Document:

exv10w19

 

Exhibit 10.19

CONTRIBUTION AGREEMENT

AMONG

NEW YORK STATE COMMON RETIREMENT FUND

AND

LIBERTY PROPERTY LIMITED PARTNERSHIP

AND

LIBERTY WASHINGTON, LP

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	1.	 	CONTRIBUTION OF OWNERSHIP INTERESTS
	 	 	1	 
	 	 	1.1 Description of the Ownership Interests
	 	 	1	 
	 	 	1.2 Description of the Property
	 	 	1	 
	 	 	1.3 Schedule of Parcels
	 	 	2	 
	 	 	1.4 Value of the Interests
	 	 	2	 
	2.	 	FORMATION OF THE COMPANY; CONTRIBUTIONS; CLOSING PROCEDURES
	 	 	2	 
	 	 	2.1 Contribution Procedures
	 	 	2	 
	 	 	2.2 Tax Treatment
	 	 	3	 
	3.	 	PRE-CLOSING MATTERS
	 	 	3	 
	 	 	3.1 Information Provided to NYSCRF
	 	 	3	 
	 	 	3.2 Additional Service Contracts
	 	 	3	 
	 	 	3.3 Additional Tenant Leases
	 	 	3	 
	 	 	3.4 Existing Loans
	 	 	3	 
	 	 	3.5 Estoppel Letters
	 	 	4	 
	4.	 	REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 	4	 
	 	 	4.1 Liberty’s Representations and Warranties
	 	 	4	 
	 	 	4.2 Delivery of Documents
	 	 	8	 
	 	 	4.3 Knowledge Defined
	 	 	8	 
	 	 	4.4 Liberty’s Covenants
	 	 	8	 
	 	 	4.5 Indemnity For Breach by Liberty
	 	 	10	 
	 	 	4.6 NYSCRF’s Representations and Warranties
	 	 	10	 
	5.	 	CONDITIONS OF CLOSING
	 	 	11	 
	 	 	5.1 Closing Conditions For NYSCRF’s Benefit; Removal of a Parcel
	 	 	11	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	5.2 Conditions Precedent for Liberty’s Benefit
	 	 	12	 
	6.	 	CLOSING
	 	 	13	 
	 	 	6.1 Closing
	 	 	13	 
	 	 	6.2 Title Insurance
	 	 	15	 
	 	 	6.3 Delivery of Documents, Possession, Keys and Other Items
	 	 	15	 
	 	 	6.4 Closing Costs; Transfer Taxes
	 	 	15	 
	7.	 	PRORATIONS
	 	 	16	 
	 	 	7.1 Initial Proration
	 	 	16	 
	 	 	7.2 Adjustments; Reproration
	 	 	17	 
	 	 	7.3 Indemnity
	 	 	17	 
	8.	 	SURVIVAL
	 	 	18	 
	 	 	8.1 Survival
	 	 	18	 
	9.	 	COMMISSIONS
	 	 	18	 
	 	 	9.1 Liberty’s Indemnity
	 	 	18	 
	 	 	9.2 NYSCRF’s Indemnity
	 	 	18	 
	10.	 	FURTHER INSTRUMENTS
	 	 	19	 
	11.	 	TERMINATION AND REMEDIES
	 	 	19	 
	 	 	11.1 Liberty’s Default
	 	 	19	 
	 	 	11.2 NYSCRF’s Default
	 	 	19	 
	 	 	11.3 Costs and Expenses; Limitation
	 	 	20	 
	 	 	11.4 Limitation of NYSCRF Liability
	 	 	20	 
	12.	 	RISK OF LOSS
	 	 	20	 
	13.	 	PROVISIONS REGARDING HAZARDOUS SUBSTANCES
	 	 	21	 
	 	 	13.1 Definitions
	 	 	21	 
	 	 	13.2 Liberty’s Environmental Representations and Warranties
	 	 	22	 

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	 	 	 	 	Page	 
	 	 	13.3 Environmental Covenant
	 	 	22	 
	 	 	13.4 Environmental Indemnification
	 	 	22	 
	14.	 	NO ASSUMPTION
	 	 	24	 
	 	 	14.1 No Assumption
	 	 	24	 
	15.	 	NOTICES
	 	 	24	 
	 	 	15.1 Notices
	 	 	24	 
	16.	 	MISCELLANEOUS
	 	 	25	 
	 	 	16.1 Entire Agreement
	 	 	25	 
	 	 	16.2 Counterparts
	 	 	25	 
	 	 	16.3 Time of the Essence
	 	 	25	 
	 	 	16.4 Assignment
	 	 	25	 
	 	 	16.5 Dates
	 	 	26	 
	 	 	16.6 Binding on Successors and Assigns
	 	 	26	 
	 	 	16.7 Records
	 	 	26	 
	 	 	16.8 Confidentiality and Public Disclosure
	 	 	26	 
	 	 	16.9 Termination
	 	 	26	 
	 	 	16.10 Reporting Person
	 	 	26	 
	 	 	16.11 Paragraph Headings
	 	 	26	 
	 	 	16.12 Facsimile Signatures
	 	 	26	 
	 	 	16.13 Exculpation
	 	 	27	 
	 	 	16.14 AS IS
	 	 	27	 
	 	 	16.15 Governing Law
	 	 	28	 
	 	 	16.16 Receipt of Written Notice Defined
	 	 	28	 

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CONTRIBUTION AGREEMENT

     THIS CONTRIBUTION AGREEMENT (the “Agreement”) is entered into among NEW YORK STATE
COMMON RETIREMENT FUND (“NYSCRF”), LIBERTY PROPERTY LIMITED PARTNERSHIP, a Pennsylvania
limited partnership (“Liberty”), and LIBERTY WASHINGTON, LP, a Delaware limited partnership
(the “Company”).

     1. CONTRIBUTION OF OWNERSHIP INTERESTS

     1.1 Description of the Ownership Interests. In consideration of the terms and
conditions hereinafter set forth, Liberty shall contribute, or cause to be contributed, to the
Company, all of Liberty’s ownership interests (the “Contributed Interests”) in certain of
those entities identified on Exhibit A attached hereto (each a “Contributed Entity”
and collectively, the “Contributed Entities”), including, without limitation, the
following:

          (a) Liberty’s voting, approval and consent rights with respect to the Contributed Entities,
whether under the Contributed Entities’ Operating Agreements (as defined in Section
4.1(a)(ii)) or state law;

          (b) Liberty’s rights to cash flow distributions, and other payments or distributions of
capital, return on capital, reimbursements, repayments, fees, surplus, profits, sales proceeds or
borrowings of or from the Contributed Entities (whether during the term of the Contributed Entities
or in connection with the liquidation of the Contributed Entities), to the extent arising from and
after the Closing Date; and

          (c) Liberty’s right to any allocations of tax items of the Contributed Entities that accrue
for tax purposes on or after the Closing Date (as defined in Section 6.1).

The terms Purchased Entities (as defined in Schedule 2.1(b)(ii) attached hereto) and
Contributed Entities are sometimes referred to herein individually as an “Entity” and
collectively as the “Entities”.

     1.2 Description of the Property. Each Entity owns, directly or indirectly, either
solely or together with another Entity, one or more office properties as expressly identified on
Exhibit A attached hereto, including all of the following described property with respect
to the applicable office property (collectively, the “Property”):

          (a) Land. The real property at the addresses identified on Exhibit B attached
hereto and more fully described on Exhibit B attached hereto, together with all rights and
appurtenances pertaining to such real property, including, without limitation, all cross
access/reciprocal access easements and any and all right, title, and interest of the Entities in
and to adjacent roads, alleys, easements, streets and ways (collectively, the “Land”);

          (b) Improvements. All physical improvements, structures and fixtures owned by the
Entities and placed, constructed or installed on the Land (collectively, the
“Improvements”);

          (c) Tenant Leases. The Entities’ interest in leases and rental agreements with
tenants occupying space situated in the Improvements or otherwise having contractual rights with
regard to use of the Land or the Improvements as of the Closing Date (collectively, the “Tenant
Leases”), and all existing unapplied security deposits or like payments, if any, paid

 

 

by tenants under the Tenant Leases or other security provided in connection with the Tenant Leases and
identified on the Rent Roll (as defined in Section 4.1 hereof);

          (d) Service Contracts. The Entities’ interest in all (i) management and/or brokerage
contracts relating to the Land or Improvements; (ii) maintenance, repair, service and pest control
contracts relating to the Land or Improvements; and (iii) other contracts pursuant to which
services or goods are provided to the Land or Improvements, not to include any management agreement
affecting the Land or Improvements (collectively, the “Service Contracts”);

          (e) Warranties, etc. The Entities’ interest in all warranties, guaranties and bonds
relating to the Land and the Improvements;

          (f) Plans. All site plans, surveys, plans and specifications, floor plans, art work,
brochures, and tenant correspondence files in each Entity’s possession or in the possession of
Liberty’s leasing and management agents for the Property and which relate specifically to the Land
or the Improvements; and

          (g) Intangible Property. All intangible property owned or held by the Entities or in
which an Entity has an interest, if any, and the right to the use thereof, including but not
limited to, the Entities’ rights under governmental permits or approvals (to the extent same are
assignable) and the right to the use of (without warranty as to exclusivity or otherwise) the
names, trade marks, trade names and telephone numbers and listings employed exclusively in
connection with the Land or the Improvements or the operations thereon (the “Intangible
Property”).

     1.3 Schedule of Parcels. The Property consists of separate parcels, each of which is
identified on Exhibit A hereto and referred to herein individually as a “Parcel”,
and collectively as the “Parcels”. Each Parcel is owned directly or indirectly by the
Entity identified on Exhibit A.

     1.4 Value of the Interests. The Parties acknowledge and agree that the Interests, as
hereinafter defined, have the gross value ascribed to them on Exhibit A, which ascribed
value is referred to herein as the “Gross Asset Value”.

     2. FORMATION OF THE COMPANY; CONTRIBUTIONS; CLOSING PROCEDURES

     2.1 Contribution Procedures. When the conditions to Closing (as defined in
Section 6.1) set forth in Sections 5.1 and 5.2 have been satisfied or
waived by the party for whose benefit the conditions are included, the following shall occur:

          (a) Formation of Company. The parties shall execute and deliver the Limited
Partnership Agreement of the Company in the form of Exhibit F (the “Partnership 
Agreement”). Liberty hereby designates Liberty Washington Venture, LLC (the
“LLC”) to receive the general partnership interests in the Company to which Liberty is
entitled by reason of its contributions hereunder. The LLC has filed or caused to be filed the
certificate of limited partnership for the Company with the Secretary of State of the Sate of
Delaware on September 21, 2007.

          (b) Capital Contributions.

               (i) On the day prior to the Closing Date, subject to the adjustments provided for herein, in
consideration of the terms and conditions set forth herein,

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NYSCRF shall contribute cash to the
Company an amount (herein referred to as the “Contribution Amount”) equal to
$415,063,748.00.

               (ii) On the Closing Date, the parties shall undertake the Additional Closing Procedures
described on Schedule 2.1(b)(ii) attached hereto, in the order set forth therein. The
transactions described in Schedule 2.1(b)(ii) shall result in Liberty making a capital
contribution to the Company on behalf of the LLC in the aggregate amount of $138,354,583.00.

          (c) Closing Costs. The Company shall pay all Closing Costs.

          (d) Management and Leasing Agreement. Immediately following the completion of the
contributions referred to in Section 2.1(b) above, the Company shall cause its subsidiaries
that own the Parcels to enter into a Management and Leasing Agreement in the form of Exhibit
G, attached hereto, for its respective parcel (the “Management Agreement”).
Notwithstanding the foregoing, in the event that lender approval is not obtained for the assumption
of any of the Assumed Financing (as defined in Section 3.4) prior to the contribution or
sale of the applicable Entity to the Company, the then-existing management agreement for such
Entity (the “Existing Management Agreement”) shall remain in place and effective until such
approval is obtained or such Assumed Financing is paid off, defeased or refinanced; provided,
however, that as between the Manager and the “Owner” under such Existing Management Agreement, the
fees and obligations set forth in the form of Management and Leasing Agreement attached hereto as
Exhibit G shall control.

     2.2 Tax Treatment. Upon completion of the events described in Section 2.1,
except as otherwise provided herein, the transaction contemplated hereby will be treated, for
federal income tax purposes, as a contribution to the Company of a twenty-five percent (25%)
undivided interest in the Contributed Interests in exchange for an interest in the Company and a
sale to the Company of a seventy-five percent (75%) undivided interest in the Contributed Interests
in exchange for an amount realized equal to the amount of the Merger Loan (and all other
indebtedness or liabilities to which the Contributed Interests are subject or treated as subject
for tax purposes).

     3. PRE-CLOSING MATTERS

     3.1 Information Provided to NYSCRF. NYSCRF acknowledges that Liberty has furnished or
made available to NYSCRF all of the items described on Exhibit D attached hereto
(collectively, the “Due Diligence Items”).

     3.2 Additional Service Contracts. From and after the date hereof, and continuing
until Closing or the earlier termination
of this Agreement (in whole or, with respect to any Interest being terminated pursuant to this
Agreement, in part), Liberty shall not enter into any new Service Contracts with respect to the
Property without the prior consent of NYSCRF, which consent shall not be unreasonably withheld,
conditioned or delayed.

     3.3 Additional Tenant Leases. From and after the date hereof, and continuing until
Closing or the earlier termination of this Agreement (in whole or, with respect to any Contributed
Interest being terminated pursuant to this Agreement, in part), Liberty shall not enter into any
new Tenant Leases with respect to the Property without the prior consent of NYSCRF, which consent
shall not be unreasonably withheld, conditioned or delayed.

     3.4 Existing Loans. Nine (9) of the Parcels are currently encumbered by mortgage
loans, and one (1) Contributed Entity currently maintains a secured revolving line of credit, each
as more particularly shown on Schedule 3.4 attached hereto (collectively, the “Existing
Loans"). Liberty intends to undertake the following actions with respect to the Existing Loans
at

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or before Closing, all at the sole cost and expense of the Company: (i) the construction loan
currently encumbering 1129 20th Street, NW will be repaid in full; (ii) the line of credit will be
repaid in full; (iii) the mortgage loans currently encumbering Lakeside I & II and WillowWood III &
IV will be defeased in accordance with the procedures described in Schedule 2.1(b)(ii); and
(iv) the remaining Existing Loans will remain in place and will be “assumed” by the Company. The
Existing Loans described in Clauses (i)-(iii) above are referred to herein as the “Satisfied
Loans”, and the Existing Loans described in Clause (iv) above are referred to herein as the
“Assumed Financing”. The Assumed Financing and the Liberty Loan are referred to herein
collectively as the “Permanent Financing”.

     3.5 Estoppel Letters. Liberty shall use diligent efforts to obtain and deliver to
NYSCRF, on or before the Closing Date, estoppel letters, substantially in the form of Exhibit
J attached hereto, or, in the case of leases with the General Services Administration (the
“GSA”), a Lease Status Report in the GSA’s standard form, executed by tenants occupying
more than 25,000 square feet of the Property on the date of this Agreement.

     4. REPRESENTATIONS, WARRANTIES AND COVENANTS

     4.1 Liberty’s Representations and Warranties. Liberty represents and warrants to
NYSCRF (and to the Company, as of the Closing Date) as follows (which representations and
warranties shall be true and correct as of the date hereof and as of the Closing):

          (a) Entities.

               (i) Each Entity is a duly formed, validly existing limited liability company or limited
partnership organized under the laws of the State of Delaware and is duly qualified or registered
to do business in the Commonwealth of Virginia or the District of Columbia, as applicable based
upon the location of the Parcel owned by such Entity, if any.

               (ii) The limited liability company agreement or partnership agreement, whichever is applicable
(the “Operating Agreements”), of each Entity is in full force and effect, has not been
modified, supplemented, amended or terminated and, together with the applicable Certificate of
Formation or Certificate of Limited Partnership, constitutes the sole agreement and understanding
(written or oral) among the parties thereto with respect to the applicable Entity. A true and
correct copy of the Operating Agreement of each Entity has been delivered to NYSCRF.

               (iii) On the Closing Date, Liberty will be the only beneficial and legal owner of the
Contributed Interests, free and clear of all liens, security interests, pledges, assignments,
claims, options, encumbrances, charges, commitments, and equitable interests or rights of others,
of any kind whatsoever, other than the Assumed Financing and the Merger Loan.

               (iv) Neither Liberty nor any Entity is the subject of any bankruptcy or other insolvency
proceeding.

               (v) The Entities have no assets other than their direct or indirect interest in the Property
as shown on Exhibit A, and, where applicable, direct or indirect ownership interests in
Entities that own the Property.

               (vi) The Entities have not conducted any business that is unrelated to their respective
ownership of the Property and, where applicable, direct or indirect ownership interests in Entities
that own the Property.

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               (vii) No Entity employs employees who manage, maintain or service the Property and whom the
Company would be obligated to employ subsequent to Closing. There are no collective bargaining
agreements or other similar contracts or agreements with any labor union or bargaining unit
respecting the Property or the Entities.

               (viii) None of the Entities is a “foreign person” within the meaning of Sections 1445 and 7701
the Internal Revenue Code of 1986, as amended (hereinafter, the “Code”).

               (ix) The Entities are not delinquent in filing any tax returns which are required to have been
filed by them. The Entities have no outstanding liability for any Taxes (as hereinafter defined),
with the exception of Tax for the current tax year that are to be allocated between Seller and
Buyer as set forth in Section 7.1(f). “Tax” means any federal, state, county, provincial,
local or foreign income, gross receipts, sales, use, ad valorem, employment, severance, transfer,
gains, profits, excise, franchise, property, capital stock, premium, minimum and alternative
minimum or other taxes, fees, levies, duties, assessments or charges of any kind or nature
whatsoever imposed by any government, any governmental entity, department, commission, board,
agency or instrumentality, and any court, tribunal or judicial body, in each case whether federal,
state, county, provincial, local or foreign (“Governmental Authority”), whether such Tax is
payable directly or by withholding, together with any interest, penalties (civil or criminal),
additions to or additional amounts imposed by, any Governmental Authority with respect thereto.

          (b) Property.

               (i) Title. Each Entity or its subsidiary that is the fee owner of the Parcel in
question, holds or will hold as of Closing, a title insurance policy insuring fee simple ownership
of the Land and the Improvements for its respective Parcel. To Liberty’s knowledge,
the Entities do not own or lease any personal property in connection with the Land and
Improvements.

               (ii) Litigation. There is no pending nor, to Liberty’s knowledge, threatened
litigation or administrative proceedings that, if resolved adversely to Liberty or any Entity would
adversely affect title to the Property or any part thereof or the ability of Liberty to perform any
of its obligations hereunder or the use of the Property by the Company as it is presently being
used or otherwise materially and adversely affect the Property, except as set forth on Schedule
4.1(b)(ii) (the “Existing Litigation”).

               (iii) Notice of Liens. Liberty has not received written notice of the intention of
any governmental authority to file or impose any liens (other than statutory liens for real estate
taxes not yet due and payable) or special assessments against any of the Property, nor, to
Liberty’s knowledge, do there currently exist any facts or circumstances that would allow any
governmental authority the right to file or impose such liens or assessments.

               (iv) Schedule of Leases; Rent Roll; Tenant Leases. To Liberty’s knowledge, the
Schedule of Lease Documents (the “Schedule of Leases”) provided to NYSCRF pursuant to
Section 3.1 hereof is a complete and correct list of all Tenant Leases and amendments
thereto in effect as of the date of this Agreement. To Liberty’s knowledge, the rent roll provided
to NYSCRF pursuant to Section 3.1 hereof (the “Rent Roll”) sets forth with respect
to each of the Tenant Leases in effect on the date hereof (i) the square footage of the space
covered thereby, (ii) the expiration date of the term thereof, (iii) the rents and other charges
payable thereunder, (iv) the amount of the security deposit thereunder, if any, and (v) any
brokerage or leasing fees due and payable thereunder. To Liberty’s knowledge, no Tenant Lease has
been modified, altered or amended in any respect except as set forth in the Schedule of

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Leases. To Liberty’s knowledge, there are no leases, tenancies or other rights of occupancy or use for any
portion of the Property other than pursuant to Tenant Leases, copies of which have been delivered
to NYSCRF.

               (v) Encumbrances on Tenant Leases. To Liberty’s knowledge, subject to the Assumed
Financing, none of the Tenant Leases and none of the rents or other amounts payable thereunder has
been assigned, pledged or encumbered by Liberty, except for any assignment, pledge or encumbrance
that Liberty will cause to be terminated or released at or prior to Closing.

               (vi) Brokerage or Leasing Commissions. Except as disclosed on the Rent Roll, to
Liberty’s knowledge, no brokerage or leasing commissions or other compensations are due or payable
by Liberty to any person, firm, corporation, partnership, limited liability company or other entity
(each a “Person”) with respect to or on account of the current term of any of the Tenant
Leases. Except as disclosed in the Rent Roll or set forth in the Tenant Leases, to Liberty’s
knowledge, no brokerage or leasing commissions or other compensations are due or payable by the
landlord on any extension or expansion of any Tenant Lease.

               (vii) Obligations to Tenants under Tenant Leases. Except as set forth on Schedule
4.1(b)(vii) attached hereto, with respect to tenants in occupancy under Tenant Leases as of the
Closing Date, to Liberty’s knowledge, there are no unperformed obligations to provide any tenant
under any Tenant Lease with any painting, repair, alteration, carpeting, appliance or any other
equipment or work of any kind, under any Tenant Lease or under any other oral or written agreement
whatsoever that would excuse such tenant from accepting its Premises under the terms of its lease,
except for obligations (i) that will be performed and paid for by Liberty before the Closing or
(ii) to complete any portion of the Premises covered by the Tenant Lease not yet occupied by the
tenant thereunder and not required to be completed under
the terms of the Tenant Lease as of the Closing Date or pursuant to renewal rights under
Tenant Leases.

               (viii) Enforceability of Tenant Leases. To Liberty’s knowledge, each of the Tenant
Leases is valid and subsisting and in full force and effect in accordance with its terms,
provisions and conditions and constitutes the legal, valid, binding and enforceable obligation of
the tenant thereunder, subject to laws applicable generally to creditor’s rights. As of the date
of this Agreement, neither Liberty nor, to the knowledge of Liberty, the tenant is in material
default thereunder. To Liberty’s knowledge, as of the date of this Agreement, (i) each tenant
under a Tenant Lease scheduled to be in possession as of the date hereof has accepted the premises
covered by its Tenant Lease and is in possession of such premises in accordance with its Tenant
Lease, and (ii) all initial installation work, if any, required of Liberty in order for the tenant
to accept the premises then in actual occupancy by a tenant under the terms of its lease has been
fully performed, paid for and accepted by each such tenant. To Liberty’s knowledge, no tenant
under a Tenant Lease that has been signed as of the date hereof has any pending litigation, offsets
or counterclaims against Liberty that, if successfully asserted, would reduce the rent payable
thereunder or result in the cancellation or termination thereof. No tenant has given any written
notice to Liberty of such tenant’s intention of instituting litigation with respect to any Tenant
Lease or terminating its tenancy. Each of the representations and warranties set forth in this
Section 4.1(viii) is subject to the matters disclosed on Schedule 4.1(viii)
attached hereto.

               (ix) Agreements to Acquire or Possess the Property. Except as set forth in the Tenant
Leases, to Liberty’s knowledge, no tenant or other occupant under the Tenant Leases and no other
Person (other than, pursuant to this Agreement, the Company) has any right or option to acquire any
fee or leasehold ownership interest in the Property, or any part thereof, from Liberty or any
Entity. Neither Liberty nor, to Liberty’s knowledge, any Entity has entered

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into any agreement
with any Person granting the right to possess the Property, other than (i) tenants in possession
pursuant to the Tenant Leases described in the Schedule of Leases, (ii) tenants under Tenant Leases
entered into by the Entities after the date hereof in accordance with Section 3.3; or (iii)
matters of public record.

               (x) Defects; Violations; Condemnation Proceedings. With respect to the Property,
neither Liberty nor, to Liberty’s knowledge, any Entity has received any written notice from any
insurance company, governmental agency or any other Person of (i) any condition, defect, or
inadequacy affecting the Property that, if not corrected, would result in termination of insurance
coverage or materially increase its cost, (ii) any pending or threatened condemnation proceedings,
or (iii) any proceedings that could or would reasonably be likely to cause the change or other
material modification of the zoning classification or other legal requirements, applicable to the
Property or any part thereof which would materially and adversely affect the Property. To
Liberty’s knowledge, there does not exist any court order, nor does there exist any restriction or
restrictive covenant (save and except matters of public record and all laws, statutes, ordinances
and regulations of applicable governmental authorities) or other private or public limitation, that
is reasonably likely to materially and adversely affect the use of the Property as presently being
operated.

               (xi) Mechanic’s Liens. At Closing, except for payments currently due or to become due
under existing contracts for tenant improvements under the Tenant Leases in force and effect as of
the date hereof and except for any payments currently due or to become due under the construction
contracts for the development of the Parcel located at 1129 20th Street, NW, Washington, D.C., to
Liberty’s knowledge, there will not be any unpaid charges, debts, liabilities, claims or
obligations of Liberty or any Entity arising from the construction, occupancy, ownership, use or
operation of the Property which could give rise to any mechanics’ or materialmen’s or other
statutory liens against any of the Property that will not be paid by Liberty or an Entity at the
Closing (or bonded over in a manner reasonably acceptable to
NYSCRF and the Title Company and in accordance with the provisions of any applicable statutes
or regulations or affirmatively insured against by the Title Company to NYSCRF’s reasonable
satisfaction or for which Liberty may be willing to escrow funds, to the reasonable satisfaction of
NYSCRF).

               (xii) Governmental Requirements. Neither Liberty nor, to Liberty’s knowledge, any
Entity has received a written notice from any Governmental Authority asserting a violation of any
uncured restrictive covenants, deed restrictions or zoning requirements or other applicable
Governmental Requirements (as defined in Section 13.1(a) hereof) affecting the Property.

               (xiii) Streets and Highways. Neither Liberty nor, to Liberty’s knowledge, any Entity
has received a written notice of any existing plans to widen, modify or realign any street
adjoining the Property.

               (xiv) Unfulfilled Binding Commitments. No commitments have been made by Liberty nor,
to Liberty’s knowledge, any Entity to any Governmental Authority, utility company, school board,
church or other religious body, or any homeowners or homeowners’ association, or any other
organization, group or individual, relating to the Property (other than with respect to any
declaration in place at the Property) that would impose an obligation upon the Company or its
successors or assigns to make any contribution or dedications of money or land or to construct,
install or maintain any improvements of a public or private nature on or off the Property, except
for obligations due under the Tenant Leases and all recorded instruments.

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               (xv) Service Contracts, Tenant Leases, etc. To Liberty’s knowledge, there are no
other contracts (including collective bargaining agreements), other than the Service Contracts, the
Tenant Leases and matters of public record, that materially and adversely affect the Property or
the operation thereof except as provided to NYSCRF pursuant to Section 3.1.

          (c) Liberty.

               (i) Existence; Authority. Liberty has been formed as a limited partnership under the
laws of the Commonwealth of Pennsylvania and is in good standing under the laws of such
commonwealth. The execution and delivery of, and Liberty’s performance under, this Agreement are
within Liberty’s powers and have been duly authorized by all requisite action. The Persons
executing this Agreement on behalf of Liberty have the authority to do so. This Agreement
constitutes the legal, valid and binding obligation of Liberty and is enforceable against Liberty
in accordance with its terms, subject to laws applicable generally to creditor’s rights. Except to
the extent lender approval for the assumption by the Company of the Assumed Financing is not
obtained prior to Closing, performance of this Agreement will not result in any breach of, or
constitute any default under, or result in the imposition of any lien or encumbrance upon the
Property under, any agreement or other instrument to which Liberty is a party or by which Liberty
or the Property is bound. Except as disclosed on Exhibit H hereto, no consent or approval
of any Person, Entity or of any Governmental Authority is required with respect to the execution
and delivery of this Agreement by Liberty or the consummation by Liberty of the transactions
contemplated hereby or the performance by Liberty of its obligations hereunder.

               (ii) Foreign Person. Liberty is not a “foreign person” within the meaning of Sections
1445 and 7701 of the Code.

     4.2 Delivery of Documents. To Liberty’s knowledge, all of the Leases, Service Contracts and financial information
pertaining to the Property (collectively, the “Documents”) submitted by or on behalf of
Liberty to NYSCRF hereunder that Liberty or Liberty’s employees or agents prepared shall be true,
correct and complete in all material respects. Liberty has no knowledge that any of the Documents
submitted by or on behalf of Liberty to NYSCRF hereunder which were prepared by third parties
contain material inaccuracies or omissions. The copies of Documents submitted shall be complete
and correct copies of the documents in Liberty’s possession.

     4.3 Knowledge Defined. Whenever a representation or warranty is made herein as being
“to the knowledge of” or “known” to Liberty, or phrases of similar import, such phrase shall mean
facts actually known to the following officers of Liberty on the date hereof without any
independent investigation: Michael Hagan, Chief Investment Officer, and Richard Casey, Director of
Due Diligence.

     4.4 Liberty’s Covenants. Liberty hereby covenants and agrees with NYSCRF that, after
the date of this Agreement and until the earlier of the termination of this Agreement or the
Closing:

          (a) No Assignment or Transfer. Liberty shall not convey the Contributed Interests in
the Contributed Property except to NYSCRF or its permitted assigns, and Liberty shall not make any
material amendments to the Operating Agreements nor cause any alterations to any portion of the
Property except as otherwise expressly permitted under this Agreement.

          (b) Operation and Management of the Property. From Liberty’s acquisition of the
Contributed Interests and until the Closing, Liberty shall cause the Property to be operated and
maintained in at least the same quality and manner as Republic operated and maintained the

8

 

Property
prior to the date hereof. Without the prior written consent of NYSCRF, Liberty will not initiate
or permit any zoning reclassification of the Property or seek any variance under existing zoning
ordinances applicable to the Property to use or permit the use of the Property in such a manner
that would result in such use becoming a nonconforming use under applicable zoning ordinances or
other Governmental Requirements. Liberty will not impose any restrictive covenants or encumbrances
(other than Tenant Leases) on the Property or execute or file any subdivision plat affecting the
Property without the prior written consent of NYSCRF.

          (c) Insurance. Liberty hereby agrees that from Liberty’s acquisition of the
Contributed Interests and until the Closing, it will maintain, or cause to be maintained, in full
force and effect full replacement value and/or all risk fire and extended coverage insurance upon
the Property and public liability insurance with respect to damage or injury to persons or property
occurring on the Property in such amounts as is maintained by Republic on the date of this
Agreement (such amounts to be increased, if necessary, upon further construction).

          (d) No Solicitation. Liberty, on behalf of itself, its agents, contractors and
representatives, agrees that from the date hereof until the earlier of the Closing or the date that
this Agreement is terminated, it will not accept any offers to purchase or otherwise acquire the
Entities or the Property from any party other than the Company or NYSCRF and will not market the
Entities or the Property to any other parties.

          (e) Condemnation; Injury; Damages. Promptly upon obtaining knowledge of the
institution of any proceedings for the condemnation of the Property, or any portion thereof, or any
other proceedings arising out of injury or damage to the Property, or any portion thereof, Liberty
will notify NYSCRF of the pendency of such proceedings.

          (f) Governmental Requirements; Litigation. Liberty will advise NYSCRF promptly of any
litigation, arbitration or administrative hearing concerning or affecting the Property or the
ownership and/or operation thereof of which Liberty has actual knowledge or written notice.

          (g) Liens. Except for the liens of the Assumed Financing and liens that Liberty shall
be obligated to release at or prior to Closing, Liberty shall not grant, consent or permit the
filing of any lien or encumbrance against the Property or any portion thereof subsequent to the
date hereof. Liberty will not, without the prior written consent of NYSCRF, sell, lease, exchange,
assign, transfer, convey or otherwise dispose of all or any part of the Property or any interest
therein, or permit any of the foregoing, except pursuant to Tenant Leases and other leases approved
in writing in advance by NYSCRF pursuant to the terms hereof.

          (h) Existence. Liberty will continuously maintain Liberty’s existence as a limited
partnership. From and after Liberty’s acquisition of the Contributed Interests and until the
Closing, Liberty will continuously maintain the Entities’ existence as limited liability companies
or limited partnerships, as applicable.

          (i) Books and Records. From and after Liberty’s acquisition of the Contributed
Interests and until the Closing, Liberty will keep or cause to be kept accurate books and records
of the operation of the Property in substantially the same manner as Liberty or its predecessors in
interest have maintained such books and records prior to the date of this Agreement, and in which
full, true and correct entries shall be made as soon as reasonably practical as to all operations
on the Property, and all such books and records shall at all times during reasonable business hours
be subject to inspection by NYSCRF and its duly authorized representatives, subject to Republic’s
approval.

9

 

          (j) Tenant Improvements; Leasing Commissions. After Closing, Liberty shall, at
Liberty’s sole cost and expense, cause the completion of the tenant improvement work listed on
Schedule 4.4(j) in accordance with terms of the applicable lease or other agreement giving
rise to the obligation. Furthermore, Liberty shall be solely responsible for the payment of those
leasing commissions listed on Schedule 4.4(j). This Section 4.4(j) shall survive
Closing.

          (k) Severance Payments. Liberty shall, at Liberty’s sole cost and expense, pay any
and all severance payments to any employee or former employee of RPLP, or any Entity, triggered by
the transactions contemplated by this Agreement. This Section 4.4(k) shall survive
Closing.

          (l) Existing Litigation. Liberty agrees to indemnify, defend and hold NYSCRF and the
Company harmless from and against any claim, loss, cost or damage arising by reason of the Existing
Litigation. This Section 4.4(l) shall survive Closing.

     4.5 Indemnity For Breach by Liberty. Subject to the other provisions hereof
(including the provisions of Section 11.1), if Closing occurs, Liberty shall indemnify
NYSCRF and the Company and their successors and assigns, against and shall defend and hold NYSCRF
and the Company and their successors and assigns, harmless from, all costs, expenses, and actual
damages, including reasonable attorneys’ fees, that NYSCRF, the Company and/or NYSCRF’s or the
Company’s successors or assigns actually incur because of any breach of any of the representations,
warranties or covenants of Liberty herein contained incurred prior to [The confidential material contained herein has
been omitted and has been separately filed
with the Commission.] after the
Closing. Notwithstanding the foregoing, if NYSCRF has actual knowledge of any such breach prior to
Closing and nonetheless proceeds with the Closing, then in such event any such breach shall be
deemed waived by
NYSCRF. NYSCRF and the Company hereby specifically waive any and all rights which they may
have to exemplary, punitive or consequential damages as a result of Liberty’s default under this
Agreement.

     4.6 NYSCRF’s Representations and Warranties. NYSCRF represents and warrants to
Liberty as follows (which representations and warranties shall be true and correct as of the date
hereof and as of the Closing Date):

          (a) Authority. NYSCRF has duly and validly authorized and executed this Agreement,
and it has full right, title, power and authority to enter into this Agreement and to carry out all
of its terms;

          (b) No Violation; Consent. The execution and delivery by NYSCRF of, consummation of
transactions provided for in, and compliance by NYSCRF with all of the provisions of this Agreement
will not violate the organizational documents of NYSCRF and do not require any approval or consent
of any trustee or holders of any of its debt (except for approvals already obtained).

          (c) Sophisticated Investor. NYSCRF is a sophisticated investor experienced in
commercial real estate investments. NYSCRF has sufficient experience of and knowledge about the
operations of multi-tenant commercial properties to be able to exercise its approval powers in this
Agreement and under the Partnership Agreement in a commercially reasonable manner and without
delay.

          (d) Indemnity For Breach by NYSCRF. Subject to the other provisions hereof (including
the provisions of Section 11.2), if Closing occurs NYSCRF shall indemnify Liberty and the
Company and their successors and assigns, against and shall defend and hold Liberty and the Company
and their successors and assigns, harmless from, all costs, expenses, and actual damages, including
reasonable attorneys’ fees, that Liberty, the Company and/or Liberty’s or the Company’s successors
or assigns actually incur because of any breach of any of

10

 

the representations, warranties or
covenants of NYSCRF herein contained incurred prior to one (1) year after the Closing.
Notwithstanding the foregoing, if Liberty has actual knowledge of any such breach prior to Closing
and nonetheless proceeds with the Closing, then in such event any such breach shall be deemed
waived by Liberty. Liberty and the Company hereby specifically waive any and all rights that they
may have to exemplary, punitive or consequential damages as a result of NYSCRF’s default under this
Agreement.

     5. CONDITIONS OF CLOSING

     5.1 Closing Conditions For NYSCRF’s Benefit. The obligations of NYSCRF to consummate
the transaction contemplated hereby are subject to the following conditions, any of which, if not
fulfilled by the Closing or as otherwise provided herein, shall entitle NYSCRF (at its option) to
terminate this Agreement as provided below:

          (a) Merger. All conditions to the merger of RPLP with and into Liberty (the
“Merger”), as well as the merger of Republic Property Trust with and into Liberty
Acquisition LLC (the REIT Merger”), pursuant to that certain Agreement of Plan and Merger,
dated as of
July 23, 2007 (the “Merger Agreement”), shall have been satisfied in accordance with
the terms of the Merger Agreement.

          (b) Absence of Judicial Action. The transactions contemplated under this Agreement to
be effected on the Closing Date shall not have been restrained or prohibited by any injunction or
order or judgment rendered by any court or other governmental agency of competent jurisdiction and
no proceeding shall have been instituted and be pending in which any creditor of Liberty or any
other Person seeks to restrain such transactions or otherwise to attach any of the Property,
provided that any such proceeding or action contemplated by this Section 5.1(a) shall not
be deemed to include any proceeding or action brought by, through or under NYSCRF.

          (c) Representations and Warranties. All representations and warranties made by
Liberty herein shall at the time of Closing be true and correct in all material respects.

          (d) Absence of Litigation. On the Closing Date, Liberty shall have received no
written notice of any litigation pending or threatened against the Entities or the Property that,
if resolved adversely to the Entities or the Property, would have a material adverse effect on the
Entities or the Property, except for litigation related to the matters disclosed on Schedule
4.1(b)(ii).

          (e) Covenants of Liberty. On the Closing Date, all of the covenants and agreements
herein on the part of Liberty to be complied with or performed on or before the Closing Date shall
have been fully complied with and performed in all material respects, and there shall exist no
material default or material breach by Liberty under this Agreement.

          (f) Insolvency. On the Closing Date, Liberty and the Entities shall not be insolvent
(i.e., unable to pay its debts as they become due), shall not have been held or alleged to have
made a transfer in fraud of creditors and shall not have made a general assignment for the benefit
of creditors.

          (g) Receiver. On the Closing Date, neither a receiver nor a trustee nor a custodian
shall have been appointed for, or shall have taken possession of, all or substantially all of the
assets of Liberty or any Entity or any of the Property, either in a proceeding brought by Liberty
or in a proceeding brought against Liberty or an Entity.

11

 

          (h) Bankruptcy. On the Closing Date, neither Liberty nor any Entity shall have filed
a petition for relief under the Federal Bankruptcy Code or any other present or future federal or
state insolvency, bankruptcy or similar law (all of the foregoing hereinafter collectively called
“Applicable Bankruptcy Law”) nor shall an involuntary petition for relief have been filed
against Liberty or any Entity under any Applicable Bankruptcy Law and not been dismissed, nor shall
any order for relief naming Liberty or an Entity have been entered under any Applicable Bankruptcy
Law, nor shall any composition, rearrangement, extension, reorganization or other relief of debtors
now or hereafter existing have been requested or consented to by Liberty or any Entity.

          (i) Execution. On the Closing Date, neither the Property nor any part thereof or any
interest therein shall have been taken by execution or other process of law in any action against
Liberty or an Entity.

          (j) Completion of the Partnership Agreement. All Exhibits not attached to the form of
the Partnership Agreement attached hereto as Exhibit F shall have been completed and such
Exhibits reasonably approved by Liberty and NYSCRF.

          (k) Owner’s Policies. On the Closing Date, the Title Company shall be unconditionally
committed to deliver the Owner’s Policy to each Entity (or its subsidiary) that directly owns
Property, in accordance with Section 6.2.

If any one or more of the above conditions is not satisfied by the Closing Date, NYSCRF may at its
option either (i) waive such remaining conditions and proceed to Closing; or (ii) if such failure
is not satisfied prior to closing on the Merger, NYSCRF may terminate this Agreement by written
notice thereof to Liberty and, except for such obligations and indemnities that expressly survive
the termination of this Agreement, the parties shall have no further right or obligation hereunder;
provided, however, if such failure to satisfy any condition is a result of a default or breach by
Liberty under this Agreement, NYSCRF shall also have the rights provided under Section
11.1(b) hereof.

     5.2 Conditions Precedent for Liberty’s Benefit. The obligations of Liberty to
consummate the transactions contemplated hereby are subject to the following conditions which, if
not fulfilled by the Closing or as otherwise provided herein, shall entitle Liberty, at its option,
to terminate the Agreement:

          (a) Merger. All conditions to the Merger and the REIT Merger shall have been
satisfied in accordance with the terms of the Merger Agreement.

          (b) Covenants of NYSCRF. All of the covenants and agreements herein on the part of
NYSCRF to be complied with or performed on or before the Closing Date shall have been fully
complied with and performed.

          (c) Representations and Warranties. All representations and warranties made by NYSCRF
herein shall have been and remain true and correct in all material respects.

          (d) Completion of the Partnership Agreement. All exhibits not attached to the form of
the Partnership Agreement attached hereto as Exhibit F shall be completed and such Exhibits
reasonably approved by Liberty and NYSCRF.

          (e) Absence of Judicial Action. The transactions contemplated under this Agreement to
be effected on the Closing Date shall not have been restrained or prohibited by any injunction or
order or judgment rendered by any court or other governmental agency of competent jurisdiction.

12

 

          (f) Owner’s Policies. On the Closing Date, the Title Company shall be unconditionally
committed to deliver the Owner’s Policy to each Entity (or its subsidiary) that directly owns
Property, in accordance with Section 6.2.

     6. CLOSING

     6.1 Closing. The closing of the transactions contemplated herein shall be held on the
date of the Merger (the “Closing Date” or the “Closing”), unless otherwise
specified herein. The Closing shall be held at the Philadelphia, Pennsylvania offices of Wolf,
Block, Schorr and Solis-Cohen LLP, or at such other location as may be acceptable to Liberty and
NYSCRF, or at the election of either party, by delivery of documents in escrow to the Title Company
together with escrow instructions that otherwise comport with the terms of this Agreement.

          (a) Liberty Closing Obligations. At the Closing, Liberty shall deliver or cause to be
delivered executed counterparts of the Partnership Agreement and the Management Agreement.

          (b) Liberty Closing Documents. At or before Closing (as the case may be pursuant to
this Agreement), Liberty shall deliver or cause to be delivered for the benefit of the Company the
items specified herein (with copies to NYSCRF) and the following documents and instruments, each
duly executed and, where necessary, acknowledged:

               (i) a promissory note for the Merger Loan;

               (ii) an assignment and assumption agreement (the “Liberty Loan Assignment”) in the
form of Exhibit K attached hereto, whereby Liberty assigns, and the Company assumes, all of
the rights and obligations of the borrower under the Liberty Loan Documents;

               (iii) one or more assignment of interests (the “Assignments”) in the form of
Exhibit E attached hereto, dated as of the Closing Date, conveying the Contributed
Interests to the Company;

               (iv) the Purchase Money Loan Documents, and an assignment to the Company of the lender’s
rights thereunder;

               (v) copies of the assignments of the Purchased Interests to the Company;

               (vi) if necessary, tenant notification agreements, dated the Closing Date, containing
Liberty’s authorization to the tenants of the Property for payment of rental directly to the
Company or the Company’s managing agent, in form acceptable to NYSCRF and Liberty (the “Tenant
Notices”);

               (vii) a Schedule of Leases and Rent Roll for the Property that is current as of August 31,
2007, containing all the matters described in Section 4.1(b)(iv), certified by Liberty to
Liberty’s knowledge, to be true, complete and correct in all material respects as of the Closing
Date and showing no changes in the Schedule of Leases and Rent Roll, except for additional Tenant
Leases, terminations of Tenant Leases that have expired by their terms, terminations of Tenant
Leases for reasons other than the expiration of their terms not in excess of, in the aggregate,
[The confidential material contained herein has
been omitted and has been separately filed
with the Commission.] square feet of gross leaseable area, and other changes approved by NYSCRF in writing or
otherwise permitted pursuant to the terms hereof, or that do not constitute a material adverse
effect;

13

 

               (viii) evidence reasonably acceptable to the Title Company authorizing the consummation by
Liberty of the transactions contemplated hereby and the execution and delivery of the closing
documents on behalf of Liberty;

               (ix) such documents, if any, as may be required to assign or withdraw Liberty’s right to use
the trade names, if any, of the Property;

               (x) an executed certificate with respect to Liberty’s non-foreign status sufficient to comply
with the requirements of Section 1445 of the Code, commonly known as the Foreign Investment in Real
Property Tax Act of 1980, and regulations applicable thereto;

               (xi) an executed copy of Internal Revenue Service Form 1099 as required by the Tax Reform Act
of 1986, and all regulations applicable thereto;

               (xii) copies of executed Tenant Leases, to the extent in Liberty’s control and not previously
delivered to NYSCRF;

               (xiii) executed counterparts of the Partnership Agreement; and

               (xiv) executed counterparts of the Management Agreement.

          (c) NYSCRF Closing Obligations. At or before the Closing (as the case may be pursuant
to this Agreement), NYSCRF, or its permitted assignee, shall do the following:

               (i) on the day before the Closing, deposit with LaSalle Bank National Association (the
Transfer Agent for the Merger) the Contribution Amount, adjusted as provided herein, by wire
transfer in immediately available funds; and

               (ii) on the day of Closing, deliver executed counterparts of the Partnership Agreement.

          (d) Company Obligations. At or prior to Closing (as the case may be pursuant to this
Agreement), NYSCRF and Liberty shall cause the Company to assume all obligations of Liberty under
the Operating Agreements, and the Assumed Financing pursuant to the forms of documents referenced
in Section 6.1(b). In addition, at Closing, NYSCRF and Liberty shall cause the Company to
do the following:

               (i) deliver evidence acceptable to the Title Company and reasonably acceptable to Liberty,
authorizing the consummation by the Company of the transactions contemplated hereby and the
execution and delivery of the closing documents on behalf of the Company;

               (ii) execute and deliver the agreements of sale contemplated by the Recitals, if any;

               (iii) deliver the Purchase Money Loan Documents to RPLP in accordance with the Recitals, if
any;

               (iv) execute and deliver an assignment and assumption agreement sufficient for the Company to
acquire the Purchased Interests pursuant to the Recitals, if applicable;

               (v) fund the Merger Loan;

14

 

               (vi) execute and deliver the Liberty Loan Assignment; and

               (vii) deliver executed counterparts of the Management Agreement.

To the extent the consent of NYSCRF is required under the Partnership Agreement or otherwise in
order for the Company to perform any of the foregoing actions or deliver any of any of the above
items, NYSCRF hereby consents.

          (e) Further Assurances. At the Closing, the Company, Liberty and NYSCRF shall execute
and deliver, or cause to be executed or delivered, such other instruments and documents as may be
necessary in order to complete the Closing of the transactions contemplated hereunder, the form and
content of which shall be reasonably acceptable to Liberty and NYSCRF.

          (f) Delivery of Closing Documents. The Company, Liberty and NYSCRF acknowledge and
agree to use commercially reasonable efforts to execute and deliver to the Title Company to hold in
escrow all documents required to be delivered at the Closing pursuant to this Section 6.1
at least two (2) business days prior to the Closing Date.

     6.2 Title Insurance. At the Closing, Commonwealth Land Title Insurance Company (the
“Title Company”) shall furnish each Entity (or its subsidiary that is the direct owner of Property)
with an owner’s policy of title insurance (an “Owner’s Policy”) that substantially conforms to the
marked-up title commitments previously delivered by Liberty to NYSCRF. The Owner’s Policies to be
issued at Closing shall contain (to the extent available in the applicable jurisdiction): (i) an
affirmative endorsement insuring the Company that there are no violations of any restrictive
covenants affecting the Property, (ii) an access endorsement insuring vehicular and pedestrian
access to all contiguous streets from all present points of entry; (iii) a contiguity endorsement,
if applicable; (iv) a survey endorsement; (v) a location endorsement; (vi) an endorsement deleting
the creditor’s rights exception; (vii) a non-imputation endorsement; and (viii) a zoning
endorsement (completed structures, including parking and loading dock). The Title Company has
executed the joinder attached to this Agreement to evidence its agreement to, among other things,
the provisions of this Section 6.2.

     6.3 Delivery of Documents, Possession, Keys and Other Items. At the Closing, Liberty
shall (i) provide the Company with the originals of all available documents within Liberty’s
possession or control, copies of which were provided to NYSCRF pursuant to Section 3.1
hereof, and (ii) deliver or cause to be delivered to the Company all books and records in Liberty’s
possession pertaining to the Entities. All such documents which are located at the Property may be
delivered with the Property. Any other such documents shall be made available to the Company by
Liberty at a mutually convenient time and place, and Liberty may retain additional copies of such
items as it deems necessary or convenient. NYSCRF acknowledges that the Company and Liberty have
the same principal offices and that no physical transfer of such documents will be required.

     6.4 Closing Costs; Transfer Taxes.

          (a) [The confidential material contained herein has
been omitted and has been separately filed
with the Commission.]

15

 

          (c) Liberty and NYSCRF each shall pay their respective legal fees incurred in negotiating this
Agreement, the Partnership Agreement and related joint venture documents.

          (d) In the event of any post-Closing increase or decrease in the amount of transfer tax
payable hereunder, the parties hereto shall pay or be reimbursed for such increase or decrease, as
the case may be, in accordance with, and in proportion to, each party’s obligation as set forth in
this Section 6.4. This Section 6.4(d) shall survive Closing.

     7. PRORATIONS

     7.1 Initial Proration. Within [The confidential material contained herein has
been omitted and has been separately filed
with the Commission.] days after the Closing Date, the
parties shall prorate the following items as of the Closing Date:

          (a) Taxes. All real estate taxes with respect to the Property shall be prorated
between Liberty and the Company as of the Closing Date.

          (b) Rents. Rent shall be prorated as of the Closing Date, except that no proration
shall be made for rents delinquent as of the Closing Date (hereinafter called the “Delinquent
Rents”). The Company shall have no liability to Liberty for the Delinquent Rents and shall have no
obligation to collect same, provided, however, amounts collected by the Company or the Entities
from tenants owing Delinquent Rents shall be applied first to rents owed by such tenant accruing
from and after the Closing Date and then to Delinquent Rents. Any such amounts applicable to
Delinquent Rents received by the Company or the Entities shall be forwarded to Liberty within
fifteen (15) days of receipt thereof. Liberty reserves the right to pursue legal remedies against
tenants owing Delinquent Rents so long as pursuit of its legal remedies does not cause the tenant
to be evicted.

          (c) Operating Costs. All operating expenses, including utilities (to the extent not
paid directly by tenants), maintenance and other operating costs and expenses incurred by the
Entities in connection with the ownership, operation, maintenance and management of the Property
shall be prorated between Liberty and the Company as of the Closing.

          (d) Insurance Premiums. Insurance premiums shall be prorated as of the Closing Date.

          (e) Other Income and Expenses. All other income from, and expenses of, the Property,
including but not limited to public utility charges, maintenance charges and service

16

 

charges, shall
be prorated as of the Closing Date and the Company shall assume such expenses for periods
subsequent to Closing.

          (f) Federal, State and Local Taxes. To the maximum extent permissible, for Federal,
State and local tax purposes the parties will cause the Entities and their subsidiaries to treat
the Closing Date as the beginning of a fiscal period. Liberty will file all returns and pay all
taxes owing for periods through the day preceding the Closing Date and the Company will file all
returns and pay all taxes owing for periods beginning with the Closing Date. If and to the extent
that such filing of separate returns is not permitted by any taxing authority, and as to any tax
that applies to a period both before and after the Closing Date, the parties will cooperate in the
furnishing of information necessary to the preparation and filing of returns, and will pay their
respective shares of tax liability in proportion to their respective shares of the thing taxed (for
example, gross receipts or net income). The obligations of the parties hereunder shall survive
Closing until each such tax return has been filed, all such taxes owing have been paid and such
returns and payments are no longer subject to contest by the taxing authority. Notwithstanding the
foregoing, for tax purposes, closing shall be deemed to occur at 11:59 p.m. (local Washington, D.C.
time) on the day preceding the Closing Date.

          (g) Assumed Financing. Interest, credits, costs and expenses (other than the costs
and expenses described in Section 6.4(b)(iii), which shall be the sole obligation of the Company)
related to the Assumed Financing will be adjusted and apportioned between Liberty and the Company
in accordance with the following: (i) prepaid interest will be paid to Liberty by the Company and
accrued, but unpaid interest will be paid by Liberty with both to be apportioned as of the day
preceding the Closing Date; and (ii) Liberty will be entitled to receive the amounts (including
accrued interest) of any escrow and other sums on deposit with a lender under the Assumed Financing
(including any escrow reserves) when disbursed by the holder of such Assumed Financing.

     7.2 Adjustments; Reproration. After receipt of final financial statements for the
Entities for the current year or applicable fiscal period, Liberty shall prepare and present to
NYSCRF a calculation of the reproration of the profits and losses of the Entities to be passed
through to the Company. The parties shall make the appropriate adjusting payment between them
within 30 days after presentment to NYSCRF of Liberty’s calculation. This provision shall survive
the Closing.

     7.3 Indemnity.

          (a) Except for items to be prorated and reprorated by Liberty and NYSCRF pursuant to this
Article 7, Liberty hereby assumes full responsibility for any and all demands, claims,
legal or administrative proceedings, losses, liabilities, damages, penalties, fines, liens,
judgments, costs or expenses whatsoever (including, without limitation, attorneys’ fees and costs),
whether direct or indirect, known or unknown, foreseen or unforeseen, that may arise on account of
or in any way be connected with the ownership of the Interests, Entities or the Property first
arising or accruing prior to the Closing Date, including, without limitation, the Existing
Litigation. Liberty also agrees to indemnify, defend and hold the Company and NYSCRF harmless from
any claims, liabilities or costs (including reasonable attorneys’ fees) arising from Liberty’s
failure to perform said obligations.

          (b) Except for items to be prorated and reprorated by Liberty and NYSCRF pursuant to this
Article 7, the Company hereby assumes full responsibility for any and all demands, claims,
legal or administrative proceedings, losses, liabilities, damages, penalties,
fines, liens, judgments, costs or expenses whatsoever (including, without limitation,
attorneys’ fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen
(“Losses

17

 

and Liabilities”), which may arise on account of or in any way be connected with the
ownership of the Property first arising or accruing on or after to the Closing Date, excluding,
however, any Liberty Losses and Liabilities (hereinafter defined). The Company also agrees to
indemnify, defend and hold Liberty harmless from any claims, liabilities or costs (including
reasonable attorneys’ fees) arising from the Company’s failure to perform said obligations,
provided the same do not arise on account of Liberty Losses and Liabilities. As used herein,
“Liberty Losses and Liabilities” are any Losses and Liabilities which may arise on account of or in
any way be connected with any action by Liberty or the LLC (a) that was not taken in the reasonable
belief that it was within their scope of authority under the Partnership Agreement, (b)
constituting fraud, bad faith, negligence or willful misconduct, or a breach of the standards set
forth in Section 6.02(d) of the Partnership Agreement, or (c) in violation of securities
laws or criminal laws.

          (c) The provisions of this Section 7.3 shall survive the Closing.

     8. SURVIVAL

     8.1 Survival. Except as otherwise expressly provided herein, all warranties
representations, covenants, obligations and agreements contained in this Agreement shall survive
the execution and delivery of this Agreement and shall survive the Closing for a period of one (1)
year and any right of action for the breach of any representation, warranty or covenant contained
herein shall not merge with the Assignment but shall survive the Closing for such one (1) year
period and may be enforced by the Company. In addition to all other remedies that NYSCRF and/or
the Company may have at law or in equity, the Company may offset any final, non-appealable judgment
it obtains against Liberty against any distributions due to Liberty from the Company.
Notwithstanding anything contained in this Agreement to the contrary, the representations and
warranties contained in Section 4.1(a) shall survive the Closing.

     9. COMMISSIONS

     9.1 Liberty’s Indemnity. LIBERTY SHALL INDEMNIFY NYSCRF AND THE COMPANY AND HOLD AND
DEFEND NYSCRF AND THE COMPANY HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES, LIABILITIES,
DAMAGES, DEMANDS, COSTS AND EXPENSES (INCLUDING ACTUAL, REASONABLE ATTORNEYS’ FEES AT OR BEFORE THE
TRIAL LEVEL AND ANY APPELLATE PROCEEDINGS) ARISING OUT OF ANY CLAIM MADE BY ANY REALTOR, BROKER,
FINDER, OR ANY OTHER INTERMEDIARY WHO CLAIMS TO HAVE BEEN ENGAGED, CONTRACTED OR UTILIZED BY
LIBERTY IN CONNECTION WITH THE TRANSACTIONS THAT ARE THE SUBJECT MATTER OF THIS AGREEMENT. THIS
INDEMNIFICATION SHALL SURVIVE THE CLOSING.

     9.2 NYSCRF’s Indemnity. NYSCRF SHALL INDEMNIFY, HOLD HARMLESS AND DEFEND LIBERTY AND
THE COMPANY FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES, LIABILITIES, DAMAGES, DEMANDS, COSTS AND
EXPENSES (INCLUDING ACTUAL, REASONABLE ATTORNEYS’ FEES AT OR BEFORE THE TRIAL LEVEL AND ANY
APPELLATE PROCEEDINGS) ARISING OUT OF ANY CLAIM MADE BY ANY REALTOR, BROKER, FINDER OR ANY OTHER
INTERMEDIARY WHO
CLAIMS TO HAVE BEEN ENGAGED, CONTRACTED OR UTILIZED BY NYSCRF IN CONNECTION WITH THE
TRANSACTIONS THAT ARE THE SUBJECT MATTER OF

18

 

THIS AGREEMENT, INCLUDING WITHOUT LIMITATION ANY AND
ALL FEES PAYABLE TO HEITMAN CAPITAL MANAGEMENT LLC IN CONNECTION WITH THE TRANSACTIONS THAT ARE THE
SUBJECT MATTER OF THIS AGREEMENT. THIS INDEMNIFICATION SHALL SURVIVE THE CLOSING.

     10. FURTHER INSTRUMENTS

     Liberty will, whenever reasonably requested by NYSCRF, and NYSCRF will, whenever reasonably
requested by Liberty, execute, acknowledge and deliver, or cause to be executed, acknowledged and
delivered, any and all conveyances, assignments and all other instruments and documents as may be
reasonably necessary in order to complete the transaction herein provided and to carry out the
terms and provisions of this Agreement.

     11. TERMINATION AND REMEDIES

     11.1 Liberty’s Default.

          (a) Subject to the provisions of Section 11.1(b) below, if Liberty has not terminated
this Agreement pursuant to any of the provisions hereof authorizing such termination, and if prior
to or at the Closing Liberty defaults hereunder or shall have failed to have performed any of the
material covenants and/or agreements contained herein that are to be performed by Liberty at or
prior to the Closing, or if any warranty or representation made by Liberty herein is not true and
correct in all material respects, NYSCRF may, at its option, as its sole and exclusive remedies,
either (i) seek specific performance of this Agreement, or (ii) terminate this Agreement.

          (b) Notwithstanding anything in Section 11.1(a) to the contrary, NYSCRF will, prior to
the exercise of the remedies contained in Section 11.1(a), give Liberty written notice
(“NYSCRF’s Default Notice”) specifying the nature of such default. Until the date that is
five (5) days after receipt of NYSCRF’s Default Notice, Liberty may, at its option, elect to cure
such default or waive the option to cure the default; provided, however, Liberty’s failure to give
NYSCRF written notice of its election within this time period shall be deemed an election by
Liberty to waive its right to cure the default. If Liberty waives or is deemed to have waived its
right to cure the default, NYSCRF shall thereafter be entitled to exercise the remedies in
accordance with the terms of Section 11.1(a). If Liberty elects to cure the default
specified in NYSCRF’s Default Notice, Liberty shall commence to cure such default within fifteen
(15) days from the date of such election and diligently pursue such cure to completion within
forty-five (45) days (“Liberty’s Cure Period”). If Liberty fails to cure such default
within Liberty’s Cure Period to NYSCRF’s reasonable satisfaction, NYSCRF may exercise its remedies
in accordance with the terms of Section 11.1(a) hereof.

     11.2 NYSCRF’s Default.

          (a) If NYSCRF has not terminated this Agreement pursuant to any of the provisions hereof
authorizing such termination and NYSCRF defaults hereunder and fails to perform any of the
covenants and/or agreements contained herein which are to be performed by NYSCRF, Liberty shall be
entitled to, at its option, as its sole and exclusive remedies either (i) seek specific performance
of this Agreement, or (ii) terminate this Agreement.

          (b) Notwithstanding anything in Section 11.2(a) to the contrary, Liberty will, prior
to the exercise of the remedies contained in Section 11.2(a), give NYSCRF written notice
(“Liberty’s Default Notice”) specifying the nature of such default. Until the date that is
five (5)

19

 

days after receipt of Liberty’s Default Notice, NYSCRF may, at its option, elect to cure
such default or waive the option to cure the default; provided, however, NYSCRF’s failure to give
Liberty written notice of its election within this time period shall be deemed an election by
NYSCRF to waive its right to cure the default. If NYSCRF waives or is deemed to have waived its
right to cure the default, Liberty shall thereafter be entitled to exercise the remedies in
accordance with the terms of Section 11.2(a). If NYSCRF elects to cure the default
specified in Liberty’s Default Notice, NYSCRF shall commence to cure such default within fifteen
(15) days from the date of such election and shall thereafter diligently pursue such cure to
completion within forty-five (45) days (“NYSCRF’s Cure Period”). If NYSCRF is unable to
cure such default within NYSCRF’s Cure Period to Liberty’s reasonable satisfaction, Liberty may
exercise its remedies in accordance with the terms of Section 11.2(a) hereof.

     11.3 Costs and Expenses; Limitation. In the event of any default or alleged default
by either Liberty or NYSCRF hereunder that results in a party seeking to exercise its rights or
remedies pursuant to Section 11.1 or Section 11.2 above, the prevailing party under
this Agreement shall be able to recover from the non-prevailing party on demand all actual,
reasonable and necessary out-of-pocket expenses actually paid or incurred by the prevailing party
in connection with the exercise of its remedies hereunder including, without limitation, reasonable
attorneys’ fees. In no event shall either party hereto, or any direct or indirect partner, member,
shareholder, beneficiary, owner or affiliate thereof, or any officer, director, employee, trustee,
or agent of any of the foregoing or any affiliate or controlling person thereof, be liable to any
indemnified party in contract, tort or otherwise with respect to any indirect, consequential,
punitive or exemplary damages arising from or relating to this Agreement or any closing document.

     11.4 Limitation of NYSCRF Liability. Notwithstanding anything to the contrary
contained herein or in any other agreement executed in connection herewith, Liberty and the Company
expressly agree that NYSCRF shall not be liable personally or otherwise for any breach or default
by NYSCRF under this Agreement or any other agreement executed in connection with this Agreement,
except to the extent of, and only to the extent of, the NYSCRF’s Partnership Interest in the
Company. Except only for NYSCRF’s Partnership Interest in the Company, no assets of NYSCRF may be
liened, encumbered, attached, levied or executed upon to satisfy any liability of or judgment
against NYSCRF arising out of this Agreement or any other agreement executed in connection with
this Agreement. This Section 11.4 shall survive Closing.

     12. RISK OF LOSS

     If, prior to Closing, the Property or any part thereof shall be condemned or destroyed or
materially damaged by fire or other casualty (that is, damage or destruction that NYSCRF reasonably
estimates will cost in excess of [The confidential material contained herein has
been omitted and has been separately filed
with the Commission.] to repair or restore or that materially impedes access to
the Property or any material part thereof), NYSCRF shall elect to do one of the following, which
election shall be made not later than the later of (i) ten (10) days prior to Closing, or (ii) ten
(10) days following the date NYSCRF receives written notice of the condemnation or material damage:
(A) terminate this Agreement as to the Contributed Entity that owns the affected Parcel only,
whereupon the parties shall negotiate an equitable reduction in the Contribution Amount hereunder
or, if the parties do not reach agreement on such a reduction within thirty (30) days after such
casualty, NYSCRF shall be entitled to terminate this Agreement in its entirety; or (B) consummate
the transaction contemplated by this Agreement
without terminating this Agreement as to the affected Parcel notwithstanding such
condemnation, destruction or material damage. If NYSCRF elects to consummate the

20

 

transaction
contemplated by this Agreement without terminating this Agreement as to the Contributed Entity that
owns the affected Parcel, the Company shall be entitled to receive all of the condemnation proceeds
or settle the loss under all policies of insurance applicable to the destruction or damage and
receive all of the proceeds of insurance applicable thereto, and Liberty shall, at Closing and
thereafter, execute and deliver to the Company all required proofs of loss, assignments of claims
and other similar items. If there is any other damage or destruction (that is, damage or
destruction that NYSCRF reasonably estimates will cost [The confidential material contained herein has
been omitted and has been separately filed
with the Commission.] or less to repair or restore, or
that does not materially impede access to the Property or any material part thereof), Liberty shall
either completely repair or cause to be repaired such damage prior to Closing in a manner
reasonably satisfactory to NYSCRF or, at NYSCRF’s option, assign all insurance claims pertaining to
such damage or destruction to the Company by executing and delivering to the Company at Closing and
thereafter all required proofs of loss, assignments of claims and other similar items.

     Notwithstanding anything herein, Liberty shall be entitled to receive and retain, and shall
not be required to assign, any insurance proceeds for loss of the rents to have been paid prior to
Closing.

     13. PROVISIONS REGARDING HAZARDOUS SUBSTANCES

     13.1 Definitions. Unless the context otherwise specifies or requires, the following
terms shall have the respective meanings herein specified:

          (a) The term “Governmental Requirements” shall mean all laws, ordinances, statutes,
codes, rules, regulations, orders and decrees of the United States, the state, the county, the
city, or any other political subdivision in which the Property is located, and any other political
subdivision, agency or instrumentality exercising jurisdiction over Liberty or the Property,
including Hazardous Materials Laws.

