Document:

<Page>

                                                                  Exhibit 10.514

                                                                 Loan No.: 59040
                                                          Servicing No.: 3204419
                                                  MERS MIN: 8000101-0000001252-5
================================================================================

                                 LOAN AGREEMENT

                            Dated as of July 19, 2005

                                     Between

                   Inland Western Bay Shore Gardiner, L.L.C.,
                 Inland Western Poughkeepsie Mid-Hudson, L.L.C.,
                 Inland Western Saratoga Springs Wilton, L.L.C.,
                Inland Western Westbury Merchants Plaza, L.L.C.,
                    Inland Western Orange 440 Boston, L.L.C.,
                    Inland Western Orange 53 Boston, L.L.C.,
                    Inland Western Hartford New Park, L.L.C.,
                  Inland Western Williston Maple Tree, L.L.C.,
               Inland Western West Mifflin Century III, L.P., and
                  Inland Western Pittsburgh William Penn, L.P.

                            collectively as Borrowers

                                       and

                             BANK OF AMERICA, N.A.,

                                    as Lender

================================================================================

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                        PAGE
<S>                   <C>                                                                 <C>
ARTICLE 1.       DEFINITIONS; PRINCIPLES OF CONSTRUCTION...................................1

     Section 1.1.     Definitions..........................................................1
     Section 1.2.     Principles of Construction..........................................16

ARTICLE 2.       GENERAL TERMS............................................................16

     Section 2.1.     Loan Commitment; Disbursement To Borrowers..........................16
     Section 2.2.     Interest Rate.......................................................17
     Section 2.3.     Loan Payments.......................................................18
     Section 2.4.     Prepayments.........................................................23

 ARTICLE 3.      CONDITIONS PRECEDENT.....................................................24

 ARTICLE 4.      REPRESENTATIONS AND WARRANTIES...........................................25

     Section 4.1.     Organization........................................................25
     Section 4.2.     Status Of Each Borrower.............................................25
     Section 4.3.     Validity Of Documents...............................................25
     Section 4.4.     No Conflicts........................................................26
     Section 4.5.     Litigation..........................................................26
     Section 4.6.     Agreements..........................................................26
     Section 4.7.     Solvency............................................................26
     Section 4.8.     Full And Accurate Disclosure........................................27
     Section 4.9.     No Plan Assets......................................................27
     Section 4.10.    Not A Foreign Person................................................27
     Section 4.11.    Enforceability......................................................27
     Section 4.12.    Business Purposes...................................................28
     Section 4.13.    Compliance..........................................................28
     Section 4.14.    Financial Information...............................................28
     Section 4.15.    Condemnation........................................................28
     Section 4.16.    Utilities And Public Access; Parking................................29
     Section 4.17.    Separate Lots.......................................................29
     Section 4.18.    Assessments.........................................................29
     Section 4.19.    Insurance...........................................................29
     Section 4.20.    Use Of Property.....................................................29
     Section 4.21.    Certificate Of Occupancy; Licenses..................................29
     Section 4.22.    Flood Zone..........................................................30
     Section 4.23.    Physical Condition..................................................30
     Section 4.24.    Boundaries..........................................................30
     Section 4.25.    Leases And Rent Roll................................................30
     Section 4.26.    Filing And Recording Taxes..........................................31
     Section 4.27.    Management Agreements...............................................31
     Section 4.28.    Illegal Activity....................................................31
     Section 4.29.    Construction Expenses...............................................32
</Table>

                                       -i-
<Page>

                                TABLE OF CONTENTS
                                   (continued)

<Table>
<Caption>
                                                                                        PAGE
<S>                   <C>                                                                 <C>
     Section 4.30.    Personal Property...................................................32
     Section 4.31.    Taxes...............................................................32
     Section 4.32.    Permitted Encumbrances..............................................32
     Section 4.33.    Federal Reserve Regulations.........................................32
     Section 4.34.    Investment Company Act..............................................32
     Section 4.35.    Reciprocal Easement Agreements......................................33
     Section 4.36.    No Change In Facts Or Circumstances; Disclosure.....................33
     Section 4.37.    Intellectual Property...............................................34
     Section 4.38.    Compliance With Anti-Terrorism Laws.................................34
     Section 4.39.    Patriot Act.........................................................34
     Section 4.40.    Ground Leases.......................................................35
     Section 4.41.    Survival............................................................35

ARTICLE 5.       BORROWER COVENANTS.......................................................35

     Section 5.1.     Existence; Compliance With Legal Requirements.......................35
     Section 5.2.     Maintenance And Use Of Property.....................................36
     Section 5.3.     Waste...............................................................36
     Section 5.4.     Taxes And Other Charges.............................................36
     Section 5.5.     Litigation..........................................................37
     Section 5.6.     Access To Property..................................................37
     Section 5.7.     Notice Of Default...................................................37
     Section 5.8.     Cooperate In Legal Proceedings......................................37
     Section 5.9.     Performance By Borrowers............................................37
     Section 5.10.    Awards; Insurance Proceeds..........................................38
     Section 5.11.    Financial Reporting.................................................38
     Section 5.12.    Estoppel Statement..................................................39
     Section 5.13.    Leasing Matters.....................................................40
     Section 5.14.    Property Management.................................................41
     Section 5.15.    Liens...............................................................42
     Section 5.16.    Debt Cancellation...................................................42
     Section 5.17.    Zoning..............................................................42
     Section 5.18.    ERISA...............................................................43
     Section 5.19.    No Joint Assessment.................................................43
     Section 5.20.    Reciprocal Easement Agreements......................................43
     Section 5.21.    Interest Rate Cap Agreement.........................................43
     Section 5.22.    Ground Leases.......................................................45

ARTICLE 6.       ENTITY COVENANTS.........................................................46

     Section 6.1.     Single Purpose Entity/Separateness..................................46
     Section 6.2.     Change Of Name, Identity Or Structure...............................50
     Section 6.3.     Business And Operations.............................................50
     Section 6.4.     Independent Director................................................50
</Table>

                                      -ii-
<Page>

                                TABLE OF CONTENTS
                                   (continued)

<Table>
<Caption>
                                                                                        PAGE
<S>                   <C>                                                                 <C>
ARTICLE 7.       NO SALE OR ENCUMBRANCE...................................................51

     Section 7.1.     Transfer Definitions................................................51
     Section 7.2.     No Sale/Encumbrance.................................................52
     Section 7.3.     Permitted Transfers.................................................52
     Section 7.4.     Lender's Rights.....................................................53
     Section 7.5.     Assumption..........................................................53
     Section 7.6.     Assumption by Inland Permitted Transferee...........................55

ARTICLE 8.       INSURANCE; CASUALTY; CONDEMNATION; RESTORATION...........................57

     Section 8.1.     Insurance...........................................................57
     Section 8.2.     Casualty............................................................60
     Section 8.3.     Condemnation........................................................61
     Section 8.4.     Restoration.........................................................61

ARTICLE 9.       RESERVE FUNDS............................................................65

     Section 9.1.     Required Repairs....................................................65
     Section 9.2.     Replacements........................................................66
     Section 9.3.     Intentionally omitted...............................................66
     Section 9.4.     Required Work.......................................................66
     Section 9.5.     Release Of Reserve Funds............................................68
     Section 9.6.     Tax And Insurance Reserve Funds.....................................71
     Section 9.7.     Environmental Remediation/Monitoring Reserve........................72
     Section 9.8.     Mid-Hudson Ground Lease Estoppel Reserve............................72
     Section 9.9.     Reserve Funds Generally.............................................72

ARTICLE 10.      INTENTIONALLY OMITTED....................................................74

ARTICLE 11.      EVENTS OF DEFAULT; REMEDIES..............................................74

     Section 11.1.    Event Of Default....................................................74
     Section 11.2.    Remedies............................................................78

ARTICLE 12.      ENVIRONMENTAL PROVISIONS.................................................79

     Section 12.1.    Environmental Representations And Warranties........................79
     Section 12.2.    Environmental Covenants.............................................79
     Section 12.3.    Lender's Rights.....................................................80
     Section 12.4.    Operations And Maintenance Programs.................................80
     Section 12.5.    Environmental Definitions...........................................81
     Section 12.6.    Indemnification.....................................................81

ARTICLE 13.      SECONDARY MARKET.........................................................83

     Section 13.1.    Transfer Of Loan....................................................83
     Section 13.2.    Delegation Of Servicing.............................................83
</Table>

                                      -iii-
<Page>

                                TABLE OF CONTENTS
                                   (continued)

<Table>
<Caption>
                                                                                        PAGE
<S>                   <C>                                                                 <C>
     Section 13.3.    Dissemination Of Information........................................83
     Section 13.4.    Cooperation.........................................................83

ARTICLE 14.      INDEMNIFICATIONS.........................................................84

     Section 14.1.    General Indemnification.............................................84
     Section 14.2.    Mortgage And Intangible Tax Indemnification.........................85
     Section 14.3.    ERISA Indemnification...............................................85
     Section 14.4.    Survival............................................................85

ARTICLE 15.      EXCULPATION..............................................................85

     Section 15.1.    Exculpation.........................................................85
     Section 15.2.    Environmental Remediation/Monitoring Exculpation....................87

ARTICLE 16.      NOTICES..................................................................88

     Section 16.1.    Notices.............................................................88

ARTICLE 17.      FURTHER ASSURANCES.......................................................89

     Section 17.1.    Replacement Documents...............................................89
     Section 17.2.    Recording Of Mortgage, Etc..........................................89
     Section 17.3.    Further Acts, Etc...................................................90
     Section 17.4.    Changes In Tax, Debt, Credit And Documentary Stamp Laws.............90
     Section 17.5.    Expenses............................................................91

ARTICLE 18.      WAIVERS..................................................................91

     Section 18.1.    Remedies Cumulative; Waivers........................................91
     Section 18.2.    Modification, Waiver In Writing.....................................92
     Section 18.3.    Delay Not A Waiver..................................................92
     Section 18.4.    Trial By Jury.......................................................92
     Section 18.5.    Waiver Of Notice....................................................93
     Section 18.6.    Remedies Of Borrowers...............................................93
     Section 18.7.    Waiver Of Marshalling Of Assets.....................................93
     Section 18.8.    Waiver Of Statute Of Limitations....................................93
     Section 18.9.    Waiver Of Counterclaim..............................................93

ARTICLE 19.      GOVERNING LAW............................................................94

     Section 19.1.    Choice Of Law.......................................................94
     Section 19.2.    Severability........................................................94
     Section 19.3.    Preferences.........................................................94

ARTICLE 20.      MISCELLANEOUS............................................................94

     Section 20.1.    Survival............................................................94
</Table>

                                      -iv-
<Page>

                                 LOAN AGREEMENT

     THIS LOAN AGREEMENT, dated as of July 19, 2005 (as amended, restated,
replaced, supplemented or otherwise modified from time to time, this
"AGREEMENT"), between BANK OF AMERICA, N.A., a national banking association,
having an address at Bank of America Corporate Center, 214 North Tryon Street,
Charlotte, North Carolina 28255 (together with its successors and/or assigns,
"LENDER") and Inland Western Bay Shore Gardiner, L.L.C., a Delaware limited
liability company, Inland Western Poughkeepsie Mid-Hudson, L.L.C., a Delaware
limited liability company, Inland Western Saratoga Springs Wilton, L.L.C., a
Delaware limited liability company, Inland Western Westbury Merchants Plaza,
L.L.C., a Delaware limited liability company, Inland Western Orange 440 Boston,
L.L.C., a Delaware limited liability company, Inland Western Orange 53 Boston,
L.L.C., a Delaware limited liability company, Inland Western Hartford New Park,
L.L.C., a Delaware limited liability company, Inland Western Williston Maple
Tree, L.L.C., a Delaware limited liability company, and Inland Western West
Mifflin Century III, L.P., an Illinois limited partnership, and Inland Western
Pittsburgh William Penn, L.P., an Illinois limited partnership, each having an
address c/o Inland Real Estate Investment Corporation, 2901 Butterfield Road,
Oak Brook, Illinois 60523 (together with their respective successors and
assigns, collectively "BORROWERS" and individually "BORROWER").

                                    RECITALS:

     Borrowers desire to obtain the Loan (defined below) from Lender.

     Lender is willing to make the Loan to Borrowers, subject to and in
accordance with the terms of this Agreement and the other Loan Documents
(defined below).

     In consideration of the making of the Loan by Lender and the covenants,
agreements, representations and warranties set forth in this Agreement, the
parties hereto hereby covenant, agree, represent and warrant as follows:

                                   ARTICLE 1.
                     DEFINITIONS; PRINCIPLES OF CONSTRUCTION

     Section 1.1.    DEFINITIONS

     For all purposes of this Agreement, except as otherwise expressly required
or unless the context clearly indicates a contrary intent:

     "ACCEPTABLE COUNTERPARTY" shall mean any counterparty to the Rate Cap that
has and shall maintain, until the expiration of the applicable Rate Cap, a
credit rating of not less than AA from S&P and not less than Aa2 from Moody's.

     "ACT" shall have the meaning set forth in Section 6.l(c).

<Page>

     "AFFILIATE" shall mean, as to any Person, any other Person that, directly
or indirectly, is in control of, is controlled by or is under common control
with such Person or is a director or officer of such Person or of an Affiliate
of such Person.

     "AFFILIATED LOANS" shall mean a loan made by Lender to a parent, subsidiary
or such other entity affiliated with a Borrower or Borrower Principal.

     "AFFILIATED MANAGER" shall have the meaning set forth in Section 7.1
hereof.

     "ALLOCATED LOAN AMOUNT" means the portion of the principal indebtedness of
the Loan allocated to each Individual Property, as set forth on Schedule II
attached hereto and made part hereof, as such amounts shall be adjusted from
time to time as hereinafter set forth. Upon each reduction of the principal
balance of the Loan resulting from a prepayment pursuant to SECTION 2.4, each
Allocated Loan Amount shall be decreased by an amount equal to the product of
(i) the amount of such principal payment and (ii) a fraction, the numerator of
which is the applicable Allocated Loan Amount (prior to such reduction) and the
denominator of which is the total of all Allocated Loan Amounts (prior to such
reduction). At any time when the aggregate principal indebtedness is reduced as
the result of Lender's receipt and retention of proceeds with respect to a
Condemnation or Casualty of a specific Individual Property, such proceeds
received and retained by Lender shall be applied against the Allocated Loan
Amount relating to the affected Individual Property.

     "ALTA" shall mean American Land Title Association, or any successor
thereto.

     "ASSIGNMENTS OF MANAGEMENT AGREEMENTS" shall mean those certain Assignments
and Subordinations of Management Agreements dated the date hereof among Lender,
Borrowers and Manager, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time.

     "AWARD" shall mean any compensation paid by any Governmental Authority in
connection with a Condemnation in respect of all or any part of an Individual
Property.

     "BORROWER PRINCIPAL" shall mean Inland Western Retail Real Estate Trust,
Inc., a Maryland corporation.

     "BREAKAGE COSTS" shall have the meaning set forth in Section 2.3(f)(iv)
herein.

     "BUSINESS DAY" shall mean any day other than (i) a Saturday or a Sunday or
(ii) a day on which federally insured depository institutions in the States of
New York or North Carolina or the state in which the offices of the Servicer and
the trustee in the Securitization are located are authorized or obligated by
law, governmental decree or executive order to be closed, except that when used
with respect to the determination of LIBOR, "Business Day" shall be a day on
which commercial banks are open for international business (including dealings
in U.S. Dollar deposits) in London, England.

     "CASUALTY" shall have the meaning set forth in Section 8.2.

     "CLOSING DATE" shall mean the date of the funding of the Loan.

                                      - 2 -
<Page>

     "COLLATERAL ASSIGNMENT OF INTEREST RATE CAP" shall mean that certain
Collateral Assignment of Interest Rate Cap Agreement, dated as of the date
hereof, executed by Borrowers in connection with the Loan for the benefit of
Lender, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time.

     "CONDEMNATION" shall mean a temporary or permanent taking by any
Governmental Authority as the result, in lieu or in anticipation, of the
exercise of the right of condemnation or eminent domain, of all or any part of
an Individual Property, or any interest therein or right accruing thereto,
including any right of access thereto or any change of grade affecting an
Individual Property or any part thereof.

     "CONDEMNATION PROCEEDS" shall have the meaning set forth in Section 8.4(b)

     "CONSEQUENTIAL LOSS" shall have the meaning set forth in
Section 2.3(f)(ii).

     "CONTROL" shall have the meaning set forth in Section 7.1 hereof.

     "CREDITORS RIGHTS LAWS" shall mean with respect to any Person any existing
or future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization, conservatorship, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with respect
to its debts or debtors.

     "DEBT" shall mean the outstanding principal amount set forth in, and
evidenced by, this Agreement and the Note together with all interest accrued and
unpaid thereon and all other sums due to Lender in respect of the Loan under the
Note, this Agreement, the Mortgages or any other Loan Document.

     "DEBT SERVICE" shall mean, with respect to any particular period of time,
scheduled principal and/or interest payments under the Note.

     "DEBT SERVICE COVERAGE RATIO" shall mean, as of any date of determination,
for the applicable period of calculation, the ratio, as determined by Lender, of
(i) Net Operating Income to (ii) the aggregate amount of Debt Service which
would be due for the same period assuming the maximum principal amount of the
Loan is outstanding and calculated at a mortgage constant equal to nine and
twenty-six hundredths percent (9.26%) or such other mortgage constant as may be
required from time to time by the Rating Agencies.

     "DEFAULT" shall mean the occurrence of any event hereunder or under any
other Loan Document which, but for the giving of notice or passage of time, or
both, would be an Event of Default.

     "DEFAULT RATE" shall mean, with respect to the Loan, a rate per annum equal
to the lesser of (a) the maximum rate permitted by applicable law, or (b) four
percent (4%) above the Note Rate.

     "DETERMINATION DATE" shall mean (a) with respect to any Interest Period
prior to the Interest Period that commences in the month during which the
Securitization Closing Date occurs, two (2) Business Days prior to the start of
the applicable Interest Period; (b) with respect

                                      - 3 -
<Page>

to the Interest Period that commences in the month during which the
Securitization Closing Date occurs, the date that is two (2) Business Days prior
to the Securitization Closing Date and (c) with respect to each Interest Period
thereafter, the date that is two (2) Business Days prior to the beginning of
such Interest Period.

     "ELIGIBLE ACCOUNT" shall mean a separate and identifiable account from all
other funds held by the holding institution that is either (a) an account or
accounts maintained with a federal or state chartered depository institution or
trust company which complies with the definition of Eligible Institution or (b)
a segregated trust account or accounts maintained with a federal or state
chartered depository institution or trust company acting in its fiduciary
capacity which, in the case of a state chartered depository institution or trust
company, is subject to regulations substantially similar to 12 C.F.R. Section
9.10(b), having in either case a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by federal and state
authority. An Eligible Account will not be evidenced by a certificate of
deposit, passbook or other instrument.

     "ELIGIBLE INSTITUTION" shall mean a depository institution or trust company
insured by the Federal Deposit Insurance Corporation, the short term unsecured
debt obligations or commercial paper of which are rated at least "A-1+" by S&P,
"P-1" by Moody's and "F-1+" by Fitch in the case of accounts in which funds are
held for thirty (30) days or less (or, in the case of accounts in which funds
are held for more than thirty (30) days, the long term unsecured debt
obligations of which are rated at least "AA" by Fitch and S&P and "Aa2" by
Moody's).

     "EMBARGOED PERSON" shall have the meaning set forth in Section 4.38.

     "ENVIRONMENTAL LAW" shall have the meaning set forth in Section 12.5
hereof.

     "ENVIRONMENTAL LIENS" shall have the meaning set forth in Section 12.5
hereof.

     "ENVIRONMENTAL REPORT" shall have the meaning set forth in Section 12.5
hereof.

     "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time and any successor statutes thereto and applicable
regulations issued pursuant thereto in temporary or final form.

     "EVENT OF DEFAULT" shall have the meaning set forth in Section 11.1 hereof.

     "EXCHANGE ACT" shall mean the Securities and Exchange Act of 1934, as
amended.

     "EXTENDED MATURITY DATE" shall have the meaning set forth in Section
2.3(b).

     "EXTENSION OPTION" shall have the meaning set forth in Section 2.3(b).

     "FITCH" shall mean Fitch, Inc.

     "GAAP" shall mean generally accepted accounting principles in the United
States of America as of the date of the applicable financial report.

                                      - 4 -
<Page>

     "GOVERNMENTAL AUTHORITY" shall mean any court, board, agency, department,
commission, office or other authority of any nature whatsoever for any
governmental unit (federal, state, county, municipal, city, town, special
district or otherwise) whether now or hereafter in existence.

     "GROUND LEASES" shall mean collectively, each ground lease of an Individual
Property described on SCHEDULE I attached hereto and made a part hereof.

     "HAZARDOUS MATERIALS" shall have the meaning set forth in Section 12.5
hereof.

     "IMPROVEMENTS" shall have the meaning set forth in the granting clauses of
the Mortgages.

     "INDEMNIFIED PARTIES" shall mean (a) Lender, (b) any prior owner or holder
of the Loan or Participations in the Loan, (c) any servicer or prior servicer of
the Loan, (d) any Investor or any prior Investor in any Securities, (e) any
trustees, custodians or other fiduciaries who hold or who have held a full or
partial interest in the Loan for the benefit of any Investor or other third
party, (f) any receiver or other fiduciary appointed in a foreclosure or other
Creditors Rights Laws proceeding, (g) any officers, directors, shareholders,
partners, members, employees, agents, servants, representatives, contractors,
subcontractors, affiliates or subsidiaries of any and all of the foregoing, and
(h) the heirs, legal representatives, successors and assigns of any and all of
the foregoing (including, without limitation, any successors by merger,
consolidation or acquisition of all or a substantial portion of the Indemnified
Parties' assets and business), in all cases whether during the term of the Loan
or as part of or following a foreclosure of the Mortgages or any of them.

     "INDEPENDENT DIRECTOR" shall have the meaning set forth in Section 6.4.

     "INDIVIDUAL PROPERTY" shall mean each parcel of real property or a
leasehold interest therein, the Improvements thereon and all Personal Property
owned by a Borrower and encumbered by a Mortgage, together with all rights
pertaining to such property and Improvements, as more particularly described in
the granting clause of each Mortgage and referred to therein as the "Property."

     "INLAND PERMITTED TRANSFEREE" shall mean a newly-formed special purpose
entity that is wholly owned (directly or indirectly) by Inland Retail Real
Estate Trust, Inc., a Maryland corporation, Inland Western Retail Real Estate
Trust, Inc., a Maryland corporation, Inland Real Estate Corporation, a Maryland
corporation, Inland Real Estate Investment Corporation, a Delaware corporation,
Inland American Real Estate Trust, Inc., a Maryland corporation, any other real
estate investment trust sponsored by Inland Real Estate Investment Corporation,
or any other entity composed entirely of any of the foregoing by merger or other
business combination.

     "INSURANCE PREMIUMS" shall have the meaning set forth in Section 8.1(b)
hereof.

     "INSURANCE PROCEEDS" shall have the meaning set forth in Section 8.4(b)
hereof.

     "INTEREST PERIOD" shall mean (a) with respect to the initial period for the
accrual of interest due under this Agreement, the period from and including the
Closing Date through but

                                      - 5 -
<Page>

excluding the Selected Day first occurring after the Closing Date, and (b) with
respect to the Payment Date occurring in September, 2005 and each Payment Date
thereafter, the period from and including the Selected Day immediately preceding
the applicable Payment Date through but excluding the Selected Day next
occurring after the applicable Payment Date. Notwithstanding the foregoing
clause (b), if the Lender so elects at any time, the "Interest Period" shall be
the calendar month preceding each Payment Date.

     "INTERNAL REVENUE CODE" shall mean the Internal Revenue Code of 1986, as
amended, as it may be further amended from time to time, and any successor
statutes thereto, and applicable U.S. Department of Treasury regulations issued
pursuant thereto in temporary or final form.

     "INVESTOR" shall have the meaning set forth in Section 13.3 hereof.

     "LEASE" shall have the meaning set forth in the Mortgages.

     "LEASEHOLD PROPERTIES" shall mean those Individual Properties in which a
Borrower has a leasehold interest as lessee under a Ground Lease as listed on
Schedule I attached hereto and made part hereof.

     "LEGAL REQUIREMENTS" shall mean all statutes, laws, rules, orders,
regulations, ordinances, judgments, decrees and injunctions of Governmental
Authorities affecting the Properties or any part thereof, or the construction,
use, alteration or operation thereof, whether now or hereafter enacted and in
force, and all permits, licenses, authorizations and regulations relating
thereto, and all covenants, agreements, restrictions and encumbrances contained
in any instruments, either of record or known to Borrower, at any time in force
affecting the Properties or any part thereof, including, without limitation, any
which may (a) require repairs, modifications or alterations in or to an
Individual Property or any part thereof, or (b) in any way limit the use and
enjoyment thereof.

     "LIBOR" shall mean, with respect to each Interest Period, a rate of
interest per annum obtained by dividing

     (a)     the rate for deposits in U.S. Dollars, for a period equal to one
month, which appears on the Telerate Page 3750 as of 11:00 a.m., London time, on
the related  Determination Date (provided,  however, if Telerate is unavailable,
the rate shall be as specified on Reuters Screen LIBOR Page and if more than one
rate is  specified  on Reuters  Screen  LIBOR Page,  the LIBOR Rate shall be the
arithmetic mean of all rates), by

     (b)     a percentage equal to 100% minus the applicable Reserve Percentage
then in effect.

     Lender shall determine the LIBOR Rate for each Interest Period and the
determination of the LIBOR Rate by Lender shall be binding upon Borrowers absent
manifest error.

     LIBOR may or may not be the lowest rate based upon the market for U.S.
Dollar deposits in the London Interbank Eurodollar Market at which the Lender
prices loans on the date which LIBOR is determined by Lender as set forth above.

                                      - 6 -
<Page>

     "LIBOR LOAN" shall mean the Loan at such time as interest thereon accrues
at the LIBOR Rate.

     "LIBOR MARGIN" shall mean seventy-six hundredths percent (0.76%).

     "LIBOR RATE" shall mean the sum of (i) LIBOR plus (ii) the LIBOR Margin.

     "LIEN" shall mean any mortgage, deed of trust, lien, pledge, hypothecation,
assignment, security interest, or any other encumbrance, charge or transfer of,
on or affecting a Borrower, an Individual Property, any portion thereof or any
interest therein, including, without limitation, any conditional sale or other
title retention agreement, any financing lease having substantially the same
economic effect as any of the foregoing, the filing of any financing statement,
and mechanic's, materialmen's and other similar liens and encumbrances.

     "LLC AGREEMENT" shall have the meaning set forth in Section 6.1.

     "LOAN" shall mean the loan made by Lender to Borrowers pursuant to this
Agreement.

     "LOAN DOCUMENTS" shall mean, collectively, this Agreement, the Note, the
Mortgages, the Assignments of Management Agreements, the Collateral Assignment
of Interest Rate Cap and any and all other documents, agreements and
certificates executed and/or delivered in connection with the Loan, as the same
may be amended, restated, replaced, supplemented or otherwise modified from time
to time.

     "LOSSES" shall mean any and all claims, suits, liabilities (including,
without limitation, strict liabilities), actions, proceedings, obligations,
debts, damages, losses, costs, expenses, fines, penalties, charges, fees,
judgments, awards, amounts paid in settlement of whatever kind or nature
(including but not limited to legal fees and other costs of defense).

     "MAJOR LEASE" shall mean as to each Individual Property (i) any Lease
which, individually or when aggregated with all other leases at such Individual
Property with the same Tenant or its Affiliate, either (A) accounts for seven
and one-half percent (7 1/2%) or more of such Individual Property's aggregate
retail income, or (B) demises 7,500 square feet or more of such Individual
Property's gross leasable area, (ii) any Lease which contains any option, offer,
right of first refusal or other similar entitlement to acquire all or any
portion of such Individual Property, or (iii) any instrument guaranteeing or
providing credit support for any Lease meeting the requirements of (i) or (ii)
above.

     "MANAGEMENT AGREEMENT" shall mean the management agreement entered into by
and between a Borrower and Manager, pursuant to which Manager is to provide
management and other services with respect to an Individual Property, as the
same may be amended, restated, replaced, supplemented or otherwise modified in
accordance with the terms of this Agreement.

     "MANAGER" shall mean Inland US Management LLC, a Delaware limited liability
company, or such other entity selected as the manager of an Individual Property
in accordance with the terms of this Agreement.

                                      - 7 -
<Page>

     "MATERIAL LITIGATION" shall mean, with respect to any Person, any material
conviction, indictment (that is not dismissed before trial), judgment,
litigation or regulatory action. For purposes of this definition, a matter shall
be deemed material if it is reasonably foreseeable that a prudent institutional
commercial real estate mortgage lender would consider such matter as a material
adverse factor in its underwriting of the Person in question. With respect to
non-criminal matters, isolated actions occurring more than five (5) years prior
to the date of a proposed transfer shall not be deemed material provided that
there is no indication of fraud, intentional misrepresentation or intent to
defraud creditors, with respect to such actions.

     "MATURITY DATE" shall mean the Payment Date occurring in August, 2007, as
such date may be extended pursuant to Section 2.3(b) hereof.

     "MAXIMUM LEGAL RATE" shall mean the maximum nonusurious interest rate, if
any, that at any time or from time to time may be contracted for, taken,
reserved, charged or received on the indebtedness evidenced by the Note and as
provided for herein or the other Loan Documents, under the laws of such state or
states whose laws are held by any court of competent jurisdiction to govern the
interest rate provisions of the Loan.

     "MEMBER" shall have the meaning set forth in Section 6.1(c).

     "MOLD" shall have the meaning set forth in Section 12.5.

     "MOODY'S" shall mean Moody's Investor Services, Inc.

     "MORTGAGES" shall mean those certain first priority mortgages/deeds of
trust/deeds to secure debt and security agreements dated the date hereof,
executed and delivered by Borrowers as security for the Loan and encumbering the
Properties, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time.

     "NET OPERATING INCOME" shall mean, with respect to any period of time, the
amount obtained by subtracting Operating Expenses from Operating Income, as such
amount may be adjusted by Lender in its good faith discretion based on Lender's
underwriting standards, including without limitation, adjustments for vacancy
allowance.

     "NET PROCEEDS" shall have the meaning set forth in Section 8.4(b) hereof.

     "NET PROCEEDS DEFICIENCY" shall have the meaning set forth in Section
8.4(b)(vi) hereof.

     "NOTE" shall mean that certain promissory note of even date herewith in the
principal amount of $TWO HUNDRED THIRTY-TWO MILLION FOUR HUNDRED EIGHT THOUSAND
and No/100 Dollars ($232,408,000.00), made by Borrowers in favor of Lender, as
the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time.

     "NOTE RATE" shall mean (a) from and including the Closing Date through the
last day of the calendar month in which the Closing Date occurs, an interest
rate per annum equal to 4.17688%; and (b) from and including the first calendar
day of the first Interest Period through and including the Maturity Date, an
interest rate per annum equal to (i) the LIBOR Rate (in all

                                      - 8 -
<Page>

cases where clause (ii) below does not apply), or (ii) the Static LIBOR Rate, to
the extent provided in accordance with the provisions of Section 2.2(b).

     "OFAC" shall have the meaning set forth in Section 4.38 hereof.

     "OPERATING EXPENSES" shall mean, with respect to any period of time, the
total of all expenses actually paid or payable with respect to an Individual
Property, computed in accordance with federal tax basis accounting or in
accordance with other methods acceptable to Lender in its sole discretion, of
whatever kind relating to the operation, maintenance and management of an
Individual Property, including, without limitation, utilities, ordinary repairs
and maintenance, Insurance Premiums, license fees, Taxes and Other Charges,
advertising expenses, payroll and related taxes, computer processing charges,
management fees equal to the greater of 4% of the Operating Income and the
management fees actually paid under the Management Agreement, operational
equipment or other lease payments as approved by Lender, normalized capital
expenditures equal to $643,052.00 per annum and normalized tenant improvement
costs and/or leasing commissions, but specifically excluding depreciation and
amortization, income taxes, Debt Service, any incentive fees due under the
Management Agreement, any item of expense that in accordance with federal tax
basis accounting should be capitalized but only to the extent that the same
would qualify for funding from the Reserve Accounts, any item of expense that
would otherwise be covered by the provisions hereof but which is paid by any
Tenant under such Tenant's Lease or other agreement, and deposits into the
Reserve Accounts.

     "OPERATING INCOME" shall mean, with respect to any period of time, all
income computed in accordance with federal tax basis accounting or in accordance
with other methods acceptable to Lender in its sole discretion, derived from the
ownership and operation of an Individual Property from whatever source,
including, but not limited to, Rents, utility charges, escalations, forfeited
security deposits, interest on credit accounts, source fees or charges, license
fees, parking fees, rent concessions or credits, and other required
pass-throughs, but excluding sales, use and occupancy or other taxes on receipts
required to be accounted for by a Borrower to any Governmental Authority,
refunds and uncollectible accounts, sales of furniture, fixtures and equipment,
interest income from any source other than the escrow accounts, Reserve Accounts
or other accounts required pursuant to the Loan Documents, Insurance Proceeds
(other than business interruption or other loss of income insurance), Awards,
percentage rents, unforfeited security deposits, utility and other similar
deposits, income from tenants not paying rent, income from tenants in
bankruptcy, non-recurring or extraordinary income, including, without
limitation, lease termination payments, and any disbursements to a Borrower from
the Reserve Funds.

     "OTHER CHARGES" shall mean all ground rents, maintenance charges,
impositions other than Taxes, and any other charges, including, without
limitation, vault charges and license fees for the use of vaults, chutes and
similar areas adjoining any of the Properties, now or hereafter levied or
assessed or imposed against any of the Properties, or any part thereof.

     "PARTICIPATIONS" shall have the meaning set forth in Section 13.1 hereof.

     "PATRIOT ACT" shall have the meaning set forth in Section 4.38 hereof.

                                      - 9 -
<Page>

     "PAYMENT DATE" shall mean the day that is seven (7) Business Days prior to
the Selected Day.

     "PERMITTED ENCUMBRANCES" shall mean collectively, (a) the Liens and
security interests created by the Loan Documents, (b) all Liens, encumbrances
and other matters disclosed in the Title Insurance Policies, (c) Liens, if any,
for Taxes imposed by any Governmental Authority not yet due or delinquent, and
(d) such other title and survey exceptions as Lender has approved or may approve
in writing in Lender's sole discretion.

