Document:

Exhibit 10.16

PRESIDENTIAL REALTY CORPORATION

2005 RESTRICTED STOCK PLAN

                1.             Purposes of the Plan. The purposes of this Plan are to attract and retain the best available personnel, to provide additional
incentives to Employees, Directors and Consultants and to promote the success of the Company’s
business.

                2.             Definitions. The following definitions shall apply as used herein and in the individual Award Agreements except
as defined otherwise in an individual Award Agreement. In the event a term is separately defined
in an individual Award Agreement, such definition shall supercede the definition contained in this
Section 2.

                                (a)           “Administrator” means the Board or any of the Committees appointed to administer the Plan.

                                (b)           “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 promulgated under
the Exchange Act.

                                (c)           “Applicable Laws” means the legal requirements relating to the Plan and the Awards under applicable provisions
of federal securities laws, state corporate and securities laws, the Code, the rules of any applicable
stock exchange or national market system, and the rules of any non-U.S. jurisdiction applicable to
Awards granted to residents therein. 

                                (d)           “Award” means the grant of Restricted Stock under the Plan.

                                (e)           “Award Agreement” means the written agreement evidencing the grant of an Award executed by the Company and the
Grantee, including any amendments thereto.

                                (f)            “Board” means the Board of Directors of the Company.

                                (g)           “Change in Control” means a change in ownership or control of the Company effected through either of the following
transactions:

                                                (i)            the direct or indirect acquisition
by any person or related group of persons (other than an acquisition from or by the Company or by
a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is
controlled by, or is under common control with, the Company) of beneficial ownership (within the
meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent
(50%) of the total combined voting power of the Company’s outstanding securities pursuant to
a tender or exchange offer made directly to the Company’s stockholders which a majority of the
Continuing Directors who are not Affiliates or Associates of the offeror do not recommend such stockholders
accept, or

	

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                                                (ii)           a change in the composition of
the Board over a period of twelve (12) months or less such that a majority of the Board members (rounded
up to the next whole number) ceases, by reason of one or more contested elections for Board membership,
to be comprised of individuals who are Continuing Directors.

                                (h)           “Code” means the Internal Revenue Code of 1986, as amended.

                                (i)            “Committee” means any committee composed of members of the Board appointed by the Board to administer the
Plan.

                                (j)            “Common Stock” means the Class B Common Stock of the Company.

                                (k)           “Company” means Presidential Realty Corporation, a Delaware corporation, or any successor entity that
adopts the Plan in connection with a Corporate Transaction.

                                (l)            “Consultant” means any person (other than an Employee or a Director, solely with respect to rendering services
in such person’s capacity as a Director) who is engaged by the Company or any Related Entity
to render consulting or advisory services to the Company or such Related Entity. 

                                (m)          “Continuing Directors” means members of the Board who either (i) have been Board members continuously for a period
of at least twelve (12) months or (ii) have been Board members for less than twelve (12) months
and were elected or nominated for election as Board members by at least a majority of the Board members
described in the immediately preceding clause (i) who were still in office at the time such
election or nomination was approved by the Board.

                                (n)           “Continuous Service” means that the provision of services to the Company or a Related Entity in any capacity of Employee,
Director or Consultant is not interrupted or terminated. In jurisdictions requiring notice in advance
of an effective termination as an Employee, Director or Consultant, Continuous Service shall be deemed
terminated upon the actual cessation of providing services to the Company or a Related Entity notwithstanding
any required notice period that must be fulfilled before a termination as an Employee, Director or
Consultant can be effective under Applicable Laws. A Grantee’s Continuous Service shall be deemed
to have terminated either upon an actual termination of Continuous Service or upon the entity for
which the Grantee provides services ceasing to be a Related Entity. Continuous Service shall not
be considered interrupted in the case of (i) any approved leave of absence, (ii) transfers
among the Company, any Related Entity, or any successor, in any capacity of Employee, Director or
Consultant, or (iii) any change in status as long as the individual remains in the service of
the Company or a Related Entity in any capacity of Employee, Director or Consultant (except as otherwise
provided in the Award Agreement). An approved leave of absence shall include sick leave, military
leave, or any other authorized personal leave. 

                                (o)           “Corporate Transaction” means any of the following transactions, provided, however, that the Administrator shall determine
under parts (iv) and (v) whether multiple transactions are related, and its determination shall be
final, binding and conclusive: 

	

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                                                (i)            a merger or consolidation
in which the Company is not the surviving entity, except for a transaction the principal purpose
of which is to change the state in which the Company is incorporated;

                                                (ii)           the sale, transfer or other disposition
of all or substantially all of the assets of the Company;

                                                (iii)          the complete liquidation or dissolution
of the Company; 

                                                (iv)          any reverse merger or series of related
transactions culminating in a reverse merger (including, but not limited to, a tender offer followed
by a reverse merger) in which the Company is the surviving entity but (A) the shares of Common
Stock outstanding immediately prior to such merger are converted or exchanged by virtue of the merger
into other property, whether in the form of securities, cash or otherwise, or (B) in which securities
possessing more than fifty percent (50%) of the total combined voting power of the Company’s
outstanding securities are transferred to a person or persons different from those who held such
securities immediately prior to such merger or the initial transaction culminating in such merger,
but excluding any such transaction or series of related transactions that the Administrator determines
shall not be a Corporate Transaction; or

                                                (v)           acquisition in a single or series
of related transactions by any person or related group of persons (other than the Company or by a
Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3
of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined
voting power of the Company’s outstanding securities but excluding any such transaction or series
of related transactions that the Administrator determines shall not be a Corporate Transaction.

                                (p)           “Covered Employee” means an Employee who is a “covered employee” under Section 162(m)(3) of the
Code.

                                (q)           “Director” means a member of the Board.

                                (r)            “Disability” means as defined under the long-term disability policy of the Company or the Related Entity
to which the Grantee provides services regardless of whether the Grantee is covered by such policy.
If the Company or the Related Entity to which the Grantee provides service does not have a long-term
disability plan in place, “Disability” means that a Grantee is unable to carry out the
responsibilities and functions of the position held by the Grantee by reason of any medically determinable
physical or mental impairment for a period of not less than ninety (90) consecutive days. A Grantee
will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment
sufficient to satisfy the Administrator in its discretion.

                                (s)           “Employee” means any person, including an Officer or Director, who is in the employ of the Company or any
Related Entity, subject to the control and direction of the Company or any Related Entity as to both
the work to be performed and the manner and method of performance. The payment of a director’s
fee by the Company or a Related Entity shall not be sufficient to constitute “employment”
by the Company.

	

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                                (t)            “Exchange Act” means the Securities Exchange Act of 1934, as amended.

                                (u)           “Grantee” means an Employee, Director or Consultant who receives an Award under the Plan.

                                (v)           “Officer” means a person who is an officer of the Company or a Related Entity within the meaning of Section 16
of the Exchange Act and the rules and regulations promulgated thereunder.

                                (w)          “Parent” means a “parent corporation”, whether now or hereafter existing, as defined in Section 424(e)
of the Code.

                                (x)            “Performance-Based Compensation” means compensation qualifying as “performance-based compensation” under Section 162(m)
of the Code.

                                (y)           “Plan” means this 2005 Restricted Stock Plan.

                                (z)            “Related Entity” means any Parent or Subsidiary of the Company and any business, corporation, partnership, limited
liability company or other entity in which the Company or a Parent or a Subsidiary of the Company
holds a substantial ownership interest, directly or indirectly.

                                (aa)         “Restricted Stock” means Shares issued under the Plan to the Grantee for such consideration, if any, and subject
to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions,
and other terms and conditions as established by the Administrator. 

                                (bb)         “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor thereto.

                                (cc)         “Share” means a share of the Common Stock.

                                (dd)         “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in
Section 424(f) of the Code.

                3.             Stock Subject to the Plan.

                                (a)           Subject to the provisions of Section 9,
below, the maximum aggregate number of Shares which may be issued pursuant to all Awards is 115,000
Shares. The Shares to be issued pursuant to Awards may be authorized, but unissued, or reacquired
Common Stock. 

                                (b)           Any Shares covered by an Award
(or portion of an Award) which is forfeited, canceled or expires (whether voluntarily or involuntarily)
shall be deemed not to have been issued for purposes of determining the maximum aggregate number
of Shares which may be issued under the Plan. Shares that actually have been issued under the Plan
pursuant to an Award shall not be returned to the Plan and shall not become available for future
issuance under the Plan, except that if unvested Shares are forfeited such Shares shall become available
for future grant under the Plan. To the extent not prohibited by the listing requirements of The 

	

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Nasdaq National Market (or other established stock exchange or national market system on which the
Common Stock is traded) and Applicable Law, any Shares covered by an Award which are surrendered
in satisfaction of tax withholding obligations incident to the vesting of an Award shall be deemed
not to have been issued for purposes of determining the maximum number of Shares which may be issued
pursuant to all Awards under the Plan, unless otherwise determined by the Administrator.

                4.             Administration of the Plan.

                                (a)           Plan Administrator. 

                                                (i)            Administration with Respect to Directors and Officers. With respect to grants of Awards to Directors or Employees who are also Officers or Directors of
the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated
by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable
Laws and to permit such grants and related transactions under the Plan to be exempt from Section 16(b)
of the Exchange Act in accordance with Rule 16b-3. Once appointed, such Committee shall continue
to serve in its designated capacity until otherwise directed by the Board. 

                                                (ii)           Administration With Respect to Consultants and Other Employees. With respect to grants of Awards to Employees or Consultants who are neither Directors nor Officers
of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by
the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws.
Once appointed, such Committee shall continue to serve in its designated capacity until otherwise
directed by the Board. The Board may authorize one or more Officers to grant such Awards and may
limit such authority as the Board determines from time to time.

                                                (iii)          Administration With Respect to Covered Employees. Notwithstanding the foregoing, grants of Awards to any Covered Employee intended to qualify as Performance-Based
Compensation shall be made only by a Committee (or subcommittee of a Committee) which is comprised
solely of two or more Directors eligible to serve on a committee making Awards qualifying as Performance-Based
Compensation. In the case of such Awards granted to Covered Employees, references to the “Administrator”
or to a “Committee” shall be deemed to be references to such Committee or subcommittee.

                                                (iv)          Administration Errors. In the event an Award is granted in a manner inconsistent with the provisions of this subsection (a),
such Award shall be presumptively valid as of its grant date to the extent permitted by the Applicable
Laws. 

                                (b)           Powers of the Administrator. Subject to Applicable Laws and the provisions of the Plan (including any other powers given to the
Administrator hereunder), and except as otherwise provided by the Board, the Administrator shall
have the authority, in its discretion:

                                                (i)            to select the Employees,
Directors and Consultants to whom Awards may be granted from time to time hereunder;

	

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                                                (ii)           to determine whether and to what
extent Awards are granted hereunder;

                                                (iii)          to determine the number of Shares
to be covered by each Award granted hereunder;

                                                (iv)          to approve forms of Award Agreements
for use under the Plan;

                                                (v)           to determine the terms and conditions
of any Award granted hereunder;

                                                (vi)          to amend the terms of any outstanding
Award granted under the Plan, provided that any amendment that would adversely affect the Grantee’s
rights under an outstanding Award shall not be made without the Grantee’s written consent;

                                                (vii)         to construe and interpret the terms of the
Plan and Awards, including without limitation, any notice of award or Award Agreement, granted pursuant
to the Plan;

                                                (viii)        to grant Awards to Employees, Directors and Consultants
employed outside the United States on such terms and conditions different from those specified in
the Plan as may, in the judgment of the Administrator, be necessary or desirable to further the purpose
of the Plan; and

                                                (ix)           to take such other action, not
inconsistent with the terms of the Plan, as the Administrator deems appropriate.

                                (c)           Indemnification. In addition to such other rights of indemnification as they may have as members of the Board or as
Officers or Employees of the Company or a Related Entity, members of the Board and any Officers or
Employees of the Company or a Related Entity to whom authority to act for the Board, the Administrator
or the Company is delegated shall be defended and indemnified by the Company to the extent permitted
by law against all reasonable expenses, including attorneys’ fees, actually incurred in connection
with the defense of any claim, investigation, action, suit or proceeding, or in connection with any
appeal therein, to which they or any of them may be a party by reason of any action taken or failure
to act under or in connection with the Plan, or any Award granted hereunder, and against all amounts
paid by them in settlement thereof (provided such settlement is approved by the Company) or paid
by them in satisfaction of a judgment in any such claim, investigation, action, suit or proceeding,
except in relation to matters as to which it shall be adjudged in such claim, investigation, action,
suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct;
provided, however, that within thirty (30) days after the institution of such claim, investigation,
action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at
the Company’s expense to defend the same.

                5.             Eligibility. Awards may be granted to Employees, Directors and Consultants. An Employee, Director or Consultant
who has been granted an Award may, if otherwise eligible, be granted additional Awards. Awards may
be granted to such Employees, Directors or Consultants who are residing in non-U.S. jurisdictions
as the Administrator may determine from time to time.
 

	

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                6.             Terms and Conditions of Awards.

