ACADIA REALTY TRUST
PROJECT LOAN AGREEMENT
<DOCUMENT>
<TYPE>EX-10.73
<SEQUENCE>8
<FILENAME>w50363exv10w73.htm
<DESCRIPTION>PROJECT LOAN AGREEMENT
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.73
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROJECT LOAN AGREEMENT</B>
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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Dated as of December&nbsp;26, 2007

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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Between

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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ACADIA ATLANTIC AVENUE LLC</B>,<BR>
as Borrower

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">and

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>BEAR STEARNS COMMERCIAL MORTGAGE, INC.</B>,<BR>
as Lender

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>MERS MIN: 8000101-0000007166-1</B>

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<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>TABLE OF CONTENTS</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="81%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
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<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:15px; text-indent:-15px">ARTICLE I. DEFINITIONS; PRINCIPLES OF CONSTRUCTION</DIV></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Definitions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Principles of Construction</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE II. GENERAL TERMS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan Commitment; Disbursement to Borrower</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Interest Rate</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan Payment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Prepayments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defeasance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Release of Property</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Clearing Account/Cash Management</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intentionally Omitted</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payments Not Conditional</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Initial Advance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Project Loan Advances</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Final Advance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Reliance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Method of Disbursement of Loan Proceeds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Interest Advances</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE III. CONDITIONS PRECEDENT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conditions Precedent to Closing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE IV. REPRESENTATIONS AND WARRANTIES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Borrower Representations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Survival of Representations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE V. BORROWER COVENANTS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Affirmative Covenants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Negative Covenants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE VI. INSURANCE; CASUALTY; CONDEMNATION; REQUIRED REPAIRS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insurance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Casualty and Condemnation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Application of Net Proceeds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE VII. RESERVE FUNDS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reserve Funds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Loan Documents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reserve Funds, Generally</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE VIII. DEFAULTS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Event of Default</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="81%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Remedies</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Remedies Cumulative; Waivers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE IX. SPECIAL PROVISIONS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE X. MISCELLANEOUS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Survival</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lender&#146;s Discretion</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Governing Law</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Modification, Waiver in Writing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Delay Not a Waiver</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notices</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trial by Jury</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Headings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Severability</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preferences</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waiver of Notice</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Remedies of Borrower</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expenses; Indemnity</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedules and Exhibits Incorporated</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Offsets, Counterclaims and Defenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Joint Venture or Partnership; No Third Party Beneficiaries</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.17</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Publicity</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.18</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waiver of Marshalling of Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.19</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waiver of Counterclaim</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.20</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Identical Obligations; Conflict; Construction of Documents; Reliance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.21</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Brokers and Financial Advisors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.22</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Prior Agreements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.23</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Joint and Several Liability</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.24</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certain Additional Rights of Lender (VCOC)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10.25</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MERS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
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</DIV>



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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROJECT LOAN AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS PROJECT LOAN AGREEMENT</B>, dated as of December&nbsp;26, 2007 (as amended, restated, replaced,
supplemented or otherwise modified from time to time, this &#147;<B>Agreement</B>&#148; or sometimes, this &#147;<B>Project
Loan Agreement</B>&#148;), is made by and between <B>BEAR STEARNS COMMERCIAL MORTGAGE, INC.</B>, a New York
corporation, having an address at 383 Madison Avenue, New York, New York 10179 (&#147;<B>Lender</B>&#148;) and
<B>ACADIA ATLANTIC AVENUE LLC</B>, a Delaware limited liability company, having its principal place of
business c/o Acadia Realty Trust, 1311 Mamaroneck Avenue &#151; Suite&nbsp;260, White Plains, New York 10605
(&#147;<B>Borrower</B>&#148;).
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>W</B></U><U><B>I</B></U><U><B>T</B></U><U><B>N</B></U><U><B>E</B></U><U><B>S</B></U><U><B>S</B></U><U><B>E</B></U><U><B>T</B></U><U><B>H</B></U><B>:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, Borrower desires to obtain the Project Loan (as hereinafter defined) from Lender; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, Lender is willing to make the Project Loan to Borrower, subject to and in accordance
with the terms of this Agreement and the other Loan Documents (as hereinafter defined).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW THEREFORE</B>, in consideration of the making of the Loan by Lender and the covenants,
agreements, representations and warranties set forth in this Agreement, the parties hereto hereby
covenant, agree, represent and warrant as follows:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE I.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>DEFINITIONS; PRINCIPLES OF CONSTRUCTION</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.1 <U><B>Definitions</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For all purposes of this Agreement, except as otherwise expressly required or unless the
context clearly indicates a contrary intent, all capitalized terms used herein but not otherwise
defined shall have their respective meanings set forth in the Building Loan Agreement and:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Advance</B>&#148; or &#147;<B>Advances</B>&#148; shall mean any disbursement of the proceeds of the Project Loan by
Lender pursuant to the terms of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Agreement</B>&#148; shall mean this Project Loan Agreement, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Borrower</B>&#148; shall have the meaning set forth in the introductory paragraph hereto, together
with its successors and permitted assigns.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Building Loan</B>&#148; shall mean the loan made by Lender to Borrower pursuant to the Building Loan
Agreement in the principal amount of up to the Building Loan Amount.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Building Loan Agreement</B>&#148; shall mean that certain Building Loan Agreement dated as of the date
hereof between Borrower and Lender as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Building Loan Amount</B>&#148; shall have the meaning set forth in the Building Loan Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Building Loan Assignment of Leases</B>&#148; shall have the meaning set forth in the Building Loan
Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Building Loan Documents</B>&#148; shall have the meaning set forth in the Building Loan Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Building Loan Earn Out Advance</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.12.2</B></U>
hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Building Loan Mortgage</B>&#148; shall have the meaning set forth in the Building Loan Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Building Loan Note</B>&#148; shall have the meaning set forth in the Building Loan Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Contingency Excess</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.1.7(b)</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Debt</B>&#148; shall mean the outstanding principal amount of the Project Loan set forth in, and
evidenced by, this Agreement, the Project Loan Note and the other Project Loan Documents, together
with all interest accrued and unpaid thereon and all other sums due to Lender in respect of the
Project Loan under the Project Loan Note, this Agreement, the Project Loan Mortgage or any other
Project Loan Document.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Debt Service</B>&#148; shall mean, with respect to any particular period of time, the aggregate
scheduled principal and interest payments due under this Agreement and the Project Loan Note.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Defeasance Date</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.5.1(a)(i)</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Defeasance Event</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.5.1(a)</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Earn Out Advances</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.12.2</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Event of Default</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;8.1(a)</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Final Advance</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.12.1</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Final Building Loan Advance</B>&#148; shall mean the Final Advance as defined in Section&nbsp;2.12.1 of the
Building Loan Agreement.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Indemnified Liabilities</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;10.13(a)</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Initial Advance</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.10</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Initial Advance Conditions</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.10</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Interest Period</B>&#148; shall mean: (a)&nbsp;the period commencing on the Closing Date and ending on
the last day of the month in which the Closing Date occurs, both dates inclusive; and (b)&nbsp;the
period commencing on and including the first day of each calendar month thereafter during the term
of Loan and ending and including the last day of such calendar month.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Interest Rate</B>&#148; shall mean seven and one hundred forty-four one-thousandths percent (7.144%),
provided, however, in the event that on or before January&nbsp;1, 2011, the Property shall have achieved
a Debt Service Coverage Ratio as determined by Lender of 1.15 to 1.0 using a debt service constant
of 7.50%, and Borrower delivers to Lender a MAI appraisal performed, at Borrower&#146;s sole cost and
expense, by an appraiser approved by Lender and dated, or updated, to a date within 30&nbsp;days of such
date made in compliance with FIRREA and reasonably satisfactory to Lender in all respects; the
appraisal value shall be subject to review and confirmation and updating as to valuation by
Lender&#146;s internal appraisal staff, whose decision shall be final absent manifest error showing that
loan-to-value ratio for the Property is no greater than 75% assuming a fully advanced Loan, Lender
shall, upon Borrower&#146;s written request, reduce the Interest Rate to a per annum rate equal to five
and seven hundred ninety-four one-thousandths percent (5.794%), commencing on the first Payment
Date after Borrower&#146;s request. Any reduction in the Interest Rate as set forth above shall be
effective commencing on the first Payment Date after Borrower&#146;s request for such reduction and
satisfaction of the conditions set forth above and no reduction in the Interest Rate shall be
retroactive. In the event that Borrower fails to satisfy the conditions for a reduction of the
Interest Rate within the time periods set forth above, time being of the essence, Borrower shall
have no further right to obtain a reduction in the Interest Rate. Notwithstanding anything to the
contrary contained herein, Lender shall have the right, in its sole discretion, at any time after
the expiration of the Construction Term and prior to a Securitization of the Loan, to increase the
Interest Rate by up to two-tenths of one percent (0.20%).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Interest Reserve Line Item</B>&#148; shall mean the interest reserve Line Item of the Project Loan
Budget.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Lender</B>&#148; shall have the meaning set forth in the introductory paragraph hereto, together with
its successors and assigns.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Loan</B>&#148; shall mean collectively, the Building Loan and the Project Loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Loan Agreement</B>&#148; shall mean collectively, this Project Loan Agreement and the Building Loan
Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Loan Documents</B>&#148; shall mean collectively, the Building Loan Documents and the Project Loan
Documents, the Environmental Indemnity, the Guaranty of Completion, the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Guaranty of Recourse
Carveouts, the Cash Management Agreement, the Clearing Account Agreement, the Assignment of
Contracts, the Administration Fee Agreement, the Rate Lock Agreement and all other documents
executed and/or delivered in connection with the Loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Maturity Date</B>&#148; shall mean January&nbsp;1, 2020 or such earlier date on which the final payment of
principal of the Project Loan Note becomes due and payable as therein or herein provided, whether
at such stated maturity date, by declaration of acceleration, or otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>MERS</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;10.25</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Monthly Debt Service Payment Amount</B>&#148; shall mean (a)&nbsp;an amount equal to interest only on the
outstanding principal balance of the Building Loan, calculated in accordance with <U><B>Section
2.2</B></U> hereof, for each Payment Date commencing with the Payment Date occurring in February, 2008
through and including the Payment Date occurring in January, 2015, and (b)&nbsp;a constant monthly
payment of $33,215.06 commencing with the Payment Date occurring in February, 2015 and on each
Payment Date thereafter, provided, however, that in the event that the Interest Rate is modified in
accordance with the provisions of the definition of &#147;Interest Rate,&#148; the Monthly Debt Service
Payment Amount shall be adjusted by Lender based upon the modified Interest Rate and a thirty (30)
year amortization schedule, Lender&#146;s determination of the Monthly Debt Service Payment Amount being
binding absent manifest error.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Open Period Date</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.4.1</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Other Debt</B>&#148; shall mean the &#147;<B>Debt</B>&#148; as defined in both the Building Loan Agreement and the
Mezzanine Loan Documents, if applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Other Obligations</B>&#148; shall have the meaning as set forth in the Mortgage.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Payment Date</B>&#148; shall mean February&nbsp;1, 2008, and the 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> day of every month
thereafter during the term of the Loan until and including the Maturity Date or, if such day is not
a Business Day, the immediately preceding Business Day.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Prepayment Date</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.4.4</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Project Loan</B>&#148; shall mean the loan being made by Lender to Borrower pursuant to this Project
Loan Agreement in the principal amount of up to the Project Loan Amount.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Project Loan Amount</B>&#148; shall mean Four Million, Nine Hundred Twenty Thousand, Seven Hundred
Thirty-Nine and 67/100 Dollars ($4,920,739.67).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Project Loan Assignment of Leases</B>&#148; shall mean that certain Project Loan Assignment of Leases
and Rents, dated the date hereof, from Borrower, as assignor, to Lender, as assignee, as the same
may be amended, restated, replaced, supplemented or otherwise modified from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Project Loan Documents</B>&#148; shall mean, collectively, this Agreement, the Project Loan Note, the
Project Loan Mortgage, the Project Loan Assignment of Lease as well as all other documents not or
hereafter executed and/or delivered with respect to the Project Loan.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Project Loan Earn Out Advance</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.12.2</B></U>
hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Project Loan Mortgage</B>&#148; shall mean that certain Project Loan Mortgage and Security Agreement
dated the date hereof, executed and delivered by Borrower to Lender as security for the Project
Loan and encumbering the Property, as the same may be amended, restated, supplemented or otherwise
modified from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Project Loan Note</B>&#148; shall mean that certain Project Loan Promissory Note, dated the date
hereof, in the principal amount of up to the Project Loan Amount made by Borrower in favor of
Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Required Equity Funds</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.11.13</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Scheduled Defeasance Payments</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.5.1(b)</B></U>
hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Security Agreement</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.5.1(a)(v)</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Severed Loan Documents</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;8.2(c)</B></U>. hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Shortfall</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.1.10</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Successor Borrower</B>&#148; shall have the meaning set forth in <U><B>Section&nbsp;2.5.3</B></U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Unsatisfied Initial Advance Conditions</B>&#148; shall have the meaning set forth in <U><B>Section
2.1.20</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.2 <U><B>Principles of Construction.</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;All references to sections and schedules are to sections and schedules in or to this
Agreement unless otherwise specified. All uses of the word &#147;including&#148; shall mean &#147;including,
without limitation&#148; unless the context shall indicate otherwise. Any reference in this Agreement
or in any other Loan Document to any Loan Document shall be deemed to include references to such
documents as the same may hereafter be amended, modified, supplemented, extended, replaced and/or
restated from time to time (and, in the case of any note or other instrument, to any instrument
issued in substitution therefor). Unless otherwise specified, the words &#147;hereof,&#148; &#147;herein&#148; and
&#147;hereunder&#148; and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this
Agreement. Unless otherwise specified, all meanings attributed to defined terms herein shall
be equally applicable to both the singular and plural forms of the terms so defined.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;With respect to any cross-reference to the Building Loan Documents or the Project Loan
Documents or any combination thereof, as the case may be, for terms defined therein or provisions
set forth therein or Schedules or Exhibits thereto, such cross-references
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">shall be to referenced
defined terms or provisions or Schedules or Exhibits, as the case may be, as the same are set forth
in the Building Loan Documents or the Project Loan Documents or any combination thereof, as the
case may be, as of the date hereof, and as the same may be amended, modified, supplemented,
extended, replaced or restated or any combination thereof from time to time, and shall survive the
repayment or satisfaction of the Building Loan or the Project Loan as the case may be, or the
termination of the Building Loan Agreement or this Agreement or any combination thereof, as the
case may be, for so long as the Project Loan remains outstanding.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE II.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>GENERAL TERMS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.1 <U><B>Loan Commitment; Disbursement to Borrower</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1 <U><I>Agreement to Lend and Borrow</I></U>. Subject to and upon the terms and conditions set forth
herein, Lender hereby agrees to make and Borrower hereby agrees to accept Advances in respect of
the Project Loan as more particularly set forth in <U><B>Section&nbsp;2.10</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2 <U><I>No Reborrowings</I></U>. Any amount borrowed and repaid hereunder in respect of the Building
Loan may not be reborrowed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.3 <U><I>The Note, Mortgage and Loan Documents</I></U>. The Project Loan shall be evidenced by the
Project Loan Note and secured by the Project Loan Mortgage, the Project Loan Assignment of Leases
and the other Project Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.4 <U><I>Use of Proceeds</I></U>. Borrower hereby agrees that Borrower shall use the proceeds of the
Project Loan to pay or reimburse itself for Project-Loan Costs actually incurred in connection
with the construction of the Project Improvements if and to the extent that such Project-Loan Costs
are reflected in the Project Loan Budget, subject to reallocation pursuant to <U><B>Sections
2.1.6</B></U> and <U><B>2.1.7</B></U> hereof, and <U><B>5.1.33</B></U> of the Building Loan Agreement (or other
reallocations approved by Lender in its sole discretion).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.5 <U><I>Advances</I></U>. The Project Loan Budget shall reflect, by category and line item, the
purposes and amounts for which funds to be advanced by Lender under this Agreement are to be used.
