if any, architectural,  engineering or construction contracts then in effect and
not  fully  performed  with  respect  to  any  of  the  Land  or  Building  (the
"Improvement  Contracts");  (ii) property tax and assessment  bills and complete
files on any ongoing tax protest  proceedings and any tax abatements relating to
the  Property;  (iii)  all  environmental  reports  and  assessments  (including
asbestos and lead paint),  and  engineering  consultants'  reports  prepared for
Seller  or  Seller's  Lender;  (iv)  copies  of all  plans,  specifications  and
architectural drawings for the Improvements; (v) a complete file with respect to
all pending  litigation  (including any condemnation)  affecting the Property or
any litigation  threatened in writing (including  condemnation)  known to Seller
and  affecting the  Property;  and (vi) a schedule of all licenses,  permits and
certificates  of  occupancy  for the  Property  currently in effect and known to
Seller, together with copies thereof and all amendments thereto to the extent in
Seller's possession (collectively, the "Due Diligence Materials").

            (c) Lease. Within three (3) business days of the date hereof, Seller
shall  deliver to  Purchaser  copies of all Leases  currently  in effect for the
Property.

            (d) Purchaser's Access.  Purchaser shall give not less than 24 hours
verbal  notice to Seller  prior to any entry upon the Land or  Building  for the
purpose of conducting  any such  inspections,  and such entry shall be scheduled
and coordinated  with Seller and shall be subject to the rights of tenants under
their respective leases. At Seller's election,  a representative of Seller shall
be present during any entry by any of Purchaser's  Representatives upon the Land
or Building for conducting said walk-through inspections. Access to the Land and
Building by Purchaser's  Representatives shall be subject to the requirements of
any permits, codes, regulations, rules, laws, statutes and other requirements of
any governmental  body, agency or authority having  jurisdiction.  Purchaser and
Purchaser's  Representatives  shall not unreasonably  interfere with the ongoing
operations  occurring at the Building or the adjacent sites during the course of
performing any such walk-through inspections.

      6. SELLER'S AND PURCHASER'S REPRESENTATIONS

            6.1  Seller's  Representations.  Seller  represents  and warrants to
Purchaser  that the  following  are true,  accurate  and complete as of the date
hereof and, subject to Section 6.2 below, will be true, accurate and complete as
of the Closing Date:

            (a)  Authority of Seller.  Seller is a  corporation  duly  organized
validly  existing and in good  standing  under the laws of the State of New York
and is  qualified  to do business  in the State of New  Jersey.  Seller has full
power and authority to enter into this Agreement and to perform its  obligations
under this Agreement. Seller's execution, delivery of and performance under this
Agreement are undertaken  pursuant to authority  validly and duly conferred upon
Seller and the signatories  hereto. This Agreement is a legal, valid and binding
obligation of Seller, enforceable against Seller in accordance with its terms.

            (b) No Breach of  Agreements.  Seller's  execution of this Agreement
and the  consummation  of the  transaction  evidenced  by this  Agreement do not
violate  Seller's  certificate of  incorporation or any agreement or contract to
which  Seller  is a  party  or  which  affects  the  Property,  nor to  Seller's
knowledge,  any law,  statute or ordinance which is binding upon the Property or
Seller.

            (c) Nonforeign  Status.  Seller is not a "foreign person" as defined
in Section 1445 of the Internal  Revenue Code of 1954, as amended.  Seller shall
deliver to Purchaser at closing a Certificate  of Nonforeign  Status in the form
attached hereto as Exhibit B.

            (d) No Violation  of Zoning and Other Laws or Private  Restrictions.
Seller has not  received  written  notice  that (i) the  Property  violates  any
building code,  building or use restriction,  subdivision law, zoning ordinance,
or any other governmental or quasi-governmental rule or regulation affecting the
Land or Building which has not been entirely corrected, and (ii) the Property or
the current use of the  Property  violates  any private  covenant,  restriction,
easement or encumbrance affecting the Land or Building.

            (e) Eminent Domain. To Seller's knowledge,  no written notice of any
pending  or  contemplated   eminent  domain  or  condemnation  of  the  Land  or
Improvements or any portion thereof has been issued.

                                       3
<PAGE>

            (f)  Leases.  Exhibit  C  attached  hereto  is a true,  correct  and
complete  listing of all Leases  (including  the New Lease (as defined  herein))
that affect the Property.  To the best of Seller's  knowledge,  Seller is not in
default (beyond  applicable cure periods) under any of the Leases and all Leases
are currently in full force and effect.

            (g) Utility Services. Seller has no actual knowledge of, and has not
received  any written  notices of, any  potential  stoppage or  interruption  of
utility services serving the Building.

            (h) Seller's Lease  Obligations.  No brokerage,  finders or referral
fees or  commissions  of any kind or  nature  shall  become  due or  payable  by
Purchaser in connection with any Leases entered into by Seller.

            (i) No Defaults.  To Seller's  knowledge,  no default,  violation or
breach  under any  covenant,  condition,  restriction,  right of way,  easement,
mortgage,  deed of trust, lien or license affecting the Property, or any portion
thereof, that is to be performed or complied with by Seller currently exists and
Seller has not received any written notice claiming that a default, violation or
breach any of the foregoing exists.

            (j) No Actions. There are no actions, suits, proceedings,  or claims
pending, or to Seller's knowledge,  threatened in writing, with respect to or in
any manner  affecting the Property which would be binding on or could be brought
against or  otherwise  affect  Purchaser  or which  would  prevent  Seller  from
satisfying its obligations under this Agreement.

            (k)  Hazardous  Materials.  To  Seller's  knowledge,  Seller has not
received  any written  notice from the United  States  Environmental  Protection
Agency or any other federal, state or local governmental authority,  any tenant,
adjacent  landowner or other party alleging that the Property is in violation of
any  applicable   Environmental  Laws  or  contains  any  Hazardous   Materials.
"Hazardous Materials" shall mean any asbestos, flammable substances, explosives,
radioactive materials, PCB-laden oil, hazardous waste, pollutants, contaminates,
toxic  substances,  pollution  or  related  materials  specified  as such in, or
regulated under any federal, state or local laws, ordinances, rules, regulations
or policies  governing use,  storage,  treatment,  transportation,  manufacture,
refinement,  handling,  production or disposal of such materials  (collectively,
"Environmental Laws"), including, without limitation to Section 9601 of Title 42
of the United States Code.

            (l)  Financial  Information;  Bankruptcy.  Seller,  (i)  is  not  in
receivership or dissolution,  (ii) has not made an assignment for the benefit of
creditors or admitted in writing its  inability to pay its debts as they mature,
(iii) has not been  adjudicated  a  bankrupt  or filed a petition  in  voluntary
bankruptcy or a petition or answer seeking reorganization or an arrangement with
creditors under the Federal bankruptcy laws or any similar law or statute of the
United  States or any  jurisdiction  and no such petition has been filed against
Seller,  and  (iv)  to its  knowledge,  none of the  foregoing  are  pending  or
contemplated.

      Each of the representations  and warranties  contained in this Section 6.1
is  acknowledged  by Seller to be material and to be relied upon by Purchaser in
proceeding with this transaction.  As used in this Agreement,  the terms "to the
best of Seller's  knowledge,"  "to  Seller's  knowledge,"  "known to Seller" and
phrases of similar meaning shall mean the actual, as distinguished from implied,
imputed or  constructive,  knowledge of James N. Fernandez and Patrick B. Dorsey
(the  "Designated  Persons"),  without inquiry or investigation or duty thereof,
without  attribution  to the Designated  Persons of facts and matters  otherwise
within the personal  knowledge  of any other  officers or employees of Seller or
third parties,  and  excluding,  whether or not actually known by the Designated
Persons, any matter actually known to Purchaser or its agents at the time of the
Closing.

            6.2 Limitation of Liability. Purchaser agrees that in the absence of
an intent on the part of Seller to fraudulently  conceal or fraudulently mislead
Purchaser,  Seller  shall  not be  liable  for any  breach  of any  warranty  or
misrepresentation,  Closing shall not be postponed and the Purchase  Price shall
not be reduced,  if and to the extent  Purchaser has actual  knowledge  that the
warranty or  misrepresentation  is  incorrect  prior to  Closing,  or Seller has
provided  Purchaser with written notice  received by Purchaser  prior to Closing
that such warranty or  representation  is incorrect;  provided that in the event
any warranty or  representation  is incorrect in a material  respect,  Purchaser
shall have the right to elect not to close this  transaction  and may  terminate
this  Agreement by written  notice to Seller in which event the Deposit shall be
returned to Purchaser and Seller shall be solely  responsible for payment of all
cancellation  charges of the escrow and any title order, and except for the Post
Termination   Obligations  neither  party  shall  have  any  further  obligation
hereunder.  If Purchaser  does not so terminate this  Agreement,  then Purchaser
shall be deemed to have accepted such  representation or warranty subject to the
exception  disclosed  in  writing  by  Seller  or  based on  Purchaser's  actual
knowledge,  in which case such representation or warranty shall be modified,  as
appropriate, so as to be true and correct when remade at Closing.

            6.3  Survival of  Warranties.  All of Seller's  representations  and
warranties  in this  Agreement  shall  be  deemed  given  as of the date of this
Agreement,  and shall (subject to Section 6.2) be updated in a certificate to be
provided  to  Purchaser  at and as of the  Closing  Date.  All of the  aforesaid
representations  and warranties  shall survive the closing of this  transaction;
provided,  however,  that any claim for any misrepresentation or breach shall be
deemed to have been waived unless  Purchaser  notifies Seller in writing of such
claim for  misrepresentation  or breach  within  twelve  (12)  months  after the
Closing,  provided,  further:  (a) any claim by  Purchaser  shall be  limited to
direct,   out  of  pocket  losses  incurred  by  Purchaser  as  a  result  of  a
misrepresentation  or breach of warranty,  and  Purchaser  waives all claims for
incidental,  consequential  or other damages;  (b) Purchaser waives and shall be
barred from bringing any claim based on any alleged  misrepresentation or breach
of warranty where the damages asserted to have been caused thereby do not exceed
Twenty-Five  Thousand  Dollars  ($25,000) in the aggregate,  and (c) the maximum
liability of Seller for all  misrepresentations  and breaches of warranty in the
aggregate shall not exceed One Million Dollars ($1,000,000).

                                       4
<PAGE>

            6.4 As Is. The  transaction  contemplated by this Agreement has been
negotiated between Seller and Purchaser, reflects the mutual agreement of Seller
and  Purchaser,  and  Purchaser  has the right to  conduct  its own  independent
examination  of the Property.  Other than the matters  expressly  represented in
this  Agreement,  Purchaser  has not relied upon and will not rely upon,  either
directly  or  indirectly,  any  representation  or  warranty of Seller or of any
officer,  director,  employee, agent or attorney of Seller, and Purchaser hereby
acknowledges that no such  representations  or warranties have been made. Except
as otherwise  expressly  provided herein,  Seller  specifically  disclaims,  and
neither  Seller nor any of Seller's  affiliates  nor any other person is making,
any  representation,  warranty or  assurance  whatsoever  to  Purchaser,  and no
warranties  or  representations  of any kind or  character,  either  express  or
implied,  are made by Seller or of any  officer,  director,  employee,  agent or
attorney of Seller or relied  upon by  Purchaser  with  respect to the status of
title to or the maintenance,  repair, condition,  design or marketability of the
Property,  or any portion thereof,  including but not limited to (a) any implied
or express  warranty of  merchantability  or  marketability,  (b) any implied or
express warranty of fitness for a particular purpose, (c) any implied or express
warranty  of  conformity  to models or samples of  materials,  (d) any rights of
Purchaser under appropriate  statutes to claim diminution of consideration,  (e)
any claim by Purchaser for damages because of defects, whether known or unknown,
with respect to the  improvements  or the personal  property,  (f) the financial
condition or prospects of the Property and (g) the compliance or lack thereof of
the Property with governmental regulations,  including,  without limitation, any
environmental laws, now existing or hereinafter enacted or promulgated, it being
the express  intention of Seller and  Purchaser  that,  except as expressly  set
forth in this  agreement,  the  Property  will be conveyed  and  transferred  to
Purchaser in its present condition and state of repair,  "as is" and "where is,"
with all  faults.  Upon  Closing,  subject  to the  express  provisions  of this
Agreement,  Purchaser will assume the risk that adverse matters,  including, but
not limited to, adverse physical and environmental conditions, may not have been
revealed  by  Purchaser's  inspections  and  investigations.  Purchaser  further
acknowledges  and  agrees  that  there  are no oral  agreements,  warranties  or
representations  collateral to or affecting the Property by Seller, any agent of
Seller or any third  party.  Seller is not  liable or bound in any manner by any
oral or written  statements,  representations  or information  pertaining to the
Property furnished by any real estate broker, agent, employee,  servant or other
person,   unless  the  same  are  specifically   set  forth  herein.   Purchaser
acknowledges  that the Purchase  Price  reflects the "as is, where is" nature of
this sale and any faults, liabilities, defects or other adverse matters that may
be associated with the Property.  Purchaser, with Purchaser's counsel, has fully
reviewed the disclaimers and waivers set forth in this Agreement and understands
their  significance  and agrees that the  disclaimers  and other  agreements set
forth herein are an integral part of this  Agreement,  and that Seller would not
have agreed to sell the Property to Purchaser for the purchase price without the
disclaimers and other agreements set forth in this Agreement.

            6.5  Representations  of Purchaser.  Purchaser  hereby  warrants and
represents to Seller that  Purchaser has the full right,  power and authority to
purchase the Property as provided  herein and to execute,  deliver and carry out
all of the  provisions  of this  Agreement.  The  execution and delivery of this
Agreement  and any other  documents  required  of  Purchaser  hereunder  and the
performance and observance of all of their terms, conditions and obligations and
their execution by the signatories  thereto have been or will be duly authorized
by all  necessary  action of  Purchaser  and do not  violate  any  agreement  or
contract to which Purchaser is a party, nor to Purchaser's  knowledge,  any law,
statute, ordinance or court order which is binding upon Purchaser.  Purchaser is
a limited  partnership  validly  formed and duly  organized and existing in good
standing  under the laws of the State of  Delaware.  This  Agreement is a legal,
valid and binding  obligation of  Purchaser,  enforceable  against  Purchaser in
accordance with its terms.  Purchaser's  representations  and warranties  herein
shall be deemed to be restated at Closing and shall survive Closing.

      7. CONDITIONS TO CLOSING

            7.1  Purchaser's  Conditions.  Purchaser's  obligation to close this
transaction  is  subject  to the  full  satisfaction  of each  of the  following
conditions:

            (a) Seller's Compliance.  Seller's timely fulfillment of each of its
obligations under this Agreement.