                                (a)           Conditions of Award. Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions
of each Award including, but not limited to, the Award vesting schedule (if any), repurchase provisions,
rights of first refusal, forfeiture provisions, payment contingencies, and satisfaction of any performance
criteria. The performance criteria established by the Administrator may be based on any one of, or
combination of, the following: (i) increase in share price, (ii) earnings per share, (iii) total
stockholder return, (iv) operating margin, (v) gross margin, (vi) return on equity, (vii) return
on assets, (viii) return on investment, (ix) operating income, (x) net operating income, (xi) pre-tax
income, (xii) cash flow, (xiii) revenue, (xiv) expenses, (xv) earnings before interest, taxes and
depreciation and (xvi) economic value added (xvii) market share. The performance criteria may be
applicable to the Company, Related Entities and/or any individual business units of the Company or
any Related Entity. Partial achievement of the specified criteria may result in a payment or vesting
corresponding to the degree of achievement as specified in the Award Agreement. 

                                (b)           Separate Programs. The Administrator may establish one or more separate programs under the Plan for the purpose of issuing
particular forms of Awards to one or more classes of Grantees on such terms and conditions as determined
by the Administrator from time to time. 

                                (c)           Individual Limitations for Restricted Stock. For awards of Restricted Stock that are intended to be Performance-Based Compensation, the maximum
number of Shares of Restricted Stock which may be granted to any Grantee in any calendar year shall
be 35,000 Shares. The foregoing limitation shall be adjusted proportionately in connection with any
change in the Company’s capitalization pursuant to Section 9, below. 

                                (d)           Transferability of Awards. Awards shall be transferable (i) by will and by the laws of descent and distribution and (ii) during
the lifetime of the Grantee, to the extent and in the manner authorized by the Administrator. 

                                (e)           Time of Granting Awards. The date of grant of an Award shall for all purposes be the date on which the Administrator makes
the determination to grant such Award, or such other later date as is determined by the Administrator.

	

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                7.             Taxes. No Shares shall be delivered under the Plan to any Grantee or other person until such Grantee or
other person has made arrangements acceptable to the Administrator for the satisfaction of any United
States federal, state, local or non-U.S. income and employment tax withholding obligations, including,
without limitation, obligations incident to the receipt of Shares. Upon vesting of an Award, the
Company shall withhold or collect from Grantee an amount sufficient to satisfy such tax obligations,
including, but not limited too, by surrender of the whole number of Shares covered by the Award sufficient
to satisfy the minimum applicable tax withholding obligations incident to the vesting of an Award.

                8.             Conditions Upon Issuance of Shares.

                                (a)           Shares shall not be issued pursuant
to an Award unless the issuance and delivery of such Shares pursuant thereto shall comply with all
Applicable Laws, and shall be further subject to the approval of counsel for the Company with respect
to such compliance.

                                (b)           As a condition to the issuance
of an Award, the Company may require the person receiving such Award to represent and warrant at
the time of any such issuance that the Shares are being purchased only for investment and without
any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company,
such a representation is required by any Applicable Laws.

                9.             Adjustments Upon Changes in Capitalization. Subject to any required action by the stockholders of the Company, the number of Shares covered by
each outstanding Award, and the number of Shares which have been authorized for issuance under the
Plan but as to which no Awards have yet been granted or which have been returned to the Plan, the
maximum number of Shares with respect to which Awards may be granted to any Grantee in any calendar
year, as well as any other terms that the Administrator determines require adjustment shall be proportionately
adjusted for (i) any increase or decrease in the number of issued Shares resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of the Shares, or similar
transaction affecting the Shares, (ii) any other increase or decrease in the number of issued
Shares effected without receipt of consideration by the Company, or (iii) as the Administrator
may determine in its discretion, any other transaction with respect to Common Stock including a corporate
merger, consolidation, acquisition of property or stock, separation (including a spin-off or other
distribution of stock or property), reorganization, liquidation (whether partial or complete) or
any similar transaction; provided, however that conversion of any convertible securities of the Company
shall not be deemed to have been “effected without receipt of consideration.” Except
as the Administrator determines, no issuance by the Company of shares of any class, or securities
convertible into shares of any class, shall affect, and no adjustment by reason hereof shall be made
with respect to, the number of Shares subject to an Award. 

                10.           Corporate Transactions and Changes in Control. Except as provided otherwise in an individual Award Agreement, in the event of a Corporate Transaction
or a Change in Control, each Award which is at the time outstanding under the Plan automatically
shall become fully vested and be released from any repurchase or forfeiture rights, immediately prior
to the specified effective date of such Corporate Transaction or Change in Control, for all of the
Shares 

	

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at the time represented by such Award, provided that the Grantee’s Continuous Service has not
terminated prior to such date. 

                11.           Effective Date and Term of Plan. The Plan shall become effective upon its approval by the stockholders of the Company. It shall continue
in effect for a term of ten (10) years unless sooner terminated. 

                12.           Amendment, Suspension or Termination of the Plan. 

                                (a)           The Board may at any time amend,
suspend or terminate the Plan; provided, however, that no such amendment shall be made without the
approval of the Company’s stockholders to the extent such approval is required by Applicable
Laws. 

                                (b)           No Award may be granted during
any suspension of the Plan or after termination of the Plan.

                                (c)           No suspension or termination of
the Plan (including termination of the Plan under Section 10, above) shall adversely affect any
rights under Awards already granted to a Grantee.

                13.           Reservation of Shares.

                                (a)           The Company, during the term of
the Plan, will at all times reserve and keep available such number of Shares as shall be sufficient
to satisfy the requirements of the Plan.

                                (b)           The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s
counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the
Company of any liability in respect of the failure to issue or sell such Shares as to which such
requisite authority shall not have been obtained.

                14.           No Effect on Terms of Employment/Consulting Relationship. The Plan shall not confer upon any Grantee any right with respect to the Grantee’s Continuous
Service, nor shall it interfere in any way with his or her right or the right of the Company or any
Related Entity to terminate the Grantee’s Continuous Service at any time, with or without cause,
and with or without notice. 

                15.           No Effect on Retirement and Other Benefit Plans. Except as specifically provided in a retirement or other benefit plan of the Company or a Related
Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions
under any retirement plan of the Company or a Related Entity, and shall not affect any benefits under
any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability
or amount of benefits is related to level of compensation. The Plan is not a “Retirement Plan”
or “Welfare Plan” under the Employee Retirement Income Security Act of 1974, as amended.

                16.           Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or
interpretation of any provision of the Plan. Except when 

	

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otherwise indicated by the context, the singular shall include the plural and the plural shall include
the singular. Use of the term “or” is not intended to be exclusive, unless the context
clearly requires otherwise.

	

10Exhibit 10.17

LOAN AGREEMENT

Between

PRESIDENTIAL REALTY CORPORATION, Lender

and

LIGHTSTONE MEMBER II LLC, Borrower

Shawnee Mall

Shawnee, Oklahoma

Brazos Outlets Center Mall

Lake Jackson, Texas

Dated as of December 23, 2004

	

  

	
TABLE OF CONTENT

	 

		
	ARTICLE ONE	 	 	 
	DEFINITIONS	 	 	 
	   1.1      Definitions	 	 	 
	   1.2      Accounting Terms and Determinations	 	 	 
	ARTICLE TWO	 	 	 
	THE LOAN	 	 	 
	   2.1      The Loan	 	 	 
	   2.2      Conditions to Advances of the Loan.	 	 	 
	ARTICLE THREE	 	 	 
	INTEREST	 	 	 
	   3.1      Calculation	 	 	 
	   3.2      Payments	 	 	 
	ARTICLE FOUR	 	 	 
	TERM; PAYMENT; PREPAYMENT;	 	 	 
	EXIT FEE; PROPERTY SALES	 	 	 
	   4.1      Term	 	 	 
	   4.2      Repayment at End of Term	 	 	 
	   4.3      Prepayment	 	 	 
	   4.4      Acceleration Upon Invalidity of Interest	 	 	 
	ARTICLE FIVE	 	 	 
	SECURITY	 	 	 
	   5.1      Loan Documents	 	 	 
	ARTICLE SIX	 	 	 
	REPRESENTATIONS AND WARRANTIES OF BORROWER	 	 	 
	ARTICLE SEVEN	 	 	 
	ADDITIONAL COVENANTS; COVENANT BY LENDER	 	 	 
	   7.1      Additional Covenants by Borrower	 	 	 
	   7.2      Covenant by Lender	 	 	 
	   7.3      Certain Sources and Uses of Funds	 	 	 
	ARTICLE EIGHT	 	 	 
	EXPENSES	 	 	 
	   8.1      Closing Costs	 	 	 
	ARTICLE EIGHT-A	 	 	 
	BROKERAGE	 	 	 
	   8-A.1      Mutual Representations	 	 	 
	   8-A.2      Indemnities	 	 	 
	ARTICLE NINE	 	 	 
	SURVIVAL OF REPRESENTATIONS AND	 	 	 
	WARRANTIES; BINDING EFFECT; INDEMNITY	 	 	 
	   9.1      Survival of Representations and Warranties; Binding Effect; Indemnity	 	 	 
	ARTICLE TEN	 	 	 
	DEFAULTS	 	 	 
	   10.1      Event of Default	 	 	 
	   10.2      Costs; Right to Cure	 	 	 
	   10.3      Cross-Default	 	 	 
	ARTICLE ELEVEN	 	 	 
	BOOKS; RECORDS; STATEMENTS AND AUDITS	 	 	 
	   11.1      Books and Records	 	 	 
	   11.2      Statements	 	 	 
	   11.3      Lender’s Right to Audit	 	 	 
	ARTICLE TWELVE	 	 	 
	MANAGEMENT OF THE PROPERTIES	 	 	 
	   12.1      Management	 	 	 
	   12.2      Service Agreements	 	 	 

	

	   12.3      Occupancy Leases	 	 	 
	ARTICLE THIRTEEN	 	 	 
	TRANSFER OF INTERESTS; NO FURTHER FINANCING	 	 	 
	   13.1      Transfers	 	 	 
	   13.2      No Financing	 	 	 
	ARTICLE FOURTEEN	 	 	 
	MISCELLANEOUS	 	 	 
	   14.1      Notices	 	 	 
	   14.2      Entire Agreement; No Oral Changes	 	 	 
	   14.3      Captions	 	 	 
	   14.4      Governing Law	 	 	 
	   14.5      Further Assurances	 	 	 
	   14.6      Interest Limitation	 	 	 
	   14.7      Estoppel Certificates	 	 	 
	   14.8      Interpretation	 	 	 
	   14.9      Non-Recourse	 	 	 
	   14.10    Counterparts	 	 	 
	   14.11    No Partnership	 	 	 
	   14.12    Resolution of Drafting Ambiguities	 	 	 
	   14.13    No Waiver; Cumulative Remedies and Rights	 	 	 
	   14.14    Certain Consents	 	 	 
	   14.15    Payment Days	 	 	 
	   14.16    Severability	 	 	 
	   14.17    Consent to Jurisdiction	 	 	 
	   14.18    Waiver of Jury Trial	 	 	 

	 
	Exhibit A:                               Lightstone Properties
	 
	Exhibit B:                               Lightstone Property Owners
	 
	Exhibit C:                               Prepayment Amounts

	

  

	
LOAN AGREEMENT

                THIS LOAN AGREEMENT (this “Loan Agreement” or “Agreement”) dated as of the 23rd
day of December, 2004, by and between PRESIDENTIAL REALTY CORPORATION, a Delaware corporation having
an address at 180 South Broadway, White Plains, New York 10605 (“Lender”), and LIGHTSTONE
MEMBER II LLC, a Delaware limited liability company, having an address c/o The Lightstone Group LLC,
326 Third Street, Lakewood, New Jersey 08701 (“Borrower’s Address”) (“Borrower”);

W I T N E S S E T H:

                WHEREAS Lightstone Real Estate Partners, LLC (hereinafter referred to as “Contract Vendee”),
an Affiliate (capitalized terms not defined in these recitals are defined in Article 1) of David
Lichtenstein has entered into an Agreement of Purchase and Sale dated October 21, 2004, as amended,
with WXI/Z Southwest Malls Real Estate Limited Liability Company for the purchase of the two properties
described in Exhibit A annexed hereto (the “Lightstone Properties”); and

                WHEREAS Wachovia Bank, National Association (“Wachovia”) has made a loan in the amount of
Thirty-Nine Million Five Hundred Thousand Dollars ($39,500,000) to the two Delaware limited liability
companies (the “Lightstone Property Owners”) listed at Nos. 1 and 2 on Exhibit B annexed
hereto, secured by a first mortgage lien upon the Lightstone Properties; and

                WHEREAS each of the Lightstone Property Owners have taken title to the Lightstone Property referred
to after its name in Exhibit B; and

	

  

	
                WHEREAS David Lichtenstein (“Lichtenstein”) having an address at Borrower’s Address,
is the managing member of Borrower, and Borrower is the sole member of the Lightstone Property Owners;
and

                WHEREAS Borrower has applied to Lender for a loan in the amount of Seven Million Five Hundred Thousand
Dollars ($7,500,000) to be used, along with other funds, to finance the Lightstone Properties; and

                WHEREAS Lender is willing to lend Borrower up to Seven Million Five Hundred Thousand Dollars ($7,500,000)
to be used, along with other funds, to finance the Lightstone Properties, but only upon the terms
and conditions set forth in this Loan Agreement and in the other Loan Documents;

                NOW, THEREFORE, in consideration of Ten Dollars ($10.00) in hand paid, the mutual covenants contained
herein, and other good and valuable consideration, the receipt and sufficiency of which hereby are
mutually acknowledged, and intending to be legally bound hereby, Lender and Borrower hereby agree
as follows: 

ARTICLE ONE

DEFINITIONS

                1.1           Definitions. The following terms, as used in this Loan Agreement, have the following meanings: 

                Affiliate:  Any Person that controls, is controlled by, or is under common control with any other
Person is an Affiliate of such Person; any Person that is a shareholder of, partner in, member 

	

  

	
of, or other beneficial owner (directly or indirectly) of an interest in any other Person is an Affiliate
of such Person; any direct or collateral relative by blood or marriage of any Person is an Affiliate
of such Person; any Person who is a direct or collateral relative by blood or marriage of any Person
who is a shareholder of or partner in, member of, or other beneficial owner (directly or indirectly)
of an interest in any entity that controls, is controlled by, or is under common control with any
other entity is an Affiliate of all such Persons. For purposes of this definition “control”
of an entity shall mean an ownership interest of fifty percent (50%) or more, or the right or power,
by contract or otherwise, directly or indirectly, to make, or cause to be made, the decisions of such entity.

