Document:

exv10w3

 

EXHIBIT 10.3

PROMISSORY NOTE

			
	 	 	 
	Up to $25,000,000.00
	 	April 10, 2007

     FOR VALUE RECEIVED, FELDMAN EQUITIES OPERATING PARTNERSHIP, LP, a Delaware limited partnership
(“Borrower”), promises to pay to the order of KIMCO CAPITAL CORP., a Delaware corporation
(“Lender”), at its office at 3333 New Hyde Park Road, Suite 100, New Hyde Park, New York 11042, or
such other place as the holder hereof may from time to time appoint in writing, in lawful money of
the United States of America, the principal sum of TWENTY-FIVE MILLION DOLLARS ($25,000,000.00)
(the “Principal Amount”), or such lesser principal amount as may be outstanding hereunder (the
“Loan”), together with interest on the principal balance from time to time unpaid at the rate of
seven percent (7%) per annum (the “Interest Rate”) for the period commencing on the date hereof and
continuing through and including the Maturity Date (as defined below). Interest will be computed
on the daily principal balance outstanding during the period from the last payment date to the
current payment date. Interest shall be the product resulting when multiplying the rate of
interest by the principal balance outstanding, dividing by 365, and then multiplying by the actual
number of days interest has accrued.

     From and after the occurrence of an Event of Default (as hereinafter defined), the outstanding
principal amount hereof shall bear interest at the Interest Rate, plus five percent (5%) per annum.

     Accrued interest on this Note shall be payable in arrears on the first (1st) day of
each month for the immediately preceding month, with the first such payment due on May 1, 2007
(such initial interest payment, if any, to be for the period from the date hereof until through and
including April 30, 2007). The principal indebtedness evidenced by this Note shall be payable in
full, together with all accrued interest thereon on the Maturity Date. For the purposes hereof,
the “Maturity Date” shall be April 10, 2008; provided, that the Maturity Date shall be April 10,
2009 if Borrower shall have delivered to Lender on or before March 17, 2008 a notice to Lender of
extension certifying that that the Fixed Charge Coverage ratio of Borrower exceeds 1.15 to 1.00.

     In addition to such interest, a fee payable in immediately available funds (the “Fee”) is
payable by Borrower to the Lender in accordance with the provisions below. Subject to the
provisions below, the Fee shall be equal to (i) $500,000, multiplied by (ii) (a) the Weighted
Average Stock Price (as defined below) minus (b) $13.00. At any time beginning on the date hereof
and ending on the later of April 9, 2009 or the business day immediately preceding the Termination
Date (defined below), Lender may select a date (the “Selected Date”) upon which the Weighted
Average Stock Price (as defined below) will be determined, by notice to Borrower before 5:00 p.m.
Eastern time on the Selected Date. The Fee as calculated above shall be due and payable by
Borrower within five (5) business days of the Selected Date. For purposes of this paragraph,
“Weighted Average Stock Price” shall be the volume weighted average price of the common stock, par
value $.01 per share of the Guarantor (the “Common Stock”) on the New

 

 

York Stock Exchange or such other national securities exchange on which such Common Stock is
then traded, calculated over the five trading day period ending on and including the Selected Date.
If the Lender fails to select a Selected Date as provided above, then a lump sum additional
interest payment of $250,000 in lieu of the Fee shall be due and payable by Borrower in immediately
available funds on the Termination Date. Borrower acknowledges and agrees that the obligation to
pay the Fee or such additional interest in lieu thereof shall survive payment in full of the Note
and shall survive any Event of Default or acceleration of the Note.

     Borrower acknowledges that Lender is not advancing any portion of the Principal Amount to
Borrower on the date hereof. Subject to satisfaction of the conditions precedent set forth below,
upon five (5) business days advance written request from Borrower, or such shorter notice period as
agreed by Lender, Lender shall make advances to Borrower of the balance of the Principal Amount
(each an “Advance”); provided, however, in no event shall (a) the amount of any Advance be less
than $1,000,000 and (b) the sum of all Advances exceed the Principal Amount. Notwithstanding
anything to the contrary herein, no Advance shall be required or made after the Maturity Date and
unless the following conditions precedent have been satisfied or waived in the sole discretion of
Lender:

i. Borrower shall have delivered to Lender a notice to Lender setting forth the
amount of the Advance requested and the certification of an executive officer of
Borrower that no Event of Default (as defined below) exists; and

ii. On the date of any Advance and after giving effect thereto, no Event of Default
(as defined below) shall exist and no act or omission shall have occurred which with
the passage of time, the giving of notice or both could constitute an Event of
Default.

     Further, prior to the date of the initial Advance under this Note (the “Initial Advance
Date”), in addition to the requirements set forth above, Lender shall receive the following
documents duly executed by all the parties thereto, in form and substance satisfactory to the
Lender.

(i) the Note and the Guaranty;

(ii) a certificate from the Chief Executive Officer, President or Chief Financial
Officer of the Guarantor and of the general partner of the Borrower on behalf of the
Borrower dated as of the Initial Advance Date stating that as of such date (A) all
representations and warranties of the Borrower and Guarantor set forth in this Note
and the Loan Documents are true and correct in all material respects; (B) no Event
of Default has occurred and is continuing, and (C) On the Initial Advance Date and
after giving effect thereto, no Event of Default shall exist and no act or omission
shall have occurred which with the passage of time, the giving of notice or both
could constitute an Event of Default.

(iii) a certificate of the Secretary or an Assistant Secretary of the general
partner of Borrower dated as of the date of this Note certifying as of the date of
this Note (A) the names and true signatures of officers or authorized

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representatives of the general partner of the Borrower authorized to sign the Loan
Documents to which the Borrower is a party on behalf of the Borrower, (B)
resolutions of the Board of Directors or similar governing body of the general
partner of the Borrower with respect to the transactions herein contemplated, (C) a
true and correct copy of the organizational documents of the general partner of the
Borrower and any modification or amendment since such date, (D) a true and correct
copy of the articles of limited partnership and partnership agreement for the
Borrower and any modification or amendment since such date, and (E) a true and
correct copy of all partnership authorizations necessary or desirable in connection
with the transactions herein contemplated;

(iv) a certificate of the Secretary or an Assistant Secretary of the Guarantor dated
as of the date of this Note certifying as of the date of this Note (A) the names and
true signatures of officers or authorized representatives of the Guarantor
authorized to sign the Loan Documents to which the Guarantor is a party, (B)
resolutions of the Board of Directors of the Guarantor with respect to the
transactions herein contemplated, (C) a true and correct copy of the charter and
bylaws of the Guarantor and any modification or amendment to the charter or bylaws
of the Guarantor made since such date, and (D) that the Guarantor owns, directly or
indirectly, 100% of the general partner interests and at least 70% of the limited
partnership interests in the Borrower;

(v) one or more favorable written opinions of counsel for the Borrower and the
Guarantor, in a form reasonably acceptable to the Lender, in each case dated as of
the date of the Note;

(vi) such other documents, certificates, and agreements as the Lender may reasonably
request.

     The Borrower may prepay the outstanding principal amount of this Note in whole or in part at
any time. Borrower may, upon a date no less than ten (10) business days following notice from
Borrower to Lender (the “Termination Date”), terminate this Note; provided that this Note shall not
terminate unless all then-outstanding principal and accrued and unpaid interest to the Termination
Date are paid on the Termination Date (including, if a Selected Date has not been chosen by Lender
prior to 5:00 p.m. on the business day immediately prior to the Termination Date, the $250,000
additional interest payable in lieu of the Fee).

