<PAGE>   1



                               GUARANTY AGREEMENT

     This GUARANTY AGREEMENT (this "GUARANTY"), dated as of March 1, 2000, by
and between GETTY REALTY CORP., a Maryland corporation having its principal
place of business at 125 Jericho Turnpike, Jericho, New York 11753 (the
"GUARANTOR") and FLEET NATIONAL BANK (the "BANK").

     In order to induce the Bank to amend its loan arrangement with Power Test
Realty Company Limited Partnership, a New York limited partnership (the
"BORROWER"), which loan arrangement is set forth in an Amended and Restated Loan
Agreement dated as of October 31, 1995 by and between the Borrower and Fleet
Bank of Massachusetts, N.A., predecessor in interest to the Bank, as amended by
that certain First Amendment to the Amended and Restated Loan Agreement dated as
of April 18, 1997, as further amended by that certain Second Amendment to the
Amended and Restated Loan Agreement dated as of January 30, 1998, as further
amended by that certain Third Amendment to the Amended and Restated Loan
Agreement of even date herewith (as amended, the "LOAN AGREEMENT"), the
Guarantor is entering into this Guaranty with the Bank pursuant to which the
Guarantor guarantees the payment and performance in full of all of the
Obligations (as that term is hereinafter defined).

     Accordingly, in consideration of the Bank's consent as aforesaid and its
amendment of its loan arrangement with the Borrower and in consideration of the
premises and of the covenants herein contained and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto hereby agree as follows:

     Section 1. Definitions. The following terms shall have the meanings set
forth in this Section 1 hereof or elsewhere in the provisions of this Guaranty
referred to below:

           "BANK" means Fleet National Bank.

           "BORROWER" means Power Test Realty Company Limited Partnership, a New
      York limited partnership.

           "CONTINGENT LIABILITIES" means any guaranties, endorsements,
     agreements to purchase or provide funds for the


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     payment of obligations of others, or other liabilities which would be
     classified as contingent in accordance with generally accepted accounting
     principles consistently applied, excluding, however, endorsements of checks
     or other negotiable instruments for deposit or collection in the ordinary
     course of business.

           "GUARANTOR" means Getty Realty Corp., a Maryland corporation.

           "GUARANTY" means this Guaranty Agreement as originally executed, or,
     if this Guaranty Agreement is amended, modified or supplemented, as so
     amended, modified or supplemented.

           "LOAN" means the loan from the Bank to the Borrower pursuant to the
     terms of the Loan Agreement.

           "LOAN AGREEMENT" means the Amended and Restated Loan Agreement dated
     as of October 31, 1995 between the Borrower and Fleet Bank of
     Massachusetts, N.A., predecessor in interest to the Bank, as amended by
     that certain First Amendment to the Amended and Restated Loan Agreement
     dated as of April 18, 1997, as further amended by that certain Second
     Amendment to the Amended and Restated Loan Agreement dated as of January
     30, 1998, as further modified by that certain Third Amendment to the
     Amended and Restated Loan Agreement of even date herewith, or if further
     amended, modified or supplemented, as so further amended, modified or
     supplemented.

           "NOTES" means, collectively, the Master Note and the Collateral
     Note(s), or if amended, modified or supplemented, as so amended, modified
     or supplemented, and any note issued in exchange for or replacement of any
     such note pursuant to the terms of the Loan Agreement.

           "OBLIGATIONS" means all indebtedness, obligations and liabilities,
     direct or indirect, matured or unmatured, primary or secondary, certain or
     contingent, of the Borrower to the Bank for the payment of money now or
     hereafter owing or incurred (including, without limitation, reasonable
     costs and expenses incurred by the Bank in attempting to collect or enforce
     any of the foregoing) which are chargeable to the Borrower and which arise
     under or pursuant to the Loan Agreement or the Notes, accrued in each case
     to the date of payment hereunder, and "OBLIGATION" means any one of the
     Obligations.

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           "OTHER BUSINESS(ES)" has the meaning set forth in Section 16.2
hereof.

           "PERSON" means any individual, corporation, partnership, trust,
     unincorporated association, joint stock company or other legal entity or
     organization and any government or agency or political subdivision thereof.