Lender shall not be required to Advance funds hereunder for any category or line item of Project
Loan Costs in excess of the amount specified for such line item or category in the Project Loan
Budget, subject to <B>Sections&nbsp;2.1.6 </B>and <B>2.1.7 </B>hereof and <B>5.1.33 </B>of the Building Loan Agreement (or
other reallocations approved by Lender in its sole discretion). No Advances shall be made to pay
for Affiliate Fees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.6 <U><I>Cost Overruns</I></U>. If Borrower becomes aware of any change in actual or projected Project
Loan Costs which will increase any one or more category or line item of costs reflected in the
Project Loan Budget, Borrower shall immediately notify Lender in writing and promptly submit to
Lender for its approval a revised Project Loan Budget. Any reallocation of any category or line
items in the Project Loan Budget in connection with cost overruns shall be subject to Lender&#146;s
approval in Lender&#146;s sole discretion except as set forth in <U><B>Sections&nbsp;2.1.7</B></U> hereof and
<U><B>5.1.33</B></U> of the Building Loan Agreement, provided, however, under no circumstances shall
Borrower be permitted, or Lender obligated to approve, the reallocation of line items from
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the
Building Loan Budget to the Project Loan Budget. Lender shall have no obligation to make any
further Advances unless and until the revised Project Loan Budget so submitted by Borrower is
approved by Lender and Borrower has satisfied its obligations with respect to any resulting
Shortfall under <U><B>Section&nbsp;2.1.10</B></U>. Lender reserves the right to approve or disapprove any
revised Project Loan Budget in its sole and absolute discretion (except with respect to
reallocations in accordance with <U><B>Sections&nbsp;2.1.7</B></U> and <U><B>5.1.33</B></U>).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.7 <U><I>Contingency Reserve</I></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Following the satisfaction of the Initial Advance Conditions, and subject to the prior
approval of Lender in its sole discretion, Borrower may revise the Project Loan Budget to move
amounts available under any Line Item that are designated to &#147;Contingency&#148; to other Line Items in
the Project Loan Budget. In no event may the Contingency Line Item of the Building Loan Budget be
reallocated to any Line Item in the Project Loan Budget. Provided no Event of Default exists and
with Lender&#146;s consent (which shall not be unreasonably withheld), after Completion of the
Improvements, Borrower may draw amounts available under the Contingency Line Item of the Project
Loan Budget to fund Shortfalls in monthly interest due, which amounts shall be deposited in the
Interest Reserve. Such drawing shall be in addition to any Interest Reserve Line Item advanced
under the Project Loan pursuant to <U>Section&nbsp;2.14.10</U> hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Following the occurrence of Final Completion, Lender shall reasonably cooperate with
Borrower to amend the Project Loan Budget, Building Loan Budget, Project Loan Documents and
Building Loan Documents such that: (x)&nbsp;the Building Loan Budget is amended to remove the amounts
then available under the Building Loan Budget either in the
contingency Line Item or as cost savings from other Line Items (the &#147;<B>Contingency Excess</B>&#148;) and
the Building Loan Amount is reduced by the Contingency Excess; and (y)&nbsp;the contingency line item of
the Project Loan Budget and the Project Loan Amount are increased by the Contingency Excess.
Borrower and Lender shall execute and deliver such documents, certificates and instruments as may
be reasonably required to effect the above described re-allocation, including, without limitation,
the filing of an amended Section&nbsp;22 Affidavit and the modification of the Project Loan Documents
and Building Loan Documents to reflect the respective changes in the Project Loan Amount and the
Building Loan Amount and Borrower shall obtain such other evidence as Lender may reasonably request
to confirm that none of the foregoing shall adversely impact the validity or priority of its
security interests in the Property or otherwise adversely impact its rights and remedies under the
Loan Documents including, without limitation, appropriate endorsements to the title insurance
policy. Borrower shall pay any and all title insurance, recording and other charges and all
reasonable costs and expenses (including legal fees) incurred by Lender in connection with the
foregoing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.8 <U><I>Intentionally Omitted.</I></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.9 <U><I>Amount of Advances</I></U>. In no event shall any Advance exceed the full amount of Project
Loan Costs theretofore paid or to be paid with the proceeds of such Advance plus any Project Loan
Costs incurred by Borrower through the date of the Draw Request for such Advance <U>minus</U> (i)
the applicable Retainage for each Contract and Subcontract, and (ii)&nbsp;the aggregate amount of any
Advances previously made by Lender. It is further understood that the
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Retainage described above is
intended to provide a contingency fund protecting Lender against failure of Borrower or Guarantor
to fulfill any obligations under the Loan Documents, and that Lender may charge amounts to pay for
Project Loan Costs against such Retainage in the event Lender is required or elects to expend funds
to cure any Default or Event of Default, in either instance, in accordance with the terms of this
Agreement. No Advance of the Loan by Lender shall be deemed to be an approval or acceptance by the
Lender of any work performed thereon or the materials furnished with respect thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.10 <U><I>Loan-In-Balance</I></U>. As used herein, a &#147;<B>Shortfall</B>&#148; shall mean, as to any Line Item in the
Development Budget as of any date, the amount determined by Lender, in Lender&#146;s sole but
reasonable judgment, by which (A)&nbsp;the cost of completing or satisfying such Line Item, exceeds
(B)&nbsp;the remaining undisbursed portion of the Loan allocated to such Line Item in the Development
Budget plus any sums deposited with Lender pursuant to this <U><B>Section&nbsp;2.1.10</B></U> to pay for such
Line Item and not previously disbursed plus any Reserve Funds to the extent such Reserve Funds are
available hereunder for the payment of such Line Item. From time to time and at any time during
the Construction Period, Lender shall have the right, but not the obligation, to notify Borrower
that it has determined a Shortfall exists as to any one or more Line Items. If Lender at any time
shall so notify Borrower, Borrower shall, at its option within five (5)&nbsp;days of Lender&#146;s
notification as aforesaid, either: (i)&nbsp;deposit with Lender an amount equal to such
Shortfall, which Lender disburse to Borrower to the satisfaction of the costs of such Line
Item prior to advancing any further Loan proceeds on account of such costs; (ii)&nbsp;post an
irrevocable standby Letter of Credit in the amount of such Shortfall, in favor of Lender; (iii)&nbsp;to
the extent permitted under <U><B>Sections&nbsp;2.1.7</B></U> hereof and <U><B>5.1.33</B></U> of the Building Loan
Agreement, and following the satisfaction of the Initial Advance Conditions allocate the
Contingency Reserve, with respect to the Line Item(s) in question, to the Shortfall, and provided,
further that the amount of the remaining Contingency Reserve for such Line Item(s) (following the
allocation to the Shortfall) is sufficient for such Line Item(s), as determined by Lender in its
sole discretion; and (iv)&nbsp;to the extent permitted under <U><B>Section&nbsp;5.1.33</B></U> of the Building Loan
Agreement, and then only following the satisfaction of the Initial Advance Conditions, reallocate
cost savings from the Development Budget in respect of the Loan (or other reallocations which are
approved by Lender, in its sole discretion) in accordance with the terms of this Agreement, but
only to the extent such cost savings can be allocated to the related Line Items. Borrower hereby
agrees that Lender shall have a lien on and security interest in, for the benefit of Lender, any
sums deposited pursuant to clause (i)&nbsp;above and that Borrower shall have no right to withdraw any
such sums except for the payment of the aforesaid costs as approved by Lender. Lender shall have
no obligation to make any further Advances of proceeds of the Loan as to any Line Item until the
sums required to be deposited pursuant to clause (i)&nbsp;above as to such Line Item have been
exhausted, or until Borrower has posted an irrevocable standby Letter of Credit pursuant to clause
(iii)&nbsp;above, as the case may be, and, in any such case, the Loan is back &#147;in balance&#148;. Any such
sums not used as provided in said clause (i)&nbsp;shall be released to Borrower when and to the extent
that Lender reasonably determines that the amount thereof is more than the excess, if any, of the
remaining Project-Related Costs over the undisbursed balance of the Loan, provided, however, that
should an Event of Default occur, Lender, in its sole discretion, may apply such amounts either to
the remaining Project-Related Costs or to the immediate reduction of outstanding principal and/or
interest under the Note.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.11 <U><I>Quality of Work</I></U>. No Advance or any portion thereof shall be made with respect to
defective work or to any contractor that has performed work that is defective and that has not been
cured, as confirmed by the report of the Construction Consultant, but Lender may disburse all or
part of any Advance before the sum shall become due if Lender believes it advisable to do so, and
all such Advances or parts thereof shall be deemed to have been made pursuant to this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.12 <U><I>Required Equity Funds</I></U>. All Required Equity Funds shall be contributed <I>(i.e.</I>, expended
by Borrower and invested by Borrower in the Property, for Project Related Costs set forth on the
approved Development Budget) before the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.13 <U><I>Trust Fund</I></U>. Pursuant to Section&nbsp;13 of the New York Lien Law, Borrower shall receive
the Advances hereunder and shall hold the right to receive the Advances as a trust fund to be
applied first for the purpose of paying the Costs of the Improvements and shall apply the Advances
first to the payment of the Cost of the Improvements on the Property before using any part of the
total of the same for any other purpose.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.14 <U><I>Final Project Report and Development Budget</I></U>. The provisions of <U>Section&nbsp;2.1.14</U>
of the Building Loan Agreement are incorporated herein by reference as if fully set forth herein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.15 <U><I>Miscellaneous.</I></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The making of an Advance by Lender shall not constitute Lender&#146;s approval or acceptance of
the construction theretofore completed. Lender&#146;s inspection and approval of the Plans and
Specifications, the construction of the Project Improvements, or the workmanship and materials used
therein, shall impose no liability of any kind on Lender, the sole obligation of Lender as the
result of such inspection and approval being to make the Advances if and to the extent, required by
this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;ALL POTENTIAL LIENORS ARE HEREBY CAUTIONED TO EXERCISE SOUND BUSINESS JUDGMENT IN THE
EXTENSION OF CREDIT TO BORROWER. NO POTENTIAL LIENOR SHOULD EXPECT LENDER TO MAKE ADVANCES OF THE
LOAN IN AMOUNTS AND AT TIMES SUCH THAT IT WILL NOT BE NECESSARY FOR EACH SUCH POTENTIAL LIENOR TO
EXERCISE SOUND BUSINESS JUDGMENT IN THE EXTENSION OF CREDIT TO BORROWER. MOREOVER, ALL POTENTIAL
LIENORS ARE REMINDED THAT SUBDIVISION (3)&nbsp;OF SECTION 13 OF THE NEW YORK LIEN LAW PROVIDES THAT
&#147;NOTHING IN THIS SUBDIVISION SHALL BE CONSIDERED AS IMPOSING UPON THE LENDER ANY OBLIGATION TO SEE
THE PROPER APPLICATION OF SUCH ADVANCES BY THE OWNER,&#148; AND LENDER DOES NOT IMPOSE SUCH AN
OBLIGATION ON ITSELF.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.2 <U><B>Interest Rate</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1 <U><I>Interest Rate</I></U>. Interest on the outstanding principal balance of the Loan shall accrue
from (and include) the Closing Date to but excluding the Maturity Date at the Interest Rate
calculated as set forth in Section&nbsp;2.2.2 below.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2 <U><I>Interest Calculation</I></U>. Interest on the outstanding principal balance of the Loan shall
be calculated by multiplying (a)&nbsp;the actual number of days elapsed in the period for which the
calculation is being made by (b)&nbsp;a daily rate based on the Interest Rate and a three hundred sixty
(360)&nbsp;day year by (c)&nbsp;the outstanding principal balance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3 <U><I>Default Rate</I></U>
In the event that, and for so long as, any Event of Default shall have occurred and be
continuing, the outstanding principal balance of the Loan and, to the extent permitted by law, all
accrued and unpaid interest in respect of the Loan and any other amounts due pursuant to the Loan
Documents, shall accrue interest at the Default Rate, calculated from the date such payment was due
without regard to any grace or cure periods contained herein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.4 <U><I>Usury Savings</I></U>. This Agreement, the Note and the other Loan Documents are subject to
the express condition that at no time shall Borrower be obligated or required to pay interest on
the principal balance of the Loan at a rate which could subject Lender to either civil or criminal
liability as a result of being in excess of the Maximum Legal Rate. If, by the terms of this
Agreement or the other Loan Documents, Borrower is at any time required or obligated to pay
interest on the principal balance due hereunder at a rate in excess of the Maximum Legal Rate, the
Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to
the Maximum Legal Rate and all previous payments in excess of the Maximum Legal 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 sums due under the Loan, shall, to the extent permitted by applicable law, be amortized,
prorated, allocated, and spread throughout the full stated term of the Loan until payment in full
so that the rate or amount of interest on account of the Loan does not exceed the Maximum Legal
Rate of interest from time to time in effect and applicable to the Loan for so long as the Loan is
outstanding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.3 <U><B>Loan Payment</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1 <U><I>Monthly Debt Service Payments</I></U><B>. </B>Borrower shall pay to Lender (a)&nbsp;on the Closing Date,
an amount equal to interest only on the outstanding principal balance of the Loan from and
including the Closing Date up to and including December&nbsp;31, 2007, which interest shall be
calculated in accordance with the provisions of <U><B>Section&nbsp;2.2</B></U> hereof, and (b)&nbsp;on each Payment
Date commencing on the Payment Date occurring in February, 2008, and thereafter up to and including
the Maturity Date, Borrower shall make a payment to Lender equal to the Monthly Debt Service
Payment Amount, which payments shall be applied first to interest due for the related Interest
Period at the Interest Rate, for such related Interest Period and then to the principal amount of
the Loan due in accordance with this Agreement, and lastly, to any other amounts due and unpaid
pursuant to the Loan Documents hereto. Borrower and Lender acknowledge and agree that, on the
15<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> calendar day of the month preceding each Payment Date during the Construction Term:
(a)&nbsp;if and to the extent undrawn funds remain available for Advance under the Project Loan from the
Interest Reserve Line Item of the Project Loan Budget, and provided that that no Event of Default