                Auditor:  As defined in Section 11.3 hereof.

                Bankruptcy Event:  With respect to any Person, a court having jurisdiction shall have entered a decree or
order for relief in respect of such Person in an involuntary case or cases under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or shall have appointed one or more receivers,
liquidators, assignees, custodians, trustees, sequestrators or other similar officials (hereinafter
collectively referred to as “receiver or trustee”) of such Person, or for any substantial
part of such Person’s property, or shall have ordered the winding up or liquidation of such
Person’s affairs, and such decree or order shall remain unstayed and in effect for a period
of sixty (60) consecutive days; or such Person shall have commenced a voluntary case or cases under
any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or shall have
consented to the entry of an order for relief in any involuntary case or cases under any such law,
or shall have consented to the appointment of or taking possession by one or more receivers or trustees
of such Person or for any substantial part of such Person’s property, or shall have made a general
assignment for the benefit of its creditors, or shall have failed generally to pay its debts as they
become due, or shall have taken any action in furtherance of any of the foregoing. 

	

  

	
                Borrower’s Address:  As defined in the first paragraph of this Loan Agreement.

                Borrower’s Initial Equity Investment in the Lightstone Properties:  The amount of money, in addition to the Loan and the proceeds of the First Mortgage, required
to pay the purchase prices for the Lightstone Properties and all Transaction Costs incurred or to
be incurred in causing title thereto to be acquired by the Lightstone Property Owners.

                Borrower’s Property Management Office:  326 Third Street, Lakewood, New Jersey, or such other location in New Jersey or New York as
Borrower shall determine, provided that Borrower timely shall notify Lender of any change in the
location of Borrower’s Property Management Office.

                Certificate of Occupancy:  One or more certificates of use and occupancy, or similar permit or approval, required by law
to be issued in connection with the use, occupancy or operation of a Lightstone Property by its owner
or by any tenant under an Occupancy Lease. 

                Contract Vendee:  As defined in the first “WHEREAS” clause hereof.

                Default:  An event or condition which with the passage of time or upon notice, or both, will result
in an Event of Default. 

                Default Collateral:  As defined in Section 14.9 hereof.

                Environmental Indemnity Agreement:  That certain Environmental Indemnity Agreement, dated as of the date hereof, made by Borrower,
Lichtenstein and the Lightstone Property Owners, as indemnitors, in favor of Lender, as indemnitee,
and all amendments thereof and supplements thereto.

	

  

	
                Environmental Laws:  All federal, state and local laws, rules and regulations, whether now existing or hereafter
enacted or promulgated, regulating, relating to or imposing liability or standards of conduct concerning
any hazardous, toxic, petroleum or dangerous waste, substance or material or the protection of health
or the environment, including, without limitation (i) Comprehensive Environmental Response, Compensation
and Liability Act of 1980, 42 U.S.C. Section 9601 et seq. (known as CERCLA or Superfund) as amended by the Superfund Amendments and Reauthorization Act of
1986 (known as SARA); (ii) Solid Waste Disposal Act, 42 U.S.C. Section 6901 et seq. (known as SWDA) as amended by Resource Conservation and Recovery Act (known as RCRA); (iii) National
Environmental Policy Act, 42 U.S.C. Section 4321 et seq. (known as NEPA); (iv) Toxic Substances Control Act, 15 U.S.C., Section 2601 et seq. (known as TSCA); (v) Safe Drinking Water Act, 42 U.S.C. Section 300(f) et seq., (known as Public Health Service Act, PHSA); (vi) Refuse Act, 33 U.S.C. Section 407 et seq.; (vii) Clean Water Act, 33 U.S.C. Section 1251 et seq. (known as Federal Water Pollution Control Act FWPCA); (viii) Clean Air Act, 42 U.S.C. Section 7401
et seq. (known as CAA); (ix) The Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Section
11001 et seq. (known as EPCRTKA); and (x) the Occupational Safety and Health Act, 29 U.S.C. Section 651 et seq. (known as OSHA).

                Event of Default:  As defined in Section 10.1 hereof. 

                Exit Fee:  As defined in Section 4.3 hereof.

                Financial Information:  As defined in Section 6.1 hereof.

                First Mortgage:  See definition of Permitted Exceptions.

	

  

	
                Fiscal Years:  The fiscal years of Borrower and the Lightstone Property Owners, all of which shall be
the calendar year. 

                Guarantor:  Lichtenstein.

                Guaranty:  A certain Guaranty of even date herewith made by Lichtenstein, as Guarantor, for the benefit
of Lender.

                Imposition:  Any real estate tax, sewer rent, water charge, or other municipal or governmental assessment,
rate, charge, imposition or lien upon either of the Lightstone Properties.

                Improvements:  All buildings, structures and other improvements of every kind and description on either
of the Lightstone Properties.

                Indebtedness:  The amount of Principal, Interest and all other sums payable by Borrower to Lender under
this Loan Agreement, the Note and the other Loan Documents.

                Interest:  As defined in Section 3.1 hereof. 

                Interest Rate:  As defined in Section 3.1 hereof.

                Legal Requirements: All laws, statutes, codes, acts, ordinances, orders, judgments, decrees, injunctions, rules,
regulations, permits, licenses, authorizations, variances, consents, approvals, directions and requirements
of, and agreements with, all governments, departments, commissions, boards, courts, authorities,
agencies, officials and officers, foreseen or unforeseen, ordinary or extraordinary, which now or
at any time hereafter may be applicable to either of the 

	

  

	
Lightstone Properties, or to any of the adjoining vaults, sidewalks, streets or ways, or to any use
or condition of any of the Lightstone Properties, including, without limitation, Environmental Laws.

                Lichtenstein:  As defined in the fourth “WHEREAS” clause hereof.

                Lightstone Properties:  As defined in the first “WHEREAS” clause hereof.

                Lightstone Property Owners:  As defined in the second “WHEREAS” clause hereof.

                Lightstone Property Sale and similar phrases such as Lightstone Property Sales:  Any Transfer of a Lightstone Property or any part thereof other than a Refinancing Event, an
Occupancy Lease, or a Taking.

                Loan:  The loan to be made by Lender to Borrower as provided in this Loan Agreement and as evidenced
by the Note.

                Loan Agreement:  This Loan Agreement between Borrower and Lender, and all amendments and supplements hereto.

                Loan Closing Date:  December 23, 2004.

                Loan Documents:  Without limitation, this Loan Agreement, the Note, the Guaranty, the Environmental Indemnity
Agreement, the Security Instruments and any other agreements or instruments executed or to be executed
hereunder or in connection herewith or to evidence or to secure the Indebtedness and all amendments
thereof and thereto. 

	

  

	
                Maturity Date:  The tenth (10th) anniversary of the Loan Closing Date, or any earlier date to which said date shall be accelerated
pursuant to any right or option of Lender hereunder or under any of the other Loan Documents.

                Note:  A promissory note in the amount of Seven Million Five Hundred Thousand Dollars ($7,500,000),
or so much thereof as may be advanced, of even date herewith made by Borrower to the order of Lender.

                Occupancy Lease:  Any written or oral lease, sublease, license, franchise, concession or other occupancy
agreement now or hereafter in effect, whether or not of record, for the use or occupancy of any portion
of the Improvements on either of the Lightstone Properties, together with all amendments thereof
and supplements thereto, including oral lettings and tenancies following attornment. 

                Omnibus Agreements:  Those certain Omnibus Agreements of even date herewith executed by the Lightstone Property Owners
and all amendments thereof and supplements thereto.

                Permitted Exceptions:  The first mortgage or deed of trust (“First Mortgage”) held by Wachovia or its successors
or assigns. In addition, the following shall be Permitted Encumbrances: (i) liens for unpaid real
estate taxes not yet due, (ii) Occupancy Leases, and (iii) provided that Borrower shall have furnished
title reports (and related documents) upon, and surveys (complying with paragraph (vi) of Section
2.2) of, the Lightstone Properties, to Lender prior to the Loan Closing Date, then any additional
condition of title disclosed by any of such title reports and surveys as shall be taken as an exception
to title (without affirmative insurance or any other special assurances of any kind) in the title
report upon the Lightstone Property in question (or the title policy to be issued in connection therewith)
issued to Wachovia with its informed consent.

	

  

	
                Person:  An individual, corporation, partnership, association, trust or other entity or organization,
including a governmental or political subdivision or agency or instrumentality thereof. 

                Pledge Agreement:  That certain Security and Pledge Agreement of even date herewith, executed and delivered
by Borrower to Lender and all amendments thereof and supplements thereto. 

                Pledged Collateral:  All of Borrower’s right, title and interest in and to the following property, whether now
owned by Borrower or hereafter acquired and whether now existing or hereafter coming into existence,
and wherever located:

                                (i)
all of Borrower’s membership interests in the Lightstone Property Owners, which constitutes
one hundred percent (100%) of the membership interests in the Lightstone Property Owners, together
with all of Borrower’s interest as a member of the Lightstone Property Owners;

                                (ii)
all right, title and interest of Borrower in the Lightstone Property Owners relating to Borrower’s
membership interests in the Lightstone Property Owners, including, without limitation, all of Borrower’s
rights, powers and remedies under the Company Agreement with respect to Borrower’s membership
interests; and

                                (iii)
all present and future payments, distributions, proceeds, profits, income, compensation, property,
capital assets, interests and rights due or to become due and payable to Borrower in connection with
Borrower’s membership interests in the Lightstone Property Owners 

	

  

	
(including, without limitation, all proceeds of dissolution or liquidation or winding up of the affairs
of the Lightstone Property Owners), all repayments of any and all loans made by Borrower to the Lightstone
Property Owners and all rights of Borrower to receive any and all of the foregoing, whether or not
any or all of the foregoing shall constitute accounts or general intangibles under the Uniform Commercial
Code.

                Principal:  At any time of reference, the aggregate total of all money advanced by Lender to Borrower
pursuant to Article 2 hereof, less any repayment or prepayment of a portion thereof in accordance
with the terms hereof, except as the context otherwise shall require. 

                Recourse Distributions:  As defined in Section 14.9 hereof.

                Refinancing Event:  The creation, financing, refinancing or restructuring of any debt (but only with Lender’s
prior approval) upon or related to either of the Lightstone Properties, including, without limitation,
any lease and leaseback or other form of financing.

                Sale of a Lightstone Property and similar phrases such as Sales of the Lightstone Properties:  See definition of “Lightstone Property Sale.”

                Security Instruments:  The Pledge Agreement, the Omnibus Agreements, financing statements under the Uniform Commercial
Code, and any other agreements or instruments executed or to be executed pursuant to the terms of
this Loan Agreement and the other Loan Documents to secure and/or assure the repayment of the Principal
and Interest and all other Indebtedness under the Note and all other Loan Documents and all amendments
thereof and supplements thereto. 

	

  

	
                Taking and similar words such as “Taken”:  A taking for any public or quasi-public purpose by any lawful power or authority by the exercise
of the right of condemnation or eminent domain of all or any portion of either of the Lightstone
Properties or the temporary use thereof.

                Term:  The period of time beginning on the date hereof and ending on the Maturity Date.

                Transaction Costs:  Actual, necessary and reasonable out-of-pocket costs and expenses incurred by Borrower,
either Lightstone Property Owner, and any of their Affiliates, in connection with the purchase of
a Lightstone Property, a Lightstone Property Sale or a Taking as to either of the Lightstone Properties,
including, without limitation, title insurance and survey costs, brokerage commissions, legal expenses,
transfer taxes, closing adjustments, and other customary closing costs without duplication as Operating
Expenses or otherwise, costs to comply with Legal Requirements or requirements of lenders, mortgage
points and fees, and property expenses required in connection with a Lightstone Property Sale or
Taking to be paid or incurred by a Lightstone Property Owner or Borrower (excluding, however, the
purchase prices for the Lightstone Properties, and any commissions or fees paid to Borrower or either
Lightstone Property Owner, or any of their Affiliates).