     This Note and any and all other agreements presently existing or hereafter entered into which
evidence and/or secure any indebtedness from Borrower to Lender shall hereinafter be collectively
referred to as the “Loan Documents”. The terms, covenants, conditions, provisions, stipulations
and agreements of the Loan Documents are hereby made a part of this Note, to the same extent and
with the same effect as if they were fully set forth herein. Borrower does hereby covenant to
abide by and comply with each and every term, covenant, condition, provision, stipulation and
agreement set forth in the Loan Documents.

     Borrower shall remain liable for the payment of this Note, including interest, notwithstanding
any extensions of time of payment or any indulgence of any kind or nature that

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Lender may grant to Borrower, whether with or without notice to Borrower, and Borrower hereby
expressly waives such notice.

     Borrower hereby makes the following representations and warranties to Lender as of the date
hereof and as of the date of each Advance:

	 	a.	 	Borrower represents that it is duly formed, organized and existing in the State
of Delaware and that the execution and delivery of the Loan Documents and the
performance of the obligations thereunder do not conflict with any provision of
Borrower’s limited partnership agreement and all other certificates and agreements
governing Borrower, and have been duly authorized by all necessary action of Borrower’s
partners. Borrower covenants that it will not seek or consent to or otherwise take
action to cause or permit Borrower’s dissolution or winding up, in whole or in part,
while the Loan remains outstanding. Borrower represents that Guarantor is duly formed,
organized and existing in the State of Maryland and that the execution and delivery of
the Loan Documents to which it is a party, including the Guaranty, and the performance
of the obligations thereunder do not conflict with any provision of Guarantor’s
articles of incorporation or bylaws and all other certificates and agreements governing
Guarantor, and have been duly authorized by all necessary action of Guarantor.
Guarantor will not seek or consent to or otherwise take action to cause or permit
Guarantor’s dissolution or winding up, in whole or in part, while the Loan remains
outstanding.
	 
	 	b.	 	Borrower represents that (i) the execution and delivery of the Loan Documents,
the payment of the indebtedness and the performance of the obligations thereunder do
not violate any law or conflict with any agreement by which Borrower or Guarantor is
bound, or any court order by which Borrower or Guarantor is bound, (ii) no consent or
approval of any governmental authority or any third party is required for the execution
or delivery of the Loan Documents, the payment of indebtedness or the performance of
the obligations thereunder and (iii) the Loan Documents are valid and binding
agreements, enforceable in accordance with their terms.
	 
	 	c.	 	Borrower represents that neither Borrower nor Feldman Mall Properties, Inc., a
Maryland corporation (“Guarantor”) is or will be, held, directly or indirectly, by a
“foreign corporation,” “foreign partnership,” “foreign trust,” “foreign estate,”
“foreign person,” “affiliate” of a “foreign person” or a “United States intermediary”
of a “foreign person” within the meaning of IRC Sections 897 and 1445, the Foreign
Investments in Real Property Tax Act of 1980, the International Foreign Investment
Survey Act of 1976, the Agricultural Foreign Investment Disclosure Act of 1978, the
regulations promulgated pursuant to such acts or any amendments to such acts.
	 
	 	d.	 	Borrower represents that each of Borrower and Guarantor is solvent and there
has been no (i) assignment made for the benefit of the creditors of Borrower or
Guarantor, (ii) appointment of a receiver for Borrower or Guarantor or for the

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	 	 	 	properties of Borrower or Guarantor, or (iii) bankruptcy, reorganization, or
liquidation proceeding instituted by or against Borrower or Guarantor.
	 
	 	e.	 	Borrower represents that Borrower has filed all federal, state, county,
municipal, and city income and other tax returns required to have been filed by it and,
to Borrower’s knowledge, has paid all taxes and related liabilities which have become
due pursuant to such returns. Borrower confirms that its federal tax identification
number is 20-0252096.
	 
	 	f.	 	Borrower represents and warrants that the composition of its assets and
character of its gross income satisfy the applicable requirements necessary for
classification for federal income tax purposes as a Real Estate Investment Trust (a
“REIT”) within the meaning of Section 856 of the Internal Revenue Code; notwithstanding
that Borrower is not classified as (nor does it purport to be) a REIT. Borrower
represents that Guarantor meets the requirements for taxation as a REIT under the
Internal Revenue Code.
	 
	 	g.	 	Borrower represents that the consolidated balance sheet of the Guarantor and
its Subsidiaries, and the related consolidated statements of operations, shareholders’
equity and cash flows, of the Guarantor and its Subsidiaries contained in the most
recent financial statements delivered to the Lender, fairly present the financial
condition in all material respects and reflects the Indebtedness of the Guarantor and
its Subsidiaries as of the respective dates of such statements and the results of the
operations of its properties for the periods indicated, and such balance sheet and
statements were prepared in accordance with GAAP, subject to year-end adjustments.
Since the date of the statements for the third quarter ending September 30, 2006, or if
later, the most recent quarterly or annual financial statements filed by the Guarantor
with the SEC, neither a Material Adverse Change, nor any material adverse change to the
prospects or the Property of the Guarantor or the Borrower or their respective
Subsidiaries has occurred.

During the term of this Note, the Borrower agrees to comply with the following affirmative
covenants.

	 	a.	 	Borrower covenants that it and the Guarantor shall do and execute all and such
further acts, conveyances and assurances for the better and more effective carrying out
of the intents and purposes of this Note and the other Loan Documents, as Lender may
reasonably require from time to time.
	 
	 	b.	 	Borrower covenants that it shall file all federal, state, county, municipal,
and city income and other tax returns required to be filed by it and pay all taxes and
related liabilities which have become due pursuant to such returns, and will pay and
discharge, and will cause each of its subsidiaries to pay and discharge, all taxes,
assessments and governmental charges and levies imposed upon it prior to the date on
which penalties attach thereto.

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	 	c.	 	Borrower covenants that it shall promptly and in any event within five business
days after receipt thereof by the Borrower, the Guarantor or any of their Subsidiaries,
provide to Lender a copy of any form of notice, summons or citation received from any
Governmental Authority concerning (i) violations or alleged violations of environmental
laws which seeks to impose liability therefor, which, based upon information reasonably
available to the Borrower, could reasonably be expected to cause a Material Adverse
Change (ii) any action or omission on the part of the Guarantor, Borrower or any of
their present or former Subsidiaries in connection with Hazardous Waste or Hazardous
Substances which, based upon information reasonably available to the Borrower, could
reasonably be expected to cause a Material Adverse Change or an environmental claim in
excess of $1,000,000, (iii) any notice of potential responsibility under CERCLA, or
(iv) concerning the filing of a Lien upon, against or in connection with the Guarantor,
Borrower, their present or former Subsidiaries, or any of their leased or owned
Property, wherever located which, based upon information reasonably available to the
Borrower, could reasonably be expected to cause a Material Adverse Change.
	 
	 	d.	 	Borrower covenants that is shall promptly and in any event within five business
days after receipt thereof by the Borrower, the Guarantor or any of their respective
Subsidiaries, deliver to Lender (i) a copy of any notice, summons, citation, or
proceeding seeking to adversely modify in any material respect, revoke, or suspend any
license, permit, or other authorization from any Governmental Authority, which action
could reasonably be expected to cause a Material Adverse Change, and (ii) any
revocation or involuntary termination of any license, permit or other authorization
from any Governmental Authority, which revocation or termination could reasonably be
expected to cause a Material Adverse Change.
	 
	 	e.	 	Borrower covenants that it shall promptly and in any event within five days of
any of the Borrower, the Guarantor or any of their respective Subsidiaries having
knowledge thereof, deliver to Lender notice of any litigation, claim or any other event
which could reasonably be expected to cause a Material Adverse Change.
	 
	 	f.	 	The Guarantor’s common stock, $.01 par value per share, shall at all times be
duly listed on the New York Stock Exchange, Inc. and (ii) the Guarantor shall timely
file all reports required to be filed by it with the New York Stock Exchange, Inc. and
the Securities and Exchange Commission; provided, that it is hereby understood and
agreed that any report filed within the time period provided by lawfully available
extensions of time to file shall be deemed to comply with the requirements of this
covenant; and, provided, further, that the Guarantor shall be permitted to file its
Form 10-K for the year ending December 31, 2006 with the Securities and Exchange
Commission late, but that no Advance shall be made hereunder until such Form 10-K is
filed.
	 
	 	g.	 	The Guarantor shall maintain its status as a REIT under the Internal Revenue
Code.