            (b) Material  Condemnation.  The absence of any  condemnation or the
written threat or institution of  condemnation  proceedings  which result in the
taking of any part of the Land, or any  Improvement  on the  Property,  with, in
either case, a value of more than Five Hundred Thousand Dollars ($500,000), or a
reduction in the number of any parking  spaces below the minimum level  required
by law for use by the tenants of the  Building,  or any material  limitation  or
restriction   on  pedestrian  or  vehicular   access  to  and  from  any  public
rights-of-way  adjacent  to the  Land.  If any of  the  foregoing  shall  occur,
Purchaser  may elect to terminate  this  Agreement  by written  notice to Seller
within ten (10) days after the date  Purchaser  receives  written notice of such
occurrence, in which case the Deposit shall be returned to Purchaser and neither
party shall have any further obligation hereunder.  If Purchaser does not timely
elect to terminate  this  Agreement and this  transaction  closes,  the Purchase
Price shall not be reduced and Seller  shall  assign to Purchaser at Closing all
condemnation  awards and  rights to awards  which were not used by Seller to pay
the costs of any  restoration of the Land or  Improvements  necessitated  by the
condemnation or to pay Seller's reasonable  out-of-pocket expenses in connection
therewith.  No termination of this Agreement under this Section shall affect any
Post Termination Obligations.

            (c)  Material  Casualty.  The  absence  of any  material  damage  by
casualty to the  Improvements  which has not been  repaired by the Closing Date.
For the purposes  hereof,  a "material  damage by casualty"  shall be deemed any
damage by fire or other  casualty  which has not been  repaired  and paid for by
Seller by the Closing  Date and for which the  estimated  cost of the  remaining
repairs equals or exceeds Two Million Dollars ($2,000,000).  If the Improvements
suffer  any  material  damage by  casualty,  Purchaser  shall have the right and
option,  as its sole remedy,  to terminate this  Agreement  within ten (10) days
after the date of the casualty or by the Closing, whichever first occurs (unless
Seller restores the Property to its prior condition before the Closing Date). If
the  estimated  cost to repair any damage by casualty as of the Closing  Date is
less than Two Million Dollars  ($2,000,000),  Purchaser shall not have the right
to terminate  this  Agreement.  If Purchaser  does not elect timely to terminate
this  Agreement or does not have the right to  terminate  this  Agreement,  this
transaction  shall close  without  increase or decrease in the  Purchase  Price.
Seller shall proceed to effect such repairs as are reasonably  possible prior to
Closing unless otherwise agreed to in writing by Purchaser,  and Purchaser shall
be entitled at Closing to an assignment of all insurance  proceeds which are not
used  to  pay  the  costs  of  such  repairs  or  to  pay  Seller's   reasonable
out-of-pocket  expenses in connection  therewith (insurance proceeds received by
Purchaser shall be remitted to Seller,  as tenant under the New Lease (hereafter
defined), for repair and reconstruction of the Property). No termination of this
Agreement under this Section shall affect any Post Termination Obligations.

                                       5
<PAGE>

            (d) New Lease.  On the  closing of this  transaction,  Seller  shall
execute and deliver to  Purchaser a lease  agreement  for the  Property  between
Purchaser,  as landlord, and Seller, as tenant, with an effective date as of the
Closing in substantially the form attached as Exhibit C (the "New Lease").

            (e) Guaranty. On the Closing,  Tiffany & Co., a Delaware corporation
("Guarantor"),  shall have executed and delivered to Purchaser a guaranty of the
New  Lease  in  favor  of  Purchaser  as  landlord  under  the  New  Lease,   in
substantially the form attached as Exhibit D (the "Guaranty").

            (f) Legal Opinion.  Seller shall have delivered to Purchaser a legal
opinion from a reputable lawfirm  authorized to practice law in the jurisdiction
in which the  Property is located  that is  reasonable  acceptable  to Purchaser
regarding the due authorization,  execution,  delivery and enforceability of the
New Lease and the Guaranty by Seller and Guarantor, respectively.

            (g) Service Contracts.  Seller shall have terminated all service and
maintenance contracts used by the Seller in the operation of the Improvements in
its capacity as owner (the "Service Contracts") or, alternatively,  Seller shall
provide evidence,  satisfactory to Purchaser, that any and all obligations under
the  existing  Service  Contracts  shall  not be  transferred  to  Purchaser  in
connection with such Closing;

            (h) Management  Agreement.  On or before Closing,  Seller shall have
notified  any manager of the Property  that such  management  agreement  will be
assumed by Seller in its capacity as tenant under the New Lease.

            (i) Association Estoppel.  Written verification that, to the best of
its  knowledge,  there is no  default or event that with the giving of notice or
passage  of time  would  constitute  a  default  by  Seller  under the terms and
provisions  of  the  Declaration  of  Covenants,   Conditions  and  Restrictions
governing the Campus Conservation and Management Association, Inc.

            (j) Title Related Estoppels.  Seller shall provide Purchaser,  at no
cost  to  Purchaser,   any  title  related  estoppels  reasonably  requested  by
Purchaser,  which estoppels shall address such items including,  but not limited
to, the existence of any reverter  rights,  purchase  options,  and/or rights of
first refusal.

            7.2  Seller's   Conditions.   Seller's   obligation  to  close  this
transaction  is  subject to  Purchaser's  fulfillment  of each of the  following
conditions:

            (a) Purchaser's  Compliance.  Purchaser's timely fulfillment of each
of its obligations under this Agreement.

            (b) New  Lease.  At  Closing,  Purchaser  shall  have  executed  and
delivered the New Lease to Seller.

            (c) Legal Opinion.  Purchaser shall have delivered to Seller a legal
opinion from a reputable law firm authorized to practice law in the jurisdiction
in which  the  Property  is  located  that is  reasonably  acceptable  to Seller
regarding the due authorization,  execution,  delivery and enforceability of the
New Lease by Purchaser.

            (d) Purchase Price.  Purchaser shall have paid the Purchase Price at
Closing.

            7.3 Failure of Condition. If any condition to Purchaser's obligation
to close this transaction specified in Section 7.1 is not satisfied on or before
the Closing Date, Purchaser may, at its option, by written notice to Seller, (i)
waive such  condition,  in which case Purchaser  shall complete  Closing without
claim against Seller or reduction in the Purchase  Price, or (ii) terminate this
Agreement and receive a return of the Deposit,  in which case (x) if the failure
of the condition is due to a breach or default by Seller of any  representation,
warranty,  covenant,  obligation or duty of Seller hereunder,  pursue any of its
remedies  under  Section 9.2 hereof,  and (y) if the failure of condition is not
due to a breach or default by Seller as aforesaid,  neither party shall have any
further  liability  hereunder,  provided that the Post  Termination  Obligations
shall survive any such termination.  If any condition to Seller's  obligation to
close this  transaction  specified in Section 7.2 is not  satisfied on or before
the Closing  Date,  Seller  shall be entitled  only to the remedies set forth in
Section 9.1 of this Agreement for Purchaser's breach.

                                       6
<PAGE>

      8. CLOSING

            8.1 Closing Date. Subject to the parties'  termination  rights, this
transaction  shall close five (5) days  following  the  expiration of the Review
Period or on such other date mutually  agreed upon by Seller and Purchaser  (the
"Closing Date").

            8.2 Manner and Place of  Closing.  This  transaction  will be closed
("Closing")  through a deed and money escrow by the Title  Company or its escrow
affiliate  at its  offices in New York,  New York or at such other  place as the
parties may mutually agree to in writing. Closing shall take place in the manner
and in accordance with the provisions set forth in this Agreement.

            8.3 Prorations, Adjustments

            (a) Seller shall pay all real estate transfer taxes assessed against
the transfer of fee simple title to the Land and Improvements.

            (b)  Seller  shall pay all  applicable  sales  and use taxes  levied
against the sale of the Personal Property and Intangible Property, if any.

            (c) All monetary  obligations  under all Service  Contracts shall be
the sole responsibility of Seller.

            (d) Purchaser  shall pay the recording fees for the Deed (as defined
below).

            (e)  Seller  shall pay the  premium  for the Title  Policy  required
hereby and the cost of the Survey required hereby.

            (f) Seller and  Purchaser  shall each pay one-half of the escrow and
"New York  Style"  closing  fees  charged  by the Title  Company  or its  escrow
affiliate.

            (g) At the Closing,  Seller and  Purchaser  shall  execute a closing
settlement   sheet  to  reflect  the  credits,   prorations,   and   adjustments
contemplated by or specifically provided for in this Agreement.

            8.4  Payment  of the  Purchase  Price.  Subject  to the  prorations,
credits  and debits  agreed to herein,  Purchaser  will pay the entire  Purchase
Price and all  additional  sums due from  Purchaser to Seller  hereunder by wire
transfer of immediately available funds in accordance with instructions provided
by Seller at Closing, less (a) the Deposit, which shall be paid by wire transfer
of immediately available funds from the Escrow Agent to Seller at Closing.

            8.5 Events of Closing. At Closing:

            (a) Subject to Section 6.2 above,  Seller  shall  provide  Purchaser
with  a   certificate   signed  by  Seller   updating  and   remaking   Seller's
representations  and  warranties.  To the  extent any such  representations  and
warranties of Seller are given to the best of Seller's  knowledge or to Seller's
knowledge or Seller's actual  knowledge,  such certificate shall be given on the
same basis.

            (b)  Seller  shall  provide   Purchaser  with  the   Certificate  of
Nonforeign Status in the form of Exhibit B attached hereto.

            (c)  Seller  shall  provide  Purchaser  and the Title  Company  with
documents,  reasonably  acceptable  to Purchaser and Title  Company,  evidencing
Seller's authority to enter into and consummate the transaction  contemplated by
this Agreement.

            (d) The  Title  Company  or its  escrow  affiliate  shall  prepare a
settlement  statement  which must be approved by Seller and  Purchaser,  and the
parties shall be charged and credited accordingly.

            (e) Purchaser shall pay the entire Purchase Price,  less the Deposit
which shall be  delivered  to Seller by the Escrow  Agent,  to Seller in cash or
immediately  available  funds,  adjusted  for the  charges,  credits  and escrow
deposits set forth in this Section 8.

            (f) Any liens,  encumbrances  or  judgments  to be paid by Seller at
Closing  pursuant  to  Section  4(a)  shall be paid and  satisfied  of record at
Seller's expense.

            (g) Seller shall execute and deliver to Purchaser a bargain and sale
deed with  covenants  against  grantor's  acts (the "Deed") in the form attached
hereto as Exhibit E conveying to fee simple  marketable title to the Property to
Purchaser, together with any required transfer or conveyance tax returns.

            (h)  Seller   shall   execute  and  deliver  all  other   documents,
certificates,  affidavits,  tax returns and instruments necessary to fulfill all
obligations on Seller's part required to be satisfied as of Closing.

            (i) Seller and Purchaser shall execute and deliver to each other the
New Lease and the Memorandum of Lease in the form attached  hereto as Exhibit F.
The Title Company or its escrow  affiliate  shall record the Deed and Memorandum
of Lease with the  appropriate  recording  office and pay all transfer  taxes in
connection therewith.

                                       7
<PAGE>

            8.6 Possession.  Seller shall deliver  possession of the Property to
Purchaser at Closing,  subject to Seller's rights as tenant under the New Lease.
At Closing,  Seller shall notify all providers under the Service  Contracts that
such contract shall be a direct contract between the service provider thereunder
and Seller, as tenant, under the New Lease.]

      9. DEFAULTS AND FAILURE TO CLOSE

            9.1 Seller's  Remedies.  If Purchaser  willfully refuses to complete
Closing  hereunder as, if and when required  hereunder,  or Purchaser  otherwise
defaults hereunder,  Seller shall have the right to terminate this Agreement, in
which case the Deposit shall be paid to Seller by the Escrow Agent as liquidated
damages for the  Purchaser's  default,  and thereafter the parties shall have no
further  rights  or  liabilities  hereunder  other  than  the  Post  Termination
Obligations.  The parties recognize that Seller will incur expense in connection
with the transactions  contemplated by this Agreement and that the Property will
be removed  from the market and,  further,  that it is extremely  difficult  and
impractical to ascertain the extent of detriment to Seller caused by a breach or
default by Purchaser under this Agreement and the failure of the consummation of
the  transactions  contemplated  by this Agreement or the amount of compensation
Seller should receive as a result of Purchaser's breach or default.  The parties
acknowledge that the amount of the Deposit  represents a reasonable  estimate of
Seller's damages.

            9.2  Purchaser's  Remedies.  If Seller  willfully  refuses to convey
title to the Property at Closing as, when and if required  hereunder,  or Seller
otherwise defaults hereunder ("Seller's Breach") and Purchaser is ready, willing
and able to make all payments due and complete  Closing,  then  Purchaser's only
remedies shall be to: (a) obtain specific  performance of Seller's obligation to
convey title to the Property or (b) terminate and receive return of the Deposit,
together  with  Purchaser's   reasonable   out-of-pocket  expenses  incurred  in
connection  with the transaction  contemplated  by this  Agreement.  In no event
shall Seller be liable to Purchaser for  incidental,  consequential  or punitive
damages.

            9.3  Defaults.  Except for (a) either  party's  wrongful  failure to
deposit any  document  or sum as and when  required by Section 8, and (b) either
party's wrongful  failure to close by the required  Closing Date,  neither party
shall be deemed in  default  under  this  Agreement  unless  such party is given
written  notice of its failure to comply with this  Agreement  and such  failure
continues for a period of five (5) business days  following the date such notice
is given.

      10. CONDUCT OF BUSINESS

            10.1  Contracts.  From the date of this Agreement  until the Closing
Date,  Seller  will  continue to operate the  Property  in  accordance  with its
current  management,  operation  and  practices.  Seller will not enter into any
purchase  contract  obligation  in its  capacity as owner under which  Purchaser
would be obligated  following  the Closing Date unless  Seller first obtains the
written approval of Purchaser, in Purchaser's sole discretion. Seller shall make
as and when due all  payments  required  to be made by Seller  under the Service
Contracts or Improvement Contracts and, upon request by Purchaser,  Seller shall
provide Purchaser with evidence of such payments.

