Document:

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                                                                    Exhibit 10.6

                                                                Loan No. V_08893

                                 FIXED RATE NOTE

$1,825,000                                                          May 25, 2000

      FOR VALUE RECEIVED, 4212 TECHCOURT, LLC, a Virginia limited liability
company (hereinafter referred to as "BORROWER"), promises to pay to the order
of MORGAN GUARANTY TRUST COMPANY OF NEW YORK, a New York banking
corporation, its successors and assigns (hereinafter referred to as "'LENDER"),
at the office of Lender or its agent designee, or assignee at 60 Wall Street,
New York, New York 10260-0060, Attention: Loan Servicing, or at such place as
Lender or its agent, designee, or assignee may from time to time designate in
writing, the principal sum of ONE MILLION EIGHT HUNDRED TWENTY-FIVE THOUSAND AND
NO/100 DOLLARS (1,825,000), in lawful money of the United States of America,
with interest thereon to be computed on the unpaid principal balance from time
to time outstanding at the Applicable Interest Rate (hereinafter defined) at all
times prior to the occurrence of an Event of Default (as defined in the Security
Instrument [hereinafter defined]), and to be paid in installments as set forth
below. Unless otherwise herein defined, all initially capitalized terms shall
have the meanings given such terms in the Security Instrument.

                          1. PAYMENT TERMS

      Principal and interest due under this Note shall be paid as follows:

           (a)    A payment of interest only on the date hereof for the period
      from the date hereof through May 31, 2000, both inclusive; and

           (b)    A constant payment of $14,071.49 (subject to adjustment as set
      forth in Section 2 of this Note), on the first day of July, 2000 and on
      the first day of each calendar month thereafter, up to and including the
      first day of May, 2010;

with payments under this Note to be applied as follows:

           (i)    First, to the payment of interest and other costs and charges
      due in connection with this Note or the Debt, as Lender may determine in
      its sole discretion; and

           (ii)   The balance shall be applied toward the reduction of the
      principal sum;

      and the balance of said principal sum, together with accrued and unpaid
      interest and any other amounts due under this Note shall be due and
      payable on the first day of June, 2010 or upon earlier maturity hereof
      whether by acceleration or otherwise (the "MATURITY DATE"). Interest on
      the principal sum of this Note shall be calculated on the basis of a three
      hundred sixty (360) day year and paid for the actual number of days
      elapsed. All amounts due under this Note shall be payable without setoff,
      counterclaim or any other deduction whatsoever.

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                                   2. INTEREST

      The term "APPLICABLE INTEREST RATE" as used in this Note shall mean a rate
per annum equal to Eight and Fifty-Three Hundredths Percent (8.53%).
Notwithstanding the foregoing, in the event that Borrower fails to satisfy the
"Occupancy Certificate Criteria" (as defined in Section 19 of this Note) on or
before June 7, 2000, the Applicable Interest Rate payable under this Note shall
be adjusted to a rate equal to 6.38% plus the ten-year middle market swap rate
(as determined by Lender in its reasonable discretion) plus 135 basis points
(the "ADJUSTED INTEREST RATE") and the monthly principal and interest payments
payable under Section 1.b. of this Note shall be adjusted to reflect that the
Loan has been reamortized at the Adjusted Interest Rate based on the initial 360
month amortization schedule.

                                   3. SECURITY

      This Note is secured by, and Lender is entitled to the benefits of, the
Security Instrument, the Assignment, the Environmental Agreement, and the other
Loan Documents (hereinafter defined). The term "SECURITY INSTRUMENT" means the
Deed of Trust and Security Agreement dated the date hereof given by Borrower for
the use and benefit of Lender covering the estate of Borrower in certain
premises as more particularly described therein (which premises, together with
all properties, rights, titles, estates and interests now or hereafter securing
the Debt and/or other obligations of Borrower under the Loan Documents, are
collectively referred to herein as the "PROPERTY"). The term "ASSIGNMENT" means
the Assignment of Leases and Rents of even date herewith executed by Borrower in
favor of Lender. The term "ENVIRONMENTAL AGREEMENT" means the Environmental
Indemnity Agreement of even date herewith executed by Borrower in favor of
Lender. The term "ESCROW AGREEMENT" means the Escrow Agreement for Reserves and
Impounds of even date herewith executed by Borrower in favor of Lender. The term
"LOAN DOCUMENTS" refers collectively to this Note, the Security Instrument, the
Assignment, the Environmental Agreement, the Escrow Agreement and any and all
other documents executed in connection with this Note or now or hereafter
executed by Borrower and/or others and by or in favor of Lender, which wholly or
partially secure or guarantee payment of this Note or pertains to indebtedness
evidenced by this Note.

                             4. LATE FEE

      If any installment payable under this Note is not received by Lender prior
to the seventh (7th) calendar day after the same is due (without regard to any
applicable cure and/or notice period), Borrower shall pay to Lender upon demand
an amount equal to the lesser of (a) five percent (5%) of such unpaid sum, or
(b) the maximum amount permitted by applicable law to defray the expenses
incurred by Lender in handling and processing such delinquent payment and to
compensate Lender for the loss of the use of such delinquent payment, and such
amount shall be secured by the Loan Documents.

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                     5. DEFAULT AND ACCELERATION

      So long as an Event of Default exists, Lender may, at its option, without
notice or demand to Borrower, declare the Debt immediately due and payable. All
remedies hereunder, under the Loan Documents and at law or in equity shall be
cumulative. In the event that it should become necessary to employ counsel to
collect the Debt or to protect or foreclose the security for the Debt or to
defend against any claims asserted by Borrower arising from or related to the
Loan Documents, Borrower also agrees to pay to Lender on demand all costs of
collection or defense incurred by Lender, including reasonable attorneys' fees
for the services of counsel whether or not suit be brought.

                         6. DEFAULT INTEREST

      Upon the occurrence of an Event of Default Borrower shall pay interest on
the entire unpaid principal sum and any other amounts due under the Loan
Documents at the rate equal to the lesser of (a) the maximum rate permitted by
applicable law, or (b) the greater of (i) five percent (5%) above the Applicable
Interest Rate or (ii) five percent (5%) above the Prime Rate (hereinafter
defined), in effect at the time of the occurrence of the Event of Default (the
"DEFAULT RATE"). The term "PRIME RATE" means the prime rate reported in the
Money Rates section of The Wall Street Journal. In the event that The Wall
Street Journal should cease or temporarily interrupt publication, the term
"PRIME RATE" shall mean the daily average prime rate published in another
business newspaper, or business section of a newspaper, of national standing
and general circulation chosen by Lender. In the event that a prime rate is no
longer generally published or is limited, regulated or administered by a
governmental or quasi-governmental body, then Lender shall select a comparable
interest rate index which is readily available and verifiable to Borrower but is
beyond Lender's control. The Default Rate shall be computed from the occurrence
of the Event of Default until the actual receipt and collection of a sum of
money determined by Lender to be sufficient to cure the Event of Default.
Amounts of interest accrued at the Default Rate shall constitute a portion of
the Debt, and shall be deemed secured by the Loan Documents. This clause,
however, shall not be construed as an agreement or privilege to extend the date
of the payment of the Debt, nor as a waiver of any other fight or remedy
accruing to Lender by reason of the occurrence of any Event of Default.

                                       -3-

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                                  7. PREPAYMENT

           (a)    The principal balance of this Note may not be prepaid in whole
      or in part (except with respect to the application of casualty or
      condemnation proceeds). If following the occurrence of any Event of
      Default, Borrower shall tender payment to Lender or Lender shall receive
      proceeds (whether through foreclosure or the exercise of the other
      remedies available to Lender under the Security Instrument or the other
      Loan Documents), Borrower shall pay in addition to interest accrued and
      unpaid on the principal balance of this Note and all other sums then due
      under this Note and the other Loan Documents a prepayment consideration in
      an amount equal to the greater of(A) one percent (1%) of the outstanding
      principal balance of this Note at the time such payment or proceeds are
      received, or (B) (x) the present value as of the date such payment or
      proceeds are received of the remaining scheduled payments of principal and
      interest from the date such payment or proceeds are received through the
      Maturity Date (assuming solely for purposes of this calculation that the
      unamorized principal balance of this Note (after giving effect to
      amortization by all monthly payments due prior to the Maturity Date) is
      paid in full on the Maturity Date) determined by discounting such payments
      at the Discount Rate (as hereinafter defined), less (y) the amount of the
      payment or proceeds received (the amount resulting from the calculation in
      the foregoing subparagraph (B) being hereinafter referred to as the "YIELD
      MAINTENANCE AMOUNT"). The term "DISCOUNT RATE" means the rate which, when
      compounded monthly, is equivalent to the Treasury Rate (as hereinafter
      defined), when compounded semi-annually. The term "TREASURY RATE" means
      the yield calculated by the linear interpolation of the yields, as
      reported in Federal Reserve Statistical Release H.15-Selected Interest
      Rates under the heading "U.S. Government Securities/Treasury Constant
      Maturities" for the week ending prior to the date the payment of such
      proceeds are received, of U.S. Treasury constant maturities with maturity
      dates (one longer and one shorter) most nearly approximating the Maturity
      Date. (In the event Release H.15 is no longer published, Lender shall
      select a comparable publication to determine the Treasury Rate.) Lender
      shall notify Borrower of the amount and the basis of determination of the
      required prepayment consideration, which shall be conclusive except in the
      case of manifest error. Notwithstanding the foregoing, Borrower shall have
      the additional privilege to prepay the entire principal balance of this
      Note (together with any other sums constituting the Debt) on any scheduled
      payment date occurring on or after that date which is three (3) months
      preceding the Maturity Date without any fee or consideration for such
      privilege.

           (b)    If the prepayment results from the application to the Debt of
      the casualty or condemnation proceeds from the Property, no prepayment
      consideration will be imposed. Partial prepayments of principal resulting
      from the application of casualty or condemnation proceeds to the Debt
      shall not change the amounts of subsequent monthly installments nor change
      the dates on which such installments are due, unless Lender shall
      otherwise agree in writing.

           (c)    (i)   Notwithstanding any provision of this Section 7 to the
      contrary, at any time during which voluntary prepayment of this Note is
      prohibited by Section 7(a)

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      hereof and after the earlier of (l) 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, that holds this
      Note, and (2) a regularly scheduled payment date on or after that date
      which is four (4) years after the date of the first monthly payment due
      under Section l(b), and provided no Event of Default (or any event which
      with the passage of time or the giving of notice, or both, could become an
      Event of Default) has occurred under the Security Instrument or under any
      of the Loan Documents, Borrower may cause the release of the Property (in
      whole but not in part) from the lien of the Security Instrument and the
      other Loan Documents upon the satisfaction of the following conditions
      precedent:

                  (A)   not less than thirty (30) days prior written notice to
            Lender specifying a regularly scheduled payment date (the "Release
            Date") on which the Defeasance Deposit (hereinafter defined) is to
            be made;

                  (B)   the payment to Lender of interest accrued and unpaid on
            the principal balance of this Note to and including the Release
            Date;

                  (C)   the payment to Lender of all other sums, not including
            scheduled interest or principal payments, due under this Note, the
            Security Instrument and the other Loan Documents;

                  (D)   the payment to Lender of the Defeasance Deposit; and

                  (E)   the delivery to Lender of:

                        (1)   a security agreement, in form and substance
                              satisfactory to Lender, creating a first priority
                              lien on the Defeasance Deposit and the U.S.
                              Obligations (hereinafter defined) purchased on
                              behalf of Borrower with the Defeasance Deposit in
                              accordance with this subparagraph (the "Security
                              Agreement");

                        (2)   a release of the Property from the lien of the
                              Security Instrument (for execution by Lender) in a
                              form appropriate for the jurisdiction in which the
                              Property is located;

                        (3)   an officer's certificate of Borrower certifying
                              that the requirements set forth in this
                              subparagraph (i) have been satisfied;

                        (4)   an opinion of counsel for Borrower in form
                              satisfactory to Lender stating, among other
                              things, that defeasance of this Note will not
                              cause any adverse tax consequences to any REMIC
                              holding the Loan or the holders of any securities

                                       -5-

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                              issued by the REMIC or result in a taxation of the
                              income from the Loan to such REMIC or cause a loss
                              of REMIC status, and that Lender has a perfected
                              first priority security interest in the Defeasance
                              Deposit and the U.S. Obligations purchased by
                              Lender on behalf of Borrower;

                        (5)   an opinion of a certified public accountant
                              acceptable to Lender to the effect that the
                              Defeasance Deposit is adequate to provide payment
                              on or prior to, but as close as possible to, all
                              successive scheduled payment dates after the
                              Release Date upon which interest and principal
                              payments are required under this Note (assuming
                              solely for purposes of this calculation that the
                              unamortized principal balance of this Note (after
                              giving effect to amortization by all monthly
                              payments due prior to the Maturity Date) is paid
                              in full on the Maturity Date) and in amounts equal
                              to the scheduled payments due on such dates under
                              this Note;

                        (6)   evidence in writing from the applicable Rating
                              Agencies to the effect that such release will not
                              result in a re-qualification, reduction or
                              withdrawal of any rating in effect immediately
                              prior to such defeasance for any Securities;

                        (7)   payment of all of Lender's expenses incurred in
                              connection with the defeasance including, without
                              limitation, reasonable attorneys fees; and

                        (8)   such other certificates, documents or instruments
as Lender may reasonably request.

      In connection with the conditions set forth in subsection (c)(i)(E) above,
Borrower hereby appoints Lender as its agent and attorney-in-fact for the
purpose of using the Defeasance Deposit to purchase U.S. Obligations which
provide payment on or prior to, but as close as possible to, all successive
scheduled payment dates after the Release Date upon which interest and principal
payments are required under this Note (assuming solely for purposes of this
calculation that the unamortized principal balance of this Note (after giving
effect to amortization by all monthly payments due prior to the Maturity Date)
is paid in full on the Maturity Date) and in amounts equal to the scheduled
payments due on such dates under this Note (the "Scheduled Defeasance
Payments"). Borrower, pursuant to the Security Agreement or other appropriate
document, shall authorize and direct that the payments received from the U.S.
Obligations may be made directly to Lender and applied to satisfy the
obligations of the Borrower under this Note.

      (ii)  Upon compliance with the requirements of this subsection (c), the
Property shall be released from the lien of the Security Instrument and the
pledged U.S. Obligations shall be the sole source of collateral securing this
Note. Any portion of the Defeasance Deposit in excess of

                                       -6-

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the amount necessary to purchase the U.S. Obligations required by subparagraph
(c)(i) above and satisfy the Borrower's obligations under this subsection (c)
shall be remitted to the Borrower with the release of the Property from the lien
of the Security Instrument.

      (iii) For purposes of this subsection (c), the following terms shall have
the following meanings:

                  (A)   The term "Defeasance Deposit" shall mean an amount equal
            to 100% of the remaining principal amount of this Note, the Yield
            Maintenance Premium, any costs and expenses incurred or to be
            incurred in the purchase of the U.S. Obligations necessary to meet
            the Scheduled Defeasance Payments and any revenue, documentary stamp
            or intangible taxes or any other tax or charge due in connection
            with the transfer of this Note or otherwise required to accomplish
            the agreements of this subsection;

                  (B)   The term "Yield Maintenance Premium" shall mean the
            amount (if any) which, when added to the remaining principal amount
            of this Note, will be sufficient to purchase U.S. Obligations
            providing the required Scheduled Defeasance Payments; and

                  (C)   The term "U.S. Obligations" shall mean direct
            non-callable obligations of the United States of America.

      (iv)  Upon the release of the Property in accordance with this subsection
(c), Borrower shall, at Lender's request, assign all its obligations and rights
under this Note, together with the pledged Defeasance Deposit, to a successor
special purpose entity designated by Borrower and approved by Lender in its sole
discretion. Such successor entity shall execute an assumption agreement in form
and substance satisfactory to Lender in its sole discretion pursuant to which it
shall assume Borrower's obligations under this Note and the Security Agreement.
In connection with such assignment and assumption, Borrower shall (x) deliver to
Lender an opinion of counsel in form and substance and delivered by counsel
satisfactory to Lender in its sole discretion stating, among other things, that
such assumption agreement is enforceable against Borrower and such successor
entity in accordance with its terms and that this Note, the Security Agreement
and the other Loan Documents, as so assumed, are enforceable against such
successor entity in accordance with their respective terms, and (y) pay all
costs and expenses incurred by Lender 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). In connection with such assignment and assumption, Borrower and
any Guarantor may be released of personal liability under the Note and the other
Loan Documents, but only as to acts Or events occurring after the closing of
such assignment and assumption.

      (v)   Upon the release of the Property in accordance with this subsection
(c), Borrower shall have no further right to prepay this Note pursuant to the
other provisions of this Section 7 or otherwise.

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                          8. SAVINGS CLAUSE

      This Note is subject to the express condition that at no time shall
Borrower be obligated or required to pay interest on the principal balance due
hereunder at a rate which could subject Lender to either civil or criminal
liability as a result of being in excess of the maximum interest rate which
Borrower is permitted by applicable law to contract or agree to pay. If by the
terms of this Note, Borrower is at any time required or obligated to pay
interest on the principal balance due hereunder at a rate in excess of such
maximum rate, the Applicable Interest Rate or the Default Rate, as the case may
be, shall be deemed to be immediately reduced to such maximum rate and all
previous payments in excess of the maximum rate shall be deemed to have been
payments in reduction of principal and not on account of the interest due
hereunder. All sums paid or agreed to be paid to Lender for the use,
forbearance, or detention of the Debt, shall, to the extent permitted by
applicable law, be amortized, prorated, allocated, and spread throughout the
full stated term of this Note until payment in full so that the rate or amount
of interest on account of the Debt does not exceed the maximum lawful rate of
interest from time to time in effect and applicable to the Debt for so long as
the Debt is outstanding. Notwithstanding anything to the contrary contained
herein or in any of the other Loan Documents, it is not the intention of Lender
to accelerate the maturity of any interest that has not accrued at the time of
such acceleration or to collect unearned interest at the time of such
acceleration.

                             9. WAIVERS.

            (a)   Except as specifically provided in the Loan Documents,
      Borrower and any endorsers, sureties or guarantors hereof jointly and
      severally waive presentment and demand for payment, notice of intent to
      accelerate maturity, notice of acceleration of maturity, protest and
      notice of protest and non-payment, all applicable exemption rights,
      valuation and appraisement, notice of demand, and all other notices in
      connection with the delivery, acceptance, performance, default or
      enforcement of the payment of this Note and the bringing of suit and
      diligence in taking any action to collect any sums owing hereunder or in
      proceeding against any of the rights and collateral securing payment
      hereof. Borrower and any surety, endorser or guarantor hereof agree (i)
      that the time for any payments hereunder may be extended from time to time
      without notice and consent, (ii) to the acceptance by Lender of further
      collateral, (iii) the release by Lender of any existing collateral for the
      payment of this Note, (iv) to any and all renewals, waivers or
      modifications that may be granted by Lender with respect to the payment or
      other provisions of this Note, and/or (v) that additional Borrowers,
      endorsers, guarantors or sureties may become parties hereto all without
      notice to them and without in any manner affecting their liability under
      or with respect to this Note. No extension of time for the payment of this
      Note or any installment hereof shall affect the liability of Borrower
      under this Note or any endorser or guarantor hereof even though the
      Borrower or such endorser or guarantor is not a party to such agreement.

            (b)   Failure of Lender to exercise any of the options granted
      herein to Lender upon the happening of one or more of the events giving
      rise to such options shall not constitute a waiver of the right to
      exercise the same or any other option at any subsequent time in respect to
      the same or any other event. The acceptance by Lender of any payment

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      hereunder that is less than payment in full of all amounts due and payable
      at the time of such payment shall not constitute a waiver of the right to
      exercise any of the options granted herein to Lender at that time or at
      any subsequent time or nullify any prior exercise of any such option
      without the express written acknowledgment of the Lender.

                                 10. EXCULPATION

            (a)   Notwithstanding anything in the Loan Documents to the
      contrary, but subject to the qualifications below, Lender and Borrower
      agree that:

                  (i)   Borrower shall be liable upon the Debt and for the other
            obligations arising under the Loan Documents to the full extent (but
            only to the extent) of the security therefor; provided, however,
            that in the event (A) of fraud, willful misconduct or material
            misrepresentation by Borrower, its general partners, if any, its
            members, if any, its principals, its affiliates, its agents or its
            employees or by any Guarantor in connection with the loan evidenced
            by this Note, (B) of a breach or default under Section 8.2 of the
            Security Instrument, or (C) the Property or any part thereof
            becomes an asset in a voluntary bankruptcy or insolvency proceeding,
            the limitation on recourse set forth in this Subsection 10(a) will
            be null and void and completely inapplicable, and this Note shall be
            with full recourse to Borrower.

                  (ii)  If a default occurs in the timely and proper payment of
            all or any part of the Debt, Lender shall not enforce the liability
            and obligation of Borrower to perform and observe the obligations
            contained in this Note or the Security Instrument by any action or
            proceeding wherein a money judgment shall be sought against
            Borrower, except that Lender may bring a foreclosure action, action
            for specific performance or other appropriate action or proceeding
            to enable Lender to enforce and realize upon the Security
            Instrument, the Other Loan Documents and the interest in the
            Property, the Rents and any other collateral given to Lender
            created by the Security Instrument and the Other Loan Documents;
            provided, however, that any judgment in any action or proceeding
            shall be enforceable against Borrower only to the extent of
            Borrower's interest in the Property, in the Rents and in any other
            collateral given to Lender. Lender, by accepting this Note and the
            Security Instrument, agrees that it shall not, except as otherwise
            herein provided, sue for, seek or demand any deficiency judgment
            against Borrower in any action or proceeding, under or by reason of
            or under or in connection with this Note, the Other Loan Documents
            or the Security Instrument.

                  (iii) The provisions of this Subsection 10(a) shall not (A)
            constitute a waiver, release or impairment of any obligation
            evidenced or secured by this Note, the Other Loan Documents or the
            Security Instrument; (B) impair the right of Lender to name Borrower
            as a party defendant in any action or suit for judicial foreclosure
            and sale under the Security Instrument; (C) affect the validity or
            enforceability of any indemnity, guaranty, master lease or similar
            instrument made in connection with this Note, the Security
            Instrument, or the Other Loan

                                       -9-

<PAGE>

            Documents; (D) impair the fight of Lender to obtain the appointment
            of a receiver; (E) impair the enforcement of the Assignment executed
            in connection herewith; (F) impair the right of Lender to enforce
            the provisions of Article 11 of the Security Instrument; or (G)
            impair the right of Lender to obtain a deficiency judgment or
            judgment on this Note against Borrower if necessary to obtain any
            insurance proceeds or condemnation awards to which Lender would
            otherwise be entitled under the Security Instrument; provided,
            however, Lender shall only enforce such judgment against the
            insurance proceeds and/or condemnation awards.

