Document:

Exhibit 10.104

 

RECORD AND RETURN TO:

 

Cassin
Cassin & Joseph LLP

711
Third Avenue, 20th Floor

New
York, New York 10017

Attn:  Carol M. Joseph, Esq.

 

MORTGAGE,
ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND FIXTURE FILING

 

INLAND
AMERICAN FRAMINGHAM, L.L.C., a 

Delaware limited liability company, as mortgagor (Borrower)

 

for the benefit of

 

NOMURA
CREDIT & CAPITAL, INC. ,

as mortgagee, and its
successors and assigns (Lender)

 

THE COLLATERAL IS OR INCLUDES FIXTURES

 

This document serves as a fixture filing under
the Uniform Commercial Code

 

	
   

  	
  Borrower’s Organizational Number: 4150438

  
	
   

  	
  Borrower’s Federal Identification No.: 20-4797147

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  As of June 8, 2006

  
	
   

  	
  Location:

  	
  Framingham Stop & Shop

  
	
   

  	
   

  	
  19 Temple Street

  
	
   

  	
   

  	
  Framingham, Massachusetts

  
	
   

  	
   

  	
   

  
	
   

  	
  County:

  	
  Middlesex

  

 

 

MORTGAGE,
ASSIGNMENT OF RENTS,

SECURITY
AGREEMENT AND FIXTURE FILING

 

THIS MORTGAGE, ASSIGNMENT OF RENTS, SECURITY
AGREEMENT AND FIXTURE FILING (this “Mortgage”)
is made as of this 8th day of June, 2006, by INLAND
AMERICAN FRAMINGHAM, L.L.C., a Delaware limited liability company,
having its principal place of business at 2901 Butterfield Road, Oak Brook,
Illinois 60523, as mortgagor (“Borrower”),
for the benefit of NOMURA CREDIT &
CAPITAL, INC., a Delaware corporation, its successors and assigns,
having an address at 2 World Financial Center, Bldg. B., New York, New York
10281, as mortgagee (“Lender”).

 

W I  T  N  E  S
S  E  T  H:

 

WHEREAS, this Mortgage is given to secure a loan
(the “Loan”) in the principal sum
of NINE MILLION TWO HUNDRED SIXTY-EIGHT
THOUSAND FIVE HUNDRED FOURTEEN AND 00/100 DOLLARS ($9,268,514.00)
advanced pursuant to that certain Loan Agreement dated as of the date hereof
between Borrower and Lender (as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time, the “Loan Agreement”, and evidenced by that
certain Promissory Note dated the date hereof made by Borrower to Lender (such
Note, together with all extensions, renewals, replacements, restatements or
modifications thereof being hereinafter referred to as the “Note”), which Note provides, among
other things, for final payment of principal and interest thereunder, if not
sooner paid or payable as provided therein, to be due on June 11, 2031;

 

WHEREAS, Borrower desires to secure the payment of
the Debt (as defined in the Loan Agreement) and the performance of all of its
obligations under the Note, the Loan Agreement and the other Loan Documents;
and

 

WHEREAS, this Mortgage is that certain “Deed of
Trust” or “Mortgage” as defined in the Loan Agreement, and payment,
fulfillment, and performance by Borrower of its obligations thereunder and
under the other Loan Documents are, subject to the limitations set forth
herein, secured hereby, and each and every term and provision of the Loan
Agreement and the Note, including the rights, remedies, obligations, covenants,
conditions, agreements, indemnities, representations and warranties of the
parties therein, are hereby incorporated by reference herein as though set
forth in full and shall be considered a part of this Mortgage (the Loan
Agreement, the Note, this Mortgage, that certain Assignment of Leases and Rents
of even date herewith made by Borrower in favor of Lender (the “Assignment of Leases”) and all other
documents evidencing or securing the Debt are hereinafter referred to
collectively as the “Loan Documents”).

 

NOW THEREFORE, in consideration of the making of the
Loan by Lender and the covenants, agreements, representations and warranties
set forth in this Mortgage:

 

 

ARTICLE 1

GRANTS OF SECURITY

 

Section 1.1.                                   Property Mortgaged. Borrower does hereby irrevocably
mortgage, grant, bargain, pledge, assign, warrant, transfer and convey to
Lender and its successors and assigns, WITH POWER OF SALE and grant a security
interest to Lender its successor and assigns, in the following property,
rights, interests and estates now owned, or hereafter acquired by Borrower
(collectively, the “Property”):

 

(a)                                  Land. The real property described in Exhibit A attached hereto and made
a part hereof (the “Land”);

 

(b)                                 Additional Land. All additional lands, estates and
development rights hereafter acquired by Borrower for use in connection with
the Land and the development of the Land and all additional lands and estates
therein which may, from time to time, by supplemental mortgage or otherwise be
expressly made subject to the lien of this Mortgage;

 

(c)                                  Improvements. The buildings, structures, fixtures,
additions, enlargements, extensions, modifications, repairs, replacements and
improvements now or hereafter erected or located on the Land (collectively, the
“Improvements”);

 

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

 

(e)                                  Equipment. All “equipment,” as such term is defined in Article 9
of the Uniform Commercial Code, now owned or hereafter acquired by
Borrower, which is used at or in connection with the Improvements or the Land
or is located thereon or therein (including, but not limited to, all machinery,
equipment, furnishings, and electronic data-processing and other office
equipment now owned or hereafter acquired by Borrower and any and all
additions, substitutions and replacements of any of the foregoing), together
with all attachments, components, parts, equipment and accessories installed
thereon or affixed thereto (collectively, the “Equipment”). Notwithstanding the foregoing, Equipment
shall not include any property belonging to tenants under leases except to the
extent that Borrower shall have any right or interest therein;

 

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(f)                                    Fixtures. All Equipment now owned, or the ownership of which
is hereafter acquired, by Borrower which is so related to the Land and
Improvements forming part of the Property that it is deemed fixtures or
real property under the law of the particular state in which the Equipment is
located, including, without limitation, all building or construction materials
intended for construction, reconstruction, alteration or repair of or
installation on the Property, construction equipment, appliances, machinery,
plant equipment, fittings, apparatuses, fixtures and other items now or
hereafter attached to, installed in or used in connection with (temporarily or
permanently) any of the Improvements or the Land, including, but not limited
to, engines, devices for the operation of pumps, pipes, plumbing, cleaning,
call and sprinkler systems, fire extinguishing apparatuses and equipment, heating,
ventilating, plumbing, laundry, incinerating, electrical, air conditioning and
air cooling equipment and systems, gas and electric machinery, appurtenances
and equipment, pollution control equipment, security systems, disposals,
dishwashers, refrigerators and ranges, recreational equipment and facilities of
all kinds, and water, gas, electrical, storm and sanitary sewer facilities,
utility lines and equipment (whether owned individually or jointly with others,
and, if owned jointly, to the extent of Borrower’s interest therein) and all
other utilities whether or not situated in easements, all water tanks, water
supply, water power sites, fuel stations, fuel tanks, fuel supply, and all
other structures, together with all accessions, appurtenances, additions,
replacements, betterments and substitutions for any of the foregoing and the
proceeds thereof (collectively, the “Fixtures”).
Notwithstanding the foregoing, “Fixtures” shall not include any property which
tenants are entitled to remove pursuant to leases except to the extent that
Borrower shall have any right or interest therein;

 

(g)                                 Personal Property. All furniture, furnishings, objects of
art, machinery, goods, tools, supplies, appliances, general intangibles,
contract rights, accounts, accounts receivable, franchises, licenses,
certificates and permits, and all other personal property of any kind or
character whatsoever (as defined in and subject to the provisions of the Uniform Commercial
Code as hereinafter defined), other than Fixtures, which are now or hereafter
owned by Borrower and which are located within or about the Land and the
Improvements, together with all accessories, replacements and substitutions
thereto or therefor and the proceeds thereof (collectively, the “Personal Property”), and the right,
title and interest of Borrower in and to any of the Personal Property which may be
subject to any security interests, as defined in the Uniform Commercial
Code, as adopted and enacted by the state or states where any of the Property
is located (the “Uniform Commercial
Code”), superior in lien to the lien of this Mortgage and all
proceeds and products of the above;

 

(h)                                 Leases and Rents. All leases, subleases or sub-subleases,
lettings, licenses, concessions or other agreements (whether written or oral)
pursuant to which any Person is granted a possessory interest in, or right to
use or occupy all or any portion of the Land and the Improvements, and every
modification, amendment or other agreement relating to such leases, subleases,
sub-subleases, or other agreements entered into in connection with such leases,
subleases, sub-subleases, or other agreements and every guarantee, of the
performance and observance of the covenants, conditions and agreements to be
performed and observed by the other party thereto, heretofore or hereafter
entered into, whether before or after the filing by or

 

3

 

against Borrower of any
petition for relief under 11 U.S.C. §101 et seq., as the same may be
amended from time to time (the “Bankruptcy
Code”) (collectively, the “Leases”)
and all right, title and interest of Borrower, its successors and assigns
therein and thereunder, including, without limitation, cash or securities
deposited thereunder to secure the performance by the lessees of their
obligations thereunder and all rents, additional rents, revenues, issues and
profits (including all oil and gas or other mineral royalties and bonuses) from
the Land and the Improvements whether paid or accruing before or after the filing
by or against Borrower of any petition for relief under the Bankruptcy Code
(collectively, the “Rents”)
and all proceeds from the sale or other disposition of the Leases and the right
to receive and apply the Rents to the payment of the Debt;

 

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

 

(j)                                     Insurance Proceeds. All proceeds in respect of the Property
under any insurance policies covering the Property, including, without
limitation, the right to receive and apply the proceeds of any insurance,
judgments, or settlements made in lieu thereof, for damage to the Property
subject to the terms, provisions and conditions of the Loan Agreement;

 

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

 

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

 

(m)                               Rights. Subject to the terms, provisions and conditions of
the Loan Agreement, the right, in the name and on behalf of Borrower, to appear
in and defend any action or proceeding brought with respect to the Property and
to commence any action or proceeding to protect the interest of Lender in the
Property;

 

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

 

4

 

(o)                                 Trademarks. All tradenames, trademarks, servicemarks, logos,
copyrights, goodwill, books and records and all other general intangibles
relating to or used in connection with the operation of the Property
(excluding, however, the name “Inland” and any mark registered to The Inland
Group, Inc., or any of its affiliates), in each case, to the extent
assignable;

 

(p)                                 Accounts. All reserves, escrows, and deposit accounts
maintained by Borrower with respect to the Property, including without
limitation, all securities, investments, property and financial assets held
therein from time to time and all proceeds, products, distributions or
dividends or substitutions thereon and thereof;

 

(q)                                 Letter of Credit. All letter-of-credit rights (whether or
not the letter of credit is evidenced by a writing) Borrower now has or
hereafter acquires relating to the properties, rights, titles and interests
referred to in this Section 1.1;

 

(r)                                    Tort Claims. All commercial tort claims Borrower now
has or hereafter acquires relating to the properties, rights, titles and
interests referred to in this Section 1.1; and

 

(s)                                  Other Rights. Any and all other rights of Borrower in
and to the items set forth in Subsections (a) through (r) above.

 

AND without limiting any of the other provisions of
this Mortgage, to the extent permitted by applicable law, Borrower expressly
grants to Lender, as secured party, a security interest in the portion of the
Property which is or may be subject to the provisions of the Uniform Commercial
Code which are applicable to secured transactions; it being understood and
agreed that the Improvements and Fixtures are part and parcel of the Land
(the Land, the Improvements and the Fixtures collectively referred to as the “Real Property”) appropriated to the use
thereof and, whether affixed or annexed to the Real Property or not, shall for
the purposes of this Mortgage be deemed conclusively to be real estate and
mortgaged hereby.

 

Section 1.2.                                   Assignment of Rents. Borrower hereby absolutely and
unconditionally assigns to Lender all of Borrower’s right, title and interest
in and to all current and future Leases and Rents; it being intended by
Borrower that this assignment constitutes a present, absolute assignment and
not an assignment for additional security only. Nevertheless, subject to the
terms of the Assignment of Leases and Section 7.1(h) of this
Mortgage, Lender grants to Borrower a revocable license to collect, receive,
use and enjoy the Rents. Borrower shall hold the Rents, or a portion thereof
sufficient to discharge all current sums due on the Debt, for use in the
payment of such sums.

 

Section 1.3.                                   Security Agreement. This Mortgage is both a real property
deed of trust and a “security agreement” within the meaning of the Uniform Commercial
Code. The Property includes both real and personal property and all other
rights and interests, whether tangible or intangible in nature, of Borrower in
the Property. By executing and delivering this Mortgage, Borrower hereby grants
to Lender, as security for the Obligations (hereinafter defined), a security
interest in the Fixtures, the Equipment and the Personal Property and other

 

5

 

property constituting the
Property, whether now owned or hereafter acquired, to the full extent that the
Fixtures, the Equipment and the Personal Property may be subject to the
Uniform Commercial Code (said portion of the Property so subject to the
Uniform Commercial Code being called the “Collateral”). THE COLLATERAL IS OR INCLUDES FIXTURES. If
an Event of Default shall occur and be continuing, Lender, in addition to any
other rights and remedies which it may have, shall have and may exercise
immediately and without demand, any and all rights and remedies granted to a
secured party upon default under the Uniform Commercial Code, including,
without limiting the generality of the foregoing, the right to take possession
of the Collateral or any part thereof, and to take such other measures as
Lender may deem necessary for the care, protection and preservation of the
Collateral. Upon request or demand of Lender after the occurrence and during
the continuance of an Event of Default, Borrower shall, at its expense,
assemble the Collateral and make it available to Lender at a convenient place
(at the Land if tangible property) reasonably acceptable to Lender. Borrower
shall pay to Lender on demand any and all expenses, including reasonable legal
expenses and attorneys’ fees, incurred or paid by Lender in protecting its
interest in the Collateral and in enforcing its rights hereunder with respect
to the Collateral after the occurrence and during the continuance of an Event
of Default. Any notice of sale, disposition or other intended action by Lender
with respect to the Collateral sent to Borrower in accordance with the
provisions hereof at least ten (10) business days prior to such action,
shall, except as otherwise provided by applicable law, constitute commercially
reasonable notice to Borrower. The proceeds of any disposition of the
Collateral, or any part thereof, may, except as otherwise required by
applicable law, be applied by Lender to the payment of the Debt in such
priority and proportions as Lender in its discretion shall deem proper.
Borrower’s (Debtor’s) principal place of business is as set forth on page one
hereof and the address of Lender (Secured Party) is as set forth on page one
hereof.

 

Section 1.4.                                   Fixture Filing. Certain of the Property is or will
become “fixtures” (as that term is defined in the Uniform Commercial Code)
on the Land, described or referred to in this Mortgage, and this Mortgage, upon
being filed for record in the real estate records of the city or county wherein
such fixtures are situated, shall operate also as a financing statement filed
as a fixture filing in accordance with the applicable provisions of said Uniform Commercial
Code upon such of the Property that is or may become fixtures.

 

The Borrower hereby authorizes the Lender at any
time and from time to time to file any initial financing statements, amendments
thereto and continuation statements with or without the signature of the
Borrower as authorized by applicable law, as applicable to all or part of
the fixtures or Personal Property. For purposes of such filings, the Borrower
agrees to furnish any information requested by the Lender promptly upon request
by the Lender. The Borrower also ratifies its authorization for the Lender to
have filed any like initial financing statements, amendments thereto and
continuation statements, if filed prior to the date of this Mortgage. The
Borrower hereby irrevocably constitutes and appoints the Lender and any officer
or agent of the Lender, with full power of substitution, as its true and lawful
attorneys- in-fact with full irrevocable power and authority in the place and
stead of the Borrower or in the Borrower’s own name to execute in the Borrower’s
name any documents and otherwise to carry out the purposes

 

6

 

of
this Section 1.4, to the extent that the Borrower’s authorization above is
not sufficient. To the extent permitted by law, the Borrower hereby ratifies
all acts said attorneys-in-fact have lawfully done in the past or shall
lawfully do or cause to be done in the future by virtue hereof. This power of
attorney is coupled with an interest and shall be irrevocable.

 

Section 1.5.                                   Pledges of Monies Held. Borrower hereby pledges to Lender any
and all monies now or hereafter held by Lender or on behalf of Lender,
including, without limitation, any sums deposited in the Lockbox Account (if
any), the Reserve Funds and Net Proceeds, as additional security for the
Obligations until expended or applied as provided in this Mortgage or in the
Loan Agreement.

 

CONDITIONS TO GRANT

 

TO HAVE AND TO HOLD the above granted and described
Property unto Lender, and its successors and assigns, forever;

 

IN TRUST, WITH THE POWER OF SALE, to secure payment
to Lender of the Debt at the time and in the manner provided for in the Note,
the Loan Agreement, and this Mortgage;

 

PROVIDED, HOWEVER, these presents are upon the
express condition that, if Borrower shall well and truly pay to Lender the Debt
at the time and in the manner provided in the Note, the Loan Agreement and this
Mortgage, shall well and truly perform the Other Obligations as set forth
in this Mortgage and shall well and truly abide by and comply with each and
every covenant and condition set forth herein and in the Note, the Loan
Agreement and the other Loan Documents, these presents and the estate hereby granted
shall cease, terminate and be void and Lender shall promptly thereafter mark
the Note “paid in full” and will, at Borrower’s sole cost and expense, release
the lien of this Mortgage (and Lender agrees to make reasonable efforts to do
so within thirty days following the satisfaction of the conditions herein set
forth and Borrower’s written request thereafter to provide such release);
provided, however, that Borrower’s obligation to indemnify and hold harmless
Lender pursuant to the provisions hereof shall survive any such payment or
release.

 

ARTICLE 2

DEBT AND OBLIGATIONS SECURED

 

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

 

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

 

7

 

(b)                                 the payment of interest, prepayment
premiums, default interest, late charges and other sums, as provided in the
Note, the Loan Agreement, this Mortgage and the other Loan Documents;

 

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

 

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

 

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

 

Section 2.2.                                   Other Obligations. This Mortgage and the grants,
assignments and transfers made in Article 1 are also given for the purpose
of securing the following (the “Other
Obligations”):

 

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

 

(b)                                 the performance of each obligation of
Borrower contained in the Loan Agreement and any other Loan Document; and

 

(c)                                  the performance of each obligation of
Borrower contained in any renewal, extension, amendment, modification,
consolidation, change of, or substitution or replacement for, all or any part of
the Note, the Loan Agreement or any other Loan Document.

 

Section 2.3.                                   Debt and Other Obligations. Borrower’s obligations for the payment
of the Debt and the performance of the Other Obligations shall be referred to
collectively herein as the “Obligations.”

 

ARTICLE 3

BORROWER COVENANTS

 

Borrower covenants and agrees that:

 

Section 3.1.                                   Payment of Debt. Borrower will pay the Debt at the time
and in the manner provided in the Loan Agreement, the Note and this Mortgage.

 

Section 3.2.                                   Incorporation by Reference. All the covenants, conditions and
agreements contained in (a) the Loan Agreement , (b) the Note and (c) all
and any of the other Loan Documents, are hereby made a part of this
Mortgage to the same extent and with the same force as if fully set forth
herein.

 

8

 

Section 3.3.                                   Insurance. Borrower shall obtain and maintain, or cause to be
maintained, in full force and effect at all times insurance with respect to
Borrower and the Property as required pursuant to the Loan Agreement.

 

Section 3.4.                                   Maintenance of Property. Borrower shall cause the Property to be
maintained in a good and safe condition and repair. The Improvements, the
Fixtures, the Equipment and the Personal Property shall not be removed,
demolished or materially altered except as provided for in the Loan Agreement
(except for normal replacement of the Fixtures, the Equipment or the Personal
Property, tenant finish and refurbishment of the Improvements) without the
consent of Lender as provided for in the Loan Agreement. Borrower shall
promptly repair, replace or rebuild any part of the Property which may be
destroyed by any casualty, or become damaged, worn or dilapidated and shall
complete and pay for any structure at any time in the process of construction
or repair on the Land except as set forth in the Loan Agreement.

 

Section 3.5.                                   Waste. Borrower shall not commit or suffer any waste of the
Property or make any change in the use of the Property which will in any way
materially increase the risk of fire or other hazard arising out of the
operation of the Property, or take any action that might invalidate or allow
the cancellation of any Policy, or do or permit to be done thereon anything
that may in any way materially impair the value of the Property or the
security of this Mortgage. Borrower will not, without the prior written consent
of Lender, permit any drilling or exploration for or extraction, removal, or
production of any minerals from the surface or the subsurface of the Land,
regardless of the depth thereof or the method of mining or extraction thereof.

 

Section 3.6.                                   Payment for Labor and Materials.

 

(a)                                  Subject to the terms, provisions and
conditions of the Loan Agreement, Borrower will promptly pay or cause to be
paid when due all bills and costs for labor, materials, and specifically
fabricated materials (“Labor and Material
Costs”) incurred in connection with the Property and never permit
to exist beyond the due date thereof in respect of the Property or any part thereof
any lien or security interest, even though inferior to the liens and the
security interests hereof, and in any event never permit to be created or exist
in respect of the Property or any part thereof any other or additional
lien or security interest other than the liens or security interests hereof
except for the Permitted Encumbrances.

 

(b)                                 Subject to the terms, provisions and
conditions of the Loan Agreement, after prior written notice to Lender,
Borrower, or any tenant of the Property pursuant to the terms of such tenant’s
lease, at its own expense, may contest by appropriate legal proceeding,
promptly initiated and conducted in good faith and with due diligence, the amount
or validity or application in whole or in part of any of the Labor and
Material Costs, provided that (i) no Event of Default has occurred and is
continuing under the Loan Agreement, the Note, this Mortgage or any of the
other Loan Documents, (ii) Borrower is permitted to do so under the
provisions of any other mortgage, deed of trust or deed to secure debt
affecting the Property, (iii) such proceeding shall suspend the collection
of the Labor and Material Costs from Borrower and from the Property or Borrower
shall have paid all of the Labor and Material Costs under protest, (iv) such

 

9

 

proceeding shall be
permitted under and be conducted in accordance with the provisions of any other
instrument to which Borrower is subject and shall not constitute a default
thereunder, (v) neither the Property nor any part thereof or interest
therein will be in danger of being sold, forfeited, terminated, canceled or
lost, and (vi) Borrower shall have furnished the security as may be
required in the proceeding, or as may be reasonably requested by Lender to
insure the payment of any contested Labor and Material Costs, together with all
interest and penalties thereon.

 

Section 3.7.                                   Performance of Other Agreements. Borrower shall observe and perform each
and every term, covenant and provision to be observed or performed by Borrower
pursuant to the Loan Agreement, any other Loan Document and any other agreement
or recorded instrument affecting or pertaining to the Property and any
amendments, modifications or changes thereto.

 

Section 3.8.                                   Change of Name, Identity or Structure. Except as set forth in the Loan
Agreement, Borrower shall not change Borrower’s name, identity (including its
trade name or names) or, if not an individual, Borrower’s corporate,
partnership or other structure without notifying Lender of such change in
writing at least thirty (30) days prior to the effective date of such change
and, in the case of a change in Borrower’s structure, without first obtaining
the prior written consent of Lender which consent will not be unreasonably
withheld, delayed or conditioned provided that such action is otherwise in
compliance with the Loan Agreement. Borrower shall execute and deliver to
Lender, prior to or contemporaneously with the effective date of any such
change, any financing statement or financing statement change reasonably
required by Lender to establish or maintain the validity, perfection and
priority of the security interest granted herein. At the request of Lender,
Borrower shall execute a certificate in form reasonably satisfactory to
Lender listing the trade names under which Borrower intends to operate the
Property, and representing and warranting that Borrower does business under no
other trade name with respect to the Property.

