Document:

Promissory Note

 Exhibit 10.35 
 Revolving Term Note 
  

			
		 	

	 $11,970,000.00
	 	November 9, 2011        

 FOR VALUE RECEIVED, BURWOOD STATION LLC, a Delaware limited liability company (the
“Borrower”), with an address at 11501 Northlake, Cincinnati, Ohio 45249, promises to pay to the order of PNC BANK, NATIONAL ASSOCIATION (the “Bank”), in lawful money of the United States of America in
immediately available funds at its offices located at 201 East Fifth Street, Cincinnati, Ohio 45202, or at such other location as the Bank may designate from time to time, the principal sum of Eleven Million Nine Hundred Seventy Thousand and
00/100 DOLLARS ($11,970,000.00) (the “Facility”) or such lesser amount as may be advanced to or for the benefit of the Borrower hereunder, together with interest accruing on the outstanding principal balance from the date
hereof, all as provided below. 
 1. Advances. The Borrower may request advances, repay, reborrow and request
additional advances hereunder, subject to the Borrowing Base (as defined in the Loan Agreement (as hereinafter defined)) until the Expiration Date (as hereinafter defined), subject to the terms and conditions of this Note and the Loan Documents (as
hereinafter defined). The “Initial Expiration Date” shall mean November 1, 2013. At Borrower’s option, provided that the Borrower complies with the terms of Paragraph 14 below, Borrower may extend the term of this Note
until November 1, 2014 (the “Extended Expiration Date”), or such later date as may be designated by the Bank by written notice from the Bank to the Borrower. The Initial Expiration Date and the Extended Expiration Date may be
referred to herein as the “Expiration Date”. The Borrower acknowledges and agrees that in no event will the Bank be under any obligation to extend or renew the Facility or this Note beyond the Expiration Date. The aggregate unpaid
principal amount of advances under this Note shall not exceed the face amount of this Note. 
 2. Rate of Interest. Amounts
outstanding under this Note will bear interest at a rate per annum which is at all times equal to (A) the Daily LIBOR Rate plus (B) two hundred fifty (250) basis points (2.50%). Interest hereunder will be calculated based on
the actual number of days that principal is outstanding over a year of 360 days. In no event will the rate of interest hereunder exceed the maximum rate allowed by law. 
 If the Bank determines (which determination shall be final and conclusive) that, by reason of circumstances affecting the eurodollar market generally, deposits in dollars (in the applicable amounts) are
not being offered to banks in the eurodollar market for the selected term, or adequate means do not exist for ascertaining the Daily LIBOR Rate, then the Bank shall give notice thereof to the Borrower. Thereafter, until the Bank notifies the
Borrower that the circumstances giving rise to such suspension no longer exist, the interest rate for all amounts outstanding under this Note shall be equal to (A) the Base Rate plus (B) one hundred fifty (150) basis points
(1.50%) (the “Alternate Rate”). 
 In addition, if, after the date of this Note, the Bank shall determine (which
determination shall be final and conclusive) that any enactment, promulgation or adoption of or any change in any applicable law, rule or regulation, or any change in the interpretation or administration thereof by a governmental authority, central
bank or comparable agency charged with the interpretation or administration thereof, or compliance by the Bank with any guideline, request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency
shall make it unlawful or impossible for the Bank to make or maintain or fund loans based on the Daily LIBOR Rate, the Bank shall notify the Borrower. Upon receipt of such notice, until the Bank notifies the Borrower that the circumstances giving
rise to such determination no longer apply, the interest rate on all amounts outstanding under this Note shall be the Alternate Rate. 

  
 Form 8F
– NJ/DC/IN/KY (NCOJ) Rev. 5/10 

 Notwithstanding the foregoing, at such time that (A) the Facility is permanently reduced to the
Interest Rate Reduction Threshold (as hereinafter defined), and (B) the Debt Yield (as determined pursuant to the terms of the Loan Agreement) is equal to or greater than the Debt Yield Threshold (collectively, the “Reduction
Criteria”) and for so long as the applicable Reduction Criteria continue to be met, the Daily LIBOR Rate shall be adjusted as follows: 
  

									
	 REDUCTION CRITERIA

	 INTEREST
RATE
REDUCTION
THRESHOLD
	 	  	DEBT YIELD
THRESHOLD	 	 	 LIBOR OPTION

	$	10,260,000.00	  	  	 	12.5	% 	 	A rate per annum equal to (A) the Daily LIBOR Rate plus (B) two hundred thirty-five (235) basis points (2.35%), for the applicable LIBOR Interest Period
	$	 8,550,000.00	  	  	 	15.0	% 	 	A rate per annum equal to (A) the Daily LIBOR Rate plus (B) two hundred twenty-five (225) basis points (2.25%), for the applicable LIBOR Interest Period

 The Daily LIBOR Rate will adjust at such time the then applicable Reduction Criteria are no longer met. 

For purposes hereof, the following terms shall have the following meanings: 
 “Base Rate” shall mean the higher of (A) the Prime Rate, and (B) the sum of the Federal Funds Open Rate plus fifty (50) basis points (0.50%). If and when the Base
Rate (or any component thereof) changes, the rate of interest with respect to any amounts hereunder to which the Base Rate applies will change automatically without notice to the Borrower, effective on the date of any such change. 