or monetary Default then exists under any of the Loan Documents or would occur as a result of such
Advance, the Monthly Debt Service Amount then due and owing shall be advanced by Lender by a
Advance under Interest Reserve Line Item of the Project Loan Budget; and (b)&nbsp;if no amount remains
available under the Interest Reserve Line
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Item but and to the extent Interest
Reserve Funds are on deposit in the Interest Reserve Account, and no Event of Default or
monetary Default then exists under any of the Loan Documents, the Monthly Debt Service Payment
Amount then due and payable shall be paid by application of funds from the Interest Reserve
Account. Borrower and Lender acknowledge and agree that Lender may automatically make an Advance
or apply Interest Reserve Funds on deposit in the Interest Reserve Account on each Payment Date
occurring during the Construction Term, in either instance, in accordance with this <U><B>Section
2.3.1</B></U>, without the need for Borrower to submit a Draw Request or otherwise request such an
Advance or application.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2 <U><I>Payments Generally</I></U><B>. </B>The first Interest Period hereunder shall commence on and include
the Closing Date and shall end on and include December&nbsp;31, 2007. Thereafter each Interest Period
shall commence on the first (1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>) day of each calendar month during the term of this
Agreement and shall end on and include the final calendar date of such calendar month. For
purposes of making payments hereunder, but not for purposes of calculating Interest Periods, if the
day on which such payment is due is not a Business Day, then amounts due on such date shall be due
on the immediately preceding Business Day and with respect to payments of principal due on the
Maturity Date, interest shall be payable at the Interest Rate or the Default Rate, as the case may
be, through and including the day immediately preceding such Maturity Date. All amounts due under
this Agreement and the other Loan Documents shall be payable without setoff, counterclaim, defense
or any other deduction whatsoever.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3 <U><I>Payment on Maturity Date</I></U>. Borrower shall pay to Lender on the Maturity Date the
outstanding principal balance of the Loan, all accrued and unpaid interest and all other amounts
due hereunder and under the Note, the Mortgage and the other Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.4 <U><I>Late Payment Charge</I></U><B>. </B>If any principal, interest or any other sums due under the Loan
Documents (including the amounts due on the Maturity Date) are not paid by Borrower on or prior to
the date on which it is due, Borrower shall pay to Lender upon demand an amount equal to the lesser
of five percent (5%) of such unpaid sum or the Maximum Legal Rate in order to defray the expense
incurred by Lender in handling and processing such delinquent payment and to compensate Lender for
the loss of the use of such delinquent payment. Any such amount shall be secured by the Mortgage
and the other Loan Documents to the extent permitted by applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.5 <U><I>Method and Place of Payment</I></U><B>. </B>Except as otherwise specifically provided herein, all
payments and prepayments under this Agreement and the Note shall be made to Lender not later than
11:00&nbsp;A.M., New York City time, on the date when due and shall be made in lawful money of the
United States of America in immediately available funds at Lender&#146;s office or as otherwise directed
by Lender, and any funds received by Lender after such time shall, for all purposes hereof, be
deemed to have been paid on the next succeeding Business Day.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.4 <U><B>Prepayments</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.1 <U><I>Voluntary Prepayments</I></U>. Except as otherwise provided in this <U><B>Section&nbsp;2.4.1</B></U> and
<U><B>Section&nbsp;2.4.2</B></U>, Borrower shall not have the right to prepay the Loan in whole or in part
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">prior to the Maturity Date. If for any reason Borrower prepays the Loan on a date other than a
Payment Date, Borrower shall pay Lender, in addition to the Debt, all interest which would have
accrued on the amount of the Loan through and including the Payment Date next occurring following
the date of such prepayment. Notwithstanding anything to the contrary contained herein, commencing
after the Payment Date three (3)&nbsp;months prior to the Maturity Date (the &#147;<B>Open Period Date</B>&#148;), or on
any Payment Date thereafter (or on any date thereafter, provided that interest is paid through the
next Payment Date), Borrower may, at its option, prepay the Debt in whole, but not in part, without
payment of the Yield Maintenance Premium.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.2 <U><I>Mandatory Prepayments</I></U>. On the next occurring Payment Date following the date on which
Lender actually receives any Net Proceeds, if Lender is not obligated to make such Net Proceeds
available to Borrower for the Restoration of the Property or otherwise remit such Net Proceeds to
Borrower pursuant to <B>Section&nbsp;6.4 </B>of the Building Loan Agreement, Borrower shall prepay or authorize
Lender to apply Net Proceeds as a prepayment of all or a portion of the outstanding principal
balance of the Loan together with accrued interest through the end of the related Interest Period
and any other sums due hereunder in an amount equal to one hundred percent (100%) of such Net
Proceeds; <I>provided</I>, <I>however</I>, if an Event of Default has occurred and is continuing, Lender may
apply such Net Proceeds to the Debt (until paid in full) in any order or priority in its sole
discretion. Other than following an Event of Default, no Yield Maintenance Premium shall be due in
connection with any prepayment made pursuant to this <U><B>Section&nbsp;2.4.2</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.3 <U><I>Prepayments After Default</I></U>. If following an Event of Default, payment of all or any
part of the Debt is tendered by Borrower or otherwise recovered by Lender, such tender or recovery
shall be (a)&nbsp;made on the next occurring Payment Date together with the Monthly Debt Service Payment
and (b)&nbsp;deemed a voluntary prepayment by Borrower in violation of the prohibition against
prepayment set forth in <U><B>Section&nbsp;2.4.1</B></U> hereof and Borrower shall pay, in addition to the
Debt, an amount equal to the Yield Maintenance Default Premium.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.4 <I>Prepayment Prior to Defeasance Expiration Date</I><B><I>. </I></B>If the Permitted Release Date has
occurred but the Defeasance Expiration Date has not occurred, the Debt may be prepaid in whole (but
not in part) prior to the date permitted under Section&nbsp;2.4.1 hereof upon not less than thirty (30)
days prior written notice to Lender specifying the Payment Date on which prepayment is to be made
(a &#147;<B>Prepayment Date</B>&#148;) provided no Event of Default exists and upon payment of an amount equal to
the Yield Maintenance Premium. Lender shall notify Borrower of the amount and the basis of
determination of the required prepayment consideration. If any notice of prepayment is given, the
Debt shall be due and payable on the Prepayment Date.
Lender shall not be obligated to accept any prepayment of the Debt unless it is accompanied by
the prepayment consideration due in connection therewith. If for any reason Borrower prepays the
Loan on a date other than a Payment Date, Borrower shall pay Lender, in addition to the Debt, all
interest which would have accrued on the amount of the Loan through and including the Payment Date
next occurring following the date of such prepayment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.5 <U><I>Application of Prepayments to Components</I></U>. Any prepayment of the principal of
the Loan, in whole or in part, voluntary or involuntary, shall be applied (a)&nbsp;first, to the
reduction of the outstanding principal balance of the Project Loan until reduced to zero, and (b)
second, to the reduction of the outstanding principal balance of the Building Loan until
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">reduced to
zero. Subsequent to any Event of Default, any payment of principal from whatever source may be
applied by Lender between the various components of the Loan in Lender&#146;s sole discretion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.5 <U><B>Defeasance</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.1 <U><I>Voluntary Defeasance</I></U> (a)&nbsp;Provided no Event of Default shall then exist, Borrower
shall have the right at any time after the Defeasance Expiration Date and prior to the date
voluntary prepayments are permitted under Section&nbsp;2.4.1 hereof to voluntarily defease all, but not
part, of the Loan by and upon satisfaction of the following conditions (such event being a
&#147;<B>Defeasance Event</B>&#148;):
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Borrower shall provide not less than thirty (30)&nbsp;days prior written notice
to Lender specifying the Payment Date (the &#147;<B>Defeasance Date</B>&#148;) on which the
Defeasance Event is to occur;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Borrower shall pay to Lender all accrued and unpaid interest on the
principal balance of the Loan to and including the Defeasance Date. If for any
reason the Defeasance Date is not a Payment Date, the Borrower shall also pay
interest that would have accrued on the Note through and including the Payment Date
immediately preceding the next Payment Date, <U>provided</U>, <U>however</U>, if
the Defeasance Deposit shall include short-term interest computed from the date of
such prepayment through to the next succeeding Payment Date, Borrower shall not be
required to pay such short term interest pursuant to this sentence;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Borrower shall pay to Lender all other sums, not including scheduled
interest or principal payments, then due under the Note, this Agreement, the
Mortgage and the other Loan Documents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Borrower shall use the Defeasance Deposit to purchase U.S. Obligations in
accordance with Section&nbsp;2.5.1(b) below;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Borrower shall execute and deliver a pledge and security agreement, in form
and substance that would be reasonably satisfactory to a
prudent lender creating a first priority lien on the Defeasance Deposit and the
U.S. Obligations purchased with the Defeasance Deposit in accordance with the
provisions of this <U><B>Section&nbsp;2.5</B></U> (the &#147;<B>Security Agreement</B>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Borrower shall deliver an opinion of counsel for Borrower that is standard
in commercial lending transactions and subject only to customary qualifications,
assumptions and exceptions opining, among other things, that Borrower has legally
and validly transferred and assigned the U.S. Obligations and all obligations,
rights and duties under and to the Note to the Successor Borrower, that Lender has a
perfected first priority security interest in the Defeasance Deposit and the U.S.
Obligations delivered by Borrower and that any REMIC Trust formed pursuant to a
Securitization will not fail to maintain its status as a &#147;real estate mortgage
investment conduit&#148; within the meaning of Section&nbsp;860D of the Code as a result of
such Defeasance Event;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Borrower shall deliver confirmation in writing from each of the
applicable Rating Agencies to the effect that such release will not result in a
downgrade, withdrawal or qualification of the respective ratings in effect
immediately prior to such Defeasance Event for the Securities issued in connection
with the Securitization which are then outstanding. If required by the applicable
Rating Agencies, Borrower shall also deliver or cause to be delivered an Additional
Insolvency Opinion with respect to the Successor Borrower in form and substance
satisfactory to Lender and the applicable Rating Agencies;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Borrower shall deliver an Officer&#146;s Certificate certifying that the
requirements set forth in this <U><B>Section&nbsp;2.5.1(a)</B></U> have been satisfied;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Borrower shall deliver a certificate of Borrower&#146;s independent certified
public accountant certifying that the U.S. Obligations purchased with the Defeasance
Deposit generate monthly amounts equal to or greater than the Scheduled Defeasance
Payments;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Borrower shall deliver such other certificates, documents or instruments as
Lender may reasonably request; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Borrower shall pay all costs and expenses of Lender incurred in connection
with the Defeasance Event, including (A)&nbsp;any costs and expenses associated with a
release of the Lien of the Mortgage as provided in <U><B>Section&nbsp;2.6</B></U> hereof, (B)
reasonable attorneys&#146; fees and expenses incurred in connection with the Defeasance
Event, (C)&nbsp;the costs and expenses of the Rating Agencies, (D)&nbsp;any revenue,
documentary stamp or intangible taxes or any other tax or charge due in connection
with the transfer of the Note, or otherwise required to accomplish the defeasance
and (E)&nbsp;the costs and expenses of Servicer and any trustee, including reasonable
attorneys&#146; fees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In connection with the Defeasance Event, Borrower shall use the Defeasance Deposit to
purchase U.S. Obligations which provide payments on or prior to, but as
close as possible to, all successive scheduled Payment Dates after the Defeasance Date upon
which interest and principal payments are required under this Agreement and the Note, and in
amounts equal to the scheduled payments due on such Payment Dates under this Agreement and the Note
(including, without limitation, scheduled payments of principal, interest, servicing fees (if any),
and any other amounts due under the Loan Documents on such Payment Dates) and assuming the Note is
prepaid in full on the Open Period Date (the &#147;<B>Scheduled Defeasance Payments</B>&#148;). 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 the Clearing Account (unless
otherwise directed by Lender) and applied to satisfy the Debt Service obligations of Borrower under
this Agreement and the Note. Any portion of the Defeasance Deposit in excess of the amount
necessary to purchase the U.S. Obligations required by this <U><B>Section&nbsp;2.5</B></U> and satisfy
Borrower&#146;s other obligations under this <U><B>Section&nbsp;2.5</B></U> and <U><B>Section&nbsp;2.6</B></U> shall be
remitted to Borrower.
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.2 <U><I>Collateral</I></U>. Each of the U.S. Obligations that are part of the defeasance collateral
shall be duly endorsed by the holder thereof as directed by Lender or accompanied by a written
instrument of transfer in form and substance that would be satisfactory to a prudent lender
(including, without limitation, such instruments as may be required by the depository institution
holding such securities or by the issuer thereof, as the case may be, to effectuate book-entry
transfers and pledges through the book-entry facilities of such institution) in order to perfect
upon the delivery of the defeasance collateral a first priority security interest therein in favor
of Lender in conformity with all applicable state and federal laws governing the granting of such
security interests.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.3 <U><I>Successor Borrower</I></U>. In connection with any Defeasance Event, Borrower shall establish
a successor entity (the &#147;<B>Successor Borrower</B>&#148;), which shall be a Special Purpose Entity, which shall
not own any other assets or have any other liabilities or operate other property (except in
connection with other defeased loans held in the same securitized loan pool with the Loan).