 

Section 3.9.                                   Title. Borrower has good and indefeasible fee simple title
to the real property comprising part of the Property and good title to the
balance of such Property, free and clear of all Liens (as defined in the Loan
Agreement) whatsoever except the Permitted Encumbrances (as defined in the Loan
Agreement), such other Liens as are permitted pursuant to the Loan Documents
and the Liens created by the Loan Documents. To Borrower’s actual knowledge,
the Permitted Encumbrances in the aggregate do not materially adversely affect
the value, operation or use of the Property of Borrower’s ability to repay the
Loan. This Mortgage, when properly recorded in the appropriate records,
together with any Uniform Commercial Code financing statements required to
be filed in connection therewith, will create (a) a valid, perfected first
priority lien, security title and security interest on the Property, to the
extent such security interests can be perfected by filing; subject only to any
applicable Permitted Encumbrances, such other Liens as are permitted pursuant
to the Loan Documents and the Liens created by the Loan Documents. There are no
claims for payment for work, labor or materials affecting the Property which
are past due and are or may become a lien prior to, or of equal

 

10

 

priority with, the Liens
created by the Loan Documents unless such claims for payments are being
contested in accordance with the terms and conditions of this Mortgage.

 

Section 3.10.                             Letter of Credit Rights. If Borrower is at any time a
beneficiary under a letter of credit relating to the properties, rights, titles
and interests referenced in Section 1.1 of this Mortgage now or hereafter
issued in favor of Borrower, Borrower shall promptly notify Lender thereof and,
at the request and option of Lender, Borrower shall, pursuant to an agreement
in form and substance satisfactory to Lender, either (i) arrange for
the issuer and any confirmer of such letter of credit to consent to an
assignment to Lender of the proceeds of any drawing under the letter of credit
or (ii) arrange for the Lender to become the transferee beneficiary of the
letter of credit, with Lender agreeing, in each case that the proceeds of any
drawing under the letter of credit are to be applied as provided in Section 7.2
of this Mortgage.

 

ARTICLE 4

OBLIGATIONS AND RELIANCES

 

Section 4.1.                                   Relationship of Borrower and Lender. The relationship between Borrower and
Lender is solely that of debtor and creditor, and Lender has no fiduciary or
other special relationship with Borrower, and no term or condition of any of
the Loan Agreement, the Note, this Mortgage and the other Loan Documents shall
be construed so as to deem the relationship between Borrower and Lender to be
other than that of debtor and creditor.

 

Section 4.2.                                   No Reliance on Lender. The general partners, members,
principals and (if Borrower is a trust) beneficial owners of Borrower are
experienced in the ownership and operation of properties similar to the
Property, and Borrower and Lender are relying solely upon such expertise and
business plan in connection with the ownership and operation of the Property.
Borrower is not relying on Lender’s expertise, business acumen or advice in
connection with the Property.

 

Section 4.3.                                   No Lender Obligations.

 

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

 

(b)                                 By accepting or approving anything
required to be observed, performed or fulfilled or to be given to Lender
pursuant to this Mortgage, the Loan Agreement, the Note or the other Loan
Documents, including, without limitation, any officer’s certificate, balance
sheet, statement of profit and loss or other financial statement, survey,
appraisal, or insurance policy, Lender shall not be deemed to have warranted,
consented to, or affirmed the sufficiency, the legality or effectiveness of
same, and such acceptance or approval thereof shall not constitute any warranty
or affirmation with respect thereto by Lender.

 

11

 

Section 4.4.                                   Reliance. Borrower recognizes and acknowledges that in
accepting the Loan Agreement, the Note, this Mortgage and the other Loan
Documents, Lender is expressly and primarily relying on the truth and accuracy
of the warranties and representations set forth in Section 4.1 of the Loan
Agreement without any obligation to investigate the Property and
notwithstanding any investigation of the Property by Lender; that such reliance
existed on the part of Lender prior to the date hereof, that the
warranties and representations are a material inducement to Lender in making
the Loan; and that Lender would not be willing to make the Loan and accept this
Mortgage in the absence of the warranties and representations as set forth in Section 4.1
of the Loan Agreement.

 

ARTICLE 5

FURTHER ASSURANCES

 

Section 5.1.                                   Recording of Mortgage, Etc. Borrower forthwith upon the execution
and delivery of this Mortgage and thereafter, from time to time, will cause
this Mortgage and any of the other Loan Documents creating a lien or security
interest or evidencing the lien hereof upon the Property and each instrument of
further assurance to be filed, registered or recorded in such manner and in
such places as may be required by any present or future law in order to
publish notice of and fully to protect and perfect the lien or security
interest hereof upon, and the interest of Lender in, the Property. Borrower
will pay all taxes, filing, registration or recording fees, and all expenses
incident to the preparation, execution, acknowledgment and/or recording of the
Note, this Mortgage, the other Loan Documents, any note, deed of trust or
mortgage supplemental hereto, any security instrument with respect to the
Property and any instrument of further assurance, and any modification or
amendment of the foregoing documents, and all federal, state, county and
municipal taxes, duties, imposts, assessments and charges arising out of or in
connection with the execution and delivery of this Mortgage, any deed of trust
or mortgage supplemental hereto, any security instrument with respect to the
Property or any instrument of further assurance, and any modification or
amendment of the foregoing documents, except where prohibited by law so to do.

 

Section 5.2.                                   Further Acts, Etc. Borrower will, at the cost of Borrower,
and without expense to Lender, do, execute, acknowledge and deliver all and
every such further acts, deeds, conveyances, deeds of trust, mortgages,
assignments, notices of assignments, transfers and assurances as Lender shall,
from time to time, reasonably require, for the better assuring, conveying,
assigning, transferring, and confirming unto Lender the property and rights
hereby mortgaged, deeded, granted, bargained, sold, conveyed, confirmed,
pledged, assigned, warranted and transferred or intended now or hereafter so to
be, or which Borrower may be or may hereafter become bound to convey
or assign to Lender, or for carrying out the intention or facilitating the
performance of the terms of this Mortgage or for filing, registering or
recording this Mortgage, or for complying with all Legal Requirements.
Borrower, on demand, will execute and deliver, and in the event it shall fail
to so execute and deliver, hereby authorizes Lender to execute in the name of
Borrower or without the signature of Borrower to the extent Lender may lawfully
do so, one or more financing statements to evidence more effectively the

 

12

 

security interest of
Lender in the Property. Borrower grants to Lender an irrevocable power of
attorney coupled with an interest for the purpose of exercising and perfecting
any and all rights and remedies available to Lender at law and in equity
following an Event of Default, including without limitation such rights and
remedies available to Lender pursuant to this Section 5.2. Nothing
contained in this Section 5.2 shall be deemed to create an obligation on
the part of Borrower to pay any costs and expenses incurred by Lender in
connection with the Securitization or other sale or transfer of the Loan.

 

Section 5.3.                                   Changes in Tax, Debt, Credit and
Documentary Stamp Laws.

 

(a)                                  If any law is enacted or adopted or
amended after the date of this Mortgage which deducts the Debt from the value
of the Property for the purpose of taxation or which imposes a tax, either
directly or indirectly, on the Debt or Lender’s interest in the Property,
Borrower will pay the tax, with interest and penalties thereon, if any. If
Lender is advised by counsel chosen by it that the payment of tax by Borrower
would be unlawful or taxable to Lender or unenforceable or provide the basis
for a defense of usury then Lender shall have the option by written notice of
not less than one hundred eighty (180) days to declare the Debt immediately due
and payable.

 

(b)                                 Borrower will not claim or demand or be
entitled to any credit or credits on account of the Debt for any part of
the Taxes or Other Charges assessed against the Property, or any part thereof,
and no deduction shall otherwise be made or claimed from the assessed value of
the Property, or any part thereof, for real estate tax purposes by reason
of this Mortgage or the Debt. If such claim, credit or deduction shall be
required by law, Lender shall have the option, by written notice of not less
than one hundred eighty (180) days, to declare the Debt immediately due and
payable.

 

(c)                                  If at any time the United States of
America, any State thereof or any subdivision of any such State shall require
revenue or other stamps to be affixed to the Note, this Mortgage, or any of the
other Loan Documents or impose any other tax or charge on the same, Borrower
will pay for the same, with interest and penalties thereon, if any.

 

Section 5.4.                                   Splitting of Mortgage. The provisions of Section 9.7 of
the Loan Agreement are hereby incorporated by reference herein.

 

Section 5.5.                                   Replacement Documents. Upon receipt of an affidavit of an
officer of Lender as to the loss, theft, destruction or mutilation of the Note
or any other Loan Document which is not of public record, and, in the case of
any such mutilation, upon surrender and cancellation of such Note or other Loan
Document, Borrower will issue, in lieu thereof, a replacement Note or other
Loan Document, dated the date of such lost, stolen, destroyed or mutilated Note
or other Loan Document in the same principal amount thereof and otherwise of
like tenor.

 

13

 

ARTICLE 6

DUE ON SALE/ENCUMBRANCE

 

Section 6.1.                                   Lender Reliance. Borrower acknowledges that Lender has
examined and relied on the experience of Borrower and its general partners,
members, principals and (if Borrower is a trust) beneficial owners in owning
and operating properties such as the Property in agreeing to make the Loan, and
will continue to rely on Borrower’s ownership of the Property as a means of
maintaining the value of the Property as security for repayment of the Debt and
the performance of the Other Obligations. Borrower acknowledges that Lender has
a valid interest in maintaining the value of the Property so as to ensure that,
should Borrower default in the repayment of the Debt or the performance of the
Other Obligations, Lender can recover the Debt by a sale of the Property
conducted in accordance with the terms of the Loan Documents and applicable
law.

 

Section 6.2.                                   No Sale/Encumbrance. Except as set forth in Section 5.2.13
of the Loan Agreement, Borrower agrees that Borrower shall not, without the
prior written consent of Lender, sell, convey, mortgage, grant, bargain,
encumber, pledge, assign, or otherwise transfer the Property or any part thereof,
including, but not limited to, a grant of an easement, restriction, covenant,
reservation or right of way (except as expressly permitted in Section 5.2.13
of the Loan Agreement), or permit the Property or any part thereof to be
sold, conveyed, mortgaged, granted, bargained, encumbered, pledged, assigned,
or otherwise transferred, unless Lender shall consent thereto in accordance
with Section 6.4 hereof.

 

Section 6.3.                                   Sale/Encumbrance Defined. Except as permitted pursuant to the
terms of Section 5.2.13 of the Loan Agreement, a sale, conveyance,
mortgage, grant, bargain, encumbrance, pledge, assignment, or transfer within
the meaning of this Article 6 shall be deemed to include, but not be limited
to, (a) an installment sales agreement wherein Borrower agrees to sell the
Property or any part thereof for a price to be paid in installments; (b) an
agreement by Borrower leasing all or a substantial part of the Property
for other than actual occupancy by a space tenant thereunder or a sale,
assignment or other transfer of, or the grant of a security interest in,
Borrower’s right, title and interest in and to any Leases or any Rents; (c) the
voluntary or involuntary sale, conveyance, transfer or pledge of the stock of
the sole member of
Borrower (or the stock of any corporation directly or indirectly controlling
such sole member by operation of law or otherwise) or the creation or issuance
of new stock by which an aggregate of more than ten percent (10%) of such sole
member’s stock shall be vested in a party or parties who are not now
stockholders; (d) the voluntary or involuntary sale, conveyance, transfer
or pledge of any membership interest in Borrower; (e) if Borrower, any
sole member of Borrower, any guarantor or any indemnitor is a limited liability
company, the change, removal or resignation of a member or managing member or
the transfer or pledge of the interest of any member or managing member or any
profits or proceeds relating to such interest; or (f) any other transfer
prohibited by the terms of the Loan Agreement.

 

14

 

Section 6.4.                                   Lender’s Rights. Except as set forth in the Loan
Agreement, Lender reserves the right to condition the consent required
hereunder upon (a) a modification of the terms hereof and of the Loan
Agreement, the Note or the other Loan Documents; (b) an assumption of the
Loan Agreement, the Note, this Mortgage and the other Loan Documents as so
modified by the proposed transferee, subject to the provisions of Section 9.4
of the Loan Agreement; (c) payment of all of Lender’s reasonable expenses
incurred in connection with such transfer including, without limitation, the
cost of any third party reports, legal fees, rating agency or required legal
opinions; (d) the payment of an assumption fee equal to one percent (1%)
of the outstanding principal balance of the Loan; (e) the confirmation in
writing by the applicable Rating Agencies that the proposed transfer will not,
in and of itself, result in a downgrade, qualification or withdrawal of the
initial, or, if higher, then current ratings assigned in connection with any
Securitization; (f) intentionally deleted; (g) the proposed
transferee’s continued compliance with the representations and covenants set
forth in Section 4.1.30 and 5.2.12 of the Loan Agreement; (h) the
delivery of evidence satisfactory to Lender that the single purpose nature and
bankruptcy remoteness of Borrower following such transfers are in accordance
with the then current standards of Lender and the Rating Agencies, or (i) such
other conditions as Lender shall determine in its reasonable discretion to be
in the interest of Lender, including, without limitation, the creditworthiness,
reputation and qualifications of the transferee with respect to the Loan and
the Property. Lender shall not be required to demonstrate any actual impairment
of its security or any increased risk of default hereunder in order to declare
the Debt immediately due and payable upon Borrower’s sale, conveyance,
mortgage, grant, bargain, encumbrance, pledge, assignment, or transfer of the
Property without Lender’s consent (to the extent such consent is required
hereunder or under the Loan Agreement). This provision shall apply to every
sale, conveyance, mortgage, grant, bargain, encumbrance, pledge, assignment, or
transfer of the Property regardless of whether voluntary or not, or whether or
not Lender has consented to any previous sale, conveyance, mortgage, grant,
bargain, encumbrance, pledge, assignment, or transfer of the Property.

 

ARTICLE 7

RIGHTS AND REMEDIES UPON DEFAULT

 

Section 7.1.                                   Remedies. Upon the occurrence and during the continuance of
any Event of Default, Borrower agrees that Lender may take such action,
without notice or demand, as it deems advisable to protect and enforce its
rights against Borrower and in and to the Property, including, but not limited
to, the following actions, each of which may be pursued concurrently or
otherwise, at such time and in such order as Lender may determine, in its
sole discretion, without impairing or otherwise affecting the other rights and
remedies of Lender:

 

(a)                                  declare the entire unpaid Debt to be
immediately due and payable;

 

(b)                                 institute proceedings, judicial or
otherwise, for the complete foreclosure of this Mortgage under any applicable
provision of law, in which case the Property or any interest

 

15

 

therein may be sold
for cash or upon credit in one or more parcels or in several interests or
portions and in any order or manner;

 

(c)                                  with or without entry, to the extent
permitted and pursuant to the procedures provided by applicable law, institute
proceedings for the partial foreclosure of this Mortgage for the portion of the
Debt then due and payable, subject to the continuing lien and security interest
of this Mortgage for the balance of the Debt not then due, unimpaired and
without loss of priority;

 

(d)                                 sell for cash or upon credit the Property
or any part thereof and all estate, claim, demand, right, title and
interest of Borrower therein and rights of redemption thereof, pursuant to
power of sale or otherwise, at one or more sales, as an entity or in parcels,
at such time and place, upon such terms and after such notice thereof as may be
required or permitted by law;

 

(e)                                  institute an action, suit or proceeding
in equity for the specific performance of any covenant, condition or agreement
contained herein, in the Note, the Loan Agreement or in the other Loan
Documents;

 

(f)                                    recover judgment on the Note either
before, during or after any proceedings for the enforcement of this Mortgage or
the other Loan Documents;

 

(g)                                 apply for the appointment of a receiver,
trustee, liquidator or conservator of the Property, without notice and without
regard for the adequacy of the security for the Debt and without regard for the
solvency of Borrower, any guarantor, indemnitor with respect to the Loan or of
any Person, liable for the payment of the Debt;

 

(h)                                 the license granted to Borrower under Section 1.2
hereof shall automatically be revoked and Lender may, to the extent permitted
pursuant to procedures provided by applicable law, enter into or upon the
Property, either personally or by its agents, nominees or attorneys and
dispossess Borrower and its agents and servants therefrom, without liability
for trespass, damages or otherwise and exclude Borrower and its agents or
servants wholly therefrom, and take possession of all books, records and
accounts relating thereto and Borrower agrees to surrender possession of the
Property and of such books, records and accounts to Lender upon demand, and
thereupon Lender may (i) use, operate, manage, control, insure,
maintain, repair, restore and otherwise deal with all and every part of
the Property and conduct the business thereat; (ii) complete any
construction on the Property in such manner and form as Lender deems
advisable; (iii) make alterations, additions, renewals, replacements and
improvements to or on the Property; (iv) exercise all rights and powers of
Borrower with respect to the Property, whether in the name of Borrower or
otherwise, including, without limitation, the right to make, cancel, enforce or
modify Leases, obtain and evict tenants, and demand, sue for, collect and
receive all Rents of the Property and every part thereof; (v) require
Borrower to pay monthly in advance to Lender, or any receiver appointed to
collect the Rents, the fair and reasonable rental value for the use and
occupation of such part of the Property as may be occupied by Borrower;
(vi) require Borrower to vacate and surrender possession of the Property

 

16

 

to Lender or to such
receiver and, in default thereof, Borrower may be evicted by summary
proceedings or otherwise; and (vii) apply the receipts from the Property
to the payment of the Debt, in such order, priority and proportions as Lender
shall deem appropriate in its sole discretion after deducting therefrom all
expenses (including reasonable attorneys’ fees) incurred in connection with the
aforesaid operations and all amounts necessary to pay the Taxes, Other Charges,
insurance and other expenses in connection with the Property, as well as just
and reasonable compensation for the services of Lender, its counsel, agents and
employees;

 

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

 

(j)                                     apply any sums then deposited or held in
escrow or otherwise by or on behalf of Lender in accordance with the terms of
the Loan Agreement, this Mortgage or any other Loan Document to the payment of
the following items in any order in its uncontrolled discretion:

 

(i)                                     Taxes and Other Charges;

 

(ii)                                  Insurance Premiums;

 

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

 

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

 

(v)                                 All other sums payable pursuant to the
Note, the Loan Agreement, this Mortgage and the other Loan Documents, including
without limitation advances made by Lender pursuant to the terms of this
Mortgage;

 

(k)                                  pursue such other remedies as Lender may have
under applicable law;

 

(l)                                     apply the undisbursed balance of any Net
Proceeds Deficiency deposit, together with interest thereon, to the payment of
the Debt in such order, priority and proportions as Lender shall deem to be
appropriate in its discretion; or

 

(m)                               under the power of sale granted hereunder
or under applicable law, Lender shall have the discretionary right to cause
some or all of the Property, including any Personal

 

17

 

Property, to be sold or
otherwise disposed of in any combination and in any manner permitted by
applicable law.

 

In the event of a sale, by foreclosure, power of
sale or otherwise, of less than all of Property, this Mortgage shall continue
as a lien and security interest on the remaining portion of the Property
unimpaired and without loss of priority.

 

Section 7.2.                                   Application of Proceeds. The purchase money, proceeds and avails
of any disposition of the Property, and or any part thereof, or any other
sums collected by Lender pursuant to the Note, this Mortgage or the other Loan
Documents, may be applied by Lender to the payment of the Debt in such
priority and proportions as Lender in its discretion shall deem proper.

 

Section 7.3.                                   Right to Cure Defaults. Upon the occurrence and during the
continuance of any Event of Default or if Borrower fails to make any payment or
to do any act as herein provided, Lender may, but without any obligation to do
so and without notice to or demand on Borrower and without releasing Borrower
from any obligation hereunder, make or do the same in such manner and to such
extent as Lender may deem necessary to protect the security hereof. Lender
is authorized to enter upon action or proceeding to the Property for such
purposes, or appear in, defend, or bring any action or proceeding to protect
its interest in the Property or to foreclose this Mortgage or collect the Debt,
and the cost and expense thereof (including reasonable attorneys’ fees to the
extent permitted by law), with interest as provided in this Section 7.3,
shall constitute a portion of the Debt and shall be due and payable to Lender
upon demand. All such costs and expenses incurred by Lender in remedying such
Event of Default or such failed payment or act or in appearing in, defending,
or bringing any such action or proceeding shall bear interest at the Default
Rate, for the period after notice from Lender that such cost or expense was incurred
to the date of payment to Lender. All such costs and expenses incurred by
Lender together with interest thereon calculated at the Default Rate shall be
deemed to constitute a portion of the Debt and be secured by this Mortgage and
the other Loan Documents and shall be immediately due and payable upon demand
by Lender therefor.

 

Section 7.4.                                   Actions and Proceedings. Lender has the right to appear in and
defend any action or proceeding brought with respect to the Property and to
bring any action or proceeding, in the name and on behalf of Borrower, which
Lender, in its discretion, decides should be brought to protect its interest in
the Property.

 

Section 7.5.                                   Recovery of Sums Required To be Paid. Lender shall have the right from time
to time to take action to recover any sum or sums which constitute a part of
the Debt as the same become due, without regard to whether or not the balance
of the Debt shall be due, and without prejudice to the right of Lender
thereafter to bring an action of foreclosure, or any other action, for a
default or defaults by Borrower existing at the time such earlier action was
commenced.

 

Section 7.6.                                   Examination of Books and Records. At reasonable times and upon reasonable
notice, Lender, its agents, accountants and attorneys shall have the right to
examine

 

18

 

the records, books,
management and other papers of Borrower which reflect upon their financial
condition, at the Property or at any office regularly maintained by Borrower where
the books and records are located. Lender and its agents shall have the right
to make copies and extracts from the foregoing records and other papers. In
addition, at reasonable times and upon reasonable notice, Lender, its agents,
accountants and attorneys shall have the right to examine and audit the books
and records of Borrower pertaining to the income, expenses and operation of the
Property during reasonable business hours at any office of Borrower where the
books and records are located. This Section 7.6 shall apply throughout the
term of the Note and without regard to whether an Event of Default has occurred
or is continuing. The action contemplated by this Section 7.6 shall be at
Lender’s sole cost and expense, unless an Event of Default shall be continuing,
in which event such action shall be at Borrower’s sole cost and expense.

 

Section 7.7.                                   Other Rights, Etc.

 

(a)                                  The failure of Lender to insist upon
strict performance of any term hereof shall not be deemed to be a waiver of any
term of this Mortgage. Borrower shall not be relieved of Borrower’s obligations
hereunder by reason of (i) the failure of Lender to comply with any
request of Borrower or any guarantor or indemnitor with respect to the Loan to
take any action to foreclose this Mortgage or otherwise enforce any of the
provisions hereof or of the Note or the other Loan Documents, (ii) the
release, regardless of consideration, of the whole or any part of the
Property, or of any person liable for the Debt or any portion thereof, or (iii) any
agreement or stipulation by Lender extending the time of payment or otherwise
modifying or supplementing the terms of the Note, this Mortgage or the other
Loan Documents.

 

(b)                                 It is agreed that the risk of loss or
damage to the Property is on Borrower, and Lender shall have no liability
whatsoever for decline in value of the Property, for failure to maintain the
Policies, or for failure to determine whether insurance in force is adequate as
to the amount of risks insured. Possession by Lender shall not be deemed an
election of judicial relief, if any such possession is requested or obtained,
with respect to any Property or collateral not in Lender’s possession.

 

(c)                                  Lender may resort for the payment of
the Debt to any other security held by Lender in such order and manner as
Lender, in its discretion, may elect. Lender may take action to
recover the Debt, or any portion thereof, or to enforce any covenant hereof
without prejudice to the right of Lender thereafter to foreclose this Mortgage.
The rights of Lender under this Mortgage shall be separate, distinct and
cumulative and none shall be given effect to the exclusion of the others. No
act of Lender shall be construed as an election to proceed under any one
provision herein to the exclusion of any other provision. Lender shall not be
limited exclusively to the rights and remedies herein stated but shall be
entitled to every right and remedy now or hereafter afforded at law or in
equity.

 

Section 7.8.                                   Right to Release Any Portion of the
Property. Lender may release
any portion of the Property for such consideration as Lender may require
without, as to the remainder of the Property, in any way impairing or affecting
the lien or priority of this Mortgage, or improving the position of any
subordinate lienholder with respect thereto, except to the extent

 

19

 

that the obligations
hereunder shall have been reduced by the actual monetary consideration, if any,
received by Lender for such release, and may accept by assignment, pledge
or otherwise any other property in place thereof as Lender may require
without being accountable for so doing to any other lienholder. This Mortgage
shall continue as a lien and security interest in the remaining portion of the
Property.

 

Section 7.9.                                   Violation of Laws. If the Property is not in material
compliance with Legal Requirements, Lender may impose additional
requirements upon Borrower in connection herewith including, without
limitation, monetary reserves or financial equivalents.