“Business Day” shall mean any day other than a Saturday or Sunday or a legal holiday on which commercial banks are
authorized or required by law to be closed for business in Cincinnati, Ohio. 
 “Daily LIBOR Rate” shall mean,
for any day, the rate per annum determined by the Bank by dividing (A) the Published Rate by (B) a number equal to 1.00 minus the percentage prescribed by the Federal Reserve for determining the maximum reserve requirements with
respect to any eurocurrency fundings by banks on such day. The rate of interest will be adjusted automatically as of each Business Day based on changes in the Daily LIBOR Rate without notice to the Borrower. 

“Federal Funds Open Rate” shall mean, for any day, the rate per annum (based on a year of 360 days and actual days
elapsed) which is the daily federal funds open rate as quoted by ICAP North America, Inc. (or any successor) as set forth on the Bloomberg Screen BTMM for that day opposite the caption “OPEN” (or on such other substitute Bloomberg Screen
that displays such rate), or as set forth on such other recognized electronic source used for the purpose of displaying such rate as selected by the Bank (an “Alternate Source”) (or if such rate for such day does not appear on the
Bloomberg Screen BTMM (or any substitute screen) or on any Alternate Source, or if there shall at any time, for any reason, no longer exist a Bloomberg Screen BTMM (or any substitute screen) or any Alternate Source, a comparable replacement rate
determined by the Bank at such time (which determination shall be conclusive absent manifest error); provided however, that if such day is not a Business Day, the Federal Funds Open Rate for such day shall be the “open” rate on the
immediately preceding Business Day. The rate of interest charged shall be adjusted as of each Business Day based on changes in the Federal Funds Open Rate without notice to the Borrower. 

  

					
		 		 	Form 8F
		 	- 2 -	 	

 “Prime Rate” shall mean the rate publicly announced by the Bank from time
to time as its prime rate. The Prime Rate is determined from time to time by the Bank as a means of pricing some loans to its borrowers. The Prime Rate is not tied to any external rate of interest or index, and does not necessarily reflect the
lowest rate of interest actually charged by the Bank to any particular class or category of customers. 
 “Published Rate”
shall mean the rate of interest published each Business Day in the Wall Street Journal “Money Rates” listing under the caption “London Interbank Offered Rates” for a one month period (or, if no such rate is published therein for
any reason, then the Published Rate shall be the eurodollar rate for a one month period as published in another publication selected by the Bank). 
 3. Advance Procedures. A request for advance made by telephone must be promptly confirmed in writing by such method as the Bank may require. The Borrower authorizes the Bank to accept
telephonic or email requests for advances, and the Bank shall be entitled to rely upon the authority of any person providing such instructions. The Borrower hereby indemnifies and holds the Bank harmless from and against any and all damages, losses,
liabilities, costs and expenses (including reasonable attorneys’ fees and expenses) which may arise or be created by the acceptance of such telephone requests or making such advances. The Bank will enter on its books and records, which entry
when made will be presumed correct, the date and amount of each advance, the interest rate and interest period applicable thereto, as well as the date and amount of each payment. 
 4. Payment Terms. 
 (i) Payment of
Interest. Interest shall be due and payable monthly, commencing on December 1, 2011, and continuing on the
1st day of each month thereafter until the Expiration
Date, on which date all outstanding principal and accrued interest shall be due and payable in full. 
 (ii)
Payment of Principal; Permanent Reduction in the Facility. Commencing on May 1, 2013, and on the
1st day of each month thereafter until the Expiration
Date, the Facility shall be permanently reduced by $19,660.00. If the principal outstanding balance of the Facility exceeds the reduced Facility on any such date, Borrower shall make a principal payment in an amount sufficient to reduce the
principal balance to at least the amount of the then Facility. 
 If any payment under this Note shall become due on a Saturday, Sunday or
public holiday under the laws of the State where the Bank’s office indicated above is located, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in computing interest in connection with
such payment. The Borrower hereby authorizes the Bank to charge the Borrower’s deposit account at the Bank for any payment when due hereunder. Payments received will be applied to charges, fees and expenses (including attorneys’ fees),
accrued interest and principal in any order the Bank may choose, in its sole discretion. 
 5. Late Payments; Default Rate. If the
Borrower fails to make any payment of principal, interest or other amount coming due pursuant to the provisions of this Note within fifteen (15) calendar days of the date due and payable, the Borrower also shall pay to the Bank a late charge
equal to the greater of five percent (5%) of the amount of such payment or $100.00 (the “Late Charge”). Such fifteen (15) day period shall not be construed in any way to extend the due date of any such payment. Upon
maturity, whether by acceleration, demand or otherwise, and at the Bank’s option upon the occurrence of any Event of Default (as hereinafter defined) and during the continuance thereof, each advance outstanding under this Note shall bear
interest at a rate per annum (based on the actual number of days that principal is outstanding over a year of 360 days) which shall be three percentage points (3%) in excess of the interest rate in effect from time to time under this Note
but not more than the maximum rate allowed by law (the “Default Rate”). The Default Rate shall continue to apply whether or not judgment shall be entered on this Note. Both the Late Charge and the Default Rate are imposed as
liquidated damages for the purpose of defraying the Bank’s expenses incident to the handling of delinquent payments, but are in addition to, and not in lieu of, the Bank’s exercise of any rights and remedies hereunder, under the other Loan
Documents or under applicable law, and any fees and expenses of any agents or attorneys which the Bank may employ. In addition, the Default Rate reflects the increased credit risk to the Bank of carrying a loan that is