     "PERMITTED INVESTMENTS" shall mean to the extent available from Lender or
Lender's servicer for deposits in the Reserve Accounts, any one or more of the
following obligations or securities acquired at a purchase price of not greater
than par, including those issued by a servicer of the Loan, the trustee under
any securitization or any of their respective Affiliates, payable on demand or
having a maturity date not later than the Business Day immediately prior to the
date on which the funds used to acquire such investment are required to be used
under this Agreement and meeting one of the appropriate standards set forth
below:

     (a)     obligations of, or obligations fully guaranteed as to payment of
principal and interest by, the United States or any agency or instrumentality
thereof provided such obligations are backed by the full faith and credit of the
United States of America including, without limitation, obligations of: the U.S.
Treasury (all direct or fully guaranteed obligations), the Farmers Home
Administration (certificates of beneficial ownership), the General Services
Administration (participation certificates), the U.S. Maritime Administration
(guaranteed Title XI financing), the Small Business Administration (guaranteed
participation certificates and guaranteed pool certificates), the U.S.
Department of Housing and Urban Development (local authority bonds) and the
Washington Metropolitan Area Transit Authority (guaranteed transit bonds);
provided, however, that the investments described in this clause must (i) have a
predetermined fixed dollar of principal due at maturity that cannot vary or
change, (ii) be rated "AAA" or the equivalent by each of the Rating Agencies,
(iii) if rated by S&P, must not have an "r" highlighter affixed to their rating,
(iv) if such investments have a variable rate of interest, such interest rate
must be tied to a single interest rate index plus a fixed spread (if any) and
must move proportionately with that index, and (v) such investments must not be
subject to liquidation prior to their maturity;

     (b)     Federal Housing Administration debentures;

     (c)     obligations of the following United States government sponsored
agencies: Federal Home Loan Mortgage Corp. (debt obligations), the Farm Credit
System (consolidated systemwide bonds and notes), the Federal Home Loan Banks
(consolidated debt obligations), the Federal National Mortgage Association (debt
obligations), the Financing Corp. (debt obligations), and the Resolution Funding
Corp. (debt obligations); PROVIDED, HOWEVER, that the investments described in
this clause must (i) have a predetermined fixed dollar of principal due at
maturity that cannot vary or change, (ii) if rated by S&P, must not have an "r"
highlighter affixed to their rating, (iii) if such investments have a variable
rate of interest, such interest rate must be tied to a single interest rate
index plus a fixed spread (if any) and must move proportionately with that
index, and (iv) such investments must not be subject to liquidation prior to
their maturity;

                                     - 10 -
<Page>

     (d)     federal funds, unsecured certificates of deposit, time deposits,
bankers' acceptances and repurchase agreements with maturities of not more than
365 days of any bank, the short term obligations of which at all times are rated
in the highest short term rating category by each Rating Agency (or, if not
rated by all Rating Agencies, rated by at least one Rating Agency in the highest
short term rating category and otherwise acceptable to each other Rating Agency,
as confirmed in writing that such investment would not, in and of itself, result
in a downgrade, qualification or withdrawal of the initial, or, if higher, then
current ratings assigned to the Securities); provided, however, that the
investments described in this clause must (i) have a predetermined fixed dollar
of principal due at maturity that cannot vary or change, (ii) if rated by S&P,
must not have an "r" highlighter affixed to their rating, (iii) if such
investments have a variable rate of interest, such interest rate must be tied to
a single interest rate index plus a fixed spread (if any) and must move
proportionately with that index, and (iv) such investments must not be subject
to liquidation prior to their maturity;

     (e)     fully Federal Deposit Insurance Corporation-insured demand and time
deposits in, or certificates of deposit of, or bankers' acceptances with
maturities of not more than 365 days and issued by, any bank or trust company,
savings and loan association or savings bank, the short term obligations of
which at all times are rated in the highest short term rating category by each
Rating Agency (or, if not rated by all Rating Agencies, rated by at least one
Rating Agency in the highest short term rating category and otherwise acceptable
to each other Rating Agency, as confirmed in writing that such investment would
not, in and of itself, result in a downgrade, qualification or withdrawal of the
initial, or, if higher, then current ratings assigned to the Securities);
provided, however, that the investments described in this clause must (i) have a
predetermined fixed dollar of principal due at maturity that cannot vary or
change, (ii) if rated by S&P, must not have an "r" highlighter affixed to their
rating, (iii) if such investments have a variable rate of interest, such
interest rate must be tied to a single interest rate index plus a fixed spread
(if any) and must move proportionately with that index, and (iv) such
investments must not be subject to liquidation prior to their maturity;

     (f)     debt obligations with maturities of not more than 365 days and at
all times rated by each Rating Agency (or, if not rated by all Rating Agencies,
rated by at least one Rating Agency and otherwise acceptable to each other
Rating Agency, as confirmed in writing that such investment would not, in and of
itself, result in a downgrade, qualification or withdrawal of the initial, or,
if higher, then current ratings assigned to the Securities) in its highest
long-term unsecured rating category; provided, however, that the investments
described in this clause must (i) have a predetermined fixed dollar of principal
due at maturity that cannot vary or change, (ii) if rated by S&P, must not have
an "r" highlighter affixed to their rating, (iii) if such investments have a
variable rate of interest, such interest rate must be tied to a single interest
rate index plus a fixed spread (if any) and must move proportionately with that
index, and (iv) such investments must not be subject to liquidation prior to
their maturity;

     (g)     commercial paper (including both non-interest-bearing discount
obligations and interest-bearing obligations payable on demand or on a specified
date not more than one year after the date of issuance thereof) with maturities
of not more than 365 days and that at all times is rated by each Rating Agency
(or, if not rated by all Rating Agencies, rated by at least one Rating Agency
and otherwise acceptable to each other Rating Agency, as confirmed in writing
that such investment would not, in and of itself, result in a downgrade,
qualification or

                                     - 11 -
<Page>

withdrawal of the initial, or, if higher, then current ratings assigned to the
Securities) in its highest short-term unsecured debt rating; provided, however,
that the investments described in this clause must (i) have a predetermined
fixed dollar of principal due at maturity that cannot vary or change, (ii) if
rated by S&P, must not have an "r" highlighter affixed to their rating, (iii) if
such investments have a variable rate of interest, such interest rate must be
tied to a single interest rate index plus a fixed spread (if any) and must move
proportionately with that index, and (iv) such investments must not be subject
to liquidation prior to their maturity;

     (h)     units of taxable money market funds or mutual funds, with
maturities of not more than 365 days and which funds are regulated investment
companies, seek to maintain a constant net asset value per share and invest
solely in obligations backed by the full faith and credit of the United States,
which funds have the highest rating available from each Rating Agency (or, if
not rated by all Rating Agencies, rated by at least one Rating Agency and
otherwise acceptable to each other Rating Agency, as confirmed in writing that
such investment would not, in and of itself, result in a downgrade,
qualification or withdrawal of the initial, or, if higher, then current ratings
assigned to the Securities) for money market funds or mutual funds; and

     (i)     any other security, obligation or investment which has been
approved as a Permitted Investment in writing by (i) Lender and (ii) each Rating
Agency, as evidenced by a written confirmation that the designation of such
security, obligation or investment as a Permitted Investment will not, in and of
itself, result in a downgrade, qualification or withdrawal of the initial, or,
if higher, then current ratings assigned to the Securities by such Rating
Agency;

     PROVIDED, HOWEVER, that no obligation or security shall be a Permitted
Investment if (A) such obligation or security evidences a right to receive only
interest payments, (B) the right to receive principal and interest payments on
such obligation or security are derived from an underlying investment that
provides a yield to maturity in excess of one hundred twenty percent (120%) of
the yield to maturity at par of such underlying investment or (C) such
obligation or security has a remaining term to maturity in excess of one (1)
year.

     "PERSON" shall mean any individual, corporation, partnership, joint
venture, limited liability company, estate, trust, unincorporated association,
any federal, state, county or municipal government or any bureau, department or
agency thereof and any fiduciary acting in such capacity on behalf of any of the
foregoing.

     "PERSONAL PROPERTY" shall have the meaning set forth in the granting
clauses of the Mortgages.

     "PHYSICAL CONDITIONS REPORT" shall mean a report prepared by a company
satisfactory to Lender regarding the physical condition of an Individual
Property, satisfactory in form and substance to Lender in its sole discretion.

     "POLICIES" shall have the meaning specified in Section 8.1(b) hereof.

     "PROHIBITED TRANSFER" shall have the meaning set forth in Section 7.2
hereof.

                                     - 12 -
<Page>

     "PROPERTIES" shall mean, collectively, each and every Individual Property
which is subject to the terms of this Agreement, all of which are listed on
Schedule II attached hereto and made part hereof.

     "QUALIFIED MANAGER" shall mean (a) Manager or (b) a reputable and
experienced professional management organization (i) which manages, together
with its Affiliates, at least ten (10) shopping centers totaling at least
1,000,000 square feet of gross leasable area exclusive of the Properties and
(ii) approved by Lender, which approval shall not have been unreasonably
withheld and for which Lender shall have received written confirmation from the
Rating Agencies that the employment of such manager will not result in a
downgrade, withdrawal or qualification of the initial, or if higher, then
current ratings issued in connection with a Securitization, or if a
Securitization has not occurred, any ratings to be assigned in connection with a
Securitization.

     "RATE CAP" shall mean an interest rate cap with a maturity date of the
initial Maturity Date entered into with Bank of America, N.A. or an Acceptable
Counterparty with a notional amount equal to the Loan for the term of the Loan
and a LIBOR strike price not greater than eight and five tenths percent (8.5%);
PROVIDED, HOWEVER, that in the event the rating of the counterparty (including,
but not limited to, Bank of America, N.A.) to any Rate Cap is downgraded, such
Rate Cap will be replaced by a Rate Cap in the same form and substance as the
Rate Cap purchased by the Borrowers in connection with the closing of the Loan
and shall be obtained from a counterparty with a credit rating meeting the
requirements set forth hereinabove with respect to an Acceptable Counterparty;
and PROVIDED, FURTHER, such Rate Cap shall be accompanied by legal opinions
regarding the Rate Cap, in form and substance acceptable to Lender, including,
without limitation opinions with respect to (i) enforceability, (ii) payment
priority, (iii) choice of law and (iv) enforcement of judgments. Furthermore,
each Rate Cap shall provide for (i) the calculation of interest, (ii) the
determination of the interest rate, (iii) the modification of the Interest
Period and (iv) the distribution of payments thereunder to be identical to the
definition of Interest Period set forth herein.

     "RATE CAP AGREEMENT" shall mean the agreement for a Rate Cap purchased by
Borrowers entered into with an Acceptable Counterparty.

     "RATING AGENCIES" shall mean each of S&P, Moody's and Fitch, or any other
nationally-recognized statistical rating agency which has been approved by
Lender.

     "REA" shall mean any "construction, operation and reciprocal easement
agreement" or similar agreement (including any "separate agreement" or other
agreement between a Borrower and one or more other parties to an REA with
respect to such REA) affecting an Individual Property or portion thereof.

     "RELEASE" shall have the meaning set forth in Section 12.5 hereof.

     "REMIC TRUST" shall mean a "real estate mortgage investment conduit"
(within the meaning of Section 860D, or applicable successor provisions, of the
Code) that holds the Note.

     "RENT ROLL" shall have the meaning set forth in Section 4.25 hereof.

                                     - 13 -
<Page>

     "RENTS" shall have the meaning set forth in the Mortgages.

     "REPLACEMENT RATE CAP" shall mean an interest rate cap from an Acceptable
Counterparty with terms identical to the Rate Cap.

     "REPLACEMENT RESERVE ACCOUNT" shall have the meaning set forth in Section
9.2(b) hereof.

     "REPLACEMENT RESERVE FUNDS" shall have the meaning set forth in Section
9.2(b) hereof.

     "REPLACEMENT RESERVE MONTHLY DEPOSIT" shall have the meaning set forth in
Section 9.2(b) hereof.

     "REPLACEMENTS" shall have the meaning set forth in Section 9.2(a) hereof.

     "REQUIRED REPAIR ACCOUNT" shall have the meaning set forth in Section
9.1(b) hereof.

     "REQUIRED REPAIR FUNDS" shall have the meaning set forth in Section 9.1(b)
hereof.

     "REQUIRED REPAIRS" shall have the meaning set forth in Section 9.1(a)
hereof.

     "REQUIRED WORK" shall have the meaning set forth in Section 9.4 hereof.

     "RESERVE ACCOUNTS" shall mean the Tax and Insurance Reserve Account, the
Replacement Reserve Account, the Required Repair Account or any other escrow
account established by the Loan Documents.

     "RESERVE FUNDS" shall mean the Tax and Insurance Reserve Funds, the
Replacement Reserve Funds, the Required Repair Funds or any other escrow funds
established by the Loan Documents.

     "RESERVE PERCENTAGE" shall mean, with respect to any day of any Interest
Period, that percentage (expressed as a decimal) which is in effect on such day,
as prescribed by the Board of Governors of the Federal Reserve System (or any
successor), for determining the maximum reserve requirement (including basic,
supplemental, emergency, special and marginal reserves) generally applicable to
financial institutions regulated by the Federal Reserve Board comparable in size
and type to Lender in respect of "Eurocurrency liabilities" (or in respect of
any other category of liabilities which includes deposits by reference to which
the interest rate on the Loan is determined), whether or not Lender has any
Eurocurrency liabilities or such requirement otherwise in fact applies to
Lender. The LIBOR Rate shall be adjusted automatically as of the effective date
of each change in the Reserve Percentage. As of the date hereof, the Reserve
Percentage is zero, however, there can be no assurance as to what such amount
may be in the future.

     "RESTORATION" shall mean, following the occurrence of a Casualty or a
Condemnation which is of a type necessitating the repair of an Individual
Property, the completion of the repair and restoration of such Individual
Property as nearly as possible to the condition such Individual

                                     - 14 -
<Page>

Property was in immediately  prior to such Casualty or  Condemnation,  with such
alterations as may be reasonably approved by Lender.

     "RESTORATION CONSULTANT" shall have the meaning set forth in Section
8.4(b)(iii) hereof.

     "RESTORATION RETAINAGE" shall have the meaning set forth in Section
8.4(b)(iv) hereof.

     "RESTRICTED PARTY" shall have the meaning set forth in Section 7.1 hereof.

     "SALE OR PLEDGE" shall have the meaning set forth in Section 7.1 hereof.

     "SECURITIES" shall have the meaning set forth in Section 13.1 hereof.

     "SECURITIES ACT" shall mean the Securities Act of 1933, as amended.

     "SECURITIES LIABILITIES" shall have the meaning set forth in Section 3.5
hereof.

     "SECURITIZATION" shall have the meaning set forth in Section 13.1 hereof.

     "SECURITIZATION CLOSING DATE" shall mean a date selected by Lender in its
sole discretion by providing not less than twenty-four (24) hours prior notice
to Borrower.

     "SELECTED DAY" means the fifteenth (15th) day of each calendar month or
such other date as determined by the Lender pursuant to Section 2.2(d) hereof.

     "SPE COMPONENT ENTITY" shall have the meaning set forth in Section 6.l(b)
hereof.

     "SPECIAL MEMBER" shall have the meaning set forth in Section 6.1(c).

     "S&P" shall mean Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc.

     "STATE" shall mean the state or states in which the Properties or any part
thereof are located.

     "STATIC LIBOR RATE" shall have the meaning set forth in Section 2.2(b)
hereof.

     "STATIC LIBOR RATE LOAN" shall have the meaning set forth in Section
2.3(f)(iii) hereof.

     "TAX AND INSURANCE RESERVE FUNDS" shall have the meaning set forth in
Section 9.6 hereof.

     "TAX AND INSURANCE RESERVE ACCOUNT" shall have the meaning set forth in
Section 9.6 hereof.

     "TAXES" shall mean all real estate and personal property taxes,
assessments, water rates or sewer rents, now or hereafter levied or assessed or
imposed against an Individual Property or part thereof.

                                     - 15 -
<Page>

     "TENANT" shall mean any Person leasing, subleasing or otherwise occupying
any portion of an Individual Property under a Lease or other occupancy agreement
with a Borrower.

     "TITLE INSURANCE POLICIES" shall mean those certain ALTA mortgagee title
insurance policies issued with respect to the Properties and insuring the lien
of the Mortgages.

     "TRANSFEREE" shall have the meaning set forth in Section 7.5 hereof.

     "TRIBUNAL" shall mean any state, commonwealth, federal, foreign,
territorial or other court or governmental department, commission, board,
bureau, district, authority, agency, central bank, or instrumentality, or any
arbitration authority.

     "UCC" or "UNIFORM COMMERCIAL CODE" shall mean the Uniform Commercial Code
as in effect in the State where the applicable Property is located.

     Section 1.2.    PRINCIPLES OF CONSTRUCTION

     All references to sections and schedules are to sections and schedules in
or to this Agreement unless otherwise specified. All uses of the word
"including" shall mean "including, without limitation" unless the context shall
indicate otherwise. Unless otherwise specified, the words "hereof," "herein" and
"hereunder" and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this
Agreement. Unless otherwise specified, all meanings attributed to defined terms
herein shall be equally applicable to both the singular and plural forms of the
terms so defined.

                                   ARTICLE 2.
                                  GENERAL TERMS

     Section 2.1.    LOAN COMMITMENT; DISBURSEMENT TO BORROWERS

     (a)     Subject to and upon the terms and conditions set forth herein,
Lender hereby agrees to make and Borrowers hereby agree to accept the Loan on
the Closing Date.

     (b)     Borrowers may request and receive only one borrowing in respect of
the Loan and any amount borrowed and repaid in respect of the Loan may not be
reborrowed.

     (c)     The Loan shall be evidenced by the Note and secured by the
Mortgages and the other Loan Documents.

     (d)     Borrowers shall use the proceeds of the Loan to (i) pay the
purchase price for acquiring the Properties, (ii) pay certain costs and expenses
in connection with the closing of the Loan, as approved by Lender, (iii) make
deposits into the Reserve Funds on the Closing Date in the amounts provided
herein, (iv) fund any working capital requirements of the Properties, and (v)
distribute the balance, if any, to its members or beneficiaries.

                                     - 16 -
<Page>

     Section 2.2.    INTEREST RATE

     (a)     NOTE RATE. Interest on the outstanding principal balance of the
Loan shall bear interest at the Note Rate. Except as otherwise set forth in this
Agreement, interest shall be paid in arrears.

     (b)     UNAVAILABILITY OF LIBOR RATE. In the event that Lender shall have
determined (which determination shall be conclusive and binding upon Borrowers
absent manifest error) that by reason of circumstances affecting the interbank
eurodollar market, adequate and reasonable means do not exist for ascertaining
the LIBOR Rate, then Lender shall forthwith give notice by telephone of such
determination, confirmed in writing, to Borrowers at least one (1) day prior to
the last day of the related Interest Period. If such notice is given, the Note
Rate, commencing with the first (1st) day of the next succeeding Interest
Period, shall be the LIBOR Rate in effect for the most recent Interest Period
(the "Static LIBOR Rate").

             If, pursuant to the terms of this Agreement, the Loan has been
 converted to the Static LIBOR Rate and Lender shall determine (which
 determination shall be conclusive and binding upon Borrowers absent manifest
 error) that the event(s) or circumstance(s) which resulted in such conversion
 shall no longer be applicable, Lender shall give notice thereof to Borrowers,
 and the Static LIBOR Rate shall convert to the LIBOR Rate effective on the
 first day of the next succeeding Interest Period. Notwithstanding any provision
 of this Agreement to the contrary, in no event shall Borrowers have the right
 to elect to convert from the LIBOR Rate to the Static LIBOR Rate.

     (c)     COMPUTATIONS AND DETERMINATIONS. All interest shall be computed on
the basis of a year of 360 days and paid for the actual number of days elapsed
(including the first day but excluding the last day of an Interest Period).
Lender shall determine each interest rate applicable to the Debt in accordance
with this Agreement and its determination thereof shall be conclusive in the
absence of manifest error. The books and records of Lender shall be prima facie
evidence of all sums owing to Lender from time to time under this Agreement, but
the failure to record any such information shall not limit or affect the
obligations of Borrowers under the Loan Documents.

     (d)     SELECTED DAY. Prior to a Securitization, Lender may in its sole
discretion change the day of the month that will constitute the Selected Day.

     (e)     DEFAULT RATE. Any principal of, and to the extent permitted by
applicable law, any interest on the Note, and any other sum payable hereunder,
which is not paid when due shall bear interest from the date due and payable
until paid, payable on demand, at a rate per annum (the "Default Rate") equal to
the Note Rate plus four percent (4%).

     (f)     USURY SAVINGS. This Agreement and the Note are subject to the
express condition that at no time shall Borrowers be obligated or required to
pay interest on the principal balance of the Loan at a rate which could subject
Lender to either civil or criminal liability as a result of being in excess of
the Maximum Legal Rate. If, by the terms of this Agreement or the other Loan
Documents, Borrowers are at any time required or obligated to pay interest on
the principal balance due hereunder at a rate in excess of the Maximum Legal
Rate, the LIBOR Rate, the

                                     - 17 -
<Page>

Static LIBOR Rate or the Default Rate, as the case may be, shall be deemed to be
immediately reduced to the Maximum Legal Rate and all previous payments in
excess of the Maximum Legal Rate shall be deemed to have been payments in
reduction of principal and not on account of the interest due hereunder. All
sums paid or agreed to be paid to Lender for the use, forbearance, or detention
of the sums due under the Loan, shall, to the extent permitted by applicable
law, be amortized, prorated, allocated, and spread throughout the full stated
term of the Loan until payment in full so that the rate or amount of interest on
account of the Loan does not exceed the Maximum Legal Rate of interest from time
to time in effect and applicable to the Loan for so long as the Loan is
outstanding.

     Section 2.3.    LOAN PAYMENTS

     (a)     PAYMENTS. Borrowers jointly and severally agree to pay sums under
the Note in installments as follows:

             (i)     a payment on the Closing Date of all interest that will
     accrue on the principal amount of the Note from and including the Closing
     Date up to, but excluding, the Selected Day first occurring after the
     Closing Date;

             (ii)    a payment of interest only on each Payment Date; and

             (iii)   the outstanding principal amount and all interest thereon
     shall be due and payable on the Payment Date occurring in August, 2007 (the
     "MATURITY DATE"), unless the Maturity Date is extended pursuant to Section
     2.3(b) below.

     (b)     EXTENSION OF THE MATURITY DATE. Borrowers shall have the option to
extend the term of the Loan beyond the initial Maturity Date for three (3)
successive terms (each, an "EXTENSION OPTION") of one (1) year each to (x) the
Payment Date occurring in August, 2008, and (y) the Payment Date occurring in
August, 2009 and (z) the Payment Date occurring in August, 2010 (each such date,
the "EXTENDED MATURITY DATE"), respectively, and, as to each Extension Option,
upon satisfaction of the following terms and conditions:

             (i)     no Event of Default shall have occurred and be continuing
     at the time the applicable Extension Option is exercised and on the date
     that the applicable extension term is commenced;

             (ii)    Borrowers shall notify Lender of their irrevocable election
     to extend the Maturity Date as aforesaid not earlier than three (3) months,
     and no later than one (1) month, prior to the then applicable Maturity
     Date;

             (iii)   Borrowers shall obtain and deliver to Lender prior to
     exercise of such Extension Option, one or more Replacement Rate Caps, which
     Replacement Rate Caps shall be effective commencing on the first day of
     such Extension Option and shall have a maturity date not earlier than the
     Maturity Date as extended pursuant to the terms of this Section 2.3; and

             (iv)    in connection with each Extension Option, Borrowers shall
     have delivered to Lender together with their notice pursuant to this
     subsection (b) of this Section 2.3 and

                                     - 18 -
<Page>

     as of the commencement of the applicable Extension Option, Officer's
     Certificates in form acceptable to the Lender certifying that each of the
     representations and warranties of Borrowers contained in the Loan Documents
     is true, complete and correct in all material respects as of the date of
     such Officer's Certificate to the extent such representations and
     warranties are not matters which by their nature can no longer be true and
     correct as a result of the passage of time.

     The Extension Option, if exercised, must be exercised by all the Borrowers.

     All references in this Agreement and in the other Loan Documents to the
Maturity Date shall mean the applicable Extended Maturity Date in the event the
applicable Extension Option is exercised.

     (c)     PAYMENTS AFTER DEFAULT. Upon the occurrence and during the
continuance of an Event of Default, interest on the outstanding principal
balance of the Loan and, to the extent permitted by law, overdue interest and
other amounts due in respect of the Loan shall accrue at the Default Rate.
Interest at the Default Rate shall be computed from the occurrence of the Event
of Default until the earlier of (x) the actual receipt and collection of the
Debt (or that portion thereof that is then due) and (y) the cure of such Event
of Default. To the extent permitted by applicable law, interest at the Default
Rate shall be added to the Debt, shall itself accrue interest at the same rate
as the Loan and shall be secured by the Mortgages. This paragraph shall not be
construed as an agreement or privilege to extend the date of the payment of the
Debt, nor as a waiver of any other right or remedy accruing to Lender by reason
of the occurrence of any Event of Default; the acceptance of any payment from
Borrowers shall not be deemed to cure or constitute a waiver of any Event of
Default; and Lender retains its rights under this Agreement to accelerate and to
continue to demand payment of the Debt upon the happening of and during the
continuance of any Event of Default, despite any payment by a Borrower to
Lender.

     (d)     LATE PAYMENT CHARGE. If any principal or interest payment is not
paid by Borrowers on or before the date on which it is due, Borrowers shall pay
to Lender upon demand an amount equal to the lesser of five percent (5%) of such
unpaid sum or the maximum amount permitted by applicable law in order to defray
the expense incurred by Lender in handling and processing such delinquent
payment and to compensate Lender for the loss of the use of such delinquent
payment. Any such amount shall be secured by the Mortgages and the other Loan
Documents to the extent permitted by applicable law.

     (e)     METHOD AND PLACE OF PAYMENT. Each payment by Borrowers hereunder or
under the Note shall be payable at Bank of America, N.A., P.O. Box 65585,
Charlotte, NC 28265-0585, or at such other place as the Lender may designate
from time to time in writing, on the date such payment is due, to Lender by
deposit to such account as Lender may designate by written notice to Borrowers.
Each payment by Borrowers hereunder or under the Note shall be made in funds
settled through the New York Clearing House Interbank Payments System or other
funds immediately available to Lender by 11:00 a.m., New York City time, on the
date such payment is due, to Lender by deposit to such account as Lender may
designate by written notice to Borrowers. Whenever any payment hereunder or
under the Note shall be stated to be

                                     - 19 -
<Page>

due on a day which is not a Business Day, such payment shall be made on the
first Business Day preceding such scheduled due date.

     (f)     ADDITIONAL PAYMENT PROVISIONS.

             (i)     If at any time after the date hereof, Lender (which shall
     include, for purposes of this Section, any corporation controlling Lender)
     reasonably determines that due to the adoption or modification of any Legal
     Requirement regarding taxation, Lender's required levels of reserves,
     deposits, Federal Deposit Insurance Corporation insurance or capital
     (including any allocation of capital requirements or conditions), or
     similar requirements, or any interpretation or administration thereof by
     any Tribunal or compliance of Lender with any of such requirements, has or
     would have the effect of (a) increasing Lender's costs relating to the
     Loan, or (b) reducing the yield or rate of return of Lender on the Loan, to
     a level below that which Lender could have achieved but for the adoption or
     modification of any such Legal Requirements, Borrowers shall, within
     fifteen (15) days of any request by Lender, pay to Lender such additional
     amounts as (in Lender's sole judgment, after good faith and reasonable
     computation) will compensate Lender for such increase in costs or reduction
     in yield or rate of return of Lender (a "Consequential Loss"). No failure
     by Lender to immediately demand payment of any additional amounts payable
     hereunder shall constitute a waiver of Lender's right to demand payment of
     such amounts at any subsequent time. Nothing herein contained shall be
     construed or so operate as to require Borrowers to pay any interest, fees,
     costs or charges greater than is permitted by applicable Law.

             (ii)    All payments made by Borrowers hereunder shall be made free
     and clear of, and without reduction for or on account of, income, stamp or
     other taxes, levies, imposts, duties, charges, fees, deductions, reserves
     or withholdings imposed, levied, collected, withheld or assessed by any
     Governmental Authorities, which are imposed, enacted or become effective on
     or after the date hereof (such non-excluded taxes being referred to
     collectively as "Foreign Taxes"), excluding income and franchise taxes of
     the United States of America or any political subdivision or taxing
     authority thereof or therein. If any Foreign Taxes are required to be
     withheld from any amounts payable to Lender hereunder and such Foreign
     Taxes are not a result of activities of Lender unrelated to the Loan or
     Borrowers, the amounts so payable to Lender shall be increased to the
     extent necessary to yield to Lender (after payment of all Foreign Taxes)
     interest or any such other amounts payable hereunder at the rate or in the
     amounts specified hereunder. Whenever any Foreign Tax is payable pursuant
     to applicable law by Borrowers, as promptly as possible thereafter,
     Borrowers shall send to Lender an original official receipt, if available,
     or certified copy thereof showing payment of such Foreign Tax. Borrowers
     hereby jointly and severally indemnify Lender for any incremental taxes,
     interest or penalties that may become payable by Lender which may result
     from any failure by Borrowers to pay any such Foreign Tax when due to the
     appropriate taxing authority of which Lender shall have provided Borrowers
     with prior written notice, if possible, or any failure by Borrowers to
     remit to Lender the required receipts or other required documentary
     evidence. Lender's inability to notify Borrowers of any such Foreign Tax in
     accordance with the immediately preceding sentence shall in no way relieve
     Borrowers of their obligations under this Section 2.3(f)(ii).

                                     - 20 -
<Page>

             (iii)   If any requirement of law or any change therein or in the
     interpretation or application thereof, shall hereafter make it unlawful for
     Lender to make or maintain a Loan with the Note Rate being based on LIBOR
     as contemplated hereunder, (x) the obligation of Lender hereunder to make
     such Loan based on LIBOR or to convert the Loan from the Static LIBOR Rate
     to the LIBOR Rate shall be canceled forthwith and (y) any outstanding LIBOR
     Loan shall be converted automatically to a loan bearing interest at the
     Static LIBOR Rate (the "STATIC LIBOR RATE LOAN") on the next succeeding
     Payment Date or within such earlier period as required by law. Borrowers
     hereby agree promptly to pay Lender, upon demand, any additional amounts
     necessary to compensate Lender for any costs incurred by Lender in making
     any conversion in accordance with this Agreement, including, without
     limitation, any interest or fees payable by Lender to lenders of funds
     obtained by it in order to make or maintain the LIBOR Loan hereunder. If
     Lender becomes entitled to claim any additional amounts pursuant to this
     Section 2.3(f)(iii), Lender shall provide Borrowers with not less than
     ninety (90) days written notice specifying in reasonable detail the event
     by reason of which it has become so entitled and the additional amount
     required to fully compensate Lender for such additional costs. Lender's
     notice of such costs, as certified to Borrowers, shall be conclusive absent
     manifest error.

             (iv)    In the event that any change in any requirement of law or
     in the interpretation or application thereof, or compliance by Lender with
     any request or directive (whether or not having the force of law) hereafter
     issued from any central bank or other Governmental Authority:

                     (A)     shall hereafter impose, modify or hold applicable
             any reserve, special deposit, compulsory loan or similar
             requirement against assets held by, or deposits or other
             liabilities in or for the account of, advances or loans by, or
             other credit extended by, or any other acquisition of funds by, any
             office of Lender which is not otherwise included in the
             determination of the LIBOR Rate hereunder,

                     (B)     shall hereafter have the effect of reducing the
             rate of return on Lender's capital as a consequence of its
             obligations hereunder to a level below that which Lender could have
             achieved but for such adoption, change or compliance (taking into
             consideration Lender's policies with respect to capital adequacy)
             by any amount deemed by Lender to be material; or

                     (C)     shall hereafter impose on Lender any other
             condition and the result of any of the foregoing is to increase the
             cost to Lender of making, renewing or maintaining loans or
             extensions of credit or to reduce any amount receivable hereunder;

then, in any such case, Borrowers shall promptly pay Lender, upon demand, any
additional amounts necessary to compensate Lender for such additional cost or
reduced amount receivable which Lender deems to be material as determined by
Lender. If Lender becomes entitled to claim any additional amounts pursuant to
this Section 2.3(f)(iv), Lender shall provide Borrowers with not less than
ninety (90) days written notice specifying in reasonable detail the event by
reason

                                     - 21 -
<Page>

of which it has become so entitled and the additional amount required to fully
compensate Lender for such additional cost or reduced amount. A certificate as
to any additional costs or amounts payable pursuant to the foregoing sentence
submitted by Lender to Borrowers shall be conclusive in the absence of manifest
error. This provision shall survive payment of the Note and the satisfaction of
all other obligations of Borrowers under this Agreement and the Loan Documents.

             (v)     Borrowers agree, jointly and severally, to indemnify
     Lender and to hold Lender harmless from any loss or expense which Lender
     sustains or incurs as a consequence of (x) any default by Borrowers in
     payment of the principal of or interest on a LIBOR Loan, including, without
     limitation, any such loss or expense arising from interest or fees payable
     by Lender to lenders of funds obtained by it in order to maintain a LIBOR
     Loan hereunder, (y) any prepayment (whether voluntary or mandatory) of the
     LIBOR Loan that did not include all interest which had accrued (or would
     have accrued) at the Note Rate through the end of the related Interest
     Period, including, without limitation, such loss or expense arising from
     interest or fees payable by Lender to lenders of funds obtained by it in
     order to maintain the LIBOR Loan hereunder, and (z) the conversion (for any
     reason whatsoever, whether voluntary or involuntary) of the Note Rate from
     the LIBOR Rate to the Static LIBOR Rate with respect to any portion of the
     outstanding principal amount of the Loan then bearing interest at the LIBOR
     Rate on a date other than the Payment Date immediately following the last
     day of an Interest Period, including, without limitation, such loss or
     expenses arising from interest or fees payable by Lender to lenders of
     funds obtained by it in order to maintain a LIBOR Loan hereunder (the
     amounts referred to in clauses (x), (y) and (z) are herein referred to
     collectively as the "BREAKAGE COSTS"). This provision shall survive payment
     of the Note in full and the satisfaction of all other obligations of
     Borrowers under this Agreement and the other Loan Documents.

             (vi)    Lender shall not be entitled to claim compensation
     pursuant to this Section 2.3(f) for any Foreign Taxes, increased cost or
     reduction in amounts received or receivable hereunder, or any reduced rate
     of return, which was incurred or which accrued more than one hundred eighty
     (180) days before the date Lender notified Borrowers of the change in law
     or other circumstance on which such claim of compensation is based and
     delivered to Borrowers a written statement setting forth in reasonable
     detail the basis for calculating the additional amounts owed to Lender
     under this Section 2.3(f), which statement shall be conclusive and binding
     upon all parties hereto absent manifest error.

             (vii)   Borrowers shall pay to Lender such amount or amounts as
     will compensate Lender for any loss, cost, expense, penalty, claim or
     liability, including any loss incurred in obtaining, prepaying, liquidating
     or employing deposits or other funds from third parties and any loss of
     yield, as determined by Lender in its judgment reasonably exercised
     incurred by it with respect to the Loan as a result of the payment or
     prepayment of any amount on a date other than the date such amount is
     required or permitted to be paid or prepaid; provided that Lender delivers
     to Borrowers a certificate as to the amounts of such costs described
     herein, which certificate shall be conclusive in the absence of manifest
     error. Lender shall have no obligation to purchase, sell and/or match funds
     in connection with the funding or maintaining of the Loan or any portion

                                     - 22 -
<Page>

     thereof. The obligations of Borrowers under this Section shall survive any
     termination of the Loan Documents and payment of the Note and shall not be
     waived by any delay by Lender in seeking such compensation.

             (viii)  All payments made by Borrowers hereunder or under the
     other Loan Documents shall be made irrespective of, and without any
     deduction for, any setoff, defense or counterclaims.

             (ix)    Remittances in payment of any part of the Loan in less
     than the required amount in immediately available U.S. funds shall not,
     regardless of any receipt or credit issued therefor, constitute payment
     until the required amount is actually received by the holder hereof in
     immediately available U.S. funds and shall be made and accepted subject to
     the condition that any check or draft may be handled for collection in
     accordance with the practices of the collecting bank or banks.

     (g)     The maximum principal sum secured by the mortgage on the Individual
Properties located in the State of New York (the "New York Mortgage") at
execution of this Agreement or which under any contingency may be secured
thereby at any time in the future is $126,603,750.00, plus (i) taxes, charges or
assessments which may be imposed by law upon such Individual Properties, (ii)
premiums or insurance policies covering such Individual Properties and (iii)
expenses incurred in upholding the Lien of the New York Mortgage, including, but
not limited to, (x) the expenses of any litigation to prosecute or defend the
rights and Lien created by the New York Mortgage, (y) any amount, cost or
charges to which Lender becomes subrogated upon payment, whether under
recognized principles of law or equity or under express statutory authority and
(z) interest at the Default Rate (or regular interest rate).

     Section 2.4.    PREPAYMENTS.

     (a)     VOLUNTARY PREPAYMENTS.

             (i)     PREPAYMENT IN FULL. Borrowers may prepay the Loan in full
     at any time on not less than sixty (60), but no more than ninety (90),
     days' prior written notice provided that (A) any prepayment that is made
     during the first six (6) months after the Closing Date shall include a
     prepayment premium equal to 0.90% of the Loan, (B) any prepayment that is
     made during the seventh (7th) month through and including the twelfth
     (12th) month after the Closing Date shall include a prepayment premium
     equal to 0.75% of the Loan and (C) any prepayment that is made during the
     thirteenth (13th) month through and including the eighteenth (18th) month
     after the Closing Date shall include a prepayment premium equal to 0.50% of
     the Loan. No prepayment premium shall be payable with respect to a
     prepayment that is made during the nineteenth (19th) month through and
     including the Maturity Date. Any prepayment that is made on a date that is
     not a monthly Payment Date shall also include the full interest amount that
     would be due if the Loan had been outstanding through the entire related
     interest period.

             (ii)    PARTIAL PREPAYMENT. Borrowers may prepay a portion of the
     Loan allocated to an Individual Property (the portion of the Loan allocated
     to each Individual Property, as shown on Schedule II attached hereto and
     made part hereof, an "ALLOCATED

                                     - 23 -
<Page>

     AMOUNT") and Lender shall release such Individual Property from the related
     Mortgage thereon in connection with the sale of such Individual Property to
     a third party purchaser, provided that (A) Lender is paid 110% of the
     Allocated Amount for the Individual Property to be released, (B) the Debt
     Service Coverage Ratio of the Properties remaining after the release of the
     Individual Property shall not be less than (x) the Debt Service Coverage
     Ratio of the Properties that existed immediately prior to the release and
     (y) the Debt Service Coverage Ratio of the Properties that existed as of
     the Closing Date, each as determined by Lender, and (C) Lender shall be
     paid a processing fee of $5,000 for each release. Any prepayment made under
     this sub-paragraph (ii) shall also include the prepayment premium for the
     amount prepaid calculated as provided in the foregoing sub-paragraph (i),
     if applicable, and if such prepayment occurs on a date that is not a
     monthly Payment Date, the full interest amount that would be due with
     respect to the portion of the Loan being prepaid through the next monthly
     Payment Date.

     (b)     INSURANCE AND CONDEMNATION PROCEEDS; EXCESS INTEREST.
Notwithstanding any other provision herein to the contrary, and provided no
Default exists, Borrowers shall not be required to pay any prepayment premium in
connection with any prepayment occurring solely as a result of (i) the
application of Insurance Proceeds or Condemnation Proceeds pursuant to the terms
of the Loan Documents, or (ii) the application of any interest in excess of the
maximum rate permitted by applicable law to the reduction of the Loan.