                  (iv)  Notwithstanding the provisions, of this Article to the
            contrary, Borrower shall be personally liable to Lender for the
            Losses it incurs due to: (A) the misapplication or misappropriation
            of Rents; (B) the misapplication or misappropriation of insurance
            proceeds or condemnation awards; (C) Borrower's failure to return or
            to reimburse Lender for all Personal Property taken from the
            Property by or on behalf of Borrower and not replaced with Personal
            Property of the same utility and of the same or greater value; (D)
            any act of actual waste or arson by Borrower, any principal,
            affiliate, general partner or member thereof or by any Guarantor;
            (E) any fees or commissions paid by Borrower to any principal,
            affiliate, general partner or member of Borrower, or any Guarantor
            in violation of the terms of this Note, the Security Instrument or
            the Other Loan Documents; (F) Borrower's failure to comply with the
            provisions of Sections 4.3 or 11.2 of the Security Instrument; or
            (G) any breach of the Environmental Indemnity;.

            (b)   Nothing herein shall be deemed to be a waiver of any right
      which Lender may have under Sections $06(a), 506(b), llll(b) or any other
      provisions of the Bankruptcy Code to file a claim for the full amount of
      the Debt or to require that all collateral shall continue to secure all of
      the Debt, owing to Lender in accordance with this Note, the Security
      Instrument and the Other Loan Documents.

                                  11. AUTHORITY

      Borrower (and the undersigned representative of Borrower, if any)
represents that Borrower has full power, authority and legal right to execute,
deliver and perform its obligations pursuant to this Note and the other Loan
Documents and that this Note and the other Loan Documents constitute legal,
valid and binding obligations of Borrower. Borrower further represents that the
loan evidenced by the Loan Documents was made for business or commercial
purposes and not for personal, family or household use.

                                   12. NOTICES

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      All notices or other communications required or permitted to be given
pursuant hereto shall be given in the manner and be effective as specified in
the Security Instrument, directed to the parties at their respective addresses
as provided therein.

                                  13. TRANSFER

      Lender shall have the unrestricted right at any time or from time to time
to sell this Note and the loan evidenced by this Note and the Loan Documents or
participation interests therein. Borrower shall execute, acknowledge and
deliver any and all instruments requested by Lender to satisfy such purchasers
or participants that the unpaid indebtedness evidenced by this Note is
outstanding upon the terms and provisions set out in this Note and the other
Loan Documents. To the extent, if any, specified in such assignment or
participation, such assignee(s) or participant(s) shall have the rights and
benefits with respect to this Note and the other Loan Documents as such
assignee(s) or participant(s) would have if they were the Lender hereunder.

                           14. WAIVER OF TRIAL BY JURY

      BORROWER HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE
OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT
ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS NOTE OR THE
OTHER LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN
CONNECTION THEREWITH INCLUDING, BUT NOT LIMITED TO, THOSE RELATING TO (A)
ALLEGATIONS THAT A PARTNERSHIP EXISTS BETWEEN LENDER AND BORROWER; (B) USURY OR
PENALTIES OR DAMAGES THEREFOR; (C) ALLEGATIONS OF UNCONSCIONABLE ACTS, DECEPTIVE
TRADE PRACTICE, LACK OF GOOD FAITH OR FAIR DEALING, LACK OF COMMERCIAL
REASONABLENESS, OR SPECIAL RELATIONSHIPS (SUCH AS FIDUCIARY, TRUST OR
CONFIDENTIAL RELATIONSHIP); (D) ALLEGATIONS OF DOMINION, CONTROL, ALTER EGO,
INSTRUMENTALITY, FRAUD, REAL ESTATE FRAUD, MISREPRESENTATION, DURESS, COERCION,
UNDUE INFLUENCE, INTERFERENCE OR NEGLIGENCE; (E) ALLEGATIONS OF TORTIOUS
INTERFERENCE WITH PRESENT OR .PROSPECTIVE BUSINESS RELATIONSHIPS OR OF
ANTITRUST; OR (F) SLANDER, LIBEL OR DAMAGE TO DER/REPUTATION. THIS WAIVER OF
RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER, AND IS
INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE
RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO
FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS
WAIVER BY BORROWER.

                               15. APPLICABLE LAW

      This Note shall be governed by and construed in accordance with the laws
of the Commonwealth of Virginia (without regard to any conflict of laws or
principles) and the applicable laws of the United States of America.

                                      -11-

<PAGE>

                                16. JURISDICTION

      BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY COURT OF
COMPETENT JURISDICTION LOCATED IN THE COMMONWEALTH OF VIRGINIA IN CONNECTION
WITH ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE.

                               17. NO ORAL CHANGE

      The provisions of this Note and the Loan Documents may be amended or
revised only by an instrument in writing signed by the Borrower and Lender. This
Note and all the other Loan Documents embody the final, entire agreement of
Borrower and Lender and supersede any and all prior commitments, agreements,
representations and understandings, whether written or oral, relating to the
subject matter hereof and thereof and may not be contradicted or varied by
evidence of prior, contemporaneous or subsequent oral agreements or discussions
of Borrower and Lender. There are no oral agreements between Borrower and
Lender.

                       18. OCCUPANCY CERTIFICATE HOLDBACK

      a.    On the date hereof, Lender has reserved $85,000 from the Loan
proceeds, plus the Borrower's current rate lock deposit of $18,400, plus an
additional amount of $27,225 (collectively, the "OCCUPANCY CERTIFICATE
HOLDBACK") pending Borrower's satisfaction of the Occupancy Certificate Criteria
(as hereinafter defined).

      b.    If the Occupancy Certificate Criteria are not satisfied on or before
June 7, 2000, then the Adjusted Interest Rate shall apply from and after June 8,
2000.

      c.    Borrower shall have until August 15, 2000 (the "OUTSIDE RELEASE
DATE") to satisfy the Occupancy Certificate Criteria. If the Occupancy
Certificate Criteria are satisfied on or before the Outside Release Date,
lender shall release the entire Occupancy Certificate Holdback to Borrower
within five (5) business days of its receipt of evidence of such satisfaction of
the Occupancy Certificate Criteria together with a written request from Borrower
that Lender release the Occupancy Certificate Holdback. If the Occupancy
Certificate Criteria are not satisfied on or before the Outside Release Date,
then (i) Borrower's right to request the release of the Occupancy Certificate
Holdback shall automatically terminate, (ii) Lender shall apply the entire
Occupancy Certificate Holdback to reduce the principal balance of the Loan,
(iii) Borrower shall pay to Lender the Yield Maintenance Amount, if any,
applicable to such prepayment of principal, and (iv) Borrower shall be obligated
to make a principal payment to Lender (the "PRINCIPAL REDUCTION PAYMENT") in the
amount, if any, required to reduce the remaining principal balance of the Loan
(after application of the Occupancy Certificate Holdback) such that the debt
service coverage ratio for the Property with respect to the Loan (based solely
on income from tenants in occupancy under certificates of occupancy issued by
Fairfax County, Virginia, open for business and paying rent as of the date of
calculation.) is not

                                      -12-

<PAGE>

less than 1.25X (calculated in a manner substantially the same as used in the
initial underwriting the Loan using the Adjusted Interest Rate), and (v) the
Loan will be reamortized based on the initial 360 month amortization schedule,
the Adjusted Interest Rate and the reduced principal amount following
application of the Occupancy Certificate Holdback and any Principal Reduction
Payment. Borrower shall pay to Lender the Yield Maintenance Amount, if any,
applicable to the Principal Reduction Payment.

      d.    "OCCUPANCY CERTIFICATE CRITERIA" shall mean the following:

(i)   No Event of Default, or an event which with notice or the passage of time
      or both shall constitute an Event of Default under the Note, the Security
      Instrument or any of the Other Loan Documents shall have occurred and be
      continuing;

(ii)  Community Baptist Church shall be in occupancy of the entire premises
      demised under its lease, as evidenced by a certificate of occupancy issued
      by Fairfax County;

(iii) Lender shall have been provided with an original estoppel certificate from
      Community Baptist Church in the form previously provided by Lender to
      Borrower; and

(iv)  The debt service coverage ratio for the Property with respect to the
      Loan (based solely on income from tenants in occupancy under certificates
      of occupancy issued by Fairfax County, Virginia, open for business and
      paying rent as of the date of calculation.) must be not less than 1.25X
      (calculated in a manner substantially the same as used in the initial
      underwriting the Loan).

                                      -13-

<PAGE>

      Executed under seal as of the day and year first above written.

                            BORROWER:

                            4212 TECHCOURT, LLC,
                            a Virginia limited liability company

                            By: First Potomac Realty Investment Limited
                                Partnership, a Delaware limited partnership
                                Its Sole Member

                                By: First Potomac Realty Investment Trust, Inc.,
                                    a Maryland corporation
                                    Its Sole General Partner

                                    By: Douglas Donatelli
                                        ----------------------------------------
                                    Name: Douglas Donatelli
                                    Title: President

[Corporate Seal]

                                      -14-<PAGE>

                                                                    EXHIBIT 10.7

                                                                Loan No. V_08839

                         4212 TECHCOURT, LLC, as grantor
                                   (Borrower)

                                       to
                        RICHARD W. KLEIN, JR. as trustee
                                    (Trustee)

                               for the benefit of

            MORGAN GUARANTY TRUST COMPANY OF NEW YORK, as beneficiary
                                    (Lender)

                         ------------------------------

                                DEED OF TRUST AND
                               SECURITY AGREEMENT

                         ------------------------------

                           Dated:   May 23, 2000

                           PREPARED BY AND UPON
                           RECORDATION RETURN TO:

                           Womble Carlyle Sandridge & Rice, PLLC
                           1120 Nineteenth Street, Suite 800
                           Washington, D.C. 20036
                           Attention: Elizabeth C. Lee, Esq.

                             AFTER RECORDING RETURN TO:
                             Tri-State Commercial Closings, Inc.
                             1150 18th St., NW., Suite 575
                             Washington, D.C. 20036

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          PAGE
                                                                                          ----
<S>                                                                                      <C>
ARTICLE 1 - GRANTS OF SECURITY .........................................................    1
            Section 1.1  PROPERTY CONVEYED .............................................    1
                         -----------------
            Section 1.2  ASSIGNMENT OF RENTS ...........................................    3
                         -------------------
            Section 1.3  DEFINITION OF PERSONAL PROPERTY ...............................    4
                         -------------------------------
            Section 1.4  PLEDGE OF MONIES HELD .........................................    4
                         --------------------

ARTICLE 2 - DEBT AND OBLIGATIONS SECURED ...............................................    5
            Section 2.1  DEBT ..........................................................    5
                         ----
            Section 2.2  OTHER OBLIGATIONS .............................................    5
                         -----------------
            Section 2.3  DEBT AND OTHER OBLIGATIONS ....................................    6
                         --------------------------
            Section 2.4  PAYMENTS ......................................................    6
                         --------

ARTICLE 3 - BORROWER COVENANTS .........................................................    6
            Section 3.1  INCORPORATION BY REFERENCE ....................................    6
                         --------------------------
            Section 3.2  INSURANCE .....................................................    7
                         ---------
            Section 3.3  PAYMENT OF TAXES, ETC .........................................   13
                         ---------------------
            Section 3.4  CONDEMNATION ..................................................   14
                         ------------
            Section 3.5  USE AND MAINTENANCE OF PROPERTY ...............................   14
                         -------------------------------
            Section 3.6  WASTE .........................................................   15
                         -----
            Section 3.7  COMPLIANCE WITH LAWS; ALTERATIONS .............................   15
                         ---------------------------------
            Section 3.8  BOOKS AND RECORDS .............................................   16
                         -----------------
            Section 3.9  PAYMENT FOR LABOR AND MATERIALS ...............................   17
                         -------------------------------
            Section 3.10 PERFORMANCE OF OTHER AGREEMENTS ...............................   17
                         -------------------------------

ARTICLE 4 - SPECIAL COVENANTS ..........................................................   18
            Section 4.1  PROPERTY USE ..................................................   18
                         ------------
            Section 4.2  ERISA .........................................................   18
                         -----
            Section 4.3  SINGLE PURPOSE ENTITY .........................................   18
                         ---------------------

ARTICLE 5 - REPRESENTATIONS AND WARRANTIES .............................................   21
            Section 5.1  BORROWER'S REPRESENTATIONS ....................................   21
                         --------------------------
            Section 5.2  WARRANTY OF TITLE .............................................   21
                         -----------------
            Section 5.3  STATUS OF PROPERTY ............................................   21
                         ------------------
            Section 5.4  NO FOREIGN PERSON .............................................   23
                         -----------------
            Section 5.5  SEPARATE TAX LOT ..............................................   23
                         ----------------
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<S>                                                                                      <C>
ARTICLE 6 - OBLIGATIONS AND RELIANCES ..................................................   23
            Section 6.1  RELATIONSHIP OF BORROWER AND LENDER ...........................   23
                         -----------------------------------
            Section 6.2  NO RELIANCE ON LENDER .........................................   23
                         ---------------------
            Section 6.3  NO LENDER OBLIGATIONS .........................................   23
                         ---------------------
            Section 6.4  RELIANCE ......................................................   24
                         --------

ARTICLE 7 - FURTHER ASSURANCES .........................................................   24
            Section 7.1  RECORDING FEES ................................................   24
                         --------------
            Section 7.2  FURTHER ACTS ..................................................   24
                         ------------
            Section 7.3  CHANGES IN TAX, DEBT CREDIT AND DOCUMENTARY STAMP LAWS ........   25
                         ------------------------------------------------------
            Section 7.4  CONFIRMATION STATEMENT ........................................   25
                         ----------------------
            Section 7.5  SPLITTING OF SECURITY INSTRUMENT ..............................   26
                         --------------------------------
            Section 7.6  REPLACEMENT DOCUMENTS .........................................   26
                         ---------------------

ARTICLE 8 - DUE ON SALE/ENCUMBRANCE ....................................................   26
            Section 8.1  LENDER RELIANCE ...............................................   26
                         ---------------
            Section 8.2  NO SALE/ENCUMBRANCE ...........................................   26
                         -------------------
            Section 8.3  EXCLUDED AND PERMITTED TRANSFERS ..............................   27
                         --------------------------------
            Section 8.4  NO IMPLIED FUTURE CONSENT .....................................   29
                         -------------------------
            Section 8.5  COSTS OF CONSENT ..............................................   29
                         ----------------
            Section 8.6  CONTINUING SEPARATENESS REQUIREMENTS ..........................   30
                         ------------------------------------

ARTICLE 9 - DEFAULT ....................................................................   30
            Section 9.1  EVENTS OF DEFAULT .............................................   30
                         -----------------
            Section 9.2  DEFAULT INTEREST ..............................................   32
                         ----------------

ARTICLE 10 - RIGHTS AND REMEDIES .......................................................   32
             Section 10.1  REMEDIES ....................................................   32
                           --------

ARTICLE 11 - INDEMNIFICATION; SUBROGATION ..............................................   39
             Section 11.1  GENERAL INDEMNIFICATION .....................................   39
                           -----------------------
             Section 11.2  ENVIRONMENTAL INDEMNIFICATION ...............................   40
                           -----------------------------
             Section 11.3  DUTY TO DEFEND AND ATTORNEYS AND OTHER FEES AND EXPENSES ....   43
                           --------------------------------------------------------
             Section 11.4  SURVIVAL OF INDEMNITIES .....................................   43
                           -----------------------

ARTICLE 12 - SECURITY AGREEMENT ........................................................   43
             Section 12.1  SECURITY AGREEMENT ..........................................   43
                           ------------------

ARTICLE 13 - WAIVERS ...................................................................   44
             Section 13.1  MARSHALLING AND OTHER MATTERS ...............................   44
                           -----------------------------
             Section 13.2  WAIVER OF NOTICE ............................................   44
                           ----------------
             Section 13.3  SOLE DISCRETION OF LENDER ...................................   45
                           -------------------------
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<S>                                                                                      <C>
             Section 13.4  SURVIVAL ....................................................   45
                           --------
             Section 13.5  WAIVER OF TRIAL BY JURY .....................................   45
                           -----------------------
             Section 13.6  WAIVER OF AUTOMATIC OR SUPPLEMENTAL STAY ....................   46
                           ----------------------------------------

ARTICLE 14 - NOTICES ...................................................................   46
             Section 14.1  NOTICES .....................................................   46
                           -------

ARTICLE 15 - APPLICABLE LAW ............................................................   47
             Section 15.1  GOVERNING LAW; JURISDICTION .................................   47
                           ---------------------------
             Section 15.2  USURY LAWS ..................................................   47
                           -----------------------------
             Section 15.3  PROVISIONS SUBJECT TO APPLICABLE LAW ........................   48
                           ------------------------------------

ARTICLE 16 - SECONDARY MARKET ..........................................................   48
             Section 16.1  TRANSFER OF LOAN ............................................   48
                           ----------------

ARTICLE 17 - COSTS .....................................................................   48
             Section 17.1  PERFORMANCE AT BORROWER'S EXPENSE ............................   48
                           --------------------------------
             Section 17.2  ATTORNEY'S FEES FOR ENFORCEMENT .............................   49
                           -------------------------------

ARTICLE 18 - DEFINITIONS ...............................................................   49
             Section 18.1  GENERAL DEFINITIONS .........................................   49
                           -------------------

ARTICLE 19 - MISCELLANEOUS PROVISIONS .................................................   49
             Section 19.1  NO ORAL CHANGE ..............................................   49
                           --------------
             Section 19.2  LIABILITY ...................................................   50
                           ---------
             Section 19.3  INAPPLICABLE PROVISIONS ....................................   50
                           ------------------------
             Section 19.4  HEADINGS, ETC ...............................................   50
                           -------------
             Section 19.5  DUPLICATE ORIGINALS; COUNTERPARTS ...........................   50
                           ---------------------------------
             Section 19.6  NUMBER AND GENDER ...........................................   50
                           -----------------
             Section 19.7  SUBROGATION .................................................   50
                           -----------
             Section 19.8  ENTIRE AGREEMENT ............................................   50
                           ----------------

ARTICLE 20 - TRUSTEE ...................................................................   51
</TABLE>

                                     -iii-

<PAGE>

                             Index of Defined Terms

<TABLE>
<S>                                                                          <C>
"ADA" .....................................................................     15
"APPLICABLE LAWS" .........................................................     15
"ATTORNEYS' FEES ..........................................................     49
"ATTORNEYS" ...............................................................     39
"BANKRUPTCY CODE" .........................................................      2
"BORROWER" ................................................................
"BUSINESS DAY" ............................................................     47
"COLLATERAL" ..............................................................     43
"COUNSEL FEES" ............................................................     49
"DEBT" ....................................................................      5
"DEFAULT RATE" ............................................................     32
"ENVIRONMENTAL INDEMNITY" .................................................      6
"ENVIRONMENTAL LAW" ....................................................... 40, 41
"ENVIRONMENTAL LIEN" ......................................................     41
"ERISA" ...................................................................     18
"ESCROW AGREEMENT" ........................................................      3
"EVENT OF DEFAULT" ........................................................     29
"EVENT" ...................................................................     48
"EXCULPATED PORTION" ......................................................     38
"FEES AND EXPENSES" .......................................................     39
"GUARANTOR" ...............................................................     19
"HAZARDOUS SUBSTANCES" ....................................................     41
"IMPROVEMENTS" ............................................................      1
"INDEMNIFIED PARTIES" .....................................................     41
"INSURANCE PREMIUMS" ......................................................      9
"INSURED CASUALTY" ........................................................     11
"INTANGIBLES" .............................................................      4
"INVESTOR" ................................................................     48
"LAND" ....................................................................      1
"LEASE" ...................................................................      2
"LEASES" ..................................................................      2
"LEGAL FEES" ..............................................................     49
"LENDER" .................................................................. 1,  49
"LOAN DOCUMENTS" ..........................................................      6
"LOAN" ....................................................................     28
"LOSSES" ..................................................................     41
"NOTE" .................................................................... 1,  49
"OBLIGATIONS ..............................................................      6
"ORIGINAL PRINCIPALS" .....................................................     27
"OTHER CHARGES" ...........................................................     13
"OTHER LOAN DOCUMENTS" ....................................................      6
</TABLE>

                                   Index - 1

<PAGE>

<TABLE>
<S>                                                                         <C>
"OTHER OBLIGATIONS" .......................................................     5
"PERMITTED EXCEPTIONS" ....................................................    21
"PERSON" ..................................................................    49
"PERSONAL PROPERTY ........................................................     4
"POLICIES" ................................................................     9
"POLICY" ..................................................................     9
"PROPERTY" ................................................................ 1, 49
"QUALIFIED INSURER" .......................................................     9
"RATING AGENCY" ...........................................................    48
"RELEASE" .................................................................    42
"REMEDIATION" .............................................................    42
"RENTS" ...................................................................     2
"SECURITIES" ..............................................................    48
"SECURITY INSTRUMENT" .....................................................     1
"TAXES" ...................................................................    13
"UNIFORM COMMERCIAL CODE" .................................................     2
</TABLE>

                                   Index - 2

<PAGE>

                      DEED OF TRUST AND SECURITY AGREEMENT

        THIS DEED OF TRUST AND SECURITY AGREEMENT (this "SECURITY INSTRUMENT")
is made as of the 23rd day of May, 2000, by 4212 TECHCOURT, LLC, a Virginia
limited liability company, having its principal place of business at c/o First
Potomac Realty Investment LP, 7200 Wisconsin Avenue, Suite 310, Bethesda,
Maryland 20814 ("BORROWER"), to RICHARD W. KLEIN, JR., a resident of Fairfax
County, Virginia ("TRUSTEE"), having an address c/o Tri-State Commercial
Closings, Inc., 1150 18th Street, N.W., Washington, D.C. 20036, , for the
benefit of MORGAN GUARANTY TRUST COMPANY OF NEW YORK, a New York banking
corporation, having its principal place of business at 60 Wall Street, New York,
New York 10260-0060, as beneficiary ("LENDER").

                                    RECITALS:

        Borrower by its Fixed Rate Note of even date herewith given to Lender is
indebted to Lender in the original principal sum of $1,825,000 in lawful money
of the United States of America (such Fixed Rate Note, together with all
extensions, renewals, modifications, substitutions and amendments thereof, shall
collectively be referred to as the "NOTE"), with interest from the date thereof
at the rates set forth in the Note, principal and interest to be payable in
accordance with the terms and conditions provided in the Note, and with a final
maturity date of June 1, 2010.