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	 	h.	 	The Borrower agrees that, upon the sale or transfer by the Borrower, Guarantor,
any of their respective Subsidiaries, or any Affiliates of the foregoing, of any Real
Property, or any sale or transfer by the Borrower, Guarantor, any of their respective
Subsidiaries, or any Affiliates of the foregoing, of any direct or indirect interest in
a Person who owns any Real Property, then the Borrower shall cause 100% of the
applicable pro rata share of the net proceeds received by Borrower, Guarantor and their
respective Subsidiaries, as applicable, from such sale or transfer, net of the
repayment of Indebtedness secured by a mortgage on such Real Property, net of any
reasonable and customary third-party transaction costs in connection with such sale,
and net of any distribution of taxable gain arising from such sale to the extent
necessary for the Guarantor to maintain its status as a REIT, shall be paid to Lender
to repay then-outstanding amounts under this Note and, if such net proceeds exceed the
amount then-outstanding under the Note, the Principal Amount available to be drawn
thereafter under the Note shall be reduced by the amount of the excess proceeds.
	 
	 	i.	 	Borrower covenants to notify Lender in the event that Borrower fails to satisfy
the 75% gross income test as set forth under Section 856(c)(3) of the Internal Revenue
Code (the “75% Test”). In the event that Borrower fails to satisfy the 75% Test during
the term of this Note, Borrower agrees to indemnify Lender for (i) all costs and
expenses (including reasonable attorneys fees and disbursements) associated with
Lender’s assignment of the Note to a related Person of Lender and (ii) any penalties,
charges or tax liabilities incurred by Lender or its Affiliates as a result of
Borrower’s failure to satisfy this covenant; provided that, if Borrower notifies Lender
within three months of failing to satisfy the 75% Test, Borrower’s liability under
clause (ii) of this paragraph shall be limited to $50,000.

     During the term of this Note, the Borrower agrees to comply with the following negative
covenants unless the Lender shall otherwise consent in writing.

	 	a.	 	Borrower covenants that neither it nor Guarantor shall (i) dissolve, terminate,
or otherwise dispose of, directly, indirectly or by operation of law, all or
substantially all of its assets; (ii) reorganize, enter into a merger or consolidation
or change its legal structure without Lender’s prior written consent; or (iii) change
its name, address, or the name under which Borrower or Guarantor conducts its business
without promptly notifying Lender.
	 
	 	b.	 	The Borrower, the Guarantor and their respective Subsidiaries, and any
Affiliates of the foregoing, will not incur any Indebtedness other than the following:

	 	1.	 	Indebtedness outstanding as of the date of this Note;
	 
	 	2.	 	Indebtedness under this Note;

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	 	3.	 	Secured Indebtedness and unsecured Indebtedness not
outstanding as of the date of this Note to the extent that, at the time of
incurrence of such Indebtedness, (i) the financial covenants contained in
this Note are complied with on a pro forma basis giving effect to such
incurrence and the use of proceeds thereof, (ii) the Secured Indebtedness
does not exceed 80% of the Fair Market Value of the Real Properties, (iii)
the Indebtedness does not exceed 80% of the Fair Market Value of the Real
Properties;
	 
	 	4.	 	Extensions, renewals and refinancing of any of the
Indebtedness specified in paragraphs (1) and (3) above so long as the
principal amount of such Indebtedness is equal to or less than the
aggregate principal amount (plus fees and expenses of such extension,
renewal or refinancing) then outstanding under the Indebtedness being
refinanced.

	 	c.	 	The Borrower will not, nor will it permit any of its Subsidiaries to, enter
into any agreement which limits distributions to or any advance by any of the
Borrower’s Subsidiaries to the Borrower and Guarantor (other than pro rata limitations
based on relative ownership of less than wholly-owned Subsidiaries).
	 
	 	d.	 	Neither the Guarantor, the Borrower, nor any of their respective Subsidiaries,
or Affiliates of the foregoing, will make any Restricted Payment, except that:

	 	1.	 	provided no Event of Default has occurred and is
continuing or would result therefrom, (A) the Guarantor may in any fiscal
quarter make cash payments to its shareholders with respect to the
Guarantor Common Stock which with the previous such cash payments in the
three immediately preceding fiscal quarters are not in excess of the
greater of (i) $0.91 per annum or (ii) the amount required for the
Guarantor to maintain its status as a REIT, and (B) the Guarantor may make
payments of dividends on preferred stock so long as such payments are
subordinate to payments hereunder;
	 
	 	2.	 	any Subsidiary or Affiliate of the Guarantor (i) may
make Restricted Payments to the Borrower or the Guarantor and (ii) that is
a joint venture may make payments and distributions in accordance with
agreements existing as of the date hereof; and
	 
	 	3.	 	the limited partners of the Borrower shall be entitled
to exchange limited partnership interests in the Borrower for the
Guarantor’s stock or redeem such interests for cash, as provided in the
Borrower’s limited partnership agreement;

     During the term of this Note, the Borrower agrees to comply with and cause the Guarantor to
comply with the following financial covenants.

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     a. Fixed Charge Coverage Ratio. The Guarantor on a consolidated basis shall maintain
at the end of each Rolling Period a Fixed Charge Coverage Ratio of not less than 1.15 to 1.00.

     b. Maintenance of Net Worth. The Guarantor on a consolidated basis shall at all times
maintain a Consolidated Net Worth of at least $100,000,000, plus 85% of the cash proceeds received
from an equity offering of the Guarantor, net of underwriting discounts and commissions and other
reasonable offering expenses.