            10.2  Permits.  From the date of this  Agreement  until the  Closing
Date,  Seller  agrees to  maintain  the  existence  of any  licenses  or permits
required for the lawful and proper  operation and occupancy of the Property,  to
file timely all reports,  statements,  renewal  applications  and other  filings
required  in  connection  therewith  and to pay timely  all fees and  charges in
connection therewith that are required to keep such licenses and permits in full
force and effect;  not to violate or expressly  agree to allow  another party to
violate any law, ordinance,  rule or regulation  affecting the Property;  not to
apply for or join in any change in zoning,  platting  or similar  pubic land use
matters related to the Property,  or any laws relating to the Property;  and not
to dispose of or remove or permit to be  disposed  of or removed  any  fixtures,
equipment or personal property owned by Seller constituting part of the Property
unless the same are rendered  obsolete or of no further value, in which case the
same shall be replaced by Seller with similar items of substantially the same or
better  quality and value as the  replaced  items when new and that are free and
clear of any lien or encumbrance or title retention agreement.

            10.3  Leases.  Between  the date of this  Agreement  and the Closing
Date,  Seller  shall  not,  without   Purchaser's  prior  written  consent,   in
Purchaser's sole and absolute  discretion,  (i) renew any Leases, (ii) amend any
Leases,  (iii)  terminate  any Leases or (iv) enter into any  additional  leases
affecting the Property,  including, without limitation, any potential leases for
which  Seller  has  executed  a  letter  of  intent  prior  to the  date of this
Agreement.

            10.4 Property Agreements. Between the date of this Agreement and the
Closing Date, Seller shall not, without  Purchaser's  prior written consent,  in
Purchaser's sole and absolute  discretion,  enter into any easement agreement or
agreement of any nature which would burden the Property.

            10.5  Notification  to  Purchaser.  Until  the  Closing  Date or the
earlier termination of this Agreement,  each party agrees to notify the other in
writing  within five (5) days after  receiving  notice,  or otherwise  obtaining
actual knowledge, of:

            (a) Any fact or event which would make any of the representations or
warranties  of Seller  contained in this  Agreement  untrue or misleading in any
material  respect or which would cause  Seller to be in  violation of any of its
covenants or other undertakings or obligations hereunder.

                                       8
<PAGE>

            (b) Any  violation of any law,  ordinance,  regulation  or law which
would or might materially affect the Property or any portion thereof.

            (c) Any proposed  change in any zoning or law  affecting  the use or
development of the Property or any part thereof.

            (d) Any pending or  threatened  (and  unresolved)  litigation  which
affects  or  relates  to the  Property  or any part  thereof  and would  subject
Purchaser  to  liability  or which would  materially  and  adversely  affect the
transaction contemplated hereby.

            (e) Any material  damage or destruction  (excluding  normal wear and
tear) to the Property or any part thereof.

            (f) Any  pending or  threatened  (and  unresolved)  condemnation  or
eminent domain proceeding affecting the Property or any part thereof.

            (g)  Any  threatened  (and  unresolved)  or  pending  proceeding  in
bankruptcy or insolvency which would  materially  adversely affect the Seller or
Property.

            (h) Any  material  default  under  any of the  Leases,  or any other
agreement  affecting all or any portion of the Property,  or any act or omission
which,  with the  passage  of time or the  giving  of  notice,  or  both,  would
constitute a default.

            (i) Any  written  notice  or other  communication,  from the  United
States  Environmental  Protection  Agency or any other  federal,  state or local
governmental  authority having  jurisdiction over the Property,  with respect to
(i) any alleged violation  concerning the Property of any Environmental Laws; or
(ii) the handling, release, use, discharge, storage or disposal of any Hazardous
Materials at, on or from the Property.

      11. INDEMNIFICATION

            11.1 Seller's  Indemnification.  Seller shall indemnify,  defend and
hold harmless Purchaser from and against any and all claims,  demands, causes of
action, losses, damages,  liabilities,  costs and expenses (including attorneys'
fees and court  costs,  whether suit is  instituted  or not),  asserted  against
Purchaser  by reason of or  arising  out of (i) a breach of any  representation,
warranty  or  covenant  of  Seller  contained  in this  Agreement  or  (ii)  the
ownership,  management,  operation,  maintenance  and/or  repair of the Property
prior to the Closing Date. Seller's indemnification for breach of representation
or warranty is subject to the  limitations  in Section 6.3  notwithstanding  any
provision in this Section to the contrary.

            11.2 Purchaser's Indemnification.  Purchaser shall defend, indemnify
and hold harmless Seller from and against any and all claims, demands, causes of
action, losses, damages,  liabilities,  costs and expenses (including attorneys'
fees and court costs, whether suit is instituted or not) asserted against Seller
by reason of or arising out of  Purchaser's  ownership,  management,  operation,
maintenance  and/or  repair of the  Property  from and after the  Closing  Date.
Purchaser's  indemnification  is not  subject  to the  limitation  on damages in
Section 9.1

            11.3  Survival  of  Indemnifications.  Each of the  indemnifications
contained  in this  Section  shall  survive  for a period of twelve  (12) months
following the Closing.

      12. GENERAL PROVISIONS

            12.1  Post  Termination  Obligations.  The  parties  agree  that (a)
Purchaser's  obligation to restore the Property under Section 3 and to indemnify
Seller under Sections 3 and 12.8 hereof; (b) Seller's and Purchaser's obligation
to maintain the  confidentiality of certain  information  referred to in Section
12.12 hereof (all of such Purchaser's and Seller's obligations being referred to
in this Agreement as the "Post  Termination  Obligations");  and (c) the general
provisions  contained  in this  Section 12, shall all continue in full force and
effect notwithstanding any cancellation,  termination,  expiration or forfeiture
of this  Agreement,  and  Purchaser's  liability,  to the  extent  of such  Post
Termination  Obligations  stated  herein,  shall not be limited as  provided  in
Section 9.1.

            12.2  Assignments  and  Successors.  This Agreement shall be binding
upon and inure to the benefit of the parties and their respective successors and
assigns.  Notwithstanding  the foregoing,  Purchaser may not assign its interest
under this Agreement without the prior written consent of Seller,  which consent
may be granted or withheld  in  Seller's  sole  discretion,  provided,  however,
without Seller's consent,  Purchaser shall have the right to assign its interest
under this Agreement to any entity that is,  directly or indirectly,  controlled
by or under common control with Caplease, LP, provided Caplease and the assignee
shall be jointly and severally liable for the Post Termination Obligations.

            12.3 Notices.  Notices under this Agreement  shall be in writing and
if personally  delivered,  delivered by courier, or telefaxed shall be effective
when  received.  If  mailed,  a notice  shall be deemed  effective  on the third
business day after deposited as registered or certified mail,  postage  prepaid,
return  receipt  requested,  directed to the other  party at the  address  shown
above.  All notices to Seller shall be given to Seller's  address  herein stated
with a copy to Gibbons, Del Deo, Dolan,  Griffinger & Vecchione,  One Riverfront
Plaza, Newark, New Jersey 07102,  Attention:  Russell Bershad, Esq., Telecopier:
(973)  639-6345.  All  notices to  Purchaser  shall be given to the  Purchaser's
address herein stated,  with a copy to Wolf,  Block,  Schorr & Solis-Cohen  LLP,
1650 Arch Street,  Philadelphia,  Pennsylvania 19103 Attention: Helene S. Jaron,
Esq.,  Telecopier:  (215)  405-2938.  Either  party may change its  address  for
notices by at least five (5) days advance written notice to the other.

                                       9
<PAGE>

            12.4  Waiver.  Failure  of  either  party  at any  time  to  require
performance of any provision of this Agreement shall not limit the party's right
to enforce the provision.  Waiver of any breach of any provision  shall not be a
waiver of any  succeeding  breach of the  provision or a waiver of the provision
itself or any other provision.

            12.5 Attorneys'  Fees. In the event any suit or action is instituted
to interpret or enforce the terms of this Agreement,  the prevailing party shall
be  entitled  to recover  from the other party such sum as the court may adjudge
reasonable  as  attorneys'  fees at  trial,  on any  appeal,  in any  bankruptcy
proceeding  and in any  petition  for  review,  in  addition  to all other  sums
provided by law.

            12.6 Prior  Agreements.  This Agreement  supersedes and replaces all
written and oral  agreements  previously  made or existing  between the parties,
including,  without limitation, all correspondence and letters of intent related
to the Property.

            12.7 Applicable Law. This Agreement shall be construed,  applied and
enforced  in  accordance  with the laws of the  State  of New  Jersey.  All sums
referred  to in this  Agreement  shall be  calculated  by and be  payable in the
lawful currency of the United States.

            12.8 Real Estate  Commissions.  Seller agrees to pay any  commission
owed by Seller to JPMorgan  Chase  ("Broker")  pursuant to the terms of any then
effective  agreement  between  Seller and  Broker.  Each party  hereto  shall be
responsible  for all other  commissions  and  finders'  fees to which such party
agreed in writing or for which such party is otherwise  legally liable by virtue
of any  dealings by such party with any broker or finder,  and shall  defend and
indemnify the other party hereto against any and all claims therefor. Each party
represents  and  warrants to the other that it has dealt with no other broker or
finder in connection with this transaction.

            12.9  Legal  Relationships.  This  Agreement  shall not  create  any
partnership,  joint  venture,  or other  joint  undertaking  between  Seller and
Purchaser, and neither party shall be liable for the debts or have the authority
to make any  representations  on behalf of the other. No third party is intended
to be  benefited  or  afforded  any  legal  rights  under or by  virtue  of this
Agreement.

            12.10  Changes in Writing.  This  Agreement and any of its terms may
only be changed, waived, discharged or terminated by a written instrument signed
by the party  against  whom  enforcement  of the change,  waiver,  discharge  or
termination is sought.

            12.11 Indemnified  Parties.  Any  indemnification  contained in this
Agreement  for the benefit of Seller or  Purchaser  shall extend to Seller's and
Purchaser's officers, employees, and agents, respectively.

            12.12  Confidentiality  and Return of Documents.  Prior to acquiring
the Property,  Purchaser shall use and disclose information it obtains about the
Property solely in connection with its purchase evaluation. Seller and Purchaser
shall each maintain as  confidential  any and all materials  obtained  about the
other,  and, in the case of Purchaser,  concerning  the Property,  and shall not
disclose any such  information  to any third party  except (a) to such  parties'
respective  partners,   employees,  agents  and  permitted  assignees,  Property
consultants  and  attorneys;  (b) as required by applicable  law or any court of
competent jurisdiction;  and (c) for any information which is otherwise a matter
of public  record  or  available  from any  non-confidential  source,  provided,
however,  Purchaser shall have the right to make public announcements  regarding
the execution of this Agreement and the pending transaction,  provided Purchaser
shall not disclose the financial  terms (other than the Purchase  Price) of this
transaction in any announcements.

            12.13  Invalidity of Provisions.  In the event any provision of this
Agreement, or any instrument to be delivered by Purchaser at closing pursuant to
this Agreement,  is declared  invalid or is unenforceable  for any reason,  such
provision shall be deleted from such document and shall not invalidate any other
provision contained in the document.

            12.14 Counterparts. This Agreement may be executed simultaneously or
in  counterparts,  each of which shall be deemed an  original,  but all of which
together shall constitute one and the same Agreement.

            12.15 Time of the Essence; Saturday, Sunday and Legal Holidays. Time
is of  the  essence  with  respect  to the  date  and  time  for  all  payments,
performances  and notices in this Agreement,  subject to the next sentence,  and
excluding  Closing.  If any date for payment,  performance  or notice under this
Agreement  falls on a  Saturday,  Sunday  or legal  holiday  of the State of New
Jersey, such payment,  performance or notice shall be made or given, as the case
may be, on the Monday  next  following  a payment,  performance  or notice  date
falling on the immediately prior Saturday or Sunday, or on the day (other than a
Saturday or Sunday) which is not a legal holiday of the State of New Jersey next
following  a payment,  performance  or notice date  falling on a legal  holiday.
Either  party  shall have the right to make time of the  essence  for Closing by
notice to the other side setting a time of the essence date for Closing at least
ten (10) days after the date of the notice (and the parties  waive any objection
that ten  (10)  days  constitutes  insufficient  notice),  which  notice,  to be
effective, shall not be delivered prior to the Closing Date set forth in Section
8.1.

                                       10
<PAGE>

            12.16 Additional Documents. Seller and Purchaser agree to deliver to
each other such further  instruments  and/or  documents  as each may  reasonably
request  for the  purpose of  carrying  out and  consummating  the  transactions
contemplated by this Agreement,  provided that such instruments and/or documents
do not  enlarge  Seller's  or  Purchaser's,  as the  case  may  be,  obligations
hereunder,  or decrease  Seller's  or  Purchaser's,  as the case may be,  rights
hereunder.

            12.17 No Recording.  Neither this  Agreement  nor any  memorandum of
this Agreement may be recorded.

                                     * * * *

                                       11
<PAGE>

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

SELLER:                          TIFFANY AND COMPANY,
                                 a New York corporation

                                 By: /s/ James N. Fernandez
                                     -------------------------------------------
                                     Name:  James N. Fernandez
                                     Title: Chief Financial Officer

PURCHASER:                       CAPLEASE, LP, a Delaware limited partnership

                                 By: CLF OP General Partner, LLC, a Delaware
                                     limited liability company, its general
                                     partner

                                     By: Capital Lease Funding, Inc., a Maryland
                                         corporation, its sole member

                                         By: /s/ Shawn P. Seale
                                             -----------------------------------
                                             Name: Shawn P. Seale
                                             Title: Senior Vice President

                                       12
<PAGE>

ESCROW AGENT HEREBY ACKNOWLEDGES  RECEIPT OF THE DEPOSIT AND AGREES TO HOLD SAME
IN ESCROW PURSUANT TO THE TERMS AND CONDITIONS CONTAINED IN THIS AGREEMENT.