        Borrower desires to secure the payment of the Debt (as defined in
Article 2) and the performance of all of its obligations under the Note and the
Other Obligations (as defined in Article 2).

                          ARTICLE 1 - GRANTS OF SECURITY

        Section 1.1 PROPERTY CONVEYED. Borrower does hereby irrevocably,
unconditionally and absolutely, grant, bargain, sell, pledge, enfeoff, assign,
warrant, transfer and convey to Trustee (with power of sale) in trust for the
purposes herein set forth, the following property, rights, interests and estates
now owned, or hereafter acquired, by Borrower (collectively, the "PROPERTY"):

                (a)     Land. The real property described in Exhibit A attached
        hereto and made a part hereof (collectively, the "LAND"), together with
        additional lands, estates and development rights hereafter acquired by
        Borrower for use in connection with the development, ownership or
        occupancy of such real property, and all additional lands and estates
        therein which may, from time to time, by supplemental deed of trust or
        otherwise be expressly made subject to the lien of this Security
        Instrument;

                                       1
<PAGE>

                (b)     Improvements. The buildings, structures, fixtures,
        additions, accessions, enlargements, extensions, modifications, repairs,
        replacements and improvements now or hereafter erected or located on the
        Land (the "IMPROVEMENTS");

                (c)     Easements. All easements, rights-of-way on use, rights,
        strips and gores of land, streets, ways, alleys, passages, sewer rights,
        water, water courses, water rights and powers, air rights and
        development rights, and all estates, rights, titles, interests,
        privileges, liberties, servitudes, tenements, hereditaments and
        appurtenances of any nature whatsoever, in any way now or hereafter
        belonging, relating or pertaining to the Land and the Improvements and
        the reversion and reversions, remainder and remainders, and all land
        lying in the bed of any street, road or avenue, opened or proposed, in
        front of or adjoining the Land, to the center line thereof and all the
        estates, rights, titles, interests, dower and rights of dower, curtesy
        and rights of curtesy, property, possession, claim and demand
        whatsoever, both at law and in equity, of Borrower of, in and to the
        Land and the Improvements and every part and parcel thereof, with the
        appurtenances thereto;

                (d)     Fixtures and Personal Property. All machinery,
        equipment, goods, inventory, consumer goods, fixtures (including, but
        not limited to, all heating, air conditioning, plumbing, lighting,
        communications and elevator fixtures) and other property of every kind
        and nature whatsoever owned by Borrower, or in which Borrower has or
        shall have an interest, now or hereafter located upon the Land and the
        Improvements, or appurtenant thereto, and usable in connection with the
        present or future use, maintenance, enjoyment, operation and occupancy
        of the Land and the Improvements and all building equipment, materials
        and supplies of any nature whatsoever owned by Borrower, or in which
        Borrower has or shall have an interest, now or hereafter located upon
        the Land and the Improvements, or appurtenant thereto, or usable in
        connection with the present or future operation and occupancy of the
        Land and the Improvements, and the right, title and interest of Borrower
        in and to any of the Personal Property (as hereinafter defined) which
        may be subject to any security interests, as defined in the Uniform
        Commercial Code, as adopted and enacted by the state or states where any
        of the Property is located (the "UNIFORM COMMERCIAL CODE"), superior in
        lien to the lien of this Security Instrument and all proceeds and
        products of the above;

                (e)     Leases and Rents. All leases and other agreements
        affecting the use, enjoyment or occupancy of the Land and the
        Improvements heretofore or hereafter entered into, whether before or
        after the filing by or against Borrower of any petition for relief under
        11 U.S.C. Section 101 et seq., as the same may be amended from time to
        time (the "BANKRUPTCY CODE") (individually, a "LEASE"; collectively, the
        "LEASES") and all right, title and interest of Borrower, its successors
        and assigns therein and thereunder, including, without limitation, cash
        or securities deposited thereunder to secure the performance by the
        lessees of their obligations thereunder and all rents (including all
        tenant security and other deposits), additional rents, revenues, issues
        and profits (including all oil and gas or other mineral royalties and
        bonuses) from the Land and the

                                       2
<PAGE>

        Improvements whether paid or accruing before or after the filing by or
        against Borrower of any petition for relief under the Bankruptcy Code
        (collectively the "RENTS") and all proceeds from the sale or other
        disposition of the Leases and the right to receive and apply the Rents
        to the payment of the Debt;

                (f)     Condemnation Awards. All awards or payments, including
        interest thereon, which may heretofore and hereafter be made with
        respect to the Property, whether from the exercise of the right of
        eminent domain (including but not limited to any transfer made in lieu
        of or in anticipation of the exercise of the right), or for a change of
        grade, or for any other injury to or decrease in the value of the
        Property;

                (g)     Insurance Proceeds. All proceeds of and any unearned
        premiums on any insurance policies covering the Property, including,
        without limitation, the right to receive and apply the proceeds of any
        insurance, judgments, or settlements made in lieu thereof, for damage to
        the Property;

                (h)     Tax Certiorari. All refunds, rebates or credits in
        connection with a reduction in real estate taxes and assessments charged
        against the Property as a result of tax certiorari or any applications
        or proceedings for reduction;

                (i)     Conversion. All proceeds of the conversion, voluntary or
        involuntary, of any of the foregoing including, without limitation,
        proceeds of insurance and condemnation awards, into cash or liquidation
        claims;

                (j)     Rights. The right, in the name and on behalf of
        Borrower, to appear in and defend any action or proceeding brought with
        respect to the Property and to commence any action or proceeding to
        protect the interest of Trustee and/or Lender in the Property;

                (k)     Agreements. All agreements, contracts (including
        purchase, sale, option, right of first refusal and other contracts
        pertaining to the Property), certificates, instruments, franchises,
        permits, licenses, approvals, consents, plans, specifications and other
        documents, now or hereafter entered into, and all rights therein and
        thereto, respecting or pertaining to the use, occupation, construction,
        management or operation of the Property (including any Improvements or
        respecting any business or activity conducted on the Land and any part
        thereof) and all right, title and interest of Borrower therein and
        thereunder, including, without limitation, the right, upon the happening
        of any default hereunder, to receive and collect any sums payable to
        Borrower thereunder;

                (l)     Trademarks. All tradenames, trademarks, servicemarks,
        logos, copyrights, goodwill, books and records and all other general
        intangibles relating to or used in connection with the operation of the
        Property;

                (m)     Accounts. All accounts, accounts receivable, escrows
        (including, without limitation, all escrows, deposits, reserves and
        impounds established pursuant to that

                                       3
<PAGE>

        certain Escrow Agreement for Reserves and Impounds of even date herewith
        between Borrower and Lender; hereinafter, the "ESCROW AGREEMENT"),
        documents, instruments, chattel paper, claims, reserves (including
        deposits) representations, warranties and general intangibles, as one or
        more of the foregoing terms may be defined in the Uniform Commercial
        Code, and all contract rights, franchises, books, records, plans,
        specifications, permits, licenses (to the extent assignable), approvals,
        actions, choses, claims, suits, proofs of claim in bankruptcy and causes
        of action which now or hereafter relate to, are derived from or are used
        in connection with the Property, or the use, operation, maintenance,
        occupancy or enjoyment thereof or the conduct of any business or
        activities thereon (hereinafter collectively called the "INTANGIBLES");
        and

                (n)     Other Rights. Any and all other rights of Borrower in
        and to the Property and any accessions, renewals, replacements and
        substitutions of all or any portion of the Property and all proceeds
        derived from the sale, transfer, assignment or financing of the
        Property or any portion thereof.

        Section 1.2 ASSIGNMENT OF RENTS. Borrower hereby absolutely and
unconditionally assigns to Lender Borrower's right, title and interest in and to
all current and future Leases and Rents; it being intended by Borrower that this
assignment constitutes a present, absolute and unconditional assignment and not
an assignment for additional security only. Unless provided to the contrary in
the Cash Management Agreement between Borrower and Lender of even date herewith
(the "Cash Management Agreement"), all payments due under the Leases shall be
paid directly by the tenants thereunder to an account controlled by the Lender
when such amounts are due and payable. All such payments received in such
account shall be applied as set forth in the Cash Management Agreement. The
payment of amounts due under the Leases directly to an account controlled by
Lender as required by the Cash Management Agreement, this Section 1.2 and by the
Assignment of Leases and Rents shall not limit, reduce or otherwise affect
Borrower's obligations to make payments of amounts due hereunder and under the
other Loan Documents, unless pursuant to the terms of the Cash Management
Agreement Lender has received and applied amounts sufficient to make such
payments.

        Section 1.3 DEFINITION OF PERSONAL PROPERTY. For purposes of this
Security Instrument, the Property identified in Subsections 1.1(d) through
1.1(n), inclusive, shall be collectively referred to herein as the "PERSONAL
PROPERTY."

        Section 1.4 PLEDGE OF MONIES HELD. Borrower hereby pledges to Lender any
and all monies now or hereafter held by Lender, including, without limitation,
any sums deposited in the Funds (as defined in the Escrow Agreement), all
insurance proceeds described in Section 3.2 and condemnation awards or payments
described in Section 3.4, as additional security for the Obligations until
expended or applied as provided in this Security Instrument.

                                       4
<PAGE>

                               CONDITIONS TO GRANT

        TO HAVE AND TO HOLD the above granted and described Property unto and to
the use and benefit of Trustee, and the successors and assigns of Trustee,
forever;

        PROVIDED, HOWEVER, these presents are upon the express condition that,
if Borrower shall well and truly pay to Lender the Debt at the time and in the
manner provided in the Note and this Security Instrument, shall well and truly
perform the Other Obligations as set forth in this Security Instrument and shall
well and truly abide by and comply with each and every covenant and condition
set forth herein and in the Note, these presents and the estate hereby granted
shall cease, terminate and be void; provided however, that Borrower's obligation
to indemnify and hold harmless Lender pursuant to the provisions hereof with
respect to matters relating to any period of time during which this Security
Instrument was in effect shall survive any such payment or release.

                     ARTICLE 2- DEBT AND OBLIGATIONS SECURED

        Section 2.1 DEBT. This Security Instrument and the grants, assignments
and transfers made in Article 1 are given for the purpose of securing the
following, in such order of priority as Lender may determine in its sole
discretion (the "DEBT"):

                (a)     the payment of the indebtedness evidenced by the Note in
        lawful money of the United States of America;

                (b)     the payment of interest, default interest, late charges
        and other sums, as provided in the Note, this Security Instrument or the
        Other Loan Documents (as hereinafter defined);

                (c)     the payment of all other moneys agreed or provided to be
        paid by Borrower in the Note, this Security Instrument or the Other Loan
        Documents;

                (d)     the payment of all sums advanced pursuant to this
        Security Instrument to protect and preserve the Property and the lien
        and the security interest created hereby; and

                (e)     the payment of all sums advanced and costs and expenses
        incurred by Lender in connection with the Debt or any part thereof, any
        renewal, extension, or change of or substitution for the Debt or any
        part thereof, or the acquisition or perfection of the security therefor,
        whether made or incurred at the request of Borrower or Lender.

        Section 2.2 OTHER OBLIGATIONS. This Security Instrument and the grants,
assignments and transfers made in Article 1 are also given for the purpose of
securing the following (the "OTHER OBLIGATIONS"):

                                       5
<PAGE>

                (a)     the performance of all other obligations of Borrower
        contained herein;

                (b)     the performance of each obligation of Borrower contained
        in any other agreement given by Borrower to Lender which is for the
        purpose of further securing the obligations secured hereby, and any
        amendments, modifications and changes thereto; and

                (c)     the performance of each obligation of Borrower contained
        in any renewal, extension, amendment, modification, consolidation,
        change of, or substitution or replacement for, all or any part of the
        Note, this Security Instrument or the Other Loan Documents.

        Section 2.3 DEBT AND OTHER OBLIGATIONS. Borrower's obligations for the
payment of the Debt and the performance of the Other Obligations shall be
referred to collectively herein as the "OBLIGATIONS."

        Section 2.4 PAYMENTS. Unless payments are made in the required amount in
immediately available funds at the place where the Note is payable, remittances
in payment of all or any part of the Debt shall not, regardless of any receipt
or credit issued therefor, constitute payment until the required amount is
actually received by Lender in funds immediately available at the place where
the Note is payable (or any other place as Lender, in Lender's sole discretion,
may have established by delivery of written notice thereof to Borrower) and
shall be made and accepted subject to the condition that any check or draft may
be handled for collection in accordance with the practice of the collecting bank
or banks. Acceptance by Lender of any payment in an amount less than the amount
then due shall be deemed an acceptance on account only, and the failure to pay
the entire amount then due shall be and continue to be an Event of Default (as
hereinafter defined).

                          ARTICLE 3- BORROWER COVENANTS

        Borrower covenants and agrees that:

        Section 3.1 INCORPORATION BY REFERENCE. All the covenants, conditions
and agreements contained in (a) the Note, and (b) all and any of the documents
other than the Note or this Security Instrument now or hereafter executed by
Borrower and/or others and by or in favor of Lender in connection with the
creation of the Obligations, the payment of any other sums owed by Borrower to
Lender or the performance of any Obligations (collectively the "OTHER LOAN
DOCUMENTS"), are hereby made a part of this Security Instrument to the same
extent and with the same force as if fully set forth herein. The term "LOAN
DOCUMENTS" as used herein shall individually and collectively refer to the Note,
this Security Instrument and the Other Loan Documents; provided, however, that
notwithstanding any provision of this Security Instrument to the contrary, the
Obligations of the Borrower under that certain Environmental Indemnity Agreement
of even date herewith executed by Borrower in favor of Lender (the
"ENVIRONMENTAL INDEMNITY") shall not be deemed or construed to be secured by
this Security Instrument or otherwise restricted or affected by the foreclosure
of the lien hereof or any other exercise by

                                       6
<PAGE>

Lender of its remedies hereunder or under any other Loan Document, such
Environmental Indemnity being intended by the signatories thereto to be its (or
their) unsecured obligation.

        Section 3.2 INSURANCE.

                (a)     Borrower shall obtain and maintain, and shall pay all
        premiums in accordance with Subsection 3.2(b) below for, insurance for
        Borrower and the Property providing at least the following coverages:

                                (i)     comprehensive all risk insurance
                (including, without limitation, riot and civil commotion,
                vandalism, malicious mischief, water, fire, burglary and theft)
                on the Improvements and the Personal Property and in each case
                (A) in an amount equal to 100% of the "Full Replacement Cost",
                which for purposes of this Security Instrument shall mean actual
                replacement value (exclusive of costs of excavations,
                foundations, underground utilities and footings) with a waiver
                of depreciation; (B) containing an agreed amount endorsement
                with respect to the Improvements and Personal Property waiving
                all co-insurance provisions; (C) providing that the deductible
                shall not exceed the lesser of $10,000.00 or one percent (1%) of
                the face value of the policy; and (D) containing Demolition
                Costs, Increased Cost of Construction and "Ordinance or Law
                Coverage" or "Enforcement" endorsements in amounts satisfactory
                to Lender if any of the Improvements or the use of the Property
                shall at any time constitute legal non-conforming structures or
                uses or the ability to rebuild the Improvements is restricted or
                prohibited. The Full Replacement Cost may be redetermined from
                time to time by an appraiser or contractor designated and paid
                by Lender or by an engineer or appraiser in the regular employ
                of the insurer. No omission on the part of Lender to request any
                such appraisals shall relieve Borrower of any of its obligations
                under this Subsection;

                                (ii)    comprehensive general liability
                insurance against claims for personal injury, bodily injury,
                death or property damage occurring upon, in or about the
                Property, such insurance (A) to be on the so-called "occurrence"
                form with a combined single limit of not less than $1,000,000.00
                and not less than $3,000,000.00 if the Property has one or more
                elevators, as well as liquor liability insurance in a minimum
                amount of $2,000,000.00 if any part of the Property is covered
                by a liquor license; (B) to continue at not less than the
                aforesaid limit until required to be changed by Lender in
                writing by reason of changed economic conditions making such
                protection inadequate; (C) to cover at least the following
                hazards: (1) premises and operations; (2) products and completed
                operations on an "if any" basis; (3) independent contractors;
                (4) blanket contractual liability for all written and oral
                contracts; (5) contractual liability covering the indemnities
                contained in Article 11 hereof to the extent the same is
                available; and (D)) to be without deductible;

                                       7
<PAGE>

                                (iii)   business income insurance (A) with loss
                payable to Lender; (B) covering losses of income and Rents
                derived from the Property and any non-insured property on or
                adjacent to the Property resulting from any risk or casualty
                whatsoever; (C) containing an extended period of indemnity
                endorsement which provides that after the physical loss to the
                Improvements and Personal Property has been repaired, the
                continued loss of income will be insured until such income
                either returns to the same level it was at prior to the loss, or
                the expiration of eighteen (18) months from the date of the
                loss, whichever first occurs, and notwithstanding that the
                policy may expire prior to the end of such period; and (D) in an
                amount equal to 100% of the projected gross income from the
                Property for a period of eighteen (18) months. The amount of
                such business income insurance shall be determined by Lender
                prior to the date hereof and at least once each year thereafter
                based on Borrower's reasonable estimate of the gross income from
                the Property for the succeeding eighteen (18) month period. All
                insurance proceeds payable to Lender pursuant to this Subsection
                3.2(a) shall be held by Lender and shall be applied to the
                obligations secured hereunder from time to time due and payable
                hereunder and under the Note; provided, however, that nothing
                herein contained shall be deemed to relieve Borrower of its
                obligations to pay the obligations secured hereunder on the
                respective dates of payment provided for in the Note except to
                the extent such amounts are actually paid out of the proceeds of
                such business income insurance;

                                (iv)    at all times during which structural
                construction, repairs or alterations are being made with respect
                to the Improvements: (A) owner's contingent or protective
                liability insurance covering claims not covered by or under the
                terms or provisions of the above mentioned commercial general
                liability insurance policy; and (B) the insurance provided for
                in Subsection 3.2(a)(i) written in a so-called builder's risk
                completed value form (1) on a non-reporting basis, (2) against
                all risks insured against pursuant to Subsection 3.2(a)(i), (3)
                including permission to occupy the Property, and (4) with an
                agreed amount endorsement waiving co-insurance provisions;

                                (v)     workers' compensation, subject to the
                statutory limits of the state in which the Property is located,
                and employer's liability insurance with a limit of at least
                $1,000,000.00 per accident and per disease per employee, and
                $1,000,000.00 for disease aggregate in respect of any work or
                operations on or about the Property, or in connection with the
                Property or its operation (if applicable);

                                (vi)    comprehensive boiler and machinery
                insurance (without exclusion for explosion), if applicable, in
                amounts as shall be reasonably required by Lender and covering
                all boilers or other pressure vessels, machinery and equipment
                located at or about the Property (including, without limitation,

                                       8
<PAGE>

                electrical equipment, sprinkler systems, heating and air
                conditioning equipment, refrigeration equipment and piping);

                                (vii)   flood hazard insurance if any portion of
                the Improvements is currently or at any time in the future
                located in a federally designated "special flood hazard area,"
                flood hazard insurance in an amount equal to the lesser of (a)
                the outstanding principal balance of the Note, (b) the Full
                Replacement Cost, or (c) the maximum amount of such insurance
                available under the National Flood Insurance Act of 1968, the
                Flood Disaster Protection Act of 1973 or the National Flood
                Insurance Reform Act of 1994, as each may be amended; and

                                (viii)  such other insurance and in such amounts
                as Lender from time to time may reasonably request against such
                other insurable hazards which at the time are commonly insured
                against for property similar to the Property located in or
                around the region in which the Property is located, including,
                without limitation, earthquake insurance (in the event the
                Property is located in an area with a high degree of seismic
                activity), sinkhole insurance, mine subsidence insurance and
                environmental insurance.

                (b)     All insurance provided for in Subsection 3.2(a) hereof
        shall be obtained under valid and enforceable policies (the "POLICIES"
        or in the singular, the "POLICY"), in such forms and, from time to time
        after the date hereof, in such amounts as may from time to time be
        satisfactory to Lender, issued by financially sound and responsible
        insurance companies authorized to do business in the state in which the
        Property is located as admitted or unadmitted carriers which, in either
        case, have been approved by Lender and which have a claims paying
        ability rating of A or better issued by Standard & Poor's Ratings Group
        or with a claims paying ability rating otherwise acceptable to Lender
        (each such insurer shall be referred to below as a "QUALIFIED INSURER").
        Such Policies shall not be subject to invalidation due to the use or
        occupancy of the Property for purposes more hazardous than the use of
        the Property at the time such Policies were issued. Not less than thirty
        (30) days prior to the expiration dates of the Policies theretofore
        furnished to Lender pursuant to Subsection 3.2(a), certified copies of
        the Policies marked "premium paid" or accompanied by evidence
        satisfactory to Lender of payment of the premiums due thereunder (the
        "INSURANCE PREMIUMS"), shall be delivered by Borrower to Lender;
        provided, however, that in the case of renewal Policies, Borrower may
        furnish Lender with binders therefor to be followed by the original
        Policies when issued.

                (c)     Borrower shall not obtain (i) separate insurance
        concurrent in form or contributing in the event of loss with that
        required in Subsection 3.2(a) to be furnished by, or which may be
        reasonably required to be furnished by, Borrower, or (ii) any umbrella
        or blanket liability or casualty Policy unless, in each case, Lender's
        interest is included therein as provided in this Security Instrument and
        such Policy is issued by a Qualified Insurer. If Borrower obtains
        separate insurance or an umbrella or a blanket

                                       9
<PAGE>

        Policy, Borrower shall notify Lender of the same and shall cause
        certified copies of each Policy to be delivered as required in
        Subsection 3.2(a). Any blanket insurance Policy shall specifically
        allocate to the Property the amount of coverage from time to time
        required hereunder and shall otherwise provide the same protection as
        would a separate Policy insuring only the Property in compliance with
        the provisions of Subsection 3.2(a).

                (d)     All Policies of insurance provided for or contemplated
        by Subsection 3 .2(a) shall name Lender, its successors and assigns,
        including any servicers, trustees or other designees of Lender, and
        Borrower as the insured or additional insured, as their respective
        interests may appear, and in the case of property damage, boiler and
        machinery, and flood insurance, shall contain a so-called New York
        standard non-contributing Lender clause in favor of Lender providing
        that the loss thereunder shall be payable to Lender.