     (c)     APPLICATION OF PAYMENTS. All voluntary and involuntary prepayments
on the Note shall be applied, to the extent thereof, to accrued but unpaid
interest on the amount prepaid, to the remaining principal amount, and any other
sums due and unpaid to Lender in connection with the Loan, in such manner and
order as Lender may elect in its sole and absolute discretion. Following the
occurrence of an Event of Default, any payment made on the Note shall be applied
to accrued but unpaid interest, late charges, accrued fees, the unpaid principal
amount of the Note, and any other sums due and unpaid to Lender in connection
with the Loan, in such manner and order as Lender may elect in its sole and
absolute discretion. Notwithstanding anything to the contrary contained in this
paragraph (c), any payments made in reduction of the principal amount of the
Loan shall be applied first in reduction of that portion of the Debt in excess
of the sums secured by the New York Mortgage, in such order as Lender shall
elect (it being the intention of Borrower and Lender that the payments in
reduction of the Debt shall not reduce the sums secured by the New York Mortgage
until such time as the Debt shall have been reduced to $131,125,000.00 or less).

                                   ARTICLE 3.
                              CONDITIONS PRECEDENT

     The obligation of Lender to make the Loan hereunder is subject to the
fulfillment by Borrowers or waiver by Lender of all the conditions precedent to
closing set forth in the application or term sheet for the Loan delivered by
Borrowers to Lender and any commitment rider to the application for the Loan
issued by Lender

                                     - 24 -
<Page>

                                   ARTICLE 4.
                         REPRESENTATIONS AND WARRANTIES

     Each Borrower and, where specifically indicated, Borrower Principal
represent and warrant to Lender as of the Closing Date that:

     Section 4.1.    ORGANIZATION

     Each Borrower and Borrower Principal (when not an individual) (a) has been
duly organized and is validly existing and in good standing with requisite power
and authority to own its properties and to transact the businesses in which it
is now engaged, (b) is duly qualified to do business and is in good standing in
each jurisdiction where it is required to be so qualified in connection with its
properties, businesses and operations, (c) possesses all rights, licenses,
permits and authorizations, governmental or otherwise, necessary to entitle it
to own its properties and to transact the businesses in which it is now engaged,
and the sole business of each Borrower is the ownership, management and
operation of the Individual Property which it owns, and (d) in the case of each
Borrower, has full power, authority and legal right to mortgage, grant, bargain,
sell, pledge, assign, warrant, transfer and convey the Individual Property which
it owns, pursuant to the terms of the Loan Documents, and in the case of each
Borrower and Borrower Principal, has full power, authority and legal right to
keep and observe all of the terms of the Loan Documents to which it is a party.
Each Borrower and Borrower Principal represent and warrant that the chart
attached hereto as Exhibit A sets forth an accurate listing of the direct and
indirect owners of the equity interests in each Borrower, each SPE Component
Entity (if any) and Borrower Principal (when not an individual).

     Section 4.2.    STATUS OF EACH BORROWER

     Each Borrower's exact legal name is correctly set forth on the first page
of this Agreement, on the Mortgage which is a lien on the Individual Property
owned by such Borrower and on any UCC-1 Financing Statements filed in connection
with the Loan. Each Borrower is an organization of the type specified on the
first page of this Agreement. Each Borrower is organized under the laws of the
state of Delaware. Each Borrower's principal place of business and chief
executive office, and the place where such Borrower keeps its books and records,
including recorded data of any kind or nature, regardless of the medium of
recording, including software, writings, plans, specifications and schematics,
has been for the preceding four months (or, if less, the entire period of the
existence of such Borrower) the address of such Borrower set forth on the first
page of this Agreement. Each Borrower's organizational identification number, if
any, assigned by the state of incorporation or organization is set forth on the
signature page of this Agreement.

     Section 4.3.    VALIDITY OF DOCUMENTS

     Each Borrower and Borrower Principal have taken all necessary action to
authorize the execution, delivery and performance of this Agreement and the
other Loan Documents to which they are parties. This Agreement and such other
Loan Documents have been duly executed and delivered by or on behalf of each
Borrower and Borrower Principal and constitute the legal, valid and binding
obligations of each Borrower and Borrower Principal enforceable against each

                                     - 25 -
<Page>

Borrower and Borrower Principal in accordance with their respective terms,
subject only to applicable bankruptcy, insolvency and similar laws affecting
rights of creditors generally, and subject, as to enforceability, to general
principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law).

     Section 4.4.    NO CONFLICTS

     The execution, delivery and performance of this Agreement and the other
Loan Documents by Borrowers and Borrower Principal will not conflict with or
result in a breach of any of the terms or provisions of, or constitute a default
under, or result in the creation or imposition of any lien, charge or
encumbrance (other than pursuant to the Loan Documents) upon any of the property
or assets of Borrowers or Borrower Principal pursuant to the terms of any
agreement or instrument to which Borrowers or Borrower Principal is a party or
by which any of Borrowers' or Borrower Principal's property or assets is
subject, nor will such action result in any violation of the provisions of any
statute or any order, rule or regulation of any Governmental Authority having
jurisdiction over any Borrower or Borrower Principal or any of Borrowers' or
Borrower Principal's properties or assets, and any consent, approval,
authorization, order, registration or qualification of or with any Governmental
Authority required for the execution, delivery and performance by any Borrower
or Borrower Principal of this Agreement or any of the other Loan Documents has
been obtained and is in full force and effect.

     Section 4.5.    LITIGATION

     There are no actions, suits or proceedings at law or in equity by or before
any Governmental Authority or other agency now pending or, to Borrowers' or
Borrower Principal's knowledge, threatened against or affecting any Borrower,
Borrower Principal, Manager or any Individual Property, which actions, suits or
proceedings, if determined against a Borrower, Borrower Principal, Manager or
such Individual Property, would materially adversely affect the condition
(financial or otherwise) or business of such Borrower or Borrower Principal or
the condition or ownership of such Individual Property.

     Section 4.6.    AGREEMENTS

     None of the Borrowers is party to any agreement or instrument or subject to
any restriction which would materially and adversely affect Borrowers or the
Properties, or Borrowers' business, properties or assets, operations or
condition, financial or otherwise. Borrowers are not in default in any material
respect in the performance, observance or fulfillment of any of the obligations,
covenants or conditions contained in any agreement or instrument to which they
are parties or by which they or the Properties are bound. Borrowers have no
material financial obligation under any agreement or instrument to which
Borrowers are a party or by which Borrowers or the Properties are otherwise
bound, other than (a) obligations incurred in the ordinary course of the
operation of the Properties and (b) obligations under the Loan Documents.

     Section 4.7.    SOLVENCY

     Borrowers and Borrower Principal have (a) not entered into the transaction
or executed the Note, this Agreement or any other Loan Documents with the actual
intent to hinder, delay or

                                     - 26 -
<Page>

defraud any creditor and (b) received reasonably equivalent value in exchange
for their obligations under such Loan Documents. Giving effect to the Loan, the
fair saleable value of the assets of Borrowers and Borrower Principal exceeds
and will, immediately following the making of the Loan, exceed the total
liabilities of Borrowers and Borrower Principal, including, without limitation,
subordinated, unliquidated, disputed and contingent liabilities. No petition in
bankruptcy has been filed against any Borrower, Borrower Principal, any SPE
Component Entity (if any) or Affiliated Manager in the last ten (10) years, and
none of the Borrowers or Borrower Principal, any SPE Component Entity (if any)
or Affiliated Manager in the last ten (10) years has made an assignment for the
benefit of creditors or taken advantage of any Creditors Rights Laws. Neither
any Borrower nor Borrower Principal, any SPE Component Entity (if any) or
Affiliated Manager is contemplating either the filing of a petition by it under
any Creditors Rights Laws or the liquidation of all or a major portion of its
assets or property, and Borrowers have no knowledge of any Person contemplating
the filing of any such petition against any Borrower or Borrower Principal, any
SPE Component Entity (if any) or Affiliated Manager.

     Section 4.8.    FULL AND ACCURATE DISCLOSURE

     No statement of fact made by or on behalf of any Borrower or Borrower
Principal in this Agreement or in any of the other Loan Documents or in any
other document or certificate delivered by or on behalf of Borrowers or Borrower
Principal contains any untrue statement of a material fact or omits to state any
material fact necessary to make statements contained herein or therein not
misleading. There is no material fact presently known to Borrowers or Borrower
Principal which has not been disclosed to Lender which adversely affects, nor as
far as Borrowers or Borrower Principal can reasonably foresee, might adversely
affect, the Properties or any of them, or the business, operations or condition
(financial or otherwise) of Borrowers or Borrower Principal.

     Section 4.9.    NO PLAN ASSETS

     None of the Borrowers is an "employee benefit plan," as defined in Section
3(3) of ERISA, subject to Title I of ERISA, and none of the assets of Borrowers
constitutes or will constitute "plan assets" of one or more such plans within
the meaning of 29 C.F.R. Section 2510.3-101. In addition, (a) none of the
Borrowers is a "governmental plan" within the meaning of Section 3(32) of ERISA
and (b) transactions by or with Borrowers are not subject to state statutes
regulating investment of, and fiduciary obligations with respect to,
governmental plans similar to the provisions of Section 406 of ERISA or Section
4975 of the Internal Revenue Code currently in effect, which prohibit or
otherwise restrict the transactions contemplated by this Agreement.

     Section 4.10.   NOT A FOREIGN PERSON

     None of the Borrowers or Borrower Principal is a "foreign person" within
the meaning of Section 1445(f)(3) of the Internal Revenue Code.

     Section 4.11.   ENFORCEABILITY

     The Loan Documents are not subject to any right of rescission, set-off,
counterclaim or defense by any Borrower, including the defense of usury, nor
would the operation of any of the

                                     - 27 -
<Page>

terms of the Loan Documents, or the exercise of any right thereunder, render the
Loan Documents unenforceable, and neither Borrowers nor Borrower Principal has
asserted any right of rescission, set-off, counterclaim or defense with respect
thereto. No Default or Event of Default exists under or with respect to any Loan
Document.

     Section 4.12.   BUSINESS PURPOSES

     The Loan is solely for the business purpose of Borrowers, and is not for
personal, family, household, or agricultural purposes.

     Section 4.13.   COMPLIANCE

     Except as expressly disclosed by Borrowers to Lender in writing in
connection with the closing of the Loan, to the best of Borrowers' knowledge
Borrowers and the Properties, and the use and operation thereof, comply in all
material respects with all Legal Requirements, including, without limitation,
building and zoning ordinances and codes and the Americans with Disabilities
Act. To Borrowers' knowledge, none of the Borrowers is in default or violation
of any order, writ, injunction, decree or demand of any Governmental Authority
and none of the Borrowers has received written notice of any such default or
violation. There has not been committed by Borrowers or, to Borrowers'
knowledge, any other Person in occupancy of or involved with the operation or
use of any of the Properties any act or omission affording any Governmental
Authority the right of forfeiture as against any of the Properties or any part
thereof or any monies paid in performance of Borrowers' obligations under any of
the Loan Documents.

     Section 4.14.   FINANCIAL INFORMATION

     All financial data, including, without limitation, the balance sheets,
statements of cash flow, statements of income and operating expense and rent
rolls, that have been delivered to Lender in respect of Borrowers, Borrower
Principal and/or the Properties (a) are true, complete and correct in all
material respects, (b) accurately represent the financial condition of
Borrowers, Borrower Principal or the Properties, as applicable, as of the date
of such reports, and (c) to the extent prepared or audited by an independent
certified public accounting firm, have been prepared in accordance with federal
tax basis accounting throughout the periods covered, except as disclosed
therein. Borrowers do not have any contingent liabilities, liabilities for
taxes, unusual forward or long-term commitments or unrealized or anticipated
losses from any unfavorable commitments that are known to Borrowers and
reasonably likely to have a material adverse effect on the Properties or the
current and/or intended operation thereof, except as referred to or reflected in
said financial statements. Since the date of such financial statements, there
has been no materially adverse change in the financial condition, operations or
business of Borrowers or Borrower Principal from that set forth in said
financial statements.

     Section 4.15.   CONDEMNATION

     No Condemnation or other proceeding has been commenced or, to Borrowers'
best knowledge, is threatened or contemplated with respect to all or any portion
of any Individual Property or for the relocation of roadways providing access to
any Individual Property.

                                     - 28 -
<Page>

     Section 4.16.   UTILITIES AND PUBLIC ACCESS; PARKING

     To the best of Borrowers' knowledge, each Individual Property has adequate
rights of access to public ways and is served by water, sewer, sanitary sewer
and storm drain facilities adequate to service such Individual Property for full
utilization for its intended uses. All public utilities necessary to the full
use and enjoyment of the Properties as currently used and enjoyed are located
either in the public right-of-way abutting each Individual Property (which are
connected so as to serve the Individual Property without passing over other
property) or in recorded easements serving the Individual Property and such
easements are set forth in and insured by a Title Insurance Policy. All roads
necessary for the use of the Properties for their current purposes have been
completed and dedicated to public use and accepted by all Governmental
Authorities. Each Individual Property has, or is served by, parking to the
extent required to comply with all Legal Requirements.

     Section 4.17.   SEPARATE LOTS

     Each Individual Property is assessed for real estate tax purposes as one or
more wholly independent tax lot or lots, separate from any adjoining land or
improvements not constituting a part of such lot or lots, and no other land or
improvements is assessed and taxed together with such Individual Property or any
portion thereof.

     Section 4.18.   ASSESSMENTS

     To Borrowers' knowledge after due inquiry, there are no pending or proposed
special or other assessments for public improvements or otherwise affecting any
of the Properties, nor are there any contemplated improvements to any of the
Properties that may result in such special or other assessments.

     Section 4.19.   INSURANCE

     Borrowers have obtained and have delivered to Lender certified copies of
all Policies or, to the extent such Policies are not available as of the Closing
Date, certificates of insurance with respect to all such Policies reflecting the
insurance coverages, amounts and other requirements set forth in this Agreement.
No claims have been made under any of the Policies, and to Borrowers' knowledge,
no Person, including any Borrower, has done, by act or omission, anything which
would impair the coverage of any of the Policies.

     Section 4.20.   USE OF PROPERTY

     The Properties are used exclusively for general commercial purposes and
other appurtenant and related uses.

     Section 4.21.   CERTIFICATE OF OCCUPANCY; LICENSES

     All certificates of occupancy and to Borrowers' knowledge certifications,
permits, licenses and approvals, including, without limitation, certificates of
completion and any applicable liquor license required for the legal use,
occupancy and operation of the Properties for the purpose intended herein, have
been obtained and are valid and in full force and effect.

                                     - 29 -
<Page>

Borrowers shall keep and maintain all licenses necessary for the operation of
the Properties for the purpose intended herein. The use being made of the
Properties is in conformity with the certificates of occupancy and any permits
or licenses issued for the Properties.

     Section 4.22.   FLOOD ZONE

     None of the Improvements on the Properties is located in an area identified
by the Federal Emergency Management Agency as an area having special flood
hazards, or, if any portion of the Improvements is located within such area,
Borrowers have obtained the insurance prescribed in Section 8.1(a)(i).

     Section 4.23.   PHYSICAL CONDITION

     Except as set forth in the Physical Condition Reports, to Borrowers'
knowledge after due inquiry, the Properties, including, without limitation, all
buildings, improvements, parking facilities, sidewalks, storm drainage systems,
roofs, plumbing systems, HVAC systems, fire protection systems, electrical
systems, equipment, elevators, exterior sidings and doors, landscaping,
irrigation systems and all structural components, are in good condition, order
and repair in all material respects. Except as set forth in the Physical
Condition Reports, to Borrowers' knowledge after due inquiry, there exist no
structural or other material defects or damages in any Individual Property, as a
result of a Casualty or otherwise, and whether latent or otherwise. Borrowers
have not received notice from any insurance company or bonding company of any
defects or inadequacies in any Individual Property, or any part thereof, which
would adversely affect the insurability of the same or cause the imposition of
extraordinary premiums or charges thereon or of any termination or threatened
termination of any policy of insurance or bond.

     Section 4.24.   BOUNDARIES

     (a)     None of the Improvements which were included in determining the
appraised value of the Properties lie outside the boundaries and building
restriction lines of the Properties to any material extent, and (b) no
improvements on adjoining properties encroach upon any of the Properties and no
easements or other encumbrances upon any of the Properties encroach upon any of
the Improvements so as to materially affect the value or marketability of any of
the Properties.

     Section 4.25.   LEASES AND RENT ROLL

     Borrowers have delivered to Lender a true, correct and complete rent roll
for each of the Properties (a "RENT ROLL") which includes all Leases affecting
each of the Properties (including schedules for all executed Leases for Tenants
not yet in occupancy or under which the rent commencement date has not
occurred). Except as set forth in the Rent Roll (as same has been updated by
written notice thereof to Lender) and estoppel certificates delivered to Lender
on or prior to the Closing Date: (a) each Lease is in full force and effect; (b)
the premises demised under the Leases have been completed and the Tenants under
the Leases have accepted possession of and are in occupancy of all of their
respective demised premises; (c) the Tenants under the Leases have commenced the
payment of rent under the Leases, there are no offsets, claims or defenses to
the enforcement thereof, and Borrowers have no monetary obligations to

                                     - 30 -
<Page>

any Tenant under any Lease; (d) all Rents due and payable under the Leases have
been paid and no portion thereof has been paid for any period more than thirty
(30) days in advance; (e) the rent payable under each Lease is the amount of
fixed rent set forth in the Rent Roll, and there is no claim or basis for a
claim by the Tenant thereunder for an offset or adjustment to the rent; (f) no
Tenant has made any written claim of a material default against the landlord
under any Lease which remains outstanding nor has any Borrower or Manager
received, by telephonic, in-person, e-mail or other communication, any notice of
a material default under any Lease; (g) to Borrowers' knowledge there is no
present material default by the Tenant under any Lease; (h) all security
deposits under the Leases have been collected by Borrowers; (i) each Borrower is
the sole owner of the entire landlord's interest in each Lease affecting the
Individual Property owned by such Borrower; (j) each Lease is the valid, binding
and enforceable obligation of the Borrower owning the Individual Property
subject to such lease and the applicable Tenant thereunder and there are no
agreements with the Tenants under the Leases other than as expressly set forth
in the Leases; (k) no Person has any possessory interest in, or right to occupy,
any of the Properties or any portion thereof except under the terms of a Lease;
(l) none of the Leases contains any option or offer to purchase or right of
first refusal to purchase an Individual Property or any part thereof except that
(i) Home Depot USA, Inc. has an option to purchase its demised premises at Home
Depot Plaza, Orange, Connecticut and Century III Plaza, West Mifflin,
Pennsylvania and a right of first offer with respect to a total or partial sale
of the Individual Properties in which its demised premises are located and (ii)
the Stop and Shop Supermarket Company has a right of first offer with respect to
a total or partial sale of the Mid-Hudson Shopping Center, Poughkeepsie, New
York; (m) neither the Leases nor the Rents have been assigned, pledged or
hypothecated except to Lender, and no other Person has any interest therein
except the Tenants thereunder; and (n) to the best of Borrower's actual
knowledge, no conditions exist (to the extent which each Borrower can control
such conditions) which now give any Tenant or party the right to "go dark"
pursuant to the provision of its Lease and/or the REA.

     Section 4.26.   FILING AND RECORDING TAXES

     All mortgage, mortgage recording, stamp, intangible or other similar tax
required to be paid by any Person under applicable Legal Requirements currently
in effect in connection with the execution, delivery, recordation, filing,
registration, perfection or enforcement of any of the Loan Documents, including,
without limitation, the Mortgages, have been paid or will be paid, and, under
current Legal Requirements, the Mortgages are enforceable in accordance with
their terms by Lender (or any subsequent holder thereof).

     Section 4.27.   MANAGEMENT AGREEMENTS

     The Management Agreements are in full force and effect and there is no
default thereunder by any party thereto and, to Borrowers' knowledge, no event
has occurred that, with the passage of time and/or the giving of notice would
constitute a default thereunder. No management fees under the Management
Agreements are accrued and unpaid.

                                     - 31 -
<Page>

     Section 4.28.   ILLEGAL ACTIVITY

     No portion of the Properties has been or will be purchased with proceeds of
 any illegal activity, and no part of the proceeds of the Loan will be used in
 connection with any illegal activity.

     Section 4.29.   CONSTRUCTION EXPENSES

     All costs and expenses of any and all labor, materials, supplies and
equipment used in the construction, maintenance or repair of the Improvements
have been paid in full. To Borrowers' knowledge after due inquiry, there are no
claims for payment for work, labor or materials affecting the Properties (or any
of them) which are or may become a lien prior to, or of equal priority with, the
Liens created by the Loan Documents.

     Section 4.30.   PERSONAL PROPERTY

     Borrowers have paid in full for, and are the owners of, all Personal
Property (other than Tenants' property) used in connection with the operation of
the Properties, free and clear of any and all security interests, liens or
encumbrances, except for Permitted Encumbrances and the Lien and security
interests created by the Loan Documents.

     Section 4.31.   TAXES

     Borrowers and Borrower Principal have filed all federal, state, county,
municipal, and city income, personal property and other tax returns required to
have been filed by them and have paid all taxes and related liabilities which
have become due pursuant to such returns or pursuant to any assessments received
by them. None of the Borrowers nor Borrower Principal knows of any basis for any
additional assessment in respect of any such taxes and related liabilities for
prior years.

     Section 4.32.   PERMITTED ENCUMBRANCES

     None of the Permitted Encumbrances, individually or in the aggregate,
materially interferes with the benefits of the security intended to be provided
by the Loan Documents, materially and adversely affects the value of any of the
Properties, impairs the use or the operation of any of the Properties or impairs
Borrowers' ability to pay their obligations in a timely manner.

     Section 4.33.   FEDERAL RESERVE REGULATIONS

     No part of the proceeds of the Loan will be used for the purpose of
purchasing or acquiring any "margin stock" within the meaning of Regulation U of
the Board of Governors of the Federal Reserve System or for any other purpose
which would be inconsistent with such Regulation U or any other Regulations of
such Board of Governors, or for any purposes prohibited by Legal Requirements or
prohibited by the terms and conditions of this Agreement or the other Loan
Documents.

                                     - 32 -
<Page>

     Section 4.34.   INVESTMENT COMPANY ACT

     None of the Borrowers is (a) an "investment company" or a company
"controlled" by an "investment company," within the meaning of the Investment
Company Act of 1940, as amended; (b) a "holding company" or a "subsidiary
company" of a "holding company" or an "affiliate" of either a "holding company"
or a "subsidiary company" within the meaning of the Public Utility Holding
Company Act of 1935, as amended; or (c) subject to any other federal or state
law or regulation which purports to restrict or regulate its ability to borrow
money.

     Section 4.35.   RECIPROCAL EASEMENT AGREEMENTS

     (a)     To the best of Borrowers' knowledge, neither any of the Borrowers,
nor any other party is currently in default (nor has any notice been given or
received with respect to an alleged or current default) under any of the terms
and conditions of the REA, and the REA remains unmodified and in full force and
effect;

     (b)     All easements granted pursuant to the REA which were to have
survived the site preparation and completion of construction (to the extent that
the same has been completed), remain in full force and effect and have not been
released, terminated, extinguished or discharged by agreement or otherwise;

     (c)     To the best of Borrowers' knowledge, all sums due and owing by
Borrowers to the other parties to the REA (or by the other parties to the REA to
the Borrowers) pursuant to the terms of the REA, including without limitation,
all sums, charges, fees, assessments, costs, and expenses in connection with any
taxes, site preparation and construction, non-shareholder contributions, and
common area and other property management activities have been paid, are
current, and no lien has attached on any of the Properties (or threat thereof
been made) for failure to pay any of the foregoing;

     (d)     The terms, conditions, covenants, uses and restrictions contained
in the REA do not conflict in any manner with any terms, conditions, covenants,
uses and restrictions contained in any Lease or in any agreement between any
Borrower and occupant of any peripheral parcels, including without limitation,
conditions and restrictions with respect to kiosk placement, tenant restrictions
(type, location or exclusivity), sale of certain goods or services, and/or other
use restrictions; and

     (e)     The terms, conditions, covenants, uses and restrictions contained
in each Lease do not conflict in any manner with any terms, conditions,
covenants, uses and restrictions contained in the REA, any other Lease or in any
agreement between any Borrower and occupant of any peripheral parcel, including
without limitation, conditions and restrictions with respect to kiosk placement,
tenant restrictions (type, location or exclusivity), sale of certain goods or
services, and/or other use restrictions.

     Section 4.36.   NO CHANGE IN FACTS OR CIRCUMSTANCES; DISCLOSURE

     All information submitted by Borrowers or their agents to Lender and in all
financial statements, rent rolls, reports, certificates and other documents
submitted in connection with the Loan or in satisfaction of the terms thereof
and all statements of fact made by Borrowers in this

                                     - 33 -
<Page>

Agreement or in any other Loan Document, are accurate, complete and correct in
all material respects. There has been no material adverse change in any
condition, fact, circumstance or event that would make any such information
inaccurate, incomplete or otherwise misleading in any material respect or that
otherwise materially and adversely affects or might materially and adversely
affect any of the Properties or the business operations or the financial
condition of any of the Borrowers. Borrowers have disclosed to Lender all
material facts and have not failed to disclose any material fact that could
cause any representation or warranty made herein to be materially misleading.

     Section 4.37.   INTELLECTUAL PROPERTY

     All trademarks, trade names and service marks necessary to the business of
Borrowers as presently conducted or as Borrowers contemplate conducting their
business are in good standing and, to the extent of Borrowers' actual knowledge,
uncontested. Borrowers have not infringed, are not infringing, and have not
received notice of infringement with respect to asserted trademarks, trade names
and service marks of others. To Borrowers' knowledge, there is no infringement
by others of trademarks, trade names and service marks of any Borrower.

     Section 4.38.   COMPLIANCE WITH ANTI-TERRORISM LAWS

     None of the Borrowers, Borrower Principal or any Person who Controls a
Borrower or Borrower Principal currently is identified by the Office of Foreign
Assets Control, Department of the Treasury ("OFAC") or otherwise qualifies as an
Embargoed Person, and Borrowers have implemented procedures to ensure that no
Person who now or hereafter owns a direct or indirect equity interest in any of
the Borrowers is an Embargoed Person or is Controlled by an Embargoed Person.
None of the Borrowers or Borrower Principal is in violation of any applicable
law relating to anti-money laundering or anti-terrorism, including, without
limitation, those related to transacting business with Embargoed Persons or the
requirements of the United and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001, U.S. Public Law
107-56 and the related regulations issued thereunder, including temporary
regulations (collectively, as the same may be amended from time to time, the
"PATRIOT ACT"). To the best of Borrowers' knowledge, no tenant at any Individual
Property is currently identified by OFAC or otherwise qualifies as an Embargoed
Person, or is owned or Controlled by an Embargoed Person. Borrowers have
determined that Manager has implemented procedures approved by Borrower to
ensure that no tenant at any of the Individual Properties is currently
identified by OFAC or otherwise qualifies as an Embargoed Person, or is owned or
controlled by an Embargoed Person.

     Section 4.39.   PATRIOT ACT

     Neither Borrowers nor Borrower Principal shall (a) be or become subject at
any time to any law, regulation or list of any governmental agency (including,
without limitation, the list maintained by OFAC and accessible through the OFAC
website) that prohibits or limits any lender from making any advance or
extension of credit to Borrowers or from otherwise conducting business with
Borrowers and Borrower Principal, or (b) fail to provide documentary and other
evidence of Borrowers' identity as may be requested by any lender at any time to
enable any lender to verify Borrowers' identity or to comply with any applicable
law or

                                     - 34 -
<Page>

regulation, including, without limitation, the Patriot Act. In addition,
Borrowers shall provide to Lender any additional information that Lender deems
necessary from time to time in order to ensure compliance with all applicable
laws concerning money laundering and similar activities.

     Section 4.40.   GROUND LEASES

     Borrowers have delivered to Lender true, correct and complete copies of the
Ground Leases. Each of the Ground Leases is in full force and effect and has not
been modified or amended; there are no agreements between Borrowers and the
lessors under the Ground Leases other than as expressly set forth in the Ground
Leases and otherwise disclosed to Lender in writing; all rents and other sums
due and payable under the Ground Leases have been paid; neither of the lessors
under the Ground Leases has made any written claim of a default by the tenant
nor has any Borrower received by telephone, in person, e-mail or other
communication, any notice of default thereunder; to Borrowers' knowledge, there
is no present default by the tenant under either Ground Lease and no event has
occurred which but for the passage of time or notice or both would constitute a
default thereunder; neither of the Ground Leases has been assigned, pledged or
hypothecated by Borrowers except to Lender and no other Person has any interest
therein.

     Section 4.41.   SURVIVAL

     Borrowers agree that, unless expressly provided otherwise, all of the
representations and warranties of Borrowers set forth in this Agreement and in
the other Loan Documents shall survive for so long as any portion of the Debt
remains owing to Lender. All representations, warranties, covenants and
agreements made in this Agreement or in the other Loan Documents by Borrowers
shall be deemed to have been relied upon by Lender notwithstanding any
investigation heretofore or hereafter made by Lender or on its behalf.

                                   ARTICLE 5.
                               BORROWER COVENANTS

     From the date hereof and until repayment of the Debt in full and
performance in full of all obligations of Borrowers under the Loan Documents or
the earlier release of the Liens of the Mortgages (and all related obligations)
in accordance with the terms of this Agreement and the other Loan Documents,
Borrowers hereby covenant and agree with Lender that:

     Section 5.1.    EXISTENCE; COMPLIANCE WITH LEGAL REQUIREMENTS

     (a)     Each Borrower shall do or cause to be done all things necessary to
preserve, renew and keep in full force and effect its existence, rights,
licenses, permits and franchises and comply with all Legal Requirements
applicable to it and the Individual Property owned by it. Each Borrower hereby
covenants and agrees not to commit, permit or suffer to exist any act or
omission affording any Governmental Authority the right of forfeiture as against
the Individual Property owned by it or any part thereof or any monies paid in
performance of such Borrower's obligations under any of the Loan Documents. Each
Borrower shall at all times maintain, preserve and protect all franchises and
trade names used in connection with the operation of the Individual Property.

                                     - 35 -
<Page>

     (b)     After prior written notice to Lender, Borrowers, at their own
expense, may contest by appropriate legal proceeding, promptly initiated and
conducted in good faith and with due diligence, the Legal Requirements affecting
any of the Properties, provided that (i) no Default or Event of Default has
occurred and is continuing; (ii) such proceeding shall be permitted under and be
conducted in accordance with the provisions of any other instrument to which
Borrowers or the Properties are subject and shall not constitute a default
thereunder; (iii) neither any of the Properties nor any part thereof or interest
therein, any of the tenants or occupants thereof, nor any Borrower shall be
affected in any material adverse way as a result of such proceeding; (iv)
non-compliance with the Legal Requirements shall not impose civil or criminal
liability on any Borrower or Lender; (v) Borrowers shall have furnished the
security as may be required in the proceeding or by Lender to ensure compliance
by Borrowers with the Legal Requirements; and (vi) Borrowers shall have
furnished to Lender all other items reasonably requested by Lender.

     Section 5.2.    MAINTENANCE AND USE OF PROPERTY

     Borrowers shall cause the Properties to be maintained in good and safe
condition and repair. The Improvements and the Personal Property shall not be
removed, demolished or materially altered (except for normal replacement of the
Personal Property) without the prior written consent of Lender. If under
applicable zoning provisions the use of all or any portion of an Individual
Property is or shall become a nonconforming use, Borrowers will not cause or
permit the nonconforming use to be discontinued or the nonconforming Improvement
to be abandoned without the express written consent of Lender.

     Section 5.3.    WASTE

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

     Section 5.4.    TAXES AND OTHER CHARGES

     (a)     Borrowers shall pay all Taxes and Other Charges now or hereafter
levied or assessed or imposed against the Properties or any part thereof as the
same become due and payable. Borrowers shall furnish to Lender receipts for the
payment of the Taxes and the Other Charges and upon request by Lender,
certificates from Borrowers and Borrower Principal that indicate that, as of the
date of such certificates, there are no liens filed against the Properties, or
any of them, arising form the non-payment of Taxes or Other Charges. Borrowers
shall not suffer and shall promptly cause to be paid and discharged any Lien or
charge whatsoever which may be or become a Lien or charge against any of the
Properties, and shall promptly pay for all utility services provided to the
Properties.

                                     - 36 -
<Page>

     (b)     After prior written notice to Lender, Borrowers, at their own
expense, may contest by appropriate legal proceeding, promptly initiated and
conducted in good faith and with due diligence, the amount or validity or
application in whole or in part of any Taxes or Other Charges, provided that (i)
no Default or Event of Default has occurred and remains uncured; (ii) such
proceeding shall be permitted under and be conducted in accordance with the
provisions of any other instrument to which Borrowers are subject and shall not
constitute a default thereunder and such proceeding shall be conducted in
accordance with all applicable Legal Requirements; (iii) neither any of the
Properties nor any part thereof or interest therein will be in danger of being
sold, forfeited, terminated, canceled or lost; (iv) Borrowers shall promptly
upon final determination thereof pay the amount of any such Taxes or Other
Charges, together with all costs, interest and penalties which may be payable in
connection therewith; (v) any such proceeding shall suspend the collection of
such contested Taxes or Other Charges from the Individual Property; and (vi)
Borrowers shall furnish such security as may be required in the proceeding, or
deliver to Lender such reserve deposits as may be requested by Lender, to insure
the payment of any such Taxes or Other Charges, together with all interest and
penalties thereon (unless all of the Taxes or Other Charges have been paid under
protest). Lender may pay over any such cash deposit or part thereof held by
Lender to the claimant entitled thereto at any time when, in the judgment of
Lender, the entitlement of such claimant is established or an Individual
Property (or part thereof or interest therein) shall be in danger of being sold,
forfeited, terminated, canceled or lost or there shall be any danger of the Lien
of the Mortgage on such Individual Property being primed by any related Lien.

     Section 5.5.    LITIGATION

     Borrowers shall give prompt written notice to Lender of any litigation or
governmental proceedings pending or threatened in writing against any Borrower
which might materially adversely affect such Borrower's condition (financial or
otherwise) or business or the Individual Property owned by such Borrower.

     Section 5.6.    ACCESS TO PROPERTY

     Subject to the rights of Tenants under Leases, Borrowers shall permit
agents, representatives and employees of Lender to inspect the Properties or any
part thereof at reasonable hours upon reasonable advance notice.

     Section 5.7.    NOTICE OF DEFAULT

     Borrowers shall promptly advise Lender of any material adverse change in
the condition (financial or otherwise) of any Borrower, Borrower Principal or
any of the Properties or of the occurrence of any Default or Event of Default of
which any Borrower has knowledge.

     Section 5.8.    COOPERATE IN LEGAL PROCEEDINGS

     Borrowers shall at Borrowers' expense cooperate fully with Lender with
respect to any proceedings before any court, board or other Governmental
Authority which may in any way affect the rights of Lender hereunder or any
rights obtained by Lender under any of the other Loan Documents and, in
connection therewith, permit Lender, at its election, to participate in any such
proceedings.

                                     - 37 -
<Page>

     Section 5.9.    PERFORMANCE BY BORROWERS

     Borrowers shall in a timely manner observe, perform and fulfill each and
every covenant, term and provision to be observed and performed by Borrowers
under this Agreement and the other Loan Documents and any other agreement or
instrument affecting or pertaining to the Properties and any amendments,
modifications or changes thereto.

     Section 5.10.   AWARDS; INSURANCE PROCEEDS

     Borrowers shall cooperate with Lender in obtaining for Lender the benefits
of any Awards or Insurance Proceeds lawfully or equitably payable in connection
with any of the Properties, and Lender shall be reimbursed for any expenses
incurred in connection therewith (including reasonable, actual attorneys' fees
and disbursements, and the payment by Borrowers of the expense of an appraisal
on behalf of Lender in case of a Casualty or Condemnation affecting any of the
Properties or any part thereof) out of such Awards or Insurance Proceeds. The
actual payment of any Awards shall be governed by Section 8.4 hereof.

     Section 5.11.   FINANCIAL REPORTING

     (a)     Borrowers and Borrower Principal shall each keep adequate books and
records of account in accordance with federal tax basis accounting, or in
accordance with other methods acceptable to Lender in its sole discretion,
consistently applied and shall furnish to Lender:

             (i)     quarterly and annual (and prior to a Securitization, at the
     request of Lender, monthly), certified rent rolls signed and dated by
     Borrowers, detailing the names of all Tenants of the Improvements, the
     portion of Improvements (in terms of square footage) occupied by each
     Tenant, the base rent, additional rent and any other charges payable under
     each Lease (including, by separate report, annual store sales required to
     be reported by Tenant under any Lease), and the term of each Lease,
     including the commencement and expiration dates and any tenant extension,
     expansion or renewal options, the extent to which any Tenant is in material
     default under any Lease, by separate report, and any other information as
     is reasonably required by Lender, within twenty (20) days after the end of
     each calendar month, forty-five (45) days after the end of each fiscal
     quarter or one hundred twenty (120) days after the close of each fiscal
     year of Borrowers, as applicable;

             (ii)    quarterly and annual (and prior to a Securitization, at the
     request of Lender, monthly), operating statements of the Properties,
     prepared and certified by Borrowers in the form required by Lender,
     detailing the revenues received, the expenses incurred and the net
     operating income before and after debt service (principal and interest) and
     major capital improvements (including, without limitation, any capital
     improvements planned) for the period of calculation and containing
     appropriate year-to-date information, within twenty (20) days after the end
     of each calendar month, forty-five (45) days after the end of each fiscal
     quarter or one hundred twenty (120) days after the close of each fiscal
     year of Borrowers, as applicable;

             (iii)    annual balance sheets, profit and loss statements,
     statements of cash flows, and statements of change in financial position of
     each Borrower, as applicable, and

                                     - 38 -
<Page>

     Borrower Principal in the form required by Lender prepared and certified by
     each Borrower and Borrower Principal, within one hundred twenty (120) days
     after the close of each fiscal year of each Borrower and Borrower
     Principal, as the case may be.