FIRST AMERICAN TITLE INSURANCE COMPANY OF NEW YORK

By: /s/ Richard Hausman
    ------------------------------------
    Name: Richard Hausman
    Its:  Senior Vice President

                                       13LOAN NO.: 50-2853324                                            TIFFANY BUILDING

                                 PROMISSORY NOTE
                                   (HYPER-AM)
                                    (NOTE A)

$58,400,000.00                                                September 28, 2005

      FOR VALUE  RECEIVED,  the  undersigned,  CLF  SYLVAN  WAY LLC,  a Delaware
limited liability  company  ("MAKER"),  having an address c/o Caplease,  LP, 110
Maiden Lane, 36th Floor, New York, New York 10005,  promises to pay to the order
of  WACHOVIA  BANK,  NATIONAL   ASSOCIATION,   a  national  banking  association
("PAYEE"),  at the office of Payee at  Commercial  Real  Estate  Services,  8739
Research Drive URP - 4, NC 1075,  Charlotte,  North Carolina  28262,  or at such
other place as Payee may  designate to Maker in writing  from time to time,  the
principal sum of  Fifty-Eight  Million Four Hundred  Thousand and No/100 Dollars
($58,400,000.00),  together  with interest on so much thereof as is from time to
time  outstanding  and  unpaid,  from the date of the  advance of the  principal
evidenced hereby, at the Note Rate (as hereinafter  defined),  together with all
other  amounts  due  hereunder  or under the other Loan  Documents  (as  defined
herein),  in lawful  money of the United  States of America,  which shall at the
time of  payment be legal  tender in  payment of all debts and dues,  public and
private.  This promissory note shall be hereinafter  referred to as the "A Note"
and the loan evidenced by this A Note shall be hereinafter referred to as the "A
Loan".  Concurrently  with the execution of this A Note,  Maker has executed and
delivered to Caplease,  LP that certain promissory note dated the date hereof in
the original principal amount of Four Million Five Hundred Eighty-Four  Thousand
Six  Hundred  Twenty and  67/100  Dollars  ($4,584,620.67),  which note shall be
hereinafter  referred  to as the "B Note" and the loan  evidenced  by the B Note
shall be hereinafter referred to as the "B Loan". The indebtedness  evidenced by
the B Note and the obligations  created thereby are also secured by the Security
Instrument  (as  hereinafter  defined),   the  Assignment  (as  defined  in  the
hereinafter defined Loan Documents) and the other Loan Documents (as hereinafter
defined)  securing  the A Loan.  Payee has been engaged as  collateral  agent by
Payee and the holder of the B Note to administer  the  documents and  collateral
securing this A Note and the B Note, including, without limitation, the Security
Property (as hereinafter defined). Maker shall make separate monthly payments of
principal  and  interest  under the A Note and the B Note,  as  directed  by the
holder of this A Note and the  holder  of the B Note.  The A Loan and the B Loan
shall be hereinafter referred to collectively as the "Loan".

                        ARTICLE I. - TERMS AND CONDITIONS

      1.1.  Note Rate.  The term "NOTE RATE" as used in this Note shall mean (a)
from the date of this Note through but not  including  the  Optional  Prepayment
Date (as hereinafter  defined),  a rate per annum equal to five and thirty-three
one-hundredths  percent (5.33%) (the "INITIAL INTEREST RATE"),  and (b) from the
Optional  Prepayment  Date through and  including  the date this Note is paid in
full,  a rate per annum equal to the greater of (i) the  Initial  Interest  Rate
plus two and  one-half  percent  (2.5%) or (ii) the Treasury  Constant  Maturity
Yield Index (as hereinafter  defined) plus two and one-half  percent (2.5%) ((i)
or (ii),  as  applicable,  the "REVISED  INTEREST  RATE").  For purposes of this
Section 1.1, the term  "TREASURY  CONSTANT  MATURITY YIELD INDEX" shall mean the
average  yield for "This  Week" as  reported  by the  Federal  Reserve  Board in
Federal  Statistical  Release H.15 (519)  published  during the second full week
preceding  the  Optional  Prepayment  Date,  for  instruments  having a maturity
coterminous  with the  remaining  term of this  Note.  If  there is no  Treasury
Constant Maturity Yield Index for instruments having a maturity coterminous with
the remaining  term of this Note,  then the index shall be equal to the weighted
average yield to maturity of the Treasury  Constant  Maturity Yield Indices with
maturities next longer and shorter than such remaining average life to maturity,
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 Treasury Constant Maturity Yield Indices (rounded, if necessary, to the
nearest 1/100 of 1% with any figure of 1/200 of 1% or above rounded upward).  If
such Release is not available or no longer published, Payee may refer to another
recognized source of financial market information.

      1.2.  Computation of Interest.  Interest shall be computed hereunder based
on a 360-day year and based on the actual  number of days elapsed for any period
in which  interest  is  being  calculated  including,  without  limitation,  the
Interest Only Period  (hereinafter  defined),  as more particularly set forth on
Annex 1 attached  hereto and  incorporated  by this  reference.  Interest  shall
accrue from the date on which funds are advanced  hereunder  (regardless  of the
time of day) through and including the day on which funds are credited  pursuant
to Section 1.3 hereof.

      1.3.  Payment  of  Principal  and  Interest.  Payments  in  federal  funds
immediately  available  at the place  designated  for payment  received by Payee
prior to 2:00 p.m.  local time on a day on which  Payee is open for  business at
said place of payment shall be credited prior to close of business,  while other
payments,  at the  option  of  Payee,  may  not be  credited  until  immediately
available to Payee in federal funds at the place designated for payment prior to
2:00  p.m.  local  time on the  next day on  which  Payee is open for  business.
Interest only shall be payable in sixty (60) consecutive monthly installments in
the amount set forth on Annex 1,  beginning  on  November  11,  2005 (the "FIRST
PAYMENT  DATE"),  and  continuing  on the eleventh  (11th) day of each and every
calendar month thereafter  through and including October 11, 2010 (the "INTEREST
ONLY PERIOD") and, thereafter,  principal and interest shall be payable in sixty
(60)  consecutive  monthly  installments  in the  amount  set  forth on Annex 1,
beginning on November 11, 2010 and continuing on the eleventh (11th) day of each
and every calendar  month  thereafter  through and including  September 11, 2015
(each,  a "PAYMENT  DATE").  On October  11,  2015 (the  "MATURITY  DATE" or the
"OPTIONAL  PREPAYMENT DATE"),  the entire outstanding  principal balance hereof,
together with all accrued but unpaid interest thereon,  shall be due and payable
in full; provided,  however, that in the event that such amounts are not paid on
such date,  Payee may,  at Payee's  sole  option,  extend the  Maturity  Date to
October 11, 2025 (the "EXTENDED MATURITY DATE").

      Maker hereby  authorizes  Payee to use its automated loan payment  service
pursuant to which on each Payment Date Maker shall have its monthly  payments of
principal and interest  payments  together with any other sums then due to Payee
automatically  drawn by Payee or its  servicer in  accordance  with that certain
Auto-Draft  Request Form by and between  Maker and Payee  executed in connection
with the Loan.
<PAGE>

      In the event that, on any Payment Date,  there are  insufficient  funds in
such  account for sums due to Payee,  then Payee shall be  permitted to withdraw
sums from such account on any day thereafter until such time as all payments due
to Payee have been drawn from such  account;  provided,  however,  the foregoing
shall in no event limit or otherwise modify Maker's obligations to make payments
of principal  and interest and other sums due  hereunder or under any other Loan
Document.

      1.4.  Application  of  Payments.  So  long  as no  Event  of  Default  (as
hereinafter  defined)  exists  hereunder or under any other Loan Document,  each
such monthly  installment  shall be applied,  prior to the  Optional  Prepayment
Date, first, to any amounts  hereafter  advanced by Payee hereunder or under any
other  Loan  Document,  second,  to any late fees and other  amounts  payable to
Payee,  third,  to the  payment of accrued  interest  and last to  reduction  of
principal,  and from and after the  Optional  Prepayment  Date,  as  provided in
Section 2.2 of this Note.

      1.5.   Payment   of   "Short   Interest".   Maker   shall   pay  to  Payee
contemporaneously  with the  execution  hereof  interest  at the Note Rate for a
period from the date hereof through October 10, 2005.

      1.6. Prepayment; Defeasance.

            (a) This A Note may not be prepaid,  in whole or in part  (except as
otherwise  specifically  provided  herein),  at any time  prior to the  Optional
Prepayment  Determination  Date.  In the  event  that  Maker  wishes to have the
Security  Property  (as  hereinafter  defined)  released  from  the  lien of the
Security  Instrument (as hereinafter  defined) prior to the Optional  Prepayment
Determination  Date,  Maker's sole option shall be a Defeasance (as  hereinafter
defined)  upon  satisfaction  of the terms and  conditions  set forth in Section
1.6(d) hereof,  provided,  however,  that any Defeasance  under this A Note must
occur  simultaneously  with  the  Defeasance  of the B Note.  This A Note may be
prepaid in whole but not in part without  premium or penalty on any Payment Date
occurring on or after the Optional  Prepayment  Determination  Date provided (i)
written notice of such prepayment is received by Payee not more than ninety (90)
days and not less than  thirty  (30) days prior to the date of such  prepayment,
and (ii) such  prepayment  is  accompanied  by all  interest  accrued  hereunder
through  and  including  the  date of such  prepayment  and all  other  sums due
hereunder  or under  the  other  Loan  Documents.  If,  upon any such  permitted
prepayment  on any Payment Date  occurring  on or after the Optional  Prepayment
Determination  Date,  the  aforesaid  prior  written  notice has not been timely
received by Payee, there shall be due a prepayment fee equal to, an amount equal
to the lesser of (i) thirty (30) days' interest computed at the Note Rate on the
outstanding  principal  balance  of this A Note so  prepaid  and  (ii)  interest
computed at the Note Rate on the outstanding principal balance of this A Note so
prepaid  that would have been payable for the period from,  and  including,  the
date of prepayment  through the Maturity Date, or the Extended Maturity Date, as
the case may be, of this A Note as though such prepayment had not occurred.

            (b) If, prior to the fourth (4th)  anniversary  of the First Payment
Date (the "LOCKOUT EXPIRATION DATE"), the indebtedness  evidenced by this A Note
shall have been declared due and payable by Payee pursuant to Article III hereof
or the provisions of any other Loan Document due to a default by Maker, then, in
addition to the indebtedness  evidenced by this A Note being immediately due and
payable, there shall also then be immediately due and payable a sum equal to the
interest  which would have accrued on the principal  balance of this Note at the
Note Rate from the date of such  acceleration  to the Lockout  Expiration  Date,
together  with a  prepayment  fee in an amount  equal to the  Yield  Maintenance
Premium (as hereinafter defined) based on the entire indebtedness on the date of
such  acceleration.  If  such  acceleration  is  on  or  following  the  Lockout
Expiration  Date, the Yield  Maintenance  Premium shall also then be immediately
due and payable as though Maker were  prepaying the entire  indebtedness  on the
date of such  acceleration.  In  addition to the  amounts  described  in the two
preceding sentences,  in the event of any such acceleration or tender of payment
of  such  indebtedness  occurs  or is  made  on or  prior  to  the  first  (1st)
anniversary of the date of this Note,  there shall also then be immediately  due
and payable an additional  prepayment fee of three percent (3%) of the principal
balance  of this A Note.  The term  "YIELD  MAINTENANCE  PREMIUM"  shall mean an
amount equal to the greater of (A) two percent  (2.0%) of the  principal  amount
being  prepaid,  and (B) the present value of a series of payments each equal to
the Payment  Differential  (as hereinafter  defined) and payable on each Payment
Date over the remaining  original term of this A Note and on the Maturity  Date,
discounted at the Reinvestment Yield (as hereinafter  defined) for the number of
months remaining as of the date of such prepayment to each such Payment Date and
the Maturity Date. The term "PAYMENT DIFFERENTIAL" shall mean an amount equal to
(i) the Note Rate less the Reinvestment  Yield,  divided by (ii) twelve (12) and
multiplied  by (iii) the  principal  sum  outstanding  under  this A Note  after
application of the constant monthly payment due under this A Note on the date of
such  prepayment,  provided that the Payment  Differential  shall in no event be
less than zero. The term "REINVESTMENT  YIELD" shall mean an amount equal to the
lesser  of (i) the  yield on the U.S.  Treasury  issue  (primary  issue)  with a
maturity  date  closest  to the  Maturity  Date,  or (ii) the  yield on the U.S.
Treasury issue (primary  issue) with a term equal to the remaining  average life
of the  indebtedness  evidenced by this A Note, with each such yield being based
on the bid price for such issue as published  in the Wall Street  Journal on the
date that is  fourteen  (14) days prior to the date of such  prepayment  (or, if
such bid price is not published on that date,  the next  preceding date on which
such bid price is so published)  and converted to a monthly  compounded  nominal
yield.  In the event  that any  prepayment  fee is due  hereunder,  Payee  shall
deliver to Maker a statement  setting forth the amount and  determination of the
prepayment  fee,  and,  provided that Payee shall have in good faith applied the
formula  described  above,  Maker  shall  not have the  right to  challenge  the
calculation or the method of calculation  set forth in any such statement in the
absence of manifest  error,  which  calculation  may be made by Payee on any day
during the fifteen (15) day period preceding the date of such prepayment.  Payee
shall not be  obligated  or required  to have  actually  reinvested  the prepaid
principal  balance at the  Reinvestment  Yield or  otherwise  as a condition  to
receiving the prepayment fee.

            (c)  Partial  or  full  prepayments  of  this  A Note  shall  not be
permitted,  except  for  partial  or full  prepayments  resulting  from  Payee's
election to apply insurance or  condemnation  proceeds to reduce the outstanding
principal  balance of this A Note as provided  in the  Security  Instrument,  in
which event no  prepayment  fee or premium  shall be due unless,  at the time of
either Payee's  receipt of such proceeds or the  application of such proceeds to
the  outstanding  principal  balance of this A Note, an Event of Default,  or an
event which,  with notice or the passage of time, or both,  would  constitute an
Event of  Default,  shall have  occurred,  which  default or Event of Default is
unrelated  to the  applicable  casualty  or  condemnation,  in which  event  the
applicable  prepayment  fee or premium  shall be due and payable  based upon the
amount of the  prepayment.  No notice of prepayment  shall be required under the
circumstances  specified in the preceding  sentence.  No principal amount repaid
may be reborrowed. Any such partial prepayments of principal shall be applied to
the unpaid principal  balance  evidenced  hereby but such application  shall not
reduce the amount of the fixed monthly installments required to be paid pursuant
to Section 1.3 above.  Except as otherwise  expressly  provided in this Section,
the  prepayment  fees  provided  above shall be due, to the extent  permitted by
applicable law, under any and all circumstances where all or any portion of this
A Note is paid prior to the Maturity Date,  whether such prepayment is voluntary
or involuntary,  including,  without limitation, if such prepayment results from
Payee's  exercise of its rights upon  Maker's  default and  acceleration  of the
Maturity Date of this A Note  (irrespective of whether  foreclosure  proceedings
have been  commenced),  and shall be in addition to any other sums due hereunder
or under any of the other Loan  Documents.  No tender of a prepayment  of this A
Note with  respect to which a prepayment  fee is due shall be  effective  unless
such prepayment is accompanied by the applicable prepayment fee.

                                       2
<PAGE>

            Any  voluntary  prepayment or defeasance of the A Loan or the B Loan
must occur concurrently with the voluntary prepayment or defeasance of the other
Loan.  Unless  there  is a  continuing  Event  of  Default,  there  shall  be no
prepayment penalty or premium for prepayment resulting from application of title
insurance, casualty insurance or condemnation proceeds or awards.