           "SUBSIDIARY" means, with respect to any Person that is not an
     individual, any other present or future corporation or other legal entity a
     majority of whose outstanding capital stock or other ownership interests
     having ordinary voting power to elect a majority of the board of directors
     or other persons performing similar functions is at the time owned directly
     or indirectly by such Person.

     All other capitalized terms used herein which are defined in the Loan
Agreement have the meanings ascribed to them therein, unless they are expressly
otherwise defined herein.

     Section 2. Guaranty of Payment.

     Section 2.1. Guaranty of Payment of Obligations. The Guarantor hereby
unconditionally guarantees to the Bank the payment in full of each Obligation,
when and as such Obligation becomes due and payable in accordance with the terms
of the Loan Agreement and the Notes, whether such Obligation is outstanding on
the date hereof or arises or is incurred hereafter. The guaranty hereby made by
the Guarantor is an absolute, unconditional and continuing guaranty of the full
and punctual payment by the Borrower of all of the Obligations in accordance
with the terms of the Loan Agreement and not of their collectibility only and is
in no way conditioned upon any requirement that the Bank first attempt to
collect any of the Obligations from the Borrower or resort to any other
security, collateral or other means of obtaining payment of any of the
Obligations which the Bank now has or may acquire after the date hereof, or upon
any other contingency whatsoever.

     Section 2.2. Payments. If the Borrower shall fail to make any payment of
any Obligation punctually when and as such obligation shall become due and
payable and such failure shall continue beyond the period of grace, if any,
applicable thereto, then the Guarantor hereby agrees to make such payment of
such Obligation, in funds immediately available to the Bank, upon written demand
by the Bank.



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     Section 2.3. Continuing Security of this Guaranty. This Guaranty and the
rights, remedies, powers and privileges of the Bank hereunder shall not in any
way be prejudiced or affected by an intermediate payment by the Borrower of any
part of the Obligations. This Guaranty and the obligations of the Guarantor
hereunder shall be in addition to and shall not in any way be prejudiced or
affected by any other collateral or other security or guarantees now or
hereafter held by the Bank for all or any part of the Obligations, and every
right, remedy, power or privilege given to the Bank hereunder shall be in
addition to and not a limitation of any and every other right, remedy, power or
privilege vested in the Bank under any other collateral. No assurances, security
or payment of any of the Obligations which is avoided under any enactment
relating to bankruptcy, liquidation or insolvency, and no release, settlement or
discharge given or made by the Bank on the faith of any such assurance, security
or payment shall prejudice or affect the right of the Bank to recover from the
Guarantor to the full extent of the guaranty hereby made by the Guarantor as if
such assurance, security, payment, release, settlement or discharge (as the case
may be) had never been given or made.

     Section 3. Demands for Payment. Each demand for payment pursuant to Section
2.2 hereof shall be made in accordance with the terms of Section 18 hereof.
Demands for payment hereunder may be made on any number of occasions. A dated
statement signed by an officer of the Bank and setting forth the amount of the
Obligations at the time owing to the Bank, or (as the case may be) setting forth
the amount of the obligations at the time owing by the Guarantor to the Bank
pursuant to Section 9 hereof, shall, save for manifest error, be prima facie
evidence thereof as between the Guarantor and the Bank in any legal proceedings
against the Guarantor in connection with this Guaranty.

     Section 4. Waivers of Notice, Assent, Etc. The Guarantor hereby waives
notice of acceptance of this Guaranty, notice of any and all loans or advances
made or other financial accommodations extended to the Borrower by the Bank
under the Loan Agreement, notice of the occurrence of any default or of any
demand upon the Borrower for any payment under the Loan Agreement, notice of any
action at any time taken or omitted by the Bank under or in respect of the Loan
Agreement or any of the Obligations, any requirement of diligence or to mitigate
damages and, generally, all demands, notices and other formalities of every kind
in connection with this Guaranty (except as otherwise expressly provided
hereby), the Loan Agreement or any of the Obligations. The Guarantor hereby
assents to, and waives notice of, any extension or postponement of