          (b) The term “Hazardous Materials” shall mean (i) any “hazardous waste” as defined by
the Resource Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.), as amended
from time to time, and regulations promulgated thereunder (“RCRA”); (ii) any “hazardous
substance” as defined by the Comprehensive Environmental Response, Compensation and Liability Act
of 1980 (42 U.S.C. Section 9601 et seq.), as amended from time to time, and regulations promulgated
thereunder (“CERCLA”) (including petroleum-based products as described therein); (iii)
other petroleum and petroleum-based products; (iv) asbestos in any quantity or form which would
subject it to regulation under any applicable Hazardous Materials Law (hereinafter defined); (v)
polychlorinated biphenyls; (vi) any substance, the presence of which on the Property is prohibited
by any Hazardous Materials Law; (vii) any “extremely hazardous substance” or “hazardous chemical”
as those terms are defined in the Emergency Planning and Community Right-To-Know Act (42 U.S.C.
Section 11001 et seq.) as amended from time to time, and regulations promulgated thereunder
(“EPCRA”); (viii) any “chemical substance” as that term is defined in the Toxic Substances
Control Act (15 U.S.C. Section 2601) as amended from time to time, and regulations promulgated
thereunder (“TSCA”); (ix) any hazardous substances identified under the law of the state in
which the Property is located; and (x) any other substance, including toxic substances, that, by
any Hazardous Materials Laws, requires special handling in its collection, storage, treatment,
management, recycling or disposal. Hazardous Materials shall not include consumer products, office
supplies,
and cleaning and maintenance supplies stored and used in the ordinary course of operation of
the Property and in compliance with applicable Hazardous Materials Laws.

21

 

          (c) The term “Hazardous Materials Laws” shall mean all Governmental Requirements,
including, without limitation, RCRA and CERCLA, relating to the handling, storage, existence of or
otherwise regulating any hazardous wastes, hazardous substances, toxic substances, radioactive
materials, pollutants, chemicals, contaminants or industrial substances or relating to the removal
or remediation of any of the foregoing.

          (d) “Losses” means any and all losses, liabilities, damages (whether actual,
consequential, punitive or otherwise denominated), demands, claims, actions, judgments, causes of
action, assessments, fines, penalties, costs, and out-of-pocket expenses (including, without
limitation, attorneys’ fees and the fees of environmental consultants), of any and every kind or
character, foreseeable and unforeseeable, liquidated and contingent, proximate and remote.

          (e) The terms “release,” “disposal,” “storage” and “treatment” shall have the meaning set
forth in CERCLA, RCRA, the regulations promulgated thereunder and any other similar Hazardous
Materials Laws.

     13.2 Liberty’s Environmental Representations and Warranties. Liberty hereby
represents and warrants to NYSCRF that except as set forth on Exhibit I or in those certain
Phase I Environmental Site Assessments delivered to NYSCRF by Liberty and listed on Schedule
13.2 attached hereto (collectively, the “Environmental Reports”):

          (a) Liberty has not received any written notice of any civil, criminal or administrative suit,
claim, hearing, violation, investigation, proceeding or demand against the Property or against
Liberty or the Company with respect to the Property relating in any way to a release or use of
Hazardous Materials or compliance with Hazardous Materials Laws.

          (b) Liberty has received no written notice that the Property violates Hazardous Materials
Laws.

          (c) To Liberty’s actual knowledge, there are no under ground storage tanks at the Property.

          (d) Liberty has received no written notice asserting that there are Hazardous Materials on, in
or under the Property in violation of any Hazardous Materials Laws.

          (e) The Property has never been used by Liberty, or to Liberty’s best knowledge, by any third
parties, to generate, treat, store, dispose of or transport Hazardous Materials in quantities that
require remediation under, or are otherwise in violation of, any Hazardous Materials Laws.

     13.3 Environmental Covenant. Liberty shall not knowingly conduct or authorize
Hazardous Materials Contamination at the Property occurring after the date hereof and on or prior
to the Closing Date, and shall promptly notify NYSCRF in writing of any existing or pending
investigation or inquiry by any governmental authority in connection with any Hazardous Materials
Laws relating to the Property of which Liberty has received written notice or has actual knowledge
(as defined in Section 4.3).

     13.4 Environmental Indemnification.

          (a) Liberty hereby agrees to indemnify, defend and hold harmless NYSCRF and the Company from
and against any Losses arising out of any material misrepresentation by Liberty in the
representations and warranties set forth in Section 13.2 or by any willful breach of the
covenants set forth in Section 13.3.

22

 

          (b) Assumption of Defense.

               (i) If a party entitled to indemnification hereunder (the “Indemnified Party”)
notifies the party liable for such indemnification (the “Indemnifying Party”) of any claim,
demand, action, administrative or legal proceeding, investigation or allegation adverse to the
Indemnified Party and as to which the indemnity provided for in Section 13.4(a) applies (a
“Potential Claim”), Indemnifying Party shall assume on behalf of Indemnified Party and
conduct with due diligence and in good faith the investigation and defense thereof and the response
thereto and shall be entitled, at Indemnifying Party’s sole discretion, to settle or otherwise
dispose of any such Potential Claim; provided, that Indemnifying Party shall have the right to cure
such matter that is the subject of the Potential Claim (subject to the rights of the owner of the
Property at the time of such cure to approve the manner of such cure) if such cure will not result
in additional liability or material loss of rights to Indemnified Party, and provided further that
Indemnified Party have the right to be represented by advisory counsel of its own selection and at
its own expense; and provided further, that if any such claim, demand, action, proceeding,
investigation or allegation involves both Indemnifying Party and Indemnified Party and Indemnified
Party shall have reasonably concluded that there may be legal defenses available to it which are
inconsistent with or in addition to those available to Indemnifying Party, then Indemnified Party
shall have the right to select separate counsel reasonably acceptable to Indemnifying Party to
participate in the investigation and defense of and response to such claim, demand, action,
proceeding, investigation or allegation on its own behalf at Indemnifying Party’s expense.

               (ii) If any claim, demand, action, proceeding, investigation or allegation arises as to which
the indemnity provided for in this Section 13.4 applies, and Indemnifying Party fails to
assume as soon as reasonably practical the defense of Indemnified Party, then Indemnified Party may
contest (or, with the prior written consent of Indemnifying Party, settle) the claim, demand,
action, proceeding, investigation or allegation at Indemnifying Party’s expense using counsel
selected by Indemnified Party and reasonably acceptable to Indemnifying Party.

          (c) Notice of Losses. If Indemnified Party receives a written notice of Losses that
Indemnified Party believes are covered by this Section 13.4, then Indemnified Party shall
promptly furnish a copy of such notice to Indemnifying Party. The failure to so provide a copy of
the notice to Indemnifying Party shall not excuse Indemnifying Party from its obligations under
this Section 13.4; provided, that if Indemnifying Party is unaware of the matters described
in the notice and such failure renders unavailable defenses that Indemnifying Party might otherwise
assert, or precludes actions that Indemnifying Party might otherwise take to minimize its
obligations hereunder, then Indemnifying Party shall be excused from its obligation to indemnify
Indemnified Party against assessments, fines, costs and expenses, if any, which would not have been
incurred but for such failure. For example, if Indemnified Party fails to provide Indemnifying
Party with a copy of a notice of an obligation covered by the indemnity set out in Sections
13.4(a) and Indemnifying Party is not otherwise already aware of such obligation, and if as a
result of such failure Indemnified Party becomes liable for penalties and interest covered by the
indemnity in excess of the penalties and interest that would have accrued if Indemnifying Party had
been promptly provided with a copy of the notice, then Indemnifying Party will be excused from any
obligation to Indemnified Party to pay the excess and Indemnified Party shall indemnify
Indemnifying Party with respect to any such excess.

          (d) Rights Cumulative. The rights of NYSCRF and the Company under this Article
13 shall be in addition to any other rights and remedies of NYSCRF and the Company against
Liberty pursuant to CERCLA and NYSCRF and the Company each expressly retain any right of
reimbursement or contribution thereunder.

23

 

     14. NO ASSUMPTION

     14.1 No Assumption. The Company is not and is not deemed to be, a successor of
Liberty, it being understood that Liberty is contributing to and the Company is acquiring only the
Contributed Interests and the Purchase Money Loan Documents, subject to the Merger Loan, the
Liberty Loan and the Assumed Financing, and the rights and obligations arising thereunder; and it
is expressly understood and agreed that, except as may otherwise be expressly provided in this
Agreement and in the documents delivered at the Closing, NYSCRF has not and does not hereby assume
or agree to assume any liability whatsoever of Liberty.

     15. NOTICES

     15.1 Notices. Any notice, request, demand, instruction or other communication to be
given to either party hereunder, except those required to be delivered at the Closing, shall be in
writing, and shall be deemed to be delivered (a) upon receipt, if delivered by facsimile, (b) upon
receipt or rejection if sent by hand delivery or (c) upon delivery to a nationally recognized
overnight air courier service such as UPS or Federal Express, each addressed as follows:

	 	 	 	 	 
	 	 	If to NYSCRF:	 	New York State Common Retirement Fund

	 	 	 	 	c/o Office of the State Comptroller

	 	 	 	 	59 Maiden Lane, 30th Floor

	 	 	 	 	New York, NY 10038-4502

	 	 	 	 	Attn: Assistant Comptroller for Real Estate

	 	 	 	 	Fax No.: 212-383-1331

	 	 	 	 	Telephone No.: 212-383-1508

	 	 	 	 	 

	 	 	with additional copies to:	 	New York State Common Retirement Fund

	 	 	 	 	c/o Office of the State Comptroller

	 	 	 	 	59 Maiden Lane, 30th Floor

	 	 	 	 	New York, NY 10038-4502

	 	 	 	 	Attn: Assistant Deputy Counsel

	 	 	 	 	Fax No.: 212-681-1331

	 	 	 	 	Telephone No.: 212-383-1330

	 	 	 	 	 

	 	 	with additional copies to:	 	Heitman Capital Management LLC

	 	 	 	 	191 North Wacker Drive

	 	 	 	 	Suite 2500

	 	 	 	 	Chicago, IL 60606

	 	 	 	 	Attn: Jerome Claeys

	 	 	 	 	Fax No.: 312-251-5445

	 	 	 	 	Telephone No.: 312-541-6740

	 	 	 	 	 

	 	 	with additional copies to:	 	Cox, Castle & Nicholson LLP

	 	 	 	 	2049 Century Park East, 28th Floor

	 	 	 	 	Los Angeles, CA 90067-3284

	 	 	 	 	Attn: Amy H. Wells, Esq.

	 	 	 	 	Fax No.: 310-277-7889

	 	 	 	 	Telephone No.: 310-284-2233

24

 

	 	 	 	 	 
	 	 	and with additional copies to:	 	Heitman Capital Management LLC

	 	 	 	 	191 North Wacker Drive

	 	 	 	 	Suite 2500

	 	 	 	 	Chicago, IL 60606

	 	 	 	 	Attn: Anthony Ferrante

	 	 	 	 	Fax No.: (312) 541-6789

	 	 	 	 	Telephone No.: (312) 251-5458

	 	 	 	 	 

	 	 	If to Liberty:	 	Liberty Property Limited Partnership

	 	 	 	 	500 Chesterfield Parkway

	 	 	 	 	Malvern, Pennsylvania 19355

	 	 	 	 	Attention: Mr. Michael T. Hagan

	 	 	 	 	Fax: 610-644-4129

	 	 	 	 	Phone No: (610) 648-1716

	 	 	 	 	 

	 	 	with additional copies to:	 	Wolf Block Schorr and Solis-Cohen LLP

	 	 	 	 	1650 Arch Street, 22nd Floor

	 	 	 	 	Philadelphia, Pennsylvania 19103-2097

	 	 	 	 	Attention: Herman C. Fala, Esquire

	 	 	 	 	Fax: 215-405-2976

	 	 	 	 	Phone No.: 215-977-2076

Any notice under this Agreement delivered prior to Closing by Liberty to NYSCRF or by NYSCRF to
Liberty shall be deemed to be simultaneously delivered to and received by the Company.

     16. MISCELLANEOUS

     16.1 Entire Agreement. This Agreement and the exhibits attached hereto contain the
entire agreement between the parties and supersede all prior and contemporaneous agreements or
understandings. No modification or amendment of this Agreement shall be of any force or effect
unless made in writing and executed by NYSCRF, Liberty and the Company.

     16.2 Counterparts. This Agreement may be executed in any number of counterparts which
together shall constitute the agreement of the parties.

     16.3 Time of the Essence Time is of the essence with respect to the performance of
all obligations provided herein and the consummation of all transactions contemplated hereby.

     16.4 Assignment. This Agreement, and the rights and obligations of NYSCRF hereunder,
may be assigned by NYSCRF at any time without the consent of Liberty to any wholly owned affiliate
of NYSCRF. Upon any such assignment by NYSCRF, NYSCRF shall remain liable for all of its
obligations hereunder. In the event of any such assignment, Liberty agrees to close the
transaction contemplated hereunder with the assignee of NYSCRF. Liberty may not assign this
Agreement without the prior written consent of NYSCRF.

25

 

     16.5 Dates. Whenever any determination is to be made or action is to be taken on a
date specified in this Agreement, if such date shall fall on Saturday, Sunday or legal holiday
under the laws of the Commonwealth of Virginia or District of Columbia, then in such event said
date shall be extended to the next day which is not a Saturday, Sunday or legal holiday. All
references in this Agreement to “the date hereof,” “the date of this Agreement” or similar
references shall be deemed to refer to the date on which this Agreement has been executed and
delivered by Liberty and NYSCRF.

     16.6 Binding on Successors and Assigns. This Agreement and the terms and provisions
hereof shall inure to the benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns whenever the context so requires or admits.

     16.7 Records. NYSCRF shall not file this Agreement, nor any memorandum hereof, in any
public records without the prior written consent of Liberty, and any such memorandum which is filed
without such consent shall be, in Liberty’s sole discretion, automatically deemed null and void;
provided that Liberty may file a copy of this Agreement as an exhibit to a filing it may make with
the Securities and Exchange Commission (the “SEC”).

     16.8 Confidentiality and Public Disclosure. NYSCRF shall hold, and shall instruct all
of its employees and agents to hold, all information furnished to it pursuant to this Agreement,
and all information which it obtains pursuant to its inspection, testings and investigations
undertaken in connection herewith in confidence except as and to the extent required by law.
Liberty and NYSCRF covenant and agree that, prior to Closing, they will not issue any press
releases or otherwise disclose the existence or terms of this Agreement and that they will each
hold this Agreement and the particulars thereof and the parties thereto in confidence, except with
the reasonable approval of the other party hereto and except as may be required by law, provided
that the foregoing will not restrict the ability of Liberty to file this Agreement (and some or all
of the exhibits) as an exhibit to a filing it may make with the SEC and to make disclosures
regarding the transactions provided for by this Agreement to the extent Liberty reasonably believes
necessary to enable Liberty to comply with securities laws and SEC regulations, the rules of any
stock exchange, or the requirements of any filing or registration made by Liberty Property Trust as
the issuer of publicly traded securities or as part of information provided to its investors and/or
financial analysts. Liberty and NYSCRF shall work to prepare a joint press release, to be issued
at Closing, respecting the transactions contemplated by this Agreement.

     16.9 Termination. Upon any termination permitted under the terms of this Agreement,
NYSCRF and Liberty shall be automatically released and discharged from all further liability and
obligations under and in connection with this Agreement, subject however, to the express provisions
of this Agreement that provide for survival of certain agreements and indemnities. No termination
of this Agreement shall be effective unless executed by the terminating party and delivered to the
other party.

     16.10 Reporting Person. The Title Company is hereby designated as the “Reporting
Person” pursuant to Section 6045 of the Code and the regulations promulgated thereunder.

     16.11 Paragraph Headings. .The paragraph headings contained in the Agreement are for
convenience only and shall in no way enlarge or limit the scope or meaning of the various and
several paragraphs hereof.

     16.12 Facsimile Signatures. Executed facsimile or electronically delivered copies of
this Agreement shall be binding upon the parties herein, and facsimile or electronically delivered
signatures appearing hereon shall be deemed to be original signatures. Following execution by
facsimile or electronic delivery by both parties, NYSCRF shall execute four (4) originals of this
Agreement and forward them by overnight courier to Liberty; Liberty shall execute such

26

 

counterparts and deliver two of the same to NYSCRF the day following receipt thereof from NYSCRF.

     16.13 Exculpation.

          (a) No recourse shall be had for any obligation of Liberty under this Agreement or under any
document executed in connection herewith or pursuant hereto, or for any claim based thereon or
otherwise in respect thereof, against any past, present or future trustee, partner, officer or
employee of Liberty, whether by virtue of any statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability being expressly waived and released by
NYSCRF and the Company and all parties claiming by, through or under NYSCRF or the Company.

          (b) No recourse shall be had for any obligation of NYSCRF under this Agreement or under any
document executed in connection herewith or pursuant hereto, or for any claim based thereon or
otherwise in respect thereof, against any past, present or future trustee, shareholder, officer or
employee of NYSCRF, whether by virtue of any statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability being expressly waived and released by
Liberty and the Company and all parties claiming by, through or under Liberty or the Company.

     16.14 AS IS. THE PROPERTY IS BEING CONVEYED TO THE COMPANY (BY CONTRIBUTION OF THE
CONTRIBUTED INTERESTS AND PURCHASE OF THE PURCHASED INTERESTS) ON AN “AS IS, WHERE IS” BASIS, AND
LIBERTY MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY,
THE PHYSICAL CONDITION, FITNESS FOR USE, TITLE OR ANY OTHER MATTER RELATING TO THE PROPERTY, EXCEPT
AS EXPRESSLY AND SPECIFICALLY SET FORTH IN THIS AGREEMENT. NYSCRF REPRESENTS THAT IT IS
KNOWLEDGEABLE OF REAL ESTATE AND THAT IT IS RELYING SOLELY ON ITS OWN EXPERTISE, THAT OF NYSCRF’S
CONSULTANTS, AND THE REPRESENTATIONS AND WARRANTIES OF LIBERTY CONTAINED IN THIS AGREEMENT,
SUBJECT, HOWEVER, TO THE LIMITATIONS CONTAINED HEREIN UPON SUCH REPRESENTATIONS AND WARRANTIES, AND
THAT LIBERTY HAS OR SHALL HAVE AFFORDED NYSCRF WITH A FULL AND COMPLETE OPPORTUNITY TO MAKE ITS OWN
INDEPENDENT INVESTIGATION OF THE PROPERTY AND ALL MATTERS PERTAINING THERETO DURING THE INSPECTION
PERIOD INCLUDING, BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF AND, UPON
CLOSING, SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING, BUT NOT LIMITED TO, ADVERSE
PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY NYSCRF’S INSPECTIONS AND
INVESTIGATIONS. NYSCRF ACKNOWLEDGES AND AGREES THAT, UPON CLOSING, LIBERTY SHALL CONVEY TO THE
COMPANY, BY CONVEYANCE OF THE CONTRIBUTED INTERESTS, THE PROPERTY “AS IS, WHERE IS” WITH ALL
FAULTS, AND THERE ARE NO ORAL AGREEMENTS, WARRANTIES
OR REPRESENTATIONS (EXCEPT AS HEREIN SPECIFICALLY PROVIDED), COLLATERAL TO OR AFFECTING ANY OF
THE PROPERTY BY LIBERTY, ANY AGENT OF LIBERTY OR ANY THIRD PARTY. NYSCRF EXPRESSLY AGREES THAT THE
TERMS AND CONDITIONS OF THIS PARAGRAPH SHALL SURVIVE THE CLOSING OR TERMINATION OF THIS AGREEMENT
AND NOT MERGE THEREIN AND LIBERTY IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN
STATEMENTS, REPRESENTATIONS, OR INFORMATION PERTAINING TO THE PROPERTY FURNISHED BY ANY REAL ESTATE
BROKER, AGENT, EMPLOYEE,

27

 

SERVANT OR OTHER PERSON, UNLESS THE SAME ARE SPECIFICALLY SET FORTH OR
REFERRED TO IN THIS AGREEMENT.

     16.15 Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of Delaware and the laws of the United States applicable to
transactions in Virginia and the District of Columbia without regard to the principles of conflicts
of laws of any jurisdiction.

     16.16 Receipt of Written Notice Defined. Whenever in this Agreement the statement is
made that Liberty has or has not received written notice of certain matters (such as, by way of
example and not limitation, in Sections 4.1(b) or 13), “receipt of written notice”
by Liberty, and words of similar import, shall mean the receipt of written notice by Liberty
Property Trust or Liberty prior to the closing of the REIT Merger, and under no circumstances shall
delivery of written notice to Republic Property Trust or its affiliates prior to the completion of
the REIT Merger be deemed or imputed to be receipt of written notice by Liberty for purposes of
this Agreement or the transactions contemplated hereby.

28

 

     IN WITNESS WHEREOF, the parties have executed this Contribution Agreement as of the dates set
forth below.

     EXECUTED by NYSCRF on the 4th day of  October , 2007.

	 	 	 	 	 
	 	NEW YORK STATE COMMON RETIREMENT FUND

Thomas P. Dinapoli, Comptroller of the

State of New York, as Trustee of the

Common Retirement Fund

 	 
	 	By:  	/s/ NICK SMIRENSKY
 	 
	 	 	Name:  	Nick Smirensky 	 
	 	 	Title:  	Deputy Comptroller 	 

 

 

	 	 	 	 	 

     EXECUTED by Liberty on the  1st  day of  October , 2007.

	 	 	 	 	 	 	 
	 	 	LIBERTY:	 	 
	 
	 	 	 	 	 	 
	 	 	LIBERTY PROPERTY LIMITED PARTNERSHIP, a Pennsylvania
limited partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Liberty Property Trust, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ MICHAEL T. HAGAN	 	 
	 

	 	Name:
	 	 

MICHAEL T. HAGAN
	 	 
	 

	 	Title:
	 	CHIEF INVESTMENT OFFICER	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ WILLIAM P. HANKOWSKY	 	 
	 

	 	Name:
	 	 

WILLIAM P. HANKOWSKY
	 	 
	 

	 	Title:
	 	CHAIRMAN, PRESIDENT AND CEO	 	 

 

 

     EXECUTED by the Company on the 1st       day of       October_, 2007.

	 	 	 	 	 	 	 
	 	 	THE COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	LIBERTY WASHINGTON, LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: Liberty Washington Venture, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 	 	By: Liberty Property Limited Partnership, its sole member	 	 
	 
	 	 	 	 	 	 
	 	 	By: Liberty Property Trust, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ MICHAEL T. HAGAN	 	 
	 

	 	Name:
	 	 

MICHAEL T. HAGAN
	 	 
	 

	 	Title:
	 	CHIEF INVESTMENT OFFICER	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ WILLIAM P. HANKOWSKY	 	 
	 

	 	Name:
	 	 

WILLIAM P. HANKOWSKY
	 	 
	 

	 	Title:
	 	CHAIRMAN, PRESIDENT AND CEO	 	 

 

 

     The undersigned hereby acknowledges receipt of a fully executed original counterpart of this
Agreement and agrees to perform the functions of Title Company hereunder as of the
2nd day of Oct, 2007. The undersigned further assumes the duties of
the “Reporting Person” as described in Section 6045 of the Code and the regulations promulgated
thereunder.

	 	 	 	 	 	 	 
	 	 	TITLE COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	COMMONWEALTH LAND TITLE INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ ANDREA B. CONNORS	 	 
	 

	 	Name:
	 	 

ANDREA B. CONNORS
	 	 
	 

	 	Title:
	 	VP/OFFICE MANAGERexv10w67

 

Exhibit 10.67

ACQUISITION AND PROJECT LOAN

AGREEMENT

among

ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC,

a Delaware limited liability company

as Lead Borrower

and

ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC,

a Delaware limited liability company

FORDHAM PLACE OFFICE, LLC

a Delaware limited liability company

as Borrower,

and

The LENDERS Party Hereto,

as Lenders

and

EUROHYPO AG, NEW YORK BRANCH

as Administrative Agent

Date: As of October 5, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	 	 	 	 	 	 	 	 
	ARTICLE 1 CERTAIN DEFINITIONS	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 1.1	 	Certain Definitions	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 2 LOAN TERMS	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 2.1	 	The Commitments, Loans and Notes	 	 	29	 
	 
	 	Section 2.2	 	Conversions or Continuations of Loans	 	 	30	 
	 
	 	Section 2.3	 	Interest Rate; Late Charge	 	 	31	 
	 
	 	Section 2.4	 	Terms of Payment	 	 	32	 
	 
	 	Section 2.5	 	Extension of Maturity Date	 	 	34	 
	 
	 	Section 2.6	 	Pro Rata Treatment of Payments; Etc.	 	 	38	 
	 
	 	Section 2.7	 	Yield Protection; Etc.	 	 	41	 
	 
	 	Section 2.8	 	Agency Fee	 	 	46	 
	 
	 	Section 2.9	 	Exit Fee	 	 	46	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 3 INSURANCE, CONDEMNATION, AND IMPOUNDS	 	 	46	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 3.1	 	Insurance	 	 	46	 
	 
	 	Section 3.2	 	Condemnation Awards	 	 	51	 
	 
	 	Section 3.3	 	Use and Application of Insurance Proceeds	 	 	52	 
	 
	 	Section 3.4	 	Disbursement of Proceeds	 	 	52	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 4 DISBURSEMENTS OF THE LOANS	 	 	54	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 4.1	 	General Conditions	 	 	54	 
	 
	 	Section 4.2	 	Procedure for Making Disbursements of Loan Proceeds	 	 	55	 
	 
	 	Section 4.3	 	Loan Balancing	 	 	55	 
	 
	 	Section 4.4	 	Budget Contingencies	 	 	57	 
	 
	 	Section 4.5	 	Budget Line Items	 	 	58	 
	 
	 	Section 4.6	 	Interest; Fees; and Expenses	 	 	58	 
	 
	 	Section 4.7	 	Reserved	 	 	59	 
	 
	 	Section 4.8	 	Tenant Improvement Allowances	 	 	59	 
	 
	 	Section 4.9	 	Direct Loan Advances by Administrative Agent	 	 	61	 
	 
	 	Section 4.10	 	No Waiver or Approval by Reason of Loan Advances	 	 	61	 
	 
	 	Section 4.11	 	Authorization to Make Loan Advances
to Cure Borrower’s Defaults	 	 	61	 
	 
	 	Section 4.12	 	Designation of Lead Borrower as Agent for Borrower	 	 	61	 
	 
	 	Section 4.13	 	Administrative Agent’s Right to Make Loan Advances in Compliance	 	 	 	 
	 
	 	 	 	with the Guaranty of Completion	 	 	62	 
	 
	 	Section 4.14	 	No Third-Party Benefit	 	 	62	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 5 ENVIRONMENTAL MATTERS	 	 	63	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 5.1	 	Certain Definitions	 	 	63	 
	 
	 	Section 5.2	 	Representations and Warranties on Environmental Matters	 	 	64	 
	 
	 	Section 5.3	 	Covenants on Environmental Matters	 	 	64	 
	 
	 	Section 5.4	 	Allocation of Risks and Indemnity	 	 	65	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	 
	 	Section 5.5	 	No Waiver	 	 	66	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 6 LEASING MATTERS	 	 	66	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 6.1	 	Representations and Warranties on Leases	 	 	66	 
	 
	 	Section 6.2	 	Standard Lease Form; Approval Rights	 	 	67	 
	 
	 	Section 6.3	 	Covenants	 	 	67	 
	 
	 	Section 6.4	 	Tenant Estoppels	 	 	68	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 7 REPRESENTATIONS AND WARRANTIES	 	 	68	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 7.1	 	Organization and Power	 	 	68	 
	 
	 	Section 7.2	 	Validity of Loan Documents	 	 	68	 
	 
	 	Section 7.3	 	Liabilities; Litigation	 	 	68	 
	 
	 	Section 7.4	 	Taxes and Assessments	 	 	69	 
	 
	 	Section 7.5	 	Other Agreements; Defaults	 	 	69	 
	 
	 	Section 7.6	 	Compliance with Law; Government Approvals	 	 	69	 
	 
	 	Section 7.7	 	Location of Borrower	 	 	70	 
	 
	 	Section 7.8	 	ERISA	 	 	70	 
	 
	 	Section 7.9	 	Margin Stock	 	 	70	 
	 
	 	Section 7.10	 	Tax Filings	 	 	70	 
	 
	 	Section 7.11	 	Solvency	 	 	70	 
	 
	 	Section 7.12	 	Full and Accurate Disclosure	 	 	71	 
	 
	 	Section 7.13	 	Single Purpose Entity	 	 	71	 
	 
	 	Section 7.14	 	Property Management Agreement; Construction Management	 	 	 	 
	 
	 	 	 	Agreement; Development Agreement	 	 	71	 
	 
	 	Section 7.15	 	No Conflicts	 	 	71	 
	 
	 	Section 7.16	 	Title	 	 	72	 
	 
	 	Section 7.17	 	Use of Project	 	 	72	 
	 
	 	Section 7.18	 	Flood Zone	 	 	72	 
	 
	 	Section 7.19	 	Insurance	 	 	72	 
	 
	 	Section 7.20	 	Condemnation	 	 	72	 
	 
	 	Section 7.21	 	Utilities; Access	 	 	72	 
	 
	 	Section 7.22	 	Boundaries	 	 	73	 
	 
	 	Section 7.23	 	Separate Lots	 	 	73	 
	 
	 	Section 7.24	 	Filing and Recording Taxes	 	 	73	 
	 
	 	Section 7.25	 	Investment Company Act	 	 	73	 
	 
	 	Section 7.26	 	Foreign Assets Control Regulations, Etc.	 	 	73	 
	 
	 	Section 7.27	 	Organizational Structure	 	 	73	 
	 
	 	Section 7.28	 	Project Documents	 	 	74	 
	 
	 	Section 7.29	 	Budget	 	 	74	 
	 
	 	Section 7.30	 	Interim Disbursements	 	 	74	 
	 
	 	Section 7.31	 	Reserved	 	 	74	 
	 
	 	Section 7.32	 	Tenant Improvement Allowances	 	 	74	 
	 
	 	Section 7.33	 	Reserved	 	 	74	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 8 FINANCIAL REPORTING	 	 	74	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 8.1	 	Financial Statements	 	 	74	 
	 
	 	Section 8.2	 	Accounting Principles	 	 	76	 

ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	 
	 	Section 8.3	 	Other Information	 	 	76	 
	 
	 	Section 8.4	 	Audits	 	 	76	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 9 COVENANTS	 	 	76	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 9.1	 	Due on Sale and Encumbrance; Transfers of Interests	 	 	76	 
	 
	 	Section 9.2	 	Maintenance of the Project; Alterations	 	 	77	 
	 
	 	Section 9.3	 	Real Estate Taxes; Charges	 	 	77	 
	 
	 	Section 9.4	 	Development; Management	 	 	78	 
	 
	 	Section 9.5	 	Compliance with Laws; Inspection	 	 	79	 
	 
	 	Section 9.6	 	Legal Existence; Name, Etc.	 	 	81	 
	 
	 	Section 9.7	 	Affiliate Transactions	 	 	81	 
	 
	 	Section 9.8	 	Limitation on Other Debt	 	 	81	 
	 
	 	Section 9.9	 	Further Assurances	 	 	82	 
	 
	 	Section 9.10	 	Loan Certificates	 	 	82	 
	 
	 	Section 9.11	 	Notice of Certain Events	 	 	82	 
	 
	 	Section 9.12	 	Indemnification	 	 	82	 
	 
	 	Section 9.13	 	Covenants Regarding the Condominium Declaration	 	 	83	 
	 
	 	Section 9.14	 	Collateral Letters of Credit	 	 	84	 
	 
	 	Section 9.15	 	Hedge Agreements	 	 	86	 
	 
	 	Section 9.16	 	Reserves	 	 	87	 
	 
	 	Section 9.17	 	Handicapped Access	 	 	88	 
	 
	 	Section 9.18	 	Zoning	 	 	89	 
	 
	 	Section 9.19	 	ERISA	 	 	89	 
	 
	 	Section 9.20	 	Books and Records	 	 	89	 
	 
	 	Section 9.21	 	Foreign Assets Control Regulations	 	 	90	 
	 
	 	Section 9.22	 	Performance of Project Documents and Easements	 	 	90	 
	 
	 	Section 9.23	 	Operating Plan and Budget	 	 	91	 
	 
	 	Section 9.24	 	Proceedings to Enjoin or Prevent Construction	 	 	91	 
	 
	 	Section 9.25	 	Industrial and Commercial Incentive Program	 	 	92	 
	 
	 	Section 9.26	 	Reserved	 	 	92	 
	 
	 	Section 9.27	 	Reserved	 	 	92	 
	 
	 	Section 9.28	 	Reimbursement of Expenses	 	 	92	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 10 EVENTS OF DEFAULT	 	 	93	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 10.1	 	Payments	 	 	93	 
	 
	 	Section 10.2	 	Insurance	 	 	93	 
	 
	 	Section 10.3	 	Single Purpose Entity	 	 	93	 
	 
	 	Section 10.4	 	Real Estate Taxes	 	 	93	 
	 
	 	Section 10.5	 	Sale, Encumbrance, Etc.	 	 	93	 
	 
	 	Section 10.6	 	Representations and Warranties	 	 	94	 
	 
	 	Section 10.7	 	Other Encumbrances	 	 	94	 
	 
	 	Section 10.8	 	Various Covenants	 	 	94	 
	 
	 	Section 10.9	 	Reserved	 	 	94	 
	 
	 	Section 10.10	 	Financial Covenants	 	 	94	 
	 
	 	Section 10.11	 	Involuntary Bankruptcy or Other Proceeding	 	 	94	 
	 
	 	Section 10.12	 	Voluntary Petitions, Etc.	 	 	94	 
	 
	 	Section 10.13	 	Debt	 	 	94	 

iii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	 
	 	Section 10.14	 	Dissolution	 	 	95	 
	 
	 	Section 10.15	 	Judgments	 	 	95	 
	 
	 	Section 10.16	 	Security	 	 	95	 
	 
	 	Section 10.17	 	Guarantor Documents	 	 	95	 
	 
	 	Section 10.18	 	Reserves	 	 	95	 
	 
	 	Section 10.19	 	Co-Borrower Documents	 	 	95	 
	 
	 	Section 10.20	 	Covenants	 	 	95	 
	 
	 	Section 10.21	 	Deficiency Deposits	 	 	96	 
	 
	 	Section 10.22	 	Reserved	 	 	96	 
	 
	 	Section 10.23	 	Reserved	 	 	96	 
	 
	 	Section 10.24	 	Building Loan Agreement Default	 	 	96	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 11 REMEDIES	 	 	96	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 11.1	 	Remedies — Insolvency Events	 	 	96	 
	 
	 	Section 11.2	 	Remedies — Other Events	 	 	96	 
	 
	 	Section 11.3	 	Administrative Agent’s Right to Perform the Obligations	 	 	96	 
	 
	 	Section 11.4	 	Administrative Agent’s Right to Complete Construction	 	 	97	 
	 
	 	Section 11.5	 	Administrative Agent’s Rights under the Guaranty of Completion	 	 	98	 
	 
	 	Section 11.6	 	NO OBLIGATION WITH RESPECT TO COMPLETION OF THE IMPROVEMENTS	 	 	98	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 12 MISCELLANEOUS	 	 	98	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 12.1	 	Notices	 	 	98	 
	 
	 	Section 12.2	 	Amendments, Waivers, Etc.	 	 	99	 
	 
	 	Section 12.3	 	Compliance with Usury Laws	 	 	99	 
	 
	 	Section 12.4	 	Invalid Provisions	 	 	99	 
	 
	 	Section 12.5	 	Approvals; Third Parties; Conditions	 	 	100	 
	 
	 	Section 12.6	 	Lenders and Administrative Agent Not in Control; No Partnership	 	 	100	 
	 
	 	Section 12.7	 	Time of the Essence	 	 	100	 
	 
	 	Section 12.8	 	Successors and Assigns	 	 	101	 
	 
	 	Section 12.9	 	Renewal, Extension or Rearrangement	 	 	101	 
	 
	 	Section 12.10	 	Waivers	 	 	101	 
	 
	 	Section 12.11	 	Cumulative Rights	 	 	101	 
	 
	 	Section 12.12	 	Singular and Plural	 	 	101	 
	 
	 	Section 12.13	 	Phrases	 	 	101	 
	 
	 	Section 12.14	 	Exhibits and Schedules	 	 	101	 
	 
	 	Section 12.15	 	Titles of Articles, Sections and Subsections	 	 	101	 
	 
	 	Section 12.16	 	Promotional Material	 	 	101	 
	 
	 	Section 12.17	 	Survival	 	 	102	 
	 
	 	Section 12.18	 	WAIVER OF JURY TRIAL	 	 	102	 
	 
	 	Section 12.19	 	Remedies of Borrower	 	 	102	 
	 
	 	Section 12.20	 	Governing Law	 	 	103	 
	 
	 	Section 12.21	 	Entire Agreement	 	 	104	 
	 
	 	Section 12.22	 	Counterparts	 	 	104	 
	 
	 	Section 12.23	 	Assignments and Participations	 	 	104	 
	 
	 	Section 12.24	 	Brokers	 	 	106	 
	 
	 	Section 12.25	 	Right of Set-off	 	 	106	 

iv

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	 
	 	Section 12.26	 	Limitation on Liability of Administrative Agent’s and the Lenders’	 	 	 	 
	 
	 	 	 	Officers, Employees, etc.	 	 	107	 
	 
	 	Section 12.27	 	Cooperation with Syndication	 	 	107	 
	 
	 	Section 12.28	 	Severance of Loan	 	 	108	 
	 
	 	Section 12.29	 	Confidentiality	 	 	110	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 13 RECOURSE LIABILITY	 	 	110	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 13.1	 	Recourse Liability	 	 	110	 
	 
	 	Section 13.2	 	No Waiver of Certain Rights	 	 	112	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 14 ADMINISTRATIVE AGENT	 	 	112	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.1	 	Appointment, Powers and Immunities	 	 	112	 
	 
	 	Section 14.2	 	Reliance by Administrative Agent	 	 	113	 
	 
	 	Section 14.3	 	Defaults	 	 	113	 
	 
	 	Section 14.4	 	Rights as a Lender	 	 	116	 
	 
	 	Section 14.5	 	Standard of Care; Indemnification	 	 	116	 
	 
	 	Section 14.6	 	Non Reliance on Administrative Agent and Other Lenders	 	 	117	 
	 
	 	Section 14.7	 	Failure to Act	 	 	117	 
	 
	 	Section 14.8	 	Resignation of Administrative Agent	 	 	117	 
	 
	 	Section 14.9	 	Consents under Loan Documents	 	 	118	 
	 
	 	Section 14.10	 	Authorization	 	 	119	 
	 
	 	Section 14.11	 	Agency Fee	 	 	119	 
	 
	 	Section 14.12	 	Defaulting Lenders	 	 	119	 
	 
	 	Section 14.13	 	Liability of Administrative Agent	 	 	122	 
	 
	 	Section 14.14	 	Transfer of Agency Function	 	 	122	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 15 CASH MANAGEMENT	 	 	122	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 15.1	 	Cash Management	 	 	122	 
	 
	 	Section 15.2	 	Security Accounts Generally	 	 	122	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 16 CONTROLLED ACCOUNTS	 	 	124	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 16.1	 	Controlled Accounts	 	 	124	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 17 CONDOMINIUM PROVISIONS	 	 	125	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 17.1	 	Establishment; Covenants	 	 	125	 
	 
	 	Section 17.2	 	Subordination of Lien to Project Condominium Declarations	 	 	126	 
	 
	 	Section 17.3	 	Transfer of Collateral	 	 	127	 

LIST OF EXHIBITS AND SCHEDULES

	 	 	 
	Exhibit A

	 	Legal Description
	Exhibit B

	 	Budget
	Exhibit C-1

	 	Form of Project Loan Note
	Exhibit C-2

	 	Form of Building Loan Note
	Exhibit C-3

	 	Form of Acquisition Loan Note
	Exhibit D

	 	Form of Assignment and Assumption
	Exhibit E

	 	Notices for Conversion and Continuations

v

 

	 	 	 
	Exhibit F-1

	 	Form of Request for Loan Advance (Project Loans)
	Exhibit F-2

	 	Form of Request for Loan Advance (Building Loans)
	Exhibit F-3

	 	Form of Request for Loan Advance (Acquisition Loans)
	Exhibit G

Schedule 1

	 	Controlled Account Agreement

Commitments
	Schedule 1.1(130)

	 	Leasing Guidelines
	Schedule 1.1(193)

	 	Proportionate Share
	Schedule 2.4(1)

	 	Wire Instructions
	Schedule 3.1(1)(J)

	 	Insurance Requirements for Construction Managers, Major
Contractors, Architects and Design Professionals
	Schedule 4

	 	Advance Conditions
	Schedule 7.6

	 	Permitting Schedules
	Schedule 7.27

	 	Organizational Chart
	Schedule 7.32

	 	Tenant Improvement Allowances

vi

 

ACQUISITION AND PROJECT LOAN AGREEMENT

     ACQUISITION AND PROJECT LOAN AGREEMENT is entered into as of October 5, 2007 among ACADIA-PA
EAST FORDHAM ACQUISITIONS, LLC, a limited liability company duly organized and validly existing
under the laws of the State of Delaware (“Lead Borrower”), FORDHAM PLACE OFFICE, LLC, a
limited liability company duly organized and validly existing under the laws of the State of
Delaware (“Fordham Office”, hereinafter, jointly and severally with Lead Borrower, and
singly and collectively, “Borrower”); each of the lenders that is a signatory hereto
identified under the caption “LENDERS” on the signature pages hereof and each lender that becomes a
“Lender” after the date hereof pursuant to Section 12.23(1) (individually, a
“Lender” and, collectively, the “Lenders”); and EUROHYPO AG, NEW YORK BRANCH, as
administrative agent for the Lenders (in such capacity, together with its successors in such
capacity, the “Administrative Agent”).

RECITALS

     A. Lead Borrower is the fee owner of that certain tract of land located in the County of
Bronx, State of New York and being more fully described in Exhibit A attached hereto (the
“Land”) and the improvements currently located thereon.

     B. Borrower proposes to renovate, alter, improve, install and construct the Improvements (as
hereinafter defined) on the Land and, in connection therewith has requested and applied to the
Lenders for a loan in the amount of $75,339,243.00 (the “Total Building Loan Commitment”)
for the purposes of paying certain of the Cost of Improvement pertaining to the Project (as
hereinafter defined) including certain costs with respect to the construction and equipping of the
Improvements. The Lenders have agreed to make such loan pursuant to the Building Loan Agreement,
of even date herewith, entered into by Borrower, the Lenders and Administrative Agent (as the same
may be modified, amended and/or supplemented and in effect from time to time, the “Building
Loan Agreement”)

     C. Borrower has also requested and applied to the Lenders for a loan in the amount of
$1,930,757.00 (the “Total Project Loan Commitment”) for the purpose of paying certain costs
pertaining to the Project, which costs do not constitute a Cost of Improvement. The Lenders are
willing to make such loan on and subject to the terms and conditions hereinafter set forth.

     D. Borrower has also requested and applied to the Lenders for a loan in the amount of
$18,000,000.00 (the “Total Acquisition Loan Commitment”) for the purpose of re-financing
Borrower’s acquisition of the Land and the improvements located thereon. The Lenders are willing
to make such loan on and subject to the terms and conditions hereinafter set forth.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

1

 

ARTICLE 1

CERTAIN DEFINITIONS

     Section 1.1 Certain Definitions. As used herein, the following terms have the meanings
indicated:

          (1) “Access Laws” has the meaning assigned to such term in Section 9.17(1).

          (2) “Acquisition Loan” and “Acquisition Loans” have the respective meanings
assigned in Section 2.1(1)(b).

          (3) “Acquisition Loan Commitment” means, as to each Lender, the obligation of such
Lender to make Acquisition Loans in a principal amount up to but not exceeding the amount set
opposite the name of such Lender on Schedule 1 under the caption “Acquisition Loan
Commitment” or, in the case of a Person that becomes a Lender pursuant to an assignment permitted
under Section 12.23(1), as specified in the respective instrument of assignment pursuant to
which such assignment is effected.

          (4) “Acquisition Loan Mortgage” shall mean the Acquisition Loan Mortgage, Assignment
of Leases and Rents, Security Agreement and Fixture Filing in the amount of the Total Acquisition
Loan Commitment and executed, dated and delivered by Borrower to Administrative Agent (on behalf of
the Lenders) on the Closing Date, securing the Acquisition Loan Notes, as the same may be modified,
amended and/or supplemented and in effect from time to time.

          (5) “Acquisition Loan Notes” shall mean, collectively, the promissory note given to
each of the Lenders, each note in principal amount equal to such Lender’s Acquisition Loan
Commitment and substantially in the form of Exhibit C-3 attached hereto, to be executed, dated and
delivered by Borrower to each of the Lenders as of the Closing Date, secured by the Acquisition
Loan Mortgage, as the same may be modified, amended and/or supplemented and in effect from time to
time.

          (6) “Additional Interest” means any and all amounts which may become due and payable
by Borrower in accordance with the terms and provisions of any Hedge Agreement provided by a
Eurohypo Counterparty which is secured by the Mortgages in accordance with Section 9.15,
which amounts shall be evidenced by and payable pursuant to the Notes in favor of Eurohypo and/or
such Affiliate; provided, however, that Additional Interest shall not include any
amounts which may become due and payable pursuant to any Hedge Agreement which is not secured by
the Mortgages.

          (7) “Adjusted Libor Rate” means, for any Interest Period for any LIBOR-based Loan, a
rate per annum (rounded upwards, if necessary, to the nearest 1/32 of 1%) determined by
Administrative Agent to be equal to (a) the Libor Rate for such Interest Period multiplied by (b)
the Statutory Reserve Rate.

          (8) “Administrative Agent” has the meaning assigned to such term in the Preamble.

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          (9) “Advance Date” has the meaning assigned to such term in Section 2.6(5).

          (10) “Advanced Amount” has the meaning assigned to such term in Section
14.12(2).

          (11) “Affiliate” means with respect to any Person, another Person that directly or
indirectly controls, or is under common control with, or is controlled by, such Person and, if such
Person is an individual, any member of the immediate family (including parents, spouse, children
and siblings) of such individual and any trust whose principal beneficiary is such individual or
one or more members of such immediate family and any Person who is controlled by any such member or
trust. As used in this definition, “control” (including, with its correlative meanings,
“controlled by” and “under common control with”) shall mean possession, directly or
indirectly, of power to direct or cause the direction of management or policies (whether through
ownership of securities or partnership or other ownership interests, by contract or otherwise),
provided that, in any event, any Person that owns directly or indirectly securities having 10% or
more of the voting power for the election of directors or other governing body of a corporation or
10% or more of the partnership, membership or other ownership interests of any other Person (other
than as a limited partner of such other Person) will be deemed to control such corporation or other
Person. Notwithstanding the foregoing, no individual shall be an Affiliate of a Person solely by
reason of his or her being a director, officer, trustee or employee of such Person or one of its
Affiliates.

          (12) “Agency Fee” means the agency fee agreed to by Borrower and Administrative Agent
pursuant to the Fee Letter.

          (13) “Agreement” means this Acquisition and Project Loan Agreement, as the same may be
modified, amended and/or supplemented and in effect from time to time.

          (14) “Annual Budget” has the meaning assigned to such term in Section 9.23(1).

          (15) “Applicable Law” means any statute, law (including Environmental Laws),
regulation, ordinance, rule, judgment, rule of common law, order, decree, Government Approval,
approval, concession, grant, franchise, license, agreement, directive, guideline, policy,
requirement, or other governmental restriction or any similar form of decision of, or determination
by, or any interpretation or administration of any of the foregoing by, any Governmental Authority,
whether now or hereinafter in effect and, in each case, as amended (including any thereof
pertaining to land use, zoning and building ordinances and codes).

          (16) “Applicable Lending Office” means, for each Lender and for each Type of Loan, the
“Lending Office” of such Lender (or of an Affiliate of such Lender) designated for such Type of
Loan on the respective signature pages hereof or such other office of such Lender (or of an
Affiliate of such Lender) as such Lender may from time to time specify to Administrative Agent and
Borrower as the office by which its Loans of such Type are to be made and maintained.

          (17) “Applicable Margin” shall mean, for LIBOR-based Loans, 1.75% per annum.

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          (18) “Appraisal” means an appraisal of the Project prepared by an MAI appraiser
satisfactory to Administrative Agent, which appraisal must also (a) satisfy the requirements of
Title XI of the Federal Institution Reform, Recovery and Enforcement Act of 1989 and the
regulations promulgated thereunder (including the appraiser with respect thereto) and (b) be
otherwise in form and substance satisfactory to Administrative Agent.

          (19) “Appraised Value” means that certain appraised value of the Project as determined
by the Appraisal.

          (20) “Approved Annual Budget” shall have the meaning assigned in Section
9.23(1).

          (21) “Approved Fund” shall mean any Person (other than a natural person), including,
without limitation, any collateralized debt obligation, that is engaged in making, purchasing,
holding or investing in bank loans and similar extensions of credit in the ordinary course of its
business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender, (c) an
entity or an Affiliate of an entity that administers or manages a Lender, or (d) an Eligible
Assignee.

          (22) “Approved Lease” means (a) each lease with each Existing Tenant and (b) each
lease entered into after the Closing Date in accordance with the terms and conditions contained in
Section 6.2 as such leases and related documents may be modified or amended pursuant to the
terms of this Agreement.

          (23) “Approved Mezzanine Lender” means Eurohypo or its subsidiary.

          (24) “Approved Mezzanine Loan” means a loan (i) from the Approved Mezzanine Lender to
the Mezzanine Borrower and secured solely by a pledge of the direct or indirect ownership interests
in the Borrower, (ii) which is evidenced and secured by the Approved Mezzanine Loan Documents,
(iii) which has a term expiring on or after the Maturity Date, and (iv) which is the subject of an
intercreditor agreement between Administrative Agent and Approved Mezzanine Lender, which shall be
in form and content acceptable to Administrative Agent.

          (25) “Approved Mezzanine Loan Documents” means the documents which will evidence or
secure the Approved Mezzanine Loan which shall be subject to the approval of Administrative Agent.

          (26) “Approved Mezzanine Loan Liens” means liens in favor of Approved Mezzanine Lender
created pursuant to the Approved Mezzanine Loan Documents as security for the Approved Mezzanine
Loan and approved by Administrative Agent pursuant to the terms of the subordination and
intercreditor agreement to be entered into between Administrative Agent and Approved Mezzanine
Lender.

          (27) “Assignment and Assumption” means an Assignment and Assumption duly executed by
the parties thereto, in substantially the form of Exhibit D hereto and consented to by
Administrative Agent in accordance with Section 12.23(1).

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          (28) “Authorized Officer” means with respect to Borrower, the President or Senior Vice
President of Borrower whose names appear on a certificate of incumbency executed by the Secretary
of the Borrower and delivered concurrently with the execution of this Agreement, as such
certificate of incumbency may be amended from time to time to identify the names of the individuals
then holding such offices and certified by the Secretary of the Borrower.

          (29) “Base Rate” means, for any day, a rate per annum equal to the higher of (a) the
Federal Funds Rate for such day plus 1/2 of 1% or (b) the Prime Rate for such day. Each change in
any interest rate provided for herein based upon the Base Rate resulting from a change in the Base
Rate shall take effect at the time of such change in the Base Rate.

          (30) “Base Rate Loans” means Loans that bear interest at rates based upon the Base
Rate.

          (31) “Best Buy Lease” means that certain Lease, dated June 29, 2007, between Borrower
and Best Buy Stores, L.P., a Viriginia limited partnership.

          (32) “Bifurcation” has the meaning assigned to such term in Section 12.28.

          (33) “Bond” has the meaning assigned to such term in Section 1.1 of the Building Loan
Agreement.

          (34) “Borrower” has the meaning assigned to such term in the Preamble. With respect
to the definition of “Borrower”, except where the context otherwise provides, (i) any
representations contained herein of Borrower shall be applicable to each Borrower, (ii) any
affirmative covenants contained herein shall be deemed to be covenants of each Borrower and shall
require performance by all Borrowers, (iii) any negative covenants contained herein shall be deemed
to be covenants of each Borrower, and shall be breached if any Borrower fails to comply therewith,
(iv) the occurrence of any Event of Default with respect to any Borrower shall be deemed to be an
Event of Default hereunder, and (v) any Indebtedness and/or obligations of Borrower shall be deemed
to include any Indebtedness and/or obligations of the Borrowers, or any Indebtedness and/or
obligations of any one of them.

          (35) “Borrower Party” means Borrower, any Guarantor or Managing Member.

          (36) “Borrower’s Architect” has the meaning assigned to such term in Section 1.1 of
the Building Loan Agreement.

          (37) “Borrower’s Architect’s Agreement” has the meaning assigned to such term in
Section 1.1 of the Building Loan Agreement.

          (38) “Borrower’s Project Interest” means, from and after the establishment of the
Condominium, collectively, Borrower’s right, title and interest in and to: (a) all Units; (b) the
Improvements; (c) the Project Amenities; (d) Borrower’s rights, powers, privileges and obligations
(including, without limitation, maintenance obligations and rights to reimbursement with respect to
the Units and Project Amenities), whether as the Declarant or otherwise, under

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the Condominium
Declaration; and (e) all other right, title and interest of Borrower in and to the Project,
together with rights and appurtenances to the interests described in clause (a) through (d) above.

          (39) “Budget” means the budget attached as Exhibit B hereto as the same may be
modified from time to time in accordance with the provisions of this Agreement.

          (40) “Budget Line Items” has the meaning assigned to such term in Section 4.5.

          (41) “Building Loan” and “Building Loans” has the meaning assigned to such
term in Section 1.1 of the Building Loan Agreement.

          (42) “Building Loan Agreement” has the meaning assigned to such term in the Recitals.

          (43) “Building Loan Commitment” has the meaning assigned to such term in Section 1.1
of the Building Loan Agreement.

          (44) “Building Loan Mortgage” has the meaning assigned to such term in Section 1.1 of
the Building Loan Agreement.

          (45) “Building Loan Notes” shall mean, collectively, the promissory note given to each
of the Lenders, each note in principal amount equal to such Lender’s Building Loan Commitment and
substantially in the form of Exhibit C-2 attached hereto, to be executed, dated and
delivered by Borrower to each of the Lenders as of the Closing Date, secured by the Building Loan
Mortgage, as the same may be modified, amended and/or supplemented and in effect from time to time.

          (46) “Business Day” means (a) any day other than a Saturday, a Sunday, or other day on
which commercial banks located in New York City are authorized or required by law to remain closed
and (b) in connection with a borrowing of, a payment or prepayment of principal of or interest on,
a Conversion of or into, or an Interest Period for, a LIBOR-based Loan or a notice by Lead Borrower
with respect to any such borrowing, payment, prepayment or Conversion, the term “Business Day”
shall also exclude a day on which banks are not open for dealings in Dollar deposits in the London
interbank market.

          (47) “Cash Management Agreement” means that certain Cash Management and Security
Agreement which may be executed and delivered by Borrower, Administrative Agent (on behalf of the
Lenders) and the Depository Bank in accordance with the terms and provisions of Section
15.1, as the same may be modified, amended and/or supplemented and in effect from time to time.

          (48) “Change in Law” means, to the extent that the Administrative Agent, the Lenders,
the Borrower or the Project is subject thereto or required to comply therewith, the occurrence,
after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any
law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the
administration, interpretation or application thereof by any Governmental Authority or

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(c) the
making or issuance of any request, guideline or directive (whether or not having the force of law)
by any Governmental Authority.

          (49) “Change of Control” shall mean any transaction, transfer, admission, redemption,
withdrawal, change in organizational documents or structure, or otherwise, whether directly or
indirectly, as a result of which (a)(i) Sponsor, whether directly or indirectly, owns less than 18%
of the membership interests in and rights to distributions from Borrower, or (ii) any Person other
than Managing Member has the responsibility for managing and administering the day-to day business
and affairs of Borrower or (iii) in any other respects, any Person other than Sponsor directly or
indirectly Control Borrower, (b) (i) Sponsor no longer directly or indirectly owns at least 18% of
the membership interests in and rights to distributions from the Managing Member, or (ii) Sponsor
no longer directly or indirectly has responsibility for managing and administering the day-to day
business and affairs of the Managing Member or (iii) in any other respects, any Person other than
Sponsor directly or indirectly Controls the Managing Member, (c)(i) anyone other than Acadia
Realty Trust, whether directly or indirectly, owns less than 75% of the partnership interests in
Sponsor, or (ii) any Person other than Acadia Realty Trust has the responsibility for managing and
administering the day-to day business and affairs of Sponsor or (iii) in any other respects, any
Person other than Acadia Realty Trust directly or indirectly Controls Sponsor, or (d) a change in
the management control of Acadia Realty Trust such that Kenneth F. Bernstein is no longer the Chief
Executive Officer of Acadia Realty Trust or Kenneth F. Bernstein fails to devote a substantial
amount of his business time and attention in any consecutive six (6) month period to the affairs of
Acadia Realty Trust; provided, however, such occurrence shall not be an Event of Default if within
sixty (60) days of the occurrence thereof the Administrative Agent approves, in the exercise of its
reasonable judgment, the replacement or successor management of Acadia Realty Trust. As used in
this definition, “Control” of one Person (the “controlled Person”) by another Person (the
“controlling Person”) shall mean the possession, directly or indirectly, by the controlling
Person of the power or ability to direct or cause the direction of the management or policies of
the controlled Person, whether through the ability to exercise voting power, by contract or
otherwise (“Controlled” and “Controlling” each have the meanings correlative
thereto).

          (50) “Change Order” has the meaning assigned to such term in Section 1.1 of the
Building Loan Agreement.

          (51) “Closing Date” means the date of this Agreement.

          (52) “Co-Borrower Documents” means collectively, the Contribution Agreement, the
Co-Borrower Guaranty (Acquisitions) and the Co-Borrower Guaranty (Office).

          (53) “Co-Borrower Guaranty (Acquisitions)” means the Co-Borrower Guaranty by Lead
Borrower in favor of Administrative Agent on the Closing Date, as the same may be modified,
supplemented or amended from time to time.

          (54) “Co-Borrower Guaranty (Office)” means the Co-Borrower Guaranty by Fordham Office
in favor of Administrative Agent on the Closing Date, as the same may be modified, supplemented or
amended from time to time.

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          (55) “Collateral Letter of Credit” means a clean, irrevocable and unconditional
standby letter of credit that is (a) issued for the account of an applicant other than Borrower,
(b) issued in favor of Administrative Agent (on behalf of the Lenders), (c) issued by an issuer
having a paying office in the City of New York and having a rating with respect thereto of “A” or
better by S&P and an equivalent rating from Moody’s, or such other issuer as shall be approved by
the Administrative Agent in its sole and absolute discretion, (d) drawable, in whole or in part,
from time to time, by Administrative Agent upon the presentment to the issuer of a clean
sight-draft demanding such payment, (e) an “evergreen” letter of credit that initially has an
expiration date of at least one (1) year from the date of deposit and is automatically renewed from
year to year or one which does not expire until at least thirty (30) Business Days after the
Maturity Date, and (f) freely assignable upon presentation of customary documents by Administrative
Agent at no cost and expense to Administrative Agent.

          (56) “Commitment” means, as to each Lender, the aggregate Acquisition Loan Commitment,
Project Loan Commitment and Building Loan Commitment.

          (57) “Completion Date” means the earlier of (a) twenty (20) months after the Closing
Date, as such date may be extended due to Unavoidable Delays; provided, however,
that in no event shall the Completion Date extend beyond the date which is twenty-four (24) months
after the Closing Date, or (b) the effective date of any cancellation or termination right under
any Major Lease due to the failure to complete any portion of the Project Completion Work, unless
such cancellation or termination date is extended or waived by Tenant.

          (58) “Condominium” means that certain condominium established pursuant to the
Condominium Declaration.

          (59) “Condominium Act” means Article 9-B of the Real Property Law of the State of New
York (§ 339-d et seq.), and all amendments, modifications or replacements thereof
or regulations with respect thereto, now or hereafter enacted or promulgated.

          (60) “Condominium Declaration” means that certain Condominium Declaration filed with
the Attorney General’s Office of the State of New York and approved by Administrative Agent after
the Closing Date for the purpose of creating the Condominium.

          (61) “Condominium Documents” means the Condominium Declaration, the by-laws of any
owner’s association to be established pursuant to the Condominium Declaration to govern the affairs
of the Condominium, and any other document, instrument or agreement creating, governing or
affecting the Condominium.

          (62) “Consent and Agreement” has the meaning assigned to such term in Section 1.1 of
the Building Loan Agreement.

          (63) “Construction Consultant” has the meaning assigned to such term in Section 1.1 of
the Building Loan Agreement.

          (64) “Construction, Cost and Plan Review” means a report of the Construction
Consultant, dated October 3, 2007 and in form and substance reasonably satisfactory to
Administrative Agent, as to the Budget, the Plans and Specifications, the

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construction plan, the
Construction Schedule, and as to such other matters as Administrative Agent may reasonably request,
including, without limitation, a detailed plan and cost review.

          (65) “Construction Management Agreement” has the meaning assigned to such term in
Section 1.1 of the Building Loan Agreement.

          (66) “Construction Manager” has the meaning assigned to such term in Section 1.1 of
the Building Loan Agreement.

          (67) “Construction Schedule” has the meaning assigned to such term in Section 1.1 of
the Building Loan Agreement.

          (68) “Construction Work” has the meaning assigned to such term in Section 1.1 of the
Building Loan Agreement.

          (69) “Consumer Price Index” means the consumer price index for the New York City area
for all Urban Consumers-All Items, published monthly by the Bureau of Labor Statistics of the
United States Department of Labor.

          (70) “Contingency Fund” has the meaning assigned to such term in Section 4.4.

          (71) “Continue” “Continuation” and “Continued” refer to the
continuation pursuant to Section 2.2 of (a) a LIBOR-based Loan from one Interest Period to the next
Interest Period or (b) a Base Rate Loan at the Base Rate.

          (72) “Contribution Agreement” means the Indemnity, Subrogation and Contribution
Agreement among Lead Borrower, Fordham Office and Administrative Agent on the Closing Date, as the
same may be modified, supplemented or amended from time to time.

          (73) “Controlled Account” means one or more deposit accounts established by
Administrative Agent (for the benefit of the Lenders) at a Depository Bank that is acceptable to
Administrative Agent, and which is established and maintained in accordance with the terms and
provisions hereof.

          (74) “Controlled Account Agreement” shall have the meaning assigned to such term in
Section 16.1(1)(a).

          (75) “Controlled Account Collateral” shall have the meaning assigned to such term in
Section 16.1(3)(a).

          (76) “Convert” “Conversion” and “Converted” refer to a conversion
pursuant to the terms of this Agreement of one Type of Loans into another Type of Loans, which may
be accompanied by the transfer by a Lender (at its sole discretion) of a Loan from one Applicable
Lending Office to another.

          (77) “Cost of Improvement” has the meaning assigned to such term in Section 1.1 of the
Building Loan Agreement.

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          (78) “Date Down Endorsement” means any date down endorsement to the Title Policies or
other evidence of date down of title acceptable to Administrative Agent in its reasonable
discretion covering (a) disbursements of loan proceeds made or to be made subsequent to the date of
the Title Policies and (b) the period subsequent to the date of the Title Policies.

          (79) “Debt” means, for any Person, without duplication: (a) all indebtedness of such
Person for borrowed money, for amounts drawn under a letter of credit, or for the deferred purchase
price of property for which such Person or its assets is liable, (b) all unfunded amounts under a
loan agreement, letter of credit, or other credit facility for which such Person would be liable,
if such amounts were advanced under the credit facility, (c) all amounts required to be paid by
such Person as a guaranteed payment to partners, members (or other equity holders) or a preferred
or special dividend, including any mandatory redemption of shares or interests, (d) all
indebtedness guaranteed by such Person, directly or indirectly, (e) all obligations under leases
that constitute capital leases for which such Person is liable, and (f) all obligations of such
Person under interest rate swaps, caps, floors, collars and other interest hedge agreements, in
each case whether such Person is liable contingently or otherwise, as obligor, guarantor or
otherwise, or in respect of which obligations such Person otherwise assures a creditor against
loss.

          (80) “Declarant” means Acadia-PA East Fordham Acquisitions, LLC in its capacity as the
declarant named in the Condominium Declaration.

          (81) “Default Rate” means the rate per annum from time to time applicable to Base Rate
Loans plus 5%; provided, however, that in no event shall the Default Rate exceed
the maximum rate allowed by Applicable Law.

          (82) “Defaulting Lender” has the meaning assigned in Section 14.12(1).

          (83) “Deficiency Deposit Account” has the meaning assigned to such term in Section
4.3(1)(b).

          (84) “Deficiency Deposit” has the meaning assigned in Section 4.3(1)(b).

          (85) “Depository Bank” means at any time any depository bank which is party to a
Controlled Account Agreement.

          (86) “Design Professional” has the meaning assigned to such term in Section 1.1 of the
Building Loan Agreement.

          (87) “Dollars” and “$” means lawful money of the United States of America.

          (88) “Eligible Assignee” means any of (i) a commercial bank organized under the Laws
of the United States, or any State thereof, and having (x) total assets in excess of $1,000,000,000
and (y) a combined capital and surplus of at least $250,000,000; (ii) a commercial bank organized under the laws of any other country which is a member of the
Organization of Economic Cooperation and Development (“OECD”), or a political subdivision
of any such country, and having (x) total assets in excess of $1,000,000,000 and (y) a combined

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capital and surplus of at least $250,000,000, provided that such bank is acting through a branch or
agency located in the country in which it is organized or another country which is also a member of
OECD; (iii) a life insurance company organized under the Laws of any State of the United States, or
organized under the Laws of any country and licensed as a life insurer by any State within the
United States and having admitted assets of at least $1,000,000,000; (iv) a nationally recognized
investment banking company or other financial institution in the business of making loans, or an
Affiliate thereof (other than any Person which is directly or indirectly a Borrower Party or
directly or indirectly an Affiliate of any Borrower Party) organized under the Laws of any State of
the United States, and licensed or qualified to conduct such business under the Laws of any such
State and having (1) total assets of at least $1,000,000,000 and (2) a net worth of at least
$250,000,000; (v) an Approved Fund; (vi) any Affiliate of Eurohypo, any other Person into which, or
with which, Eurohypo is merged, consolidated or reorganized, or which is otherwise a successor to
Eurohypo by operation of law, or which acquires all or substantially all of the assets of Eurohypo,
any other Person which is a successor to the business operations of Eurohypo and engages in
substantially the same activities, or any Affiliate of any of the foregoing; or (vii) any other
Person reasonably acceptable to Borrower (to the extent Borrower’s consent to an assignment is
required for an assignment to a Person other than those identified in clauses (i) through (vi)
above, pursuant to Section 12.23(1), and provided that all other applicable conditions to
such assignment set forth in Section 12.23(1) have been satisfied, including any applicable
consent thereto to be delivered by Administrative Agent.