 

Section 7.10.                             Recourse and Choice of Remedies. Notwithstanding any other provision of
this Mortgage or the Loan Agreement, including, without limitation, Section 9.4
of the Loan Agreement, Lender and other Indemnified Parties (as hereinafter
defined) are entitled to enforce the obligations of Borrower, any guarantor or
indemnitor contained in Sections 9.2, 9.3 and 9.4 herein and Section 9.4
of the Loan Agreement without first resorting to or exhausting any security or
collateral and without first having recourse to the Note or any of the
Property, through foreclosure or acceptance of a deed in lieu of foreclosure or
otherwise, and in the event Lender commences a foreclosure action against the
Property, Lender is entitled to pursue a deficiency judgment with respect to
such obligations against Borrower and any guarantor or indemnitor with respect
to the Loan. The provisions of Sections 9.2, 9.3 and 9.4 herein and Section 9.4
of the Loan Agreement are exceptions to any non-recourse or exculpation
provisions in the Loan Agreement, the Note, this Mortgage or the other Loan
Documents, and Borrower and any guarantor or indemnitor with respect to the
Loan are fully and personally liable for the obligations pursuant to Sections
9.2, 9.3 and 9.4 herein and Section 9.4 of the Loan Agreement. The
liability of Borrower and any guarantor or indemnitor with respect to the Loan
pursuant to Sections 9.2, 9.3 and 9.4 herein and Section 9.4 of the Loan
Agreement is not limited to the original principal amount of the Note. Notwithstanding
the foregoing, nothing herein shall inhibit or prevent Lender from foreclosing
or exercising any other rights and remedies pursuant to the Loan Agreement, the
Note, this Mortgage and the other Loan Documents, whether simultaneously with
foreclosure proceedings or in any other sequence. A separate action or actions may be
brought and prosecuted against Borrower pursuant to Sections 9.2, 9.3 and 9.4
herein and Section 9.4 of the Loan Agreement, whether or not action is
brought against any other Person or whether or not any other Person is joined
in the action or actions. In addition, Lender shall have the right but not the
obligation to join and participate in, as a party if it so elects, any
administrative or judicial proceedings or actions initiated in connection with
any matter addressed in Article 8 or Section 9.4 herein.

 

Section 7.11.                             Right of Entry. Upon reasonable notice to Borrower,
Lender and its agents shall have the right to enter and inspect the Property at
all reasonable times.

 

Section 7.12.                             Release. Upon payment of all sums secured by this Mortgage,
the Lender shall release this Mortgage. The Borrower shall pay the Lender’s
reasonable costs incurred in releasing this Mortgage.

 

20

 

ARTICLE 8

ENVIRONMENTAL HAZARDS

 

Section 8.1.                                   Environmental Representations and Warranties. To the best of Borrower’s knowledge, and
except as otherwise disclosed by that certain Environmental Site Assessment of
the Property delivered to Lender (such report is referred to below as the “Environmental Report”), Borrower hereby
represents and warrants (a) to the best of Borrower’s knowledge, based on
the Environmental Report, there are no Hazardous Substances (defined below) or
underground storage tanks in, on, or under the Property, except those that are
both (i) in compliance with Environmental Laws (defined below) and with
permits issued pursuant thereto and (ii) fully disclosed to Lender in
writing pursuant the Environmental Report; (b) there are no past, present
or threatened Releases (defined below) of Hazardous Substances in, on, under or
from the Property which has not been fully remediated in accordance with
Environmental Law; (c) there is no threat of any Release of Hazardous
Substances migrating to the Property; (d) there is no past or present
non-compliance with Environmental Laws, or with permits issued pursuant
thereto, in connection with the Property which has not been fully remediated in
accordance with Environmental Law; (e) Borrower does not know of, and has
not received, any written or oral notice or other communication from any Person
(including but not limited to a governmental entity) relating to Hazardous
Substances or Remediation (defined below) thereof, of possible liability of any
Person pursuant to any Environmental Law, other environmental conditions in
connection with the Property, or any actual or potential administrative or
judicial proceedings in connection with any of the foregoing; and (f) Borrower
has truthfully and fully provided to Lender, in writing, any and all
information relating to conditions in, on, under or from the Property that is
known to Borrower and that is contained in Borrower’s files and records,
including but not limited to any reports relating to Hazardous Substances in,
on, under or from the Property and/or to the environmental condition of the
Property.”Environmental Law”
means any present and future federal, applicable state and local laws,
statutes, ordinances, rules, regulations and the like, as well as common law,
relating to protection of human health or the environment, relating to
Hazardous Substances, relating to liability for or costs of Remediation or
prevention of Releases of Hazardous Substances or relating to liability for or
costs of other actual or threatened danger to human health or the environment.
Environmental Law includes, but is not limited to, the following statutes, as
amended, any successor thereto, and any regulations promulgated pursuant
thereto, and any applicable state or local statutes, ordinances, rules,
regulations and the like addressing similar issues:  the Comprehensive Environmental Response,
Compensation and Liability Act; the Emergency Planning and Community
Right-to-Know Act; the Hazardous Substances Transportation Act; the Resource
Conservation and Recovery Act (including but not limited to Subtitle I relating
to underground storage tanks); the Solid Waste Disposal Act; the Clean Water
Act; the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking
Water Act; the Occupational Safety and Health Act; the Federal Water Pollution
Control Act; the Federal Insecticide, Fungicide and Rodenticide Act; the
Endangered Species Act; the National Environmental Policy Act; and the River
and Harbors Appropriation Act. Environmental Law also includes, but is not
limited to, any present and future federal, applicable state and local laws,

 

21

 

statutes,
ordinances, rules, regulations and the like, as well as common law:  conditioning transfer of property upon a
negative declaration or other approval of a governmental authority of the
environmental condition of the Property; requiring notification or disclosure
of Releases of Hazardous Substances or other environmental condition of the Property
to any governmental authority or other Person, whether or not in connection
with transfer of title to or interest in property; imposing conditions or
requirements in connection with permits or other authorization for lawful
activity; relating to nuisance, trespass or other causes of action related to
the Property; and relating to wrongful death, personal injury, or property or
other damage in connection with any physical condition or use of the Property.

 

“Hazardous
Substances” include but are not limited to any and all
substances (whether solid, liquid or gas) defined, listed, or otherwise
classified as pollutants, hazardous wastes, hazardous substances, hazardous
materials, extremely hazardous wastes, or words of similar meaning or
regulatory effect under any present or future Environmental Laws or that may have
a negative impact on human health or the environment, including but not limited
to petroleum and petroleum products, asbestos and asbestos-containing
materials, polychlorinated biphenyls, lead, radon, radioactive materials,
flammables and explosives, but excluding substances of kinds and in amounts
ordinarily and customarily used or stored in similar properties for the purpose
of cleaning or other maintenance or operations and otherwise in compliance with
all Environmental Laws.

 

“Release”
of any Hazardous Substance includes but is not limited to any release, deposit,
discharge, emission, leaking, spilling, seeping, migrating, injecting, pumping,
pouring, emptying, escaping, dumping, disposing or other movement of Hazardous
Substances.

 

“Remediation”
includes but is not limited to any response, remedial, removal, or corrective
action, any activity to cleanup, detoxify, decontaminate, contain or otherwise
remediate any Hazardous Substance, any actions to prevent, cure or mitigate any
Release of any Hazardous Substance, any action to comply with any Environmental
Laws or with any permits issued pursuant thereto, any inspection,
investigation, study, monitoring, assessment, audit, sampling and testing,
laboratory or other analysis, or evaluation relating to any Hazardous
Substances or to anything referred to in Article 8.

 

Section 8.2.                                   Environmental Covenants. Borrower covenants and agrees that: (a) all
uses and operations on or of the Property, whether by Borrower or any other
Person, shall be in compliance with all Environmental Laws and permits issued
pursuant thereto; (b) Borrower shall not cause or permit the Release of
any Hazardous Substances in, on, under or from the Property; (c) there
shall be no Hazardous Substances in, on, or under the Property, except those
that are both (i) in compliance with all Environmental Laws and with
permits issued pursuant thereto and (ii) fully disclosed to Lender in
writing; (d) Borrower shall keep the Property free and clear of all liens
and other encumbrances imposed pursuant to any Environmental Law, whether due
to any act or omission of Borrower or any other Person (the “Environmental Liens”); (e) Borrower
shall, at its sole cost and expense, fully and expeditiously cooperate in all
activities pursuant to Section 8.3 below, including but not limited to
providing all relevant

 

22

 

information and making
knowledgeable persons available for interviews; (f) Borrower shall, at its
sole cost and expense, perform any environmental site assessment or other
investigation of environmental conditions in connection with the Property,
pursuant to any reasonable written request of Lender made in the event that
Lender has a good faith reason to believe based upon credible evidence or
information that an environmental hazard exists on or affects the Property
(including but not limited to sampling, testing and analysis of soil, water,
air, building materials and other materials and substances whether solid,
liquid or gas), and share with Lender the reports and other results thereof,
and Lender and other Indemnified Parties shall be entitled to rely on such
reports and other results thereof; (g) Borrower shall, at its sole cost
and expense, comply with all reasonable written requests of Lender made in the
event that Lender has a good faith reason to believe based upon credible
evidence or information that an environmental hazard exists on or affects the
Property to (i) reasonably effectuate Remediation of any condition
(including but not limited to a Release of a Hazardous Substance) in, on, under
or from the Property; (ii) comply with any Environmental Law; (iii) comply
with any directive from any governmental authority; and (iv) take any
other reasonable action necessary or appropriate for protection of human health
or the environment; (h) Borrower shall not do or knowingly allow any
tenant or other user of the Property to do any act that materially increases
the dangers to human health or the environment, poses an unreasonable risk of
harm to any Person (whether on or off the Property), impairs or may impair
the value of the Property, is contrary to any requirement of any insurer,
constitutes a public or private nuisance, constitutes waste, or violates any
covenant, condition, agreement or easement applicable to the Property; (i) Borrower
shall immediately notify Lender in writing of (A) any presence or Releases
or threatened Releases of Hazardous Substances in, on, under, from or migrating
towards the Property; (B) any non-compliance with any Environmental Laws
related in any way to the Property; (C) any actual or potential
Environmental Lien; (D) any required or proposed Remediation of
environmental conditions relating to the Property; and (E) any written or
oral notice or other communication of which Borrower becomes aware from any
source whatsoever (including but not limited to a governmental entity) relating
in any way to Hazardous Substances or Remediation thereof, possible liability
of any Person pursuant to any Environmental Law, other environmental conditions
in connection with the Property, or any actual or potential administrative or
judicial proceedings in connection with anything referred to in this Article 8;
and (j) Borrower shall, at its own cost and expense, implement an operations
and maintenance plan for asbestos at the Property, said plan to be reasonably
acceptable to Lender.

 

Section 8.3.                                   Lender’s Rights. In the event that Lender has a good
faith reason to believe based upon credible evidence or information that an
environmental hazard exists on the Property, upon reasonable notice from
Lender, Borrower shall, at Borrower’s expense, promptly cause an engineer or
consultant satisfactory to Lender to conduct any environmental assessment or
audit (the scope of which shall be determined in Lender’s sole and absolute
discretion) and take any samples of soil, groundwater or other water, air, or
building materials or any other invasive testing requested by Lender and
promptly deliver the results of any such assessment, audit, sampling or other
testing; provided, however, if such results are not delivered to Lender within
a reasonable period, upon reasonable notice to Borrower, Lender and any other
Person designated by Lender, including but not limited to any receiver, any
representative of a

 

23

 

governmental entity, and
any environmental consultant, shall have the right, but not the obligation, to
enter upon the Property at all reasonable times to assess any and all aspects
of the environmental condition of the Property and its use, including but not
limited to conducting any environmental assessment or audit (the scope of which
shall be determined in Lender’s sole and absolute discretion) and taking
samples of soil, groundwater or other water, air, or building materials, and
reasonably conducting other invasive testing. Borrower shall cooperate with and
provide access to Lender and any such Person designated by Lender.

 

ARTICLE 9

INDEMNIFICATIONS

 

Section 9.1.                                   GENERAL INDEMNIFICATION. BORROWER SHALL, AT ITS
SOLE COST AND EXPENSE, PROTECT, DEFEND, INDEMNIFY, RELEASE AND HOLD HARMLESS
THE INDEMNIFIED PARTIES FROM AND AGAINST ANY AND ALL CLAIMS, SUITS, LIABILITIES
(INCLUDING, WITHOUT LIMITATION, STRICT LIABILITIES), ACTIONS, PROCEEDINGS,
OBLIGATIONS, DEBTS, DAMAGES, LOSSES, COSTS, EXPENSES, DIMINUTIONS IN VALUE,
FINES, PENALTIES, CHARGES, FEES, EXPENSES, JUDGMENTS, AWARDS, AMOUNTS PAID IN
SETTLEMENT, PUNITIVE DAMAGES, FORESEEABLE AND UNFORESEEABLE CONSEQUENTIAL
DAMAGES, OF WHATEVER KIND OR NATURE (INCLUDING BUT NOT LIMITED TO REASONABLE
ATTORNEYS’ FEES AND OTHER COSTS OF DEFENSE) (COLLECTIVELY, THE “LOSSES”)
IMPOSED UPON OR INCURRED BY OR ASSERTED AGAINST ANY INDEMNIFIED PARTIES AND
DIRECTLY OR INDIRECTLY ARISING OUT OF OR IN ANY WAY RELATING TO ANY ONE OR MORE
OF THE FOLLOWING: (A) OWNERSHIP OF THIS MORTGAGE, THE PROPERTY OR ANY
INTEREST THEREIN OR RECEIPT OF ANY RENTS; (B) ANY AMENDMENT TO, OR
RESTRUCTURING OF, THE DEBT, AND THE NOTE, THE LOAN AGREEMENT, THIS MORTGAGE, OR
ANY OTHER LOAN DOCUMENTS; (C) ANY AND ALL LAWFUL ACTION THAT MAY BE
TAKEN BY LENDER IN CONNECTION WITH THE ENFORCEMENT OF THE PROVISIONS OF THIS
MORTGAGE OR THE LOAN AGREEMENT OR THE NOTE OR ANY OF THE OTHER LOAN DOCUMENTS,
WHETHER OR NOT SUIT IS FILED IN CONNECTION WITH SAME, OR IN CONNECTION WITH
BORROWER, ANY GUARANTOR OR INDEMNITOR AND/OR ANY PARTNER, JOINT VENTURER OR
SHAREHOLDER THEREOF BECOMING A PARTY TO A VOLUNTARY OR INVOLUNTARY FEDERAL OR
STATE BANKRUPTCY, INSOLVENCY OR SIMILAR PROCEEDING; (D) ANY ACCIDENT,
INJURY TO OR DEATH OF PERSONS OR LOSS OF OR DAMAGE TO PROPERTY OCCURRING IN, ON
OR ABOUT THE PROPERTY OR ANY PART THEREOF OR ON THE ADJOINING SIDEWALKS,
CURBS, ADJACENT PROPERTY OR ADJACENT PARKING AREAS, STREETS OR WAYS; (E) PERFORMANCE
OF ANY LABOR OR SERVICES OR THE FURNISHING OF ANY MATERIALS OR OTHER PROPERTY
IN RESPECT OF THE PROPERTY OR ANY PART THEREOF; (F) THE FAILURE OF
ANY PERSON TO FILE TIMELY

 

24

 

WITH THE
INTERNAL REVENUE SERVICE AN ACCURATE FORM 1099-B, STATEMENT FOR RECIPIENTS
OF PROCEEDS FROM REAL ESTATE, BROKER AND BARTER EXCHANGE TRANSACTIONS, WHICH MAY BE
REQUIRED IN CONNECTION WITH THIS MORTGAGE, OR TO SUPPLY A COPY THEREOF IN A
TIMELY FASHION TO THE RECIPIENT OF THE PROCEEDS OF THE TRANSACTION IN
CONNECTION WITH WHICH THIS MORTGAGE IS MADE; (G) ANY FAILURE OF THE
PROPERTY TO BE IN COMPLIANCE WITH ANY LEGAL REQUIREMENTS; (H) THE
ENFORCEMENT BY ANY INDEMNIFIED PARTY OF THE PROVISIONS OF THIS ARTICLE 9;
(I) ANY AND ALL CLAIMS AND DEMANDS WHATSOEVER WHICH MAY BE ASSERTED
AGAINST LENDER BY REASON OF ANY ALLEGED OBLIGATIONS OR UNDERTAKINGS ON ITS PART TO
PERFORM OR DISCHARGE ANY OF THE TERMS, COVENANTS, OR AGREEMENTS CONTAINED
IN ANY LEASE; (J) THE PAYMENT OF ANY COMMISSION, CHARGE OR BROKERAGE FEE TO
ANYONE CLAIMING THROUGH BORROWER WHICH MAY BE PAYABLE IN CONNECTION WITH
THE FUNDING OF THE LOAN; OR (K) ANY MISREPRESENTATION MADE BY BORROWER IN THIS
MORTGAGE OR ANY OTHER LOAN DOCUMENT. NOTWITHSTANDING THE FOREGOING, BORROWER
SHALL NOT BE LIABLE TO THE INDEMNIFIED PARTIES UNDER THIS SECTION 9.1 FOR
ANY LOSSES TO WHICH THE INDEMNIFIED PARTIES MAY BECOME SUBJECT TO THE
EXTENT SUCH LOSSES ARISE BY REASON OF THE GROSS NEGLIGENCE, ILLEGAL ACTS, FRAUD
OR WILLFUL MISCONDUCT OF THE INDEMNIFIED PARTIES OR LOSSES RESULTING FROM ACTS
OR OMISSIONS ARISING AFTER A COMPLETED FORECLOSURE OF THE PROPERTY OR
ACCEPTANCE BY LENDER OF A DEED IN LIEU OF FORECLOSURE. ANY AMOUNTS PAYABLE TO
LENDER BY REASON OF THE APPLICATION OF THIS SECTION 9.1 SHALL BECOME
IMMEDIATELY DUE AND PAYABLE AND SHALL BEAR INTEREST AT THE DEFAULT RATE FROM
THE DATE LOSS OR DAMAGE IS SUSTAINED BY LENDER UNTIL PAID. FOR PURPOSES OF THIS
ARTICLE 9, THE TERM “INDEMNIFIED PARTIES” MEANS LENDER AND ANY PERSON WHO
IS OR WILL HAVE BEEN INVOLVED IN THE ORIGINATION OF THE LOAN, ANY PERSON WHO IS
OR WILL HAVE BEEN INVOLVED IN THE SERVICING OF THE LOAN SECURED HEREBY, ANY
PERSON IN WHOSE NAME THE ENCUMBRANCE CREATED BY THIS MORTGAGE IS OR WILL HAVE
BEEN RECORDED, PERSONS AND ENTITIES WHO MAY HOLD OR ACQUIRE OR WILL HAVE
HELD A FULL OR PARTIAL INTEREST IN THE LOAN SECURED HEREBY (INCLUDING, BUT NOT
LIMITED TO, INVESTORS OR PROSPECTIVE INVESTORS IN THE SECURITIES, AS WELL AS
CUSTODIANS, TRUSTEES AND OTHER FIDUCIARIES WHO HOLD OR HAVE HELD A FULL OR
PARTIAL INTEREST IN THE LOAN SECURED HEREBY FOR THE BENEFIT OF THIRD PARTIES)
AS WELL AS THE RESPECTIVE DIRECTORS, OFFICERS, SHAREHOLDERS, PARTNERS,
EMPLOYEES, AGENTS, SERVANTS, REPRESENTATIVES, CONTRACTORS, SUBCONTRACTORS,
AFFILIATES, SUBSIDIARIES, PARTICIPANTS, SUCCESSORS AND ASSIGNS OF ANY AND ALL
OF THE FOREGOING (INCLUDING BUT NOT

 

25

 

LIMITED
TO ANY OTHER PERSON WHO HOLDS OR ACQUIRES OR WILL HAVE HELD A PARTICIPATION OR
OTHER FULL OR PARTIAL INTEREST IN THE LOAN, WHETHER DURING THE TERM OF THE LOAN
OR AS A PART OF OR FOLLOWING A FORECLOSURE OF THE LOAN AND INCLUDING, BUT
NOT LIMITED TO, ANY SUCCESSORS BY MERGER, CONSOLIDATION OR ACQUISITION OF ALL
OR A SUBSTANTIAL PORTION OF LENDER’S ASSETS AND BUSINESS).

 

Section 9.2.                                   MORTGAGE AND/OR
INTANGIBLE TAX. BORROWER SHALL, AT ITS SOLE COST AND EXPENSE,
PROTECT, DEFEND, INDEMNIFY, RELEASE AND HOLD HARMLESS THE INDEMNIFIED PARTIES
FROM AND AGAINST ANY AND ALL LOSSES IMPOSED UPON OR INCURRED BY OR ASSERTED
AGAINST ANY INDEMNIFIED PARTIES AND DIRECTLY OR INDIRECTLY ARISING OUT OF OR IN
ANY WAY RELATING TO ANY TAX ON THE MAKING AND/OR RECORDING OF THIS MORTGAGE,
THE NOTE OR ANY OF THE OTHER LOAN DOCUMENTS, BUT EXCLUDING ANY INCOME,
FRANCHISE OR OTHER SIMILAR TAXES. BORROWER HEREBY AGREES THAT, IN THE EVENT
THAT IT IS DETERMINED THAT ANY DOCUMENTARY STAMP TAXES OR INTANGIBLE PERSONAL
PROPERTY TAXES ARE DUE HEREON OR ON ANY MORTGAGE OR PROMISSORY NOTE EXECUTED IN
CONNECTION HEREWITH (INCLUDING, WITHOUT LIMITATION, THE NOTE), BORROWER SHALL
INDEMNIFY AND HOLD HARMLESS THE INDEMNIFIED PARTIES FOR ALL SUCH DOCUMENTARY
STAMP AND/OR INTANGIBLE TAXES, INCLUDING ALL PENALTIES AND INTEREST ASSESSED OR
CHARGED IN CONNECTION THEREWITH.

 

Section 9.3.                                   ERISA INDEMNIFICATION. BORROWER SHALL, AT ITS
SOLE COST AND EXPENSE, PROTECT, DEFEND, INDEMNIFY, RELEASE AND HOLD HARMLESS
THE INDEMNIFIED PARTIES FROM AND AGAINST ANY AND ALL LOSSES (INCLUDING, WITHOUT
LIMITATION, REASONABLE ATTORNEYS’ FEES AND COSTS INCURRED IN THE INVESTIGATION,
DEFENSE, AND SETTLEMENT OF LOSSES INCURRED IN CORRECTING ANY PROHIBITED
TRANSACTION OR IN THE SALE OF A PROHIBITED LOAN, AND IN OBTAINING ANY
INDIVIDUAL PROHIBITED TRANSACTION EXEMPTION UNDER ERISA THAT MAY BE
REQUIRED, IN LENDER’S SOLE DISCRETION) THAT LENDER MAY INCUR, DIRECTLY OR
INDIRECTLY, AS A RESULT OF A DEFAULT UNDER SECTIONS 4.1.9 OR 5.2.12 OF THE LOAN
AGREEMENT.