            (d) (i) On any Payment  Date on or after the earlier to occur of (x)
the  Lockout  Expiration  Date,  and  (y)  the  later  to  occur  of (A) the day
immediately  following the date which is two (2) years after the "startup  day,"
within the meaning of Section 860G(a) (9) of the Internal  Revenue Code of 1986,
as amended from time to time or any successor  statute (the "CODE"),  of a "real
estate mortgage  investment  conduit," within the meaning of Section 860D of the
Code (a  "REMIC  TRUST"),  that  holds  this A Note and (B) the day  immediately
following  the date which is two (2) years after the "startup  day",  within the
meaning of Section 860G(a)(9) of the Code, of a "real estate mortgage investment
conduit," within the meaning of Section 860D of the Code, that holds the B Note,
and  provided no Event of Default  has  occurred  hereunder  or under any of the
other Loan Documents,  at Maker's  option,  Payee shall cause the release of the
Security  Property from the lien of the Security  Instrument  and the other Loan
Documents (a "DEFEASANCE") upon the satisfaction of the following conditions:

                  (A) Maker  shall give not more than  ninety (90) days' or less
            than sixty (60) days' prior written  notice to Payee  specifying the
            date  Maker  intends  for  the  Defeasance  to be  consummated  (the
            "RELEASE DATE"), which date shall be a Payment Date.

                  (B) All  accrued  and unpaid  interest  and all other sums due
            under  this A Note and  under  the other  Loan  Documents  up to and
            including  the Release Date shall be paid in full on or prior to the
            Release Date.

                  (C) Maker  shall  deliver to Payee on or prior to the  Release
            Date:

                  (1)   a sum of  money  in  immediately  available  funds  (the
                        "DEFEASANCE DEPOSIT") equal to the outstanding principal
                        balance  of this A Note plus an  amount,  if any,  which
                        together with the outstanding  principal balance of this
                        A Note, shall be sufficient to enable Payee to purchase,
                        through  means  and  sources  customarily  employed  and
                        available  to  Payee,  for the  account  of  Maker,  (x)
                        direct,  non-callable,  fixed  rate  obligations  of the
                        United States of America or (y) non-callable, fixed rate
                        obligations,  other than U.S. Treasury Obligations, that
                        are  "government   securities"  within  the  meaning  of
                        Section 2(a)(16) of the Investment  Company Act of 1940,
                        as amended,  that  provide for  payments  prior,  but as
                        close as possible,  to all  successive  monthly  Payment
                        Dates  occurring  after  the  Release  Date  and  to the
                        Maturity Date,  with each such payment being equal to or
                        greater than the amount of the corresponding installment
                        of principal  and/or interest  required to be paid under
                        this A Note (including,  but not limited to, all amounts
                        due on the  Maturity  Date) for the  balance of the term
                        hereof  (the  "DEFEASANCE  COLLATERAL"),  each of  which
                        shall be duly endorsed by the holder thereof as directed
                        by Payee  or  accompanied  by a  written  instrument  of
                        transfer in form and substance  satisfactory to Payee in
                        its sole discretion (including, without limitation, such
                        instruments   as  may  be  required  by  the  depository
                        institution   holding  such  securities  or  the  issuer
                        thereof,  as the case may be, to  effectuate  book-entry
                        transfers and pledges through the book-entry  facilities
                        of such  institution)  in  order  to  perfect  upon  the
                        delivery  of  the  Defeasance   Security  Agreement  (as
                        hereinafter   defined)  the  first   priority   security
                        interest in the Defeasance  Collateral in favor of Payee
                        in conformity with all applicable state and federal laws
                        governing granting of such security interests.

                  (2)   a pledge and security  agreement,  in form and substance
                        satisfactory   to  Payee,   creating  a  first  priority
                        security  interest  in favor of Payee in the  Defeasance
                        Collateral (the "DEFEASANCE SECURITY AGREEMENT"),;

                  (3)   a  certificate  of  Maker  certifying  that  all  of the
                        requirements set forth in this subsection 1.6(d)(i) have
                        been satisfied;

                  (4)   one or more  opinions  of counsel  for Maker in form and
                        substance  and  delivered  by  counsel  which  would  be
                        satisfactory to Payee stating,  among other things, that
                        (i)  Payee  has  a  perfected  first  priority  security
                        interest  in the  Defeasance  Collateral  and  that  the
                        Defeasance  Security  Agreement is  enforceable  against
                        Maker in accordance with its terms, (ii) in the event of
                        a  bankruptcy  proceeding  or  similar  occurrence  with
                        respect to Maker, none of the Defeasance  Collateral nor
                        any proceeds  thereof will be property of Maker's estate
                        under  Section  541  of the  U.S.  Bankruptcy  Code,  as
                        amended,  or  any  similar  statute  and  the  grant  of
                        security  interest therein to Payee shall not constitute
                        an avoidable  preference  under  Section 547 of the U.S.
                        Bankruptcy  Code, as amended,  or applicable  state law,
                        (iii) 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
                        Trust that then  holds  this A Note to fail to  maintain
                        its status as a REMIC Trust and (iv) the defeasance will
                        not cause any REMIC Trust to be an "investment  company"
                        under the Investment Company Act of 1940;

                                       3
<PAGE>

                  (5)   evidence in writing from any  applicable  Rating  Agency
                        (as defined in the  Security  Instrument)  to the effect
                        that the  Defeasance  will not result in a  downgrading,
                        withdrawal or qualification of the respective ratings in
                        effect  immediately  prior  to such  Defeasance  for any
                        Securities (as hereinafter defined) issued in connection
                        with the  securitization  which  are  then  outstanding;
                        provided,  however,  no  evidence  from a Rating  Agency
                        shall  be  required  if this A Note  does  not  meet the
                        then-current review requirements of such Rating Agency.

                  (6)   a certificate  in form and scope  acceptable to Payee in
                        its  sole  discretion  from  an  acceptable  independent
                        accountant  certifying  that the  Defeasance  Collateral
                        will generate amounts sufficient to make all payments of
                        principal and interest due under this A Note  (including
                        the  scheduled  outstanding  principal  balance of the A
                        Loan due on the Maturity Date);

                  (7)   Maker  and  any   guarantor  or  indemnitor  of  Maker's
                        obligations under the Loan Documents for which Maker has
                        personal  liability  executes and delivers to Payee such
                        documents  and  agreements  as  Payee  shall  reasonably
                        require to evidence and effectuate the  ratification  of
                        such  personal  liability  and  guaranty  or  indemnity,
                        respectively;

                  (8)   such other  certificates,  documents or  instruments  as
                        Payee may reasonably require;

                  (9)   payment  of  all  fees,  costs,   expenses  and  charges
                        incurred by Payee in connection  with the  Defeasance of
                        the Security Property and the purchase of the Defeasance
                        Collateral,    including,    without   limitation,   all
                        reasonable legal fees and costs and expenses incurred by
                        Payee or its agents in  connection  with  release of the
                        Security  Property,  review of the  proposed  Defeasance
                        Collateral and  preparation  of the Defeasance  Security
                        Agreement  and  related   documentation,   any  revenue,
                        documentary,  stamp,  intangible or other taxes, charges
                        or fees due in  connection  with transfer of the A Note,
                        assumption of the A Note, or  substitution of collateral
                        for the Security Property shall be paid on or before the
                        Release Date. Without limiting Maker's  obligations with
                        respect  thereto,  Payee shall be entitled to deduct all
                        such  fees,   costs,   expenses  and  charges  from  the
                        Defeasance  Deposit to the extent of any  portion of the
                        Defeasance Deposit which exceeds the amount necessary to
                        purchase the Defeasance Collateral; and

                  (10)  the  Defeasance  of  the A  Loan  must  occur  with  the
                        simultaneous  Defeasance of the B Loan subject to and in
                        accordance with the terms of each such Loan.

                  (D) In connection  with the Defeasance  Deposit,  Maker hereby
            authorizes and directs Payee using the means and sources customarily
            employed  and  available to Payee to use the  Defeasance  Deposit to
            purchase  for  the  account  of  Maker  the  Defeasance  Collateral.
            Furthermore,  the Defeasance  Collateral shall be arranged such that
            payments  received  from such  Defeasance  Collateral  shall be paid
            directly  to Payee to be applied on account of the  indebtedness  of
            this A Note.  Any part of the  Defeasance  Deposit  in excess of the
            amount  necessary to purchase the  Defeasance  Collateral and to pay
            the other and  related  costs Maker is  obligated  to pay under this
            Section 1.6 shall be refunded to Maker.

            (ii) Upon compliance with the requirements of subsection  1.6(d)(i),
      the  Security  Property  shall be released  from the lien of the  Security
      Instrument and the other Loan  Documents,  and the  Defeasance  Collateral
      shall  constitute  collateral which shall secure this A Note and all other
      obligations  under the Loan  Documents.  Payee will,  at Maker's  expense,
      execute  and  deliver  any  agreements  reasonably  requested  by Maker to
      release the lien of the Security Instrument from the Security Property.

            (iii) Upon the release of the Security  Property in accordance  with
      this Section  1.6(d),  Maker shall assign all its  obligations  and rights
      under this A Note, together with the pledged Defeasance  Collateral,  to a
      newly created  successor  entity which  complies with the terms of Section
      2.29 of the Security Instrument  designated by Maker and approved by Payee
      in its sole discretion.  Such successor entity shall execute an assumption
      agreement  in  form  and  substance  satisfactory  to  Payee  in its  sole
      discretion  pursuant to which it shall assume  Maker's  obligations  under
      this A Note and the Defeasance Security  Agreement.  As conditions to such
      assignment and assumption,  Maker shall (x) deliver to Payee an opinion of
      counsel  in form  and  substance  satisfactory  to a  prudent  lender  and
      delivered by counsel satisfactory to a prudent lender stating, among other
      things,  that such assumption  agreement is enforceable  against Maker and
      such  successor  entity in accordance  with its terms and that this A Note
      and the  Defeasance  Security  Agreement  as so assumed,  are  enforceable
      against such successor entity in accordance with their  respective  terms,
      and (y) pay all costs and expenses  (including,  but not limited to, legal
      fees) incurred by Payee or its agents in connection  with such  assignment
      and assumption (including,  without limitation, the review of the proposed
      transferee and the  preparation  of the  assumption  agreement and related
      documentation).  Upon such  assumption,  Maker  shall be  relieved  of its
      obligations  hereunder,  under  the other  Loan  Documents  other  than as
      specified  in  Section  1.6(d)(i)(C)(7)  above and  under  the  Defeasance
      Security Agreement (or other Defeasance document).

      1.7.  Security.  The  indebtedness  evidenced  by  this  A  Note  and  the
obligations  created  hereby are secured by,  among other  things,  that certain
Mortgage, Security Agreement and Fixture Filing (the "SECURITY INSTRUMENT") from
Maker for the  benefit  of  Payee,  dated of even date  herewith,  covering  the
Security Property.  The Security  Instrument,  together with this A Note and all
other  documents to or of which Payee is a party or beneficiary now or hereafter
evidencing,  securing,  guarantying,  modifying  or  otherwise  relating  to the
indebtedness  evidenced hereby, are herein referred to collectively as the "LOAN
DOCUMENTS".  All  of  the  terms  and  provisions  of  the  Loan  Documents  are
incorporated herein by reference. Some of the Loan Documents are to be filed for
record on or about the date hereof in the appropriate public records.

                                       4
<PAGE>

         ARTICLE II. - OPTIONAL PREPAYMENT DATE/TRIGGER EVENT PROVISIONS

      2.1. Optional  Prepayment Date;  Trigger Event. The following  subsections
shall  apply  from  and  after  August  11,  2015  (the   "OPTIONAL   PREPAYMENT
DETERMINATION  DATE")  and,  to the  extent set forth in that  certain  Lock-Box
Account and Security  Agreement of even date  herewith  between  Maker and Payee
(the "LOCK-BOX AGREEMENT"),  after the occurrence of a Trigger Event (as defined
in the Lock-Box Agreement):

            (a)  Except  as  hereinafter  set  forth in  subsection  (e) of this
Section 2.1,  Maker shall be obligated to pay, and Payee shall  collect from the
Lock-Box  Account (as defined in the Lock-Box  Agreement) to the extent of funds
on  deposit  in such  account,  on each  Payment  Date  following  the  Optional
Prepayment  Determination  Date the  following  payments in the listed  order of
priority:

            (i) First,  the  payment  of the amount set forth in Section  1.3 of
            this A Note  (the  "MONTHLY  DEBT  SERVICE  PAYMENT  AMOUNT")  to be
            applied  first to the  payment of  interest  computed at the Initial
            Interest  Rate with the  remainder  applied to the  reduction of the
            outstanding principal balance of this A Note;

            (ii)  Second,  payments to the  Reserves (as defined in the Security
            Instrument)  in  accordance  with the  terms and  conditions  of the
            Security Instrument;

            (iii)  Third,  payments  to the  deposit  bank  selected by Payee to
            maintain the Lock-Box Account (the "DEPOSIT BANK") for any customary
            fees charged in accordance with the Lock-Box Agreement;

            (iv)  Fourth,  payments for monthly  Cash  Expenses (as  hereinafter
            defined),  less  management  fees  payable to  affiliates  of Maker,
            pursuant to the terms and conditions of the related  Approved Annual
            Budget (as hereinafter defined);

            (v)  Fifth,  payment  for  Extraordinary  Expenses  (as  hereinafter
            defined) approved by Payee, if any;

            (vi)  Sixth,  payments  of any  other  amounts  due  under  the Loan
            Documents; and

            (vii)  Lastly,  any excess  amounts  shall  remain on deposit in the
            Lock-Box Account.

            (b)  For  the  calendar  year  in  which  the  Optional   Prepayment
Determination  Date or any  Trigger  Event  occurs  and for each  calendar  year
thereafter,  Maker shall submit to Payee for Payee's written  approval an annual
budget  (an  "Annual  Budget")  not  later  than  (i)  the  Optional  Prepayment
Determination Date or the first Payment Date after the date on which any Trigger
Event   occurs  for  the  calendar   year  in  which  the  Optional   Prepayment
Determination Date or any Trigger Event occurs and (ii) sixty (60) days prior to
the commencement of each calendar year thereafter, in form satisfactory to Payee
setting forth in reasonable detail budgeted monthly operating income and monthly
operating  capital and other  expenses  for the Security  Property.  Each Annual
Budget shall contain, among other things,  limitations on management fees, third
party service fees and other expenses as Maker may reasonably  determine.  Payee
shall have the right to approve  such Annual  Budget and in the event that Payee
objects to the proposed  Annual  Budget  submitted by Maker,  Payee shall advise
Maker of such  objections  within  fifteen (15) days after receipt  thereof (and
deliver to Maker a reasonably detailed description of such objections) and Maker
shall,  within  three (3) days after  receipt of notice of any such  objections,
revise such Annual  Budget and  resubmit  the same to Payee.  Payee shall advise
Maker of any objections to such revised Annual Budget within ten (10) days after
receipt thereof (and deliver to Maker a reasonably detailed  description of such
objections)  and Maker  shall  revise the same in  accordance  with the  process
described in this  subsection  until Payee approves an Annual Budget,  provided,
however,  that if Payee shall not advise Maker of its objections to any proposed
Annual Budget within the  applicable  time period set forth in this  subsection,
then such proposed  Annual Budget shall be deemed  approved by Payee.  Each such
Annual  Budget   approved  by  Payee  in  accordance  with  terms  hereof  shall
hereinafter be referred to as an "Approved  Annual Budget." Until such time that
Payee  approves a proposed  Annual  Budget,  the most recently  Approved  Annual
Budget shall apply; provided, that such Approved Annual Budget shall be adjusted
to reflect  actual  increases  in real  estate  taxes,  insurance  premiums  and
utilities expenses.