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                                      -5-

the time for the payment of any of the Obligations, the acceptance of any
partial payment thereon, any waiver, consent or other action or acquiescence by
the Bank at any time or times in respect of any default by the Borrower in the
performance or satisfaction of any term, covenant, condition or provision of the
Loan Agreement, any amendment, modification or waiver to the Loan Agreement, the
Notes or any other Loan Document, any and all other indulgences whatsoever by
the Bank in respect of any of the Obligations or otherwise, the taking,
addition, substitution or release, in whole or in part, at any time or times, of
any security for any of the Obligations, the addition, substitution or release,
in whole or in part, of any person or persons (other than the Borrower)
primarily or secondarily liable in respect of any of the Obligations or any
other events or circumstances which might constitute a legal or equitable
discharge of a surety or guaranty. Without limitation of the generality of the
foregoing, the Guarantor assents to any other action or delay in acting or
failure to act on the part of the Bank, including, without limitation, any
failure strictly or diligently to assert any right or pursue any remedy or to
mitigate damages or to comply fully with applicable laws or regulations
thereunder, which might, but for the provisions of this Section 4 hereof, afford
grounds for terminating, discharging or relieving the Guarantor, in whole or in
part, from any of its absolute and unconditional obligations hereunder, it being
the intention of the Guarantor that, so long as any of the Obligations remains
unsatisfied, the obligations of the Guarantor hereunder shall not be discharged
except by payment and then only to the extent of such payment. The obligations
of the Guarantor hereunder shall not be diminished or rendered unenforceable by
any bankruptcy, winding up, reorganization, arrangement, liquidation or similar
proceeding with respect to the Borrower, the Guarantor or the Bank. The guaranty
hereby made by the Guarantor shall continue in full force and effect
notwithstanding any absorption, merger, amalgamation or any other change
whatsoever in the name, membership, constitution or place of formation of the
Borrower, the Guarantor or the Bank.

     Section 5. Place and Mode of Payments. Each payment by the Guarantor under
or in respect of this Guaranty shall be made to the Bank in immediately
available and freely transferable funds at the Bank's office at One Federal
Street, Boston, Massachusetts 02110, Attention: Michael A. Palmer, Vice
President.

     Section 6. Set-off. Regardless of the adequacy of any collateral or other
means of obtaining prepayment of the Obligations, the Bank may at any time and
without prior notice to the Guarantor set-off the whole or any portion or
portions of any or all deposits and other sums credited by or due from the Bank
to the Guarantor against amounts payable under this


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                                      -6-

Guaranty, whether or not any other person or persons could also withdraw money
therefrom. The Bank will promptly thereafter notify the Guarantor of any such
set-off.

     Section 7. Freedom to Deal with Borrower and Other Banks. The Bank shall be
at liberty, without giving notice to or obtaining the assent of the Guarantor
and without relieving the Guarantor of any liability hereunder, to deal with the
Borrower and with each other party who now is or after the date hereof becomes
liable in any manner for any of the Obligations, in such manner as the Bank in
its sole discretion deems fit, and to this end the Guarantor agrees that the
Bank may in its sole discretion do any or all of the following things: (a)
extend credit, make loans and afford other financial accommodations to the
Borrower at such times, in such amounts and on such terms as the Bank may
approve, (b) vary the terms and grant extensions or renewals of any present or
future indebtedness or obligation to the Bank of the Borrower or of any such
other party, (c) grant time, waivers and other indulgences in respect thereto,
(d) vary, exchange, release or discharge, wholly or partially, or delay in or
abstain from perfecting and enforcing any security or guaranty or other means of
obtaining payment of any of the Obligations which the Bank now have or acquire
after the date hereof, (e) accept partial payments from the Borrower or any such
other party, (f) release or discharge, wholly or partially, any endorser or
guarantor, and (g) compromise or make any settlement or other arrangement with
the Borrower or any such other party.

     Section 8. Election of Remedies. This Guaranty may be enforced by the Bank
from time to time as often as occasion therefor may arise and without any
requirement on the part of the Bank first to exercise any rights against the
Borrower or any other person or to exhaust any remedies available to the Bank
against the Borrower or any other person or to resort to any collateral or
security for any of the Obligations which is in the possession or under the
control of the Bank or to resort to any other source or means of obtaining
payment or enforcing payment of the Obligations or any of them.