     (b)     Upon request from Lender, each Borrower shall promptly furnish to
Lender:

             (i)     a property management report for each Individual Property,
     showing the number of inquiries made and/or rental applications received
     from tenants or prospective tenants and deposits received from tenants and
     any other information requested by Lender, in reasonable detail and
     certified by Borrower, but no more frequently than quarterly;

             (ii)    an accounting of all security deposits held in connection
     with any Lease of any part of each Individual Property, including the name
     and identification number of the accounts in which such security deposits
     are held, the name and address of the financial institutions in which such
     security deposits are held and the name of the Person to contact at such
     financial institution, along with any authority or release necessary for
     Lender to obtain information regarding such accounts directly from such
     financial institutions; and

             (iii)    a report of all letters of credit provided by any Tenant
     in connection with any Lease of any part of each Individual Property,
     including the account numbers of such letters of credit, the names and
     addresses of the financial institutions that issued such letters of credit
     and the names of the Persons to contact at such financial institutions,
     along with any authority or release necessary for Lender to obtain
     information regarding such letters of credit directly from such financial
     institutions.

     (c)     To the extent not inconsistent with the provisions of
Section 5.11(a) hereof (e.g., GAAP accounting and audits shall not be required),
each Borrower and Borrower Principal shall furnish Lender with such other
additional financial or management information (including state and federal tax
returns) as may, from time to time, be reasonably required by Lender in form and
substance satisfactory to Lender (including, without limitation, any financial
reports required to be delivered by any Tenant or any guarantor of any Lease
pursuant to the terms of such Lease), and shall furnish to Lender and its agents
convenient facilities for the examination and audit of any such books and
records.

     (d)     All items requiring the certification of a Borrower shall, except
where the Borrower is an individual, require a certificate executed by the
general partner, managing member or chief executive officer of Borrower, as
applicable (and the same rules shall apply to any sole shareholder, general
partner or managing member which is not an individual).

     (e)     Without limiting any other rights available to Lender under this
Loan Agreement or any of the other Loan Documents, in the event a Borrower shall
fail timely to furnish Lender any financial document or statement in accordance
with Section 5.11, Borrowers shall promptly pay to Lender a non-refundable
charge in the amount of $500 for each such failure after written notice and a
five (5) day cure period. The payment of such amount shall not be construed to
relieve such Borrower of any Event of Default hereunder arising from such
failure.

                                     - 39 -
<Page>

     Section 5.12.   ESTOPPEL STATEMENT

     (a)     After request by Lender, Borrowers shall within ten (10) Business
Days furnish Lender with statements, duly acknowledged and certified, setting
forth (i) the amount of the original principal amount' of the Note, (ii) the
rate of interest on the Note, (iii) the unpaid principal amount of the Note,
(iv) the date installments of interest and/or principal were last paid, (v) any
offsets or defenses to the payment of the Debt, if any, and (vi) that the Note,
this Agreement, the Mortgages and the other Loan Documents are valid, legal and
binding obligations and have not been modified or if modified, giving
particulars of such modification.

     (b)     Borrowers shall use their best efforts to deliver to Lender,
promptly upon request, duly executed estoppel certificates from any one or more
Tenants as required by Lender attesting to such facts regarding the related
Lease as Lender may require, including, but not limited to attestations that
each Lease covered thereby is in full force and effect with no defaults
thereunder on the part of any party, that none of the Rents have been paid more
than one month in advance, except as security, and that the Tenant claims no
defense or offset against the full and timely performance of its obligations
under the Lease.

     Section 5.13.   LEASING MATTERS

     (a)     Each Borrower may enter into a proposed Lease (including the
renewal or extension of an existing Lease (a "RENEWAL LEASE")) without the prior
written consent of Lender, provided such proposed Lease or Renewal Lease (i)
provides for rental rates and terms comparable to existing local market rates
and terms (taking into account the type and quality of the tenant) as of the
date such Lease is executed by Borrower (unless, in the case of a Renewal Lease,
the rent payable during such renewal, or a formula or other method to compute
such rent, is provided for in the original Lease), (ii) is an arm's-length
transaction with a bona fide, independent third party tenant, (iii) does not
have a materially adverse effect on the value of the Individual Property taken
as a whole, (iv) is subject and subordinate to the Mortgage which is a Lien on
the Individual Property and the Tenant thereunder agrees to attorn to Lender,
(v) does not contain any option, offer, right of first refusal, or other similar
right to acquire all or any portion of the Individual Property, (vi) has a base
term of less than fifteen (15) years including options to renew, (vii) has no
rent credits, free rents or concessions granted thereunder, other than
commercially reasonable tenant improvement allowances and commercially
reasonable rent abatements consistent with other comparable leases within the
local market and (viii) is written on the standard form of lease approved by
Lender. All proposed Leases which do not satisfy the requirements set forth in
this subsection shall be subject to the prior approval of Lender and its
counsel, at Borrowers' expense. Borrowers shall promptly deliver to Lender
copies of all Leases which are entered into pursuant to this subsection together
with the certification of the Borrower executing the Lease as landlord that it
has satisfied all of the conditions of this Section.

     (b)     Borrowers (i) shall observe and perform all the obligations imposed
upon the landlord under the Leases and shall not do or permit to be done
anything to impair the value of any of the Leases as security for the Debt; (ii)
shall promptly send copies to Lender of all notices of default which Borrowers
shall send or receive thereunder; (iii) shall enforce all of the material terms,
covenants and conditions contained in the Leases upon the part of the tenant
thereunder to be observed or performed; (iv) shall not collect any of the Rents
more than one (1) month in

                                     - 40 -
<Page>

advance (except security deposits shall not be deemed Rents collected in
advance); (v) shall not execute any other assignment of the landlord's interest
in any of the Leases or the Rents; and (vi) shall not consent to any assignment
of or subletting under any Leases not in accordance with their terms, without
the prior written consent of Lender.

     (c)     Borrowers may, without the prior written consent of Lender, amend,
modify or waive the provisions of any Lease or terminate, reduce Rents under,
accept a surrender of space under, or shorten the term of, any Lease (including
any guaranty, letter of credit or other credit support with respect thereto)
provided that such action (taking into account, in the case of a termination,
reduction in rent, surrender of space or shortening of term, the planned
alternative use of the affected space) does not have a materially adverse effect
on the value of the Individual Property taken as a whole, and provided that such
Lease, as amended, modified or waived, is otherwise in compliance with the
requirements of this Agreement and any subordination agreement binding upon
Lender with respect to such Lease. A termination of a Lease with a tenant who is
in default beyond applicable notice and grace periods shall not be considered an
action which has a materially adverse effect on the value of the Individual
Property taken as a whole. Any amendment, modification, waiver, termination,
rent reduction, space surrender or term shortening which does not satisfy the
requirements set forth in this subsection shall be subject to the prior approval
of Lender and its counsel, at Borrowers' expense. Borrowers shall promptly
deliver to Lender copies of amendments, modifications and waivers which are
entered into pursuant to this subsection together with a certification that it
has satisfied all of the conditions of this subsection.

     (d)     Notwithstanding anything contained herein to the contrary,
Borrowers shall not, without the prior written consent of Lender, enter into,
renew, extend, amend, modify, waive any provisions of, terminate, reduce Rents
under, accept a surrender of space under, or shorten the term of any Major
Lease.

     Section 5.14.   PROPERTY MANAGEMENT

     (a)     Borrowers shall (i) promptly perform and observe all of the
covenants required to be performed and observed by it under the Management
Agreements and do all things necessary to preserve and to keep unimpaired its
material rights thereunder; (ii) promptly notify Lender of any default under a
Management Agreement of which it is aware; (iii) promptly deliver to Lender a
copy of any notice of default or other material notice received by a Borrower
under any Management Agreement; (iv) promptly give notice to Lender of any
notice or information that a Borrower receives which indicates that Manager is
terminating a Management Agreement or that Manager is otherwise discontinuing
its management of the Individual Property; and (v) promptly enforce the
performance and observance of all of the covenants required to be performed and
observed by Manager under each Management Agreement.

     (b)     If at any time, (i) Manager shall become insolvent or a debtor in a
bankruptcy proceeding, (ii) an Event of Default has occurred and is continuing;
or (iii) a default has occurred and is continuing after the expiration of any
applicable cure periods under a Management Agreement, Borrowers shall, at the
request of Lender, terminate the Management Agreement upon thirty (30) days
prior notice to Manager and replace Manager with a Qualified Manager, it

                                     - 41 -
<Page>

being understood and agreed that the management fee for such replacement manager
shall not exceed then prevailing market rates.

     (c)     In addition to the foregoing, in the event that Lender, in Lender's
reasonable discretion, at any time prior to the termination of the Assignments
of Management Agreement, determines that the Properties or any of them are not
being managed in accordance with generally accepted management practices for
projects similarly situated, Lender may deliver written notice thereof to
Borrowers and Manager, which notice shall specify with particularity the grounds
for Lender's determination. If Lender reasonably determines that the conditions
specified in Lender's notice are not remedied to Lender's reasonable
satisfaction by Borrowers or Manager within thirty (30) days from the date of
such notice or that Borrowers or Manager have failed to diligently undertake
correcting such conditions within such thirty (30) day period, Lender may direct
Borrowers to terminate the Management Agreements and to replace Manager with a
Qualified Manager, it being understood and agreed that the management fee for
such replacement manager shall not exceed then prevailing market rates.

     (d)     Borrowers shall not, without the prior written consent of Lender
(which consent shall not be unreasonably withheld, conditioned or delayed): (i)
surrender, terminate or cancel the Management Agreements or any of them or
otherwise replace Manager or enter into any other management agreement with
respect to an Individual Property; (ii) reduce or consent to the reduction of
the term of any Management Agreement; (iii) increase or consent to the increase
of the amount of any charges under a Management Agreement; or (iv) otherwise
modify, change, supplement, alter or amend, or waive or release any of its
rights and remedies under, a Management Agreement in any material respect.

     Section 5.15.   LIENS

     Subject to Borrowers' right to contest a Lien pursuant to the terms of the
Mortgages, Borrowers shall not, without the prior written consent of Lender,
create, incur, assume or suffer to exist any Lien on any portion of any of the
Properties or permit any such action to be taken, except Permitted Encumbrances.

     Section 5.16.   DEBT CANCELLATION

     Borrowers shall not cancel or otherwise forgive or release any claim or
debt (other than termination of Leases in accordance herewith) owed to
Borrowers, or any of them, by any Person, except for adequate consideration and
in the ordinary course of Borrowers' business.

     Section 5.17.   ZONING

     Borrowers shall not initiate or consent to any zoning reclassification of
any portion of any of the Properties or seek any variance under any existing
zoning ordinance or use or permit the use of any portion of any of the
Properties in any manner that could result in such use becoming a non-conforming
use under any zoning ordinance or any other applicable land use law, rule or
regulation, without the prior written consent of Lender.

                                     - 42 -
<Page>

     Section 5.18.   ERISA

     (a)     Borrowers shall not engage in any transaction which would cause any
obligation, or action taken or to be taken, hereunder (or the exercise by Lender
of any of its rights under the Note, this Agreement or the other Loan Documents)
to be a non-exempt (under a statutory or administrative class exemption)
prohibited transaction under ERISA.

     (b)     Borrowers further covenant and agree to deliver to Lender such
certifications or other evidence from time to time throughout the term of the
Loan, as requested by Lender in its sole discretion, that (i) Borrowers are not
and do not maintain an "employee benefit plan" as defined in Section 3(3) of
ERISA, which is subject to Title I of ERISA, or a "governmental plan" within the
meaning of Section 3(3) of ERISA; (ii) Borrowers are not subject to state
statutes regulating investments and fiduciary obligations with respect to
governmental plans; and (iii) one or more of the following circumstances is and
at all times during the term of this Agreement will be true:

                     (A)     Equity interests in Borrowers are publicly offered
             securities, within the meaning of 29 C.F.R.
             Section 2510.3-101(b)(2);

                     (B)     Less than twenty-five percent (25%) of each
             outstanding class of equity interests in each Borrower are held by
             "benefit plan investors" within the meaning of 29 C.F.R.
             Section 2510.3-101(f)(2); or

                     (C)     Borrowers qualify as an "operating company" or a
             "real estate operating company" within the meaning of 29 C.F.R.
             Section 2510.3-101(c) or (e).

     Section 5.19.   NO JOINT ASSESSMENT

     Borrowers shall not suffer, permit or initiate the joint assessment of any
of the Properties with (a) any other real property constituting a tax lot
separate therefrom, or (b) any portion of any of the Properties which may be
deemed to constitute personal property, or any other procedure whereby the Lien
of any taxes which may be levied against such personal property shall be
assessed or levied or charged to any of the Properties.

     Section 5.20.   RECIPROCAL EASEMENT AGREEMENTS

     Borrowers shall not enter into, terminate or modify any REA without
Lender's prior written consent, which consent shall not be unreasonably
withheld, conditioned or delayed. Borrowers shall enforce, comply with, and
cause each of the parties to the REA to comply with all of the material economic
terms and conditions contained in the REA, provided that a Borrower may agree,
without Lender's consent, to modifications to any REA or to grant easements with
respect to an Individual Property, which could not reasonably be expected to
have a material adverse effect on the use, value or operation of such Individual
Property or on Borrowers' ability to perform is obligations under the Loan
Documents.

                                     - 43 -
<Page>

     Section 5.21.   INTEREST RATE CAP AGREEMENT

     (a)     Prior to or contemporaneously with the Closing Date, Borrowers
shall have obtained the Rate Cap, which shall be coterminous with the Loan and
have a notional amount which shall not at any time be less than the outstanding
principal balance of the Loan. The Rate Cap shall be maintained throughout the
term of the Loan with an Acceptable Counterparty. If the provider of the Rate
Cap or any Replacement Rate Cap ceases to be an Acceptable Counterparty,
Borrowers shall obtain a Replacement Rate Cap at Borrowers' sole cost and
expense within ten (10) days of receipt of notice from Lender or Borrowers'
obtaining knowledge that the provider is no longer an Acceptable Counterparty.

     (b)     Borrowers shall collaterally assign to Lender pursuant to the
Collateral Assignment of Interest Rate Cap Agreement all of their right, title
and interest to receive any and all payments under the Rate Cap or any
Replacement Rate Cap (and any related guarantee, if any) and shall deliver to
Lender counterparts of such Collateral Assignment of Interest Rate Cap Agreement
executed by the Borrowers and by the Acceptable Counterparty and notify the
Acceptable Counterparty of such collateral assignment (either in such Rate Cap
or by separate instrument). At such time as the Loan is repaid in full, all of
Lender's right, title and interest in the Rate Cap and any Replacement Rate Cap
shall terminate and Lender shall execute and deliver at Borrowers' sole cost and
expense, such documents as may be required to evidence Lender's release of the
Rate Cap and any Replacement Rate Cap and to notify the Acceptable Counterparty
of such release.

     (c)     Borrowers shall comply with all of their obligations under the
terms and provisions of the Rate Cap and any Replacement Rate Cap. All amounts
paid by the Acceptable Counterparty under the Rate Cap to Borrowers shall be
paid to Lender. Borrower shall take all actions reasonably requested by Lender
to enforce Lender's rights under the Rate Cap and any Replacement Rate Cap in
the event of a default by the Acceptable Counterparty and shall not waive, amend
or otherwise modify any of its rights thereunder.

     (d)     In the event that Borrowers fail to purchase and deliver to Lender
the Rate Cap or any Replacement Rate Cap as and when required hereunder, or fail
to maintain such agreement in accordance with the terms and provisions of this
Agreement, Lender may purchase the Rate Cap or any Replacement Rate Cap, as
applicable, and the cost incurred by Lender in purchasing the Rate Cap or any
Replacement Rate Cap, as applicable, shall be paid by Borrowers to Lender with
interest thereon at the Default Rate from the date such cost was incurred by
Lender until such cost is reimbursed by Borrowers to Lender.

     (e)     In connection with the Rate Cap and any Replacement Rate Cap,
Borrowers shall obtain and deliver to Lender an opinion from counsel (which
counsel may be in house counsel for the Acceptable Counterparty) for the
Acceptable Counterparty (upon which Lender and its successors and assigns may
rely) which shall provide, in relevant part, that:

             (i)     the Acceptable Counterparty is duly organized, validly
     existing, and in good standing under the laws of its jurisdiction of
     incorporation and has the organizational power and authority to execute and
     deliver, and to perform its obligations under, the Rate Cap or the
     Replacement Rate Cap, as applicable;

                                     - 44 -
<Page>

             (ii)    the execution and delivery of the Rate Cap or the
     Replacement Rate Cap, as applicable, by the Acceptable Counterparty, and
     any other agreement which the Acceptable Counterparty has executed and
     delivered pursuant thereto, and the performance of its obligations
     thereunder have been and remain duly authorized by all necessary action and
     do not contravene any provision of its certificate of incorporation or by
     laws (or equivalent organizational documents) or any law, regulation or
     contractual restriction binding on or affecting it or its property;

             (iii)   all consents, authorizations and approvals required for the
     execution and delivery by the Acceptable Counterparty of the Rate Cap or
     the Replacement Rate Cap, as applicable, and any other agreement which the
     Acceptable Counterparty has executed and delivered pursuant thereto, and
     the performance of its obligations thereunder have been obtained and remain
     in full force and effect, all conditions thereof have been duly complied
     with, and no other action by, and no notice to or filing with any
     governmental authority or regulatory body is required for such execution,
     delivery or performance; and

             (iv)    the Rate Cap or the Replacement Rate Cap, as applicable,
     and any other agreement which the Acceptable Counterparty has executed and
     delivered pursuant thereto, has been duly executed and delivered by the
     Acceptable Counterparty and constitutes the legal, valid and binding
     obligation of the Acceptable Counterparty, enforceable against the
     Acceptable Counterparty in accordance with its terms, subject to applicable
     bankruptcy, insolvency and similar laws affecting creditors' rights
     generally, and subject, as to enforceability, to general principles of
     equity (regardless of whether enforcement is sought in a proceeding in
     equity or at law).

     Section 5.22.   GROUND LEASES

     (a)     With respect to each Ground Lease, (a) Borrower shall (i) pay all
rents, additional rents and other sums required to be paid by the tenant
thereunder, (ii) diligently perform and observe all of the terms, covenants and
conditions of each Ground Lease on the part of the tenant to be performed and
observed thereunder, (iii) promptly notify Lender of the giving of any notice by
the landlord under a Ground Lease of any default thereunder and deliver to
Lender a true copy of each such notice within five (5) Business Days of receipt
and (iv) promptly notify Lender of any bankruptcy, reorganization or insolvency
of the landlord under a Ground Lease or of any notice thereof, and deliver to
Lender a true copy of such notice within five (5) Business Days of receipt.
Borrowers shall not, without the prior consent of Lender, surrender the
leasehold estate created by a Ground Lease or terminate or cancel any Ground
Lease or modify, change, supplement, alter or amend any Ground Lease, either
orally or in writing, and if Borrowers shall default in the performance or
observance of any term, covenant or condition of any Ground Lease to be
performed or observed by the tenant thereunder and shall fail to cure such
default prior to the expiration of any applicable cure period provided
thereunder, Lender shall have the right, but shall be under no obligation, to
pay any sums and to perform any act or take any action as may be appropriate to
cause all of the terms, covenants and conditions of such Ground Lease on the
tenant's part to be performed or observed on behalf of Borrowers, to the end
that the rights of Borrowers in, to any under such Ground Lease shall be kept
unimpaired and free from default. If the landlord under a Ground Lease shall
deliver to Lender a copy of any notice of default under such Ground Lease, such
notice shall constitute full protection to Lender

                                     - 45 -
<Page>

for any action taken or omitted to be taken by Lender in good faith in reliance
thereon. Borrowers shall exercise each individual option, if any, to extend or
renew the term of each Ground Lease upon demand by Lender made at any time
within one (1) year prior to the last day upon which such option may be
exercised, and Borrowers hereby expressly authorize and appoint Lender their
attorney-in-fact to exercise any such option in the name of and on behalf of
Borrowers, which power of attorney shall be irrevocable and shall be deemed
coupled with an interest.

     (b)     SUBLEASES. Notwithstanding anything contained in any Ground Lease
to the contrary, Borrowers shall not further sublet any portion of the related
Individual Property (other than as permitted pursuant to Section 5.13 hereof)
without the prior written consent of Lender. Each sublease hereafter made shall
provide that (a) in the event of the termination of the Ground Lease, the
sublease shall not be terminable by the sublessee; (b) in the event of any
action for the foreclosure of the Mortgage with respect to the related
Individual Property, the sublease shall not terminate or be terminable by the
sublessee by reason of the termination of the Ground Lease unless such sublessee
is specifically named and joined in any such action and unless a judgment is
obtained therein against such sublessee; and (c) in the event that the Ground
Lease is terminated as aforesaid, the sublessee shall attorn to Lender or to the
purchaser of the Individual Property in foreclosure, as the case may be. All
subleases of such Individual Property shall be deemed part of the Individual
Property.

                                   ARTICLE 6.
                                ENTITY COVENANTS

     Section 6.1.    SINGLE PURPOSE ENTITY/SEPARATENESS

     Until the Debt has been paid in full, each Borrower represents, warrants
and covenants as follows:

     (a)     Each Borrower has not and will not:

             (i)     engage in any business or activity other than the
     ownership, operation and maintenance of the Individual Property owned by
     such Borrower, and activities incidental thereto;

             (ii)    acquire or own any assets other than (A) the Individual
     Property owned by such Borrower, and (B) such incidental Personal Property
     as may be necessary for the operation of the such Individual Property;

             (iii)   except as expressly provided in Article 7 hereof, merge
     into or consolidate with any Person, or dissolve, terminate, liquidate in
     whole or in part, transfer or otherwise dispose of all or substantially all
     of its assets or change its legal structure;

             (iv)    fail to observe all organizational formalities, or fail to
     preserve its existence as an entity duly organized, validly existing and in
     good standing (if applicable) under the applicable Legal Requirements of
     the jurisdiction of its organization or formation, or amend, modify,
     terminate or fail to comply with the provisions of its organizational
     documents;

                                     - 46 -
<Page>

             (v)     own any subsidiary, or make any investment in, any Person;

             (vi)    commingle its assets with the assets of any other Person or
     permit any Affiliate or constituent party independent access to its bank
     accounts;

             (vii)   incur any debt, secured or unsecured, direct or contingent
     (including guaranteeing any obligation), other than (A) the Debt, (B) trade
     and operational indebtedness incurred in the ordinary course of business
     with trade creditors, provided such indebtedness is (1) unsecured, (2) not
     evidenced by a note, (3) on commercially reasonable terms and conditions,
     and (4) due not more than sixty (60) days past the date incurred and paid
     on or prior to such date, and/or (C) financing leases and purchase money
     indebtedness incurred in the ordinary course of business relating to
     Personal Property on commercially reasonable terms and conditions; provided
     however, the aggregate amount of the indebtedness described in (B) and (C)
     shall not exceed at any time three percent (3%) of the outstanding
     Allocated Loan Amount with respect to such Individual Property;

             (viii)  fail to maintain its records, books of account, bank
     accounts, financial statements, accounting records and other entity
     documents separate and apart from those of any other Person; except that
     each Borrower's financial position, assets, liabilities, net worth and
     operating results may be included in the consolidated financial statements
     of an Affiliate or holder of a beneficial interest in such Borrower,
     provided that such consolidated financial statements contain a footnote
     indicating that such Borrower is a separate legal entity, that it maintains
     separate books and records and the assets of such Borrower are not
     available as collateral to creditors of the holder of a beneficial interest
     in Borrower;

             (ix)    enter into any contract or agreement with any general
     partner, member, shareholder, principal, guarantor of the obligations of or
     the holder of a beneficial interest in Borrower, or any Affiliate of the
     foregoing, except upon terms and conditions that are intrinsically fair,
     commercially reasonable and substantially similar to those that would be
     available on an arm's-length basis with unaffiliated third parties (the
     Management Agreement shall be deemed to comply with this subsection);

             (x)     maintain its assets in such a manner that it will be costly
     or difficult to segregate, ascertain or identify its individual assets from
     those of any other Person;

             (xi)    assume or guaranty the debts of any other Person, hold
     itself out to be responsible for the debts of any other Person, or
     otherwise pledge its assets for the benefit of any other Person or hold out
     its credit as being available to satisfy the obligations of any other
     Person;

             (xii)   make any loans or advances to any Person;

             (xiii)  fail to file its own tax returns or be included on the tax
     returns of any other Person except as required by Applicable Law and to the
     extent not treated as a "disregarded entity" under Applicable Law;

                                     - 47 -
<Page>

             (xiv)   fail either to hold itself out to the public as a legal
     entity separate and distinct from any other Person or to conduct its
     business solely in its own name or fail to correct any known
     misunderstanding regarding its separate identity;

             (xv)    fail to maintain adequate capital for the normal
     obligations reasonably foreseeable in a business of its size and character
     and in light of its contemplated business operations, provided that such
     Borrower's failure to do so solely because of a shortfall in cash flow
     derived from the Individual Property owned by such Borrower shall not, by
     itself, constitute a beach of this covenant;

             (xvi)   without the unanimous written consent of all its partners,
     members or holders of beneficial interests, as applicable, and the written
     consent of 100% of the directors/managers of each SPE Component Entity,
     including, without limitation, each Independent Director, (a) file or
     consent to the filing of any petition, either voluntary or involuntary, to
     take advantage of any Creditors Rights Laws, (b) seek or consent to the
     appointment of a receiver, liquidator or any similar official, (c) take any
     action that might cause such entity to become insolvent or (d) make an
     assignment for the benefit of creditors;

             (xvii)  fail to allocate shared expenses (including, without
     limitation, shared office space and services performed by an employee of an
     Affiliate) among the Persons sharing such expenses and to use separate
     stationery, invoices and checks;

             (xviii) fail to remain solvent or pay its own liabilities
     (including, without limitation, salaries of its own employees) only from
     its own funds, provided that Borrower's failure to do so solely because of
     a shortfall in cash flow from the operation of the Individual Property
     owned by Borrower shall not, by itself, constitute a breach of this
     covenant;

             (xix)   acquire obligations or securities of its partners, members,
     shareholders or other affiliates, as applicable;

             (xx)    violate or cause to be violated the assumptions made with
     respect to Borrower and its principals in any opinion letter pertaining to
     substantive consolidation delivered to Lender in connection with the Loan;
     or

             (xxi)   fail to maintain a sufficient number of employees in light
     of its contemplated business operations.

     (b)     If a Borrower is a partnership or limited liability company, each
general partner in the case of a general partnership, each general partner in
the case of a limited partnership, or the managing member in the case of a
limited liability company (each an "SPE Component Entity") of such Borrower, as
applicable, shall be a corporation whose sole asset is its interest in such
Borrower. Each SPE Component Entity (i) will at all times comply with each of
the covenants, terms and provisions contained in Section 6.1(a)(iii) - (vi) and
(viii) - (xxi), as if such representation, warranty or covenant was made
directly by such SPE Component Entity; (ii) will not engage in any business or
activity other than owning an interest in such Borrower; (iii) will not acquire
or own any assets other than its partnership, membership, or other equity
interest in

                                     - 48 -
<Page>

such Borrower; (iv) will not incur any debt, secured or unsecured, direct or
contingent (including guaranteeing any obligation); and (v) will cause such
Borrower to comply with the provisions of this Section 6.1 and Section 6.4.
Prior to the withdrawal or the disassociation of any SPE Component Entity from a
Borrower, such Borrower shall immediately appoint a new general partner or
managing member whose articles of incorporation are substantially similar to
those of such SPE Component Entity and, if an opinion letter pertaining to
substantive consolidation was required at closing, deliver a new opinion letter
acceptable to Lender and the Rating Agencies with respect to the new SPE
Component Entity and its equity owners. Notwithstanding the foregoing, to the
extent a Borrower is a single member Delaware limited liability company, so long
as Borrower maintains such formation status, no SPE Component Entity shall be
required.

     (c)     In the event a Borrower is a single member Delaware limited
liability company, the limited liability company agreement of such Borrower (the
"LLC AGREEMENT") shall provide that (i) upon the occurrence of any event that
causes the sole member of Borrower ("MEMBER") to cease to be the member of
Borrower (other than (A) upon an assignment by Member of all of its limited
liability company interest in Borrower and the admission of the transferee in
accordance with the Loan Documents and the LLC Agreement, or (B) the resignation
of Member and the admission of an additional member of Borrower in accordance
with the terms of the Loan Documents and the LLC Agreement), the person
executing the LLC Agreement as a "Special Member" (as such term is defined in
the LLC Agreement) ("SPECIAL MEMBER") shall, without any action of any other
Person and simultaneously with the Member ceasing to be the member of Borrower,
automatically be admitted to Borrower and shall continue Borrower without
dissolution and (ii) Special Member may not resign from Borrower or transfer its
rights as Special Member unless a successor Special Member has been admitted to
Borrower as Special Member in accordance with requirements of Delaware law. The
LLC Agreement shall further provide that (i) Special Member shall automatically
cease to be a member of Borrower upon the admission to Borrower of a substitute
Member, (ii) Special Member shall be a member of Borrower that has no interest
in the profits, losses and capital of Borrower and has no right to receive any
distributions of Borrower assets, (iii) pursuant to Section 18-301 of the
Delaware Limited Liability Company Act (the "ACT"), Special Member shall not be
required to make any capital contributions to Borrower and shall not receive a
limited liability company interest in Borrower, (iv) Special Member, in its
capacity as Special Member, may not bind Borrower and (v) except as required by
any mandatory provision of the Act, Special Member, in its capacity as Special
Member, shall have no right to vote on, approve or otherwise consent to any
action by, or matter relating to, Borrower, including, without limitation, the
merger, consolidation or conversion of Borrower; provided, however, such
prohibition shall not limit the obligations of Special Member, in its capacity
as Independent Director, to vote on such matters required by the Loan Documents
or the LLC Agreement. In order to implement the admission to Borrower of Special
Member, Special Member shall execute a counterpart to the LLC Agreement. Prior
to its admission to Borrower as Special Member, Special Member shall not be a
member of Borrower.

     Upon the occurrence of any event that causes the Member to cease to be a
member of Borrower, to the fullest extent permitted by law, the personal
representative of Member shall, within ninety (90) days after the occurrence of
the event that terminated the continued membership of Member in Borrower, agree
in writing (i) to continue Borrower and (ii) to the admission of the personal
representative or its nominee or designee, as the case may be, as a substitute
member of Borrower, effective as of the occurrence of the event that terminated
the

                                     - 49 -
<Page>

continued membership of Member of Borrower in Borrower. Any action initiated by
or brought against Member or Special Member under any Creditors Rights Laws
shall not cause Member or Special Member to cease to be a member of Borrower and
upon the occurrence of such an event, the business of Borrower shall continue
without dissolution. The LLC Agreement shall provide that each of Member and
Special Member waives any right it might have to agree in writing to dissolve
Borrower upon the occurrence of any action initiated by or brought against
Member or Special Member under any Creditors Rights Laws, or the occurrence of
an event that causes Member or Special Member to cease to be a member of
Borrower.

     Section 6.2.    CHANGE OF NAME, IDENTITY OR STRUCTURE

     Borrowers shall not change or permit to be changed (a) Borrowers' names,
(b) Borrowers' identities (including its trade name or names), (c) Borrowers'
principal place of business set forth on the first page of this Agreement, (d)
the corporate, partnership or other organizational structure of any Borrower,
each SPE Component Entity (if any), or Borrower Principal, (e) Borrowers' state
of organization, or (f) Borrower's organizational identification number, without
in each case notifying Lender of such change in writing at least thirty (30)
days prior to the effective date of such change and, in the case of a change in
a Borrower's structure, without first obtaining the prior written consent of
Lender. In addition, Borrowers shall not change or permit to be changed any
organizational documents of Borrowers or any SPE Component Entity (if any) if
such change would adversely impact the covenants set forth in Section 6.1 and
Section 6.4 hereof. Borrowers authorize Lender to file any financing statement
or financing statement amendment required by Lender to establish or maintain the
validity, perfection and priority of the security interest granted herein. At
the request of Lender, Borrowers shall execute certificates in form satisfactory
to Lender listing the trade names under which Borrowers intend to operate the
Properties, and representing and warranting that Borrowers do business under no
other trade name with respect to the Properties. If a Borrower does not now have
an organizational identification number and later obtains one, or if the
organizational identification number assigned to Borrower subsequently changes,
such Borrower shall promptly notify Lender of such organizational identification
number or change. Nothing in this Section 6.2 shall be deemed to restrict any
express rights granted to Borrowers under Article 7 hereof.

     Section 6.3.    BUSINESS AND OPERATIONS

     Each Borrower will qualify to do business and will remain in good standing
under the laws of the State as and to the extent the same are required for the
ownership, maintenance, management and operation of the Individual Property
owned by such Borrower.

     Section 6.4.    INDEPENDENT DIRECTOR

     (a)     The organizational documents of each Borrower and of each SPE
Component Entity (if any) shall provide that at all times there shall be, and
each such Borrower shall cause there to be, at least one, or if requested by
Lender upon request or advisement of the Rating Agencies, two duly appointed
managers (each an "INDEPENDENT DIRECTOR") of Borrower and such SPE Component
Entity reasonably satisfactory to Lender each of whom is not at the time of such
individual's initial appointment, and shall not have been at any time during the
preceding

                                     - 50 -
<Page>

five (5) years, and shall not be at any time while serving as a manager of such
Borrower, either (i) a shareholder (or other equity owner) of, or an officer,
director, partner, manager, member (other than as a Special Member in the case
of single member Delaware limited liability companies), employee, attorney or
counsel of, such Borrower or any of their respective shareholders, partners,
members, subsidiaries or Affiliates; (ii) a customer or creditor of, or supplier
to, such Borrower or any of its respective shareholders, partners, members,
subsidiaries or Affiliates who derives any of its purchases or revenue from its
activities with such Borrower or any Affiliate of any of them; (iii) a Person
who Controls or is under common Control with any such shareholder, officer,
director, partner, manager, member, employee, supplier, creditor or customer; or
(iv) a member of the immediate family of any such shareholder, officer,
director, partner, manager, member, employee, supplier, creditor or customer.
Lender acknowledges that the Borrowers may have the same Independent Director,
provided that such Independent Director has been appointed by an independent
third-party corporate service and otherwise satisfies the criteria set forth in
this Section 6.4(a).

     (b)     The organizational documents of each Borrower shall provide that
the managers of such Borrower shall not take any action which, under the terms
of any certificate of incorporation, by-laws or any voting trust agreement with
respect to any common stock, requires an unanimous vote of the managers of such
Borrower unless at the time of such action there shall be at least two managers
who are Independent Directors. No Borrower which is a limited liability company
will, without the unanimous written consent of its managers including each
Independent Director, on behalf of itself or such Borrower, (i) file or consent
to the filing of any petition, either voluntary or involuntary, to take
advantage of any applicable Creditors Rights Laws; (ii) seek or consent to the
appointment of a receiver, liquidator or any similar official; (iii) take any
action that might cause such entity to become insolvent; or (iv) make an
assignment for the benefit of creditors.

                                   ARTICLE 7.
                             NO SALE OR ENCUMBRANCE

     Section 7.1.    TRANSFER DEFINITIONS

     For purposes of this Article 7 an "AFFILIATED MANAGER" shall mean any
managing agent in which a Borrower, Borrower Principal, any SPE Component Entity
(if any) or any affiliate of such entities has, directly or indirectly, any
legal, beneficial or economic interest; "CONTROL" shall mean the power to direct
the management and policies of a Restricted Party, directly or indirectly,
whether through the ownership of voting securities or other beneficial
interests, by contract or otherwise; "RESTRICTED PARTY" shall mean a Borrower,
Borrower Principal, any SPE Component Entity (if any), any Affiliated Manager,
or any shareholder, partner, member or non-member manager, or any direct or
indirect legal or beneficial owner of a Borrower, Borrower Principal, any SPE
Component Entity (if any), any Affiliated Manager or any non-member manager; and
a "SALE OR PLEDGE" shall mean a voluntary or involuntary sale, conveyance,
mortgage, grant, bargain, encumbrance, pledge, assignment, grant of any options
with respect to, or any other transfer or disposition of (directly or
indirectly, voluntarily or involuntarily, by operation of law or otherwise, and
whether or not for consideration or of record) of a legal or beneficial
interest.

                                     - 51 -
<Page>

     Section 7.2.    NO SALE/ENCUMBRANCE

     (a)     Except as provided in Section 2.4(a)(ii) hereof, Borrowers shall
not cause or permit a Sale or Pledge of any of the Properties or any part
thereof or any legal or beneficial interest therein nor permit a Sale or Pledge
of an interest in any Restricted Party (in each case, a "PROHIBITED TRANSFER"),
other than pursuant to Leases of space in the Improvements to Tenants in
accordance with the provisions of Section 5.13, without the prior written
consent of Lender.