                (e)     All Policies of insurance provided for in Subsection
        3.2(a) shall contain clauses or endorsements to the effect that:

                                (i)     no act or negligence of Borrower, or
                anyone acting for Borrower, or of any tenant under any Lease or
                other occupant, or failure to comply with the provisions of any
                Policy which might otherwise result in a forfeiture of the
                insurance or any part thereof, shall in any way affect the
                validity or enforceability of the insurance insofar as Lender is
                concerned;

                                (ii)    the Policy shall not be materially
                changed (other than to increase the coverage provided on the
                Property thereby) or canceled without at least thirty (30) days'
                prior written notice to Lender and any other party named therein
                as an insured;

                                (iii)   each Policy shall provide that the
                issuers thereof shall give written notice to Lender if the
                Policy has not been renewed thirty (30) days prior to its
                expiration; and

                                (iv)    Lender shall not be liable for any
                Insurance Premiums thereon or subject to any assessments
                thereunder.

                (f)     Borrower shall furnish to Lender within ten (10)
        calendar days after Lender's request therefor, a statement certified by
        Borrower or a duly authorized officer of Borrower of the amounts of
        insurance maintained in compliance herewith, of the risks covered by
        such insurance and of the insurance company or companies which carry
        such insurance and, if requested by Lender, verification of the adequacy
        of such insurance by an independent insurance broker or appraiser
        acceptable to Lender.

                (g)     If at any time Lender is not in receipt of written
        evidence that all insurance required hereunder is in full force and
        effect, Lender shall have the right but not the

                                       10
<PAGE>

        obligation, without notice to Borrower, to take such action as Lender
        deems necessary to protect its interest in the Property, including,
        without limitation, the obtaining of such insurance coverage as Lender
        in its sole discretion deems appropriate, and all expenses incurred by
        Lender in connection with such action or in obtaining such insurance and
        keeping it in effect shall be paid by Borrower to Lender upon demand and
        until paid shall be secured by this Security Instrument and shall bear
        interest at the Default Rate (as hereinafter defined).

                (h)     If the Property shall be damaged or destroyed, in whole
        or in part, by fire or other casualty, Borrower shall give prompt notice
        thereof to Lender.

                                (i)     In case of loss covered by Policies,
                Lender may either (1) settle and adjust any claim without the
                consent of Borrower, or (2) allow Borrower to agree with the
                insurance company or companies on the amount to be paid upon the
                loss; provided, that Borrower may adjust losses aggregating not
                in excess of $100,000.00 if such adjustment is carried out in a
                competent and timely manner, and provided that in any case
                Lender shall and is hereby authorized to collect and receive any
                such insurance proceeds; and the expenses incurred by Lender in
                the adjustment and collection of insurance proceeds shall become
                part of the Debt and be secured hereby and shall be reimbursed
                by Borrower to Lender upon demand (unless deducted by and
                reimbursed to Lender from such proceeds).

                                (ii)    In the event of any insured damage to or
                destruction of the Property or any part thereof (herein called
                an "INSURED CASUALTY"), if (A) in the reasonable judgment of
                Lender, the Property can be restored within nine (9) months
                after insurance proceeds are made available and at least nine
                (9) months prior to the Maturity Date (as defined in the Note)
                to an economic unit not less valuable (including an assessment
                by Lender of the impact of the termination of any Leases due to
                such Insured Casualty) and not less useful than the same was
                prior to the Insured Casualty, and after such restoration will
                adequately secure the outstanding balance of the Debt, and (B)
                no Event of Default (hereinafter defined) shall have occurred
                and be then continuing, then the proceeds of insurance shall be
                applied to reimburse Borrower for the cost of restoring,
                repairing, replacing or rebuilding the Property or part thereof
                subject to Insured Casualty, as provided below; and Borrower
                hereby covenants and agrees forthwith to commence and diligently
                to prosecute such restoring, repairing, replacing or rebuilding;
                provided, however, in any event Borrower shall pay all costs
                (and if required by Lender, Borrower shall deposit the total
                thereof with Lender in advance) of such restoring, repairing,
                replacing or rebuilding in excess of the net proceeds of
                insurance made available pursuant to the terms hereof.

                                       11
<PAGE>

                                (iii)   Except as provided above, the proceeds
                of insurance collected upon any Insured Casualty shall, at the
                option of Lender in its sole discretion, be applied to the
                payment of the Debt or applied to reimburse Borrower for the
                cost of restoring, repairing, replacing or rebuilding the
                Property or part thereof subject to the Insured Casualty, in the
                manner set forth below. Any such application to the Debt shall
                not be considered a voluntary prepayment requiring payment of
                the prepayment consideration provided in the Note, and shall not
                reduce or postpone any payments otherwise required pursuant to
                the Note, other than the final payment on the Note.

                                (iv)    If proceeds of insurance, if any, are
                made available to Borrower for the restoring, repairing,
                replacing or rebuilding of the Property, Borrower hereby
                covenants to restore, repair, replace or rebuild the same to be
                of at least equal value and of substantially the same character
                as prior to such damage or destruction, all to be effected in
                accordance with applicable law and plans and specifications
                approved in advance by Lender.

                                (v)     If Borrower is entitled to reimbursement
                out of insurance proceeds held by Lender, such proceeds shall be
                disbursed from time to time upon Lender being furnished with (1)
                evidence satisfactory to it (which evidence may include
                inspection[s] of the work performed) that the restoration,
                repair, replacement and rebuilding covered by the disbursement
                has been completed in accordance with plans and specifications
                approved by Lender, (2) evidence satisfactory to it of the
                estimated cost of completion of the restoration, repair,
                replacement and rebuilding, (3) funds, or, at Lender's option,
                assurances satisfactory to Lender that such funds are available,
                sufficient in addition to the proceeds of insurance to complete
                the proposed restoration, repair, replacement and rebuilding,
                and (4) such architect's certificates, waivers of lien,
                contractor's sworn statements, title insurance endorsements,
                bonds, plats of survey and such other evidences of cost, payment
                and performance as Lender may reasonably require and approve;
                and Lender may, in any event, require that all plans and
                specifications for such restoration, repair, replacement and
                rebuilding be submitted to and approved by Lender prior to
                commencement of work. With respect to disbursements to be made
                by Lender: (A) no payment made prior to the final completion of
                the restoration, repair, replacement and rebuilding shall exceed
                ninety percent (90%) of the value of the work performed from
                time to time; (B) funds other than proceeds of insurance shall
                be disbursed prior to disbursement of such proceeds; and (C) at
                all times, the undisbursed balance of such proceeds remaining in
                the hands of Lender, together with funds deposited for that
                purpose or irrevocably committed to the satisfaction of Lender
                by or on behalf of Borrower for that purpose, shall be at least
                sufficient in the reasonable judgment of Lender to pay for the
                cost of completion of the restoration, repair, replacement or
                rebuilding, free and clear of all liens or claims for lien and
                the

                                       12
<PAGE>

                costs described in Subsection 3.2(h)(vi) below. Any surplus
                which may remain out of insurance proceeds held by Lender after
                payment of such costs of restoration, repair, replacement or
                rebuilding shall be paid to any party entitled thereto. In no
                event shall Lender assume any duty or obligation for the
                adequacy, form or content of any such plans and specifications,
                nor for the performance, quality or workmanship of any
                restoration, repair, replacement and rebuilding.

                                (vi)    Notwithstanding anything to the contrary
                contained herein, the proceeds of insurance reimbursed to
                Borrower in accordance with the terms and provisions of this
                Security Instrument shall be reduced by the reasonable costs (if
                any) incurred by Lender in the adjustment and collection thereof
                and in the reasonable costs incurred by Lender of paying out
                such proceeds (including, without limitation, reasonable
                attorneys' fees and costs paid to third parties for inspecting
                the restoration, repair, replacement and rebuilding and
                reviewing the plans and specifications therefor).

        Section 3.3 PAYMENT OF TAXES, ETC.

                (a)     Borrower shall pay all taxes, assessments, water rates,
        sewer rents, governmental impositions, and other charges, including
        without limitation, vault charges and license fees for the use of
        vaults, chutes and similar areas adjoining the Land, now or hereafter
        levied or assessed or imposed against the Property or any part thereof
        (the "TAXES"), all ground rents, maintenance charges and similar
        charges, now or hereafter levied or assessed or imposed against the
        Property or any part thereof (the "OTHER CHARGES"), and all charges for
        utility services provided to the Property as same become due and
        payable. Borrower will deliver to Lender, promptly upon Lender's
        request, evidence satisfactory to Lender that the Taxes, Other Charges
        and utility service charges have been so paid or are not then
        delinquent. Borrower shall not allow and shall promptly cause to be paid
        and discharged any lien or charge whatsoever which may be or become a
        lien or charge against the Property. Except to the extent sums
        sufficient to pay all Taxes and Other Charges have been deposited with
        Lender in accordance with the terms of this Security Instrument,
        Borrower shall furnish to Lender paid receipts for the payment of the
        Taxes and Other Charges prior to the date the same shall become
        delinquent.

                (b)     After prior written notice to Lender, Borrower, at its
        own expense, may contest by appropriate legal proceeding, promptly
        initiated and conducted in good faith and with due diligence, the amount
        or validity or application in whole or in part of any of the Taxes,
        provided that (i) no Event of Default has occurred and is continuing
        under the Note, this Security Instrument or any of the Other Loan
        Documents, (ii) Borrower is permitted to do so under the provisions of
        any other mortgage, deed of trust or deed to secure debt affecting the
        Property, (iii) such proceeding shall suspend the collection of the
        Taxes from Borrower and from the Property or Borrower shall have paid
        all of the Taxes under protest, (iv) such proceeding shall be permitted
        under and be conducted in

                                       13
<PAGE>

        accordance with the provisions of any other instrument to which Borrower
        is subject and shall not constitute a default thereunder, (v) neither
        the Property nor any part thereof or interest therein will be in danger
        of being sold, forfeited, terminated, canceled or lost, (vi) Borrower
        shall have set aside and deposited with Lender adequate reserves for the
        payment of the Taxes, together with all interest and penalties thereon,
        unless Borrower has paid all of the Taxes under protest, and (vii)
        Borrower shall have furnished the security as may be required in the
        proceeding, or as may be requested by Lender to insure the payment of
        any contested Taxes, together with all interest and penalties thereon.

        Section 3.4 CONDEMNATION. Borrower shall promptly give Lender notice of
the actual or threatened commencement of any condemnation or eminent domain
proceeding and shall deliver to Lender copies of any and all papers served in
connection with such proceedings. Lender is hereby irrevocably appointed as
Borrower's attorney-in-fact, coupled with an interest, with exclusive power to
collect, receive and retain any award or payment for said condemnation or
eminent domain and to make any compromise or settlement in connection with such
proceeding, subject to the provisions of this Security Instrument.
Notwithstanding any taking by any public or quasi-public authority through
eminent domain or otherwise (including but not limited to any transfer made in
lieu of or in anticipation of the exercise of such taking), Borrower shall
continue to pay the Debt at the time and in the manner provided for its payment
in the Note and in this Security Instrument and the Debt shall not be reduced
until any award or payment therefor shall have been actually received and
applied by Lender, after the deduction of expenses of collection, to the
reduction or discharge of the Debt. Lender shall not be limited to the interest
paid on the award by the condemning authority but shall be entitled to receive
out of the award interest at the rate or rates provided herein or in the Note.
Borrower shall cause the award or payment made in any condemnation or eminent
domain proceeding, which is payable to Borrower, to be paid directly to Lender.
Lender may apply any award or payment to the reduction or discharge of the Debt
whether or not then due and payable (such application to be free from any
prepayment consideration provided in the Note, except that if an Event of
Default, or an event which with notice and/or the passage of time, or both,
would constitute an Event of Default, has occurred, then such application shall
be subject to the full prepayment consideration computed in accordance with the
Note). If the Property is sold, through foreclosure or otherwise, prior to the
receipt by Lender of the award or payment, Lender shall have the right, whether
or not a deficiency judgment on the Note shall have been sought, recovered or
denied, to receive the award or payment, or a portion thereof sufficient to pay
the Debt.

        Section 3.5 USE AND MAINTENANCE OF PROPERTY. Borrower shall cause the
Property to be maintained and operated in a good and safe condition and repair
and in keeping with the condition and repair of properties of a similar use,
value, age, nature and construction. Borrower shall not use, maintain or operate
the Property in any manner which constitutes a public or private nuisance or
which makes void, voidable, or cancelable, or increases the premium of, any
insurance then in force with respect thereto. The Improvements and the Personal
Property shall not be removed, demolished or materially altered (except for
normal replacement of the Personal Property with items of the same utility and
of equal or greater value)

                                       14

<PAGE>

without the prior written consent of Lender. Borrower shall promptly repair,
replace or rebuild any part of the Property which may be destroyed by any
casualty, or become damaged, worn or dilapidated or which may be affected by any
proceeding of the character referred to in Section 3.4 hereof and shall complete
and pay for any structure at any time in the process of construction or repair
on the Land. Borrower shall not initiate, join in or consent to any change in
any private restrictive covenant, zoning law or other public or private
restriction, limiting or defining the uses which may be made of the Property or
any part thereof. If under applicable zoning provisions the use of all or any
portion of the Property is or shall become a nonconforming use, Borrower will
not cause or permit the nonconforming use to be discontinued or abandoned
without the express written consent of Lender. Borrower shall not take any steps
whatsoever to convert the Property, or any portion thereof, to a condominium or
cooperative form of management.

        Section 3.6 WASTE. Borrower shall not commit or suffer any waste of the
Property or, without first obtaining such additional insurance as may be
necessary to cover a proposed change in use of the Property, make any change in
the use of the Property which will in any way materially increase the risk of
fire or other hazard arising out of the operation of the Property, or take any
action that might invalidate or give cause for cancellation of any Policy, or do
or permit to be done thereon anything that may in any way impair the value of
the Property or the security of this Security Instrument. Borrower will not,
without the prior written consent of Lender, permit any drilling or exploration
for or extraction, removal, or production of any minerals from the surface or
the subsurface of the Land, regardless of the depth thereof or the method of
mining or extraction thereof.

        Section 3.7 COMPLIANCE WITH LAWS; ALTERATIONS.

                (a)     Borrower shall promptly comply with all existing and
        future federal, state and local laws, orders, ordinances, governmental
        rules and regulations or court orders affecting or which may be
        interpreted to affect the Property, or the use thereof, including, but
        not limited to, the Americans with Disabilities Act (the "ADA")
        (collectively "APPLICABLE LAWS").

                (b)     Notwithstanding any provisions set forth herein or in
        any document regarding Lender's approval of alterations of the Property,
        Borrower shall not alter the Property in any manner which would increase
        Borrower's responsibilities for compliance with Applicable Laws without
        the prior written approval of Lender. Lender's approval of the plans,
        specifications, or working drawings for alterations of the Property
        shall create no responsibility or liability on behalf of Lender for
        their completeness, design, sufficiency or their compliance with
        Applicable Laws. The foregoing shall apply to tenant improvements
        constructed by Borrower or by any of its tenants. Lender may condition
        any such approval upon receipt of a certificate of compliance with
        Applicable Laws from an independent architect, engineer, or other person
        acceptable to Lender.

                                       15
<PAGE>

                (c)     Borrower shall give prompt notice to Lender of the
        receipt by Borrower of any notice related to a violation of any
        Applicable Laws and of the commencement of any proceedings or
        investigations which relate to compliance with Applicable Laws.

                (d)     Borrower shall take appropriate measures to prevent and
        will not engage in or knowingly permit any illegal activities at the
        Property.

        Section 3.8 BOOKS AND RECORDS.

                (a)     Borrower shall keep accurate books and records of
        account in accordance with sound accounting principles in which full,
        true and correct entries shall be promptly made with respect to
        Borrower, the Property and the operation thereof, and will permit all
        such books and records (including without limitation all contracts,
        statements, invoices, bills and claims for labor, materials and services
        supplied for the construction, repair or operation to Borrower of the
        Improvements) to be inspected or audited and copies made by Lender and
        its representatives during normal business hours and at any other
        reasonable times. Borrower represents that its chief executive office is
        as set forth in the introductory paragraph of this Security Instrument
        and that all books and records pertaining to the Property are maintained
        at the Property or such other location as may be expressly disclosed to
        Lender in writing. Borrower will furnish, or cause to be furnished, to
        Lender on or before forty-five (45) calendar days after the end of each
        calendar quarter the following items, each certified by Borrower as
        being true and correct, in such format and in such detail as Lender or
        its servicer may request:

                                (i)     a written statement (rent roll) dated as
                of the last day of each such calendar quarter identifying each
                of the Leases by the term, space occupied, rental required to be
                paid (including percentage rents and tenant sales), security
                deposit paid, any rental concessions, all rent escalations, any
                rents paid more than one (1) month in advance, any special
                provisions or inducements granted to tenants, any taxes,
                maintenance and other common charges paid by tenants, all
                vacancies and identifying any defaults or payment delinquencies
                thereunder; and

                                (ii)    quarterly and year-to-date operating
                statements prepared for each calendar quarter during each such
                reporting period detailing the total revenues received, total
                expenses incurred, total cost of all capital improvements, total
                debt service and total cash flow.

                (b)     Within ninety (90) calendar days following the end of
        each calendar year, Borrower shall furnish a statement of the financial
        affairs and condition of the Borrower

                                       16
<PAGE>

        and the Property including a statement of profit and loss for the
        Property in such format and in such detail as Lender or its servicer may
        request, and setting forth the financial condition and the income and
        expenses for the Property for the immediately preceding calendar year
        prepared by an independent certified public accountant. Borrower shall
        deliver to Lender copies of all income tax returns, requests for
        extension and other similar items contemporaneously with its delivery of
        same to the Internal Revenue Service.

                (c)     Borrower will permit representatives appointed by
        Lender, including independent accountants, agents, attorneys, appraisers
        and any other persons, upon reasonable advance notice except in the
        event of emergencies, subject to the rights of tenants, to visit and
        inspect during its normal business hours and at any other reasonable
        times any of the Property and to make photographs thereof, and to write
        down and record any information such representatives obtain, and shall
        permit Lender or its representatives to investigate and verify the
        accuracy of the information furnished to Lender under or in connection
        with this Security Instrument or any of the Other Loan Documents and to
        discuss all such matters with its officers, employees and
        representatives. Borrower will furnish to Lender at Borrower's expense
        all evidence which Lender may from time to time reasonably request as to
        the accuracy and validity of or compliance with all representations and
        warranties made by Borrower in the Loan Documents and satisfaction of
        all conditions contained therein. Any inspection or audit of the
        Property or the books and records of Borrower, or the procuring of
        documents and financial and other information, by or on behalf of
        Lender, shall be at Borrower's expense and shall be for Lender's
        protection only, and shall not constitute any assumption of
        responsibility or liability by Lender to Borrower or anyone else with
        regard to the condition, construction, maintenance or operation of the
        Property, nor Lender's approval of any certification given to Lender nor
        relieve Borrower of any of Borrower's obligations.

        Section 3.9 PAYMENT FOR LABOR AND MATERIALS. Borrower will promptly pay
when due all bills and costs for labor, materials, and specifically fabricated
materials incurred in connection with the Property and never permit to exist
beyond the due date thereof in respect of the Property or any part thereof any
lien or security interest, even though inferior to the liens and the security
interests hereof, and in any event never permit to be created or exist in
respect of the Property or any part thereof any other or additional lien or
security interest other than the liens or security interests hereof, except for
the Permitted Exceptions (as hereinafter defined).

        Section 3.10 PERFORMANCE OF OTHER AGREEMENTS. Borrower shall observe and
perform each and every term to be observed or performed by Borrower pursuant to
the terms of any agreement or recorded instrument affecting or pertaining to the
Property, or given by Borrower to Lender for the purpose of further securing an
obligation secured hereby and any amendments, modifications or changes thereto.

                                       17
<PAGE>

                          ARTICLE 4 - SPECIAL COVENANTS

        Borrower covenants and agrees that:

        Section 4.1 PROPERTY USE. The Property shall be used only for
office/warehouse purposes, and for no other use without the prior written
consent of Lender, which consent may be withheld in Lender's sole and absolute
discretion.

        Section 4.2 ERISA.

                (a)     It shall not engage in any transaction which would cause
        any obligation, or action taken or to be taken, hereunder (or the
        exercise by Lender of any of its rights under the Note, this Security
        Instrument and the Other Loan Documents) to be a non-exempt (under a
        statutory or administrative class exemption) prohibited transaction
        under the Employee Retirement Income Security Act of 1974, as amended
        ("ERISA").

                (b)     It shall deliver to Lender such certifications or other
        evidence from time to time throughout the term of the Security
        Instrument, as requested by Lender in its sole discretion, that (i)
        Borrower is not an "employee benefit plan" as defined in Section 3(3) of
        ERISA, which is subject to Title I of ERISA, or a "governmental plan"
        within the meaning of Section 3(32) of ERISA; (ii) Borrower is not
        subject to state statutes regulating investments and fiduciary
        obligations with respect to governmental plans; and (iii) one or more of
        the following circumstances is true:

                                (i)     Equity interests in Borrower are
                publicly offered securities, within the meaning of 29 C.F.R.
                Section 2510.3-lOl(b)(2);

                                (ii)    Less than twenty-five percent (25%) of
                each outstanding class of equity interests in Borrower are held
                by "benefit plan investors" within the meaning of 29 C.F.R.
                Section 2510.3-101(f)(2); or

                                (iii)   Borrower qualifies as an "operating
                company" or a "real estate operating company" within the meaning
                of 29 C.F.R. Section 2510.3-101(c) or (e) or an investment
                company registered under The Investment Company Act of 1940.