Borrower shall transfer and assign all obligations, rights and duties under and to the Note,
together with the pledged U.S. Obligations to such Successor Borrower. Such Successor Borrower
shall assume the obligations under the Note and the Security Agreement and Borrower shall be
relieved of its obligations under such documents. Borrower shall pay One Thousand and 00/100
Dollars ($1,000) to any such Successor Borrower as consideration for assuming the obligations under
the Note and the Security Agreement. Notwithstanding anything in this Agreement to the contrary,
no other assumption fee shall be payable upon a transfer of the Note in accordance with this
<U><B>Section&nbsp;2.5.3</B></U>, but Borrower shall pay all costs and expenses incurred by Lender, including
Lender&#146;s attorneys&#146; fees and expenses and any fees and expenses of any Rating Agencies, incurred in
connection therewith.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.6 <U><B>Release of Property</B></U>. Except as set forth in this <U><B>Section&nbsp;2.6</B></U>, no repayment,
prepayment or defeasance of all or any portion of the Loan shall cause, give rise to a right to
require, or otherwise result in, the release of the Lien of the Mortgage on the Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.1 <U><I>Release of Property</I></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If Borrower has elected to defease the Loan and the requirements of <U><B>Section&nbsp;2.5</B></U>
and this <U><B>Section&nbsp;2.6</B></U> have been satisfied, all of the Property shall be released from the
Lien of the Mortgage and the U.S. Obligations, pledged pursuant to the Security Agreement, shall be
the sole source of collateral securing the Note.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In connection with the release of the Mortgage, Borrower shall submit to Lender, not less
than thirty (30)&nbsp;days prior to the Defeasance Date, a release of Lien (and related Loan Documents)
for the Property for execution by Lender. Such release shall be in a form appropriate in the
jurisdiction in which the Property is located and that would be satisfactory to a prudent lender
and contains standard provisions, if any, protecting the rights of the releasing lender. In
addition, Borrower shall provide all other documentation Lender reasonably requires to be delivered
by Borrower in connection with such release, together with an Officer&#146;s Certificate certifying that
such documentation (i)&nbsp;is in compliance with all Legal Requirements, and (ii)&nbsp;will effect such
releases in accordance with the terms of this Agreement.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.2 <U><I>Release on Payment in Full</I></U>. Lender shall, upon the written request and at the expense
of Borrower, upon payment in full of all principal and interest due on the Loan and all other
amounts due and payable under the Loan Documents in accordance with the terms and provisions of the
Note and this Agreement, release the Lien of the Mortgage on the Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.7 <U><B>Clearing Account/Cash Management</B></U>. The provisions of <U>Section&nbsp;2.7</U> of the
Building Loan Agreement are incorporated herein by reference as if fully set forth herein
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.8 <U><B>Intentionally Omitted</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.9 <U><B>Payments Not Conditional</B></U><B>. </B>All payments required to be made by Borrower hereunder or
under the Note or the other Loan Documents shall be made irrespective of, and without deduction
for, any setoff, claim or counterclaim and shall be made irrespective of any defense thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.10 <U><B>Initial Advance</B></U> The obligation of Lender to make the initial Advance of the Project
Loan (the &#147;<B>Initial Advance</B>&#148;) shall be subject to the following conditions precedent (collectively,
the &#147;<B>Initial Advance Conditions</B>&#148;) on or prior to the Required Initial Advance Date, all of which
conditions precedent must be satisfied prior to Lender making any such Initial Advance:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.1 <U><I>Prior Conditions Satisfied</I></U>. All conditions precedent to closing shall continue to be
satisfied as of the date of the Initial Advance (in the same manner in which they were satisfied
for the closing without reimposing any one-time condition).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.2 <U><I>Performance; No Default</I></U>. Borrower shall have performed and complied with all terms
and conditions herein required to be performed or complied with by it at or prior to the date of
such Initial Advance, and on the date of such Initial Advance there shall exist no Default or Event
of Default.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.3 <U><I>Representations and Warranties</I></U>. The representations and warranties made by Borrower
or Guarantor in the Loan Documents or otherwise made by or on behalf of Borrower or Guarantor in
connection therewith after the date thereof shall have been true and correct in all material
respects on the date on which made and shall also be true and correct in all material respects on
the date of the Initial Advance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.4 <U><I>No Damage</I></U><I>. </I>The Project Improvements shall not have been injured or damaged by fire,
explosion, accident, flood or other casualty, unless Lender shall be satisfied that sufficient
insurance proceeds will be available in the reasonable judgment of Lender to effect the
satisfactory restoration of the Project Improvements and to permit the Completion of the
Improvements prior to the Required Completion Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.5 <U><I>Deliveries</I></U>. Lender shall have received:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Draw Request</U>. A Draw Request complying with the requirements hereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Intentionally Omitted</U>;
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Title Insurance Policy</U>. A Title Insurance Policy for the full amount of the Loan,
which includes a pending disbursement clause to increase the coverage of the Title Insurance Policy
by the amount of the any Advance, insuring the lien of the Mortgage subject to no liens or
encumbrances other than the Permitted Encumbrances;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Lien Waivers</U>. Duly executed lien waivers, which shall be conditional lien waivers
or unconditional lien waivers, as determined by Lender in its sole discretion, and otherwise
substantially in the form set forth in <U><B>Exhibit&nbsp;J</B></U> to the Building Loan Agreement from the
General Contractor and all Contractors and Subcontractors who have performed work, for the work so
performed, and/or who have supplied labor and/or materials, for the labor and/or materials so
supplied, except for such work or labor and/or materials for which payment thereof is requested, as
to which duly executed lien waivers shall be delivered to Lender with the next request for an
Advance;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Ratios</U>. Evidence satisfactory to Lender that following the Initial Advance, the
Loan-to-Cost Ratio shall be no greater than 75%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Evidence of Sufficiency of Funds</U>. Evidence satisfactory to Lender that the
proceeds of the Loan plus the Required Equity Funds will be sufficient to cover all Project-Related
Costs reasonably anticipated to be incurred and to satisfy the Obligations of Borrower to Lender
and under this Agreement and the other Loan Documents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Anticipated Costs Report</U>. An Anticipated Costs Report; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U>Other Documents</U>. Such other documents and certificates as Lender or its counsel
may reasonably require.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.6 <U><I>Initial Building Loan Advance</I></U>. All conditions to the initial advance of the Building
Loan set forth in Section&nbsp;2.10 of the Building Loan Agreement shall have been satisfied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.7 <U><I>Rate Lock Agreement</I></U>. Simultaneously with the Initial Advance, Lender shall return to
Borrower, a pro-rata portion of the deposit held by Lender pursuant to the Rate Lock Agreement in
such proportion as the amount of the Initial Advance bears to the Total Loan Amount.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.8 <U><I>Initial Reserve Deposits</I></U> Borrower shall have deposited the Initial Tax and Insurance
Escrow Deposit and the Initial Interest Reserve Deposit with Lender. The Initial Tax and Insurance
Escrow Deposit and the Initial Interest Reserve Deposit shall be funded on the date of the Initial
Advance with a portion of the Initial Advance under the Project Loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.9 <U><I>Satisfaction of Initial Advance Conditions</I></U><I>. . </I>Borrower acknowledge that certain
Initial Advance Conditions, including, without limitation, &#091;SUBJECT TO REVIEW BY LENDER&#093; &#091;(i)
delivery to and approval by Lender of final Plans and Specifications, (ii)&nbsp;delivery to and approval
by Lender of the final Development Budget, Building Loan Budget, and Project Loan Budget, (iii)
delivery to Lender of all permits required for the demolition of the existing improvements on the
Property, (iv)&nbsp;delivery to Lender of evidence that Borrower maintains the Policies required under
this Agreement, and (v)&nbsp;delivery to Lender of Borrower&#146;s Requisition and
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">all required accompanying documents with respect to the Initial Advance in accordance with
<U><B>Section&nbsp;2.14.1</B></U> of this Agreement (the &#147;<B>Unsatisfied Initial Advance Conditions</B>&#148;)&#093;. Borrower
covenants and agrees that, prior to the Required Initial Advance Date, time being of the essence,
it shall cause all of the Initial Advance Conditions, including, without limitation, the
Unsatisfied Initial Advance Conditions, to be satisfied. Borrower shall not perform any work at
the Property, including, without limitation, any demolition of the existing improvements, until all
of the Initial Advance Conditions have been satisfied. Borrower&#146;s failure to satisfy, or cause the
satisfaction of, any of the Initial Advance Conditions on or prior to the Required Initial Advance
Date shall, at Lender&#146;s election, constitute an Event of Default. In addition to any and all other
remedies that may be available to Lender hereunder, under the other Loan Documents, at law or in
equity, upon the occurrence of an Event of Default resulting from the failure of any Initial
Advance Condition to have been satisfied, Borrower hereby irrevocably empowers Lender, in the name
of Borrower as its true and lawful attorney-in-fact, with full power of substitution to complete or
undertake such steps as may be necessary, in Lender&#146;s sole determination, to satisfy the Initial
Advance Condition in the name of Borrower. Such power of attorney shall be deemed to be a power
coupled with an interest and cannot be revoked. Borrower empowers said attorney-in-fact as
follows: (i)&nbsp;to employ such contractors, subcontractors, agents, architects and inspectors as shall
be required for such purposes; (iii)&nbsp;to pay, settle or compromise all existing bills and claims
which are or may become Liens against the Property, or as may be necessary or desirable for the
completion of such Initial Advance Conditions, or for clearance of title; (v)&nbsp;to execute all
applications and certificates in the name of Borrower which may be required by any of the contract
documents; (vi)&nbsp;to prosecute and defend all actions or proceedings in connection with the Property
or the Project; and (vii)&nbsp;to do any and every act which Borrower might do in its own behalf to
fulfill the terms of this Agreement and the other Loan Documents. In addition, upon such Event of
Default,. Lender shall have the right to unwind any interest rate hedge entered into by Lender and
apply any deposits or other amounts held by Lender pursuant to the Rate Lock Agreement to costs and
expenses incurred by Lender under this Agreement, the Rate Lock Agreement or any of the other Loan
Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.10 <U><I>Government Approvals</I></U><I>. </I>Borrower shall have delivered to Lender evidence satisfactory
to Lender that all Governmental Approvals necessary for the demolition of the existing improvements
as contemplated by the Plans and Specifications, have been obtained and are in full force and
effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.11 <U><B>Project Loan Advances</B></U>. The obligation of Lender to make the Advances of the Project
Loan after the Initial Advance shall be subject to the following conditions precedent, all of which
conditions precedent must be satisfied prior to Lender making any such Advance:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.1
<U><I>Prior Conditions Satisfied</I></U>. All conditions precedent to any prior Advance (in the
same manner in which they were satisfied for the Initial Advance or prior Advance, as applicable,
and without reimposing any one-time requirement) shall continue to be satisfied as of the date of
such subsequent Advance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.2
<U><I>Performance; No Default</I></U>. Borrower shall have performed and complied with all terms
and conditions herein required to be performed or complied with by it at or prior to
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the date of such Advance, and on the date of such Advance there shall exist no Default or
Event of Default or Shortfall.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.3 <U><I>Representations and Warranties</I></U>. The representations and warranties made by Borrower
and Guarantor in the Loan Documents or otherwise made by or on behalf of Borrower or Guarantor in
connection therewith after the date thereof shall have been true and correct in all material
respects on the date on which made and shall also be true and correct in all material respects on
the date of such Advance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.4 <U><I>No Damage</I></U>. The Improvements shall not have been injured or damaged by fire,
explosion, accident, flood or other casualty, unless Lender shall have received insurance proceeds
sufficient in the reasonable judgment of Lender to effect the satisfactory restoration of the
Improvements and to permit the Completion of the Improvements prior to the Required Completion
Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.5
<U><I>Deliveries</I></U>. The following items or documents shall have been delivered to Lender:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Anticipated Costs Report</U>. An Anticipated Costs Report in the form set forth in
<U><B>Exhibit&nbsp;I</B></U> to the Building Loan Agreement executed by the General Contractor which sets
forth the anticipated costs to complete construction of the Project Improvements, after giving
effect to costs incurred during the previous month and any anticipated change orders;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Endorsement to Title Insurance Policy</U>. A &#147;datedown&#148; endorsement to Lender&#146;s title
insurance policy as described in the form set forth in <U><B>Exhibit&nbsp;C</B></U> to the Building Loan
Agreement which continuation or endorsement shall increase the coverage of the Title Insurance
Policy by the amount of the Advance through the pending disbursement clause (but not the overall
policy amount which shall be for the full amount of the Loan), amend the effective date of the
Title Insurance Policy to the date of such Advance, continue to insure the lien of the Mortgage
subject to no liens or encumbrances other than the Permitted Encumbrances and which shall state
that since the last disbursement of the Loan there have been no changes in the state of title to
the Property (other than Permitted Encumbrances) and that there are no additional survey exceptions
not previously approved by Lender;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Evidence of Sufficiency of Funds</U>. Evidence satisfactory to Lender that the
proceeds of the Loan plus the Required Equity Funds will be sufficient to cover all Project-Related
Costs reasonably anticipated to be incurred and to satisfy the Obligations of Borrower to Lender
and under this Agreement and the other Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Draw Request</U>. A Draw Request complying with the provisions of this Agreement
which shall constitute Borrower&#146;s representation and warranty to Lender that: (a)&nbsp;any completed
construction is substantially in accordance with the Plans and Specifications, (b)&nbsp;all costs for
the payment of which Lender have previously advanced funds have in fact been paid, (c)&nbsp;all the
representations and warranties contained in Article&nbsp;IV of this Agreement continue to be true and
correct in all material respects, (d)&nbsp;no Event of Default shall have occurred and be continuing
hereunder, and (e)&nbsp;Borrower continues to be in compliance in all respects with all of the other
terms, covenants and conditions contained in this Agreement.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Affirmation of Payment</U>. General Contractor&#146;s Affirmation of Payment (AIA Form
G706) in the form attached as <U><B>Exhibit&nbsp;E</B></U> to the Building Loan Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Other Documents</U>. Such other documents and certificates as Lender or its counsel
may reasonably require.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.6
<U><I>Construction Consultant Certificate</I></U>. Each draw request relating to Hard Costs shall
be accompanied by a certificate or report of the Construction Consultant to Lender based upon a
site observation of the Property made by the Construction Consultant not more than thirty (30)&nbsp;days
prior to the date of such draw, in which the Construction Consultant shall in substance: (i)
verify that the portion of the Project Improvements completed as of the date of such site
observation has been completed substantially in accordance with the Plans and Specifications; and
(ii)&nbsp;state its estimate of (1)&nbsp;the percentages of the construction of the Project Improvements
completed as of the date of such site observation on the basis of work in place as part of the
Project Improvements and the Building Loan Budget, (2)&nbsp;the Hard Costs actually incurred for work in
place as part of the Improvements as of the date of such site observation, (3)&nbsp;the sum necessary to