                Transfer and similar words such as Transferred:  A sale, assignment, gift, mortgage, pledge, hypothecation, encumbrance, lease or any other conveyance
or transfer.

                Wachovia:  As defined in the second “WHEREAS” clause hereof.

                1.2           Accounting Terms and Determinations.  Unless otherwise specified herein (i) all accounting terms used herein shall be interpreted, (ii)
all accounting determinations hereunder shall be made and (iii) all books, records and financial
statements required to be kept or delivered hereunder shall be prepared in accordance with generally
accepted accounting principles as in 

	

  

	
effect from time to time, consistently applied, except for changes reasonably approved in writing by
Lender. 

ARTICLE TWO

THE LOAN

                2.1           The Loan.  Lender hereby agrees to make the Loan to Borrower, and Borrower hereby agrees to take the Loan from
Lender, on the date hereof and on the terms and subject to the conditions set forth herein, each
of which shall be a condition precedent to Lender’s obligation to make the Loan, each of which
Borrower shall use its best efforts to satisfy, and each of which Lender may waive.

                2.2           Conditions to Advances of the Loan.  Lender’s obligation to advance the Loan shall be subject to the following conditions:

	 

		(i)	          In no event shall the Loan exceed Seven Million Five Hundred Thousand Dollars ($7,500,000); and
			 
		(ii)	          The Lightstone Property Owners shall have acquired title to the Lightstone Properties; and
			 
		(iii)	          All of Borrower’s representations set forth in this Loan Agreement and the other Loan Documents
shall be true, accurate and complete in all material respects, and there shall not exist any Default
or Event of Default under any of the terms and provisions of this Loan Agreement or any of the other
Loan Documents, and all of 

	

  

	 	Borrower’s representations made in this Loan Agreement and any of the other Loan Documents shall
be true in all material respects; and
		 

		(iv)	          Borrower shall have furnished to Lender a survey of each of the Lightstone Properties, respectively,
in form and substance satisfactory to Lender, acting reasonably, revised and redated to within ten
(10) days of the date of the Loan Closing Date and certified by a registered surveyor or engineer
acceptable to Lender, acting reasonably, showing no state of facts objectionable to Lender; all surveys
shall show (a) the exact location and dimensions by courses and distances of the surveyed property
and the improvements thereon, (b) the exact location of all parcel, lot and street lines, all means
of access to the surveyed property, all utility wires, pipes and other conduits (whether above ground
or underground), and all easements and rights of way affecting the surveyed property, and (c) no
encroachment or potential encroachments of the improvements on the surveyed property upon any street
or adjoining property or any encroachment of any adjoining structure upon the surveyed property; and
			 
		(v)	          Borrower shall have furnished to Lender title reports (and related documents) for the Lightstone Properties,
and the Lightstone Properties shall not be subject to any conditions of title that are not Permitted
Encumbrances unless approved by Lender; and
			 
		(vi)	          Borrower shall have furnished to Lender a certificate stating that the Lightstone Properties (and the
Improvements thereon), are in good condition and repair and comply with all Legal Requirements and
that unconditional Certificates of Occupancy have been issued therefor and are in full force and
effect subject to 

	

  

	 	such qualifications, exceptions and conditions, if any, as shall have been approved by Wachovia; and
		 

		(vii)	          Borrower shall have furnished to Lender evidence in form satisfactory to Lender that all of the funds
constituting Borrower’s Initial Equity Investment in the Lightstone Properties have been invested;
and
			 
		(viii)	          Borrower shall have furnished to Lender copies of the First Mortgage and of all related documents,
all of which must be satisfactory to Lender, acting reasonably, in all respects; and
			 
		(ix)	          Borrower shall have furnished to Lender original or certified copies of policies of insurance satisfactory
to Lender insuring the Improvements on the Lightstone Properties against loss or damage by fire and
the other risks insured against by extended coverage insurance; Lender will accept as to form policies
of insurance (and the companies writing them) which are acceptable to Wachovia provided that the
insurance limits set forth in such insurance policies are not less than the full insurable value
of the Improvements on the insured Lightstone Property or the Lightstone Properties; and
			 
		(x)	          The Loan Documents listed in Section 5.1 and such other agreements and instruments as Lender reasonably
shall require shall be executed and/or delivered to Lender; and
			 
		(xi)	          No casualty shall have occurred or Taking have occurred or be threatened as to either of the Lightstone
Properties; provided, however, that this condition (xi) shall be deemed satisfied in the event that
despite a minor casualty partially 

	

  

	 	damaging the Improvements on a Lightstone Property, or the occurrence or threatened occurrence of a
partial Taking of a Lightstone Property, which partial Taking is or would be of little or no practical
significance, Wachovia nevertheless shall fund its loan in the full originally committed amount thereof.

	 
	
ARTICLE THREE

INTEREST

                3.1           Calculation.  For each Fiscal Year (or any portion thereof) during the Term, Borrower shall pay Lender interest
(calculated on the basis of actual days elapsed and a year of three hundred and sixty (360) days)
on the Principal of the Loan outstanding from time to time, to the extent and from the date(s) advanced,
at the rate of eleven percent (11%) (the “Interest Rate”). Said interest is referred to
herein as “Interest.” 

                3.2           Payments.  Borrower shall make payments of Interest with respect to the Loan as follows: 

                (a)            Interest shall be payable in monthly
installments, in arrears, on the first day of the month following the month for which such Interest
is due. 

                (b)            All payments of Interest and Principal
pursuant to this Loan Agreement, the Note and the other Loan Documents shall be made in lawful currency
of the United States of America at Lender’s address set forth in the first paragraph of this
Loan Agreement or at such other address as Lender shall from time to time designate. 

	

  

	
                3.3           Interest Rate after Default; Late Payment Fee.  If any payment becoming due to Lender under the Note or this Loan Agreement is not paid when due
and shall continue unpaid for a period of ninety (90) days, then (without prejudice to any other
rights and remedies available to Lender as a result of such nonpayment) beginning on the ninety-first
(91st) day after such payment first was due and continuing until the first anniversary of the date upon
which the Event of Default shall have been cured, the Interest Rate shall be fourteen percent (14%)
per annum. In addition, if any payment of Interest or Principal shall not be made within fifteen
(15) days of the date the same becomes due, Borrower shall pay to Lender a late payment charge in
an amount equal to four (4%) percent of the amount past due upon demand made by Lender
at any time after such fifteen (15) day period. All such late payment charges shall be liquidated
damages for Borrower’s failure to make prompt payment. 

ARTICLE FOUR

TERM; PAYMENT; PREPAYMENT; 

EXIT FEE; PROPERTY SALES

                4.1           Term.  The Term of the Loan shall continue until the Maturity Date, unless sooner terminated as provided
in the Note or this Loan Agreement or any other Loan Document. 

                4.2           Repayment at End of Term.  On the Maturity Date, or upon the earlier termination of the Term as provided in the Note or this
Loan Agreement or any other Loan Document, Borrower shall pay to Lender, in respect of the Loan,
the sum of: 

                (a)            any accrued but unpaid Interest; plus

                (b)            any Indebtedness (other than Principal
and Interest) due and payable from Borrower to Lender pursuant to the terms of the Loan Documents;
plus 

	

  

	
                (c)            the Principal.

                4.3           Prepayment.  (a) Borrower may not prepay the Loan, in whole or in part, except as provided in Section 4.3(b) and
4.3(c) below and except that (i) upon a Lightstone Property Sale, or (ii) the Taking of a Lightstone
Property in whole or in substantial part, Borrower shall prepay the portion of the Loan set forth
in Exhibit C annexed hereto opposite the name of each of the Lightstone Properties or so much of
such portion as has not been prepaid previously and, in the case of a Lightstone Property Sale, simultaneously
shall pay to Lender an Exit Fee computed as provided in Section 4.3(d) unless payment of said Exit
Fee shall be deemed waived by Lender as provided in Section 4.3(d). A Lightstone Property shall be
deemed to have been Taken in substantial part if the portion thereof remaining after the Taking cannot
practically and economically be restored so as to be suitable for the use to which the Lightstone
Property in question was being put at the time of the Taking. Notwithstanding anything to the contrary
contained in this Section 4.3(a), in no event shall Borrower be obligated to prepay more than the
then outstanding principal balance under the Loan.

                (b)            Borrower may prepay the Loan,
in whole but not in part, upon or at any time after the repayment of the First Mortgage on its original
or any extended maturity date upon at least forty-five (45) days notice to Lender and the payment
to Lender of the Exit Fee computed as provided in Section 4.3(d) simultaneously with such prepayment.

                (c)            Borrower
may prepay the Loan, in whole but not in part, upon at least forty-five (45) days prior notice to
Lender if (i) none of Steven Baruch, Jeffrey Joseph and Thomas Viertel are then executive officers
of Lender, and (ii) Borrower shall make payment to Lender, simultaneously with prepayment of the
Loan, of all accrued and unpaid Interest and the Exit Fee computed as provided in Section 4.3(d).

                (d)            Whenever
any Principal is repaid by Borrower, for any reason whatsoever, Borrower shall pay in addition to
the Principal so paid, and any accrued and unpaid Interest 

	

  

	
thereon, an “Exit Fee” in the amount of three percent (3%) of the Principal so paid, provided,
however, that if and to the extent that Principal is paid on the Maturity Date, or a prepayment is
required as a result of a Lightstone Property Sale and there have been no material Events of Default
during the Term of the Loan with respect to payments of Interest, or prepayment is required as a
result of the Taking of a Lightstone Property in whole or in substantial part, then the Exit Fee
shall be waived by Lender and shall not be payable by Borrower.

                (e)            No
prepayment, in whole or in part, however occurring, shall affect in any way the rights or status
of Lender’s Affiliate as a member of Borrower.

                4.4           Acceleration Upon Allegation of Invalidity of Interest, Etc..  In the event that Borrower, either Lightstone Property Owner, or any of their Affiliates, or any
third party claiming through or under any of them, shall at any time assert or shall take any action
the effect of which is to assert that any Interest or Principal is invalid or that the payment of
any of the Indebtedness in accordance herewith is unlawful or can be delayed or abridged for any
reason whatsoever, Lender shall have the right and option immediately to accelerate the Maturity
Date. In the event that Lender shall exercise such right and option to accelerate the Maturity Date,
the Principal, all Interest, and all other Indebtedness or sums due from Borrower to Lender pursuant
to the terms of the Note, this Loan Agreement and the other Loan Documents shall be due and payable
in full immediately upon receipt by Borrower of the notice of acceleration from Lender.

ARTICLE FIVE

SECURITY

                5.1           Loan Documents.  To evidence and secure the payment to Lender of all sums due or to become due under this Loan Agreement
and the Note and the other Loan Documents and the performance by Borrower of all of its covenants
and agreements hereunder and under the Note and 

	

  

	
other Loan Documents, Borrower and Lichtenstein (to the extent specifically provided herein) shall
deliver to Lender, and Lender shall receive and have the benefit of the following: 

	 

		(a)	the Note;
		 	 
		(b)	this Loan Agreement;
		 	 
		(c)	the Guaranty;
		 	 
		(d)	the Pledge Agreement and all financing statements under the Uniform Commercial Code required to perfect
the security interests of Lender thereunder;
			 
		(e)	the Omnibus Agreements;
		 	 
		(f)	the Environmental Indemnity Agreement;
		 	 
		(g)	the other Security Instruments; and
		 	 

		(h)	such other agreements and instruments as Lender reasonably shall require to carry out the intention
of this Loan Agreement.

	 
	
                The Pledge Agreement shall create in favor of Lender first priority perfected security interests in
the Pledged Collateral, subject only to matters expressly permitted herein or therein. 

ARTICLE SIX

REPRESENTATIONS AND WARRANTIES OF BORROWER

                6.1           To induce Lender to make the Loan
to Borrower, Borrower hereby makes the following representations and warranties to, and covenants
with, Lender, it being agreed that Borrower’s acceptance of the Loan shall constitute reaffirmation
by Borrower to the best of its knowledge, of the truth and accuracy of all of the representations
and warranties herein contained in all material respects,: 

	

  

		(a)	(i)            Borrower’s Initial
Equity Investment in the Lightstone Properties shall be at least Two Million Five Hundred Thousand
Dollars ($2,500,000).
			 

	 	(ii)           The execution and delivery of
the Loan Documents by Borrower and the Lightstone Property Owners have been duly authorized by all
necessary action on their part, and each Loan Document has been duly executed and delivered and constitutes
the valid and legally binding obligation of the signatories thereto, enforceable against Lichtenstein,
Borrower and the Lightstone Property Owners in accordance with the terms hereof and thereof.
		 