            (c) In the event that Maker  must incur an  extraordinary  operating
expense or  capital  expense  not set forth in the  Approved  Annual  Budget (as
defined in the Security  Instrument)  or allotted for in any Reserve  (each,  an
"EXTRAORDINARY   EXPENSE"),  then  Maker  shall  promptly  deliver  to  Payee  a
reasonably  detailed  explanation  of such  proposed  Extraordinary  Expense for
Payee's approval.

            (d) For the purposes of this A Note, "CASH EXPENSES" shall mean, for
any period,  the operating  expenses for the operation  and  maintenance  of the
Security  Property as set forth in an Approved  Annual Budget to the extent that
such  expenses are actually  incurred by Maker  excluding  payments into the any
Reserve, or which shall be paid for out of, any Reserve.

            (e) Notwithstanding the other provisions of this Section 2.1, in the
event that, prior to the Optional Prepayment  Determination Date, Maker delivers
to Payee either (i) a written commitment (the  "COMMITMENT")for  the refinancing
of the loan evidenced by this A Note from a Qualified  Institutional  Lender (as
hereinafter  defined),  which  reasonably  provides for the consummation of such
refinance  prior to the Optional  Prepayment Date or (ii) other evidence in form
and substance satisfactory to Payee in its sole determination of Maker's ability
to refinance the loan evidenced by this A Note prior to the Optional  Prepayment
Date,  then,  solely in either such  event,  and  provided no Trigger  Event has
occurred,  the terms of Section 2.1(a), (b), (c) and (d) of this A Note shall be
inoperative;  provided,  however, that upon (x) the failure of such refinance to
be  consummated  in  accordance  with the terms of the  Commitment or such other
evidence, as applicable, (y) the termination of the Commitment for any reason or
(z) any adverse change in circumstances  with respect to Maker or any principals
of Maker, the Security Property, the proposed lender or otherwise, as determined
by Payee in its sole  determination,  which,  in  Payee's  reasonable  judgment,
significantly decreases the likelihood of such refinance being consummated prior
to the Optional  Prepayment Date, the terms of Section 2.1(a),  (b), (c) and (d)
of this A Note shall  immediately  become operative and Maker shall  immediately
comply with any of the terms  thereof  which,  except for the  operation of this
subsection  (e),  Maker  would   theretofore  have  been  obligated  to  comply.
"QUALIFIED  INSTITUTIONAL  LENDER" shall mean a financial  institution  or other
lender with a long term credit rating which is not less than  investment  grade.
The  determination  of whether  the  conditions  set forth in clause (i) or (ii)
above,  shall be made and notice of such  determination  shall be  delivered  to
Maker,  within ten (10) business days following Payee's receipt of the items set
forth in such clauses.

                                       5
<PAGE>

      2.2.  Failure to Pay Prior to Optional  Prepayment Date. In the event that
Maker does not prepay the entire principal  balance of this A Note and any other
amounts  outstanding  under this A Note or any of the other Loan Documents on or
prior to the Optional Prepayment Date, the provisions of Section 2.1(b), (c) and
(d) as set forth above shall remain in full force and effect,  and the following
subsections also shall apply:

            (a) From and after the  Optional  Prepayment  Date,  interest  shall
accrue on the unpaid principal  balance from time to time outstanding under this
A Note at the Revised  Interest Rate.  Interest  accrued at the Revised Interest
Rate and not paid  pursuant to this  Section 2.2 shall be deferred  and added to
the  principal  balance of this A Note and shall earn  interest  at the  Revised
Interest Rate to the extent  permitted by applicable law (such accrued  interest
is hereinafter referred to as "ACCRUED  INTEREST").  All of the unpaid principal
balance of this A Note,  including,  without  limitation,  any Accrued Interest,
shall be due and payable on the Extended Maturity Date.

            (b) Maker shall be obligated  to pay,  and Payee shall  collect from
the Lock-Box  Account to the extent of funds on deposit in such account,  on the
Optional  Prepayment  Date and on the eleventh (11th) day of each calendar month
thereafter to and including  the Extended  Maturity Date the following  payments
from the funds on deposit in the Lock-Box Account received on or before such day
in the listed order of priority:

            (i) First, the payment of the Monthly Debt Service Payment Amount to
            be applied first to the payment of interest  computed at the Initial
            Interest  Rate with the  remainder  applied to the  reduction of the
            outstanding principal balance of this A Note;

            (ii) Second,  payments to the Reserves in accordance  with the terms
            and conditions of the Security Instrument;

            (iii) Third, payments to the Deposit Bank any customary fees charged
            in accordance with the Lock-Box Agreement;

            (iv) Fourth,  payments for monthly Cash  Expenses,  less  management
            fees  payable  to  affiliates  of Maker,  pursuant  to the terms and
            conditions of the related Approved Annual Budget;

            (v) Fifth, payment for Extraordinary  Expenses approved by Payee, if
            any;

            (vi)  Sixth,  payments  to Payee of the balance of the funds then on
            deposit  in the  Lock-Box  Account  to be  applied  to (x) any other
            amounts due under the Loan Documents,  (y) Accrued  Interest and (z)
            the reduction of the  outstanding  principal  balance of this A Note
            until such principal balance is paid in full in whatever  proportion
            and priority as Payee may determine.

            (c)  Nothing in this  Article II shall  limit,  reduce or  otherwise
affect Maker's  obligations to make payments of the Monthly Debt Service Payment
Amount, payments to the Reserves and payments of other amounts due hereunder and
under the other Loan Documents,  whether or not Rents and Profits (as defined in
the Security Instrument) are available to make such payments.

      2.3.  Trigger  Event.  In the event that any  Trigger  Event  occurs,  the
provisions of Section  2.1(b),  (c) and (d) as set forth above and the following
subsections shall apply:

      (a) Maker shall be  obligated  to pay,  and Payee shall  collect  from the
Lock-Box  Account  to the extent of funds on  deposit  in such  account,  on the
eleventh  (11th) day of each calendar  month  thereafter  until all amounts owed
under the Loan Documents are paid in full, the following payments from the funds
on deposit in the Lock-Box  Account received on or before such day in the listed
order of priority:

            (i) First, the payment of the Monthly Debt Service Payment Amount to
      be  applied  first to the  payment of  interest  computed  at the  Initial
      Interest  Rate  with  the  remainder  applied  to  the  reduction  of  the
      outstanding principal balance of this A Note;

            (ii) Second,  payments to the Reserves in accordance  with the terms
      and conditions of the Security Instrument;

            (iii) Third, payments to the Deposit Bank any customary fees charged
      in accordance with the Lock-Box Agreement;

            (iv) Fourth,  payments for monthly Cash  Expenses,  less  management
      fees payable to affiliates of Maker,  pursuant to the terms and conditions
      of the related Approved Annual Budget;

            (v) Fifth, payment for Extraordinary  Expenses approved by Payee, if
      any.

            Any balance in the Lock-Box  Account  after payment of the foregoing
      shall be retained by Payee as additional collateral for the loan evidenced
      by this  Note  until  released  in  accordance  with  Section  3(b) of the
      Lock-Box Agreement.

                                       6
<PAGE>

      (b) Nothing in this  Section 2.3 shall limit,  reduce or otherwise  affect
Maker's obligations to make payments of the Monthly Debt Service Payment Amount,
payments to the Reserves and payments of other  amounts due  hereunder and under
the other  Loan  Documents,  whether or not Rents (as  defined  in the  Security
Instrument) are available to make such payments.

                             ARTICLE III. - DEFAULT

      3.1. Events of Default;  Cross Default.  (a) It is hereby expressly agreed
that  should any  default  occur in the  payment of  principal  or  interest  as
stipulated  above and such  payment is not made on the date such payment is due,
or should any other default not be cured within any  applicable  grace or notice
period occur under any other Loan Document,  then an event of default (an "EVENT
OF DEFAULT") shall exist hereunder, and in such event the indebtedness evidenced
hereby, including all sums advanced or accrued hereunder or under any other Loan
Document, and all unpaid interest accrued thereon, shall, at the option of Payee
and without notice to Maker, at once become due and payable and may be collected
forthwith,  whether  or not  there  has  been a prior  demand  for  payment  and
regardless of the stipulated date of maturity.

            (b) A default  or Event of Default  under any of the Loan  Documents
delivered in connection with either the A Loan or the B Loan (as the term "Event
of Default" is defined in the Security  Instrument) shall constitute an Event of
Default under the other Loan Documents  delivered in connection  with the A Loan
and/or the B Loan.

      3.2. Late Charges.  In the event that any payment is not received by Payee
on the date when due (subject to any applicable grace period), then, in addition
to any default interest payments due hereunder,  Maker shall also pay to Payee a
late  charge  in an  amount  equal to five  percent  (5%) of the  amount of such
overdue payment.

      3.3.  Default  Interest  Rate.  So long as any  Event  of  Default  exists
hereunder,  regardless of whether or not there has been an  acceleration  of the
indebtedness   evidenced  hereby,  and  at  all  times  after  maturity  of  the
indebtedness  evidenced hereby (whether by acceleration or otherwise),  interest
shall accrue on the outstanding  principal balance of this A Note, from the date
due until the date  credited,  at a rate per annum equal to four percent (4%) in
excess of the Note  Rate,  or, if such  increased  rate of  interest  may not be
collected under  applicable  law, then at the maximum rate of interest,  if any,
which may be collected from Maker under  applicable  law (the "DEFAULT  INTEREST
RATE"), and such default interest shall be immediately due and payable.

      3.4. Maker's  Agreements.  Maker  acknowledges  that it would be extremely
difficult or  impracticable to determine  Payee's actual damages  resulting from
any late  payment or default,  and such late  charges and default  interest  are
reasonable  estimates  of those  damages and do not  constitute  a penalty.  The
remedies  of  Payee  in this A Note or in the  Loan  Documents,  or at law or in
equity,  shall  be  cumulative  and  concurrent,  and  may  be  pursued  singly,
successively or together, in Payee's discretion.

      3.5.  Maker to Pay  Costs.  In the  event  that  this A Note,  or any part
hereof, is collected by or through an  attorney-at-law,  Maker agrees to pay all
costs of collection, including, but not limited to, reasonable attorneys' fees.

      3.6.  Exculpation.  Notwithstanding  anything  in this A Note or the  Loan
Documents to the contrary,  but subject to the  qualifications  hereinbelow  set
forth, Payee agrees that:

            (a) Maker shall be liable upon the indebtedness evidenced hereby and
for the other  obligations  arising under the Loan  Documents to the full extent
(but only to the extent) of the security therefor, the same being all properties
(whether  real or  personal),  rights,  estates and interests now or at any time
hereafter  securing the payment of this A Note and/or the other  obligations  of
Maker under the Loan Documents (collectively, the "SECURITY PROPERTY");

            (b) if a default  occurs in the timely and proper  payment of all or
any part of such  indebtedness  evidenced  hereby or in the  timely  and  proper
performance  of the other  obligations  of Maker under the Loan  Documents,  any
judicial  proceedings  brought by Payee  against  Maker  shall be limited to the
preservation,  enforcement  and  foreclosure,  or any  thereof,  of  the  liens,
security titles, estates,  assignments,  rights and security interests now or at
any  time  hereafter  securing  the  payment  of this A Note  and/or  the  other
obligations of Maker under the Loan Documents,  and no attachment,  execution or
other  writ of  process  shall be  sought,  issued  or levied  upon any  assets,
properties  or funds of Maker  other than the  Security  Property,  except  with
respect to the liability described below in this section; and