complete construction of the Project Improvements in accordance with the Plans and Specifications,
and (4)&nbsp;the amount of time from the date of such inspection that will be required to achieve
Completion of the Improvements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.8
<U><I>Certification Regarding Chattels</I></U>. Lender shall have received a certification from the
Title Company or other service satisfactory to Lender or counsel satisfactory to Lender (which
shall be updated from time to time at Borrower&#146;s expense upon request by Lender in connection with
future Advances) that a search of the public records disclosed no significant or material changes
since the Closing Date including no judgment or tax liens affecting Borrower or Guarantor, the
Property or the Personal Property, and no conditional sales contracts, chattel mortgages, leases of
personalty, financing statements (other than those in favor of Lender) or title retention
agreements which affect the Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.9
<U><I>Lien Waivers</I></U>. Borrower shall have delivered duly executed lien waivers, which shall
be conditional lien waivers or unconditional lien waivers, as applicable, and otherwise
substantially in the form set forth as <U><B>Exhibit&nbsp;J</B></U> to the Building Loan Agreement, from the
General Contractor, all Major Contractors and Major Subcontractors for all work performed, and all
labor or material supplied for which payment thereof has been made prior to the date of the
Advance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.10
<U><I>Construction Consultant Approval</I></U>. Lender has received advice from the Construction
Consultant, satisfactory to Lender, as to Construction Consultant&#146;s determination, acting
seasonably, based on on-site inspections of the Improvements and the data submitted to and reviewed
by it as part of Borrower&#146;s Requisition of the value of the labor and materials in place, that the
construction of the Project Improvements is proceeding satisfactorily and according to schedule and
that the work on account of which the Advance is sought has been completed in a good and
workmanlike manner to such Construction Consultant&#146;s satisfaction and substantially in accordance
with the Plans and Specifications.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.11
<U><I>Ratios</I></U>. Following such Advance (and any Building Loan Advance being made on such
date), the Loan-to-Cost Ratio shall be no greater than 75%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.12
<U><I>Administration Fee</I></U>. Borrower shall have paid the Administration Fee in accordance
with the provisions of the Administration Fee Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.13
<U><I>Required Equity Funds</I></U><B>. </B>Borrower shall furnish Lender with evidence in form and content
satisfactory to Lender that, as of the date of each Advance, Borrower has invested Cash equity in
an amount equal to or greater than (a) $5,356,660.00 or (b)&nbsp;25% of the Total Project Costs or (c)
the difference between the Development Budget and the maximum Loan amount of $16,150,000.00 for
approved Project-Related Costs (the &#147;<B>Required Equity Funds</B>&#148;). Notwithstanding the foregoing, if
the Borrower realizes cost savings from the development of the Project, either in the form of Hard
Costs or Soft Costs, Advances may be advanced to Borrower provided that (i)&nbsp;the Borrower would not
have less than $5,356,660.00 of cash equity in the Project through such Advance and (ii)&nbsp;the Debt
Service Coverage Ratio shall be equal to or greater than 1.70 to 1.0 assuming a fully advanced Loan
using a debt service constant of 7.50%, (iii)&nbsp;the Debt Service Coverage Ratio shall be equal to or
greater than 1.20 to 1.0 assuming a fully advanced Loan using a debt service constant of 10.65%,
and (iv)&nbsp;the loan-to-value ratio for the Property is greater than 75% assuming a fully advanced
Loan. If Borrower is in non-compliance solely with respect to <U>condition (i)</U> above, at
Borrower&#146;s option, either (A)&nbsp;any excess cost savings (funds in excess of the amount so that the
Required Equity Funds shall continue to be satisfied) shall be deposited as follows: (1)&nbsp;100% into
the Replacement Reserve Account, or (2)&nbsp;at Lender&#146;s discretion, into any other Reserves required by
Lender pursuant to this Agreement, or (B)&nbsp;Borrower shall release Lender from its obligation to fund
the remaining amounts of the Loan and Borrower and any guarantor under the Rate Lock Agreement pays
for the breakage costs, if any, on the unfunded portion of the Loan payable pursuant to the Rate
Lock Agreement. If Borrower is in compliance with respect to <U>condition (i)</U> above but is
not in compliance with <U>conditions (ii)</U>, <U>(iii)</U> and <U>(iv)</U> above, any excess
cost savings shall, at Borrower&#146;s option, (A)&nbsp;be held back by Lender as additional collateral for
the Loan until satisfaction of each of the requirements are satisfied, or (B)&nbsp;be deposited as
follows: (1)&nbsp;100% into the Replacement Reserve Account, or (2)&nbsp;at Lender&#146;s discretion, into any
other Reserves required by Lender pursuant to this Agreement, or (C)&nbsp;Borrower shall release Lender
from its obligation to fund the remaining amounts of the Loan and Borrower and any guarantor under
the Rate Lock Agreement pays for the breakage costs, if any, on the unfunded portion of the Loan
payable pursuant to the Rate Lock Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.14
<U><I>Rate Lock Agreement</I></U>. Simultaneously with each Construction Advance, Lender shall
return to Borrower, a pro-rata portion of the deposit held by Lender pursuant to the Rate Lock
Agreement in such proportion as the amount of the Construction Advance bears to the Total Loan
Amount, provided, however, that in the event that any of the conditions of <U><B>Section&nbsp;2.11.13</B></U>
are not satisfied, Lender shall have the right to apply the portion of the deposit under the Rate
Lock Agreement to be returned to Borrower to satisfy the conditions of <U><B>Section&nbsp;2.11.13</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11.15
<U><I>Government Approvals</I></U><I>. </I>Lender shall not be required to make Construction Advances for
any phase of the construction of the Project Improvements unless and until Borrower shall have
delivered to Lender evidence satisfactory to Lender that all Governmental Approvals necessary for
the construction of the phase of the Project
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Improvements to be constructed by Borrower as contemplated by the Plans and Specifications
have been obtained and are in full force and effect, including, without limitation, the final
approval of the Plans and Specifications by the City of New York for the Project Improvements and a
building permit(s) covering the entire scope of work contemplated by the Project Improvements in
accordance with the approved Plans and Specification &#147;lawfully issued&#148; to Borrower within the
meaning of Section&nbsp;11-31(a) of the Zoning Resolution of the City of New York (the &#147;<B>Zoning
Resolution</B>).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.12 <U><B>Final Advance</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12.1<U> <I>Conditions to Release of Final Advance</I></U>. In addition to the conditions set forth in
<U><B>Section&nbsp;2.10</B></U> and <U><B>Section&nbsp;2.11</B></U>, above, Lender&#146;s obligation to make the final Advance
in the amount calculated pursuant to <U><B>Section&nbsp;2.12.2</B></U> of this Agreement (the &#147;<B>Final Advance</B>&#148;)
shall be subject to receipt by Lender of the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Completion of Improvements</U>. Evidence satisfactory to Lender and the Construction
Consultant that the Completion of the Improvements has occurred.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Final Building Loan Advance</U>. All conditions to the Final Building Loan Advance
have been satisfied and the Final Building Loan Advance shall have been made or will be made
simultaneously therewith.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Lien Waivers</U>. Duly executed final lien waivers, which shall be conditional lien
waivers or unconditional lien waivers, as determined by Lender in its sole discretion, and
otherwise substantially in the form as <U><B>Exhibit&nbsp;J</B></U> to the Building Loan Agreement from the
General Contractor and Major Contractors and Major Subcontractors who have performed work for the
work so performed, and/or who have supplied labor and/or materials for the labor and/or materials
so supplied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>&#147;As-Built&#148; Plans and Specifications</U>. A full and complete set of &#147;as built&#148; Plans
and Specifications certified to by Borrower&#146;s Architect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Administration Fee</U>. Borrower shall have paid the Administration Fee in accordance
with the provisions of the Administration Fee Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Certificates</U>. Completed AIA Form&nbsp;G704 (Certificate of Substantial Completion) and
completed AIA Form&nbsp;G707 (Consent of Surety to Final Payments) shall have been executed and
delivered by Borrower&#146;s Architect, General Contractor and each surety issuing any of the Required
Construction Bonds. .
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Deposits to Reserves</U>. All deposits to the Reserve Funds required under the
Building Loan Agreement have been made.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U>Other Documents</U>. Such documents, letters, affidavits, reports and assurances, as
Lender, Lender&#146;s counsel and the Construction Consultant may reasonably require.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Required Ratios at Completion</U>. Lender shall have determined that, following the
Final Advance (and taking into consideration the Final Building Loan Advance to be made
simultaneously under the Building Loan) the Required Ratios at Completion have been satisfied, or
Borrower shall have deposited with Lender Cash or a Letter of Credit to satisfy the Required Ratios
at Completion in accordance with <U><B>Section&nbsp;2.12.2</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U>Tenant Estoppel Certificates</U>. Borrower shall have delivered to Lender estoppel
certificates from all of the tenants at the Property in form and substance satisfactory to Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <U>Required Equity Funds</U><B>. </B>Borrower shall furnish Lender with evidence in form and
content satisfactory to Lender that, as of the date of the Final Advance, Borrower has invested
Cash equity in an amount equal to or greater than the Required Equity Funds or has otherwise
complied with the provisions of <U><B>Section&nbsp;2.11.13</B></U> with respect thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <U>Insolvency Opinion</U>. The issuance of and delivery to Lender of six (6)&nbsp;original
counterparty Insolvency Opinions in the form attached hereto as <U><B>Exhibit&nbsp;K</B></U> to the Building
Loan Agreement from Wachtel &#038; Masyr, LLP or another law firm reasonably acceptable to Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <U>ICIP Eligibility</U>. Evidence satisfactory to Lender that Borrower has obtained a
Certificate of Eligibility under the Industrial and Commercial Incentive Program.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12.2 <U><I>Amount of Final Advance</I></U>. Except as expressly provided for below, the amount of
the Final Advance shall be equal to the sum of: (a)&nbsp;any Retainage not previously released and
advanced to Borrower; plus (b)&nbsp;the amount of any Punch List and Deferred Maintenance Reserve
Deposit not funded pursuant to the Building Loan Agreement; plus (c)&nbsp;the positive difference, if
any, between, (i)&nbsp;the Building Loan Amount and (ii)&nbsp;all amounts previously Advanced under the
Building Loan (including the amounts described in clauses (a)&nbsp;and (b)&nbsp;of the sentence). The portion
of the Final Advance described in clause (c)&nbsp;of the foregoing sentence is referred to herein as the
&#147;<B>Project Loan Earn Out Advance</B>&#148; and the corresponding portion of the Final Building Loan Advance is
referred to herein as the &#147;<B>Building Loan Earn Out Advance</B>&#148; and together with the Project Loan Earn
Out Advance, the &#147;<B>Earn Out Advances</B>&#148;. Notwithstanding anything to the contrary provided for
herein, the Earn Out Advances shall be reduced, pro rata, but not below $0.00, if and to the extent
necessary for the Required Ratios at Completion to be achieved following the Final Advances. In
addition, if the Required Ratios at Completion cannot be achieved even if the Earn Out Advances are
reduced to $0.00, Lender shall have the right, but not the obligation, to apply any deposits held
by Lender pursuant to the Rate Lock Agreement and any Interest Reserve Funds to the payment of the
Building Loan and the Project Loan in such order and priority as Lender shall determine in its sole
discretion. If the Required Ratios at Completion cannot be achieved even if the Earn Out Advances
are reduced to $0.00 and the deposits, if any under the Rate Lock Agreement and the Interest
Reserve Funds are applied to the payment of the Loan, Borrower shall deposit with Lender Cash or a
Letter of Credit satisfactory to Lender in an amount equal to the amount which, if used to pay down
the Loan, would result in Stabilized Loan-to-Value Ratio of 75%, and a Debt Service Coverage Ratio
of 1.70 to 1.0, calculated based upon Lender&#146;s determination on a pro-forma basis of Lender&#146;s
Stabilized Net Cash Flow for the 12&nbsp;months immediately following and
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">assuming a thirty (30)&nbsp;year amortization schedule based upon a debt service constant equal to
the greater of the actual debt service constant and 7.50%, and a Debt Service Coverage Ratio of
1.20 to 1.0, calculated based upon Lender&#146;s determination on a pro-forma basis of Lender&#146;s
underwritten Net Operating Income for the 12&nbsp;months immediately following and assuming a thirty
(30)&nbsp;year amortization schedule based upon a debt service constant equal to the greater of the
actual debt service constant and 10.65%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12.3<U> <I>Rate Lock Agreement</I></U>. Upon satisfaction of all of the conditions to the Final Advance
set forth in <U><B>Section&nbsp;2.12.1</B></U>, and subject to the provisions of <U><B>Section&nbsp;2.12.2</B></U>,
Lender shall return to Borrower, the remaining deposits, if any, held by Lender under the Rate Lock
Agreement and not applied by Lender in accordance with the provisions of the Rate Lock Agreement
and any Interest Reserve Funds held by Lender pursuant to the Building Loan Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.13<U> <B>No Reliance</B></U>. All conditions and requirements of this Agreement are for the sole
benefit of Lender and no other person or party (including, without limitation, the Construction
Consultant, the General Contractor and subcontractors (including, without limitation, Major
Contractors and Major Subcontractors) and materialmen engaged in the construction of the
Improvements) shall have the right to rely on the satisfaction of such conditions and requirements
by Borrower. Lender shall have the right, in its sole and absolute discretion, to waive any such
condition or requirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.14<U> <B>Method of Disbursement of Loan Proceeds</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14.1<U> <I>Draw Request to Be Submitted to Lender</I></U>. At such time as Borrower shall desire to
obtain an Advance, Borrower shall complete, execute and deliver to Lender a Borrower&#146;s Requisition
in the form attached as <U><B>Exhibit&nbsp;L</B></U> to the Building Loan Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Borrower&#146;s Requisition shall be accompanied by a completed and itemized Application and
Certificate for Payment (AIA Document No.&nbsp;G702) attached as <U><B>Exhibit&nbsp;M</B></U> to the Building Loan
Agreement or similar form approved by Lender, containing the certification of the General
Contractor or contractor or subcontractor to whom such payment is made, as applicable, and
Borrower&#146;s Architect as to the accuracy of same, together with invoices relating to all items of
Hard Costs covered thereby and accompanied by a cost breakdown showing the cost of work on, and the
cost of materials incorporated into, the Improvements to the date of the requisition. The cost
breakdown shall also show the percentage of completion of each line item on the Project Loan
Budget, and the accuracy of the cost breakdown shall be certified by Borrower and by Borrower&#146;s
Architect. All such applications for payment shall also show all contractors and subcontractors,
including Major Contractors and Major Subcontractors, by name and trade, the total amount of each
contract or subcontract, the amount theretofore paid to each subcontractor as of the date of such
application, and the amount to be paid from the proceeds of the Advance to each contractor and
subcontractor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the completed construction will be reviewed by the Construction Consultant who will
certify to Lender as to the value of completed construction, percentage of completion and
compliance with Plans and Specifications;
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;lien waivers from each other Major Contractor and Major Subcontractors for work done and
materials supplied by them which were paid for pursuant to any prior Draw Request;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;a written request of Borrower for any necessary changes in the Plans and Specifications,
the Project Loan Budget, the Disbursement Schedule or the Construction Schedule;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;copies of all executed change orders, contracts and subcontracts, and, to the extent
requested by Lender, of all inspection or test reports and other documents relating to the
construction of the Project Improvements not previously delivered to Lender; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;such other information, documentation and certification as Lender shall reasonably
request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14.2<U> <I>Procedure of Advances</I></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each Draw Request shall be submitted to Lender and Construction Consultant at least ten
(10)&nbsp;Business Days prior to the Requested Advance Date, and no more frequently than monthly.