  

					
		 		 	Form 8F
		 	- 3 -	 	

 
in default. The Borrower agrees that the Late Charge and Default Rate are reasonable forecasts of just compensation for anticipated and actual harm incurred by the Bank, and that the actual harm
incurred by the Bank cannot be estimated with certainty and without difficulty. 
 6. Prepayment. The indebtedness evidenced by
this Note may be prepaid in whole or in part at any time without penalty. 
 7. Other Loan Documents. This Note is issued in
connection with a Loan Agreement between the Borrower and the Bank, dated on or before the date hereof (the “Loan Agreement”), and the other agreements and documents executed and/or delivered in connection therewith or referred to therein,
the terms of which are incorporated herein by reference (as amended, modified or renewed from time to time, collectively the “Loan Documents”), and is secured by the property (if any) described in the Loan Documents and by such
other collateral as previously may have been or may in the future be granted to the Bank to secure this Note. 
 8. Events of
Default. The occurrence of any of the following events will be deemed to be an “Event of Default” under this Note: (i) the nonpayment of any principal, interest or other indebtedness under this Note when due;
(ii) the occurrence of any event of default or any default and the lapse of any notice or cure period, or any Obligor’s failure to observe or perform any covenant or other agreement, under or contained in any Loan Document or any other
document now or in the future evidencing or securing any debt, liability or obligation of Borrower to the Bank; (iii) the filing by or against any Obligor of any proceeding in bankruptcy, receivership, insolvency, reorganization, liquidation,
conservatorship or similar proceeding (and, in the case of any such proceeding instituted against any Obligor, such proceeding is not dismissed or stayed within 30 days of the commencement thereof, provided that the Bank shall not be obligated to
advance additional funds hereunder during such period); (iv) any assignment by any Obligor for the benefit of creditors, or any levy, garnishment, attachment or similar proceeding is instituted against any property of any Obligor held by or
deposited with the Bank; (v) a default with respect to any other indebtedness of Borrower for borrowed money, if the effect of such default is to cause or permit the acceleration of such debt; (vi) the commencement of any foreclosure or
forfeiture proceeding, execution or attachment against any collateral securing the obligations of any Obligor to the Bank; (vii) the entry of a final judgment against any Obligor and the failure of such Obligor to discharge the judgment within
ten (10) days of the entry thereof; (viii) any material adverse change in any Obligor’s business, assets, operations, financial condition or results of operations; (ix) any Obligor ceases doing business as a going concern;
(x) any representation or warranty made by any Obligor to the Bank in any Loan Document or any other documents now or in the future evidencing or securing the obligations of any Obligor to the Bank, is false, erroneous or misleading in any
material respect; (xi) the revocation or attempted revocation, in whole or in part, of any guarantee by any Obligor; or (xii) the death, indictment, or legal incompetency of any individual Obligor or, if any Obligor is a partnership or
limited liability company, the death, indictment, or legal incompetency of both Jeffrey Edison and Michael Phillips. As used herein, the term “Obligor” means any Borrower and any guarantor of, or any pledgor, mortgagor or other
person or entity providing collateral support for, the Borrower’s obligations to the Bank existing on the date of this Note or arising in the future. 
 Upon the occurrence of an Event of Default: (a) the Bank shall be under no further obligation to make advances hereunder; (b) if an Event of Default specified in clause (iii) or
(iv) above shall occur, the outstanding principal balance and accrued interest hereunder together with any additional amounts payable hereunder shall be immediately due and payable without demand or notice of any kind; (c) if any other
Event of Default shall occur, the outstanding principal balance and accrued interest hereunder together with any additional amounts payable hereunder, at the Bank’s option and without demand or notice of any kind, may be accelerated and become
immediately due and payable; (d) at the Bank’s option, this Note will bear interest at the Default Rate from the date of the occurrence of the Event of Default; and (e) the Bank may exercise from time to time any of the rights and
remedies available under the Loan Documents or under applicable law. 
 9. Compliance Certification. Borrower certifies, and in
connection with each advance hereunder shall be deemed to have recertified, that, Borrower, its sole member and any guarantor of the Loan are in, and shall remain in, compliance with any and all covenants and investment strategies, as set forth in
each such entity’s governing documents, as such covenants and investment strategies may be affected by the amount of the outstanding principal balance due hereunder. 

  