          (89) “Environmental Indemnity” means that certain Environmental Indemnity Agreement by
Borrower and Guarantor in favor of Administrative Agent and each of the Lenders, to be executed,
dated and delivered to Administrative Agent (on behalf of the Lenders) on the Closing Date, as the
same may be modified, amended and/or supplemented and in effect from time to time.

          (90) “Equity Balancing Contribution” has the meaning assigned in Section 4.3.

          (91) “Eurohypo” means Eurohypo AG, New York Branch.

          (92) “Eurohypo Counterparty” means Eurohypo and or (a) any Affiliate of Eurohypo, (b)
any other Person into which, or with which, Eurohypo is merged, consolidated or reorganized, or
which is otherwise a successor to Eurohypo by operation of law, or which acquires all or
substantially all of the assets of Eurohypo, (c) any other Person which is a successor to the
business operations of Eurohypo and engages in substantially the same activities, or (d) any
Affiliate of any of the Persons described in clauses (b) and (c) of this
definition.

          (93) “Event of Default” has the meaning assigned in Article 10.

          (94) “Excluded Taxes” means, with respect to the Administrative Agent, any Lender or
any other recipient of any payment to be made by or on account of any obligation of Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction
(or any political subdivision thereof) under the laws of which such recipient is organized or in

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which its principal office is located or, in the case of any Lender, in which its Applicable
Lending Office is located, (b) any branch profits taxes imposed by the United States or any similar
tax imposed by any other jurisdiction in which Borrower is located and (c) in the case of a Foreign
Lender (other than an assignee pursuant to a request by Borrower under Section 2.7(7),any
withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign
Lender becomes a party hereto (or designates a new Applicable Lending Office) or is attributable to
such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply
with Section 2.7(6)(e) except to the extent that such Foreign Lender (or its assignor, if
any) was entitled, at the time of designation of a new Applicable Lending Office (or assignment),
to receive additional amounts from Borrower with respect to such withholding tax pursuant to
Section 2.7(6)(a).

          (95) “Exculpated Party” has the meaning assigned to such term in Section 13.1.

          (96) “Existing Tenant” means (i) Sears, Roebuck and Co., a New York corporation (ii)
Best Buy Stores, L.P., a Virginia limited partnership, (iii) Walgreen Eastern Co., Inc., a New York
corporation and (iv) 24 Hour Fitness USA, Inc., a California corporation.

          (97) “Exit Fee” has the meaning assigned to such term in Section 2.9.

          (98) “Extension Period” means the First Extension Period, the Second Extension Period
and/or the Third Extension Period, as applicable.

          (99) “Federal Bankruptcy Code” shall mean Title 11 of the United States Code entitled
“Bankruptcy” as amended from time to time, and any successor statutes and rules and regulations
from time to time promulgated thereunder, and any comparable foreign laws relating to bankruptcy,
insolvency or creditor’s rights.

          (100) “Federal Funds Rate” means, for any day, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged by Federal funds
brokers on such day, provided that (a) if such day is not a Business Day, the Federal Funds
Rate for the immediately preceding Business Day shall be applicable, as determined by
Administrative Agent, or such other commercial bank as selected by Administrative Agent.

          (101) “Fee Letter” means the letter agreement, dated the date hereof, between Borrower
and Administrative Agent with respect to certain fees payable by Borrower in connection with the
Loans, as the same may be modified or amended from time to time.

          (102) “First Extension Period” has the meaning assigned to such term in Section
2.5(1).

          (103) “First Extension Notice” has the meaning assigned to such term in Section
2.5(1)(a).

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          (104) “Flood Insurance Acts” has the meaning assigned to such term in Section
3.1(1)(g).

          (105) “Foreign Lender” means any Lender that is organized under the laws of a
jurisdiction other than that in which Borrower is resident for tax purposes. For purposes of this
definition, the United States, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

          (106) “GAAP” means accounting principles generally accepted in the United States of
America.

          (107) “General Assignment” means the Assignment of Contracts, Government Approvals and
Other Project Documents, executed by Borrower in favor of Administrative Agent (on behalf of the
Lenders), as the same may be modified, supplemented and/or amended from time to time.

          (108) “Government Approval” means any action, authorization, consent, approval,
license, lease, ruling, permit, tariff, certification, exemption, filing or registration by or with
any Governmental Authority, including all licenses, permits, allocations, authorizations, approvals
and certificates obtained by or in the name of, or assigned to, Borrower and used in connection
with the ownership, construction, operation, use or occupancy of the Project, including building
permits, zoning and planning approvals, business licenses, licenses to conduct business,
certificates of occupancy and all such other permits, licenses and rights.

          (109) “Governmental Authority” means any governmental department, commission, board,
bureau, agency, regulatory authority, instrumentality, judicial or administrative body, federal,
state, local, or foreign having jurisdiction over the matter or matters in question.

          (110) “Guaranty of Completion” means the Completion Guaranty executed by Guarantor to
Administrative Agent (on behalf of the Lenders) on the Closing Date, as the same may be modified,
supplemented or amended from time to time.

          (111) “Guarantor” means Acadia Strategic Opportunity Fund II, LLC.

          (112) “Guarantor Documents” means collectively, the Guaranty of Completion, the
Recourse Guaranty, and the Environmental Indemnity.

          (113) “Hard Costs” has the meaning assigned to such term in Section 1.1 of the
Building Loan Agreement.

          (114) “Hazardous Materials” has the meaning assigned in Section 5.1(5).

          (115) “Hedge Agreement” means any interest rate hedge agreement between Borrower and
Eurohypo or one or more financial institutions providing for the transfer or mitigation of interest risks either generally or under specific contingencies, as the same may
be modified, amended and/or supplemented and in effect from time to time.

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          (116) “Hedge Pledge” means that certain Pledge and Security Agreement, to be executed,
dated and delivered by Borrower to Administrative Agent at any time Borrower elects to enter into a
Hedge Agreement, as the same may be modified, amended and/or supplemented and in effect from time
to time.

          (117) “Improvements” means, an approximately 285,000 square foot mixed-use
retail/office building to be comprised, following completion of the Construction Work, of (a)
approximately 125,000 square feet of retail space (the “Retail Component”), (b) an
approximately 160,000 square foot, 14-story, Class A office tower (the “Office Component”),
(c) all storage space contained therein, all signage improvements and all of the other
improvements to be constructed on the Land, as more particularly described in the Plans and
Specifications, and (d) the Tenant Improvement Work, to the extent required pursuant to Approved
Leases.

          (118) “In Balance” has the meaning assigned to such term in Section 4.3.

          (119) “Indebtedness” has the meaning assigned to such term in the Mortgages.

          (120) “Indemnified Taxes” means all Taxes other than Excluded Taxes.

          (121) “Independent Manager” means, in the case of a corporation, limited liability
company or limited partnership, a director, member or manager that is a natural person who has no
affiliation with any Borrower Party and who is approved by Administrative Agent.

          (122) “Initial Equity Contribution” means the amount of unreimbursed equity
contributed by Borrower as a cash contribution to the Project including, without limitation,
acquisition cost and development costs, prior to the initial funding of the Loans and as a
condition thereto, which amount (subject to Schedule 4 — Part A, paragraph 30) shall be
not less than $24,479,400.00 as verified by Administrative Agent pursuant to Schedule 4 — Part
A.

          (123) “Insurance Premiums” has the meaning assigned in Section 4.4.

          (124) “Insurance Proceeds Deficiency” has the meaning assigned to such term in
Section 3.4(5).

          (125) “Interest Period” means, with respect to any LIBOR-based Loan, each period
commencing on the date such LIBOR-based Loan is made or Converted from a Base Rate Loan or (in the
event of a Continuation) the last day of the immediately preceding Interest Period for such Loan
and ending on the numerically corresponding day in the first, second, third, sixth or twelfth (if
available from all Lenders) calendar month thereafter, as Lead Borrower may select as provided in
Section 2.6(4); provided that (i) each Interest Period that commences on the last Business
Day of a calendar month (or on any day for which there is no numerically corresponding day in the
appropriate subsequent calendar month) shall end on the last Business Day of the appropriate
subsequent calendar month; (ii) each Interest Period that would otherwise end on a day that is not
a Business Day shall end on the next succeeding Business Day (or, if such next succeeding Business Day falls in the next succeeding calendar month, on the
immediately preceding Business Day); (iii) no Interest Period shall have a duration of less than
one month and, if the Interest Period for any LIBOR-based Loan would otherwise be a shorter

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period,
such Loan shall bear interest at the Base Rate for Base Rate Loans; (iv) in no event shall any
Interest Period extend beyond the Maturity Date; and (v) there may be no more than four (4)
separate Interest Periods in respect of LIBOR-based Loans outstanding at any one time

          (126) “Interest Rate Hedge Period” has the meaning assigned to such term in
Section 9.15(1)

          (127) “Interest Reserve” has the meaning assigned to such term in Section 4.3.

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

          (129) “Land” has the meaning assigned in the Recitals.

          (130) “Leasing Guidelines” means the Leasing Guidelines described in Schedule 1.1(130)
attached hereto.

          (131) “Lender” and “Lenders” have the respective meanings assigned to such
terms in the Preamble.

          (132) “Libor Rate” means, for any Interest Period for any LIBOR-based Loan, the rate
per annum appearing on Page 3750 of the Dow Jones (Telerate) Service (or on any successor or
substitute page, or any successor to or substitute for such Service, as determined by
Administrative Agent from time to time for purposes of providing quotations of interest rates
applicable to Dollar deposits in the London interbank market) at approximately 11:00 a.m. London
time on the date two (2) Business Days prior to the first day of such Interest Period as the rate
for the offering of Dollar deposits having a term comparable to such Interest Period, provided that
if such rate does not appear on such page, or if such page shall cease to be publicly available, or
if the information contained on such page, in the reasonable judgment of Administrative Agent shall
cease accurately to reflect the rate offered by leading banks in the London interbank market as
reported by any publicly available source of similar market data selected by Administrative Agent,
the Libor Rate for such Interest Period shall be determined from such substitute financial
reporting service as Administrative Agent in its reasonable discretion shall determine.

          (133) “LIBOR-based Loans” means Loans that bear interest at rates based on rates
referred to in the definition of “Libor Rate.”

          (134) “Lien” means any interest, or claim thereof, in the Project securing an
obligation owed to, or a claim by, any Person other than the owner of the Project, whether such
interest is based on common law, statute or contract, including the lien or security interest
arising from a deed of trust, mortgage, assignment, encumbrance, pledge, security agreement,
conditional sale or trust receipt or a lease, consignment or bailment for security purposes. The
term “Lien” shall include reservations, exceptions, encroachments, easements, rights of way, covenants, conditions, restrictions, leases and other title exceptions and encumbrances
affecting the Project.

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          (135) “Lien Law” means the Lien Law of the State of New York, as amended from time to
time.

          (136) “Loans” means the loans to be made by the Lenders to Borrower under this
Agreement and all other amounts evidenced or secured by the Loan Documents.

          (137) “Loan Documents” means: (a) this Agreement, (b) the Building Loan Agreement,
(c) the Notes, (d) the Guarantor Documents, (e) the Security Documents, (f) the Co-Borrower
Documents, (g) each Consent and Agreement, (h) any letter of credit provided to Administrative
Agent in connection with the Loan (i) the Environmental Indemnity, (j) the Fee Letter, (k) the
Subordination of Property Management Agreement, (l) such assignments of management agreements,
contracts and other rights as may be required by Administrative Agent, (m) all other documents
evidencing, securing, governing or otherwise pertaining to the Loans, and (n) all modifications,
amendments, supplements or replacements of any of the foregoing.

          (138) “Loan Transactions” has the meaning assigned to such term in Section
2.6(3).

          (139) “Major Contract” has the meaning assigned to such term in Section 1.1 of the
Building Loan Agreement.

          (140) “Major Contractor” has the meaning assigned to such term in Section 1.1 of the
Building Loan Agreement.

          (141) “Major Lease” means any lease with an Existing Tenant and any other lease that
(a) accounts for five percent (5%) or more of the total gross rental revenue of the Project and/or
(b) is for 10,000 rentable square feet or more.

          (142) “Majority Lenders” means Lenders holding at least 66
2/3% of the aggregate
outstanding principal amount of the Loans or, if the Loans shall not have been made, at least 66
2/3%
of the Commitments.

          (143) “Managing Member” means Acadia-P/A Holding Company, LLC, a Delaware limited
liability company, as sole member under the organizational documents of Borrower and its successors
as permitted under the Loan Documents.

          (144) “Material Adverse Effect” means a material adverse effect, as determined by
Administrative Agent, in its reasonable judgment and discretion, on (a) the Project or the
business, operations, financial condition, liabilities or capitalization of Borrower, (b) the
ability of Borrower to perform its obligations under any of the Loan Documents to which it is a
party, including the timely payment of the principal or interest on the Loans or other amounts
payable in connection therewith, (c) the ability of any Borrower Party to perform its obligations
under any of the Loan Documents to which it is a party, (d) the validity or enforceability of any
of the Loan Documents or (e) the rights and remedies of the Lenders and Administrative Agent under
any of the Loan Documents.

          (145) “Maturity Date” means the earlier of (a) October 5, 2009, as such date may
extended pursuant to Section 2.5, or (b) any earlier date on which all of the Loans are

16

 

required to be paid in full, by acceleration or otherwise, under this Agreement or any of the other
Loan Documents.

          (146) “Mezzanine Borrower(s)” has the meaning assigned in Section 12.28.

          (147) “Mezzanine Option” has the meaning assigned in Section 12.28.

          (148) “Minor Contract” has the meaning assigned to such term in Section 1.1 of the
Building Loan Agreement.

          (149) “Minor Contractor” has the meaning assigned to such term in Section 1.1 of the
Building Loan Agreement.

          (150) “Mold” has the meaning assigned to such term in Section 5.1(6).

          (151) “Moody’s” means Moody’s Investor Services, Inc.

          (152) “Mortgages” means, collectively, the (a) Project Loan Mortgage, Assignment of
Leases and Rents, Security Agreement and Fixture Filing, (b) the Building Loan Mortgage, Assignment
of Leases and Rents, Security Agreement and Fixture Filing and (c) the Acquisition Loan Mortgage,
Assignment of Leases and Rents, Security Agreement and Fixture Filing, each executed by Borrower in
favor of Administrative Agent (on behalf of the Lenders), covering the Project, as the same may be
modified, amended and/or supplemented and in effect from time to time.

          (153) “Mortgage Borrower” has the meaning assigned in Section 12.28(2).

          (154) “Mortgage Loan” has the meaning assigned in Section 12.28(2).

          (155) “Net Operating Income” means the amount by which Operating Revenues exceed
Operating Expenses.

          (156) “Notes” means, collectively, the Acquisition Loan Notes, the Project Loan Notes
and the Building Loan Notes.

          (157) “Notice of Default” has the meaning assigned in Section 14.3(1).

          (158) “Occupancy” or “Occupy” means (a) with respect to any tenant (other than
tenants and licensees covered by clause (b) below), such tenant shall have (i) accepted (or been
deemed to have accepted in accordance with the terms of its lease) the delivery of all or
substantially all of the space to be demised under the terms of its respective lease, including any
Tenant Improvement Work to be performed by Borrower, subject in each case to Punch List Items, and
(ii) commenced paying rent in accordance with the terms and conditions of its lease, and (b) with
respect to any licensee of the signage or antenna tenants or licensees at the Project, such
licensee or tenant, as applicable, shall have accepted the delivery of all of its respective
premises, including any Tenant Improvement Work to be performed by Borrower.

17

 

          (159) “OECD” has the meaning assigned to such term in the definition of “Eligible
Assignee” herein.

          (160) “Office Component” has the meaning assigned to such term in the definition of
“Improvements” herein.

          (161) “Operating Expenses” means all reasonable and necessary expenses of operating
the Project in the ordinary course of business which are paid in cash by Borrower and which are
directly associated with and fairly allocable to the Project for the applicable period, including
ad valorem real estate taxes and assessments, insurance premiums, regularly scheduled tax impounds
paid to Administrative Agent, maintenance costs (including, without limitation, costs required to
be incurred pursuant to the Condominium Declaration), property management fees and costs not to
exceed four percent (4%) of Operating Revenues, accounting, legal, and other professional fees, and
other expenses incurred by Administrative Agent and reimbursed by Borrower under this Agreement and
the other Loan Documents, deposits to any capital reserves required by Administrative Agent, wages,
salaries, personnel expenses, but excluding debt service, capital expenditures, any of the
foregoing expenses which are paid from deposits to cash reserves previously included as Operating
Expenses, any payment or expense for which Borrower was or is to be reimbursed from proceeds of the
Loans or insurance or by any third party, and any non-cash charges such as depreciation and
amortization. Any management fee or other expense payable to Borrower or to an Affiliate of
Borrower shall be included as an Operating Expense only with Administrative Agent’s prior approval.
Operating Expenses shall not include federal, state or local income taxes or legal and other
professional fees unrelated to the operation of the Project.

          (162) “Operating Revenues” means all cash receipts of Borrower from operation of the
Project or otherwise arising in respect of the Project after the date hereof which are properly
allocable to the Project for the applicable period, including receipts from leases and parking
agreements, concession fees and charges and other miscellaneous operating revenues, proceeds from
rental or business interruption insurance, proceeds of any loans (other than the Loans and any
refinancing of the Loans) obtained by Borrower after the date hereof which are secured by the
Project (less reasonable and customary expenses incurred in procuring and closing such loan and
actually paid in cash to individuals or entities other than Borrower or any Affiliate of Borrower
and without implying any consent of Administrative Agent or any Lender to the granting of any
security for any such loans), withdrawals from cash reserves (except to the extent any operating
expenses paid therewith are excluded from Operating Expenses), in all cases, determined in
accordance with GAAP, but excluding (a) security deposits and earnest money deposits until they are
forfeited by the depositor, (b) advance rentals (i.e. more than thirty (30) days in advance) until
they are earned, (c) lump sum lease buy-out payments made by tenants in connection with any
surrender, cancellation or termination of their lease, except to the extent equitably spread over
the remaining months of the term of such lease, and (d) proceeds from a sale or other disposition.

          (163) “Other Taxes” means any and all present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies arising from any payment made under
any Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to,
any Loan Document.

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          (164) “Participant” has the meaning assigned to such term in Section 12.23(3).

          (165) “Payment Date” means the first Business Day of each calendar month.

          (166) “Patriot Act” means the USA PATRIOT Act of 2001, Pub. L. No. 107 56.

          (167) “Payor” has the meaning assigned to such term in Section 2.6(5).

          (168) “Permitted Encumbrances” means with respect to the Project, those exceptions to
title set forth in the Title Policies issued to Administrative Agent pursuant to Schedule 4.

          (169) “Permitted Transfer” shall mean any of the following transfers, provided there
is no Change of Control as a result of such transfer:

               (a) a transfer by devise or descent or by operation of law upon the death of a member, partner
or shareholder of Borrower or any Affiliate of Borrower, so long as Lead Borrower delivers notice
to Administrative Agent as soon as practicable thereafter and that Borrower or such Affiliate is
promptly reconstituted, if applicable, following the death of such member partner or shareholder;

               (b) transfers for estate planning purposes of an individual’s interest in Borrower or any
Affiliate of Borrower to the spouse or any lineal descendant of such individual, or to a trust for
the benefit of any one or more of such individual, spouse or lineal descendant, so long as Borrower
or such Affiliate is reconstituted, if required, following such transfer;

               (c) the sale or pledge, in one or a series of transactions, of the stock, limited partnership
interests or non-managing membership interests (as the case may be) in Borrower or an Affiliate of
Borrower; provided, however, that no such transfers shall result in any sale, transfer, conveyance,
mortgage, pledge, or assignment of the legal or beneficial ownership of the Project, and as a
condition to each such transfer, Administrative Agent shall receive no less than thirty (30) days
prior written notice of such proposed transfer;

               (d) a transfer by P/A Associates, LLC (“P/A Associates”) of 100% of its member
interest in Managing Member to Acadia Strategic Opportunity Fund II, LLC (“Fund II”) or an
Affiliate of Fund II;

               (e) the sale, transfer, or issuance of stock in Acadia Realty Trust (the “Trust”), in
the ordinary course of business, provided such stock is listed on the NYSE or other nationally
recognized stock exchange; and

               (f) a transfer made pursuant to Section 17.3.

          (170) “Permitting Schedule” has the meaning assigned to such term in Section
7.6.

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          (171) “Person” means any individual, corporation, partnership, joint venture,
association, joint stock company, trust, trustee, estate, limited liability company, unincorporated
organization, real estate investment trust, government or any agency or political subdivision
thereof, or any other form of entity.

          (172) “Plans and Specifications” has the meaning assigned to such term in Section 1.1
of the Building Loan Agreement.

          (173) “Policy” and “Policies” have the respective meanings assigned to such
terms in Section 3.1(2).

          (174) “Potential Default” means the occurrence of any event or condition which, with
the giving of notice, the passage of time, or both, would constitute an Event of Default.

          (175) “Prime Rate” means the rate of interest from time to time announced by Eurohypo
at its principal U.S. office as its prime commercial lending rate, it being understood that such
prime commercial rate is a reference rate and does not necessarily represent the lowest or best
rate being charged by Eurohypo to any customer.

          (176) “Prohibited Person” shall mean any Person:

               (a) listed in the Annex to, or otherwise subject to the provisions of, the Executive Order No.
13224 on Terrorist Financing, effective September 24, 2001, and relating to Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (the
“Executive Order”);

               (b) that is owned or controlled by, or acting for or on behalf of, any person or entity that
is listed to the Annex to, or is otherwise subject to the provisions of, the Executive Order;

               (c) with whom any Lender is prohibited from dealing or otherwise engaging in any transaction
by any terrorism or money laundering law, including the Executive Order;

               (d) who is known to Borrower to commit, threaten or conspire to commit or support “terrorism”,
as defined in the Executive Order;

               (e) that is named as a “specially designated national and blocked person” on the most current
list published by the U.S. Treasury Department Office of Foreign Assets Control at its official
website, http://www.treas.gov.ofac/t11sdn.pdf or at any replacement website or other replacement
official publication of such list; or

               (f) who is known to Borrower to be an Affiliate of or affiliated with a Person listed above.

          (177) “Project” has the meaning assigned to such term in Section 1.1 of the Building
Loan Agreement.

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          (178) “Project Amenities” means those areas or elements of, easements over, interests
in or licenses or rights to use, those portions of the Project that are granted to Units in the
Condominium Declaration.

          (179) “Project Completion Work” has the meaning assigned to such term in Section 1.1
of the Building Loan Agreement.

          (180) “Project Costs” means, collectively, the Project Loan Costs, the Hard Costs and
the Soft Costs.

          (181) “Project Documents” has the meaning assigned to such term in Section 1.1 of the
Building Loan Agreement.

          (182) “Project Loan” and “Project Loans” have the respective meaning assigned
to such terms in Section 2.1(1)(a).

          (183) “Project Loan Budget” shall mean the portion of the Budget designated as the
Project Loan Budget, as the same may be modified from time to time in accordance with the
provisions of this Agreement.

          (184) “Project Loan Commitment” means, as to each Lender, the obligation of such
Lender to make Project Loans in a principal amount up to but not exceeding the amount set opposite
the name of such Lender on Schedule 1 under the captions “Project Loan Commitment” or, in
the case of a Person that becomes a Lender pursuant to an assignment permitted under Section
12.23(1), as specified in the respective instrument of assignment pursuant to which such
assignment is effected.

          (185) “Project Loan Costs” shall mean any costs relating to the construction of the
Project, including Tenant Improvement Allowances, which do not constitute a Cost of Improvement.

          (186) “Project Loan Mortgage” shall mean the Project Loan Mortgage, Assignment of
Leases and Rents and Security Agreement in the amount of the Total Project Loan Commitment and
executed, dated and delivered by Borrower, to Administrative Agent (on behalf of the Lenders) on
the Closing Date, securing the Project Loan Notes, as the same may be modified, amended and/or
supplemented and in effect from time to time.

          (187) “Project Loan Notes” shall mean, collectively, the promissory note given to each
of the Lenders, each note in principal amount equal to such Lender’s Project Loan Commitment and
substantially in the form of Exhibit C-1 attached hereto, to be executed, dated and delivered by
Borrower to each of the Lenders as of the Closing Date, secured by the Project Loan Mortgage, as
the same may be modified, amended and/or supplemented and in effect from time to time.

          (188) “Project Work Substantial Completion Conditions” has the meaning assigned to
such term in Section 1.1 of the Building Loan Agreement.

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          (189) “Property Management Agreement” means that certain Property Management Agreement
dated as of August 15, 2007 between Property Manager and Borrower with respect to the management of
the Project by the Property Manager, together with any property management agreements entered into
with future Property Managers in accordance with the terms of this Agreement.

          (190) “Property Manager” means Acadia-P/A Management Services, LLC, a Delaware limited
liability company, which is initially the manager of the Project under the Property Management
Agreement, together with any successor property managers appointed for the Project in accordance
with the terms of this Agreement.

          (191) “Property Transfer” has the meaning assigned to such term in Section
17.3.

          (192) “Property Transfer Conditions” has the meaning assigned to such term in
Section 17.3

          (193) “Proportionate Share” means, with respect to each Lender, initially the
percentage set forth opposite such Lender’s name on Schedule 1.1(193) attached
hereto, as such percentage may be modified from time to time pursuant to Assignment and Acceptances
and as recorded in Administrative Agent’s register of Lenders for the Loan.

          (194) “Proposed Lender” has the meaning assigned to such term in Section
2.7(7).

          (195) “Punch List Items” has the meaning assigned to term in Section 1.1 of the
Building Loan Agreement.

          (196) “Qualified Manager” shall mean either (x) Acadia-P/A Management Services LLC or
(y) a reputable and experienced management organization possessing experience (or having principals
possessing experience) of not less than ten (10) years managing projects which are similar in size,
scope, class, use and value to the Project and is (or has principals currently) managing at least
ten (10) properties similar in size, scope, class, use and value as the Project.

          (197) “Real Estate Taxes” has the meaning assigned to such term in Section
9.3.

          (198) “Recourse Guaranty” means the Recourse Guaranty executed by Guarantor to
Administrative Agent (on behalf of the Lenders) on the Closing Date, as the same may be modified,
supplemented or amended from time to time.

          (199) “Regulation D” means Regulation D of the Board of Governors of the Federal
Reserve System of the United States of America (or any successor), as the same may be modified and
in effect from time to time.

          (200) “Replacement Lender” has the meaning assigned to such term in Section
14.12(6).

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          (201) “Request for Loan Advance” has the meaning assigned to such term in Section
4.2.

          (202) “Requesting Lender” has the meaning assigned to such term in Section
2.7(7).

          (203) “Required Payment” has the meaning assigned to such term in Section
2.6(5).

          (204) “Restoration Consultant” has the meaning assigned to such term in Section
3.4(2).

          (205) “Retail Component” has the meaning assigned to such term in the definition of
“Improvements” herein.

          (206) “Retainage” has the meaning assigned to such term in Section 1.1 of the Building
Loan Agreement.

          (207) “S&P” means Standard & Poor’s Ratings Service, a division of The McGraw Hill
Companies, Inc.

          (208) “Second Extension Period” has the meaning assigned to such term in Section
2.5(2).

          (209) “Second Extension Notice” has the meaning assigned to such term in Section
2.5(2)(a)

          (210) “Security Accounts” means, collectively, the Sweep Account and the Deficiency
Deposit Account.

          (211) “Security Account Collateral” has the meaning assigned to such term in
Section 15.2(1).

          (212) “Security Documents” means collectively, the Mortgages, the Construction
Manager’s Consent, the Subordination of Property Management Agreement, any Controlled Account
Agreement and all Uniform Commercial Code financing statements filed or to be filed to perfect any
security interests arising under any of the Loan Documents.

          (213) “Single Purpose Entity” shall mean a corporation, limited partnership or limited
liability company which at all times on and after the date hereof, unless otherwise approved in
writing by Administrative Agent:

               (a) is organized solely for the purpose of one of the following: (a) acquiring, developing,
owning, holding, selling, leasing, transferring, exchanging, managing and operating the Project,
entering into this Agreement, refinancing the Project in connection with a permitted repayment of
the Loans, and transacting any and all lawful business that is incident, necessary and appropriate
to accomplish the foregoing or (b) acting as the sole managing member of Borrower;

23

 

               (b) is not engaged and will not engage in any business unrelated to (a) the acquisition,
development, ownership, management or operation of the Project or (b) acting as the sole managing
member of Borrower;

               (c) does not have and will not have any assets other than those related to (a) the Project or
(b) its membership interest in Borrower;

               (d) has not engaged, sought or consented to and will not engage in, seek or consent to any
dissolution, winding up, liquidation, consolidation, merger, sale of all or substantially all of
its assets, transfer of partnership or membership interests in violation of this Agreement (if such
entity is a general partner in a limited partnership or a member in a limited liability company),
or any amendment of its articles of incorporation, by-laws, limited partnership certificate,
limited partnership agreement, articles of organization, certificate of formation or operating
agreement (as applicable) with respect to the matters set forth in this definition without the
prior written consent of Administrative Agent;

               (e) in the case of Borrower, has and will have, as its only managing member, the Managing
Member, which shall be a limited liability company that is a Single Purpose Entity and has at least
one (1) Independent Manager;

               (f) if such entity is (i) a limited liability company, has articles of organization, a
certificate of formation and/or an operating agreement, as applicable, (ii) a limited partnership,
has a certificate of limited partnership and limited partnership agreement, or (ii) a corporation,
has a certificate of incorporation or articles of incorporation, that in each case provide that
such entity shall not, without the consent without the unanimous written consent of all of its
partners or members (and, in the case of the managing member of the Managing Member, its
Independent Manager(s)): (a) dissolve, merge, liquidate or consolidate itself or any Person in
which it has a direct or indirect legal or beneficial ownership interest; (b) sell all or
substantially all of its assets or the assets of any other Person in which it has a direct or
indirect legal or beneficial ownership interest; (c) engage in any other business activity or
permit any Person in which it has a direct or indirect legal or beneficial ownership interest to
engage in any other business activity, in each case except as permitted pursuant to the Loan
Documents, (iv) file a bankruptcy or insolvency petition or otherwise institute insolvency
proceedings with respect to itself or to any other Person in which it has a direct or indirect
legal or beneficial ownership interest, or (v) amend its organizational documents with respect to
the matters set forth in this definition without the consent of Administrative Agent;

               (g) if such entity is a limited partnership, has as its only general partner a Single Purpose
Entity;

               (h) is and will pay its debts and liabilities (including, as applicable, shared personnel and
overhead expenses) from its assets as the same shall become due, and is maintaining and will
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;

               (i) has not failed and will not fail to correct any known misunderstanding regarding the
separate identity of such entity;

24

 

               (j) has maintained and will maintain its accounts, books and records separate from any other
Person and will file its own tax returns, except to the extent that it is required or permitted to
file consolidated tax returns by law;

               (k) has not commingled and will not commingle its funds or assets with those of any other
Person;

               (l) has held and will hold its assets in its own name;

               (m) has maintained and will maintain financial statements that properly and accurately show
its separate assets and liabilities and do not show the assets or liabilities of any other Person,
and has not permitted and will not permit its assets to be listed as assets on the financial
statement of any other entity other than an Affiliate (but in such case noting that such entity and
the Affiliate are separate entities);

               (n) has maintained and will maintain a sufficient number of employees or has entered into
appropriate alternative arrangements for workforce services in light of its contemplated business
operations;

               (o) has observed and will observe all corporate, partnership or limited liability company
formalities, as applicable;

               (p) has not incurred and will not incur any Debt other than (a) with respect to Borrower, the
Loans and (b) trade and operational debt which is (i) incurred in the ordinary course of business,
(ii) not more than sixty (60) days past due, (iii) with trade creditors, (iv) with respect to
Borrower, in the aggregate, in an amount less than $1,000,000, and (v) not evidenced by a note;

               (q) has not and will not assume or guarantee or become obligated for the debts of any other
Person or hold out its credit as being available to satisfy the obligations of any other Person
except as permitted pursuant to this Agreement;

               (r) has not and will not acquire obligations or securities of its members or shareholders or
any other Affiliate;

               (s) has allocated and will allocate fairly and reasonably any overhead expenses that are
shared with an Affiliate, including, but not limited to, paying for shared office space and
services performed by any officer or employee of an Affiliate;

               (t) maintains and uses and will maintain and use separate invoices and checks bearing its
name. The stationary, invoices, and checks utilized by the Single Purpose Entity or utilized to
collect its funds or pay its expenses shall bear its own name and shall not bear the name of any
other entity unless such entity is clearly designated as being the Single Purpose Entity’s agent;

               (u) except in connection with the Loans, has not pledged and will not pledge its assets for
the benefit of any other Person;

25

 

               (v) has conducted business, held itself out and identified itself and will conduct business,
hold itself out and identify itself as a separate and distinct entity under its own name or in a
name franchised or licensed to it by a Person other than an Affiliate of Borrower and not as a
division or part of any other Person;

               (w) has not made and will not make loans to any Person or hold evidence of indebtedness issued
by any other Person (other than cash and securities issued by an entity that is not an Affiliate or
subject to common ownership with such entity);

               (x) has not identified and will not identify its partners, members or shareholders, or any
Affiliate of any of them, as a division or part of it, and has not identified itself and shall not
identify itself as a division of any other Person;

               (y) has not entered into or been a party to, and will not enter into or be a party to, any
transaction with its partners, members, shareholders or Affiliates except in the ordinary course of
its business and on terms which are intrinsically fair, commercially reasonable and are no less
favorable to it than would be obtained in a comparable arm’s-length transaction with an unrelated
third party;

               (z) has not and will not have any obligation to indemnify its partners, officers, directors or
members, as the case may be, unless such obligation is fully subordinated to the Indebtedness and
will not constitute a claim against it in the event that, after payment of the Indebtedness, cash
flow is insufficient to pay such obligation; and

               (aa) if such entity is a corporation, it is required to consider the interests of its
creditors in connection with all corporate actions.

          (214) “Site Assessment” means an environmental engineering report for the Project
prepared by an engineer engaged by Administrative Agent at Borrower’s expense, and in a manner and
scope satisfactory to Administrative Agent.

          (215) “Soft Costs” has the meaning assigned to such term in Section 1.1 of the
Building Loan Agreement.

          (216) “Special Advance Lender” has the meaning assigned to such term in Section
14.12(1).

          (217) “Sponsor” means Acadia Realty Limited Partnership.

          (218) “State” means the State of New York.

          (219) “Statutory Reserve Rate” means a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number one minus the
aggregate of the maximum reserve percentages (including any marginal, special, emergency or
supplemental reserves) expressed as a decimal established by the Board to which Administrative
Agent is subject with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently
referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages
shall include those imposed pursuant to such Regulation D. Eurodollar

26

 

Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets that may be
available from time to time to any Lender under such Regulation D or any comparable regulation.
The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any
change in any reserve percentage.

          (220) “Subguard Policy” has the meaning assigned to such term in Section 1.1 of the
Building Loan Agreement.

          (221) “Subordination of Property Management Agreement” means that certain
Subordination of Property Management Agreement, dated the date hereof, by the Property Manager in
favor of Administrative Agent (on behalf of the Lenders), as the same may be modified, amended
and/or supplemented and in effect from time to time.

          (222) “Survey” means that certain survey delivered to Administrative Agent pursuant to
Schedule 4 — Part A, paragraph 11 as the same may be modified from time to time.

          (223) “Sweep Account” has the meaning assigned to such term in Section 15.1.

          (224) “Syndication” has the meaning assigned to such term in Section 12.27.

          (225) “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental Authority, including
any interest, additions to tax or penalties applicable thereto.

          (226) “Tenant Allowance Plans” means, as to each tenant under an Approved Lease which
is receiving any Tenant Improvement Allowance, the plans received by Borrower pursuant to the
applicable Approved Lease and approved by Borrower and Borrower’s Architect covering tenant work
under Tenant Improvement Allowances, to be certified by Borrower to Administrative Agent and the
Lenders and approved by the applicable tenant, Borrower, all required Governmental Authorities, and
either (x) within the Budget or (y) approved reasonably by Administrative Agent.

          (227) “Tenant Estoppel” means an estoppel in form and substance reasonably acceptable
to Administrative Agent, to be completed, executed, dated and delivered by the applicable tenant to
Administrative Agent (on behalf of the Lenders) and Borrower pursuant to the terms of this
Agreement.

          (228) “Tenant Improvement Allowances” means allowances for Tenant Improvement Work.

          (229) “Tenant Improvement Plans” has the meaning assigned to such term in Section 1.1
of the Building Loan Agreement.

          (230) “Tenant Improvement Work” has the meaning assigned to such term in Section 1.1
of the Building Loan Agreement.

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          (231) “Third Extension Period” has the meaning assigned to such term in Section
2.5(3).

          (232) “Third Extension Notice” has the meaning assigned to such term in Section
2.5(3)(a).

          (233) “Third-Party Counterparty” has the meaning assigned to such term in Section
9.15(3).

          (234) “Third-Party Hedge Agreement” has the meaning assigned to such term in Section
9.15(3).

          (235) “Threshold Amount” means $2,000,000.

          (236) “Title Insurer” means, collectively, Royal Abstract of New York, LLC and NY Land
Services, as co-insurers in amounts approved by Administrative Agent, through title insurance
placed by Commonwealth Land Title Insurance Company, Stewart Title Insurance Company, and
LandAmerica, respectively.

          (237) “Title Policies” has the meaning assigned in Schedule 4 — Part A,
paragraph 10.

          (238) “Total Acquisition Loan Commitment” has the meaning assigned to such term in the
Recitals.

          (239) “Total Building Loan Commitment” has the meaning assigned to such term in the
Recitals.

          (240) “Total Project Loan Commitment” has the meaning assigned to such term in the
Recitals.

          (241) “Type” means the type of Loan made hereunder, i.e. whether such Loan is a Base
Rate Loan or LIBOR-based Loan.

          (242) “Unavoidable Delay” has the meaning assigned to such term in Section 1.1 of the
Building Loan Agreement.

          (243) “Unit” means each unit of the Condominium, together with all rights, interests
and easements in and to the Project Amenities that are held by the owner of such unit as a result
of the operation of the terms of the Condominium Declaration.

          (244) “Unit Annual Assessments” means the assessments allocated to each Unit and
collected by Declarant as set forth in the Condominium Declaration.

          (245) “Unpaid Amount” has the meaning assigned to such term in Section
14.12(2).

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          (246) “Unsatisfactory Work” has the meaning assigned to such term in Section 1.1 of
the Building Loan Agreement.

ARTICLE 2

LOAN TERMS

     Section 2.1 The Commitments, Loans and Notes.

          (1) Loans.

               (a) Each Lender severally agrees, on the terms and conditions of this Agreement, to make loans
(each advance of such a loan being a “Project Loan” and collectively, the “Project
Loans”) on a non-revolving basis to Borrower in Dollars from time to time in amounts equal to
its Proportionate Share of the aggregate amount of Project Loans to be made of such time;
provided, however, that in no event shall the aggregate principal amount advanced
by each Lender exceed the amount of the Project Loan Commitment of such Lender. The Project Loans
shall be advanced for the payment of Project Loan Costs in accordance with the Project Loan Budget.

               (b) Each Lender severally agrees, on the terms and conditions of this Agreement, to make loans
(each advance of such a loan being an “Acquisition Loan” and collectively, the
“Acquisition Loans”) on a non-revolving basis to Borrower in Dollars on the Closing Date in
an amount equal to its Proportionate Share of the Total Acquisition Loan Commitment. The
Acquisition Loans shall be advanced for purposes of re-financing Borrower’s cost of acquiring its
interest in the Land.

          (2) Requests for Loan Advances. Advances with respect to the Acquisition Loans shall be made
on the Closing Date. With respect to the other Loans, Lead Borrower shall give Administrative
Agent (and the Construction Consultant) a Request for Loan Advance as provided in Section
4.2. Administrative Agent shall give each Lender notice of any such Request for Loan Advance
in accordance with Section 2.6(4). Not later than 12:00 noon New York time on the date
specified for each Loan, each Lender shall make available for the account of its Applicable Lending
Office to Administrative Agent as specified by Administrative Agent, in immediately available
funds, such Lender’s Proportionate Share of each Loan to be made pursuant hereto. After
Administrative Agent’s receipt of such funds and upon fulfillment of the applicable conditions set
forth in Article 4 and Schedule 4, Administrative Agent shall make such funds
available to Lead Borrower by depositing the same in an account designated by Lead Borrower by the
end of business on the applicable advance date.

          (3) Changes of Commitments.

               (a) The respective Commitments shall reduce pro rata automatically by reason of any prepayment
of the Loans applicable thereto in the amount of any such prepayment.

               (b) If the Maturity Date is extended in accordance with Section 2.5, all of the
unfunded Commitments (other than for Tenant Improvement Allowances with respect to

29

 

the Office Component and any remaining Retainage, which will terminate on the First Extension
Maturity Date) then remaining at the commencement of the extended loan period shall be
automatically terminated.

          (4) Lending Offices. The Loans of each Lender shall be made and maintained at such Lender’s
Applicable Lending Office for Loans of such Type.

          (5) Several Obligations. The failure of any Lender to make any Loan to be made by it on the
date specified therefor shall not relieve any other Lender of its obligation to make its Loan, but
neither any Lender nor Administrative Agent shall be responsible for the failure of any other
Lender to make a Loan to be made by such other Lender.

          (6) Notes.

               (a) Project Loan Notes. The Project Loans made by each Lender shall be evidenced by a Project
Loan Note of Borrower, payable to such Lender in a principal amount equal to the amount of its
Project Loan Commitment as originally in effect and otherwise duly completed.

               (b) Building Loan Notes. The Building Loans made by each Lender shall be evidenced by a
Building Loan Note of Borrower, payable to such Lender in a principal amount equal to the amount of
its Building Loan Commitment as originally in effect and otherwise duly completed.

               (c) Acquisition Loan Notes. The Acquisition Loans made by each Lender shall be evidenced by
an Acquisition Loan Note of Borrower, payable to such Lender in a principal amount equal to the
amount of its Acquisition Loan Commitment as originally in effect and otherwise duly completed.

               (d) Substitution, Exchange and Subdivision of Notes. No Lender shall be entitled to have its
Notes substituted or exchanged for any reason, or subdivided for promissory notes of lesser
denominations, except in connection with a permitted assignment of all or any portion of such
Lender’s Commitment, Loans and Notes pursuant to Section 12.9 and Section 12.23
(and, if requested by any Lender, Borrower agrees to so substitute or exchange any Notes and enter
into note splitter agreements in connection therewith).

               (e) Loss, Theft, Destruction or Mutilation of Notes. In the event of the loss, theft or
destruction of any Note, upon Borrower’s receipt of a reasonably satisfactory indemnification
agreement executed in favor of Borrower by the holder of such Note, or in the event of the
mutilation of any Note, upon the surrender of such mutilated Note by the holder thereof to
Borrower, Borrower shall execute and deliver to such holder a new replacement Note in lieu of the
lost, stolen, destroyed or mutilated Note.

     Section 2.2 Conversions or Continuations of Loans

          (1) Subject to Section 2.6(3), Section 2.7(2) and Section 2.7(3), Lead Borrower shall have the
right to Convert Loans of one Type into Loans of another Type or Continue Loans of one Type as
Loans of the same Type, at any time or from time to time;

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provided that: (a) Lead Borrower shall give Administrative Agent notice of each such
Conversion or Continuation as provided in Section 2.6(4); (b) LIBOR-based Loans may be Converted
only on the last day of an Interest Period for such Loans unless Borrower complies with the terms
of Section 2.7(5) and (c) subject to Section 2.7(1) and Section 2.7(3), any Conversion or
Continuation of Loans shall be pro rata among the Lenders. Notwithstanding the foregoing, and
without limiting the rights and remedies of Administrative Agent and the Lenders under Article 11,
in the event that any Event of Default exists, Administrative Agent may (and at the request of the
Majority Lenders shall) suspend the right of Lead Borrower to Convert any Loan into a LIBOR-based
Loan, or to Continue any Loan as a LIBOR-based Loan for so long as such Event of Default exists, in
which event all Loans shall be Converted (on the last day(s) of the respective Interest Periods
therefor) or Continued, as the case may be, as Base Rate Loans. In connection with any such
Conversion, a Lender may (at its sole discretion) transfer a Loan from one Applicable Lending
Office to another.

          (2) Notwithstanding anything to the contrary contained in this Agreement, at any time that a
Hedge Agreement is in effect, Lead Borrower shall have the right to choose only an Interest Period
with respect to the principal amount equal to the notional amount under such Hedge Agreement which
is the same as the Interest Rate Hedge Period which is the same as the Interest Rate Hedge Period.

     Section 2.3 Interest Rate; Late Charge.

          (1) Borrower hereby promises to pay to Administrative Agent for account of each Lender
interest on the unpaid principal amount of each Loan made by such Lender for the period from and
including the date of such Loan to but excluding the date such Loan shall be paid in full, at the
following rates per annum:

               (a) during such periods as such Loan is a Base Rate Loan, the Base Rate; and

               (b) during such periods as such Loan is a LIBOR-based Loan, for each Interest Period relating
thereto, the Adjusted Libor Rate for such Loan for such Interest Period plus the Applicable
Margin.

          (2) Accrued interest on each Loan shall be payable (i) monthly in arrears on each Payment Date
and (ii) in the case of any Loan, upon the payment or prepayment thereof or the Conversion of such
Loan to a Loan of another Type (but only on the principal amount so paid, prepaid or Converted),
except that interest payable at the Default Rate shall be payable from time to time on demand.

          (3) Notwithstanding anything to the contrary contained herein, after the Maturity Date and
during any period when an Event of Default exists, Borrower shall pay to Administrative Agent for
the account of each Lender (i) interest at the applicable Default Rate on the outstanding principal
amount of any Loan made by such Lender, (ii) any interest payments thereon not paid when due and
(iii) interest on any other amount payable by Borrower hereunder, under the Notes and any other
Loan Documents.

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          (4) Promptly after the determination of any interest rate provided for herein or any change
therein, Administrative Agent shall give notice thereof to the Lenders to which such interest is
payable and to Lead Borrower, but the failure of Administrative Agent to provide such notice shall
not affect Borrower’s obligation for the payment of interest on the Loans.

          (5) In addition to any sums due under this Section 2.3, Borrower shall pay to
Administrative Agent for the account of the Lenders a late payment premium in the amount of five
percent (5)% of any payments of interest or other sums under the Loans made more than five (5) days
after the due date thereof (other than the principal balance due on the Maturity Date), which late
payment premium shall be due with any such late payment or upon demand by Administrative Agent.
Such late payment charge represents the reasonable estimate of Borrower and the Lenders of a fair
average compensation for the loss that may be sustained by the Lenders due to the failure of
Borrower to make timely payments. Such late charge shall be paid without prejudice to the right of
Administrative Agent and the Lenders to collect any other amounts provided herein or in the other
Loan Documents to be paid or to exercise any other rights or remedies under the Loan Documents.

          (6) Borrower shall pay Additional Interest under the Notes in accordance with the terms of any
Hedge Agreement provided by a Eurohypo Counterparty.

     Section 2.4 Terms of Payment. The Loans shall be payable as follows:

          (1) Interest. Borrower shall pay interest in arrears on each Payment Date in accordance with
the wire transfer instructions set forth in Schedule 2.4(1) hereto (or such other
instructions as Administrative Agent may from time to time provide) until all amounts due under the
Loan Documents are paid in full. Subject to the provisions of Article 4 and Section
2.1, such accrued interest shall be payable from the interest reserves established pursuant to
the Budget; provided, however, that such reserves shall not limit Borrower’s
obligation to pay such accrued interest.

          (2) Amounts Prepaid. No amounts paid or prepaid by the Borrower under the Loans shall be
available to be reborrowed by the Borrower.

          (3) Maturity. On the Maturity Date, Borrower shall pay to Administrative Agent (on behalf of
the Lenders) all outstanding principal, accrued and unpaid interest, and any other amounts due
under the Loan Documents.

          (4) Optional Prepayments. Subject to the provisions of Section 2.4(6) and Section
2.7(5), Borrower shall have the right to prepay Loans in whole or in part, without premium or
penalty; provided that: (a) Lead Borrower shall give Administrative Agent notice of each such
prepayment as provided in Section 2.6(4) (and, upon the date specified in any such notice
of prepayment, the amount to be prepaid shall become due and payable hereunder) and (b) partial
prepayments shall be in the minimum aggregate principal amounts specified in Section
2.6(3).

          (5) Mandatory Prepayments. If a casualty or condemnation shall occur with respect to the
Project, Borrower, upon Borrower’s or Administrative Agent’s receipt of the applicable insurance
proceeds or condemnation award, shall prepay the Loan, if required by the

32

 

provisions of Article
3, on the dates and in the amounts specified therein without premium or penalty (but subject to
the provisions of Section 2.4(6) and Section 2.7(5)). Nothing in this Section
2.4(5) shall be deemed to limit any obligation of Borrower under the Mortgages or any other
Security Document, including any obligation to remit to a collateral or similar account maintained
by Administrative Agent pursuant to the Mortgages or any of the other Security Documents the
proceeds of insurance, condemnation award or other compensation received in respect of any casualty
or condemnation. Prepayments pursuant to this Section 2.4(5) shall be applied to the Loans
then outstanding pro rata in the order set forth in Section 2.4(6).

          (6) Interest and Other Charges on Prepayment. If the Loans are prepaid, in whole or in part,
pursuant to Section 2.4(4) or Section 2.4(5), each such prepayment shall be made on
the prepayment date specified in the notice to Administrative Agent pursuant to Section
2.6(4), together with (a) the accrued and unpaid interest (including accrued and unpaid
Additional Interest, if applicable(which may include certain early termination payments, in
accordance with the terms of any applicable Hedge Agreement provided by a Eurohypo Counterparty))
on the principal amount prepaid, (b) any amounts payable to a Lender pursuant to Section
2.7(5) as a result of such prepayment while an Adjusted Libor Rate is in effect and (c) the
Exit Fee, if any, payable pursuant to Section 2.9.

          (7) Application of Payments. Lead Borrower shall, at the time of Borrower’s making of each
payment under this Agreement or any Note for the account of any Lender, specify to Administrative
Agent (which shall so notify the intended recipient(s) thereof) the Loans or other amounts payable
by Borrower hereunder to which such payment is to be applied (and in the event that Lead Borrower
fails to so specify, or if an Event of Default has occurred and is continuing, Administrative Agent
may distribute such payment to the Lenders for application in such manner as it may determine to be
appropriate, subject to Section 2.6(1) and any other agreement among Administrative Agent and the
Lenders with respect to such application).

          (8) Payments by Borrower. Except to the extent otherwise provided therein, all payments to be
made by Borrower under the Loan Documents shall be made in Dollars, in immediately available funds,
without deduction, set-off or counterclaim, to Administrative Agent at an account designated by
Administrative Agent by notice to Lead Borrower, not later than 2:00 p.m., New York City time, on
the date on which such payment shall become due (each such payment made after such time on such due
date to be deemed to have been made on the next succeeding Business Day).

          (9) Forwarding of Payments by Administrative Agent. Except as otherwise agreed by
Administrative Agent and the Lenders, each payment received by Administrative Agent under this
Agreement or any Note for account of any Lender shall be paid by Administrative Agent promptly to
such Lender, in immediately available funds, for account of such Lender’s Applicable Lending Office
for the Loan or the other obligation in respect of which payment is made.

          (10) Extension to Next Business Day. If the due date of any payment under this Agreement or
any Note would otherwise fall on a day that is not a Business Day, such date

33

 

shall be extended to
the next succeeding Business Day, and interest shall be payable for any principal so extended for
the period of such extension.

     Section 2.5 Extension of Maturity Date.

          (1) Borrower may, at its option, extend the term for a period of six (6) months to the six
month anniversary of the original Maturity Date (the “First Extension Maturity Date” and
the applicable period being, the “First Extension Period”), subject to the satisfaction of
the following conditions:

               (a) Lead Borrower shall notify (the “First Extension Notice”) Administrative Agent of
Borrower’s exercise of such option between forty-five (45) and ninety (90) days prior to the
original Maturity Date;

               (b) No Event of Default exists and is continuing as of the date of the First Extension Notice,
as of the original Maturity Date or would result from the extension of the maturity of the Loans
for the First Extension Period;

               (c) With respect to the Retail Component, one-hundred percent 100% of the Approved Leases
shall be in full force and effect with tenants in Occupancy pursuant to Approved Leases who are not
in material default under their respective Approved Lease, and such Approved Leases shall provide
for an aggregate fixed minimum rent (as determined in a manner reasonably acceptable to
Administrative Agent) of no less than $5,860,000;

               (d) With respect to the Office Component, the Office Component shall be fifty percent (50%)
leased with tenants pursuant to Approved Leases who are not in material default under their lease;

               (e) At Administrative Agent’s request, Borrower shall use commercially reasonable efforts to
provide to Administrative Agent, written estoppels in form and substance reasonably satisfactory to
Administrative Agent, executed by tenants under any Approved Lease confirming the term, rent, and
other provisions and matters relating to such Approved Leases;

               (f) The ratio of (a) the total outstanding principal balance of the Loans to (b) the value of
the Project does not exceed 70% based on a new Appraisal obtained by Administrative Agent with a
value date as of not more than sixty (60) days prior to the original Maturity Date, such Appraisal
to be at Borrower’s expense;

               (g) Borrower shall have satisfied all of the Project Work Substantial Completion Conditions
prior to the Completion Date;

               (h) All Government Approvals for the Improvements shall have been received to the extent then
applicable, with copies (if applicable) having been delivered to Administrative Agent;

               (i) Current financial statements regarding Borrower (dated not earlier than ninety (90) days
prior to the First Extension Notice) and all other financial statements and

34

 

other information as
may be required under this Agreement and the Loan Documents regarding Borrower and the Project
shall have been submitted promptly to Administrative Agent;

               (j) In the opinion of Administrative Agent, there shall not have occurred any Material Adverse
Effect;

               (k) Whether or not the extension becomes effective, Borrower shall pay all out-of-pocket costs
and expenses incurred by Administrative Agent and the Lenders in connection with the proposed
extension (pre- and post-closing), including appraisal fees and reasonable legal fees; all such
costs and expenses shall be due and payable upon demand, and any failure to pay such amounts shall
constitute a default under this Agreement and the Loan Documents;

               (l) Not later than the original Maturity Date, (i) the extension shall have been documented to
the Lenders’ reasonable satisfaction and consented to by Borrower, Administrative Agent and all the
Lenders, including the execution and delivery by Guarantor of reaffirmations of their respective
obligations under the Guarantor Documents and (ii) Administrative Agent shall have been provided
with an updated title report and judgment and lien searches, and appropriate title insurance
endorsements shall have been issued as required by Administrative Agent; and

               (m) Borrower shall pay to Administrative Agent (for the benefit of the Lenders in accordance
with their Proportionate Shares) on the original Maturity Date a non-refundable extension fee equal
to 0.125% of an amount equal to the outstanding principal amount at such time.

          (2) Borrower may, at its option, extend the term for a period of six (6) months to the first
anniversary of the original Maturity Date (the “Second Extension Maturity Date” and the
applicable period being, the “Second Extension Period”), subject to the satisfaction of the
following conditions:

               (a) Lead Borrower shall notify (the “Second Extension Notice”) Administrative Agent of
Borrower’s exercise of such option between forty-five (45) and ninety (90) days prior to the First
Extension Maturity Date;

               (b) No Event of Default exists and is continuing as of the date of the Second Extension
Notice, as of the First Extension Maturity Date or would result from the extension of the maturity
of the Loans for the Second Extension Period;

               (c) With respect to the Retail Component, one-hundred percent 100% of the Approved Leases
shall be in full force and effect with tenants in Occupancy pursuant to Approved Leases who are not
in material default under their respective Approved Lease, and such Approved Leases shall provide for an aggregate fixed minimum rent (as determined in a
manner reasonably acceptable to Administrative Agent) of no less than $5,860,000;

               (d) With respect to the Office Component, the Office Component shall be eighty-three percent
(83%) leased with tenants pursuant to Approved Leases who are not in material default under their
lease;

35

 

               (e) At Administrative Agent’s request, Borrower shall use reasonable commercially reasonable
efforts to provide to Administrative Agent, written estoppels in form and substance reasonably
satisfactory to Administrative Agent, executed by tenants under any Approved Lease confirming the
term, rent, and other provisions and matters relating to such Approved Leases;

               (f) All Government Approvals for the Improvements shall have been received to the extent then
applicable, with copies (if applicable) having been delivered to Administrative Agent;

               (g) Current financial statements regarding Borrower (dated not earlier than ninety (90) days
prior to the Second Extension Notice) and all other financial statements and other information as
may be required under this Agreement and the Loan Documents regarding Borrower and the Project
shall have been submitted promptly to Administrative Agent;

               (h) In the opinion of Administrative Agent, there shall not have occurred any Material Adverse
Effect;

               (i) Whether or not the extension becomes effective, Borrower shall pay all out-of-pocket costs
and expenses incurred by Administrative Agent and the Lenders in connection with the proposed
extension (pre- and post-closing), including appraisal fees and reasonable legal fees; all such
costs and expenses shall be due and payable upon demand, and any failure to pay such amounts shall
constitute a default under this Agreement and the Loan Documents;

               (j) Not later than the First Extension Maturity Date, (i) the extension shall have been
documented to the Lenders’ reasonable satisfaction and consented to by Borrower, Administrative
Agent and all the Lenders, including the execution and delivery by Guarantor of reaffirmations of
their respective obligations under the Guarantor Documents and (ii) Administrative Agent shall have
been provided with an updated title report and judgment and lien searches, and appropriate title
insurance endorsements shall have been issued as required by Administrative Agent; and

               (k) Borrower shall pay to Administrative Agent (for the benefit of the Lenders in accordance
with their Proportionate Shares) on the First Extension Maturity Date a non-refundable extension
fee equal to 0.125% of an amount equal to the outstanding principal amount at such time.

          (3) Borrower may, at its option, extend the term for a period of six (6) months to the first
anniversary of the First Extension Maturity Date (the “Third Extension Maturity Date” and
the applicable period being, the (“Third Extension Period”), subject to the satisfaction of
the following conditions:

               (a) Lead Borrower shall notify (the “Third Extension Notice”) Administrative Agent of
Borrower’s exercise of such option between forty-five (45) and ninety (90) days prior to the Second
Extension Maturity Date;

36

 

               (b) No Event of Default exists and is continuing as of the date of the Third Extension Notice,
as of the Second Extension Maturity Date or would result from the extension of the maturity of the
Loans for the Third Extension Period;

               (c) With respect to the Retail Component, one-hundred percent 100% of the Approved Leases
shall be in full force and effect with tenants in Occupancy pursuant to Approved Leases who are not
in material default under their respective Approved Lease, and such Approved Leases shall provide
for an aggregate fixed minimum rent (as determined in a manner reasonably acceptable to
Administrative Agent) of no less than $5,860,000;

               (d) With respect to the Office Component, the Office Component shall be ninety percent (90%)
leased with tenants pursuant to Approved Leases who are not in material default under their lease;

               (e) At Administrative Agent’s request, Borrower shall use commercially reasonable efforts to
provide to Administrative Agent, written estoppels in form and substance reasonably satisfactory to
Administrative Agent, executed by tenants under any Approved Lease confirming the term, rent, and
other provisions and matters relating to such Approved Leases;

               (f) The ratio of (a) the total outstanding principal balance of the Loans to (b) the value of
the Project does not exceed 70% based on a new Appraisal obtained by Administrative Agent with a
value date as of not more than sixty (60) days prior to the Second Extension Maturity Date, such
Appraisal to be at Borrower’s expense;

               (g) All Government Approvals for the Improvements shall have been received to the extent then
applicable, with copies (if applicable) having been delivered to Administrative Agent;

               (h) Current financial statements regarding Borrower (dated not earlier than ninety (90) days
prior to the Third Extension Notice) and all other financial statements and other information as
may be required under this Agreement and the Loan Documents regarding Borrower and the Project
shall have been submitted promptly to Administrative Agent;

               (i) In the opinion of Administrative Agent, there shall not have occurred any Material Adverse
Effect;

               (j) Whether or not the extension becomes effective, Borrower shall pay all out-of-pocket costs
and expenses incurred by Administrative Agent and the Lenders in connection with the proposed
extension (pre- and post-closing), including appraisal fees and reasonable legal fees; all such
costs and expenses shall be due and payable upon demand, and any failure to pay such amounts shall
constitute a default under this Agreement and the Loan Documents;

               (k) Not later than the Second Extension Maturity Date, (i) the extension shall have been
documented to the Lenders’ reasonable satisfaction and consented to by Borrower, Administrative
Agent and all the Lenders, including the execution and delivery by Guarantor of reaffirmations of
their respective obligations under the Guarantor Documents and

37

 

(ii) Administrative Agent shall have been provided with an updated title report and judgment
and lien searches, and appropriate title insurance endorsements shall have been issued as required
by Administrative Agent; and

               (l) Borrower shall pay to Administrative Agent (for the benefit of the Lenders in accordance
with their Proportionate Shares) on the First Extension Maturity Date a non-refundable extension
fee equal to 0.125% of an amount equal to the outstanding principal amount at such time.

Any extension pursuant to this Section 2.5 shall be otherwise subject to all of the other
terms and provisions of this Agreement, the Building Loan Agreement and the other Loan Documents.

     Section 2.6 Pro Rata Treatment of Payments; Etc.

          (1) Pro Rata Treatment. Except as otherwise provided in Section 2.7(4), Loans shall
be allocated pro rata among the Lenders according to the amounts of their respective Commitments
(in the case of the making of Loans) or their respective Loans (in the case of Conversions or
Continuations of Loans); (c) each payment or prepayment of principal of Loans by Borrower shall be
made for account of the Lenders pro rata in accordance with the respective unpaid principal amounts
of the Loans held by them (subject, while any Event of Default exists, to the terms of any separate
agreement among Administrative Agent and the Lenders); and (d) each payment of interest on Loans by
Borrower shall be made for account of the Lenders pro rata in accordance with the amounts of
interest on such Loans then due and payable to the respective Lenders (subject, while any Event of
Default exists, to the terms of any separate agreement among Administrative Agent and the Lenders).

          (2) Computations. Interest on all Loans shall be computed on the basis of a year of 360 days
and actual days elapsed (including the first day but excluding the last day) occurring in the
applicable period.

          (3) Minimum Amounts. Except for (a) mandatory prepayments made pursuant to Section
2.4(5) and (b) Conversions or prepayments made pursuant to Section 2.7(4), and (c)
advances pursuant to Section 4.4, Section 4.5, Section 4.6, and Section
4.11, each borrowing, Conversion, Continuation and partial prepayment of principal
(collectively, “Loan Transactions”) of Loans shall be in an aggregate amount of at least
$1,000,000 and in additional increments of $100,000 (Loan Transactions of or into Loans of
different Types or Interest Periods at the same time hereunder shall each be deemed separate Loan
Transactions for purposes of the foregoing). Any Loans or borrowings of less than $1,000,000 shall
be made as Base Rate Loans. Notwithstanding the foregoing, the minimum amount of $1,000,000 shall
not apply to Conversions of lesser amounts into a tranche of Loans that has (or will have upon such
Conversion) an aggregate principal amount exceeding $1,000,000.

          (4) Certain Notices. Notices by Lead Borrower to Administrative Agent regarding Loan
Transactions and the selection of Types of Loans and/or of the duration of Interest Periods shall
be irrevocable and shall be effective only if received by Administrative Agent (and, in the case of
a Request for Loan Advance, the Construction Consultant) not later

38

 

than 3:00 p.m., New York City time, on the number of Business Days prior to the date of the
proposed Loan Transaction or the first day of such Interest Period specified below:

	 	 	 	 	 
	Notice	 	Number of Business Days Prior
	Request for Loan Advance
	 	 	10	 
	Optional Prepayment
	 	 	3	 
	Conversions into, Continuations as, or
borrowings in Base Rate Loans
	 	 	3	 
	Conversions into, Continuations as,
borrowings in or changes in duration
of Interest Period for, LIBOR-based
Loans (subject to Section 2.4(6))
	 	 	3	 

Each Loan Transaction notice shall specify the amount, Type, Interest Period and date of such
proposed Loan Transaction, and in the case of a Request for Loan Advance, shall be accompanied by
all documentation required by this Agreement as a condition precedent to the applicable Loans.
Notices for Conversions and Continuations shall be in the form of Exhibit E. Each such
notice specifying the duration of an Interest Period shall specify the portion of the Loans to
which such Interest Period is to relate. In the case of a Request for Loan Advance, Administrative
Agent shall notify the Lenders of their respective Proportionate Shares of the amount approved by
Administrative Agent and the Construction Consultant. If Lead Borrower fails to select (i) the
Type of Loan or (ii) the duration of any Interest Period for any LIBOR-based Loan within the
required time period and otherwise as provided in this Section 2.6(4), such Loan (if
outstanding as a LIBOR-based Loan) will be automatically Continued as an LIBOR-based Loan with an
Interest Period of one (1) month (based on a LIBOR-based Rate determined two (2) Business Days
prior to the first day of the next Interest Period) or, if outstanding as a Base Rate Loan, will
remain as a Base Rate Loan.