     Section 9. Expenses. The Guarantor hereby agrees to pay upon demand by the
Bank all reasonable out-of-pocket costs and expenses, including, but not limited
to, court costs and expenses and the fees and disbursements of lawyers, incurred
or expended by the Bank in connection with the enforcement of this Guaranty,
together with interest on amounts recoverable under this Section 9 hereof from
the time such amounts become due until payment at the rate applicable to amounts
overdue under the Loan

<PAGE>   7

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Agreement. The covenant contained in this Section 9 hereof shall survive the
payment in full of all of the Obligations.

     Section 10. Further Assurances. The Guarantor will, at any time and from
time to time, upon request by the Bank, take or cause to be taken any action and
execute and deliver such, if any, further documents as, in the reasonable
opinion of the Bank, are necessary in order to give full effect to this Guaranty
and to preserve the rights, powers, privileges and remedies of the Bank
hereunder.

     Section 11. Waiver of Certain Defenses. The Guarantor hereby absolutely and
irrevocably waives, to the fullest extent permitted by law, any and all defenses
which may now or hereafter exist in respect of its obligations hereunder by
virtue of any statute of limitations, stay or moratorium law or other similar
law now or hereafter in effect.

     Section 12. Unenforceability of Obligations Against Borrower, Etc. It is
hereby agreed as a separate and independent stipulation that, if for any reason
the Borrower ceases to have any legal obligation to discharge the Obligations or
any of them, or if any of the moneys included in the Obligations have become
irrecoverable from the Borrower by operation of law or for any other reason, or
if any of the Obligations become unenforceable against the Borrower by operation
of law or for any other reason, this Guaranty and the obligations of the
Guarantor hereunder shall nevertheless be binding on the Guarantor to the same
extent as if the Guarantor at all times prior to demand by the Bank for payment
hereunder had been, and at the time of, such demand was, the principal debtor on
all of such Obligations.

     Section 13. Amendments and Waivers. Neither this Guaranty nor any term
hereof may be changed, waived, discharged or terminated except by an instrument
in writing signed by the Bank and the Guarantor expressly referring to this
Guaranty and to the provisions so changed, waived, discharged or terminated. No
such waiver shall extend to or affect any obligation not expressly waived or
impair any right consequent thereon. No course of dealing by the Bank and no
delay or omission on the part of the Bank in exercising any right or remedy
hereunder shall operate as a waiver of that or any other right or remedy
hereunder or otherwise be prejudicial thereto.

     Section 14. Representations and Warranties of the Guarantor. The Guarantor
represents and warrants to the Bank that on and as of the date hereof:


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           (a) Organization; Good Standing. The Guarantor (i) is a corporation
     duly organized, validly existing and in good standing under the laws of
     Maryland, (ii) has all requisite corporate power to own its property and
     conduct its business as now conducted and as presently contemplated, and
     (iii) is in good standing and is duly authorized to do business in each
     jurisdiction where the nature of its properties or its business requires
     such qualification and in which failure so to qualify would materially
     adversely affect its business or financial condition.

           (b) Authorization. The execution, delivery and performance of this
     Guaranty and the transactions contemplated hereby (i) are within the
     corporate authority of the Guarantor, (ii) have been duly authorized by all
     proper corporate proceedings required to make this Guaranty the valid and
     enforceable obligation it purports to be, (iii) will not contravene any
     provision of law, the charter documents or by-laws of the Guarantor or any
     other material agreement, instrument or undertaking binding upon the
     Guarantor, and (iv) do not require any approval or consent of, or filing
     with, any governmental agency or authority.

           (c) Enforceability. Upon execution by the parties hereto, this
     Guaranty will be the valid and legally binding obligation of the Guarantor,
     enforceable against it in accordance with the terms hereof, except to the
     extent that the enforcement of the rights and remedies of the Bank may be
     subject to bankruptcy, insolvency, reorganization, moratorium or similar
     laws affecting generally the enforcement of creditors' rights and remedies,
     and the availability of equitable remedies may be subject to the discretion
     of the court before which any proceeding thereof is brought.

     Section 14.2. Governmental Approvals. No approval or consent or filing with
any governmental agency or authority is required to make valid and legally
binding the execution, delivery or performance by the Guarantor of this
Guaranty.

     Section 14.3. Intentionally Deleted.

     Section 14.4. Intentionally Deleted.