        Section 4.3 SINGLE PURPOSE ENTITY. Borrower covenants and agrees that it
has not and shall not:

                (a)     engage in any business or activity other than the
        acquisition, ownership, operation and maintenance of the Property, and
        activities incidental thereto;

                                       18
<PAGE>

                (b)     acquire or own any material asset other than (i) the
        Property, and (ii) such incidental Personal Property as may be necessary
        for the operation of the Property;

                (c)     merge into or consolidate with any person or entity or
        dissolve, terminate or liquidate in whole or in part, transfer or
        otherwise dispose of all or substantially all of its assets or change
        its legal structure, without in each case Lender's consent;

                (d)     fail to preserve its existence as an entity duly
        organized, validly existing and in good standing (if applicable) under
        the laws of the jurisdiction of its organization or formation, or
        without the prior written consent of Lender, amend, modify, terminate or
        fail to comply with the provisions of Borrower's Partnership Agreement,
        Articles or Certificate of Incorporation, Articles of Organization,
        Operating Agreement or similar organizational documents, as the case may
        be;

                (e)     own any subsidiary or make any investment in or acquire
        the obligations or securities of any other person or entity without the
        consent of Lender;

                (f)     commingle its assets with the assets of any of its
        partner(s), members, shareholders, affiliates, or of any other person or
        entity or transfer any assets to any such person or entity other than
        distributions on account of equity interests in the Borrower permitted
        hereunder and properly accounted for;

                (g)     incur any debt, secured or unsecured, direct or
        contingent (including guaranteeing any obligation), other than the Debt,
        except unsecured trade and operational debt incurred with trade
        creditors in the ordinary course of its business of owning and operating
        the Property in such amounts as are normal and reasonable under the
        circumstances, provided that such debt is not evidenced by a note and is
        paid when due and provided in any event the outstanding principal
        balance of such debt shall not exceed at any one time one percent (1%)
        of the outstanding Debt;

                (h)     allow any person or entity to pay its debts and
        liabilities (except a Guarantor or Indemnitor) or fail to pay its debts
        and liabilities solely from its own assets;

                (i)     fail to maintain its records, books of account and bank
        accounts separate and apart from those of the shareholders, partners,
        members, principals and affiliates of Borrower, the affiliates of a
        shareholder, partner or member of Borrower, and any other person or
        entity;

                (j)     enter into any contract or agreement with any
        shareholder, partner, member, principal or affiliate of Borrower, any
        guarantor of all or a portion of the Debt (a "GUARANTOR") or any
        shareholder, partner, member, principal or affiliate thereof, except
        upon terms and conditions that are intrinsically fair and substantially
        similar to those that would be available on an arms-length basis with
        third parties other than any shareholder,

                                       19
<PAGE>

        partner, member, principal or affiliate of Borrower or Guarantor, or any
        shareholder, partner, member, principal or affiliate thereof;

                (k)     seek dissolution or winding up in whole, or in part;

                (l)     fail to correct any known misunderstandings regarding
        the separate identity of Borrower;

                (m)     hold itself out to be responsible or pledge its assets
        or credit worthiness for the debts of another person or entity or allow
        any person or entity to hold itself out to be responsible or pledge its
        assets or credit worthiness for the debts of the Borrower (except for a
        Guarantor or Indemnitor);

                (n)     make any loans or advances to any third party, including
        any shareholder, partner, member, principal or affiliate of Borrower, or
        any shareholder, partner, member, principal or affiliate thereof;

                (o)     fail to file its own tax returns as legally required or
        to use separate invoices and checks;

                (p)     fail either to hold itself out to the public as a legal
        entity separate and distinct from any other entity or person or to
        conduct its business solely in its own name in order not (i) to mislead
        others as to the entity with which such other party is transacting
        business, or (ii) to suggest that Borrower is responsible for the debts
        of any third party (including any shareholder, partner, member,
        principal or affiliate of Borrower, or any shareholder, partner, member,
        principal or affiliate thereof);

                (q)     fail to allocate fairly and reasonably among Borrower
        and any third party (including, without limitation, any Guarantor) any
        overhead for common employees, shared office space or other overhead and
        administrative expenses;

                (r)     allow any person or entity to pay the salaries of its
        own employees or fail to maintain a sufficient number of employees for
        its contemplated business operations;

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

                (t)     file a voluntary petition or otherwise initiate
        proceedings to have the Borrower or any general partner or managing
        member adjudicated bankrupt or insolvent, or consent to the institution
        of bankruptcy or insolvency proceedings against the Borrower or any
        general partner or managing member, or file a petition seeking or
        consenting to reorganization or relief of the Borrower or any general
        partner or managing member as debtor under any applicable federal or
        state law relating to bankruptcy,

                                       20
<PAGE>

        insolvency, or other relief for debtors with respect to the Borrower or
        any general partner or managing member; or seek or consent to the
        appointment of any trustee, receiver, conservator, assignee,
        sequestrator, custodian, liquidator (or other similar official) of the
        Borrower or any general partner or managing member or of all or any
        substantial part of the properties and assets of the Borrower or any
        general partner or managing member, or make any general assignment for
        the benefit of creditors of the Borrower or any general partner or
        managing member, or admit in writing the inability of the Borrower or
        any general partner or managing member to pay its debts generally as
        they become due or declare or effect a moratorium on the Borrower or any
        general partner or managing member debt or take any action in
        furtherance of any such action;

                (u)     share any common logo with or hold itself out as or be
        considered as a department or division of (i) any shareholder, partner,
        principal, member or affiliate of Borrower, (ii) any affiliate of a
        shareholder, partner, principal, member or affiliate of Borrower, or
        (iii) any other person or entity or allow any person or entity to
        identify the Borrower as a department or division of that person or
        entity; or

                (v)     conceal assets from any creditor, or enter into any
        transaction with the intent to hinder, delay or defraud creditors of the
        Borrower or the creditors of any other person or entity;

                   ARTICLE 5 - REPRESENTATIONS AND WARRANTIES

        Section 5.1 BORROWER'S REPRESENTATIONS. Borrower represents and warrants
to Lender that each of the representations and warranties set forth in that
certain Closing Certificate of even date herewith executed by Borrower in favor
of Lender are true and correct as of the date hereof and are hereby incorporated
and restated in this Security Instrument by this reference.

        Section 5.2 WARRANTY OF TITLE. Borrower represents and warrants that it
has good and marketable title to the Property and has the right to grant,
bargain, sell, pledge, assign, warrant, transfer and convey the same and that
Borrower possesses an unencumbered fee simple absolute estate in the Land and
the Improvements and that it owns the Property free and clear of all liens,
encumbrances and charges whatsoever except for those exceptions shown in the
title insurance policy insuring the lien of this Security Instrument (the
"PERMITTED EXCEPTIONS"). Borrower shall, at its sole cost and expense, forever
warrant, defend and preserve the title and the validity and priority of the lien
of this Security Instrument and shall, at its sole cost and expense, forever
warrant and defend the same to Trustee and Lender against the claims of all
persons whomsoever.

        Section 5.3 STATUS OF PROPERTY.

                (a)     No portion of the Improvements is located in an area
        identified by the Secretary of Housing and Urban Development or any
        successor thereto as an area having

                                       21
<PAGE>

        special flood hazards pursuant to the National Flood Insurance Act of
        1968 or the Flood Disaster Protection Act of 1973, as amended, or any
        successor law, or, if located within any such area, Borrower has
        obtained and will maintain the insurance prescribed in Section 3.2
        hereof.

                (b)     Borrower has obtained all necessary certificates,
        permits, licenses and other approvals, governmental and otherwise,
        necessary for the use, occupancy and operation of the Property and the
        conduct of its business (including, without limitation, certificates of
        completion and certificates of occupancy) and all required zoning,
        building code, land use, environmental and other similar permits or
        approvals, all of which are in full force and effect as of the date
        hereof and not subject to revocation, suspension, forfeiture or
        modification.

                (c)     The Property and the present and contemplated use and
        occupancy thereof are to the best knowledge of Borrower in full
        compliance with all Applicable Laws, including, without limitation,
        zoning ordinances, building codes, land use and environmental laws, laws
        relating to the disabled (including, but not limited to, the ADA) and
        other similar laws.

                (d)     The Property is served by all utilities required for the
        current or contemplated use thereof.  All utility service is provided by
        public utilities and the Property has accepted or is equipped to accept
        such utility service.

                (e)     All public roads and streets necessary for service of
        and access to the Property for the current or contemplated use thereof
        have been completed, are serviceable and are physically and legally open
        for use by the public.

                (f)     The Property is served by public water and sewer
        systems.

                (g)     The Property is free from damage caused by fire or other
        casualty. There is no pending or, to the best knowledge of Borrower,
        threatened condemnation proceedings affecting the Property or any
        portion thereof.

                (h)     All costs and expenses of any and all labor, materials,
        supplies and equipment used in the construction of the Improvements have
        been paid in full and no notice of any mechanics' or materialmen's liens
        or of any claims of right to any such liens have been received.

                (i)     Borrower has paid in full for, and is the owner of, all
        furnishings, fixtures and equipment (other than tenants' property) used
        in connection with the operation of the Property, free and clear of any
        and all security interests, liens or encumbrances, except the lien and
        security interest created hereby.

                                       22
<PAGE>

                (j)     All liquid and solid waste disposal, septic and sewer
        systems located the Property are to the best knowledge of Borrower in a
        good and safe condition and repair and in compliance with all Applicable
        Laws.

                (k)     All Improvements lie within the boundary of the Land.

        Section 5.4 NO FOREIGN PERSON. Borrower is not a "foreign person" within
the meaning of Section 1445(f)(3) of the Internal Revenue Code of 1986, as
amended, and the related Treasury Department regulations, including temporary
regulations.

        Section 5.5 SEPARATE TAX LOT. The Property is assessed for real estate
tax purposes as one or more wholly independent tax lot or lots, separate from
any adjoining land or improvements not constituting a part of such lot or lots,
and no other land or improvements is assessed and taxed together with the
Property or any portion thereof.

                      ARTICLE 6 - OBLIGATIONS AND RELIANCES

        Section 6.1 RELATIONSHIP OF BORROWER AND LENDER. The relationship
between Borrower and Lender is solely that of debtor and creditor, and Lender
has no fiduciary or other special relationship with Borrower, and no term or
condition of any of the Note, this Security Instrument and the other Loan
Documents shall be construed so as to deem the relationship between Borrower and
Lender to be other than that of debtor and creditor.

        Section 6.2 NO RELIANCE ON LENDER. The partners, members, principals and
(if Borrower is a trust) beneficial owners of Borrower are experienced in the
ownership and operation of properties similar to the Property, and Borrower and
Lender are relying solely upon such expertise and business plan in connection
with the ownership and operation of the Property. Borrower is not relying on
Lender's expertise, business acumen or advice in connection with the Property.

        Section 6.3 NO LENDER OBLIGATIONS.

                (a)     Notwithstanding the provisions of Subsections 1.1(e) and
        1.1(1) or Section 1.2, Lender is not undertaking (i) any obligations
        under the Leases; or (ii) any obligations with respect to such
        agreements, contracts, certificates, instruments, franchises, permits,
        trademarks, licenses and other documents.

                (b)     By accepting or approving anything required to be
        observed, performed or fulfilled or to be given to Lender pursuant to
        this Security Instrument, the Note or the Other Loan Documents,
        including without limitation, any officer's certificate, balance sheet,
        statement of profit and loss or other financial statement, survey,
        appraisal, or insurance policy, Lender shall not be deemed to have
        warranted, consented to, or affirmed the sufficiency, legality or
        effectiveness of same, and such acceptance or

                                       23
<PAGE>

        approval thereof shall not constitute any warranty or affirmation with
        respect thereto by Lender.

        Section 6.4 RELIANCE. Borrower recognizes and acknowledges that in
accepting the Note, this Security Instrument and the Other Loan Documents,
Lender is expressly and primarily relying on the truth and accuracy of the
warranties and representations set forth in Article 5 and that certain Closing
Certificate of even date herewith executed by Borrower, without any obligation
to investigate the Property and notwithstanding any investigation of the
Property by Lender; that such reliance existed on the part of Lender prior to
the date hereof; that such warranties and representations are a material
inducement to Lender in accepting the Note, this Security Instrument and the
Other Loan Documents; and that Lender would not be willing to make the Loan (as
hereinafter defined) and accept this Security Instrument in the absence of the
warranties and representations as set forth in Article 5 and such Closing
Certificate.

                         ARTICLE 7 - FURTHER ASSURANCES

        Section 7.1 RECORDING FEES. Borrower will pay all taxes, filing,
registration or recording fees, and all expenses incident to the preparation,
execution, acknowledgment and/or recording of the Note, this Security
Instrument, the Other Loan Documents, any note or deed of trust supplemental
hereto, any security instrument with respect to the Property and any instrument
of further assurance, and any modification or amendment of the foregoing
documents, and all federal, state, county and municipal taxes, duties, imposts,
assessments and charges arising out of or in connection with the execution and
delivery of this Security Instrument, any deed of trust supplemental hereto, any
security instrument with respect to the Property or any instrument of further
assurance, and any modification or amendment of the foregoing documents, except
where prohibited by law so to do.

        Section 7.2 FURTHER ACTS. Borrower will, at the cost of Borrower, and
without expense to Lender, do, execute, acknowledge and deliver all and every
such further acts, deeds, conveyances, deeds of trust, assignments, notices of
assignments, transfers and assurances as Lender shall, from time to time,
require, for the better assuring, conveying, assigning, transferring, and
confirming unto Lender the property and rights hereby granted, bargained, sold,
conveyed, confirmed, pledged, assigned, warranted and transferred or intended
now or hereafter so to be, or which Borrower may be or may hereafter become
bound to convey or assign to Lender, or for carrying out the intention or
facilitating the performance of the terms of this Security Instrument or for
filing, registering or recording this Security Instrument, or for complying
with all Applicable Laws. Borrower, on demand, will execute and deliver and
hereby authorizes Lender to execute in the name of Borrower or without the
signature of Borrower to the extent Lender may lawfully do so, one or more
financing statements, chattel mortgages or other instruments, to evidence more
effectively the security interest of Lender in the Property. Borrower grants to
Lender an irrevocable power of attorney coupled with an interest for the purpose
of exercising and perfecting any and all rights and remedies available to Lender
at law and in equity, including without limitation such rights and remedies
available to Lender pursuant to this Section 7.2.

                                       24
<PAGE>

        Section 7.3 CHANGES IN TAX, DEBT CREDIT AND DOCUMENTARY STAMP LAWS.

                (a)     If any law is enacted or adopted or amended after the
        date of this Security Instrument which imposes a tax, either directly or
        indirectly, on the Debt or Lender's interest in the Property, requires
        revenue or other stamps to be affixed to the Note, this Security
        Instrument, or the Other Loan Documents, or imposes any other tax or
        charge on the same, Borrower will pay the same, with interest and
        penalties thereon, if any. If Lender is advised by counsel chosen by it
        that the payment of tax by Borrower would be unlawful or taxable to
        Lender or unenforceable or provide the basis for a defense of usury,
        then Lender shall have the option, by written notice of not less than
        ninety (90) calendar days, to declare the Debt immediately due and
        payable.

                (b)     Borrower will not claim or demand or be entitled to any
        credit or credits on account of the Debt for any part of the Taxes or
        Other Charges assessed against the Property, or any part thereof, and no
        deduction shall otherwise be made or claimed from the assessed value of
        the Property, or any part thereof, for real estate tax purposes by
        reason of this Security Instrument or the Debt. If such claim, credit or
        deduction shall be required by law, Lender shall have the option, by
        written notice of not less than ninety (90) calendar days, to declare
        the Debt immediately due and payable.

        Section 7.4 CONFIRMATION STATEMENT.

                (a)     After request by Lender, Borrower, within ten (10) days,
        shall furnish Lender or any proposed assignee with a statement, duly
        acknowledged and certified, confirming to Lender (or its designee) (i)
        the amount of the original principal amount of the Note, (ii) the unpaid
        principal amount of the Note, (iii) the rate of interest of the Note,
        (iv) the terms of payment and maturity date of the Note, (v) the date
        installments of interest and/or principal were last paid, and (vi) that,
        except as provided in such statement, there are no defaults or events
        which with the passage of time or the giving of notice or both, would
        constitute an event of default under the Note or this Security
        Instrument; provided, however, Lender shall not be entitled hereunder to
        receive more than one (1) such statement in each calendar year.

                (b)     Subject to the provisions of the Leases, Borrower shall
        deliver to Lender, promptly upon request (but not more frequently than
        once annually so long as Borrower is not in default hereunder), duly
        executed estoppel certificates from any one or more lessees as required
        by Lender attesting to such facts regarding the Lease as Lender may
        require, including but not limited to attestations that each Lease
        covered thereby is in full force and effect with no defaults thereunder
        on the part of any party, that none of the Rents have been paid more
        than one month in advance, and that the lessee claims no defense or
        offset against the full and timely performance of its obligations under
        the Lease.

                                       25
<PAGE>

                (c)     Upon any transfer or proposed transfer contemplated by
        Section 16.1 hereof, at Lender's request, Borrower, any Guarantors and
        any Indemnitors shall provide an estoppel certificate to the Investor
        (defined in Section 16.1) or any prospective Investor in such form,
        substance and detail as Lender, such Investor or prospective Investor
        may require.

        Section 7.5 SPLITTING OF SECURITY INSTRUMENT. This Security Instrument
and the Note shall, at any time until the same shall be fully paid and
satisfied, at the sole election of Lender, be split or divided into two or more
notes and two or more security instruments, each of which shall cover all or a
portion of the Property to be more particularly described therein. To that end,
Borrower, upon written request of Lender, shall execute, acknowledge and
deliver, or cause to be executed, acknowledged and delivered by the then owner
of the Property, to Lender and/or its designee or designees substitute notes and
security instruments in such principal amounts, aggregating not more than the
then unpaid principal amount of Debt, and containing terms, provisions and
clauses similar to those contained herein and in the Note, and such other
documents and instruments as may be required by Lender.

        Section 7.6 REPLACEMENT DOCUMENTS. Upon receipt of an affidavit of an
officer of Lender as to the loss, theft, destruction or mutilation of the Note
or any Other Loan Document which is not of public record, and, in the case of
any such mutilation, upon surrender and cancellation of such Note or Other Loan
Document, Borrower, at its expense, will issue, in lieu thereof, a replacement
Note or Other Loan Document, dated the date of such lost, stolen, destroyed or
mutilated Note or Other Loan Document in the same principal amount thereof and
otherwise of like tenor.

                       ARTICLE 8 - DUE ON SALE/ENCUMBRANCE

        Section 8.1 LENDER RELIANCE. Borrower acknowledges that Lender has
examined and relied on the creditworthiness of Borrower and experience of
Borrower and its partners, members, principals and (if Borrower is a trust)
beneficial owners in owning and operating properties such as the Property in
agreeing to make the Loan, and will continue to rely on Borrower's ownership of
the Property as a means of maintaining the value of the Property as security for
repayment of the Debt and the performance of the Other Obligations. Borrower
acknowledges that Lender has a valid interest in maintaining the value of the
Property so as to ensure that, should Borrower default in the repayment of the
Debt or the performance of the Other Obligations, Lender can recover the Debt by
a sale of the Property.

        Section 8.2 NO SALE/ENCUMBRANCE.

                (a)     Borrower agrees that Borrower shall not, without the
        prior written consent of Lender, Transfer the Property or any part
        thereof or permit the Property or any part thereof to be Transferred.
        Lender shall not be required to demonstrate any actual impairment of its
        security or any increased risk of default hereunder in order to declare

                                       26
<PAGE>

the Debt immediately due and payable upon Borrower's Transfer of the Property
without Lender's consent.

        (b)     As used in Section 8.2(a), "Transfer" shall mean any voluntary
or involuntary sale, conveyance, mortgage, grant, bargain, encumbrance, pledge,
assignment or transfer of all or any part of the Property or any interest
therein including, but not limited to: (i) an installment sales agreement
wherein Borrower agrees to sell the Property or any part thereof for a price to
be paid in installments; (ii) an agreement by Borrower leasing all or a
substantial part of the Property for other than actual occupancy by a space
tenant thereunder; (iii) a sale, assignment or other transfer of, or the grant
of a security interest in, Borrower's right, title and interest in and to any
Leases or any Rents; (iv) if Borrower, Guarantor, or any managing member or
general partner of Borrower or Guarantor is a corporation, any Transfer of such
corporation's stock (or the stock of any corporation directly or indirectly
controlling such Borrower, Guarantor, managing member or general partner by
operation of law or otherwise) or the creation or issuance of new stock in one
or a series of transactions by which an aggregate of forty-nine percent (49%) or
more of such corporation's stock shall directly or indirectly be vested in or
pledged to a party or parties who are not now stockholders (provided, however,
in no event shall this subpart [iv] apply to any Guarantor whose stock or shares
are traded on a nationally recognized stock exchange); (v) if Borrower,
Guarantor, or any managing member or general partner of Borrower or Guarantor is
a limited liability company or partnership, the Transfer by which an aggregate
of forty-nine percent (49%) or more of the ownership interest in such limited
liability company or the general partnership interests in such partnership shall
directly or indirectly be vested in or pledged to parties not having an
ownership interest as of the date of this Security Instrument; (vi) if Borrower,
any Guarantor or any managing member or general partner of Borrower or any
Guarantor is a partnership, limited liability company or joint venture, the
change, removal or resignation of a general partner, managing member or joint
venturer or the Transfer directly or indirectly of all or any portion of the
partnership or ownership interest of any general partner, managing member or
joint venturer; and (vii) except as expressly permitted by Section 8.3, any
Transfer by an Original Principal, directly or indirectly, of its ownership
interest in the Borrower.

Section 8.3     EXCLUDED AND PERMITTED TRANSFERS.

        (a)     A Transfer within the meaning of this Article 8 shall not
include (i) transfers of ownership interests in the Borrower, any general
partner or managing member or any Guarantor made by devise or descent or by
operation of law upon the death of a joint tenant, partner, member or
shareholder, subject, however, to all the following requirements: (A) written
notice of any transfer under this Section 8.3, whether by will, trust or other
written instrument, operation of law or otherwise, is provided to Lender or its
servicer, together with copies of such documents relating to the transfer as
Lender or its servicer may reasonably request, (B) control over the

                                       27

<PAGE>

        management and operation of the Property is retained by Douglas J.
        Donatelli, Louis T. Donatelli or Nicholas Smith (each an "ORIGINAL
        PRINCIPAL", whether one or more) at all times prior to the death or
        legal incapacity of all the Original Principals and is thereafter
        assumed by persons who are acceptable in all respects to Lender in its
        sole and absolute discretion, (C) no such transfer by any of the
        Original Principal will release the respective estate from any liability
        as a Guarantor, and (D) no such transfer, death or other event has any
        adverse effect either on the bankruptcy-remote status of Borrower under
        the requirements of any national rating agency for the Securities
        (hereinafter defined) or on the status of Borrower as a continuing legal
        entity liable for the payment of the Debt and the performance of all
        other obligations secured hereby, (ii) transfers otherwise by operation
        of law in the event of a bankruptcy, or (iii) a Lease of a portion of
        the Property to a space tenant.