            (c) in the event of a foreclosure  of such liens,  security  titles,
estates, assignments,  rights or security interests securing the payment of this
A Note  and/or  the other  obligations  of Maker  under the Loan  Documents,  no
judgment for any  deficiency  upon the  indebtedness  evidenced  hereby shall be
sought or obtained by Payee against Maker,  except with respect to the liability
described below in this section;  provided,  however, that,  notwithstanding the
foregoing provisions of this section, Maker shall be fully and personally liable
and subject to legal action (i) for proceeds paid under any  insurance  policies
(or paid as a result of any other claim or cause of action against any person or
entity) by reason of damage,  loss or  destruction  to all or any portion of the
Security Property,  to the full extent of such proceeds not previously delivered
to Payee,  but which,  under the terms of the Loan  Documents,  should have been
delivered to Payee,  (ii) for proceeds or awards resulting from the condemnation
or other  taking in lieu of  condemnation  of all or any portion of the Security
Property, to the full extent of such proceeds or awards not previously delivered
to Payee,  but which,  under the terms of the Loan  Documents,  should have been
delivered to Payee,  (iii) for all tenant security  deposits or other refundable
deposits  paid to or held by Maker or any other  person or entity in  connection
with leases of all or any portion of the Security Property which are not applied
in accordance with the terms of the applicable  lease or other  agreement,  (iv)
for rent and other  payments  received  from tenants  under leases of all or any
portion of the Security  Property  paid more than one (1) month in advance,  (v)
for rents,  issues,  profits and  revenues of all or any portion of the Security
Property received or applicable to a period after the occurrence of any Event of
Default or any event which,  with notice or the passage of time, or both,  would
constitute an Event of Default,  hereunder or under the Loan Documents which are
not  either  applied  to the  ordinary  and  necessary  expenses  of owning  and
operating the Security  Property or paid to Payee,  (vi) for waste  committed on
the  Security  Property,  damage  to the  Security  Property  as a result of the
intentional  misconduct or gross  negligence of Maker or any of its  principals,
officers,  general partners or members,  any guarantor,  any indemnitor,  or any
agent or  employee of any such  person,  or any removal of all or any portion of
the Security  Property in violation of the terms of the Loan  Documents,  to the
full  extent of the  losses or  damages  incurred  by Payee on  account  of such
occurrence,  (vii) for failure to pay any valid taxes,  assessments,  mechanic's
liens,  materialmen's  liens or other  liens  which  could  create  liens on any
portion of the Security Property which would be superior to the lien or security
title of the Security Instrument or the other Loan Documents, to the full extent
of the amount claimed by any such lien claimant except, with respect to any such
taxes or  assessments,  to the extent that funds have been  deposited with Payee
pursuant to the terms of the Security Instrument specifically for the applicable
taxes or assessments and not applied by Payee to pay such taxes and assessments,
(viii) for all  obligations  and  indemnities  of Maker under the Loan Documents
relating to  Hazardous  Substances  (as defined in the Security  Instrument)  or
radon or compliance with  environmental  laws and regulations to the full extent
of any losses or damages  (including those resulting from diminution in value of
any Security  Property)  incurred by Payee as a result of the  existence of such
hazardous or toxic  substances or radon or failure to comply with  environmental
laws or regulations,  and (ix) for fraud, material  misrepresentation or failure
to disclose a material fact by Maker or any of its principals, officers, general
partners or members,  any guarantor,  any  indemnitor or any agent,  employee or
other  person   authorized   or  apparently   authorized  to  make   statements,
representations  or  disclosures  on behalf of Maker,  any  principal,  officer,
general partner or member of Maker, any guarantor or any indemnitor, to the full
extent  of any  losses,  damages  and  expenses  of  Payee on  account  thereof.
References  herein to particular  sections of the Loan Documents shall be deemed
references  to such  sections  as  affected  by  other  provisions  of the  Loan
Documents  relating  thereto.  Nothing  contained in this  section  shall (1) be
deemed to be a release or  impairment  of the  indebtedness  evidenced by this A
Note or the other  obligations  of Maker under the Loan Documents or the lien of
the Loan  Documents  upon the  Security  Property,  or (2)  preclude  Payee from
foreclosing  the Loan  Documents in case of any default or from enforcing any of
the other  rights of Payee  except  as stated in this  section,  or (3) limit or
impair in any way  whatsoever  (A) the  Indemnity  and Guaranty  Agreement  (the
"INDEMNITY  AGREEMENT")  or  (B)  the  Environmental  Indemnity  Agreement  (the
"ENVIRONMENTAL  INDEMNITY  AGREEMENT"),  each of even date herewith executed and
delivered  in  connection  with  the  indebtedness  evidenced  by this A Note or
release, relieve, reduce, waive or impair in any way whatsoever,  any obligation
of  any  party  to  the  Indemnity  Agreement  or  the  Environmental  Indemnity
Agreement.

                                       7
<PAGE>

      Notwithstanding  the  foregoing,  the  agreement  of Payee  not to  pursue
recourse  liability  as set forth in this Section 3.6 SHALL BECOME NULL AND VOID
and shall be of no further  force and effect in the event of a default by Maker,
Indemnitor  (as defined in the  Security  Instrument)  or any  general  partner,
manager or managing member of Maker which is a Single-Purpose Entity (as defined
in the  Security  Instrument)  (if  any) of any of the  covenants  set  forth in
Section 2.9 or Section 2.29 of the Security Instrument (excluding,  however, the
covenants set forth in Sections 2.29 (n) and (t)).

      Notwithstanding  anything  to the  contrary in this A Note,  the  Security
Instrument or any of the other Loan Documents, Payee shall not be deemed to have
waived any right which Payee may have under Section 506(a),  506(b),  1111(b) or
any other  provisions of the U.S.  Bankruptcy  Code to file a claim for the full
amount  of  the  indebtedness  evidenced  hereby  or  secured  by  the  Security
Instrument or any of the other Loan  Documents or to require that all collateral
shall  continue to secure all of the  indebtedness  owing to Payee in accordance
with this A Note, the Security Instrument and the other Loan Documents.

      All rights,  powers or remedies of  enforcement  available to Payee by the
terms of the Loan Documents may be exercised by Collateral Agent.

                        ARTICLE IV. - GENERAL CONDITIONS

      4.1.  No Waiver;  Amendment.  No failure to  accelerate  the  indebtedness
evidenced hereby by reason of default hereunder, acceptance of a partial or past
due payment,  or indulgences granted from time to time shall be construed (i) as
a novation of this A Note or as a reinstatement  of the  indebtedness  evidenced
hereby or as a waiver  of such  right of  acceleration  or of the right of Payee
thereafter  to insist upon strict  compliance  with the terms of this A Note, or
(ii) to prevent the  exercise of such right of  acceleration  or any other right
granted  hereunder or by any applicable  laws; and Maker hereby expressly waives
the benefit of any statute or rule of law or equity now  provided,  or which may
hereafter be provided,  which would produce a result  contrary to or in conflict
with the  foregoing.  No extension of the time for the payment of this A Note or
any installment due hereunder made by agreement with any person now or hereafter
liable  for the  payment of this A Note shall  operate  to  release,  discharge,
modify,  change or affect the  original  liability  of Maker  under this A Note,
either in whole or in part,  unless  Payee agrees  otherwise in writing.  This A
Note may not be changed  orally,  but only by an agreement in writing  signed by
the party  against  whom  enforcement  of any waiver,  change,  modification  or
discharge is sought.

      4.2.  Waivers.  Presentment  for  payment,  demand,  protest and notice of
demand, protest and nonpayment and all other notices are hereby waived by Maker.
Maker hereby further waives and  renounces,  to the fullest extent  permitted by
law, all rights to the benefits of any  moratorium,  reinstatement,  marshaling,
forbearance, valuation, stay, extension, redemption, appraisement, exemption and
homestead now or hereafter  provided by the  Constitution and laws of the United
States of America and of each state thereof, both as to itself and in and to all
of its property,  real and personal,  against the  enforcement and collection of
the obligations evidenced by this A Note or the other Loan Documents.

      4.3.  Limit  of  Validity.  The  provisions  of  this  A  Note  and of all
agreements  between Maker and Payee,  whether now existing or hereafter  arising
and whether written or oral, including,  but not limited to, the Loan Documents,
are hereby  expressly  limited so that in no  contingency  or event  whatsoever,
whether by reason of demand or  acceleration  of the  maturity of this A Note or
otherwise,  shall the amount contracted for, charged,  taken, reserved,  paid or
agreed to be paid ("INTEREST") to Payee for the use, forbearance or detention of
the money loaned under this A Note exceed the maximum amount  permissible  under
applicable law. If, from any circumstance whatsoever, performance or fulfillment
of any provision  hereof or of any agreement  between Maker and Payee shall,  at
the time  performance or fulfillment of such provision  shall be due, exceed the
limit  for  Interest  prescribed  by law or  otherwise  transcend  the  limit of
validity  prescribed by applicable law, then,  ipso facto,  the obligation to be
performed  or  fulfilled  shall  be  reduced  to such  limit,  and if,  from any
circumstance  whatsoever,  Payee shall ever  receive  anything  of value  deemed
Interest by applicable  law in excess of the maximum  lawful  amount,  an amount
equal  to any  excessive  Interest  shall be  applied  to the  reduction  of the
principal  balance  owing under this A Note in the inverse order of its maturity
(whether or not then due) or, at the option of Payee, be paid over to Maker, and
not to the payment of Interest.  All Interest (including any amounts or payments
judicially  or otherwise  under the law deemed to be Interest)  contracted  for,
charged,  taken,  reserved,  paid or  agreed to be paid to Payee  shall,  to the
extent permitted by applicable law, be amortized, prorated, allocated and spread
throughout  the full term of this A Note,  including any extensions and renewals
hereof until payment in full of the principal balance of this A Note so that the
Interest  thereon  for such full term  will not  exceed at any time the  maximum
amount  permitted by applicable  law. To the extent  United  States  federal law
permits a greater  amount of  interest  than is  permitted  under the law of the
State in which the  Security  Property  is  located,  Payee  will rely on United
States federal law for the purpose of determining  the maximum amount  permitted
by applicable law.  Additionally,  to the extent permitted by applicable law now
or  hereafter  in  effect,  Payee  may,  at its  option  and from  time to time,
implement any other method of computing the maximum lawful rate under the law of
the State in which the  Security  Property is located or under other  applicable
law by giving notice, if required, to Maker as provided by applicable law now or
hereafter in effect.  This Section 4.3 will control all agreements between Maker
and Payee.

      4.4. Use of Funds. Maker hereby warrants, represents and covenants that no
funds  disbursed  hereunder  shall be used for  personal,  family  or  household
purposes.

                                       8
<PAGE>

      4.5.  Unconditional  Payment.  Maker  is and  shall  be  obligated  to pay
principal, interest and any and all other amounts which become payable hereunder
or under the other Loan Documents absolutely and unconditionally and without any
abatement,  postponement,  diminution or deduction and without any reduction for
counterclaim  or setoff.  In the event that at any time any payment  received by
Payee  hereunder  shall be deemed by a court of competent  jurisdiction  to have
been a  voidable  preference  or  fraudulent  conveyance  under any  bankruptcy,
insolvency or other debtor relief law, then the  obligation to make such payment
shall survive any  cancellation or satisfaction of this A Note or return thereof
to Maker and shall not be discharged or satisfied with any prior payment thereof
or cancellation of this A Note, but shall remain a valid and binding  obligation
enforceable in accordance with the terms and provisions hereof, and such payment
shall be immediately due and payable upon demand.

      4.6.  Governing  Law.  THIS A NOTE  SHALL BE  INTERPRETED,  CONSTRUED  AND
ENFORCED  ACCORDING TO THE LAWS OF THE STATE IN WHICH THE  SECURITY  PROPERTY IS
LOCATED.

      4.7.  Waiver of Jury Trial.  MAKER,  TO THE FULL EXTENT  PERMITTED BY LAW,
HEREBY  KNOWINGLY,  INTENTIONALLY  AND VOLUNTARILY,  WITH AND UPON THE ADVICE OF
COMPETENT COUNSEL, WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL
BY JURY IN ANY ACTION OR  PROCEEDING  BASED UPON,  ARISING OUT OF, OR IN ANY WAY
RELATING TO THE DEBT EVIDENCED BY THIS A NOTE OR ANY CONDUCT, ACT OR OMISSION OF
PAYEE  OR  MAKER,  OR ANY OF THEIR  RESPECTIVE  DIRECTORS,  OFFICERS,  PARTNERS,
MEMBERS,  EMPLOYEES,  AGENTS OR ATTORNEYS,  OR ANY OTHER PERSONS AFFILIATED WITH
PAYEE OR MAKER, IN EACH OF THE FOREGOING  CASES,  WHETHER  SOUNDING IN CONTRACT,
TORT OR OTHERWISE.

      4.8.  Secondary  Market.  Payee may sell,  transfer  and  deliver the Loan
Documents  to  one or  more  investors  in the  secondary  mortgage  market.  In
connection  with such  sale,  Payee may  retain  or  assign  responsibility  for
servicing the loan  evidenced by this A Note or may delegate some or all of such
responsibility and/or obligations to a servicer,  including, but not limited to,
any subservicer or master servicer,  on behalf of the investors.  All references
to  Payee  herein  shall  refer to and  include,  without  limitation,  any such
servicer, to the extent applicable.

      4.9.  Dissemination  of  Information.  If Payee  determines at any time to
sell, transfer or assign this A Note, the Security Instrument and the other Loan
Documents,  and any or all servicing  rights with respect  thereto,  or to grant
participations  therein (the  "PARTICIPATIONS")  or issue mortgage  pass-through
certificates or other securities  evidencing a beneficial interest in a rated or
unrated  public  offering or private  placement  (the  "SECURITIES"),  Payee may
forward  to  each  purchaser,   transferee,   assignee,  servicer,  participant,
investor,   or  their  respective   successors  in  such  Participations  and/or
Securities  (collectively,  the  "INVESTOR")  or any Rating  Agency  rating such
Securities,  each  prospective  Investor and each of the foregoing's  respective
counsel,  all  documents  and  information  which Payee now has or may hereafter
acquire  relating  to the  debt  evidenced  by  this A Note  and to  Maker,  any
guarantor,  any  indemnitor  and the  Security  Property,  which shall have been
furnished  by  Maker,  any  guarantor  or any  indemnitor  as  Payee  determines
necessary or desirable.

      4.10.  Splitting the Loan.  Payee shall have the right at no cost to Maker
from time to time to sever this A Note and the other Loan  Documents into one or
more separate notes, mortgages, deeds of trust and other security documents (the
"SEVERED LOAN  DOCUMENTS") in such  denominations  and priorities as Payee shall
determine in its sole discretion,  provided, however, that the terms, provisions
and clauses of the Severed Loan Documents shall be no more adverse to Maker than
those  contained  in this A Note,  the  Security  Instrument  and the other Loan
Documents.  Maker shall execute and deliver to Payee from time to time, promptly
after the request of Payee,  a severance  agreement and such other  documents as
Payee shall reasonably request in order to effect the severance described in the
preceding sentence, all in form and substance reasonably  satisfactory to Payee.
Maker hereby  absolutely and  irrevocably  appoints Payee as its true and lawful
attorney,  coupled with an  interest,  in its name and stead to make and execute
all documents  necessary or desirable to effect the aforesaid  severance,  Maker
ratifying  all that its said  attorney  shall do by  virtue  thereof;  provided,
however,  that Payee  shall not make or execute  any such  documents  under such
power  until  three (3) days  after  notice  has been given to Maker by Payee of
Payee's intent to exercise its rights under such power.

                                       9
<PAGE>

                      ARTICLE V. - MISCELLANEOUS PROVISIONS

      5.1. Miscellaneous.  The terms and provisions hereof shall be binding upon
and  inure to the  benefit  of Maker  and  Payee  and  their  respective  heirs,
executors, legal representatives,  successors,  successors-in-title and assigns,
whether by  voluntary  action of the  parties or by  operation  of law.  As used
herein,  the  terms  "Maker"  and  "Payee"  shall be  deemed  to  include  their
respective    heirs,    executors,     legal    representatives,     successors,
successors-in-title  and assigns,  whether by voluntary action of the parties or
by operation of law. If Maker  consists of more than one person or entity,  each
shall be jointly and severally  liable to perform the obligations of Maker under
this A Note. All personal  pronouns used herein,  whether used in the masculine,
feminine or neuter gender,  shall include all other genders;  the singular shall
include  the plural and vice  versa.  Titles of articles  and  sections  are for
convenience only and in no way define,  limit,  amplify or describe the scope or
intent of any  provisions  hereof.  Time is of the essence  with  respect to all
provisions of this A Note. This A Note and the other Loan Documents  contain the
entire  agreements  between the parties  hereto  relating to the subject  matter
hereof and thereof and all prior  agreements  relative  hereto and thereto which
are not contained herein or therein are terminated.