					
		 		 	Form 8F
		 	- 4 -	 	

 10. Indemnity. The Borrower agrees to indemnify each of the Bank, each legal entity, if any,
who controls, is controlled by or is under common control with the Bank, and each of their respective directors, officers and employees (the “Indemnified Parties”), and to defend and hold each Indemnified Party harmless from and
against any and all claims, damages, losses, liabilities and expenses (including all fees and charges of internal or external counsel with whom any Indemnified Party may consult and all expenses of litigation and preparation therefor) which any
Indemnified Party may incur or which may be asserted against any Indemnified Party by any person, entity or governmental authority (including any person or entity claiming derivatively on behalf of the Borrower), in connection with or arising out of
or relating to the matters referred to in this Note or in the other Loan Documents or the use of any advance hereunder, whether (a) arising from or incurred in connection with any breach of a representation, warranty or covenant by the
Borrower, or (b) arising out of or resulting from any suit, action, claim, proceeding or governmental investigation, pending or threatened, whether based on statute, regulation or order, or tort, or contract or otherwise, before any court or
governmental authority; provided, however, that the foregoing indemnity agreement shall not apply to any claims, damages, losses, liabilities and expenses solely attributable to an Indemnified Party’s gross negligence or willful
misconduct. The indemnity agreement contained in this Section shall survive the termination of this Note, payment of any advance hereunder and the assignment of any rights hereunder. The Borrower may participate at its expense in the defense of any
such action or claim. 
 11. Miscellaneous. All notices, demands, requests, consents, approvals and other communications required
or permitted hereunder (“Notices”) must be in writing (except as may be agreed otherwise above with respect to borrowing requests) and will be effective upon receipt. Notices may be given in any manner to which the parties may
separately agree, including electronic mail. Without limiting the foregoing, first-class mail, facsimile transmission and commercial courier service are hereby agreed to as acceptable methods for giving Notices. Regardless of the manner in which
provided, Notices may be sent to a party’s address as set forth above or to such other address as any party may give to the other for such purpose in accordance with this paragraph. No delay or omission on the Bank’s part to exercise any
right or power arising hereunder will impair any such right or power or be considered a waiver of any such right or power, nor will the Bank’s action or inaction impair any such right or power. The Bank’s rights and remedies hereunder are
cumulative and not exclusive of any other rights or remedies which the Bank may have under other agreements, at law or in equity. No modification, amendment or waiver of, or consent to any departure by the Borrower from, any provision of this Note
will be effective unless made in a writing signed by the Bank, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. The Borrower agrees to pay on demand, to the extent permitted by
law, all costs and expenses incurred by the Bank in the enforcement of its rights in this Note and in any security therefor, including without limitation reasonable fees and expenses of the Bank’s counsel. If any provision of this Note is found
to be invalid, illegal or unenforceable in any respect by a court, all the other provisions of this Note will remain in full force and effect. The Borrower and all other makers and indorsers of this Note hereby forever waive presentment, protest,
notice of dishonor and notice of non-payment. The Borrower also waives all defenses based on suretyship or impairment of collateral. If this Note is executed by more than one Borrower, the obligations of such persons or entities hereunder will be
joint and several. This Note shall bind the Borrower and its heirs, executors, administrators, successors and assigns, and the benefits hereof shall inure to the benefit of the Bank and its successors and assigns; provided, however,
that the Borrower may not assign this Note in whole or in part without the Bank’s written consent and the Bank at any time may assign this Note in whole or in part. 
 This Note has been delivered to and accepted by the Bank and will be deemed to be made in the State where the Bank’s office indicated above is located. THIS NOTE
WILL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE BANK AND
THE BORROWER DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE
WHERE THE BANK’S OFFICE INDICATED ABOVE IS LOCATED, EXCLUDING ITS
CONFLICT OF LAWS RULES. The Borrower hereby irrevocably consents to the exclusive jurisdiction of any state or federal court in the county or judicial district where the Bank’s
office indicated above is located; provided that nothing contained in this Note will prevent the Bank from bringing any action, enforcing any award or judgment or exercising any rights against the Borrower individually, against any security or
against any property of the Borrower within any other county, state or other foreign or domestic jurisdiction. The Borrower acknowledges and agrees that the venue provided above is the most convenient forum for both the Bank and the Borrower. The
Borrower waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Note. 

  

					
		 		 	Form 8F
		 	- 5 -	 	

 12. Commercial Purpose. The Borrower represents that the indebtedness evidenced by this Note
is being incurred by the Borrower solely for the purpose of acquiring or carrying on a business, professional or commercial activity, and not for personal, family or household purposes. 
 13. Authorization to Obtain Credit Reports. By signing below, each Borrower who is an individual provides written authorization to the Bank or its designee (and any assignee or potential
assignee hereof) to obtain the Borrower’s personal credit profile from one or more national credit bureaus. Such authorization shall extend to obtaining a credit profile in considering this Note and subsequently for the purposes of update,
renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account. 
 14. Extension
Option. Borrower shall have the option to extend the Initial Expiration Date (the “Extension Option”) for one (1) additional period of twelve (12) months to the Extended Expiration Date on satisfaction of the following
conditions: 
 (i) No Event of Default shall have occurred and be continuing under any of the Loan Documents; 

(ii) There shall have occurred no material adverse change, as determined by the Bank in its sole discretion, in the financial condition
of Borrower or any guarantor of the Loan that could reasonably be expected to threaten the ability of Borrower or any guarantor to fulfill their obligations under the Loan Documents, from that which existed as of the later of: (A) the
November 1, 2013 or (B) the date upon which the financial condition of such party was first represented to the Bank; 

(iii) Borrower and Guarantor are in full compliance with all required Financial Covenants (as defined in the Loan Agreement; 

(iv) The Debt Yield meets or exceeds 11.15%; 
 (v) Borrower notifies the Bank in writing at least thirty (30) days prior to the Initial Expiration Date that Borrower wishes to exercise the Extension Option; and 

(vi) Borrower pays the Bank a non-refundable extension fee equal to 0.25% of the principal amount of the Facility outstanding as of the
date of exercise of the Extension Option; 
 Remainder of Page Intentionally Left Blank 

  

					
		 		 	Form 8F
		 	- 6 -	 	

 15. WAIVER OF JURY TRIAL. THE BORROWER IRREVOCABLY
WAIVES ANY AND ALL RIGHTS THE BORROWER MAY HAVE TO A TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE RELATING
TO THIS NOTE, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS NOTE OR
ANY TRANSACTION CONTEMPLATED IN ANY OF SUCH DOCUMENTS. THE BORROWER ACKNOWLEDGES
THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY. 
 The Borrower acknowledges that it has read and understood all the provisions of this Note, including the waiver of jury trial, and has been advised by counsel as necessary or appropriate.