	 	(iii)          Borrower and the Lightstone Property
Owners are duly organized, validly existing and in good standing under the laws of the state of Delaware
and each Lightstone Property Owner is duly qualified and authorized to own property and do business
in the state (Oklahoma or Texas) in which the Lightstone Property to be owned by it is located. Lichtenstein
and Lender are the sole members of Borrower, and Borrower is the sole member of the Lightstone Property
Owners. Neither Lichtenstein nor Borrower has pledged, encumbered, hypothecated or otherwise transferred
or agreed to encumber, hypothecate, pledge or otherwise transfer their foregoing respective interests,
and Borrower covenants not to do so except with Lender’s prior written approval which Lender
agrees not to unreasonably withhold or delay.
		 
	 	(iv)          Borrower and the Lightstone Property
Owners have full power and authority to enter into the Loan Documents and to perform all their obligations
hereunder and thereunder, and have taken all action required by 

	

  

	 	law, any governing instruments or otherwise to authorize the execution, delivery and performance of
the Loan Documents and consummation of the transactions contemplated thereby. 
		 
	 	(v)           Borrower and the Lightstone Property
Owners do not own, beneficially or of record, any shares of capital stock of, or any other equity
interest in, any corporation or any other entity or any other assets, not related to or forming a
part of the Lightstone Properties;
		 
	 	(vi)          Borrower and the Lightstone Property
Owners have made all filings required to be made by them under the laws of each jurisdiction where
the failure to make such filings would have a material adverse effect on the Loan; and
		 
	 	(vii)         The Lightstone Property Owners have full
power, authority and legal right to acquire, own, and operate the Lightstone Properties, and to execute
and deliver the Loan Agreement and any other documents or instruments contemplated herein or therein
to be executed and delivered by them, and Borrower has full power, authority and legal right to pledge
ownership interests as pledged in the Security Instruments to be executed by it and to execute and
deliver the Loan Documents and any other documents or instruments contemplated herein or therein
to be executed and delivered by it and to observe and perform the provisions hereof and thereof.
	 	 

		(b)	Intentionally omitted.

	

  

	
                                (c)           It has not, and no Lightstone
Property Owner has, received a notice to the effect that execution and delivery or performance of
the Loan Documents, the consummation of the transactions contemplated hereby or thereby, or compliance
with the provisions hereof and thereof, does or will conflict with or result in a breach of any of
the provisions of any Legal Requirements or applicable license, permit, statute, ordinance, law,
judgment, order, writ, injunction, decree, rule or regulation of any court, administrative agency
or other governmental authority, or of any determination or award of any arbitrator, or of any agreement
or instrument to which Borrower or the Lightstone Property Owners is or are a party or by which they
or either of the Lightstone Properties is bound, or constitute a default under any thereof, or result
in the creation or imposition of any lien, charge or encumbrance upon either of the Lightstone Properties
or any of the ownership interests pledged to Lender by the Pledge Agreements. 

                                (d)           There are no actions, suits or
proceedings pending or, to the best of its knowledge, threatened against either of the Lightstone
Properties, Borrower or either Lightstone Property Owner, by or before any court, administrative
agency or other governmental authority or any arbitrator that would have a material, adverse effect
on the Loan. Neither Borrower nor either Lightstone Property Owner is a party to, and neither of
the Lightstone Properties is bound by, any agreement or other instrument, other than the Permitted
Exceptions, or, to the best of its knowledge, subject to any license, permit, statute, ordinance,
law, judgment, order, writ, injunction, decree, rule or regulation of any court, administrative agency
or other governmental authority, or any determination or award of any arbitrator, which might materially
adversely affect the Loan. To the best of its knowledge, Borrower and the Lightstone Property Owners
are not in default in compliance with any obligation under any Legal Requirements, or applicable
license, permit, statute, ordinance, law, judgment, order, writ, injunction, decree, rule or regulation
of any court, administrative agency or other governmental authority, or any determination or award
of any arbitrator, or under any agreement or instrument to which any of them is a party or by which 

	

  

	
any of them or either of the Lightstone Properties is bound which would materially adversely affect
the Loan. 

                                (e)           To the best of its knowledge,
no permit of or by any court, administrative agency or other governmental authority not heretofore
obtained is required in connection with the execution, delivery, performance, or consummation of
the transactions contemplated by the Loan Documents. 

                                (f)            Borrower and the Lightstone
Property Owners have filed all tax returns required to be filed by them and are not in default in
the payment of any taxes levied or assessed against them, any of their assets or either of the Lightstone
Properties. 

                                (g)           As of the Loan Closing Date, the
Lightstone Property Owners shall have good and marketable fee title to the Lightstone Properties
and the Improvements thereon, free and clear of all liens and encumbrances, except the Permitted
Exceptions, and neither of the Lightstone Properties or any part thereof shall be subject to any
option or other right to purchase in favor of any third party.

                                (h)           Lender shall have legal and valid
security interests in and to the Pledged Collateral superior in right to any pledges or liens which
any third party may have or may hereafter purport to acquire against the Pledged Collateral. 

                                (i)            Neither Borrower nor the
Lightstone Property Owners have entered into any contract or agreement of any kind which would give
rise to a pledge or lien upon the Pledged Collateral. 

	

  

	
                                (j)            To the best of its knowledge,
the Lightstone Properties are zoned for use in the manner in which they are used and conform in all
material respects to all existing zoning, building and other Legal Requirements, and the operation
of the Lightstone Properties is not as to any of them in material violation of any Legal Requirements,
Certificates of Occupancy or other permits, and no notice has been received from any governmental
authority or other Person claiming a material violation of any Legal Requirements, Certificates of
Occupancy or other permits. To the best of its knowledge, neither the zoning of either Lightstone
Property nor any right to use either Lightstone Property is to any material extent dependent upon
or related to any real estate other than such Lightstone Property. 

                                (k)           No Bankruptcy Event has ever occurred
with respect to Borrower or either of the Lightstone Property Owners. 

                                (l)            Borrower has or may have
heretofore provided to Lender: certain financial statements; copies of appraisals of the Lightstone
Properties; copies of so-called Phase I environmental reports on the Lightstone Properties; property
condition reports for the Lightstone Properties; certain service agreements applicable to the Lightstone
Properties; copies of loan commitments and loan documents for the First Mortgage and certain other
documents and statements pertaining to the Lightstone Properties (the materials above referred to
in this subparagraph (l) along with rent rolls and other tenant information provided to Wachovia
and/or attached to or otherwise made part of the Wachovia loan documentation herein being referred
to as the “Financial Information).” The information set forth in the Financial Information
is, to the best knowledge of Borrower, true, correct and complete in all material respects. To the
best of Borrower’s knowledge, there are no arrangements for the use or occupancy of any space
in any of the Lightstone Properties other than pursuant to good faith, arm’s length Occupancy
Leases. To the best of Borrower’s knowledge, all of the Occupancy Leases listed in said rent
rolls are binding upon the Lightstone Property Owners and the tenants thereunder and are in full force and effect. 

	

  

	
Neither Borrower nor either Lightstone Property Owner has pledged, assigned, hypothecated or otherwise
encumbered any of the Occupancy Leases or any interest therein except as collateral security for
the First Mortgage. Based upon appropriate certifications and estoppel certificates, with exceptions
which in the aggregate would not have a material adverse effect on the Loan, except as otherwise
disclosed to Lender in writing or reflected in the Financial Information, (i) the rent under and
as set forth in each of the Occupancy Leases is being collected on a current basis and in accordance
with the terms of such Occupancy Leases, and there is no default or event of default which exists
or is alleged to exist under any of the Occupancy Leases, (ii) no default or event of default by
any tenant thereunder exists, and there has been no occurrence which upon notice and/or the passage
of time or otherwise would result in the occurrence of an event of default thereunder, (iii) no tenant
under any of the Occupancy Leases is entitled to rental concessions or abatements with respect to
rental or additional rental payable for any period, (iv) no brokerage or other commission is due
with respect to any of the Occupancy Leases which has not been paid, and no brokerage or other commissions
shall become due or payable by Borrower or either Lightstone Property Owner with the passage of time
or the exercise by any tenant under any Occupancy Lease of any renewal or expansion option thereunder,
and (v) there are no currently existing disputes between Borrower or either Lightstone Property Owner
(or, to the best of its knowledge, any predecessor landlord under any Occupancy Lease) and any tenant
under any of the Occupancy Leases with respect to the computation of any rent, additional rent, incentive
rent, tenant reimbursements or any other amounts payable by any such tenant under any of the Occupancy Leases.

                                (m)          There is access for ingress and egress
to and from the Lightstone Properties to public streets or roadways, pursuant to valid easements
or other valid means, the Lightstone Property Owners’ rights to such access are not subject
to any interference or obstruction, and neither Borrower nor either Lightstone Property Owner has
any knowledge of any fact or condition which would result in the termination of such access as to
either of the Lightstone Properties. None 

	

  

	
of the Permitted Exceptions materially interferes with or has materially interfered with the maintenance,
use, operation or enjoyment of either of the Lightstone Properties.

ARTICLE SEVEN

ADDITIONAL COVENANTS; 

COVENANT BY LENDER

                7.1           Additional Covenants by Borrower. 

                                (a)  Borrower promptly shall notify Lender of any (i) occurrence, event, or condition (including,
but not limited to, any pending or threatened suit or proceeding by or before any court, administrative
agency or other governmental authority or any arbitrator), (ii) the enactment of any statute, ordinance
or law, of which Borrower shall receive written notice and (iii) the giving of any notice or other
communication by any party pursuant to any other agreement relating to the ownership, use, or operation
of either of the Lightstone Properties which, individually or in the aggregate, would or could have
a material, adverse effect on the Loan.

                                (b)  Borrower and the Lightstone Property Owners shall allow Lender and Lender’s representatives
and agents access to the Lightstone Properties at all times and shall provide to Lender such documents
relating to the Lightstone Properties as may be requested by Lender or Lender’s representatives
and agents. 

                                (c) Borrower
and the Lightstone Property Owners shall cause the Lightstone Properties at all times to be in full
compliance with all Legal Requirements to the extent and in the manner of prudent owners of similar
properties in the general areas, respectively, of the Lightstone Properties.

	

  

	
                                (d)  Borrower shall not suffer or permit any event or circumstance to occur or exist, or
fail to take any action, which would result in the lien and security interests of Lender under the
Pledge Agreement ceasing to be at all times fully perfected liens and security interests on the Pledged
Collateral. 

                                (e)  Borrower will maintain such reserves for future operating expenses, capital improvements
and other cash requirements as Lender reasonably shall request, which reserves may be in addition
to any reserves required by the holder of the First Mortgage or any mortgage resulting from a Refinancing
Event.

                                (f)  Borrower shall cause the Lightstone Properties to be managed in accordance with the
standards of care for properties of like kind in their respective general areas and in accordance
with Section 12.1. Borrower shall (i) cause the Lightstone Properties to be maintained in good repair,
(ii) cause all principal, interest and other sums coming due under the First Mortgage and any mortgages
resulting from Refinancing Events to be paid promptly when due and cause all other covenants, conditions
and agreements set forth in the First Mortgage and any mortgages resulting from Refinancing Events,
and all related documents, to be fully and timely performed, and (iii) cause each Lightstone Property
to be kept insured in compliance with the requirements of the First Mortgage, or any mortgage resulting
from a Refinancing Event, or if there be none, then by policies satisfactory to Lender and by insurance
companies satisfactory to Lender (acting reasonably in both instances) and in amounts not less than
the full insurable value of the Improvements on the insured Lightstone Property, (iv) cause to be
paid all insurance premiums on policies required hereunder and under the First Mortgage and any mortgages
resulting from Refinancing Events and all taxes, assessments and other charges imposed upon the Lightstone
Properties, as and when the same shall become due. A condition, circumstance, or management practice
asserted by Lender to constitute a failure of compliance with the provisions of the first sentence
of this paragraph (f) or the preceding clause (i) as to a Property subject to the 

	

  

	
lien of the First Mortgage, or a mortgage resulting from a Refinancing Event, shall not be a default
hereunder unless and until the same condition, circumstance or management practice has been asserted
by the holder of such First Mortgage, or mortgage resulting from a Refinancing Event, to be a default
thereunder. 

                                (g)  Borrower shall not enter into or permit the consummation of any transaction with respect
to either Lightstone Property with an Affiliate of Borrower, of Lichtenstein or of either Lightstone
Property Owner without the prior written consent of Lender which consent shall not be unreasonably
withheld or delayed, but no such consent shall be needed for transactions which are commercially
reasonable and at rates and terms, including, without limitation, prices that are competitive with
terms offered by other providers of similar goods and services to similar properties in the County
in which the Lightstone Property or Lightstone Properties are located.