          (5) Non Receipt of Funds by Administrative Agent. Unless Administrative Agent shall have been
notified by a Lender or Lead Borrower (in either case, and along with Borrower, the
“Payor”) prior to the date on which the Payor is to make payment to Administrative Agent of
(in the case of a Lender) the proceeds of a Loan to be made by such Lender hereunder or (in the
case of Borrower) a payment to Administrative Agent for account of any Lender hereunder (in either
case, such payment being herein called the “Required Payment”), which notice shall be
effective upon receipt, that the Payor does not intend to make the Required Payment to
Administrative Agent, Administrative Agent may assume that the Required Payment has been made and
may, in reliance upon such assumption (but shall not be required to), make the amount thereof
available to the intended recipient(s) on such date; and, if the Payor has not in fact made the
Required Payment to Administrative Agent, the recipient(s) of such payment shall, on demand, repay
to Administrative Agent the amount so made available together with interest thereon in respect of
each day during the period commencing on the date (the “Advance Date”) such amount was so
made available by Administrative Agent until the date Administrative Agent recovers such amount at
a rate per annum equal to (a) the Federal Funds Rate for such day in the case of payments returned
to Administrative Agent by any of the Lenders or (b) the applicable interest rate due hereunder
with respect to payments returned by Borrower to Administrative Agent and, if such recipient(s)
shall fail promptly to make such

39

 

payment, Administrative Agent shall be entitled to recover such amount, on demand, from the
Payor, together with interest as aforesaid; provided that if neither the recipient(s) nor
the Payor shall return the Required Payment to Administrative Agent within three (3) Business Days
of the Advance Date, then, retroactively to the Advance Date, the Payor and the recipient(s) shall
each be obligated to pay interest on the Required Payment as follows:

               (a) if the Required Payment shall represent a payment to be made by Borrower to the Lenders,
Borrower and the recipient(s) shall each be obligated retroactively to the Advance Date to pay
interest in respect of the Required Payment at the Default Rate (without duplication of the
obligation of Borrower under Section 2.3 to pay interest on the Required Payment at the
Default Rate), it being understood that the return by the recipient(s) of the Required Payment to
Administrative Agent shall not limit such obligation of Borrower under Section 2.3 to pay
interest at the Default Rate in respect of the Required Payment, and

               (b) if the Required Payment shall represent proceeds of a Loan to be made by the Lenders to
Borrower, the Payor and Borrower shall each be obligated retroactively to the Advance Date to pay
interest in respect of the Required Payment pursuant to whichever of the rates specified in
Section 2.3 is applicable to the Type of such Loan, it being understood that the return by
Borrower of the Required Payment to Administrative Agent shall not limit any claim Borrower may
have against the Payor in respect of such Required Payment.

          (6) Sharing of Payments, Etc.

               (a) Sharing. If any Lender shall obtain from Borrower payment of any principal of or interest
on any Loan owing to it or payment of any other amount under this Agreement or any other Loan
Document through the exercise (subject, as among the Lenders, to Section 12.25) of any
right of set off, banker’s lien or counterclaim or similar right or otherwise (other than from
Administrative Agent as provided herein), and, as a result of such payment, such Lender shall have
received a greater percentage of the principal of or interest on the Loans or such other amounts
then due hereunder or thereunder by Borrower to such Lender than the percentage received by any
other Lender, it shall promptly purchase from such other Lenders participations in (or, if and to
the extent specified by such Lender, direct interests in) the Loans or such other amounts,
respectively, owing to such other Lenders (or in interest due thereon, as the case may be) in such
amounts, and make such other adjustments from time to time as shall be equitable, to the end that
all the Lenders shall share the benefit of such excess payment (net of any expenses that may be
incurred by such Lender in obtaining or preserving such excess payment) pro rata in accordance with
the unpaid principal of and/or interest on the Loans or such other amounts, respectively, owing to
each of the Lenders. To such end all the Lenders shall make appropriate adjustments among
themselves (by the resale of participations sold or otherwise) if such payment is rescinded or must
otherwise be restored.

               (b) Consent by Borrower. Borrower agrees that any Lender so purchasing such a participation
(or direct interest) may exercise (subject, as among the Lenders, to Section 12.25) all
rights of set off, banker’s lien, counterclaim or similar rights with respect to such participation
as fully as if such Lender were a direct holder of Loans or other amounts (as the case may be)
owing to such Lender in the amount of such participation.

40

 

               (c) Rights of Lenders; Bankruptcy. Nothing contained herein shall require any Lender to
exercise any such right or shall affect the right of any Lender to exercise, and retain the
benefits of exercising, any such right with respect to any other indebtedness or obligation of
Borrower. If, under any applicable bankruptcy, insolvency or other similar law, any Lender
receives a secured claim in lieu of a set off to which this Section 2.6(6) applies, such
Lender shall, to the extent practicable, exercise its rights in respect of such secured claim in a
manner consistent with the rights of the Lenders entitled under this Section 2.6(6) to
share in the benefits of any recovery on such secured claim.

     Section 2.7 Yield Protection; Etc.

          (1) Increased Costs.

               (a) Increased Costs Generally with Respect to Making or Maintaining LIBOR-based Loans. If any
Change in Law shall:

               (A) impose, modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the account
of, or credit extended or participated in by, any Lender (except any reserve requirement
reflected in the Adjusted Libor Rate);

               (B) subject any Lender to any tax of any kind whatsoever with respect to this Agreement
or any LIBOR-based Loan made by it, or change the basis of taxation of payments to such
Lender in respect thereof (except for Indemnified Taxes or Other Taxes covered by
Section 2.7(6) and the imposition of, or any change in the rate of, any Excluded Tax
payable by such Lender); or

               (C) impose on any Lender or the London interbank market any other condition affecting
this Agreement or Eurodollar Loans made by such Lender.

and the result of any of the foregoing shall be to increase the cost to such Lenders of making or
maintaining any LIBOR-based Loan (or of maintaining its obligation to make any such Loan) or to
reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal,
interest or otherwise), then Borrower will promptly upon demand pay to such Lender such additional
amount or amounts as will compensate such Lender for such additional costs incurred or reduction
suffered.

               (b) Capital Requirements. If any Lender reasonably determines that any Change in Law
regarding capital requirements has or would have the effect of reducing the rate of return on such
Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of
this Agreement or the Loans made by such Lender to a level below that which such Lender or such
Lender’s holding company could have achieved but for such Change in Law (taking into consideration
such Lender’s policies and the policies of such Lender’s holding company with respect to capital
adequacy), then from time to time Borrower will promptly upon demand pay to such Lender, as the
case may be, such additional amount or amounts as will compensate such Lender or such Lender’s
holding company for any such reduction suffered; provided that such Lender would cause similarly
situated Borrowers to compensate them for such an event.

41

 

               (c) Certificates for Reimbursement. A certificate of a Lender setting forth the amount or
amounts necessary to compensate such Lender or its holding company, as the case may be, as
specified in paragraph (a) or (b) of this Section 2.7(1) shall be delivered
to Lead Borrower and shall be conclusive absent manifest error. Borrower shall pay such Lender the
amount shown as due on any such certificate within ten (10) days after receipt thereof by Lead
Borrower.

               (d) Delays in Requests. Failure or delay on the part of any Lender to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s right to demand such
compensation; provided that Borrower shall not be required to compensate a Lender pursuant
to this Section for any increased costs or reductions incurred more than 270 days prior to the date
that such Lender notifies Lead Borrower of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s intention to claim compensation therefor; provided
further that, if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the 270-day period referred to above shall be extended to include the period of
retroactive effect thereof.

          (2) Limitation on Types of Loans. Anything herein to the contrary notwithstanding, if, on or
prior to the determination of the Libor Rate for any Interest Period:

               (a) Administrative Agent reasonably determines that quotations of interest rates for the
relevant deposits referred to in the definition of Libor Rate are not being provided in the
relevant amounts or for the relevant maturities for purposes of determining rates of interest for
LIBOR-based Loans; or

               (b) the Majority Lenders reasonably determine, and notify Administrative Agent that the
relevant rates of interest referred to in the definition of Libor Rate are not likely adequate to
cover the cost to such Lenders of making or maintaining LIBOR-based Loans for such Interest Period;

then Administrative Agent shall give Lead Borrower and each Lender prompt notice thereof and, so
long as such condition remains in effect, the Lenders shall be under no obligation to make
additional LIBOR-based Loans, to Continue LIBOR-based Loans or to Convert Loans of any other Type
into LIBOR-based Loans, and Borrower shall, on the last day(s) of the then current Interest
Period(s) for the outstanding LIBOR-based Loans, either prepay such Loans or such Loans shall be
automatically Converted into Base Rate Loans.

          (3) Illegality. Notwithstanding any other provision of this Agreement, in the event that it
becomes unlawful for any Lender or its Applicable Lending Office to honor its obligation to make or
maintain LIBOR-based Loans hereunder (and, in the sole opinion of such Lender, the designation of a
different Applicable Lending Office would either not avoid such unlawfulness or would be
disadvantageous to such Lender), then such Lender shall promptly notify Lead Borrower thereof (with
a copy to Administrative Agent) and such Lender’s obligation to make or Continue, or to Convert
Loans of any other Type into, LIBOR-based Loans shall be suspended until such time as such Lender
may again make and maintain LIBOR-based Loans.

42

 

          (4) Treatment of Affected Loans. If the obligation of any Lender to make LIBOR-based Loans or
to Continue, or to Convert Base Rate Loans into, LIBOR-based Loans shall be suspended pursuant to
Section 2.7(1)or Section 2.7(3), such Lender’s Loans shall be automatically
Converted into Base Rate Loans on the last day(s) of the then current Interest Period(s) for Loans
(or, in the case of a Conversion resulting from a circumstance described in Section 2.7(3),
on such earlier date as such Lender may specify to Lead Borrower with a copy to Administrative
Agent) and, unless and until such Lender gives notice as provided below that the circumstances
specified in Section 2.7(1) or Section 2.7(3) that gave rise to such Conversion no
longer exist:

               (a) to the extent that such Lender’s Loans have been so Converted, all payments and
prepayments of principal that would otherwise be applied to such Lender’s Loans shall be applied
instead to its Base Rate Loans; and

               (b) all Loans that would otherwise be made or Continued by such Lender as LIBOR-based Loans
shall be made or Continued instead as Base Rate Loans, and all Loans of such Lender that would
otherwise be Converted into LIBOR-based Loans shall remain as Base Rate Loans.

If such Lender gives notice to Lead Borrower with a copy to Administrative Agent that the
circumstances specified in Section 2.7(1) or Section 2.7(3) that gave rise to the
Conversion of such Lender’s Loans pursuant to this Section 2.7(4) no longer exist (which
such Lender agrees to do promptly upon such circumstances ceasing to exist) at a time when
LIBOR-based Loans made by other Lenders are outstanding, such Lender’s Base Rate Loans shall be
automatically Converted, on the first day(s) of the next succeeding Interest Period(s) for such
outstanding LIBOR-based Loans, to the extent necessary so that, after giving effect thereto, all
Base Rate Loans and LIBOR-based Loans are allocated among the Lenders ratably (as to principal
amounts, Types and Interest Periods) in accordance with their respective Commitments.

          (5) LIBOR Breakage Costs. Borrower shall upon request pay to Administrative Agent for account
of each Lender, such amount or amounts as shall be sufficient (in the reasonable opinion of each
Lender) to compensate it for any loss, cost or expense that such Lender determines is attributable
to:

               (a) any payment, prepayment or Conversion of a LIBOR-based Loan made by such Lender for any
reason (including, without limitation, the acceleration of the Loans pursuant to Administrative
Agent’s or the Lenders’ rights referred to in Article 11) on a date other than the last day
of the Interest Period for such Loan; or

               (b) any failure by Borrower for any reason to borrow a LIBOR-based Loan from such Lender on
the date for such borrowing specified in any Request for Loan Advance.

Without limiting the effect of the preceding sentence, such compensation shall include an amount
equal to the excess, if any, of (i) the amount of interest that otherwise would have accrued on the
principal amount so paid, prepaid, Converted or not borrowed for the period from the date of such
payment, prepayment, Conversion or failure to borrow to the last day of the then

43

 

current Interest Period for such Loan (or, in the case of a failure to borrow, the Interest Period
for such Loan that would have commenced on the date specified for such borrowing) at the applicable
rate of interest for such Loan provided for herein over (ii) the amount of interest that otherwise
would have accrued on such principal amount at a rate per annum equal to the interest component of
the amount such Lender would have bid in the London interbank market for Dollar deposits of leading
banks in amounts comparable to such principal amount and with maturities comparable to such period
(as reasonably determined by such Lender), or if such Lender shall cease to make such bids, the
equivalent rate, as reasonably determined by such Lender, derived from Page 3750 of the Telerate
Service or other publicly available source as described in the definition of Libor Rate. A
certificate of any Lender setting forth any amount or amounts that such Lender is entitled to
receive pursuant to this section shall be delivered to Lead Borrower and shall be conclusive absent
manifest error. Borrower shall pay such Lender the amount shown as due on any such certificate
within ten (10) days after receipt thereof.

          (6) Taxes.

               (a) Payments Free of Taxes. Any and all payments by or on account of any obligation of
Borrower hereunder or under any other Loan Document shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided that if Borrower shall be
required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum
payable shall be increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section), Administrative Agent or
Lender (as the case may be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) Borrower shall make such deductions and (iii) Borrower shall pay the
full amount deducted to the relevant Governmental Authority in accordance with applicable law.

               (b) Payment of Other Taxes by Borrowers. Without limiting the provisions of paragraph
(a) above, Borrower shall pay any Other Taxes but not Excluded Taxes to the relevant
Governmental Authority in accordance with applicable law.

               (c) Indemnification by Borrower. Borrower shall indemnify Administrative Agent and each
Lender, within ten (10) days after written demand therefor, for the full amount of any Indemnified
Taxes or Other Taxes paid by Administrative Agent or such Lender, as the case may be, on or with
respect to any payment by or on account of any obligation of Borrower hereunder (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under
this Section) and any penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or
liability delivered to Lead Borrower by a Lender, or by Administrative Agent on its own behalf or
on behalf of a Lender, shall be conclusive absent manifest error.

               (d) Evidence of Payments. As soon as practicable after any payment of Indemnified Taxes or
Other Taxes by Borrower to a Governmental Authority, Lead Borrower shall deliver to Administrative
Agent the original or a certified copy of a receipt issued by such

44

 

Governmental Authority evidencing such payment, a copy of the return reporting such payment or
other evidence of such payment reasonably satisfactory to Administrative Agent.

               (e) Foreign Lenders. Any Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which a Borrower is located, or any treaty to
which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to
the applicable Borrower (with a copy to Administrative Agent), prior to the Initial Advance, Form
W-8BEN or Form W-8ECI of the Internal Revenue Service, or such other properly completed and
executed forms, certifications, statements or documentation prescribed by applicable law or
reasonably requested by such Borrower as will permit such payments to be made without withholding
or at a reduced rate. Administrative Agent shall not be obligated to make any payments hereunder
to Lenders in respect of the Loan until such Lenders shall have furnished to Administrative Agent
the requested form, certification, statement or documentation.

               (f) Refunds. If Administrative Agent or a Lender determines, in its sole discretion, that it
has received a refund of any Taxes or Other Taxes as to which it has been indemnified by Borrower
or with respect to which Borrower has paid additional amounts pursuant to this Section
2.7(6), it shall pay over such refund to Borrower (but only to the extent of indemnity payments
made, or additional amounts paid, by such Borrower under this Section 2.7(6) with respect
to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of
Administrative Agent or such Lender, as the case may be, and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such refund); provided, that
Borrower, upon the request of Administrative Agent or such Lender, agrees to repay the amount paid
over to such Borrower (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to Administrative Agent or such Lender in the event Administrative Agent or
such Lender is required to repay such refund to such Governmental Authority. This section shall
not be construed to require Administrative Agent or any Lender to make available its tax returns
(or any other information relating to its taxes which it deems confidential) to Borrower or any
other Person..

          (7) Replacement of Lenders. If any Lender requests compensation pursuant to Section
2.7(1) or Section 2.7(6), or any Lender’s obligation to Continue Loans of any Type, or
to Convert Loans of any Type into the other Type of Loan, shall be suspended pursuant to
Section 2.7(2) or Section 2.7(3) (any such Lender requesting such compensation, or
whose obligations are so suspended, being herein called a “Requesting Lender”), Lead
Borrower, upon three (3) Business Days’ notice, may require that such Requesting Lender transfer
all of its right, title and interest under this Agreement and such Requesting Lender’s Note to any
bank or other financial institution (a “Proposed Lender”) identified by Lead Borrower that
is satisfactory to Administrative Agent (i) if such Proposed Lender agrees to assume all of the
obligations of such Requesting Lender hereunder, and to purchase all of such Requesting Lender’s
Loans hereunder for consideration equal to the aggregate outstanding principal amount of such
Requesting Lender’s Loans, together with accrued interest thereon to the date of such purchase and
pay all other amounts accrued and payable hereunder to such Requesting Lender as of the date of
such transfer (including any fees accrued hereunder and any amounts that would be payable under
Section 2.7(1), Section 2.7(5) or Section 2.7(6). Subject to the
provisions of Section 12.23(1), such Proposed Lender shall be a “Lender” for all purposes
hereunder. Without prejudice to the

45

 

survival of any other agreement of Borrower hereunder, the agreements of Borrower contained in
Section 2.7(1) and Section 2.7(6) (without duplication of any payments made to such
Requesting Lender by Borrower or the Proposed Lender) shall survive for the benefit of such
Requesting Lender under this Section 2.7(7) with respect to the time prior to such
replacement.

     Section 2.8 Agency Fee. Until payment in full of all obligations under this Agreement and the
other Loan Documents, Borrower shall pay to Administrative Agent, for its sole account, the Agency
Fee in accordance with the Fee Letter.

     Section 2.9 Exit Fee. With respect to any repayment or prepayment of principal under the Loans for
any reason whatsoever (whether such repayment or prepayment of the Loans is made voluntarily or
involuntarily or as a result of the occurrence of an Event of Default pursuant to which the
Administrative Agent has accelerated the obligations of the Borrower under the Loan Documents or
otherwise), Borrower shall pay to Administrative Agent, in addition to all other amounts that may
be due hereunder, an amount equal to one quarter of one percent (0.25%) of the amount so repaid or
prepaid under the Loans (the “Exit Fee”). The Exit Fee will be automatically waived in the
event that (1) the Loans are prepaid in connection with a bona-fide arms length sale of the Project
to a third party which is not an Affiliate of Borrower, or (2) the Loans are paid in full pursuant
to a refinancing arrangement with Administrative Agent.

ARTICLE 3

INSURANCE, CONDEMNATION, AND IMPOUNDS

     Section 3.1 Insurance.

          (1) Borrower shall obtain and maintain, or cause to be maintained, Policies providing at least
the following coverages for Borrower and the Project (at all times through the repayment of the
Loans in full):

               (a) comprehensive all-risk insurance on the Improvements and the personal property, in each
case (i) in an amount equal to 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, (ii) containing an agreed amount
endorsement with respect to the improvements and personal property waiving all co insurance
provisions; (iii) providing for no deductible in excess of $50,000; (iv) providing for repairs and
alteration coverage; and (v) providing coverage for contingent liability from Operation of Building
Laws, Demolition Costs and Increased Cost of Construction Endorsements together with an “Ordinance
or Law Coverage” or “Enforcement” endorsement if any of the Improvements or the use of the Project
shall at any time constitute legal non-conforming structures or uses. The Full Replacement Cost
shall be redetermined from time to time (but not more frequently than once in any twenty-four (24)
calendar months) at the request of Administrative Agent by an appraiser or contractor designated by
Borrower and reasonably approved by Administrative Agent, or by an engineer or appraiser in the
regular employ of the insurer. The cost of such appraisal shall be paid by Administrative Agent
unless an Event of Default shall have occurred and be continuing, in which case such cost shall be
paid by Borrower. After the first appraisal, additional appraisals may be based on construction
cost

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indices customarily employed in the trade. No omission on the part of Administrative Agent to
request any such ascertainment shall relieve Borrower of any of its obligations under this
Section 3.1(1)(a);

               (b) commercial general liability insurance against claims for personal injury, bodily injury,
death or property damage (including liabilities as a result of repairs and alterations) occurring
upon, in or about the Project, such insurance (i) to be on the so called “occurrence” form with a
combined single limit of not less than $1,000,000 per occurrence and $2,000,000 general aggregate;
(ii) 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 (iii) to
cover at least the following hazards: (A) premises and operations; (B) products and completed
operations on an “if any” basis and for a period of not less than five (5) years after the
completion of construction of the applicable Improvements; (C) independent contractors; (D) blanket
contractual liability for all “insured contracts” as defined in the standard general liability
policy; and (E) contractual liability covering the indemnities contained in Sections 5.4,
11.3 and 14.5 hereof, to the extent the same is available and falls within the
definition of “insured contracts”;

               (c) business income/loss of rents insurance (i) with loss payable to Administrative Agent (for
the benefit of the Lenders); (ii) covering all risks required to be covered by the insurance
provided for in Section 3.1(1)(a) hereof; (iii) in an amount equal to 100% of the projected
gross income from the Project (on an actual loss sustained basis) for a period continuing until the
Restoration of the Project is completed; the amount of such business income/loss of rents insurance
shall be determined prior to the date hereof and at least once each year thereafter based on the
greater of (x) Borrower’s reasonable estimate of the gross income from the Project, and (y) the
highest gross income received during the term of the Notes for any full calendar year prior to the
date the amount of such insurance is being determined (or such lesser period as may have expired
from the date of substantial completion of the applicable Improvements to the date the amount of
such insurance is being determined), in each case for the succeeding eighteen (18) month period and
(D) containing an extended period of indemnity endorsement which provides that after the physical
loss to the improvements and the 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 twenty-four (24) months from the date that the Project, 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. All insurance proceeds payable to Administrative Agent (for the
benefit of the Lenders) pursuant to this Section 3.1(1)(c) shall be held by Administrative
Agent and shall be applied to the obligations secured hereunder from time to time due and payable
hereunder and under the Notes and this Agreement; provided, however, that nothing
herein contained shall be deemed to relieve Borrower of its obligations to pay the obligations
secured hereunder on the respective dates of payment provided for in the Notes and this Agreement
except to the extent such amounts are actually paid out of the proceeds of such business
income/loss of rents insurance;

               (d) when required by Administrative Agent or at the discretion of Borrower, at all times prior
to the completion of construction of the Improvements, the insurance provided for in Section
3.1(1)(a) shall be written in a so called builder’s risk completed value form (i) on a non
reporting basis, (ii) against all risks insured against pursuant to Section

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3.1(1)(a),(iii) shall include permission to occupy the Project, and (4) shall contain an agreed amount
endorsement waiving co-insurance provisions, and shall also include coverage for:

               (A) loss suffered with respect to materials, equipment, machinery, and supplies whether
on-site, in transit, or stored off-site and with respect to temporary structures, hoists,
sidewalks, retaining walls, and underground property;

               (B) Soft Costs, plans, specifications, blueprints and models in connection with any
restoration following a casualty;

               (C) demolition and increased cost of construction, including, without limitation,
increased costs arising out of changes in Applicable Law and codes;

               (D) operation of building laws;

               (E) collapse, transit and testing; and

               (F) delayed opening coverage on an actual loss sustained basis with extended period of
indemnity endorsement consistent with Section 3.1(1)(c).

               (e) workers’ compensation insurance, as required by any Governmental Authority or legal
requirement, subject to the statutory limits of the state of New York;

               (f) comprehensive boiler and machinery insurance, if applicable, in amounts as shall be
reasonably required by Administrative Agent on terms consistent with the commercial property
insurance policy required under Section 3.1(1)(a);

               (g) if any portion of the Improvements is at any time located in an area identified by the
Secretary of Housing and Urban Development or any successor thereto as an area having special flood hazards pursuant to 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, or any successor
law (the “Flood Insurance Acts”), flood hazard insurance in an amount not less than the
greater of (A) the maximum limit of coverage available with respect to the Project, under Policies
issued pursuant to the Flood Insurance Acts, subject only to customary deductibles under such
Policies, and (B) the maximum limit of coverage available with respect to the Project, under
Policies issued by private insurance carriers;

               (h) earthquake insurance (based on probable maximum loss) in amounts and in form and substance
satisfactory to Administrative Agent, provided that the insurance pursuant to this Section
3.1(1)(h) hereof shall be on terms consistent with the all risk insurance policy required under
Section 3.1(1)(a) hereof;

               (i) umbrella liability insurance in an amount not less than $100,000,000 per occurrence on
terms consistent with the commercial general liability insurance policy required under Section
3.1(1)(b) hereof;

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               (j) insurance with respect to the Construction Manager, the Major Contractors, Borrower’s
Architect and other Design Professionals as specified in Schedule 3.1(1)(j) attached
hereto;

               (k) secured creditor’s environmental insurance, insuring against unknown environmental hazards
and conditions in amounts and in form and substance satisfactory to Administrative Agent, which
shall name the Administrative Agent as a loss payee or additional insured, as applicable; and

               (l) such other insurance and in such amounts as Administrative Agent from time to time may
request against such other insurable hazards which at the time are available on commercially
reasonably terms for properties located in or around the region where the Project is located and
are customarily required by institutional lenders with respect to projects similar to the Project.

          (2) All insurance provided in compliance with Section 3.1(1)(a) hereof shall be
obtained under valid and enforceable policies (the “Policies” or in the singular, the
“Policy”), in such forms and, from time to time after the date hereof, in such amounts as
may be satisfactory to Administrative Agent, issued by financially sound and responsible insurance
companies permitted to do business in the state of New York and reasonably approved by
Administrative Agent. The insurance companies must have a claims paying ability/financial strength
rating of “AX” (or its equivalent) or better by A.M. Best. No Policy shall contain an exclusion
from coverage under such Policy for loss or damage incurred as a result of an act of terrorism or
similar acts of sabotage, provided that Borrower may obtain separate Terrorism Insurance coverage
subject to and in accordance with the terms of this Section 3.1(2). Borrower will be
required to maintain insurance against terrorism, terrorist acts or similar acts of sabotage
(“Terrorism Insurance”) with coverage amounts of not less than an amount equal to the full
replacement cost of the improvements and the personal property (the “Terrorism Insurance
Required Amount”). Notwithstanding the foregoing sentence, Borrower shall not be obligated to
expend in any fiscal year on Insurance Premiums for Terrorism Insurance more than two (2.0) times
the then-current annual premium paid by Borrower for the comprehensive all-risk insurance required
under subsection 3.1(1)(a) hereof (the “Terrorism Insurance Cap”) and if the cost
of the Terrorism Insurance Required Amount exceeds the Terrorism Insurance Cap, Borrower shall
purchase the maximum amount of Terrorism Insurance available with funds equal to the Terrorism
Insurance Cap; provided, however, the Terrorism Insurance Cap shall not apply or
restrict the amount of terrorism coverage required to be obtained and maintained by this subsection
(x) with respect to the Project if (a) owners and/or operators of mixed-use retail/office buildings
in the same class as the Project in Bronx, New York are generally obtaining terrorism insurance,
(b) lenders financing such mixed-use retail/office properties in the same class as the Project in
Bronx, New York are generally requiring terrorism insurance as a condition of financing, or (c)
Borrower or Sponsor or any Affiliate of Borrower or Sponsor, is obtaining terrorism insurance on
any other properties in Bronx, New York of which any of the foregoing Persons own or operate. Not
less than fifteen (15) days prior to the expiration dates of the Policies theretofore furnished to Lender pursuant to Section 3.1(1) hereof, Lead
Borrower shall deliver to Administrative Agent insurance certificates showing payment of all
premiums (the “Insurance Premiums”) for such Policies, which certificates shall be in form
and substance reasonably satisfactory to Administrative Agent. Within sixty (60) days following
the expiration

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dates of the Policies, Lead Borrower shall deliver to Administrative Agent certified
copies of such Policies marked “premium paid” or accompanied by evidence satisfactory to
Administrative Agent of payment of the Insurance Premiums.

          (3) Borrower shall not obtain (a) any umbrella or blanket liability or casualty Policy unless,
in each case, such Policy is approved in advance in writing by Administrative Agent and Lenders’
interest is included therein as provided in this Agreement, or (b) separate insurance concurrent in
form or contributing in the event of loss with that required in Section 3.1(1) to be
furnished by, or which may be required to be furnished by, Borrower. In the event Borrower obtains
separate insurance or an umbrella or a blanket policy, Lead Borrower shall notify Administrative
Agent of the same and shall cause certified copies of each Policy to be delivered as required in
Section 3.1(1).

          (4) All Policies provided for or contemplated by Section 3.1(1) hereof, except for the
Policy referenced in Section 3.1(1)(e), shall name Administrative Agent (for the benefit of
the Lenders) as additional insured under liability policies and as mortgagee/loss payee under
property policies, as their respective interests may appear, and in the case of property, boiler
and machinery, and flood insurance, shall contain a so called New York standard non-contributing
mortgagee clause in favor of Administrative Agent providing that the loss thereunder shall be
payable to Administrative Agent in accordance with the terms of this Agreement.

          (5) All Policies provided for in Section 3.1(1)(a) hereof shall contain clauses or
endorsements to the effect that:

               (a) no willful act or negligence of Borrower, or anyone acting for Borrower, 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 Administrative Agent is concerned;

               (b) the Policy shall not be materially changed (other than to increase the coverage provided
thereby) or cancelled without at least thirty (30) days’ written notice (or ten (10) days’ written
notice, in the case of non payment of premium) to Administrative Agent and any other party named
therein as an insured;

               (c) each Policy shall provide that the issuers thereof shall give written notice to
Administrative Agent if the Policy has not been renewed fifteen (15) days prior to its expiration;
and

               (d) Administrative Agent shall not be liable for any insurance premiums thereon or subject to
any assessments thereunder.

          (6) If at any time Administrative Agent is not in receipt of written evidence that all
insurance required hereunder is in full force and effect, Administrative Agent shall have the
right, on five (5) Business Days’ notice to Lead Borrower to take such action as Administrative Agent deems necessary to protect its interest in the Project, including,
without limitation, the obtaining of such insurance coverage as Administrative Agent in its sole
and absolute discretion deems appropriate, and all expenses incurred by Administrative Agent in
connection with such action or in obtaining such insurance and keeping it in effect shall be paid

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by Borrower to Administrative Agent upon demand and until paid shall be secured by the Security
Documents and shall bear interest at the Default Rate.

          (7) In the event of a foreclosure of the Mortgages, or other transfer of title to Project in
extinguishment in whole or in part of the Loans, all right, title and interest of Borrower in and
to the Policies then in force and all proceeds payable thereunder shall thereupon vest in the
purchaser at such foreclosure or Lenders or other transferee in the event of such other transfer of
title.

          (8) Lead Borrower shall give immediate written notice of any loss in excess of $100,000 to the
insurance carrier and to Administrative Agent. In connection with losses in excess of $100,000,
but less than or equal to $2,000,000, Borrower and Administrative Agent shall cooperate in all
matters related to the loss including, without limitation, making proof of loss, adjusting and
compromising any claim under the insurance policies, appearing in and prosecuting any action
arising from such insurance policies, and collecting and receiving insurance proceeds. In
connection with losses in excess of $2,000,000, Borrower hereby irrevocably authorizes and empowers
Administrative Agent, as attorney in fact for Borrower coupled with an interest, to make proof of
loss, to adjust and compromise any claim under insurance policies, to appear in and prosecute any
action arising from such insurance policies, to collect and receive insurance proceeds, and to
deduct therefrom Administrative Agent’s expenses incurred in the collection of such proceeds.
Nothing contained in this Section 3.1(8), however, shall require Administrative Agent or
any Lender to incur any expense or take any action hereunder.

     Section 3.2 Condemnation Awards. Lead Borrower shall immediately notify Administrative Agent of
the institution of any proceeding for the condemnation or other taking of the Project or any
portion thereof. Administrative Agent may participate in any such proceeding and Lead Borrower
will deliver to Administrative Agent all instruments necessary or required by Administrative Agent
to permit such participation. Without Administrative Agent’s prior consent (subject to the
approval of the Majority Lenders), Borrower (1) shall not agree to any compensation or award, and
(2) shall not take any action or fail to take any action which would cause the compensation to be
determined. All awards and compensation for the taking or purchase in lieu of condemnation of the
Project or any part thereof are hereby assigned to and shall be paid to Administrative Agent.
Borrower authorizes Administrative Agent to collect and receive such awards and compensation, to
give proper receipts and acquittances therefor, and in Administrative Agent’s sole discretion
(which Administrative Agent shall exercise at the direction of the Majority Lenders) to apply the
same toward the payment of the Loans, notwithstanding that the Loans may not then be due and
payable, or to the restoration of the Project; provided, however, if the award is
less than or equal to the Threshold Amount and Borrower requests that such proceeds be used for non
structural site improvements (such as landscape, driveway, walkway and parking area repairs)
required to be made as a result of such condemnation, Administrative Agent will apply the award to
such restoration in accordance with the terms applicable to insurance proceeds set forth in Section
3.3. Borrower, upon request by Administrative Agent, shall execute all instruments requested
to confirm the assignment of the awards and compensation to Administrative Agent, free and clear of
all liens, charges or encumbrances.

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     Section 3.3 Use and Application of Insurance Proceeds. Administrative Agent shall apply insurance
proceeds to costs of restoring the Project or the Loans as follows:

          (1) if the loss is less than or equal to the Threshold Amount, Administrative Agent shall
promptly apply the insurance proceeds to restoration provided (a) no Event of Default exists, and
(b) Borrower promptly commences and is diligently pursuing restoration of the Project;

          (2) if the loss exceeds the Threshold Amount but is not more than ten percent (10%) of the
replacement value of the Improvements (for projects containing multiple phases or stand alone
structures, such calculation to be based on the damaged phase or structure, not the project as a
whole), Administrative Agent shall apply the insurance proceeds to restoration provided that at all
times during such restoration (a) no Event of Default exists; (b) Administrative Agent determines
that there are sufficient funds including Borrower’s equity available to restore and repair the
Project to a condition reasonably approved by Administrative Agent; (c) Administrative Agent
reasonably determines that any operating deficits, including all debt service, which will be
incurred with respect to the Project following any such loss and until the restoration has been
completed, will be covered out of (A) the insurance proceeds, (B) the proceeds of business
interruption insurance, if applicable, (C) Net Operating Income of the Project or (D) by other
funds of Borrower; (d) Administrative Agent reasonably determines that all Major Leases will remain
in effect after restoration is complete; (e) Administrative Agent determines that restoration and
repair of the Project to a condition reasonably approved by Administrative Agent will be completed
prior to the Completion Date; (f) Borrower promptly commences and is diligently pursuing
restoration of the Project; and (g) if still applicable, Administrative Agent shall have
unilaterally determined that the Guaranty of Completion shall remain in full force and effect
during the period of restoration, or Guarantor shall have executed and delivered to Administrative
Agent a guaranty of completion with respect to all restoration in substantially the same form as
the Guaranty of Completion and otherwise reasonably satisfactory to Administrative Agent;

          (3) if the conditions set forth above are not satisfied or the loss exceeds the maximum amount
specified in Section 3.3(2) above, Administrative Agent may in its sole discretion (subject
to the approval of the Majority Lenders) apply any insurance proceeds it may receive to the payment
of the Loans or allow all or a portion of such proceeds to be used for the restoration of the
Project.

     Section 3.4 Disbursement of Proceeds.

          (1) The insurance proceeds shall be held by Administrative Agent in a Controlled Account and
shall constitute additional security for the Loans. Upon receipt of evidence reasonably satisfactory to Administrative Agent that all the conditions precedent,
including those set forth in Section 3.3(2) above, have been satisfied, the insurance
proceeds shall be disbursed by Administrative Agent to, or as directed by, Lead Borrower from time
to time during the course of the restoration in accordance with the applicable provisions of
Article 4 and Schedule 4 of this Agreement and (to the extent such disbursements are related to
construction costs) the Building Loan Agreement.

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          (2) All plans and specifications required in connection with the restoration shall be subject
to prior review and reasonable approval by Administrative Agent and by an independent consulting
engineer selected by Administrative Agent (the “Restoration Consultant”); provided,
however, that if the plans and specifications are consistent with those attached to the
Building Loan Agreement, Administrative Agent shall be deemed to have approved such plans and
specifications. Administrative Agent shall have the non-exclusive 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 all Major Contracts, shall be subject to prior review and reasonable
approval by Administrative Agent and the Restoration Consultant. All reasonable costs and expenses
incurred by Administrative Agent in connection with making the insurance proceeds available for the
restoration including reasonable counsel fees and disbursements and the Restoration Consultant’s
fees, shall be paid by Borrower. Borrower shall also obtain, at its sole cost and expense, all
necessary government approvals as and when required in connection with such restoration and provide
copies thereof to Administrative Agent and Restoration Consultant.

          (3) In no event shall Administrative Agent be obligated to make disbursements of the insurance
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 Retainage.
Administrative Agent shall establish, maintain and release any Retainage in accordance with the
terms of the Building Loan Agreement.

          (4) Administrative Agent shall not be obligated to make disbursements of the insurance
proceeds more frequently than once per month.

          (5) If at any time the insurance proceeds or the undisbursed balance thereof shall not, in the
reasonable opinion of Administrative Agent 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, Borrower shall
deposit the deficiency (the “Insurance Proceeds Deficiency”) with, or deliver a Collateral
Letter of Credit in the amount of such deficiency to, Administrative Agent within ten (10) Business
Days of Administrative Agent’s request and before any further disbursement of the insurance
proceeds shall be made. The Insurance Proceeds Deficiency shall be held in a Controlled Account
and shall be disbursed for costs actually incurred in connection with the restoration on the same
conditions applicable to the disbursement of the insurance proceeds, and, until so disbursed, shall
constitute additional security for the Loans.

          (6) After the Restoration Consultant certifies to Administrative Agent that a restoration has
been substantially completed in accordance with the provisions of this Section 3.4, and the receipt by Administrative Agent of evidence satisfactory to
Administrative Agent that all costs incurred in connection with the restoration have been paid in
full, the excess, if any, of the insurance proceeds and the remaining balance, if any, of the
Insurance Proceeds Deficiency deposited with Administrative Agent shall, so long as no Potential
Default or Event of Default has occurred, be paid to Lead Borrower. If a Potential Default or
Event of Default has occurred, the remaining balance of the Insurance Proceeds Deficiency shall be
applied to repayment of the Loans.

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          (7) All insurance proceeds not required (i) to be made available for the restoration or (ii)
to be returned to Lead Borrower as excess insurance proceeds pursuant to subsection (6)
above may (A) be retained and applied by Administrative Agent toward the payment of the Loans,
whether or not then due and payable, in such order, priority and proportions as Administrative
Agent in its sole discretion shall deem proper, or, (B) at the sole discretion of Administrative
Agent, the same may be paid, either in whole or in part, to Lead Borrower for such purposes and
upon such conditions as Administrative Agent shall designate.

          (8) Notwithstanding any casualty, Borrower shall continue to make payments with respect to the
outstanding principal amount in the manner provided in the Notes, this Agreement and the other Loan
Documents and the outstanding principal amount shall not be reduced unless and until (i) any
insurance proceeds or condemnation award shall have been actually received by Administrative Agent,
(ii) Administrative Agent shall have deducted its reasonable expenses of collecting such proceeds
and (iii) Administrative Agent shall have applied any portion of the balance thereof to the
repayment of the outstanding principal amount in accordance with Section 4.3. The Lenders
shall not be limited to the interest paid on any condemnation award but shall continue to be
entitled to receive interest as provided in Article 2.

ARTICLE 4

DISBURSEMENTS OF THE LOANS

     Section 4.1 General Conditions.

          (1) Subject to (a) Borrower’s satisfaction of the applicable conditions precedent set forth in
Schedule 4 and (b) Borrower’s compliance with the applicable provisions of this Article
4, the Lenders shall disburse the proceeds of the Acquisition Loan on the Closing Date and the
proceeds of each other Loan within ten (10) Business Days after Administrative Agent’s receipt of
all of the documents and items to be delivered or received pursuant to Schedule 4 and this
Article 4; provided, however, that at no time shall the Lenders be
obligated to:

               (i) advance to Lead Borrower more than the amount that Borrower has funded from its own
monies or an existing loan or is then required to fund to the party seeking payment or, in
the case of reimbursement, to the party seeking reimbursement (subject to Retainage, if
applicable),

               (ii) make an advance if the Loans are not In Balance in accordance with Section
4.3,

               (iii) subject to possible reallocation in accordance with Section 4.5, advance
proceeds of a Loan in an amount in excess of the Budget Line Items set forth in the Budget,
as the same may be adjusted in accordance with the terms of this Agreement, or

               (iv) make any Loans to the extent any Operating Revenues have not been applied in
accordance with Section 4.6(1).

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          (2) Notwithstanding anything to the contrary contained in this Agreement, the Lenders shall
have no obligation to advance any Loan unless Administrative Agent is, at all times, satisfied that
the Improvements can be constructed Lien free, substantially in accordance with the Plans and
Specifications (or the Tenant Improvement Plans in the case of Tenant Improvement Work) for the
sums set forth in the Budget (or, if more, Borrower has furnished the difference in cash or cash
equivalents, subject to the provisions of Section 4.3, Section 4.4 and Section
4.5), by the Completion Date or, with respect to Tenant Improvement Work, such date as shall be
required for the completion of the applicable Tenant Improvement Work under an Approved Lease.
Administrative Agent will endeavor to give notice to Lead Borrower of its intention not to
authorize disbursement of any Loan proceeds based on the foregoing, but neither the Lenders nor
Administrative Agent shall have any liability hereunder should Administrative Agent fail to do so,
and no failure by Administrative Agent to give such notice shall affect Administrative Agent’s or
any Lender’s rights under this subsection (2). Notwithstanding anything herein to the
contrary, if such applicable conditions precedent are not satisfied for the full required
disbursement, then, to the extent that the amounts in any Request for Loan Advance are broken down
such that Administrative Agent is satisfied that all of the above conditions are met with respect
to a portion of any Loan advance, the Lenders shall advance such portion of the requested Loan
advance.

     Section 4.2 Procedure for Making Disbursements of Loan Proceeds.

          (1) After the Closing Date, disbursements shall be made from time to time as construction
progresses pursuant to a request for advance in the applicable form attached hereto as Exhibit F
(each, a “Request for Loan Advance”), but no more frequently than once in each calendar
month.

          (2) Each Request for Loan Advance with respect to Loans shall (a) be duly executed by an
Authorized Officer on behalf of Lead Borrower, (b) be submitted to Administrative Agent and the
Construction Consultant not less than ten (10) Business Days prior to the proposed disbursement
date for such Loans, (c) specify the items to be paid or reimbursed with the proceeds of the
requested Loans, (d) include the documentation required to be included therewith under Schedule
4 and (e) be in the minimum amounts required under Section 2.6(3).

          (3) All advances of the Loans shall be made for the payment of Project Costs in accordance
with the Budget upon Borrower’s satisfaction of the applicable conditions set forth in this
Article 4 and Schedule 4 — Parts A and B, as applicable.

          (4) In the event Lead Borrower does not request a disbursement within thirty (30) days after
the previous disbursement of a Loan, Borrower shall nonetheless within such thirty (30) day period and during each subsequent thirty (30) day period in which Lead
Borrower does not request a disbursement of the Loan, satisfy the conditions precedent to
disbursements set forth in this Agreement.

     Section 4.3 Loan Balancing.

          (1) Borrower represents that the Budget sets forth all anticipated costs to be incurred by
Borrower in connection with the ownership, development, construction, financing,

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marketing, maintenance and leasing of the Improvements, from time to time through the Maturity Date as
extended pursuant to Section 2.5 hereof. Borrower further agrees as follows:

               (a) Subject to reallocations pursuant to Section 4.4 and Section 4.5, if at
any time, the projected costs anticipated to be incurred for any item of Construction Work or for
the ownership, development, financing, marketing, maintenance or leasing of the Improvements
through the Maturity Date exceed the amount set forth in the Budget for such item (as the same may
be adjusted in accordance with the terms of this Agreement), as determined by Administrative Agent
and the Construction Consultant in their reasonable discretion (including any such determination
that the undisbursed Loan proceeds allocated for the payment of future interest (the “Interest
Reserve”) is insufficient) based on factors, including, but not limited to, (1) Administrative
Agent’s projections of interest rates for period(s) up to and including the full remaining term of
the Loan (and permitted extensions); (2) the effect of any Hedge Agreement; (3) cost overruns or
Change Orders; or (4) failure of the Improvements to lease at the rate of absorption or otherwise
at rates and terms projected by Borrower, then the Loans shall be deemed not “In Balance.”

               (b) If the Loans are deemed not “In Balance,” then Borrower shall, at Administrative Agent’s
option, within ten (10) Business Days after written notice from Administrative Agent either (a)
deposit with Administrative Agent an amount sufficient to cover such deficiency (a “Deficiency
Deposit”), which Deficiency Deposit shall be deposited with Administrative Agent in the
Controlled Account (the “Deficiency Deposit Account”), (b) make one or more equity
contributions to be used by Borrower to pay costs that will bring the Loans In Balance (an
“Equity Balancing Contribution”), or (c) deliver a Collateral Letter of Credit in an amount
such that the available proceeds thereunder would be sufficient to bring the Loans In Balance and
upon which Administrative Agent shall be entitled to draw in compliance with the provisions set
forth below in this Section 4.3. Administrative Agent shall not be required to authorize
any disbursement of any Loans before receiving (i) payment of any such Deficiency Deposit into the
Deficiency Deposit Account and the prior application of such Deficiency Deposit to the payment of
Project Costs so as to bring the Loans In Balance, (ii) verification that an Equity Balancing
Contribution has been made and the proceeds thereof used for the payment of Project Costs on
account of the Improvements, so as to bring the Loans In Balance or (iii) a Collateral Letter of
Credit as set forth above. Failure of Borrower to provide satisfactory verification of an Equity
Balancing Contribution or deliver a Deficiency Letter of Credit as required above shall be deemed
Borrower’s election to make a Deficiency Deposit. The Deficiency Deposit shall be allocated to the
Project Loan Budget and the Budget, as applicable, and shall be applied to the payment of Project
Costs on account of the Improvements prior to any further disbursement of the Loans.

               (c) The balances of the applicable Contingency Fund from time to time shall not be considered
for purposes of determining whether the Loans are In Balance.

          (2) If an Event of Default shall occur and be continuing, Administrative Agent (subject to the
provisions of Section 14.3) may, at its option, in addition to exercising any other rights
or remedies available under the Loan Documents, (A) apply any unexpended Deficiency Deposit to (or
draw on any Collateral Letter of Credit to pay) the costs of completion of the Improvements and/or
(B) apply any unexpended Deficiency Deposit to (or draw on any

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Collateral Letter of Credit for application of the sums drawn thereunder to) the immediate reduction of any amounts due under the
Notes and the other Loan Documents. With respect to any Collateral Letter of Credit that Borrower
may furnish or cause to be furnished to Administrative Agent in accordance with the terms of this
Section 4.3:

               (a) Administrative Agent will be entitled, among other things, to make one or more draws
pursuant to and in accordance with this Agreement or the Building Loan Agreement, as applicable, by
presentment thereof to the issuing bank accompanied only by Administrative Agent’s clean
sight-draft, it being intended that the issuing bank shall have no right to inquire as to
Administrative Agent’s right to draw upon such Collateral Letter of Credit;

               (b) Administrative Agent shall be entitled, among other things, to draw upon each Collateral
Letter of Credit pursuant to this Agreement or the Building Loan Agreement, as applicable, in
whole, or in part from time to time, to the extent (without taking into account the Collateral
Letter of Credit) the Loan is not In Balance, (i) in order to pay any costs not covered by Loan
proceeds, Equity Balancing Contributions or Deficiency Deposits or (ii) upon any Event of Default;
and

               (c) Administrative Agent shall have the right to draw upon any Collateral Letter of Credit
within ten (10) Business Days prior to the expiration date of such Collateral Letter of Credit and
each renewal and extension thereof unless, prior to such expiration date of such Collateral Letter
of Credit and each renewal and extension thereof, Borrower shall have furnished a replacement,
extension or renewal Collateral Letter of Credit, acceptable to Administrative Agent, it being the
intent hereof that at no time shall the unexpired term of any Collateral Letter of Credit be less
than ten (10) Business Days. If Administrative Agent draws upon a Collateral Letter of Credit
pursuant to the terms hereof, then Administrative Agent shall hold the proceeds thereof in a
Controlled Account as a Deficiency Deposit. Administrative Agent shall also be entitled to draw
upon a Collateral Letter of Credit if the credit rating of the issuing bank no longer meets the
standard required of a Collateral Letter of Credit and Borrower does not deliver to Administrative
Agent a replacement letter of credit that otherwise conforms to the requirements for Deficiency
Letters of Credit within ten (10) days following notice of the same from Administrative Agent, or
if Administrative Agent reasonably believes that its rights to draw on such Collateral Letter of
Credit are in imminent jeopardy of not being honored.

     Section 4.4 Budget Contingencies. The Budget contains line items designated for contingency for
Hard Costs and Soft Costs (collectively, the “Contingency Fund”) which represent amounts
necessary to provide reasonable assurances to Administrative Agent and the Lenders that funds are available within the
Budget if additional costs, expenses and/or delays are incurred or additional interest accrues on
the Loans, or other unanticipated events or problems occur. Upon request of Lead Borrower,
Administrative Agent may, in its reasonable discretion, re-allocate a portion of the Contingency
Fund to cover cost overruns, cost of change orders, additional interests and other anticipated
costs based upon the percentage of completion of the Construction Work (e.g. (and as an example
only) fifty percent (50%) of the Contingency Fund may be allocated when the project is fifty
percent (50%) complete). Any such re-allocation shall reduce, by the amount of such re-allocation,
the amount of the Contingency Fund available to be allocated thereafter. Subject to the foregoing,
Borrower agrees that the decisions with respect to

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utilizing any portion of the Contingency Fund shall be made by Administrative Agent in its reasonable discretion and that the Loans may not be In
Balance, and Borrower may be required to make a Deficiency Deposit or Equity Balancing
Contribution, even if funds remain in the Contingency Fund.

     Section 4.5 Budget Line Items. The Budget includes as line items (collectively, “Budget
Line Items”) the cost of all labor, materials, equipment, fixtures and furnishings needed for
the completion of all Construction Work, and all other costs, fees and expenses relating in any way
whatsoever to the Construction Work and the operation of the Project. Borrower agrees that all
Loans shall be used only for the Budget Line Items for which such Loans are made (as re-allocated
from time to time in accordance with the terms of this Agreement). Borrower agrees that, while an
Event of Default exists, Administrative Agent may, at any time and from time to time without prior
written notice to Lead Borrower or Borrower, authorize the disbursement of the Budget Line Items
for the purposes for which they have been set aside, or for any other purposes related to the
Construction Work or otherwise provided for in the Budget as Administrative Agent may determine,
either by payment of such items or by reimbursement to Borrower for payments actually made by
Borrower for such items. Administrative Agent shall not be obligated to authorize the disbursement
of any amount for any category of costs set forth as a Budget Line Item which is greater than the
amount set forth for such category in the applicable Budget Line Item; provided, however, that
subject to Administrative Agent’s prior reasonable consent, Borrower may apply savings from one
Budget Line Item to cost overruns in another Budget Line Item or to the Contingency Fund, or to any
other unbudgeted Project Cost provided (a) there are no Potential Defaults or Events of Defaults
existing, (b) all costs to be paid out of the Budget Line Item from which funds are being
re-allocated have been paid or sufficient sums remain in said line item to pay such costs when the
same become due, (c) said savings are actual savings and are documented or otherwise established to
the satisfaction of Administrative Agent and the Construction Consultant in their reasonable
discretion, (d) such reallocation will not violate the provisions of the Lien Law or affect the
priority of the Mortgages on the Project and (e) Administrative Agent, at Borrower’s sole cost and
expense, obtains endorsements to the Title Policies insuring against “any statutory lien for
services, labor or materials furnished or contracted for prior to the date hereof i.e., the date of
such endorsement (or any statutory lien for services, labor or materials furnished after the date
hereof, the priority of which lien relates back to services, labor or materials furnished or
contracted for prior to the date hereof), and which has now gained or which may hereafter gain
priority over the estate or interest of the insured as shown in Schedule A of this policy,” as a
result of the reallocation of such Budget Line Item; provided, however, the Borrower shall not reallocate any portion of the Soft
Costs Budget Line Items which have been allocated to the payment of real estate taxes and the
interest reserve.

     Section 4.6 Interest; Fees; and Expenses.

          (1) Included in the Budget are projected amounts for (a) interest on the Loans, (b) the Agency Fee,
(c) the fees and expenses of the Construction Consultant, Administrative Agent’s counsel and the
Title Company and (d) the fees and expenses related to the recording of the Mortgages. Subject to
Borrower’s compliance with all of the conditions set forth in Schedule 4 and this
Article 4, Lead Borrower may in any Request for Loan Advance request advances for the
purpose of paying the aforesaid items due at such time, in which event Administrative Agent

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shall be authorized and is hereby directed to disburse the amount thereof to the Persons entitled to such
payments. Notwithstanding anything to the contrary contained in this Agreement or the other Loan
Documents, Lead Borrower shall not have the right to request the advance of any Loans for any items
covered by clauses (a) through (d) above to the extent Operating Revenues are
available to pay such items.

          (2) Borrower hereby authorizes Administrative Agent to disburse the proceeds of any Loan to
pay (a) interest accrued on the Notes, (b) the Agency Fees, (c) the fees and expenses of the
Construction Consultant, Administrative Agent’s counsel and the Title Company, (d) any expenses
payable in accordance with Section 9.28, and (e) any Date Down Endorsements,
notwithstanding that Lead Borrower may not have requested a disbursement of such amounts.

          (3) Subject to the provisions of Section 14.3, Administrative Agent in its sole and
absolute discretion may (but shall not be obligated to do so) direct the Lenders to make such Loans
for disbursements authorized under this Section 4.6 notwithstanding that the Loans are not
In Balance or that a Potential Default or Event of Default exists under the terms of this Agreement
or any other Loan Document. Such disbursements shall constitute a Loan and be added to the
principal balance of the Notes, and the Lenders shall make the applicable Loans to fund any such
disbursements. The authorization hereby granted is irrevocable, and no further direction,
authorization or Request for Loan Advance from Lead Borrower is necessary for the Lenders to make
such disbursements. Nothing contained in this Section 4.6 shall require Administrative
Agent to direct the Lenders to make Loans for payment of any of the items set forth in
subsection (2) above if the other conditions set forth in this Agreement for Loans are not
satisfied.

     Section 4.7 Reserved.

     Section 4.8 Tenant Improvement Allowances.

          (1) Loans shall be made to Borrower in connection with Tenant Improvement Allowances as the
same shall be payable pursuant to Approved Leases.

          (2) The first request for disbursement for any Tenant Improvement Allowance shall be
accompanied by the following, all of which shall be subject to the reasonable approval of the
Administrative Agent to the extent Borrower has any outstanding (i.e. unexpired) approval rights
with respect thereto pursuant to the terms of the applicable Approved Lease (any such approval or disapproval to be made by the Administrative Agent within a reasonably sufficient
time for Borrower to comply with any time limits set forth in the applicable Approved Lease for
Borrower’s response):

               (a) documentation required to be delivered by the applicable tenant pursuant to its respective
Approved Lease;

               (b) if not already delivered to the Administrative Agent, a fully executed lease (already
approved by the Administrative Agent) covering such leased space; and

               (c) all matters set forth in subsection (3) below.

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          (3) The Administrative Agent’s obligation to make disbursements of any Loans for Tenant
Improvement Allowances shall be subject to the further condition precedent that all of the
following requirements shall have been completed to the reasonable satisfaction of the
Administrative Agent to the extent Borrower has any outstanding (i.e. unexpired) approval rights
with respect thereto pursuant to the terms of the applicable Approved Lease (any such approval or
disapproval to be made by the Administrative Agent within a reasonably sufficient time for Borrower
to comply with any time limits set forth in the applicable Approved Lease for Borrower’s response):

               (a) Borrower shall have promptly furnished to the Administrative Agent and the Construction
Consultant all documents and other information relating to such Tenant Improvement Allowance which
Borrower is entitled to receive pursuant to and in accordance with the applicable Approved Lease;

               (b) Loans shall be made for Tenant Improvement Allowances only to the extent the applicable
tenant is then entitled to receive payments related to such Tenant Improvement Allowance pursuant
to the terms of its applicable Approved Lease;

               (c) no mechanic’s liens shall have been filed against the Project in connection with the work
being performed under the applicable Approved Lease; and

               (d) Borrower shall have complied with all the other applicable conditions precedent to a
disbursement of a Loan contained in Section 2.1.

          (4) The obligation of the Lenders to make the final Loan to Borrower for a Tenant Improvement
Allowance for any Approved Lease is subject to the further condition precedent that all of the
following requirements shall have been completed to the reasonable satisfaction of the
Administrative Agent (in the case of clause (b) below, to the extent Borrower has any
approval rights with respect thereto pursuant to the terms of the applicable Approved Lease, any
such approval or disapproval to be made by the Administrative Agent within a reasonably sufficient
time (but in no event less than ten (10) Business Days) to enable Borrower to comply with
applicable time limits set forth in the applicable Approved Lease for Borrower’s response):

               (a) The applicable work covered by a Tenant Improvement Allowance has been substantially
completed, subject to Punch List Items, free of mechanics’ liens unless such liens shall be bonded or otherwise removed of record or the Title Company shall have
provided affirmative coverage in accordance with Schedule 4 — Part A, paragraph 10;

               (b) Borrower shall have promptly furnished to the Administrative Agent and the Construction
Consultant all documents and other information relating to the final advance of the applicable
Tenant Improvement Allowance which Borrower is entitled to receive in accordance with the
applicable Lease; and

               (c) All of the applicable conditions precedent to any Loan contained in Section 2.1
shall have been satisfied.

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     Section 4.9 Direct Loan Advances by Administrative Agent. The Lenders shall, at the option of Administrative Agent, advance all or any part of any
particular Loan either (1) to Lead Borrower for disbursement in accordance with a Request for Loan
Advance, (2) while any Event of Default exists, directly to the Construction Manager, a Major
Contractor, other contractor, subcontractor, material supplier or other party any costs payable to
such party, (3) after an Event of Default, at Borrower’s expense, to the Title Company which shall
pay said monies to the parties as so instructed by Administrative Agent or (4) as contemplated by
Section 1.01(d) of the Completion Guaranty (whether the applicable work is being performed
by Guarantor or Administrative Agent). The execution of this Agreement by Borrower shall, and
hereby does, constitute an irrevocable authorization to the Lenders to make such direct advances
provided for in clauses (2), (3) and (4) above and no further authorization from
Borrower shall be necessary to warrant such direct advances, and all such direct advances shall be
secured by the Security Documents as fully as if made directly to Borrower, regardless of the
disposition thereof by any party so paid. After an Event of Default, at Administrative Agent’s
request, any advance of Loan proceeds made by and through the Title Company may be made pursuant to
a construction escrow agreement reasonably approved by Administrative Agent. Borrower agrees to
join as a party to such escrow agreement and to comply with the requirements set forth therein
(which shall be in addition to and not in substitution for the requirements contained in this
Agreement) and to pay the fees and expenses of the Title Company charged in connection with the
performance of its duties under such construction escrow agreement.

     Section 4.10 No Waiver or Approval by Reason of Loan Advances. The making of any Loans by the
Lenders shall not be deemed an acceptance or approval by Administrative Agent or the Lenders (for
the benefit of Borrower or any third party) of the Construction Work or other work theretofore done
or constructed or to the Lenders’ obligations to make further Loans, nor, in the event Borrower is
unable to satisfy any condition, shall any such failure to insist upon strict compliance have the
effect of precluding Administrative Agent or the Lenders from thereafter declaring such inability
to be an Event of Default as herein provided. Administrative Agent’s and/or the Lenders’ waiver
of, or failure to enforce, any conditions to or requirements associated with any Loans in any one
or more circumstances shall not constitute or imply a waiver of such conditions or requirements in
any other circumstances.

     Section 4.11 Authorization to Make Loan Advances to Cure Borrower’s Defaults. If an Event of
Default shall occur, Administrative Agent (subject to the provisions of Section 14.3) may
(but shall not be required to) perform any of such covenants and agreements with respect to which
Borrower is in Event of Default. Any amounts expended by Administrative Agent in so doing and any
amounts expended by Administrative Agent in connection therewith shall constitute a Loan and be
added to the outstanding principal balance of the Loans, and the Lenders shall make the applicable
Loans to fund any such disbursements. The authorization hereby granted is irrevocable, and no
prior notice to or further direction or authorization from Borrower is necessary for Administrative
Agent to make such disbursements.

     Section 4.12 Designation of Lead Borrower as Agent for Borrower.

          (1) Each Borrower hereby irrevocably designates and appoints the Lead Borrower as that
Borrower’s agent to obtain loans and advances under the Loan, the proceeds of which shall be
available to each Borrower as set forth herein. As the disclosed principal for its

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agent, each Borrower shall be obligated to the Agent and the Lenders on account of loans and advances so made
under the Loan as if made directly by the Lenders to that Borrower, notwithstanding the manner by
which such loans and advances are recorded on the books and records of the Lead Borrower and/or of
any Borrower (including, without limitation, on account of any such treatment of said loan or
advance as an equity investment in a Borrower by Lead Borrower).

          (2) Each Borrower recognizes that credit available to it under the Loan is in excess of and on
better terms than it otherwise could obtain on and for its own account and that one of the reasons
therefor is its joining in the credit facility contemplated herein with all other Borrowers.
Consequently, each Borrower, jointly and severally, hereby assumes and agrees fully, faithfully,
and punctually to discharge all obligations of all of the Borrowers under the Loan Documents.

          (3) The Lead Borrower shall act as a conduit for each Borrower (including itself, as a
“Borrower”) on whose behalf the Lead Borrower has requested a loan or other advance under the Loan.

          (4) The proceeds of each loan and advance provided under the Loan which is requested by the
Lead Borrower shall be deposited into an account in the name of the Lead Borrower or as otherwise
indicated by the Lead Borrower. The Lead Borrower shall cause the transfer of the proceeds thereof
to the Borrower(s) on whose behalf such loan and advance was obtained. Neither the Agent nor any
Lender shall have any obligation to see to the application of such proceeds.

          (5) Each Borrower hereby irrevocably designates and appoints the Lead Borrower as that
Borrower’s attorney-in-fact to act in the Borrower’s name and stead and to do and perform all
matters, to grant to the Agent for the benefit of the Lenders a security interest in the
Collateral, transact all business, and make, execute and acknowledge all Loan Documents and other
instruments relating to this Agreement including but not limited to, this Agreement, the Note, and the Security Documents. The Borrowers hereby acknowledge and agree that the power
of attorney created hereby is coupled with an interest.

     Section 4.13 Administrative Agent’s Right to Make Loan Advances in Compliance with the Guaranty of
Completion. Any Loan proceeds disbursed by Administrative Agent as contemplated by Section 1.01(b)
of the Guaranty of Completion (whether the applicable work is being performed by Guarantor or
Administrative Agent) shall constitute a Loan and be added to the outstanding principal balance of
the Loans, and the Lenders shall make the applicable Loans to fund any such disbursements. The
authorization hereby granted is irrevocable and no prior notice to or further direction or
authorization from Borrower is necessary for Administrative Agent to make such disbursements.

     Section 4.14 No Third-Party Benefit. This Agreement is solely for the benefit of the Lenders,
Administrative Agent, Lead Borrower and Borrower. All conditions of the obligations of the Lenders
to make advances hereunder are imposed solely and exclusively for the benefit of the Lenders and
may be freely waived or modified in whole or in part by the Lenders at any time if in their sole
discretion they deem it advisable to do so, and no Person other than Lead

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Borrower or Borrower(provided, however, that all conditions have been satisfied) shall have standing to
require the Lenders to make any Loan advances or shall be a beneficiary of this Agreement or any
advances to be made hereunder.

ARTICLE 5

ENVIRONMENTAL MATTERS

     Section 5.1 Certain Definitions. As used herein, the following terms have the meanings indicated:

          (1) “Environmental Claim” means, with respect to any Person, any written request for
information by a governmental authority, or any written notice, notification, claim,
administrative, regulatory or judicial action, suit, judgment, demand or other written
communication by any Person or governmental authority alleging or asserting liability with respect
to Borrower or the Project, whether for damages, contribution, indemnification, cost recovery,
compensation, injunctive relief, investigatory, response, remediation, damages to natural
resources, personal injuries, fines or penalties arising out of, based on or resulting from (i) the
presence, use or release into the environment of any Hazardous Materials originating at or from, or
otherwise affecting, the Project, (ii) any fact, circumstance, condition or occurrence forming the
basis of any violation, or alleged violation, of any Environmental Law by Borrower or otherwise
affecting the health, safety or environmental condition of the Project or (iii) any alleged injury
or threat of injury to the environment by Borrower or otherwise affecting the Project.

          (2) “Environmental Laws” means any federal, state or local law (whether imposed by
statute, or administrative or judicial order, or common law), now or hereafter enacted and
applicable to the Project, governing health, safety, industrial hygiene, the environment or natural
resources, or Hazardous Materials, including, such laws governing or regulating the use,
generation, storage, removal, recovery, treatment, handling, transport, disposal, control,
discharge of, or exposure to, Hazardous Materials.

          (3) “Environmental Liens” has the meaning assigned to such term in Section 5.3(4).

          (4) “Environmental Losses” means any losses, damages, costs, fees, expenses, claims,
suits, judgments, awards, liabilities (including, but not limited to, strict liabilities),
obligations, debts, diminutions in value, fines, penalties, charges, costs of remediation (whether
or not performed voluntarily), amounts paid in settlement, foreseeable and unforeseeable
consequential damages, litigation costs, reasonable attorneys’ fees and expenses, engineers’ fees,
environmental consultants’ fees, and investigation costs (including, but not limited to, costs for
sampling, testing and analysis of soil, water, air, building materials, and other materials and
substances whether solid, liquid or gas), of whatever kind or nature, and whether or not incurred
in connection with any judicial or administrative proceedings, actions, claims, suits, judgments or
awards relating to Hazardous Materials, Environmental Claims, Environmental Liens and violation of
Environmental Laws.

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          (5) “Hazardous Materials” means (a) petroleum or chemical products, whether in liquid,
solid, or gaseous form, or any fraction or by product thereof, (b) asbestos or asbestos containing
materials, (c) polychlorinated biphenyls (PCBs), (d) radon gas, (e) underground storage tanks, (f)
any explosive or radioactive substances, (g) lead or lead-based paint, (h) Mold, or (i) any other
substance, material, waste or mixture which is or shall be listed, defined, or otherwise determined
by any governmental authority to be hazardous, toxic, dangerous or otherwise regulated, controlled
or giving rise to liability under any Environmental Laws.

          (6) “Mold” means any microbial or fungus contamination or infestation in any Project
of a type that could reasonably be anticipated (after due inquiry and investigation) to pose a risk
to human health or the environment or could reasonably be anticipated (after due inquiry and
investigation) to negatively impact the value of the affected Property in any material respect.