 WITNESS the due execution hereof as a document under seal, as of the date first written above, with the intent to be legally bound
hereby. 

 

			
	 WITNESS / ATTEST:

	
	 /s/ Barbara Hood

			
		
	 Print Name:
	 	 Barbara Hood

			
	 Title:
	 	  

	 (Include title only if an officer of entity signing to the right)

 

			
	 BURWOOD STATION LLC, a Delaware
 limited liability company

			
		
	By:	 	 /s/ Richard J. Smith

		 	(SEAL)

			
	Print Name:	 	 Richard J. Smith

			
	Title:	 	 Vice President

 
 

  
 [Signature page to
Revolving Term Note] 

  

					
		 		 	Form 8F
		 	- 7 -Limited Guaranty Agreement

 Exhibit 10.36 

 

			
	Limited Guaranty Agreement	 	

 THIS LIMITED GUARANTY AGREEMENT (this “Guaranty”) is made effective as of the 9th
day of November, 2011, by PHILLIPS EDISON – ARC SHOPPING CENTER OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (the “Guarantor”), with an address at 11501 Northlake Drive, Cincinnati, Ohio 45247, in
consideration of the extension of credit by PNC BANK, NATIONAL ASSOCIATION, (the “Bank”), with an address at 201 East Fifth Street, Cincinnati, Ohio 45202, to BURWOOD STATION LLC, a Delaware limited liability company
(the “Borrower”), and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged. 
 1. Guaranty of Obligations. The Guarantor hereby unconditionally guarantees, as a primary obligor, the prompt payment and performance of, subject to the limitations set forth below, all
loans, advances, debts, liabilities, obligations, covenants and duties owing by the Borrower to the Bank or to any other direct or indirect subsidiary of The PNC Financial Services Group, Inc., of any kind or nature, present or future (including any
interest accruing thereon after maturity, or after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding relating to the Borrower, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding), whether direct or indirect (including those acquired by assignment or participation), absolute or contingent, joint or several, due or to become due, now existing or hereafter arising, whether or not
(i) evidenced by any note, guaranty or other instrument, (ii) arising under any agreement, instrument or document, (iii) for the payment of money, (iv) arising by reason of an extension of credit, opening of a letter of credit,
loan, equipment lease or guarantee, (v) under any interest or currency swap, future, option or other interest rate protection or similar agreement, (vi) under or by reason of any foreign currency transaction, forward, option or other
similar transaction providing for the purchase of one currency in exchange for the sale of another currency, or in any other manner, or (vii) arising out of overdrafts on deposit or other accounts or out of electronic funds transfers (whether
by wire transfer or through automated clearing houses or otherwise) or out of the return unpaid of, or other failure of the Bank to receive final payment for, any check, item, instrument, payment order or other deposit or credit to a deposit or
other account, or out of the Bank’s non-receipt of or inability to collect funds or otherwise not being made whole in connection with depository or other similar arrangements; and any amendments, extensions, renewals and increases of or to any
of the foregoing, and all costs and expenses of the Bank incurred in the documentation, negotiation, modification, enforcement, collection and otherwise in connection with any of the foregoing, including reasonable attorneys’ fees and expenses;
provided, however, that the Guarantor’s liability hereunder shall not exceed the sum of (i) the Principal Obligation (as hereinafter defined), plus (ii) all accrued and unpaid interest and all costs and expenses arising
under or in connection with the Revolving Term Note of even date herewith (the “Note”), plus (iii) the Carve-Out Obligations (as hereinafter defined) (collectively, the “Obligations”). If the Borrower defaults
under any such Obligations, the Guarantor will pay the amount due to the Bank. For purposes of this Guaranty, “Principal Obligation” shall mean 25% of the outstanding principal balance as of the date of acceleration by the Bank.

 2. Carve-Out Obligations. Guarantor hereby assumes liability for, hereby agrees to pay, and hereby guarantees
payment to the Bank of, all claims, demands, liabilities, losses, damages, judgments, penalties, costs and expenses, including, without limitation, reasonable attorney’s fees and disbursements, which may be imposed upon, asserted against or
incurred or paid by the Bank by reason of, on account of or in connection with: 
 (i) security deposits of
tenants of the Property (as defined in the Deed of Trust, Assignment and Security Agreement of even date herewith (the “Deed”)) executed by Borrower in favor of the Bank, which have not been paid over to the Bank; 

(ii) any rents prepaid by any tenant of the Property more than one (1) month in advance; 

  
 Form 9A

 (iii) fraud or material misrepresentation on the part of Borrower;

 (iv) Borrower’s failure to pay, or cause to be paid, real estate taxes or other assessments against the
Property; 
 (v) Borrower’s failure to maintain, or cause to be maintained, insurance as required under the
Loan Documents (as defined in the Deed); 
 (vi) misuse, misapplication, or misappropriation of funds generated
by, or waste of, the Property in contravention of the Loan Documents; 
 (vii) a voluntary bankruptcy or
insolvency proceeding of the Borrower; 
 (viii) an involuntary bankruptcy or insolvency proceeding of Borrower
which is not dismissed within ninety (90) days of the filing thereof; 
 (ix) Borrower’s or
Grantor’s interference with Bank’s exercise of the rights and remedies contained in the Loan Documents, but not the exercise of legitimate defenses put forward in good faith; 

(x) any transfers of title to the Property in violation of the terms and conditions of the Loan Documents; or 

(xi) any further encumbrance of the Property or the ownership interest of the Borrower or Guarantor. 