                                (h)  Borrower shall not, without the prior written consent of Lender which shall not be unreasonably
withheld or delayed, cause or permit either Lightstone Property Owner to (i) sell, lease, exchange
or otherwise dispose of or Transfer all or any portion of its Lightstone Property (or any interest
therein), except for Occupancy Leases and otherwise as expressly permitted herein, it being understood
that Borrower shall have the right to sell or permit the sale of personal property in the ordinary
course of business to the extent that such personal property is obsolete, worn out or otherwise not
required for the operation or ownership of the Lightstone Property to which it appertains; provided,
however, that any personal property which has been disposed of shall be replaced with new personal
property to the extent necessary for the maintenance and operation of such Lightstone Property in
compliance with the terms of this Loan Agreement and the other Loan Documents, (ii) consummate any
Refinancing Event or otherwise encumber any part of its Lightstone Property, except as otherwise
expressly provided herein or in the Security Instruments, it being further understood that Borrower
shall have the right to permit the Lightstone Property Owners to incur unsecured trade account debts
payable in the normal course of business, (iii) enter into any agreement with any power or authority
having the right of condemnation or eminent domain for a Taking of its Lightstone Property, or any
portion of its Lightstone Property, or the 

	

  

	
temporary use thereof, (iv) knowingly take or permit a Lightstone Property Owner to take any actions
or knowingly fail to take such actions so as materially and adversely to impair the economic value
of a Lightstone Property or the Security Instruments executed and delivered or to be executed and
delivered pursuant to the terms hereof, (v) make or permit either of the Lightstone Property Owners
to make any alterations or renovations or undertake any development, redevelopment or construction
of any Improvements on a Lightstone Property, or any portion thereof, except for any alterations
that will not have an adverse affect on the physical or investment characteristics of the Lightstone
Property, (vi) knowingly take or permit either Lightstone Property Owner to take any action which
would materially, adversely affect the zoning or building classification of its Lightstone Property,
(vii) permit a default or an Event of Default, or an event or condition which upon notice or the
passage of time or otherwise would result in the occurrence of a default or an Event of Default under
any of the Loan Documents.

                                (i)  The beneficial owner, member and manager of the Lightstone Property Owners, and Lichtenstein
as a beneficial owner, member and manager of Borrower, shall not be changed or their ownership interests
Transferred, and no new members or managers shall be admitted to or appointed therein, directly or
indirectly, without the prior written consent of Lender which shall not be unreasonably withheld
or delayed; Lender agrees to consent to any such Transfer of an interest that is less than a fifty
percent (50%) interest in the entity in question, both alone and when added to all other prior and
simultaneous Transfers of interests in the same entity, provided that any such Transfer is to Lichtenstein’s
spouse or children or a trust created for any of them, and provided further, however, that any security
interest held by Lender is not adversely affected thereby or that any such adverse effect is remedied
to Lender’s satisfaction at Lichtenstein’s or Borrower’s expense. Without the prior
written consent of Lender, the certificate of formation and operating agreement of Borrower and the
Lightstone Property Owners shall not be amended or supplemented, and no equity interests or voting
rights in any of them shall be changed, except for such technical amendments of any thereof as shall
be required for compliance with applicable law and then only after twenty (20) days prior notice to Lender.

	

  

	
                                (j)  Borrower and the Lightstone Property Owners shall (i) not encumber or permit the encumbrance
of a Lightstone Property or permit any mechanics’, materialmens’ or laborers’ liens
to be filed against a Lightstone Property or to remain filed against a Lightstone Property for more
than ninety (90) days, or after foreclosure thereof shall have begun without causing the same to
be discharged by bonding or otherwise, and (ii) continue to maintain policies of insurance with respect
to the Lightstone Properties conforming to the requirements of Section 2.2 hereof. The Lightstone
Property Owners shall not engage in any business or activity not related to the ownership, management,
and operation of its Lightstone Property. 

                                (k)  Borrower and the Lightstone Property Owners shall maintain or cause to be maintained in full
force and effect all licenses and permits required for the operation of the Lightstone Properties
in a manner at least equal to properties of like kind in their respective general areas in compliance
with all Legal Requirements.

                                (l)  As soon as possible after the closing of the Loan, Borrower shall furnish to Lender
full and complete copies of all documents, surveys and maps, pertaining in any way to acquisition
and financing of the Lightstone Properties and not previously provided to Lender. 

                                (m)  Promptly after receipt by Borrower or a Lightstone Property Owner of a demand, a default
notice, or an inquiry concerning a Lightstone Property from the holder of the First Mortgage, or
a mortgage resulting from a Refinancing Event, the recipient thereof shall forward a copy thereof
to Lender.

                7.2           Covenant by Lender.  Lender covenants that as long as no Event of Default shall have occurred under this Agreement or
under any of the other Loan Documents, and be continuing, Lender shall not assign the Note or any
of Lender’s rights under the Note, this Agreement, or any of the other Loan Documents to any
other Person prior to the Maturity Date.

                7.3           Certain Sources and Uses of Funds.  Lender, Borrower and the Lightstone Property Owners acknowledge their collective intention that (except
to the extent, if at all, prohibited by the 

	

  

	
First Mortgage, or mortgages resulting from Refinancing Events) cash flow from each of the Lightstone
Properties shall be considered fungible for all purposes of this Loan Agreement and the other Loan
Documents so that, for example, if at any time there shall not be cash flow available from one Lightstone
Property (“Property A”) to pay Impositions with regard thereto, or to keep the required
insurance in effect with regard thereto, or to maintain Property A in good repair, and if at such
time, there shall be a surplus of cash flow from the other Lightstone Property (“Property B”),
it is intended that such surplus shall be used to meet the requirements of Property A, provided that
so doing shall not be a default under the First Mortgage, or a mortgage on Property B resulting from
a Refinancing Event.

ARTICLE EIGHT

EXPENSES

                8.1           Closing Costs.  Borrower shall reimburse Lender for all reasonable out-of-pocket expenses incurred by Lender in connection
with the transactions contemplated by this Loan Agreement, including, but not limited to, the fees,
expenses and disbursements of Lender’s counsel, and a loan commitment fee of Thirty Seven Thousand
Five Hundred Dollars ($37,500) and all other reasonable costs and expenses, including but not limited
to, the costs of surveys, title insurance premiums and fees and stamp, transfer or other taxes or
fees, incurred by or on behalf of Lender in connection with the transactions contemplated hereby.
Borrower shall pay or cause to be paid and save Lender harmless from the non-payment or delayed payment
of any and all stamp, transfer and other taxes, fees and excises, if any, including any interest
and penalties which may be determined to be payable in connection with the Loan, and the enforcement
of any of Lender’s rights or remedies hereunder and the advance of the Loan, including, without
limitation, the fees, expenses and disbursements of Lender’s counsel, architects, engineers
and other consultants.

	

  

	
ARTICLE EIGHT-A

BROKERAGE

                8-A.1      Mutual Representations.  Lender and Borrower each represents to the other that it has not dealt with any broker, “finder”
or other intermediary in connection with this Loan Agreement or the transaction of which it is a
part.

                8-A.2      Indemnities.  If the foregoing representation be untrue, the party that shall have made the untrue representation
(the “indemnifying party”) shall indemnify and hold harmless the other party (the “indemnified
party”) from and against any and all loss, cost and expense (including, without limitation,
reasonable attorneys’ fees) the indemnified party may pay, suffer or incur as the result of
any claim made by any Person with whom the indemnifying party shall have dealt in connection with
this Loan Agreement and/or the transaction of which it is a part.

ARTICLE NINE

SURVIVAL OF REPRESENTATIONS AND

WARRANTIES; BINDING EFFECT; INDEMNITY

                9.1           Survival of Representations and Warranties; Binding Effect; Indemnity.  (a) All covenants, agreements, representations and warranties in the Loan Documents and in the certificates
and other instruments delivered to Lender shall survive the execution and delivery of this Loan Agreement
and except as otherwise provided therein, shall continue in effect so long as this Loan Agreement,
the Loan or any of the instruments described in this Loan Agreement are outstanding. All covenants,
agreements, representations and warranties in the Loan Agreement and in such certificates and other
instruments shall bind the party making the same and its successors and assigns and shall inure to
the benefit of and be enforceable by each party to whom 

	

  

	
made and its successors and assigns (subject to and in accordance with the non- recourse provisions
set forth in Section 14.9 hereof). 

                                (b)
Borrower agrees to indemnify and hold Lender harmless from and against any expenses, costs, losses
and other damages (including court costs and attorneys’ fees and expenses) suffered or incurred
by or on behalf of Lender as a result of or arising out of (i) the breach of any representation,
warranty or covenant of Borrower or either Lightstone Property Owner hereunder or under any of the
other Loan Documents or certificates and other instruments delivered to Lender, and/or (ii) any action,
suit, charge, complaint, proceeding or other similar matter arising out of or in any way connected
to any condition in, on, about or of either of the Lightstone Properties, or arising out of or in
any way connected to any transaction or event relating to the acquisition or ownership of the Lightstone
Properties.

ARTICLE TEN

DEFAULTS

              10.1        Event of Default.  If during the Term one or more of the following events (each an “Event of Default”) shall
occur and be continuing: 

	 

		(i)	Borrower shall default in the payment of any installment of Interest or any other Indebtedness under the Loan Documents, when and as the same becomes due and payable and such nonpayment continues for a period of ten (10) business days after notice thereof from Lender; or 
		 	 
		(ii)	This Agreement, or any of the other Loan Documents, or the transaction of which they are a part, or
the enforcement of any right of Lender or any obligation of Borrower and/or either of the Lightstone
Property Owners, creates an event of default under the First Mortgage or any mortgage resulting from
a Refinancing Event; or

	

  

		(iii)	There shall occur an event of default under the First Mortgage, or any mortgage resulting from a Refinancing
Event, except that a default under the First Mortgage, or any mortgage resulting from a Refinancing
Event, shall be an Event of Default under this Agreement only if (a) such default is a default for
sixty (60) days or more in payment when due of principal and/or interest under the First Mortgage,
or mortgage resulting from a Refinancing Event, or (b) the holder of the First Mortgage, or mortgage
resulting from a Refinancing Event, has commenced an action to foreclose the lien thereof; or
			 
		(iv)	any of the representations and warranties set forth herein, in any other Loan Document or in any certificate
executed and delivered by Borrower or Lichtenstein to Lender shall not be true and correct in all
material respects or shall be knowingly and materially misleading when made, or there shall be any
default in the performance of or compliance with any of the terms, covenants, or conditions hereof,
or in any other Loan Document, other than in the payment of Interest or any payment of the Principal
of the Loan or any other Indebtedness under the Loan Documents, and such default shall continue for
more than twenty (20) business days after Lender shall have given written notice thereof to Borrower,
unless any such default cannot be cured by payment of a sum of money and Borrower shall within such
period commence and continue to prosecute with due diligence and dispatch the curing of such default; or 
			 
		(v)	Borrower shall (a) fail to pay or cause all Impositions and any fines, penalties, interest or costs
added thereto, or (b) fails to maintain or cause to be maintained in good standing the insurance
policies required pursuant to the terms hereof for a period of ten (10) days after notice thereof
from Lender; or

	

  

		(vi)	a Bankruptcy Event shall have occurred with respect to Borrower or either Lightstone Property Owner;
or 
			 
		(vii)	a default under Section 7.1 hereof; or 
			 
		(viii)	a judgment or judgments in excess of Two Hundred Thousand Dollars ($200,000) in the aggregate shall
be entered against Borrower and/or any Lightstone Property Owner and shall remain unpaid, unappealed,
undischarged, unbonded, unstayed and undismissed for a period of sixty (60) days after the date of
the entry thereof;

	 
	
then, and in any such Event of Default, Lender at any time thereafter may give Borrower a Notice of
such Event of Default, and if such Event of Default is not cured within twenty (20) business days
after receipt of such Notice, then, at any time thereafter:

	 

		(a)	Lender may declare the Principal, Interest and any other Indebtedness outstanding under the Note and
the other Loan Documents to be immediately due and payable; provided, however that if and as long
as the only uncured Event of Default shall be in the timely payment of an installment of Interest
on the Loan, and if (i) no default or event of default shall have occurred under the First Mortgage
or any other mortgage resulting from a Refinancing Event whether or not subject to a grace period
and opportunity to cure and whether or not the holder of the First Mortgage or such other mortgage
shall have given any notice or taken any other action with regard thereto, and (ii) there shall be
no other default under this Loan Agreement or any other Loan Document which, with the passage of
a period of time or the giving of a notice, or 

	

  

	 	both, would become an Event of Default, then Lender shall not take action to enforce Lender’s
rights under the Pledge Agreement against the Pledged Collateral thereby unless and until such Event
of Default has been an Event of Default for a period of one (1) year.
		 

		(b)	subject to the proviso in the preceding clause (ii), Lender may pursue any and all of its remedies, provided for under law
and in equity and any or all of the Loan Documents 

	 
	
                10.2         Costs; Right to Cure.  All costs and expenses incurred by or on behalf of Lender (including, without limitation, reasonable
attorneys’ fees and expenses) resulting from any default by Borrower and/or either Lightstone
Property Owner under this Loan Agreement or any other Loan Documents shall be paid by Borrower. Upon
the occurrence of an Event of Default, Lender shall have the right, but not the obligation, to cure
any such default. Borrower and the Lightstone Property Owners hereby appoint Lender as their true
and lawful attorney-in-fact, to take any such action and to cure any such defaults in the name and
on behalf of such Person, which power of attorney shall be coupled with an interest and be irrevocable
so long as any of the Indebtedness hereunder or under the Note is outstanding. Any costs or expenses
incurred by Lender in connection with any of the foregoing shall be payable, together with interest
at the rate of fifteen (15%) percent per annum (or such lesser rate as shall be the maximum rate
permitted by law) from the date incurred until paid. 