                (b)     Notwithstanding any provision of this Security
        Instrument to the contrary, the prohibitions in Subsection 8.2(a) shall
        not apply to an inter vivos or testamentary transfer of all or any
        portion of ownership interests in the Borrower, any general partner or
        managing member or any Guarantor to one or more family members of
        Original Principal or a trust in which all of the beneficial interest is
        held by one or more family members of Original Principal or a
        partnership or limited liability company in which a majority of the
        capital and profits interests are held by one or more family members of
        Original Principal, provided, that any inter vivos transfer of all or
        any portion of the ownership interests in the Borrower, such general
        partner or managing member or such Guarantor is made in connection with
        Original Principal bona fide, good faith estate planning and that the
        person(s) with voting control of Borrower or the management of the
        Property are (i) the same person(s) who had such voting control and
        management rights immediately prior to the transfer in question, or (ii)
        reasonably acceptable to Lender and provided further that no such
        transfer shall have any adverse effect on the bankruptcy remote status
        of Borrower under the requirements of any national rating agency for the
        Securities. Lender acknowledges that Original Principal and/or an
        Original Principal's spouse are acceptable to exercise voting control of
        Borrower and the management of the Property. As used herein, "family
        members" shall include the spouse, children and grandchildren and any
        lineal descendants.

                (c)     Notwithstanding the provisions of Section 8.2 above,
        Lender will give its consent to three separate sales or transfers of the
        Property or ownership interests in the Borrower, a general partner or
        managing member of the Borrower, or any Guarantor, if (but only if) no
        Event of Default under the Loan Documents has occurred and is
        continuing, and if each of the following conditions precedent have been
        fully satisfied (as determined in Lender's sole and absolute
        discretion): (i) the grantee's or transferee's integrity, reputation,
        financial condition, character and management ability are satisfactory
        to Lender in its sole discretion, and all information relating thereto
        requested by Lender is delivered to Lender at least 30 days prior to the
        proposed transfer, (ii) the grantee's or transferee's (and its sole
        general partner's or managing member's) single

                                       28
<PAGE>

        purpose and bankruptcy remote character are satisfactory to Lender in
        its sole discretion, and all information relating thereto requested by
        Lender is delivered to Lender at least 30 days prior to the proposed
        transfer, (iii) Lender has obtained such estoppels from any guarantors
        of the Note or replacement guarantors and such other legal opinions
        regarding substantive consolidation issues, enforceability of the
        assumption documents, no adverse impact on the Securities or any REMIC
        holding the Note and similar matters as Lender may require, (iv) all of
        Lender's costs and expenses associated with the sale or transfer
        (including reasonable attorneys' fees) are paid by Borrower or the
        grantee or transferee, (v) the payment of a transfer fee not to exceed
        1% of the then unpaid principal balance of the loan evidenced by the
        Note and secured hereby (the "LOAN"), (vi) the execution and delivery to
        Lender of a written assumption agreement and/or substitute guaranty (in
        its sole and absolute discretion) and such modifications to the Loan
        Documents executed by such parties and containing such terms and
        conditions as Lender may require in its sole and absolute discretion
        prior to such sale or transfer (provided that in the event the Loan is
        included in a REMIC and is a performing Loan, no modification to the
        terms and conditions shall be made or permitted that would cause (A) any
        adverse tax consequences to the REMIC or any holders of any
        Mortgage-Backed Pass-Through Securities, (B) the Security Instrument to
        fail to be a Qualifying Security Instrument under applicable federal
        law relating to REMIC's, or (C) result in a taxation of the income from
        the Loan to the REMIC or cause a loss of REMIC status), and (vii) if
        applicable, the delivery to Lender of an endorsement (at Borrower's sole
        cost and expense) to Lender's policy of title insurance then insuring
        the lien created by this Security Instrument in form and substance
        acceptable to Lender in its sole judgment.

                (d)     Without limiting the foregoing, if Lender shall consent
        to a transfer of the Property, the written assumption agreement
        described in Subsection 8.3(c)(vi) above shall provide for the release
        of Borrower and, if approved by Lender, each Guarantor and Indemnitor
        of personal liability under the Note and Other Loan Documents, but only
        as to acts or events occurring, or obligations arising, after the
        closing of such transfer.

        Section 8.4 NO IMPLIED FUTURE CONSENT. Lender's consent to one sale,
conveyance, alienation, mortgage, encumbrance, pledge or transfer of the
Property shall not be deemed to be a waiver of Lender's right to require such
consent to any future occurrence of same. Any sale, conveyance, alienation,
mortgage, encumbrance, pledge or transfer of the Property made in contravention
of this Article 8 shall be null and void and of no force and effect.

        Section 8.5 COSTS OF CONSENT. Borrower agrees to bear and shall pay or
reimburse Lender on demand for all reasonable expenses (including, without
limitation, all recording costs, reasonable attorneys' fees and disbursements
and title search costs) incurred by Lender in connection with the review,
approval and documentation of any such sale, conveyance, alienation, mortgage,
encumbrance, pledge or transfer.

                                       29
<PAGE>

        Section 8.6 CONTINUING SEPARATENESS REQUIREMENTS. In no event shall any
of the terms and provisions of this Article 8 amend or modify the terms and
provisions contained in Section 4.3 herein.

                               ARTICLE 9 - DEFAULT

        Section 9.1 EVENTS OF DEFAULT. The occurrence of any one or more of the
following events shall constitute an "EVENT OF DEFAULT":

                (a)     if any portion of the Debt is not paid prior to the
        seventh (7th) calendar day after the same is due or if the entire Debt
        is not paid on or before the maturity date, along with applicable
        prepayment premiums, if any;

                (b)     if Borrower, or its general partner or managing member,
        if applicable, violates or does not comply with any of the provisions of
        Section 4.3 or Article 8;

                (c)     if any representation or warranty of Borrower or of its
        members, general partners, principals, affiliates, agents or employees,
        or of any Guarantor made herein or in the Environmental Indemnity or in
        any other Loan Document, in any guaranty, or in any certificate, report,
        financial statement or other instrument or document furnished to Lender
        shall have been false or misleading in any material respect when made;

                (d)     if Borrower or any Guarantor shall make an assignment
        for the benefit of creditors or if Borrower or any Guarantor shall admit
        in writing its inability to pay, or Borrower's or any Guarantor's
        failure to pay its debts as they become due;

                (e)     if (i) Borrower or any subsidiary or general partner or
        managing member of Borrower, or any Guarantor shall commence any case,
        proceeding or other action (A) under any existing or future law of any
        jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
        reorganization, conservatorship or relief of debtors, seeking to have an
        order for relief entered with respect to it, or seeking to adjudicate it
        a bankrupt or insolvent, or seeking reorganization, arrangement,
        adjustment, winding-up, liquidation, dissolution, composition or other
        relief with respect to it or its debts, or (B) seeking appointment of a
        receiver, trustee, custodian, conservator or other similar official for
        it or for all or any substantial part of its assets, or Borrower or any
        subsidiary or general partner or managing member of Borrower, or any
        Guarantor shall make a general assignment for the benefit of its
        creditors; or (ii) there shall be commenced against Borrower or any
        subsidiary or general partner or managing member of Borrower, or any
        Guarantor any case, proceeding or other action of a nature referred to
        in clause (i) above which (A) results in the entry of an order for
        relief or any such adjudication or appointment or (B) remains
        undismissed, undischarged or unbonded for a period of ninety (90)
        calendar days; or (iii) there shall be commenced against Borrower or any
        subsidiary or general partner or managing member of Borrower or any
        Guarantor any case, proceeding or other action seeking issuance of a
        warrant of attachment, execution,

                                       30
<PAGE>

        distraint or similar process against all or any substantial part of its
        assets which results in the entry of any order for any such relief which
        shall not have been vacated, discharged, or stayed or bonded pending
        appeal within ninety (90) calendar days from the entry thereof; or (iv)
        Borrower or any subsidiary or general partner or managing member of
        Borrower, or any Guarantor shall take any action in furtherance of, or
        indicating its consent to, approval of, or acquiescence in, any of the
        acts set forth in clause (i), (ii) or (iii) above; or (v) Borrower or
        any subsidiary or general partner or managing member of Borrower, or any
        Guarantor shall generally not, or shall be unable to, or shall admit in
        writing its inability to, pay its debts as they become due;

                (1)     subject to Borrower's right to contest certain liens as
        provided in this Security Instrument, if the Property becomes subject to
        any mechanic's, materialman's or other lien other than a lien for local
        real estate taxes and assessments not then due and payable and the lien
        shall remain undischarged of record (by payment, bonding or otherwise)
        for a period of thirty (30) calendar days;

                (g)     if any federal tax lien is filed against Borrower, any
        general partner or managing member of Borrower, any Guarantor or the
        Property and same is not discharged of record within thirty (30)
        calendar days after same is filed;

                (h)     except as permitted in this Security Instrument, the
        alteration, improvement, demolition or removal of any of the
        Improvements without the prior consent of Lender;

                (i)     damage to the Property in any manner which is not
        covered by insurance, which lack of coverage arises solely as a result
        of Borrower's failure to maintain the insurance required under this
        Security Instrument;

                (j)     without Lender's prior consent, (i) any managing agent
        for the Property resigns or is removed, (ii) the ownership, management
        or control of such managing agent is transferred to a person or entity
        other than the general partner or managing member of the Borrower, or
        (iii) there is any material change in the property management agreement
        of the Property;

                (k)     this Security Instrument shall cease to constitute a
        first-priority lien on the Property (other than in accordance with its
        terms);

                (1)     seizure or forfeiture of the Property, or any portion
        thereof, or Borrower's interest therein, resulting from criminal
        wrongdoing or other unlawful action of Borrower, its affiliates, or any
        tenant in the Property under any federal, state or local law;

                (m)     if Borrower consummates a transaction which would cause
        this Security Instrument or Lender's exercise of its rights under this
        Security Instrument, the Note or the Other Loan Documents to constitute
        a nonexempt prohibited transaction under

                                       31
<PAGE>

        ERISA or result in a violation of a state statute regulating
        governmental plans, subjecting Lender to liability for a violation of
        ERISA or a state statute;

                (n)     if any default occurs under any guaranty or indemnity
        including the Environmental Indemnity executed in connection herewith
        and such default continues after the expiration of applicable grace
        periods, or such guaranty or indemnity shall cease to be in full force
        and effect, or any guarantor or indemnitor shall deny or disaffirm its
        obligation thereunder; and

                (o)     if Borrower or any Guarantor, as the case may be, shall
        continue to be in default under any other term, covenant or condition of
        this Security Instrument or any Other Loan Documents for thirty (30)
        calendar days after notice from Lender; provided that if such default
        cannot reasonably be cured within such thirty (30) calendar day period
        and Borrower (or such Guarantor as the case may be) shall have commenced
        to cure such default within such thirty (30) calendar day period and
        thereafter diligently and expeditiously proceeds to cure the same, such
        thirty (30) calendar day period shall be extended for so long as it
        shall require Borrower (or such Guarantor as the case may be) in the
        exercise of due diligence to cure such default, it being agreed that no
        such extension shall be for a period in excess of sixty (60) calendar
        days after the notice from Lender referred to above.

        Section 9.2 DEFAULT INTEREST. Borrower will pay, from the date of an
Event of Default through the earlier of the date upon which the Event of Default
is cured or the date upon which the Debt is paid in full, interest on the unpaid
principal balance of the Note at a per annum rate equal to the lesser of (a) the
greater of (i) five percent (5%) plus the Prime Rate (as defined in the Note),
and (ii) five percent (5%) plus the Applicable Interest Rate (as defined in the
Note), and (b) the maximum interest rate which Borrower may by law pay or Lender
may charge and collect (the "DEFAULT RATE").

                        ARTICLE 10 - RIGHTS AND REMEDIES

        Section 10.1 REMEDIES. Upon the occurrence of any Event of Default,
Borrower agrees that Lender may take such action, by or through Trustee, by
Lender itself or otherwise, without notice or demand, as it deems advisable to
protect and enforce its rights against Borrower and in and to the Property,
including, but not limited to, the following actions, each of which may be
pursued concurrently or otherwise, at such time and in such order as Lender may
determine, in its sole discretion, without impairing or otherwise affecting the
other rights and remedies of Lender:

                (a)     Right to Perform Borrower's Covenants. If Borrower has
        failed to keep or perform any covenant whatsoever contained in this
        Security Instrument or the Other Loan Documents, Lender may, but shall
        not be obligated to any person to do so, perform or attempt to perform
        said covenant and any payment made or expense incurred in the
        performance or attempted performance of any such covenant; together with
        any sum

                                       32
<PAGE>

        expended by Lender that is chargeable to Borrower or subject to
        reimbursement by Borrower under the Loan Documents, shall be and become
        a part of the "Debt", and Borrower promises, upon demand, to pay to
        Lender, at the place where the Note is payable, all sums so incurred,
        paid or expended by Lender, with interest from the date when paid,
        incurred or expended by Lender at the Default Rate.

                (b)     Right of Entry. Lender may, prior or subsequent to the
        institution of any foreclosure proceedings, enter upon the Property, or
        any part thereof, and take exclusive possession of the Property and of
        all books, records, and accounts relating thereto and to exercise
        without interference from Borrower any and all rights which Borrower has
        with respect to the management, possession, operation, protection, or
        preservation of the Property, including without limitation the right to
        rent the same for the account of Borrower and to deduct from such Rents
        all costs, expenses, and liabilities of every character incurred by
        Lender in collecting such Rents and in managing, operating, maintaining,
        protecting, or preserving the Property and to apply the remainder of
        such Rents on the Debt in such manner as Lender may elect. All such
        costs, expenses, and liabilities incurred by Lender in collecting such
        Rents and in managing, operating, maintaining, protecting, or preserving
        the Property, if not paid out of Rents as hereinabove provided, shall
        constitute a demand obligation owing by Borrower and shall bear interest
        from the date of expenditure until paid at the Default Rate, all of
        which shall constitute a portion of the Debt. If necessary to obtain the
        possession provided for above, Lender may invoke any and all legal
        remedies to dispossess Borrower, including specifically one or more
        actions for forcible entry and detainer, trespass to try title, and
        restitution. In connection with any action taken by Lender pursuant to
        this Subsection 10.1(b), Lender shall not be liable for any loss
        sustained by Borrower resulting from any failure to let the Property, or
        any part thereof, or from any other act or omission of Lender in
        managing the Property unless such loss is caused by the willful
        misconduct of Lender, nor shall Lender be obligated to perform or
        discharge any obligation, duty, or liability under any Lease or under or
        by reason hereof or the exercise of rights or remedies hereunder.
        Borrower shall and does hereby agree to indemnify Lender for, and to
        hold Lender harmless from, any and all liability, loss, or damage, which
        may or might be incurred by Lender under any such Lease or under or by
        reason hereof or the exercise of rights or remedies hereunder, and from
        any and all claims and demands whatsoever which may be asserted against
        Lender by reason of any alleged obligations or undertakings on its part
        to perform or discharge any of the terms, covenants, or agreements
        contained in any such Lease. Should Lender incur any such liability, the
        amount thereof, including without limitation costs, expenses, and
        reasonable attorneys' fees, together with interest thereon from the date
        of expenditure until paid at the Default Rate, shall be secured hereby,
        and Borrower shall reimburse Lender therefor immediately upon demand.
        Nothing in this Subsection 10.1(b) shall impose any duty, obligation, or
        responsibility upon Lender for the control, care, management, leasing,
        or repair of the Property, nor for the carrying out of any of the terms
        and conditions of any such Lease; nor shall it operate to make Lender
        responsible or liable for any waste

                                       33
<PAGE>

        committed on the Property by the tenants, or by any other parties, or
        for any hazardous substances or environmental conditions on or under the
        Property, or for any dangerous or defective condition of the Property or
        for any negligence in the management, leasing, upkeep, repair, or
        control of the Property resulting in loss or injury or death to any
        tenant, licensee, employee, or stranger. Borrower hereby assents to,
        ratifies, and confirms any and all actions of Lender with respect to the
        Property taken under this subsection.

                (c)     Right to Accelerate. Lender may, without notice (except
        as provided in Section 9.1(p) above) demand, presentment, notice of
        nonpayment or nonperformance, protest, notice of protest, notice of
        intent to accelerate, notice of acceleration, or any other notice or any
        other action, all of which are hereby waived by Borrower and all other
        parties obligated in any manner whatsoever on the Debt, declare the
        entire unpaid balance of the Debt immediately due and payable, and upon
        such declaration, the entire unpaid balance of the Debt shall be
        immediately due and payable.

                (d)     Foreclosure-Power of Sale. Lender may institute a
        proceeding or proceedings, judicial, or nonjudicial, by advertisement or
        otherwise, for the complete or partial foreclosure of this Security
        Instrument or the complete or partial sale of the Property under power
        of sale or under any applicable provision of law. Lender may, through
        the Trustee, sell the Property, and all estate, right, title, interest,
        claim and demand of Borrower therein, and all rights of redemption
        thereof, at one or more sales, as an entirety or in parcels, with such
        elements of real and/or personal property, and at such time and place
        and upon such terms as it may deem expedient, or as may be required by
        applicable law, and in the event of a sale, by foreclosure or otherwise,
        of less than all of the Property, this Security Instrument shall
        continue as a lien and security interest on the remaining portion of the
        Property.

                (e)     Rights Pertaining to Sales. Subject to the requirements
        of applicable law and except as otherwise provided herein, the following
        provisions shall apply to any sale or sales of all or any portion of the
        Property under or by virtue of Subsection 10.1(d) above, whether made
        under the power of sale herein granted or by virtue of judicial
        proceedings or of a judgment or decree of foreclosure and sale:

                                (i)     Trustee or Lender may conduct any number
                of sales from time to time. The power of sale set forth above
                shall not be exhausted by any one or more such sales as to any
                part of the Property which shall not have been sold, nor by any
                sale which is not completed or is defective in Lender's opinion,
                until the Debt shall have been paid in full.

                                (ii)    Any sale may be postponed or adjourned
                by public announcement at the time and place appointed for such
                sale or for such postponed or adjourned sale without further
                notice.

                                       34
<PAGE>

                                (iii)   After each sale, Lender, Trustee or an
                officer of any court empowered to do so shall execute and
                deliver to the purchaser or purchasers at such sale a good and
                sufficient instrument or instruments granting, conveying,
                assigning and transferring all right, title and interest of
                Borrower in and to the property and rights sold and shall
                receive the proceeds of said sale or sales and apply the same as
                specified in the Note. Each of Trustee and Lender is hereby
                appointed the true and lawful attorney-in-fact of Borrower,
                which appointment is irrevocable and shall be deemed to be
                coupled with an interest, in Borrower's name and stead, to make
                all necessary conveyances, assignments, transfers and deliveries
                of the property and rights so sold, Borrower hereby ratifying
                and confirming all that said attorney or such substitute or
                substitutes shall lawfully do by virtue thereof. Nevertheless,
                Borrower, if requested by Trustee or Lender, shall ratify and
                confirm any such sale or sales by executing and delivering to
                Trustee, Lender or such purchaser or purchasers all such
                instruments as may be advisable, in Trustee's or Lender's
                judgment, for the purposes as may be designated in such request.

                                (iv)    Any and all statements of fact or other
                recitals made in any of the instruments referred to in
                Subsection 10. 1(e)(iii) given by Trustee or Lender shall be
                taken as conclusive and binding against all persons as to
                evidence of the truth of the facts so stated and recited.

                                (v)     Any such sale or sales shall operate to
                divest all of the estate, right, title, interest, claim and
                demand whatsoever, whether at law or in equity, of Borrower in
                and to the properties and rights so sold, and shall be a
                perpetual bar both at law and in equity against Borrower and any
                and all persons claiming or who may claim the same, or any part
                thereof or any interest therein, by, through or under Borrower
                to the fullest extent permitted by applicable law.

                                (vi)    Upon any such sale or sales, Lender may
                bid for and acquire the Property and, in lieu of paying cash
                therefor, may make settlement for the purchase price by
                crediting against the Debt the amount of the bid made therefor,
                after deducting therefrom the expenses of the sale, the cost of
                any enforcement proceeding hereunder, and any other sums which
                Trustee or Lender is authorized to deduct under the terms
                hereof, to the extent necessary to satisfy such bid.

                                (vii)   Upon any such sale, it shall not be
                necessary for Trustee, Lender or any public officer acting under
                execution or order of court to have present or constructively in
                its possession any of the Property.

                (f)     Lender's Judicial Remedies. Lender, or Trustee upon
        written request of Lender, may proceed by suit or suits, at law or in
        equity, to enforce the payment of the Debt to foreclose the liens and
        security interests of this Security Instrument as against all

                                       35

<PAGE>

        or any part of the Property, and to have all or any part of the Property
        sold under the judgment or decree of a court of competent jurisdiction.
        This remedy shall be cumulative of any other nonjudicial remedies
        available to Lender under this Security Instrument, the Note or the
        Other Loan Documents. Proceeding with a request or receiving a judgment
        for legal relief shall not be or be deemed to be an election of remedies
        or bar any available nonjudicial remedy of Lender.

                (g)     Lender's Right to Appointment of Receiver. Lender, as a
        matter of right and (i) without regard to the sufficiency of the
        security for repayment of the Debt and without notice to Borrower, (ii)
        without any showing of insolvency, fraud, or mismanagement on the part
        of Borrower, (iii) without the necessity of filing any judicial or other
        proceeding other than the proceeding for appointment of a receiver, and
        (iv) without regard to the then value of the Property, shall be entitled
        to the appointment of a receiver or receivers for the protection,
        possession, control, management and operation of the Property, including
        (without limitation), the power to collect the Rents, enforce this
        Security Instrument and, in case of a sale and deficiency, during the
        full statutory period of redemption (if any), whether there be a
        redemption or not, as well as during any further times when Borrower,
        except for the intervention of such receiver, would be entitled to
        collection of such Rents. Borrower hereby irrevocably consents to the
        appointment of a receiver or receivers. Any receiver appointed pursuant
        to the provisions of this subsection shall have the usual powers and
        duties of receivers in such matters.

                (h)     Commercial code Remedies. Lender may exercise any and
        all rights and remedies granted to a secured party upon default under
        the Uniform Commercial Code, including, without limiting the generality
        of the foregoing: (i) the right to take possession of the Personal
        Property or any part thereof, and to take such other measures as Lender
        may deem necessary for the care, protection and preservation of the
        Personal Property, and (ii) request Borrower at its expense to assemble
        the Personal Property and make it available to Lender at a convenient
        place acceptable to Lender. Any notice of sale, disposition or other
        intended action by Lender with respect to the Personal Property sent to
        Borrower in accordance with the provisions hereof at least five (5) days
        prior to such action, shall constitute commercially reasonable notice to
        Borrower.

                (i)     Apply Escrow Funds. Lender may apply any Funds (as
        defined in the Escrow Agreement) and any other sums held in escrow or
        otherwise by Lender in accordance with the terms of this Security
        Instrument or any Other Loan Document to the payment of the following
        items in any order in its uncontrolled discretion:

                        (i)     Taxes and Other Charges;

                        (ii)    Insurance Premiums;

                        (iii)   Interest on the unpaid principal balance of the
                Note;

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<PAGE>

                        (iv)    Amortization of the unpaid principal balance of
                the Note; and

                        (v)     All other sums payable pursuant to the Note,
                this Security Instrument and the Other Loan Documents, including
                without limitation advances made by Lender pursuant to the terms
                of this Security Instrument.