     Section 14.5. Compliance With Other Instruments, Laws, Etc. The Guarantor
is not in violation of any provision of its charter documents or by-laws or any
agreement or instrument to which it may be subject or by which it or any of its
properties may be bound or any decree, order,


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                                      -9-

judgment, or any statute, license, rule or regulation, in any of the foregoing
cases in a manner which could result in the imposition of substantial penalties
or materially and adversely affect the financial condition, properties or
business of the Guarantor.

     Section 14.6. Governmental Approvals. The execution, delivery and
performance by the Guarantor of this Guaranty and the transactions contemplated
hereby do not require the approval or consent of, or filing with, any
governmental agency or authority other than those already obtained.

     Section 14.7. Litigation. There is no action, suit or proceeding at law or
in equity or by or before any governmental instrumentality or other agency now
pending or, to the knowledge of the Guarantor, threatened against or affecting
the Guarantor, or any properties or rights of the Guarantor, which, if adversely
determined, would materially impair the ability of the Guarantor to carry on its
business substantially as now conducted or would materially adversely affect the
financial condition of the Guarantor.

     Section 14.8. Chief Executive Offices. Until the Bank receives notice of a
change, the chief executive offices of the Guarantor and the offices where all
the records and books of account of the Guarantor are kept shall be located at
125 Jericho Turnpike, Jericho, New York 11753.

     Section 14.9. Indebtedness. No instrument evidencing or relating to any
indebtedness of the Guarantor contains any restriction prohibiting the Guarantor
from incurring any other indebtedness or Contingent Liabilities or any provision
requiring the Guarantor to maintain any minimum level of net worth or comply
with any other financial covenants.

     Section 14.10. True Copies of Charter Documents. The Guarantor has
furnished or caused to be furnished to the Bank true and complete copies of the
charter documents and by-laws of the Guarantor, together with any amendments
thereto.

     Section 14.11. Guaranteed Pension Plans. The Guarantor does not contribute
to any Guaranteed Pension Plans. The Guarantor does not contribute to any
multiemployer pension plans.

     Section 14.12. Disclosure. No material representation or warranty made by
the Guarantor in any Loan Document or in any agreement, instrument, document,
certificate, statement or letter furnished to the Bank by or on behalf of the
Guarantor in connection with any of the transactions contemplated by any of the
Loan Documents contains any untrue


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                                      -10-

statement of a material fact or omits to state a material fact necessary in
order to make the statements contained therein not misleading in light of the
circumstances in which they are made. There is no fact known to any officer of
the Guarantor which materially adversely affects, or which, in the best judgment
of any officer of the Guarantor, would in the future materially adversely
affect, the financial position, business, operations or affairs of the
Guarantor.

     Section 15. Affirmative Covenants. The Guarantor covenants and agrees that,
so long as any of the Loan, the Master Note, any Collateral Note or the Chase
Note is outstanding, or any Obligations are outstanding:

     Section 15.1. Conduct of Business. The Guarantor will:

           (a) do or cause to be done all things necessary to preserve and keep
     in full force and effect its corporate existence, rights (charter and
     statutory), and franchises, licenses, material trademarks and service
     marks, and copyrights; and

           (b) keep true and accurate records and books of account, prepared in
     accordance with generally accepted accounting principles, consistently
     applied;

           (c) cause all of its properties used or useful in the conduct of its
     business to be maintained and kept in good condition, repair and working
     order and supplied with all necessary equipment and cause to be made all
     necessary repairs, renewals, replacements, betterments and improvements
     thereof, all as in the judgment of the Guarantor may be necessary so that
     the business carried on in connection therewith may be properly and
     advantageously conducted at all times, and continue to engage primarily in
     the business now conducted by it and in related businesses, except as may
     be otherwise permitted under Section 16.2 hereof.

     Section 15.2. Compliance with Agreements and Contracts. The Guarantor will
observe, conform to and comply with the provisions of its charter documents and
by-laws, all leases, and all agreements and instruments by which it or any of
its properties may be bound.