     (b)     A Prohibited Transfer shall include, but not be limited to, (i) an
installment sales agreement wherein a Borrower agrees to sell the Individual
Property owned by it or any part thereof for a price to be paid in installments;
(ii) an agreement by a Borrower leasing all or a substantial part of the
Individual Property owned by it for other than actual occupancy by a space
tenant thereunder or a sale, assignment or other transfer of, or the grant of a
security interest in, such Borrower's right, title and interest in and to any
Leases or any Rents; (iii) if a Restricted Party is a corporation, any merger,
consolidation or Sale or Pledge of such corporation's stock or the creation or
issuance of new stock in one or a series of transactions; (iv) if a Restricted
Party is a limited or general partnership or joint venture, any merger or
consolidation or the change, removal, resignation or addition of a general
partner or the Sale or Pledge of the partnership interest of any general or
limited partner or any profits or proceeds relating to such partnership
interests or the creation or issuance of new partnership interests; (v) if a
Restricted Party is a limited liability company, any merger or consolidation or
the change, removal, resignation or addition of a managing member or non-member
manager (or if no managing member, any member) or the Sale or Pledge of the
membership interest of any member or any profits or proceeds relating to such
membership interest; (vi) if a Restricted Party is a trust or nominee trust, any
merger, consolidation or the Sale or Pledge of the legal or beneficial interest
in a Restricted Party or the creation or issuance of new legal or beneficial
interests; (vii) the removal or the resignation of Manager (including, without
limitation, an Affiliated Manager) other than in accordance with Section 5.14 or
(viii) if a Borrower is a Delaware statutory trust, any partition of interests,
under the Trust Agreement of such Borrower.

     Section 7.3.    PERMITTED TRANSFERS

     Notwithstanding the provisions of Section 7.2, the following transfers
shall not be deemed to be a Prohibited Transfer: (a) a transfer by devise or
descent or by operation of law upon the death of a member, partner or
shareholder of a Restricted Party; (b) the Sale or Pledge, in one or a series of
transactions, of not more than forty-nine percent (49%) of the stock, limited
partnership interests or non-managing membership interests (as the case may be)
in a Restricted Party; (c) the transfer of shares in publicly traded Restricted
Parties in any amounts, even in excess of forty-nine percent (49%); (d) the
transfer of shares in the sole member of a Borrower, if such Borrower is a
limited liability company, even in excess of forty-nine percent (49%); (e) if a
Borrower is a Delaware Statutory Trust, the transfer of the beneficial interest
therein by Inland Western Retail Real Estate Trust, Inc., a Maryland corporation
to any of the entities referred to in (f) below, or (f) if such Borrower is a
limited liability company, the merger of such Borrower's sole member with, its
acquisition by, or its acquisition of, any of the following entities: Inland
Retail Real Estate Trust, Inc., a Maryland corporation, Inland Real Estate
Corporation, a Maryland corporation, Inland Real Estate Investment Corporation,
a Delaware corporation, Inland America Real Estate Trust, Inc., a Maryland
corporation, any other real estate investment

                                     - 52 -
<Page>

trust sponsored by Inland Real Estate Investment Corporation, or any other
entity composed entirely of any of the foregoing, by merger or other business
combination; provided no such transfers shall result in a change in Control in a
Restricted Party or a change in Control of an Individual Property (except that a
transfer to any of the entities named or described in (e) above shall not be
deemed such a change in Control in a Restricted Party or change in Control of an
Individual Property provided the acquiring entity has a net worth equal to or
greater than the net worth of the Inland Western Retail Real Estate Trust, Inc.
as of the Closing Date), and as a condition to each such transfer, Lender shall
receive not less than thirty (30) days prior written notice of such proposed
transfer.

     Section 7.4.    LENDER'S RIGHTS

     Lender reserves the right to condition the consent to a Prohibited Transfer
requested hereunder upon (a) a modification of the terms hereof and an
assumption of the Note and the other Loan Documents as so modified by the
proposed Prohibited Transfer, (b) receipt of payment of a transfer fee equal to
one percent (1%) of the outstanding principal balance of the Loan and all of
Lender's expenses incurred in connection with such Prohibited Transfer, (c)
receipt of written confirmation from the Rating Agencies that the Prohibited
Transfer will not result in a downgrade, withdrawal or qualification of the
initial, or if higher, then current ratings issued in connection with a
Securitization, or if a Securitization has not occurred, any ratings to be
assigned in connection with a Securitization, (d) the proposed transferee's
continued compliance with the covenants set forth in this Agreement (including,
without limitation, the covenants in Article 6) and the other Loan Documents,
(e) a new manager for the Properties and a new management agreement for the
Properties satisfactory to Lender, and (f) the satisfaction of such other
conditions and/or legal opinions as Lender shall determine in its sole
discretion to be in the interest of Lender. All expenses incurred by Lender
shall be payable by Borrowers whether or not Lender consents to the Prohibited
Transfer. Lender shall not be required to demonstrate any actual impairment of
its security or any increased risk of default hereunder in order to declare the
Debt immediately due and payable upon a Prohibited Transfer made without
Lender's consent. This provision shall apply to each and every Prohibited
Transfer, whether or not Lender has consented to any previous Prohibited
Transfer. Notwithstanding anything to the contrary contained in this Section
7.4, in the event a substantive non-consolidation opinion was delivered to
Lender and the Rating Agencies in connection with the closing of the Loan, and
if any Sale or Pledge permitted under this Article 7 results in any Person and
its Affiliates owning in excess of forty-nine percent (49%) of the ownership
interests in a Restricted Party, Borrowers shall, prior to such transfer, and in
addition to any other requirement for Lender consent contained herein, deliver a
revised substantive non-consolidation opinion to Lender reflecting such
Prohibited Transfer, which opinion shall be in form, scope and substance
acceptable in all respects to Lender and the Rating Agencies, In no event shall
Lender consent to a Prohibited Transfer of less than all the Properties.

     Section 7.5.    ASSUMPTION

     Notwithstanding the foregoing provisions of this Article 7, following the
date which is six (6) months from the Closing Date, Lender shall not
unreasonably withhold consent to a transfer of all (but not less than all) of
the Properties to, and the related assumption of the Loan

                                     - 53 -
<Page>

by, any Person (a "TRANSFEREE") provided that each of the following terms and
conditions are satisfied:

     (a)     no Default or Event of Default has occurred;

     (b)     Borrowers shall have (i) delivered written notice to Lender of the
terms of such prospective transfers not less than sixty (60) days before the
date on which such transfers are scheduled to close and, concurrently therewith,
all such information concerning the proposed Transferee as Lender shall
reasonably require and (ii) paid to Lender a non-refundable processing fee in
the amount of $25,000. Lender shall have the right to approve or disapprove the
proposed transfers based on its then current underwriting and credit
requirements for similar loans secured by similar properties which loans are
sold in the secondary market, such approval not to be unreasonably withheld. In
determining whether to give or withhold its approval of the proposed transfer,
Lender shall consider the experience and track record of Transferee and its
principals in owning and operating facilities similar to the Properties, the
financial strength of Transferee and its principals, the general business
standing of Transferee and its principals and Transferee's and its principals'
relationships and experience with contractors, vendors, tenants, lenders and
other business entities; provided, however, that, notwithstanding Lender's
agreement to consider the foregoing factors in determining whether to give or
withhold such approval, such approval shall be given or withheld based on what
Lender determines to be commercially reasonable and, if given, may be given
subject to such conditions as Lender may deem reasonably appropriate;

     (c)     Borrowers shall have paid to Lender, concurrently with the closing
of such Transfer, (i) a non-refundable assumption fee in an amount equal to one
percent (1.0%) of the then outstanding principal balance of the Note and (ii)
all out-of-pocket costs and expenses, including reasonable attorneys' fees,
incurred by Lender in connection with the transfer;

     (d)     Transferee assumes and agrees to pay the Debt as and when due
subject to the provisions of Article 15 hereof and, prior to or concurrently
with the closing of such transfer, Transferee and its constituent partners,
members or shareholders as Lender may require, shall execute, without any cost
or expense to Lender, such documents and agreements as Lender shall reasonably
require to evidence and effectuate said assumption;

     (e)     Borrowers and Transferee, without any cost to Lender, shall furnish
any information requested by Lender for the preparation of, and shall authorize
Lender to file, new financing statements and financing statement amendments and
other documents to the fullest extent permitted by applicable law, and shall
execute any additional documents reasonably requested by Lender;

     (f)     Borrowers shall have delivered to Lender, without any cost or
expense to Lender, such endorsements to Lender's Title Insurance Policies
insuring that fee simple or leasehold title to the Properties, as applicable, is
vested in Transferee (subject to Permitted Encumbrances), hazard insurance
endorsements or certificates and other similar materials as Lender may deem
necessary at the time of the transfer, all in form and substance satisfactory to
Lender;

                                     - 54 -
<Page>

     (g)     Transferee shall have furnished to Lender, if Transferee is a
corporation, partnership, limited liability company or other entity, all
appropriate papers evidencing Transferee's organization and good standing, and
the qualification of the signers to execute the assumption of the Debt, which
papers shall include certified copies of all documents relating to the
organization and formation of Transferee and of the entities, if any, which are
partners or members of Transferee. Transferee and such constituent partners,
members or shareholders of Transferee (as the case may be), as Lender shall
require, shall comply with the covenants set forth in Article 6 hereof;

     (h)     Transferee shall assume the obligations of Borrowers under the
Management Agreements or provide new management agreements with a new manager
which meets with the requirements of Section 5.14 hereof and assign to Lender as
additional security such new management agreements;

     (i)     Transferee shall furnish an opinion of counsel satisfactory to
Lender and its counsel (A) that Transferee's formation documents provide for the
matters described in subparagraph (g) above, (B) that the assumption of the Debt
has been duly authorized, executed and delivered, and that the Note, the
Mortgages, this Agreement, the assumption agreement and the other Loan Documents
are valid, binding and enforceable against Transferee in accordance with their
terms, (C) that Transferee and any entity which is a controlling stockholder,
member or general partner of Transferee, have been duly organized, and are in
existence and good standing, and (E) with respect to such other matters as
Lender may reasonably request;

     (j)     if required by Lender, Lender shall have received confirmation in
writing from the Rating Agencies that rate the Securities to the effect that the
transfer will not result in a qualification, downgrade or withdrawal of any
rating initially assigned or to be assigned to the Securities;

     (k)     Borrowers' obligations under the contract of sale pursuant to which
the transfer is proposed to occur shall expressly be subject to the satisfaction
of the terms and conditions of this Section 7.5; and

     (l)     Transferee shall, prior to such transfer, deliver a substantive
non-consolidation opinion to Lender, which opinion shall be in form, scope and
substance acceptable in all respects to Lender and the Rating Agencies.

A consent by Lender with respect to a transfer of the Properties to, and the
related assumption of the Loan by, a Transferee pursuant to this Section 7.5
shall not be construed to be a waiver of the right of Lender to consent to any
subsequent transfer of the Properties.

     Section 7.6.    ASSUMPTION BY INLAND PERMITTED TRANSFEREE

     Notwithstanding the foregoing provisions of Article 7, Borrowers shall be
permitted to transfer an Individual Property or all of the Properties to an
Inland Permitted Transferee, provided the Loan is simultaneously assumed by an
Inland Permitted Transferee, such transfer shall release the Borrower or
Borrowers owning the Individual Property or Properties being transferred of its
or their obligations under the Loan, and provided further that each of the
following terms and conditions is satisfied:

                                     - 55 -
<Page>

     (a)     No Default or Event of Default has occurred;

     (b)     Borrower or Borrowers, as applicable, shall have delivered written
notice to Lender of the terms of such prospective transfer or transfers not less
than forth-five (45) days before the date on which such transfer or transfers
are scheduled to close and, concurrently with such written notice, all
information concerning the proposed Transferee as Lender shall reasonably
require;

     (c)     Borrower or Borrowers, as applicable, shall have paid to Lender all
out-of-pocket costs and expenses, including reasonable attorneys' fees, incurred
by Lender in connection with the transfer or transfers;

     (d)     Such Inland Permitted Transferee assumes and agrees to pay the Debt
as and when due subject to the provisions of Article 15 hereof and, prior to or
concurrently with the closing of such transfer or transfers, members or
shareholders as Lender may require shall execute, without any cost or expense to
Lender, such documents and agreements as Lender shall reasonably require to
evidence and effectuate said assumption;

     (e)     Borrower or Borrowers, as applicable, and such Inland Permitted
Transferee, without any cost to Lender, shall furnish any information requested
by Lender for the preparation of, and shall authorize the Lender to file, new
financing statements and financing statement amendments and other documents to
the fullest extent permitted by applicable law, and shall execute any additional
documents reasonably requested by Lender;

     (f)     Borrower or Borrowers, as applicable, shall have delivered to
Lender, without any cost or expense to Lender, such endorsements to Lender's
Title Insurance Policy or Policies insuring that fee simple title to the
Individual Property or Properties is vested in such Inland Permitted Transferee
(subject to Permitted Encumbrances), hazard insurance endorsements or
certificates and other similar materials as Lender may deem necessary at the
time of the transfer or transfers, all in form and substance satisfactory to
Lender;

     (g)     such Inland Permitted Transferee shall have furnished to Lender, if
such Inland Permitted Transferee is a corporation, partnership, limited
liability company or other entity, all appropriate papers evidencing
Transferee's organization and good standing, and the qualification of the
signers to execute the assumption of the Debt, which papers shall include
certified copies of all documents relating to the organization and formation of
Transferee and of the entities, if any, which are shareholders, partners or
members of Transferee. Transferee and such constituent shareholders, partners or
members (as the case may be), as Lender shall require, shall comply with the
covenants set forth in Article 6 hereof, provided, however, that (i) if such
Inland Permitted Transferee is a limited partnership or a limited liability
company (with more than one member), Lender may require that the general partner
or managing member of such Inland Permitted Transferee also comply with the
covenants set forth in Article 6 hereof, as modified to state that such general
partner or managing member holds an interest in the Inland Permitted Transferee
rather than an interest in the Individual Property or Properties or (ii) if such
Inland Permitted Transferee is a single member limited liability company, the
state of organization of such entity must be Delaware and the organizational
documents must provide for a springing member upon the bankruptcy or dissolution
of the sole member;

                                     - 56 -
<Page>

     (h)     Such Inland Permitted Transferee shall assume the obligations of
Borrower or Borrowers, as applicable, under any Management Agreement or provide
a new management agreement with a new manager which meets the requirements of
Section 5.14 hereof and assign to Lender as additional security such new
management agreement;

     (i)     Such Inland Permitted Transferee shall furnish an opinion of
counsel satisfactory to Lender and its counsel (A) that Transferee's formation
documents provide for the matters described in subparagraph (g) above, (B) that
the assumption of the Debt has been duly authorized, executed and delivered, and
that the Note, the Mortgage or Mortgages, as applicable, the assumption
agreement and the other Loan Documents are valid, binding and enforceable
against Transferee in accordance with their terms, (C) that Transferee and any
entity which is a controlling stockholder, member or general partner of
Transferee has been duly organized and is in existence and in good standing and
(D) with respect to such other matters as Lender may reasonably request,
including, without limitation, customary single member limited liability company
opinions if such Inland Permitted Transferee is a Delaware limited liability
company; and

     (j)     Inland Permitted Transferee shall, prior to any such transfer,
deliver a substantive non-consolidation opinion to Lender, in form, scope and
substance acceptable in all respects to Lender and the Rating Agencies.

     A consent by Lender with respect to a transfer of an Individual Property or
Properties to, and the related assumption of the Loan by, an Inland Permitted
Transferee pursuant to this Section 7.6 shall not be construed to be a waiver of
the right of Lender to consent to any subsequent Sale or Pledge thereof.

                                   ARTICLE 8.
                 INSURANCE; CASUALTY; CONDEMNATION; RESTORATION

     Section 8.1.    INSURANCE

     (a)     Borrowers shall obtain and maintain, or cause to be maintained, at
all times insurance for Borrowers and each Individual Property providing at
least the following coverages:

             (i)     comprehensive "all risk" insurance on the Improvements and
     the Personal Property, in each case (A) in an amount equal to one hundred
     percent (100%) of the "Full Replacement Cost," which for purposes of this
     Agreement shall mean actual replacement value (exclusive of costs of
     excavations, foundations, underground utilities and footings) with a waiver
     of depreciation; (B) containing an agreed amount endorsement with respect
     to the Improvements and Personal Property waiving all co-insurance
     provisions; (C) providing for no deductible in excess of $25,000 for all
     such insurance coverage; and (D) if any of the Improvements or the use of
     an Individual Property shall at any time constitute legal non-conforming
     structures or uses, providing coverage for contingent liability from
     Operation of Building Laws, Demolition Costs and Increased Cost of
     Construction Endorsements and containing an "Ordinance or Law Coverage" or
     "Enforcement" endorsement. In addition, Borrowers shall obtain: (y) if any
     portion of the Improvements is currently or at any time in the future
     located in a "special flood

                                     - 57 -
<Page>

     hazard area" designated by the Federal Emergency Management Agency, flood
     hazard insurance in an amount equal to the maximum amount of such insurance
     available under the National Flood Insurance Act of 1968, the Flood
     Disaster Protection Act of 1973 or the National Flood Insurance Reform Act
     of 1994, as each may be amended; and (z) earthquake insurance in amounts
     and in form and substance reasonably satisfactory to Lender in the event an
     Individual Property is located in an area with a high degree of seismic
     risk, provided that the insurance pursuant to clauses (y) and (z) hereof
     shall be on terms consistent with the comprehensive all risk insurance
     policy required under this subsection (i);

             (ii)    Commercial General Liability insurance against claims for
     personal injury, bodily injury, death or property damage occurring upon, in
     or about any of the Individual Properties, with such insurance (A) to be on
     the so-called "occurrence" form with a general aggregate limit of not less
     than $2,000,000 and a per occurrence limit of not less than $1,000,000; (B)
     to continue at not less than the aforesaid limit until required to be
     changed by Lender in writing by reason of changed economic conditions
     making such protection inadequate; and (C) to cover at least the following
     hazards: (1) premises and operations; (2) products and completed
     operations; (3) independent contractors; (4) blanket contractual liability;
     and (5) contractual liability covering the indemnities contained in Article
     12 and Article 14 hereof to the extent the same is available;

             (iii)   loss of rents insurance or business income insurance, as
     applicable, (A) with loss payable to Lender; (B) covering all risks
     required to be covered by the insurance provided for in subsection (i)
     above; and (C) which provides that after the physical loss to the
     Improvements and Personal Property occurs, the loss of rents or income, as
     applicable, will be insured until completion of Restoration or the
     expiration of twelve (12) months, whichever first occurs, and
     notwithstanding that the policy may expire prior to the end of such period;
     and (D) which contains an extended period of indemnity endorsement which
     provides that after the physical loss to the Improvements and Personal
     Property has been repaired, the continued loss of income will be insured
     until such income either returns to the same level it was at prior to the
     loss, or the expiration of twelve (12) months from the date that any
     Individual Property is repaired or replaced and operations are resumed,
     whichever first occurs, and notwithstanding that the policy may expire
     prior to the end of such period. The amount of such loss of rents or
     business income insurance, as applicable, shall be determined prior to the
     date hereof and at least once each year thereafter based on Borrowers'
     reasonable estimate of the gross income from each Individual Property for
     the succeeding period of coverage required above. All proceeds payable to
     Lender pursuant to this subsection shall be held by Lender and shall be
     applied to the obligations secured by the Loan Documents from time to time
     due and payable hereunder and under the Note; provided, however, that
     nothing herein contained shall be deemed to relieve Borrower of its
     obligations to pay the obligations secured by the Loan Documents on the
     respective dates of payment provided for in the Note, this Agreement and
     the other Loan Documents except to the extent such amounts are actually
     paid out of the proceeds of such loss of rents or business income
     insurance, as applicable;

                                     - 58 -
<Page>

             (iv)    at all times during which structural construction, repairs
     or alterations are being made with respect to the Improvements, and only if
     each Individual Property coverage form does not otherwise apply, (A)
     owner's contingent or protective liability insurance covering claims not
     covered by or under the terms or provisions of the above mentioned
     commercial general liability insurance policy; and (B) the insurance
     provided for in subsection (i) above written in a so-called Builder's Risk
     Completed Value form (1) on a non-reporting basis, (2) against "all risks"
     insured against pursuant to subsection (i) above, (3) including permission
     to occupy each Individual Property, and (4) with an agreed amount
     endorsement waiving co-insurance provisions;

             (v)     workers' compensation, subject to the statutory limits of
     the State, and employer's liability insurance in respect of any work or
     operations on or about any Individual Property, or in connection with such
     Individual Property or its operation (if applicable);

             (vi)    comprehensive boiler and machinery insurance, if
     applicable, in amounts as shall be reasonably required by Lender on terms
     consistent with the commercial property insurance policy required under
     subsection (i) above;

             (vii)   excess liability insurance in an amount not less than
     $75,000,000 per occurrence on terms consistent with the commercial general
     liability insurance required under subsection (ii) above; and

             (viii)  upon sixty (60) days' written notice, such other reasonable
     insurance and in such reasonable amounts as Lender from time to time may
     reasonably request against such other insurable hazards which at the time
     are commonly insured against for property similar to any Individual
     Property located in or around the regions in which such Individual Property
     is located.

     With respect to the Policies required to be maintained pursuant to clauses
(i) through (viii) above, Borrower shall use commercially reasonable efforts,
consistent with those prudent owners of institutional quality commercial real
estate, to maintain insurance coverage against Losses resulting from acts of
terrorism.

     (b)     All insurance provided for in Section 8.1(a) shall be obtained
under valid and enforceable policies (collectively, the "POLICIES" or in the
singular, the "POLICY"), and shall be subject to the approval of Lender as to
insurance companies, amounts, deductibles, loss payees and insureds. The
Policies shall be issued by financially sound and responsible insurance
companies authorized to do business in the State and having a claims paying
ability rating of "A" or better by S&P (or such other ratings approved by
Lender) and/or a general policy rating of "A" or better and a financial class of
VIII or better by A.M. Best Company, Inc. The Policies described in Section
8.1(a) shall designate Lender and its successors and assigns as additional
insureds, mortgagees and/or loss payee as deemed appropriate by Lender. To the
extent such Policies are not available as of the Closing Date, Borrowers shall
deliver certified copies of all Policies to Lender not later than thirty (30)
days after the Closing Date. Not less than ten (10) days prior to the expiration
dates of the Policies theretofore furnished to Lender, renewal Policies

                                     - 59 -
<Page>

accompanied by evidence satisfactory to Lender of payment of the premiums due
thereunder (the "INSURANCE PREMIUMS") shall be delivered by Borrowers to Lender.

     (c)     Any blanket insurance Policy shall specifically allocate to each
Individual Property the amount of coverage from time to time required hereunder
and shall otherwise provide the same protection as would a separate Policy
insuring only such Individual Property in compliance with the provisions of
Section 8.1(a).

     (d)     All Policies provided for or contemplated by Section 8.1(a),
except for the Policy referenced in Section 8.1(a)(v), shall name the Borrower
owning the Individual Property as the insured and Lender as the additional
insured, as its interests may appear, and in the case of property damage, boiler
and machinery, flood and earthquake insurance, shall contain a so-called New
York standard non-contributing mortgagee clause in favor of Lender providing
that the loss thereunder shall be payable to Lender.

     (e)     All Policies provided for in Section 8.1(a) shall contain clauses
or endorsements to the effect that:

             (i)     no act or negligence of a Borrower, or anyone acting for a
     Borrower, or of any Tenant or other occupant, or failure to comply with the
     provisions of any Policy, which might otherwise result in a forfeiture of
     the insurance or any part thereof, shall in any way affect the validity or
     enforceability of the insurance insofar as Lender is concerned;

             (ii)    the Policies shall not be materially changed (other than to
     increase the coverage provided thereby) or canceled without at least thirty
     (30) days' prior written notice to Lender and any other party named therein
     as an additional insured;

             (iii)   the issuers thereof shall give written notice to Lender if
     the Policies have not been renewed thirty (30) days prior to its
     expiration; and

             (iv)    Lender shall not be liable for any Insurance Premiums
     thereon or subject to any assessments thereunder.

     (f)     If at any time Lender is not in receipt of written evidence that
all insurance required hereunder is in full force and effect, Lender shall have
the right, without notice to Borrowers, to take such action as Lender deems
necessary to protect its interest in the Property, including, without
limitation, obtaining such insurance coverage as Lender in its sole discretion
deems appropriate. All premiums incurred by Lender in connection with such
action or in obtaining such insurance and keeping it in effect shall be paid by
Borrowers to Lender upon demand and, until paid, shall be secured by the
Mortgages and shall bear interest at the Default Rate.

     Section 8.2.    CASUALTY

     If any Individual Property shall be damaged or destroyed, in whole or in
part, by fire or other casualty (a "CASUALTY"), the Borrower owning such
Individual Property shall give prompt notice of such damage to Lender and shall
promptly commence and diligently prosecute the

                                     - 60 -
<Page>

Restoration of such Individual Property in accordance with Section 8.4, whether
or not Lender makes any Net Proceeds available pursuant to Section 8.4. Such
Borrower shall pay all costs of such Restoration whether or not such costs are
covered by insurance. Lender may, but shall not be obligated to, make proof of
loss if not made promptly by such Borrower. Such Borrower shall adjust all
claims for Insurance Proceeds in consultation with, and with the approval of,
Lender; provided, however, if an Event of Default has occurred and is
continuing, Lender shall have the exclusive right to participate in the
adjustment of all claims for Insurance Proceeds.

     Section 8.3.    CONDEMNATION

     Borrowers shall promptly give Lender notice of the actual or threatened
commencement of any proceeding for the Condemnation of an Individual Property of
which Borrowers have knowledge and shall deliver to Lender copies of any and all
papers served in connection with such proceedings. Lender may participate in any
such proceedings, and Borrowers shall from time to time deliver to Lender all
instruments requested by it to permit such participation. Borrowers shall, at
their expense, diligently prosecute any such proceedings, and shall consult with
Lender, its attorneys and experts, and cooperate with them in the carrying on or
defense of any such proceedings. Notwithstanding any taking by any public or
quasi-public authority through Condemnation or otherwise (including but not
limited to any transfer made in lieu of or in anticipation of the exercise of
such taking), Borrowers shall continue to pay the Debt at the time and in the
manner provided for its payment in the Note and in this Agreement and the Debt
shall not be reduced until any Award shall have been actually received and
applied by Lender, after the deduction of expenses of collection, to the
reduction or discharge of the Debt. Lender shall not be limited to the interest
paid on the Award by the condemning authority but shall be entitled to receive
out of the Award interest at the rate or rates provided herein or in the Note.
If any Individual Property or any portion thereof is taken by a condemning
authority, the Borrower owning the affected Individual Property shall promptly
commence and diligently prosecute the Restoration of the Property and otherwise
comply with the provisions of Section 8.4, whether or not Lender makes any Net
Proceeds available pursuant to Section 8.4. If any Individual Property is sold,
through foreclosure or otherwise, prior to the receipt by Lender of the Award,
Lender shall have the right, whether or not a deficiency judgment on the Note
shall have been sought, recovered or denied, to receive the Award, or a portion
thereof sufficient to pay the Debt.

     Section 8.4.    RESTORATION

     The following provisions shall apply in connection with the Restoration of
each Individual Property:

     (a)     If the Net Proceeds shall be less than $75,000 and the costs of
completing the Restoration shall be less than $75,000, the Net Proceeds will be
disbursed by Lender to the Borrower owning the affected Individual Property upon
receipt, provided that all of the conditions set forth in Section 8.4(b)(i) are
met and Borrowers deliver to Lender a written undertaking to expeditiously
commence and to satisfactorily complete with due diligence the Restoration in
accordance with the terms of this Agreement.

     (b)     If the Net Proceeds are equal to or greater than $75,000 or the
costs of completing the Restoration are equal to or greater than $75,000, Lender
shall make the Net Proceeds

                                     - 61 -
<Page>

available for the Restoration in accordance with the provisions of this Section
8.4. The term "NET PROCEEDS" for purposes of this Section 8.4 shall mean: (i)
the net amount of all insurance proceeds received by Lender pursuant to Section
8.1(a)(i), (iv), (vi) and (vii) as a result of a Casualty, after deduction of
its reasonable costs and expenses (including, but not limited to, reasonable
counsel fees), if any, in collecting the same ("INSURANCE PROCEEDS"), or (ii)
the net amount of the Award as a result of a Condemnation, after deduction of
its reasonable costs and expenses (including, but not limited to, reasonable
counsel fees), if any, in collecting the same ("CONDEMNATION PROCEEDS"),
whichever the case may be.

             (i)     The Net Proceeds shall be made available to the Borrower
     for Restoration provided that each of the following conditions are met:

                     (A)     no Event of Default shall have occurred and be
             continuing;

                     (B)     (1) in the event the Net Proceeds are Insurance
             Proceeds, less than twenty-five percent (25%) of the total floor
             area of the Improvements on the Individual Property has been
             damaged, destroyed or rendered unusable as a result of a Casualty
             or (2) in the event the Net Proceeds are Condemnation Proceeds,
             less than ten percent (10%) of the land constituting the Individual
             Property is taken, such land is located along the perimeter or
             periphery of the Individual Property, and no portion of the
             Improvements is located on such land;

                     (C)     Leases covering in the aggregate at least
             seventy-five percent (75%) of the total rentable space in such
             Individual Property which has been demised under executed and
             delivered Leases in effect as of the date of the occurrence of such
             Casualty or Condemnation, whichever the case may be, and each Major
             Lease in effect as of such date shall remain in full force and
             effect during and after the completion of the Restoration without
             abatement of rent beyond the time required for Restoration;

                     (D)     Borrower shall commence the Restoration as soon
             as reasonably practicable (but in no event later than sixty (60)
             days after such Casualty or Condemnation, whichever the case may
             be, occurs) and shall diligently pursue the same to satisfactory
             completion;

                     (E)     Lender shall be satisfied that any operating
             deficits, including all scheduled payments of principal and
             interest under the Note, which will be incurred with respect to
             such Individual Property as a result of the occurrence of any such
             Casualty or Condemnation, whichever the case may be, will be
             covered out of the insurance coverage referred to in Section
             8.1(a)(iii) above;

                     (F)     Lender shall be satisfied that the Restoration will
             be completed on or before the earliest to occur of (1) six (6)
             months prior to the Maturity Date, (2) the earliest date required
             for such completion under the terms of any Leases or material
             agreements affecting such Individual Property, (3) such time as may
             be required under applicable zoning law, ordinance, rule or
             regulation, or (4) the expiration of the insurance coverage
             referred to in Section 8.1(a)(iii);

                                     - 62 -
<Page>

                     (G)     such Individual Property and the use thereof after
             the Restoration will be in compliance with and permitted under all
             Legal Requirements;

                     (H)     the Restoration shall be done and completed by
             Borrower in an expeditious and diligent fashion and in compliance
             with all applicable Legal Requirements;

                     (I)     such Casualty or Condemnation, as applicable, does
             not result in the loss of access to such Individual Property or the
             Improvements;

                     (J)     Borrower shall deliver, or cause to be delivered,
             to Lender a signed detailed budget approved in writing by such
             Borrower's architect or engineer stating the entire cost of
             completing the Restoration, which budget shall be acceptable to
             Lender; and

                     (K)     the Net Proceeds together with any cash or cash
             equivalent deposited by the Borrower with Lender are sufficient in
             Lender's reasonable judgment to cover the cost of the Restoration.

             (ii)    The Net Proceeds shall be held by Lender until
     disbursements commence, and, until disbursed in accordance with the
     provisions of this Section 8.4, shall constitute additional security for
     the Debt and other obligations under the Loan Documents. The Net Proceeds
     shall be disbursed by Lender to, or as directed by, the Borrower owning the
     affected Individual Property from time to time during the course of the
     Restoration, upon receipt of evidence satisfactory to Lender that (A) all
     the conditions precedent to such advance, including those set forth in
     Section 8.4(b)(i), have been satisfied, (B) all materials installed and
     work and labor performed (except to the extent that they are to be paid for
     out of the requested disbursement) in connection with the related
     Restoration item have been paid for in full, and (C) there exist no notices
     of pendency, stop orders, mechanic's or materialman's liens or notices of
     intention to file same, or any other liens or encumbrances of any nature
     whatsoever on such Individual Property which have not either been fully
     bonded to the satisfaction of Lender and discharged of record or in the
     alternative fully insured to the satisfaction of Lender by the title
     company issuing the Title Insurance Policy for such Individual Property.
     Notwithstanding the foregoing, Insurance Proceeds from the Policies
     required to be maintained by Borrowers pursuant to Section 8.1(a)(iii)
     shall be controlled by Lender at all times, shall not be subject to the
     provisions of this Section 8.4 and shall be used solely for the payment of
     the obligations under the Loan Documents and Operating Expenses.

             (iii)   All plans and specifications required in connection with
     the Restoration shall be subject to prior review and acceptance in all
     respects by Lender and by an independent consulting engineer selected by
     Lender (the "Restoration Consultant"). Lender shall have the use of the
     plans and specifications and all permits, licenses and approvals required
     or obtained in connection with the Restoration. The identity of the
     contractors, subcontractors and materialmen engaged in the Restoration, as
     well as the contracts in excess of $50,000 under which they have been
     engaged, shall be subject to prior review and acceptance by Lender and the
     Restoration Consultant. All costs and

                                     - 63 -
<Page>

     expenses incurred by Lender in connection with making the Net Proceeds
     available for the Restoration, including, without limitation, reasonable
     counsel fees and disbursements and the Restoration Consultant's fees, shall
     be paid by Borrowers.

             (iv)    In no event shall Lender be obligated to make disbursements
     of the Net Proceeds in excess of an amount equal to the costs actually
     incurred from time to time for work in place as part of the Restoration, as
     certified by the Restoration Consultant, minus the Restoration Retainage.
     The term "Restoration Retainage" shall mean an amount equal to ten percent
     (10%) of the costs actually incurred for work in place as part of the
     Restoration, as certified by the Restoration Consultant, until the
     Restoration has been completed. The Restoration Retainage shall be reduced
     to five percent (5%) of the costs incurred upon receipt by Lender of
     satisfactory evidence that fifty percent (50%) of the Restoration has been
     completed. The Restoration Retainage shall in no event, and notwithstanding
     anything to the contrary set forth above in this Section 8.4(b), be less
     than the amount actually held back by Borrower from contractors,
     subcontractors and materialmen engaged in the Restoration. The Restoration
     Retainage shall not be released until the Restoration Consultant certifies
     to Lender that the Restoration has been completed in accordance with the
     provisions of this Section 8.4(b) and that all approvals necessary for the
     re-occupancy and use of such Individual Property have been obtained from
     all appropriate Governmental Authorities, and Lender receives evidence
     satisfactory to Lender that the costs of the Restoration have been paid in
     full or will be paid in full out of the Restoration Retainage; provided,
     however, that Lender will release the portion of the Restoration Retainage
     being held with respect to any contractor, subcontractor or materialman
     engaged in the Restoration as of the date upon which the Restoration
     Consultant certifies to Lender that the contractor, subcontractor or
     materialman has satisfactorily completed all work and has supplied all
     materials in accordance with the provisions of the contractor's,
     subcontractor's or materialman's contract, the contractor, subcontractor or
     materialman delivers the lien waivers and evidence of payment in full of
     all sums due to the contractor, subcontractor or materialman as may be
     reasonably requested by Lender or by the title company issuing the Title
     Insurance Policy for such Individual Property, and Lender receives an
     endorsement to such Title Insurance Policy insuring the continued priority
     of the lien of the Mortgage on such Individual Property and evidence of
     payment of any premium payable for such endorsement. If required by Lender,
     the release of any such portion of the Restoration Retainage shall be
     approved by the surety company, if any, which has issued a payment or
     performance bond with respect to the contractor, subcontractor or
     materialman.

             (v)     Lender shall not be obligated to make disbursements of the
     Net Proceeds more frequently than once every calendar month.

             (vi)    If at any time the Net Proceeds or the undisbursed balance
     thereof shall not, in the reasonable opinion of Lender in consultation with
     the Restoration Consultant, be sufficient to pay in full the balance of the
     costs which are estimated by the Restoration Consultant to be incurred in
     connection with the completion of the Restoration, the Borrower shall
     deposit the deficiency (the "Net Proceeds Deficiency") with Lender before
     any further disbursement of the Net Proceeds shall be made. The Net
     Proceeds Deficiency deposited with Lender shall be held by Lender and shall
     be disbursed for costs

                                     - 64 -
<Page>

     actually incurred in connection with the Restoration on the same conditions
     applicable to the disbursement of the Net Proceeds, and until so disbursed
     pursuant to this Section 8.4(b) shall constitute additional security for
     the Debt and other obligations under the Loan Documents.

             (vii)   The excess, if any, of the Net Proceeds and the remaining
     balance, if any, of the Net Proceeds Deficiency deposited with Lender after
     the Restoration Consultant certifies to Lender that the Restoration has
     been completed in accordance with the provisions of this Section 8.4(b),
     and the receipt by Lender of evidence satisfactory to Lender that all costs
     incurred in connection with the Restoration have been paid in full, shall
     be remitted by Lender to such Borrower, provided no Event of Default shall
     have occurred and shall be continuing under the Note, this Agreement or any
     of the other Loan Documents.

     (c)     All Net Proceeds not required (i) to be made available for the
Restoration or (ii) to be returned to Borrower as excess Net Proceeds pursuant
to Section 8.4(b)(vii) may (x) be retained and applied by Lender toward the
payment of the Debt whether or not then due and payable in such order, priority
and proportions as Lender in its sole discretion shall deem proper, or, (y) at
the sole discretion of Lender, the same may be paid, either in whole or in part,
to such Borrower for such purposes and upon such conditions as Lender shall
designate.