     Section 5.2 Representations and Warranties on Environmental Matters. Borrower represents and warrants to Administrative Agent and the Lenders that, to
Borrower’s knowledge, except as set forth in the Site Assessment, (1) no Hazardous Material is now
or was formerly used, stored, generated, manufactured, installed, treated, discharged, disposed of
or otherwise present at or about the Project or any property adjacent to the Project (except for
cleaning and other products currently used in connection with the routine maintenance or repair of
the Project and de minimus quantities used by tenants in the normal course of business in full
compliance with Environmental Laws), (2) all permits, licenses, approvals and filings required by
Environmental Laws have been obtained, and the use, operation and condition of the Project do not, and did not previously, violate any
Environmental Laws, (3) no civil, criminal or administrative action, suit, claim, hearing,
investigation or proceeding has been brought or been threatened, nor have any settlements been
reached by or with any parties or any Liens imposed in connection with the Project concerning
Hazardous Materials or Environmental Laws and (4) no underground storage tanks exist at the
Project.

     Section 5.3 Covenants on Environmental Matters.

          (1) Borrower shall (a) comply strictly and in all respects with applicable Environmental Laws;
(b) notify Administrative Agent immediately upon Borrower’s discovery of any spill, discharge,
release or presence of any Hazardous Material at, upon, under, within, contiguous to or otherwise
affecting the Project; (c) promptly remove such Hazardous Materials and remediate the Project in
full compliance with Environmental Laws and as reasonably recommended to preserve the value and/or
use of the Project, in accordance with the reasonable recommendations and specifications of an
independent environmental consultant approved by Administrative Agent; and (d) promptly forward to
Administrative Agent copies of all orders, notices, permits, applications or other communications
and reports in connection with any spill, discharge, release or the presence of any Hazardous
Material or any other matters relating to the Environmental Laws or any similar laws or
regulations, as they may affect the Project or Borrower.

          (2) Borrower shall not cause, shall prohibit any other Person within the control of Borrower
from causing, and shall use prudent, commercially reasonable efforts to

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prohibit other Persons(including tenants) from causing (a) any spill, discharge or release, or the use, storage,
generation, manufacture, installation, or disposal, of any Hazardous Materials at, upon, under,
within or about the Project or the transportation of any Hazardous Materials to or from the Project
(except for cleaning and other products used in connection with the routine maintenance or repair
of the Project in full compliance with Environmental Laws), (b) any underground storage tanks to be
installed at the Project, or (c) any activity that requires a permit or other authorization under
Environmental Laws to be conducted at the Project.

          (3) Lead Borrower shall provide to Administrative Agent, at Borrower’s expense promptly upon
the written request of Administrative Agent from time to time, a Site Assessment or, if required by
Administrative Agent, an update to any existing Site Assessment, to assess the presence or absence
of any Hazardous Materials and the potential costs in connection with abatement, cleanup or removal
of any Hazardous Materials found on, under, at or within the Project. Borrower shall pay the cost
of no more than one such Site Assessment or update in any twelve (12) month period, unless
Administrative Agent’s request for a Site Assessment is based on a reasonable suspicion of
Hazardous Materials at or near the Project, a breach of representations under Section 5.2,
or an Event of Default, in which case any such Site Assessment or update shall be at Borrower’s
expense.

          (4) Environmental Notices. Lead Borrower shall promptly provide notice to Administrative
Agent of:

               (a) all Environmental Claims asserted or threatened against Borrower or any other party
occupying the Project or any portion thereof or against the Project which become known to Borrower;

               (b) the discovery by Borrower of any occurrence or condition on the Project or on any real
property adjoining or in the vicinity of the Project which could reasonably be expected to lead to
an Environmental Claim against Borrower, Administrative Agent or any of the Lenders;

               (c) the commencement or completion of any environmental remediation at the Project; and

               (d) any Lien or other encumbrance imposed pursuant to any Environmental Law
(“Environmental Liens”).

In connection therewith, Lead Borrower shall transmit to Administrative Agent copies of any
citations, orders, notices or other written communications received from any Person and any
notices, reports or other written communications submitted to any governmental authority with
respect to the matters described above.

     Section 5.4 Allocation of Risks and Indemnity. As between Borrower, Administrative Agent and the Lenders, all risk of loss associated with
non-compliance with Environmental Laws, or with the presence of any Hazardous Material at, upon,
within, contiguous to or otherwise affecting the Project, shall lie solely with Borrower.
Accordingly, Borrower shall bear all risks and costs associated with any Environmental Loss, damage
or liability therefrom, including all costs of removal of Hazardous Materials or other remediation

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required hereunder or by law. Borrower shall indemnify, defend and hold Administrative Agent and
the Lenders harmless from and against all loss, liabilities, damages, claims, costs and expenses
(including reasonable costs of defense) arising out of or associated, in any way, with the
non-compliance with Environmental Laws, or the existence of Hazardous Materials in, on, or about
the Project, or a breach of any representation, warranty or covenant contained in this Article
5, whether based in contract, tort, implied or express warranty, strict liability, criminal or
civil statute or common law, including those arising from the joint, concurrent, or comparative
negligence of Administrative Agent and the Lenders; provided, however, Borrower shall not be liable
under such indemnification to the extent such loss, liability, damage, claim, cost or expense
results solely from Administrative Agent’s or any Lender’s gross negligence or willful misconduct.
Borrower’s obligations under this Section 5.4 shall arise upon the discovery of the
presence of any Hazardous Material, whether or not any governmental authority has taken or
threatened any action in connection with the presence of any Hazardous Material, and whether or not
the existence of any such Hazardous Material or potential liability on account thereof is disclosed
in the Site Assessment and shall continue notwithstanding the repayment of the Loans or any
transfer or sale of any right, title and interest in the Project (by foreclosure, deed in lieu of
foreclosure or otherwise).

     Section 5.5 No Waiver. Notwithstanding any provision in this Article 5 or elsewhere in the Loan Documents,
or any rights or remedies granted by the Loan Documents, Administrative Agent and the Lenders do
not waive and expressly reserve all rights and benefits now or hereafter accruing to Administrative
Agent and/or any Lenders under the “security interest” or “secured creditor” exception under
applicable Environmental Laws, as the same may be amended. No action taken by Administrative Agent
and/or any Lender pursuant to the Loan Documents shall be deemed or construed to be a waiver or
relinquishment of any such rights or benefits under the “security interest exception.”

ARTICLE 6

LEASING MATTERS

     Section 6.1 Representations and Warranties on Leases. Borrower represents and warrants to Administrative Agent and the Lenders with respect to
leases of the Project that: (1) to Borrower’s knowledge, the rent roll delivered to Administrative
Agent is true and correct, and the leases are valid and in and full force and effect; (2) the
leases (including amendments) are in writing, and there are no oral agreements with respect
thereto; (3) the copies of the leases delivered to Administrative Agent are true and complete; (4)
to Borrower’s knowledge, neither the landlord nor any tenant is in default under any of the leases;
(5) Borrower has no knowledge of any notice of termination or default with respect to any lease;
(6) Borrower has not assigned or pledged any of the leases, the rents or any interests therein
except to Administrative Agent (on behalf of the Lenders); (7) no tenant or other party has an
option to purchase all or any portion of the Project; (8) no tenant has the right to terminate its
lease prior to expiration of the stated term of such lease except in the case of a casualty or
condemnation of the Project to the extent permitted pursuant to the terms and conditions of such
lease; and (9) no tenant has prepaid more than one month’s rent in advance (except for bona fide
security deposits not in excess of an amount equal to two month’s rent). To the extent that any
part of the Land is located in the State of New York, reference is hereby made to Section 291-f of
the Real Property Law of the State of

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New York for purposes of obtaining for Administrative Agent and the Lender the benefits of said Section in connection herewith.

     Section 6.2 Standard Lease Form; Approval Rights. All leases and other rental arrangements shall in all respects be approved by
Administrative Agent and shall be on a standard lease form for the Office Component, approved by
Administrative Agent with no material modifications (except as approved by Administrative Agent in
writing). Such lease form shall provide (a) that the lease is subordinate to the Mortgages, (b)
that the tenant shall attorn to Administrative Agent (on behalf of the Lenders) following an Event
of Default and (c) that any cancellation, surrender, or amendment of such lease without the prior
written consent of Administrative Agent shall be voidable by Administrative Agent. Borrower shall
hold, in trust, all tenant security deposits in a segregated account, and, to the extent required
by Applicable Law, shall not commingle any such funds with any other funds of Borrower. Within ten
(10) days after Administrative Agent’s request, Borrower shall furnish to Administrative Agent a
statement of all tenant security deposits, and copies of all leases not previously delivered to
Administrative Agent, certified by Borrower as being true and correct. Notwithstanding anything contained in the Loan Documents,
Administrative Agent’s approval shall not be required for future leases or lease extensions if the
following conditions are satisfied: (1) there exists no Potential Default or Event of Default; (2)
the lease is on the standard lease form approved by Administrative Agent with no modifications
except for commercially reasonable changes agreed to in the ordinary course of Borrower’s business,
but in any event there shall be no modifications to the subordination, attornement, estoppel and
landlord liability clause without the prior written consent of Administrative Agent; (3) the lease
does not conflict with any restrictive covenant affecting the Project or any other lease for space
in the Project; (4) the lease is not a Major Lease; (5) the lease shall provide for rental rates
and landlord concessions comparable to existing local market rates as shall be established pursuant
to the Leasing Guidelines; (6) the lease is with a third party not an Affiliate of Borrower,
Sponsor or Guarantor; (7) the lease shall not contain any options for renewal or expansion by the
tenant at rental rates which are below reasonable comparable market levels at the time the lease is
executed; (8) the lease shall be to a tenant which Borrower, in its professional and commercially
reasonable judgment, has determined is creditworthy and (9) the lease is for a term of not more
than ten (10) years (exclusive of renewal options which, together with the initial lease term shall
not exceed fifteen (15) years).

     Section 6.3 Covenants. Borrower (1) shall perform the obligations which Borrower is required to perform under the
leases, including the performance of any Tenant Improvement Work with respect thereto; (2) shall
enforce the obligations to be performed by the tenants; (3) shall promptly furnish to
Administrative Agent any notice of default or termination received by Borrower from any tenant, and
any notice of default or termination given by Borrower to any tenant; (4) shall not collect any
rents for more than thirty (30) days in advance of the time when the same shall become due, except
for bona fide security deposits not in excess of an amount equal to two month’s rent; (5) shall not
enter into any ground lease or master lease of any part of the Project; (6) shall not further
assign or encumber any lease; (7) shall not, except with Administrative Agent’s prior written
consent, cancel or accept surrender or termination of any Major Lease; (8) shall not, except with
Administrative Agent’s prior written consent, modify or amend any Major Lease (except for minor
modifications and amendments entered into in the ordinary course of business, consistent with
prudent property management practices, not

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affecting the economic terms of the lease); (9) shall use its best efforts to lease the Improvements; and (10) shall not, with respect to the Best Buy
Lease, select or change the “Outside Delivery Date” (as defined in such lease) without the prior
written consent of Administrative Agent, and any action in violation of clauses (5), (6), (7), and
(8) of this Section 6.3 shall be void at the election of Administrative Agent.

     Section 6.4 Tenant Estoppels. At Administrative Agent’s request, Borrower shall, within thirty (30) days, obtain and
furnish to Administrative Agent, (1) written estoppels in form and substance reasonably
satisfactory to Administrative Agent, executed by tenants under leases in the Project and
confirming the term, rent, and other provisions and matters relating to the leases and (2) written
subordination and attornment agreements, in form and substance satisfactory to Administrative
Agent, executed by tenants under leases in the Project, whereby, among other things, such tenants subordinate their interest in the Project to the Loan Documents and agree to attorn to
Administrative Agent (on behalf of the Lenders) and its successors and assigns upon foreclosure or
other transfer of the Project after an Event of Default.

ARTICLE 7

REPRESENTATIONS AND WARRANTIES

     Borrower represents and warrants to Administrative Agent and the Lenders that:

     Section 7.1 Organization and Power. Borrower and each Borrower Party is duly organized, validly existing and in good standing
under the laws of the state of its formation or existence, and is in compliance with legal
requirements applicable to doing business in the State. Borrower is not a “foreign person” within
the meaning of § 1445(f)(3) of the Internal Revenue Code. Lead Borrower’s U.S. taxpayer
identification number is 20-1577239 and Fordham Office’s U.S. taxpayer identification number is
26-1094416.

     Section 7.2 Validity of Loan Documents. The execution, delivery and performance by Borrower and each Borrower Party of the Loan
Documents: (1) are duly authorized and do not require the consent or approval of any other party
or governmental authority which has not been obtained; and (2) will not violate any law or result
in the imposition of any Lien upon the assets of any such party, except as contemplated by the Loan
Documents. The Loan Documents constitute the legal, valid and binding obligations of Borrower and
each Borrower Party, enforceable in accordance with their respective terms, subject to applicable
bankruptcy, insolvency, or similar laws generally affecting the enforcement of creditors’ rights.

     Section 7.3 Liabilities; Litigation.

          (1) The financial statements delivered by Borrower and each Borrower Party are true and
correct with no material change since the date of preparation. Except as disclosed in such
financial statements, there are no liabilities (fixed or contingent) affecting the Project,
Borrower or any Borrower Party. Except as disclosed in such financial statements, there is no
litigation, administrative proceeding, investigation or other legal action (including any
proceeding under any state or federal bankruptcy or insolvency law) pending or, to the

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knowledge of Borrower, threatened, against the Project, Borrower or any Borrower Party which if adversely
determined could have a Material Adverse Effect.

          (2) Neither Borrower nor any Borrower Party is contemplating either the filing of a petition
by it under state or federal bankruptcy or insolvency laws or the liquidation of all or a major
portion of its assets or property, and neither Borrower nor any Borrower Party has knowledge of any
Person contemplating the filing of any such petition against it.

     Section 7.4 Taxes and Assessments. The Project is comprised of one or more parcels, each of which constitutes a separate tax
lot and none of which constitutes a portion of any other tax lot. There are no pending or, to
Borrower’s best knowledge, proposed, special or other assessments for public improvements or
otherwise affecting the Project, nor are there any contemplated improvements to the Project (other
than the Construction Work) that may result in such special or other assessments.

     Section 7.5 Other Agreements; Defaults. Neither Borrower nor any Borrower Party is a party to or in violation of any agreement or
instrument or subject to any court order, injunction, permit, or restriction which might have a
Material Adverse Effect.

     Section 7.6 Compliance with Law; Government Approvals.

          (1) Borrower and the Project, as applicable, and the contemplated use thereof and operations
thereat, comply, and upon completion of construction of the Construction Work shall comply, with
all Applicable Law, except where the failure so to comply could not reasonably be expected to have
a Material Adverse Effect.

          (2) All Government Approvals necessary in connection with the construction and operation of
the Project as contemplated by the Loan Documents and the Project Documents, are set forth in
Schedule 7.6 attached hereto (the “Permitting Schedule”) and, other than those
Government Approvals to be obtained after the date hereof as expressly identified in the Permitting
Schedule, have been duly obtained, were validly issued, are in full force and effect, are not
subject to appeal, are held in the name of Borrower (in the case of the Project, are held in the
name of Borrower (in the case of the Project), are free from conditions or requirements, the
compliance with which could reasonably be expected to have a Material Adverse Effect or which
Borrower does not reasonably expect will be able to be satisfied in the ordinary course of
business, and are assignable to and assumable by the successors in interest and transferees of
Borrower and run with the land.

          (3) There is no proceeding pending or, to Borrower’s Knowledge, threatened that seeks, or may
reasonably be expected, to rescind, terminate, modify or suspend any such Government Approval.

          (4) The information set forth in each application and other written material submitted by
Borrower and, to Borrower’s Knowledge, to the applicable Governmental Authority in connection with
each such Government Approval is accurate and complete in all material respects.

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          (5) The Government Approvals expressly described on the Permitting Schedule as those to be
obtained after the date hereof are required solely in connection with later stages of development,
construction or operation of the Improvements. Borrower has no reason to believe that any
Government Approval that has not yet been obtained by Borrower, but which will be required in the
future, will not be granted in due course, on or prior to the date when required and free from any
condition or requirement which Borrower does not reasonably expect will be able to be satisfied in
the ordinary course of business.

          (6) The Project (if constructed in accordance with the Plans and Specifications and the
Project Documents) will conform to and comply with all covenants, conditions, restrictions and
reservations in the Government Approvals and all Applicable Law, except where the failure so to
comply could not reasonably be expected to have a Material Adverse Effect.

          (7) Borrower has no reason to believe that Administrative Agent, acting for the benefit of the
Lenders, will not be entitled, to the benefit of each Government Approval set forth on the
Permitting Schedule hereto with respect to the Project upon the exercise of remedies under the
Security Documents.

          (8) Borrower has delivered to Administrative Agent a true and complete copy of each Government
Approval heretofore obtained with respect to the Project as indicated on the Permitting Schedule,
as the same shall be supplemented during the course of obtaining additional Government Approvals as
the Construction Work proceeds.

     Section 7.7 Location of Borrower. Borrower’s principal place of business and chief executive
offices are located at the address stated in Section 12.1.

     Section 7.8 ERISA. Borrower has no employees and has not established any pension plan for
employees which would cause Borrower to be subject to the Employee Retirement Income Security Act
of 1974, as amended.

     Section 7.9 Margin Stock. No part of proceeds of the Loans will be used for purchasing or
acquiring any “margin stock” within the meaning of Regulations T, U or X of the Board of Governors
of the Federal Reserve System.

     Section 7.10 Tax Filings. Borrower and each Borrower Party have filed (or have obtained
effective extensions for filing) all federal, state and local tax returns required to be filed and
have paid or made adequate provision for the payment of all federal, state and local taxes, charges
and assessments payable by Borrower and each Borrower Party, respectively.

     Section 7.11 Solvency. Giving effect to the Loans, the fair saleable value of Borrower’s assets exceeds and will,
immediately following the making of the Loans, exceed Borrower’s total liabilities, including,
without limitation, subordinated, unliquidated, disputed and contingent liabilities. The fair
saleable value of Borrower’s assets is and will, immediately following the making of the Loans, be
greater than Borrower’s probable liabilities, including the maximum amount of its contingent
liabilities on its Debts as such Debts become absolute and matured. Borrower’s assets do not and,
immediately following the making of the Loans will not, constitute unreasonably small capital to
carry out its business as conducted or as proposed to be conducted. Borrower does not intend to,
and does not believe that it will, incur Debts and

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liabilities (including contingent liabilities
and other commitments) beyond its ability to pay such Debts as they mature (taking into account the
timing and amounts of cash to be received by Borrower and the amounts to be payable on or in
respect of obligations of Borrower).

     Section 7.12 Full and Accurate Disclosure. No statement of fact made by or on behalf of
Borrower or any Borrower Party in this Agreement or in any of the other Loan Documents or in any
certificate, statement or questionnaire delivered by Borrower or any Borrower Party in connection
with the Loans 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 fact
presently known to Borrower or any Borrower Party which has not been disclosed to Administrative
Agent which might have a Material Adverse Effect.

     Section 7.13 Single Purpose Entity. Borrower is and has at all times since its formation been
a Single Purpose Entity.

     Section 7.14 Property Management Agreement; Construction Management Agreement; Development
Agreement.

          (1) The Property Management Agreement is the only property management agreement in existence
with respect to the operation or management of the Project. The copy of the Property Management
Agreement delivered to Administrative Agent is a true and correct copy, and such agreement has not
been modified. Neither party to such agreement is in default under such agreement and the Property
Manager has no defense, offset right or other right to withhold performance under or terminate such
agreement.

          (2) The Construction Management Agreement is the only Construction Management Agreement in
existence with respect to the construction management of the Project. The copy of the Construction
Management Agreement delivered to Administrative Agent is a true and correct copy, and such
agreement has not been modified. Neither party to such agreement is in default under such
agreement and the Construction Manager has no defense, offset right or other right to withhold
performance under or terminate such agreement.

          (3) There is no development agreement with respect to the Project.

     Section 7.15 No Conflicts.

          (1) The execution, delivery and performance of the Loan Documents, and the Project Documents
by Borrower do not and 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
(other than pursuant to the Loan Documents) upon any of the property or assets of Borrower pursuant
to the terms of any indenture, mortgage, deed of trust, loan agreement, operating agreement or
other agreement or instrument to which Borrower is a party or by which any of Borrower’s property
or assets is subject, nor will such action result in any violation of the provisions of any
Applicable Law or Government Approval applicable to Borrower or the Project.

          (2) Each Government Approval required for and each consent or approval required to be obtained
from, and notice required to be delivered to, any other Person in

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connection with the execution,
delivery and performance by Borrower of this Agreement, the other Loan Documents, and the Project
Documents has been obtained or delivered and is in full force and effect.

     Section 7.16 Title. Borrower has good, marketable and insurable fee simple title to the
Project, free and clear of all Liens, except for the Permitted Encumbrances and such other Liens as
are permitted pursuant to the Loan Documents. The Mortgages create (and upon the recordation
thereof and of any related financing statements there will be perfected) (1) a valid Lien on the
Project, subject only to Permitted Encumbrances and (2) security interests in and to, and
collateral assignments of, all personalty (including the leases), all in accordance with the terms
thereof, in each case subject only to any applicable Permitted Encumbrances and such other Liens as
are permitted pursuant to the Loan Documents. There are no claims for payment for work, labor or
materials affecting the Project which are or may become a Lien prior to, or of equal priority with,
the Liens created by the Loan Documents.

     Section 7.17 Use of Project. The Project, upon completion of the construction of the
Improvements, will be used exclusively for retail, office and other ancillary uses permitted by
applicable zoning law, and for no other purpose or purposes.

     Section 7.18 Flood Zone. No portion of the Project or the Improvements is located in an area
identified by the Secretary of Housing and Urban Development or any successor thereto as an area
having special flood hazards pursuant to the National Flood Insurance Act of 1968, the Flood
Disaster Protection Act of 1973 or the National Flood Insurance Act of 1994, as amended, or any
successor law.

     Section 7.19 Insurance. Borrower has obtained and has delivered to Administrative Agent certified copies of all of
the insurance policies for the Project reflecting the insurance coverages, amounts and other
insurance requirements set forth in this Agreement. No claims have been made under any such
policy, and no Person, including Borrower, has done, by act or omission, anything which would
impair the coverage of any such policy.

     Section 7.20 Condemnation. No condemnation has been commenced or, to Borrower’s knowledge, is
contemplated with respect to all or any portion of the Project or for the relocation of roadways
providing access to the Project.

     Section 7.21 Utilities; Access. The Project has adequate rights of access to public ways and
is or will, following completion of the Improvements, be served by adequate electric, gas, water,
sewer, sanitary sewer and storm drain facilities. All public utilities necessary to the full use
and enjoyment of the Project are or will be located in the public right-of-way abutting such
project, there exists sufficient capacity to support the Project and all such utilities are or
will, following the completion of the Improvements, be connected so as to serve such project
without passing over other property, except to the extent such other property is subject to a
perpetual easement for such utility benefiting such project. All roads necessary for the full
utilization of the Project for its current purpose have been or will be completed and dedicated to
public use and accepted by all Governmental Authorities. Except for on-site and off-site
infrastructure improvements to be developed pursuant to the Government Approvals by Borrower for
the Project, there are no amenities, services or facilities (including those for access,

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parking,
recreational activities and otherwise) not located or to be constructed upon the Project, pursuant
to the applicable Project Documents, which are necessary to the use or enjoyment, or intended to
benefit the owner or occupants, thereof.

     Section 7.22 Boundaries. Except as shown on the Survey all of the improvements to be
developed in connection with the Project lie wholly within the boundaries and building restriction
lines of such project, and no improvements on adjoining properties encroach upon the Project.

     Section 7.23 Separate Lots. The Project is comprised of one (1) or more parcels which
constitutes one (1) or more separate tax lots and does not constitute a portion of any other tax
lot not a part of the Project.

     Section 7.24 Filing and Recording Taxes. All transfer taxes, deed stamps, intangible taxes or
other amounts in the nature of transfer taxes required to be paid by any Person under applicable
legal requirements currently in effect in connection with the transfer of the Project to Borrower
or any transfer of a controlling interest in Borrower have been paid. All mortgage, mortgage
recording, stamp, intangible or other similar tax required to be paid by any Person 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 and, the Mortgages are enforceable in
accordance with its terms by Administrative Agent or any subsequent holder thereof (on behalf of
the Lenders), subject to applicable bankruptcy, insolvency, or similar laws generally affecting the
enforcement of creditors’ rights.

     Section 7.25 Investment Company Act. Borrower is not (1) an “investment company” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940,
as amended; or (2) subject to any other federal or state law or regulation which purports to
restrict or regulate its ability to borrow money.

     Section 7.26 Foreign Assets Control Regulations, Etc. Neither the execution and delivery of
the Notes and the other Loan Documents by Borrower Parties nor the use of the proceeds of the
Loans, will violate the Trading with the Enemy Act, as amended, or any of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended), Executive Order No. 13,224,66 Fed. Reg. 49,079 (2001), issued by the President of the
United States of America (Executive Order Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism) or any enabling legislation or
executive order relating to any of the same. No Borrower Party nor any of their respective
subsidiaries or Affiliates is a Prohibited Person.

     Section 7.27 Organizational Structure.

          (1) Borrower has heretofore delivered to Administrative Agent a true and complete copy of the
Organizational Documents of each Borrower Party.

          (2) Schedule 7.27 contains a true and accurate chart reflecting the ownership of all
of the direct and indirect equity interests in Borrower and each Borrower Party, including the
percentage of ownership interest of the Persons shown thereon.

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     Section 7.28 Project Documents. Borrower has heretofore delivered to Administrative Agent a
true and complete copy of each Project Document and, subject to the terms of Section 9.7 of the
Building Loan Agreement, none of the Project Documents has been further modified. The Project
Documents are in full force and effect and Borrower is not in default under or with respect to any
Project Document. To the best of Borrower’s knowledge, no other party to a Project Document is in
default under any material covenant or obligation set forth therein.

     Section 7.29 Budget. The amounts and allocations set forth in the Budget (including the
Project Costs), as it may be amended in accordance with the terms of this Agreement, present a
full, complete and good faith representation of all costs, expenses and fees anticipated to be
required to acquire and
develop the Project, complete the Construction Work, and pay interest on the Loans, the
carrying and operating costs for the Project, costs in connection with the leasing of premises
within the Project.

     Section 7.30 Interim Disbursements. All Loans, if any, disbursed prior to the date hereof by
Administrative Agent to Lead Borrower have been applied to the respective items listed in the
respective Request for Loan Advance, except that in the case of any disputed items, such Loans have
been applied to other Budget Line Items with Administrative Agent’s prior approval or repaid to
Administrative Agent (on behalf of the Lenders).

     Section 7.31 Reserved.

     Section 7.32 Tenant Improvement Allowances. Schedule 7.32 attached hereto sets forth
a true and complete summary of all Tenant Improvement Allowances currently provided for in the
Leases; provided that Schedule 7.32 shall be subject to update as Approved Leases are
executed and/or amended in accordance with the terms hereof and as plans for Tenant Improvement
Allowances are further developed pursuant to Approved Leases.

     Section 7.33 Reserved.

ARTICLE 8

FINANCIAL REPORTING

     Section 8.1 Financial Statements.

          (1) Monthly Reports. During the period commencing on the Closing Date and ending upon the
satisfaction of the Project Work Substantial Completion Conditions, as soon as available and in any
event within fifteen (15) Business Days after the end of each calendar month occurring during such
period, a certificate of an authorized officer of Lead Borrower, in form and substance reasonably
satisfactory to Administrative Agent, setting forth in reasonable detail (a) Borrower’s total
sources of funds and uses thereof during such month (specifically identifying any uses of
contingency funds permitted to be advanced by Administrative Agent), (b) the aggregate amounts paid
during such month to the Construction Manager and/or subcontractors and any unpaid amounts owing to
the Construction Manager and/or subcontractors which are sixty (60) days past their due date, (c)
variations from the Construction Schedule, including, without limitation, the estimated Completion
Date, and the reasons therefor, (d) if the amounts paid to the Construction Manager and/or
subcontractors during such month are

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at variance from the amounts scheduled to be paid pursuant to
the applicable Request for Loan Advance, the reasons for such variance, (e) any Liens placed on the
Project and their payment status, (f) the status of construction generally and of the Government
Approvals necessary for the construction and operation of the Project; and (g) copies of Lien
Waivers and any other reports as may reasonably be requested by Administrative Agent.

          (2) Quarterly Reports. Within sixty (60) days after the end of each calendar quarter (except
for the fourth quarter ending on December 31), Lead Borrower shall furnish to Administrative Agent
(a) on and after the satisfaction the Project Work Substantial Completion Conditions, quarterly
operating statements for the Project for the most recent fiscal quarter, (b) a current rent roll
for the Project, (c) on and after the Occupancy of the first tenant in the Project for operation of
its business, a statement of all rent arrearages as of the last day of such fiscal quarter, (d) a
leasing status report, (e) quarterly financial statements (including a balance sheet, income
statement and cash flow statement) for Borrower, Guarantor and the Managing Member prepared in
accordance with GAAP (and including all appropriate and customary notes), and (f) a certificate
executed by the chief financial officer of Borrower or the Managing Member of Borrower stating that
each such quarterly statement presents fairly the financial condition and the results of operations
of Borrower and the Project and has been prepared in accordance with general accepted accounting
principles.

          (3) Annual Reports. Within one hundred twenty (120) days after the end of each calendar year,
Lead Borrower will furnish to Administrative Agent a complete copy of Borrower’s annual financial
statements prepared in accordance with GAAP and otherwise in form and detail reasonably acceptable
to Administrative Agent, for such calendar year which financial statements shall contain (x) a
balance sheet and (y) on and after the Occupancy of the first tenant in the Project, a detailed
operating statement for each of Borrower and the Project. Borrower’s annual financial statements
shall be accompanied by (i) a comparison of the budgeted income and expenses and the actual income
and expenses for the prior calendar year, and (ii) a certificate executed by the chief financial
officer of Borrower or the Managing Member of Borrower (in the case of the Borrower financial
statements) stating that each such annual financial statement presents fairly the financial
condition and the results of operations of Borrower and the Project and has been prepared in
accordance with general accepted accounting principles. Together with Borrower’s annual financial
information to be delivered pursuant to this Section 8.1(3), copies, certified by an
Authorized Officer of Borrower to be true and correct, for each annual period prior to the
Completion Date, the annual audited financial statement of the Construction Manager, in each case
prepared in accordance with GAAP, and together with the opinion of the independent certified public
accountant of the Construction Manager, which opinion is not qualified as to the scope of the audit
or as to the status of the Construction Manager.

          (4) Additional Reports. Upon completion of the Improvements and if the Maturity Date is
extended pursuant to Section 2.5, Lead Borrower shall deliver to Administrative Agent as
soon as reasonably available, but in no event later than thirty (30) days after such items become
available to Borrower in final form a summary report containing each of the following with respect
to the Project for the most recently completed calendar year: (A) aggregate sales by tenants under
leases or other occupants of the Project, both on an actual (or to the extent such information is
not provided by tenants, Property Manager’s or Borrower’s best estimate) and on

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a comparable store
basis, (B) rent per square foot payable by each tenant and (C) aggregate Occupancy of the Project
by anchor space and in-line store space as of December 31.

     
Section 8.2 Accounting Principles. All financial statements shall be prepared in accordance with sound accounting principles
applicable to commercial real estate, consistently applied from year to year. If the financial
statements are prepared on an accrual basis, such statements shall be accompanied by a
reconciliation to cash basis accounting principles.

     Section 8.3 Other Information. Lead Borrower shall deliver to Administrative Agent such
additional information regarding Borrower, its subsidiaries, its business, any Borrower Party, and
the Project within thirty (30) days after Administrative Agent’s request therefor.

     Section 8.4 Audits. Administrative Agent shall have the right to choose and appoint a
certified public accountant to perform financial audits as it deems necessary, at Borrower’s
expense. Borrower shall permit Administrative Agent to examine such records, books and papers of
Borrower which reflect upon its financial condition and the income and expense relative to the
Project.

ARTICLE 9

COVENANTS

     Borrower covenants and agrees with Administrative Agent and the Lenders as follows:

     Section 9.1 Due on Sale and Encumbrance; Transfers of Interests. Without the prior written
consent of Administrative Agent and the Lenders (to the extent required under Section
12.2),

          (1) Borrower shall not allow any Change of Control to occur;

          (2) neither Borrower nor any other Person having an ownership or beneficial interest in
Borrower shall (a) allow, directly or indirectly, any Transfer (other than a Permitted Transfer),
to occur; or (b) further encumber, alienate, grant a Lien or grant any other interest in the
Project or any part thereof (including any partnership, membership or other ownership interest in
Borrower), whether voluntarily or involuntarily; and

          (3) Borrower shall not assign any of its rights or obligations hereunder or under the Loan
Documents.

     As used in this Section 9.1, “Transfer” shall include the sale, transfer, conveyance,
mortgage, pledge, or assignment of the legal or beneficial ownership of (a) the Project (including,
following the establishment of a condominium regime with respect to the Project, any Unit), (b) any
partnership interest in any general partner in Borrower that is a partnership, (c) any membership
interest in any member in Borrower that is a limited liability company and (d) any voting stock in
any managing member in Borrower that is a corporation; “Transfer” shall not include (i) the leasing
of any space within the Project so long as Borrower complies with the
provisions of the Loan Documents relating to such leasing activity; or (ii) the transfers of
non-managing membership interests in Borrower so long as no Change of Control results therefrom.

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     Section 9.2 Maintenance of the Project; Alterations.

          (1) Upon the completion of construction of the Project, Borrower shall:

               (a) maintain or cause to be maintained the Improvements with the facilities and amenities as
described in the definition of “Improvements,” in good condition and repair, in a manner consistent
with a class “A” mixed-use commercial property located in Bronx, New York, and make or cause to be
made all reasonably necessary repairs or replacements thereto;

               (b) not remove, demolish or structurally alter, or permit or suffer the removal, demolition or
structural alteration of, any of the Improvements without the prior written consent of
Administrative Agent except to the extent required pursuant to the development of the Project and
in connection with the Construction Work or as permitted by this Agreement or required by
Applicable Law;

               (c) subject to the terms of the Loan Documents (and the Condominium Declaration, if
applicable), promptly restore or cause to be restored in like manner any portion of the
Improvements which may be damaged or destroyed from any cause whatsoever;

               (d) not commit, or permit, any waste of the Project; and

               (e) subject to the terms of the Loan Documents (and the Condominium Declaration, if
applicable), not remove or permit the removal of any item constituting part of the Project without
replacing it with a comparable item of equal quality, value and usefulness; except that the
foregoing provisions shall not prohibit the sale or disposition, in the ordinary course of
business, of any property which is obsolete or such replacement is impracticable and not within the
sound business judgment of Borrower, all as subject to the consent of Administrative Agent, which
consent shall not be unreasonably withheld, delayed or conditioned.

          (2) Upon the completion of construction of the Project, Borrower shall obtain Administrative
Agent’s prior written consent, which consent shall not be unreasonably withheld, conditioned or
delayed, to any alterations to the Improvements, other than alterations performed in connection
with the restoration of the Project after the occurrence of a casualty in accordance with the terms
and provisions of this Agreement (and the Condominium Declaration, if applicable).

     Section 9.3 Real Estate Taxes; Charges(1) . Borrower shall pay before any fine, penalty,
interest or cost may be added thereto, and shall not enter into any agreement to defer, any real
estate taxes and assessments, franchise taxes and charges, and other governmental charges that may
become a Lien upon the Project or become payable during the term of the Loans (collectively, the
“Real Estate Taxes”), and will promptly furnish Administrative Agent with evidence of such
payment;
however, Borrower’s compliance with Section 9.16 of this Agreement relating to
impounds for taxes and assessments shall, with respect to payment of such taxes and assessments, be
deemed compliance with this Section 9.3. Borrower shall not suffer or permit the joint
assessment of the Project with any other real property constituting a separate tax lot or with any
other real or personal property. Borrower shall pay when due all claims and

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demands of mechanics,
materialmen, laborers and others which, if unpaid, might result in a Lien on the Project; however,
Borrower may contest the validity of such claims and demands or taxes so long as (1) Lead Borrower
notifies Administrative Agent that Borrower intends to contest such claim or demand, (2) Borrower
provides Administrative Agent with an indemnity, bond or other security satisfactory to
Administrative Agent (including an endorsement to Administrative Agent’s title insurance policy
insuring against such claim or demand) assuring the discharge of Borrower’s obligations for such
claims and demands, including interest and penalties, (3) Borrower is diligently contesting the
same by appropriate legal proceedings in good faith and at its own expense and concludes such
contest prior to the tenth (10th) day preceding the earlier to occur of the Maturity Date or the
date on which the Project is scheduled to be sold, forfeited, terminated, cancelled or lost for non
payment, (4) such proceedings shall not subject Borrower, the Administrative Agent or any Lender to
criminal or civil liability (other than civil liability as to which adequate security has been
provided pursuant to clause (2) above), and (5) Borrower shall promptly upon final determination
thereof pay the amount of such items, together with all costs, interests and penalties.

          (2) Borrower shall pay all taxes, charges, filing, registration and recording fees, excises
and levies payable with respect to the Notes or the Liens created or secured by the Loan Documents,
other than income, franchise and doing business taxes imposed on Administrative Agent or any
Lender. If there shall be enacted any law (1) deducting the Loans from the value of the Project
for the purpose of taxation, (2) affecting any Lien on the Project, or (3) changing existing laws
of taxation of mortgages, deeds of trust, security deeds, or debts secured by real property, or
changing the manner of collecting any such taxes, Borrower shall promptly pay to Administrative
Agent, on demand, all taxes, costs and charges for which Administrative Agent or any Lender is or
may be liable as a result thereof; however, if such payment would be prohibited by law or would
render the Loans usurious, then instead of collecting such payment, Administrative Agent may (and
on the request of the Majority Lenders shall) declare all amounts owing under the Loan Documents to
be immediately due and payable.

     Section 9.4 Development; Management.

          (1) Borrower shall not terminate, replace or appoint any property manager or terminate or
amend the Property Management Agreement for the Project without Administrative Agent’s prior
written approval. Any change in majority ownership or control of the Property Manager shall be
cause for Administrative Agent to reasonably re-approve such Property Manager and Property
Management Agreement. Borrower shall replace the Property Manager as the request of the
Administrative Agent (i) upon the occurrence of an Event of Default, (ii) if the Property Manager
is in default of its obligations under the Property Management Agreement, or (iii) if the Property
Manager is insolvent or is the subject of an involuntary or voluntary case or other proceeding
seeking liquidation, reorganization or other relief with respect to itself or its Debts or other
liabilities under any bankruptcy, insolvency or other similar law.

          (2) If at any time Administrative Agent consents to the appointment of a new property manager,
such new property manager and Borrower shall, as a condition of Administrative Agent’s consent,
execute a Property Manager’s Consent and Subordination of Property Management Agreement in the form
then used by Administrative Agent. Each property manager shall hold and maintain all necessary
licenses, certifications and permits required by

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law. Borrower shall fully perform all of its
covenants, agreements and obligations under the Property Management Agreement.

          (3) Borrower shall cause the Project to be managed by a Qualified Manager engaged by Borrower
and approved by Administrative Agent in its reasonable discretion. Acadia-P/A Management Services,
LLC is hereby approved as the initial Property Manager, pursuant to the terms set forth in the
Property Management Agreement.

          (4) Subject to the terms of the Subordination of Property Management Agreement, the Property
Manager shall be entitled to receive a management fee of not more than four percent (4%) of total
operating revenues as defined in the applicable Property Management Agreement approved by the
Administrative Agent.

          (5) The Property Manager shall, prior to the Closing Date, deliver an executed Subordination
of Property Management Agreement.

          (6) Lead Borrower shall deliver to Administrative Agent, as and when executed, certified
copies of all maintenance, management, service, leasing and sales contracts entered into with
respect to the Project, each of which shall provide that Administrative Agent shall have the right,
upon foreclosure, to terminate such contract on thirty (30) days notice, or, if such right is not
provided in such contract, such contract shall be entered into with a party, and on terms and
conditions reasonably acceptable to Administrative Agent , and contemporaneously with entering into
each such contract, at Administrative Agent’s option, cause the service provider under each such
contract to deliver to Administrative Agent a Consent and Agreement, pursuant to which such service
provider shall undertake, inter alia, to continue performance on behalf of the Lenders following
any Event of Default without additional cost (other than sums owed pursuant to such contract for
services thereafter rendered to or for Administrative Agent).

          (7) Borrower will not enter into a development agreement with respect to the Project unless:
(a) Administrative Agent has approved the developer in writing; (b) the form and substance of the
development agreement is acceptable to Administrative Agent and (c) the development agreement has
been collaterally assigned to the Administrative Agent, in accordance with a form reasonably
acceptable to the Administrative Agent, and consented to by the developer.

     Section 9.5 Compliance with Laws; Inspection.

          (1) Borrower shall:

               (a) comply in all material respects (subject to such more stringent requirements as may be set
forth elsewhere herein) with all Applicable Laws;

               (b) obtain, comply with and maintain in full force and effect all Government Approvals and
shall from time to time obtain all Government Approvals as shall now or hereafter be necessary
under Applicable Law in connection with the ownership, construction, operation or maintenance of
the Project or the execution, delivery and performance by Borrower of any of the Project Documents
to which it is a party and shall comply with all such Government Approvals and keep them in full
force and effect;

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               (c) promptly furnish a true and complete copy of each such Government Approval to
Administrative Agent;

               (d) unless otherwise approved by the Administrative Agent, use its reasonable efforts to
contest any proceedings before any Governmental Authority and to resist any proposed adverse
changes in Applicable Law to the extent that such proceedings or changes are directed specifically
toward the Project or could reasonably be expected to have a Material Adverse Effect; and

               (e) permit Administrative Agent and the Lenders and their agents, representatives and
employees, upon reasonable prior notice to Borrower, to inspect the Project and conduct such
environmental and engineering studies and inspections of the Project as Administrative Agent may
require, provided such inspections and studies are conducted during normal business hours and do
not materially interfere with the use and operation of the Project.

          (2) After prior notice by Lead Borrower to Administrative Agent, Borrower, at its own expense,
may contest by appropriate legal proceedings promptly initiated and conducted in good faith and
with due diligence, the validity or application of any Applicable Law; provided that:

               (a) no Event of Default exists;

               (b) Borrower shall pay any outstanding fines, penalties or other payments under protest unless
such proceeding shall suspend the collection of such items;

               (c) such proceeding shall be permitted under and be conducted in accordance with the
provisions of any other instrument to which Borrower or the Project is subject and shall not
constitute a default thereunder;

               (d) no part of or interest in the Project will be in danger of being sold, forfeited,
terminated, canceled or lost during the pendency of the proceeding;

               (e) such proceeding shall not subject Borrower, Administrative Agent or any Lender to criminal
or civil liability (other than civil liability as to which adequate security has been provided
pursuant to clause (f) below);

               (f) unless paid under protest, Borrower shall have furnished such security as may be required
in the proceeding, or as may be reasonably requested by Administrative Agent, to insure the payment
of any such items, together with all interest and penalties thereon, which shall not be less than
110% of the maximum liability of Borrower as reasonably determined by Administrative Agent; and

               (g) Borrower shall promptly upon final determination thereof pay the amount of such items,
together with all costs, interest and penalties.

          (3) Administrative Agent will engage an inspecting architect at Borrower’s reasonable expense,
in accordance with Administrative Agent’s standard engagement procedures, to review plans,
specifications and budgets of the Project on a monthly basis,
inspect

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 the Project and provide
reports on such inspections to the Administrative Agent for the benefit of the Lenders.

     Section 9.6 Legal Existence; Name, Etc.

          (1) Borrower and each Managing Member in Borrower shall preserve and keep in full force and
effect their respective existence as a Single Purpose Entity, entity status, franchises, rights and
privileges under the laws of the state of its formation, and all qualifications, licenses and
permits applicable to the ownership, use and operation of the Project. Neither Borrower nor any
Managing Member of Borrower shall wind up, liquidate, dissolve, reorganize, merge, or consolidate
with or into, or convey, sell, assign, transfer, lease, or otherwise dispose of all or
substantially all of their respective assets, or acquire all or substantially all of the assets of
the business of any Person, or permit any subsidiary or Affiliate of Borrower to do so. Borrower
and each Managing Member in Borrower shall conduct business only in its own respective name and
shall not change its respective name, identity, or organizational structure, or the location of its
chief executive office or principal place of business unless Borrower or such Managing Member (a)
shall have obtained the prior written consent of Administrative Agent to such change, and (b) shall
have taken all actions necessary or requested by Administrative Agent to file or amend any
financing statement or continuation statement to assure perfection and continuation of perfection
of security interests under the Loan Documents.

          (2) Borrower shall at all times cause there to be at least one (1) duly appointed member of
the board of managers or other governing board or body of the managing member of the Managing
Member, who is an Independent Manager. Borrower shall not take any action or permit any action to
be taken which, under the terms of this Agreement, or the limited partnership agreement or limited
liability company operating agreement of Borrower, the Managing Member, or the managing member of
the Managing Member, requires the consent of such Independent Manager(s), unless such Independent
Manager(s) shall have consented in writing to such action.

          (3) Neither Borrower nor Borrower’s Managing Member shall cause or permit any modification to
be made in its organizational documents that would be inconsistent with the provisions of
Section 7.27 or this Section 9.6, that would interfere with its ability to comply
with its status as a Single Purpose Entity, as applicable, or that otherwise in any other respect
would violate this Agreement or could reasonably be expected to have a Material Adverse Effect.

     Section 9.7 Affiliate Transactions(1) Without the prior written consent of Administrative
Agent, Borrower shall not engage in any transaction affecting the Project with an Affiliate of
Borrower.

     Section 9.8 Limitation on Other Debt.

          (1) Borrower and Managing Member shall not, without the prior written consent of
Administrative Agent and the Majority Lenders, incur any Debt other than, in the case of Borrower,
the Debt permitted by the definition of Single Purpose Entity.

          (2) Borrower shall not make any loans, and no direct or indirect interest in Borrower may be
pledged as collateral for any financing or otherwise, except for the Approved

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Mezzanine Loan and as
otherwise may be permitted under this Agreement or expressly approved by Administrative Agent and
Majority Lenders in their discretion.

     Section 9.9 Further Assurances. Borrower shall promptly (1) cure any defects in the execution
and delivery of the Loan Documents, and (2) execute and deliver, or cause to be executed and
delivered, all such other documents, agreements and instruments as Administrative Agent may
reasonably request to further evidence and more fully describe the collateral for the Loans, to
correct any omissions in the Loan Documents, to perfect, protect or preserve any Liens created
under any of the Loan Documents, or to make any recordings, file any notices, or obtain any
consents, as may be necessary or appropriate in connection therewith.

     Section 9.10 Loan Certificates. Borrower or Administrative Agent, within ten (10) days after
request from the other party, shall furnish to the requesting party a written statement, duly
acknowledged, setting forth the amount due on the Loans, the terms of payment of the Loans, the
date to which interest has been paid, whether any offsets or defenses exist against the Loans and,
if any are alleged to exist, the nature thereof in detail, and such other matters as the requesting
party reasonably may request.

     Section 9.11 Notice of Certain Events. Lead Borrower shall promptly notify Administrative
Agent of (1) any Potential Default or Event of Default, together with a detailed statement of the
steps being taken to cure such Potential Default or Event of Default; (2) any notice of default
received by Borrower or any Borrower Party under other obligations relating to the Project or
otherwise material to Borrower’s business; and (3) any threatened or pending legal, judicial or
regulatory proceedings, including any dispute between Borrower and any governmental authority,
affecting Borrower or the Project.

     Section 9.12 Indemnification. Borrower shall indemnify, defend and hold Administrative Agent
and each Lender harmless from and against any and all losses, liabilities, claims, damages,
expenses, obligations, penalties, actions, judgments, suits, costs or disbursements of any kind or
nature whatsoever, including the reasonable fees and actual expenses of their counsel, which may be
imposed upon, asserted against or incurred by any of them relating to or arising out of (1) the
Project or (2) any of the Loan Documents or the transactions contemplated thereby, including,
without limitation,
(a) any accident, injury to or death of persons or loss of or damage to property occurring in,
on or about any of the Project or any part thereof or on the adjoining sidewalks, curbs, adjacent
property or adjacent parking areas, streets or ways, (b) any inspection, review or testing of or
with respect to the Project, (c) any investigative, administrative, mediation, arbitration, or
judicial proceeding, whether or not Administrative Agent or any Lender is designated a party
thereto, commenced or threatened at any time (including after the repayment of the Loans) in any
way related to the execution, delivery or performance of any Loan Document or to the Project, (d)
any proceeding instituted by any Person claiming a Lien, and (e) any brokerage commissions or
finder’s fees claimed by any broker or other party claiming to have dealt with the Borrower in
connection with the Loans, the Project, or any of the transactions contemplated in the Loan
Documents, including those arising from the joint, concurrent, or comparative negligence of
Administrative Agent or any Lender, except to the extent any of the foregoing is caused by
Administrative Agent’s or any Lender’s gross negligence or willful misconduct, in which case the
party to whom the gross negligence or willful misconduct is attributable (but not any other party)
shall not be entitled to

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the indemnification provided for hereunder to the extent of such gross
negligence or willful misconduct, to the extent determined by a court of competent jurisdiction.

     Section 9.13 Covenants Regarding the Condominium Declaration. Borrower covenants and agrees
that, from and after the establishment of any condominium regime with respect to the Project:

          (1) Borrower shall pay when due and before any fine, penalty, interest or cost may be added
thereto for the late payment or non-payment thereof, all Unit Annual Assessments imposed on
Borrower’s Project Interest and all other charges mentioned in and payable by Borrower under the
Condominium Declaration (including, without limitation, all insurance and taxes applicable to
Borrower’s Project Interest), and shall comply with all of its other obligations under the
Condominium Declaration, and shall do all things necessary to preserve and to keep unimpaired
Borrower’s rights, powers and privileges (whether as the owner of the Units, as the Declarant, as
the holder of any special class of voting rights, or otherwise) thereunder. If Borrower shall fail
to do so, the Lenders shall, if required by Administrative Agent, pay such Unit Annual Assessments
or other charges. Lead Borrower shall deliver to Administrative Agent, upon request, copies of
receipts or other proof satisfactory to Administrative Agent evidencing the timely payment of such
Unit Annual Assessments and other charges.

          (2) Borrower shall comply with the covenants, agreements and provisions of the Condominium
Documents, and Lead Borrower shall promptly notify Administrative Agent of (a) any failure by
Borrower to comply with the Condominium Declaration and (b) the receipt by Borrower of any notice
asserting or claiming a default by Borrower under the Condominium Declaration, and shall promptly
cause a copy of such notice to be delivered to Administrative Agent.

          (3) Borrower shall not vote in favor of or otherwise approve any amendment of the Condominium
Declaration without the prior written consent of Administrative Agent, which consent shall not be
unreasonably withheld.

          (4) Borrower shall not waive any material right of the Borrower (whether as the owner of the
Units, as the Declarant, as the holder of any special class of voting rights, or otherwise) under
the Condominium Declaration without the prior written consent of Administrative Agent which shall
not be unreasonably withheld.

          (5) The Lien of the Mortgages shall encumber all of Borrower’s Project Interest, including all
of Borrower’s rights to vote on or approve any matter with respect to Borrower’s Project Interest.
Without the prior written consent of Administrative Agent, Borrower shall not exercise such voting
or approval rights with respect to any of the following:

               (a) any partition of all or a part of the Project subject to the Condominium Declaration;

               (b) the nature and amount of any insurance covering all or a part of the Project and the
disposition of any proceeds thereof;

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               (c) the manner in which any condemnation or threat of condemnation of all or a part of the
Project shall be defended or settled and the disposition of any award or settlement in connection
therewith;

               (d) the construction of any additions or improvements to, or any repair, rebuilding or
restoration of all or a portion of any Improvements to, the Project (to the extent that the same
would require the approval of Administrative Agent under this Agreement);

               (e) the distribution of any insurance or condemnation proceeds (other than in compliance with
this Agreement); and

               (f) any other material action or decision provided for in the Condominium Declaration.

          (6) If required by the Administrative Agent, Lead Borrower will take all action to obtain as
promptly as possible, and forthwith upon receipt furnish to the Administrative Agent, a true and
correct copy of: (a) any statement showing the allocation of expenses and other assessments against
the Units and (b) any statements issued to Borrower calling for payment of expenses.

          (7) Lead Borrower shall be, and remain through the repayment of the Loans in full, the
Declarant under the Condominium Declaration.

          (8) Borrower shall at all times comply with the provisions of Section 17.2(5), hereof.

          (9) Borrower shall at all times comply with the covenants contained in Section 17.1(2).

          (10) Borrower acknowledges and agrees that nothing set forth in this Section or in any of the
other provisions of the Loan Documents shall impose upon Administrative Agent or any Lender any
obligation or responsibility to Borrower under the Condominium Declaration.

     Section 9.14 Collateral Letters of Credit. With respect to any Collateral Letter of Credit
that Borrower may furnish or cause to be furnished to Administrative Agent in accordance with the
terms of this Agreement or any of the other Loan Documents:

          (1) Administrative Agent will be entitled, among other things, to make one or more draws by
presentment thereof to the issuing bank accompanied only by Administrative Agent’s clean
sight-draft, it being intended that the issuing bank shall have no right to inquire as to
Administrative Agent’s right to draw upon such Collateral Letter of Credit;

          (2) Administrative Agent shall be entitled, among other things, to draw upon each Collateral
Letter of Credit, in whole, or in part from time to time, upon the occurrence and during the
continuance of any Event of Default or under the other circumstances under which a draw shall be
permitted under the Loan Documents or the Collateral Letter of Credit;

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          (3) Administrative Agent shall have the right to draw upon any Collateral Letter of Credit
within thirty (30) days prior to the expiration date of such Collateral Letter of Credit and each
renewal and extension thereof unless, prior to such expiration date of such Collateral Letter of
Credit and each renewal and extension thereof, the Borrower shall have furnished a replacement,
extension or renewal Collateral Letter of Credit, acceptable to Administrative Agent, it being the
intent hereof that at no time shall the unexpired term of any Collateral Letter of Credit be less
than thirty (30) days. If Administrative Agent draws upon a Collateral Letter of Credit pursuant
to the terms of this subsection (3), then Administrative Agent shall hold the proceeds thereof in a
Controlled Account as additional collateral for the Obligations, to be applied in accordance with
subsection (5) below;

          (4) Administrative Agent shall also be entitled to draw upon a Collateral Letter of Credit if
Administrative Agent believes that its rights to draw on such Collateral Letter of Credit could be
in jeopardy. Without limiting the foregoing, Administrative Agent shall also be entitled to draw
on a Collateral Letter of Credit if the credit rating or financial condition of the issuing bank is
no longer meets the minimum rating contained in the definition of Collateral Letter of Credit.
Following a draw by Administrative Agent on a Collateral Letter of Credit solely because of the
deterioration of the creditworthiness of the issuing bank, Administrative Agent will deposit such
proceeds in a Controlled Account as security for the purposes for which such Letter of Credit was
delivered and Administrative Agent shall be entitled to draw upon such proceeds to the same extent
it would have been entitled to make a draw under the applicable Letter of Credit. Administrative
Agent shall disburse such proceeds to Lead Borrower provided (i) Borrower delivers to
Administrative Agent a replacement Collateral Letter of Credit within ten (10) days of
Administrative Agent’s draw, (ii) there exists no Event of Default or Potential Default and (iii)
Borrower pays all of Administrative Agent’s fees and expenses in connection with such draw and
disbursement;

          (5) No draw by Administrative Agent on any Collateral Letter of Credit shall cure or be deemed
to cure any Event of Default or limit in any respect any of Administrative Agent’s or the Lenders’
remedies under the Loan Documents, it being understood that Administrative Agent’s and the Lenders’
rights and remedies hereunder shall be cumulative and
Administrative Agent and the Lenders shall have no obligations to apply the proceeds of any
draw to missed installments or other amounts then due and unpaid under the Loans. Proceeds of any
draw upon a Collateral Letter of Credit (after reimbursement of any costs and expenses, including
attorneys’ fees and reimbursements, incurred by Administrative Agent in connection with such draw),
other than a draw made in accordance with Section 9.14(4), may be applied by Administrative
Agent to the payment of the Obligations in such manner as Administrative Agent may determine. No
delay or omission of Administrative Agent or the Lenders in exercising any right to draw on a
Collateral Letter of Credit shall impair any such right, or shall be construed as a waiver of, or
acquiescence in, any Event of Default; and

          (6) Administrative Agent shall, upon request, release its rights in any Collateral Letters of
Credit and surrender such Collateral Letters of Credit to the issuing bank upon the payment in full
of all obligations under the Loan Documents.

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     Section 9.15 Hedge Agreements.

          (1) At Borrower’s option, the Borrower may enter into one or more Hedge Agreements. Each Hedge
Agreement shall, at Borrower’s option, be based on Interest Periods (each, an “Interest Rate
Hedge Period”) of one, two, three months or such other Interest Periods satisfactory to
Administrative Agent in its sole discretion. The economic and other benefits of the Hedge
Agreements and all of the other rights thereunder shall be collaterally assigned to Administrative
Agent as additional security for the Loans, pursuant to a Hedge Pledge. All Hedge Pledges shall be
accompanied by (i) Uniform Commercial Code financing statements, in duplicate, with respect to such
pledges and (ii) the consent and agreement of the counterparty thereunder that it will pay all
amounts due thereunder to an account designated by Administrative Agent and will continue to
perform its obligations under such Hedge Agreement for the benefit of Administrative Agent and the
Lenders after enforcement of and/or realization on such Hedge Pledge and an acknowledgement that
Administrative Agent shall not be deemed to have assumed any of the obligations or duties of
Borrower under any such Hedge Agreement.

          (2) All of Borrower’s obligations under any Hedge Agreement provided by a Eurohypo
Counterparty shall be secured by the lien of the Mortgages on a pari passu basis with the Loans and
other sums evidenced or secured by the Loan Documents.

          (3) Any Hedge Agreement entered into with one or more banks or insurance companies (each a
“Third-Party Counterparty”) other than a Eurohypo Counterparty (a “Third-Party Hedge
Agreement”) shall not be secured by the Mortgage or a Lien on any portion of the collateral
under the Security Documents or on or in any direct or indirect interest in Borrower.

          (4) Borrower shall cause all payments payable by a Third-Party Counterparty under the Hedge
Agreement to be deposited into an account designated by Administrative Agent. On the due date for
interest on the Loans each month, the amounts so deposited in such account shall be debited, and
applied to pay the accrued but unpaid interest on the Loans due on such date, before applying any
portion of the Loan proceeds which is allocated to the Interest Reserve for such purpose, and
before applying any Operating Revenues for such purpose.

          (5) Any payment due from the counterparty under any Hedge Agreement upon a termination
thereof, shall be delivered to Administrative Agent and applied by Administrative Agent to any
amounts due under the Loan Documents.

          (6) In connection with a Third-Party Hedge Agreement, Lead Borrower shall obtain and deliver
to Administrative Agent an opinion from counsel (which counsel may be in-house counsel for the
Third-Party Counterparty) for the Third-Party Counterparty (in form reasonably satisfactory to
Administrative Agent and upon which Administrative Agent, the Lenders and their respective
successors and assigns may rely) which shall provide, in relevant part, that:

               (a) the Third-Party Counterparty is duly organized, validly existing, and in good standing
under the laws of its jurisdiction of incorporation or organization and has

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the organizational
power and authority to execute and deliver, and to perform its obligations under, the Third-Party
Hedge Agreement;

               (b) the execution and delivery of the Third-Party Hedge Agreement by the Third-Party
Counterparty, and any other agreement which the Third-Party 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;

               (c) all consents, authorizations and approvals required for the execution and delivery by the
Third-Party Counterparty of the Third-Party Hedge Agreement, and any other agreement which the
Third-Party 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

               (d) the Third-Party Hedge Agreement, and any other agreement which the Third-Party
Counterparty has executed and delivered pursuant thereto, has been duly executed and delivered by
the Third-Party Counterparty and constitutes the legal, valid and binding obligation of the
Third-Party Counterparty, enforceable against the Third-Party 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).

          (7) For so long as a Hedge Agreement is in effect, Administrative Agent may elect to cause
advances of the Loan proceeds available for interest payments to be used to make “regular” payments
due under the Hedge Agreement (i.e., other than those payments which are due upon the termination
of such Hedge Agreement), in addition to interest payments on the Loans.

     
Section 9.16 Reserves. Administrative Agent may at any time after the occurrence of an Event of Default, at its
option (or at the direction of the Majority Lenders), to be exercised by written notice to Lead
Borrower, require the deposit by Borrower, on each Payment Date, of additional amounts sufficient
to discharge when due the obligations of Borrower under Section 9.3 and Section 3.1
(if applicable, and excluding all income, franchise, single business or other taxes imposed on
Borrower unless the same is in lieu of real estate taxes) when they become due. Simultaneously
with the initial deposit under this Section 9.16, Borrower shall deposit with
Administrative Agent an amount determined by Administrative Agent to be necessary to ensure that
there will be on deposit with Administrative Agent an amount which, when added to the monthly
payments subsequently required to be deposited with Administrative Agent hereunder on account of
Real Estate Taxes, insurance premiums, will result in there being on deposit with Administrative
Agent an amount sufficient to pay the next due periodic installment of Real Estate Taxes, insurance
premiums one (1) month prior to the delinquency date thereof
and the next periodic payments of
insurance premiums one (1) month prior to the due date thereof.

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Commencing on the first Business
Day of the first calendar month after the occurrence of an Event of Default and continuing
thereafter on the first Business Day of each month thereafter, Borrower shall pay to Administrative
Agent deposits in an amount equal to one-twelfth (1/12) of the yearly amount of Real Estate Taxes,
insurance premiums that will next become due and payable on the Project. The determination of the
amount to be deposited with Administrative Agent with each installment shall be made by
Administrative Agent in its reasonable discretion. Such amounts shall be held by Administrative
Agent in an account under the sole dominion and control of Administrative Agent and applied
(together with any interest earned thereon) to the payment of the obligations in respect to which
such amounts were deposited or, at the option of the Administrative Agent, to the payment of said
obligations in such order of priority as Administrative Agent shall determine, on or before the
respective dates on which the same or any of them would become delinquent. If one (1) month prior
to the due date of any of the aforementioned obligations the amounts then on deposit therefor shall
be insufficient for the payment of such obligations in full, Borrower, within five (5) days after
demand, shall deposit the amount of the deficiency with Administrative Agent. Nothing herein
contained shall be deemed to affect any right or remedy of Administrative Agent and/or the Lenders
under the provisions of this Agreement or the other Loans Documents or of any statute or rule of
law to pay any such amount and to add the amount so paid together with interest at the Default Rate
to the indebtedness secured by the Mortgages. Borrower hereby pledges to Administrative Agent (on
behalf of the Lenders) and grants to Administrative Agent (on behalf of the Lenders) a security
interest in any and all monies now or hereafter deposited in such reserves and the account
established by Administrative Agent as additional security for the payment of the Loans and agrees
to enter into an agreement with Administrative Agent and the bank where such account is established
in order to perfect Administrative Agent’s security interest therein. In making any payment from
such reserves, Administrative Agent may do so according to any bill, statement or estimate or
procured from the appropriate public office (with respect to Real Estate Taxes), 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 such charge.

     Section 9.17 Handicapped Access.

          (1) Borrower (a) agrees that it shall use commercially reasonable efforts to ensure that the
Project shall at all times comply with the applicable requirements of the
Americans with Disabilities Act of 1990, the Fair Housing Amendments Act of 1988, all state
and local laws and ordinances related to handicapped access and all rules, regulations, and orders
issued pursuant thereto including, without limitation, the Americans with Disabilities Act
Accessibility Guidelines for Buildings and Facilities (collectively, “Access Laws”) and (b)
has no actual knowledge as to the Project’s non-compliance with any Access Laws where the failure
to so comply could have a material adverse effect on the Project or on Borrower’s ability to repay
the Loans in accordance with the terms hereof.

          (2) Notwithstanding any provisions set forth herein or in any other document regarding
Administrative Agent’s approval of alterations of the Project, Borrower shall not alter the Project
in any manner which would materially increase Borrower’s responsibilities for compliance with the
applicable Access Laws without the prior written approval of Administrative Agent. The foregoing
shall apply to tenant improvements constructed by Borrower or by any of its tenants.
Administrative Agent may condition any such approval upon

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receipt of a certificate of Access Law
compliance from an architect, engineer, or other person reasonably acceptable to Administrative
Agent.

          (3) Lead Borrower agrees to give prompt notice to Administrative Agent of the receipt by
Borrower of any written complaints related to violation of any Access Laws with respect to the
Project and of the commencement of any proceedings or investigations which relate to compliance
with applicable Access Laws.

     Section 9.18 Zoning. Borrower shall not, without Administrative Agent’s prior consent, such
consent not to be unreasonably withheld, seek, make, suffer, consent to or acquiesce in any change
or variance in any zoning or land use laws or other conditions of use of the Project or any portion
thereof. Borrower shall not use or permit the use of any portion of the Project in any manner that
could result in such use becoming a non-conforming use under any zoning or land use law or any
other applicable law or modify any agreements relating to zoning or land use matters or with the
joinder or merger of lots for zoning, land use or other purposes, without the prior written consent
of Administrative Agent. Without limiting the foregoing, in no event shall Borrower take any
action that would reduce or impair either (a) the number of parking spaces at the Improvements or
(b) access to the Project from adjacent public roads. Further, without Administrative Agent’s
prior written consent, such consent not to be unreasonably withheld, Borrower shall not file or
subject any part of the Project to any declaration of condominium or co-operative or convert any
part of the Project to a condominium, co-operative or other direct or indirect form of multiple
ownership and governance.

     Section 9.19 ERISA. Borrower shall not hire any employees, and shall obtain all workforce
services required for the ownership, operation, construction or development of the Project by
contracting therefor pursuant to the Construction Management Agreement and the Project Documents.
Borrower shall not take any action, or omit to take any action, which would (a) cause Borrower’s
assets to constitute “plan assets” for purposes of ERISA or the Internal Revenue Code or (b) cause
the transactions contemplated by this Agreement and the other Loan Documents to be nonexempt
prohibited transactions (as such term is defined in Section 4975 of the Internal Revenue Code
or Section 406 of ERISA) that could subject Administrative Agent and/or the Lenders, on account of
any Loan or execution of the Loan Documents hereunder, to any tax or penalty on prohibited
transactions imposed under Section 4975 of the Internal Revenue Code or Section 502(i) of ERISA.

     Section 9.20 Books and Records. Borrower will, and will cause each of the other Borrower
Parties to, keep proper books of record and account in which full, true and correct entries are
made of all dealings and transactions in relation to its business and activities. Borrower will,
and will cause each of the other Borrower Parties to, permit any representatives designated by
Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its
properties, to examine and make extracts from its books and records, and to discuss its affairs,
finances and condition with its officers and independent accountants, all at such reasonable times
and as often as reasonably requested.