 

Section 9.4.                                   ENVIRONMENTAL
INDEMNIFICATION. BORROWER SHALL, AT ITS SOLE COST AND EXPENSE,
PROTECT, DEFEND, INDEMNIFY, RELEASE AND HOLD HARMLESS THE INDEMNIFIED PARTIES
FROM AND AGAINST ANY AND ALL LOSSES AND COSTS OF REMEDIATION (WHETHER OR NOT
PERFORMED VOLUNTARILY), ENGINEERS’ FEES, ENVIRONMENTAL CONSULTANTS’ FEES, AND
COSTS OF INVESTIGATION (INCLUDING BUT NOT

 

26

 

LIMITED
TO SAMPLING, TESTING, AND ANALYSIS OF SOIL, WATER, AIR, BUILDING MATERIALS AND
OTHER MATERIALS AND SUBSTANCES WHETHER SOLID, LIQUID OR GAS) IMPOSED UPON OR
INCURRED BY OR ASSERTED AGAINST ANY INDEMNIFIED PARTIES, AND DIRECTLY OR
INDIRECTLY ARISING OUT OF OR IN ANY WAY RELATING TO ANY ONE OR MORE OF THE
FOLLOWING: (A) ANY PRESENCE OF ANY HAZARDOUS SUBSTANCES IN, ON, ABOVE, OR
UNDER THE PROPERTY; (B) ANY PAST, PRESENT OR THREATENED RELEASE OF HAZARDOUS
SUBSTANCES IN, ON, ABOVE, UNDER OR FROM THE PROPERTY; (C) ANY ACTIVITY BY
BORROWER, ANY PERSON AFFILIATED WITH BORROWER OR ANY TENANT OR OTHER USER OF
THE PROPERTY IN CONNECTION WITH ANY ACTUAL, PROPOSED OR THREATENED USE,
TREATMENT, STORAGE, HOLDING, EXISTENCE, DISPOSITION OR OTHER RELEASE,
GENERATION, PRODUCTION, MANUFACTURING, PROCESSING, REFINING, CONTROL,
MANAGEMENT, ABATEMENT, REMOVAL, HANDLING, TRANSFER OR TRANSPORTATION TO OR FROM
THE PROPERTY OF ANY HAZARDOUS SUBSTANCES AT ANY TIME LOCATED IN, UNDER, ON OR
ABOVE THE PROPERTY; (D) ANY ACTIVITY BY BORROWER, ANY PERSON AFFILIATED
WITH BORROWER OR ANY TENANT OR OTHER USER OF THE PROPERTY IN CONNECTION WITH
ANY ACTUAL OR PROPOSED REMEDIATION OF ANY HAZARDOUS SUBSTANCES AT ANY TIME
LOCATED IN, UNDER, ON OR ABOVE THE PROPERTY, WHETHER OR NOT SUCH REMEDIATION IS
VOLUNTARY OR PURSUANT TO COURT OR ADMINISTRATIVE ORDER, INCLUDING BUT NOT
LIMITED TO ANY REMOVAL, REMEDIAL OR CORRECTIVE ACTION; (E) ANY PAST OR
PRESENT NON-COMPLIANCE OR VIOLATIONS OF ANY ENVIRONMENTAL LAWS (OR PERMITS
ISSUED PURSUANT TO ANY ENVIRONMENTAL LAW) IN CONNECTION WITH THE PROPERTY OR
OPERATIONS THEREON, INCLUDING BUT NOT LIMITED TO ANY FAILURE BY BORROWER, ANY
AFFILIATE OF BORROWER OR ANY TENANT OR OTHER USER OF THE PROPERTY TO COMPLY
WITH ANY ORDER OF ANY GOVERNMENTAL AUTHORITY IN CONNECTION WITH ANY
ENVIRONMENTAL LAWS; (F) THE IMPOSITION, RECORDING OR FILING OF ANY
ENVIRONMENTAL LIEN ENCUMBERING THE PROPERTY; (G) ANY ADMINISTRATIVE
PROCESSES OR PROCEEDINGS OR JUDICIAL PROCEEDINGS IN ANY WAY CONNECTED WITH ANY
MATTER ADDRESSED IN ARTICLE 8 AND THIS SECTION 9.4; (H) ANY
PAST, PRESENT OR THREATENED INJURY TO, DESTRUCTION OF OR LOSS OF NATURAL
RESOURCES IN ANY WAY CONNECTED WITH THE PROPERTY, INCLUDING BUT NOT LIMITED TO
COSTS TO INVESTIGATE AND ASSESS SUCH INJURY, DESTRUCTION OR LOSS; (I) ANY ACTS
OF BORROWER OR OTHER USERS OF THE PROPERTY IN ARRANGING FOR DISPOSAL OR
TREATMENT, OR ARRANGING WITH A TRANSPORTER FOR TRANSPORT FOR DISPOSAL OR
TREATMENT, OF HAZARDOUS SUBSTANCES OWNED OR POSSESSED BY SUCH BORROWER OR OTHER
USERS, AT ANY FACILITY OR INCINERATION VESSEL OWNED OR OPERATED BY ANOTHER
PERSON AND CONTAINING SUCH OR ANY SIMILAR HAZARDOUS SUBSTANCE;

 

27

 

(J) ANY
ACTS OF BORROWER OR OTHER USERS OF THE PROPERTY, IN ACCEPTING ANY HAZARDOUS
SUBSTANCES FOR TRANSPORT TO DISPOSAL OR TREATMENT FACILITIES, INCINERATION
VESSELS OR SITES SELECTED BY BORROWER OR SUCH OTHER USERS, FROM WHICH THERE IS
A RELEASE, OR A THREATENED RELEASE OF ANY HAZARDOUS SUBSTANCE WHICH CAUSES THE
INCURRENCE OF COSTS FOR REMEDIATION; (K) ANY PERSONAL INJURY, WRONGFUL DEATH,
OR PROPERTY DAMAGE ARISING UNDER ANY STATUTORY OR COMMON LAW OR TORT LAW
THEORY, INCLUDING BUT NOT LIMITED TO DAMAGES ASSESSED FOR THE MAINTENANCE OF A
PRIVATE OR PUBLIC NUISANCE OR FOR THE CONDUCTING OF AN ABNORMALLY DANGEROUS
ACTIVITY ON OR NEAR THE PROPERTY; AND (1) ANY MISREPRESENTATION OR
INACCURACY IN ANY REPRESENTATION OR WARRANTY OR MATERIAL BREACH OR FAILURE TO
PERFORM ANY COVENANTS OR OTHER OBLIGATIONS PURSUANT TO ARTICLE 8.
NOTWITHSTANDING THE FOREGOING, BORROWER SHALL NOT BE LIABLE UNDER THIS SECTION 9.4
FOR ANY LOSSES OR COSTS OF REMEDIATION TO WHICH THE INDEMNIFIED PARTIES MAY BECOME
SUBJECT TO THE EXTENT SUCH LOSSES OR COSTS OF REMEDIATION ARISE BY REASON OF
THE GROSS NEGLIGENCE, ILLEGAL ACTS, FRAUD OR WILLFUL MISCONDUCT OF THE
INDEMNIFIED PARTIES OR LOSSES RESULTING FROM ACTS OR OMISSIONS ARISING AFTER A
COMPLETED FORECLOSURE OF THE PROPERTY OR ACCEPTANCE BY LENDER OF A DEED IN LIEU
OF FORECLOSURE. THIS INDEMNITY SHALL SURVIVE ANY TERMINATION, SATISFACTION OR
FORECLOSURE OF THIS MORTGAGE, SUBJECT TO THE PROVISIONS OF SECTION 10.5.

 

Section 9.5.                                   Duty to Defend; Attorneys’ Fees and Other
Fees and Expenses.
Upon written request by any Indemnified Party, Borrower shall defend such
Indemnified Party (if requested by any Indemnified Party, in the name of the
Indemnified Party) by attorneys and other professionals approved by the
Indemnified Parties. Notwithstanding the foregoing, if the defendants in any
such claim or proceeding include both Borrower and any Indemnified Party and
Borrower and such Indemnified Party shall have reasonably concluded that there
are any legal defenses available to it and/or other Indemnified Parties that
are different from or additional to those available to Borrower, such
Indemnified Party shall have the right to select separate counsel to assert
such legal defenses and to otherwise participate in the defense of such action
on behalf of such Indemnified Party, provided that no compromise or settlement
shall be entered without Borrower’s consent, which consent shall not be
unreasonably withheld. Upon demand, Borrower shall pay or, in the sole and
absolute discretion of the Indemnified Parties, reimburse, the Indemnified
Parties for the payment of reasonable fees and disbursements of attorneys,
engineers, environmental consultants, laboratories and other professionals in
connection therewith.

 

28

 

ARTICLE 10

WAIVERS

 

Section 10.1.                             Waiver of Counterclaim. To the extent permitted by applicable
law, Borrower hereby waives the right to assert a counterclaim, other than a
mandatory or compulsory counterclaim, in any action or proceeding brought
against it by Lender arising out of or in any way connected with this Mortgage,
the Loan Agreement, the Note, any of the other Loan Documents, or the
Obligations.

 

Section 10.2.                             Marshalling and Other Matters. To the fullest extent permitted by
applicable law, Borrower hereby waives the benefit of all appraisement,
valuation, stay, extension, reinstatement and redemption laws now or hereafter
in force and all rights of marshalling in the event of any sale hereunder of
the Property or any part thereof or any interest therein. Further, Borrower
hereby expressly waives any and all rights of redemption from sale under any
order or decree of foreclosure of this Mortgage on behalf of Borrower, and on
behalf of each and every person acquiring any interest in or title to the
Property subsequent to the date of this Mortgage and on behalf of all persons
to the extent permitted by applicable law.

 

Section 10.3.                             Waiver of Notice. To the extent permitted by applicable
law, Borrower shall not be entitled to any notices of any nature whatsoever
from Lender except with respect to matters for which this Mortgage specifically
and expressly provides for the giving of notice by Lender to Borrower and
except with respect to matters for which Lender is required by applicable law
to give notice, and Borrower hereby expressly waives the right to receive any
notice from Lender with respect to any matter for which this Mortgage does not
specifically and expressly provide for the giving of notice by Lender to
Borrower.

 

Section 10.4.                             Waiver of Statute of Limitations. To the extent permitted by applicable
law, Borrower hereby expressly waives and releases to the fullest extent
permitted by law, the pleading of any statute of limitations as a defense to
payment of the Debt or performance of its Other Obligations.

 

Section 10.5.                             Survival. The indemnifications made pursuant to Sections 9.3 and
9.4 herein and the representations and warranties, covenants, and other
obligations arising under Article 8, shall continue indefinitely in full
force and effect and shall survive and shall in no way be impaired by:  any satisfaction or other termination of this
Mortgage, any assignment or other transfer of all or any portion of this
Mortgage or Lender’s interest in the Property (but, in such case, shall benefit
both Indemnified Parties and any assignee or transferee), any exercise of
Lender’s rights and remedies pursuant hereto including but not limited to
foreclosure or acceptance of a deed in lieu of foreclosure, any exercise of any
rights and remedies pursuant to the Loan Agreement, the Note or any of the
other Loan Documents, any transfer of all or any portion of the Property
(whether by Borrower or by Lender following foreclosure or acceptance of a deed
in lieu of foreclosure or at any other time), any amendment to this Mortgage, the
Loan Agreement, the Note or the other Loan Documents, and any act or omission
that might otherwise be construed as a release or discharge of Borrower from
the obligations pursuant hereto.

 

29

 

Notwithstanding anything
to the contrary contained in this Mortgage or the other Loan Documents,
Borrower shall not have any obligations or liabilities under the
indemnification under Section 9.4 herein or other indemnifications with
respect to Hazardous Substances contained in the other Loan Documents with
respect to those obligations and liabilities that Borrower can prove arose
solely from Hazardous Substances that (i) were not present on or a threat
to the Property prior to the date that Lender or its nominee acquired title to
the Property, whether by foreclosure, exercise by power of sale, acceptance of
a deed-in-lieu of foreclosure or otherwise and (ii) were not the result of
any act or negligence of Borrower or any of Borrower’s affiliates, agents or
contractors.

 

ARTICLE 11

EXCULPATION

 

The provisions of Section 9.4 of the Loan
Agreement are hereby incorporated by reference into this Mortgage to the same
extent and with the same force as if fully set forth herein.

 

ARTICLE 12

NOTICES

 

All notices or other written communications
hereunder shall be delivered in accordance with Section 10.6 of the Loan
Agreement.

 

ARTICLE 13

APPLICABLE LAW

 

Section 13.1.                             GOVERNING LAW. THIS MORTGAGE SHALL BE DEEMED TO BE A
CONTRACT ENTERED INTO PURSUANT TO THE LAWS OF THE STATE WHERE THE PROPERTY IS
LOCATED AND SHALL IN ALL RESPECTS BE GOVERNED, CONSTRUED, APPLIED AND ENFORCED
IN ACCORDANCE WITH THE LAWS OF THE STATE WHERE THE PROPERTY IS LOCATED.

 

Section 13.2.                             Usury Laws. Notwithstanding anything to the contrary, (a) all
agreements and communications between Borrower and Lender are hereby and shall
automatically be limited so that, after taking into account all amounts deemed
interest, the interest contracted for, charged or received by Lender shall
never exceed the maximum lawful rate or amount, (b) in calculating whether
any interest exceeds the lawful maximum, all such interest shall be amortized,
prorated, allocated and spread over the full amount and term of all principal
indebtedness of Borrower to Lender, and (c) if through any contingency or
event, Lender receives or is deemed to receive interest in excess of the lawful
maximum, any such excess shall be deemed to have been applied toward payment of
the principal of any and all then

 

30

 

outstanding indebtedness
of Borrower to Lender, or if there is no such indebtedness, shall immediately
be returned to Borrower.

 

Section 13.3.                             Provisions Subject to Applicable Law. All rights, powers and remedies
provided in this Mortgage may be exercised only to the extent that the
exercise thereof does not violate any applicable provisions of law and are
intended to be limited to the extent necessary so that they will not render
this Mortgage invalid, unenforceable or not entitled to be recorded, registered
or filed under the provisions of any applicable law. If any term of this
Mortgage or any application thereof shall be invalid or unenforceable, the
remainder of this Mortgage and any other application of the term shall not be
affected thereby.

 

ARTICLE 14

DEFINITIONS

 

All capitalized terms not defined herein shall the
respective meanings set forth in the Loan Agreement. Unless the context clearly
indicates a contrary intent or unless otherwise specifically provided herein,
words used in this Mortgage may be used interchangeably in singular or
plural form and the word “Borrower”
shall mean “each Borrower and any subsequent owner or owners of the Property or
any part thereof or any interest therein,” the word “Lender” shall mean “Lender and any subsequent
holder of the Note,” the word “Note”
shall mean “the Note and any other evidence of indebtedness secured by this
Mortgage,” the word “Property”
shall include any portion of the Property and any interest therein, and the
phrases “attorneys’ fees”, “legal fees” and “counsel fees” shall include any and all
attorneys’, paralegal and law clerk fees and disbursements, including, but not
limited to, fees and disbursements at the pre-trial, trial and appellate levels
incurred or paid by Lender in protecting its interest in the Property, the
Leases and the Rents and enforcing its rights hereunder.

 

ARTICLE 15

MISCELLANEOUS PROVISIONS

 

Section 15.1.                             No Oral Change. This Mortgage, and any provisions
hereof, may not be modified, amended, waived, extended, changed,
discharged or terminated orally or by any act or failure to act on the part of
Borrower or Lender, but only by an agreement in writing signed by the party
against whom enforcement of any modification, amendment, waiver, extension,
change, discharge or termination is sought.

 

Section 15.2.                             Successors and Assigns. This Mortgage shall be binding upon and
inure to the benefit of Borrower and Lender and their respective successors and
assigns forever.

 

Section 15.3.                             Inapplicable Provisions. If any term, covenant or condition of
the Loan Agreement, the Note or this Mortgage is held to be invalid, illegal or
unenforceable in any respect, the Loan Agreement, the Note and this Mortgage
shall be construed without such provision.

 

31

 

Section 15.4.                             Headings, Etc. The headings and captions of various
Sections of this Mortgage are for convenience of reference only and are not to
be construed as defining or limiting, in any way, the scope or intent of the
provisions hereof.

 

Section 15.5.                             Number and Gender. Whenever the context may require,
any pronouns used herein shall include the corresponding masculine, feminine or
neuter forms, and the singular form of nouns and pronouns shall include
the plural and vice versa.

 

Section 15.6.                             Subrogation. If any or all of the proceeds of the
Note have been used to extinguish, extend or renew any indebtedness heretofore
existing against the Property, then, to the extent of the funds so used, Lender
shall be subrogated to all of the rights, claims, liens, titles, and interests
existing against the Property heretofore held by, or in favor of, the holder of
such indebtedness and such former rights, claims, liens, titles, and interests,
if any, are not waived but rather are continued in full force and effect in
favor of Lender and are merged with the lien and security interest created
herein as cumulative security for the repayment of the Debt, the performance
and discharge of Borrower’s obligations hereunder, under the Loan Agreement, the
Note and the other Loan Documents and the performance and discharge of the
Other Obligations.

 

Section 15.7.                             Entire Agreement. The Note, the Loan Agreement, this
Mortgage and the other Loan Documents constitute the entire understanding and
agreement between Borrower and Lender with respect to the transactions arising
in connection with the Debt and supersede all prior written or oral
understandings and agreements between Borrower and Lender with respect thereto.
Borrower hereby acknowledges that, except as incorporated in writing in the
Note, the Loan Agreement, this Mortgage and the other Loan Documents, there are
not, and were not, and no persons are or were authorized by Lender to make, any
representations, understandings, stipulations, agreements or promises, oral or
written, with respect to the transaction which is the subject of the Note, the
Loan Agreement, this Mortgage and the other Loan Documents.

 

Section 15.8.                             Limitation on Lender’s Responsibility. No provision of this Mortgage shall
operate to place any obligation or liability for the control, care, management
or repair of the Property upon Lender, nor shall it operate to make Lender
responsible or liable for any waste committed on the Property by the tenants or
any other Person, or for any dangerous or defective condition of the Property,
or for any negligence in the management, upkeep, repair or control of the
Property resulting in loss or injury or death to any tenant, licensee, employee
or stranger. Nothing herein contained shall be construed as constituting Lender
a “mortgagee in possession.”

 

32

 

ARTICLE 16

INTENTIONALLY OMITTED

 

ARTICLE 17

SPECIAL MASSACHUSETTS PROVISIONS

 

Section 17.1.                             The provisions of this Article are
intended to supplement, and not limit, the other provisions of this Security
Instrument; provided, however, that in the event the provisions of this Article expressly
contradict any other provision of this Security Instrument, the provisions of
this Article shall govern.

 

Section 17.2.                             This Mortgage is granted with MORTGAGE
COVENANTS and is also upon the STATUTORY CONDITION, for any breach of which, or
for any breach of any other of the covenants, conditions, agreements and
obligations of the Mortgagor herein contained, or upon the occurrence of any of
the events specified as an Event of Default in this Mortgage or if the whole of
the principal sum of and the interest on any of the Note shall become due, the
Mortgagee shall have the STATUTORY POWER OF SALE.

 

[Signature
Page to Follow]

 

33

 

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

 

	
   

  	
   

  	
  BORROWER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INLAND AMERICAN FRAMINGHAM, L.L.C.,
  a

  	
   

  	
   

  
	
   

  	
   

  	
  Delaware
  limited liability company

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  INLAND AMERICAN CERUZZI FRAMINGHAM

  
	
   

  	
   

  	
   

  	
  MEMBER, L.L.C., a Delaware limited liability company,

  
	
   

  	
   

  	
   

  	
  its Sole Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  INLAND AMERICAN FRAMINGHAM MEMBER

  
	
   

  	
   

  	
   

  	
   

  	
  II, L.L.C., a Delaware limited liability company,

  
	
   

  	
   

  	
   

  	
   

  	
  its Manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  INLAND AMERICAN REAL ESTATE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  TRUST, INC., a Maryland corporation,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  its Sole Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:Exhibit
10.105

 

AGREEMENT
OF CONTRIBUTION

 

 

BY
AND BETWEEN

 

 

CE CUMBERLAND 2001 LLC

 

MALDEN CE 2001 LLC

 

SWAMPSCOTT CE 2001 LLC

 

CE SOUTHINGTON 2001 LLC

 

FRAMINGHAM CE 2001 LLC

 

CE BRISTOL 2001 LLC

 

CE SICKLERVILLE 2001 LLC

 

CE GREENVILLE 2001 LLC

 

and

 

 

INLAND
REAL ESTATE ACQUISITIONS, INC.

 

 

DATED
AS OF February 24, 2006

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page
  No.

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1 -
  Contribution

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Covenant to Contribute

  	
  1

  
	
  1.2

  	
  Contribution; Escrow
  Agent

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 - Title and
  Condition of Property; Financing

  	
   

  
	
   

  	
   

  
	
  2.1

  	
  State of Title

  	
  6

  
	
  2.2

  	
  Investigations; No
  Reliance on Documents; As-Is Sale

  	
  7

  
	
  2.3

  	
  Due Diligence Period

  	
  11

  
	
  2.4

  	
  Inland’s Right to
  Terminate

  	
  11

  
	
  2.5

  	
  Prepayment of Existing
  Loans; Assumption of Existing F Property Loan

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 - The Closing

  	
   

  
	
   

  	
   

  
	
  3.1

  	
  Time and Place

  	
  12

  
	
  3.2

  	
  Closing

  	
  12

  
	
  3.3

  	
  Delivery of Possession

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4 -
  Apportionments and Allocation of Expenses

  	
   

  
	
   

  	
   

  
	
  4.1

  	
  Credits and Prorations

  	
  15

  
	
  4.2

  	
  Other Adjustments

  	
  15

  
	
  4.3

  	
  Transaction and Closing
  Costs

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5 - Representations
  and Warranties

  	
   

  
	
   

  	
   

  
	
  5.1

  	
  Ceruzzi’s
  Representations and Warranties

  	
  17

  
	
  5.2

  	
  Inland’s
  Representations and Warranties

  	
  19

  
	
  5.3

  	
  Changed Circumstances

  	
  19

  
	
  5.4

  	
  Survival of
  Representations and Warranties

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6 - Additional
  Agreements

  	
   

  
	
   

  	
   

  
	
  6.1

  	
  Operations Pending
  Closing

  	
  20

  
	
  6.2

  	
  Mutual Cooperation

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7 - Risk of
  Loss

  	
   

  
	
  7.1

  	
  Casualty

  	
  21

  
	
  7.2

  	
  Condemnation

  	
  22

  

 

i

 

	
  ARTICLE 8 - Remedies
  Upon Default

  	
   

  
	
   

  	
   

  
	
  8.1

  	
  Time of Essence

  	
  23

  
	
  8.2

  	
  Default by Inland

  	
  23

  
	
  8.3

  	
  Default by Ceruzzi

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9 - Agents and
  Commission

  	
   

  
	
   

  	
   

  
	
  9.1

  	
  Brokers

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10 -
  Miscellaneous

  	
   

  
	
   

  	
   

  
	
  10.1

  	
  Notices

  	
  24

  
	
  10.2

  	
  No Recording

  	
  25

  
	
  10.3

  	
  No Agency

  	
  25

  
	
  10.4

  	
  Severability

  	
  25

  
	
  10.5

  	
  Assignment and
  Succession

  	
  25

  
	
  10.6

  	
  Amendments and Waivers

  	
  25

  
	
  10.7

  	
  Further Assurances

  	
  26

  
	
  10.8

  	
  Absence of Third-Party
  Beneficiaries

  	
  26

  
	
  10.9

  	
  Governing Law;
  Jurisdiction

  	
  26

  
	
  10.10

  	
  Interpretation

  	
  26

  
	
  10.11

  	
  Entire Agreement

  	
  27

  
	
  10.12

  	
  Counterparts

  	
  27

  
	
  10.13

  	
  Expenses

  	
  27

  
	
  10.14

  	
  Consents

  	
  27

  
	
  10.15

  	
  Headings

  	
  27

  
	
  10.16

  	
  Waiver of Trial by Jury

  	
  27

  
	
  10.17

  	
  Confidentiality

  	
  27

  
	
  10.18

  	
  Drafts not an Offer to
  Enter into a Legally Binding Contract

  	
  28

  
	
  10.19

  	
  Exculpation

  	
  28

  
	
  10.20

  	
  Joint and Several

  	
  29

  

 

ii

 

AGREEMENT
OF CONTRIBUTION

 

THIS
AGREEMENT OF CONTRIBUTION (hereinafter referred to as the “Agreement”),
dated as of this 24th day of February, 2006, between CE Cumberland 2001 LLC, and Malden
CE 2001 LLC, and Swampscott CE
2001 LLC, and CE Southington 2001
LLC, and Framingham CE 2001 LLC, and
CE Bristol 2001 LLC, and CE Sicklerville 2001 LLC, and CE Greenville 2001 LLC, each a Delaware
limited liability company, having an address at c/o Ceruzzi Holdings, LLC, 1720
Post Road, Fairfield, CT 06824 (hereinafter collectively referred to as “Ceruzzi”), and Inland Real Estate Acquisitions, Inc., an
Illinois corporation having an address at 2901 Butterfield Road, Oak Brook,
Illinois 60523 (hereinafter referred to as “Inland”).