     The occurrence of any one or more of the following events (regardless of the reason therefor)
shall constitute an “Event of Default” hereunder:

	 	a.	 	Borrower shall fail to make any payment of interest or principal under this
Note when due and payable or declared due and payable and shall fail to cure such
failure within five (5) days after notice is given to Borrower by Lender.
	 
	 	b.	 	Borrower shall fail or neglect to perform, keep or observe any provision of
this Note or any other Loan Document and the same shall remain unremedied for a period
of 10 days after notice is given to Borrower by Lender.
	 
	 	c.	 	Either Borrower or Guarantor shall generally not pay its debts as such debts
become due or admit in writing its inability to pay its debts generally, or files a
bankruptcy petition, a bankruptcy petition is filed against Borrower or Guarantor that
is not dismissed within ninety (90) days, or Borrower or Guarantor makes a general
assignment for the benefit of creditors.
	 
	 	d.	 	Any representation or warranty made by the Borrower and Guarantor in this Note
or the Loan Documents shall prove to have been incorrect in any material respect when
made.
	 
	 	e.	 	With respect to any Indebtedness in a principal amount of at least $5,000,000
individually or when aggregated with all other Indebtedness of the Borrower, Guarantor
or their Subsidiaries, any such Indebtedness shall be declared to be due and payable or
required to be prepaid (other than by a regularly scheduled required prepayment), prior
to the stated maturity thereof, or any of the Borrower, Guarantor or their respective
Subsidiaries shall fail to pay any principal of or premium or interest of any such
Indebtedness and such failure shall continue after the applicable grace period, if any,
specified in the agreement or instrument relating to such indebtedness.
	 
	 	f.	 	Any of the following shall occur without the written consent of Lender: (1) the
failure of individuals who are members of the board of directors (or similar governing
body) of the Guarantor on the date of this Note (together with any new or replacement
directors whose initial nomination for election was approved by a majority of the
directors who were either directors on the date of the Note or previously so approved)
to constitute a majority of the board of directors (or

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	 	 	 	similar governing body) of the Guarantor, (2) Guarantor admits a new general partner
of the Borrower or owns, directly or indirectly through one or more wholly-owned
subsidiaries, less than 70% of the partnership interests and beneficial ownership of
the Borrower, or (3) the failure of any two of Larry Feldman, James C. Bourg and
Thomas Wirth to serve as executive officers of the Guarantor and Guarantor does not
replace the two executive officers with a person reasonably acceptable to Lender
within four months of the departure of the two executives; provided, that (A) Lender
shall be deemed to have approved a person proposed by Guarantor if Lender does not
give notice of objection within ten (10) days following request for approval and (B)
if Lender does not approve the first replacement offered by Guarantor, Guarantor
shall have one additional three (3) month period following Lender’s notice of
objection to replace the ceasing person with a person reasonably acceptable to
Lender..
	 
	 	g.	 	A Material Adverse Change shall occur.

Upon the occurrence of any Event of Default, Lender may (i) declare all indebtedness evidenced by
this Note to be immediately due and payable, whereupon all such indebtedness shall become due and
payable, without presentment, demand, protest or further notice of any kind, all of which are
expressly waived by Borrower, and (ii) exercise all rights and remedies available under the Loan
Documents and applicable law.

     In the event that Lender institutes legal proceedings to enforce the Loan Documents, Borrower
agrees to pay to Lender, in addition to any indebtedness due and unpaid, all costs and expenses of
such proceedings, including reasonable attorneys’ fees.

     Lender shall not by any act of omission or commission be deemed to waive any of its rights or
remedies hereunder unless such waiver be in writing and signed by an authorized officer of Lender
and then only to the extent specifically set forth therein. A waiver on one occasion shall not be
construed as continuing or as a bar to or waiver of such right or remedy on any other occasion.
All remedies conferred upon Lender by the Loan Documents shall be cumulative and none is exclusive,
and such remedies may be exercised concurrently or consecutively at Lender’s option.

     Except as expressly provided for in this Note or any other Loan Document, every person at any
time liable for the payment of the debt evidenced hereby waives presentment for payment, demand,
notice of nonpayment of this Note, protest and notice of protest, all exemptions and homestead laws
and all rights thereunder and consents that Lender may extend the time of payment of any part or
the whole of the debt, or grant any other modifications or indulgence pertaining to payment of this
Note at any time, at the request of any other person liable for said debt.

     This Note is hereby expressly limited so that in no contingency or event whatsoever, whether
by acceleration of maturity of the indebtedness evidenced hereby or otherwise, shall the amount
paid or agreed to be paid to Lender for the use, forbearance or detention of the money advanced or
to be advanced hereunder exceed the highest lawful rate permissible under the laws

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of the State of New York as applicable to Borrower. If, from any circumstances whatsoever,
fulfillment of any provision of this Note or of any other Loan Document shall, at the time
performance of such provisions shall be due, involve the payment of interest in excess of that
authorized by law, the obligation to be fulfilled shall be reduced to the limit so authorized by
law, and if, from any circumstances, Lender shall ever receive as interest an amount which would
exceed the highest lawful rate applicable to Borrower, such amount which would be excessive
interest shall be applied to the reduction of the unpaid principal balance of the indebtedness
evidenced hereby and not to the payment of interest.

     All covenants, agreements, representations and warranties made herein and in the other Loan
Document are deemed to have been relied upon by Lender, notwithstanding any investigation by
Lender.

     Should this Note be signed by more than one person, firm or corporation or combination
thereof, all of the obligations herein contained shall be considered joint and several obligations
of each signer hereof. In such case, the liability of each such signer shall be absolute,
unconditional and without regard to the liability of any other party hereto.

     This Note is given and accepted as evidence of indebtedness only and not in payment or
satisfaction of any indebtedness or obligation.

     The form and essential validity of this Note shall be governed by the laws of the State of New
York. If any provision of this Note is prohibited by, or is unlawful or unenforceable under, any
applicable law of any jurisdiction, such provision shall, as to such jurisdiction, be ineffective
to the extent of such prohibition without invalidating the remaining provisions hereof; provided
that where the provisions of any such applicable law may be waived, they hereby are waived by
Borrower to the full extent permitted by law in order that this Note shall be deemed to be a valid
and binding promissory note in accordance with its terms.

     Time is of the essence with respect to all Borrower’s obligations and agreements under this
Note.

     This Note and all the provisions, conditions, promises and covenants hereof shall inure to the
benefit of Lender, its successors and assigns, and shall be binding in accordance with the terms
hereof upon Borrower, its successors and assigns, provided nothing herein shall be deemed consent
to any assignment restricted or prohibited by the terms of the Loan Documents.

     All notices required under this Note or any other Loan Document will be in writing and will be
transmitted by personal delivery, first class mail, overnight courier or facsimile to the addresses
or facsimile numbers appearing on the signature page to this Note, or to such other addresses or
facsimile numbers as Borrower and Lender may specify from time to time in writing. Every notice
shall be deemed to have been duly given or served on the date on which personally delivered, in
person or by overnight courier service, or the date of facsimile transmission or five (5) days
after the same shall have been deposited in the United States mail. Failure or delay in delivering
copies of any notice shall in no way adversely affect the effectiveness of such notice.

11

 

     To induce Lender to extend to Borrower the loan evidenced by this Note, Borrower irrevocably
agrees that, subject to Lender’s sole and absolute election, ALL ACTIONS OR PROCEEDINGS IN ANY WAY
ARISING OUT OF OR RELATED TO THIS NOTE OR ANY OTHER LOAN DOCUMENT WILL BE LITIGATED IN COURTS
HAVING SITUS IN NEW YORK, NEW YORK. BORROWER HEREBY CONSENTS AND SUBMITS TO THE JURISDICTION OF
ANY COURT LOCATED WITHIN NEW YORK, NEW YORK, WAIVES PERSONAL SERVICE OF PROCESS UPON BORROWER, AND
AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL DIRECTED TO BORROWER AT THE
ADDRESS STATED ON THE SIGNATURE PAGE HEREOF AND SERVICE SO MADE WILL BE DEEMED TO BE COMPLETED UPON
ACTUAL RECEIPT.