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     Section 9.21 Foreign Assets Control Regulations.

          (1) Neither Borrower nor any Borrower Party shall use the proceeds of the Loan in any manner
that will violate the Trading with the Enemy Act, as amended, or any of the foreign assets control
regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) ,
Executive Order No. 13,224,66 Fed. Reg. 49,079 (2001), issued by the President of the United States
of America (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit,
Threaten to Commit, or Support Terrorism), or any enabling legislation or executive order relating
to any of the same. Without limiting the foregoing, neither Borrower, nor any Borrower Party, nor
any partner or member (or other direct or indirect principal) in a Borrower Party will permit
itself nor any of its Subsidiaries to (a) become a blocked person described in Section 1 of the
above referenced Executive Order or (b) knowingly engage in any dealings or transactions or be
otherwise associated with any person who is known by such Borrower Party or who (after such inquiry
as may be required by Applicable Law) should be known by such Borrower Party to be a blocked
person.

          (2) Each partner or member (or other direct or indirect principal) in Borrower shall be at all
times during the term of the Loans an entity or person which is (and whose principals shall be) a
reputable entity or person of good character and in good standing as reasonably determined by the
Lenders, and is not adverse to any of the Lenders in any pending material litigation or arbitration
in which any Lender is also a party.

     Section 9.22 Performance of Project Documents and Easements.

          (1) Borrower shall (a) perform and observe in all material respects all of its covenants and
agreements contained in each of the Project Documents to which it is a party, (b) take all
reasonable and necessary action to prevent the termination of any such Project Document in
accordance with the terms thereof or otherwise, (c) enforce each material covenant or obligation of
each such Project Document in accordance with its terms, (d) cause Lead Borrower to promptly give
Administrative Agent copies of any material default or other material notices
given by or on behalf of Borrower received by or on behalf of Borrower from any other Person
under the Project Documents and (e) take all such action to achieve the purposes described in
clauses (a), (b) and (c) of this Section 9.22 as may from time to time be reasonably
requested by Administrative Agent; provided, however, that Borrower shall be
permitted, upon Administrative Agent’s reasonable approval, to contest the validity or
applicability of any requirement under the Project Documents.

          (2) Borrower will comply in all material respects with all restrictive covenants and easements
affecting the Project (unless the Title Company has insured against the enforcement of same in the
Title Policy). All covenants, easements, cross easements or operating agreements which may
hereafter be acquired, entered into or amended by Borrower affecting the Project shall be submitted
to Administrative Agent for reasonable approval prior to the execution thereof by Borrower,
accompanied by a drawing or survey showing the location thereof.

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     Section 9.23 Operating Plan and Budget.

          (1) Lead Borrower shall, no less than sixty (60) days after the satisfaction of the Project
Work Substantial Completion Conditions, and then annually thereafter not later than November 15th
of the previous calendar year, submit to Administrative Agent for Administrative Agent’s written
approval an annual operating and capital budget (each an “Annual Budget”), in form
reasonably satisfactory to Administrative Agent setting forth in detail budgeted monthly Operating
Revenues and monthly Operating Expenses and projected capital expenditures for the Project.
Administrative Agent shall have the right to reasonably approve such Annual Budget (such approval
to be in the Administration Agent’s sole discretion during an Event of Default and any period where
Administrative Agent is taking action to remove the Property Manager). If Administrative Agent
objects to the proposed Annual Budget, Administrative Agent shall advise Lead Borrower of such
objections within fifteen (15) days after receipt thereof (and deliver to Lead Borrower a
reasonably detailed description of such objections) and Lead Borrower shall within five (5) days
after receipt of notice of any such objections revise such Annual Budget and resubmit the same to
Administrative Agent such procedure to be repeated until such time as Administrative Agent shall
approve such Annual Budget. Each such Annual Budget approved by Administrative Agent in accordance
with terms hereof is referred to herein as an “Approved Annual Budget.” Until such time
that Administrative Agent has approved a proposed Annual Budget, the most recently Approved Annual
Budget shall apply, provided that such Approved Annual Budget shall be adjusted to reflect actual
increases in real estate taxes, insurance premiums and utilities expenses and shall otherwise be
adjusted to reflect any change during the preceding year in the Consumer Price Index.

          (2) Lead Borrower may at any time propose an amendment to an Approved Annual Budget for the
remainder of the then current calendar year, and, when approved as provided below, such amended
Approved Annual Budget shall be deemed to be and shall be effective as the Approved Annual Budget
for such calendar year. Prior to making any expenditures not reflected in the then current
Approved Annual Budget in excess of an aggregate amount of $150,000 per annum, Lead Borrower shall
propose an amendment to the Approved Annual Budget to Administrative Agent for its reasonable
approval; provided, however, that Administrative Agent shall have no approval
rights with respect to increases in non-discretionary
items (e.g. real estate taxes and insurance premiums). Copies of any such proposed amended
Approved Annual Budget shall be furnished at least fifteen (15) days before final adoption thereof
to Administrative Agent for its approval. Administrative Agent shall have fifteen (15) days after
receipt of any proposed amendment to the Approved Annual Budget to approve or disapprove such
proposed amendment.

     Section 9.24 Proceedings to Enjoin or Prevent Construction. If any proceedings are filed
seeking to enjoin or otherwise prevent or declare invalid or unlawful all or any part of the
Construction Work, Borrower, at its sole cost and expense, will cause such proceedings to be
contested in a commercially reasonable manner, and in the event of an adverse ruling or decision,
if commercially reasonable, prosecute all allowable appeals therefrom, and will, without limiting
the generality of the foregoing, resist the entry or seek the stay of any temporary or permanent
injunction that may be entered, and use its best efforts to bring about a favorable and speedy
disposition of all such proceedings.

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     Section 9.25 Industrial and Commercial Incentive Program

          (1) On or before the Closing Date, Borrower shall deliver to Administrative Agent the
preliminary application submitted to the New York City Department of Finance (“Department of
Finance”) evidencing the Project’s eligibility for the partial tax exemption in accordance with
paragraph 24 of Schedule 4-Part A.

          (2) Pursuant to Title 11, Chapter 2, Part 4 of the Administrative Code of the City of New York
City and the regulations promulgated thereunder, as amended from time to time (“Code”), Borrower
shall make a thorough and complete final application to the Department of Finance for a certificate
of eligibility for a partial exemption of real property taxes for the Improvements for a
twenty-five (25) year period (“ICIP Tax Exemption”) subsequent to commencing construction on the
Project. Borrower shall provide a copy of the said application to Administrative Agent evidencing
that same was received by the Department of Finance.

          (3) Pursuant to the Code, Borrower shall submit a thorough and complete final construction
report within sixty (60) days of completing construction on the Project to the Department of
Finance for a certificate of eligibility for the ICIP Tax Exemption. Borrower shall provide a copy
of the certificate of eligibility, or if unavailable, a letter from the Department of Finance
evidencing same, to Administrative Agent promptly upon Borrower’s receipt thereof and in any event
no later than sixty (60) days after the submission of such application, or such later date to the
extent that the Borrower’s failure to receive such certificate is due to Unavoidable Delay.

          (4) Before, during and after the construction of the Improvements, Borrower shall do all
things necessary and required by statute, rule and regulation to maintain the availability of the
ICIP Tax Exemption, including, but not limited to the following: (i) notify the ICIP unit of the
Department of Finance (“ICIP Unit”) and the New York City Department of Small Business
Services/Division of Labor Services (“Division of Labor Services”) in writing fifteen (15) business
days prior to commencing construction on the Project; (ii) submit construction employment reports
for the Project to the Division of Labor Services; and, if
requested by the Department of Finance, file a certificate of continuing use with the ICIP
Unit annually in each year of benefit period.

          (5) Notwithstanding anything to the contrary in this Agreement, Borrower’s failure to obtain a
certificate of eligibility for a ICIP Tax Exemption pursuant to clauses (2) and (3) above shall not
constitute a default provided that (a) Borrower has otherwise complied with the provisions of this
Section 9.25, (b) is diligently proceeding to obtain such certificate and (iii) the only
cause for Borrower’s inability to obtain the applicable certificate is the Department of Finance’s
bureaucratic delay in issuing the applicable certificate and not for reasons related to Borrower’s
actions or eligibility.

     Section 9.26 Reserved.

     Section 9.27 Reserved.

     
Section 9.28 Reimbursement of Expenses. Borrower shall pay or reimburse Administrative Agent
and/or the Lenders on demand of the applicable party for: (1) all

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reasonable expenses incurred by
Administrative Agent in connection with the Loans, including reasonable fees and expenses of
Administrative Agent’s attorneys, environmental, engineering and other consultants, and fees,
charges or taxes for the negotiation, recording or filing of Loan Documents, (2) all reasonable
out-of-pocket expenses of Administrative Agent in connection with the administration of the Loans,
including audit costs, inspection fees, reasonable attorneys’ fees and disbursement, settlement of
condemnation and casualty awards, and premiums for title insurance and endorsements thereto, (3)
all of Administrative Agent’s reasonable costs and expenses (including reasonable fees and
disbursements of Administrative Agent’s external counsel) incurred in connection with the
syndication of the Loans to the Lenders, not to exceed $25,000 (excluding attorney’s fees and
internal expenses incurred by the Borrower), and (4) Administrative Agent and the Lenders for all
amounts expended, advanced or incurred by Administrative Agent and the Lenders to collect the
Notes, or to enforce the rights of Administrative Agent and the Lenders under this Agreement or any
other Loan Document, or to defend or assert the rights and claims of Administrative Agent and the
Lenders under the Loan Documents or with respect to the Project (by litigation or other
proceedings), which amounts will include all court costs, attorneys’ fees and expenses, fees of
auditors and accountants, and investigation expenses as may be incurred by Administrative Agent and
the Lenders in connection with any such matters (whether or not litigation is instituted), together
with interest at the Default Rate on each such amount from the date of disbursement until the date
of reimbursement to Administrative Agent and the Lenders, all of which shall constitute part of the
Loans and shall be secured by the Loan Documents.

ARTICLE 10

EVENTS OF DEFAULT

     Each of the following shall constitute an Event of Default under the Loans:

     
Section 10.1 Payments. Borrower’s failure to (i) pay any regularly scheduled installment of principal, interest,
the Agency Fee or other amount due under the Loan Documents or (ii) make a deposit of cash, and/or
deliver a Collateral Letter of Credit required under the Loan Documents, within five (5) days of
(and including) the date when due, or Borrower’s failure to pay the Loans at the Maturity Date,
whether by acceleration or otherwise.

     Section 10.2 Insurance. Borrower’s failure to maintain insurance as required under
Section 3.1 of this Agreement.

     Section 10.3 Single Purpose Entity. If Borrower or any Borrower Party materially breaches its
covenant under Section 9.6 with respect to its status as a Single Purpose Entity.

     Section 10.4 Real Estate Taxes. If any of the Real Estate Taxes are not paid when the same
are due and payable and such failure continues for ten (10) Business days after Borrower has actual
knowledge of such failure.

     Section 10.5 Sale, Encumbrance, Etc. The sale, transfer, conveyance, pledge, mortgage or
assignment of any part or all of the Project, or any interest therein, or of any interest in
Borrower, in violation of Section 9.1 of this Agreement.

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     Section 10.6 Representations and Warranties. Any representation or warranty made in any Loan
Document proves to be untrue in any material respect when made or deemed made.

     Section 10.7 Other Encumbrances. Any material default under any document or instrument, other
than the Loan Documents, evidencing or creating a Lien on the Project or any part thereof that is
not cured within any applicable notice or cure period.

     Section 10.8 Various Covenants. Borrower defaults under any of its obligations under
Section 6.2 (pertaining to lease approvals), 9.7 (transactions with Affiliates),
9.8 (limitations on debt), 9.18 (zoning and use changes) or 9.19 (ERISA),
of this Agreement.

     Section 10.9 Reserved.

     
Section 10.10 Financial Covenants. Borrower defaults under any of its obligations under Section 9.12 and Section
9.28 of this Agreement.

     Section 10.11 Involuntary Bankruptcy or Other Proceeding. Commencement of an involuntary case
or other proceeding against any Borrower Party which seeks liquidation, reorganization or other
relief with respect to it or its debts or other liabilities under any bankruptcy, insolvency or
other similar law now or hereafter in effect or seeks the appointment of a trustee, receiver,
liquidator, custodian or other similar official of it or any of its property, and such involuntary
case or other proceeding shall remain undismissed or unstayed for a period of sixty (60) days; or
an order for relief against a Borrower Party shall be entered in any such case under the Federal
Bankruptcy Code.

     Section 10.12 Voluntary Petitions, Etc. Commencement by a Borrower Party of a voluntary case
or other proceeding seeking liquidation, reorganization or other relief with respect to itself or
its Debts or other liabilities under any bankruptcy, insolvency or other similar law or seeking the
appointment of a trustee, receiver, liquidator, custodian or other similar official for it or any
of its property, or consent by a Borrower Party to any such relief or to the appointment of or
taking possession by any such official in an involuntary case or other proceeding commenced against
it, or the making by a Borrower Party of a general assignment for the benefit of creditors, or the
failure by a Borrower Party, or the admission by a Borrower Party in writing of its inability, to
pay its debts generally as they become due, or any action by a Borrower Party to authorize or
effect any of the foregoing.

     Section 10.13 Debt. The occurrence, at any time prior to Substantial Completion, of any
“Event of Default” under (and as such term is defined in) the loan agreement included within the
Approved Mezzanine Loan Documents; or Borrower or Managing Member shall default in the payment when
due of any principal of or interest on any of its other Debt aggregating $1,000,000 or more and
such default shall not be cured within any applicable notice or cure period provided with respect
to such Debt; or any event specified in any note, agreement, indenture or other document evidencing
or relating to any such Debt shall occur if the effect of such event is to cause, or (with the
giving of any notice or the lapse of time or both) to permit the holder or holders of such Debt to
cause, such Debt to become due, or to be prepaid in full (whether by redemption, purchase, offer to
purchase or otherwise); prior to its stated maturity.

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     Section 10.14 Dissolution. Any of Borrower Parties shall be terminated, dissolved or
liquidated (as a matter of law or otherwise) or proceedings shall be commenced by any Person
(including any Borrower Party) seeking the termination, dissolution or liquidation of any Borrower
Party, which, in the case of actions by Persons other than a Borrower Party or any of their
Affiliates, shall continue unstayed and in effect for a period of sixty (60) or more days.

     
Section 10.15 Judgments. One or more (i) judgments for the payment of money (exclusive of judgment amounts fully
covered by insurance where the insurer has admitted liability in respect of such judgment)
aggregating with respect to any Borrower Party (other than Guarantor) in excess of $1,000,000 shall
be rendered against such party or (ii) non-monetary judgments, orders or decrees shall be entered
against any of the Borrower Parties which have or would reasonably be expected to have a Material
Adverse Effect, and, in either case, the same shall remain undischarged for a period of thirty (30)
consecutive days during which execution shall not be effectively stayed, or any action shall be
legally taken by a judgment creditor to attach or levy upon any assets of such Borrower Party to
enforce any such judgment.

     Section 10.16 Security. The Liens created by the Security Documents shall at any time not
constitute a valid and perfected first priority Lien (subject to the Permitted Encumbrances) on the
collateral intended to be covered thereby in favor of Administrative Agent, free and clear of all
other Liens (other than the Permitted Encumbrances), or, except for expiration in accordance with
its terms, any of the Security Documents shall for whatever reason be terminated or cease to be in
full force and effect, or the enforceability thereof shall be contested by any Borrower Party or
any of their Affiliates, provided that, as long as the security provided by the Security Documents
shall not be impaired, with respect to a Lien (other than a Permitted Encumbrance) on the
collateral, Borrower shall have ten (10) days for monetary Liens and thirty (30) days for all
non-monetary Liens within which provide Administrative Agent with evidence that such Lien has been
bonded or otherwise removed of record.

     Section 10.17 Guarantor Documents. Guarantor shall (i) default under any Guarantor Document
beyond any applicable notice and grace period; or (ii) revoke or attempt to revoke, contest or
commence any action against its obligations under any Guarantor Document.

     Section 10.18 Reserves. Borrower uses, or permits the use of, funds from any reserves or from
any Controlled Account required under this Agreement for any purpose other than the purpose for
which such funds were disbursed from such reserves or such Controlled Account and such default is
not cured within ten (10) days of Borrower’s knowledge of such default.

     
Section 10.19 Co-Borrower Documents. Either Borrower shall (i) default under any Co-Borrower
Document beyond any applicable notice and grace period; or (ii) revoke or attempt to revoke,
contest or commence any action against its obligations under any Co-Borrower Document.

     
Section 10.20 Covenants. Borrower’s failure to perform or observe any of the agreements and covenants contained
in this Agreement or in any of the other Loan Documents and not specified above, and, if such
failure is susceptible to being cured, the continuance of such failure for thirty (30) days
after notice by Administrative Agent to Lead Borrower; provided, however,
subject to any shorter period for curing any failure by Borrower as specified in any of the other
Loan Documents, Borrower shall have an additional ninety (90) days to cure such failure if (1) such
failure does not involve the failure to make payments on a monetary obligation; (2) such failure

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cannot reasonably be cured within thirty (30) days; (3) Borrower is diligently undertaking to cure
such default, and (4) Borrower has provided Administrative Agent with security reasonably
satisfactory to Administrative Agent against any reasonably anticipated interruption of payment or
impairment of collateral as a result of such continuing failure.

     Section 10.21 Deficiency Deposits. Borrower shall fail to make a Deficiency Deposit or Equity
Balancing Contribution within the time and in the manner provided in Section 4.3.

     Section 10.22 Reserved.

     Section 10.23 Reserved.

     Section 10.24 Building Loan Agreement Default. An Event of Default shall occur under the
Building Loan Agreement.

ARTICLE 11

REMEDIES

     Section 11.1 Remedies — Insolvency Events. Upon the occurrence of any Event of Default
described in Section 10.11 or Section 10.12, the obligations of the Lenders to
advance amounts hereunder shall immediately terminate, and all amounts due under the Loan Documents
immediately shall become due and payable, all without written notice and without presentment,
demand, protest, notice of protest or dishonor, notice of intent to accelerate the maturity
thereof, notice of acceleration of the maturity thereof, or any other notice of default of any
kind, all of which are hereby expressly waived by Borrower; provided, however, if
Borrower Party under Section 10.11 or Section 10.12 is other than Borrower, then
all amounts due under the Loan Documents shall become immediately due and payable at Administrative
Agent’s election.

     Section 11.2 Remedies — Other Events. Except as set forth in Section 11.1 above,
while any Event of Default exists, Administrative Agent may (1) by written notice to Lead Borrower,
declare the entire amount of the Loans to be immediately due and payable without presentment,
demand, protest, notice of protest or dishonor, notice of intent to accelerate the maturity
thereof, notice of acceleration of the maturity thereof, or other notice of default of any kind,
all of which are hereby expressly waived by Borrower, (2) terminate the obligation, if any, of the
Lenders to advance amounts
hereunder, and (3) exercise all rights and remedies therefor under the Loan Documents and at
law or in equity.

     Section 11.3 Administrative Agent’s Right to Perform the Obligations. Without limiting the
provisions of Section 11.4 below, if Borrower shall fail, refuse or neglect to make any
payment or perform any act required by the Loan Documents, then while any Event of Default exists,
and without notice to or demand upon Borrower and without waiving or releasing any other right,
remedy or recourse Administrative Agent or any Lender may have because of such Event of Default,
Administrative Agent may (but shall not be obligated to) make such payment or perform such act for
the account of and at the expense of Borrower, and shall have the right to enter upon the Project
for such purpose and to take all such action thereon and with respect to the Project and the other
collateral for the Loans as it may deem necessary or appropriate. If Administrative Agent shall
elect to pay any sum due with reference to the

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Project, Administrative Agent may do so in reliance
on any bill, statement or assessment procured from the appropriate Governmental Authority or other
issuer thereof without inquiring into the accuracy or validity thereof. Similarly, in making any
payments to protect the security intended to be created by the Loan Documents, Administrative Agent
shall not be bound to inquire into the validity of any apparent or threatened adverse title, Lien,
encumbrance, claim or charge before making an advance for the purpose of preventing or removing the
same. Additionally, if any Hazardous Materials affect or threaten to affect the Project,
Administrative Agent may (but shall not be obligated to) give such notices and take such actions as
it deems necessary or advisable in order to abate the discharge of any Hazardous Materials or
remove the Hazardous Materials. Borrower shall indemnify, defend and hold Administrative Agent and
the Lenders harmless from and against any and all losses, liabilities, claims, damages, expenses,
obligations, penalties, actions, judgments, suits, costs or disbursements of any kind or nature
whatsoever, including reasonable attorneys’ fees and disbursements, incurred or accruing by reason
of any acts performed by Administrative Agent or any Lender pursuant to the provisions of this
Section 11.3, including those arising from the joint, concurrent, or comparative negligence
of Administrative Agent and any Lender, except as a result of Administrative Agent’s or any
Lender’s gross negligence or willful misconduct. All sums paid by Administrative Agent pursuant to
this Section 11.3, and all other sums expended by Administrative Agent or any Lender to
which it shall be entitled to be indemnified, together with interest thereon at the Default Rate
from the date of such payment or expenditure until paid, shall constitute additions to the Loans,
shall be secured by the Loan Documents and shall be paid by Borrower to Administrative Agent upon
demand.

     Section 11.4 Administrative Agent’s Right to Complete Construction. Administrative Agent may
take possession of the Project and complete the construction and equipping of the Improvements and
do anything in its sole judgment to fulfill the obligations of Borrower hereunder, including either
the right to avail itself of and procure performance of existing contracts or enter into any
contracts with the same contractors or others and to employ watchmen to protect the Project from
injury. Without restricting the generality of the foregoing and for the purposes aforesaid,
Borrower hereby appoints and constitutes Administrative Agent its lawful attorney-in-fact with full
power of substitution in the Project to complete construction of the Improvements in the name of
Borrower; to use unadvanced funds remaining under the
Commitments or which may be reserved, or escrowed or set aside for any purposes hereunder at
any time, or to advance funds in excess of the face amount of the Notes (and all such amounts shall
be payable by Borrower together with interest at the Default Rate), to complete the Improvements;
to make changes in the Plans and Specifications which shall be necessary or desirable to complete
the Improvements in substantially the manner contemplated by the Plans and Specifications; to
retain or employ new construction managers, subcontractors, architects, engineers and inspectors as
shall be required for said purposes; to pay, settle, or compromise all existing bills and claims
and Liens against the Project and take any other steps relating to clearing title to the Project
from any Liens that are not Permitted Encumbrances, or to avoid such bills and claims becoming
Liens against the Project or security interest against fixtures or equipment, or as may be
necessary or desirable for the completion of the construction and equipping of the Improvements or
for the clearance of title; to execute all applications and certificates in the name of Borrower
which may be required by any of the contract documents; to do any and every act which Borrower
might do in its own behalf; and to prosecute and defend all actions or proceedings in connection
with the Project or fixtures or equipment; to take action and

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require such performance as it deems
necessary under any bonds furnished in connection with the construction of the Improvements and to
make settlements and compromises with surety or sureties thereunder, and in connection therewith,
to execute instruments of release and satisfaction; it being understood and agreed that this power
of attorney shall be a power coupled with an interest and cannot be revoked.

     Section 11.5 Administrative Agent’s Rights under the Guaranty of Completion. Exercise the
Lenders’ rights under the Guaranty of Completion to require Guarantor to perform thereunder, in
which case Borrower hereby (1) authorizes Administrative Agent and the Lenders to make advances of
the Loans directly to Guarantor in accordance with the terms of the Guaranty of Completion and this
Agreement and (2) agrees that Borrower shall be liable to the Lenders for all such advances to
Guarantor and such advances shall be deemed Loans under this Agreement and be evidenced by the
Notes and secured by the Mortgages and the other Security Documents.

     Section 11.6 NO OBLIGATION WITH RESPECT TO COMPLETION OF THE IMPROVEMENTS. WHETHER OR NOT
ADMINISTRATIVE AGENT OR THE LENDERS ELECT TO EMPLOY ANY OR ALL OF THE REMEDIES AVAILABLE UPON THE
OCCURRENCE OF AN EVENT OF DEFAULT, NEITHER ADMINISTRATIVE AGENT NOR ANY OF THE LENDERS SHALL BE
LIABLE FOR THE CONSTRUCTION OF OR FAILURE TO CONSTRUCT, COMPLETE OR PROTECT THE IMPROVEMENTS OR FOR
PAYMENT OF ANY EXPENSES INCURRED IN CONNECTION WITH THE EXERCISE OF ANY REMEDY AVAILABLE TO
ADMINISTRATIVE AGENT OR THE LENDERS OR FOR THE PERFORMANCE OR NON-PERFORMANCE OF ANY OTHER
OBLIGATION OF BORROWER.

ARTICLE 12

MISCELLANEOUS

     Section 12.1 Notices. Any notice required or permitted to be given under this Agreement shall
be in writing and either shall be (a) mailed by certified mail, postage prepaid, return receipt
requested, (b) sent by overnight air courier service, (c) personally delivered to a representative
of the receiving party, or (d) sent by telecopy (provided an identical notice is also sent
simultaneously by mail, overnight courier, or personal delivery as otherwise provided in this
Section 12.1) to the intended recipient at the “Address for Notices” specified below its
name on the signature pages hereof. Any communication so addressed and mailed shall be deemed to
be given on the earliest of (1) when actually delivered, (2) on the first Business Day after
deposit with an overnight air courier service, or (3) on the third Business Day after deposit in
the United States mail, postage prepaid, in each case to the address of the intended addressee, and
any communication so delivered in person shall be deemed to be given when receipted for by, or
actually received by Administrative Agent, a Lender, Lead Borrower or Borrower, as the case may be.
If given by telecopy, a notice shall be deemed given and received when the telecopy is transmitted
to the party’s telecopy number specified above, and confirmation of complete receipt is received by
the transmitting party during normal business hours or on the next Business Day if not confirmed
during normal business hours, and an identical notice is also sent simultaneously by mail,
overnight courier, or personal delivery as otherwise provided in this Section 12.1. Any

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party may designate a change of address by written notice to each other party by giving at least
ten (10) days’ prior written notice of such change of address.

     Section 12.2 Amendments, Waivers, Etc.. This Agreement and any other Loan Document may be
modified only by an instrument in writing signed by Borrower and Administrative Agent, subject to
Section 14.9.

     Section 12.3 Compliance with Usury Laws. It is the intention of the parties hereto to conform
strictly to applicable usury laws. Accordingly, all agreements between Borrower, Administrative
Agent and the Lenders with respect to the Loans are hereby expressly limited so that in no event,
whether by reason of acceleration of maturity or otherwise, shall the amount paid or agreed to be
paid to Administrative Agent or any Lender or charged by any Lender for the use, forbearance or
detention of the money to be lent hereunder or otherwise, exceed the maximum amount allowed by law.
If the Loans would be usurious under Applicable Law (including the laws of the State and the laws
of the United States of America), then, notwithstanding anything to the contrary in the Loan
Documents: (1) the aggregate of all consideration which constitutes interest under Applicable Law
that is contracted for, taken, reserved, charged or received under the Loan Documents shall under
no circumstances exceed the maximum amount of interest allowed by Applicable Law, and any excess
shall be credited on the Notes by the holders thereof (or, if the Notes have been paid in full,
refunded to Borrower); and (2) if maturity is accelerated by reason of an election by
Administrative Agent in accordance with the terms hereof, or in the event of
any prepayment, then any consideration which constitutes interest may never include more than
the maximum amount allowed by Applicable Law. In such case, excess interest, if any, provided for
in the Loan Documents or otherwise, to the extent permitted by Applicable Law, shall be amortized,
prorated, allocated and spread from the date of advance until payment in full so that the actual
rate of interest is uniform through the term hereof. If such amortization, proration, allocation
and spreading is not permitted under Applicable Law, then such excess interest shall be cancelled
automatically as of the date of such acceleration or prepayment and, if theretofore paid, shall be
credited on the Notes (or, if the Notes have been paid in full, refunded to Borrower). The terms
and provisions of this Section 12.3 shall control and supersede every other provision of
the Loan Documents. Except as otherwise expressly provided therein, the Loan Documents are
contracts made under and shall be construed in accordance with and governed by the laws of the
State of New York, except that if at any time the laws of the United States of America permit the
Lenders to contract for, take, reserve, charge or receive a higher rate of interest than is allowed
by the laws of the State of New York (whether such federal laws directly so provide or refer to the
law of any state), then such federal laws shall to such extent govern as to the rate of interest
which the Lenders may contract for, take, reserve, charge or receive under the Loan Documents.

     Section 12.4 Invalid Provisions. If any provision of any Loan Document is held to be illegal,
invalid or unenforceable, such provision shall be fully severable; the Loan Documents shall be
construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a
part thereof; the remaining provisions thereof shall remain in full effect and shall not be
affected by the illegal, invalid, or unenforceable provision or by its severance therefrom; and in
lieu of such illegal, invalid or unenforceable provision there shall be added automatically as a
part of such Loan Document a provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible to be legal, valid and enforceable.

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     Section 12.5 Approvals; Third Parties; Conditions. All approval rights retained or exercised
by Administrative Agent and the Lenders with respect to leases, contracts, plans, studies and other
matters are solely to facilitate the Lenders’ credit underwriting, and shall not be deemed or
construed as a determination that the Lenders have passed on the adequacy thereof for any other
purpose and may not be relied upon by Borrower or any other Person. This Agreement is for the sole
and exclusive use of Administrative Agent, the Lenders, the Lead Borrower and Borrower and may not
be enforced, nor relied upon, by any Person other than Administrative Agent, the Lenders, the Lead
Borrower and Borrower. All conditions of the obligations of Administrative Agent and the Lenders
hereunder, including the obligation to make advances, are imposed solely and exclusively for the
benefit of Administrative Agent and the Lenders, their successors and assigns, and no other Person
shall have standing to require satisfaction of such conditions or be entitled to assume that the
Lenders will refuse to make advances in the absence of strict compliance with any or all of such
conditions, and no other Person shall, under any circumstances, be deemed to be a beneficiary of
such conditions, any and all of which may be freely waived in whole or in part by Administrative
Agent and the Lenders at any time in their sole discretion.

     Section 12.6 Lenders and Administrative Agent Not in Control; No Partnership. None of the
covenants or other provisions contained in this Agreement shall, or shall be deemed to, give
Administrative Agent or any Lender the right or power to exercise control over the affairs or
management of Borrower, the powers of Administrative Agent and the Lenders being limited to the
rights to exercise the remedies referred to in the Loan Documents. The relationship between
Borrower and the Lenders is, and at all times shall remain, solely that of debtor and creditor. No
covenant or provision of the Loan Documents is intended, nor shall it be deemed or construed, to
create a partnership, joint venture, agency or common interest in profits or income between
Administrative Agent, the Lenders, Lead Borrower and Borrower. Administrative Agent and the
Lenders neither undertake nor assume any responsibility or duty to Borrower or to any other person
with respect to the Loans, the Project or the other collateral for the Loans, except as expressly
provided in the Loan Documents. Notwithstanding any other provision of the Loan Documents: (1)
neither Administrative Agent nor any Lender is, nor shall be construed as, a partner, joint
venturer, alter ego, manager, controlling person or other business associate or participant of any
kind of Borrower or any Borrower Party or any of their respective stockholders, members, or
partners, and neither Administrative Agent nor any Lender intends to ever assume such status; (2)
no Lender or Administrative Agent shall in any event be liable for any Debts, expenses or losses
incurred or sustained by Borrower or any Borrower Party; and (3) no Lender or Administrative Agent
shall be deemed responsible for or a participant in any acts, omissions or decisions of Borrower or
any Borrower Party or any of their respective stockholders, members, or partners. Administrative
Agent, the Lenders and Borrower disclaim any intention to create any partnership, joint venture,
agency or common interest in profits or income between Administrative Agent, the Lenders and
Borrower, or to create an equity in the Project or any other collateral for the Loan in
Administrative Agent or any Lender, or any sharing of liabilities, losses, costs or expenses.

     Section 12.7 Time of the Essence. Time is of the essence with respect to this Agreement.

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     Section 12.8 Successors and Assigns. Subject to the provisions of Section 12.23, this
Agreement shall be binding upon and inure to the benefit of Administrative Agent, the Lenders and
Borrower and the respective successors and permitted assigns.

     Section 12.9 Renewal, Extension or Rearrangement. All provisions of the Loan Documents shall
apply with equal effect to each and all promissory notes and amendments thereof hereinafter
executed which in whole or in part represent a renewal, extension, increase or rearrangement of the
Loans.

     Section 12.10 Waivers. No course of dealing on the part of Administrative Agent or any
Lender, their officers, employees, consultants or agents, nor any failure or delay by
Administrative Agent or any
Lender with respect to exercising any right, power or privilege of Administrative Agent or any
Lender under any of the Loan Documents, shall operate as a waiver thereof.

     Section 12.11 Cumulative Rights. Rights and remedies of Administrative Agent and the Lenders
under the Loan Documents shall be cumulative, and the exercise or partial exercise of any such
right or remedy shall not preclude the exercise of any other right or remedy.

     Section 12.12 Singular and Plural. Words used in this Agreement and the other Loan Documents
in the singular, where the context so permits, shall be deemed to include the plural and vice
versa. The definitions of words in the singular in this Agreement and the other Loan Documents
shall apply to such words when used in the plural where the context so permits and vice versa.

     Section 12.13 Phrases. When used in this Agreement and the other Loan Documents, the phrase
“including” shall mean “including, but not limited to,” the phrases “satisfactory to any Lender” or
“satisfactory to Administrative Agent” shall mean in form and substance satisfactory to such Lender
or Administrative Agent, as the case may be, in all respects, the phrases “with Lender’s consent,”
“with Lender’s approval,” “with Administrative Agent’s consent” or “with Administrative Agent’s
approval” shall mean such consent or approval at Lender’s or Administrative Agent’s, as the case
may be, discretion, and the phrases “acceptable to Lender” or “acceptable to Administrative Agent”
shall mean acceptable to Lender or Administrative Agent, as the case may be, at such party’s sole
discretion.”

     Section 12.14 Exhibits and Schedules. The exhibits and schedules attached to this Agreement
are incorporated herein and shall be considered a part of this Agreement for the purposes stated
herein.

     Section 12.15 Titles of Articles, Sections and Subsections. All titles or headings to
articles, sections, subsections or other divisions of this Agreement and the other Loan Documents
or the exhibits hereto and thereto are only for the convenience of the parties and shall not be
construed to have any effect or meaning with respect to the other content of such articles,
sections, subsections or other divisions, such other content being controlling as to the agreement
between the parties hereto.

     Section 12.16 Promotional Material. Borrower authorizes Administrative Agent and each of the
Lenders to issue press releases, advertisements and other promotional materials in

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connection with
Administrative Agent’s or such Lender’s own promotional and marketing activities, and describing
the Loans in general terms or in detail and Administrative Agent’s or such Lender’s participation
in the Loans. All references to Administrative Agent or any Lender contained in any press release,
advertisement or promotional material issued by Borrower shall be approved in writing by
Administrative Agent and such Lender in advance of issuance.

     Section 12.17 Survival. All of the representations, warranties, covenants, and indemnities of
Borrower hereunder (including environmental matters under Article 5, the obligations under
Sections 2.7(1), 2.7(5) 2.7(6)), and under the indemnification
provisions of the other Loan Documents shall survive (a) the repayment in full of the Loans and the
release of the Liens evidencing or securing the Loans, (b) the transfer (by sale, foreclosure,
conveyance in lieu of foreclosure or otherwise) of any or all right, title and interest in and to
the Project to any party, whether or not an Affiliate of Borrower and (c) in the case of any Lender
that may assign any interest in its Commitment or Loans hereunder in accordance with the terms of
this Agreement, the making of such assignment, notwithstanding that such assigning Lender may cease
to be a “Lender” hereunder.

     Section 12.18 WAIVER OF JURY TRIAL. BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN)
OR ACTION OF EITHER PARTY OR ANY EXERCISE BY ANY PARTY OF THEIR RESPECTIVE RIGHTS UNDER THE LOAN
DOCUMENTS OR IN ANY WAY RELATING TO THE LOANS OR THE PROJECT (INCLUDING, WITHOUT LIMITATION, ANY
ACTION TO RESCIND OR CANCEL THIS AGREEMENT, AND ANY CLAIM OR DEFENSE ASSERTING THAT THIS AGREEMENT
WAS FRAUDULENTLY INDUCED OR IS OTHERWISE VOID OR VOIDABLE). THIS WAIVER IS A MATERIAL INDUCEMENT
FOR ADMINISTRATIVE AGENT AND EACH LENDER TO ENTER THIS AGREEMENT.

     Section 12.19 Remedies of Borrower. It is expressly understood and agreed that,
notwithstanding any Applicable Law or any provision of this Agreement or the other Loan Documents
to the contrary, the liability of Administrative Agent and each Lender (including their respective
successors and assigns) and any recourse of Borrower against Administrative Agent and each Lender
shall be limited solely and exclusively to their respective interests in the Loans and/or
Commitments or the Project. Without limiting the foregoing, in the event that a claim or
adjudication is made that Administrative Agent, any of the Lenders, or their agents, acted
unreasonably or unreasonably delayed acting in any case where by Applicable Law or under this
Agreement or the other Loan Documents, Administrative Agent, any Lender or any such agent, as the
case may be, has an obligation to act reasonably or promptly, or otherwise violated this Agreement
or the Loan Documents, Borrower agrees that none of Administrative Agent, the Lenders or their
agents shall be liable for any incidental, indirect, special, punitive, consequential or
speculative damages or
losses resulting from such failure to act reasonably or promptly in accordance with this
Agreement or the other Loan Documents.

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     Section 12.20 Governing Law. This Agreement, the notes and the other Loan Documents shall be
governed by, and construed in accordance with the law of the State of New York, except to the
extent otherwise specified in any of the Loan Documents.

     THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE BY ADMINISTRATIVE AGENT AND
LENDERS AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE NOTES DELIVERED
PURSUANT HERETO SHALL BE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A
SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN
ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS
MADE AND PERFORMED IN SUCH STATE AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT
THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND
SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE
GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE PROJECT IS LOCATED, IT
BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE
STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS
AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY
LAW, EACH OF BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER HEREBY UNCONDITIONALLY AND IRREVOCABLY
WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT AND THE
NOTES, AND THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

     ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST ADMINISTRATIVE AGENT, ANY LENDER OR BORROWER
ARISING OUT OF OR RELATING TO THE LOAN DOCUMENTS MAY AT ADMINISTRATIVE AGENT’S OPTION (WHICH
DECISION SHALL BE MADE BY THE MAJORITY LENDERS) BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE
CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW, AND BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON
VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY
IRREVOCABLY SUBMITS TO
THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. BORROWER DOES HEREBY
DESIGNATE AND APPOINT NATIONAL REGISTERED AGENTS, INC., 875 AVENUE OF THE AMERICAS, SUITE 501, NEW
YORK, NY 10001 AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND
ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT,

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ACTION OR PROCEEDING IN ANY FEDERAL OR STATE
COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND
WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL
BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER, IN ANY SUCH SUIT, ACTION OR
PROCEEDING IN THE STATE OF NEW YORK. BORROWER (A) SHALL GIVE PROMPT NOTICE TO ADMINISTRATIVE AGENT
OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (B) MAY AT ANY TIME AND FROM TIME TO TIME
DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE
AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (C)
SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW
YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.]

     Section 12.21 Entire Agreement. This Agreement and the other Loan Documents embody the entire
agreement and understanding between Administrative Agent, the Lenders and Borrower and supersede
all prior agreements and understandings between such parties relating to the subject matter hereof
and thereof. Accordingly, the Loan Documents may not be contradicted by evidence of prior,
contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral
agreements between the parties. If any conflict or inconsistency exists between any term sheet,
application or commitment letter and this Agreement or any of the other Loan Documents, the terms
of this Agreement shall control.

     Section 12.22 Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall constitute an original, but all of which shall constitute one document.

     Section 12.23 Assignments and Participations.

          (1) Assignments by the Lenders. Each Lender may assign any of its Loans, its Note and its
Commitment (but only with the consent of Administrative Agent); provided that:

               (a) no such consent by Administrative Agent shall be required in the case of any assignment by
any Lender to another Lender or an Affiliate of such Lender or such other Lender(provided that in
the case of an assignment to any such Affiliate, the assigning Lender will not be released from its
obligations under the Loan Documents and the Administrative Agent may continue to deal only with
such assigning Lender);

               (b) except to the extent Administrative Agent shall otherwise consent, any such partial
assignment (other than to another Lender or an Affiliate of a Lender) shall be in an amount at
least equal to $10,000,000;

               (c) each such assignment (including an assignment to another Lender or an Affiliate of a
Lender) by a Lender of its Loans or Commitment shall be made in such manner so that the same
portion of its Loans and Commitment is assigned to the respective assignee;

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               (d) subject to the applicable Lender’s compliance with the provisions of clauses (b)
and (c) above, no consent by Borrower shall be required and Administrative Agent’s consent
shall not be unreasonably withheld, delayed or conditioned if such assignment is made to an
Eligible Assignee, and the provisions of clause (e) have been satisfied; and

               (e) upon execution and delivery by the assignee (even if already a Lender) to Borrower and
Administrative Agent of an Assignment and Assumption pursuant to which such assignee agrees to
become a “Lender” hereunder (if not already a Lender) having the Commitment and Loans specified in
such instrument, and upon consent thereto by Administrative Agent to the extent required above, the
assignee shall have, to the extent of such assignment (unless otherwise consented to by
Administrative Agent), the obligations, rights and benefits of a Lender hereunder holding the
Commitment and Loans (or portions thereof) assigned to it (in addition to the Commitment and Loans,
if any, theretofore held by such assignee) and the assigning Lender shall, to the extent of such
assignment, be released from the Commitment (or portion thereof) so assigned. Upon each such
assignment the assigning Lender shall pay Administrative Agent a processing and recording fee of
$3,500 and the reasonable fees and disbursements of Administrative Agent’s counsel incurred in
connection therewith.

          (2) Approval by Borrower. In the event Borrower’s consent to an assignment is required under
Section 12.23(1), such consent shall not be unreasonably withheld, and shall be granted or
denied in writing delivered to Administrative Agent within five (5) Business Days from the date of
Administrative Agent’s or a Lender’s request therefor. If Administrative Agent does not receive
such consent or a denial of such consent in writing within said five (5) Business Days following
delivery of a request for such consent, Borrower’s consent shall be deemed to have been granted.
In the event Borrower withholds its consent, Lead Borrower shall, concurrently with Borrower’s
written disapproval, provide written notice to Administrative Agent and such Lender of the reasons
for Borrower’s disapproval.

          (3) Participations.

               (a) A Lender may sell to one or more other Persons (each a “Participant”) a
participation in all or any part of any Loans held by it, or in its Commitment, provided (A) such
Lender’s obligations under this Agreement and the other Loan Documents shall remain unchanged, (B)
such Lender shall remain solely responsible to the other parties hereto for the performance of such
obligations and (C) Borrower, Administrative Agent and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and obligations under
this Agreement and the other Loan Documents. In no event shall a Lender that sells a participation
agree with the Participant to take or refrain from
taking any action hereunder or under any other Loan Document except that such Lender may agree
with the Participant that it will not, without the consent of the Participant, agree to (i)
increase or extend the term of such Lender’s Commitment, (ii) extend the date fixed for the payment
of principal of or interest on the related Loan or Loans or any portion of any fee hereunder
payable to the Participant, (iii) reduce the amount of any such payment of principal, (iv) reduce
the rate at which interest is payable thereon, or any fee hereunder payable to the Participant, to
a level below the rate at which the Participant is entitled to receive such interest or fee or (v)
consent to any modification, amendment or waiver hereof or of any of the other Loan Documents to
the extent that the same, under Section 12.2, requires the consent of each Lender.

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Borrower agrees that each Participant shall be entitled to the benefits of Section 2.7(1),
Section 2.7(5), and Section 2.7(6) to the same extent as if it were a Lender and
had acquired its interest by assignment pursuant to Section 12.23; provided,
however, that a Participant that is a non-U.S. Person that would become a Lender shall not
be entitled to the benefits of Section 2.7(6) unless Lead Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the benefit of Borrower, to
comply with Section 2.7(6) as though it were a Lender. To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 12.23 as though it were
a Lender; provided that such Participant agrees to be subject to Section 12.23 as though it
were a Lender.

          (4) Certain Pledges. In addition to the assignments and participations permitted under the
foregoing provisions of this Section 12.23 (but without being subject thereto), any Lender
may (without notice to Borrower, Administrative Agent or any other Lender and without payment of
any fee) assign and pledge all or any portion of its Loans and its Note to any Federal Reserve Bank
as collateral security pursuant to Regulation A and any operating circular issued by such Federal
Reserve Bank, and such Loans and Note shall be fully transferable as provided therein. No such
assignment shall release the assigning Lender from its obligations hereunder.

          (5) Provision of Information to Assignees and Participants. A Lender may furnish any
information concerning Borrower, any Borrower Party or any of their respective Affiliates or the
Project in the possession of such Lender from time to time to assignees and participants (including
prospective assignees and participants); provided that such assignee and participant agree to be
bound by the terms of Section 12.29.

          (6) No Assignments to Borrower or Affiliates. Anything in this Section 12.23 to the
contrary notwithstanding, no Lender may assign or participate any interest in any Loan held by it
hereunder to Borrower or any of its Affiliates without the prior consent of each Lender.

     Section 12.24 Brokers. Borrower hereby represents to Administrative Agent and each Lender
that Borrower has not dealt with any broker, underwriters, placement agent, or finder in connection
with the transactions contemplated by this Agreement and the other Loan Documents. Borrower hereby
agrees to indemnify and hold Administrative Agent and each Lender harmless from and against any and
all claims, liabilities, costs and expenses of any kind in any way relating to or arising
from a claim by any Person that such Person acted on behalf of Borrower in connection with the
transactions contemplated herein.

     Section 12.25 Right of Set-off.

          (1) Upon the occurrence and during the continuance of any Event of Default, each of the
Lenders is, subject (as between the Lenders) to the provisions of subsection (3) of this
Section 12.25, hereby authorized at any time and from time to time, without notice to
Borrower (any such notice being expressly waived by Borrower) and to the fullest extent permitted
by law, to set-off and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held, and other indebtedness at any time owing, by such Lender in any of its
offices, in Dollars or in any other currency, to or for the credit or the account of

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Borrower
against any and all of the respective obligations of Borrower now or hereafter existing under the
Loan Documents, irrespective of whether or not such Lender or any other Lender shall have made any
demand hereunder and although such obligations may be contingent or unmatured and such deposits or
indebtedness may be unmatured. Each Lender hereby acknowledges that the exercise by any Lender of
offset, set-off, banker’s lien, or similar rights against any deposit or other indebtedness of
Borrower whether or not located in New York or any other state with certain laws restricting
lenders from pursuing multiple collection methods, could result under such laws in significant
impairment of the ability of all the Lenders to recover any further amounts in respect of the Loan.
Therefore, each Lender agrees that no Lender shall exercise any such right of set-off, banker’s
lien, or otherwise, against any assets of Borrower (including all general or special, time or
demand, provisional or other deposits and other indebtedness owing by such Lender to or for the
credit or the account of Borrower) without the prior written consent of Administrative Agent.

          (2) Each Lender shall promptly notify Lead Borrower and Administrative Agent after any such
set-off and application, provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of the Lenders under this Section
12.25 are in addition to other rights and remedies (including other rights of set-off) which
the Lenders may have.

          (3) Each Lender agrees that it shall turn over to Administrative Agent any payment (whether
voluntary or involuntary, through the exercise of any right of setoff or otherwise) on account of
the Loans held by it in excess of its ratable portion (in accordance with this agreement and any
separate agreement among Administrative Agent and the Lenders) of payments on account of the Loans
obtained by all the Lenders.

     Section 12.26 Limitation on Liability of Administrative Agent’s and the Lenders’ Officers,
Employees, etc. Any obligation or liability whatsoever of Administrative Agent or any Lender which
may arise at any time under this Agreement or any other Loan Document shall be satisfied, if at
all, out of Administrative Agent’s or such Lender’s respective assets only. No such obligation or
liability shall be personally binding upon, nor shall resort for the enforcement thereof be had to,
the property of any of Administrative Agent’s or any Lender’s shareholders, directors, officers,
employees or agents, regardless of whether such obligation or liability is in the nature of
contract, tort or otherwise.

     Section 12.27 Cooperation with Syndication. Borrower acknowledges that Administrative Agent
intends to syndicate a portion of the Commitments to one or more Lenders (the
“Syndication”) and in connection therewith, Borrower shall take all actions as
Administrative Agent may reasonably request to assist Administrative Agent in its Syndication
effort. Without limiting the generality of the foregoing, Borrower shall, at the request of
Administrative Agent (i) facilitate the review of the Loans, the Project and the other collateral
for the Loans by any prospective Lender; (ii) assist Administrative Agent and otherwise cooperate
with Administrative Agent in the preparation of information offering materials (which assistance
may include reviewing and commenting on drafts of such information materials and drafting portions
thereof); (iii) deliver updated information on Borrower Parties, the Project and the other
collateral for the Loans; (iv) make representatives of Borrower available to meet with prospective
Lenders at tours of the Project and bank meetings; (v) facilitate direct contact

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between the senior
management and advisors of Borrower and any prospective Lender; and (vi) provide Administrative
Agent with all information reasonably deemed necessary by it to complete the Syndication
successfully. Subject to the provisions of Section 9.28, Borrower agrees to take such
further reasonable action, in connection with documents and amendments to the Loan Documents, as
may reasonably be required to effect such Syndication; provided, however, that notwithstanding any
other provision of this Section 12.27 or Section 12.28 to the contrary, Borrower
shall not be required to enter into any such documents and amendments which would alter any of the
material economic terms of the Loan Documents or which would create new or greater obligations or
liabilities on Borrower Parties under the Loan Documents.

     Section 12.28 Severance of Loan.

          (1) Loan Components. The Administrative Agent shall have the right, at any time, with respect
to all or any portion of the Loan, to (a) cause the Notes, the Mortgages and the other Security
Documents to be severed and/or split into two or more separate notes, mortgages and other security
agreements, so as to evidence and secure one or more senior and subordinate mortgage loans, (b)
create one more senior and subordinate notes (i.e., an A/B or A/B/C structure) secured by the
Mortgages and the other Security Documents, (c) create multiple components of the Notes (and
allocate or re-allocate the outstanding principal amount of the Loan among such components) or (d)
otherwise sever the Loan into two or more loans secured by the Mortgages and the other Security
Documents (each of clauses (a) through (d), together with the Mezzanine Option described below, a
“Bifurcation”); in each such case, in whatever proportions and priorities as Administrative
Agent may so direct in its discretion to Administrative Agent; provided, however, that in each such
instance (i) the outstanding principal amount of all the Notes evidencing the Loan (or components
of such Notes) immediately following such Bifurcation shall be equal to the outstanding principal
amount of the Loan immediately prior to such Bifurcation, and (ii) the weighted average Applicable
Margin and/or Base Rate, as applicable, with respect to the new notes immediately after such
Bifurcation and at all times prior to the occurrence of any Event of Default shall not exceed the
weighted average Applicable Margin and/or Base Rate, as applicable, with respect to the initial
Notes delivered
hereunder (as such interest rates are subject to being adjusted from time to time in
accordance herewith, including as a result of the accrual of interest at the Default Rate). If
requested by Administrative Agent in writing, Borrower shall execute within ten (10) days after
such request, a severance agreement, amendments to or amendments and restatements of any one or
more Loan Documents, and such documentation as Administrative Agent may reasonably request to
evidence and/or effectuate any such Bifurcation, all in form and substance reasonably satisfactory
to Administrative Agent.

          (2) Mezzanine Financing. Administrative Agent shall have the right, at any time, to divide
the Loan into two or more parts (the “Mezzanine Option”): a mortgage loan (the
“Mortgage Loan”) and one or more Approved Mezzanine Loans. The principal amount of the
Mortgage Loan plus the principal amount of the Approved Mezzanine Loan(s) shall equal the
outstanding principal balance of the Loan immediately prior to the creation of the Mortgage Loan
and the Approved Mezzanine Loan(s). In effectuating the foregoing, the Approved Mezzanine Lender
will make a loan to a borrower (the “Mezzanine Borrower(s)”); Mezzanine Borrower(s) will
contribute the amount of the Approved Mezzanine Loan(s) to Borrower (in its capacity as Borrower
under the Mortgage Loan, “Mortgage Borrower”) and Mortgage

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Borrower will apply the
contribution to pay down the Loan to its Mortgage Loan amount (without prepayment premium). The
Mortgage Loan and the Approved Mezzanine Loan(s) shall be on the same terms and subject to the same
conditions set forth in this Agreement, the Notes, the Mortgages and the other Loan Documents
except as follows:

               (a) The Administrative Agent shall have the right, at any time, to establish different
interest rates and debt service payments for the Mortgage Loan(s) and the Approved Mezzanine Loan
and to require the payment of the Mortgage Loan and the Approved Mezzanine Loan(s) in such order of
priority as may be designated by Administrative Agent; provided that (i) the total of the loan
amounts for the Mortgage Loan and the Approved Mezzanine Loan(s) immediately following the creation
of such Approved Mezzanine Loan(s) shall equal the amount of the Loan immediately prior to the
creation of the Mortgage Loan and the Approved Mezzanine Loan(s), (ii) the weighted average
Applicable Margin and/or Base Rate, as applicable, with respect to the Mortgage Loans and the
Approved Mezzanine Loan immediately after such Bifurcation and at all times prior to the occurrence
of any Event of Default shall not exceed the weighted average prior to such bifurcation, and (iii)
there shall be no acceleration of amortization and the initial debt service payments on the
Mortgage Loan note and the Approved Mezzanine Loan note(s) shall initially on the date created
equal the debt service payment which was due under the Loan immediately prior to such bifurcation.
The Approved Mezzanine Loan(s) shall be subordinate to the Mortgage Loan and shall be governed by
the terms of an intercreditor agreement between the holders of the Mortgage Loan and the Approved
Mezzanine Loan(s).

               (b) Mezzanine Borrower(s) shall be a newly-formed special purpose, bankruptcy remote entity
satisfactory to Administrative Agent, and shall own directly or indirectly one hundred percent
(100%) of Mortgage Borrower. The security for the Approved Mezzanine Loan shall be a pledge of one
hundred percent (100%) of the direct and indirect ownership interests in Mortgage Borrower.

               (c) Mezzanine Borrower and Mortgage Borrower shall cooperate with all reasonable requests of
Administrative Agent in order to convert the Loan into a Mortgage Loan and one or more Approved
Mezzanine Loan(s) and shall execute and deliver such documents as shall reasonably be required by
Administrative Agent in connection therewith, including, without limitation, (i) the modification
of organizational documents and loan documents, (ii) documents authorizing Administrative Agent to
file any UCC 1 Financing Statements reasonably required by Administrative Agent to perfect the
security interest in the collateral for the Approved Mezzanine Loan(s), (iii) execution of such
other documents reasonably required by Administrative Agent in connection with the creation of the
Approved Mezzanine Loan(s), including, without limitation, an environmental indemnity substantially
similar in form and substance to the Environmental Indemnity Agreement delivered on the date hereof
in connection with the Loan, (iv) delivery of appropriate authorization and enforceability opinions
with respect to the Approved Mezzanine Loan(s), and (v) delivery of an “Eagle 9” or equivalent UCC
title insurance policy, satisfactory to Administrative Agent, insuring the perfection and priority
of the lien on the Approved Mezzanine Loan collateral; provided, however, that notwithstanding any
other provision of Section 12.27 or this Section 12.28(2) to the contrary, Borrower
shall not be required to enter into any such documents and amendments which would alter any of the
material economic terms of the Loan Documents or which would

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create new or greater obligations or
liabilities Borrower or Borrower Parties under the Loan Documents

     Section 12.29 Confidentiality. Each of Administrative Agent and the Lenders and Borrower
Parties and Sponsor agrees to maintain the confidentiality of the Confidential Information, except
that Confidential Information may be disclosed (a) to it and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other advisors (it being understood
that the Persons to whom such disclosure is made shall be informed of the confidential nature of
such Information and instructed to keep such Information confidential), (b) to the extent requested
by any Governmental Authority, (c) to the extent required by Applicable Law or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any suit, action or
proceeding relating to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) to any assignee or pledgee of or Participant in, or any prospective
assignee or pledgee of or Participant in, any of its rights or obligations under this Agreement or
any actual or prospective counterparty (or its advisors) to any swap or derivative transaction
relating to Borrower and its obligations, (g) with the consent of Borrower or Administrative Agent,
as applicable, or (h) to the extent such Confidential Information (i) becomes publicly available
other than as a result of a breach of this Section 12.29 or of arrangements entered into
pursuant hereto or (ii) becomes available to such party from a source other than Borrower or its
Affiliates or the Administrative Agent or the Lender or their Affiliates, as applicable; provided,
however, the obligation to maintain the confidentiality of the Confidential Information provided
hereunder shall expire twelve (12) months after the date upon which the Loans hereunder are
indefeasibly paid in full. Administrative Agent and each Lender, to the extent required to
maintain the confidentiality of Information as provided in this Section 12.29, shall be
considered to have complied with its obligation to do so if such Person has exercised the same
degree of care to maintain the confidentiality of such Confidential Information as a commercial
banker exercising
reasonable and customary business practices would accord to its own confidential information.
Notwithstanding anything herein to the contrary, the information subject to this Section
12.29 shall not include, and Administrative Agent and each Lender may disclose without
limitation of any kind, any information with respect to the “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 Administrative Agent or such Lender relating to such tax treatment and tax
structure. For purposes of this Section 12.29, the information that shall be treated as
Confidential Information shall mean, in the case of Administrative Agent and the Lenders, written
non-public information concerning the Project and, in the case of Borrower, information concerning
the terms and conditions set forth in the Loan Documents.

ARTICLE 13

RECOURSE LIABILITY

     Section 13.1 Recourse Liability(1) . No past, present or future member, or any past, present
or future shareholder, partner, member, officer, employee, servant, executive, director, agent,
authorized representative or Affiliate of Borrower or any member of Borrower, (each such

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Person, an
“Exculpated Party”) shall be personally liable for payments due hereunder or under any
other Loan Document or for the performance of any obligation, or breach of any representation or
warranty made by Borrower hereunder or thereunder. The sole recourse of the Lenders and
Administrative Agent for satisfaction of the obligations of Borrower hereunder and under any other
Loan Document shall be against Borrower and its assets and not against any assets or property of
any such Exculpated Party other than the direct or indirect ownership interest of such Exculpated
Party in Borrower. In the event that a Potential Default or Event of Default occurs in connection
with such obligations, no action shall be brought against any such Exculpated Party by virtue of
its direct or indirect ownership interest in Borrower. In the event of foreclosure or other sale
or disposition of the Project, no judgment for any deficiency upon the obligations hereunder or
under any other Loan Document shall be obtainable by the Lenders or Administrative Agent against
any such Exculpated Party. Notwithstanding the foregoing, nothing in this Section 13.1
shall affect or diminish the obligations of Borrower or Guarantors under or in respect of each Loan
Document to which it is a party, including Guarantor Documents (including the right to name any
Guarantor in any foreclosure action in connection with its obligations under the Guarantor
Documents) and the Co-Borrower Documents. Notwithstanding the foregoing provisions of this
Section 13.1, each Exculpated Party shall be personally (and on a full recourse basis)
liable for and shall indemnify and defend Administrative Agent and the Lenders from and against,
and shall hold Administrative Agent and the Lenders harmless of, from and against any deficiency,
liability, loss, damage, costs, and expenses (including legal fees and disbursements) suffered by
Administrative Agent and/or the Lenders and caused by, or arising out of or as a result of any of
the following: (i) such Person’s commission of a criminal act, (ii) such Person’s failure to
comply with the provisions of the Loan Documents prohibiting a transfer or Change of Control; (iii)
such Person’s misappropriation of any cash flow or other revenue derived from or in respect of the
Project, including security deposits, insurance proceeds, condemnation awards, or any rental, sales
or
other income derived directly or indirectly from the Project, or the misapplication of any of
the foregoing sums, in either event, in contravention of any provision of this Agreement or the
other Loan Documents; (iv) such Person’s fraud or misrepresentation or inaccurate certification
made at any time in connection with the Loan Documents or the Loans; (v) such Person’s intentional
interference with Administrative Agent’s (or the Lenders’) exercise of its rights under any of the
Loan Documents; (vi) such Person’s intentional destruction or removal of fixtures or personal
property securing the Loans unless replaced by items of equal value and utility; (vii) such
Person’s misapplication or misappropriation of funds disbursed from the Security Accounts or the
Controlled Accounts; (viii) such Person’s commissions of intentional waste to or of the Project or
any portion thereof or failure to maintain the Project in the manner required by the Loan
Documents; (ix) failure to maintain the insurance coverage required by the Loan Documents; (x)
failure to pay taxes, assessments and any other charges, including, without limitation, charges for
labor or materials, which could result in prior liens against any portion of the Project; (xi)
willful misconduct; (xii) Borrower files a voluntary petition under the Federal Bankruptcy Code or
any other Federal or state bankruptcy or insolvency law; (xiii) such Person files or joins in the
filing of, or solicits or acts in concert with, or colludes or conspires with petitioning creditors
with respect to, an involuntary petition against Borrower under the Federal Bankruptcy Code or any
other Federal or state bankruptcy or insolvency law; (xiv) Borrower files an answer consenting to
or otherwise acquiescing in or joining in any involuntary petition filed against it, by any other
Person under the Federal Bankruptcy Code or any other Federal or

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state bankruptcy or insolvency
law; (xv) such Person consents to or acquiesces in or joins in an application for the appointment
of a custodian, receiver, trustee, or examiner for Borrower or any portion of the Project; (xvi)
Borrower makes an assignment for the benefit of creditors, or admits, in writing or in any legal
proceeding, its insolvency or inability to pay its debts as the become due; or (xvii) Borrower
violates any of provisions set forth in the definition of Single Purpose Entity and such violation
results in a substantive consolidation of the Borrower or its assets in the bankruptcy of an
Affiliate.

     Section 13.2 No Waiver of Certain Rights. Notwithstanding anything to the contrary contained
in this Agreement or the other Loan Documents, (A) neither of Administrative Agent nor the Lenders
shall be deemed to have waived any right which Administrative Agent or any Lender may have under
Sections 506(a), 506(b), 1111(b) or any other provision of the Federal Bankruptcy Code, as such
sections may be amended, to file a claim for the full amount due to Administrative Agent or such
Lender under the Loan Documents or to require that all collateral shall continue to secure the
amounts due under the Loan Documents and (B) Administrative Agent may pursue any power of sale,
bring any foreclosure action, any action for specific performance, or any other appropriate action
or proceedings against Borrower or any other Person for the purpose of enabling the Administrative
Agent and the Lenders to realize upon the collateral for the Loans (including, without limitation,
any Net Operating Income to the extent provided for in the Loan Documents) or to obtain the
appointment of a receiver.

ARTICLE 14

ADMINISTRATIVE AGENT

     Section 14.1 Appointment, Powers and Immunities. Each Lender hereby appoints and authorizes
Administrative Agent to act as its agent hereunder and under the other Loan Documents with such
powers as are specifically delegated to Administrative Agent by the terms of this Agreement and of
the other Loan Documents, together with such other powers as are reasonably incidental thereto.
Administrative Agent (which term as used in this sentence and in Section 14.5 and the first
sentence of Section 14.6 shall include reference to its Affiliates and its own and its
Affiliates’ officers, directors, employees and agents):

               (a) shall have no duties or responsibilities except those expressly set forth in this
Agreement and in the other Loan Documents, and shall not by reason of this Agreement or any other
Loan Document be a trustee for any Lender except to the extent that Administrative Agent acts as an
agent with respect to the receipt or payment of funds, nor shall Administrative Agent have any
fiduciary duty to Borrower nor shall any Lender have any fiduciary duty to Borrower or any other
Lender;

               (b) shall not be responsible to the Lenders for any recitals, statements, representations or
warranties contained in this Agreement or in any other Loan Document, or in any certificate or
other document referred to or provided for in, or received by any of them under, this Agreement or
any other Loan Document, or for the value, validity, effectiveness, genuineness, enforceability or
sufficiency of the Loan Documents or any other document referred to or provided for therein or for
any failure by Borrower or any other Person to perform any of its obligations thereunder; and

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               (c) shall not be responsible for any action taken or omitted to be taken by it under any Loan
Document or under any other document or instrument referred to or provided for therein or in
connection therewith, except to the extent any such action taken or omitted violates Administrative
Agent’s standard of care set forth in the first sentence of Section 14.5.

               (d) shall not, except to the extent expressly instructed by the Majority Lenders with respect
to collateral security under the Security Documents, be required to initiate or conduct any
litigation or collection proceedings hereunder or under any other Loan Document; and

               (e) shall not be required to take any action which is contrary to the Loan Documents or
Applicable Law.

The relationship between Administrative Agent and each Lender is a contractual relationship only,
and nothing herein shall be deemed to impose on Administrative Agent any obligations other than
those for which express provision is made herein or in the other Loan Documents. Administrative
Agent may employ agents and attorneys, and may delegate all or any part of its obligations
hereunder, to third parties and shall not be responsible for the negligence or
misconduct of any such agents, attorneys in fact or third parties selected by it in good faith.
Administrative Agent may deem and treat the payee of a Note as the holder thereof for all purposes
hereof unless and until a notice of the assignment or transfer thereof shall have been filed with
Administrative Agent, any such assignment or transfer to be subject to the provisions of
Section 12.23. Except to the extent expressly provided in Section 14.8, the
provisions of this Article 14 are solely for the benefit of Administrative Agent and the
Lenders, and Borrower shall not have any rights as a third-party beneficiary of any of the
provisions hereof and the Lenders may modify or waive such provisions of this Article 14 in
their sole and absolute discretion.

     Section 14.2 Reliance by Administrative Agent. Administrative Agent shall be entitled to rely
upon any certification, notice or other communication (including, without limitation, any thereof
by telephone, telecopy, telegram or cable) reasonably believed by it to be genuine and correct and
to have been signed or sent by or on behalf of the proper Person or Persons, and upon advice and
statements of legal counsel, independent accountants and other experts selected by Administrative
Agent. As to any matters not expressly provided for by this Agreement or any other Loan Document,
Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting,
hereunder or thereunder in accordance with instructions given by the Majority Lenders, and such
instructions of the Majority Lenders and any action taken or failure to act pursuant thereto shall
be binding on all of the Lenders.