     (d)     In the event of foreclosure of the Mortgage on an Individual
Property, or other transfer of title to such Individual Property in
extinguishment in whole or in part of the Debt, all right, title and interest of
the Borrowers in and to the Policies then in force concerning the Individual
Property and all proceeds payable thereunder shall thereupon vest in the
purchaser at such foreclosure, Lender or other transferee in the event of such
other transfer of title.

     (e)     As long as the Tenants are not in default under the terms of their
Leases, the Net Proceeds shall be used for the restoration of the affected
Individual Property in accordance with the terms of the Leases, provided that
Lender or its designee shall hold the Net Proceeds and that the actual
disbursements therefrom for work done in connection with the Restoration shall
be made in accordance with the terms of this Agreement.

                                   ARTICLE 9.
                                  RESERVE FUNDS

     Section 9.1.    REQUIRED REPAIRS

     (a)     Borrowers shall make the repairs and improvements to the Properties
set forth in the Physical Conditions Reports prepared in connection with the
closing of the Loan (such repairs hereinafter referred to as "Required Repairs")
and referenced in Schedule III attached hereto and made part hereof. Borrowers
shall complete the Required Repairs in a good and workmanlike manner on or
before the date that is six (6) months from the date hereof or within such other
time frame for completion specifically set forth on Schedule III.

     (b)     If Borrowers or any of them fail to complete the Required Repairs
within six (6) months from the date hereof, Borrowers shall establish on the
date hereof an Eligible Account with Lender or Lender's agent to fund the
Required Repairs (the "Required Repair Account")

                                     - 65 -
<Page>

into which Borrowers shall deposit on the date thereof an amount which equals
125% of the estimated cost for the completion of the Required Repairs. Amounts
so deposited shall hereinafter be referred to as the "REQUIRED REPAIR FUNDS."

     Section 9.2.    REPLACEMENTS

     (a)     On an ongoing basis throughout the term of the Loan, Borrowers
shall make capital repairs, replacements and improvements necessary to keep the
Properties in good order and repair and in a good marketable condition or
prevent deterioration of the Properties, including, but not limited to, those
repairs, replacements and improvements more particularly described (i) in the
Physical Conditions Reports prepared in connection with the closing of the Loan
and (ii) on Schedule IV attached hereto and made a part hereof (collectively,
the "Replacements"). Borrowers shall complete all Replacements in a good and
workmanlike manner as soon as commercially reasonable after commencing to make
each such Replacement.

     (a)     Borrower shall establish on the date hereof an Eligible Account
with Lender or Lender's agent to fund the Replacements (the "REPLACEMENT RESERVE
ACCOUNT") into which Borrower shall deposit on the date hereof $0. In addition,
Borrower shall deposit $0 (the "REPLACEMENT RESERVE MONTHLY DEPOSIT") into the
Replacement Reserve Account on each Scheduled Payment Date. Amounts so deposited
shall hereinafter be referred to as "REPLACEMENT RESERVE FUNDS." Upon the
occurrence of an Event of Default or in the event that the actual Debt Service
Coverage Ratio for the Loan falls below 1.50 to 1, Lender may, in its reasonable
discretion, adjust the Replacement Reserve Monthly Deposit to an amount
sufficient to maintain the proper maintenance and operation of the Property
until the first Scheduled Payment Date after two (2) consecutive fiscal quarters
that the actual Debt Service Coverage Ratio for the Loan (as determined by
Lender in its sole discretion reasonably exercised) rises above 1.50 to 1. In
the event Lender shall at any time increase the Replacement Reserve Monthly
Deposit, Borrower may, at its election, request that Lender obtain, at the sole
cost and expense of Borrower, a Physical Conditions Report prepared by an
engineer selected by Lender in its reasonable discretion, in which case the
Replacement Reserve Monthly Deposit shall be adjusted by Lender based on the
results of such report, provided that in no event shall such amounts be reduced
below the initial amount of the Replacement Reserve Monthly Deposit set forth in
herein. Replacement Reserve Monthly Deposits shall be required for the duration
of the Loan should the Debt Service Coverage Ratio for the Loan fall below 1.50
to 1 on more than two separate occasions.

     Section 9.3.    INTENTIONALLY OMITTED

     Section 9.4.    REQUIRED WORK

     Borrowers shall diligently pursue all Required Repairs and Replacements and
Tenant Improvements (collectively, the "REQUIRED WORK") to completion in
accordance with the following requirements:

     (a)     Lender reserves the right, at its option, to approve all contracts
or work orders with materialmen, mechanics, suppliers, subcontractors,
contractors or other parties providing labor or materials in connection with the
Required Work to the extent such contracts or work

                                     - 66 -
<Page>

orders exceed $50,000. Upon Lender's request, Borrowers shall assign any
contract or subcontract to Lender.

     (b)     In the event Lender determines in its reasonable discretion that
any Required Work is not being or has not been performed in a workmanlike or
timely manner, Lender shall have the option to withhold disbursement for such
unsatisfactory Required Work and to proceed under existing contracts or to
contract with third parties to complete such Required Work and to apply the
Required Repair Funds or the Replacement Reserve Funds, as applicable, toward
the labor and materials necessary to complete such Required Work, without
providing any prior notice to Borrowers and to exercise any and all other
remedies available to Lender upon an Event of Default hereunder.

     (c)     In order to facilitate Lender's completion of the Required Work,
Borrowers grant Lender the right to enter onto any Individual Property and
perform any and all work and labor necessary to complete the Required Work
and/or employ watchmen to protect any Individual Property from damage. All sums
so expended by Lender, to the extent not from the Reserve Funds, shall be deemed
to have been advanced under the Loan to Borrowers and secured by the Mortgages.
For this purpose Borrowers constitute and appoint Lender their true and lawful
attorney-in-fact with full power of substitution to complete or undertake the
Required Work in the names of Borrowers upon Borrowers' failure to do so in a
workmanlike and timely manner. Such power of attorney shall be deemed to be a
power coupled with an interest and cannot be revoked. Borrowers empower said
attorney-in-fact as follows: (i) to use any of the Reserve Funds for the purpose
of making or completing the Required Work; (ii) to make such additions, changes
and corrections to the Required Work as shall be necessary or desirable to
complete the Required Work; (iii) to employ such contractors, subcontractors,
agents, architects and inspectors as shall be required for such purposes; (iv)
to pay, settle or compromise all existing bills and claims which are or may
become Liens against any of the Properties, or as may be necessary or desirable
for the completion of the Required Work, or for clearance of title; (v) to
execute all applications and certificates in the names of Borrowers which may be
required by any of the contract documents; (vi) to prosecute and defend all
actions or proceedings in connection with any of the Properties or the
rehabilitation and repair of any of the Properties; and (vii) to do any and
every act which Borrowers might do on their own behalf to fulfill the terms of
this Agreement.

     (d)     Nothing in this Section 9.4 shall: (i) make Lender responsible for
making or completing the Required Work; (ii) require Lender to expend funds in
addition to the Reserve Funds to make or complete any Required Work; (iii)
obligate Lender to proceed with the Required Work; or (iv) obligate Lender to
demand from Borrowers additional sums to make or complete any Required Work.

     (e)     Borrowers shall permit Lender and Lender's agents and
representatives (including, without limitation, Lender's engineer, architect, or
inspector) or third parties performing Required Work pursuant to this Section
9.4 to enter onto any Individual Property during normal business hours (subject
to the rights of tenants under their Leases) to inspect the progress of any
Required Work and all materials being used in connection therewith, to examine
all plans and shop drawings relating to such Required Work which are or may be
kept at an Individual Property, and to complete any Required Work made pursuant
to this Section 9.4.

                                     - 67 -
<Page>

Borrowers shall cause all contractors and subcontractors to cooperate with
Lender and Lender's representatives or such other persons described above in
connection with inspections described in this Section 9.4 or the completion of
Required Work pursuant to this Section 9.4.

     (f)     Lender may, to the extent any Required Work would reasonably
require an inspection of an Individual Property, inspect such Individual
Property at Borrowers' expense prior to making a disbursement of the Reserve
Funds in order to verify completion of the Required Work for which reimbursement
is sought. Borrowers shall pay Lender a reasonable inspection fee not exceeding
$1,000 for each such inspection. Lender may require that such inspection be
conducted by an appropriate independent qualified professional selected by
Lender and/or may require a copy of a certificate of completion by an
independent qualified professional acceptable to Lender prior to the
disbursement of the Reserve Funds. Borrowers shall pay the expense of the
inspection as required hereunder, whether such inspection is conducted by Lender
or by an independent qualified professional.

     (g)     The Required Work and all materials, equipment, fixtures, or any
other item comprising a part of any Required Work shall be constructed,
installed or completed, as applicable, free and clear of all mechanic's,
materialman's or other Liens (except for Permitted Encumbrances).

     (h)     Before each disbursement of the Reserve Funds, Lender may require
Borrowers to provide Lender with a search of title to the affected Individual
Property effective to the date of the disbursement, which search shows that no
mechanic's or materialmen's or other Liens of any nature have been placed
against such Individual Property since the date of recordation of the Mortgage
thereon and that title to such Individual Property is free and clear of all
Liens (except for Permitted Encumbrances).

     (i)     All Required Work shall comply with all Legal Requirements and
applicable insurance requirements including, without limitation, applicable
building codes, special use permits, environmental regulations, and requirements
of insurance underwriters.

     (j)     Borrowers hereby assign to Lender all rights and claims Borrowers
may have against all Persons supplying labor or materials in connection with the
Required Work; provided, however, that Lender may not pursue any such rights or
claims unless an Event of Default has occurred and remains uncured.

     SECTION 9.5.    RELEASE OF RESERVE FUNDS

     (a)     Upon written request from a Borrower and satisfaction of the
requirements set forth in this Agreement, Lender shall disburse to such Borrower
amounts from (i) the Required Repair Account to the extent necessary to
reimburse such Borrower for the actual costs of each Required Repair (but not
exceeding 125% of the original estimated cost of such Required Repair as set
forth on Schedule III, unless Lender has agreed to reimburse Borrower for such
excess cost pursuant to Section 9.5(f)) or (ii) the Replacement Reserve Account
to the extent necessary to reimburse such Borrower for the actual costs of any
approved Replacements. Notwithstanding the preceding sentence, in no event shall
Lender be required to (x) disburse any amounts which would cause the amount of
funds remaining in the Required Repair Account after any

                                     - 68 -
<Page>

disbursement (other than with respect to the final disbursement) to be less than
125% of the then current estimated cost of completing all remaining Required
Repairs for the applicable Individual Property, (y) disburse funds from any of
the Reserve Accounts if an Event of Default exists, or (z) disburse funds from
the Replacement Reserve Account to reimburse a Borrower for the costs of routine
repairs or maintenance to an Individual Property or for costs which are to be
reimbursed from funds held in the Required Repair Account.

     (b)     Each request for disbursement from any of the Reserve Accounts
shall be on a form provided or approved by Lender and shall (i) include copies
of invoices for all items or materials purchased and all labor or services
provided and (ii) specify (A) the Required Work for which the disbursement is
requested, (B) the quantity and price of each item purchased, if the Required
Work includes the purchase or replacement of specific items, (C) the price of
all materials (grouped by type or category) used in any Required Work other than
the purchase or replacement of specific items, and (D) the cost of all
contracted labor or other services applicable to each Required Work for which
such request for disbursement is made. With each request the Borrower making the
request shall certify that all Required Work has been performed in accordance
with all Legal Requirements. Except as provided in Section 9.5(d), each request
for disbursement shall be made only after completion of the Required Repair or
Replacement (or the portion thereof completed in accordance with Section
9.5(d)), as applicable, for which disbursement is requested. Borrowers shall
provide Lender evidence satisfactory to Lender in its reasonable judgment of
such completion or performance.

     (c)     Borrowers shall pay all invoices in connection with the Required
Work with respect to which a disbursement is requested prior to submitting such
request for disbursement from the Reserve Accounts or, at the request of a
Borrower, Lender will issue joint checks, payable to such Borrower and the
contractor, supplier, materialman, mechanic, subcontractor or other party to
whom payment is due in connection with the Required Work. In the case of
payments made by joint check, Lender may require a waiver of lien from each
Person receiving payment prior to Lender's disbursement of the Reserve Funds. In
addition, as a condition to any disbursement, Lender may require a Borrower to
obtain lien waivers from each contractor, supplier, materialman, mechanic or
subcontractor who receives payment in an amount equal to or greater than $10,000
for completion of its work or delivery of its materials. Any lien waiver
delivered hereunder shall conform to all Legal Requirements and shall cover all
work performed and materials supplied (including equipment and fixtures) for the
applicable Individual Property by that contractor, supplier, subcontractor,
mechanic or materialman through the date covered by the current disbursement
request (or, in the event that payment to such contractor, supplier,
subcontractor, mechanic or materialmen is to be made by a joint check, the
release of lien shall be effective through the date covered by the previous
release of funds request).

     (d)     If (i) the cost of any item of Required Work exceeds $50,000, (ii)
the contractor performing such Required Work requires periodic payments pursuant
to terms of a written contract, and (iii) Lender has approved in writing in
advance such periodic payments, a request for disbursement from the Reserve
Accounts may be made after completion of a portion of the work under such
contract, provided (A) such contract requires payment upon completion of such
portion of work, (B) the materials for which the request is made are on site at
the applicable Individual Property and are properly secured or have been
installed in the Individual Property, (C) all other conditions in this Agreement
for disbursement have been satisfied, and (D) in the

                                     - 69 -
<Page>

case of a Replacement, funds remaining in the Replacement Reserve Account are,
in Lender's judgment, sufficient to complete such Replacement and other
Replacements when required.

     (e)     Borrowers shall not make a request for, nor shall Lender have any
obligation to make, any disbursement from any Reserve Account more frequently
than once in any calendar month and (except in connection with the final
disbursement) in any amount less than the lesser of (i) $10,000 or (ii) the
total cost of the Required Work for which the disbursement is requested.

     (f)     In the event any Borrower requests a disbursement from the Required
Repair Account to reimburse such Borrower for the actual cost of labor or
materials used in connection with repairs or improvements other than the
Required Repairs specified on Schedule III, or for a Required Repair to the
extent the cost of such Required Repair exceeds 125% of the estimated cost of
such Required Repair as set forth on Schedule III (in either case, an
"Additional Required Repair"), such Borrower shall disclose in writing to Lender
the reason why funds in the Required Repair Account should be used to pay for
such Additional Required Repair. If Lender determines that (i) such Additional
Required Repair is of the type intended to be covered by the Required Repair
Account, (ii) such Additional Required Repair is not covered or is not of the
type intended to be covered by the Replacement Reserve Account, (iii) costs for
such Additional Required Repair are reasonable, (iv) the funds in the Required
Repair Account are sufficient to pay for such Additional Required Repair and all
other Required Repairs for the Individual Property specified on Schedule III,
and (v) all other conditions for disbursement under this Agreement have been
met, Lender may disburse funds from the Required Repair Account.

     (g)     In the event any Borrower requests a disbursement from the
Replacement Reserve Account to reimburse such Borrower for the actual cost of
labor or materials used in connection with repairs or improvements other than
the Replacements specified in the Physical Conditions Report prepared in
connection with the closing of the Loan (an "Additional Replacement"), such
Borrower shall disclose in writing to Lender the reason why funds in the
Replacement Reserve Account should be used to pay for such Additional
Replacement. If Lender determines that (i) such Additional Replacement is of the
type intended to be covered by the Replacement Reserve Account, (ii) such
Additional Replacement is not covered or is not of the type intended to be
covered by the Required Repair Account, (iii) costs for such Additional
Replacement are reasonable, (iv) the funds in the Replacement Reserve Account
are sufficient to pay for such Additional Replacement and all other Replacements
for the Individual Property specified in the Physical Conditions Reports, and
(v) all other conditions for disbursement under this Agreement have been met,
Lender may disburse funds from the Replacement Reserve Account.

     (h)     Lender's disbursement of any Reserve Funds or other acknowledgment
of completion of any Required Work in a manner satisfactory to Lender shall not
be deemed a certification or warranty by Lender to any Person that the Required
Work has been completed in accordance with Legal Requirements.

     (i)     If the funds in any Reserve Account should exceed the amount of
payments actually applied by Lender for the purposes of the account, Lender in
its sole discretion shall either return any excess to Borrowers or credit such
excess against future payments to be made to that Reserve Account. In allocating
any such excess, Lender may deal with the Person shown on Lender's records as
being the owner of the applicable Individual Property. If at any time Lender

                                     - 70 -
<Page>

reasonably determines that the Reserve Funds are not or will not be sufficient
to make the required payments, Lender shall notify Borrowers of such
determination and Borrowers shall pay to Lender any amount necessary to make up
the deficiency within ten (10) days after notice from Lender to Borrowers
requesting payment thereof.

     (j)     The insufficiency of any balance in any of the Reserve Accounts
shall not relieve Borrowers from their obligation to fulfill all preservation
and maintenance covenants in the Loan Documents.

     (k)     Upon the earlier to occur of (i) the timely completion of all
Required Repairs and any Additional Required Repairs, if any, in accordance with
the requirements of this Agreement, as verified by Lender in its reasonable
discretion, or (ii) the payment in full of the Debt, all amounts remaining on
deposit, if any, in the Required Repair Account shall be returned to Borrowers
or the Persons shown on Lender's records as being the owners of the Properties
and no other party shall have any right or claim thereto.

     (l)     Upon payment in full of the Debt, all amounts remaining on
deposit, if any, in the Replacement Reserve Account shall be returned to
Borrowers or the Persons shown on Lender's records as being the owners of the
Properties and no other party shall have any right or claim thereto.

     Section 9.6.    TAX AND INSURANCE RESERVE FUNDS

     Borrower shall establish on the date hereof an Eligible Account with Lender
or Lender's agent sufficient to discharge Borrower's obligations for the payment
of Taxes and Insurance Premiums pursuant to Section 5.4 and Section 8.1 hereof
(the "TAX AND INSURANCE RESERVE ACCOUNT") into which Borrower shall deposit on
the date hereof $0. Upon the occurrence of an Event of Default or in the event
that the Debt Service Coverage Ratio for the Loan falls below 1.50 to 1,
Borrower shall immediately deposit into the Tax and Insurance Reserve Account an
amount determined by Lender which, when added to the required monthly deposits
set forth in the next sentence, is sufficient to make the payments of Taxes and
Insurance Premiums as required herein. On each Scheduled Payment Date thereafter
that the Event of Default remains uncured or until the first Scheduled Payment
Date after two (2) consecutive fiscal quarters that the Debt Service Coverage
Ratio for the Loan (as determined by Lender in its sole discretion reasonably
exercised) rises above 1.50 to 1, Borrower shall deposit into the Tax and
Insurance Reserve Account (a) one-twelfth of the Taxes that Lender estimates
will be payable during the next ensuing twelve (12) months or such higher amount
necessary to accumulate with Lender sufficient funds to pay all such Taxes at
least thirty (30) days prior to the earlier of (i) the date that the same will
become delinquent and (ii) the date that additional charges or interest will
accrue due to the non-payment thereof, and (b) unless the Property is covered by
a blanket insurance policy acceptable to Lender, one-twelfth of the Insurance
Premiums that Lender estimates will be payable during the next ensuing twelve
(12) months for the renewal of the coverage afforded by the Policies upon the
expiration thereof or such higher amount necessary to accumulate with Lender
sufficient funds to pay all such Insurance Premiums at least thirty (30) days
prior to the expiration of the Policies (said amounts in (a) and (b) above
hereinafter called the "TAX AND INSURANCE RESERVE FUNDS"). Lender will apply the
Tax and Insurance Reserve Funds to payments of Taxes and Insurance Premiums
required to be made by Borrower pursuant

                                     - 71 -
<Page>

to Section 5.4 and Section 8.1 hereof. In making any disbursement from the Tax
and Insurance Reserve Account, Lender may do so according to any bill, statement
or estimate procured from the appropriate public office or tax lien service
(with respect to Taxes) or insurer or agent (with respect to Insurance
Premiums), without inquiry into the accuracy of such bill, statement or estimate
or into the validity of any tax, assessment, sale, forfeiture, tax lien or title
or claim thereof. If the amount of the Tax and Insurance Reserve Funds shall
exceed the amounts due for Taxes and Insurance Premiums pursuant to Section 5.4
and Section 8.1 hereof, Lender shall, in its sole discretion, return any excess
to Borrower or credit such excess against future payments to be made to the Tax
and Insurance Reserve Account. In allocating any such excess, Lender may deal
with the person shown on Lender's records as being the owner of the Property.
Any amount remaining in the Tax and Insurance Reserve Account after the Debt has
been paid in full shall be returned to Borrower or the person shown on Lender's
records as being the owner of the Property and no other party shall have any
right or claim thereto. If at any time Lender reasonably determines that the Tax
and Insurance Reserve Funds are not or will not be sufficient to pay Taxes and
Insurance Premiums by the dates set forth in (a) and (b) above, Lender shall
notify Borrower of such determination and Borrower shall pay to Lender any
amount necessary to make up the deficiency within ten (10) days after notice
from Lender to Borrower requesting payment thereof. The Tax and Insurance
Reserve Account will remain in place for the duration of the Loan should the
Debt Service Coverage Ratio for the Loan (as determined by Lender in its sole
discretion reasonably exercised) fall below 1.50 to 1 on more than two separate
occasions.

     Section 9.7.    ENVIRONMENTAL REMEDIATION/MONITORING RESERVE

     (a)     Borrowers, as applicable, shall cause the performance of the
remediation and monitoring work for the Properties as set forth in those certain
Phase I environmental assessment reports referenced on Schedule V attached
hereto and made a part hereof (such remediation and monitoring work hereinafter
referred to as "Environmental Repairs"). Borrowers, as applicable, shall
undertake such Environmental Repairs on or before the date that is six (6)
months from the date hereof.

     (b)     If Borrowers or any of them fail to complete the Environmental
Repairs within six (6) months from the date hereof, Borrowers shall establish on
the date hereof an Eligible Account with Lender or Lender's agent to fund the
Environmental Repairs (the "Environmental Repairs Account") into which Borrowers
shall deposit on the date thereof an amount which equals 125% of the estimated
cost for the implementation of the Environmental Repairs. Amounts so deposited
shall hereinafter be referred to as the "ENVIRONMENTAL REPAIR FUNDS."

     (c)     Upon the earlier to occur of (i) the timely completion of all
Environmental Repairs in accordance with Applicable Law, as verified by Lender
in its reasonable discretion, or (ii) the payment in full of the Debt, all
amounts remaining on deposit, if any, in the Environmental Repairs Account shall
be returned to the applicable Borrower or the Persons shown on Lender's records
as being the owners of the Properties and no other party shall have any right or
claim thereto. Lender's disbursement of any amounts from the Environmental
Repairs Account or other acknowledgment of completion of any Environmental
Repairs in a manner satisfactory to Lender shall not be deemed a certification
or warranty by Lender to any Person that the Required Work has been completed in
accordance with Legal Requirements.

                                     - 72 -
<Page>

     Section 9.8.    MID-HUDSON GROUND LEASE ESTOPPEL RESERVE

     (a)     Borrower shall establish on the date hereof an Eligible Account
with Lender or Lender's agent to fund a reserve for the Mid-Hudson Center ground
lessor estoppel escrow (the "ESTOPPEL RESERVE ACCOUNT") into which Borrower
shall deposit on the date hereof $3,000,000. Amounts so deposited shall
hereinafter be referred to as "ESTOPPEL RESERVE FUNDS."

     (b)     Upon the delivery to Lender of an acceptable, to Lender in its sole
discretion (it being understood and acknowledged by Lender that the form of
estoppel attached to Exhibit C of the Post Closing Obligations Letter executed
by the Borrowers in connection with the Loan shall be an acceptable form of
estoppel for purposes of this Section), executed Ground Lease Estoppel and
Agreement from the Ground Lessor at the Individual Property commonly known as
Mid-Hudson Center of Poughkeepsie, New York, all amounts remaining on deposit,
if any, in the Estoppel Reserve Account shall be returned to the applicable
Borrower or the Persons shown on Lender's records as being the owners of the
Properties and no other party shall have any right or claim thereto.

     SECTION 9.9.    RESERVE FUNDS GENERALLY

     (a)     (i)     Except for the Replacement Reserve Account, no earnings or
interest on the Reserve Accounts shall be payable to Borrowers. Neither Lender
nor any loan servicer that at any time holds or maintains such
non-interest-bearing Reserve Accounts shall have any obligation to keep or
maintain such Reserve Accounts or any funds deposited therein in
interest-bearing accounts. If Lender or any such loan servicer elects in its
sole and absolute discretion to keep or maintain any non-interest-bearing
Reserve Account or any funds deposited therein in an interest-bearing account,
the account shall be an Eligible Account and (A) such funds shall not be
invested except in Permitted Investments, and (B) all interest earned or accrued
thereon shall be for the account of and be retained by Lender or such loan
servicer. Funds deposited in the Replacement Reserve Account shall be held in an
interest-bearing business savings account and interest shall be credited to
Borrowers. In no event shall Lender or any loan servicer that at any time holds
or maintains the Replacement Reserve Account be required to select any
particular interest-bearing account or the account that yields the highest rate
of interest, provided that selection of the account shall be consistent with the
general standards at the time being utilized by Lender or the loan servicer, as
applicable, in establishing similar accounts for loans of comparable type. All
such interest shall be and become part of the Replacement Reserve Account and
shall be disbursed in accordance with Section 9.5 above; provided, however, that
Lender may, at its election, retain any such interest for its own account during
the occurrence and continuance of an Event of Default. Borrowers agree that they
shall include all interest on Replacement Reserve Funds as the income of
Borrowers (and, if a Borrower is a partnership or other pass-through entity, the
partners, members or beneficiaries of such Borrower, as the case may be), and
shall be the owner of the Replacement Reserve Funds for federal and applicable
state and local tax purposes, except to the extent that Lender retains any
interest for its own account during the occurrence and continuance of an Event
of Default as provided herein.

                                     - 73 -
<Page>

     (b)     Borrowers grant to Lender a first-priority perfected security
interest in, and assign and pledge to Lender, each of the Reserve Accounts and
any and all Reserve Funds now or hereafter deposited in the Reserve Accounts as
additional security for payment of the Debt. Until expended or applied in
accordance herewith, the Reserve Accounts and the Reserve Funds shall constitute
additional security for the Debt. The provisions of this Section 9.9 are
intended to give Lender or any subsequent holder of the Loan "control" of the
Reserve Accounts within the meaning of the UCC.

     (c)     The Reserve Accounts and any and all Reserve Funds now or hereafter
deposited in the Reserve Accounts shall be subject to the exclusive dominion and
control of Lender, which shall hold the Reserve Accounts and any or all Reserve
Funds now or hereafter deposited in the Reserve Accounts subject to the terms
and conditions of this Agreement. Borrowers shall have no right of withdrawal
from the Reserve Accounts or any other right or power with respect to the
Reserve Accounts or any or all of the Reserve Funds now or hereafter deposited
in the Reserve Accounts, except as expressly provided in this Agreement.

     (d)     Lender shall furnish or cause to be furnished to Borrowers, without
charge, an annual accounting of each Reserve Account in the normal format of
Lender or its loan servicer, showing credits and debits to such Reserve Account
and the purpose for which each debit to each Reserve Account was made.

     (e)     As long as no Event of Default has occurred, Lender shall make
disbursements from the Reserve Accounts in accordance with this Agreement. All
such disbursements shall be deemed to have been expressly pre-authorized by
Borrowers, and shall not be deemed to constitute the exercise by Lender of any
remedies against Borrowers unless an Event of Default has occurred and is
continuing and Lender has expressly stated in writing its intent to proceed to
exercise its remedies as a secured party, pledgee or lienholder with respect to
the Reserve Accounts.

     (f)     If any Event of Default occurs, Borrowers shall immediately lose
all of their rights to receive disbursements from the Reserve Accounts until the
earlier to occur of (i) the date on which such Event of Default is cured to
Lender's satisfaction, or (ii) the payment in full of the Debt. In addition, at
Lender's election, Borrowers shall lose all of their rights to receive interest
on the Replacement Reserve Account during the occurrence and continuance of an
Event of Default. Upon the occurrence of any Event of Default, Lender may
exercise any or all of its rights and remedies as a secured party, pledgee and
lienholder with respect to the Reserve Accounts. Without limitation of the
foregoing, upon any Event of Default, Lender may use and disburse the Reserve
Funds (or any portion thereof) for any of the following purposes: (A) repayment
of the Debt, including, but not limited to, principal prepayments and the
prepayment premium applicable to such full or partial prepayment (as
applicable); (B) reimbursement of Lender for all losses, fees, costs and
expenses (including, without limitation, reasonable legal fees) suffered or
incurred by Lender as a result of such Event of Default; (C) payment of any
amount expended in exercising any or all rights and remedies available to Lender
at law or in equity or under this Agreement or under any of the other Loan
Documents; (D) payment of any item from any of the Reserve Accounts as required
or permitted under this Agreement; or (E) any other purpose permitted by
applicable law; provided, however, that any such application of funds shall not
cure or be deemed to cure any Event of Default. Without limiting any other

                                     - 74 -
<Page>

provisions hereof, each of the remedial actions described in the immediately
preceding sentence shall be deemed to be a commercially reasonable exercise of
Lender's rights and remedies as a secured party with respect to the Reserve
Funds and shall not in any event be deemed to constitute a setoff or a
foreclosure of a statutory banker's lien. Nothing in this Agreement shall
obligate Lender to apply all or any portion of the Reserve Funds to effect a
cure of any Event of Default, or to pay the Debt, or in any specific order of
priority. The exercise of any or all of Lender's rights and remedies under this
Agreement or under any of the other Loan Documents shall not in any way
prejudice or affect Lender's right to initiate and complete a foreclosure under
the Mortgages.

     (g)     The Reserve Funds shall not constitute escrow or trust funds and
may be commingled with other monies held by Lender. Notwithstanding anything
else herein to the contrary, Lender may commingle in one or more Eligible
Accounts any and all funds controlled by Lender, including, without limitation,
funds pledged in favor of Lender by other borrowers, whether for the same
purposes as the Reserve Accounts or otherwise. Without limiting any other
provisions of this Agreement or any other Loan Document, the Reserve Accounts
may be established and held in such name or names as Lender or its loan
servicer, as agent for Lender, shall deem appropriate, including, without
limitation, in the name of Lender or such loan servicer, as agent for Lender. In
the case of any Reserve Account which is held in a commingled account, Lender or
its loan servicer, as applicable, shall maintain records sufficient to enable it
to determine at all times which portion of such account is related to the Loan.
The Reserve Accounts are solely for the protection of Lender. With respect to
the Reserve Accounts, Lender shall have no responsibility beyond the allowance
of due credit for the sums actually received by Lender or beyond the
reimbursement or payment of the costs and expenses for which such accounts were
established in accordance with their terms. Upon assignment of the Loan by
Lender, any Reserve Funds shall be turned over to the assignee and any
responsibility of Lender as assignor shall terminate. The requirements of this
Agreement concerning Reserve Accounts in no way supersede, limit or waive any
other rights or obligations of the parties under any of the Loan Documents or
under applicable law.

     (h)     Borrowers shall not, without obtaining the prior written consent of
Lender, further pledge, assign or grant any security interest in the Reserve
Accounts or the Reserve Funds deposited therein or permit any Lien to attach
thereto, except for the security interest granted in this Section 9.9, or any
levy to be made thereon, or any UCC Financing Statements, except those naming
Lender as the secured party, to be filed with respect thereto.

     (i)     Borrowers will maintain the security interest created by this
Section 9.9 as a first priority perfected security interest and will defend the
right, title and interest of Lender in and to the Reserve Accounts and the
Reserve Funds against the claims and demands of all Persons whomsoever. At any
time and from time to time, upon the written request of Lender, and at the sole
expense of Borrowers, Borrowers will promptly and duly execute and deliver such
further instruments and documents and will take such further actions as Lender
reasonably may request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted.

                                     - 75 -
<Page>

                                   ARTICLE 10.
                              INTENTIONALLY OMITTED

                                   ARTICLE 11.
                           EVENTS OF DEFAULT; REMEDIES

     Section 11.1.   EVENT OF DEFAULT

     The occurrence of any one or more of the following events shall constitute
an "EVENT OF DEFAULT":

     (a)     if any portion of the Debt is not paid on or prior to the date the
same is due or if the entire Debt is not paid on or before the Maturity Date;

     (b)     except as otherwise expressly provided in the Loan Documents, if
any of the Taxes or Other Charges are not paid when the same are due and
payable, unless there is sufficient money in the Tax and Insurance Reserve
Account for payment of amounts then due and payable and Lender's access to such
money has not been constrained or restricted in any manner;

     (c)     if the Policies are not kept in full force and effect, or if
certified copies of the Policies are not delivered to Lender as provided in
Section 8.1;

     (d)     if any Borrower breaches any covenant with respect to itself or any
SPE Component Entity (if any) contained in Article 6 or any covenant contained
in Article 7 hereof;

     (e)     if any representation or warranty of, or with respect to, any
Borrower, Borrower Principal, any SPE Component Entity, or any member, general
partner, principal or beneficial owner of any of the foregoing, made herein, in
any other Loan Document, or in any certificate, report, financial statement or
other instrument or document furnished to Lender at the time of the closing of
the Loan or during the term of the Loan shall have been false or misleading in
any material respect when made;

     (f)     if (i) any Borrower, or any managing member or general partner of a
Borrower, Borrower Principal, or any SPE Component Entity (if any) shall
commence any case, proceeding or other action (A) under any Creditors Rights
Laws, seeking to have an order for relief entered with respect to it, or seeking
to adjudicate it a bankrupt or insolvent, or seeking reorganization, or (B)
seeking appointment of a receiver, trustee, custodian, conservator or other
similar official for it or for all or any substantial part of its assets, or any
Borrower, any managing member or general partner of a Borrower, Borrower
Principal, or any SPE Component Entity (if any) shall make a general assignment
for the benefit of its creditors; or (ii) there shall be commenced against any
Borrower, any managing member or general partner of a Borrower, Borrower
Principal, or any SPE Component Entity (if any) any case, proceeding or other
action of a nature referred to in clause (i) above which (A) results in the
entry of an order for relief or any such adjudication or appointment or (B)
remains undismissed, undischarged or unbonded for a period of sixty (60) days;
or (iii) there shall be commenced against any Borrower, any managing member or
general partner of a Borrower, Borrower Principal, or any SPE Component Entity
(if any) any case, proceeding or other action seeking issuance of a warrant of
attachment, execution,

                                     - 76 -
<Page>

distraint or similar process against all or any substantial part of its assets
which results in the entry of any order for any such relief which shall not have
been vacated, discharged, or stayed or bonded pending appeal within sixty (60)
days from the entry thereof; or (iv) any Borrower, any managing member or
general partner of a Borrower, Borrower Principal, or any SPE Component Entity
(if any) shall take any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any of the acts set forth in clause (i), (ii),
or (iii) above; or (v) any Borrower, any managing member or general partner of a
Borrower, Borrower Principal, or any SPE Component Entity (if any) shall
generally not, or shall be unable to, or shall admit in writing its inability
to, pay its debts as they become due;

     (g)     if any Borrower shall be in default beyond applicable notice and
grace periods under any other mortgage, deed of trust, deed to secure debt or
other security agreement covering any part of the Individual Property owned by
such Borrower, whether it be superior or junior in lien to the Mortgage on such
Individual Property;

     (h)     if any Individual Property becomes subject to any mechanic's,
materialman's or other Lien other than a Lien for any Taxes or Other Charges not
then due and payable and the Lien shall remain undischarged of record (by
payment, bonding or otherwise) for a period of thirty (30) days;

     (i)     if any federal tax lien is filed against any Borrower, any member
or general partner of a Borrower, Borrower Principal, or any SPE Component
Entity (if any) or any Individual Property and same is not discharged of record
within thirty (30) days after same is filed;

     (j)     if a judgment is filed against any Borrower in excess of $20,000
which is not vacated or discharged (or bonded or insured to Lender's
satisfaction) within 30 days;

     (k)     if any default occurs under any guaranty or indemnity executed in
connection herewith and such default continues after the expiration of
applicable grace periods, if any;

     (l)     if any Borrower shall permit any event within its control to occur
that would cause any REA to terminate without notice or action by any party
thereto or would entitle any party to terminate any REA and the term thereof by
giving notice to such Borrower; or any REA shall be surrendered, terminated or
canceled for any reason or under any circumstance whatsoever except as provided
for in such REA; or any term of any REA shall be modified or supplemented
without Lender's prior written consent; or any Borrower shall fail, within ten
(10) Business Days after demand by Lender, to exercise its option to renew or
extend the term of any REA or shall fail or neglect to pursue diligently all
actions necessary to exercise such renewal rights pursuant to such REA except as
provided for in such REA;

     (m)     if any Borrower breaches any of its covenants contained in Section
5.21; or

     (n)     if any Borrower shall continue to be in default under any other
term, covenant or condition of this Agreement or any of the Loan Documents for
more than ten (10) days after notice from Lender in the case of any default
which can be cured by the payment of a sum of money or for thirty (30) days
after notice from Lender in the case of any other default, provided that if such
default cannot reasonably be cured within such thirty (30) day period and such

                                     - 77 -
<Page>

Borrower shall have commenced to cure such default within such thirty (30) day
period and thereafter diligently and expeditiously proceeds to cure the same,
the thirty (30) day period shall be extended for so long as it shall require
such Borrower in the exercise of due diligence to cure such default, it being
agreed that no such extension shall be for a period in excess of one hundred
twenty (120) days.