 

W
I T N E S S E T H:

 

WHEREAS,
Ceruzzi is the owner of those certain parcels of real
property legally described upon group Exhibit
“A” attached hereto and made a part hereof (hereinafter collectively
referred to as the “Real Property”).

 

WHEREAS,
Ceruzzi desires to sell to Inland and Inland desires to purchase from Ceruzzi
the Property subject to the terms and conditions hereinafter provided; and

 

NOW,
THEREFORE, for good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties intending to be
legally bound, hereby agree as follows:

 

ARTICLE
1

Contribution

 

1.1          Covenant to Contribute. Prior to
Closing, Inland shall form and organize the Grantees (as hereinafter defined),
the JV’s (as hereinafter defined) and the Member II Entities (as hereinafter
defined). Ceruzzi, through the collective formation of the limited liability
companies described upon Exhibit “L” attached
hereto and made a part hereof, (collectively, the “JV’s”), by Ceruzzi and the entities to be formed by Inland as
described upon Exhibit “N,” attached
hereto and made a part hereof (the “Member II
Entities”), shall
contribute to the respective JV’s and convey to Inland, and Inland shall accept
from Ceruzzi, the following (collectively, the “Property” and respectively the “Property” as the context requires):

 

(a)           the
Real Property owned by Ceruzzi, together with all of the tenements,
hereditaments and appurtenances appertaining thereto, including any estate,
right, title, interest, property, claim and demand of Ceruzzi in and to all
streets, alleys, rights-of-way, sidewalks, easements, and utility lines or
agreements (hereinafter collectively referred to the “Land”);

 

1

 

(b)           all
improvements, buildings and structures owned by Ceruzzi situate on the Land,
including the shopping center and other facilities located thereon, and any
apparatus, equipment, appliances and fixtures incorporated therein and used in
connection with the operation and occupancy thereof, to the extent owned by
Ceruzzi (hereinafter collectively referred to as the “Improvements”);

 

(c)           all
right, title and interest of Ceruzzi in and to the leases and other occupancy
agreements with the tenants set forth on Exhibit
“B” attached hereto covering all or any portion of the Real Property
or the Improvements to the extent they are in effect on the Closing Date (as
such term is defined in Section 3.1 hereof) (hereinafter collectively referred
to as the “Leases”), together with
all current rents and other sums due thereunder (hereinafter referred to as the
“Rents”);

 

(d)           the
non-exclusive right to use all of Ceruzzi’s architectural and engineering
plans, specifications and drawings, soil studies, land surveys, environmental
studies and reports, hazardous waste studies and reports, market reports and
surveys which are in the possession of the Ceruzzi (if any) which relate to the
Property (hereinafter collectively referred to as the “Plans”);

 

(e)           all
utility, service, equipment, maintenance and other contracts relating to the
ownership, maintenance or use of the Property, as approved during the Due
Diligence Period (as hereinafter defined) by Inland (hereinafter collectively
referred to as the “Property Contracts”);

 

(f)            to
the extent assignable, all permits, approvals and licenses issued by any federal,
state or local governmental authority or agency pertaining to the ownership,
operation, maintenance or use of the Land, including, without limitation,
zoning, site plan and subdivision approvals and developers’ agreements
(hereinafter collectively referred to as the “Permits”);

 

(g)           all
books, records and operating reports in Ceruzzi’s possession, which are
necessary to ensure continuity of operation of the Property (hereinafter
collectively referred to as the “Records”);

 

(h)           all
right, title and interest, if any, of Ceruzzi in and to the operating names of
each Property (which shall expressly exclude the names: Stop & Shop, Giant
and BI-LO in all cases); and

 

(i)            all
warranties and/or guaranties for materials and workmanship benefiting the
Purchaser, to the extent assignable by their terms (hereinafter collectively
referred to as the “Warranties”).

 

1.2          Contribution Value; Escrow Agent.

 

(a)           Ceruzzi
is to contribute and Inland is to accept all of the Property for the aggregate
Contribution Value of ONE HUNDRED THIRTY MILLION FOUR HUNDRED THIRTY THOUSAND
and NO/100 DOLLARS ($130,430,000.00)  for
the “Property Values” described
upon “Exhibit O,” attached hereto
and made a part 

 

2

 

hereof (hereinafter collectively
referred to as the “Contribution Value”).
The Contribution Value shall be paid and is subject to adjustment as provided
in subsections 1.2 (g) and 1.2 (h), below.

 

(b)           Upon
the execution and delivery of this Agreement by Ceruzzi and Inland, Inland
shall deposit with Chicago Title Insurance Company, 171 N. Clark Street,
Chicago, IL 60601, the sum of ONE MILLION and NO/100  ($1,000,000.00) DOLLARS (hereinafter referred
to as the “Good Faith Deposit”).
This Agreement shall not be deemed to be effective and binding upon the parties
hereto unless and until the Good Faith Deposit is so delivered. If the Good
Faith Deposit is not paid within two business days following complete execution
of this Agreement by all parties, this Agreement shall be null and void and no
party shall be bound by the terms hereof. The Escrow Agent shall hold the Good
Faith Deposit in an interest-bearing trust account maintained by the Escrow
Agent at Chicago Title Insurance Company, Chicago Office (hereinafter referred
to as the “Deposit Escrow Account”),
in accordance with the terms and conditions of this Agreement. The term
“Deposit” shall mean and refer to the Good Faith Deposit excluding all accrued
interest in the Deposit Escrow Account, which shall be the property of Inland in
all events. The Deposit shall be distributed in accordance with the terms of
this Agreement.

 

(c)           Intentionally
deleted.

 

(d)           (i)            The
duties of the Escrow Agent are limited to those specifically provided for
herein and are purely ministerial in nature. Escrow Agent shall incur no
liability hereunder or otherwise except for its own gross negligence or willful
misconduct, and Ceruzzi and Inland hereby release Escrow Agent from any
liability (other than as excepted herein) for any action taken by it hereunder
or for any failure or refusal to act hereunder or for any other matter. Unless
Escrow Agent shall have been guilty of gross negligence or willful misconduct,
Ceruzzi and Inland, jointly and severally, agree to indemnify and hold harmless
Escrow Agent from and against any liability incurred by it as a result of its
acting as escrow Agent hereunder. Notwithstanding the immediately preceding
sentence, however, Inland shall be solely responsible for the payment of all
fees and other compensation charged by the Escrow Agent for acting as such
hereunder, including the reimbursement of any costs and expenses incurred by
the Escrow Agent in connection with its acting as Escrow Agent hereunder.

 

(ii)           Escrow
Agent shall not be bound in any way or by any agreement or contract between
Ceruzzi or Inland, whether or not it has knowledge thereof, and Escrow Agent’s
only duties and responsibilities shall be to hold the Deposit as escrow agent
and to dispose of the Deposit in accordance with the terms of this Agreement. Without
limiting the generality of the foregoing, Escrow Agent shall, in the absence of
its gross negligence or willful misconduct, have no responsibility to protect
the Deposit and shall not be responsible for any failure to demand, collect or
enforce any obligation with respect to the Deposit or for any diminution in
value of the Deposit for any cause. Escrow Agent may, at the expense of Ceruzzi
and Inland, consult with counsel and accountants in connection with its duties
under this Agreement and Escrow 

 

3

 

Agent shall be fully
protected in any act taken, suffered or permitted by it in good faith in
accordance with the advice of such counsel and accountants. Escrow Agent shall
not be obligated to take any action hereunder which may, in its reasonable
judgment, involve it in any liability unless Escrow Agent shall have been
furnished with reasonable indemnity satisfactory in amount, form and substance
to Escrow Agent.

 

(iii)          Escrow
Agent is acting as a stakeholder only with respect to the Deposit. If there is
any dispute as to whether Escrow Agent is obligated to disburse the Deposit or
as to whom the Deposit is to be delivered, Escrow Agent shall not make any
delivery, but in such event Escrow Agent shall hold the Deposit until receipt
by Escrow Agent of any authorization in writing, signed by all parties having
an interest in such dispute, directing the disposition of the Deposit. In the
absence of such authorization Escrow Agent shall hold the Deposit until the
final determination of the rights of the parties in any appropriate proceeding.
Escrow Agent shall have no responsibility to determine the authenticity or
validity of any notice, in accordance with any written notice, direction or
instruction given to it under this Agreement and believed by it to be
authentic. If such written authorization is not given, or proceedings for such
determination are not begun, within thirty (30) days after the dispute arises,
Escrow Agent may, but is not required to, bring an appropriate action or
proceeding for leave to deposit the Deposit with a court of the State of
Connecticut. Pending such determination Escrow Agent shall be reimbursed for
all costs and expenses of such action or proceeding, including, without
limitation, attorneys’ fees and disbursements by the party determined not to be
entitled to the Deposit. Upon making delivery of the Deposit in the manner
provided in this Agreement, Escrow Agent shall have no further liability
hereunder. In no event shall Escrow Agent be under any duty to institute,
defend or participate in any proceeding which may arise between Ceruzzi and
Inland in connection with the Deposit.

 

(iv)          Escrow
Agent or any successor Escrow Agent may resign at any time by giving fifteen
(15) days’ prior notice of resignation to the other parties hereto, such
resignation to be effective on the date specified in such notice. In case the
office of Escrow Agent shall become vacant for any reason, Ceruzzi may appoint
a title company, bank or trust company that is reasonably acceptable to Inland
as successor Escrow Agent to the retiring Escrow Agent, whereupon such
successor Escrow Agent shall succeed to all rights and obligations of the
retiring Escrow Agent as if originally named hereunder, and the retiring Escrow
Agent shall duly transfer and deliver to such successor Escrow Agent the funds
and records, including without limitation the Deposit, held by the retiring
Escrow Agent hereunder.

 

(e)           Escrow
Agent shall execute this Agreement solely for the purpose of being bound by the
provisions of Sections 1.2(b) and (d) hereof and to acknowledge its receipt of
the Good Faith Deposit.

 

(f)

 

(i)  At Closing, Ceruzzi shall receive the
Contribution Value in operating units equal to or greater than Forty-three
Million Four Hundred Thirty Thousand and no/100 Dollars ($43,430,000.00) (the “Operating Units”) in the JV’s described
upon 

 

4

 

Exhibit
“L” as so-called “down REIT” Delaware limited liability
companies (collectively, the “DR LLC”),
which operating units shall be valued at $10.00 per unit; and (ii) the balance
of the Contribution Value in cash. Attached hereto as Exhibit “K” and made a part hereof is the
base form of DR LLC operating agreement (collectively, the “DR LLC OA”). The parties hereto agree to
execute and/or cause the execution of the DR LLC OA at or prior to the date of
Closing.

 

(ii)  The base form of DR LLC OA shall be modified
to apply to the terms of this transaction, including but not limited to the
following (in the event of any conflict between the terms of the attached form
of DR LLC OA and this Agreement, the terms of this Agreement shall control):

 

A.     The
“Investor Preferred Return” (as
described by the DR LLC OA) shall be a per annum rate equal to five and
one-half (5 1⁄2%) percent on “Investor’s
Invested Capital” (as described by the DR LLC OA).

 

B.     Ceruzzi
shall have the right to redeem (put) all of its units (i.e., partial redemption
is not permitted) at any time from and after December 15, 2008; and

 

C.     Inland
shall have the right to call (redeem) the Ceruzzi units at any time from and
after the fifth (5th) anniversary of the date of Closing (“Inland’s Call Notice”), provided however
that Ceruzzi shall have the right to toll the call (redemption) of the Ceruzzi
units pursuant to the terms of Inland’s Call Notice by electing, within
5-business days of the date of receipt of Inland’s Call Notice, to freeze the
Investor Preferred Return at 5.5% per annum for a maximum period expiring on
the date which is 10-years from the date of Closing (the “10-Year Date”).

 

D.     In
any event, Inland shall have the right to call (redeem) the Ceruzzi units at
any time from and after the 10-Year Date.

 

(iii)          The
Member II Entities and Ceruzzi shall (through the JV’s, as sole member) form
single purpose limited liability companies to take title to each Property (the “Grantees”). The names of the Grantees are
shown upon Exhibit “M” attached
hereto and made a part hereof.

 

(iv)          No
later than the Closing Date, Ceruzzi shall obtain the agreement of Stop &
Shop, Giant and BI-LO, as applicable, to make per diem payments to Inland (at a
minimum, on a prorated monthly basis) together with the rental payments
required to be made pursuant to the terms of the Leases, equal to the “Make Whole Payments” described upon Exhibit “O” for each day from the date of
Closing through the respective date each tenant is required to increase its
payment of base rent in accordance with the terms of the Leases.

 

5

 

ARTICLE
2

 

Title and Condition of
Property; Financing

 

2.1          State of Title.

 

(a)           Title
shall be conveyed to the Grantees at Closing in fee simple by local
jurisdiction form bargain and sale deed with covenants against grantor’s acts
and shall be insurable at regular rates free and clear of any and all liens,
claims, encumbrances, mortgages, deeds of trust and security interests (except
for the lien of real estate taxes not yet due and payable), but subject to all
Permitted Exceptions (as such term is defined in Section 2.1(c) hereof).

 

(b)           Inland,
the cost and expense thereof to be paid by Inland, shall obtain a preliminary
title search of each Property (hereinafter collectively referred to as the “Title Commitment”) from Chicago Title
Insurance Company (in such capacity, hereinafter referred to as the “Title Company”), pursuant to which the
Title Company shall commit to insure (upon the payment of a requisite premium
at regular rates) that the Grantees shall own good and indefeasible fee simple
title to the Property as described in Section 2.1(a) of this Agreement. Inland
shall forward a complete copy of the Title Commitment to Ceruzzi within five
(5) business days after Inland’s receipt of same. Inland shall have until 5
p.m. on April 24, 2006 (hereinafter referred to as the “Due Diligence Period”) within which to
object, by written notice to Ceruzzi, to any exceptions to title set forth in
the Title Commitment. Ceruzzi, at the sole cost and expense of Inland, shall
cause a reputable surveyor licensed in the state of situs of each Property, to
prepare and deliver an ALTA as-built survey of each Property (to specifications
approved by Inland) (collectively, the “Survey”)
to the Grantees and Ceruzzi and the Title Company no later than 30-days prior
to the expiration of the Due Diligence Period. Inland shall have until 5:00
p.m. on the last day of the Due Diligence Period within which to notify Ceruzzi
in writing that Inland objects to any state of facts as shown on any Survey,
which written notice must be given contemporaneously with any written notice
given as to exceptions to title referred to above. If Inland notifies Ceruzzi
in writing that Inland objects to any exceptions to title and/or to any state
of facts in the Survey (hereinafter referred to as a “Title Objection Notice”), Ceruzzi shall have ten (10)
business days after receipt of such notification to notify Inland (i) that
Ceruzzi will remove the Title Objection Notice exceptions from title or, if
applicable, remove the matters as shown on the Survey on or before the Closing
or (ii) that Ceruzzi elects not to cause such exceptions or matters to be
removed. If Ceruzzi fails to notify Inland within such ten (10) business days,
Ceruzzi shall be deemed to have given notice under clause (ii) above. If
Ceruzzi gives (or is deemed to have given) Inland notice under clause (ii)
above, Inland shall have five (5) business days from the date of receipt of
such notice (or in a case where Ceruzzi gives no such notice, from the last
date on which such notice could have been given) in which to notify Ceruzzi and
the Escrow Agent (x) that Inland will nevertheless proceed with the
transactions contemplated by this Agreement and the Grantees shall then take
title to the Property subject to such exceptions and such matters without
reduction of the Contribution Value or (y) that Inland will terminate this 

 

6

 

Agreement. If Inland does
not provide any notice contemplated by the immediately preceding sentence,
Inland shall be deemed to have elected that the Grantees shall take title to
the Property pursuant to clause (x) above. If this Agreement is terminated
pursuant to the provisions of Section 2.1(b)(y), (i) this Agreement shall
terminate and be of no further force and effect, (ii) no party hereto shall
have any further rights or obligations hereunder (except for representations,
warranties and/or any indemnity obligations of any party pursuant to the
provisions of this Agreement which expressly survive termination of this
Agreement), and (iii) the Escrow Agent shall immediately return the Deposit to
Inland.

 

(c)           The
term “Permitted Exceptions” as
used herein shall mean (i) the lien of real estate taxes, assessments and water
and sewer charges not yet due and payable, (ii) all matters set forth in the
Title Commitment and approved by Inland or deemed approved by Inland as
provided hereinabove, provided, however, matters set forth in the Title
Commitment for which the Standards of Title (or equivalent) of the Bar
Association of each state in which a Property is located recommend no curative
action be taken shall be deemed approved (iii) intentionally deleted, (iv) all
existing building, zoning and other city, state, county or federal laws, codes
and regulations affecting the Property, (v) any existing general utility
easements serving the Property (provided that such easements do not subject any
owner of such Property to obligations other than are usual and customary in
similar easements and provided further that no Improvements (other than parking
areas and access aisles) are constructed on such easements), (vi) such state of
facts as would be shown by accurate survey of the Property, (vii) the Leases,
and (viii) any title exception created directly by any act or omission of Inland
or its representatives, agents, employees or invitees.

 

(d)           Ceruzzi’s
obligation to convey title to the Property is solely as set forth in Section
2.1(a) hereof. To the extent that Inland may elect, at its option, to request
the Title Company to issue endorsements to the most current form of ALTA
owner’s title insurance policy as currently and customarily used in the state
of situs of each Property, the issuance of such endorsements shall be paid by
Inland, and (to the extent that Inland has not terminated this Agreement during
the Due Diligence Period in accordance with the terms of Section 2.4 hereof)
the issuance of any such endorsements shall not be a pre-condition to Inland’s
obligation to consummate the transactions contemplated by this Agreement.

 

2.2          Investigations; No Reliance on Documents;
As-Is Sale.

 

(a)           Except
as expressly set forth in this Agreement, neither Ceruzzi nor Inland makes any
representations or warranties as to the truth, accuracy or completeness of any
materials, data or information delivered by such party or its brokers or agents
to the other party in connection with the transaction contemplated hereby
Ceruzzi and Inland acknowledge and agree that all materials, data and
information delivered by the other party in connection with the transactions
contemplated hereby are provided to the other party as a convenience only and
that any reliance on or use of such materials, data or information shall be at
the sole risk of the party receiving such materials, data or information from the
other party, except as otherwise expressly stated 

 

7

 

herein. Neither Ceruzzi,
nor any affiliate of Ceruzzi, nor the persons or entities which prepared any
report or reports (unless Inland has obtained reliance letters from any such
persons or entities or has established legal privity with such persons or
entities by some other means) delivered by Ceruzzi to Inland, shall have any
liability to Inland for any inaccuracy in or omission from any such reports.

 

(b)           Except
as expressly set forth in this Agreement and in any documents delivered by
Ceruzzi at the Closing, it is understood and agreed that Ceruzzi is not making
and has not at any time made any warranties or representations of any kind or
character, express or implied, with respect to the Property, including, but not
limited to, any warranties or representations as to habitability,
merchantability or fitness for a particular purpose, or as to the state of
title, physical condition, environmental condition and/or zoning of the
Property.

 

INLAND ACKNOWLEDGES AND
AGREES THAT UPON CLOSING CERUZZI SHALL CONTRIBUTE AND CONVEY OR ASSIGN TO THE
JV’S AND GRANTEES AND INLAND SHALL ACCEPT THE Property “AS IS, WHERE IS, WITH ALL FAULTS” AND WITH
ALL LATENT OR PATENT DEFECTS, EXCEPT TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE
IN THIS AGREEMENT OR THE DOCUMENTS EXECUTED AND DELIVERED BY CERUZZI AT THE
CLOSING. INLAND HAS NOT RELIED AND WILL NOT RELY ON, AND CERUZZI IS NOT LIABLE
FOR OR BOUND BY ANY EXPRESS OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS,
REPRESENTATIONS OR INFORMATION PERTAINING TO ANY PROPERTY OR RELATING THERETO
MADE OR FURNISHED BY CERUZZI, OR ANY REAL ESTATE BROKER OR AGENT PURPORTING TO
REPRESENT CERUZZI, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR
IN WRITING, UNLESS SPECIFICALLY SET FORTH IN THIS AGREEMENT OR DOCUMENTS
EXECUTED AND DELIVERED BY CERUZZI AT THE CLOSING. INLAND ALSO ACKNOWLEDGES THAT
THE CONTRIBUTION VALUE REFLECTS AND TAKES INTO ACCOUNT THAT THE PROPERTY IS
BEING SOLD “AS IS, WHERE IS, WITH ALL FAULTS.”  IN ADDITION, CERUZZI WILL HAVE NO OBLIGATION TO PROVIDE ANY REPAIRS, ALTERATIONS OR
IMPROVEMENTS TO THE PROPERTY AS A CONDITION PRECEDENT TO INLAND’S OBLIGATION TO
CLOSE TITLE. IN FURTHERANCE OF THE FOREGOING AND NOT IN LIMITATION THEREOF,
INLAND SPECIFICALLY ACKNOWLEDGES AND AGREES THAT EXCEPT AS SPECIFICALLY SET
FORTH HEREIN TO THE CONTRARY, INLAND IS NOT RELYING ON ANY REPRESENTATIONS OR
WARRANTIES OF ANY KIND WHATSOEVER, WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED,
STATUTORY OR OTHERWISE, FROM CERUZZI OR ANY PARTNER, MEMBER, MANAGER,
SHAREHOLDER, OFFICER OR DIRECTOR OF CERUZZI OR FROM ANY EMPLOYEE, ATTORNEY,
AGENT OR REPRESENTATIVE OF CERUZZI AS TO ANY MATTER CONCERNING ANY PROPERTY OR
ANY MATERIALS PROVIDED BY THE CERUZZI PURSUANT TO SECTION 2.3 HEREOF, INCLUDING
WITHOUT LIMITATION:  (i) THE QUALITY,
NATURE, HABITABILITY, MERCHANTABILITY, USE, OPERATION, VALUE, MARKETABILITY,
ADEQUACY OR PHYSICAL CONDITION OF THE PROPERTY 

 

8

 

OR ANY ASPECT OR PORTION
THEREOF, INCLUDING, WITHOUT LIMITATION, STRUCTURAL ELEMENTS, FOUNDATIONS,
ROOFS, APPURTENANCES, ACCESS, LANDSCAPING, PARKING FACILITIES, ELECTRICAL,
MECHANICAL, HVAC, PLUMBING, SEWAGE, UTILITY SYSTEMS, FACILITIES, APPLIANCES,
SOILS, GEOLOGY OR GROUNDWATER, (ii) THE DIMENSIONS OR LOT SIZE OF ANY PROPERTY
OR THE SQUARE FOOTAGE OF THE IMPROVEMENTS THEREON OR OF ANY TENANT SPACE
THEREIN, (iii) THE DEVELOPMENT OR INCOME POTENTIAL, OR DEVELOPMENT OR OTHER
RIGHTS OF OR RELATING TO PROPERTY, (iv) PROPERTY’S INSURABILITY,
MERCHANTABILITY, FITNESS, SUITABILITY, OR ADEQUACY FOR ANY PARTICULAR PURPOSE,
(v) THE ZONING OR OTHER LEGAL STATUS OF PROPERTY OR ANY OTHER PUBLIC OR PRIVATE
RESTRICTIONS ON THE USE OF PROPERTY, (vi) THE COMPLIANCE OF THE PROPERTY OR ITS
OPERATION WITH ANY APPLICABLE CODES, LAWS, REGULATIONS, STATUTES, ORDINANCES,
COVENANTS, CONDITIONS OR RESTRICTIONS OF ANY GOVERNMENTAL AUTHORITY OR OF ANY
OTHER PERSON OR ENTITY (INCLUDING, WITHOUT LIMITATION, THE AMERICANS WITH DISABILITIES
ACT), (viii) THE ABILITY OF INLAND TO OBTAIN ANY GOVERNMENTAL APPROVALS,
LICENSES OR PERMITS NECESSARY FOR INLAND’S INTENDED USE OR DEVELOPMENT OF THE
PROPERTY, (viii) THE PRESENCE OR ABSENCE OF HAZARDOUS MATERIALS ON, IN, UNDER,
ABOVE OR ABOUT THE PROPERTY OR ANY ADJOINING OR NEIGHBORING PROPERTY, (ix) THE
DESIGN, CONSTRUCTION OR THE QUALITY OF ANY LABOR AND MATERIALS USED IN THE
CONSTRUCTION OF ANY IMPROVEMENTS, (x) THE CONDITION OF TITLE TO THE PROPERTY,
(xi) THE LEASES, CONTRACTS OR ANY OTHER AGREEMENTS AFFECTING THE PROPERTY OR
THE INTENTIONS OF ANY PARTY WITH RESPECT TO THE NEGOTIATION AND/OR EXECUTION OF
ANY LEASE OR CONTRACT WITH RESPECT TO THE PROPERTY, OR THE APPLICABLE CERUZZI’S
OWNERSHIP, DEVELOPMENT OR OPERATION OF THE PROPERTY OR (xii) THE ECONOMICS OF,
OR THE INCOME AND EXPENSES, REVENUE OR EXPENSE PROJECTIONS OR OTHER FINANCIAL
MATTERS, RELATING TO THE PROPERTY, OR THE OPERATION THEREOF. WITHOUT LIMITING
THE GENERALITY OF THE FOREGOING, INLAND AGREES THAT INLAND IS NOT RELYING ON ANY
REPRESENTATION OR WARRANTY OF CERUZZI, WHETHER SUCH REPRESENTATION OR WARRANTY
IS IMPLIED, PRESUMED OR EXPRESSLY PROVIDED, ARISING BY VIRTUE OF ANY STATUTE OR
COMMON LAW. INLAND AGREES THAT CERUZZI IS UNDER NO DUTY TO MAKE ANY INQUIRY
REGARDING ANY MATTER THAT MAY OR MAY NOT BE KNOWN TO ANY CERUZZI OR TO CONFIRM,
INVESTIGATE OR QUESTION THE ADEQUACY OF ANY APPRAISAL, REPORT, ANALYSES OR
STUDY OF ANY ASPECT OF THE PROPERTY PREPARED OR OBTAINED BY CERUZZI.