3. Nature of Guaranty; Waivers. This is a guaranty of payment and not of collection and the Bank shall not be required or
obligated, as a condition of the Guarantor’s liability, to make any demand upon or to pursue any of its rights against the Borrower, or to pursue any rights which may be available to it with respect to any other person who may be liable for the
payment of the Obligations. 
 This is an absolute, unconditional, irrevocable and continuing guaranty and will remain in full
force and effect until all of the Obligations have been indefeasibly paid in full, and the Bank has terminated this Guaranty. This Guaranty will remain in full force and effect even if there is no principal balance outstanding under the Obligations
at a particular time or from time to time. This Guaranty will not be affected by any surrender, exchange, acceptance, compromise or release by the Bank of any other party, or any other guaranty or any security held by it for any of the Obligations,
by any failure of the Bank to take any steps to perfect or maintain its lien or security interest in or to preserve its rights to any security or other collateral for any of the Obligations or any guaranty, or by any irregularity, unenforceability
or invalidity of any of the Obligations or any part thereof or any security or other guaranty thereof. The Guarantor’s obligations hereunder shall not be affected, modified or impaired by any counterclaim, set-off recoupment, deduction or
defense based upon any claim the Guarantor may have (directly or indirectly) against the Borrower or the Bank, except payment or performance of the Obligations. 
 Notice of acceptance of this Guaranty, notice of extensions of credit to the Borrower from time to time, notice of default, diligence, presentment, notice of dishonor, protest, demand for payment, and any
defense based upon the Bank’s failure to comply with the notice requirements under Sections 9-611 and 9-612 of the Uniform Commercial Code as in effect from time to time are hereby waived. The Guarantor waives all defenses based on suretyship
or impairment of collateral. 
 The Bank at any time and from time to time, without notice to or the consent of the Guarantor,
and without impairing or releasing, discharging or modifying the Guarantor’s liabilities hereunder, may (a) change the manner, place, time or terms of payment or performance of or interest rates on, or other terms relating to, any of the
Obligations; (b) renew, substitute, modify, amend or alter, or grant consents or waivers relating to any of the Obligations, any other guaranties, or any security for any Obligations or guaranties; (c) apply any and all

  

					
		 		 	Form 9A
		 	- 2 -	 	

 
payments by whomever paid or however realized including any proceeds of any collateral, to any Obligations of the Borrower in such order, manner and amount as the Bank may determine in its sole
discretion; (d) settle, compromise or deal with any other person, including the Borrower or the Guarantor, with respect to any Obligations in such manner as the Bank deems appropriate in its sole discretion; (e) substitute, exchange or
release any security or guaranty; or (f) take such actions and exercise such remedies hereunder as provided herein. 

4. Repayments or Recovery from the Bank. If any demand is made at any time upon the Bank for the repayment or recovery of
any amount received by it in payment or on account of any of the Obligations and if the Bank repays all or any part of such amount by reason of any judgment, decree or order of any court or administrative body or by reason of any settlement or
compromise of any such demand, the Guarantor will be and remain liable hereunder for the amount so repaid or recovered to the same extent as if such amount had never been received originally by the Bank. The provisions of this section will be and
remain effective notwithstanding any contrary action which may have been taken by the Guarantor in reliance upon such payment, and any such contrary action so taken will be without prejudice to the Bank’s rights hereunder and will be deemed to
have been conditioned upon such payment having become final and irrevocable. 
 5. Financial Statements. Upon the
Bank’s written request, Guarantor shall furnish to the Bank: 
 (a) as soon as available but in no event more than ninety
(90) days after the close of the fiscal year of Guarantor, a copy of Guarantor’s unqualified, audited annual financial statements; and 
 (b) within forty-five (45) days after the close of each fiscal quarter of Guarantor, financial statements, in form and substance reasonably satisfactory to the Bank, certified as accurate by an
authorized financial officer of Guarantor; and 
 (c) such other information about the financial condition and operations of
Guarantor as the Bank may, from time to time, reasonable request. 
 6. Intentionally Deleted. 

7. Enforceability of Obligations. No modification, limitation or discharge of the Obligations arising out of or by virtue
of any bankruptcy, reorganization or similar proceeding for relief of debtors under federal or state law will affect, modify, limit or discharge the Guarantor’s liability in any manner whatsoever and this Guaranty will remain and continue in
full force and effect and will be enforceable against the Guarantor to the same extent and with the same force and effect as if any such proceeding had not been instituted. The Guarantor waives all rights and benefits which might accrue to it by
reason of any such proceeding and will be liable to the full extent hereunder, irrespective of any modification, limitation or discharge of the liability of the Borrower that may result from any such proceeding. 