     BORROWER AND LENDER EACH WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO
ENFORCE OR DEFEND ANY RIGHTS UNDER THIS NOTE OR ANY OTHER LOAN DOCUMENT OR UNDER ANY AMENDMENT,
INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION
WITH THIS NOTE AND AGREES THAT ANY SUCH ACTION OR PROCEEDING WILL BE TRIED BEFORE A COURT AND NOT
BEFORE A JURY. BORROWER AGREES THAT BORROWER WILL NOT ASSERT ANY CLAIM AGAINST LENDER ON ANY
THEORY OF LIABILITY FOR SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES.

12

 

     IN WITNESS WHEREOF, the undersigned have caused their duly authorized officers to execute this
Note on its behalf as of the date and year first set forth above.

	 	 	 	 	 
	 	BORROWER:

FELDMAN EQUITIES OPERATING

PARTNERSHIP, LP, a Delaware limited partnership	 
	 	By:  	Feldman Holdings Business Trust I, 
its General Partner
 
	 
	 	 	 
	 	By:  	     /s/ Lawrence Feldman
 	 
	 	 	Name:  	Lawrence Feldman 	 
	 	 	Title:  	Chairman and Chief Executive Officer 	 
	 
	 	Address:

c/o Feldman Mall Properties

1010 Northern Boulevard

Suite 314

Great Neck, New York 11021

Attention: Larry Feldman

Facsimile No.: 516-684-1059

With a copy to:

Feldman Mall Properties, Inc.

2201 E. Camelback Road

Suite 350

Phoenix, Arizona 85016

Attn: Legal Affairs

Facsimile No. 602-277-7774

 	 
	 	 	 
	 	 	 
	 	 	 

13

 

	 	 	 	 	 
	 	LENDER:

KIMCO CAPITAL CORP.,

a Delaware corporation

 	 
	 	By:  	/s/ JoAnn Carpenter
 	 
	 	 	Name:  	JoAnn Carpenter 	 
	 	 	Title:  	Vice President 	 
	 
	 	Addresses for Notices to Lender:

c/o Kimco Realty Corporation

3333 New Hyde Park Road

Suite 100

New Hyde Park, New York 11042

Attention: Bruce Rubenstein

Facsimile No.: 516-869-2545

and

Attention: Glenn Cohen

Facsimile No.: 516-869-2572

and

c/o Kimco Realty Corporation

1111 Burlington Avenue

Suite 113

Lisle, IL 60532

Attention: Eric Niederman

Facsimile No.: 630-322-9204

 	 
	 	 	 
	 	 	 
	 	 	 

14

 

	 	 	 	 	 

ANNEX A

To Promissory Note

Definitions

     “Affiliate” means, with respect to any Person, any Person that directly or indirectly through
one or more intermediaries controls or is controlled by or is under common control with the
specified Person and any Subsidiaries of such specified Person; provided, however, that with regard
to any joint venture entities (whether a partnership, limited liability company, or any other form
of entity) owned directly or indirectly by such Person and one or more other Persons, the joint
venture entity shall be deemed to be an Affiliate even if such Person does not control such entity.
For purposes of this definition, the term “control” shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through ownership of a Control Percentage, by contract or otherwise.

     “Capital Lease” means, for any Person, any lease of any Property by that Person as lessee
which, in accordance with GAAP, is or should be accounted for as a capital lease on the balance
sheet of that Person.

     “CERCLA” means the Comprehensive Environmental Response, Compensation, and Liability Act of
1980, as amended, state and local analogs, and all rules and regulations and requirements
thereunder in each case as now or hereafter in effect.

     “Consolidated EBITDA” means, for any period for which such amount is being determined, an
amount equal to (a) the net income of the Guarantor (on a consolidated basis) for such period after
taxes, as determined in accordance with GAAP, excluding, however, (i) any net gain or loss during
such period arising from the sale, exchange, or other disposition of capital assets (such term to
include all fixed assets and all securities) other than in the ordinary course of business, and
(ii) any write-up or write-down of assets, and (iii) any non-recurring, non-cash charge, plus (b)
to the extent deducted in determining Consolidated EBITDA, Interest Expense, income taxes,
depreciation, amortization.

     “Consolidated Net Worth” means the sum of total stockholders equity of Guarantor on a
consolidated basis, less intangible assets, plus intangible liabilities and depreciation on real
property, determined in accordance with GAAP as of the end of each fiscal quarter of Guarantor.

     “Control Percentage” means, with respect to any Person, the percentage of the outstanding
capital stock of such Person having ordinary voting power which gives the direct or indirect holder
of such equity interests the power to elect a majority of the board of directors, managers or other
Persons that control and manage the affairs of such Person.

     “Fair Market Value” means, with respect to any Real Property, the value of the Land,
Improvements located thereon, and all appurtenances thereto, as determined by an appraisal
conducted by an M.A.I. real estate appraiser selected by the Lender.

     “Fixed Charge Coverage Ratio” means, as of the end of any Rolling Period, a ratio of (a) the
Consolidated EBITDA for such Rolling Period to (b) the Fixed Charges for such Rolling Period.

15

 

     “Fixed Charges” means, for the period for which such amount is being determined, the sum
(without duplication) of the following amounts for the Guarantor and the Guarantor’s Subsidiaries
on a consolidated basis: (i) mandatory principal payments scheduled to be made (excluding optional
prepayments and scheduled principal payments in respect of any such Indebtedness which is payable
in a single installment at final maturity), (ii) Guarantor’s Interest Expense, (iii) all payments
scheduled to be made in respect of Capital Leases and (iv) paid or accrued preferred stock
dividends; provided that, to the extent that they would otherwise be included in the calculation of
the foregoing clauses (i) through (iv), such calculation shall exclude amounts (A) in respect of
the Tallahassee and Northgate Amortization, (B) incurred in connection with any charges, write-offs
or premiums resulting from the early retirement of debt relating to liability management
activities, and (C) related to deferred financing charges.

     “Governmental Authority” means any foreign governmental authority, the United States of
America, any state of the United States of America and any subdivision of any of the foregoing, and
any agency, department, commission, board, authority or instrumentality, bureau or court having
jurisdiction over the Borrower, the Guarantor, or any Subsidiaries of the Borrower or the
Guarantor.

     “Hazardous Substance” means the substances identified as such pursuant to CERCLA and those
regulated under any other environmental law, including without limitation pollutants, contaminants,
petroleum, petroleum products, radio nuclides, radioactive materials, and medical and infectious
waste.

     “Hazardous Waste” means the substances regulated as such pursuant to any environmental law.

     “Indebtedness” means (without duplication), at any time and with respect to any Person, (a)
indebtedness of such Person for borrowed money (whether by loan or the issuance and sale of debt
securities) or for the deferred purchase price of property or services purchased (other than
amounts constituting trade payables, accruals or bank drafts arising in the ordinary course of
business); (b) indebtedness of others in the amount which such Person has directly or indirectly
assumed or guaranteed or indemnified or otherwise provided credit support therefor or for which
such Person is liable as a partner of such Person; (c) indebtedness of others in the amount secured
by a Lien on assets of such Person, whether or not such Person shall have assumed such
indebtedness; (d) obligations of such Person in respect of letters of credit, acceptance
facilities, or drafts or similar instruments issued or accepted by banks and other financial
institutions for the account of such Person (other than trade payables or bank drafts arising in
the ordinary course); (e) obligations of such Person under Capital Leases; (f) such Person’s pro
rata share of indebtedness and contingent obligations of any partnership, limited liability company
or other joint venture entity in which such Person owns a direct or indirect interest; and (g) all
preferred stock that is issued by such Person that is mandatorily redeemable (other than customary
change of control redemptions) by the holder thereof in cash, a cash equivalent or some type of
Indebtedness or convertible to some type of Indebtedness.