                (j)     Other Rights. Lender (i) may surrender the Policies
        maintained pursuant to this Security Instrument or any part thereof, and
        upon receipt shall apply the unearned premiums as a credit on the Debt,
        and, in connection therewith, Borrower hereby appoints Lender as agent
        and attorney-in-fact (which is coupled with an interest and is therefore
        irrevocable) for Borrower to collect such premiums; and (ii) may apply
        the Tax and Insurance Escrow Fund (as defined in the Escrow Agreement)
        and/or the Replacement Escrow Fund (as defined in the Escrow Agreement)
        and any other funds held by Lender toward payment of the Debt; and (iii)
        shall have and may exercise any and all other rights and remedies which
        Lender may have at law or in equity, or by virtue of any of the Loan
        Documents, or otherwise.

                (k)     Discontinuance of Remedies. In case Lender shall have
        proceeded to invoke any right, remedy, or recourse permitted under the
        Loan Documents and shall thereafter elect to discontinue or abandon same
        for any reason, Lender shall have the unqualified right so to do and, in
        such event, Borrower and Lender shall be restored to their former
        positions with respect to the Debt, the Loan Documents, the Property or
        otherwise, and the rights, remedies, recourses and powers of Lender
        shall continue as if same had never been invoked.

                (l)     Remedies Cumulative. All rights, remedies, and recourses
        of Lender granted in the Note, this Security Instrument and the Other
        Loan Documents, any other pledge of collateral, or otherwise available
        at law or equity: (i) shall be cumulative and concurrent; (ii) may be
        pursued separately, successively, or concurrently against Borrower, the
        Property, or any one or more of them, at the sole discretion of Lender;
        (iii) may be exercised as often as occasion therefor shall arise, it
        being agreed by Borrower that the exercise or failure to exercise any of
        same shall in no event be construed as a waiver or release thereof or of
        any other right, remedy, or recourse; (iv) shall be nonexclusive; (v)
        shall not be conditioned upon Lender exercising or pursuing any remedy
        in relation to the Property prior to Lender bringing suit to recover the
        Debt; and (vi) in the event Lender elects to bring suit on the Debt and
        obtains a judgment against Borrower prior to exercising any remedies in
        relation to the Property, all liens and security interests, including
        the lien of this Security Instrument, shall remain in full force and
        effect and may be exercised thereafter at Lender's option.

                (m)     Bankruptcy Acknowledgment. In the event the Property or
        any portion thereof or any interest therein becomes property of any
        bankruptcy estate or subject to any state or federal insolvency
        proceeding, then Lender shall immediately become

                                       37
<PAGE>

        entitled, in addition to all other relief to which Lender may be
        entitled under this Security Instrument, to obtain (i) an order from the
        Bankruptcy Court or other appropriate court granting immediate relief
        from the automatic stay pursuant to Section 362 of the Bankruptcy Code
        so to permit Lender to pursue its rights and remedies against Borrower
        as provided under this Security Instrument and all other rights and
        remedies of Lender at law and in equity under applicable state law, and
        (ii) an order from the Bankruptcy Court prohibiting Borrower's use of
        all "cash collateral" as defined under Section 363 of the Bankruptcy
        Code. In connection with such Bankruptcy Court orders, Borrower shall
        not contend or allege in any pleading or petition filed in any court
        proceeding that Lender does not have sufficient grounds for relief from
        the automatic stay. Any bankruptcy petition or other action taken by the
        Borrower to stay, condition, or inhibit Lender from exercising its
        remedies are hereby admitted by Borrower to be in bad faith and Borrower
        further admits that Lender would have just cause for relief from the
        automatic stay in order to take such actions authorized under state law.

                (n)     Application of Proceeds. The proceeds from any sale,
        lease, or other disposition made pursuant to this Security Instrument,
        or the proceeds from the surrender of any insurance policies pursuant
        hereto, or any Rents collected by Lender from the Property, or the Tax
        and Insurance Escrow Fund or the Replacement Escrow Fund (as defined in
        the Escrow Agreement) or proceeds from insurance which Lender elects to
        apply to the Debt pursuant to Article 3 hereof, shall be applied by
        Trustee, or by Lender, as the case may be, to the Debt in the following
        order and priority: (1) to the payment of all expenses of advertising,
        selling, and conveying the Property or part thereof, and/or prosecuting
        or otherwise collecting Rents, proceeds, premiums or other sums
        including reasonable attorneys' fees and a reasonable fee or commission
        to Trustee, not to exceed five percent of the proceeds thereof or sums
        so received; (2) to that portion, if any, of the Debt with respect to
        which no person or entity has personal or entity liability for payment
        (the "EXCULPATED PORTION"), and with respect to the Exculpated Portion
        as follows: first, to accrued but unpaid interest, second, to matured
        principal, and third, to unmatured principal in inverse order of
        maturity; (3) to the remainder of the Debt as follows: first, to the
        remaining accrued but unpaid interest, second, to the matured portion of
        principal of the Debt, and third, to prepayment of the unmatured
        portion, if any, of principal of the Debt applied to installments of
        principal in inverse order of maturity; (4) the balance, if any or to
        the extent applicable, remaining after the full and final payment of the
        Debt to the holder or beneficiary of any inferior liens covering the
        Property, if any, in order of the priority of such inferior liens
        (Trustee and Lender shall hereby be entitled to rely exclusively on a
        commitment for title insurance issued to determine such priority); and
        (5) the cash balance, if any, to the Borrower. The application of
        proceeds of sale or other proceeds as otherwise provided herein shall be
        deemed to be a payment of the Debt like any other payment.  The balance
        of the Debt remaining unpaid, if any, shall remain fully due and owing
        in accordance with the terms of the Note and the other Loan Documents.

              Section 10.2 [Intentionally Omitted]

                                       38
<PAGE>

                    ARTICLE II - INDEMNIFICATION; SUBROGATION

                Section 11.1 GENERAL INDEMNIFICATION.

                (a)     Borrower shall indemnify, defend and hold Lender and
        Trustee harmless against: (i) any and all claims for brokerage, leasing,
        finder's or similar fees which may be made relating to the Property or
        the Debt, and (ii) any and all liability, obligations, losses, damages,
        penalties, claims, actions, suits, costs and expenses (including
        Lender's reasonable attorneys' fees, together with reasonable appellate
        counsel fees, if any) of whatever kind or nature which may be asserted
        against, imposed on or incurred by Lender or Trustee in connection with
        the Debt, this Security Instrument, the Property, or any part thereof,
        or the exercise by Lender or Trustee of any rights or remedies granted
        to it under this Security Instrument; provided, however, that nothing
        herein shall be construed to obligate Borrower to indemnify, defend and
        hold harmless Lender from and against any and all liabilities,
        obligations, losses, damages, penalties, claims, actions, suits, costs
        and expenses enacted against, imposed on or incurred by Lender by reason
        of Lender's willful misconduct or gross negligence.

                (b)     If Lender is made a party defendant to any litigation or
        any claim is threatened or brought against Lender concerning the secured
        indebtedness, this Security Instrument, the Property, or any part
        thereof, or any interest therein, or the construction, maintenance,
        operation or occupancy or use thereof, then Lender shall notify Borrower
        of such litigation or claim and Borrower shall indemnify, defend and
        hold Lender harmless from and against all liability by reason of said
        litigation or claims, including reasonable attorneys' fees (together
        with reasonable appellate counsel fees, if any). The right to such
        attorneys' fees (together with reasonable appellate counsel fees, if
        any) and expenses incurred by Lender in any such litigation or claim of
        the type described in this Subsection 11.1(b), whether or not any such
        litigation or claim is prosecuted to judgment, shall be deemed to have
        accrued on the commencement of such claim or action and shall be
        enforceable whether or not such claim or action is prosecuted to
        judgment. If Lender commences an action against Borrower to enforce any
        of the terms hereof or to prosecute any breach by Borrower of any of the
        terms hereof or to recover any sum secured hereby, Borrower shall pay to
        Lender its reasonable attorneys' fees (together with reasonable
        appellate counsel fees, if any) and expenses. If Borrower breaches any
        term of this Security Instrument, Lender may engage the services of an
        attorney or attorneys to protect its rights hereunder, and in the event
        of such engagement following any breach by Borrower, Borrower shall pay
        Lender reasonable attorneys' fees (together with reasonable appellate
        counsel fees, if any) and expenses incurred by Lender, whether or not an
        action is actually commenced against Borrower by reason of such breach.
        All references to "ATTORNEYS" in this Subsection 11.1(b) and elsewhere
        in this Security Instrument shall include without limitation any
        attorney or law firm engaged by Lender and Lender's in-house counsel,
        and all references to "FEES AND EXPENSES" in this Subsection 11.1(b) and
        elsewhere in this Security Instrument shall include without limitation
        any fees of such

                                       39
<PAGE>

        attorney or law firm and any allocation charges and allocation costs of
        Lender's in-house counsel.

                (c)     A waiver of subrogation shall be obtained by Borrower
        from its insurance carrier and, consequently, Borrower waives any and
        all right to claim or recover against Lender, its officers, employees,
        agents and representatives, for loss of or damage to Borrower, the
        Property, Borrower's property or the property of others under Borrower's
        control from any cause insured against or required to be insured against
        by the provisions of this Security Instrument.

        Section 11.2 ENVIRONMENTAL INDEMNIFICATION. Borrower shall, at its sole
cost and expense, protect, defend, indemnify, release and hold harmless the
Indemnified Parties from and against any and all Losses (as hereinafter defined)
imposed upon or incurred by or asserted against any Indemnified Parties (other
than those arising solely from a state of facts that first came into existence
after Lender acquired title to the Property through foreclosure or a deed in
lieu thereof), and directly or indirectly arising out of or in any way relating
to any one or more of the following: (a) any presence of any Hazardous
Substances (as hereinafter defined) in, on, above, or under the Property; (b)
any past, present or future Release (as hereinafter defined) of Hazardous
Substances in, on, above, under or from the Property; (c) any activity by
Borrower, any person or entity affiliated with Borrower, and any tenant or other
user of the Property in connection with any actual, proposed or threatened use,
treatment, storage, holding, existence, disposition or other Release,
generation, production, manufacturing, processing, refining, control,
management, abatement, removal, handling, transfer or transportation to or from
the Property of any Hazardous Substances at any time located in, under, on or
above the Property; (d) any activity by Borrower, any person or entity
affiliated with Borrower, and any tenant or other user of the Property in
connection with any actual or proposed Remediation (as hereinafter defined) of
any Hazardous Substances at any time located in, under, on or above the
Property, whether or not such Remediation is voluntary or pursuant to court or
administrative order, including but not limited to any removal, remedial or
corrective action; (e) any past, present or threatened non-compliance or
violations of any Environmental Law (as hereinafter defined) (or permits issued
pursuant to any Environmental Law) in connection with the Property or operations
thereon, including but not limited to any failure by Borrower, any person or
entity affiliated with Borrower, and any tenant or other user of the Property to
comply with any order of any governmental authority in connection with any
Environmental Laws; (f) the imposition, recording or filing or the future
imposition, recording or filing of any Environmental Lien (as hereinafter
defined) encumbering the Property; (g) any administrative processes or
proceedings or judicial proceedings in any way connected with any matter
addressed in this Section 11.2; (h) any misrepresentation or inaccuracy in any
representation or warranty or material breach or failure to perform any
covenants or other obligations under the Environmental Indemnity of even date
executed by Borrower and Indemnitor; and (i) any diminution in value of the
Property in any way connected with any occurrence or other matter referred to in
this Section 11.2.

                                       40
<PAGE>

        The term "ENVIRONMENTAL LAW" means any present and future federal, state
and local laws, statutes, ordinances, rules, regulations and the like, as well
as common law, relating to protection of human health or the environment, in
both cases relating to Hazardous Substances or relating to liability for or
costs of Remediation. The term "ENVIRONMENTAL LAW" includes, but is not limited
to, the following statutes, as amended, any successor thereto, and any
regulations promulgated pursuant thereto, and any state or local statutes,
ordinances, rules, regulations and the like addressing similar issues: the
Comprehensive Environmental Response, Compensation and Liability Act; the
Emergency Planning and Community Right-to-Know Act; the Hazardous Substances
Transportation Act; the Resource Conservation and Recovery Act (including but
not limited to Subtitle I relating to underground storage tanks); the Solid
Waste Disposal Act; the Clean Water Act; the Clean Air Act; the Toxic Substances
Control Act; the Safe Drinking Water Act; the Occupational Safety and Health
Act; the Federal Water Pollution Control Act; the Federal Insecticide, Fungicide
and Rodenticide Act; the Endangered Species Act; the National Environmental
Policy Act; and the River and Harbors Appropriation Act. The term "ENVIRONMENTAL
Law" also includes, but is not limited to, any present and future federal, state
and local laws, statutes, ordinances, rules, regulations and the like, as well
as common law: conditioning transfer of property upon a negative declaration or
other approval of a governmental authority of the environmental condition of the
Property; requiring notification or disclosure of Releases of Hazardous
Substances or other environmental condition of the Property to any governmental
authority or other person or entity, whether or not in connection with transfer
of title to or interest in property; imposing conditions or requirements in
connection with permits or other authorization for lawful activity; relating to
nuisance, trespass or other causes of action related to the Property; and
relating to wrongful death, personal injury, or property or other damage in
connection with any physical condition or use of the Property.

        The term "ENVIRONMENTAL LIEN" includes but is not limited to any lien or
other encumbrance imposed pursuant to Environmental Law, whether due to any act
or omission of Borrower or any other person or entity.

        The term "HAZARDOUS SUBSTANCES" includes but is not limited to any and
all substances (whether solid, liquid or gas) defined, listed, or otherwise
classified as pollutants, hazardous wastes, hazardous substances, hazardous
materials, extremely hazardous wastes, or words of similar meaning or regulatory
effect under any present or future Environmental Laws or that may have a
negative impact on human health or the environment, including but not limited to
petroleum and petroleum products, asbestos and asbestos-containing materials,
polychlorinated biphenyls, lead, lead-based paints, radon, radioactive
materials, flammables and explosives.

        The term "INDEMNIFIED PARTIES" includes but is not limited to Lender,
any person or entity who is or will have been involved in originating the Loan
evidenced by the Note, any person or entity who is or will have been involved in
servicing the Loan, any person or entity in whose name the encumbrance created
by this Security Instrument is or will have been recorded, persons and entities
who may hold or acquire or will have held a full or partial interest in the Loan
(including but not limited to those who may acquire any interest in Securities,
as well as

                                       41
<PAGE>

custodians, trustees and other fiduciaries who hold or have held a full or
partial interest in the Loan for the benefit of third parties), as well as the
respective directors, officers, shareholders, partners, employees, agents,
servants, representatives, contractors, subcontractors, affiliates,
subsidiaries, participants, successors and assign of any and all of the
foregoing (including but not limited to any other person or entity who holds or
acquires or will have held a participation or other full or partial interest in
the Loan or the Property, whether during the term of the Loan or as part of or
following foreclosure pursuant to the Loan) and including but not limited to any
successors by merger, consolidation or acquisition of all or a substantial part
of Lender's assets and business.

        The term "LOSSES" includes but is not limited to any claims, suits,
liabilities (including but not limited to strict liabilities), administrative or
judicial actions or proceedings, obligations, debts, damages, losses, costs,
expenses, diminutions in value, fines, penalties, charges, fees, expenses, costs
of Remediation (whether or not performed voluntarily), judgments, award, amounts
paid in settlement, foreseeable and unforeseeable consequential damages,
litigation costs, attorneys' fees, engineer's fees, environmental consultants'
fees and investigation costs (including but not limited to costs for sampling,
testing and analysis of soil, water, air, building materials, and other
materials and substances whether solid, liquid or gas), of whatever kind or
nature, and whether or not incurred in connection with any judicial or
administrative proceedings.

        The term "RELEASE" with respect to any Hazardous Substance includes but
is not limited to any release, deposit, discharge, emission, leaking, leaching,
spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping,
dumping, disposing or other movement of Hazardous Substances.

        The term "REMEDIATION" includes but is not limited to any response,
remedial, removal, or corrective action; any activity to cleanup, detoxify,
decontaminate, contain or otherwise remediate any Hazardous Substance; any
actions to prevent, cure or mitigate any Release of any Hazardous Substance; any
action to comply with any Environmental Laws or with any permits issued pursuant
thereto; any inspection, investigation, study, monitoring, assessment, audit,
sampling and testing, laboratory or other analysis, or evaluation relating to
any Hazardous Substances or to anything referred to in this Article 11.

        Section 11.5 EXCLUDED OCCURRENCES

                Notwithstanding any provision of this Security Instrument to the
contrary, where after the date of this Security Instrument there shall occur an
event (including, without limitation, a Release) for which Borrower would have
an obligation under this Security Instrument to indemnify, defend, protect or
hold harmless the Indemnified Parties, then Borrower shall have no such
obligation to indemnify, defend, protect, release and hold harmless the
Indemnified Parties from and against Losses for acts or omissions the cause(s)
of which is outside or beyond the control of Borrower. For purposes of this
Section 11.3, Borrower shall be deemed and construed to have control over the
acts and omissions of all tenants and subtenants of the

                                       42
<PAGE>

Property and each of their respective agents, vendors, guests, invitees,
licensees, servants, employees, officers, directors, representatives,
contractors, subcontractors, affiliates and subsidiaries.

        Section 11.4 DUTY TO DEFEND AND ATTORNEYS AND OTHER FEES AND EXPENSES.
Upon written request by any Indemnified Party, Borrower shall defend such
Indemnified Party (if requested by any Indemnified Party, in the name of the
Indemnified Party) by attorneys and other professionals approved by the
Indemnified Parties. Notwithstanding the foregoing, any Indemnified Parties may,
in their sole and absolute discretion, engage their own attorneys and other
professionals to defend or assist them, and, at the option of Indemnified
Parties, their attorneys shall control the resolution of claim or proceeding.
Upon demand, Borrower shall pay or, in the sole and absolute discretion of the
Indemnified Parties, reimburse, the Indemnified Parties for the payment of
reasonable fees and disbursements of attorneys, engineers, environmental
consultants, laboratories and other professionals in connection therewith.

        Section 11.5 SURVIVAL OF INDEMNITIES. Notwithstanding any provision of
this Security Instrument or any other Loan Document to the contrary, the
provisions of Section 11.1 and Section 11.2, and Borrower's obligations
thereunder, shall survive (a) the repayment of the Note, (b) the foreclosure of
this Security Instrument, and (c) the release (or reconveyance, as applicable)
of the lien of this Security Instrument.

                         ARTICLE 12 - SECURITY AGREEMENT

        Section 12.1 SECURITY AGREEMENT. This Security Instrument is both a real
property mortgage and a "security agreement" within the meaning of the Uniform
Commercial Code. The Property includes both real and personal property and all
other rights and interests, whether tangible or intangible in nature, of
Borrower in the Property. Borrower by executing and delivering this Security
Instrument has granted and hereby grants to Lender, as security for the
Obligations, a security interest in the Property to the full extent that the
Property may be subject to the Uniform Commercial Code (said portion of the
Property so subject to the Uniform Commercial Code being called in this
paragraph the "COLLATERAL"). Borrower hereby agrees with Lender to execute and
deliver to Lender, in form and substance satisfactory to Lender, such financing
statements, continuation statements, other uniform commercial code forms and
shall pay all expenses and fees in connection with the filing and recording
thereof, and such further assurances as Lender may from time to time, reasonably
consider necessary to create, perfect, and preserve Lender's security interest
herein granted. This Security Instrument shall also constitute a "fixture
filing" for the purposes of the Uniform Commercial Code. All or part of the
Property are or are to become fixtures. Information concerning the security
interest herein granted may be obtained from the parties at the addresses of the
parties set forth in the first paragraph of this Security Instrument. If an
Event of Default shall occur, Lender, in addition to any other rights and
remedies which they may have, shall have and may exercise immediately and
without demand, any and all rights and remedies granted to a secured party upon
default under the Uniform Commercial Code, including, without limiting the
generality of the foregoing,

                                       43
<PAGE>

the right to take possession of the Collateral or any part thereof, and to take
such other measures as Lender may deem necessary for the care, protection and
preservation of the Collateral. Upon request or demand of Lender, Borrower shall
at its expense assemble the Collateral and make it available to Lender at a
convenient place acceptable to Lender. Borrower shall pay to Lender on demand
any and all expenses, including legal expenses and attorneys' fees, incurred or
paid by Lender in protecting the interest in the Collateral and in enforcing the
rights hereunder with respect to the Collateral. Any notice of sale, disposition
or other intended action by Lender with respect to the Collateral sent to
Borrower in accordance with the provisions hereof at least five (5) days prior
to such action, shall constitute commercially reasonable notice to Borrower. The
proceeds of any disposition of the Collateral, or any part thereof, may be
applied by Lender to the payment of the Obligations in such priority and
proportions as Lender in its discretion shall deem proper. In the event of any
change in name, identity or structure of any Borrower, such Borrower shall
notify Lender thereof, and promptly after request shall execute, file and record
such Uniform Commercial Code forms as are necessary to maintain the priority of
Lender's lien upon and security interest in the Collateral, and shall pay all
expenses and fees in connection with the filing and recording thereof. If Lender
shall require the filing or recording of additional Uniform Commercial Code
forms or continuation statements, Borrower shall, promptly after request,
execute, file and record such Uniform Commercial Code forms or continuation
statements as Lender shall deem necessary, and shall pay all expenses and fees
in connection with the filing and recording thereof it being understood and
agreed, however, that no such additional documents shall increase Borrower's
obligations under the Note, this Security Instrument and the Other Loan
Documents. Borrower hereby irrevocably appoints Lender as its attorney-in-fact,
coupled with an interest, to file with the appropriate public office on its
behalf any financing or other statements signed only by Lender, as Borrower's
attorney-in-fact, in connection with the Collateral covered by this Security
Instrument. Notwithstanding the foregoing, Borrower shall appear and defend in
any action or proceeding which affects or purports to affect the Property and
any interest or right therein, whether such proceeding effects title or any
other rights in the Property (and in conjunction therewith, Borrower shall fully
cooperate with Lender in the event Lender is a party to such action or
proceeding).