     Section 15.3. Compliance with Law. The Guarantor will (a) comply with all
laws, rules, regulations, orders, writs, judgments, injunctions, decrees or
awards to which it may be subject, noncompliance with which would have a
materially adverse effect on the business, operations or financial condition of
the Guarantor or the ability of the Guarantor to fulfill its


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                                      -11-

obligations under this Guaranty and (b) promptly obtain, maintain, apply for
renewal, and not allow to lapse, any authorization, consent, approval, license
or order, and accomplish any filing or registration with, any court or judicial,
administrative or governmental authority, which may be or may become necessary
in order that it perform all of its obligations under this Guaranty and in order
that the same may be valid and binding and effective in accordance with its
terms and in order that the Bank may be able freely to exercise and enforce any
and all of its rights under this Guaranty.

     Section 15.4. Notification of Material Litigation, Default, Etc. The
Guarantor will promptly notify the Bank of (a) the commencement of any
litigation or administrative proceeding initiated against it (if it has
knowledge of the same) which is likely to involve any material risk of any
material judgment or liability not substantially covered by insurance or which
may otherwise result in a materially adverse change in the assets, financial
condition or business of the Guarantor, and (b) the occurrence of any default.
The Guarantor will promptly give notice to the Bank of the occurrence of any
material default under any material instrument or agreement to which the
Guarantor (if it has knowledge of the same) is a party, and if any person shall
give any written notice or take any other action in respect of a claimed default
under any other material evidence of indebtedness, indenture, note or other
obligation as to which the Guarantor is a party or obligor, whether as principal
or surety, the Guarantor shall promptly give written notice thereof to the Bank,
describing the notice or action and the nature of the claimed default.

     Section 15.5. Financial Statements, Certificates and Other Information. The
Guarantor will furnish to the Bank:

           (a) as soon as available but in any event within forty-five (45) days
     after the end of each of the first three fiscal quarters in any fiscal year
     of the Guarantor, an unaudited consolidated balance sheet for the Guarantor
     and its Subsidiaries as at the end of such quarter, and an unaudited
     consolidated statement of income and statement of changes in financial
     position for the Guarantor and its Subsidiaries for the period commencing
     with the end of the preceding fiscal year and ending with the end of such
     quarter, together with a certificate of the chief financial officer of the
     Guarantor stating that such financial statements fairly present the
     financial condition of the Guarantor and its Subsidiaries as of the date
     thereof and have been prepared in accordance with generally accepted
     accounting principles consistently applied, subject, however, to audit and
     year-end adjustments;


<PAGE>   12

                                      -12-

           (b) as soon as available but in any event within ninety (90) days
     after the end of each fiscal year, an audited consolidated balance sheet
     for the Guarantor and its Subsidiaries as at the end of such fiscal year,
     and an audited consolidated statement of income and statement of changes in
     financial position for the Guarantor and its Subsidiaries for such fiscal
     year, prepared in accordance with generally accepted accounting principles
     consistently applied, in each case accompanied by the opinion of and report
     by PricewaterhouseCoopers LLP or other independent certified public
     accountants of nationally recognized standing selected by the Guarantor and
     acceptable to the Bank, such opinion to be unqualified as to scope
     limitations imposed by the Guarantor, and otherwise, without qualification
     except as therein noted;

           (c) accompanying each set of financial statements of the Guarantor
     furnished pursuant to paragraph (a) or (b) above, an Officer's Certificate
     stating that a review of the activities of the Guarantor and the Borrower
     during the period covered by such financial statements has been made under
     the supervision of the signer with a view to determining whether, during
     such period, each of the Guarantor and the Borrower has kept, observed,
     performed and fulfilled each and every covenant and condition of each of
     the Loan Documents to which it is a party and either (i) stating that, to
     the best of his knowledge and belief, there neither exists on the date of
     such certificate, nor existed during such period, any default under any
     existing loan or credit agreement to which the Guarantor or the Borrower is
     a party, or (ii) if any such default under any existing loan or credit
     agreement to which the Guarantor or the Borrower is a party existed or
     exists, specifying the nature thereof, the period of existence thereof and
     what action the Guarantor or the Borrower, as appropriate, has taken, is
     taking or proposes to take with respect thereto;

           (d) accompanying each set of financial statements of the Guarantor
     set forth in paragraph (b) above, a certificate of the accounting firm
     stating that they have read a copy of this Guaranty and that, in the course
     of their regular audit of the business of the Guarantor, which was
     conducted in accordance with generally accepted auditing standards, nothing
     has come to their attention that caused them to believe that any default
     under any existing loan or credit agreement to which the Guarantor or the
     Borrower is a party has occurred during the fiscal year in question or
     exists at the date of such certificate or, if in the opinion of such firm a
     default