Lender shall make the requested Advance on the Requested Advance Date so long as all conditions to
such Advance are satisfied or waived.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Not later than 11:00&nbsp;A.M. New York City time, on the Requested Advance Date, Lender shall
make such Advance available to Borrower in accordance with the terms of this <U><B>Section&nbsp;2.14</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each Advance (other than the Final Advance) shall be in an amount of not less than
$250,000.00.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Each Advance shall be made on a Payment Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14.3<U> <I>Funds Advanced</I></U><B>. </B>Each Advance shall be made by Lender by wire transfer to such
checking account of Borrower as specified to Lender in writing or as provided in <U><B>Section
2.14.4</B></U> below. All proceeds of all Advances shall be used by Borrower only for the purposes for
which such Advances were made. Borrower shall not commingle such funds with other funds of
Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14.4<U> <I>Direct Advances to Third Parties</I></U>. Lender may make, at Lender&#146;s option, any or all
Advances directly or through the Title Company to (i)&nbsp;any Contractor, as applicable, for
construction expenses which shall theretofore have been approved by Lender and for which Borrower
shall have failed to make payment after receipt by Borrower of such applicable Advance, (ii)
Borrower&#146;s Architect to pay its fees to the extent funds are allocated thereto in the Building Loan
Budget if Borrower shall have failed to do so, (iii)&nbsp;the Construction Consultant to pay its fees,
(iv)&nbsp;Lender&#146;s counsel to pay its fees, (v)&nbsp;to pay (x)&nbsp;any installment of interest due under the
Note, (y)&nbsp;any expenses incurred by Lender which are reimbursable by Borrower under the Loan
Documents (including, without limiting the generality of the foregoing, reasonable attorneys&#146; fees
and expenses and other fees and expenses incurred by Lender), provided that Borrower shall
theretofore have received notice from Lender that such expenses have been
</DIV>


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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">incurred and Borrower shall have failed to reimburse Lender for said expenses beyond any grace
periods provided for said reimbursement under the Note, this Agreement or any of the other Loan
Documents, or (z)&nbsp;following the occurrence and continuation of an Event of Default, any other sums
due to Lender under the Note, this Agreement or any of the other Loan Documents, all to the extent
that the same are not paid by the respective due dates thereof, and (vi)&nbsp;any other Person to whom
Lender in good faith determines payment is due and any portion of the Loan so disbursed by Lender
shall be deemed disbursed as of the date on which the Person to whom payment is made receives the
same. The execution of this Agreement by Borrower shall, and hereby does, constitute an
irrevocable authorization so to advance the proceeds of the Loan directly to any such Person or
through the Title Company to such Persons in accordance with this <U><B>Section&nbsp;2.14.4</B></U> as amounts
become due and payable to them hereunder and any portion of the Loan so disbursed by Lender shall
be deemed disbursed as of the date on which the Person to whom payment is made receives the same.
No further authorization from Borrower shall be necessary to warrant such direct Advances to such
relevant Person, and all such Advances shall satisfy <I>pro tanto </I>the obligations of Lender hereunder
and shall be secured by the Mortgage and the other Loan Documents as fully as if made directly to
Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14.5<U> <I>One Advance Per Month</I></U>. Lender shall have no obligation to make Advances of the Loan
more often than once in each calendar month except that Lender, in its sole discretion, shall have
the right but not the obligation, to make additional advances per month for interest, fees and
expenses due under the Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14.6<U> <I>Advances Do Not Constitute a Waiver</I></U><B>. </B>No Advance shall constitute a waiver of any of
the conditions of Lender&#146;s obligation to make further Advances nor, in the event Borrower is unable
to satisfy any such condition, shall any Advance have the effect of precluding Lender from
thereafter declaring such inability to be an Event of Default hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14.7<U> <I>Trust Fund Provisions</I></U><B>. </B>All proceeds advanced hereunder shall be subject to the trust
fund provisions of <U><B>Section&nbsp;13</B></U> of the Lien Law. Nothing contained in this Agreement is
intended to constitute a promise by Borrower, express or implied, or to create any obligation,
express or implied, on the part of Borrower, to make an &#147;improvement,&#148; as such term is defined in
the Lien Law of the State of New York, and no advance of proceeds of the Loan shall at any time be
conditioned, directly or indirectly, upon the making of any such &#147;improvement&#148;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14.8<U> <I>Advances and Disbursements Under Completion Guaranty</I></U><B>. </B>Notwithstanding anything to the
contrary contained in this Agreement or in any other Loan Document, Borrower hereby irrevocably and
unconditionally authorizes Lender to make any disbursements of proceeds of the Loan or of any
Reserve Funds held by Lender to Guarantor in accordance with the Guaranty of Completion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.15<U> <B>Interest Advances</B></U>. Notwithstanding the requirements contained in Section&nbsp;2.10,
Section&nbsp;2.11 and Section&nbsp;2.12, and provided that no Event of Default shall have occurred, Lender
shall make an Advance on each Payment Date during the Construction Term from the Interest Reserve
Line Item, if and to the extent funds remain available under such line item, to pay interest then
due under the Note. Notwithstanding the foregoing, if and to the extent that funds are available
in the Additional Interest Reserve Deposit, Lender shall first apply funds
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">available in the Additional Interest Reserve Deposit to the payment of interest due, prior to
making an Advance for such purpose. Nothing contained in this <U>Section&nbsp;2.15</U> shall limit or
derogate from Borrower&#146;s absolute and unconditional obligation to pay interest due under the Note.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE III.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>CONDITIONS PRECEDENT</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.1 <U><B>Conditions Precedent to Closing</B></U>. The obligation of Lender to make the Loan hereunder
is subject to the fulfillment by Borrower or waiver by Lender of the conditions precedent set forth
in <U>Section&nbsp;3.1</U> of the Building Loan Agreement no later than the Closing Date.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IV.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>REPRESENTATIONS AND WARRANTIES</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.1 <U><B>Borrower Representations</B></U><B>. </B>The representations and warranties of Borrower set forth
in <U>Section&nbsp;4.1</U> of the Building Loan Agreement are incorporated herein by reference as if
fully set forth herein and remade by Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.2 <U><B>Survival of Representations</B></U><B>. </B>Borrower agrees that all of the representations and
warranties of Borrower set forth in <U><B>Section&nbsp;4.1</B></U> hereof and elsewhere in this Agreement and
in the other Loan Documents shall survive for so long as any amount remains owing to Lender under
this Agreement or any of the other Loan Documents by Borrower. All representations, warranties,
covenants and agreements made in this Agreement or in the other Loan Documents by Borrower shall be
deemed to have been relied upon by Lender notwithstanding any investigation heretofore or hereafter
made by Lender or on its behalf.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE V.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>BORROWER COVENANTS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.1<U><B>
Affirmative Covenants</B></U><B>. </B>The affirmative covenants of Borrower set forth in <U>Section
5.1</U> of the Building Loan Agreement are incorporated herein by reference as if fully set forth
herein and remade by Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.2 <U><B>Negative Covenants</B></U>. The negative covenants of Borrower set forth in <U>Section
5.2</U> of the Building Loan Agreement are incorporated herein by reference as if fully set forth
herein and remade by Borrower.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VI.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INSURANCE; CASUALTY; CONDEMNATION; REQUIRED REPAIRS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.1<U><B>
Insurance</B></U>. Borrower, at its sole cost and expense, shall obtain and maintain, or
cause to be maintained, insurance policies necessary to satisfy the requirements of <U>Section
6.1</U> of the Building Loan Agreement.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.2 <U><B>Casualty and Condemnation</B></U>. <U>Section&nbsp;6.2</U> of the Building Loan Agreement is
incorporated herein by reference as if fully set forth herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.3 <U><B>Application of Net Proceeds</B></U>. <U>Section&nbsp;6.3</U> of the Building Loan Agreement is
incorporated herein by reference as if fully set forth herein.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VII.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>RESERVE FUNDS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.1
<B><U>Reserve Funds</U></B>. Borrower shall establish such accounts and make such deposits as are
required by <U>Article&nbsp;VII</U> of the Building Loan Agreement. The provisions of <U>Article
VII</U> of the Building Loan Agreement are incorporated herein by reference as if fully set forth
herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.2
<B><U>Other Loan Documents</U></B>. Borrower&#146;s obligations under this Article&nbsp;VII shall be
suspended for so long as sufficient amounts are on deposit and reserved as required by the Building
Loan Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.3 <B><U>Reserve Funds, Generally</U></B>. Borrower grants to Lender a first-priority perfected
security interest in each of the Reserve Funds and any and all monies now or hereafter deposited in
each Reserve Fund as additional security for payment of the Debt. Until expended or applied in
accordance herewith, the Reserve Funds shall constitute additional security for the Debt. Upon the
occurrence of an Event of Default, Lender may, in addition to any and all other rights and remedies
available to Lender, apply any sums then present in any or all of the Reserve Funds to the payment
of the Debt in any order in its sole discretion. The Reserve Funds shall not constitute trust
funds and may be commingled with other monies held by Lender. All interest on a Reserve Fund shall
not be added to or become a part thereof and shall be the sole property of and shall be paid to
Lender. Borrower shall be responsible for payment of any federal, state or local income or other
tax applicable to the interest earned on the Reserve Funds credited or paid to Borrower. Borrower
shall not, without obtaining the prior written consent of Lender, further pledge, assign or grant
any security interest in any Reserve Fund or the monies deposited therein or permit any lien or
encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements,
except those naming Lender as the secured party, to be filed with respect thereto. Lender shall
not be liable for any loss sustained on the investment of any funds constituting the Reserve Funds.