     Section 14.3 Defaults.

          (1) Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of
a Potential Default or Event of Default unless Administrative Agent has received notice from a
Lender or Lead Borrower specifying such Potential Default or Event of Default and stating that such
notice is a “Notice of Default.” In the event that Administrative Agent receives such a
notice of the occurrence of a Potential Default or Event of Default, Administrative Agent shall
give prompt notice thereof to the Lenders. Within ten (10) days of

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delivery of such notice of
Potential Default or Event of Default from Administrative Agent to the Lenders (or such shorter
period of time as Administrative Agent determines is necessary), Administrative Agent and the
Lenders shall consult with each other to determine a proposed course of action. Administrative
Agent shall (subject to Section 14.7) take such action with respect to such Potential
Default or Event of Default as shall be directed by the Majority Lenders, provided that, (A) unless
and until Administrative Agent shall have received such directions, Administrative Agent may (but
shall not be obligated to) take such action, or refrain from taking such action, including
decisions (1) to make protective advances that Administrative Agent determines are necessary to
protect or maintain the Project and (2) to foreclose on any of the Project or exercise any other
remedy, with respect to such Potential Default or Event of Default as it shall deem advisable in
the interest of the Lenders except to the extent that this Agreement expressly requires that such
action be taken, or not be taken, only with the consent or upon the authorization of all of the
Lenders and (B) no actions approved by the Majority Lenders shall violate the Loan Documents or
Applicable Law. Each of the Lenders acknowledges and agrees that no individual Lender may
separately enforce or exercise any of the provisions of any of the Loan Documents (including the
Notes) other than through Administrative Agent. Administrative Agent shall advise the Lenders of
all material actions which Administrative
Agent takes in accordance with the provisions of this Section 14.3(1) and shall
continue to consult with the Lenders with respect to all of such actions. Notwithstanding the
foregoing, if the Majority Lenders shall at any time direct that a different or additional remedial
action be taken from that already undertaken by Administrative Agent, including the commencement of
foreclosure proceedings, such different or additional remedial action shall be taken in lieu of or
in addition to, the prosecution of such action taken by Administrative Agent; provided that all
actions already taken by Administrative Agent pursuant to this Section 14.3(1) shall be
valid and binding on each Lender. All money (other than money subject to the provisions of
Section 14.7) received from any enforcement actions, including the proceeds of a
foreclosure sale of the Project, shall be applied, first, to the payment or reimbursement of
Administrative Agent for expenses incurred in accordance with the provisions of Sections
14.3(2), (3) and (4) and 14.5 and to the payment of the Agency Fee to
the extent not paid by Borrower pursuant to Section 14.11, second, to the payment or
reimbursement of the Lenders for expenses incurred in accordance with the provisions of Section
14.3(2), (3) and (4) and 14.5; third, to the payment or reimbursement
of the Lenders for any advances made pursuant to Section 14.3(2); and fourth, to the
Lenders in accordance with their respective Proportionate Shares (and, if applicable, to Eurohypo
Counterparty under any Hedge Agreement for its Additional Interest in accordance with Section
9.15), unless an Unpaid Amount is owed pursuant to Section 14.12, in which event such
Unpaid Amount shall be deducted from the portion of such proceeds of the Defaulting Lender and be
applied to payment of such Unpaid Amount to the Special Advance Lender.

          (2) All losses with respect to interest (including interest at the Default Rate) and other
sums payable pursuant to the Notes or incurred in connection with the Loans shall be borne by the
Lenders in accordance with their respective proportionate shares of the Loans. All losses incurred
in connection with the Loans, the enforcement thereof or the realization of the security therefor,
shall be borne by the Lenders in accordance with their respective proportionate shares of the Loan,
and the Lenders shall promptly, upon request, remit to Administrative Agent their respective
proportionate shares of (i) any expenses incurred by Administrative Agent in connection with any
Default to the extent any expenses have not been paid by Borrower, (ii) any advances made to pay
taxes or insurance or otherwise to preserve the Lien of the Security

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Documents or to preserve and
protect the Project, whether or not the amount necessary to be advanced for such purposes exceeds
the amount of the Mortgages, (iii) any other expenses incurred in connection with the enforcement
of the Mortgages or other Loan Documents, and (iv) any expenses incurred in connection with the
consummation of the Loans not paid or provided for by Borrower. To the extent any such advances
are recovered in connection with the enforcement of the Mortgages or the other Loan Documents, each
Lender shall be paid its proportionate share of such recovery after deduction of the expenses of
Administrative Agent and the Lenders.

          (3) If, at the direction of the Majority Lenders or otherwise as provided in Section
14.3(1), any action(s) is brought to collect on the Notes or enforce the Security Documents or
any other Loan Document, such action shall (to the extent permitted under Applicable Law and the
decisions of the court in which such action is brought) be an action brought by Administrative
Agent and the Lenders, collectively, to collect on all or a portion of the Notes or enforce the
Security Documents or any other Loan Document and counsel selected by Administrative Agent shall
prosecute any such action on behalf of Administrative Agent and the Lenders, and Administrative
Agent and the Lenders shall consult and cooperate with each
other in the prosecution thereof. All decisions concerning the appointment of a receiver
while such action is pending, the conduct of such receivership, the conduct of such action, the
collection of any judgment entered in such action and the settlement of such action shall be made
by Administrative Agent. The costs and expenses of any such action shall be borne by the Lenders
in accordance with each of their respective proportionate shares.

          (4) If, at the direction of the Majority Lenders or otherwise as provided in Section
14.3(1), any action(s) is brought to foreclose the Mortgages, such action shall (to the extent
permitted under Applicable Law and the decisions of the court in which such action is brought) be
an action brought by Administrative Agent and the Lenders, collectively, to foreclose all or a
portion of the Mortgages and collect on the Notes. Counsel selected by Administrative Agent shall
prosecute any such foreclosure on behalf of Administrative Agent and the Lenders and Administrative
Agent and the Lenders shall consult and cooperate with each other in the prosecution thereof. All
decisions concerning the appointment of a receiver, the conduct of such foreclosure, the acceptance
of a deed in lieu of foreclosure, the bid on behalf of Administrative Agent and the Lenders at the
foreclosure sale of the Project, the manner of taking and holding title to the Project (other than
as set forth in subsection (5) below), the sale of the Project after foreclosure, and the
commencement and conduct of any deficiency judgment proceeding shall be made by Administrative
Agent. The costs and expenses of foreclosure will be borne by the Lenders in accordance with their
respective proportionate shares.

          (5) If title is acquired to the Project after a foreclosure sale or by a deed in lieu of
foreclosure, title shall be held by Administrative Agent in its own name in trust for the Lenders
or, at Administrative Agent’s election, in the name of a wholly owned subsidiary of Administrative
Agent, on behalf of the Lenders, or a subsidiary wholly owned by the Lenders and managed by the
Administrative Agent.

          (6) If Administrative Agent (or its subsidiary) acquires title to the Project or is entitled
to possession of the Project during or after the foreclosure, all material decisions with respect
to the possession, ownership, development, construction, control, operation, leasing,

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management
and sale of the Project shall be made by Administrative Agent. All income or other money received
after so acquiring title to or taking possession of the Project with respect to the Project,
including income from the operation and management of the Project and the proceeds of a sale of the
Project, shall be applied (subject to the terms of any separate agreement among Administrative
Agent and the Lenders), first, to the payment or reimbursement of Administrative Agent and the
expenses incurred in accordance with the provisions of this Article 14 and to the payment
of the Agency Fee to the extent not paid by Borrower pursuant to Section 14.11, second, to
the payment of operating expenses with respect to the Project; third, to the establishment of
reasonable reserves for the operation of the Project; fourth, to the payment or reimbursement of
the Lenders for any advances made pursuant to Section 14.3(2); fifth, to fund any capital
improvement, leasing and other reserves; and sixth, to the Lenders in accordance with their
respective Proportionate Shares (and, if applicable, to Eurohypo Counterparty under any Hedge
Agreement for its Additional Interest in accordance with Section 9.15), unless an Unpaid
Amount is owed pursuant to Section 14.12, in which event such Unpaid Amount shall be
deducted from the portion of such proceeds of the Defaulting Lender and be applied to payment of
such Unpaid Amount to the Special Advance Lender.

     Section 14.4 Rights as a Lender. With respect to its Commitment and the Loans made by it
Eurohypo (and any successor acting as Administrative Agent) in its capacity as a Lender hereunder
shall have the same rights and powers hereunder as any other Lender and may exercise the same as
though it were not acting as Administrative Agent, and the term “Lender” or “Lenders” shall, unless
the context otherwise indicates, include Administrative Agent in its individual capacity. Eurohypo
(and any successor acting as Administrative Agent) and its Affiliates may (without having to
account therefor to any Lender) lend money to, make investments in and generally engage in any kind
of lending, trust or other business with Borrower (and any of its Affiliates) as if it were not
acting as Administrative Agent, and Eurohypo and its Affiliates may accept fees and other
consideration from Borrower for services in connection with this Agreement or otherwise without
having to account for the same to the Lenders.

     Section 14.5 Standard of Care; Indemnification. In performing its duties under the Loan
Documents, Administrative Agent will exercise the same degree of care as it normally exercises in
connection with real estate loans that it syndicates and administers, but Administrative Agent
shall have no further responsibility to any Lender except as expressly provided herein and except
for its own gross negligence or willful misconduct which resulted in actual loss to such Lender,
and, except to such extent, Administrative Agent shall have no responsibility to any Lender for the
failure by Administrative Agent to comply with any of Administrative Agent’s obligations to
Borrower under the Loan Documents or otherwise. Subject to the terms of any separate agreement
among Administrative Agent and the Lenders, the Lenders agree to indemnify Administrative Agent (to
the extent not reimbursed under Section 9.28, but without limiting the obligations of
Borrower under Section 9.28) ratably in accordance with the aggregate principal amount of
the Loans held by the Lenders (or, if no Loans are at the time outstanding, ratably in accordance
with their respective Commitments), for any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature
whatsoever that may be imposed on, incurred by or asserted against Administrative Agent (including
by any Lender) arising out of or by reason of any investigation in or in any way relating to or
arising out of this Agreement or any other Loan

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Document or any other documents contemplated by or
referred to herein or therein or the transactions contemplated hereby or thereby (including,
without limitation, the costs and expenses that Borrower is obligated to pay under Section
9.28, but excluding, unless an Event of Default has occurred and is continuing, normal
administrative costs and expenses incident to the performance of its agency duties hereunder) or
the enforcement of any of the terms hereof or thereof or of any such other documents, provided that
no Lender shall be liable for any of the foregoing to the extent they arise from Administrative
Agent’s breach of its standard of care set forth in the first sentence of this Section.

     Section 14.6 Non Reliance on Administrative Agent and Other Lenders. Each Lender agrees that
it has, independently and without reliance on Administrative Agent or any other Lender, and based
on such documents and information as it has deemed appropriate, made its own credit analysis of
Borrower and its Affiliates and decision to enter into this Agreement and that it will,
independently and without reliance upon Administrative Agent
or any other Lender, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own analysis and decisions in taking or not taking action under
this Agreement or under any other Loan Document. Subject to the provisions of the first sentence
of Section 14.5, Administrative Agent shall not be required to keep itself informed as to
the performance or observance by Borrower of this Agreement or any of the other Loan Documents or
any other document referred to or provided for herein or therein or to inspect the Project or the
books of Borrower or any of its Affiliates. Except for notices, reports and other documents and
information expressly required to be furnished to the Lenders by Administrative Agent hereunder or
as otherwise agreed by Administrative Agent and the Lenders, Administrative Agent shall not have
any duty or responsibility to provide any Lender with any credit or other information concerning
the affairs, financial condition or business of Borrower or any of its Affiliates that may come
into the possession of Administrative Agent or any of its Affiliates.

     Section 14.7 Failure to Act. Except for action expressly required of Administrative Agent
hereunder, and under the other Loan Documents, Administrative Agent shall in all cases be fully
justified in failing or refusing to act hereunder and thereunder unless it shall receive further
assurances to its satisfaction from the Lenders of their indemnification obligations under
Section 14.5 against any and all liability and expense that may be incurred by it by reason
of taking or continuing to take any such action.

     Section 14.8 Resignation of Administrative Agent. Administrative Agent may resign at any time
by giving notice thereof to the Lenders and Lead Borrower. Upon any such resignation, the Majority
Lenders shall have the right to appoint a successor Administrative Agent that shall be a Person
that meets the qualifications of an Eligible Assignee. If no successor Administrative Agent shall
have been so appointed by the Majority Lenders and shall have accepted such appointment within
thirty (30) days after the retiring Administrative Agent’s giving of notice of resignation, then
the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative
Agent, that shall be an institutional lender that meets the requirements of the immediately
preceding sentence. Upon the acceptance of any appointment as Administrative Agent hereunder by a
successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the retiring (or retired)
Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder (if not

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already discharged therefrom as provided above in this Section
14.8). The fees payable by Borrower to a successor Administrative Agent shall be the same as
those payable to its predecessor unless otherwise agreed between Borrower and such successor.
After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the
provision of this Article 14 and Section 9.28 shall continue in effect for its
benefit in respect of any actions taken or omitted to be taken by it while it was acting as
Administrative Agent.

     Section 14.9 Consents under Loan Documents. Administrative Agent may (without any Lender’s consent) give or withhold its agreement to any
amendments of the Loan Documents or any waivers or consents in respect thereof or exercise or
refrain from exercising any other rights or remedies which Administrative Agent may have under the
Loan Documents or otherwise provided that such actions do not, in Administrative Agent’s reasonable
judgment, materially adversely affect the value of any collateral, taken as a whole, or represent a
departure from Administrative Agent’s standard of care described in Section 14.5, except
that, except as otherwise provided in any separate agreement entered into among Administrative
Agent and the Lenders, Administrative Agent shall not agree to the following (provided that no
Lender’s consent shall be required for any of the following which are otherwise required or
contemplated under the Loan Documents):

               (a) increase the Commitment of any Lender without the consent of such Lender;

               (b) reduce the principal amount of the Loans or reduce the interest rate thereon without the
consent of each Lender affected thereby;

               (c) extend any stated payment date for principal of or interest on the Loans payable to any
Lender without the consent of each Lender affected thereby;

               (d) release Borrower, any Guarantor or any other party from liability under the Loan Documents
(except for any assigning Lender pursuant to Section 12.23 and any resigning Administrative
Agent pursuant to Section 14.8) without the consent of each Lender (except that no such
consent shall be required, and Administrative Agent is hereby authorized, to release Borrower and
Guarantors (A) as expressly provided in the Loan Documents and (B) upon payment of the Obligations
in full in accordance with the terms of the Loan Documents);

               (e) release or subordinate in whole or in part any material portion of the collateral given as
security for the Loans without the consent of each Lender (except that no such consent shall be
required, and Administrative Agent is hereby authorized, to release any Lien covering the
collateral under the Security Documents (A) as expressly provided in the Loan Documents and (B)
upon payment of the Obligations in full in accordance with the terms of the Loan Documents);

               (f) modify any of the provisions of this Section 14.9, the definition of “Majority
Lenders” or any other provision in the Loan Documents specifying the number or percentage of
Lenders required to waive, amend or modify any rights thereunder or make any determination or grant
any consent thereunder without the consent of each Lender;

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               (g) modify the terms of any Event of Default without the consent of each Lender; or

               (h) consent to (i) the sale, transfer or encumbrance of any portion of the Project (or any
interest therein) or any direct or indirect ownership interest therein and (ii) the incurrence by
Borrower of any additional indebtedness secured by the Project, in each case to the extent such
consent is required under the Loan Documents (and subject to any standard of reasonability set
forth therein) without the consent of each Lender.

     Notwithstanding anything to the contrary contained in this Agreement, (a) any modification or
supplement of Article 14, or of any of the rights or duties of Administrative Agent
hereunder, shall require the consent of Administrative Agent and (b) in the case of Change Orders,
the Lenders hereby authorize Administrative Agent (on behalf of the Lenders) to modify the Loan
Documents to the extent reasonably necessary to comply with the requirements of the Lien Law in
connection therewith and (y) Administrative Agent is hereby authorized to enter into modifications
or amendments to the Loan Documents which are ministerial in nature, including the preparation and
execution of Uniform Commercial Code forms, Assignments and Assumptions and subordination and
non-disturbance agreements with tenants at the Project. If Administrative Agent solicits any
consents or approvals from the Lenders under any of the Loan Documents, each Lender shall within
ten (10) Business Days of receiving such request, give Administrative Agent written notice of its
consent or approval or denial thereof; provided that, if any Lender does not respond within such
ten (10) Business Days, such Lender shall be deemed to have authorized Administrative Agent to vote
such Lender’s interest with respect to the matter which was the subject of Administrative Agent’s
solicitation as Administrative Agent elects. Any such solicitation by Administrative Agent for a
consent or approval shall be in writing and shall include a description of the matter or thing as
to which such consent or approval is requested and shall include Administrative Agent’s recommended
course of action or determination in respect thereof.

     Section 14.10 Authorization. Administrative Agent is hereby authorized by the Lenders to
execute, deliver and perform in accordance with the terms of each of the Loan Documents to which
Administrative Agent is or is intended to be a party and each Lender agrees to be bound by all of
the agreements of Administrative Agent contained in such Loan Documents. Borrower shall be
entitled to rely on all written agreements, approvals and consents received from Administrative
Agent as being that also of the Lenders, without obtaining separate acknowledgment or proof of
authorization of same.

     Section 14.11 Agency Fee. So long as the Commitments are in effect and until payment in full
of all obligations under this Agreement, the Notes and the other Loan Documents, Borrower shall pay
to Administrative Agent, for its sole account, the Agency Fee. The Agency Fee shall be payable
annually in advance commencing on the Closing Date pursuant to the Fee Letter.

     Section 14.12 Defaulting Lenders.

          (1) If any Lender (a “Defaulting Lender”) shall for any reason fail to (i) make any
respective Loan required pursuant to the terms of this Agreement or (ii) pay its

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proportionate
share of an advance or disbursement to protect the Project or the Lien of the Security Documents,
any of the other Lenders may, but shall not be obligated to, make all or a portion of the
Defaulting Lender’s Loan or proportionate share of such advance, provided that such Lender gives
the Defaulting Lender and Administrative Agent prior notice of its intention to do so. The right
to make such advances in respect of the Defaulting Lender shall be exercisable first by the Lender
holding the greatest proportionate share and thereafter to each of the Lenders
in descending order of their respective proportionate shares of the Loans or in such other
manner as the Majority Lenders (excluding the Defaulting Lender) may agree on. Any Lender making
all or any portion of the Defaulting Lender’s proportionate share of the applicable Loan or advance
in accordance with the foregoing terms and conditions shall be referred to as a “Special
Advance Lender.”

          (2) In any case where a Lender becomes a Special Advance Lender (i) the Special Advance Lender
shall be deemed to have purchased, and the Defaulting Lender shall be deemed to have sold, a senior
participation in the Defaulting Lender’s respective Loan to the extent of the amount so advanced or
disbursed (the “Advanced Amount”) bearing interest (including interest at the Default Rate,
if applicable) and (ii) the Defaulting Lender shall have no voting rights under this Agreement or
any other Loan Documents so long as it is a Defaulting Lender. It is expressly understood and
agreed that each of the respective obligations under this Agreement and the other Loan Documents,
including advancing Loans, losses incurred in connection with the Loan, costs and expenses of
enforcement, advancing to preserve the Lien of the Mortgages or to preserve and protect the
Project, shall be without regard to any adjustment in the proportionate shares occasioned by the
acts of a Defaulting Lender. The Special Advance Lender shall be entitled to an amount (the
“Unpaid Amount”) equal to the applicable Advanced Amount, plus any unpaid interest due and
owing with respect thereto, less any repayments thereof made by the Defaulting Lender immediately
upon demand. The Defaulting Lender shall have the right to repurchase the senior participation in
its Loan from the Special Advance Lender at any time by the payment of the Unpaid Amount.

          (3) A Special Advance Lender shall (i) give notice to the Defaulting Lender, Administrative
Agent and each of the other Lenders (provided that failure to deliver said notice to any party
other than the Defaulting Lender shall not constitute a default under this Agreement) of the
Advance Amount and the percentage of the Special Advance Lender’s senior participation in the
Defaulting Lender’s Loan and (ii) in the event of the repayment of any of the Unpaid Amount by the
Defaulting Lender, give notice to the Defaulting Lender and Administrative Agent of the fact that
the Unpaid Amount has been repaid (in whole or in part), the amount of such repayment and, if
applicable, the revised percentage of the Special Advance Lender’s senior participation. Provided
that Administrative Agent has received notice of such participation, Administrative Agent shall
have the same obligations to distribute interest, principal and other sums received by
Administrative Agent with respect to a Special Advance Lender’s senior participation as
Administrative Agent has with respect to the distribution of interest, principal and other sums
under this Agreement; and at the time of making any distributions to the Lenders, shall make
payments to the Special Advance Lender with respect to a Special Advance Lender’s senior
participation in the Defaulting Lender’s Loan out of the Defaulting Lender’s share of any such
distributions.

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          (4) A Defaulting Lender shall immediately pay to a Special Advance Lender all sums of any kind
paid to or received by the Defaulting Lender from Borrower, whether pursuant to the terms of this
Agreement or the other Loan Documents or in connection with the realization of the security
therefor until the Unpaid Amount is fully repaid. Notwithstanding the fact that the Defaulting
Lender may temporarily hold such sums, the Defaulting Lender shall be deemed to hold same as a
trustee for the benefit of the Special Advance Lender, it being the
express intention of the Lenders that the Special Advance Lender shall have an ownership
interest in such sums to the extent of the Unpaid Amount.

          (5) Each Defaulting Lender shall indemnify, defend and hold Administrative Agent and each of
the other Lenders harmless from and against any and all losses, damages, liabilities or expenses
(including reasonable attorneys’ fees and expenses and interest at the Default Rate) which they may
sustain or incur by reason of the Defaulting Lender’s failure or refusal to abide by its
obligations under this Agreement or the other Loan Documents, except to the extent a Defaulting
Lender became a Defaulting Lender due to the gross negligence or willful misconduct of
Administrative Agent and/or any Lender. Administrative Agent shall, after payment of any amounts
due to any Special Advance Lender pursuant to the terms of subsection (3) above, set-off
against any payments due to such Defaulting Lender for the claims of Administrative Agent and the
other Lenders pursuant to this indemnity.

          (6) In the event any Lender becomes a Defaulting Lender and none of the other Lenders elects
to be a Special Advance Lender pursuant to subsection (1) above, Borrower shall have the right, at
any time prior to the Completion Date, provided that no Potential Default or Event of Default
exists, to cause another financial institution, reasonably acceptable to (x) the Majority Lenders
if such institution is not an Eligible Assignee or (y) Administrative Agent if such institution is
an Eligible Assignee, to assume Defaulting Lender’s obligations with respect to the Advance Amount
on the then-existing terms and conditions of the Loan Documents (such replacement institution, a
“Replacement Lender”). Such assumption shall be pursuant to a written instrument
reasonably satisfactory to administrative Agent. Upon such assumption, the Replacement Lender
shall become a “Lender” for all purposes hereunder, with a Commitment in an amount equal to the
Advance Amount, and the Defaulting Lender’s Commitment shall automatically be reduced by the
Advance Amount. In connection with the foregoing, Borrower shall execute and deliver to the
Replacement Lender and the Defaulting Lender substitute notes substantially in the form of
Exhibit C and stating: “This Note is a substitute note as contemplated by Section
14.12 of the Agreement; it replaces and is in lieu of that certain note made by Maker dated
[date of Note] to the order of [Defaulting Lender] in the principal sum of [Defaulting Lender’s
original Commitment].” Such substitute notes shall be in amounts equal to, in the case of the
Replacement Lender’s note, the Advance Amount and, in the case of the Defaulting Lender’s note, its
Commitment as reduced aforesaid. Such substitute notes shall constitute “Notes” and the
obligations evidenced by such substitute notes shall be secured by the Mortgages. In connection
with Borrower’s execution of substitute notes as aforesaid, Borrower shall deliver to
Administrative Agent evidence, satisfactory to Administrative Agent, of all requisite
partnership/limited liability company/corporate action to authorize Borrower’s execution and
delivery of the substitute notes and any related documents. Upon delivery of the foregoing
substitute notes, each Defaulting Lender shall return to Borrower its note which was replaced,
provided that the delivery of a substitute note to the Defaulting Lender pursuant to this
Section 14.12 shall operate to void and replace the note previously held by the Defaulting
Lender

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regardless of whether Defaulting Lender
returns the same as required hereby. Borrower,
Administrative Agent and Lenders shall execute such modifications to the Loan Documents as shall,
in the reasonable judgment of Administrative Agent, be necessary or desirable in connection with
the substitution of Lenders in accordance with the foregoing provisions of this Section. Lenders
shall reasonably cooperate with Borrower’s attempts to obtain a Replacement
Lender, but they shall not be obligated to modify the Loan Documents in connection therewith,
other than modifications pursuant to the immediately preceding sentence.

     Section 14.13 Liability of Administrative Agent. Administrative Agent shall not have any
liabilities or responsibilities to Borrower on account of the failure of any Lender (other than
Administrative Agent in its capacity as a Lender) to perform its obligations hereunder or to any
Lender on account of the failure of Borrower to perform its obligations hereunder or under any
other Loan Document.

     Section 14.14 Transfer of Agency Function. Without the consent of Borrower or any Lender,
Administrative Agent may at any time or from time to time transfer its functions as Administrative
Agent hereunder to any of its offices wherever located in the United States; provided that
Administrative Agent shall promptly notify Lead Borrower and the Lenders thereof.

ARTICLE 15

CASH MANAGEMENT

     Section 15.1 Cash Management.

          (1) Upon the occurrence of an Event of Default and continuing until the Maturity Date,
Borrower and Borrower’s Managing Member shall (a) enter into and thereafter comply with the Cash
Management Agreement and (b) continuing until ninety (90) days after the date that such Event of
Default has been cured, cause all tenants in the Improvements to remit all rental and other
payments due under their respective leases into a sweep account established in accordance with the
Cash Management Agreement (the “Sweep Account”). The insufficiency of funds on deposit in
any account established pursuant to the Cash Management Agreement shall not absolve Borrower of the
obligation to make any payments as and when due pursuant to this Agreement or the other Loan
Documents, and such obligations shall be separate and independent, and not conditioned on any event
or circumstance whatsoever.

          (2) Administrative Agent, in its sole discretion, may, on a monthly basis, release from the
Sweep Account an amount equal to the monthly Operating Expenses pursuant to an Approved Annual
Budget. After such release of funds described in the preceding sentence, Administrative Agent,
may, in its sole discretion, release any remaining funds to pay for interest on the Loans and for
Project Costs.

     Section 15.2 Security Accounts Generally.

          (1) Grant of Security Interest. Borrower hereby grants a perfected first priority security
interest in favor of Administrative Agent for the ratable benefit of the Lenders in each Security
Account established by or for it hereunder and all financial assets and other

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property and sums at
any time held, deposited or invested therein, and all security entitlements and investment property
relating thereto, together with any interest or other earnings thereon, and all proceeds thereof,
whether accounts, general intangibles, chattel paper, deposit accounts,
instruments, documents or securities (collectively, “Security Account Collateral”),
together with all rights of a secured party with respect thereto (even if no further documentation
is requested by Administrative Agent or the Lenders or executed by Borrower).

          (2) Borrower Covenants. Borrower covenants and agrees:

               (a) to do all acts that may be reasonably necessary to maintain, preserve and protect Security
Account Collateral;

               (b) to pay promptly when due all material taxes, assessments, charges, encumbrances and liens
now or hereafter imposed upon or affecting any Security Account Collateral;

               (c) to appear in and defend any action or proceeding which may materially and adversely affect
Borrower’s title to or Administrative Agent’s interest in the Security Account Collateral;

               (d) following the creation of each Security Account established by or for Borrower and the
initial funding thereof, other than to Administrative Agent pursuant to the Cash Management
Agreement or this Agreement, not to transfer, assign, sell, surrender, encumber, mortgage,
hypothecate, or otherwise dispose of any of the Security Account Collateral or rights or interests
therein, and to keep the Security Account Collateral free of all levies and security interests or
other liens or charges except the security interest in favor of Administrative Agent granted
hereunder;

               (e) to account fully for and promptly deliver to Administrative Agent, in the form received,
all documents, chattel paper, instruments and agreements constituting the Security Account
Collateral hereunder, endorsed to Administrative Agent or in blank, as requested by Administrative
Agent, and accompanied by such powers as appropriate and until so delivered all such documents,
instruments, agreements and proceeds shall be held by Borrower in trust for Administrative Agent,
separate from all other property of Borrower; and

               (f) from time to time upon request by Administrative Agent, to furnish such further assurances
of Borrower’s title with respect to the Security Account Collateral, execute such written
agreements, or do such other acts, all as may be reasonably necessary to effectuate the purposes of
this agreement or as may be required by law, or in order to perfect or continue the first-priority
lien and security interest of Administrative Agent in the Security Account Collateral.

          (3) Rights on Event of Default. Upon the occurrence and during the continuance of an Event of
Default, Administrative Agent, at its option, may withdraw the funds in any Security Account and
apply such funds to the items for which the Security Accounts were established or to payment of the
Loans in such order, proportion and priority as Administrative Agent may determine in its
discretion. Administrative Agent’s right to withdraw and apply such

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funds shall be in addition to
all other rights and remedies provided to Administrative Agent on behalf of the Lenders under the
Cash Management Agreement and the other Loan Documents.

          (4) Prohibition Against Further Encumbrance. Borrower shall not, without the prior written
consent of Administrative Agent, further pledge, assign or grant any security interest in the
Security Account Collateral or permit any Lien to attach thereto, or any levy to be made thereon,
or any Uniform Commercial Code financing statements, except those naming Administrative Agent on
behalf of the Lenders as the secured party, to be filed with respect thereto.

          (5) Release of Funds in Security Accounts. Any amount remaining in the Security Accounts
after the Loans have been paid in full shall promptly be returned to the Lead Borrower.

ARTICLE 16

CONTROLLED ACCOUNTS

     Section 16.1 Controlled Accounts. Borrower hereby agrees with Administrative Agent, as to any
Controlled Account into which this Agreement requires Borrower to deposit funds, as follows:

          (1) Establishment and Maintenance of the Controlled Account.

               (a) Each Controlled Account (i) shall be established at, and a separate and identifiable
account from all other funds held by, a Depository Bank and (ii) shall contain only funds required
to be deposited pursuant to this Agreement or any other Loan Document. Any interest which may
accrue on the amounts on deposit in a Controlled Account shall be added to and shall become part of
the balance of such Controlled Account. Borrower, Administrative Agent and the applicable
Depository Bank shall enter into an agreement (a “Controlled Account Agreement”),
substantially in the form of Exhibit G attached hereto (with such changes thereto as may be
required by such Depository Bank and satisfactory to Administrative Agent) which shall govern such
Controlled Account and the rights, duties and obligations of each party to such Controlled Account
Agreement.

               (b) Each Controlled Account shall be established in the name of Administrative Agent, as agent
for the Lenders and shall be subject to the sole dominion, control and discretion of Administrative
Agent, provided, however that Administrative Agent shall act in accordance with the provisions of
this Agreement. Neither Borrower nor any other Person, including, without limitation, any Person
claiming on behalf of or through Borrower, shall have any right or authority, whether express or
implied, to make use of or withdraw, or cause the use or withdrawal of, any proceeds from any
Controlled Account or any of the other proceeds deposited therein, except as expressly provided in
this Agreement or in the applicable Controlled Account Agreement.

          (2) Deposits to and Disbursements from the Controlled Account. All deposits to and
disbursements of all or any portion of the deposits to any Controlled Account shall be in
accordance with this Agreement and the applicable Controlled Account Agreement.

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Borrower shall pay
any and all fees charged by Depository Bank in connection with the
maintenance of each Controlled Account required to be established by or for it hereunder, and
the performance of the Depository Bank’s duties.

          (3) Security Interest.

               (a) Borrower hereby grants a perfected first priority security interest in favor of
Administrative Agent for the ratable benefit of the Lenders in each Controlled Account established
by or for it hereunder and all financial assets and other property and sums at any time held,
deposited or invested therein, and all security entitlements and investment property relating
thereto, together with any interest or other earnings thereon, and all proceeds thereof, whether
accounts, general intangibles, chattel paper, deposit accounts, instruments, documents or
securities (collectively, “Controlled Account Collateral”), together with all rights of a
secured party with respect thereto under the Uniform Commercial Code, as security for the
obligations of Borrower under the Loan Documents.

               (b) All interest earned on any Controlled Account shall be retained in such Controlled
Account. Borrower shall treat all interest earned on its Controlled Account as its income for
federal income tax purposes.

               (c) While any Event of Default exists, Administrative Agent shall be entitled to exercise all
rights of a secured party under the Uniform Commercial Code with respect to each Controlled
Account, and (without limiting the foregoing) may apply the Controlled Account Collateral to the
unpaid obligations of Borrower under the Loan Documents in such order as Administrative Agent may
elect in its sole discretion, without liability for any loss, and Borrower hereby consents to any
such withdrawal and application as a commercially reasonable disposition of such funds and agrees
that such withdrawal shall not result in satisfaction of such obligations except to the extent the
proceeds are applied to such sums.

ARTICLE 17

CONDOMINIUM PROVISIONS

     Section 17.1 Establishment; Covenants

          (1) Subject to the terms and conditions hereof, including without limitation, Section 17.2,
Lead Borrower shall have the right, with the prior written approval of the Administrative Agent, to
establish a condominium regime with respect to its ownership of the Project.

          (2) Lead Borrower covenants and agrees with the Lenders and Administrative Agent that, in the
event that it establishes a condominium regime pursuant to Section 17.1, Lead Borrower shall:

               (a) Submit the Project, together with all of the Improvements constructed or to be constructed
thereon, to the provisions of the Condominium Act and satisfy all of the requirements thereof and
of any other Applicable Law necessary to create a valid condominium regime inclusive of all of the
Units; and obtain any required approval of the 

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Condominium Documents from the Attorney General of
the State of New York. Any
Condominium Documents and any modifications or amendments thereto shall be reasonably approved
by Administrative Agent prior to the recording, filing or effectiveness thereof, provided that in
the case of any such amendment which shall increase the number of condominium units, in the event
that a casualty or condemnation has occurred and the provisions of Article 3 prevent
restoration in connection with such casualty or condemnation, then prior to the recording, filing
or effectiveness, as applicable, of such amendment, Lead Borrower, at Administrative Agent’s
option, shall be prohibited from recording, filing or otherwise causing the amendment to become
effective and Administrative Agent, at the Majority Lenders’ election, shall be permitted to vote,
on Lead Borrower’s behalf in accordance with the Voting Proxy delivered to Administrative Agent, or
require Lead Borrower to vote, to terminate and dissolve the Condominium. In connection with such
amendment, Lead Borrower shall provide updates of the documents and opinion provided herein in the
event that the Condominium Declaration has been modified or amended or any of the officers,
managers or directors have changed as a result of such amendment;

               (b) Duly perform or cause to be duly performed, in all material respects, all obligations of
the developers or sponsors under the Condominium Documents, and do or cause to be done all things
necessary to operate and maintain the Project and the Condominium as a retail condominium project,
that are required to be done by the developers or sponsors and comply with all Applicable Laws
applicable to the Condominium, and furnish such evidence of compliance therewith as Administrative
Agent may reasonably request;

               (c) Subject to Administrative Agent’s approval in its reasonable discretion, not cancel,
terminate or revoke, or modify, or in any way alter or permit the alteration of, any of the
material provisions of the Condominium Documents or grant any consents or waivers thereunder, and
not to exercise any right it may have under the Condominium Documents to cancel, terminate or
revoke the same. Any request for approval by Administrative Agent pursuant to this paragraph shall
be made to, and approved by, Administrative Agent prior to, if necessary, submitting such request
to the Attorney General of the State of New York; and

     Section 17.2 Subordination of Lien to Project Condominium Declarations. Provided there exists
no Potential Default or Event of Default, Administrative Agent shall, on Lead Borrower’s written
request, subordinate the liens of the Mortgages to the Condominium Declaration and shall execute
the appropriate instruments (reasonably satisfactory to the Administrative Agent in all respects)
in recordable form to effect such subordination, upon the satisfaction of the following conditions:

          (1) The Administrative Agent shall have received and approved the Condominium Documents, which
shall be in proper form for recording or filing, as necessary, in the appropriate offices, and
certified by an officer of Lead Borrower as true, correct and complete copies of the Condominium
Documents;

          (2) The Title Policies insuring the Mortgages shall have been endorsed to provide a
condominium endorsement and non-impairment of lien endorsement (or equivalent affirmative coverage)
(which endorsements and affirmative coverage, if applicable, shall not extend the effective date of
the Title Policies);

126

 

          (3) The Lead Borrower shall have caused to be duly executed and delivered to Administrative
Agent (i) an Assignment of Declarant’s Rights in the form of Exhibit H, (ii) conditional
resignations of the officers and managers of the Board of Directors of the applicable condominium
association in the form of Exhibits I and J, respectively, to the extent designated
by the Lead Borrower, (iii) a proxy from the Lead Borrower and each representative of the Lead
Borrower on such Board of Directors in the form of Exhibit K and (iv) a letter from all the
members of such Board of Directors with respect to common charges substantially in the form of
Exhibit L;

          (4) Administrative Agent shall have received an opinion from the Condominium’s counsel to the
effect that (i) the Condominium Documents satisfy all applicable requirements of Governmental
Authorities, (ii) all requirements of any Applicable Law have been duly satisfied with respect to
the creation of the Condominium by the Lead Borrower in New York State and (iii) the documents
referred to in this Section 17.2(4) have each been duly authorized, executed and delivered
by the respective parties thereto and are enforceable against said parties in accordance with their
respective terms subject to customary limitations; and

          (5) The condominium association which shall be created by the Condominium Documents shall have
furnished to Administrative Agent at no cost or expense to Administrative Agent, insurance policies
for the insurance required hereunder and under the Condominium Documents, with extended coverage
naming Administrative Agent, said condominium association, and Borrower (as owner of the Units), as
their respective interests may appear, as the insureds, covering all of the Improvements; said
insurance shall at all times be an amount equal to 100% of the insurable value of the Improvements
and shall otherwise comply with the applicable conditions contained in the Mortgages and elsewhere
in this Agreement.

     Section 17.3 Transfer of Collateral. The Lead Borrower will, upon the creation of the
condominium regime, transfer its ownership interest in the Unit containing the Office Component (a
“Property Transfer”) to Fordham Office. Lead Borrower shall only affect such a transfer
after Lead Borrower has provided written notice to Administrative Agent that each of the following
conditions precedent has been satisfied with respect to such Property Transfer (hereinafter, singly
and collectively, the “Property Transfer Conditions”):

          (1) The Lead Borrower shall have provided Administrative Agent with at least ten (10) Business
Days’ notice of the intended Property Transfer;

          (2) The construction of the Improvements shall have commenced and shall have proceeded in
accordance with the terms and conditions hereof to a sufficient stage of completion acceptable to
Administrative Agent, in its reasonable discretion;

          (3) The Borrower shall have executed and delivered, or caused the execution and delivery of,
any and all easements and any other matters as to which the Unit is either the servient or the
dominant estate, that are necessary for the ownership, construction, use or operation of the
Improvements;

          (4) The Borrower and Guarantor shall have executed and delivered to Administrative Agent such
instruments, documents, agreements, and certifications as

127

 

Administrative Agent shall have
reasonably requested to effectuate, evidence or confirm the Property Transfer and the
Administrative Agent’s rights or remedies under the Loan Documents, including without limitation an
amendment to each of the Mortgages, but in no way expanding or modifying the obligations of such
Borrower or Guarantor hereunder or under the Loan Documents;

          (5) Borrower shall have delivered to the Administrative Agent such documents, instruments,
materials and further estoppels and certifications as Administrative Agent shall have determined
are reasonably required to approve or consent to, to the extent required, the applicable Property
Transfer and any requested endorsement(s) to the Title Policies delivered to Administrative Agent
pursuant to Schedule 4 — Part A, Paragraph 10; and

          (6) Borrower shall have paid all costs and expenses incurred by Administrative Agent in
connection with any Property Transfer, including, without limitation, Administrative Agent’s
reasonable attorneys’ fees and costs.

[Signature Pages Follow]

128

 

     EXECUTED as of the date first written above.

	 	 	 	 	 	 	 
	LENDER:

	 	EUROHYPO AG, NEW YORK BRANCH
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	Address for Notices to Eurohypo AG, New York Branch:	 	 
	 
	 	 	 	 	 	 
	 

	 	Eurohypo AG, New York Branch

1114 Avenue of the Americas, 29th Floor 

New York, New York 10036

Attention: Legal Director 

Telecopier No.: 866 267 7680	 	 
	 
	 	 	 	 	 	 
	 

	 	With copies to:	 	 
	 
	 	 	 	 	 	 
	 

	 	Eurohypo AG, New York Branch 

1114 Avenue of the Americas, 29th Floor 

New York, New York 10036

Attention: Head of Portfolio Operations 

Telecopier No.: 866 267 7680	 	 
	 
	 	 	 	 	 	 
	 

	 	— and —	 	 
	 
	 	 	 	 	 	 
	 

	 	Riemer & Braunstein LLP 

Times Square Tower, Suite 2506

Seven Times Square 

New York, New York 10036

Attention: Steven J. Weinstein, Esq. 

Telecopier No.: (617) 692-3503	 	 

129

 

	 	 	 	 	 	 	 
	BORROWER:

	 	ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC,

a Delaware limited liability company
	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Robert Masters

Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 

	 	c/o Acadia Realty
Trust

1311 Mamaroneck Avenue, Suite 260

White Plains, NY 10605

Attention: Robert Masters 

Telecopier No.: 914-428-3646	 	 
	 
	 	 	 	 	 	 
	 

	 	FORDHAM PLACE OFFICE, LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Robert Masters

Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	Address for Notices:
 	 	 
	 

	 	c/o Acadia Realty Trust 

1311 Mamaroneck Avenue, Suite 260

White Plains, NY 10605

Attention: Robert Masters 

Telecopier No.: 914-428-3646	 	 

130

 

	 	 	 	 	 	 	 
	ADMINISTRATIVE AGENT:

	 	EUROHYPO AG, NEW YORK BRANCH,

as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	Address for Notices to Eurohypo AG, New York
  Branch:
	 	
	 
	 	 	 	 	 	 
	 

	 	Eurohypo AG, New York
Branch 

1114 Avenue of the Americas, 29th Floor 

New York, New York 10036

Attention: Legal Director 

Telecopier No.: 866 267 7680	 	 
	 
	 	 	 	 	 	 
	 

	 	With copies to:	 	 
	 
	 	 	 	 	 	 
	 

	 	Eurohypo AG, New York Branch 

1114 Avenue of the Americas, 29th Floor 

New York, New York 10036

Attention: Head of Portfolio Operations 

Telecopier No.: 866 267 7680	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	— and —	 	 
	 
	 	 	 	 	 	 
	 

	 	Riemer & Braunstein LLP

Times Square Tower, Suite 2506

Seven Times Square 

New York, New York 10036

Attention: Steven J. Weinstein, Esq. 

Telecopier No.: (617) 692-3503	 	 

131

 

EXHIBIT A

LEGAL DESCRIPTION OF PROJECT

PARCEL I — (f/k/a LOT 8, Now Part of LOT 9)

ALL THAT CERTAIN piece or parcel of land, together with any improvements thereon situate, lying and
being in the Borough of the Bronx, City and State of New York, bounded and described as follows:

BEGINNING at a point on the easterly side of Webster Avenue (100 feet in width), said point being
distant south 08 degrees 26 minutes 11 seconds west, a distance of 254.35 feet from a point formed
by the intersection of said easterly side of Webster Avenue with the southerly side of East Fordham
Road (a/k/a Pelham Avenue variable in width) and from said point of beginning

RUNNING THENCE along the common dividing line between said Lot 8 and Lot 9 south 85 degrees 39
minutes 56 seconds east, a distance of 108.97 feet to a point;

THENCE along the common dividing line between said Lot 8 and Lot 12 south 04 degrees 33 minutes 31
seconds west, a distance of 24.68 feet to a point;

THENCE along the common dividing line between said Lots 8 and Lot 4 (lands now or formerly of
Automotive Realty Corporation) north 85 degrees 39 minutes 56 seconds west, a distance of 110.65
feet to a point; on the aforementioned easterly side of Webster Avenue;

THENCE along the easterly side of said Webster Avenue, north 08 degrees 26 minutes 11 seconds east,
a distance of 24.74 feet to the point or place of BEGINNING.

PARCEL II — LOT 9:

ALL THAT CERTAIN piece or parcel of land, together with any improvements thereon situate, lying and
being in the Borough of the Bronx, City and State of New York, and as further bounded and described
as follows:

BEGINNING at a point on the easterly side of Webster Avenue (100 feet wide), said point being
distant south 08 degrees 26 minutes 11 seconds west, a distance of 228.81 feet from a point formed
by the intersection of said easterly side of Webster Avenue with the southerly side of East Fordham
Road (a/k/a Pelham Avenue, variable width) and from said point of beginning;

RUNNING THENCE the following two (2) courses along the dividing line between Lot 9 (n/f reputed
owner Acadia-PA East Fordham Acquisitions, LLC and Lot 12 (n/f reputed owner Acadia-PA East Fordham
Acquisitions, LLC), Block 3033;

1. South 85 degrees 39 minutes 56 seconds east, a distance of 115.24 feet to a point; thence

2. South 03 degrees 58 minutes 56 seconds west, a distance of 25.48 feet to a point; thence

 

 

3. Along the common dividing line between the aforementioned Lot 9 and Lots 12 & 8 (n/f Acadia-PA
East Fordham Acquisitions LLC), Block 3033 north 85 degrees 39 minutes 56 seconds west, a distance
of 117.22 feet to a point on the aforementioned easterly side of Webster Avenue; thence

4. Along said easterly side of Webster Avenue, north 08 degrees 26 minutes 11 seconds east, a
distance of 25.54 feet to the point or place of BEGINNING.

This description is prepared in accordance with a Survey made by Control Point Associates Inc.
dated 8/30/07 and last revised 9/18/07 by Gregory A. Gallas NY P.L.S. (Control Point Associates
Inc.)

PARCEL III — LOT 12:

ALL THAT CERTAIN plot, piece or parcel of land, together with any improvements thereon situate,
situate, lying and being in the Borough and County of Bronx, City and State of New York, bounded
and described as follows:

BEGINNING at a point formed by the intersection of the easterly side of Webster Avenue (100 feet
wide) with the southerly side of East Fordham Road (A.K.A. Pelham Avenue, Variable Width) and from
said point of beginning.

RUNNING THENCE the following three (3) courses along said southerly side of East Fordham Road;

1. South 84 degrees 34 minutes 46 seconds east, a distance of 43.27 feet to a point, THENCE

2. South 54 degrees 01 minute 22 seconds east, a distance of 29.77 feet to a point; THENCE;

3. South 40 degrees 09 minutes 32 seconds east, a distance of 85.32 feet to a point on the
westerly side of Park Avenue (Variable Width) THENCE

4. Along said westerly side of Park Avenue, south 00 degrees 10 minutes 48 seconds east, a
distance of 201.71 feet to a point THENCE

5. Along the dividing line between Lot 12 (Lands now or formerly of Acadia-PA East Fordham
Acquisitions LLC) and Lot 4 (Lands now or formerly of Automotive Realty Corporation), Block 3033,
North 85 degrees 39 minutes 56 seconds west, a distance of 53.59 feet to a point, THENCE

6. Along the common dividing line between the aforementioned Lot 12, Lot 8 (Land now or formerly
of Acadia-PA East Fordham Acquisitions LLC) and Lot 9 (lands now or formerly of Acadia-PA East
Fordham Acquisitions LLC) Block 3033, North 04 degrees 33 minutes 31 seconds east, a distance of
24.68 feet to a point, THENCE, The following three (3) courses along the dividing line between the
aforementioned Lots 12 and 9;

 

 

7. South 85 degrees 39 minutes 56 seconds east, a distance of 8.25 feet to a point, THENCE

8. North 03 degrees 58 minutes 56 seconds east, a distance of 25.48 feet to a point, THENCE

9. North 85 degrees 39 minutes 56 seconds west, a distance of 115.24 feet to a point on the
aforementioned easterly side of Webster Avenue, THENCE

10. Along said easterly side of Webster Avenue, north 08 degrees 26 minutes 11 seconds east, a
distance of 228.81 feet to the point and place of BEGINNING.

 

 

EXHIBIT B

BUDGET

 

 

EXHIBIT C-1

FORM OF PROJECT LOAN NOTE

PROJECT LOAN NOTE

			
	 	 	 
	$____________
	 	_________, 200_
	 
	 	New York, New York

     FOR VALUE RECEIVED, ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC, a Delaware limited liability
company and FORDHAM PLACE OFFICE LLC (individually and collectively, jointly and severally, the
“Borrower”), hereby promises to pay to ________________________
(the “Lender”), for account
of its respective Applicable Lending Offices provided for by the Agreement referred to below, at
the principal office of EUROHYPO AG, NEW YORK BRANCH, at 1114 Avenue of the Americas, 29th Floor,
New York, New York 10036, the principal sum of ____________and ____________Dollars ($____________)
(or such lesser amount as shall equal the aggregate unpaid principal amount of the Loans made by
the Lender to Borrower under the Agreement), in lawful money of the United States of America and in
immediately available funds, on the dates and in the principal amounts provided in the Agreement,
and to pay interest on the unpaid principal amount of each such Loan, at such office, in like money
and funds, for the period commencing on the date of such Loan until such Loan shall be paid in
full, at the rates per annum and on the dates provided in the Agreement.

     With respect to the definition of “Borrower”, except where the context otherwise provides, (i)
any representations contained herein of Borrower shall be applicable to each Borrower, (ii) any
affirmative covenants contained herein shall be deemed to be covenants of each Borrower and shall
require performance by all Borrowers, (iii) any negative covenants contained herein shall be deemed
to be covenants of each Borrower, and shall be breached if any Borrower fails to comply therewith,
(iv) the occurrence of any Event of Default with respect to any Borrower shall be deemed to be an
Event of Default hereunder, and (v) any Indebtedness and/or obligations of Borrower shall be deemed
to include any Indebtedness and/or obligations of the Borrowers, or any Indebtedness and/or
obligations of any one of them.

     The date, amount, Type, interest rate and duration of Interest Period (if applicable) of each
Loan made by the Lender to Borrower, and each payment made on account of the principal thereof,
shall be recorded by the Lender on its books and, prior to any transfer of this Note, endorsed by
the Lender on the schedule attached hereto or any continuation thereof, provided that the failure
of the Lender to make any such recordation or endorsement shall not affect the obligations of
Borrower to make a payment when due of any amount owing under the Agreement or hereunder in respect
of the Loans made by the Lender.

     This Project Loan Note is one of the Notes referred to in the Acquisition and Project Loan
Agreement dated as of the date hereof (as modified, supplemented, extended and in effect from time
to time, the “Agreement”) among Borrower, the lenders party thereto (including the Lender)
and Eurohypo AG, New York Branch, as Administrative Agent, and evidences Loans

Note
1

 

made by the Lender thereunder. Terms used but not defined in this Note have the respective
meanings assigned to them in the Agreement.

     The Agreement provides for the acceleration of the maturity of this Note upon the occurrence
of certain events and for prepayments of Loans upon the terms and conditions specified therein.

     Except as permitted by Sections 12.8 and 12.23 of the Agreement, this Note may not be assigned
by the Lender to any other Person.

     This Note shall be governed by, and construed in accordance with, the law of the State of New
York without regard to conflicts of laws principles other than Section 5-1401 of the General
Obligations Law of the State of New York.

     As long as a Hedge Agreement with the Eurohypo Counterparty is in effect, the interest payable
under this Note shall be increased or decreased from time to time in accordance with such Hedge
Agreement. Therefore, this Note also evidences such amounts as may become due and payable by
Borrower under the Hedge Agreement with the Eurohypo Counterparty, including, without limitation,
any amount payable upon or in connection with termination of such Hedge Agreement, all of which
sums shall be deemed to constitute “Additional Interest” evidenced hereby and payable pursuant to
this Note and in accordance with the terms and provisions of the Hedge Agreement with a Eurohypo
Counterparty.

[No further text on this page]

Note
2

 

     IN WITNESS WHEREOF, Borrower has executed and delivered this Note as of the date first above
written.

	 	 	 	 	 
	 	ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC, a
Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	Robert Masters 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	FORDHAM PLACE OFFICE LLC, a Delaware limited
liability company

 	 
	 	By:  	 	 
	 	 	Name:  	Robert Masters 	 
	 	 	Title:  	Senior Vice President 	 

Note
3

 

	 	 	 	 	 

EXHIBIT C-2

FORM OF BUILDING LOAN NOTE

BUILDING LOAN NOTE

			
	 	 	 
	$____________
	 	____________, 2007
	 
	 	New York, New York

     FOR VALUE RECEIVED, ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC, a Delaware limited liability
company and FORDHAM PLACE OFFICE LLC (individually and collectively, jointly and severally, the
“Borrower”), hereby promises to pay to _____________________(the “Lender”), for account
of its respective Applicable Lending Offices provided for by the Agreement referred to below, at
the principal office of EUROHYPO AG, NEW YORK BRANCH, at 1114 Avenue of the Americas, 29th Floor,
New York, New York 10036, the principal sum of
____________ and ____________Dollars ($____________)
(or such lesser amount as shall equal the aggregate unpaid principal amount of the Loans made by
the Lender to Borrower under the Agreement), in lawful money of the United States of America and in
immediately available funds, on the dates and in the principal amounts provided in the Agreement,
and to pay interest on the unpaid principal amount of each such Loan, at such office, in like money
and funds, for the period commencing on the date of such Loan until such Loan shall be paid in
full, at the rates per annum and on the dates provided in the Agreement.

     With respect to the definition of “Borrower”, except where the context otherwise provides, (i)
any representations contained herein of Borrower shall be applicable to each Borrower, (ii) any
affirmative covenants contained herein shall be deemed to be covenants of each Borrower and shall
require performance by all Borrowers, (iii) any negative covenants contained herein shall be deemed
to be covenants of each Borrower, and shall be breached if any Borrower fails to comply therewith,
(iv) the occurrence of any Event of Default with respect to any Borrower shall be deemed to be an
Event of Default hereunder, and (v) any Indebtedness and/or obligations of Borrower shall be deemed
to include any Indebtedness and/or obligations of the Borrowers, or any Indebtedness and/or
obligations of any one of them.

     The date, amount, Type, interest rate and duration of Interest Period (if applicable) of each
Loan made by the Lender to Borrower, and each payment made on account of the principal thereof,
shall be recorded by the Lender on its books and, prior to any transfer of this Note, endorsed by
the Lender on the schedule attached hereto or any continuation thereof, provided that the failure
of the Lender to make any such recordation or endorsement shall not affect the obligations of
Borrower to make a payment when due of any amount owing under the Agreement or hereunder in respect
of the Loans made by the Lender.

     This Building Loan Note is one of the Notes referred to in the Acquisition and Project Loan
Agreement dated as of the date hereof (as modified, supplemented, extended and in effect from time
to time, the “Agreement”) and the Building Loan Agreement, each among Borrower, the lenders
party thereto (including the Lender) and Eurohypo AG, New York Branch, as

Note
1

 

Administrative Agent, and evidences Loans made by the Lender thereunder. Terms used but not
defined in this Note have the respective meanings assigned to them in the Agreement.

     The Agreement provides for the acceleration of the maturity of this Note upon the occurrence
of certain events and for prepayments of Loans upon the terms and conditions specified therein.

     Except as permitted by Sections 12.8 and 12.23 of the Agreement, this Note may not be assigned
by the Lender to any other Person.

     This Note shall be governed by, and construed in accordance with, the law of the State of New
York without regard to conflicts of laws principles other than Section 5-1401 of the General
Obligations Law of the State of New York.

     As long as a Hedge Agreement with the Eurohypo Counterparty is in effect, the interest payable
under this Note shall be increased or decreased from time to time in accordance with such Hedge
Agreement. Therefore, this Note also evidences such amounts as may become due and payable by
Borrower under the Hedge Agreement with the Eurohypo Counterparty, including, without limitation,
any amount payable upon or in connection with termination of such Hedge Agreement, all of which
sums shall be deemed to constitute “Additional Interest” evidenced hereby and payable pursuant to
this Note and in accordance with the terms and provisions of the Hedge Agreement with a Eurohypo
Counterparty.

[No further text on this page]

Note
2

 

     IN WITNESS WHEREOF, Borrower has executed and delivered this Note as of the date first above
written.

	 	 	 	 	 
	 	ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC, a
Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	Robert Masters 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	FORDHAM PLACE OFFICE LLC, a Delaware limited

liability company

 	 
	 	By:  	 	 
	 	 	Name:  	Robert Masters 	 
	 	 	Title:  	Senior Vice President 	 

Note
3

 

	 	 	 	 	 

EXHIBIT C-3

FORM OF ACQUISITION LOAN NOTE

ACQUISITION LOAN NOTE

			
	 	 	 
	$____________
	 	____________, 2007
	 
	 	New York, New York

     FOR VALUE RECEIVED, ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC, a Delaware limited liability
company and FORDHAM PLACE OFFICE LLC (individually and collectively, jointly and severally, the
“Borrower”), hereby promises to pay to _____________________(the “Lender”), for account of its
respective Applicable Lending Offices provided for by the Agreement referred to below, at the
principal office of EUROHYPO AG, NEW YORK BRANCH, at 1114 Avenue of the Americas, 29th Floor, New
York, New York 10036, the principal sum of _________and _________Dollars ($_________) (or
such lesser amount as shall equal the aggregate unpaid principal amount of the Loans made by the
Lender to Borrower under the Agreement), in lawful money of the United States of America and in
immediately available funds, on the dates and in the principal amounts provided in the Agreement,
and to pay interest on the unpaid principal amount of each such Loan, at such office, in like money
and funds, for the period commencing on the date of such Loan until such Loan shall be paid in
full, at the rates per annum and on the dates provided in the Agreement.

     With respect to the definition of “Borrower”, except where the context otherwise provides, (i)
any representations contained herein of Borrower shall be applicable to each Borrower, (ii) any
affirmative covenants contained herein shall be deemed to be covenants of each Borrower and shall
require performance by all Borrowers, (iii) any negative covenants contained herein shall be deemed
to be covenants of each Borrower, and shall be breached if any Borrower fails to comply therewith,
(iv) the occurrence of any Event of Default with respect to any Borrower shall be deemed to be an
Event of Default hereunder, and (v) any Indebtedness and/or obligations of Borrower shall be deemed
to include any Indebtedness and/or obligations of the Borrowers, or any Indebtedness and/or
obligations of any one of them.

     The date, amount, Type, interest rate and duration of Interest Period (if applicable) of each
Loan made by the Lender to Borrower, and each payment made on account of the principal thereof,
shall be recorded by the Lender on its books and, prior to any transfer of this Note, endorsed by
the Lender on the schedule attached hereto or any continuation thereof, provided that the failure
of the Lender to make any such recordation or endorsement shall not affect the obligations of
Borrower to make a payment when due of any amount owing under the Agreement or hereunder in respect
of the Loans made by the Lender.

     This Acquisition Loan Note is one of the Notes referred to in the Acquisition and Project Loan
Agreement dated as of the date hereof (as modified, supplemented, extended and in effect from time
to time, the “Agreement”) among Borrower, the lenders party thereto (including the

Note
4

 

Lender) and Eurohypo AG, New York Branch, as Administrative Agent, and evidences Loans made by
the Lender thereunder. Terms used but not defined in this Note have the respective meanings
assigned to them in the Agreement.

     The Agreement provides for the acceleration of the maturity of this Note upon the occurrence
of certain events and for prepayments of Loans upon the terms and conditions specified therein.

     Except as permitted by Sections 12.8 and 12.23 of the Agreement, this Note may not be assigned
by the Lender to any other Person.

     This Note shall be governed by, and construed in accordance with, the law of the State of New
York without regard to conflicts of laws principles other than Section 5-1401 of the General
Obligations Law of the State of New York.

     As long as a Hedge Agreement with the Eurohypo Counterparty is in effect, the interest payable
under this Note shall be increased or decreased from time to time in accordance with such Hedge
Agreement. Therefore, this Note also evidences such amounts as may become due and payable by
Borrower under the Hedge Agreement with the Eurohypo Counterparty, including, without limitation,
any amount payable upon or in connection with termination of such Hedge Agreement, all of which
sums shall be deemed to constitute “Additional Interest” evidenced hereby and payable pursuant to
this Note and in accordance with the terms and provisions of the Hedge Agreement with a Eurohypo
Counterparty.

[No further text on this page]

Note
5

 

     IN WITNESS WHEREOF, Borrower has executed and delivered this Note as of the date first above
written.

	 	 	 	 	 
	 	ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC, a
Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	Robert Masters 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	FORDHAM PLACE OFFICE LLC, a Delaware limited

liability company

 	 
	 	By:  	 	 
	 	 	Name:  	Robert Masters 	 
	 	 	Title:  	Senior Vice President 	 

Note
6

 

	 	 	 	 	 

EXHIBIT D

FORM OF ASSIGNMENT AND ASSUMPTION

ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the
“Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used
but not defined herein shall have the meanings given to them in the Loan Agreements identified
below (as amended, the “Loan Agreements”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment
and Assumption as if set forth herein in full.

     For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Loan Agreements, as of the
Effective Date inserted by Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Lender under the Loan Agreements and any other
documents or instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and obligations of the
Assignor under the respective facilities identified below (including any letters of credit included
in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all
claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender)
against any Person, whether known or unknown, arising under or in connection with the Loan
Agreements, any other documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing, including contract
claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity
related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights
and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as the “Assigned Interest”). Such sale and assignment is without recourse to
the Assignor and, except as expressly provided in this Assignment and Assumption, without
representation or warranty by the Assignor.

	 	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	Assignor:	 	                                                                                
	 
	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Assignee:
	 	                                                                                
	 

	 	 	 	 	 	 	 	[and is an Approved Fund or an Affiliate of

[identify Lender]1]
	 
	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Borrower:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Administrative Agent:
	 	Eurohypo, AG, New York Branch, as administrative

agent under the Loan Agreements

 

			
	1	 	Select as applicable.

Assignment and Assumption
1

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	5.	 	 	Construction Loan Agreement:
	 	The (i) $_________
Acquisition and Project
Loan Agreement and (ii) $_________
Building Loan Agreement, each dated as of _________
___, 200___, among Borrower, the Lenders parties thereto, and Eurohypo, AG, New York
Branch, as Administrative Agent
	 
	 	 	 	 	 	 	 	 
	 
	 	 	6.	 	 	Assigned Interest:	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount	 	 	 	 	 	 	Amount of	 	 	Percentage	 
	 	 	of	 	 	Amount of	 	 	Unused	 	 	Assigned of	 
	Commitment/	 	Commitment/Loans	 	 	Loans	 	 	Commitment	 	 	Commitment	 
	Loans Assigned	 	for all Lenders	 	 	Assigned	 	 	Assigned	 	 	and Loans2	 
	Acquisition Loan
	 	$	 	 	 	$	 	 	 	$	 	 	 	 	%	 
	Project Loan
	 	$	 	 	 	$	 	 	 	$	 	 	 	 	%	 
	Building Loan
	 	$	 	 	 	$	 	 	 	$	 	 	 	 	%	 

     
Effective Date: _________ ______, 20___[TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

     The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Applicable Lending Office

Address for Notices:
 	 

 

			
	2	 	Set forth, to at least 9 decimals, as a percentage of
the Commitment/Loans of all Lenders thereunder.

Assignment and Assumption
2

 

Telephone No.: ( )

Telecopier No.: ( )

	 	 	 	 	 
	[Consented to and]3 Accepted:

EUROHYPO AG, NEW YORK BRANCH, as

Administrative Agent

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

 

			
	3	 	To be added only if the consent of Administrative Agent
is required by the terms of the Loan Agreements.

Assignment and Assumption
3

 

ANNEX 1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

          1. Representations and Warranties.

          1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Loan Agreements or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial
condition of Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective obligations under any
Loan Document.

          1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Loan Agreements, (ii) it satisfies the requirements, if any, specified in the Loan Agreements that
are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender,
(iii) from and after the Effective Date, it shall be bound by the provisions of the Loan Agreements
as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a
Lender thereunder, (iv) it has received a copy of the Loan Agreements, together with copies of the
most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and
such other documents and information as it has deemed appropriate to make its own credit analysis
and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on
the basis of which it has made such analysis and decision independently and without reliance on
Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, attached to the
Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms
of the Loan Agreements, duly completed and executed by the Assignee; and (b) agrees that (i) it
will, independently and without reliance on Administrative Agent, the Assignor or any other Lender,
and based on such documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it
will perform in accordance with their terms all of the obligations which by the terms of the Loan
Documents are required to be performed by it as a Lender.

          2. Payments. From and after the Effective Date, Administrative Agent shall make all
payments in respect of the Assigned Interest (including payments of principal, interest, fees and
other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date
and to the Assignee for amounts which have accrued from and after the Effective Date.

 

 

          3. General Provisions. This Assignment and Assumption shall be binding upon, and inure
to the benefit of, the parties hereto and their respective successors and assigns. This Assignment
and Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of New York.

 

 

EXHIBIT E

FORM OF NOTICE OF CONVERSION/CONTINUATION

____________, 200_

Eurohypo AG, New York Branch, as Administrative Agent

1114 Avenue of the Americas, 29th Floor

New York, New York 10036

Attn: ________________________

	Re: 	 	(i) Acquisition and Project Loan Agreement
dated as of October ___, 2007 (as the same may
be amended, modified or supplemented from time
to time, the “Agreement”) and (ii) Building
Loan Agreement, dated as of October ___, 2007,
each by and among ACADIA-PA EAST FORDHAM
ACQUISITIONS, LLC, a Delaware limited
liability company and FORDHAM PLACE OFFICE
LLC, a Delaware limited liability company
(jointly and severally, individually and
collectively the “Borrower”), the lenders from
time to time party to the Agreement (the
“Lenders”), and EUROHYPO AG, NEW YORK BRANCH,
as Administrative Agent on behalf of the
Lenders (the “Administrative Agent”)

Ladies and Gentlemen:

     Reference is made to the Agreement. Capitalized terms used in this Notice of
Conversion/Continuation without definition have the meanings specified in the Agreement.