     “Interest Expense” means, for any Person for any period for which such amount is being
determined, the total interest expense (including that properly attributable to Capital Leases in
accordance with GAAP) and all charges incurred with respect to letters of credit determined on a
consolidated basis in conformity with GAAP, plus capitalized interest of such Person and its
Subsidiaries.

16

 

     “Lien” means any mortgage, lien, pledge, charge, deed of trust, security interest, encumbrance
or other type of preferential arrangement to secure or provide for the payment of any obligation of
any Person, whether arising by contract, operation of law or otherwise.

     “Material Adverse Change” shall mean a material adverse change in the business, financial
condition, or results of operations of the Borrower and the Guarantor, taken as a whole.

     “Person” means an individual, partnership, corporation (including a business trust), joint
stock company, trust, unincorporated association, limited liability company, joint venture or other
entity, or a government or any political subdivision or agency thereof or any trustee, receiver,
custodian or similar official.

     “Property” of any Person means any property or assets, whether real, personal, mixed, tangible
or intangible) of such Person.

     “pro forma” calculations shall be made on a basis consistent with Article 11 of Regulation S-X
under the Securities Act of 1933, as amended.

     “Real Properties” means any real property owned or controlled by the Guarantor, Borrower, any
of their respective Subsidiaries, or any Affiliates of the foregoing.

     “Restricted Payment” means (a) any direct or indirect payment, prepayment, redemption,
purchase, or irrevocable deposit of funds or Property for the payment (including any sinking fund
or defeasance), prepayment, redemption or purchase of Indebtedness not permitted by this Agreement,
and (b) the making by any Person of any dividends or other distributions (in cash, property, or
otherwise) on, or payment for the purchase, redemption or other acquisition of, any shares of any
capital stock, any limited liability company interests or any partnership interests of such Person,
other than dividends or distributions payable in such Person’s stock, limited liability company
interests or any partnership interests.

     “Rolling Period” means, as of any date, the most recent four fiscal quarters for which
financial statements are available and ending on or prior to such date.

     “Secured Indebtedness” means any Indebtedness secured by a Lien or mortgage on any property of
any Person, whether or not classified as a liability on a balance sheet.

     “Subsidiary” of a Person means any corporation, association, partnership or other business
entity of which more than 20% of the outstanding shares of capital stock (or other equivalent
interests) having by the terms thereof ordinary voting power under ordinary circumstances to elect
a majority of the board of directors or Persons performing similar functions (or, if there are no
such directors or Persons, having general voting power) of such entity (irrespective of whether at
the time capital stock (or other equivalent interests) of any other class or classes of such entity
shall or might have voting power upon the occurrence of any contingency) is at the time directly or
indirectly owned or controlled by such Person, by such Person and one or more Subsidiaries of such
Person or by one or more Subsidiaries of such Person.

     “Tallahassee and Northgate Amortization” means the amortization payments in connection with
the existing mortgage loans for Tallahassee Mall and Northgate Mall.

17exv10w4

 

EXHIBIT 10.4

GUARANTY OF PAYMENT AND PERFORMANCE

     This GUARANTY OF PAYMENT AND PERFORMANCE dated as of April 10, 2007 (this “Guaranty”), is
executed by FELDMAN MALL PROPERTIES, INC., a Maryland corporation (“Guarantor”), to and for the
benefit of KIMCO CAPITAL CORP., a Delaware corporation (“Lender”).

RECITALS:

     A. Lender has agreed to loan the principal amount of Twenty-Five Million and 00/100 Dollars
($25,000,000.00) or such lesser principal amount as may be outstanding thereunder (the “Loan”) to
Feldman Equities Operating Partnership, LP, a Delaware limited partnership (the “Borrower”). All
terms not otherwise defined herein shall have the meanings set forth the Note (as defined below).

     B. As a condition precedent to Lender’s extension of the Loan to Borrower and in consideration
therefor, Lender has required the execution and delivery of (i) this Guaranty by Guarantor, (ii)
that certain Promissory Note dated even date herewith, executed by Borrower and made payable to the
order of Lender (the “Note”), evidencing the Loan, and (iii) the other Loan Documents (as defined
in the Note).

     C. Guarantor is an affiliate of Borrower and, having a financial interest in Borrower, has
agreed to execute and deliver this Guaranty to Lender.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
hereby are acknowledged, Guarantor hereby agrees as follows:

AGREEMENTS:

     1. Guaranty. Guarantor hereby unconditionally, absolutely and irrevocably guaranties
to Lender the punctual payment and performance when due, whether at stated maturity or by
acceleration or otherwise, of the indebtedness and other obligations of Borrower to Lender
evidenced by the Note and any other amounts that may become owing by the Borrower under the Loan
Documents, including any amendments, additions, substitutions, supplements, extensions or renewals
of the foregoing (such indebtedness, obligations and other amounts are hereinafter referred to as
“Payment Obligations”) and the prompt and proper performance by Borrower of all of its obligations
to Lender under the Loan Documents (collectively the “Non-Payment Obligations”). This Guaranty is
a present and continuing guaranty of payment and performance and not of collectability, and Lender
shall not be required to prosecute collection, enforcement or other remedies against Borrower or
any other guarantor of the Payment Obligations or Non-Payment Obligations, or to enforce or resort
to any collateral for the repayment of the Payment Obligations or other rights or remedies
pertaining thereto, before calling on Guarantor for payment or performance. The Guarantor further
specifically agrees that if for any reason Borrower shall fail or be unable to pay, punctually and
fully, any of the Payment Obligations, Guarantor shall pay such obligations to Lender in full
immediately upon demand. One or more successive actions may be brought against Guarantor, as often
as Lender deems advisable, until all of the Payment

 

 

Obligations are paid and performed in full. The Payment Obligations, the Non-Payment
Obligations, together with all other payment and performance obligations of the Guarantor
hereunder, are referred to herein as the “Obligations”. Without limiting the foregoing, the
undersigned absolutely, irrevocably and unconditionally indemnifies and saves Lender harmless from
and against all liabilities, suits, proceedings, actions, claims and assertions, charges, demands,
delays, injuries and expenses (including reasonable attorneys fees and disbursements) which are
incurred by Lender as a result of any allegation or determination that the Obligations involve a
fraudulent conveyance, transfer or obligation under federal or state law.

     2. Representations and Warranties. The following shall constitute representations and
warranties of Guarantor, and Guarantor hereby acknowledges that Lender intends to make the Loan in
reliance thereon:

     (a) Guarantor is not in default, and no event has occurred which, with the passage of
time and/or the giving of notice, would constitute a default, under any agreement to which
Guarantor is a party, the effect of which will impair performance by Guarantor of its
obligations under this Guaranty. Neither the execution and delivery of this Guaranty nor
compliance with the terms and provisions hereof will violate any applicable law, rule,
regulation, judgment, decree or order, or will conflict with or result in any breach of any
of the terms, covenants, conditions or provisions of any indenture, mortgage, deed of trust,
instrument, document, agreement or contract of any kind that creates, represents, evidences
or provides for any lien, charge or encumbrance upon any of the property or assets of
Guarantor, or any other indenture, mortgage, deed of trust, instrument, document, agreement
or contract of any kind to which Guarantor is a party or to which Guarantor or the property
of Guarantor may be subject.

     (b) There are no litigation, arbitration, governmental or administrative proceedings,
actions, examinations, claims or demands pending, or to the knowledge of Guarantor,
threatened that could adversely affect performance by Guarantor of its obligations under
this Guaranty.