<PAGE>   13

                                      -13-

     under any existing loan or credit agreement to which the Guarantor or
     the Borrower is a party has so existed or exists, a statement as to the
     nature thereof;

           (e) contemporaneously with the filing or mailing thereof, copies of
     such other financial statements or reports as the Guarantor shall send to
     its stockholders, and copies of all regular, and periodic and other reports
     which the Guarantor may be required to file with the Securities and
     Exchange Commission or any other governmental commission, department,
     board, bureau or agency, federal or state (including without limitation all
     reports on Forms 10-K, 10-Q and 8-K); and

           (f) with reasonable promptness, such other information relating to
     the business or financial affairs of the Guarantor as the Bank may
     reasonably request.

     Section 15.6. Notice of Material Change. The Guarantor will promptly notify
the Bank of any materially adverse change in its financial condition, business
or operations.

     Section 15.7. Inspection of Properties and Books. The Bank or any of its
designated representatives shall have the right to visit and inspect any of the
properties of the Guarantor, to examine the books of account of the Guarantor,
and to discuss the affairs, finances and accounts of the Guarantor with, and to
be advised as to the same by, its officers, all at such reasonable times and
intervals as the Bank may desire.

     Section 15.8. ERISA. The Guarantor will promptly notify the Bank of any
Reportable Event (other than a Reportable Event as to which the Pension Benefit
Guaranty Corporation has waived the applicable 30-day notice requirement
pursuant to the provisions of ERISA) or any notice of termination of any Plan
under Sections 4041 or 4042 of ERISA. The Guarantor shall not permit any
employee pension benefit plan (as that term is defined in Section 3 of ERISA)
maintained by the Guarantor to (a) engage in any "prohibited transaction" as
such term is defined in Section 4975 of the Code which might result in a
material liability for the Guarantor, or (b) incur any "accumulated funding
deficiency", as such term is defined in Section 302 of ERISA, whether or not
waived, or (c) terminate any such benefit plan in a manner which could result in
the imposition of any material lien or encumbrance on the assets of the
Guarantor under Section 4068 of ERISA.



<PAGE>   14

                                      -14-

     Section 15.9. Maintenance of Office. The Guarantor will maintain its chief
executive office in Jericho, New York, or at such other place in the United
States of America as the Guarantor shall designate upon written notice to the
Bank, where notices, presentations and demands to or upon the Guarantor in
respect of this Guaranty may be made.

     Section 15.10. Further Assurances. The Guarantor shall at any time or from
time to time execute and deliver such further instruments and take such further
action as may reasonably be requested by the Bank, in each case further and more
perfectly to effect the purposes of this Guaranty.

     Section 16. Negative Covenants. The Guarantor covenants and agrees that, so
long as any of the Loans, the Master Note or any Collateral Note is outstanding,
or any Obligations are outstanding:

     Section 16.1. Merger or Sale of Assets. The Guarantor will not:

           (a) consolidate or merge with or into any other Person unless (i)
     after giving effect to such consolidation or merger, no default exists and
     (ii) the Guarantor is the surviving corporation of such consolidation or
     merger; or

           (b) sell, lease, transfer or otherwise dispose of all or any
     substantial portion of its assets; or

           (c) at any time transfer, assign or hypothecate any of its
     partnership interests or rights in respect of the Borrower;

           provided, however, the Guarantor shall have the right at any time to
     consolidate or merge with or into Getty Properties Corp., a Delaware
     corporation, without having to obtain the consent of the Bank.