     (o)     if a Borrower as tenant under a Ground Lease shall fail to pay when
due the rent or additional rent or other charges payable under such Ground Lease
or there shall occur any default by the Borrower as tenant under such Ground
Lease in the observance or performance of any term, covenant or condition of
such Ground Lease on the part of Borrower to be observed or performed and said
default is not cured following the expiration of any applicable grace and notice
periods therein provided, or if the leasehold estate created by such Ground
Lease shall be surrendered, shall cease to be in full force and effect or shall
be terminated or cancelled for any reason or under any circumstance whatsoever,
or if any of the terms, covenants or conditions of such Ground Lease shall in
any manner be modified, changed, supplemented, altered or amended without the
consent of Lender.

     Section 11.2.   REMEDIES

     (a)     a) Upon the occurrence of an Event of Default (other than an Event
of Default described in Section 11.1(f) above) and at any time thereafter Lender
may, in addition to any other rights or remedies available to it pursuant to
this Agreement and the other Loan Documents or at law or in equity, take such
action, without notice or demand, that Lender deems advisable to protect and
enforce its rights against Borrowers and in the Individual Properties,
including, without limitation, declaring the Debt to be immediately due and
payable, and Lender may enforce or avail itself of any or all rights or remedies
provided in the Loan Documents against Borrowers, or any one or more of them,
and the Individual Properties, or any one or more of them, including, without
limitation, all rights or remedies available at law or in equity; and upon any
Event of Default described in Section 11.1(f) above, the Debt and all other
obligations of Borrowers hereunder and under the other Loan Documents shall
immediately and automatically become due and payable, without notice or demand,
and Borrowers hereby expressly waive any such notice or demand, anything
contained herein or in any other Loan Document to the contrary notwithstanding.

     (b)     Upon the occurrence of an Event of Default, all or any one or more
of the rights, powers, privileges and other remedies available to Lender against
Borrowers under this Agreement or any of the other Loan Documents executed and
delivered by, or applicable to, Borrowers or at law or in equity may be
exercised by Lender at any time and from time to time, whether or not all or any
of the Debt shall be declared due and payable, and whether or not Lender shall
have commenced any foreclosure proceeding or other action for the enforcement of
its rights and remedies under any of the Loan Documents with respect to the
Properties or any of them. Any such actions taken by Lender shall be cumulative
and concurrent and may be pursued independently, singularly, successively,
together or otherwise, at such time and in such order as Lender may determine in
its sole discretion, to the fullest extent permitted by law, without impairing
or otherwise affecting the other rights and remedies of Lender permitted by law,
equity or contract or as set forth herein or in the other Loan Documents.

                                     - 78 -
<Page>

                                   ARTICLE 12.
                            ENVIRONMENTAL PROVISIONS

     Section 12.1.   ENVIRONMENTAL REPRESENTATIONS AND WARRANTIES

     Borrowers represent and warrant, based solely upon Environmental Reports of
the Properties and information that Borrowers know or should reasonably have
known, that: (a) there are no Hazardous Materials or underground storage tanks
in, on, or under any of the Properties, except those that are both (i) in
compliance with Environmental Laws and with permits issued pursuant thereto (if
such permits are required), if any, and (ii) either (A) in the case of Hazardous
Materials, in amounts not in excess of that necessary to operate the Properties
or any of them for the purposes set forth herein or (B) fully disclosed to and
approved by Lender in writing pursuant to an Environmental Report; (b) there are
no past, present or threatened Releases of Hazardous Materials in violation of
any Environmental Law or which would require remediation by a Governmental
Authority in, on, under or from the Properties or any of them except as
described in the Environmental Reports; (c) there is no threat of any Release of
Hazardous Materials migrating to any of the Properties except as described in
the Environmental Reports; (d) there is no past or present non-compliance with
Environmental Laws, or with permits issued pursuant thereto, in connection with
any of the Properties except as described in the Environmental Reports; (e)
Borrowers do not know of, and have not received, any written or oral notice or
other communication from any Person relating to Hazardous Materials in, on,
under or from any of the Properties; (f) the Properties are free of mold and (g)
Borrowers have truthfully and fully provided to Lender, in writing, any and all
information relating to environmental conditions in, on, under or from the
Properties known to Borrowers or contained in Borrowers' files and records,
including but not limited to any reports relating to Hazardous Materials in, on,
under or migrating to or from the Properties and/or to the environmental
condition of the Properties.

     Section 12.2.   ENVIRONMENTAL COVENANTS

     The Borrowers covenant and agree that so long as they own, manage, are in
possession of, or otherwise control the operation of the Individual Properties:
(a) all uses and operations on or of the Individual Properties, whether by
Borrowers or any other Person, shall be in compliance with all Environmental
Laws and permits issued pursuant thereto; (b) there shall be no Releases of
Hazardous Materials in, on, under or from the Individual Properties; (c) there
shall be no Hazardous Materials in, on, or under the Individual Properties,
except those that are both (i) in compliance with all Environmental Laws and
with permits issued pursuant thereto, if and to the extent required, and (ii)
(A) in amounts not in excess of that necessary to operate the Individual
Properties for the purposes set forth herein or (B) fully disclosed to and
approved by Lender in writing; or (c) with respect to mold, not in a condition,
location or of a type which may pose a risk to human health or safety, or the
environment or which may result in damage to or would adversely affect or impair
the value or marketability of the Individual Properties; (d) Borrowers shall
keep the Individual Properties free and clear of all Environmental Liens; (e)
Borrowers shall, at their sole cost and expense, fully and expeditiously
cooperate in all activities pursuant to Section 12.4 below, including but not
limited to providing all relevant information and making knowledgeable persons
available for interviews; (f) Borrowers shall, at their sole cost and expense,
perform any environmental site assessment or other investigation of

                                     - 79 -
<Page>

environmental conditions in connection with the Individual Properties, pursuant
to any reasonable written request of Lender, upon Lender's reasonable belief
that the Individual Properties are not in full compliance with all Environmental
Laws, and share with Lender the reports and other results thereof, and Lender
and other Indemnified Parties shall be entitled to rely on such reports and
other results thereof; (g) Borrowers shall keep the Individual Properties free
of mold; (h) Borrowers shall, at their sole cost and expense, comply with all
reasonable written requests of Lender to (i) reasonably effectuate remediation
of any Hazardous Materials in, on, under or from the Individual Properties; and
(ii) comply with any Environmental Law; (i) Borrowers shall not allow any tenant
or other user of the Individual Properties to violate any Environmental Law; and
(j) Borrowers shall immediately notify Lender in writing after any of them has
become aware of (A) any presence or Release or threatened Release of Hazardous
Materials in, on, under, from or migrating towards the Individual Properties;
(B) any non-compliance with any Environmental Laws related in any way to the
Individual Properties; (C) any actual or potential Environmental Lien against
the Individual Properties; (D) any required or proposed remediation of
environmental conditions relating to the Individual Properties; and (E) any
written or oral notice or other communication of which each Borrower becomes
aware from any source whatsoever (including but not limited to a Governmental
Authority) relating in any way to Hazardous Materials. Any failure of Borrowers
to perform their obligations pursuant to this Section 12.2 shall constitute bad
faith waste with respect to the Properties.

     Section 12.3.   LENDER'S RIGHTS

     Lender and any other Person designated by Lender, including but not limited
to any representative of a Governmental Authority, and any environmental
consultant, and any receiver appointed by any court of competent jurisdiction,
shall have the right, but not the obligation, to enter upon any of the
Properties at all reasonable times to assess any and all aspects of the
environmental condition of the Properties and their use, including but not
limited to conducting any environmental assessment or audit (the scope of which
shall be determined in Lender's sole discretion) and taking samples of soil,
groundwater or other water, air, or building materials, and conducting other
invasive testing. Borrowers shall cooperate with and provide access to Lender
and any such person or entity designated by Lender.

     Section 12.4.   OPERATIONS AND MAINTENANCE PROGRAMS

     If recommended by the Environmental Reports or any other environmental
assessment or audit of the Properties, Borrowers shall establish and comply with
an operations and maintenance program with respect to the Properties, in form
and substance reasonably acceptable to Lender, prepared by an environmental
consultant reasonably acceptable to Lender, which program shall address any
asbestos-containing material or lead based paint that may now or in the future
be detected at or on any of the Properties. Without limiting the generality of
the preceding sentence, Lender may require (a) periodic notices or reports to
Lender in form, substance and at such intervals as Lender may specify, (b) an
amendment to such operations and maintenance program to address changing
circumstances, laws or other matters, (c) at Borrowers' sole expense,
supplemental examination of the Properties by consultants specified by Lender,
(d) access to the Properties by Lender, its agents or servicer, to review and
assess the environmental condition of the Properties and Borrowers' compliance
with any operations and

                                     - 80 -
<Page>

maintenance program, and (e) variation of the operations and maintenance program
in response to the reports provided by any such consultants.

     Section 12.5.   ENVIRONMENTAL DEFINITIONS

     "ENVIRONMENTAL LAW" means any present and future federal, state and local
laws, statutes, ordinances, rules, regulations, standards, policies and other
government directives or requirements, as well as common law, including but not
limited to the Comprehensive Environmental Response, Compensation and Liability
Act and the Resource Conservation and Recovery Act, that apply to Borrowers or
any of the Individual Properties and relate to Hazardous Materials or protection
of human health or the environment, "ENVIRONMENTAL LIENS" means all Liens and
other encumbrances imposed pursuant to any Environmental Law, whether due to any
act or omission of Borrowers or any of them or any other Person. "ENVIRONMENTAL
REPORTS" means the written reports resulting from the environmental site
assessments of the Properties delivered to Lender in connection with the Loan.
"HAZARDOUS MATERIALS" shall mean petroleum and petroleum products and compounds
containing them, including gasoline, diesel fuel and oil; explosives, flammable
materials; radioactive materials; polychlorinated biphenyls and compounds
containing them; lead and lead-based paint; asbestos or asbestos-containing
materials in any form that is or could become friable; underground or
above-ground storage tanks, whether empty or containing any substance; any
substance the presence of which on any of the Properties is prohibited by any
federal, state or local authority; any substance that requires special handling;
and any other material or substance now or in the future defined as a "hazardous
substance," "hazardous material", "hazardous waste", "toxic substance", "toxic
pollutant", "contaminant", or "pollutant" within the meaning of any
Environmental Law. "RELEASE" of any Hazardous Materials includes but is not
limited to any release, deposit, discharge, emission, leaking, spilling,
seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping,
disposing or other movement of Hazardous Materials.

     Section 12.6.   INDEMNIFICATION

     (a)     Borrowers and Borrower Principal jointly and severally covenant and
agree at their sole cost and expense, to protect, defend, indemnify, release and
hold Indemnified Parties harmless from and against any and all Losses imposed
upon or incurred by or asserted against any Indemnified Parties and directly or
indirectly arising out of or in any way relating to any one or more of the
following: (i) any presence of any Hazardous Materials in, on, above, or under
any of the Properties; (ii) any past, present or threatened Release of Hazardous
Materials in, on, above, under or from any of the Properties; (iii) any activity
by any Borrower, any Person affiliated with a Borrower, and any Tenant or other
user of any of the Individual Properties in connection with any actual, proposed
or threatened use, treatment, storage, holding, existence, disposition or other
Release, generation, production, manufacturing, processing, refining, control,
management, abatement, removal, handling, transfer or transportation to or from
any of the Individual Properties of any Hazardous Materials at any time located
in, under, on or above any of the Individual Properties or any actual or
proposed remediation of any Hazardous Materials at any time located in, under,
on or above any of the Individual Properties, whether or not such remediation is
voluntary or pursuant to court or administrative order, including but not
limited to any removal, remedial or corrective action; (iv) any past, present or
threatened non-compliance or violations of any Environmental Laws (or permits
issued pursuant to any

                                     - 81 -
<Page>

Environmental Law) in connection with any of the Properties or operations
thereon, including but not limited to any failure by any Borrower, any person or
entity affiliated with any Borrower, and any tenant or other user of any of the
Individual Properties to comply with any order of any Governmental Authority in
connection with any Environmental Laws; (v) the imposition, recording or filing
or the threatened imposition, recording or filing of any Environmental Lien
encumbering any of the Individual Properties; (vi) any acts of any Borrower, any
person or entity affiliated with a Borrower, and any tenant or other user of any
of the Individual Properties in (A) arranging for disposal or treatment, or
arranging with a transporter for transport for disposal or treatment, of
Hazardous Materials at any facility or incineration vessel containing such or
similar Hazardous Materials or (B) accepting any Hazardous Materials for
transport to disposal or treatment facilities, incineration vessels or sites
from which there is a Release, or a threatened Release of any Hazardous
Substance which causes the incurrence of costs for remediation; and (vii) any
misrepresentation or inaccuracy in any representation or warranty or material
breach or failure to perform any covenants or other obligations pursuant to this
Agreement relating to environmental matters.

     (b)     Upon written request by any Indemnified Party, Borrowers and
Borrower Principal shall defend same (if requested by any Indemnified Party, in
the name of the Indemnified Party) by attorneys and other professionals approved
by the Indemnified Parties. Notwithstanding the foregoing, any Indemnified
Parties may, in their sole discretion, engage their own attorneys and other
professionals to defend or assist them, and, at the option of Indemnified
Parties, their attorneys shall control the resolution of any claim or
proceeding. Upon demand, Borrowers and Borrower Principal shall pay or, in the
sole discretion of the Indemnified Parties, reimburse, the Indemnified Parties
for the payment of reasonable fees and disbursements of attorneys, engineers,
environmental consultants, laboratories and other professionals in connection
therewith.

     (c)     Notwithstanding the foregoing, neither Borrowers nor Borrower
Principal shall have any liability for any Losses imposed upon or incurred by or
asserted against any Indemnified Parties and described in subsection (a) above
to the extent that Borrowers and/or Borrower Principal can conclusively prove
both that such Losses were caused solely by actions, conditions or events that
occurred after the date that Lender (or any purchaser at a foreclosure sale)
actually acquired title to the Individual Properties and that such Losses were
not caused by the direct or indirect actions of Borrowers, Borrower Principal,
or any partner, member, principal, officer, director, trustee or manager of
Borrowers or Borrower Principal or any employee, agent, contractor or Affiliate
of Borrowers or Borrower Principal. The obligations and liabilities of Borrowers
and Borrower Principal under this Section 12.6 shall fully survive indefinitely
notwithstanding any termination, satisfaction, assignment, entry of a judgment
of foreclosure, exercise of any power of sale, or delivery of a deed in lieu of
foreclosure of the Mortgages or any of them.

                                     - 82 -
<Page>

                                   ARTICLE 13.
                                SECONDARY MARKET

     Section 13.1.   TRANSFER OF LOAN

     Lender may, at any time, sell, transfer or assign the Loan Documents, or
grant participations therein ("PARTICIPATIONS") or syndicate the Loan
("SYNDICATION") or issue mortgage pass-through certificates or other securities
evidencing a beneficial interest in a rated or unrated public offering or
private placement ("SECURITIES") (a Syndication or the issuance of
Participations and/or Securities, a "SECURITIZATION").

     Section 13.2.   DELEGATION OF SERVICING

     At the option of Lender, the Loan may be serviced by a servicer/trustee
selected by Lender and Lender may delegate all or any portion of its
responsibilities under this Agreement and the other Loan Documents to such
servicer/trustee pursuant to a servicing agreement between Lender and such
servicer/trustee.

     Section 13.3.   DISSEMINATION OF INFORMATION

     Lender may forward to each purchaser, transferee, assignee, or servicer of,
and each participant, or investor in, the Loan, or any Participations and/or
Securities or any of their respective successors (collectively, the "INVESTOR")
or any Rating Agency rating the Loan, or any Participations and/or Securities,
each prospective Investor, and any organization maintaining databases on the
underwriting and performance of commercial mortgage loans, all documents and
information which Lender now has or may hereafter acquire relating to the Debt
and to Borrowers, any managing member or general partner thereof, Borrower
Principal, any SPE Component Entity (if any) and the Properties, including
financial statements, whether furnished by Borrowers or otherwise, as Lender
determines necessary or desirable. Borrowers irrevocably waive any and all
rights they may have under applicable Legal Requirements to prohibit such
disclosure, including but not limited to any right of privacy.

     Section 13.4.   COOPERATION

     Borrowers and Borrower Principal agree to cooperate with Lender in
connection with any sale or transfer of the Loan or any Participation and/or
Securities created pursuant to this Article 13, including, without limitation,
(a) the delivery of estoppel certificates required in accordance with Section
5.12(a) and such other documents as may be reasonably requested by Lender, (b)
the execution of such amendments to the Loan Documents as may be requested by
the holder of the Note or the Rating Agencies or otherwise to effect the
Securitization, including, without limitation, bifurcation of the Loan into two
or more separate notes; provided, however, that Borrowers shall not be required
to modify or amend any Loan Document if such modification or amendment would (i)
change the interest rate, the stated maturity or the amortization of principal
set forth in the Note, except in connection with a bifurcation of the Loan which
may result in varying interest rates and amortization schedules but which shall
have the same initial weighted average coupon of the original Note, or (ii) in
the reasonable judgment of Borrowers, materially increase Borrowers' obligations
and liabilities under the Loan Documents, (c) make changes to the organizational
documents of Borrowers and their principals and/or use their best efforts to

                                     - 83 -
<Page>

cause changes to the legal opinions delivered by Borrowers in connection with
the Loan, provided that such changes shall not result in material adverse
economic effect to Borrowers, and (d) to use best efforts to deliver any
opinion, including company opinions, as may be reasonably requested by Lender or
the holder of the Note or as may be requested by the Rating Agencies to effect
the Securitization, the cost of which Borrowers shall be responsible for, as
well as make any changes to the LCC Agreements or Delaware Statutory Trust
Agreements or the Loan Documents which may be reasonably necessary to obtain
such opinions. Borrowers' failure to deliver the opinions described in
subsection (d) shall not constitute an Event of Default should Borrowers use
best efforts to obtain them. Borrowers shall also furnish, and Borrowers and
Borrower Principal consent to Lender furnishing to such Investors or such
prospective Investors or such Rating Agencies, any and all information
concerning the Properties, the Leases, the financial condition of Borrowers or
Borrower Principal as may be requested by Lender, or Investor, any prospective
Investor or any Rating Agency in connection with any sale or transfer of the
Loan or any Participations or Securities. Except as provided in subsection (d)
of this Section 13.4, neither Borrowers nor Borrower Principal shall be
responsible for any costs incurred by Lender in connection with a
Securitization.

                                   ARTICLE 14.
                                INDEMNIFICATIONS

     Section 14.1.   GENERAL INDEMNIFICATION

     Borrowers shall jointly and severally indemnify, defend and hold harmless
the Indemnified Parties from and against any and all Losses imposed upon or
incurred by or asserted against any Indemnified Parties and directly or
indirectly arising out of or in any way relating to any one or more of the
following: (a) any accident, injury to or death of persons or loss of or damage
to property occurring in, on or about any of the Properties or any part thereof
or on the adjoining sidewalks, curbs, adjacent property or adjacent parking
areas, streets or ways; (b) any use, nonuse or condition in, on or about any of
the Properties or any part thereof or on the adjoining sidewalks, curbs,
adjacent property or adjacent parking areas, streets or ways; (c) performance of
any labor or services or the furnishing of any materials or other property in
respect of any of the Properties or any part thereof; (d) any failure of any of
the Properties to be in compliance with any Applicable Legal Requirements; (e)
any and all claims and demands whatsoever which may be asserted against Lender
by reason of any alleged obligations or undertakings on its part to perform or
discharge any of the terms, covenants, or agreements contained in any Lease; (f)
the holding or investing of the Reserve Accounts or the performance of the
Required Work, Additional Required Repairs or Additional Replacements, or (g)
the payment of any commission, charge or brokerage fee to anyone which may be
payable in connection with the funding of the Loan (collectively, the
"INDEMNIFIED LIABILITIES"); provided, however, that Borrowers shall not have any
obligation to Lender hereunder to the extent that such Indemnified Liabilities
arise from the gross negligence, illegal acts, fraud or willful misconduct of
Lender. To the extent that the undertaking to indemnify, defend and hold
harmless set forth in the preceding sentence may be unenforceable because it
violates any law or public policy, Borrowers shall pay the maximum portion that
they are permitted to pay and satisfy under applicable law to the payment and
satisfaction of all Indemnified Liabilities incurred by Lender.

                                     - 84 -
<Page>

     Section 14.2.   MORTGAGE AND INTANGIBLE TAX INDEMNIFICATION

     Borrowers shall jointly and severally at their sole cost and expense,
protect, defend, indemnify, release and hold harmless the Indemnified Parties
from and against any and all Losses imposed upon or incurred by or asserted
against any Indemnified Parties and directly or indirectly arising out of or in
any way relating to any tax on the making and/or recording of the Mortgages, the
Note or any of the other Loan Documents, but excluding any income, franchise or
other similar taxes.

     Section 14.3.   ERISA INDEMNIFICATION

     Borrowers shall, at their sole cost and expense, jointly and severally
protect, defend, indemnify, release and hold harmless the Indemnified Parties
from and against any and all Losses (including, without limitation, reasonable
attorneys' fees and costs incurred in the investigation, defense, and settlement
of Losses incurred in correcting any prohibited transaction or in the sale of a
prohibited loan, and in obtaining any individual prohibited transaction
exemption under ERISA that may be required, in Lender's sole discretion) that
Lender may incur, directly or indirectly, as a result of a default under Section
4.8 or Section 5.18 of this Agreement.

     Section 14.4.   SURVIVAL

     The obligations and liabilities of Borrowers and Borrower Principal under
this Article 14 shall fully survive indefinitely notwithstanding any
termination, satisfaction, assignment, entry of a judgment of foreclosure,
exercise of any power of sale, or delivery of a deed in lieu of foreclosure of
any of the Mortgages.

                                   ARTICLE 15.
                                   EXCULPATION

     Section 15.1.   EXCULPATION

     (a)     Except as otherwise provided herein or in the other Loan Documents,
Lender shall not enforce the liability and obligation of Borrowers or Borrower
Principal, as applicable, to perform and observe the obligations contained
herein or in the other Loan Documents by any action or proceeding wherein a
money judgment shall be sought against Borrowers or Borrower Principal, except
that Lender may bring a foreclosure action, action for specific performance or
other appropriate action or proceeding to enable Lender to enforce and realize
upon this Agreement, the Note, the Mortgages and the other Loan Documents, and
the interest in the Properties, the Rents and any other collateral given to
Lender created by this Agreement, the Note, the Mortgages and the other Loan
Documents; provided, however, that any judgment in any such action or proceeding
shall be enforceable against Borrowers or Borrower Principal, as applicable,
only to the extent of Borrowers' or Borrower Principal's interest in the
Individual Properties, in the Rents and in any other collateral given to Lender.
Lender, by accepting this Agreement, the Note, the Mortgages and the other Loan
Documents, agrees that it shall not, except as otherwise provided in this
Section 15.1, sue for, seek or demand any deficiency judgment against Borrowers
or Borrower Principal in any such action or proceeding, under or by reason of or
under or in connection with this Agreement, the Note, the Mortgages or the other

                                     - 85 -
<Page>

Loan Documents. The provisions of this Section 15.1 shall not, however, (i)
constitute a waiver, release or impairment of any obligation evidenced or
secured by this Agreement, the Note, the Mortgages or the other Loan Documents;
(ii) impair the right of Lender to name Borrowers or Borrower Principal as a
party defendant in any action or suit for judicial foreclosure and sale under
this Agreement and the Mortgages; (iii) affect the validity or enforceability of
any indemnity (including, without limitation, those contained in Section 12.6,
Section 13.5 and Article 14 of this Agreement), guaranty, master lease or
similar instrument made in connection with this Agreement, the Note, the
Mortgages and the other Loan Documents; (iv) impair the right of Lender to
obtain the appointment of a receiver; (v) impair the enforcement of the
assignment of leases provisions contained in the Mortgages; or (vi) impair the
right of Lender to obtain a deficiency judgment or other judgment on the Note
against Borrowers or Borrower Principal if necessary to obtain any Insurance
Proceeds or Awards to which Lender would otherwise be entitled under this
Agreement; provided however, Lender shall only enforce such judgment to the
extent of the Insurance Proceeds and/or Awards.

     (b)     Notwithstanding the provisions of this Section 15.1 to the
contrary, Borrowers and Borrower Principal shall be personally liable to Lender
on a joint and several basis for Losses due to:

             (i)     fraud or intentional misrepresentation by any Borrower,
     Borrower Principal or any other Affiliate of a Borrower or Borrower
     Principal in connection with the execution and the delivery of this
     Agreement, the Note, the Mortgages, any of the other Loan Documents, or any
     certificate, report, financial statement or other instrument or document
     furnished to Lender at the time of the closing of the Loan or during the
     term of the Loan;

             (ii)    Misapplication or misappropriation by any Borrower of Rents
     received by such Borrower after the occurrence of an Event of Default;

             (iii)   Misapplication or misappropriation by any Borrower of
     tenant security deposits or Rents collected in advance;

             (iv)    the misapplication or the misappropriation of Insurance
     Proceeds or Awards;

             (v)     the failure of any Borrower to pay Taxes or Other Charges
     (except to the extent that sums sufficient to pay such amounts have been
     deposited in escrow with Lender pursuant to the terms hereof and there
     exists no impediment to Lender's utilization thereof), charges for labor or
     materials or other charges that can create liens on such Borrower's
     Individual Property beyond any applicable notice and cure periods specified
     herein;

             (vi)    the failure of any Borrower to return or to reimburse
     Lender for all Personal Property taken from an Individual Property by or on
     behalf of such Borrower and not replaced with Personal Property of the same
     utility and of the same or greater value;

                                     - 86 -
<Page>

             (vii)   any act of actual waste or arson by any Borrower, any
     principal, Affiliate, member or general partner thereof or by Borrower
     Principal, any principal, Affiliate, member or general partner thereof;

             (viii)  the failure of any Borrower following any Event of Default
     to deliver to Lender upon demand all Rents and books and records relating
     to the Property;

             (ix)    the gross negligence or willful misconduct of any Borrower;

             (x)     the failure of any Borrower to pay for all Tenant
     Improvements, Leasing Commissions, Tenant Allowances or any other payments
     or to perform any landlord work in accordance with the provisions of any
     Lease within the time required thereunder,

             (xi)    the failure of the Borrower owning the Individual Property
     known as Century III Plaza to pay any final judgment obtained by Mountain
     Top Associates (the successor in interest to Giant Eagle, Inc.) in its
     action pending against landlord at the date of this Agreement in the
     Western District Court of Pennsylvania, Case No. 04-1211, GIANT EAGLE, INC.
     V. BTS WEST MIFFLIN, L.P., or

             (xii)   the failure of the Borrower owning the Individual Property
     known as Maple Tree Plaza to pay any final judgment obtained by Maple Tree
     Cinemas Corporation in its action pending against landlord at the date of
     this Agreement in Chittenden County Superior Court (Vermont), docket No.
     90411-05Cnc.

     (c)     Notwithstanding the foregoing, the agreement of Lender not to
pursue recourse liability as set forth in subsection (a) above SHALL BECOME NULL
AND VOID and shall be of no further force and effect and the Debt shall become
fully recourse to Borrowers and Borrower Principal, jointly and severally, in
the event (i) of a breach by any Borrower, Borrower Principal or SPE Component
Entity of any of the covenants set forth in Article 6 or Article 7 hereof, (ii)
any of the Individual Properties or any part thereof shall become an asset in
(A) a voluntary bankruptcy or insolvency proceeding of any Borrower or Borrower
Principal, or (B) an involuntary bankruptcy or insolvency proceeding of any
Borrower or Borrower Principal in connection with which such Borrower or
Borrower Principal fails to use its best efforts to dismiss within the hundred
twenty (120) days of filing, or (iii) if any Borrower fails to complete any
construction on any of the Individual Properties free of all Liens and fully in
accordance with all Legal Requirements.

     (d)     Nothing herein shall be deemed to be a waiver of any right which
Lender may have under Section 506(a), 506(b), 1111(b) or any other provision of
the U.S. Bankruptcy Code to file a claim for the full amount of the indebtedness
secured by the Mortgages or to require that all collateral shall continue to
secure all of the indebtedness owing to Lender in accordance with this
Agreement, the Note, the Mortgages or the other Loan Documents.

     Section 15.2.   ENVIRONMENTAL REMEDIATION/MONITORING EXCULPATION

     In the event that any Borrower fails to fund the Environmental Repairs
Account, if required to do so pursuant to Section 9.7 of this Agreement,
Borrower Principal shall deposit the required amount into the Environmental
Repairs Account within five (5) days prior written

                                     - 87 -
<Page>

notice from Lender. The obligation under this Section 15.2 shall be an
unconditional obligation of Borrower Principal, separate and apart from any and
all obligations of the Borrowers and/or Borrower Principal in the remainder of
this Agreement.

                                   ARTICLE 16.
                                     NOTICES

     Section 16.1.   NOTICES

     All notices, consents, approvals and requests required or permitted
hereunder or under any other Loan Document shall be given in writing and shall
be effective for all purposes if hand delivered or sent by (a) certified or
registered United States mail, postage prepaid, return receipt requested, (b)
expedited prepaid overnight delivery service, either commercial or United States
Postal Service, with proof of attempted delivery, or by (c) telecopier (with
answer back acknowledged provided an additional notice is given pursuant to
subsection (b) above), addressed as follows (or at such other address and Person
as shall be designated from time to time by any party hereto, as the case may
be, in a written notice to the other parties hereto in the manner provided for
in this Section):

     If to Lender:           Bank of America, N.A.
                             Capital Markets Servicing Group
                             900 West Trade Street
                             Suite 650
                             NC1-026-06-01
                             Charlotte, NC 28255
                             Attn: Servicing Manager
                             Telephone No: (866) 531-0957
                             Facsimile No.: (704) 317-4501

     With a copy to:         Bank of America Legal Department
                             GCIB/CMBS
                             NC1-007-20-01
                             100 North Tyron Street
                             Charlotte, North Carolina 28255-0001
                             Attention: Dean B. Roberson, Esq.
                             Facsimile No.: (704) 387-0922

     If to Borrowers:        c/o Inland Real Estate Investment Corporation
                             2901 Butterfield Road
                             Oakbrook, Illinois 60523
                             Attention: General Counsel
                             Facsimile No.: (630) 218-4961

     With a copy to:         Charles J. Benvenuto, P.C.
                             2901 Butterfield Road
                             Oakbrook, Illinois 60523
                             Attention: Charles J. Benvenuto, Esq.

                                     - 88 -
<Page>

                             Facsimile No.: (630) 571-2360

     If to Borrower
     Principal:              Inland Western Retail Real Estate Trust, Inc.
                             2901 Butterfield Road
                             Oakbrook, Illinois 60523
                             Attention: General Counsel
                             Facsimile No.: (630) 218-4961

     With a copy to:         Charles J. Benvenuto, P.C.
                             2901 Butterfield Road
                             Oakbrook, Illinois 60523
                             Attention: Charles J. Benvenuto, Esq.
                             Facsimile No.: (630) 571-2360

A notice shall be deemed to have been given: in the case of hand delivery, at
the time of delivery; in the case of registered or certified mail, when
delivered or the first attempted delivery on a Business Day; or in the case of
expedited prepaid delivery and telecopy, upon the first attempted delivery on a
Business Day.

                                   ARTICLE 17.
                               FURTHER ASSURANCES

     Section 17.1.   REPLACEMENT DOCUMENTS

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

     Section 17.2.   RECORDING OF MORTGAGE, ETC.

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

                                     - 89 -
<Page>

instrument of further assurance, and any modification or amendment of the
foregoing documents, except where prohibited by law so to do.

     Section 17.3.   FURTHER ACTS, ETC.

     Borrowers will, at the cost of Borrowers, and without expense to Lender,
do, execute, acknowledge and deliver all and every further acts, deeds,
conveyances, deeds of trust, mortgages, assignments, security agreements,
control agreements, notices of assignments, transfers and assurances as Lender
shall, from time to time, reasonably require, for the better assuring,
conveying, assigning, transferring, and confirming unto Lender the property and
rights hereby mortgaged, deeded, granted, bargained, sold, conveyed, confirmed,
pledged, assigned, warranted and transferred or intended now or hereafter so to
be, or which Borrowers may be or may hereafter become bound to convey or assign
to Lender, or for carrying out the intention or facilitating the performance of
the terms of this Agreement or for filing, registering or recording the
Mortgages, or for complying with all Legal Requirements. Borrowers, on demand,
will execute and deliver, and in the event any of them shall fail to so execute
and deliver, hereby authorize Lender to execute in the names of Borrowers or
without the signature of Borrowers to the extent Lender may lawfully do so, one
or more financing statements and financing statement amendments to evidence more
effectively, perfect and maintain the priority of the security interest of
Lender in the Properties. Borrowers grant to Lender an irrevocable power of
attorney coupled with an interest for the purpose of exercising and perfecting
any and all rights and remedies available to Lender at law and in equity,
including without limitation, such rights and remedies available to Lender
pursuant to this Section 17.3.

     Section 17.4.   CHANGES IN TAX, DEBT, CREDIT AND DOCUMENTARY STAMP LAWS

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

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

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

                                     - 90 -
<Page>

     Section 17.5.   EXPENSES

     Borrowers covenant and agree to pay or, if Borrowers fail to pay, to
reimburse, Lender upon receipt of written notice from Lender for all reasonable
costs and expenses (including reasonable, actual attorneys' fees and
disbursements and the allocated costs of internal legal services and all actual
disbursements of internal counsel) reasonably incurred by Lender in accordance
with this Agreement in connection with (a) the preparation, negotiation,
execution and delivery of this Agreement and the other Loan Documents and the
consummation of the transactions contemplated hereby and thereby and all the
costs of furnishing all opinions by counsel for Borrowers (including without
limitation any opinions requested by Lender as to any legal matters arising
under this Agreement or the other Loan Documents with respect to the
Properties); (b) Borrowers' ongoing performance of and compliance with
Borrowers' respective agreements and covenants contained in this Agreement and
the other Loan Documents on its part to be performed or complied with after the
Closing Date, including, without limitation, confirming compliance with
environmental and insurance requirements; (c) following a request by Borrowers,
Lender's ongoing performance and compliance with all agreements and conditions
contained in this Agreement and the other Loan Documents on its part to be
performed or complied with after the Closing Date; (d) the negotiation,
preparation, execution, delivery and administration of any consents, amendments,
waivers or other modifications to this Agreement and the other Loan Documents
and any other documents or matters requested by Lender; (e) securing Borrowers'
compliance with any requests made pursuant to the provisions of this Agreement;
(f) the filing and recording fees and expenses, title insurance and reasonable
fees and expenses of counsel for providing to Lender all required legal
opinions, and other similar expenses incurred in creating and perfecting the
Liens in favor of Lender pursuant to this Agreement and the other Loan
Documents; (g) enforcing or preserving any rights, in response to third party
claims or the prosecuting or defending of any action or proceeding or other
litigation, in each case against, under or affecting Borrowers, this Agreement,
the other Loan Documents, the Properties, or any other security given for the
Loan; and (h) enforcing any obligations of or collecting any payments due from
Borrowers under this Agreement, the other Loan Documents or with respect to the
Properties or in connection with any refinancing or restructuring of the credit
arrangements provided under this Agreement in the nature of a "work-out" or of
any insolvency or bankruptcy proceedings; provided, however, that Borrowers
shall not be liable for the payment of any such costs and expenses to the extent
the same arise by reason of the gross negligence, illegal acts, fraud or willful
misconduct of Lender.

                                   ARTICLE 18.
                                     WAIVERS

     Section 18.1.   REMEDIES CUMULATIVE; WAIVERS

     The rights, powers and remedies of Lender under this Agreement shall be
cumulative and not exclusive of any other right, power or remedy which Lender
may have against Borrowers or Borrower Principal pursuant to this Agreement or
the other Loan Documents, or existing at law or in equity or otherwise. Lender's
rights, powers and remedies may be pursued singularly, concurrently or
otherwise, at such time and in such order as Lender may determine in Lender's
sole discretion. No delay or omission to exercise any remedy, right or power
accruing upon an Event of Default shall impair any such remedy, right or power
or shall be construed as a waiver

                                     - 91 -
<Page>

thereof, but any such remedy, right or power may be exercised from time to time
and as often as may be deemed expedient. A waiver of one Default or Event of
Default with respect to Borrowers shall not be construed to be a waiver of any
subsequent Default or Event of Default by Borrowers or to impair any remedy,
right or power consequent thereon.

     Section 18.2.   MODIFICATION, WAIVER IN WRITING

     No modification, amendment, extension, discharge, termination or waiver of
any provision of this Agreement, or of the Note, or of any other Loan Document,
nor consent to any departure by Borrowers therefrom, shall in any event be
effective unless the same shall be in a writing signed by the party against whom
enforcement is sought, and then such waiver or consent shall be effective only
in the specific instance, and for the purpose, for which given. Except as
otherwise expressly provided herein, no notice to, or demand on Borrowers, shall
entitle Borrowers to any other or future notice or demand in the same, similar
or other circumstances.