      5.2.  Taxpayer  Identification.   Maker's  Tax  Identification  Number  is
13-4196336.

             [THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                       10
<PAGE>

      IN WITNESS  WHEREOF,  Maker has executed  this A Note as of the date first
written above.

                                        MAKER:

                                        CLF SYLVAN WAY LLC,
                                        a Delaware limited liability company

                                        By:  /s/ Paul H. McDowell
                                             -----------------------------------
                                             Name:  Paul H. McDowell
                                             Title: Chief Executive Officer
<PAGE>

                    ANNEX 1 TO $58,400,000.00 PROMISSORY NOTE
                              BY CLF SYLVAN WAY LLC
                     TO WACHOVIA BANK, NATIONAL ASSOCIATION

TIFFANY & CO., PARSIPPANY, NJ

      A Note Amount       58,400,000.00
      B Note Amount        4,584,620.67
      TOTAL LOAN AMOUNT   62,984,620.67

      Square Feet   367,740

<TABLE>
<CAPTION>
                                    -----------------------------------------------------------------------------------------------
                                    A NOTE

                                                                                                 TOTAL
                                    AVAILABLE                                                     DEBT
                                    FOR A NOTE                                                  SERVICE
                                       DEBT                                                     PAYMENT
PERIOD    DATE       RENT            SERVICE       BEG BALANCE     INTEREST      PRINCIPAL      (A NOTE)    DSCR       END BALANCE
------    ----       ----           ----------    -------------   ----------    ------------   ----------   -----      -----------
<S>    <C>         <C>              <C>           <C>             <C>           <C>            <C>          <C>       <C>
  0    10/11/2005          --                                                                                         58,400,000.00

  1    11/11/2005  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

  2    12/11/2005  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

  3     1/11/2006  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

  4     2/11/2006  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

  5     3/11/2006  384,375.00       302,591.46    58,400,000.00   242,100.44              --   242,100.44   1.27      58,400,000.00

  6     4/11/2006  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

  7     5/11/2006  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

  8     6/11/2006  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

  9     7/11/2006  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 10     8/11/2006  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 11     9/11/2006  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 12    10/11/2006  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 13    11/11/2006  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 14    12/11/2006  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 15     1/11/2007  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 16     2/11/2007  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 17     3/11/2007  384,375.00       302,591.46    58,400,000.00   242,100.44              --   242,100.44   1.27      58,400,000.00

 18     4/11/2007  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 19     5/11/2007  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 20     6/11/2007  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                    A NOTE

                                                                                                 TOTAL
                                    AVAILABLE                                                     DEBT
                                    FOR A NOTE                                                  SERVICE
                                       DEBT                                                     PAYMENT
PERIOD    DATE       RENT            SERVICE       BEG BALANCE     INTEREST      PRINCIPAL      (A NOTE)    DSCR       END BALANCE
------    ----       ----           ----------    -------------   ----------    ------------   ----------   -----      -----------
<S>    <C>         <C>              <C>           <C>             <C>           <C>            <C>          <C>       <C>
 21     7/11/2007  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 22     8/11/2007  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 23     9/11/2007  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 24    10/11/2007  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 25    11/11/2007  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 26    12/11/2007  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 27     1/11/2008  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 28     2/11/2008  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 29     3/11/2008  384,375.00       302,591.46    58,400,000.00   250,746.89              --   250,746.89   1.27      58,400,000.00

 30     4/11/2008  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 31     5/11/2008  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 32     6/11/2008  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 33     7/11/2008  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 34     8/11/2008  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 35     9/11/2008  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 36    10/11/2008  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 37    11/11/2008  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 38    12/11/2008  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 39     1/11/2009  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 40     2/11/2009  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 41     3/11/2009  384,375.00       302,591.46    58,400,000.00   242,100.44              --   242,100.44   1.27      58,400,000.00

 42     4/11/2009  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 43     5/11/2009  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 44     6/11/2009  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 45     7/11/2009  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 46     8/11/2009  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 47     9/11/2009  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 48    10/11/2009  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 49    11/11/2009  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 50    12/11/2009  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 51     1/11/2010  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 52     2/11/2010  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 53     3/11/2010  384,375.00       302,591.46    58,400,000.00   242,100.44              --   242,100.44   1.27      58,400,000.00

 54     4/11/2010  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 55     5/11/2010  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                    A NOTE

                                                                                                 TOTAL
                                    AVAILABLE                                                     DEBT
                                    FOR A NOTE                                                  SERVICE
                                       DEBT                                                     PAYMENT
PERIOD    DATE       RENT            SERVICE       BEG BALANCE     INTEREST      PRINCIPAL      (A NOTE)    DSCR       END BALANCE
------    ----       ----           ----------    -------------   ----------    ------------   ----------   -----      -----------
<S>    <C>         <C>              <C>           <C>             <C>           <C>            <C>          <C>       <C>
 56     6/11/2010  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 57     7/11/2010  384,375.00       302,591.46    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 58     8/11/2010  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 59     9/11/2010  384,375.00       302,591.46    58,400,000.00   268,039.78              --   268,039.78   1.27      58,400,000.00

 60    10/11/2010  415,125.00       326,798.77    58,400,000.00   259,393.33              --   259,393.33   1.27      58,400,000.00

 61    11/11/2010  415,125.00       326,798.77    58,400,000.00   268,039.78       58,758.99   326,798.77   1.27      58,341,241.01

 62    12/11/2010  415,125.00       326,798.77    58,341,241.01   259,132.35       67,666.42   326,798.77   1.27      58,273,574.59

 63     1/11/2011  415,125.00       326,798.77    58,273,574.59   267,459.52       59,339.25   326,798.77   1.27      58,214,235.34

 64     2/11/2011  415,125.00       326,798.77    58,214,235.34   267,187.17       59,611.60   326,798.77   1.27      58,154,623.74

 65     3/11/2011  415,125.00       326,798.77    58,154,623.74   241,083.22       85,715.55   326,798.77   1.27      58,068,908.19

 66     4/11/2011  415,125.00       326,798.77    58,068,908.19   266,520.16       60,278.61   326,798.77   1.27      58,008,629.58

 67     5/11/2011  415,125.00       326,798.77    58,008,629.58   257,655.00       69,143.77   326,798.77   1.27      57,939,485.81

 68     6/11/2011  415,125.00       326,798.77    57,939,485.81   265,926.15       60,872.62   326,798.77   1.27      57,878,613.19

 69     7/11/2011  415,125.00       326,798.77    57,878,613.19   257,077.51       69,721.26   326,798.77   1.27      57,808,891.93

 70     8/11/2011  415,125.00       326,798.77    57,808,891.93   265,326.76       61,472.01   326,798.77   1.27      57,747,419.92

 71     9/11/2011  415,125.00       326,798.77    57,747,419.92   265,044.62       61,754.15   326,798.77   1.27      57,685,665.77

 72    10/11/2011  415,125.00       326,798.77    57,685,665.77   256,220.50       70,578.27   326,798.77   1.27      57,615,087.50

 73    11/11/2011  415,125.00       326,798.77    57,615,087.50   264,437.25       62,361.52   326,798.77   1.27      57,552,725.98

 74    12/11/2011  415,125.00       326,798.77    57,552,725.98   255,630.02       71,168.75   326,798.77   1.27      57,481,557.23

 75     1/11/2012  415,125.00       326,798.77    57,481,557.23   263,824.38       62,974.39   326,798.77   1.27      57,418,582.84

 76     2/11/2012  415,125.00       326,798.77    57,418,582.84   263,535.35       63,263.42   326,798.77   1.27      57,355,319.42

 77     3/11/2012  415,125.00       326,798.77    57,355,319.42   246,261.44       80,537.33   326,798.77   1.27      57,274,782.09

 78     4/11/2012  415,125.00       326,798.77    57,274,782.09   262,875.34       63,923.43   326,798.77   1.27      57,210,858.66

 79     5/11/2012  415,125.00       326,798.77    57,210,858.66   254,111.56       72,687.21   326,798.77   1.27      57,138,171.45

 80     6/11/2012  415,125.00       326,798.77    57,138,171.45   262,248.34       64,550.43   326,798.77   1.27      57,073,621.02

 81     7/11/2012  415,125.00       326,798.77    57,073,621.02   253,502.00       73,296.77   326,798.77   1.27      57,000,324.25

 82     8/11/2012  415,125.00       326,798.77    57,000,324.25   261,615.65       65,183.12   326,798.77   1.27      56,935,141.13

 83     9/11/2012  415,125.00       326,798.77    56,935,141.13   261,316.48       65,482.29   326,798.77   1.27      56,869,658.84

 84    10/11/2012  415,125.00       326,798.77    56,869,658.84   252,596.07       74,202.70   326,798.77   1.27      56,795,456.14

 85    11/11/2012  415,125.00       326,798.77    56,795,456.14   260,675.37       66,123.40   326,798.77   1.27      56,729,332.74

 86    12/11/2012  415,125.00       326,798.77    56,729,332.74   251,972.79       74,825.98   326,798.77   1.27      56,654,506.76

 87     1/11/2013  415,125.00       326,798.77    56,654,506.76   260,028.45       66,770.32   326,798.77   1.27      56,587,736.44

 88     2/11/2013  415,125.00       326,798.77    56,587,736.44   259,721.99       67,076.78   326,798.77   1.27      56,520,659.66

 89     3/11/2013  415,125.00       326,798.77    56,520,659.66   234,309.53       92,489.24   326,798.77   1.27      56,428,170.42

 90     4/11/2013  415,125.00       326,798.77    56,428,170.42   258,989.63       67,809.14   326,798.77   1.27      56,360,361.28
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                    A NOTE

                                                                                                 TOTAL
                                    AVAILABLE                                                     DEBT
                                    FOR A NOTE                                                  SERVICE
                                       DEBT                                                     PAYMENT
PERIOD    DATE       RENT            SERVICE       BEG BALANCE     INTEREST      PRINCIPAL      (A NOTE)    DSCR       END BALANCE
------    ----       ----           ----------    -------------   ----------    ------------   ----------   -----      -----------
<S>    <C>         <C>              <C>           <C>             <C>           <C>            <C>          <C>       <C>
 91     5/11/2013  415,125.00       326,798.77    56,360,361.28   250,333.94       76,464.83   326,798.77   1.27      56,283,896.45

 92     6/11/2013  415,125.00       326,798.77    56,283,896.45   258,327.45       68,471.32   326,798.77   1.27      56,215,425.13

 93     7/11/2013  415,125.00       326,798.77    56,215,425.13   249,690.18       77,108.59   326,798.77   1.27      56,138,316.54

 94     8/11/2013  415,125.00       326,798.77    56,138,316.54   257,659.28       69,139.49   326,798.77   1.27      56,069,177.05

 95     9/11/2013  415,125.00       326,798.77    56,069,177.05   257,341.95       69,456.82   326,798.77   1.27      55,999,720.23

 96    10/11/2013  415,125.00       326,798.77    55,999,720.23   248,732.09       78,066.68   326,798.77   1.27      55,921,653.55

 97    11/11/2013  415,125.00       326,798.77    55,921,653.55   256,664.86       70,133.91   326,798.77   1.27      55,851,519.64

 98    12/11/2013  415,125.00       326,798.77    55,851,519.64   248,073.83       78,724.94   326,798.77   1.27      55,772,794.70

 99     1/11/2014  415,125.00       326,798.77    55,772,794.70   255,981.64       70,817.13   326,798.77   1.27      55,701,977.57

100     2/11/2014  415,125.00       326,798.77    55,701,977.57   255,656.60       71,142.17   326,798.77   1.27      55,630,835.40

101     3/11/2014  415,125.00       326,798.77    55,630,835.40   230,620.72       96,178.05   326,798.77   1.27      55,534,657.35

102     4/11/2014  415,125.00       326,798.77    55,534,657.35   254,888.65       71,910.12   326,798.77   1.27      55,462,747.23

103     5/11/2014  415,125.00       326,798.77    55,462,747.23   246,347.04       80,451.73   326,798.77   1.27      55,382,295.50

104     6/11/2014  415,125.00       326,798.77    55,382,295.50   254,189.35       72,609.42   326,798.77   1.27      55,309,686.08

105     7/11/2014  415,125.00       326,798.77    55,309,686.08   245,667.19       81,131.58   326,798.77   1.27      55,228,554.50

106     8/11/2014  415,125.00       326,798.77    55,228,554.50   253,483.72       73,315.05   326,798.77   1.27      55,155,239.45

107     9/11/2014  415,125.00       326,798.77    55,155,239.45   253,147.23       73,651.54   326,798.77   1.27      55,081,587.91

108    10/11/2014  415,125.00       326,798.77    55,081,587.91   244,654.05       82,144.72   326,798.77   1.27      54,999,443.19

109    11/11/2014  415,125.00       326,798.77    54,999,443.19   252,432.17       74,366.60   326,798.77   1.27      54,925,076.59

110    12/11/2014  415,125.00       326,798.77    54,925,076.59   243,958.88       82,839.89   326,798.77   1.27      54,842,236.70

111     1/11/2015  415,125.00       326,798.77    54,842,236.70   251,710.63       75,088.14   326,798.77   1.27      54,767,148.56

112     2/11/2015  415,125.00       326,798.77    54,767,148.56   251,366.00       75,432.77   326,798.77   1.27      54,691,715.79

113     3/11/2015  415,125.00       326,798.77    54,691,715.79   226,727.55      100,071.22   326,798.77   1.27      54,591,644.57

114     4/11/2015  415,125.00       326,798.77    54,591,644.57   250,560.48       76,238.29   326,798.77   1.27      54,515,406.28

115     5/11/2015  415,125.00       326,798.77    54,515,406.28   242,139.26       84,659.51   326,798.77   1.27      54,430,746.77

116     6/11/2015  415,125.00       326,798.77    54,430,746.77   249,822.01       76,976.76   326,798.77   1.27      54,353,770.01

117     7/11/2015  415,125.00       326,798.77    54,353,770.01   241,421.33       85,377.44   326,798.77   1.27      54,268,392.57

118     8/11/2015  415,125.00       326,798.77    54,268,392.57   249,076.85       77,721.92   326,798.77   1.27      54,190,670.65

119     9/11/2015  415,125.00       326,798.77    54,190,670.65   248,720.13       78,078.64   326,798.77   1.27      54,112,592.01

120    10/11/2015  448,335.00       352,942.67    54,112,592.01   240,350.10      112,592.57   352,942.67   1.27      53,999,999.44
                                    -----------------------------------------------------------------------------------------------
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]