8. Events of Default. The occurrence of any of the following shall be an “Event of Default”: (i) any
Event of Default (as defined in any of the Obligations); (ii) any default under any of the Obligations that does not have a defined set of “Events of Default” and the lapse of any notice or cure period provided in such Obligations
with respect to such default; (iii) demand by the Bank under any of the Obligations that have a demand feature; (iv) the Guarantor’s failure to perform any of its obligations hereunder within thirty (30) days after receipt of
notice that such obligation was not performed; (v) the falsity, inaccuracy or material breach by the Guarantor of any written warranty, representation or statement made or furnished to the Bank by or on behalf of the Guarantor; or (vi) the
termination or attempted termination of this Guaranty. Upon the occurrence of any Event of Default, the Guarantor shall pay to the Bank the amount of the Obligations; or (b) the Bank in its discretion may exercise with respect to any collateral
any one or more of the rights and remedies provided a secured party under the applicable version of the Uniform Commercial Code; or (c) the Bank in its discretion may exercise from time to time any other rights and remedies available to it at
law, in equity or otherwise. 

  

					
		 		 	Form 9A
		 	- 3 -	 	

 9. Intentionally Omitted. 

10. Collateral. This Guaranty is secured by the property described in any collateral security documents which the Guarantor
executes and delivers to the Bank and by such other collateral as previously may have been or may in the future be granted to the Bank to secure any Obligations of the Guarantor to the Bank. 

11. Costs. To the extent that the Bank incurs any costs or expenses in protecting or enforcing its rights under the
Obligations or this Guaranty, including reasonable attorneys’ fees and the costs and expenses of litigation, such costs and expenses will be due on demand, will be included in the Obligations and will bear interest from the incurring or payment
thereof at the Default Rate (as defined in any of the Obligations). 
 12. Postponement of Subrogation. Until the
Obligations are indefeasibly paid in full, expire, are terminated and are not subject to any right of revocation or rescission, the Guarantor postpones and subordinates in favor of the Bank or its designee (and any assignee or potential assignee)
any and all rights which the Guarantor may have to (a) assert any claim whatsoever against the Borrower based on subrogation, exoneration, reimbursement, or indemnity or any right of recourse to security for the Obligations with respect to
payments made hereunder, and (b) any realization on any property of the Borrower, including participation in any marshalling of the Borrower’s assets. 
 13. Intentionally Omitted. 
 14. Notices. All notices,
demands, requests, consents, approvals and other communications required or permitted hereunder (“Notices”) must be in writing and will be effective upon receipt. Notices may be given in any manner to which the Bank and the
Guarantor may separately agree, including electronic mail. Without limiting the foregoing, first-class mail, facsimile transmission and commercial courier service are hereby agreed to as acceptable methods for giving Notices. Regardless of the
manner in which provided, Notices may be sent to addresses for the Bank and the Guarantor as set forth above or to such other address as either may give to the other for such purpose in accordance with this section. 

15. Preservation of Rights. No delay or omission on the Bank’s part to exercise any right or power arising hereunder
will impair any such right or power or be considered a waiver of any such right or power, nor will the Bank’s action or inaction impair any such right or power. The Bank’s rights and remedies hereunder are cumulative and not exclusive of
any other rights or remedies which the Bank may have under other agreements, at law or in equity. The Bank may proceed in any order against the Borrower, the Guarantor or any obligor of, or any collateral securing, the Obligations. 

16. Illegality. If any provision contained in this Guaranty should be invalid, illegal or unenforceable in any respect, it
shall not affect or impair the validity, legality and enforceability of the remaining provisions of this Guaranty. 
 17.
Changes in Writing. No modification, amendment or waiver of, or consent to any departure by the Guarantor from, any provision of this Guaranty will be effective unless made in a writing signed by the Bank, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which given. No notice to or demand on the Guarantor will entitle the Guarantor to any other or further notice or demand in the same, similar or other circumstance. 

18. Entire Agreement. This Guaranty (including the documents and instruments referred to herein) constitutes the entire
agreement and supersedes all other prior agreements and understandings, both written and oral, between the Guarantor and the Bank with respect to the subject matter hereof; provided, however, that this Guaranty is in addition to, and not in
substitution for, any other guarantees from the Guarantor to the Bank. 

  