     (c) Neither this Guaranty nor any statement or certification as to facts previously
furnished or required herein to be furnished to the Lender by Guarantor, contains any
material inaccuracy or untruth in any representation, covenant or warranty or omits to state
a fact material to this Guaranty.

     (d) Guarantor represents and warrants that it complies with all of the requirements
necessary for classification for federal income tax purposes as a Real Estate Investment
Trust within the meaning of Section 856 of the Internal Revenue Code, including without
limitation, compliance with the requirements regarding the composition of its assets and
character of its gross income.

     (e) Guarantor is informed of the financial condition of Borrower and of all other
circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment or
performance of the Obligations.

2

 

     3. Continuing Guaranty. Guarantor agrees that performance of the Obligations by
Guarantor shall be a primary obligation, shall not be subject to any counterclaim, set-off,
abatement, deferment or defense based upon any claim that Guarantor may have against Lender,
Borrower, any other guarantor of the Obligations or any other person or entity, and shall remain in
full force and effect without regard to, and shall not be released, discharged or affected in any
way by, any circumstance or condition (whether or not Guarantor shall have any knowledge thereof),
including without limitation:

     (a) any lack of validity or enforceability of any of the Loan Documents;

     (b) any termination, amendment, modification or other change in any of the Loan
Documents, including, without limitation, any modification of the interest rate(s) described
therein;

     (c) any furnishing, exchange, substitution or release of any collateral securing
repayment of the Loan, or any failure to perfect any lien in such collateral;

     (d) any failure, omission or delay on the part of Borrower, Guarantor, any other
guarantor of the Obligations or Lender to conform or comply with any term of any of the Loan
Documents or any failure of Lender to give notice of any Event of Default (as defined in the
Note);

     (e) any waiver, compromise, release, settlement or extension of time of payment or
performance or observance of any of the obligations or agreements contained in any of the
Loan Documents;

     (f) any action or inaction by Lender under or in respect of any of the Loan Documents,
any failure, lack of diligence, omission or delay on the part of Lender to perfect, enforce,
assert or exercise any lien, security interest, right, power or remedy conferred on it in
any of the Loan Documents, or any other action or inaction on the part of Lender;

     (g) any voluntary or involuntary bankruptcy, insolvency, reorganization, arrangement,
readjustment, assignment for the benefit of creditors, composition, receivership,
liquidation, marshalling of assets and liabilities or similar events or proceedings with
respect to Borrower, Guarantor or any other guarantor of the Obligations, as applicable, or
any of their respective property or creditors, or any action taken by any trustee or
receiver or by any court in any such proceeding;

     (h) any merger or consolidation of Borrower into or with any entity, or any sale, lease
or transfer of any of the assets of Borrower, Guarantor or any other guarantor of the
Obligations to any other person or entity;

     (i) any change in the ownership of Borrower or any change in the relationship between
Borrower, Guarantor or any other guarantor of the Obligations, or any termination of any
such relationship;

3

 

     (j) any release or discharge by operation of law of Borrower, Guarantor or any other
guarantor of the Obligations from any obligation or agreement contained in any of the Loan
Documents; or

     (k) any other occurrence, circumstance, happening or event, whether similar or
dissimilar to the foregoing and whether foreseen or unforeseen, which otherwise might
constitute a legal or equitable defense or discharge of the liabilities of a guarantor or
surety or which otherwise might limit recourse against Borrower or Guarantor to the fullest
extent permitted by law.

     4. Waivers. The Guarantor expressly and unconditionally waives (i) notice of any of
the matters referred to in Section 3 above, (ii) all notices which may be required by statute, rule
of law or otherwise, now or hereafter in effect, to preserve intact any rights against Guarantor,
including, without limitation, any demand, presentment and protest, proof of notice of non-payment
under any of the Loan Documents and notice of any Event of Default or any failure on the part of
Borrower, Guarantor or any other guarantor of the Obligations to perform or comply with any
covenant, agreement, term or condition of any of the Loan Documents, (iii) any right to the
enforcement, assertion or exercise against Borrower, Guarantor or any other guarantor of the
Obligations of any right or remedy conferred under any of the Loan Documents, (iv) any requirement
of diligence on the part of any person or entity, (v) any requirement on the part of Lender to
exhaust any remedies or to mitigate the damages resulting from any default under any of the Loan
Documents, and (vi) any notice of any sale, transfer or other disposition of any right, title or
interest of Lender under any of the Loan Documents.

     5. Subordination. Guarantor agrees that any and all present and future debts and
obligations of Borrower to Guarantor are hereby subordinated to the claims of Lender and are hereby
assigned by Guarantor to Lender as security for the Obligations and the obligations of Guarantor
under this Guaranty.

     6. Subrogation Waiver. Until the Obligations are paid in full and all periods under
applicable bankruptcy law for the contest of any payment by Guarantor or Borrower as a preferential
or fraudulent payment have expired, Guarantor knowingly, and with advice of counsel, waives,
relinquishes, releases and abandons all rights and claims to indemnification, contribution,
reimbursement, subrogation and payment which Guarantor may now or hereafter have by and from
Borrower and the successors and assigns of Borrower, for any payments made by Guarantor to Lender,
including, without limitation, any rights which might allow Borrower, Borrower’s successors, a
creditor of Borrower, or a trustee in bankruptcy of Borrower to claim in bankruptcy or any other
similar proceedings that any payment made by Borrower or Borrower’s successors and assigns to
Lender was on behalf of or for the benefit of Guarantor and that such payment is recoverable by
Borrower, a creditor or trustee in bankruptcy of Borrower as a preferential payment, fraudulent
conveyance, payment of an insider or any other classification of payment which may otherwise be
recoverable from Lender.

     7. Reinstatement. The obligations of Guarantor pursuant to this Guaranty shall
continue to be effective or automatically be reinstated, as the case may be, if at any time payment
of any of the Obligations or the obligations of Guarantor under this Guaranty is rescinded or
otherwise must be restored or returned by Lender upon the insolvency, bankruptcy, dissolution,

4

 

liquidation or reorganization of Guarantor or Borrower, by reason of any judgment, decree or
order of any court or administrative body or otherwise, all as though such payment had not been
made.

     8. Financial Statements. Guarantor represents and warrants to Lender that (a) any
financial statements of Guarantor submitted to Lender on or prior to the date hereof are true,
complete and correct in all material respects, disclose all actual and contingent liabilities, and
fairly present the financial condition of Guarantor as of their respective dates, and do not
contain any untrue statement of a material fact or omit to state a fact material to the financial
statements submitted or this Guaranty, and (b) no material adverse change has occurred in any such
financial statements from the dates thereof until the date hereof. Upon Lender’s request,
Guarantor shall furnish to Lender financial statements in form and substance reasonably acceptable
to Lender, including, but not limited to, federal income tax returns, certified by Guarantor as
true, complete and correct.

     9. Enforcement Costs. If: (a) this Guaranty, is placed in the hands of one or more
attorneys for collection or is collected through any legal proceeding; (b) one or more attorneys is
retained to represent Lender in any bankruptcy, reorganization, receivership or other proceedings
affecting creditors’ rights and involving a claim under this Guaranty, or (c) one or more attorneys
is retained to represent Lender in any other proceedings whatsoever in connection with this
Guaranty, then Guarantor shall pay to Lender upon demand all fees, costs and expenses incurred by
Lender in connection therewith, including, without limitation, reasonable attorney’s fees, court
costs and filing fees (all of which are referred to herein as the “Enforcement Costs”), in addition
to all other amounts due hereunder.