 

(c)           Inland’s
acceptance of Ceruzzi’s deed for the Property in favor of the Grantees shall be
deemed to be full performance by Ceruzzi of, and will discharge Ceruzzi from,
all liabilities and obligations under this Agreement, and thereafter Ceruzzi
shall have no liability or obligation to Inland or to any subsequent owner of
the Property 

 

9

 

with respect to the
Property, nor any liability or obligation to any other person, firm,
corporation or public body with respect to actions or claims which arise on or
after the Closing Date with respect to the Property. Upon transfer of the
Property, Inland shall be deemed to have accepted and shall be subject to the
terms, conditions and other obligations applicable to the owner of, and
relating to, the Property which are set forth in any governmental approvals
relating to the construction, use or occupancy of the Property, including
without limitation, site plan approvals and developer’s agreements, whether or
not same shall have been recorded.

 

(d)           Inland,
in consideration for the promises and covenants contained in this Agreement,
and for other good and valuable consideration, the receipt of which is hereby
acknowledged, as of Closing does hereby release and forever discharge Ceruzzi
from any and all actions, causes of action, suits, controversies, claims and
demands whatsoever, in law and in equity, for or on account of injuries claimed
to have been received by Inland in connection with the condition of the
Property as of the date of Closing, including without limitation the
geophysical and environmental condition on, or originating from, the Property.
It is expressly understood and agreed by Inland and Ceruzzi that this release
specifically applies to any claims made in connection with any possible
environmental contamination on, or originating from, the Property, and/or any
violation of the Environmental Laws (as such term is hereinafter defined) by
the Ceruzzi in connection with the Property. For the purposes of this release,
the term “environmental contamination” shall include any type of environmental
orders, statutes or regulations applicable to the Property, including without
limitation to the Comprehensive Environmental Response, Compensation and
Liability Act, the Superfund Amendments and Reauthorization Act, the Federal
Clean Water Act, the Spill Compensation and Control Act, the Federal Water
Pollution Control Act, the Underground Storage of Hazardous Substances Act, the
Resource Conservation and Recovery Act and all other applicable federal, state
and/or local environmental acts (hereinafter collectively referred to as the
“Environmental Laws”) as the same are currently in force or may be later
amended, as well as any other claims, suits or actions arising from or related
to the environmental condition of the Property. By accepting title to the
Property through the Grantees at Closing, Inland shall be deemed to have agreed
that Inland:  (i) is satisfied with the
environmental conditions of the Property (regardless of whether the Property
complies with all Environmental Laws or other laws, orders, statutes or
regulations affecting the Property) and that Inland shall have been given the
opportunity to determine, to its own satisfaction, that the Property complies
with all Environmental Laws or other laws, orders, statutes or regulations
affecting the Property; (ii) accepts that Property in an “AS IS” condition
without relying on any verbal or written statement or representation relating
to the Property that may have been made by the Ceruzzi (except as expressly set
forth in this Agreement); and (iii) shall be solely responsible for any
environmental contamination on, or originating from, the Property which is not
disclosed in the Environmental Assessments to be obtained by Inland pursuant to
Section 2.3 hereof or which otherwise occurs after the Closing Date due to the
actions or inactions of the Inland, its successors and/or assigns or any third
party, and Inland agrees that it will be solely responsible for any such
environmental contamination. It is understood and agreed that Ceruzzi does not
admit any liability for any environmental contamination, and liability on the
part of Ceruzzi is expressly denied.

 

10

 

(e)           The
provisions of this Section 2.2 shall survive Closing or termination of this
Agreement.

 

2.3          Due Diligence Period. Inland shall have
until 5 p.m. (prevailing New York City, New York time) on the last day of the
Due Diligence Period to inspect the Property, to conduct and prepare studies,
tests and surveys and to investigate and review any and all matters relating to
the Property which Inland shall reasonably deem appropriate, including, without
limitation, zoning matters, environmental matters, the Plans, the Property
Contracts, the Permits, the Leases, the Records, the Title Commitment and the
condition of the Property. In connection with Inland’s review of the Property,
Ceruzzi, shall deliver to Inland within five (5) business days after the
signing of this Agreement copies of the documents described on the Due
Diligence Checklist attached hereto as Exhibit
“C” and made a part hereof, including copies (if any) of (i) the
most recent tax bills, (ii) the most recent title report and survey of the
Property as are available, (iii) each of the Leases and any amendments thereto,
(iv) all Property Contracts, (v) all Plans, (vi) all Permits, (vii) all
Records, (viii) all Warranties, (ix) all environmental reports and studies
relating to the Property and (x) all unrecorded developer’s agreements. All of
the foregoing tests, investigations and studies shall be conducted by Inland or
its agents at Inland’s sole risk, cost and expense. Prior to any such entry
unto the Property, Inland shall afford Ceruzzi not less that one (1) business
day’s advance written notice of such inspection. Inland covenants and agrees
that none of its tests, investigations or studies shall materially interfere
with or disrupt in any manner whatsoever (hereinafter referred to collectively
as “Interference”) (x) the operation of any Property or any part thereof by any
Ceruzzi or any tenant under any Lease or (y) the conduct of business by any
Ceruzzi or any tenant under any Lease. Prior to entry on any Property by
Inland, Inland shall deliver to Ceruzzi certificates of insurance (prepared on
an insurance certificate form known as an “Accord 27”) from an insurance
company or companies reasonably satisfactory to Ceruzzi, naming Ceruzzi and any
other party requested by Ceruzzi as additional insureds which certificates
shall evidence policies of insurance insuring against claims for bodily injury,
death and property damage with confirmed single limit amounts of $1,000,000.00
and aggregate amounts of $2,000,000.00. So long as no Interference results
therefrom, Ceruzzi will provide Inland and its agents with access to all
structures located on the respective Property to permit Inland to fully conduct
its due diligence activities. Inland shall repair and restore any damage caused
to the Property as a result of entry by Inland or its agents or
representatives. Inland shall defend, indemnify and hold Ceruzzi harmless from
and against any and all damages, losses, liabilities, costs and expenses
(including, without limitation, reasonable attorneys’ fees and court costs)
suffered or incurred by Ceruzzi or any tenant under any Leases with respect to
all claims for personal injury, death or for loss or damage to property in
connection with Inland’s or its agents’, representatives’, contractors’ or
subcontractors’ entry onto the Property and/or performance of such studies,
tests and surveys. Inland’s indemnification obligations under this Section 2.3
shall survive the Closing or termination of this Agreement.

 

2.4          Inland’s Right to Terminate. Inland shall
have until 5:00 p.m. (prevailing New York City, New York time) on the last day
of the Due Diligence Period within which to notify Ceruzzi and Escrow Agent in
writing (hereinafter referred to as a 

 

11

 

“Termination
Notice”), of its election to terminate this Agreement in its entirety
(but not otherwise), for any reason or for no reason whatsoever. If this
Agreement is terminated pursuant to the provisions of this Section 2.4, (i)
this Agreement shall terminate and be of no further force and effect, (ii) no
party hereto shall have any further rights or obligations hereunder (except for
representations, warranties and/or any indemnity obligations of any party
pursuant to the provisions of this Agreement which expressly survive
termination of this Agreement), and (iii) the Escrow Agent shall immediately
return the Deposit to Inland. If Inland shall not deliver an appropriate
Termination Notice within the time period set forth herein, Inland shall be
deemed to have accepted the results of its due diligence examination of the
Property, this Agreement shall remain in full force and effect and Inland shall
have no further right to cancel or terminate this Agreement, except as
otherwise expressly provided herein. If Inland terminates this Agreement,
Inland shall promptly return all due diligence material provided by Ceruzzi.

 

2.5          Prepayment of Existing Loans.

 

Inland hereby
acknowledges that the Property is currently subject to those certain mortgage
loans generally described on Exhibit “D”
attached hereto and made a part hereof (hereinafter collectively referred to as
the “Existing Loan”) made
by the Lender (hereinafter referred as the “Existing
Lender”) identified on Exhibit
“D” hereto. Inland and Ceruzzi hereby acknowledge and agree that
Inland is not assuming the obligations of the Ceruzzi under the Existing Loan,
and that all principal and accrued and unpaid interest under the Existing Loan
shall be prepaid out of the proceeds of the Closing of the transactions
contemplated hereby (including any defeasance costs and expenses).

 

ARTICLE
3

 

The Closing

 

3.1          Time and Place. Consummation of the
transactions contemplated hereby (hereinafter referred to as the “Closing”) shall take place using the
services of Chicago Title Insurance Company (“Chicago
Title”), as escrow agent. Ceruzzi and Inland shall deliver all of
their respective closing documents in escrow to Chicago with instructions on
the distribution of the documents at such time as Chicago Title has wired to
Ceruzzi the net funds due Ceruzzi in accordance with the closing statement agreed
upon between the parties. The Closing shall take place no later than 5-business
days after the expiration of the Due Diligence Period (hereinafter referred to
as the “Closing Date”). Ceruzzi
agrees to reasonably cooperate with Inland in its attempt to take an assignment
of the existing loan documents encumbering the Property.

 

3.2          Closing. At the Closing (or such earlier
date as set forth herein), Ceruzzi and Inland shall take such actions and
deliver such agreements and other instruments and documents necessary or
appropriate to effect the transactions contemplated by this Agreement in
accordance with the terms hereof, including, without limitation, the following:

 

12

 

(a)   Inland
shall deliver to Ceruzzi the portion of the Contribution Value payable pursuant
to Section 1.2(c) hereof and the Escrow Agent shall deliver the Deposit to the
Ceruzzi.

 

(b)   Ceruzzi
and Inland shall execute and deliver closing statements each in a form
reasonably acceptable to Ceruzzi, Inland and their respective counsel.

 

(c)   Ceruzzi
shall convey and transfer to the Grantees good and insurable title to the
Property, subject to the Permitted Exceptions, by executing, acknowledging and
delivering the deeds to the Grantees (collectively, the “Deed”).

 

(d)   Ceruzzi
and Inland shall execute and deliver assignment and assumption agreements in
substantially the form attached hereto as Exhibit
“E” and made a part hereof, duly executed and acknowledged by
Ceruzzi and the Grantees and in proper form for recording (if necessary),
pursuant to which Ceruzzi will assign to the Grantees all of Ceruzzi’s rights,
title and interest as lessor in and to the respective Leases, and pursuant to
which the Grantees will assume all obligations as lessor under the Leases.
Ceruzzi will simultaneously deliver to Inland an original executed copy of each
of the Leases and all guarantees of the Leases and a letter, duly executed by
the respective Ceruzzi, in form satisfactory to Inland, addressed to each of
the tenants under the Leases advising the tenants of the assignment of the
Leases to the Grantees.

 

(e)   Ceruzzi
shall use its commercially reasonable efforts (which for purposes of this Section
3.2(e) shall not require Ceruzzi to incur unreasonable costs) to cause the
tenants under Leases (Stop & Shop, Giant and BI-LO) to deliver to Inland a
written tenant estoppel certificate in the form required under the respective
Leases, or if no form is specified and if no form is generally used by a tenant
in similar transactions, in substantially the form attached hereto as Exhibit “F” and made a part hereof.

 

(f)    Ceruzzi
shall deliver to Inland a rent roll for the Property owned by it containing a
schedule of the Rents and other charges and payments due from the tenants under
the Leases dated as of the Closing Date and certified by Ceruzzi as true and
correct.

 

(g)   Ceruzzi
shall deliver to Inland an affidavit of title in customary form, duly executed
and acknowledged by Ceruzzi.

 

(h)   Ceruzzi
and Inland shall deliver to the Title Company all documents, affidavits and
instruments reasonably required by the Title Company and in a form reasonably
acceptable to Ceruzzi, Inland, their respective counsel and the Title Company.

 

13

 

(i)    Ceruzzi
shall deliver to Inland a limited liability company certificate, satisfactory
to the Title Company and Inland, with respect to the authority of Ceruzzi to
approve this Agreement and the transactions contemplated hereby.

 

(j)    Inland
shall deliver to Ceruzzi a corporate resolution, satisfactory to the Title
Company and Ceruzzi, with respect to the authority of Inland to approve this
Agreement and the transactions contemplated hereby.

 

(k)   Ceruzzi
shall deliver to Inland all Plans, Property Contracts, Permits, Records and all
other records pertinent to the ownership, operation, maintenance or use of the
Property which are in such Ceruzzi’s possession. Ceruzzi and Inland shall
execute and deliver an assignment and assumption agreement, pursuant to which Ceruzzi
will assign to Inland all of such Ceruzzi’s right, title and interest in the
Plans, Property Contracts, Permits and Records, and pursuant to which Inland
will assume all obligations with respect thereto.

 

(l)    Ceruzzi
shall deliver to Inland an affidavit stating that such Ceruzzi is not a
“foreign person” as that term is defined pursuant to the Foreign Investment in
Real Property Tax Act of 1980 (hereinafter referred to as “FIRPTA”).

 

(m)  Ceruzzi
shall execute a notice to Stop & Shop, Giant and BI-LO, as the case may be
in substantially the form attached hereto as Exhibit
“G”, which notices shall be delivered to Inland at Closing for
Inland to forward to the respective Tenants.

 

(n)   The
parties shall execute and deliver to each other any other instrument or
instruments (i) required to be delivered under any provision of this Agreement
and (ii) reasonably requested by the attorney for either party in connection
with this transaction.

 

(o)   To
the extent obtained by Inland (with Ceruzzi’s cooperation in accordance with
Section 6.2(c) hereof), and to the extent paid for on before Closing by Inland,
Ceruzzi shall cause all Warranties to be transferred to the name of the
Grantees.

 

(p)   To
the extent obtained by Ceruzzi in accordance with Section 6.2(c) hereof,
estoppel certificates from Stop & Shop, Giant and BI-LO, as the case may be
(as a tenant) and from any other party to any reciprocal easement or similar
agreement affecting the Property (hereinafter referred to as the “REA Estoppels”) in either the form prescribed
by any such document or in substantially the same form attached hereto as Exhibit “H.”

 

(q)   Ceruzzi
shall execute and deliver to Inland’s auditors, KPMG, an audit letter in the
form attached as Exhibit “J,”
attached hereto and made a part 

 

14

 

hereof. In the event the
audit of Property operations has not been performed by KPMG at or prior to the
date of Closing, Ceruzzi agrees to execute and deliver the audit letter at such
time as the audit is performed. The terms of this provision shall survive
Closing.

 

(r)    Ceruzzi
and Inland shall execute and deliver the DR LLC OA’s and the Guaranty of Inland
Western Retail Real Estate Trust Inc. in connection therewith.

 

(s)   Ceruzzi
shall deliver to Inland a waiver by Stop & Shop, Giant and BI-LO of its
right of first offer, in each case.

 

(t)    Ceruzzi
shall comply with the tax withholding statutes in regard to sale of the
Property (e.g., Rhode Island requirements) and Ceruzzi agrees to withhold from
the net proceeds of sale a sum sufficient to comply therewith; Ceruzzi and
Inland agree to execute and deliver such real estate and /or tax documents as
may be required to comply with the foregoing.

 

(u)   Inland
shall deliver to Ceruzzi a copy of each assignment of this Agreement by Inland
to the Member II Entities.

 

3.3                          Delivery of Possession.
Possession of the Property shall be delivered to Inland at the Closing upon
execution and delivery of the Deed (in favor of the Grantees) free of all
tenancies and occupants, except with respect to tenants under the Leases.

 

ARTICLE
4

Apportionments and Allocation of Expenses

 

4.1          Credits
and Prorations. Subject to any provision of this Agreement to the contrary, the
following items shall be apportioned for the calendar year in which the Closing
occurs as of midnight on the calendar day immediately preceding the
Closing:  (a) all Rents, revenues and
other income, if any, from the Property, and (b) any other income, expense or
other items relating to the Property under a NNN lease which is customarily
prorated between a purchaser and a seller of real property subject to a NNN
lease in the counties in which the Property is located. Ceruzzi hereby
represents and warrants to Inland (i) that each of the Leases are NNN and the
respective tenants thereunder are responsible for the full payment of all real
estate taxes and insurance and water and sewer charges and other utility
charges, and all other costs and expenses incurred in connection with the use
of the respective demised premises under Leases; and (ii) no security deposits
under Leases are being held by Ceruzzi.

 

4.2          Other
Adjustments.

 

(a) Intentionally
deleted.

 

(b) Except as otherwise
provided herein, any expense amount which cannot be ascertained with certainty
as of Closing (and for which Inland and Ceruzzi are 

 

15

 

unable to adjust and/or
allocate at or prior to Closing) shall be prorated on the basis of the parties’
reasonable estimates of such amount, and shall be the subject of a final
proration ninety (90) days after Closing, or as soon thereafter as the precise
amounts can be ascertained. Inland shall promptly notify Ceruzzi when it
becomes aware that any such estimated amount has been ascertained. Once all
revenue and expense amounts have been ascertained, Inland shall prepare, and
certify as correct, a final proration statement which shall be subject to
Ceruzzi approval. Upon the acceptance and approval by Ceruzzi of any final
proration statement submitted by Inland, such statement shall be conclusively
deemed to be accurate and final.

 

(c) All rents, including
without limitation all basic rent, additional rent, and all amounts due and
payable to the landlord under the Leases (hereinafter collectively referred to
as “Rents”), shall be prorated and adjusted as of the Closing Date based upon
the number of days in the month in which the Closing occurs. Ceruzzi shall
prepare all reconciliations for calendar year 2005 prior to the end of the Due
Diligence Period, and shall deliver copies thereof to Inland. Based upon (i)
the delinquency, if any, at such time in the payment of Rent by any Tenants and
(ii) the existence, if any, of any unpaid tenant improvements or leasing
commissions or any unexpired free rent periods (hereinafter collectively
referred to as “Tenant Concessions”) Inland and Ceruzzi shall negotiate in good
faith with each other appropriate credits to one another to be allocated at
Closing in connection with the Leases. Such good faith negotiations shall
include negotiations with respect to Rents which remain unpaid on and as of the
anticipated Closing Date, as well as allocation of responsibility for the
economic effect of the payment or realization of Tenant Concessions, it being
the intent of the Inland and Ceruzzi to negotiate fair and equitable credits
such that (i) Ceruzzi will have no claims against Tenants following Closing for
past due Rent, other additional rent and Tenant Concessions, (ii) Ceruzzi will
owe no additional payments to Inland in respect of Rent, other additional rent
and Tenant Concessions, and (iii) Inland will owe no additional payments to
Ceruzzi in respect thereof.

 

(d) Intentionally
deleted.

 

(e)           Inland
shall be entitled to a credit in the amount of the tenant security deposits set
forth on Schedule 4.2(e) attached hereto.

 

(f)            Subject
to the final sentence of Section 4.2(b) hereof, the provisions of this Section
4.2 shall survive Closing.

 

4.3          Transaction and Closing Costs.

 

(a) Ceruzzi and Inland
shall execute such returns, questionnaires and other documents as shall be
required with regard to all applicable real property transaction taxes imposed
by applicable federal, state or local law or ordinance.

 

(b) Ceruzzi shall pay the
fees of counsel representing Ceruzzi in connection with this transaction. In
addition, Ceruzzi shall also pay the following costs and expenses:

 

16

 

(i) any realty transfer
tax, sales tax, documentary stamp tax or similar tax which becomes payable by
reason of the transfer of the Property; 
and

 

(ii) the fees for any
consultants which have been hired or retained by Ceruzzi in connection with the
transactions contemplated by this Agreement.

 

(c) Inland shall pay the
fees of counsel representing Inland in connection with this transaction, if
any. In addition, Inland shall also pay the following costs and expenses:

 

(i) 100% of all survey
and title charges;

 

(ii) the cost of
appraisals, Environmental Assessments of the Property prepared on Inland’s
behalf or at Inland’s direction;

 

(iii) the fees for
recording the Deed;

 

(iv) except as set forth
in Section 9.1 hereof, the fees for any other brokers or consultants which have
been hired or retained by Inland in connection with the transaction
contemplated by this Agreement;

 

(v) the fees and expenses
of the Escrow Agent, as set forth in Section 1.2(d)(i) hereof; and

 

(vi)  all costs of obtaining Inland financing, if
any, and mortgage recording fees and taxes in connection therewith.

 

(d)           All
costs and expenses incident to the transaction contemplated hereby and the
closing thereof, and not specifically described above, shall be paid by the
party incurring same.

 

(e)           The
provisions of this Section 4.3 shall survive the Closing or termination of this
Agreement.

 

ARTICLE
5

Representations and Warranties

 

5.1          Ceruzzi Representations and Warranties.
Ceruzzi, hereby makes the following representations and warranties to Inland as
of the date of this Agreement, which representations and warranties shall be
true and correct as of the Closing Date as a condition to Inland’s obligation
to close hereunder:

 

(a)           Each Ceruzzi seller entity is a limited
liability company duly organized, validly existing and in good standing under
the laws of its state of formation. Ceruzzi has all requisite power and
authority to own and operate its respective Property and carry on its business
with respect to such Property as now being 

 

17

 

conducted. Ceruzzi has the requisite power and
authority to enter into this Agreement and to perform its obligations hereunder
and to consummate the transactions contemplated hereby. Neither the execution,
delivery and performance by Ceruzzi of this Agreement, nor the consummation of
the transactions contemplated hereby or thereby will violate or conflict with
any provision of the articles of organization or operating agreement of
Ceruzzi.

 

(b)           Ceruzzi is not a “foreign person” as such
term is defined pursuant to FIRPTA.

 

(c)           The execution, delivery and performance
by Ceruzzi of this Agreement, and the consummation of the transactions
contemplated hereby and thereby, will not violate any provision of Ceruzzi’s
organization documents.

 

(d)           Those certain leases described upon Exhibit “B” are the only leases and
tenancies in effect with respect to the Property and no individuals or entities
occupy the Property or any portion thereof except pursuant to the Leases. The
copies of the Leases previously delivered or to be delivered to Inland are or
will be true, correct and complete copies of all the Leases and any amendments
thereto. Except as disclosed herein or in the Leases, copies of which shall be
reviewed by Inland during the Due Diligence Period, no Lease provides the
tenant thereunder with a right of first refusal to purchase its demised
premises or any of the Property.