                              ARTICLE 13 - WAIVERS

        Section 13.1 MARSHALLING AND OTHER MATTERS. Borrower hereby waives, to
the extent permitted by law, the benefit of all appraisement, valuation, stay,
extension, reinstatement and redemption laws now or hereafter in force and all
rights of marshalling in the event of any sale hereunder of the Property or any
part thereof or any interest therein. Further, Borrower hereby expressly waives
any and all rights of redemption from sale under any order or decree of
foreclosure of this Security Instrument on behalf of Borrower, and on behalf of
each and every person acquiring any interest in or title to the Property
subsequent to the date of this Security Instrument and on behalf of all persons
to the extent permitted by applicable law.

        Section 13.2 WAIVER OF NOTICE. Borrower shall not be entitled to any
notices of any nature whatsoever from Lender except with respect to matters for
which this Security

                                       44
<PAGE>

Instrument specifically and expressly provides for the giving of notice by
Lender to Borrower and except with respect to matters for which Lender is
required by applicable law to give notice, and Borrower hereby expressly waives
the right to receive any notice from Lender with respect to any matter for which
this Security Instrument does not specifically and expressly provide for the
giving of notice by Lender to Borrower.

        Section 13.3 SOLE DISCRETION OF LENDER. Wherever pursuant to this
Security Instrument Lender exercises any right given to it to approve or
disapprove, or any arrangement or term is to be satisfactory to Lender, the
decision of Lender to approve or disapprove or to decide that arrangements or
terms are satisfactory or not satisfactory shall be in the sole discretion of
Lender and shall be final and conclusive, except as may be otherwise expressly
and specifically provided herein.

        Section 13.4 SURVIVAL. The indemnifications made pursuant to Article 11,
shall continue indefinitely in full force and effect and shall survive and shall
in no way be impaired by: any satisfaction or other termination of this Security
Instrument, any assignment or other transfer of all or any portion of this
Security Instrument or Lender's interest in the Property (but, in such case,
shall benefit both Indemnified Parties and any assignee or transferee), any
exercise of Lender's rights and remedies pursuant hereto including but not
limited to foreclosure or acceptance of a deed in lieu of foreclosure, any
exercise of any rights and remedies pursuant to the Note or any of the Other
Loan Documents, any transfer of all or any portion of the Property (whether by
Borrower or by Lender following foreclosure or acceptance of a deed in lieu of
foreclosure or at any other time), any amendment to this Security Instrument,
the Note or the Other Loan Documents, and any act or omission that might
otherwise be construed as a release or discharge of Borrower from the
obligations pursuant hereto.

        Section 13.5 WAIVER OF TRIAL BY JURY.

        BORROWER HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE
OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT
ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS SECURITY
INSTRUMENT, THE NOTE OR THE OTHER LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR
OTHER ACTION ARISING IN CONNECTION THEREWITH INCLUDING, BUT NOT LIMITED TO THOSE
RELATING TO (A) ALLEGATIONS THAT A PARTNERSHIP EXISTS BETWEEN LENDER AND
BORROWER; (B) USURY OR PENALTIES OR DAMAGES THEREFOR; (C) ALLEGATIONS OF
UNCONSCIONABLE ACTS, DECEPTIVE TRADE PRACTICE, LACK OF GOOD FAITH OR FAIR
DEALING, LACK OF COMMERCIAL REASONABLENESS, OR SPECIAL RELATIONSHIPS (SUCH AS
FIDUCIARY, TRUST OR CONFIDENTIAL RELATIONSHIP); (D) ALLEGATIONS OF DOMINION,
CONTROL, ALTER EGO, INSTRUMENTALITY, FRAUD, REAL ESTATE FRAUD,
MISREPRESENTATION, DURESS, COERCION, UNDUE INFLUENCE, INTERFERENCE OR
NEGLIGENCE; (E) ALLEGATIONS OF TORTIOUS INTERFERENCE WITH PRESENT OR

                                       45
<PAGE>

PROSPECTIVE BUSINESS RELATIONSHIPS OR OF ANTITRUST; OR (F) SLANDER, LIBEL OR
DAMAGE TO REPUTATION. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY
AND VOLUNTARILY BY BORROWER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH
INSTANCE AND EACH ISSUE AS TO WHICH TILE RIGHT TO A TRIAL BY JURY WOULD
OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH
IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER

        Section 13.6 WAIVER OF AUTOMATIC OR SUPPLEMENTAL STAY. In the event of
the filing of any voluntary or involuntary petition under the Bankruptcy Code by
or against Borrower (other than an involuntary petition filed by or joined in by
Lender), the Borrower shall not assert, or request any other party to assert,
that the automatic stay under SECTION 362 of the Bankruptcy Code shall operate
or be interpreted to stay, interdict, condition, reduce or inhibit the ability
of Lender to enforce any rights it has by virtue of this Security Instrument, or
any other rights that Lender has, whether now or hereafter acquired, against any
guarantor of the Debt. Further, Borrower shall not seek a supplemental stay or
any other relief, whether injunctive or otherwise, pursuant to SECTION 105 of
the Bankruptcy Code or any other provision therein to stay, interdict,
condition, reduce or inhibit the ability of Lender to enforce any rights it has
by virtue of this Security Instrument against any guarantor of the Debt. The
waivers contained in this paragraph are a material inducement to Lender's
willingness to enter into this Security Instrument and Borrower acknowledges and
agrees that no grounds exist for equitable relief which would bar, delay or
impede the exercise by Lender of Lender's rights and remedies against Borrower
or any guarantor of the Debt.

                              ARTICLE 14 - NOTICES

        Section 14.1 NOTICES. All notices or other written communications
hereunder shall be deemed to have been properly given (i) upon delivery, if
delivered in person or by facsimile transmission with receipt acknowledged, (ii)
one (1) Business Day after having been deposited for overnight delivery with any
reputable overnight courier service, or (iii) three (3) Business Days after
having been deposited in any post office or mail depository regularly maintained
by the U.S. Postal Service and sent by registered or certified mail, postage
prepaid, addressed as follows:

If to Borrower:            4212 Techcourt, LLC
                           c/o First Potomac Realty Investment LP
                           7200 Wisconsin Avenue, Suite 310
                           Bethesda, Maryland 20814
                           Attention: Kyung Rhee
                           Facsimile: (301) 654-7675

With a copy to:            Lerch, Early & Brewer
                           3 Bethesda Metro Center, Suite 380

                                       46
<PAGE>

                           Bethesda, Maryland 20814
                           Attention: Charles T. Hathway, Esq.
                           Facsimile: (301) 986-0332

If to Trustee:             Richard W. Klein, Jr.
                           do Tri-State Commercial Closings, Inc.
                           1150 18th Street, N.W.
                           Washington, D.C. 20036
                           Facsimile: (202)

If to Lender:              Morgan Guaranty Trust Company of New York
                           60 Wall Street
                           New York, New York 10260-0060
                           Attention: Nancy Alto, Commercial Mortgage Finance
                                         Group Loan Servicing
                           Facsimile No.: (212) 648-5274

With a copy to:            Womble Carlyle Sandridge & Rice, PLLC
                           1120 Nineteenth Street, Suite 800
                           Washington, D.C. 20036
                           Attention: Elizabeth Lee, Esq.
                           Facsimile: (202) 261-0037

or addressed as such party may from time to time designate by written notice to
the other parties. For purposes of this subsection, the term "BUSINESS DAY"
shall mean a day on which commercial banks are not authorized or required by law
to close in New York, New York.

        Any party by notice to the other parties may designate additional or
different addresses for subsequent notices or communications.

                           ARTICLE 15- APPLICABLE LAW

        Section 15.1 GOVERNING LAW; JURISDICTION. This Security Instrument shall
be governed by and construed in accordance with applicable federal law and the
laws of the Commonwealth of Virginia, without reference or giving effect to any
choice of law doctrine. Borrower hereby irrevocably submits to the jurisdiction
of any court of competent jurisdiction located in the Commonwealth of Virginia
in connection with any proceeding arising out of or relating to this Security
Instrument.

        Section 15.2 USURY LAWS. This Security Instrument and the Note are
subject to the express condition that at no time shall Borrower be obligated or
required to pay interest on the Debt at a rate which could subject the holder of
the Note to either civil or criminal liability as a

                                       47
<PAGE>

result of being in excess of the maximum interest rate which Borrower is
permitted by applicable law to contract or agree to pay. If by the terms of this
Security Instrument or the Note, Borrower is at any time required or obligated
to pay interest on the Debt at a rate in excess of such maximum rate, the rate
of interest under the Security Instrument and the Note shall be deemed to be
immediately reduced to such maximum rate and the interest payable shall be
computed at such maximum rate and all prior interest payments in excess of such
maximum rate shall be applied and shall be deemed to have been payments in
reduction of the principal balance of the Note. All sums paid or agreed to be
paid to Lender for the use, forbearance, or detention of the Debt shall, to the
extent permitted by applicable law, be amortized, prorated, allocated, and
spread throughout the full stated term of the Note until payment in frill so
that the rate or amount of interest on account of the Debt does not exceed the
maximum lawful rate of interest from time to time in effect and applicable to
the Debt for so long as the Debt is outstanding.

        Section 15.3 PROVISIONS SUBJECT TO APPLICABLE LAW. All rights, powers
and remedies provided in this Security Instrument may be exercised only to the
extent that the exercise thereof does not violate any applicable provisions of
law and are intended to be limited to the extent necessary so that they will not
render this Security Instrument invalid, unenforceable or not entitled to be
recorded, registered or filed under the provisions of any applicable law. If any
term of this Security Instrument or any application thereof shall be invalid or
unenforceable, the remainder of this Security Instrument and any other
application of the term shall not be affected thereby.

                          ARTICLE 16 - SECONDARY MARKET

        Section 16.1 TRANSFER OF LOAN. Lender may, at any time, sell, transfer
or assign the Note, this Security Instrument and the Other Loan Documents, and
any or all servicing rights with respect thereto, or grant participations
therein 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"). Lender may forward to each purchaser,
transferee, assignee, servicer, participant, investor in such Securities or any
Rating Agency (as hereinafter defined) rating such Securities (collectively, the
"INVESTOR") and each prospective Investor, all documents and information which
Lender now has or may hereafter acquire relating to the Debt and to Borrower,
any Guarantor, any Indemnitor and the Property, whether furnished by Borrower,
any Guarantor, any Indemnitor or otherwise, as Lender determines necessary or
desirable. The term "RATING AGENCY" shall mean each statistical rating agency
that has assigned a rating to the Securities.

                               ARTICLE 17 - COSTS

          Section 17.1 PERFORMANCE AT BORROWER'S EXPENSE. Borrower acknowledges
and confirms that Lender shall impose certain administrative processing and/or
commitment fees in connection with (a) the extension, renewal, modification,
amendment and termination (excluding the scheduled maturity of the Note) of its
loans, (b) the release or substitution of collateral therefor, or (c) obtaining
certain consents, waivers and approvals with

                                       48
<PAGE>

respect to the Property (the occurrence of any of the above shall be called an
"Event"). Borrower hereby acknowledges and agrees to pay, immediately, upon
demand, all such fees (as the same may be increased or decreased from time to
time), and any additional fees of a similar type Or nature which may be imposed
by Lender from time to time, upon the occurrence of any Event.

        Section 17.2 ATTORNEY'S FEES FOR ENFORCEMENT. (a) Borrower shall pay all
legal fees incurred by Lender in connection with (i) the preparation of the
Note, this Security Instrument and the Other Loan Documents and (ii) the items
set forth in Section 17.1 above, and (b) Borrower shall pay to Lender on demand
any and all expenses, including legal expenses and attorneys' fees, incurred or
paid by Lender in protecting its interest in the Property or Personal Property
and/or collecting any amount payable or in enforcing its rights hereunder with
respect to the Property or Personal Property, whether or not any legal
proceeding is commenced hereunder or thereunder and whether or not any default
or Event of Default shall have occurred and is continuing, together with
interest thereon at the Default Rate from the date of payment or incurring by
Lender until paid by Borrower.

                            ARTICLE 18 - DEFINITIONS

        Section 18.1 GENERAL DEFINITIONS. Unless the context clearly indicates a
contrary intent or unless otherwise specifically provided herein, words used in
this Security Instrument may be used interchangeably in singular or plural form
and the word "BORROWER" shall mean "each Borrower and any subsequent owner or
owners of the Property or any part thereof or any interest therein," the word
"LENDER" shall mean "Lender and any subsequent holder of the Note," the word
"NOTE" shall mean "the Note and any other evidence of indebtedness secured by
this Security Instrument," the word "PERSON" shall include an individual,
corporation, partnership, trust, unincorporated association, government,
governmental authority, and any other entity, the word "PROPERTY" shall include
any portion of the Property and any interest therein, and the phrases
"ATTORNEYS' FEES," "LEGAL FEES" and "COUNSEL FEES" shall include any and all
attorneys', paralegal and law clerk fees and disbursements, including, but not
limited to, fees and disbursements at the pre-trial, trial and appellate levels
incurred or paid by Lender in protecting its interest in the Property, the
Leases and the Rents and enforcing its rights hereunder.

                      ARTICLE 19 - MISCELLANEOUS PROVISIONS

        Section 19.1 NO ORAL CHANGE. This Security Instrument, the Note, and the
Other Loan Documents and any provisions hereof or thereof, may not be modified,
amended, waived, extended, changed, discharged or terminated orally or by any
act or failure to act on the part of Borrower or Lender, but only by an
agreement in writing signed by the party against whom enforcement of any
modification, amendment, waiver, extension, change, discharge or termination is
sought.

                                       49
<PAGE>

        Section 19.2 LIABILITY. If Borrower consists of more than one person,
the obligations and liabilities of each such person hereunder shall be joint and
several. This Security Instrument shall be binding upon and inure to the benefit
of Borrower and Lender and their respective successors and assigns forever.

        Section 19.3 INAPPLICABLE PROVISIONS: If any term, covenant or condition
of the Note or this Security Instrument is held to be invalid, illegal or
unenforceable in any respect, the Note and this Security Instrument shall be
construed without such provision.

        Section 19.4 HEADINGS, ETC. The headings and captions of various
Sections of this Security Instrument are for convenience of reference only and
are not to be construed as defining or limiting, in any way, the scope or intent
of the provisions hereof.

        Section 19.5 DUPLICATE ORIGINALS; COUNTERPARTS. This Security Instrument
may be executed in any number of duplicate originals and each duplicate original
shall be deemed to be an original. This Security Instrument may be executed in
several counterparts, each of which counterparts shall be deemed an original
instrument and all of which together shall constitute a single Security
Instrument. The failure of any party hereto to execute this Security Instrument,
or any counterpart hereof, shall not relieve the other signatories from their
obligations hereunder.

        Section 19.6 NUMBER AND GENDER. Whenever the context may require, any
pronouns used herein shall include the corresponding masculine, feminine or
neuter forms, and the singular form of nouns and pronouns shall include the
plural and vice versa.

        Section 19.7 SUBROGATION. If any or all of the proceeds of the Note have
been used to extinguish, extend or renew any indebtedness heretofore existing
against the Property, then, to the extent of the funds so used, Lender shall be
subrogated to all of the rights, claims, liens, titles, and interests existing
against the Property heretofore held by, or in favor of, the holder of such
indebtedness and such former rights, claims, liens, titles, and interests, if
any, are not waived but rather are continued in full force and effect in favor
of Lender and are merged with the lien and security interest created herein as
cumulative security for the repayment of the Debt, the performance and discharge
of Borrower's obligations hereunder, under the Note and the Other Loan Documents
and the performance and discharge of the Other Obligations.

        Section 19.8 ENTIRE AGREEMENT. The Note, this Security Instrument and
the Other Loan Documents constitute the entire understanding and agreement
between Borrower and Lender with respect to the transactions arising in
connection with the Debt and supersede all prior written or oral understandings
and agreements between Borrower and Lender with respect thereto. Borrower hereby
acknowledges that, except as incorporated in writing in the Note, this Security
Instrument and the Other Loan Documents, there are not, and were not, and no
persons are or were authorized by Lender to make, any representations,
understandings, stipulations, agreements or promises, oral or written, with
respect to the transaction which is the subject of the Note, this Security
Instrument and the Other Loan Documents.

                                       50
<PAGE>

                              ARTICLE 20 - TRUSTEE

        Trustee may resign by the giving of notice of such resignation in
writing or verbally to Lender. If Trustee shall die, resign, or become
disqualified from acting in the execution of this trust, or if, for any reason,
Lender shall prefer to appoint a substitute trustee or multiple substitute
trustees, or successive substitute trustees or successive multiple substitute
trustees, to act instead of the aforenamed Trustee, Lender shall have full power
to appoint a substitute trustee (or, if preferred, multiple substitute trustees)
in succession who shall succeed (and if multiple substitute trustees are
appointed, each of such multiple substitute trustees shall succeed) to all the
estates, rights, powers, and duties of the aforenamed Trustee. Such appointment
may be executed by any authorized agent of Lender, and if such Lender be a
corporation and such appointment be executed in its behalf by any officer of
such corporation, such appointment shall be conclusively presumed to be executed
with authority and shall be valid and sufficient without proof of any action by
the board of directors or any superior officer of the corporation. Borrower
hereby ratifies and confirms any and all acts which the aforenamed Trustee, or
his successor or successors in this trust, shall do lawfully by virtue hereof.
If multiple substitute Trustees are appointed, each of such multiple substitute
Trustees shall be empowered and authorized to act alone without the necessity of
the joinder of the other multiple substitute trustees, whenever any action or
undertaking of such substitute trustees is requested or required under or
pursuant to this Security Instrument or applicable law. Any substitute Trustee
appointed pursuant to any of the provisions hereof shall, without any further
act, deed, or conveyance, become vested with all the estates, properties,
rights, powers, and trusts of its or his predecessor in the rights hereunder
with like effect as if originally named as Trustee herein; but nevertheless,
upon the written request of Lender or of the substitute Trustee, the Trustee
ceasing to act shall execute and deliver any instrument transferring to such
substitute Trustee, upon the trusts herein expressed, all the estates,
properties, rights, powers, and trusts of the Trustee so ceasing to act, and
shall duly assign, transfer and deliver any of the property and moneys held by
such Trustee to the substitute Trustee so appointed in the Trustee's place. No
fees or expenses shall be payable to Trustee, except in connection with a
foreclosure of the Property or any part thereof or in connection with the
release of the Property following payment in full of the Debt.

             ARTICLE 21- SPECIAL COMMONWEALTH OF VIRGINIA PROVISIONS

        Section 21.1 Short Form Incorporation. The following short form
provisions are incorporated into this Deed of Trust and Security Agreement by
reference as permitted by Section 55-60 and Section 55-59.2 of the Code of
Virginia as amended (the "CODE"):

                (1)     Exemptions waived.

                (2)     Subject to all upon default.

                                       51
<PAGE>

                (3)     Renewal, extension or reinstatement permitted.

                (4)     Substitution of trustee permitted.

                (5)     Any trustee may act.

                (6)     Advertisement required: Once a week for two weeks.

                                       52
<PAGE>

        Section 21.2 Powers and Duties of Trustee. The Trustee shall have all
powers and duties granted and imposed under Code Sections 55-59 through 55-59.4,
inclusive. Any trustee's sale hereunder shall be held, and all proceeds thereof
shall be disbursed, in accordance with the provisions of Code Section 55-59.4.

        Section 21.3 Commercial Loan. The Borrower warrants and represents that
the loan made by the Lender to the Borrower in accordance with the Note and the
other Loan Documents is made for the acquisition or conduct of a business or
investment within the meaning ascribed to those terms under 6.1-330.75 of the
Code.

        Section 21.4 Limitation on Recourse. Borrower's liability under this
Security Instrument shall be limited as set forth in Section 10 of the Note, the
terms of which are incorporated herein by reference.

                                       53
<PAGE>

        IN WITNESS WHEREOF, THIS SECURITY INSTRUMENT has been executed by
Borrower the day and year first above written.

                                 BORROWER:

                                 4212 TECHCOURT, LLC,
                                 a Virginia limited liability company

                                 By: First Potomac Realty Investment Limited
                                     Partnership, a Delaware limited partnership
                                     Its Sole Member

                                     By: First Potomac Realty Investment Trust,
                                         Inc. a Maryland corporation
                                         Its Sole General Partner

                                         By: [SIG]
                                            ------------------------------------
                                         Name:  Douglas Donatelli
                                         Title: President

[Corporate Seal]

                                       54
<PAGE>

State of Maryland    )
                     )
County of Montgomery )

        Before me, a Notary Public in a for the jurisdiction aforesaid,
personally appeared this date, Douglas Donatelli, personally well known (or
satisfactorily proven) to me to be the person whose name is subscribed to the
foregoing and annexed Instrument, who, being by me first duly sworn,
acknowledged that he is the President of First Potomac Realty Investment Trust,
Inc., a Maryland corporation, which corporation is the sole general partner of
First Potomac Realty Investment Limited Partnership, a Delaware limited
partnership, which partnership is the sole member of 4212 TECHCOURT, LLC, a
Virginia limited liability company, which entity is a party to the foregoing and
annexed Deed of Trust and Security Agreement, and that he, being duly authorized
so to do, executed said Instrument on behalf of said corporation as its free act
and deed and the free act and deed of said partnership and limited liability
company for the uses and purposes therein contained.

        WITNESS my hand and official seal this 19th day of May, 2000.

                                [SIG]
                                ------------------------------
                                Notary Public

[Notarial Seal]

                       My commission expires:   12/01/02
                                              -------------------

                                       55
<PAGE>

                                    EXHIBIT A

                              (Description of Land)

        All of that certain lot, piece or parcel of land, with the buildings and
improvements thereon, situate, lying and being described as follows:

        All that certain lot or parcel of land situate and lying in Fairfax
        County, Virginia, and more particularly described as follows:

        Parcel 4-B, Lafayette Business Center, as the same is shown on a plat
        attached to the Deed of Subdivision and Easement recorded in Deed Book
        7612 at page 1070, among the land records of Fairfax County, Virginia.

        Tax Map No.: 033-2-04-0004-B

        TOGETHER WITH all rights, title and interest in Ingress and egress
        easement created by Deed of Subdivision and Easement recorded in Deed
        Book 7612 at page 1070.

        ALSO TOGETHER WITH all rights, title and interest in reciprocal easement
        recorded in Deed Book 7612 at page 1084, as amended in Deed Book 8710 at
        page 1070.

        AND BEING part of the property acquired by First Potomac Realty
        Investment Limited Partnership, a Delaware limited partnership, by Deed
        of Bargain and Sale from Sennett Real Estate Company, a Virginia
        corporation (formerly Sennett Enterprises, Inc., a Virginia corporation)
        dated October 15, 1998 and recorded October 19, 1998 in Deed Book 10612
        at page 450.

        and commonly known as 4212 Technology Court, Chantilly, Virginia.

                                       56

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