     Section 16.2. Lines of Business. The Guarantor will not directly or
indirectly through a Subsidiary engage in any business other than the
acquisition, management, leasing, financing and disposition of petroleum and
convenience store related real estate, the retail and wholesale distribution of
petroleum products, the operation of convenience stores or other retail
businesses related to the operation of gasoline service stations and convenience
stores or other businesses which can reasonably be conducted at gasoline service
stations or convenience stores, except that the Guarantor may engage in any
other business (each an "OTHER BUSINESS" and collectively "OTHER BUSINESSES")
acquired by the Guarantor if the aggregate purchase price (including any direct
or

<PAGE>   15

                                      -15-

contingent liabilities assumed by the Guarantor in connection with such
acquisition) for such Other Business, plus the aggregate purchase prices
(including assumed liabilities) for all Other Businesses previously acquired by
the Guarantor, does not exceed $25,000,000. The Bank shall have the right to
approve all purchase price allocations made in connection with any such
acquisition of an Other Business or Other Businesses as the same relate to
compliance with this Section 16.2.

     Section 16.3. Acquisitions. The Guarantor will provide the Bank with
reasonable advance notice of any proposed acquisitions of assets or stock of
Other Businesses (whether directly by the Guarantor or indirectly through a
Subsidiary of the Guarantor) with respect to which the aggregate purchase price
(including any assumption of liabilities) is $25,000,000 or more as set forth in
Section 16.2 hereof and will provide to the Bank all information relating to
such transactions as may be reasonably requested by the Bank.

     Section 16.4. Interest Rate Protection Arrangements. The Guarantor will
not, and will not permit the Borrower to, enter into any interest rate
protection arrangements with respect to the Loans with any Person other than the
Bank, unless the Guarantor shall have first requested the Bank to enter into an
interest rate protection arrangement on terms and conditions proposed in good
faith by the Borrower and the Bank shall have declined such request.

     Section 17. Survival of Covenants. All covenants, agreements,
representations and warranties made herein shall be deemed to have been relied
on by the Bank notwithstanding any investigation made by the Bank or on its
behalf, and shall survive the execution and delivery of this Guaranty.

     Section 18. Notices, Etc. (a) The Bank shall provide the Guarantor with a
copy of each notice sent to the Borrower pursuant to Section 7 of the Loan
Agreement. No failure of the Bank to provide any such notice shall operate to
relieve the Guarantor of any of its obligations hereunder.

           (b) Except as otherwise expressly provided herein, all notices and
other communications made or required to be given pursuant to this Guaranty
shall be deemed delivered if in writing (or in the form of a telecopy confirmed
by letter) addressed as provided below and if either (i) actually delivered at
said address, or (ii) in the case of a letter, five Business Days shall have
elapsed after the same shall have been deposited in the United States mails,
postage prepaid and registered or certified:



<PAGE>   16

                                      -16-

           (x) if to the Guarantor, at 125 Jericho Turnpike, Jericho, New York
11753, Attention: John J. Fitteron, Senior Vice President, Treasurer and Chief
Financial Officer, or at such other address for notice as the Guarantor shall
last have furnished in writing to the Person giving the notice; or

           (y) if to the Bank, at 100 Federal Street, Boston, Massachusetts
02110, Attention: Michael A. Palmer, Vice President, or at such other address
for notice as the Bank shall last have furnished in writing to the Person giving
the notice.

     Section 19. Governing Law; Miscellaneous. This Guaranty is intended to take
effect as a sealed instrument to be governed by and construed in accordance with
the laws of the Commonwealth of Massachusetts and shall inure to the benefit of
the Bank and its successors and assigns, and shall be binding on the Guarantor
and the Guarantor's successors, assigns and legal representatives. The
descriptive headings of the sections hereof have been inserted herein for
convenience of reference only and shall not define or limit the provisions
hereof.

     Section 20. Counterparts. This Guaranty may be executed in any number of
counterparts, but all of such counterparts together shall constitute one and the
same agreement. In making proof of this Guaranty, it shall not be necessary to
produce or account for more than one counterpart hereof executed by each of the
parties hereto.



                  [Remainder of Page Intentionally Left Blank]




<PAGE>   17

     IN WITNESS WHEREOF, this Guaranty has been executed by or on behalf of the
parties hereto as an instrument under seal as of the day first above written.

                                    GETTY REALTY CORP.



                                    By: /s/ John J. Fitteron
                                       ---------------------------------
                                       Name:  John J. Fitteron
                                       Title: Senior Vice President,
                                              Treasurer and Chief
                                              Financial Officer


                                    FLEET NATIONAL BANK



                                    By: /s/ Michael A. Palmer
                                       ---------------------------------
                                       Name:  Michael A. Palmer
                                       Title: Vice President