     Pursuant to Section 2.2 of the Agreement, Borrower hereby elects to convert or
continue the loans described in attached Schedule 1 (the “Loans”). In connection
therewith, Borrower and the undersigned authorized officer of Borrower hereby certify that:

     (1) Representations and Warranties. All representations and warranties of Borrower
contained in the Loan Documents, including those contained in Article 7 of the Agreement, are true
and correct as of the date hereof and shall be true and correct on the date of the
continuation/conversion of the Loans, both before and after giving effect to such
continuation/conversion; and

     (2) No Event of Default. No Event of Default exists as of the date hereof or will
result from the continuation/conversion of the Loans.

	 	 	 	 	 
	 	ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC, a
Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

Schedule 1

to Notice of Conversion/Continuation

LOAN(S) TO BE CONVERTED OR CONTINUED

	A.	 	All conversions and continuations must be of a Loan, or portion thereof, in a principal
amount of $1,000,000 or a multiple of $100,000 in excess thereof.

	B.	 	Conversions/continuations to a Eurodollar Loan under paragraphs C(1) and (2) below are not
permitted if, after giving effect to thereto, (a) there would be more than four (4) different
Eurodollar Loans in effect, or (b) the aggregate outstanding principal amount of all
Eurodollar Loans would be reduced to be less than $1,000,000.

	C.	 	Pursuant to Section 2.2 of the Agreement, Borrower elects to Continue or Convert
Loans as follows:

	 	(1)	 	Effective Date of Election: _________ ___, 200_
	 
	 	(2)	 	Amount, Type and Interest Period of Eurodollar Loans to be Continued as
Eurodollar Loans:

	 	(i)	 	Eurodollar Loans in the aggregate amount of $_________ to be
Continued as Eurodollar Loans with an Interest Period of _____ months, such
Eurodollar Loans consisting of the following Loans:
	 
	 	 	 	Project Loans:           $_________
	 
	 	 	 	Building Loans:        $_________
	 
	 	 	 	Acquisition Loans:   $_________

	 	(3)	 	Amount, Type and Interest Period of Alternate Base Rate Loans to be
Converted to Eurodollar Loans:

	 	(i)	 	Alternate Base Rate Loans in the aggregate amount of
$_________ to be Converted to Eurodollar Loans with an Interest period of
___ months, such Alternate Base Rate Loans consisting of the following Loans:
	 
	 	 	 	Project Loans:           $_________
	 
	 	 	 	Building Loans:        $_________
	 
	 	 	 	Acquisition Loans:   $_________

	 	(4)	 	Amount and Type of Eurodollar Loans to be Converted to Alternate Base Rate
Loans:

	 	(i)	 	Eurodollar Loans in the aggregate amount of $_________ to be
Converted to Alternate Base Rate Loans, such Eurodollar Loans consisting of the
following Loans:
	 
	 	 	 	Project Loans:           $_________
	 
	 	 	 	Building Loans:        $_________
	 
	 	 	 	Acquisition Loans:   $_________

1

 

EXHIBIT F-1

FORM OF REQUEST FOR LOAN ADVANCE (PROJECT LOANS)

REQUEST FOR LOAN ADVANCE (PROJECT LOANS)

_______________, 200_

Eurohypo AG, New York Branch, as Administrative Agent

1114 Avenue of the Americas, 29th Floor

New York, New York 10036

Attn: ________________________

	Re: 	 	Eurohypo AG, New York Branch, as
Administrative Agent, Loans in the aggregate
amount of $_________ to _______________
	 
	 	 	Project:

Ladies and Gentlemen:

     Reference is made to that certain (i) Acquisition and Project Loan Agreement dated October
___, 2007 among Eurohypo AG, New York Branch, as Administrative Agent, certain lenders thereto,
Fordham Place Office LLC and the undersigned (the “Loan Agreement”) and (ii) Building Loan
Agreement, dated October ___, 2007 among Eurohypo AG, New York Branch, as Administrative Agent,
certain lenders thereto, Fordham Place Office LLC and the undersigned (the “Building Loan
Agreement”). Terms not defined in this Request for Loan Advance shall have the same meaning as
in the Loan Agreement.

     This Request for Loan Advance (Project Loans) (i) is request No. _________ under the Loan
Agreement with respect to Project Loans, (ii) constitutes Borrower’s request to borrow Project
Loans in the amounts and in the manner set forth below and (iii) is otherwise subject to the terms
of the Loan Agreement. The information relating to the proposed Project Loans is as follows:

	 	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	The date of the proposed Project Loans is _________, ______.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	The aggregate amount of the proposed Project Loans (after
deducting an aggregate Retainage of $_________) is
	 	$_________.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	The aggregate amount of the proposed Project Loans which
are to bear interest as Base Rate Loans is
	 	$_________.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	The aggregate amount of the proposed Project Loans which
are to bear interest as Eurodollar Loans is
	 	$_________.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	5.	 	 	The Interest Periods and the aggregate amount of the
proposed Eurodollar Loans with respect to each such Interest Period
are as follows:	 	 

1

 

	 	 	 	 	 
	 
	 	— 1 month	 	$_________.
	 
	 	— 2 month	 	$_________.
	 
	 	— 3 month	 	$_________.
	 
	 	— 6 month	 	$_________.
	 
	 	— 9 month	 	$_________.
	 
	 	— 12 month	 	$_________.

     6. The aggregate amount of Project Loans requested hereunder, when added to prior (if any)
Project Loans funded under the Loan Agreement, will result in total Project Loans outstanding under
the Loan Agreement of $_________. Funds undrawn under the aggregate Project Loan Commitments after
giving effect to the Project Loans requested hereunder will then be $_________.

Attached to this Request for Loan Advance are the following items:

	 	A.	 	To the extent not previously delivered to Administrative Agent, for funds due
under the Construction Management Agreement, copies of the Construction Manager’s
invoices relating to payments requested under this Request for Loan Advance, together
with paid invoices evidencing payment of funds previously advanced to the Construction
Manager pursuant to Project Loans;
	 
	 	B.	 	To the extent not previously delivered to Administrative Agent, for funds paid
directly by Borrower, copies of all invoices relating to payments requested under this
Request for Loan Advance, together with paid invoices evidencing payment of funds
previously advanced to Borrower pursuant to Project Loans;
	 
	 	C.	 	Copy of the Budget attached as Schedule 1 hereto, showing the portion
of each budget line item comprising the aggregate Project Loans subject to this request
and any Retainage with respect thereto, and the total of all Project Loans to date,
inclusive of the Project Loans subject to this request;
	 
	 	D.	 	If this Request for Loan Advance covers any stored materials under Section
4.8 of the Building Loan Agreement, a Stored Materials Statement in the form of
Schedule 2 attached thereto.
	 
	 	E.	 	Copies of sworn unconditional lien wavers from each trade contractor,
subcontractor, materialman, supplier and vendor who is to be paid from the proceeds of
this Advance, to the extent not previously delivered to Administrative Agent;
	 
	 	F.	 	Borrower’s Architect’s Certificate for Payment in accordance with AIA Document
G 702;
	 
	 	G.	 	Requisition form duly executed by the Construction Manager; and
	 
	 	H.	 	Copies of all other documents required pursuant to Article IV and
Schedule 4 of the Loan Agreement.

2

 

     In connection with this advance, Borrower hereby certifies that the following are true and
correct:

	 	I.	 	To the best of its knowledge, the facts set forth in the Construction Manager’s
invoices and in Schedule 1 and Schedule 2;
	 
	 	II.	 	Except for contractors, subcontractors, materialmen, suppliers or vendors who
are to be paid from proceeds of the Project Loans requested hereunder, there is no
outstanding Indebtedness of the undersigned for labor, wages or materials in connection
with the construction of the Improvements which is currently due, excluding work that
is being contested in good faith, and which could become the basis of a Lien on the
Project;
	 
	 	III.	 	All sums previously requisitioned have been applied to the payment of the Hard
Costs and the Soft Costs, excluding work that is being contested in good faith,
heretofore incurred;
	 
	 	IV.	 	All Change Orders have been submitted to Administrative Agent and the
Construction Consultant and all Change Orders for which a Project Loan is requested
hereby have been approved by Administrative Agent and the Construction Consultant to
the extent required by the Loan Agreement;
	 
	 	V.	 	In the judgment of Borrower, the Improvements are ______% complete; and
	 
	 	VI.	 	To the best of its knowledge, Borrower is not in Potential Default or Event of
Default under any of the terms and conditions of the Loan Documents;
	 
	 	VII.	 	After giving effect to this advance, the Loans will remain In Balance, in
accordance with Section 4.3 of the Loan Agreement, and all conditions to this
advance have been satisfied in accordance with Section 4.1 of the Loan
Agreement;
	 
	 	VIII.	 	Each representation and warranty of Borrower set forth in the Loan Agreement
remains true and correct in all material respects as of the date of this Request for
Loan Advance and will be so on the date of disbursement of the requested Loan, except
with respect to (a) matters which have been disclosed in writing to and approved by
Administrative Agent (subject, however, to the terms of the Loan Agreement) or (b)
liens of mechanics and materialmen (subject to Schedule 4 — Part A, [paragraph
3]) and matters addressed in Section 3.1 of the Loan Agreement, which would
not, if adversely decided, have a Material Adverse Effect;
	 
	 	IX.	 	No litigation or arbitral proceedings are pending or, to the best of Borrower’s
knowledge, threatened against Borrower, Guarantor or the Property Manager, which is
likely to (1) affect the validity or priority of the liens of the Mortgages or (2) or,
if adversely decided, have a Material Adverse Effect; and

3

 

	 	X.	 	All Government Approvals, to the extent then required for the construction of
the Construction Work, have been obtained and that all Applicable Laws relating to the
construction and operation of the Project have been and will continue to be complied
with.

The undersigned requests that the requested Project Loans be advanced by depositing the same into
Borrower’s account to be designated by Borrower (Account No. _________). The person signing this
Request for Loan Advance (Project Loans) on behalf of Borrower represents and warrants to you that
such person is authorized to execute this letter on behalf of Borrower.

[Signature Page Follows]

4

 

	 	 	 	 	 
	 	ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC,
a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	RECEIVED:

EUROHYPO AG, NEW YORK BRANCH,

as Administrative Agent

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	 	 	 
	By:  	
 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

	cc: 	 	[CONSTRUCTION CONSULTANT] (with attachments)

5

 

SCHEDULE 1 — to Request for Loan Advance

[Attach form of Budget Outline to be Used]

 

 

Page _____ of _____ Pages

SCHEDULE 2 — to Request for Loan Advance

STORED MATERIALS STATEMENT NO.

			
	 	 	 
	Borrower: ____________
	 	Period Covered (PC): From ______ To ______
	 	 	 
	Project: ____________
	 	Date: ____________
	 	 	 
	Address: ____________	 	 

	 	 	 
	 	 	DESCRIPTION OF MATERIALS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	STORED (ATTACH INVOICES,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	RETAINED
	 	 	LISTINGS AND/OR OTHER	 	 	LOCATION	 	 	NAME OF SUB-	 	 	 	 	 	ADDITIONS	 	 	 	 	 	 	 	 	AMOUNT
	 	 	PRICE SUPPORTING	 	 	WHERE	 	 	CONTRACTOR	 	 	OPENING	 	 	TO	 	 	USAGE OF	 	 	CLOSING	 	 	NOT YET
	ITEM NO.	 	DOCUMENTATION	 	 	STORED	 	 	/SUPPLIER	 	 	INVENTORY	 	 	INVENTORY	 	 	INVENTORY	 	 	INVENTORY	 	 	DUE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

     TOTALS OR SUBTOTALS

 

 

EXHIBIT F-2

FORM OF REQUEST FOR LOAN ADVANCE (BUILDING LOANS)

REQUEST FOR LOAN ADVANCE (BUILDING LOANS)

_______________, 200_

Eurohypo AG, New York Branch, as Administrative Agent

1114 Avenue of the Americas, 29th Floor

New York, New York 10036

Attn: ______________________

	 	Re: 	 	Eurohypo AG, New York Branch, as Administrative Agent, Loans in the aggregate
amount of $_________ to Acadia-PA East Fordham Acquisitions, LLC and Fordham Place
Office LLC

     Project:

Ladies and Gentlemen:

     Reference is made to that certain (i) Acquisition and Project Loan Agreement dated October
___, 2007 among Eurohypo AG, New York Branch, as Administrative Agent, certain lenders thereto,
Fordham Place Office LLC and the undersigned (the “Loan Agreement”) and (ii) Building Loan
Agreement, dated October ___, 2007 among Eurohypo AG, New York Branch, as Administrative Agent,
certain lenders thereto, Fordham Place Office LLC and the undersigned (the “Building Loan
Agreement”). Terms not defined in this Request for Loan Advance shall have the same meaning as
in the Loan Agreement.

     This Request for Loan Advance (Building Loans) (i) is request No. ___________ under the Loan
Agreement with respect to Building Loans, (ii) constitutes Borrower’s request to borrow Building
Loans in the amounts and in the manner set forth below and (iii) is otherwise subject to the terms
of the Loan Agreement and the Building Loan Agreement. The information relating to the proposed
Building Loans is as follows:

	 	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	The date of the proposed Building Loans is _________, ___.	 	 
	 
	 

	 	 	2.	 	 	The aggregate amount of the proposed Building Loans (after
deducting an aggregate Retainage of $_________) is
	 	$_________.
	 
	 

	 	 	3.	 	 	The aggregate amount of the proposed Building Loans which
are to bear interest as Base Rate Loans is
	 	$_________.
	 
	 

	 	 	4.	 	 	The aggregate amount of the proposed Building Loans which
are to bear interest as Eurodollar Loans is
	 	$_________.

1

 

	 	 	 	 	 	 	 
	 

	 	 	5.	 	 	The Interest Periods and the aggregate amount of the
proposed Eurodollar Loans with respect to each such Interest Period
are as follows:

	 	 	 	 	 
	 
	 	— 1 month	 	$_________.
	 
	 	— 2 month	 	$_________.
	 
	 	— 3 month	 	$_________.
	 
	 	— 6 month	 	$_________.
	 
	 	— 9 month	 	$_________.
	 
	 	— 12 month	 	$_________.

	 	 	 	 	 	 	 
	 

	 	 	6.	 	 	The aggregate amount of Building Loans requested hereunder, when added to prior
(if any) Building Loans funded under the Building Loan Agreement, will result in total
Building Loans outstanding under the Building Loan Agreement of $_________. Funds
undrawn under the aggregate Building Loan Commitments after giving effect to the
Building Loans requested hereunder will then be $_________.

Attached to this Request for Loan Advance (Building Loans) are the following items:

	 	A.	 	To the extent not previously delivered to Administrative Agent, for funds due
under the Construction Management Agreement, copies of the Construction Manager’s
invoices relating to payments requested under this Request for Loan Advance (Building
Loans), together with paid invoices evidencing payment of funds previously advanced to
the Construction Manager pursuant to Building Loans;
	 
	 	B.	 	To the extent not previously delivered to Administrative Agent, for funds paid
directly by Borrower, copies of all invoices relating to payments requested under this
Request for Loan Advance (Building Loans), together with paid invoices evidencing
payment of funds previously advanced to Borrower pursuant to Building Loans;
	 
	 	C.	 	Copy of the Budget attached as Schedule 1 hereto, showing the portion
of each budget line item comprising the aggregate Building Loans subject to this
request and any Retainage with respect thereto, and the total of all Building Loans to
date, inclusive of the Building Loans subject to this request;
	 
	 	D.	 	If this Request for Loan Advance (Building Loans) covers any stored materials
under Section 4.8 of the Building Loan Agreement, a Stored Materials Statement
in the form of Schedule 2 attached thereto.
	 
	 	E.	 	Copies of sworn unconditional lien wavers from each trade contractor,
subcontractor, materialman, supplier and vendor who is to be paid from the proceeds of
this Advance, to the extent not previously delivered to Administrative Agent;

2

 

	 	F.	 	Borrower’s Architect’s Certificate for Payment in accordance with AIA Document
G 702;
	 
	 	G.	 	Requisition form duly executed by the Construction Manager; and
	 
	 	H.	 	Copies of all other documents required pursuant to Article IV and Schedule 4 of
the Loan Agreement.

     In connection with this advance, Borrower hereby certifies that the following are true and
correct:

	 	I.	 	To the best of its knowledge, the facts set forth in the Construction Manager’s
invoices and in Schedule 1 and Schedule 2;
	 
	 	II.	 	Except for contractors, subcontractors, materialmen, suppliers or vendors who
are to be paid from proceeds of the Building Loans requested hereunder, there is no
outstanding Indebtedness of the undersigned for labor, wages or materials in connection
with the construction of the Improvements which is currently due, excluding work that
is being contested in good faith, and which could become the basis of a Lien on the
Project;
	 
	 	III.	 	All sums previously requisitioned have been applied to the payment of the Hard
Costs and the Soft Costs, excluding work that is being contested in good faith,
heretofore incurred;
	 
	 	IV.	 	All Change Orders have been submitted to Administrative Agent and the
Construction Consultant and all Change Orders for which a Building Loan is requested
hereby have been approved by Administrative Agent and the Construction Consultant to
the extent required by the Loan Agreement;
	 
	 	V.	 	In the judgment of Borrower, the Improvements are ___% complete; and
	 
	 	VI.	 	To the best of its knowledge, Borrower is not in Potential Default or Event of
Default under any of the terms and conditions of the Loan Documents;
	 
	 	VII.	 	After giving effect to this advance, the Loans will remain In Balance, in
accordance with Section 4.3 of the Loan Agreement, and all conditions to this
advance have been satisfied in accordance with Section 4.1 of the Loan
Agreement;
	 
	 	VIII.	 	Each representation and warranty of Borrower set forth in the Loan Agreement
remains true and correct in all material respects as of the date of this Request for
Loan Advance and will be so on the date of disbursement of the requested Loan, except
with respect to (a) matters which have been disclosed in writing to and approved by
Administrative Agent (subject, however, to the terms of the Loan Agreement) or (b)
liens of mechanics and materialmen (subject to Schedule 4 — Part A, [paragraph
3]) and matters addressed in Section 3.1 of the Loan

3

 

	 	 	 	Agreement, which would not, if adversely decided, have a Material Adverse Effect;
	 
	 	IX.	 	No litigation or arbitral proceedings are pending or, to the best of Borrower’s
knowledge, threatened against Borrower, Guarantor or the Property Manager, which is
likely to (1) affect the validity or priority of the liens of the Mortgages or (2) or,
if adversely decided, have a Material Adverse Effect; and
	 
	 	X.	 	All Government Approvals, to the extent then required for the construction of
the Construction Work, have been obtained and that all Applicable Laws relating to the
construction and operation of the Project have been and will continue to be complied
with.

The undersigned requests that the requested Building Loans be advanced by depositing the same into
Borrower’s account to be designated by Borrower (Account No. _________). The person signing this
Request for Loan Advance (Building Loans) on behalf of Borrower represents and warrants to you that
such person is authorized to execute this letter on behalf of Borrower.

[Signature Page Follows]

4

 

	 	 	 	 	 
	 	ACADIA-PA EAST FORDHAM ACQUISITIONS, LLC

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	RECEIVED:

EUROHYPO AG, NEW YORK BRANCH,

as Administrative Agent

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 	 	 
	By:  	
 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

	cc: 	 	[CONSTRUCTION CONSULTANT] (with attachments)

5

 

SCHEDULE 1 — to Request for Loan Advance

[Attach form of Budget Outline to be Used]

 

 

Page _____ of _____ Pages

SCHEDULE 2 — to Request for Loan Advance

STORED MATERIALS STATEMENT NO.

			
	 	 	 
	Borrower: ____________
	 	Period Covered (PC): From ________ To ________
	 	 	 
	Project: ____________
	 	Date: ____________
	 	 	 
	Address: ____________	 	 

	 	 	 
	 	 	DESCRIPTION OF MATERIALS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	STORED (ATTACH INVOICES,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	RETAINED
	 	 	LISTINGS AND/OR OTHER	 	 	LOCATION	 	 	NAME OF SUB-	 	 	 	 	 	ADDITIONS	 	 	 	 	 	 	 	 	AMOUNT
	 	 	PRICE SUPPORTING	 	 	WHERE	 	 	CONTRACTOR	 	 	OPENING	 	 	TO	 	 	USAGE OF	 	 	CLOSING	 	 	NOT YET
	ITEM NO.	 	DOCUMENTATION	 	 	STORED	 	 	/SUPPLIER	 	 	INVENTORY	 	 	INVENTORY	 	 	INVENTORY	 	 	INVENTORY	 	 	DUE
	 
	 

     TOTALS OR SUBTOTALS

1

 

EXHIBIT G

CONTROLLED ACCOUNT AGREEMENT

See Attached

 

 

EXHIBIT H

ASSIGNMENT OF DECLARANT’S RIGHTS

     Acadia PA East Fordham Acquisitions, LLC, a Delaware limited liability company, and Fordham
Place Office, LLC, a Delaware limited liability company, each having an address c/o Acadia Realty
Trust, 1311 Mamoroneck Avenue, Suite 260, White Plains, New York (collectively the
“Assignor”), for Ten Dollars ($10.00) and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, does hereby grant, assign, transfer and
set over unto EUROHYPO AG, NEW YORK BRANCH (“Administrative Agent”), all of Assignor’s
right and privileges (the “Declarant’s Rights”) arising under (i) the Declaration (as
defined below), and (ii) the by-laws and articles of incorporation relating to the condominium (the
“Condominium”) created by the Declaration (said by-laws and articles of incorporation,
together with the Declaration, collectively called the “Condominium Documents”).

     So long as no Default or Event of Default shall exist under the Mortgages (as defined below),
Assignor may exercise the Declarant’s Rights and Administrative Agent may not exercise the
Declarant’s Rights, except that Assignor may not (i) transfer or encumber any of the Declarant’s
Rights, except as permitted in the Mortgages, (ii) except as permitted under the Loan Agreement (as
defined below) cause or allow any of the Condominium Documents that require the consent or approval
of declarant to amend or which Assignor has the right to amend independently to be modified without
Administrative Agent’s prior written consent or (iii) allow any of the officers or managers of the
association of the Condominium which Assignor has appointed to resign or be removed from office,
unless Assignor shall have caused to be delivered to Administrative Agent (A) duly executed letter
of resignation from each such officer or director being added to said association in the form
attached as Exhibits I and J, respectively, to the Acquisition and Project Loan Agreement, dated as
of October ___, 2007, among Administrative Agent, certain lenders and Assignor, as borrower (the
“Loan Agreement”) and (B) a proxy from each director in the form attached as Exhibit K to
the Loan Agreement.

     Upon the full payment and performance of all obligations secured by the Mortgage, the
Declarant’s Rights shall automatically be reassigned to Assignor by Administrative Agent and this
Assignment shall terminate.

     For the purposes of this Assignment, “Declaration” shall mean the Declaration of
Condominium for                                         , a condominium, dated                     , 200___, and recorded on
                    , 200___, in the Public Records of                      County,                      in Book ___, page
___, together with all amendments thereto, if any; “Mortgages” shall mean, collectively,
the mortgages dated October ___, 2007 from Assignor to Administrative Agent which secure a
$                     acquisition loan, a $                     project loan and a $                     building loan and which
were recorded on                     , 2007 in the aforesaid Public Records in Book                     , page ___.

     This Assignment shall be construed and enforced in accordance with the laws of the State of
New York.

 

 

     The rights and privileges of Administrative Agent hereunder shall inure to the benefit of its
successors and assigns.

     IN WITNESS WHEREOF, Assignor and Administrative Agent have each duly executed and delivered
this Assignment this                      day of                                         , 200___.

	 	 	 	 	 
	 	ACADIA PA EAST FORDHAM ACQUISITIONS, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	FORDHAM PLACE OFFICE LLC, a
 Delaware limited
liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	EUROHYPO AG, NEW YORK BRANCH,

as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[add acknowledgements]

 

 

EXHIBIT I

CONDITIONAL RESIGNATION OF OFFICERS

                                         CONDOMINIUM

(Resignation of Officers)

                                        , 200___

Eurohypo AG, New York Branch

as administrative agent

1114 Avenue of the Americas, 29th Floor

New York, New York 10036

Attention:

Re:                      Condominium

Ladies and Gentlemen:

     The undersigned                                         ,                     
                
   ,             
               
             ,   
                
                       and                                        , being all of the officers of the Owner’s Association of the referenced Condominium
which were appointed by                                                                            
                         , hereby tender their respective resignations as
officers hereof. Said resignations may not be rescinded or revoked by any of the undersigned so
long as you are the holder of any mortgage or deed of trust encumbering any of the unsold
condominium units of said Condominium. Said resignations shall be effective upon your acceptance
thereof, without notice to the undersigned, at any time during the existence of an Event of Default
under any such mortgage or deed of trust.

	 	 	 	 	 	 	 
	 

	 	 
	 	Very truly yours,
	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT J

CONDITIONAL RESIGNATION OF MANAGERS

                     CONDOMINIUM

(Resignation of Managers)

                                        , 200___

Eurohypo AG, New York Branch

as administrative agent

1114 Avenue of the Americas, 29th Floor

New York, New York 10036

Attention:

Re: Condominium

Ladies and Gentlemen:

     The undersigned                                         ,                      
                
   ,            
              
               ,
                
                          and
                                        , being all of the managers of the Board of Managers of the Owner’s Association of
the referenced Condominium which were appointed by        
               
                
               
               
                                , hereby tender their
respective resignations as managers thereof. Said resignations may not be rescinded or revoked by
any of the undersigned so long as you are the holder of any mortgage or deed of trust encumbering
any of the unsold condominium units of said Condominium. Said resignations shall be effective upon
your acceptance thereof, without notice to the undersigned, at any time during the existence of an
Event of Default under any such mortgage or deed of trust.

	 	 	 	 	 	 	 
	 

	 	 
	 	Very truly yours,
	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT K

VOTING PROXY

                                         CONDOMINIUM

(Proxy)

                    , 200___

Eurohypo AG, New York Branch

as administrative agent

1114 Avenue of the Americas, 29th Floor

New York, New York 10036

Attention:

Re:                      Condominium

Ladies and Gentlemen:

     Reference is made to that certain (i) Acquisition and Project Loan Agreement, dated as of
October ___, 2007 (as same may hereafter be amended, modified or supplemented, the
“Agreement”) and (ii) Building Loan Agreement, dated as of October ___, 2007, each among
Acadia-PA East Fordham Acquisitions, LLC, and Fordham Place Office LLC, both as borrowers
(collectively the “Borrower”), the lenders party thereto (collectively, together with their
successors and assigns, “Lenders”) and Eurohypo AG, New York Branch, as administrative
agent (in such capacity, together with its successors and assigns, “Administrative Agent”)
relating to the development of the above referenced Condominium. All capitalized terms used herein
and not defined herein shall have the meanings ascribed thereto in the Agreement.

     Each of (a) Borrower, being the owner of the Units under the Condominium Documents, and (b)
the undersigned representatives of Borrower on the board of managers of the Condominium
(collectively, the “Board Members”), hereby grants to Administrative Agent (on behalf of
the Lenders) this proxy to take all actions and to exercise all rights and privileges of Borrower
and the Board Members pursuant to the Condominium Documents, or any of them, but only if and for so
long as an Event of Default shall occur and be continuing. Borrower and each Board Member hereby
irrevocably appoints Administrative Agent as its true and lawful attorney-in-fact, which
appointment is together with an interest, to execute all documents and take all actions necessary
to effectuate such proxy, provided that such appointment is being made on the understanding that
Administrative Agent shall only exercise the rights and powers provided in this proxy following the
occurrence and during the continuance of an Event of Default.

     This proxy may be executed in one or more counterparts, each of which shall be an original and
all of which when taken together shall constitute one and the same proxy. Nothing contained in
this proxy shall impose or subject Lender to any liability or obligations or shall obligate
Administrative Agent to take any actions with the powers conveyed by this proxy. This proxy shall,
notwithstanding anything to the contrary in the Condominium Documents, be irrevocable prior to the
repayment in full of all of the Indebtedness.

1

 

	 	 	 	 	 
	 	ACADIA PA EAST FORDHAM ACQUISITIONS, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	FORDHAM PLACE OFFICE LLC, 
a Delaware limited
liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	  	
 	 
	 	 	Name:  	 	 
	 	 	 	 
	 
	 	 	 
	 	  	
 	 
	 	 	Name:  	 	 
	 	 	 	 
	 
	 	 	 
	 	  	
 	 
	 	 	Name:  	 	 
	 	 	 	 
	 

     This Proxy and the powers granted and designation made hereby are acknowledged by the
undersigned.

	 	 	 	 	 
	 	                     CONDOMINIUM

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

     [add acknowledgements]

2

 

EXHIBIT L

COMMON CHARGES LETTER

                     CONDOMINIUM

(Condominium Charges)

                    , 200___

Eurohypo AG, New York Branch

as administrative agent

1114 Avenue of the Americas, 29th Floor

New York, New York 10036

Attention:

Re:                      Condominium

Ladies and Gentlemen:

     Reference is made to that certain (i) Acquisition and Project Loan Agreement, dated as of
October      , 2007 (as same may hereafter be amended, modified or supplemented, the
“Agreement”) and (ii) Building Loan Agreement, dated as of October      , 2007, each among
Acadia PA East Fordham Acquisitions, LLC, and Fordham Place Office LLC, both as borrowers
(collectively, the “Borrower”), the lenders party thereto (collectively, together with
their successors and assigns, “Lenders”) and Eurohypo AG, New York Branch, as
administrative agent (in such capacity, together with its successors and assigns,
“Administrative Agent”) relating to the development of the above referenced Condominium.
All capitalized terms used herein and not defined herein shall have the meanings ascribed thereto
in the Agreement.

     In connection with the Loans, recognizing that Lenders and Administrative Agent will rely on
the matters set forth herein in making the Loans to Borrowers,                      hereby represent,
warrant, certify and agree as follows:

     1. All initially capitalized terms used herein without definition and which are defined in
that certain [DESCRIBE DECLARATION] (the “Declaration”), or in the By-Laws referred to
therein, shall have the meanings set forth for such terms in the Declaration, or in such By-Laws
(as applicable)1. A true, correct and complete copy of the Declaration (including the
By-Laws attached thereto) and all rules and regulations adopted by the Board pursuant to Section
___of the By-Laws or otherwise (all such items being collectively referred to herein as the
“Condominium Documents”) are attached hereto as Exhibit A. Except as indicated in
Exhibit A, the Condominium Documents have not been modified, altered or amended and are in
full force and effect.

     2. The Board hereby recognizes Administrative Agent (on behalf of the Lenders) as, and
Administrative Agent shall be deemed to be, a [Recognized Mortgagee] of Unit Nos. ___,                      and
                     (collectively, the “Units”) and that the lien of Administrative Agent’s [Registered

 

			
	1	 	Definitions must be amended accordingly.

 

 

Mortgage(s)] are first priority liens for purposes of the Condominium Documents.
Administrative Agent’s current address is as set forth above.

     3. All [Common Charges] and all other charges and assessments, if any, assessed against any of
the Units or otherwise payable under any of the Condominium Documents by the Unit Owners have been
paid in full through the date hereof. No special assessments have been levied or assessed by the
Board which are payable.

     4. No Unit, Unit Owner or Occupant is in violation or breach of, or in default under, any of
the Condominium Documents, and the Board knows of no (a) event or condition which, with the passage
of time or the giving of notice or both, would constitute such a violation, breach or default by
any Unit, Unit Owner or Occupant or (b) claims, demands, causes of action or proceedings, pending
or threatened, against the Board or any Unit Owner or Occupant which would entitle the Board or any
Unit Owner or Occupant to indemnification by any other Unit Owner or Occupant pursuant to any of
the Condominium Documents (including, without limitation, pursuant to Section                      of the
Declaration).

     5. There are no mortgages, deed of trust, liens or other security interests encumbering any
Unit (including liens for unpaid Common Charges), except those in favor of Administrative Agent.

     6. The Board has not engaged or employed any managing agent or employees pursuant to Section
                     of the By-Laws.

     7. A budget has not yet been adopted by the Board. The Board will deliver a true, correct and
complete copy of each budget (and any amendments thereto) to Administrative Agent promptly
following the date on which each of such items is adopted pursuant to Section                      of the
By-Laws.

     8. The officers of the Condominium are as follows:

President:                             
                       
                 

Vice President/Treasurer:                                           

Vice President/Secretary:  
                                        

     9. In addition to the Board’s obligations under Section ___of the By-Laws, the Board agrees
to execute and deliver to Administrative Agent, as soon as is reasonably practical, and in any
event within ten (10) days after Administrative Agent’s written request, a letter dated as of the
then current date, in the form of this letter (with such changes as may be necessary due to changes
in the applicable facts and circumstances) and addressing any other facts and circumstances
pertaining to the Condominium Documents and the operation of the Project as may reasonably be
requested by Administrative Agent at such time.

     10. The Board hereby acknowledges and consents to the powers granted and the designation made
by [                    ] and the officers of the Condominium to Administrative

 

 

Agent pursuant to that certain Proxy given by [                    ] and the officers of the Condominium
to the Lenders in connection with the Loans.

     This letter may be executed in one or more counterparts, each of which shall be an original
and all of which when taken together shall constitute one and the same letter.

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Name:  	 	 
	 
	 	  	
 	 
	 	 	Name:  	 	 
	 
	 	  	
 	 
	 	 	Name:  	 	 
	 

     The undersigned, being the Unit Owner of the Units hereby consents to, acknowledges and agrees
with the foregoing with the same force and effect as if it were the Board.

	 	 	 	 	 
	 	ACADIA PA EAST FORDHAM ACQUISITIONS,
LLC,
 a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	FORDHAM PLACE OFFICE LLC, a
 Delaware limited
liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

Exhibit A

Condominium Documents

 

 

SCHEDULE 1

COMMITMENTS

Project Loan Commitments:

	 	 	 	 	 
	Lender	 	Commitment	 
	Eurohypo AG, New York Branch
	 	$	1,930,757.00	 
	 
	 	$	 	 
	 
	 	$	 	 
	 
	 	$	 	 
	Total
	 	$	1,930,757.00	 

Building Loan Commitments:

	 	 	 	 	 
	Lender	 	Commitment	 
	Eurohypo AG, New York Branch
	 	$	75,339,243.00	 
	 
	 	$	 	 
	 
	 	$	 	 
	 
	 	$	 	 
	Total
	 	$	75,339,243.00	 

Acquisition Loan Commitments:

	 	 	 	 	 
	Lender	 	Commitment	 
	Eurohypo AG, New York Branch
	 	$	18,000,000.00	 
	 
	 	$	 	 
	 
	 	$	 	 
	 
	 	$	 	 
	Total
	 	$	18,000,000.00	 

 

 

SCHEDULE 1.1(130)

LEASING GUIDELINES

 

 

SCHEDULE 1.1(193)

PROPORTIONATE SHARE

	 	 	 	 	 
	Lender	 	Percentage	 
	Eurohypo AG, New York Branch
	 	 	100%	 
	Total
	 	 	100%	 

 

 

SCHEDULE 2.4(1)

WIRE INSTRUCTIONS

Bank of New York, NY

ABA 021 000 018

Account No.: 8900513497

Account Name: Eurohypo AG, NY

Ref: 400 E. Fordham Road

 

 

SCHEDULE 3.1(1)(J)

INSURANCE REQUIREMENTS FOR CONSTRUCTION MANAGERS,

MAJOR CONTRACTORS, ARCHITECTS AND DESIGN PROFESSIONALS

	A.	 	Minimum Insurance Requirements For Contractors

	 	1.	 	Workers Compensation and Employers Liability Coverage.

	 	•	 	Statutory Workers Compensation coverage
	 
	 	•	 	Employers Liability — $1 million policy limit
	 
	 	•	 	Thirty (30) days notice of cancellation

	 	2.	 	General Liability Coverage
	 
	 	 	 	Limits of Liability: $1 million combined single limit for bodily injury, personal
injury or property damage per occurrence/$2 million aggregate per project or
location. General Liability Insurance shall also include an endorsement providing
that the insurance afforded under the contractor’s policy is primary insurance and
without contribution from any other insurance maintained by Borrower.
	 
	 	 	 	“Occurrence” form, including:

	 	•	 	Premises/Operations Liability
	 
	 	•	 	Blanket Contractual Liability, including coverage for all
liability assumed under this contract
	 
	 	•	 	Products & Completed Operations
	 
	 	•	 	Pollution coverage for losses arising out of a hostile fire
	 
	 	•	 	“XCU” Hazards must be covered
	 
	 	•	 	Thirty (30) days notice of cancellation to Borrower as a
condition of cancellation

	 	3.	 	Business Automobile Coverage

	 	•	 	Limit of Liability: $1 million combined single limit per
accident for bodily injury or property damage
	 
	 	•	 	Business Auto policy form, including:
— coverage for “any auto” which includes autos owned, hired, and non-owned
autos
— Thirty (30) days notice of cancellation

	 	4.	 	Umbrella Liability Coverage

 

 

	 	•	 	Limit of Liability: Not less than $100 million.

	 	5.	 	Property Insurance
	 
	 	 	 	All contractors and subcontractors shall be responsible for all loss or damage to
contractors’ tools, equipment sheds, and any other materials or supplies which do
not become part of the finished project. Borrower and its agents take no
responsibility for said equipment.

	 	 	Additional Requirements

	 	•	 	Insurances specified in items 2, 3, and 4 shall name Borrower
and Administrative Agent (on behalf of the Lenders) as additional insureds,
binders or endorsements to insurance policies may be required.
	 
	 	•	 	All insurances shall contain a provision allowing insured to
waive subrogation rights against other parties prior to loss except workers’
compensation.
	 
	 	•	 	All insurances shall be secured from financially responsible
insurance carriers qualified to do business in the state in which this
operation is located.
	 
	 	•	 	Certificates of insurance in form and substance acceptable to
Borrower and Administrative Agent and evidencing all insurances must be
presented to Borrower prior to the commencement of any work of operations at
the project and upon request. Such certificates shall provide that the insurer
shall not cancel or terminate coverage without thirty (30) days’ prior written
notice to Borrower and Administrative Agent.
	 
	 	•	 	All notices will be received by the following:
	 
	 	 	 	For Administrative Agent:
	 
	 	 	 	Eurohypo AG, New York Branch

1114 Avenue of the Americas, 29th Floor

New York, New York 10036

Attention: Legal Director

Facsimile No.: 866 267 7680
	 
	 	 	 	With copies to:
	 
	 	 	 	Eurohypo AG, New York Branch

1114 Avenue of the Americas, 29th Floor

New York, New York 10036

Attention: Head of Portfolio Operations

Facsimile No.: 866 267 7680

 

 

— and —

	 	 	 	Riemer & Braunstein LLP

Times Square Tower, Suite 2506

Seven Times Square

New York, New York 10036

Attention: Steven J. Weinstein, Esq.

Telecopier No.: (617) 692-3503

	B.	 	Minimum Insurance Requirements For Major Contractors

	 	1.	 	Workers Compensation and Employer-Liability Coverage

	 	•	 	Statutory Workers Compensation coverage
	 
	 	•	 	Employers Liability — $1 million policy limit
	 
	 	•	 	Thirty (30) days notice of cancellation

	 	2.	 	General Liability Coverage
	 
	 	 	 	Limits of Liability: $1 million combined single limit for bodily injury, personal
injury or property damage per occurrence, $2 million aggregate per project or
location, $2 million Products & Completed Operations

	 	 	“Occurrence” form, including:

	 	•	 	Premises/Operations Liability
	 
	 	•	 	Blanket Contractual Liability, including coverage for all
liability assumed under this contract
	 
	 	•	 	Products & Completed Operations
	 
	 	•	 	Pollution coverage for losses arising out of a hostile fire
	 
	 	•	 	“XCU” Hazards must be covered
	 
	 	•	 	Thirty (30) days notice of cancellation to Borrower and
Administrative Agent as a condition of cancellation

	 	3.	 	Business Automobile Coverage

	 	•	 	Limit of Liability-. $1 million combined single limit per
accident for bodily injury or property damage
	 
	 	•	 	Business Auto policy form, including:
— coverage for “any auto” which includes autos owned, hired, and non-

 

 

	 	 	 	owned autos
	 	 	 	— Thirty (30) days notice of cancellation

	 	4.	 	Umbrella Liability Coverage

	 	•	 	Limit of Liability: Not less than $5 million, except steel
erectors, crane operators, and other high hazard operations, not less than $20
million.

	 	5.	 	Property Insurance
	 
	 	 	 	All contractors and subcontractors shall be responsible for all loss or damage to
contractors’ tools, equipment sheds, and any other materials or supplies which do
not become part of the finished project.

	 	 	Additional Requirements

	 	•	 	Insurances specified in items 2, 3, and 4 shall name Borrower
and Administrative Agent (on behalf of the Lenders) as additional insureds.
	 
	 	•	 	All insurances shall contain a provision allowing insured to
waive subrogation rights against other parties prior to loss.
	 
	 	•	 	All insurances shall be secured from financially responsible
insurance carriers qualified to do business in the state in which this
operation is located.
	 
	 	•	 	Certificates of insurance in form and substance acceptable to
Borrower and Administrative Agent and evidencing all insurances must be
presented to the owner prior to the commencement of any work of operations at
the project and upon request. Such certificates shall provide that the insurer
shall not cancel or terminate coverage without thirty (30) days’ prior written
notice to the owner and lender.

	 	 	All notices will be received by the following:

	 	 	 	For Administrative Agent:

	 	 	 	Address for Notices to

	 	 	 	          Eurohypo AG, New York Branch

          1114 Avenue of the Americas, 29th Floor

          New York, New York 10036

          Attention: Legal Director

          Facsimile No.: 866 267 7680
	 
	 	 	 	          With copies to:

 

 

	 	 	 	          Eurohypo AG, New York Branch

          1114 Avenue of the Americas, 29th Floor

          New York, New York 10036

          Attention:

          Facsimile No.: 866 267 7680

— and —

	 	 	 	          Riemer & Braunstein LLP

          Times Square Tower, Suite 2506

          Seven Times Square

          New York, New York 10036

          Attention: Steven J. Weinstein, Esq.

          Telecopier No.: (617) 692-3503

	C.	 	Owner Controlled Insurance Program (“OCIP”) or Wrap-Up Program

     Borrower may satisfy the on site Commercial General Liability Workers Compensation and
Umbrella Liability insurance requirements of Section 3.1(1) and this Schedule for Borrower,
Construction Manager and Major Contractors by and through placement of a Wrap Up or OCIP Insurance
Program.

     If this type of Liability insurance program is selected by Borrower, it shall meet all of the
requirements of coverage as set forth elsewhere in Section 3.1(1) and this Schedule.

     The overall limits of insurance required under this form of insurance program shall include
Umbrella Liability insurance with a $100 million per occurrence and Annual Aggregate Minimum Limit,
and shall contain Products and Completed Operations liability discovery period of not less than 24
months.

     This Wrap-Up Program shall contain Cross Suits coverage and allow for separation of insured.

     All other coverage required of contractors shall continue to be required.

	D.	 	Minimum Insurance Requirements For Architects & Engineers

	 	1.	 	Workers Compensation and Employers Liability Coverage
	 
	 		 	*Statutory Workers Compensation coverage
	 
	 	 	 	*Employers Liability — $1 million policy limit
	 
	 	 	 	*Thirty (30) days notice of cancellation

	 	2.	 	General Liability Coverage

 

 

	 	 	 	Limits of Liability: $1 million combined single limit for bodily injury, personal
injury or property damage per occurrence, $2 million aggregate per project or
location, $2 million Products & Completed Operations
	 
	 	 	 	“Occurrence” form, including:

	 	•	 	Premises/Operations Liability
	 
	 	•	 	Blanket Contractual Liability, including coverage for all
liability assumed under this contract
	 
	 	•	 	Products & Completed Operations
	 
	 	•	 	Pollution coverage for losses arising out of a hostile fire
	 
	 	•	 	“XCU” Hazards must be covered
	 
	 	•	 	Thirty (30) days notice of cancellation to owner and lender as
a condition of cancellation

	 	3.	 	Business Automobile Coverage

	 	•	 	Limit of Liability: $1 million combined single limit per
accident for bodily injury or property damage
	 
	 	•	 	Business Auto policy form, including:
— coverage for “any auto” which includes autos owned, hired, and non-owned
autos
— Thirty (30) days notice of cancellation

	 	4.	 	Professional Liability

	 	•	 	Architects & Engineers Professional Liability covering errors
and/or omissions in the performance of professional services in conjunction
with this project.
	 
	 	•	 	Limits of $20 million each claim and annual aggregate are
required. Coverage must continue throughout the term of the job and continue
until the project is accepted by the owner. The coverage shall provide for a
five (5)-year discovery period after acceptance in which claims can be made.
coverage may be provided through an Owner Protective Policy.

 

 

SCHEDULE 4

ADVANCE CONDITIONS

Part A — Initial Advance

Part B — General Conditions

 

 

			
	PART A.	 	CONDITIONS PRECEDENT TO EFFECTIVENESS OF ACQUISITION LOAN COMMITMENTS AND
PROJECT LOAN COMMITMENTS AND TO INITIAL ACQUISITION LOANS AND PROJECT LOANS.

     The effectiveness of the Commitments and the obligation of the Lenders to make the initial
Loans are subject the Administrative Agent’s receipt, review, approval and/or confirmation of the
following, at Borrower’s cost and expense, each in form and content satisfactory to the
Administrative Agent in its sole discretion (such conditions not to be duplicative to the extent
they are the same matters required as conditions precedent to the effectiveness of the Building
Loans that are being advanced concurrently therewith under the Building Loan Agreement):

ORGANIZATIONAL AND AUTHORIZATION DOCUMENTS; OPINIONS; OTHER DOCUMENTATION RELATING TO BORROWER,
BORROWER PARTIES AND OTHER PERSONS

     1. All documents evidencing the formation, organization, valid existence, good standing of and
for Borrower and each Borrower Party, and the authorization, execution, delivery and performance of
the Loan Documents and Project Documents by Borrower and each Borrower Party, including a certified
organizational chart for Borrower and Borrower Parties.

     2. Legal opinions issued by counsel for Borrower and each Borrower Party, opining as to the
due organization, valid existence and good standing of Borrower and each Borrower Party; as to the
due authorization, execution, delivery, enforceability and validity of the Loan Documents with
respect to Borrower and each Borrower Party (and including opinions with respect to
non-contravention, perfection, choice of law and usury); and as to such matters concerning the
zoning and entitlements for the Project, compliance with Applicable Law (including the Affordable
Housing Requirements) and such other matters as Administrative Agent and Administrative Agent’s
counsel reasonably may specify.

     3. Current Uniform Commercial Code searches, and litigation, bankruptcy and judgment reports,
as requested by Administrative Agent, with respect to Borrower and Borrower Parties.

     4. Copies of the most recent financial statements of Borrower certified by an officer of the
Borrower and each Borrower Party, if applicable, and copies of the most recent audited annual
financial statement of Guarantor, and certificates dated the Closing Date and signed by an
Authorized Officer of Borrower and each Borrower Party stating that (i) such financial statements
are true, complete and correct and (ii) no change shall have occurred in the financial condition of
Borrower or any Borrower Party which would have a Material Adverse Effect on the Project, or on
Borrower’s or any Borrower Party’s ability to repay the Loans or otherwise perform its obligations
under the Loan Documents. Further, there shall not exist any material default by Borrower or any
Borrower Party under any loan, financing or similar arrangement with any lender.

 

 

     5. Satisfactory financial review and background checks (including such background checks as
deemed necessary by Administrative Agent and Lenders to comply with the Patriot Act) of Borrower
and Borrower Parties.

     6. Opening balance sheet for Borrower.

LOAN DOCUMENTS; CLOSING CERTIFICATES; APPRAISAL

     7. The Loan Documents, executed by Borrower and, as applicable, each Borrower Party.

     8. A certificate of an Authorized Officer of Borrower, dated as of the Closing Date,
certifying that: (i) the representations and warranties of Borrower and each Borrower Party
contained in the Loan Documents are true and correct in all material respects on and as of such
date as if made on and as of such date (or, if stated to have been made solely as of an earlier
date, were true and correct in all material respects as of such date), and (ii) no Potential
Default or Event of Default has occurred and is continuing on such date.

     9. An Appraisal, such that the aggregate amount of the Commitments shall not exceed seventy
percent (70%) of the aggregate value of the Project. The Appraisal shall run in favor of “Eurohypo
AG, New York Branch or its designee, as Administrative Agent on behalf of the lenders in its
lending syndicate from time to time, and the successors and assigns of each of the foregoing, all
of whom may rely thereon.”

TITLE; SURVEY

     10. An ALTA policy or policies of title insurance satisfactory to Administrative Agent with
respect to the Acquisition Loans, the Project Loans and the Building Loans (collectively, the
“Title Policies”), issued by the Title Insurer together with evidence of the payment of all
premiums due thereon, (a) insuring Administrative Agent for the benefit of the Lenders, in an
amount equal to the aggregate amount of the Commitments, that Borrower is lawfully seized and
possessed of a valid and subsisting fee simple interest in the Land and Improvements and that the
Mortgages constitute valid fee simple mortgages or deeds of trust liens on the Land and
Improvements subject to no Liens other than the Permitted Encumbrances applicable thereto and (b)
providing (i) affirmative insurance or endorsements for coverage against all mechanics’ and
materialmen’s liens, (ii) a pending disbursements clause, (iii) such other affirmative insurance,
endorsements and reinsurance as Administrative Agent may require, and (iv) evidence of payment of
real estate and other municipal charges through the Closing Date. The form of the Title Policies
and all endorsements thereto shall be approved by Administrative Agent in its sole discretion. The
Title Policies shall name as the insured “Eurohypo AG, New York Branch or its designee, as
Administrative Agent on behalf of the lenders in its lending syndicate from time to time, and the
successors and assigns of each of the foregoing, all of whom may rely thereon”

     11. A survey of the Project (the “Survey”) in form and content, and prepared by a
registered land surveyor, satisfactory to Administrative Agent. The Survey shall be certified to
“Eurohypo AG, New York Branch or its designee, as Administrative Agent on behalf of the lenders in
its lending syndicate from time to time, and the successors and assigns of each of the

 

 

foregoing, all of whom may rely thereon” in accordance with a surveyor’s certificate in form
and substance satisfactory to Administrative Agent.

     12. Evidence that all of the land parcels required to develop the Project per the final Plans
and Specifications are owned by Borrower and are encumbered by the Mortgages and insured by the
Title Policies.

INSURANCE

     13. A certified copy of, or certificates of insurance with respect to, the insurance policies
required under Section 3.1(1) of this Agreement (inclusive of the insurance policies
required under Schedule 3.1(1)(J)), together with evidence of the payment of all premiums
therefor.

GOVERNMENT APPROVALS; COMPLIANCE WITH LAW

     14. Originals (or copies certified by an Authorized Officer of Borrower to be true copies) of
all Government Approvals referred to in the Permitting Schedule, other than those expressly
provided for in said Schedule to be obtained at a later time (together with, if requested by
Administrative Agent, an opportunity to review (or certified copies of) all correspondence referred
to in such Government Approvals and all applications for such Government Approvals).

     15. Evidence satisfactory to Administrative Agent of final approval from Borrower’s Architect
and the New York City Department of Buildings of Project design and specifications.

     16. Evidence satisfactory to Administrative Agent that the Land is and, upon completion
thereof, the Improvements will be in compliance with all Applicable Law (including zoning laws) and
any applicable covenants, conditions and restrictions affecting the Land.

     17. Receipt, review and acceptance by Administrative Agent of a Phase I environmental report
and, if applicable, a Phase II environmental report for the Project.

PROJECT DOCUMENTS; CONSENTS AND AGREEMENTS; GOVERNMENT APPROVALS

     18. Copies of the Construction Management Agreement, certified by Borrower as being true,
correct and complete, and in each case in form and substance satisfactory to Administrative Agent.

     19. True and correct copies of each of the Project Documents (including all amendments
thereto), certified as such by an Authorized Officer of Borrower, together with evidence that (a)
each of the Project Documents has been duly executed and delivered by each Person that is a party
thereto and is in full force and effect; (b) neither Borrower nor, to the best of Borrower’s
knowledge, any other Person which is party to any of the Project Documents, is in default
thereunder beyond any applicable cure and notice periods; (c) no term or condition thereof shall
have been amended, modified or waived without the prior consent of Administrative Agent. The form
and substance of each of the Project Documents shall be satisfactory to Administrative Agent.

 

 

     20. A true and correct copy of the Construction Management Agreement certified as such by an
Authorized Officer of Borrower and evidence that no term or condition of such contract shall have
been modified, amended, supplemented and/or waived without the prior consent of Administrative
Agent, together with financial statements for the Construction Manager. The form and substance of
the Construction Management Agreement, and the financial statements of the Construction Manager,
shall be satisfactory to Administrative Agent.

     21. A certificate of the Construction Manager in favor of Administrative Agent (on behalf of
the Lenders) certifying that the Construction Schedule and the Budget (as its relates to Hard
Costs) are realistic and can be adhered to in completing the Construction Work for the Improvements
in accordance with the Plans and Specifications.

     22. A true and correct copy of Borrower’s Architect’s Agreement certified as such by an
Authorized Officer of Borrower and evidence that no term or condition of Borrower’s Architect’s
Agreement shall have been modified, amended, supplemented and/or waived without the prior consent
of Administrative Agent. The form and substance of Borrower’s Architect’s Agreement shall be
satisfactory to Administrative Agent.

     23. A schedule of the identity of the Major Contractors for the Improvements representing at
least eighty percent (80%) of the cost of the completion of the Project Completion Work for the
Improvements (including the Major Contracts for the mechanical, electrical and plumbing work and
any other Major Contractors deemed reasonably appropriate by Administrative Agent), and copies of
the executed Major Contracts entered into with such Major Contractors and all modifications,
amendments and/or supplements thereto with respect thereto, together with a certificate of an
Authorized Officer of Borrower certifying that (A) the copies of the Major Contracts attached to
such certificate are true, correct and complete in all respects; (B) such Major Contracts attached
to such certificate are in full force and effect; and (C) neither Borrower, nor the Construction
Manager nor the applicable Major Contractor is in default thereunder. The form and substance of the
Major Contracts shall be satisfactory to Administrative Agent.

     24. Evidence satisfactory to the Administrative Agent that the Project is eligible to obtain
and receive a partial exemption of real property taxes for the Improvements for a twenty-five (25)
year period under the Industrial and Commercial Incentive Program, as of right.

PLANS AND SPECIFICATIONS; BUDGET; CONSTRUCTION SCHEDULE; REPORTS AND STUDIES

     25. Receipt, review, and approval by Administrative Agent and the Construction Consultant of
the final Plans and Specifications for the Improvements, including any construction, architectural
and engineering drawings, sealed by the applicable Design Professionals.

     26. The delivery by the Construction Consultant to Administrative Agent of the Construction,
Cost and Plan Review in form and substance satisfactory to Administrative Agent.

     27. The Budget as approved by Administrative Agent, which shall include all Project Costs for
the Improvements and shall be sufficient to complete the Improvements and carry the

 

 

Project through the Maturity Date based on the final Plans and Specifications. The Budget
shall be such that the aggregate amount of the Commitments shall not exceed eighty percent (80%) of
the aggregate Project Costs for the entire Project reflected on the Budget. To the extent that the
Commitments would exceed any of the limits described in this section, they shall be automatically
reduced to an amount not in excess of the limits described in this section.

     28. The Construction Schedule, together with (if any Construction Work has been commenced
prior to the Closing Date) evidence satisfactory to Administrative Agent that the development of
the Construction Work is proceeding in accordance with the Construction Schedule and the Budget.

     29. Receipt, review, and acceptance by Administrative Agent of (i) Site Assessments relating
Project; (ii) seismic studies showing a probable maximum loss of less than 20% for the Project; and
(iii) soils reports, engineering reports, geotechnical reports and other reports and studies in
each case as required by Administrative Agent and prepared in accordance with Administrative
Agent’s scope and by consultants engaged by Administrative Agent or, if consented to by
Administrative Agent, engaged by Borrower with reliance rights with respect to such reports and
studies expressly granted in writing to Administrative Agent and its on behalf of the Lenders and
the respective successors and assigns of each of the foregoing. All such reports and studies shall
be in a form approved by Administrative Agent, and shall be certified to Administrative Agent (on
behalf of the Lenders and their successors and assigns) in a form reasonably requested by
Administrative Agent which may include certification to additional participants, co-lenders and/or
investors. Such reports and studies shall run in favor of “Eurohypo AG, New York Branch or its
designee, as Administrative Agent on behalf of the lenders in its lending syndicate from time to
time, and the successors and assigns of each of the foregoing, all of whom may rely thereon”.

PAYMENT OF INITIAL EQUITY CONTRIBUTION, FEES, EXPENSES AND COSTS

     30. There shall have been made by Borrower unreimbursed equity contributions to the Project in
an aggregate amount equal to the Initial Equity Contribution, and Borrower shall have delivered to
Administrative Agent evidence satisfactory to it that Borrower has made such contribution,
including, without limitation, a certificate of an Authorized Officer of Borrower certifying
thereto and itemizing the uses of such contributions, such certificate to be accompanied by backup
materials documenting the amount of such contributions and the use of same; provided, however, the
Administrative may, in its sole discretion, waive this requirement for the closing of the Loan, as
long as such requirement is satisfied prior to or contemporaneously with the initial advance of
proceeds of the Loan.

     31. Payment to Administrative Agent in accordance with the Fee Letters of the upfront fee and
arrangement fee described therein.

     32. Payment of all fees and commissions payable to real estate brokers, mortgage brokers, or
any other brokers or agents in connection with the Loans, such evidence to be accompanied by any
waivers or indemnifications deemed necessary by Administrative Agent.

 

 

     33. Payment of Administrative Agent’s costs and expenses in underwriting, documenting, and
closing the transaction, including fees and expenses of Administrative Agent’s inspecting
engineers, consultants, and outside counsel.

     34. Payment of all expenses and premiums in connection with the issuance of the Title Policy
and all recording charges, mortgage taxes and filing fees payable in connection with recording the
Mortgages and the filing of the Uniform Commercial Code financing statements related thereto in the
appropriate offices.

     35. Payment of any due and payable real estate taxes and assessments with respect to the
Project remaining unpaid on the Closing Date.

LEASES:

     36. Receipt, review, and acceptance by Administrative Agent of (i) the leases with the
Existing Tenants, and (ii) for each of the leases with the Existing Tenants, (1) written estoppels
in form and substance reasonably satisfactory to Administrative Agent, executed by the Existing
Tenants and confirming the term, rent, and other provisions and matters relating to the leases and
(2) written subordination and attornment agreements, in form and substance satisfactory to
Administrative Agent, executed by the Existing Tenants, whereby, among other things, such tenants
subordinate their interest in the Project to the Loan Documents and agree to attorn to
Administrative Agent (on behalf of the Lenders) and its successors and assigns upon foreclosure or
other transfer of the Project after an Event of Default.

     37. Evidence satisfactory to Administrative Agent that, as of the Closing Date, the aggregate
fixed minimum rent of the retail leases shall be no less than $5,150,000.

OTHER

     38. Such other documents or items as Administrative Agent or its counsel reasonably may
require, including, without limitation the delivery of such documents or items as may be indicated
on a closing checklist distributed to Borrower by Administrative Agent or its counsel.

     39. No material change shall have occurred in the financial markets which would have, in
Administrative Agent’s judgment, a material adverse affect on the Project or any obligor’s ability
to repay the Loans or otherwise perform its obligations under the Loan Documents. No condemnation
or adverse zoning or usage change shall have occurred or shall have been proposed with respect to
the Project; no law, regulation, ordinance, moratorium, injunctive proceeding, restriction,
litigation, action, citation or similar proceeding or matter shall have been enacted, adopted, or
threatened by any third Person or Governmental Authority, which would have, in the Administrative
Agent’s judgment, a Material Adverse Effect on the Borrower and/or the Project.

     40. Evidence that the other conditions set forth in Article 4 have been satisfied.

     41. Evidence that all of the conditions precedent to the effectiveness of the initial Building
Loans under the Building Loan Agreement shall have been satisfied.

 

 

			
	PART B.	 	GENERAL CONDITIONS TO ALL LOANS

     The obligation of the Lenders to make any Loans shall be subject to Administrative Agent’s
receipt, review, approval and/or confirmation of the following, each in form and content
satisfactory to Administrative Agent in its sole discretion:

     1. There shall exist no Potential Default or Event of Default (both before and after giving
effect to the requested advance).

     2. The representations and warranties contained in this Agreement and in all other Loan
Documents shall be true and correct in all material respects on and as of the date of the making of
such Loan with the same force and effect as if made on and as of such date.

     3. Such advance shall be secured by the Mortgages and the other Security Documents, subject
only to the Permitted Encumbrances, as evidenced by a Date Down Endorsement satisfactory to
Administrative Agent.

     4. Borrower shall have paid Administrative Agent’s costs and expenses in connection with such
advance (including title charges and attorneys’ fees and expenses).

     5. No change shall have occurred in the financial condition of Borrower or any Borrower Party
or in the Project which would have a Material Adverse Effect.

     6. No proceeding with respect to condemnation, adverse possession, zoning change or usage
change proceeding shall have occurred or shall have been threatened against the Project the Project
shall not have suffered any damage by fire or other casualty which has not been repaired or is not
being restored in accordance with this Agreement; no Applicable Law or injunctive proceeding,
restriction, litigation, action, citation or similar proceeding or matter shall have been enacted,
adopted, or threatened by any Governmental Authority, which would have, in Administrative Agent’s
judgment, a material adverse effect on the Project or Borrower’s or any Borrower Party’s ability to
perform its obligations under the Loan Documents.

     7. The Construction Work (or such part thereof as may have been constructed at the time of any
borrowing) shall have been constructed substantially in accordance with the Plans and
Specifications and the Construction Schedule (as each may have been modified in accordance with
this Agreement) and all applicable Government Approvals; and there shall exist no Unsatisfactory
Work.

     8. The Construction Consultant shall have reviewed and approved the disbursement requested in
the Request for Loan Advance delivered by Lead Borrower with respect to such Loan. Such Request
for Loan Advance shall include copies of all documents, contracts, invoices, bills, construction
records, lien waivers, Change Orders, and drawings, plans and specifications as the Construction
Consultant shall reasonably require, to enable the Construction Consultant to timely review each
Request for Loan Advance.

     9. Borrower shall have provided the Construction Consultant, Administrative Agent and the
Lenders, or their representatives, prompt and reasonable access to the Project, in order to inspect
the Construction Work then completed.

 

 

     10. Administrative Agent shall have received the following items in connection with each Loan:

          (a) A Request for Loan Advance as provided in Section 2.6(4) and 4.24.2 duly
executed by an Authorized Officer of Borrower, together with the required attachments thereto;

          (b) Such invoices, contracts and other supporting data as Administrative Agent may reasonably
require to evidence that all Project Costs for which disbursement is sought have been incurred and
are then due and payable;

          (c) Except for Liens insured against pursuant to the Title Policies, (i) sworn unconditional
waivers of lien from contractors, subcontractors, materialmen, suppliers and vendors, covering all
work for which funds have been advanced pursuant to a prior disbursement and (ii) at Administrative
Agent’s election, sworn conditional waivers of lien from contractors, subcontractors, materialmen,
suppliers and vendors, covering all work of such Persons for which funds are being advanced
pursuant to the then current Request for Loan Advance, all in compliance with the Lien Law;

          (d) Copies of any Change Orders which have not been previously furnished to Administrative
Agent and the Construction Consultant, all of which shall be subject to Administrative Agent’s
review and approval in accordance with this Agreement;

          (e) Copies of all subcontracts and purchase orders which have been executed or modified,
amended and/or supplemented since the last Loan, together with (i) any Bonds or Subguard Polices
relating to such subcontracts (to the extent required under this Agreement), (ii) a certificate by
an Authorized Officer of Borrower certifying that the delivered items are true, accurate and
complete copies of the originals thereof, and (iii) Consents and Agreements in the applicable form
attached to the General Assignment from each Major Contractors who has entered into a Major
Contract but has not previously delivered a Consent and Agreement;

          (f) Inventory of materials and equipment stored on the Project and evidence that Borrower has
complied with all of the requirements of Section 4.8 relating to such stored materials;

          (g) Copies of all Government Approvals (to the extent required as of such date) not previously
delivered to Administrative Agent, certified by an Authorized Officer of Borrower;

          (h) If any material dispute arises between or among Borrower, the Construction Manager or any
Major Contractor, a written summary of the nature of such dispute;

          (i) If the Budget shall have been modified, copies of all such modifications, all of which
shall be subject to Administrative Agent’s review and approval in accordance with this Agreement;

 

 

          (j) Copies of all amendments to the Construction Schedule not previously delivered to
Administrative Agent, all of which shall be subject to Administrative Agent’s review and approval
in accordance with this Agreement;

          (k) Promptly after the completion of the construction of the foundation or other support
elements for the Construction Work, Borrower shall provide to Administrative Agent a current survey
of the Land showing all improvements located thereon and complying with the requirements set forth
in Part A, paragraph 11 and shall obtain a foundation endorsement to the Title
Policies in form satisfactory to Administrative Agent insuring that all foundations and other
support elements are located within applicable property and setback lines and do not encroach upon
any easements or rights of way; and

          (l) To the extent not previously delivered to Administrative Agent, evidence showing
compliance with the insurance provisions of Section 3.1.

     11. All of the conditions set forth in Part A above shall remain satisfied and all
applicable conditions in Article 4 shall have been satisfied, including the application of
all Operating Revenues in accordance with Section 4.6.

     12. The Loans shall be In Balance, and all material actions required to have been undertaken
or obtained prior to the date of such disbursement pursuant to the Permitting Schedule and the
Marketing Plan and Schedule shall have been undertaken or obtained as applicable.

     13. Operating Revenues shall have been applied in accordance with Sections 4.1(1) and
4.6(1).

     14. To the extent not previously delivered to Administrative Agent, Borrower shall provide
evidence of the payment of all costs, expenses and other charges covered by previous Requests for
Loan Advances for which advances of Loans have previously been made.

     15. Administrative Agent has reasonably determined withholding such disbursement in whole or
in part is not required by the Lien Law.

     16. Such other documents and items as Administrative Agent may reasonably request.

 

 

SCHEDULE 7.6

PERMITTING SCHEDULES

(See Attached)

 

 

SCHEDULE 7.27

ORGANIZATIONAL CHART

 

 

SCHEDULE 7.32

TENANT IMPROVEMENT ALLOWANCES

(See Attached)

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