     Section 18.3.   DELAY NOT A WAIVER

     Neither any failure nor any delay on the part of Lender in insisting upon
strict performance of any term, condition, covenant or agreement, or exercising
any right, power, remedy or privilege hereunder, or under the Note or under any
other Loan Document, or any other instrument given as security therefor, shall
operate as or constitute a waiver thereof, nor shall a single or partial
exercise thereof preclude any other future exercise, or the exercise of any
other right, power, remedy or privilege. In particular, and not by way of
limitation, by accepting payment after the due date of any amount payable under
this Agreement, the Note or any other Loan Document, Lender shall not be deemed
to have waived any right either to require prompt payment when due of all other
amounts due under this Agreement, the Note or the other Loan Documents, or to
declare a default for failure to effect prompt payment of any such other amount.

     Section 18.4.   TRIAL BY JURY

     BORROWERS, BORROWER PRINCIPAL AND LENDER EACH HEREBY AGREES NOT TO ELECT A
TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO
TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER
EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER
ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS
GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWERS, BORROWER PRINCIPAL AND LENDER, AND
IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH
THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH OF LENDER, BORROWER
PRINCIPAL AND BORROWERS IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN
ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWERS, BORROWER
PRINCIPAL AND LENDER.

                                     - 92 -
<Page>

     Section 18.5.   WAIVER OF NOTICE

     Borrowers shall not be entitled to any notices of any nature whatsoever
from Lender except with respect to matters for which this Agreement or the other
Loan Documents specifically and expressly provide for the giving of notice by
Lender to Borrowers and except with respect to matters for which Borrowers are
not, pursuant to applicable Legal Requirements, permitted to waive the giving of
notice. Borrowers hereby expressly waive the right to receive any notice from
Lender with respect to any matter for which this Agreement or the other Loan
Documents do not specifically and expressly provide for the giving of notice by
Lender to Borrowers.

     Section 18.6.   REMEDIES OF BORROWERS

     In the event that a claim or adjudication is made that Lender or its agents
have acted unreasonably or unreasonably delayed acting in any case where by law
or under this Agreement or the other Loan Documents, Lender or such agent, as
the case may be, has an obligation to act reasonably or promptly, Borrowers
agree that neither Lender nor its agents shall be liable for any monetary
damages, and Borrowers' sole remedies shall be limited to commencing an action
seeking injunctive relief or declaratory judgment. The parties hereto agree that
any action or proceeding to determine whether Lender has acted reasonably shall
be determined by an action seeking declaratory judgment. Lender agrees that, in
such event, it shall cooperate in expediting any action seeking injunctive
relief or declaratory judgment.

     Section 18.7.   WAIVER OF MARSHALLING OF ASSETS

     To the fullest extent permitted by law, each Borrower, for itself and its
successors and assigns, waives all rights to a marshalling of the assets of
Borrower, Borrower's partners, members and others with interests in Borrower,
and of the Individual Property owned by such Borrower, and agrees not to assert
any right under any laws pertaining to the marshalling of assets, the sale in
inverse order of alienation, homestead exemption, the administration of estates
of decedents, or any other matters whatsoever to defeat, reduce or affect the
right of Lender under the Loan Documents to a sale of such Individual Property
for the collection of the Debt without any prior or different resort for
collection or of the right of Lender to the payment of the Debt out of the net
proceeds of such Individual Property in preference to every other claimant
whatsoever.

     Section 18.8.   WAIVER OF STATUTE OF LIMITATIONS

     Borrowers hereby expressly waive and release, to the fullest extent
permitted by law, the pleading of any statute of limitations as a defense to
payment of the Debt or performance of their Other Obligations.

     Section 18.9.   WAIVER OF COUNTERCLAIM

     Borrowers hereby waive the right to assert a counterclaim, other than a
compulsory counterclaim, in any action or proceeding brought against them by
Lender or its agents.

                                     - 93 -
<Page>

                                   ARTICLE 19.
                                  GOVERNING LAW

     Section 19.1.   CHOICE OF LAW

     This Agreement shall be deemed to be a contract entered into pursuant to
the laws of the State of New York and shall in all respects be governed,
construed, applied and enforced in accordance with the laws of the State of
New York, provided however, (a) that with respect to the creation,
perfection, priority and enforcement of any Lien created by the Loan
Documents, and the determination of deficiency judgments, the laws of the
State where the Individual Property is located shall apply, and (b) with
respect to the security interest in each of the Reserve Accounts, the laws of
the State where each such account is located shall apply.

     Section 19.2.   SEVERABILITY

     Wherever possible, each provision of this Agreement shall be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be prohibited by or invalid under applicable
law, such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Agreement.

     Section 19.3.   PREFERENCES

     Lender shall have the continuing and exclusive right to apply or reverse
and reapply any and all payments by Borrowers to any portion of the obligations
of Borrowers hereunder. To the extent a Borrower makes a payment or payments to
Lender, which payment or proceeds or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to
be repaid to a trustee, receiver or any other party under any Creditors Rights
Laws, state or federal law, common law or equitable cause, then, to the extent
of such payment or proceeds received, the obligations hereunder or part thereof
intended to be satisfied shall be revived and continue in full force and effect,
as if such payment or proceeds had not been received by Lender.

                                   ARTICLE 20.
                                  MISCELLANEOUS

     Section 20.1.   SURVIVAL

     This Agreement and all covenants, agreements, representations and
warranties made herein and in the certificates delivered pursuant hereto shall
survive the making by Lender of the Loan and the execution and delivery to
Lender of the Note, and shall continue in full force and effect so long as all
or any of the Debt is outstanding and unpaid unless a longer period is expressly
set forth herein or in the other Loan Documents. Whenever in this Agreement any
of the parties hereto is referred to, such reference shall be deemed to include
the legal representatives, successors and assigns of such party. All covenants,
promises and agreements in this Agreement, by or on behalf of Borrowers, shall
inure to the benefit of the legal representatives, successors and assigns of
Lender.

                                     - 94 -
<Page>

     Section 20.2.   LENDER'S DISCRETION

     Whenever pursuant to this Agreement, Lender exercises any right given to it
to approve or disapprove, or any arrangement or term is to be satisfactory to
Lender, the decision of Lender to approve or disapprove or to decide whether
arrangements or terms are satisfactory or not satisfactory shall (except as is
otherwise specifically herein provided) be in the sole discretion of Lender and
shall be final and conclusive.

     Section 20.3.   HEADINGS

     The Article and/or Section headings and the Table of Contents in this
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose.

     Section 20.4.   COST OF ENFORCEMENT

     In the event (a) that a Mortgage is foreclosed in whole or in part, (b) of
the bankruptcy, insolvency, rehabilitation or other similar proceeding in
respect of any Borrower or any of its constituent Persons or an assignment by
any Borrower or any of its constituent Persons for the benefit of its creditors,
or (c) Lender exercises any of its other remedies under this Agreement or any of
the other Loan Documents, Borrowers shall be chargeable with and agree to pay
all costs of collection and defense, including attorneys' fees and costs,
incurred by Lender or Borrowers in connection therewith and in connection with
any appellate proceeding or post-judgment action involved therein, together with
all required service or use taxes.

     Section 20.5.   SCHEDULES INCORPORATED

     The Schedules annexed hereto are hereby incorporated herein as a part of
this Agreement with the same effect as if set forth in the body hereof.

     Section 20.6.   OFFSETS, COUNTERCLAIMS AND DEFENSES

     Any assignee of Lender's interest in and to this Agreement, the Note and
the other Loan Documents shall take the same free and clear of all offsets,
counterclaims or defenses which are unrelated to such documents which Borrowers
may otherwise have against any assignor of such documents, and no such unrelated
counterclaim or defense shall be interposed or asserted by Borrowers in any
action or proceeding brought by any such assignee upon such documents and any
such right to interpose or assert any such unrelated offset, counterclaim or
defense in any such action or proceeding is hereby expressly waived by
Borrowers.

     Section 20.7.   NO JOINT VENTURE OR PARTNERSHIP; NO THIRD PARTY
                     BENEFICIARIES

     (a)     Borrowers and Lender intend that the relationships created
hereunder and under the other Loan Documents be solely that of borrowers and
lender. Nothing herein or therein is intended to create a joint venture,
partnership, tenancy-in-common, or joint tenancy relationship between Borrowers
and Lender nor to grant Lender any interest in any of the Properties other than
that of mortgagee, beneficiary or lender.

                                     - 95 -
<Page>

     (b)     This Agreement and the other Loan Documents are solely for the
benefit of Lender and Borrowers and nothing contained in this Agreement or the
other Loan Documents shall be deemed to confer upon anyone other than Lender and
Borrowers any right to insist upon or to enforce the performance or observance
of any of the obligations contained herein or therein. All conditions to the
obligations of Lender to make the Loan hereunder are imposed solely and
exclusively for the benefit of Lender and no other Person shall have standing to
require satisfaction of such conditions in accordance with their terms or be
entitled to assume that Lender will refuse to make the Loan in the absence of
strict compliance with any or all thereof and no other Person shall under any
circumstances be deemed to be a beneficiary of such conditions, any or all of
which may be freely waived in whole or in part by Lender if, in Lender's sole
discretion, Lender deems it advisable or desirable to do so.

     (c)     The general partners, members, principals and (if a Borrower is a
trust) beneficial owners of Borrowers are experienced in the ownership and
operation of properties similar to the Properties, and Borrower and Lender are
relying solely upon such expertise and business plan in connection with the
ownership and operation of the Properties. Borrowers are not relying on Lender's
expertise, business acumen or advice in connection with the Properties.

     (d)     Notwithstanding anything to the contrary contained herein, Lender
is not undertaking the performance of (i) any obligations under the Leases; or
(ii) any obligations with respect to such agreements, contracts, certificates,
instruments, franchises, permits, trademarks, licenses and other documents.

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

     (f)     Borrowers recognize and acknowledge that in accepting this
Agreement, the Note, the Mortgages and the other Loan Documents, Lender is
expressly and primarily relying on the truth and accuracy of the representations
and warranties set forth in Article 4 of this Agreement without any obligation
to investigate the Properties or any of them and notwithstanding any
investigation of the Properties or any of them by Lender; that such reliance
existed on the part of Lender prior to the date hereof, that the warranties and
representations are a material inducement to Lender in making the Loan; and that
Lender would not be willing to make the Loan and accept this Agreement, the
Note, the Mortgages and the other Loan Documents in the absence of the
warranties and representations as set forth in Article 4 of this Agreement.

     Section 20.8.   PUBLICITY

     All news releases, publicity or advertising by Borrowers or their
Affiliates through any media intended to reach the general public which refers
to the Loan, Lender, Banc of America Securities LLC, or any of their Affiliates
shall be subject to the prior written approval of Lender, not to be unreasonably
withheld. Lender shall be permitted to make any news, releases, publicity

                                     - 96 -
<Page>

or advertising by Lender or its Affiliates through any media intended to reach
the general public which refers to the Loan, the Properties, Borrowers, Borrower
Principal and their respective Affiliates without the approval of Borrowers or
any such Persons. Borrowers also agree that Lender may share any information
pertaining to the Loan with Bank of America Corporation, including its bank
subsidiaries, Banc of America Securities LLC and any other Affiliates of the
foregoing, in connection with the sale or transfer of the Loan or any
Participations and/or Securities created.

     Section 20.9.   CONFLICT; CONSTRUCTION OF DOCUMENTS; RELIANCE

     In the event of any conflict between the provisions of this Agreement and
any of the other Loan Documents, the provisions of this Agreement shall control.
The parties hereto acknowledge that they were represented by competent counsel
in connection with the negotiation, drafting and execution of the Loan Documents
and that such Loan Documents shall not be subject to the principle of construing
their meaning against the party which drafted same. Borrowers acknowledge that,
with respect to the Loan, Borrowers shall rely solely on their own judgment and
advisors in entering into the Loan without relying in any manner on any
statements, representations or recommendations of Lender or any parent,
subsidiary or Affiliate of Lender. Lender shall not be subject to any limitation
whatsoever in the exercise of any rights or remedies available to it under any
of the Loan Documents or any other agreements or instruments which govern the
Loan by virtue of the ownership by it or any parent, subsidiary or Affiliate of
Lender of any equity interest any of them may acquire in any Borrower, and
Borrowers hereby irrevocably waive the right to raise any defense or take any
action on the basis of the foregoing with respect to Lender's exercise of any
such rights or remedies. Borrowers acknowledge that Lender engages in the
business of real estate financings and other real estate transactions and
investments which may be viewed as adverse to or competitive with the business
of Borrowers or their Affiliates.

     Section 20.10.  ENTIRE AGREEMENT

     This Agreement and the other Loan Documents contain the entire agreement of
the parties hereto and thereto in respect of the transactions contemplated
hereby and thereby, and all prior agreements among or between such parties,
whether oral or written between Borrowers and Lender are superseded by the terms
of this Agreement and the other Loan Documents.

     Section 20.11.  TAX DISCLOSURE

     Notwithstanding anything herein to the contrary, except as reasonably
necessary to comply with applicable securities laws, each party (and each
employee, representative or other agent of each party) hereto may disclose to
any and all persons, without limitation of any kind, any information with
respect to the United States federal income "tax treatment" and "tax structure"
(in each case, within the meaning of Treasury Regulation Section 1.6011-4) of
the transactions contemplated hereby and all materials of any kind (including
opinions or other tax analyses) that are provided to such parties (or their
representatives) relating to such tax treatment and tax structure; PROVIDED that
with respect to any document or similar item that in either case contains
information concerning the tax treatment or tax structure of the transaction as
well as other information, this sentence shall only apply to such portions of
the document or similar item

                                     - 97 -
<Page>

that relate to the United States federal income tax treatment or tax structure
of the transactions contemplated hereby.

     Section 20.12.  LENDER'S CONSENT TO EASEMENTS AND OTHER DOCUMENTS.

     Lender shall not unreasonably withhold its consent to Borrowers granting
easements, restrictions and rights of way in the ordinary course of business for
access, parking, water and sewer lines, telephone and telegraph lines, electric
lines and other utilities or for other similar purposes, provided that no such
grant shall, in Lender's judgment, materially impair the utility and operation
of any of the Properties or materially adversely affect the value thereof. If
any Borrower shall receive any consideration in connection with any of said
described grants such Borrower shall have the right to use any such proceeds in
connection with any alterations performed in connection therewith or required
thereby. In connection with any grant permitted in this Section 20.12, with the
exception of routine easements for installation or location of utilities that
would not materially adversely affect the value of the Individual Property
subject thereto in the reasonable judgment of the Borrower owning such
Individual Property, the Borrower owning such Individual Property shall submit a
draft of the applicable document to Lender for Lender's review and if Lender
approves the document, Lender shall execute and deliver any instrument
reasonably necessary or appropriate to evidence its consent thereto or to
subordinate the Lien of the Mortgage on such Individual Property to such
easement, restriction, covenant, reservation, right or other similar grant.
Borrowers shall pay on demand all of Lender's expenses, including reasonable,
attorneys' fees and costs, actually incurred by Lender in reviewing such
documents and consenting to or refusing to consent to the same.

     Section 20.13.  CROSS-DEFAULT; CROSS-COLLATERALIZATION; WAIVERS

     (a)     Each Borrower acknowledges that Lender has made the Loan to
Borrowers upon the security of the collective interest of all the Borrowers in
all the Individual Properties and in reliance upon the aggregate of the
Individual Properties taken together being of greater value as collateral
security than the sum of each Individual Property taken separately. Borrowers
agree that the Mortgages as provided for therein are and will be
cross-collateralized (to the extent provided therein) and cross-defaulted with
each other so that (i) an Event of Default under any of the Mortgages shall
constitute an Event of Default under each of the other Mortgages which secure
the Note; (ii) an Event of Default under the Note or this Agreement shall
constitute an Event of Default under each Mortgage; (iii) each Mortgage shall
constitute security for the Note; and (iv) such cross-collateralization shall in
no event be deemed by any Borrower to constitute a fraudulent conveyance.

     (b)     To the extent permitted under applicable law, each Borrower waives:

             (i)     any right to require Lender to proceed against any other
     Borrower or any other person or to proceed against or exhaust any security
     held by Lender at any time or to pursue any other remedy available to
     Lender before proceeding against such Borrower;

             (ii)    the defense of the statute of limitations in any action
     against any other Borrower or for the collection of any indebtedness or the
     performance of any obligation under the Loan;

                                     - 98 -
<Page>

             (iii)   any defense based upon any legal disability or other
     defense of any other Borrower, any guarantor of any other Person or by
     reason of the cessation or limitation of the liability of any other
     Borrower or any guarantor from any cause other than full payment of all
     sums payable under the Note, this Agreement and any of the other Loan
     Documents;

             (iv)    any defense based upon any lack of authority of the
     officers, directors, partners, managing members or agents acting or
     purporting to act on behalf of any other Borrower or any principal of any
     other Borrower or any defect in the formation of any other Borrower or any
     principal of any other Borrower;

             (v)     any defense based upon any statute or rule of law which
     provides that the obligation of a surety must be neither larger in amount
     nor in any other respects more burdensome than that of a principal;

             (vi)    any defense based upon any failure by Lender to obtain
     collateral for the indebtedness or failure by Lender to perfect a lien on
     any collateral;

             (vii)   presentment, demand, protest and notice of any kind, except
     as otherwise set forth in the Loan Documents;

             (viii)  any defense based upon any failure of Lender to give notice
     of sale or other disposition of any collateral to any other Borrower or to
     any other Person or entity or any defect in any notice that may be given in
     connection with any sale or disposition of any collateral;

             (ix)    any defense based upon any failure of Lender to comply with
     applicable laws in connection with the sale or other disposition of any
     collateral, including, without limitation, any failure of Lender to conduct
     a commercially reasonable sale or other disposition of any collateral;

             (x)     any defense based upon any election by Lender, in any
     bankruptcy proceeding, of the application or non-application of Section
     1111(b)(2) of the Bankruptcy Code or any successor statute;

             (xi)    any defense based upon any use of cash collateral under
     Section 363 of the Bankruptcy Code or any successor;

             (xii)   any defense based upon any agreement or stipulation entered
     into by Lender with respect to the provision of adequate protection in any
     bankruptcy proceeding;

             (xiii)  any defense based upon any borrowing or any grant of a
     security interest under Section 364 of the Bankruptcy Code or any successor
     statute;

             (xiv)   any defense based upon the avoidance of any security
     interest in favor of Lender for any reason;

                                     - 99 -
<Page>

             (xv)    any defense based upon any bankruptcy, insolvency,
     reorganization, arrangement, readjustment of debt, liquidation or
     dissolution proceeding, including any discharge of, or bar or stay against
     collecting, all or any of the obligations evidenced by the Note or owing
     under any of the Loan Documents; and

             (xvi)   any defense or benefit based upon Borrower's, or any other
     party's designation of the portion of any obligation secured by the
     applicable Mortgage to be satisfied by any payment for any other Borrower
     or any such party.

     (c)     To the extent permitted by applicable law, each Borrower waives:

             (i)     all rights and defenses arising out of an election of
     remedies by Lender even though the election of remedies, such as
     non-judicial foreclosure, with respect to security for the Loan or any
     other amounts owing under the Loan Documents, has extinguished Borrower's
     rights of subrogation and reimbursement against any other Borrower;

             (ii)    all rights and defenses that Borrower may have because any
     of the Debt is secured by real property, so that, among other things,
     Lender may collect from Borrower without first foreclosing on any real or
     personal property collateral pledged by any other Borrower; if Lender
     forecloses on any real property collateral pledged by any other Borrower,
     the amount of the Debt may be reduced only by the price for which that
     collateral is sold at the foreclosure sale even if the collateral is worth
     more than the sale price. This is an unconditional and irrevocable waiver
     of any rights and defenses Borrower may have because any of the Debt in
     secured by real property; and

             (iii)   any claim or other right which Borrower may now have or
     hereafter acquire against any other Borrower or any other Person that
     arises from the existence or performance of any obligations under the Note,
     this Agreement, the Mortgages or the other Loan Documents, including,
     without limitation, any right of subrogation, reimbursement, exoneration,
     contribution or indemnification, or any right to participate in any claim
     of remedy of Lender against any other Borrower or any collateral security,
     therefore, whether or not such claim, remedy or right arises in equity or
     under contract, statute or common law.

     Section 20.14.  INTENTIONALLY DELETED.

                                     - 100 -
<Page>

             IN WITNESS WHEREOF, each Borrower has duly executed this Loan
Agreement as of the day and year first above written.

                                  BORROWER:

                                  INLAND WESTERN BAY SHORE GARDINER, L.L.C.,
                                  a Delaware limited liability company

                                  By: INLAND WESTERN RETAIL REAL ESTATE
                                  TRUST, INC., a Maryland corporation, its sole
                                  member

                                  By:    /s/ Valerie Medina
                                      ---------------------------------
                                  Name:  Valerie Medina
                                        -------------------------------
                                  Title: Asst. Secretary
                                        -------------------------------

                     [SIGNATURES CONTINUE ON FOLLOWING PAGE]

<Page>

                                  INLAND WESTERN HARTFORD NEW PARK, L.L.C., a
                                  Delaware limited liability company

                                  By: INLAND WESTERN HARTFORD NEW PARK
                                  MEMBER, L.L.C., a Delaware limited liability
                                  company, its sole member,

                                  By: INLAND WESTERN HARTFORD NEW PARK
                                  MEMBER II, L.L.C., a Delaware limited
                                  liability company, its Manager,

                                  By: INLAND WESTERN RETAIL REAL ESTATE
                                  TRUST, INC., a Maryland corporation, its sole
                                  member

                                  By:    /s/ Valerie Medina
                                      ---------------------------------
                                  Name:  Valerie Medina
                                        -------------------------------
                                  Title: Asst. Secretary
                                        -------------------------------

                     [SIGNATURES CONTINUE ON FOLLOWING PAGE]

<Page>

                                  INLAND WESTERN ORANGE 53 BOSTON, L.L.C., a
                                  Delaware limited liability company

                                  By: INLAND WESTERN RETAIL REAL ESTATE
                                  TRUST, INC., a Maryland corporation, its sole
                                  member

                                  By:    /s/ Valerie Medina
                                      ---------------------------------
                                  Name:  Valerie Medina
                                        -------------------------------
                                  Title: Asst. Secretary
                                        -------------------------------

                     [SIGNATURES CONTINUE ON FOLLOWING PAGE]

<Page>

                                  INLAND WESTERN ORANGE 440 BOSTON, L.L.C., a
                                  Delaware limited liability company

                                  By: INLAND WESTERN ORANGE 440 BOSTON
                                  MEMBER, L.L.C., a Delaware limited liability
                                  company, its sole member

                                  By: INLAND WESTERN ORANGE 440 BOSTON
                                  MEMBER II, L.L.C., a Delaware limited
                                  liability company, its Manager

                                  By: INLAND WESTERN RETAIL REAL ESTATE
                                  TRUST, INC., a Maryland corporation, its sole
                                  member

                                  By:    /s/ Valerie Medina
                                      ---------------------------------
                                  Name:  Valerie Medina
                                        -------------------------------
                                  Title: Asst. Secretary
                                        -------------------------------

                     [SIGNATURES CONTINUE ON FOLLOWING PAGE]

<Page>

                                  INLAND WESTERN PITTSBURGH WILLIAM PENN,
                                  L.P., an Illinois limited partnership

                                  By: INLAND WESTERN PITTSBURGH WILLIAM
                                  PENN GP, L.L.C. a Delaware limited liability
                                  company, its general partner

                                  By: INLAND WESTERN PITTSBURGH WILLIAM PENN
                                  PARTNER, L.P., a Delaware limited partnership,
                                  its sole member,

                                  By: INLAND WESTERN RETAIL REAL ESTATE TRUST,
                                  INC., a Maryland corporation, its general
                                  partner

                                  By:    /s/ Valerie Medina
                                      ---------------------------------
                                  Name:  Valerie Medina
                                        -------------------------------
                                  Title: Asst. Secretary
                                        -------------------------------

                     [SIGNATURES CONTINUE ON FOLLOWING PAGE]

<Page>

                                  INLAND WESTERN POUGHKEEPSIE MID-HUDSON,
                                  L.L.C., a Delaware limited liability company

                                  By: INLAND WESTERN POUGHKEEPSIE MID-HUDSON
                                  MEMBER, L.L.C., a Delaware limited liability
                                  company, its sole member,

                                  By: INLAND WESTERN POUGHKEEPSIE MID-HUDSON
                                  MEMBER II, L.L.C., a Delaware limited
                                  liability company, its Manager

                                  By: INLAND WESTERN RETAIL REAL ESTATE TRUST,
                                  INC., a Maryland corporation, its sole member

                                  By:    /s/ Valerie Medina
                                      ---------------------------------
                                  Name:  Valerie Medina
                                        -------------------------------
                                  Title: Asst. Secretary
                                        -------------------------------

                     [SIGNATURES CONTINUE ON FOLLOWING PAGE]

<Page>

                                  INLAND WESTERN SARATOGA SPRINGS WILTON,
                                  L.L.C., a Delaware limited liability company

                                  By: INLAND WESTERN SARATOGA SPRINGS WILTON
                                  MEMBER, L.L.C., a Delaware limited liability
                                  company, its sole member,

                                  By: INLAND WESTERN SARATOGA SPRINGS WILTON
                                  MEMBER II, L.L.C., a Delaware limited
                                  liability company, its Manager

                                  By: INLAND WESTERN RETAIL REAL ESTATE TRUST,
                                  INC., a Maryland corporation, its sole member

                                  By:    /s/ Valerie Medina
                                      ---------------------------------
                                  Name:  Valerie Medina
                                        -------------------------------
                                  Title: Asst. Secretary
                                        -------------------------------

                     [SIGNATURES CONTINUE ON FOLLOWING PAGE]

<Page>

                                  INLAND WESTERN WEST MIFFLIN CENTURY III, L.P.,
                                  an Illinois limited partnership

                                  By: INLAND WESTERN WEST MIFFLIN CENTURY III
                                  GP, L.L.C., a Delaware limited liability
                                  company, its general partner

                                  By: INLAND WESTERN WEST MIFFLIN CENTURY III
                                  PARTNER, L.P., a Delaware limited partnership,
                                  its sole Member

                                  By: INLAND WESTERN RETAIL REAL ESTATE TRUST,
                                  INC., a Maryland corporation, its general
                                  partner

                                  By:    /s/ Valerie Medina
                                      ---------------------------------
                                  Name:  Valerie Medina
                                        -------------------------------
                                  Title: Asst. Secretary
                                        -------------------------------

                     [SIGNATURES CONTINUE ON FOLLOWING PAGE]

<Page>

                                  INLAND WESTERN WESTBURY MERCHANTS PLAZA,
                                  L.L.C., a Delaware limited liability company

                                  By: INLAND WESTERN RETAIL REAL ESTATE TRUST,
                                  INC., a Maryland corporation, its sole member

                                  By:    /s/ Valerie Medina
                                      ---------------------------------
                                  Name:  Valerie Medina
                                        -------------------------------
                                  Title: Asst. Secretary
                                        -------------------------------

                     [SIGNATURES CONTINUE ON FOLLOWING PAGE]

<Page>

                                  INLAND WESTERN WILLISTON MAPLE TREE, L.L.C.,
                                  a Delaware limited liability company

                                  By: INLAND WESTERN RETAIL REAL ESTATE TRUST,
                                  INC., a Maryland corporation, its sole member

                                  By:    /s/ Valerie Medina
                                      ---------------------------------
                                  Name:  Valerie Medina
                                        -------------------------------
                                  Title: Asst. Secretary
                                        -------------------------------

                     [SIGNATURES CONTINUE ON FOLLOWING PAGE]

<Page>

                                  BORROWER PRINCIPAL:

                                  Acknowledged and agreed to with respect to its
                                  obligations set forth in Article 4,
                                  Section 12.6, Article 13, Article 15 and
                                  Article 18 hereof:

                                  INLAND WESTERN RETAIL REAL ESTATE TRUST, INC.,
                                  a Maryland corporation

                                  By:    /s/ Valerie Medina
                                      ---------------------------------
                                  Name:  Valerie Medina
                                        -------------------------------
                                  Title: Asst. Secretary
                                        -------------------------------

                     [SIGNATURES CONTINUE ON FOLLOWING PAGE]

<Page>

                                    EXHIBIT A

                       BORROWER EQUITY OWNERSHIP STRUCTURE

<Page>

                                   SCHEDULE I

                                  GROUND LEASES

<Page>

                                   SCHEDULE II

                             ALLOCATED LOAN AMOUNTS

<Table>
<Caption>
Name of Borrower                              Individual Property                    Allocated Loan Amount
----------------                              -------------------                    ---------------------
<S>                                           <C>                                      <C>
Inland Western Orange 53                      Golfland Plaza                           $      8,206,000
Boston, L.L.C.                                53 Boston Post Road,
                                              Orange, CT 06477

Inland Western Westbury                       Bed, Bath & Beyond Plaza                 $      9,818,000
Merchants Plaza, L.L.C.                       950 Merchants Concourse,
                                              Westbury, NY 11590

Inland Western Hartford New                   Crown Plaza                              $      10,050,000
Park, L.L.C.                                  300 New Park Avenue,
                                              Hartford, CT 06106

Inland Western Pittsburgh                     Home Depot Center                        $      10,446,000
William Penn, L.P.                            3550 William Penn Highway,
                                              Pittsburgh, PA 15235

Inland Western West Mifflin                   Century III Plaza                        $      25,313,000
Century III, L.P.                             9971 Mountain View Drive,
                                              West Mifflin, PA 15122

Inland Western Bay Shore                      Gardiner Manor Mall                      $      38,484,000
Gardiner, L.L.C.                              838 Sunrise Highway,
                                              Bay Shore, NY 11706

Inland Western Orange 440                     Home Depot Plaza                         $      16,734,000
Boston, L.L.C.                                440 Boston Post Road,
                                              Orange, CT 06477

Inland Western Poughkeepsie                   Mid-Hudson Center                        $      25,156,000
Mid-Hudson, L.L.C.                            3470 North Road,
                                              Poughkeepsie, NY 12064

Inland Western Saratoga                       Wilton Square                            $      27,825,000
Springs Wilton, L.L.C.                        3049 Route 50
                                              Saratoga Springs, NY 12866

Inland Western Williston                      Maple Tree Plaza                         $      60,376,000
Maple Tree, L.L.C.                            100 Syracuse Street,
                                              Williston, VT 05495
</Table>

<Page>

                                  SCHEDULE III

                                REQUIRED REPAIRS

<Table>
<Caption>
NAME OF PROPERTY               3RD PARTY INSPECTOR     DATE OF INSPECTION
-------------------------------------------------------------------------
<S>                            <C>                         <C>
Bed Bath & Beyond Plaza        ATC Associates              5/27/2005

Crown Plaza                    Reeves Consulting           5/25/2005

Golfland Plaza                 Reeves Consulting           5/25/2005

Home Depot Center              Reeves Consulting           5/25/2005

Mid-Hudson Center              EBI Consulting              3/24/2005

Wilton Square                  EBI Consulting              4/04/2005

Century III Plaza              Reeves Consulting           5/25/2005

Gardiner Manor Mall            EBI Consulting              4/05/2005

Home Depot Plaza               Reeves Consulting           5/25/2005

Maple Tree Place               ATC Associates              5/27/2005
</Table>

<Page>

                                   SCHEDULE IV

                              REQUIRED REPLACEMENTS

<Table>
<Caption>
REPLACEMENT                                             REPLACEMENTAMOUNT
-----------                                             -----------------
<S>                                                     <C>

</Table>

No additional Required Replacements other than as described in the Physical
Conditions Reports referenced in Article 9 hereto.

<Page>

                                   SCHEDULE V

          ENVIRONMENTAL REMEDIATION/MONITORING WORK -- PHASE I REPORTS

1) Mid-Hudson Shopping Center, Poughkeepsie, NY, Phase I Environmental
Assessment prepared by ECS Illinois, LLC on May 31, 2005.

2) Home Depot Plaza, Orange, CT, Phase I Environmental Assessment prepared by
Environmental Waste Management Associates, LLC on June 17, 2005.

3) Crown Plaza, Hartford, CT, Phase I Environmental Assessment prepared by ECS
Illinois, LLC on June 3, 2005.

                                      - 2 -<Page>

                                                                  Exhibit 10.515

                                    GUARANTY

     THIS AGREEMENT OF GUARANTY ("Guaranty") made as of this 19 day of July,
2005 by Inland Western Retail Real Estate Trust, Inc., a Maryland corporation,
having an office at 2901 Butterfield Road, Oak Brook, Illinois 60523 (together
with its successors and assigns, "Guarantor") for the benefit of Bank of
America, N.A., a national banking association, having an address at Bank of
America Corporate Center, 214 North Tryon Street, Charlotte, North Carolina
28255 (together with its successors and/or assigns, "Lender").

                                    RECITALS

     The Affiliates of Guarantor listed on Schedule A attached hereto (such
Affiliates, together with their successors and/or assigns, collectively
"Borrowers") have submitted to Lender an application for a Loan.

     Lender is unwilling to make the Loan to Borrowers unless Guarantor
guarantees payment and performance of certain obligations of Borrowers as
hereafter set forth.

     All initial capitalized terms used and not defined herein shall have the
meanings set forth in the Loan Agreement of even date herewith between Lender
and Borrowers.

     NOW, THEREFORE, to induce Lender to make the Loan to Borrowers and for
other good and valuable consideration, Guarantor absolutely and unconditionally
guarantees to Lender the prompt payment and performance of any and all
construction obligations, Tenant improvement costs, leasing commissions and
other unfunded contractual obligations of Borrowers, or any of them, pursuant to
Leases and other agreements with any Tenants of the Individual Properties.

     Guarantor hereby consents that Lender may, at any time or from time to
time, either before or after the Maturity Date, without notice to or further
consent of Guarantor, extend the Maturity Date, exchange, release, substitute
any collateral for, renew or extend the time of payment of, exchange, release,
substitute or surrender any collateral for, or increase the Note Rate on the
Debt and may also make any agreement with the Borrowers, with any one Borrower
or more than one of the Borrowers, or with any other party to or Person liable
for payment of the Debt for the extension, renewal, payment, compromise,
discharge or release thereof in whole or in part, or for any modification of the
Loan Agreement or any or all of the other Loan Documents without in any way
impairing or affecting this Guaranty.

     Guarantor hereby acknowledges that it has derived or expects to derive a
financial or other advantage from the Loan to Borrowers.

     The Guarantor hereby waives notice of the acceptance of this Guaranty and
of the making of the Loan, presentment to or demand payment from any Person
liable for payment of the Debt,

<Page>

protest, notice of presentment, non-payment or protest and notice of any sale of
collateral security for the Debt or any default by Borrowers.

     This Guaranty is a continuing guaranty and shall remain in full force and
effect and be binding on Guarantor, its successors and assigns.

     This Guaranty is a guarantee of payment and not of collection, and Lender
shall be under no obligation to take any action against Borrowers or any other
Person or resort to any security held by Lender to secure payment of the Debt as
a condition precedent to Guarantor's obligation to perform its obligations
hereunder. Guarantor waives any right to interpose any defense, counterclaim or
offset of any nature or description which it may have or which may exist between
and among Lender, Borrowers and/or Guarantor.

     Guarantor hereby waives any right to be subrogated to the rights of Lender
with respect to the Loan until such time as Lender shall have received payment
in full of the Debt, and Guarantor agrees that it will not institute or take any
action seeking reimbursement against Borrowers until Lender shall have received
payment in full of the Debt.

     No failure on Lender's part to exercise, and no delay in exercising, any
right, remedy or power hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise by Lender of any right, remedy or power hereunder
preclude any other or future exercise of any other right, remedy or power.

     GUARANTOR AND LENDER HEREBY WAIVE AND AGREE TO WAIVE THE RIGHT TO TRIAL BY
JURY IN ANY ACTION, COUNTERCLAIM OR PROCEEDING INSTITUTED WITH RESPECT TO THIS
GUARANTY.

     Each and every right, remedy and power hereby granted to Lender or allowed
to it by law shall be cumulative and not exclusive of any other and may be
exercised by Lender at any time and from time to time.

     This Guaranty shall in all respects be governed, construed, applied and
enforced in accordance with the laws of the State of New York.

                         [NO FURTHER TEXT ON THIS PAGE]

<Page>

IN WITNESS WHEREOF, this Guaranty has been executed by Guarantor on the day and
year first above written.

                                             GUARANTOR:

                                             INLAND WESTERN RETAIL REAL ESTATE
                                             TRUST, INC., a Maryland corporation

                                             By:        /s/ Valerie Medina
                                                -------------------------------
                                                 Name:  Valerie Medina
                                                       -------------------------
                                                 Title: Asst. Secretary
                                                       -------------------------

<Page>

                                   SCHEDULE A

Inland Western Bay Shore Gardiner, L.L.C., a Delaware limited liability
company,
Inland Western Poughkeepsie Mid-Hudson, L.L.C., a Delaware limited liability
company,
Inland Western Saratoga Springs Wilton, L.L.C., a Delaware limited liability
company,
Inland Western Westbury Merchants Plaza, L.L.C., a Delaware limited liability
company,
Inland Western Orange 440 Boston, L.L.C., a Delaware limited liability company,
Inland Western Orange 53 Boston, L.L.C., a Delaware limited liability company,
Inland Western Hartford New Park, L.L.C., a Delaware limited liability company,
Inland Western Williston Maple Tree, L.L.C., a Delaware limited liability
company,
Inland Western West Mifflin Century III DST, a Delaware statutory trust and
Inland Western Pittsburgh William Penn DST, a Delaware statutory trust.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]