                10.3         Cross-Default.  For purposes hereof and all of the Loan Documents, an Event of Default under any of the Loan Documents
shall be deemed to be an Event of Default with respect to any and all of the other Loan Documents.

	

  

	
ARTICLE ELEVEN

BOOKS; RECORDS; STATEMENTS AND AUDITS

                11.1         Books and Records.  Borrower shall keep or shall cause the Lightstone Property Owners to keep accurate, full and complete
books, records and accounts showing the assets, liabilities, operations, transactions and financial
condition of the Lightstone Properties. All books, records, accounts and financial statements shall
be accurate and complete in all material respects, shall present fairly the financial position and
results of the operations of the Lightstone Properties and shall be prepared in accordance with generally
accepted accounting principles (on a cash basis) consistently applied. 

                11.2         Statements. 

                                (a)           Reports to Lender.  The Lightstone Property Owners or Borrower shall furnish to Lender the financial reports required
to be submitted to Wachovia, as holder of the First Mortgage on the Lightstone Properties, within
the time limits set forth in the First Mortgage and in any event, annual audited financial statements
by March 1 in each year. This requirement shall continue whether or not the First Mortgage remains
outstanding. If the First Mortgage is replaced by a new mortgage as the result of a Refinancing Event,
Lender may, but shall not be required to, accept the reports to be delivered to the holder of the
mortgage resulting from the Refinancing Event in place of the foregoing requirements. 

                                (b)           Income Reports.  In addition to the requirements of subsection (a) above, Borrower shall furnish, or cause the Lightstone
Property Owners to furnish, to Lender no later than March 31 of each year (i) a statement itemizing
the sources and types of gross revenue for the preceding Fiscal Year paid by tenants to each Lightstone
Property Owner in accordance with 

	

  

	
Occupancy Leases and reflecting other miscellaneous income, and (ii) such other year end reports and
other information as Lender reasonably may request.

                                (c)           Other Reports.  In addition, Borrower shall furnish or cause the Lightstone Property Owners to furnish to Lender
copies of any and all reports furnished under any management agreement or leasing agreement to the
extent not otherwise provided to Lender hereunder. 

                11.3         Lender’s Right to Audit.  The books, accounts and records of Borrower and the Lightstone Property Owners shall at all times
be maintained at Borrower’s Property Management Office. Upon reasonable notice to Borrower,
Lender may at its option and expense conduct audits of the books, records and accounts of the Lightstone
Properties, on either a continuing or periodic basis or both, by employees of Lender, an Affiliate
of Lender, or by a national firm of independent certified public accountants selected by Lender (“Auditor”).
If Lender’s accountants are not the Auditor and disagree with the Auditor’s decision as
to any matter concerning the books, accounts and records of either Lightstone Property, Lender may
notify Borrower of such disagreement, and Borrower and Lender shall cause the Auditor and Lender’s
accountants, respectively, to hold such meetings and discussions as they shall deem necessary concerning
the disagreement and to use all reasonable efforts to reach a mutually acceptable resolution of the
matter in question. If the Auditor and the Lender’s accountants are unable to reach a mutually
acceptable resolution of the matter in question, they shall select a national firm of certified public
accountants to act as a third auditor to review and make a determination as to the matter in question.
Such third auditor’s determination shall be final and binding upon the parties, the Auditor
and Lender’s accountants. Such third auditor shall have full access to the books, records and
accounts of the Lightstone Properties.

	

  

	
                The charges and expenses of such third auditor shall be paid by Borrower as an Operating Expense. 

ARTICLE TWELVE

MANAGEMENT OF THE PROPERTIES

                12.1         Management.  Borrower shall be responsible for providing or causing to be provided all services necessary, proper,
desirable or appropriate for the successful leasing, operating, repair and management of the Lightstone
Properties in the manner of similar properties in their respective general areas, and shall cause
such management services to be performed as hereinafter set forth. Any management agreement shall
be in form and substance satisfactory to Lender and shall be terminable upon thirty (30) days’
prior notice. Any management agreement shall also provide that all amounts coming due to the managing
agent thereunder shall be earned, due and payable only if, as, and when, and to the extent that,
all Indebtedness amounts then due and payable have been paid. Any managing agent must be approved
by Lender before retained to serve as such. Subject to the preceding provisions of this Section,
Lender agrees not to unreasonably withhold Lender’s approval of a manager selected by Borrower,
so long as the aggregate amount of fees and other compensation to be paid to said managing agent,
pursuant to a management agreement between Borrower and said managing agent that is acceptable to
Lender, shall not exceed three and one-half percent (3.5%) of the rent and other direct income from
the operation of the Lightstone Property or Lightstone Properties. Any replacement managing agent
or management agreement shall be subject to Lender’s prior written approval. The managing agent
or managing agents of the Lightstone Properties always shall use their best efforts (and their respective
management agreements expressly shall so require) to manage the Lightstone Properties in such a manner
that the rental income derived therefrom would qualify as “rents from real property” as
that term is defined in Section 856(d)(1) of the Internal Revenue Code if the owner were a real estate investment trust.

	

  

	
                12.2         Service Agreements.  Copies of all service agreements shall be delivered to Lender, if Lender so requests, and shall be
maintained at Borrower’s Property Management Office available for inspection by Lender at all
reasonable times.

                12.3         Occupancy Leases.  All Occupancy Leases with respect to the Lightstone Properties will be bona fide, good faith, arm’s
length leases in writing with third parties that are not Affiliates of Borrower or either of the
Lightstone Property Owners (and Borrower will promptly furnish copies thereof to Lender, if Lender
so requests, and will maintain copies thereof at Borrower’s Property Management Office available
for Lender’s inspection at all reasonable times). 

ARTICLE THIRTEEN

TRANSFER OF INTERESTS; NO FURTHER FINANCING

                13.1         Transfers.  (a) Except as otherwise expressly set forth herein, no Lightstone Property, or any part thereof,
no Pledged Collateral, and no direct or indirect interest in either Lightstone Property Owner or
in Borrower, or in any entity that has any direct or indirect interest in any Lightstone Property
Owner or in Borrower, shall be Transferred without the prior written consent of Lender which shall
not be unreasonably withheld. Any Transfer or attempted Transfer not permitted under the terms hereof
shall be void ab initio and of no force or effect.

                13.2         No Financing.  Neither Borrower, nor any Lightstone Property Owner, nor any of their Affiliates, shall have the
right to enter into a Refinancing Event without the prior written consent of Lender which shall not
be unreasonably withheld.

	

  

	
ARTICLE FOURTEEN

MISCELLANEOUS

                14.1         Notices.  All notices, demands, consents, requests, instructions and approvals (“Notice”) herein
required or permitted shall be in writing and shall be either telecopied (except that default Notices
shall not be effective if only telecopied), delivered by a reputable overnight courier that provides
a receipt to sender, or mailed by certified mail, return receipt requested, postage pre-paid, to
the recipient at such recipient’s address set forth below (or at such other address for a party
as shall be specified by Notice given pursuant hereto): 

	 

	If to Borrower or either Lightstone

    Property Owner to: 	
		 [Name of Addressee                       ]

       c/o The Lightstone Group

       326 Third Street

       Lakewood, New Jersey 08701

       Attention: David Lichtenstein

     Telecopy: (732) 363 7183
	 	
	and in any of the foregoing

    cases with a copy to: 	
	 	Sheldon Chanales, Esq.

      Herrick, Feinstein LLP

      2 Park Avenue

      New York, New York 10016

      Telecopy: (212) 592-1472
	 	 
		
	And a copy to:	Corporate Counsel

      The Lightstone Group

      326 Third Street

      Lakewood, NJ 08701

    Telecopy: (732) 363-7183
	 	
	and if to Lender to: 	 
		Presidential Realty Corporation 

      180 South Broadway

      White Plains, New York 10605 

      Attention: Mr. Jeffrey F. Joseph, President

      Telecopy: (914) 948-1327

	

	with a copy to: 	 
		Cuddy & Feder LLP

90 Maple Avenue 

    White Plains, New York 10601
		 
		 Attention: Kenneth F. Jurist, Esq. and

    Chauncey L. Walker, Esq.

    Telecopy: (914) 761-5372  
		

	 
	
All Notices shall be effective and deemed received three days after deposit in the mail, postage prepaid,
if mailed, and upon receipt in the case of telecopy or if sent by overnight courier. Each Notice
shall bear the date on which it is delivered or mailed. In the event Notice is sent by telecopy,
the notifying party shall endeavor also to mail a copy of such Notice, but failure to do so shall
not affect the validity of such Notice as so telecopied, except with respect to default Notices. 

                14.2         Entire Agreement; No Oral Changes   This Loan Agreement, the other Loan Documents, the other documents and instruments referred to
herein, and any other documents executed and delivered contemporaneously herewith, embody the entire
agreement and understanding between Lender and Borrower and their Affiliates relating to the subject
matter hereof and supersede all prior agreements and understandings relating thereto. This Loan Agreement
may not be changed orally, but only by an instrument in writing signed by the party against whom
enforcement of any waiver, change, modification or discharge is sought. 

                14.3         Captions.  The headings to the Articles and Sections of this Loan Agreement have been inserted solely for convenience
of reference and shall not modify, define or limit the provisions of this Loan Agreement. 

                14.4         Governing Law.  This Loan Agreement and the other Loan Documents have been prepared, negotiated, executed and delivered
wholly in the State of New York and shall be 

	

  

	
governed by, construed, and enforced in accordance with the laws of the state of New York applicable
to agreements to be performed entirely within New York. 

                14.5         Further Assurances.  Borrower agrees to execute and deliver such other instruments as may be reasonably requested from
time to time by Lender to effect and confirm the transactions described and contemplated hereby. 

                14.6         Interest Limitation.  Notwithstanding anything contained to the contrary in this Loan Agreement, or the Note or any other
Loan Document, the obligation of Borrower to pay Interest to Lender shall be subject to the limitation
that such payment of Interest shall not be required to the extent that receipt thereof by Lender
would be contrary to the provisions of law applicable to Lender limiting the maximum rate of interest
which may be charged or collected by Lender. 

                14.7         Estoppel Certificates.  Promptly upon the written request of Lender and Borrower shall execute and deliver to Lender, in
such form as Lender shall reasonably request, a certificate confirming (i) that as of the date of
such certificate the Loan Documents are in full force and effect (ii) the amount of Principal and
Interest outstanding as of the date of such certificate, (iii) that as of the date of such certificate
there is no Default or Event of Default under the Loan Documents, or if there is any such Default
or Event of Default describing the same in reasonable detail, and (iv) such other matters as Lender
may reasonably request. 

                14.8         Interpretation.  In this Agreement, unless otherwise specified, (i) singular words include the plural, and plural
words include the singular; (ii) words that include a number of constituent parts, things or elements
shall be construed as referring separately to each constituent part, thing or element thereof, as
well as to such constituent parts, things or elements as a whole; (iii) all pronouns and any variations
thereof shall be deemed to refer to the masculine, feminine, 

	

  

	
neuter, singular or plural forms thereof, as the context shall require; (iv) references to any Person
include its successors and assigns and, in the case of an individual, the word “successors”
includes such individual’s heirs, devisees, legatees, executors, administrators, and personal
representatives; (v) references to any statute or other law include all rules, regulations and orders
adopted or made thereunder and all statutes or other laws amending, consolidating or replacing the
statute or law referred to; (vi) references to any agreement or other document include all subsequent
amendments or other modifications thereof; (vii) the words “include” and “including”,
and words of similar import, shall be deemed to be followed by the words “without limitation”;
(viii) the words “hereto”, “herein”, “hereof” and “hereunder”,
and words of similar import, refer to this Loan Agreement in its entirety; (ix) references to Articles,
Sections or paragraphs are to the Articles, Sections or paragraphs of this Loan Agreement; (x) no
reference to a financing, Refinancing Event, refinancing, or mortgage on either or both of the Lightstone
Properties (other than the First Mortgage) shall be construed as permitting any such financing, Refinancing
Event, refinancing, or mortgage event to occur without Lender’s prior consent, all of which
(except as otherwise in this Loan Agreement expressly provided to the contrary) shall require Lender’s
prior consent (which Lender covenants not unreasonably to withhold) (reference is made to Article
13 hereof); and (xi) references to mortgages shall include deeds of trust, and references to foreclosure
of a mortgage shall include the acts of a trustee under a deed of trust to realize upon the security
for the benefit of the beneficiary by exercising a power of sale, taking possession of the mortgaged property, or otherwise.