Borrower shall indemnify Lender and hold Lender harmless from and against any and all actions,
suits, claims, demands, liabilities, losses, damages, obligations and costs and expenses (including
litigation costs and reasonable attorneys fees and expenses) arising from or in any way connected
with the Reserve Funds or the performance of the obligations for which the Reserve Funds were
established. Borrower shall assign to Lender all rights and claims Borrower may have against all
persons or entities supplying labor, materials or other services which are to be paid from or
secured by the Reserve Funds; provided, however, that Lender may not pursue any such right or claim
unless an Event of Default has occurred and remains uncured.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VIII.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>DEFAULTS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.1
<B><U>Event of Default</U></B>. (a)&nbsp;Each of the following events shall constitute an event of
default hereunder (an &#147;<B>Event of Default</B>&#148;):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if any portion of the Debt is not paid within five (5)&nbsp;days of the date
when due (except that Borrower shall not be afforded such 5-day cure period for the
portion of the Debt due and payable on the Maturity Date);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if any of the Taxes (other than Taxes being contested pursuant to
<U><B>Section&nbsp;5.1.2</B></U> of this Agreement) are not paid when the same are due and
payable or Other Charges are not paid within five (5)&nbsp;days after Borrower receives
notice of same;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the Policies are not kept in full force and effect, or if certified
copies of the Policies are not delivered to Lender upon request;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if Borrower Transfers or otherwise encumbers any portion of the Property
without Lender&#146;s prior written consent in violation of the provisions of this
Agreement or the Mortgage;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if any material representation or warranty made by Borrower or Guarantor
herein or in any other Loan Document, or in any report, certificate, financial
statement or other instrument, agreement or document furnished to Lender shall have
been false or misleading in any material respect as of the date the representation
or warranty was made;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if Borrower, Mezzanine Borrower, Guarantor or any other guarantor under
any guaranty issued in connection with the Loan shall make an assignment for the
benefit of creditors;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) if a receiver, liquidator or trustee shall be appointed for Borrower,
Mezzanine Borrower, Guarantor or any other guarantor under any guarantee issued in
connection with the Loan or if Borrower, Mezzanine Borrower, Guarantor or such other
guarantor shall be adjudicated a bankrupt or insolvent, or if any petition for
bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any
similar federal or state law, shall be filed by or against, consented to, or
acquiesced in by, Borrower, Mezzanine Borrower, Guarantor or such other guarantor,
or if any proceeding for the dissolution or liquidation of Borrower, Mezzanine
Borrower, Guarantor or such other guarantor shall be instituted; provided, however,
if such appointment, adjudication, petition or proceeding was involuntary and not
consented to by Borrower, Mezzanine Borrower, Guarantor or such other guarantor,
upon the same not being discharged, stayed or dismissed within ninety (90)&nbsp;days;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) if Borrower attempts to assign its rights under this Agreement or any of
the other Loan Documents or any interest herein or therein in contravention of the
Loan Documents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) if Borrower breaches any covenant contained in <U><B>Section&nbsp;4.1.30</B></U>;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) with respect to any term, covenant or provision set forth herein which
specifically contains a notice requirement or grace period, if Borrower shall be in
default under such term, covenant or condition after the giving of such notice or
the expiration of such grace period;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) if any of the assumptions contained in the Insolvency Opinion delivered to
Lender in connection with the Loan, or in any Additional Insolvency Opinion
delivered subsequent to the closing of the Loan, is or shall become untrue in any
material respect;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) if Borrower fails to pay the Administration Fee, or any portion or
installment thereof, within five (5)&nbsp;days of the date when due;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) If Borrower fails to deposit with Lender the cash deposit or Letter of
Credit required in accordance with <U><B>Section&nbsp;2.12.2</B></U> hereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) if Borrower fails to materially comply with the Construction Schedule;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) if the Completion of the Improvements has not occurred on or prior to the
Required Completion Date, subject to Force Majeure or if Lender or the Construction
Consultant determines that Completion of the Improvements cannot occur on or prior
to the Required Completion Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) if any voucher or invoice is fraudulently submitted by Borrower or in
connection with any Advance for services performed or for materials used in or
furnished for the Property;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) if there is any cessation at any time in construction of the Project
Improvements for more than twenty (20)&nbsp;consecutive Business Days, other than as a
result of Force Majeure;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) if Borrower expressly confesses in writing to Lender its inability to
continue or complete construction of the Project Improvements in accordance with
this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) if Lender, the Construction Consultant or their representatives are not
permitted at all reasonable times upon not less than three (3)&nbsp;Business Days notice
to enter upon the Property, inspect the Improvements and the construction thereof
and all materials, fixtures and articles used or to be used in the construction and
to examine all the Plans and Specifications, or if Borrower shall
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;fail to furnish to Lender or its authorized representative, when requested upon
not less than five (5)&nbsp;Business Days notice, copies of the Plans and Specifications;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) if a material adverse change in Borrower&#146;s financial condition shall occur
which would, in Lender&#146;s reasonable determination, materially and adversely affect
Borrower&#146;s ability to perform its obligations under this Agreement or any other
document evidencing or securing the Loan beyond any applicable notice and grace
periods expressly set forth in the Loan Documents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) if the conditions precedent to the Final Advance have not been satisfied
on or prior to the Required Completion Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) If the Guarantor fails to maintain the Required Liquidity and the
Required Net Worth covenants specified in the Guaranty of Completion or if the
Guarantor shall default under the Guaranty of Completion or the Guaranty of Recourse
Carveouts;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) if a material default has occurred and continues beyond any applicable
cure period under the Management Agreement (or any Replacement Management Agreement)
and if such default permits the Manager thereunder to terminate or cancel the
Management Agreement (or any Replacement Management Agreement);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) if Borrower shall continue to be in Default under any of the terms,
covenants or conditions of <U><B>Section&nbsp;9.1</B></U> hereof, or fails to cooperate with
Lender in connection with a Securitization pursuant to the provisions of <U><B>Section
9.1</B></U> hereof, in either case for three (3)&nbsp;Business Days after notice to Borrower
from Lender;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxv) if an Event of Default (as defined in the Building Loan Agreement) shall
have occurred;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvi) if there shall be default by Borrower or Guarantor under any of the
other Loan Documents, beyond applicable cure periods, if any, contained in such
documents, whether as to Borrower, Guarantor or the Property, or if any other such
event shall occur or condition shall exist, if the effect of such other default,
event or condition is to accelerate the maturity of all or any portion of the Debt
or to permit Lender to accelerate the maturity of all or any portion of the Debt;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvii) if Guarantor shall dissolve or cease to exist during the term of the
Loan, except in compliance with the provisions of <U><B>Section&nbsp;5.2.15</B></U> of the
Building Loan Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxviii) if all of the Initial Advance Conditions, including, without
limitation, the Unsatisfied Initial Advance Conditions, are not satisfied by the
Required Initial Advance Date; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxix) if Borrower shall continue to be in Default under any of the other
terms, covenants or conditions of this Agreement not specified in subsections (i)
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">to (xxviii)&nbsp;above, for twenty (20)&nbsp;days after notice to Borrower from Lender,
in the case of any Default which can be cured by the payment of a sum of money, or
for thirty (30)&nbsp;days after notice from Lender in the case of any other Default;
provided, however, that if such non-monetary Default is susceptible of cure but
cannot reasonably be cured within such thirty (30)&nbsp;day period and provided further
that Borrower shall have commenced to cure such Default within such thirty (30)&nbsp;day
period and thereafter diligently and expeditiously proceeds to cure the same, such
thirty (30)&nbsp;day period shall be extended for such time as is reasonably necessary
for Borrower in the exercise of due diligence to cure such Default, such additional
period not to exceed sixty (60)&nbsp;days.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Upon the occurrence of an Event of Default (other than an Event of Default described in
clauses (vi), (vii)&nbsp;or (viii)&nbsp;above) and at any time thereafter, in addition to any other rights or
remedies available to it pursuant to this Agreement and the other Loan Documents or at law or in
equity, Lender may take such action, without notice or demand, that Lender deems advisable to
protect and enforce its rights against Borrower and the Property, including, without limitation,
declaring the Debt to be immediately due and payable, and Lender may enforce or avail itself of any
or all rights or remedies provided in the Loan Documents against Borrower and any or all of the
Property, including, without limitation, all rights or remedies available at law or in equity; and
upon any Event of Default described in clauses (vi), (vii)&nbsp;or (viii)&nbsp;above, the Debt and Other
Obligations of Borrower hereunder and under the other Loan Documents shall immediately and
automatically become due and payable, without notice or demand, and Borrower hereby expressly
waives any such notice or demand, anything contained herein or in any other Loan Document to the
contrary notwithstanding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.2
<U><B>Remedies</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Upon the occurrence of an Event of Default, all or any one or more of the rights, powers,
privileges and other remedies available to Lender against Borrower under this Agreement or any of
the other Loan Documents executed and delivered by, or applicable to, Borrower or at law or in
equity may be exercised by Lender at any time and from time to time, whether or not all or any of
the Debt shall be declared due and payable, and whether or not Lender shall have commenced any
foreclosure proceeding or other action for the enforcement of its rights and remedies under any of
the Loan Documents with respect to all or any part of the Property. Any such actions taken by
Lender shall be cumulative and concurrent and may be pursued independently, singularly,
successively, together or otherwise, at such time and in such order as Lender may determine in its
sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting
the other rights and remedies of Lender permitted by law, equity or contract or as set forth herein
or in the other Loan Documents. Without limiting the generality of the foregoing, Borrower agrees
that if an Event of Default is continuing (i)&nbsp;Lender is not subject to any &#147;one action&#148; or
&#147;election of remedies&#148; law or rule, and (ii)&nbsp;all liens and other rights, remedies or privileges
provided to Lender shall remain in full force and effect until Lender has exhausted all of its
remedies against the Property and the Mortgage has been foreclosed, sold and/or otherwise realized
upon in satisfaction of the Debt or the Debt has been paid in full.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;With respect to Borrower and the Property, nothing contained herein or in any other Loan
Document shall be construed as requiring Lender to resort to the Property for the satisfaction of
any of the Debt in any preference or priority, and Lender may seek satisfaction out of the
Property, or any part thereof, in its absolute discretion in respect of the Debt. In addition,
Lender shall have the right from time to time to partially foreclose the Mortgage in any manner and
for any amounts secured by the Mortgage then due and payable as determined by Lender in its sole
discretion including, without limitation, the following circumstances: (i)&nbsp;in the event Borrower
defaults beyond any applicable grace period in the payment of one or more scheduled payments of
principal and interest, Lender may foreclose the Mortgage to recover such delinquent payments or
(ii)&nbsp;in the event Lender elects to accelerate less than the entire outstanding principal balance of
the Loan, Lender may foreclose the Mortgage to recover so much of the principal balance of the Loan
as Lender may accelerate and such other sums secured by the Mortgage as Lender may elect.
Notwithstanding one or more partial foreclosures, the Property shall remain subject to the Mortgage
to secure payment of sums secured by the Mortgage and not previously recovered.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Lender shall have the right from time to time to sever the Note and the other Loan
Documents into one or more separate notes, mortgages and other security documents (the &#147;<B>Severed
Loan Documents</B>&#148;) in such denominations as Lender shall determine in its sole discretion for
purposes of evidencing and enforcing its rights and remedies provided hereunder. Borrower shall
execute and deliver to Lender from time to time, promptly after the request of Lender, a severance
agreement and such other documents as Lender shall request in order to effect the severance
described in the preceding sentence, all in form and substance reasonably satisfactory to Lender.
Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled
with an interest, in its name and stead to make and execute all documents necessary or desirable to
effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue
thereof; provided, however, Lender shall not make or execute any such documents under such power
until three (3)&nbsp;Business Days after notice has been given to Borrower by Lender of Lender&#146;s intent
to exercise its rights under such power. Borrower shall be obligated to pay any costs or expenses
incurred in connection with the preparation, execution, recording or filing of the Severed Loan
Documents and the Severed Loan Documents shall not contain any representations, warranties or
covenants not contained in the Loan Documents and any such representations and warranties contained
in the Severed Loan Documents will be given by Borrower only as of the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.3 <U><B>Remedies Cumulative; Waivers</B></U><B>. </B>The rights, powers and remedies of Lender under this
Agreement shall be cumulative and not exclusive of any other right, power or remedy which Lender
may have against Borrower pursuant to this Agreement or the other Loan Documents, or existing at
law or in equity or otherwise. Lender&#146;s rights, powers and remedies may be pursued singularly,
concurrently or otherwise, at such time and in such order as Lender may determine in Lender&#146;s sole
discretion. No delay or omission to exercise any remedy, right or power accruing upon an Event of
Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but
any such remedy, right or power may be exercised from time to time and as often as may be deemed
expedient. A waiver of one Default or Event of Default with respect to Borrower shall not be
construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any
remedy, right or power consequent thereon.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IX.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>SPECIAL PROVISIONS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Article&nbsp;9</U> of the Building Loan Agreement is incorporated herein by reference as if
fully set forth herein.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE X.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>MISCELLANEOUS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.1 <U><B>Survival</B></U><B>. </B>This Agreement and all covenants, agreements, representations and
warranties made herein and in the certificates delivered pursuant hereto shall survive the making
by Lender of the Loan and the execution and delivery to Lender of the Note, and shall continue in
full force and effect so long as all or any of the Debt is outstanding and unpaid unless a longer
period is expressly set forth herein or in the other Loan Documents. Whenever in this Agreement
any of the parties hereto is referred to, such reference shall be deemed to include the legal
representatives, successors and assigns of such party. All covenants, promises and agreements in
this Agreement, by or on behalf of Borrower, shall inure to the benefit of the legal
representatives, successors and assigns of Lender.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.2 <U><B>Lender&#146;s Discretion</B></U><B>. </B>Whenever pursuant to this Agreement, 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 whether arrangements or terms are
satisfactory or not satisfactory shall (except as is otherwise specifically herein provided) be in
the sole discretion of Lender and shall be final and conclusive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.3 <U><B>Governing Law</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;<B>THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, THE LOAN WAS MADE BY LENDER AND
ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT
HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL
RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS,
INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING
HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT
THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIEN AND
SECURITY INTEREST CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE
GOVERNED BY AND CONSTRUED</B>
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ACCORDING TO THE LAW OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT,
TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL
GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE
OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER
HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER
JURISDICTION GOVERNS THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT, THE
NOTE AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE OTHER LOAN DOCUMENTS MAY AT LENDER&#146;S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE
COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW AND BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED
ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY
IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING.