					
		 		 	Form 9A
		 	- 4 -	 	

 19. Successors and Assigns. This Guaranty will be binding upon and inure to
the benefit of the Guarantor and the Bank and their respective heirs, executors, administrators, successors and assigns; provided, however, that the Guarantor may not assign this Guaranty in whole or in part without the Bank’s
prior written consent and the Bank at any time may assign this Guaranty in whole or in part. 
 20.
Interpretation. In this Guaranty, unless the Bank and the Guarantor otherwise agree in writing, the singular includes the plural and the plural the singular; references to statutes are to be construed as including all statutory provisions
consolidating, amending or replacing the statute referred to; the word “or” shall be deemed to include “and/or”, the words “including”, “includes” and “include” shall be deemed to be followed by the
words “without limitation”; and references to sections or exhibits are to those of this Guaranty. Section headings in this Guaranty are included for convenience of reference only and shall not constitute a part of this Guaranty for any
other purpose. If this Guaranty is executed by more than one party as Guarantor, the obligations of such persons or entities will be joint and several. 
 21. Indemnity. The Guarantor agrees to indemnify each of the Bank, each legal entity, if any, who controls, is controlled by or is under common control with the Bank and each of their
respective directors, officers and employees (the “Indemnified Parties”), and to defend and hold each Indemnified Party harmless from and against, any and all claims, damages, losses, liabilities and expenses (including all fees and
charges of internal or external counsel with whom any Indemnified Party may consult and all expenses of litigation and preparation therefor) which any Indemnified Party may incur or which may be asserted against any Indemnified Party by any person,
entity or governmental authority (including any person or entity claiming derivatively on behalf of the Guarantor), in connection with or arising out of or relating to the matters referred to in this Guaranty, whether (a) arising from or
incurred in connection with any breach of a representation, warranty or covenant by the Guarantor, or (b) arising out of or resulting from any suit, action, claim, proceeding or governmental investigation, pending or threatened, whether based
on statute, regulation or order, or tort, or contract or otherwise, before any court or governmental authority; provided, however, that the foregoing indemnity agreement shall not apply to any claims, damages, losses, liabilities and
expenses solely attributable to an Indemnified Party’s gross negligence or willful misconduct. The indemnity agreement contained in this Section shall survive the termination of this Guaranty and assignment of any rights hereunder. The
Guarantor may participate at its expense in the defense of any such claim. 
 22. Governing Law and Jurisdiction.
This Guaranty has been delivered to and accepted by the Bank and will be deemed to be made in the State where the Bank’s office indicated above is located. THIS GUARANTY WILL BE
INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE BANK AND THE
GUARANTOR DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE WHERE
THE BANK’S OFFICE INDICATED ABOVE IS LOCATED, EXCLUDING ITS CONFLICT
OF LAWS RULES. The Guarantor hereby irrevocably consents to the exclusive jurisdiction of any state or federal court in the county or judicial district where the Bank’s office indicated above is
located; provided that nothing contained in this Guaranty will prevent the Bank from bringing any action, enforcing any award or judgment or exercising any rights against the Guarantor individually, against any security or against any property of
the Guarantor within any other county, state or other foreign or domestic jurisdiction. The Guarantor acknowledges and agrees that the venue provided above is the most convenient forum for both the Bank and the Guarantor. The Guarantor waives any
objection to venue and any objection based on a more convenient forum in any action instituted under this Guaranty. 
 23.
Equal Credit Opportunity Act. If the Guarantor is not an “applicant for credit” under Section 202.2 (e) of the Equal Credit Opportunity Act of 1974 (“ECOA”), the Guarantor acknowledges that (i) this
Guaranty has been executed to provide credit support for the Obligations, and (ii) the Guarantor was not required to execute this Guaranty in violation of Section 202.7(d) of the ECOA. 

24. Intentionally Omitted. 

  

					
		 		 	Form 9A
		 	- 5 -	 	

 25. Release. At such time that Guarantor transfers 100% of its membership
interest in Borrower to PECO – ARC Institutional REIT LLC, a Delaware limited liability company (“PECO-ARC”), Guarantor will be released from its obligations hereunder and this Guaranty shall be null and void provided that
(i) such transfer is in full compliance with the terms and conditions of the Permitted Transfer (as defined in the Loan Agreement) and (ii) PECO-ARC has executed and delivered the Limited Guaranty Agreement attached hereto as Exhibit A.

 REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 

  

					
		 		 	Form 9A
		 	- 6 -	 	

 26. WAIVER OF JURY
TRIAL. THE GUARANTOR IRREVOCABLY WAIVES ANY AND ALL RIGHT THE
GUARANTOR MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR CLAIM OF ANY NATURE RELATING TO THIS GUARANTY, ANY DOCUMENTS
EXECUTED IN CONNECTION WITH THIS GUARANTY OR ANY TRANSACTION CONTEMPLATED IN
ANY OF SUCH DOCUMENTS. THE GUARANTOR ACKNOWLEDGES THAT THE FOREGOING WAIVER
IS KNOWING AND VOLUNTARY. 
 The Guarantor acknowledges that
it has read and understood all the provisions of this Guaranty, including the waiver of jury trial, and has been advised by counsel as necessary or appropriate. 
 WITNESS the due execution hereof as a document under seal, as of the date first written above, with the intent to be legally bound hereby. 
 WITNESS / ATTEST: 
  

													
		 		 		  	PHILLIPS EDISON – ARC SHOPPING CENTER OPERATING PARTNERSHIP, L.P., a Delaware limited partnership
					
	By:	 	 /s/ Barbara Hood
	 		  	By:	  	 Phillips Edison – ARC Shopping Center OP GP,
 LLC, a Delaware limited liability company, its
 General Partner

	Name:	 	 Barbara Hood
	 		  		  
		 		 		  		  
						
		 		 		  		  	By:	  	 Phillips Edison – ARC Shopping Center REIT
 Inc., a Maryland corporation, its sole member

		 		 		  		  		  
							
		 		 		  		  		  	By:	 	 /s/ Richard J. Smith

		 		 		  		  		  	Name:	 	 Richard J. Smith

		 		 		  		  		  	Title:	 	 Vice President

 [Signature Page to Limited Guaranty Agreement] 

  

					
		 		 	Form 9A
		 	- 7 -	 	

 EXHIBIT A 
 Form of Limited Guaranty Agreement 

  

					
		 		 	Form 9A
		 	- 8 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}]]