     10. Successors and Assigns; Joint and Several Liability. This Guaranty shall inure to
the benefit of Lender and its successors and assigns. This Guaranty shall be binding on Guarantor
and the heirs, legatees, successors and assigns of Guarantor. It is agreed that the liability of
Guarantor hereunder is several and independent of any other guarantees or other obligations at any
time in effect with respect to the Obligations or any part thereof and that the liability of
Guarantor hereunder may be enforced regardless of the existence, validity, enforcement or
non-enforcement of any such other guarantees or other obligations.

     11. No Waiver of Rights. No delay or failure on the part of Lender to exercise any
right, power or privilege under this Guaranty or any of the other Loan Documents shall operate as a
waiver thereof, and no single or partial exercise of any right, power or privilege shall preclude
any other or further exercise thereof or the exercise of any other power or right, or be deemed to
establish a custom or course of dealing or performance between the parties hereto. The rights and
remedies herein provided are cumulative and not exclusive of any rights or remedies provided by
law. No notice to or demand on Guarantor in any case shall entitle Guarantor to any other or
further notice or demand in the same, similar or other circumstance.

     12. Modification. The terms of this Guaranty may be waived, discharged, or terminated
only by an instrument in writing signed by the party against which enforcement of the change,
waiver, discharge or termination is sought. No amendment, modification, waiver or other change of
any of the terms of this Guaranty shall be effective without the prior written consent of the
Lender.

5

 

     13. Joinder. Any action to enforce this Guaranty may be brought against Guarantor
without any reimbursement or joinder of Borrower or any other guarantor of the Obligations in such
action.

     14. Severability. If any provision of this Guaranty is deemed to be invalid by reason
of the operation of law, or by reason of the interpretation placed thereon by any administrative
agency or any court, Guarantor and Lender shall negotiate an equitable adjustment in the provisions
of the same in order to effect, to the maximum extent permitted by law, the purpose of this
Guaranty and the validity and enforceability of the remaining provisions, or portions or
applications thereof, shall not be affected thereby and shall remain in full force and effect.

     15. Applicable Law. This Guaranty is governed as to validity, interpretation, effect
and in all other respects by laws and decisions of the State of New York.

     16. Notices. All notices, communications and waivers under this Guaranty shall be in
writing and shall be (a) delivered in person, (b) mailed, postage prepaid, either by registered or
certified mail, return receipt requested, or (c) by overnight express carrier, addressed in each
case as follows:

	 	 	 	 	 
	 

	 	To Lender:
	 	c/o Kimco Realty Corporation
	 

	 	 	 	3333 New Hyde Park Road Suite 100
	 

	 	 	 	New Hyde Park, New York 11042
	 

	 	 	 	Attention: Bruce Rubenstein
	 

	 	 	 	Facsimile No.: (516) 869-7256 and
	 

	 	 	 	Attention: Glenn Cohen
	 

	 	 	 	Facsimile No.: 516-869-2572 and
	 
	 	 	 	 
	 

	 	 	 	c/o Kimco Realty Corporation
	 

	 	 	 	1111 Burlington Avenue
	 

	 	 	 	Suite 113
	 

	 	 	 	Lisle, IL 60532
	 

	 	 	 	Attention: Eric Niederman
	 

	 	 	 	Facsimile No.: 630-322-9204
	 
	 	 	 	 
	 

	 	To Guarantor:
	 	1010 Northern Boulevard
	 

	 	 	 	Suite 314
Great Neck, New York 11021
	 

	 	 	 	Attention: Larry Feldman
	 

	 	 	 	Facsimile No.: (516) 684-1059
	 
	 	 	 	 
	 

	 	 	 	With a copy to:
	 
	 	 	 	 
	 

	 	 	 	Feldman Mall Properties, Inc.
	 

	 	 	 	2201 E. Camelback Road, Suite 350
	 

	 	 	 	Phoenix, Arizona 85016
	 

	 	 	 	Attention: Legal Affairs
	 

	 	 	 	Facsimile No. 602-277-7774

6

 

or to any other address as to any of the parties hereto, as such party shall designate in a written
notice to the other parties hereto. All notices sent pursuant to the terms of this Section shall
be deemed received (i) if personally delivered, then on the date of delivery, (ii) if sent by
overnight, express carrier, then on the next federal banking day immediately following the day
sent, or (iii) if sent by registered or certified mail, then on the earlier of the third federal
banking day following the day sent or when actually received.

     17. CONSENT TO JURISDICTION. TO INDUCE LENDER TO ACCEPT THIS GUARANTY, GUARANTOR
IRREVOCABLY AGREES THAT, SUBJECT TO LENDER’S SOLE AND ABSOLUTE ELECTION, ALL ACTIONS OR PROCEEDINGS
IN ANY WAY ARISING OUT OF OR RELATED TO THIS GUARANTY WILL BE LITIGATED IN COURTS HAVING SITUS IN
NEW YORK, NEW YORK. GUARANTOR HEREBY CONSENTS AND SUBMITS TO THE JURISDICTION OF ANY COURT LOCATED
WITHIN NEW YORK, NEW YORK, WAIVES PERSONAL SERVICE OF PROCESS AND AGREES THAT ALL SUCH SERVICE OF
PROCESS MAY BE MADE BY REGISTERED MAIL DIRECTED TO GUARANTOR AT THE ADDRESS STATED HEREIN AND
SERVICE SO MADE WILL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT.

     18. WAIVER OF DEFENSES. OTHER THAN CLAIMS BASED UPON THE FAILURE OF LENDER TO ACT IN
A COMMERCIALLY REASONABLE MANNER, GUARANTOR WAIVES EVERY PRESENT AND FUTURE DEFENSE (OTHER THAN THE
DEFENSE OF PAYMENT IN FULL), CAUSE OF ACTION, COUNTERCLAIM OR SETOFF WHICH GUARANTOR OR BORROWER
MAY NOW HAVE OR HEREAFTER MAY HAVE TO ANY ACTION BY LENDER IN ENFORCING THIS GUARANTY OR ANY OF THE
LOAN DOCUMENTS. THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER GRANTING ANY FINANCIAL
ACCOMMODATION TO BORROWER.

     19. WAIVER OF JURY TRIAL. GUARANTOR AND LENDER (BY ACCEPTANCE HEREOF), HAVING BEEN
REPRESENTED BY COUNSEL, EACH KNOWINGLY AND VOLUNTARILY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS GUARANTY OR UNDER ANY AMENDMENT,
INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION
HEREWITH AND AGREES THAT ANY SUCH ACTION OR PROCEEDING WILL BE TRIED BEFORE A COURT AND NOT BEFORE
A JURY. GUARANTOR AGREES THAT GUARANTOR WILL NOT ASSERT ANY CLAIM AGAINST LENDER ON ANY THEORY OF
LIABILITY FOR SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES.

     20. Facsimile Signatures. Receipt of an executed signature page to this Guaranty by
facsimile or other electronic transmission shall constitute effective delivery thereof.

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     IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date first above written.

	 	 	 	 	 
	 	FELDMAN MALL PROPERTIES, INC., a Maryland corporation

 	 
	 	By:  	/s/ Lawrence Feldman
 	 
	 	 	Name:  	Lawrence Feldman 	 
	 	 	Title:  	Chairman and Chief Executive Officer 	 
	 

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