                14.9         Non-Recourse.  Notwithstanding anything herein or in any other Loan Document to the contrary, except as otherwise
set forth in this Section 14.9 to the contrary, Lender shall not enforce the liability and obligation
of Borrower or any of its members to perform and observe the obligations contained in this Agreement
or any of the other Loan Documents by any action or proceeding wherein a money judgment shall be
sought against Borrower or its members, except that Lender may bring a foreclosure action, action
for specific performance, or other appropriate 

	

  

	
action or proceeding (including, without limitation, an action to obtain a deficiency judgment) solely
for the purpose of enabling Lender to realize upon (i) Borrower’s interest in the Pledged Collateral,
(ii) rents to the extent received by Borrower (or received by its members) after the occurrence of
an Event of Default (the “Recourse Distributions”) and (iii) any other collateral given to Lender under the Loan Documents (the collateral described
in the foregoing clauses (i) - (iii) is hereinafter referred to as the “Default Collateral”); provided, however, that any judgment in any such action or proceeding shall be enforceable against Borrower or its members,
as the case may be, only to the extent of any such Default Collateral. The provisions of this Section
shall not, however, (a) impair the validity of the debt evidenced by the Note or in any way affect
or impair this Agreement or any of the other Loan Documents or the right of Lender to foreclose upon
the Pledged Collateral following the occurrence of an Event of Default; (b) impair the right of Lender
to name Borrower as a party defendant in any action or suit for judicial foreclosure and sale under
this Agreement; (c) affect the validity or enforceability of the Note, this Agreement, or any of
the other Loan Documents, or impair the right of Lender to seek a personal judgment against Guarantor;
(d) impair the right of Lender to obtain the appointment of a receiver; (e) impair the enforcement
of the Pledge Agreement; (f) impair the right of Lender to bring suit for a monetary judgment against
Borrower with respect to any losses resulting from fraud or intentional misrepresentation by Borrower,
Guarantor or any of their Affiliates in connection with this Agreement, the Note or the other Loan
Documents, and the foregoing provisions shall not modify, diminish or discharge the liability of
Borrower, Guarantor or any of their Affiliates with respect to same; (g) impair the right of Lender
to bring suit for a monetary judgment against Borrower to obtain the Recourse Distributions received
by Borrower including, without limitation, the right to bring suit for a monetary judgment to proceed
against Guarantor to the extent of Guarantor’s liability under the Guaranty, and the foregoing
provisions shall not modify, diminish or discharge the liability of Borrower or Guarantor with respect
to same; (h) impair the right of Lender to bring suit for a monetary judgment against Borrower with
respect to any losses resulting from Borrower’s misappropriation of tenant security deposits
or other payments, including, without 

	

  

	
limitation, rent collected more than one (1) month in advance, and the foregoing provisions shall not
modify, diminish or discharge the liability of Borrower with respect to same; (i) impair the right
of Lender to enforce the provisions of Articles Six and Seven of this Agreement, even after repayment
in full by Borrower of Principal, Interest and any other amount due to Lender or to bring suit for
a monetary judgment against Borrower with respect to any losses resulting from any obligation set
forth in said Articles; (j) prevent or in any way hinder Lender from exercising, or constitute a
defense, or counterclaim, or other basis for relief in respect of the exercise of, any other remedy
against any or all of the collateral securing the Note as provided in the Loan Documents; (k) impair
the right of Lender to bring suit for a monetary judgment against Borrower with respect to any losses
resulting from any misappropriation or conversion of insurance proceeds and condemnation awards,
and the foregoing provisions shall not modify, diminish or discharge the liability of Borrower with
respect to same; (l) impair the right of Lender to sue for, seek or demand a deficiency judgment
against Borrower solely for the purpose of foreclosing the Pledged Collateral or any part thereof; provided, however, that any such deficiency judgment referred to in this clause (l) shall be enforceable against Borrower
and Guarantor only to the extent of any of the Pledged Collateral; (m) impair the ability of Lender
to bring suit for a monetary judgment against Borrower with respect to any losses resulting from
arson or physical waste to or of either of the Lightstone Properties or damage to either Lightstone
Property in each case resulting from the intentional acts or intentional omissions of Borrower, Guarantor
or any of their Affiliates; (n) impair the right of Lender to bring a suit for a monetary judgment
against Borrower in the event of the exercise of any right or remedy under any federal, state or
local forfeiture laws resulting in the loss of the security interest in the Pledged Collateral, or
the priority thereof; (o) be deemed a waiver of any right which Lender may have under any provision
of the Bankruptcy Code to file a claim for the full amount of the debt or to require that all the
Pledged Collateral shall continue to secure all of the debt; (p) impair the right of Lender to bring
suit for monetary judgment against Borrower with respect to any losses resulting from any claims,
actions or proceedings initiated by Borrower (or any Affiliate of Borrower) alleging that the relationship
of Borrower and Lender is 

	

  

	
that of joint venturers, partners, tenants in common, joint tenants or any relationship other than
that of debtor and creditor; or (q) impair the right of Lender to bring suit for a monetary judgment
with respect to any losses resulting from a Transfer in violation of the provisions hereof. The provisions
of this Section shall be inapplicable to Borrower if (a) any proceeding, action, petition or filing
under the Bankruptcy Code, or any similar state or federal law now or hereafter in effect relating
to bankruptcy, reorganization or insolvency, or the arrangement or adjustment of debts, shall be
filed by, consented to or acquiesced in by or with respect to Borrower, or if Borrower shall institute
any proceeding for its dissolution or liquidation, or shall make an assignment for the benefit of
creditors or (b) Borrower or any Affiliate contests or interferes with Lender’s enforcement
of its rights and remedies hereunder or under the Loan Documents by asserting any defense (x) as
to the validity of the obligations under the Loan Documents or in any way relating to the structure
of the Borrower or the enforceability of Lender’s rights and remedies under the Loan Documents,
or (y) for the purpose of delaying, hindering or impairing Lender’s rights and remedies under
the Loan Documents (collectively, a “contest”) (provided that if any such Person obtains
a non-appealable order successfully asserting a contest, Borrower shall have no liability under this
clause (b)), in which event Lender shall have recourse against all of the assets of Borrower including,
without limitation, any right, title and interest of Borrower in and to the Pledged Collateral.

                14.10       Counterparts.  This Agreement may be executed in counterparts, and all counterparts so executed shall for all purposes
constitute but one Agreement, binding on all the parties hereto, notwithstanding that all parties
shall not have executed the same counterpart.

                14.11       No Partnership.  Nothing contained in this Agreement shall be deemed to constitute the parties hereto as partners
or joint venturers in any manner or matter whatsoever. 

	

  

	
                14.12       Resolution of Drafting Ambiguities.  Lender, Borrower and the Lightstone Property Owners acknowledge that they were represented by experienced
counsel in connection with the preparation, execution and delivery of the Loan Documents and that
their counsel negotiated all of the Loan Documents on their behalf and that any rule of construction
under any applicable law to the effect that ambiguities are to be resolved against the drafting party
shall not be employed in the interpretation of any of the Loan Documents. 

                14.13       No Waiver; Cumulative Remedies and Rights  Lender shall not by any act, delay, omission or otherwise be deemed to have waived any of its
rights or remedies hereunder, and no waiver shall be valid unless in writing, signed by Lender, and
then only to the extent therein set forth. A waiver by Lender of any right or remedy hereunder on
any one occasion shall not be construed as a bar to any right or remedy which Lender would otherwise
have had on any future occasion. No failure to exercise nor any delay in exercising on the part of
Lender, any right, power or privilege hereunder, shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power or privilege hereunder preclude any other or future
exercise thereof or the exercise of any other right, power or privilege. The rights and remedies
hereunder provided are cumulative and may be exercised singly or concurrently and shall be construed
as affording Lender rights additional to and not exclusive of any rights and remedies conferred under
the laws of the state of New York, any other laws or any other Security Instrument or Loan Document. 

                14.14       Certain Consents.  If Borrower or any Lightstone Property Owner (the “requesting party”) shall seek the approval
by or consent of Lender under this Loan Agreement or any of the other Loan Documents, and Lender
shall fail or refuse to give such consent or approval, then the requesting party shall not be entitled
to any damages for any withholding or delay of such approval or consent by Lender, it being intended
that the requesting party’s sole remedy shall be an action for injunction or specific performance,
which remedy of an injunction or specific performance 

	

  

	
shall be available only in those cases in which Lender has expressly agreed under the applicable instrument
or agreement not unreasonably to withhold or delay its consent or approval. 

                14.15       Payment Days.  In the event that any payment of Interest, Principal, or any other payment to be made by Borrower
to Lender hereunder or under any of the other Loan Documents shall fall on a day which is a Saturday,
Sunday or any other day on which commercial banks in New York City are closed for business, any such
payment shall be made on the next succeeding business day. 

                14.16       Severability.  In the event that any provision of this Loan Agreement or the application thereof to Borrower or
the Lightstone Property Owners, in any circumstance, shall, to any extent, be invalid or unenforceable
under any applicable statute, regulation or rule of law, then such provision shall be deemed inoperative
to the extent that it may conflict therewith, and shall be deemed modified to conform to such statute,
regulation or rule of law, and the remainder of this Loan Agreement and the application of any such
invalid or unenforceable provision to parties, jurisdictions, or circumstances other than to whom
or which it is held invalid or enforceable, shall not be affected thereby nor shall same affect the
validity or enforceability of any other provision of this Loan Agreement. 

                14.17       Consent to Jurisdiction.  Any court action brought to interpret or enforce any provision of this Loan Agreement or any other
Loan Document or to prosecute any claim arising hereunder or thereunder must be commenced and maintained
in the state or federal courts in the State of New York. Borrower, the Lightstone Property Owners,
and their Affiliates hereby irrevocably submit to the exclusive jurisdiction and venue of the state
and federal courts in the State of New York for such purposes. Borrower hereby appoints Sheldon Chanales,
Esq. of Herrick, Feinstein LLP, 2 Park Avenue, New York, New York 10016, and any member of Herrick,
Feinstein LLP or any successor firm, as agent for Borrower, the Lightstone Property Owners and 

	

  

	
their Affiliates for receipt of service of process on their behalf in connection with any suit, writ,
restraint, execution or discovery or supplementary procedures in connection with the interpretation
and/or enforcement of any provision of this Loan Agreement and the other Loan Documents and any claims
arising hereunder or thereunder. Service shall be effected by any means permitted by the court in
which any action is filed, shall be deemed received as therein provided. 

                14.18       Waiver of Jury Trial.  Borrower and the Lightstone Property Owners hereby irrevocably waive all right to trial by jury in
any action, proceeding or counterclaim arising out of or relating to this Loan Agreement or any of
the other Loan Documents. 

[Signature page follows.]

	

  

	 	 	LIGHTSTONE MEMBER II LLC
	 	 	 	 
	 	 	By:	/s/ David Lichtenstein
	 	 	 	

	 	 	 	David Lichtenstein, Managing Member
	 	 	 	 
	 	 	PRESIDENTIAL REALTY CORPORATION
	 	 	 	 
	 	 	By:	/s/ Jeffrey F. Joseph
	 	 	 	

	 	 	 	       Jeffrey F. Joseph, President

	 
	
The undersigned Lightstone Property Owners have executed, acknowledged and delivered this Loan Agreement
for the purpose of evidencing their consent and agreement to this Loan Agreement to the extent applicable
to them:

	 	 	 	 
	 	 	SHAWNEE MALL LLC and
	 	 	BRAZOS OUTLETS CENTER LLC
	 	 	 	 
	 	 	 	 
	 	 	Both By:	/s/ David Lichtenstein
	 	 	 	

	 	 	 	        David Lichtenstein,

              President 

	

  

	State of New York                     	)
	 	)ss.:
	County of  Westchester          	)
	 	 

	On the 22nd day of December in the year 2004 before me, the undersigned, personally appeared Jeffrey F. Joseph, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.
	
 

	 	 /s/ Marilyn S. Becker
	 	

	 	Notary Public

    Marilyn S. Becker 

    Notary Public, State of New York

    No. 4694219 

    Qualified in Westchester County

    Commission Expires January 31, 2006    
	 	 

	State of New Jersey                     	)
	 	)ss.:
	County of Ocean                      	)
	 	 

	 
	On the 22nd day of December in the year 2004 before me, the undersigned, personally appeared David Lichtenstein, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.
	 

	 	 
	 	/s/ Sara Boxer
	 	

	 	Notary Public

    Sara Boxer 

    Notary Public of New Jersey

    My Commission Expires Feb. 14, 2008    

	

  

	
EXHIBIT A

LIGHTSTONE PROPERTIES

Shawnee Mall

4901 Kickapoo Street

Shawnee, Oklahoma 74801-1301

Brazos Outlets Center Mall

100 West Highway 332

Lake Jackson, Texas 77566

	

  

	
EXHIBIT B

LIGHTSTONE PROPERTY OWNERS

                The following Delaware limited liability companies, all having an address at 326 Third Street, Lakewood,
New Jersey 08701:

	 

	 	Shawnee Mall LLC	Shawnee Mall

      Shawnee, Oklahoma
	 	 	 
	 	Brazos Outlets Center LLC	Brazos Outlets Center Mall

      Lake Jackson, Texas
			

	

  

	
EXHIBIT C

PREPAYMENT AMOUNTS

	 

	Shawnee Mall	 	$	4,218,750.00	 
	 	 	
	 
	  	 	 	 	 
	Brazos Outlets Center Mall	 	$	5,156,125.00	 
	 	 	
	 
	 	 	$	9,375,875.00

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