 

(e)           Ceruzzi has not received any written
notice from a tenant under any Lease of such tenant’s intention to vacate or
abandon its demised premises prior to the end of the term of its Lease. Ceruzzi
shall promptly provide Inland with a copy of any written notice of default
under any Lease given or received between the date hereof and the date of the
Closing.

 

(f)            Ceruzzi has not received any written
notice from any tenant under any Lease which claim any default by Landlord
thereunder. Ceruzzi shall promptly provide Inland with a copy of any written
notice of default under any Lease given or received between the date hereof and
the date of the Closing.

 

(g)           Except as otherwise disclosed to Inland,
Ceruzzi has not received any written notice of any violations of any federal,
state or municipal zoning, fire, environmental, building or other laws, codes,
statutes, ordinances, orders, regulations or requirements affecting the
Property owned by it, the terms of which have not been complied with, and
Ceruzzi will promptly notify Inland of the receipt of any written notice of any
such violations received by such Ceruzzi between the date hereof and the date
of the Closing.

 

(h)           There are no attachments, executions,
assignments for the benefit of creditors, receiverships, conservatorships or
voluntary or involuntary proceedings in bankruptcy or actions pursuant to any
other debtor relief laws contemplated by any Ceruzzi or pending against such
Ceruzzi and regarding the Property owned by it.

 

18

 

(i)            No tenant is entitled to any rent
concessions or “free rent” under the terms of any of the Leases, all tenant
improvement allowances due under any of the Leases have either been paid, or if
not yet due and payable, will be escrowed by Ceruzzi from the net funds due
Ceruzzi at the Closing, with Chicago Title.

 

(j)            Schedule
5.1(j) sets forth any unpaid leasing commissions and the amount hereof. All
leasing commissions for which a lien could be filed shall be paid on or before
the Closing Date

 

5.2          Inland’s Representations and Warranties.
Inland hereby makes the following representations and warranties to Ceruzzi as
of the date of this Agreement, which representations and warranties shall be
true and correct as of the Closing Date as a condition to Ceruzzi’s obligation
to close hereunder.

 

(a) Inland is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Illinois. Inland has the requisite power and authority to
enter into this Agreement and to perform its obligations hereunder and to
consummate the transactions contemplated hereby. The execution and delivery of
this Agreement and the consummation by Inland of the transactions contemplated
hereby and thereby have been duly authorized by Inland and no consents of any
third parties are necessary for Inland’s execution, delivery and performance of
this Agreement and the transactions contemplated hereby and thereby. Neither
the execution, delivery and performance by Inland of this Agreement, nor the
consummation of the transactions contemplated hereby or thereby will violate or
conflict with any provision of the documents and instruments under which Inland
is constituted.

 

(b)           No
action or other proceeding whatsoever is now pending or, to the best knowledge
of Inland, threatened against Inland or any shareholders, partners, members or
owners, as the case may be, of the foregoing which calls into question or seeks
to set aside or enjoin any of the approvals or authorizations of the
transactions contemplated by this Agreement, or the performance of Inland’s
obligations hereunder, or which will or may otherwise impede the Closing.

 

(c)           Inland
has all funds available to it which are sufficient to consummate the transaction
contemplated by this Agreement.

 

(d)           Inland
fully understands the nature and significance of the transactions provided for
in this Agreement and the limitations provided in Section 2.2 hereof and
elsewhere herein. Inland is satisfied with the amount being paid by it for the
Property, as set forth herein, based and in sole reliance upon its own
valuation of the Property and its review and analysis of the rent roll for each
Property, reports of physical inspections (including without limitation, environmental
inspections), business, operations, condition and prospects for the Property.

 

5.3          Changed Circumstances. Ceruzzi and Inland
shall promptly notify the other in writing, if, after the execution of this
Agreement and prior to the Closing, any event occurs or condition exists which
renders any of the foregoing representations and 

 

19

 

warranties made by it
materially untrue or misleading. All of the foregoing representations and
warranties, respectively, shall be deemed made by Ceruzzi, respectively, and
Inland on the date of this Agreement and at the time of the Closing.

 

5.4          Survival
of Representations and Warranties; Limitation on Ceruzzi’s Liability. Unless
otherwise set forth in this Agreement, the representations and warranties of
Ceruzzi and Inland, respectively, as set forth in this Article 5 and elsewhere
in this Agreement and in any other agreements, affidavits, estoppels,
instruments or other documents executed by any of the Ceruzzi in connection with
the transactions contemplated hereby (hereinafter collectively referred to as
the “Closing Documents”) shall survive Closing for six (6) months. In the event
that the Closing of the transactions contemplated herein occurs, and to the
extent that, thereafter, Inland incurs any actual costs or losses during the
six (6) month period referred to above as a result of any incorrect
representations or warranties made by Ceruzzi hereunder or under the Closing
Documents which exceed $1,000.00, Ceruzzi shall reimburse Inland for such
claims, costs and expenses within fifteen (15) days after delivery by Inland to
Ceruzzi of reasonable evidence of the payment of such claims, costs and
expenses. No claims based upon any incorrect representation or warranties may be
brought by Inland to the extent that the costs or losses actually incurred by
Inland do not individually or collectively exceed the Minimum Threshold, and no
such claims may be brought at any time following the six-month anniversary of
the Closing. In addition, to the extent that Inland actually knows at or prior
to Closing that any of Ceruzzi’s representations or warranties are inaccurate,
untrue or incorrect in any way, such representations and warranties shall be
deemed modified to reflect Inland’s knowledge. Without limitation, Ceruzzi
shall not have any liability in connection with this Agreement by reason of any
inaccuracy of a representation or warranty if and to the extent that such
inaccuracy has been identified by Ceruzzi by notice to Inland or otherwise is
actually known by Inland at the time of Closing (whether matters contradicting
any representation or warranty is contained in any Exhibit or Schedule to this
Agreement, whether such matters are contained in any materials delivered to
Inland by or on behalf of Ceruzzi, or whether such matters are contained in any
study, test, analysis or report prepared by or for the benefit of Inland in
connection with the transactions contemplated hereunder), and Inland
consummates the Closing.

 

ARTICLE
6

Additional Agreements

 

6.1          Operations Pending Closing. Between the
date of execution of this Agreement and the Closing, Ceruzzi shall comply with
all covenants, conditions, restrictions, laws, statutes, rules and regulations
and ordinances applicable to the Property, and shall own, manage and operate
the Property in a manner consistent with past practices and shall use
reasonable and prudent efforts to preserve for Inland the favorable
relationships which Ceruzzi has with tenants, suppliers, vendors and others having
ongoing relationships with the Property. Ceruzzi (a) may, at Ceruzzi’s option, 

 

20

 

after prior notice to
Inland, in the ordinary course and consistent with Ceruzzi’s current practices,
negotiate with prospective tenants, and (b) enter into Leases (on terms that
Ceruzzi believes, in its good faith business judgment, to be market terms),
enforce Leases and perform landlord’s obligations under the Leases (other than
with respect to Leases that have been or that are in the process of being
terminated). Ceruzzi shall not, without first obtaining written consent of
Inland, which consent shall not be unreasonably withheld, conditions or
delayed, enter into new Leases or modify the terms of or terminate any Leases.
In addition, Ceruzzi shall promptly notify Inland, in writing, of (i) any
default beyond applicable grace periods committed by any tenants (other than
defaults in the payment of rent, adjustments for which will be made at
Closing); and (ii) any written notices received from any tenants regarding
Ceruzzi’s defaults or any tenant’s intention to terminate its lease.

 

6.2          Mutual Cooperation. Ceruzzi and Inland
agree to cooperate fully with one another in connection with the transactions
contemplated herein during the Due Diligence Period. In furtherance of the
foregoing, Ceruzzi agrees to (a) to provide contact information to Inland with
respect to persons who prepared previous surveys, environmental assessments and
appraisals, if any, with respect to the Property, (b) to execute all documents
(at no cost to Ceruzzi) to effectuate the transfer to Inland of any Warranties
and (c) to use its commercially reasonable efforts (which for purposes of this
Section 6.2 shall not require Ceruzzi to incur unreasonable costs) to obtain
the REA Estoppels.

 

Article
7

 

Risk
of Loss

 

7.1          Casualty.

 

(a)           If,
at or prior to Closing, any damage, destruction or casualty shall have occurred
as to which a tenant (i) has the responsibility to repair and restore the
Property under its respective Lease and (ii) has no right of rent abatement or
offset, in full or in part as a result of such casualty, the parties shall
proceed to Closing in accordance with the terms of this Agreement without any
reduction in the Contribution Value.

 

(b)           (i)
If, at or prior to Closing, any other damage, destruction or casualty, of any
Property, occurs, which damage, destruction or casualty creates loss valued at
ten (10%) percent or less of the Contribution Value, then this Agreement shall
continue in full force and effect and Ceruzzi shall give written notice of such
event to Inland (which notice will include a description of the nature, extent
and estimated amount of damage or loss suffered by the Property in connection
with such casualty), in which event the parties shall proceed to Closing in
accordance with the terms of this Agreement without any reduction in the
Contribution Value, and Ceruzzi shall (A) assign to Inland at Closing all of
its rights to and interest in all proceeds of casualty insurance and business
interruption and rent loss insurance relating to the period from and after the
date of Closing payable on account of such casualty, (B) pay to Inland at
Closing an amount 

 

21

 

equal to the full amount
of the deductible applicable under such insurance policies, by way of a credit
against the Contribution Value equal to the deductible unless tenants are
responsible for the deductible in CAM. Ceruzzi shall cooperate reasonably with
Inland before and after Closing to file and process an insurance claim for all
insured loss arising out of such casualty. Ceruzzi shall not settle or adjust
any such insurance claim without Inland’s prior written consent. Ceruzzi shall
have no obligation to repair or restore any Property other than necessary
measures as may be necessary to secure any such Property from natural elements,
vandalism or further deterioration.

 

(ii)           If,
at or prior to Closing, any other damage, destruction or casualty, of the
Property, occurs which damage, destruction or casualty creates a loss valued in
excess of ten (10%) percent of the Contribution Value allocated to such
Property, then Ceruzzi shall notify Inland in writing (hereinafter referred to
as a “Ceruzzi Casualty Notice”), which Ceruzzi Casualty Notice will include a
description of the nature, extent and estimated amount of damage or loss
suffered by the affected Property in connection with such casualty. Within ten
(10) days after receipt of the Ceruzzi Casualty Notice, Inland shall notify
Ceruzzi, in writing, as to whether (A) Inland will elect to proceed to Closing
or (B) Inland will elect to terminate this Agreement. If Inland does not make
such written election within the time period specified above, Inland will be
deemed to have made the election set forth in clause (A).

 

(iii)          If
Inland makes (or is deemed to have made) the election set forth clause (A) of
Section 7.1(b)(ii) above, then this Agreement shall continue in full force and
effect and the parties shall proceed to Closing in accordance with the terms of
this Agreement without any reduction in the Contribution Value, and the Ceruzzi
shall (A) assign to Inland at Closing all of its rights to and interest in all
proceeds of casualty insurance and business interruption and rent loss
insurance relating to the period from and after the date of Closing payable on
account of such casualty and (B) pay to Inland at Closing an amount equal to
the full amount of the deductible applicable under such insurance policies, by
way of a credit against the Contribution Value equal to the deductible. Ceruzzi
shall cooperate reasonably with Inland before and after Closing to file and
process an insurance claim for all insured loss arising out of such casualty.
Ceruzzi shall not settle or adjust any such insurance claim without Inland’s
prior written consent. The Ceruzzi shall have no obligation to repair or
restore any Property other than necessary measures as may be necessary to
secure any such Property from natural elements, vandalism or further
deterioration.

 

7.2          Condemnation. If, at or prior to the time
of Closing, all or any portion of any Property shall be condemned or taken
pursuant to any governmental or other power of eminent domain, any written
notice of taking or condemnation with respect to all or any portion of a
Property is issued, or any proceedings are instituted by any governmental
authority having the power of eminent domain to take all or any portion of such
Property, then (a) Ceruzzi shall notify Inland in writing of such action, (b)
Inland shall proceed to closing with a reduction in the Contribution Value
equal to any condemnation award previously paid to Ceruzzi, (c) Ceruzzi shall
assign to Inland at the time of Closing all of such Ceruzzi’s right to any
unpaid condemnation awards and (d) Ceruzzi shall convey the entire Property (or
remainder thereof) to Inland.

 

22

 

ARTICLE
8

Remedies Upon Default

 

8.1          Time of Essence. If full performance of
this Agreement is not completed by the Closing Date, either party shall have
the right after such date to declare time to be of the essence of this
Agreement by giving notice of such election to the other party. Such notice
shall contain a declaration that time is of the essence and shall fix the time,
date and place of final settlement, which date may not be sooner than twenty
(20) days nor later than thirty (30) days following the effective date of
giving such notice.

 

8.2          Default by Inland. In the event the sale
of the Property as contemplated hereunder is not consummated due to Inland’s
default hereunder, Ceruzzi shall be entitled, as its sole remedy, to terminate
this Agreement and receive the Deposit as liquidated damages, and not as a
penalty, for the breach of this Agreement (which shall operate to terminate
this Agreement and release Inland and Ceruzzi from any and all liability
hereunder other than with respect to those representations, warranties and/or
indemnities which survive termination of this Agreement), it being agreed
between the parties hereto that the actual damages to Ceruzzi in the event of
such breach are difficult, if not impossible, to determine and the Deposit and
any accrued interest thereon, is a reasonable estimate thereof. Ceruzzi
expressly waives its right to seek compensatory or consequential damages in the
event of Inland’s default hereunder.

 

8.3          Default by Ceruzzi. In the event the sale
of the Property as contemplated hereunder is not consummated due to a default
by all Ceruzzi hereunder, Inland shall be entitled, at its election, as its
sole remedy, (a) to waive such default and close title in accordance with the
terms of this Agreement without any reduction of the Contribution Value, (b) to
receive the return of the Deposit which shall operate to terminate this
Agreement and release Inland and Ceruzzi from any and all liability hereunder
(other than with respect to those representations, warranties and/or
indemnities which survive termination of this Agreement), or (c) to enforce
specific performance of the Ceruzzi’s obligations to convey the Property to
Inland in accordance with the terms of this Agreement, including a claim for
reasonable attorney’s fees and costs of suit.

 

ARTICLE
9

 

Agents
and Commission

 

9.1          Brokers. With respect to the transaction
contemplated by this Agreement, Ceruzzi and Inland represent to the other party
that neither party has engaged a broker in regard to this transaction. In the
event that any claim for commission or finder’s fee is brought by any person or
entity as a consequence of the transaction contemplated hereby and as a result
of any action or omission of Ceruzzi or Inland, then Ceruzzi or Inland, as the
case may be, shall hold harmless the other party against any loss, cost or
expense of any nature, including, but not limited to, court costs and
reasonable attorney’s fees arising as a consequence of the claim for the
commission or fee. The terms of this Section 9.1 

 

23

 

shall survive the Closing
or termination of this Agreement.

 

ARTICLE
10

Miscellaneous

 

10.1        Notices.
Every notice or other communication required or contemplated by this Agreement
by any party shall be in writing and shall be delivered by (i) personal
delivery, (ii) internationally recognized express courier, such as Federal
Express, UPS or DHL or (iii) facsimile with a confirmation copy sent
simultaneously in the manner contemplated by clauses (i) or (ii) of this
Section 10.1, in each case addressed to the party for whom intended at the
following address:

 

	
  (i)

  	
   

  	
  If to Inland:

  	
   

  	
  Inland Real Estate
  Acquisitions, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
  2901 Butterfield Road

  
	
   

  	
   

  	
   

  	
   

  	
  Oak Brook, Illinois
  60523

  
	
   

  	
   

  	
   

  	
   

  	
  Attn:

  	
  G. Joseph Cosenza,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
  Fax No.: 630-218-4935

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  With a copy to:

  	
   

  	
  Inland Real Estate
  Group, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
  2901 Butterfield Road

  
	
   

  	
   

  	
   

  	
   

  	
  Oak Brook, Illinois
  60523

  
	
   

  	
   

  	
   

  	
   

  	
  Attn: Robert Baum,
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
  Fax No.: 630-218-4900
  and 630-571-2360

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  If to Ceruzzi:

  	
   

  	
  c/o Ceruzzi Holdings,
  LLC

  
	
   

  	
   

  	
   

  	
   

  	
  1720 Post Road

  
	
   

  	
   

  	
   

  	
   

  	
  Fairfield, Connecticut
  06824

  
	
   

  	
   

  	
   

  	
   

  	
  Attn: Arthur W. Hooper,
  Jr.

  
	
   

  	
   

  	
   

  	
   

  	
  Fax No.: 203-256-4019

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If to the

  	
   

  	
   

  
	
   

  	
   

  	
  Escrow Agent:

  	
   

  	
  Chicago Title Insurance
  Company

  
	
   

  	
   

  	
   

  	
   

  	
  171 N. Clark Street

  
	
   

  	
   

  	
   

  	
   

  	
  Chicago, IL 60601

  
	
   

  	
   

  	
   

  	
   

  	
  Attn: Nancy Castro

  
	
   

  	
   

  	
   

  	
   

  	
  Fax No.: 312-223-2108

  

 

or at such other address
as the intended recipient previously shall have designated by written notice to
the other parties. Notice by registered or certified mail shall be effective on
the date it is officially recorded as delivered to the intended recipient by
return receipt or equivalent, and in the absence of such record of delivery,
the effective date shall be 

 

24

 

presumed to have been the
third (3rd) business day after it was deposited in the mail. All notices and
other communications required or contemplated by this Agreement to be delivered
in person or sent by courier shall be deemed to have been delivered to and
received by the addressee and shall be effective on the date of personal
delivery; notices delivered by facsimile with simultaneous confirmation copy by
registered or certified or equivalent mail or courier shall be deemed delivered
to and received by the addressee and effective on the date sent. Notice not
given in writing shall be effective only if acknowledged in writing by a duly
authorized representative of the party to whom it was given.

 

10.2        No Recording. Neither Ceruzzi nor Inland
shall cause or permit this Agreement nor any memorandum hereof to be filed of
record in any office or place of public record and if Inland or Ceruzzi shall
fail to comply with the terms hereof by recording or attempting to record the
same, such act shall not operate to bind or cloud title to the Property. If
either party or counsel acting for either party shall cause or permit this
Agreement, a copy hereof, or a memorandum hereof to be filed in an office of
place of public record, the other party, at its option, may treat such act as a
default under this Agreement.

 

10.3        No Agency. This Agreement shall not
constitute an appointment of any of the parties hereto as the legal
representative or agent of any other party hereto nor shall any party hereto
have any right or authority to assume, create or incur in any manner any
obligation or other liability of any kind, express or implied, against, or in
the name or on behalf of, the other party hereto.

 

10.4        Severability. In the event any provision of
this Agreement shall be determined to be invalid or unenforceable under
applicable law, all other provisions of this Agreement shall continue in full
force and effect unless such invalidity or unenforceability causes substantial
deviation from the underlying intent of the parties expressed in this Agreement
or unless the invalid or unenforceable provisions comprise an integral part of,
or in inseparable from, the remainder of this Agreement. If this Agreement
continues in full force and effect as provided above, the parties shall replace
the invalid provision with a valid provision which corresponds as far as
possible to the spirit and purpose of the invalid provision.

 

10.5        Assignment and Succession. Except as
expressly permitted herein, no party may assign or otherwise transfer any
rights, interests or obligations under this Agreement (excluding an assignment
resulting by operation of law as a result of the merger or consolidation of any
such party) without the prior written consent of the other party, which consent
may be withheld in the sole and absolute discretion of such party for any
reason whatsoever or for no reason. This Agreement shall inure to the benefit
of the parties hereto and to their respective permitted successors and assigns.
Notwithstanding the foregoing, within ten (10) days prior to Closing, Inland
shall have the right to notify Ceruzzi of the names of its nominee entity
taking title to the Property.

 

10.6        Amendments and Waivers. No amendment,
modification, termination or waiver of any provision of this Agreement or
consent to any departure by any party 

 

25

 

therefrom, shall in any
event be effective without the written concurrence of the other party hereto.
Any waiver or consent shall be effective only in the specific instance and for
the specific purpose for which it is given. No notice to or demand on any party
in any case shall entitle any other party to any other or further notice or
demand in similar or other circumstances.

 

10.7        Further Assurances. Each of the parties
hereto agrees that, from and after the Closing, upon the reasonable request of
the other party hereto and without further consideration, such party will
execute and deliver to such other party such documents and further assurances
and will take such other actions (without cost to such party) as such other
party may reasonably request in order to carry out the purpose and intention of
this Agreement including but not limited to the effective consummation of the
transactions contemplated under the provisions of this Agreement. The
provisions of this Section 10.7 shall survive Closing.

 

10.8        Absence of Third-Party Beneficiaries. No provisions
of this Agreement, express or implied, are intended or shall be construed to
confer upon or give to any person or entity other than the parties hereto, any
rights, remedies or other benefits under or by reason of this Agreement unless
specifically provided otherwise herein, and except as so provided, all
provisions hereof shall be personal solely between the parties to this
Agreement.

 

10.9        Governing Law; Jurisdiction. The validity,
construction, performance and enforceability of this Agreement shall be
governed in all respects by the laws of the State of Connecticut, without
reference to the choice-of-law principles thereof. Inland and Ceruzzi agree to
submit to personal jurisdiction in the state of Connecticut in any action or
proceeding arising out of this Agreement. In furtherance of such agreement, the
parties hereto agree and consent that without limiting other methods of
obtaining jurisdiction, personal jurisdiction over the each party in any such
action or proceeding may be obtained within or without the jurisdiction of any
court located in Connecticut and that any process or notice of motion or other
application to any such court in connection with any such action or proceeding
may be served upon the party by registered or certified mail to, or by personal
service at, the respective addresses listed in Section 10.1 herein (or as
otherwise established by notice to the other party), whether such address may
be within or without the jurisdiction of any such court. The parties hereto
further agree that the venue of any litigation arising in connection with this
Agreement or in respect of any of the obligations of the parties hereto under
this Agreement, shall, to the extent permitted by law, be in Fairfield County,
Connecticut.

 

10.10      Interpretation. This Agreement, including any
exhibits, schedules and amendments, has been negotiated at arm’s length and
between persons sophisticated and knowledgeable in the matters dealt with in
this Agreement. Each party has been represented by experienced and knowledgeable
legal counsel. Accordingly, any rule of law or legal decision that would
require interpretation of any ambiguities in this Agreement against the party
that has drafted it is not applicable and is waived. The provisions of this
Agreement shall be interpreted in a reasonable manner to effect the purposes of
the parties and this Agreement.

 

26

 

10.11      Entire Agreement. The terms of this Agreement
and the other writings referred to herein (including but not limited to all
schedules, exhibits, addenda, and related agreements) and delivered by the
parties hereto are intended by the parties to be the final expression of their
agreement with respect to the subject matter hereof and may not be contradicted
by evidence of any prior or contemporaneous agreement. The parties further
intend that this Agreement, together with the exhibits and schedules hereto
shall constitute the complete and exclusive statement of its terms and shall
supersede any prior agreement with respect to the subject matter hereof.

 

10.12      Counterparts. This Agreement may be executed
simultaneously in multiple counterparts, each of which shall be deemed an
original, but all of which taken together shall constitute one and the same
instrument. Execution and delivery of this Agreement by exchange of facsimile
copies bearing the facsimile signature of a party hereto shall constitute a
valid and binding execution and delivery of this Agreement by such party. Such
facsimile copies shall constitute enforceable original documents.

 

10.13      Expenses. Each of the parties agrees to pay
its own expenses in connection with the transactions contemplated by this
Agreement, including without limitation legal, consulting, accounting and
investment banking fees, whether or not such transactions are consummated.

 

10.14      Consents. Whenever this Agreement requires or
permits consent by or on behalf of any party hereto, such consent shall be
given in writing.

 

10.15      Headings. The article and section headings
contained in this Agreement are for reference purposes only and will not affect
in any way the meaning or interpretation of this Agreement.