BORROWER DOES HEREBY DESIGNATE AND APPOINT:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt"><B>National Registered Agents, Inc.<BR>
875 Avenue of the Americas, Suite&nbsp;501<BR>
New York, New York 10001</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS
WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW
YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN
NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE
DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR
PROCEEDING IN THE STATE OF NEW YORK. BORROWER (I)&nbsp;SHALL GIVE PROMPT NOTICE TO LENDER OF ANY
CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II)&nbsp;MAY AT ANY TIME AND FROM TIME TO TIME
DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE
AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III)
SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW
YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.</B>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.4 <U><B>Modification, Waiver in Writing</B></U><B>. </B>No modification, amendment, extension, discharge,
termination or waiver of any provision of this Agreement, or of the Note, or of any other Loan
Document, nor consent to any departure by Borrower therefrom, shall in any event be effective
unless the same shall be in a writing signed by the party against whom enforcement is sought, and
then such waiver or consent shall be effective only in the specific instance, and for the purpose,
for which given. Except as otherwise expressly provided herein, no notice to, or demand on
Borrower, shall entitle Borrower to any other or future notice or demand in the same, similar or
other circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.5 <U><B>Delay Not a Waiver</B></U><B>. </B>Neither any failure nor any delay on the part of Lender in
insisting upon strict performance of any term, condition, covenant or agreement, or exercising any
right, power, remedy or privilege hereunder, or under the Note or under any other Loan Document, or
any other instrument given as security therefor, shall operate as or constitute a waiver thereof,
nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise
of any other right, power, remedy or privilege. In particular, and not by way of limitation, by
accepting payment after the due date of any amount payable under this Agreement, the Note or any
other Loan Document, Lender shall not be deemed to have waived any right either to require prompt
payment when due of all other amounts due under this Agreement, the Note or the other Loan
Documents, or to declare a default for failure to effect prompt payment of any such other amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.6 <U><B>Notices</B></U><B>. </B>All notices, consents, approvals and requests required or permitted
hereunder or under any other Loan Document shall be given in writing and shall be effective for all
purposes if hand delivered or sent by (a)&nbsp;certified or registered United States mail, postage
prepaid, return receipt requested or (b)&nbsp;expedited prepaid delivery service, either commercial or
United States Postal Service, with proof of attempted delivery, and by telecopier (with answer back
acknowledged), addressed as follows (or at such other address and Person as shall be designated
from time to time by any party hereto, as the case may be, in a written notice to the other parties
hereto in the manner provided for in this Section):
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="82%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to Lender:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bear Stearns Commercial Mortgage, Inc.<BR>
383 Madison Avenue<BR>
New York, New York 10179<BR>
Attention: J. Christopher Hoeffel<BR>
Facsimile No.: (212)&nbsp;272-7047</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">with a copy to:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Kelley Drye &#038; Warren LLP<BR>
101 Park Avenue<BR>
New York, New York 10178<BR>
Attention: Paul A. Keenan, Esq.<BR>
Facsimile No.: (212)&nbsp;808-7897</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to Borrower:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Acadia Atlantic Avenue LLC<BR>
c/o Acadia Realty Trust<BR>
1311 Mamaroneck Avenue, Suite&nbsp;260<BR>
White Plains, New York 10605</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="82%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Robert Masters, Esq., General Counsel<BR>
Facsimile No.: (914)&nbsp;288-2162</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to MERS:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MERS Commercial<BR>
P.O. Box 2300<BR>
Flint, Michigan 48501-2300</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A notice shall be deemed to have been given: in the case of hand delivery, at the time of
delivery; in the case of registered or certified mail, when delivered or the first attempted
delivery on a Business Day; or in the case of expedited prepaid delivery and telecopy, upon the
first attempted delivery on a Business Day; or in the case of telecopy, upon sender&#146;s receipt of a
machine-generated confirmation of successful transmission after advice by telephone to recipient
that a telecopy notice is forthcoming.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.7 <U><B>Trial by Jury.</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>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 THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN
CONNECTION THEREWITH. 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.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.8 <U><B>Headings</B></U><B>. </B>The Article and/or Section headings and the Table of Contents in this
Agreement are included herein for convenience of reference only and shall not constitute a part of
this Agreement for any other purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.9 <U><B>Severability</B></U><B>. </B>Wherever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.10 <U><B>Preferences</B></U><B>. </B>Lender shall have the continuing and exclusive right to apply or reverse
and reapply any and all payments by Borrower to any portion of the obligations of Borrower
hereunder. To the extent Borrower makes a payment or payments to Lender, which payment or proceeds
or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set
aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law,
state or federal law, common law or equitable cause, then, to the extent of such payment or
proceeds received, the obligations hereunder or part thereof intended to be satisfied shall be
revived and continue in full force and effect, as if such payment or proceeds had not been received
by Lender.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.11 <U><B>Waiver of Notice</B></U><B>. </B>Borrower shall not be entitled to any notices of any nature
whatsoever from Lender except with respect to matters for which this Agreement or the other Loan
Documents specifically and expressly provide for the giving of notice by Lender to Borrower and
except with respect to matters for which Borrower is not, pursuant to applicable Legal
Requirements, permitted to waive the giving of notice. Borrower hereby expressly waives the right
to receive any notice from Lender with respect to any matter for which this Agreement or the other
Loan Documents do not specifically and expressly provide for the giving of notice by Lender to
Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.12 <U><B>Remedies of Borrower</B></U><B>. </B>In the event that a claim or adjudication is made that Lender
or its agents have acted unreasonably or unreasonably delayed acting in any case where by law or
under this Agreement or the other Loan Documents, Lender or such agent, as the case may be, has an
obligation to act reasonably or promptly, Borrower agrees that neither Lender nor its agents shall
be liable for any monetary damages, and Borrower&#146;s sole remedies shall be limited to commencing an
action seeking injunctive relief or declaratory judgment. The parties hereto agree that any action
or proceeding to determine whether Lender has acted reasonably shall be determined by an action
seeking declaratory judgment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.13 <U><B>Expenses; Indemnity</B></U><B>. </B>(1)&nbsp;Borrower covenants and agrees to pay or, if Borrower fails
to pay, to reimburse, Lender upon receipt of written notice from Lender for all reasonable costs
and expenses (including reasonable attorneys&#146; fees and disbursements) incurred by Lender in
connection with (i)&nbsp;the preparation, negotiation, execution and delivery of this Agreement and the
other Loan Documents and the consummation of the transactions contemplated hereby and thereby and
all the costs of furnishing all opinions by counsel for Borrower (including without limitation any
opinions requested by Lender as to any legal matters arising under this Agreement or the other Loan
Documents with respect to the Property); (ii)&nbsp;Borrower&#146;s ongoing performance of and compliance with
Borrower&#146;s respective agreements and covenants contained in this Agreement and the other Loan
Documents on its part to be performed or complied with after the Closing Date, including, without
limitation, confirming compliance with environmental and insurance requirements; (iii)&nbsp;Lender&#146;s
ongoing performance and compliance with all agreements and conditions contained in this Agreement
and the other Loan Documents on its part to be performed or complied with after the Closing Date;
(iv)&nbsp;the negotiation, preparation, execution, delivery and administration of any consents,
amendments, waivers or other modifications to this Agreement and the other Loan Documents and any
other documents or matters requested by Lender; (v)&nbsp;securing Borrower&#146;s compliance with any
requests made pursuant to the provisions of this Agreement; (vi)&nbsp;the filing and recording fees and
expenses, title insurance and reasonable fees and expenses of counsel for providing to Lender all
required legal opinions, and other similar expenses incurred in creating and perfecting the Lien in
favor of Lender pursuant to this Agreement and the other Loan Documents; (vii)&nbsp;enforcing or
preserving any rights, in response to third party claims or the prosecuting or defending of any
action or proceeding or other litigation, in each case against, under or affecting Borrower, this
Agreement, the other Loan Documents, the Property, or any other security given for the Loan; and
(viii)&nbsp;enforcing any obligations of or collecting any payments due from Borrower under this
Agreement, the other Loan Documents or with respect to the Property (including any fees incurred by
Servicer in connection with the transfer of the Loan to a special servicer prior to a Default or
Event of Default) or in connection with any refinancing or restructuring of the credit arrangements
provided under this Agreement in the nature of a &#147;work-out&#148; or of any insolvency
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or bankruptcy proceedings; provided, however, that Borrower shall not be liable for the
payment of any such costs and expenses to the extent the same arise by reason of the gross
negligence, illegal acts, fraud or willful misconduct of Lender. Any cost and expenses due and
payable to Lender may be paid from any amounts in the Clearing Account or Cash Management Account,
as applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Borrower shall indemnify, defend and hold harmless Lender from and against any and all
other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims,
costs, expenses and disbursements of any kind or nature whatsoever (including, without limitation,
the reasonable fees and disbursements of counsel for Lender in connection with any investigative,
administrative or judicial proceeding commenced or threatened, whether or not Lender shall be
designated a party thereto), that may be imposed on, incurred by, or asserted against Lender in any
manner relating to or arising out of (i)&nbsp;any breach by Borrower of its obligations under, or any
material misrepresentation by Borrower contained in, this Agreement or the other Loan Documents, or
(ii)&nbsp;the use or intended use of the proceeds of the Loan (collectively, the &#147;<B>Indemnified
Liabilities</B>&#148;); provided, however, that Borrower shall not have any obligation to Lender hereunder
to the extent that such Indemnified Liabilities arise from the gross negligence, illegal acts,
fraud or willful misconduct of Lender. To the extent that the undertaking to indemnify, defend and
hold harmless set forth in the preceding sentence may be unenforceable because it violates any law
or public policy, Borrower shall pay the maximum portion that it is permitted to pay and satisfy
under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by
Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Borrower covenants and agrees to pay for or, if Borrower fails to pay, to reimburse Lender
for, any fees and expenses incurred by any Rating Agency in connection with any consent, approval,
waiver or confirmation obtained from such Rating Agency pursuant to the terms and conditions of
this Agreement or any other Loan Document and Lender shall be entitled to require payment of such
fees and expenses as a condition precedent to the obtaining of any such consent, approval, waiver
or confirmation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.14
<U><B>Schedules and Exhibits Incorporated</B></U>. The Schedules and Exhibits annexed to the
Building Loan Agreement are hereby incorporated herein as a part of this Agreement with the same
effect as if set forth in the body hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.15
<U><B>Offsets, Counterclaims and Defenses</B></U>. Any assignee of Lender&#146;s interest in and to this
Agreement, the Note and the other Loan Documents shall take the same free and clear of all offsets,
counterclaims or defenses which are unrelated to such documents which Borrower may otherwise have
against any assignor of such documents, and no such unrelated counterclaim or defense shall be
interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon
such documents and any such right to interpose or assert any such unrelated offset, counterclaim or
defense in any such action or proceeding is hereby expressly waived by Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.16 <U><B>No Joint Venture or Partnership; No Third Party Beneficiaries.</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Borrower and Lender intend that the relationships created hereunder and under the other
Loan Documents be solely that of borrower and lender. Nothing herein or
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->39<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">therein is intended to create a joint venture, partnership, tenancy-in-common, or joint
tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Property
other than that of mortgagee, beneficiary or lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;This Agreement and the other Loan Documents are solely for the benefit of Lender and
Borrower and nothing contained in this Agreement or the other Loan Documents shall be deemed to
confer upon anyone other than Lender and Borrower any right to insist upon or to enforce the
performance or observance of any of the obligations contained herein or therein. All conditions to
the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the
benefit of Lender and no other Person shall have standing to require satisfaction of such
conditions in accordance with their terms or be entitled to assume that Lender will refuse to make
the Loan in the absence of strict compliance with any or all thereof and no other Person shall
under any circumstances be deemed to be a beneficiary of such conditions, any or all of which may
be freely waived in whole or in part by Lender if, in Lender&#146;s sole discretion, Lender deems it
advisable or desirable to do so.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.17 <U><B>Publicity</B></U><B>. </B>All news releases, publicity or advertising by Borrower or its Affiliates
through any media intended to reach the general public which refers to the Loan Documents or the
financing evidenced by the Loan Documents, to Lender, BSCMI, or any of their Affiliates shall be
subject to the prior written approval of Lender.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.18
<U><B>Waiver of Marshalling of Assets</B></U><B>. </B>To the fullest extent permitted by law, Borrower,
for itself and its successors and assigns, waives all rights to a marshalling of the assets of
Borrower, Borrower&#146;s partners and others with interests in Borrower, and of the Property, and
agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale in
inverse order of alienation, homestead exemption, the administration of estates of decedents, or
any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan
Documents to a sale of the Property for the collection of the Debt without any prior or different
resort for collection or of the right of Lender to the payment of the Debt out of the net proceeds
of the Property in preference to every other claimant whatsoever.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.19
<U><B>Waiver of Counterclaim</B></U><B>. </B>Borrower hereby waives the right to assert a counterclaim,
other than a compulsory counterclaim, in any action or proceeding brought against it by Lender or
its agents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.20
<U><B>Identical Obligations; Conflict; Construction of Documents; Reliance</B></U><B>. </B>To the extent
that Borrower has identical obligations under this Agreement and under any of the other Loan
Agreements, performance by Borrower of such obligations under this Agreement or any of the other
Loan Agreements shall be deemed performance by Borrower, as applicable, under all such Loan
Agreements and hereunder of such obligations. In the event of any conflict between the provisions
of this Agreement and any of the other Loan Documents, the provisions of this Agreement shall
control. The parties hereto acknowledge that they were represented by competent counsel in
connection with the negotiation, drafting and execution of the Loan Documents and that such Loan
Documents shall not be subject to the principle of construing their meaning against the party which
drafted same. Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on
its own judgment and advisors in entering into the Loan without relying in any manner on any
statements, representations or recommendations of
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Lender or any parent, subsidiary or Affiliate of Lender. Lender shall not be subject to any
limitation whatsoever in the exercise of any rights or remedies available to it under any of the
Loan Documents or any other agreements or instruments which govern the Loan by virtue of the
ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest any of them
may acquire in Borrower, and Borrower hereby irrevocably waives the right to raise any defense or
take any action on the basis of the foregoing with respect to Lender&#146;s exercise of any such rights
or remedies. Borrower acknowledges that Lender engages in the business of real estate financings
and other real estate transactions and investments which may be viewed as adverse to or competitive
with the business of Borrower or its Affiliates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.21
<U><B>Brokers and Financial Advisors</B></U><B>. </B>Borrower hereby represents that it has dealt with no
financial advisors, brokers, underwriters, placement agents, agents or finders in connection with
the transactions contemplated by this Agreement. Borrower hereby agrees to indemnify, defend and
hold Lender harmless from and against any and all claims, liabilities, costs and expenses of any
kind (including Lender&#146;s attorneys&#146; fees and expenses) in any way relating to or arising from a
claim by any Person that such Person acted on behalf of Borrower or Lender in connection with the
transactions contemplated herein. The provisions of this <U><B>Section&nbsp;10.21</B></U> shall survive the
expiration and termination of this Agreement and the payment of the Debt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.22 <U><B>Prior Agreements</B></U><B>. </B>This Agreement and the other Loan Documents contain the entire
agreement of the parties hereto and thereto in respect of the transactions contemplated hereby and
thereby, and all prior agreements among or between such parties, whether oral or written,
including, without limitation, the Commitment Letter dated June&nbsp;28, 2007 between Borrower and
Lender are superseded by the terms of this Agreement and the other Loan Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.23
<U><B>Joint and Several Liability</B></U>. If Borrower consists of more than one (1)&nbsp;Person the
obligations and liabilities of each Person shall be joint and several.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.24
<U><B>Certain Additional Rights of Lender (VCOC)</B></U>. Notwithstanding anything to the contrary
contained in this Agreement, Lender shall have:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the right to routinely consult with and advise Borrower&#146;s management regarding the
significant business activities and business and financial developments of Borrower;
<U>provided</U>, <U>however</U>, <I>that </I>such consultations shall not include discussions of
environmental compliance programs or disposal of hazardous substances. Consultation meetings
should occur on a regular basis (no less frequently than quarterly) with Lender having the right to
call special meetings at any reasonable times and upon reasonable advance notice;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the right, in accordance with the terms of this Agreement, to examine the books and
records of Borrower at any reasonable times upon reasonable notice;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;the right, in accordance with the terms of this Agreement, including, without limitation,
<U><B>Section&nbsp;5.1.11</B></U> hereof, to receive monthly, quarterly and year end financial
reports, including balance sheets, statements of income, shareholder&#146;s equity and cash flow, a
management report and schedules of outstanding indebtedness; and
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;the right, without restricting any other rights of Lender under this Agreement (including
any similar right), to approve any acquisition by Borrower of any other significant property (other
than personal property required for the day to day operation of the Property and/or construction of
the Project Improvements).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rights described above in this <U><B>Section&nbsp;10.24</B></U> may be exercised by any entity which
owns and controls, directly or indirectly, substantially all of the interests in Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.25 <U><B>MERS.</B></U> Mortgage Electronic Registration Systems, Inc., a Delaware corporation (&#147;<B>MERS</B>&#148;),
serves as mortgagee of record and secured party solely as nominee, in an administrative capacity,
for Lender and only holds legal title to the interests granted, assigned, and transferred in the
Mortgage and the Assignments of Leases. MERS shall at all times comply with the instructions of
Lender. If necessary to comply with law or custom, MERS (for the benefit of Lender) may be
directed by Lender to exercise any or all of those interests, including without limitation, the
right to foreclose and sell the Property, and take any action required of Lender, including without
limitation, a release, discharge or reconveyance of the Mortgage. Subject to the foregoing, all
references in the Loan Documents to &#147;Mortgagee&#148; shall include Lender and its successors and
assigns. The relationship of Mortgagor and Lender under the Mortgage and the other Loan Documents
is, and shall at all times remain, solely that of borrower and lender (the role of MERS thereunder
being solely that of nominee as set forth above and not that of a lender); and Mortgagee neither
undertakes nor assumes any responsibility or duty to Borrower or to any other Person with respect
to the Property.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;SIGNATURE PAGE TO PROJECT LOAN AGREEMENT&#093;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>, the parties hereto have caused this Agreement to be duly executed by their
duly authorized representatives, all as of the day and year first above written.
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<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>BORROWER<BR>
<BR>
<BR>
ACADIA ATLANTIC AVENUE LLC,</B><BR>
a Delaware limited liability company<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Robert Masters&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Senior Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
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<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>LENDER<BR>
<BR>
<BR>
BEAR STEARNS COMMERCIAL MORTGAGE, INC.</B>, a New York
corporation<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Signatory&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
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