 

10.16      Waiver of Trial by Jury. EACH PARTY HEREBY
WAIVES, IRREVOCABLY AND UNCONDITIONALLY, TRIAL BY JURY IN ANY ACTION BROUGHT ON,
UNDER OR BY VIRTUE OF OR RELATING IN ANY WAY TO THIS AGREEMENT OR ANY OF THE
DOCUMENTS EXECUTED IN CONNECTION HEREWITH, THE PROPERTY, OR ANY CLAIMS,
DEFENSES, RIGHTS OR SET-OFF OR OTHER ACTIONS PERTAINING HERETO OR TO ANY OF THE
FOREGOING.

 

10.17      Confidentiality.

 

(a)           Inland
shall use is best efforts, and cause its attorneys, representatives and
consultants (hereinafter collectively referred to as the “Inland Parties”)
to use their best efforts, to use all information, documents, surveys, leases
and other materials provided to them by the Ceruzzi hereunder (hereinafter
collectively referred to as the “Due Diligence Materials”) exclusively
for the purpose of evaluating the merits of a possible purchase of the Property
as contemplated by this Agreement and not for any other purpose whatsoever.
Inland further agrees, except as may be required by applicable law, that it
will not disclose any Due Diligence Materials or use them to the detriment of
any Ceruzzi.

 

27

 

(b)           In
the event this Agreement is terminated prior to the consummation of the
purchase and sale contemplated hereunder, all Due Diligence Materials and all
copies thereof will be returned to Ceruzzi promptly. All analyses, compilation,
studies or other documents prepared by or for Inland and reflecting any Due
Diligence Material or otherwise based thereon will be (at Inland’s option)
either (i) destroyed or (ii) retained by Inland in accordance with the
confidentiality restrictions set forth in this Section 10.17.

 

(c)           Inland
acknowledges that the Due Diligence Materials are proprietary in nature and
that Ceruzzi would suffer significant and irreparable harm in the event of the
misuse or disclosure of the Due Diligence Materials. Without affecting any other
rights or remedies that either party may have, Inland acknowledges and agrees
that Ceruzzi shall be entitled to seek the remedies of injunction, specific
performance and other equitable relief for any breach or threatened breach of
the provisions of this Agreement relating to confidentiality by any Inland
Party.

 

(d)           Inland
hereby indemnifies and holds harmless Ceruzzi from and against all loss,
liability, claim, damage and expense arising out of any breach of this Section
10.17 by Inland or by any Inland Party.

 

(e)           Neither
party shall issue any press release or public statement with respect to the
transactions contemplated by this Agreement without the prior consent of the
other party, except to the extent such release or statement is required by law
or the regulations of the Securities and Exchange Commission or the New York
Stock Exchange, and (ii) after Closing, any such release or statement issued by
Ceruzzi or Inland shall be subject to the review and approval of the other
respective party (which approval shall not be unreasonably withheld). If
Ceruzzi or Inland is required by law to issue a release or statement, such
party shall, at least two (2) Business Days prior to the issuance of same,
deliver a copy of the proposed release to the other party for its review.

 

(f)            This
Section 10.17 shall survive Closing and any termination of this
Agreement.

 

10.18      Drafts not an Offer to Enter into a Legally
Binding Contract. The submission of a draft, or a marked up draft, of this
Agreement by one party to another is not intended by either party to be an
offer to enter into a legally binding contract with respect to the purchase and
sale of the Property. The parties shall be legally bound with respect to the
purchase and sale of the Property pursuant to the terms of this Agreement only
if and when the parties have been able to negotiate all of the terms and
provisions of this Agreement in a matter acceptable to each of the parties in
their respective sole discretion, including, without limitation, all of the Exhibits
hereto, and Ceruzzi and Inland have fully executed and delivered to each other
a counterpart of this Agreement, including, without limitation, all Exhibits
hereto.

 

10.19      Exculpation. This Agreement and all
documents, agreement, understandings, and arrangements relating to this
transaction have been executed by the undersigned in his capacity as Manager of
each seller limited liability company, and neither the Manager executing this
Agreement nor the members, managers or officers of the Ceruzzi shall be bound
or have any personal liability hereunder. Neither Ceruzzi, on 

 

28

 

the one hand, nor Inland,
on the other hand, will seek recourse or commence any action against the
officer of the other executing this Agreement or any of the members, managers
or officers of the other, or any of their personal assets, for the performance
or payment of any obligation hereunder or thereunder. The foregoing shall also
apply to any future documents, agreement, understandings, arrangements and
transactions between or among the parties.

 

10.20      Intentionally Deleted.

 

10.21      Business Day. As used herein, the term
Business day means any day other than a Saturday, Sunday and any other day
which is a legal holiday in the State of Connecticut on which offices of the
State of Connecticut are routinely scheduled to be closed.

 

IN
WITNESS WHEREOF, the parties hereto have set executed or
caused their duly authorized representatives to execute this Agreement of
Contribution as of the day and year first written above.

 

3-SIGNATURE
PAGES FOLLOW

 

 

29

 

	
   

  	
  CERUZZI:

  
	
   

  	
  CE
  CUMBERLAND 2001 LLC

  
	
   

  	
  By: CE
  Investment Associates 2001, LLC,

  
	
   

  	
  Its:
  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As
  Its:

  	
   

  	
   

  
					

 

	
   

  	
  MALDEN
  CE 2001 LLC

  
	
   

  	
  By: CE
  Investment Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As
  Its:

  	
   

  	
   

  
					

 

	
   

  	
  SWAMPSCOTT
  CE 2001 LLC

  
	
   

  	
  By: CE
  Investment Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As
  Its:

  	
   

  	
   

  
					

 

	
   

  	
  CE
  SOUTHINGTON 2001 LLC

  
	
   

  	
  By: CE
  Investment Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As
  Its:

  	
   

  	
   

  
						

 

30

 

	
   

  	
  FRAMINGHAM
  CE 2001 LLC

  
	
   

  	
  By: CE
  Investment Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CE
  BRISTOL 2001 LLC

  
	
   

  	
  By: CE
  Investment Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CE
  SICKLERVILLE 2001 LLC

  
	
   

  	
  By: CE
  Investment Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CE
  GREENVILLE 2001 LLC

  
	
   

  	
  By: CE
  Investment Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As
  Its:

  	
   

  	
   

  
						

 

31

 

	
   

  	
  INLAND:

  
	
   

  	
   

  
	
   

  	
  INLAND
  REAL ESTATE ACQUISITIONS, INC.,

  
	
   

  	
  an
  Illinois corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  G.
  Joseph Cosenza,

  
	
   

  	
  President

  

 

 

The undersigned hereby
joins in this Agreement solely in its capacity as Escrow Agent and solely to
evidence its agreement to be bound by the terms of Sections 1.2(b) and (d)
hereof and acknowledge receipt of the $1,000,000.00 Good Faith Deposit.

 

	
   

  	
  Chicago Title Insurance
  Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

32

 

FIRST
AMENDMENT

 

CONTRACT

 

	
  Gene Filice

  	
   

  	
   

  

 

	
  From:

  	
  “Benvenuto, Charles
  <cbenvenuto@inlandgroup.com>

  
	
  To:

  	
  <gfilice@benvenutolaw.com>;
  “Cosenza, Joseph” <joe@inlandgroup.com>; “Anderson-Cox, Sharon”
  <cox@inlandgroup.com>

  
	
  Sent:

  	
  Friday, April 21, 2006
  5:10 PM

  
	
  Subject:

  	
  Fw: Ahold Portfolio
  Sale

  

 

	
  Sent from my BlackBerry
  Wireless Handheld

  
	
   

  
	
  Charles J. Benvenuto,
  Esq.

  
	
  2901 Butterfield Road

  
	
  Oak Brook, Illinois
  60523

  

 

Orignial Message

From: Art Hooper

To: Benvenuto, Charles

Sent: Fri Apr 21 15:49:48
2006

Subject: Ahold Portfolio
Sale

 

This to confirm the
conversation between Joe Cosenza and Lou Ceruzzi that the due diligence period
is extended through April 26, 2006.  It
is our understanding that Inland American will be using the same lenders, i.e.
Nomura and Principal, and that the form of SNDA will remain the same.  It is also our understanding that the
acquiring entities will be named Inland American Ceruzzi
       L.L.C.

 

Arthur W. Hooper, Jr.

 

Ceruzzi Holdings LLC

 

Executive Vice
President/General Counsel

 

1720 Post Road

 

Fairfield, CT 06824

 

203-256-4027

 

(F) 203-256-4001

 

hoopera@starwoodceruzzi.com

 

33

 

Filice, Gene

 

	
  From:

  	
  Benvenuto, Charles

  
	
  Sent:

  	
  Friday, April 21, 2006
  3:53 PM

  
	
  To:

  	
  Filice, Gene;
  ‘cbenvenuto@benvenutolaw.com’

  
	
  Subject:

  	
  Fw: Ahold Portfolio
  Sale

  

 

FYI

 

Original Message

From: Art
Hooper [mailto:hoopera@starwoodceruzzi.com]

Sent: Friday,
April 21, 2006 3:50 PM

To: Benvenuto,
Charles

Subject: Ahold
Portfolio Sale

 

This to confirm the
conversation between Joe Cosenza and Lou Ceruzzi that the due diligence period
is extended through April 26, 2006.  It
is our understanding that Inland American will be using the same lenders, i.e.
Nomura and Principal, and that the form of SNDA will remain the same.  It is also our understanding that the
acquiring entities will be named Inland American Ceruzzi
     L.L.C.

 

Arthur W. Hooper, Jr.

Ceruzzi Holdings LLC

Executive Vice
President/General Counsel

1720 Post Road

Fairfield, CT 06824

203-256-4027

(F) 203-256-4001

hoopera@starwoodceruzzi.com

 

34

 

SECOND AMENDMENT TO
AGREEMENT OF CONTRIBUTION

 

THIS SECOND
AMENDMENT TO AGREEMENT OF CONTRIBUTION (the “Second Amendment”) is made and
entered into as of the 26 day of April, 2006, by between CE Cumberland 2001 LLC, and Malden CE 2001 LLC, and Swampscott CE 2001 LLC, and CE Southington 2001 LLC, and Framingham CE 2001 LLC, and CE Bristol 2001 LLC, and CE Sicklerville 2001 LLC, and CE Greenville 2001 LLC, each a Delaware
limited liability company, having an address at c/o Ceruzzi Holdings, LLC, 1720
Post Road, Fairfield, CT 06824 (hereinafter collectively referred to as “Ceruzzi”), and Inland Real Estate Acquisitions, Inc., an
Illinois corporation having an address at 2901 Butterfield Road, Oak Brook,
Illinois 60523 (hereinafter referred to as “Inland”).

 

WITNESSETH:

 

WHEREAS, Seller
and Buyer entered into that certain Agreement of Contribution dated as of
February 24, 2006, as amended on April 21, 2006 (collectively, the
“Agreement”), for the sale and purchase of the Property described by the
Agreement.

 

WHEREAS, Buyer and
Seller have mutually agreed to amend certain provisions of the Agreement.

 

NOW THEREFORE, in
consideration of the foregoing, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Buyer and Seller agree
as follows:

 

1. Exhibit K of
the Agreement is amended by substituting “Inland American Real Estate Trust,
Inc.,” in the place of “Inland Western Retail Real Estate Trust, Inc.,” (
“IWEST”) in each instance IWEST appears.

 

2. Exhibit L,
Exhibit M, and Exhibit N of the Agreement are hereby amended by substituting
attached Exhibit L-1, Exhibit M-1, and Exhibit N-1, therefor.

 

3. Section
1.2(f)(ii)B of the Agreement is hereby amended by substituting the year “2010”
for the year “2008,” in line 3-thereof.

 

4. Section 2.1(b)
of the Agreement is hereby amended by substituting the date “May 10, 2006,” for
the date “April 26, 2006,” in line 9 thereof.

 

 

5. References in
the Agreement to “Giant Eagle, Sicklerville, New Jersey,” shall be amended to
refer to “Stop & Shop, Sicklerville, New Jersey,” in each instance a
reference to Giant Eagle appears in the Agreement.

 

6. This Second
Amendment may be executed in one or more counterparts, each of which shall
constitute an original and all of which taken together shall constitute one
Second Amendment. Each person executing this Second Amendment represents that
such person has full authority and legal power to do so and bind the party on
whose behalf he or she has executed this Second Amendment. Any counterpart to
this Second Amendment may be executed by facsimile copy or email transmission
and shall be binding on the parties.

 

7. Except as
herein amended and as previously amended, the terms and conditions of the
Agreement remain unmodified and in full force and effect.

 

*     *     *     *     *

 

(Signatures on following 2-pages)

 

2

 

	
   

  	
   

  	
   

  	
  CERUZZI:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  CE
  CUMBERLAND 2001 LLC

  
	
   

  	
   

  	
   

  	
  By:
  CE Investment Associates 2001, LLC,

  
	
   

  	
   

  	
   

  	
  Its:
  Managing Member

  
	
   

  	
   

  	
  

  	
   

  	
  By:

  	
  

  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  MALDEN CE 2001 LLC

  
	
   

  	
   

  	
   

  	
  By:
  CE Investment Associates 2001, LLC,

  
	
   

  	
   

  	
   

  	
  Its:
  Managing Member

  
	
   

  	
   

  	
  

  	
   

  	
  By:

  	
  

  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  SWAMPSCOTT
  CE 2001 LLC

  
	
   

  	
   

  	
   

  	
  By:
  CE Investment Associates 2001, LLC,

  
	
   

  	
   

  	
   

  	
  Its:
  Managing Member

  
	
   

  	
   

  	
  

  	
   

  	
  By:

  	
  

  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  CE SOUTHINGTON 2001 LLC

  
	
   

  	
   

  	
   

  	
    By:
  CE Investment Associates 2001, LLC,

  
	
   

  	
   

  	
   

  	
    Its:
  Managing Member

  
	
   

  	
   

  	
  

  	
   

  	
    By:

  	
  

  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
    Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
    As
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  FRAMINGHAM CE 2001 LLC

  
	
   

  	
   

  	
   

  	
    By:
  CE Investment Associates 2001, LLC,

  
	
   

  	
   

  	
   

  	
    Its:
  Managing Member

  
	
   

  	
   

  	
  

  	
   

  	
    By:

  	
  

  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
    Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
    As
  Its:

  	
   

  	
   

  
												

 

3

 

	
   

  	
   

  	
   

  	
  CE BRISTOL 2001 LLC

  
	
   

  	
   

  	
   

  	
  By:
  CE Investment Associates 2001, LLC,

  
	
   

  	
   

  	
   

  	
  Its:
  Managing Member

  
	
   

  	
   

  	
  

  	
   

  	
  By:

  	
  

  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  CE SICKLERVILLE 2001 LLC

  
	
   

  	
   

  	
   

  	
  By:
  CE Investment Associates 2001, LLC,

  
	
   

  	
   

  	
   

  	
  Its:
  Managing Member

  
	
   

  	
   

  	
  

  	
   

  	
  By:

  	
  

  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  CE GREENVILLE 2001 LLC

  
	
   

  	
   

  	
   

  	
  By:
  CE Investment Associates 2001, LLC,

  
	
   

  	
   

  	
   

  	
  Its:
  Managing Member

  
	
   

  	
   

  	
  

  	
   

  	
  By:

  	
  

  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  INLAND:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  INLAND REAL ESTATE ACQUISITIONS, INC.,

  
	
   

  	
   

  	
   

  	
  an Illinois corporation

  
	
   

  	
   

  	
  

  	
   

  	
  By:

  	
  

  /s/ G. Joseph Cosenza

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  G. Joseph Cosenza,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  President

  
													

 

The undersigned
hereby joins in this Second Amendment solely in its capacity as Escrow Agent
and solely to evidence its agreement to be bound by the terms of Sections
1.2(b) and (d) and 2.4 hereof and acknowledge receipt of the $1,000,000.00
Good Faith Deposit.

 

	
   

  	
   

  	
   

  	
  Chicago Title Insurance Company

  
	
   

  	
   

  	
  

  	
   

  	
  By:

  	
  

  /s/ Nancy R. Castro

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Nancy R. Castro

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  As
  Its:

  	
  Assistant
  Vice President

  	
   

  
								

 

4

 

THIRD AMENDMENT TO

AGREEMENT
OF CONTRIBUTION

 

THIS
THIRD AMENDMENT TO AGREEMENT OF CONTRIBUTION (hereinafter
referred to as the “Amendment”),
dated as of the           
day of May, 2006, is entered into by and between CE
Cumberland 2001 LLC, and Malden CE 2001 LLC, and
Swampscott CE 2001 LLC, and CE Southington 2001 LLC, and Framingham
CE 2001 LLC, and CE Bristol 2001 LLC, and
CE Sicklerville 2001 LLC, and CE Greenville 2001 LLC, each a Delaware limited liability
company (hereinafter collectively referred to as “Ceruzzi”),
and Inland Real Estate Acquisitions, Inc., an
Illinois corporation (hereinafter referred to as “Inland”).

 

W I T N E
S S E T H:

 

WHEREAS, Ceruzzi
and Inland entered into that certain Agreement of Contribution dated as of the
24th day of February, 2006, as amended by letter agreement dated April 21,
2006, and by the Second Amendment to Agreement of Contribution dated April 26,
2006 (the “Agreement”), with regard to those
certain parcels of real property legally described in the Agreement; and

 

WHEREAS,
Ceruzzi and Inland have mutually agreed to amend certain provisions of the
Agreement.

 

NOW THEREFORE, in consideration of the foregoing, and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Inland and Ceruzzi agree as follows:

 

1.             Section
3.1 of the Agreement is modified by replacing the third sentence thereof with
the following:  “The Closing shall take
place on June 1, 2006 (hereinafter referred to as the “Closing Date”).”

 

2.             This
Amendment may be executed in one or more counterparts, each of which shall
constitute an original and all of which taken together shall constitute one
Amendment. Each person executing this Amendment represents that such person has
full authority and legal power to do so and bind the party on whose behalf he
or she has executed this Amendment. Any counterpart to this Amendment may be
executed by facsimile copy and shall be binding on the parties.

 

3.             The
remaining terms and conditions of the Agreement remain unmodified and in full
force and effect.

 

*              *              *              *              *

 

(Signatures
on following page)

 

1

 

	
   

  	
  INLAND:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INLAND
  REAL ESTATE ACQUISITIONS,

  INC., an Illinois corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

	
   

  	
  CERUZZI:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CE CUMBERLAND 2001 LLC

  
	
   

  	
  By: CE Investment
  Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MALDEN CE 2001 LLC

  
	
   

  	
  By: CE Investment
  Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SWAMPSCOTT CE 2001 LLC

  
	
   

  	
  By: CE Investment
  Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CE SOUTHINGTON 2001 LLC

  
	
   

  	
  By: CE Investment
  Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As Its:

  	
   

  	
   

  
							

 

2

 

	
   

  	
  FRAMINGHAM CE 2001 LLC

  
	
   

  	
  By: CE Investment
  Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As Its:

  	
   

  	
   

  
						

 

	
   

  	
  CE BRISTOL 2001 LLC

  
	
   

  	
  By: CE Investment
  Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As Its:

  	
   

  	
   

  
						

 

	
   

  	
  CE SICKLERVILLE 2001
  LLC

  
	
   

  	
  By: CE Investment
  Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As Its:

  	
   

  	
   

  
						

 

	
   

  	
  CE GREENVILLE 2001 LLC

  
	
   

  	
  By: CE Investment
  Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As Its:

  	
   

  	
   

  
						

 

3

 

FOURTH AMENDMENT TO AGREEMENT OF
CONTRIBUTION

 

THIS FOURTH
AMENDMENT TO AGREEMENT OF CONTRIBUTION (the “Fourth Amendment”) is made and
entered into as of the 1st day of June, 2006, by between CE  Cumberland
2001 LLC, and Malden CE 2001 LLC, and
Swampscott CE 2001 LLC, and CE Southington 2001 LLC, and Framingham CE 2001 LLC, and CE Bristol 2001 LLC, and CE Sicklerville 2001 LLC, and CE Greenville 2001 LLC, each a Delaware
limited liability company, having an address at c/o Ceruzzi Holdings, LLC, 1720
Post Road, Fairfield, CT 06824 (hereinafter collectively referred to as “Ceruzzi”), and Inland Real Estate Acquisitions, Inc., an
Illinois corporation having an address at 2901 Butterfield Road, Oak Brook,
Illinois 60523 (hereinafter referred to as “Inland”).

 

WITNESSETH:

 

WHEREAS, Seller
and Buyer entered into that certain Agreement of Contribution dated as of
February 24, 2006, as amended (collectively, the “Agreement”), for the sale and
purchase of the Property described by the Agreement.

 

WHEREAS, Buyer and
Seller have mutually agreed to amend certain provisions of the Agreement.

 

NOW THEREFORE, in
consideration of the foregoing, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Buyer and Seller agree
as follows:

 

1. Section
1.2(f)(ii)C of the Agreement is hereby amended by substituting the term
“seventh (7th)” for the term “fifth (5th),” in line
2-thereof.

 

2. Section 3.1 of
the Agreement is hereby amended by substituting the date “June 8th,
2006” for the date “June 1, 2006.”

 

3. This Fourth
Amendment may be executed in one or more counterparts, each of which shall
constitute an original and all of which taken together shall constitute one
Fourth Amendment. Each person executing this Fourth Amendment represents that
such person has full authority and legal power to do so and bind the party on
whose behalf he or she has executed this Fourth Amendment. Any counterpart to
this Fourth Amendment may be executed by facsimile copy or email transmission
and shall be binding on the parties.

 

 

4. Except as
herein amended and as previously amended, the terms and conditions of the
Agreement remain unmodified and in full force and effect.

 

*              *              *              *              *

 

(Signatures on following 2-pages)

 

2

 

	
   

  	
  CERUZZI:

  
	
   

  	
   

  
	
   

  	
  CE CUMBERLAND 2001 LLC

  
	
   

  	
  By: 

  	
  CE Investment Associates 2001, LLC,

  
	
   

  	
  Its:  Managing Member

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Name:

  	
  [ILLEGIBLE]

  	
   

  
	
   

  	
  As Its:

  	
  Exec. Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
  MALDEN CE 2001 LLC

  
	
   

  	
  By: CE Investments Associates 2001, LLC, 

  
	
   

  	
  Its: Managing Member

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SWAMPSCOTT CE 2001 LLC

  
	
   

  	
  By: CE Investment Associates 2001, LLC,

  
	
   

  	
  Its: Managing Member

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CE SOUTHINGTON 2001 LLC

  
	
   

  	
    By: CE Investment Associates 2001, LLC,

  
	
   

  	
    Its: Managing Member

  
	
   

  	
   

  
	
   

  	
    By: 

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
    Name:

  	
   

  	
   

  
	
   

  	
    As
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRAMINGHAM CE 2001 LLC

  
	
   

  	
    By: CE Investment Associates 2001, LLC,

  
	
   

  	
     Its: Managing Member

  
	
   

  	
   

  
	
   

  	
    By: 

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
    Name:

  	
   

  	
   

  
	
   

  	
    As
  Its:

  	
   

  	
   

  
							

 

3

 

	
   

  	
  CE BRISTOL 2001 LLC

  
	
   

  	
  By: CE Investment Associates 2001, LLC,

  
	
   

  	
  Its: Managing Member

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CE SICKLERVILLE 2001 LLC

  
	
   

  	
  By: CE Investment Associates 2001, LLC,

  
	
   

  	
  Its: Managing Member

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   CE GREENVILLE 2001 LLC

  
	
   

  	
  By: CE Investment Associates 2001, LLC,

  
	
   

  	
   Its: Managing Member

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  As
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INLAND:

  
	
   

  	
   

  
	
   

  	
  INLAND REAL ESTATE ACQUISITIONS, INC.,

  
	
   

  	
  an Illinois corporation

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ G. Joseph Cosenza

  	
   

  
	
   

  	
   

  	
  G. Joseph Cosenza,

  
	
   

  	
   

  	
  President

  
							

 

The undersigned
hereby joins in this Fourth Amendment solely in its capacity as Escrow Agent
and solely to evidence its agreement to be bound by the terms of Sections 1.2(b) and
(d) and 2.4 hereof and acknowledge receipt of the $1,000,000.00 Good Faith
Deposit.

 

	
   

  	
  Chicago
  Title Insurance Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Nancy R. Castro

  	
   

  
	
   

  	
  Name:

  	
  Nancy R. Castro

  	
   

  
	
   

  	
  As Its:

  	
  Assistant Vice
  President

  	
   

  
					

 

4

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