Document:

exv10w2

Exhibit 10.2

 

 

LOAN AGREEMENT

Dated as of November 1, 2004

Between

CEDAR-FRANKLIN VILLAGE LLC,

as Borrower

and

EUROHYPO AG, NEW YORK BRANCH,

as Lender

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	I. DEFINITIONS; PRINCIPLES OF CONSTRUCTION	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.1

	 	Definitions
	 	 	1	 
	Section 1.2

	 	Principles of Construction
	 	 	16	 
	 
	 	 	 	 	 	 
	II. THE LOAN	 	 	16	 
	 
	 	 	 	 	 	 
	Section 2.1

	 	The Loan
	 	 	16	 
	2.1.1

	 	Agreement to Lend and Borrow
	 	 	16	 
	2.1.2

	 	Single Disbursement to Borrower
	 	 	17	 
	2.1.3

	 	The Note
	 	 	17	 
	2.1.4

	 	Use of Proceeds
	 	 	17	 
	Section 2.2

	 	Interest Rate
	 	 	17	 
	2.2.1

	 	Interest Rate
	 	 	17	 
	2.2.2

	 	Intentionally Omitted
	 	 	17	 
	2.2.3

	 	Default Rate
	 	 	17	 
	2.2.4

	 	Interest Calculation
	 	 	17	 
	2.2.5

	 	Usury Savings
	 	 	17	 
	Section 2.3

	 	Loan Payments
	 	 	18	 
	2.3.1

	 	Payment Before Maturity Date
	 	 	18	 
	2.3.2

	 	Intentionally Omitted
	 	 	18	 
	2.3.3

	 	Payment on Maturity Date
	 	 	18	 
	2.3.4

	 	Late Payment Charge
	 	 	18	 
	2.3.5

	 	Method and Place of Payment
	 	 	18	 
	Section 2.4

	 	Prepayments
	 	 	19	 
	2.4.1

	 	Voluntary Prepayments
	 	 	19	 
	2.4.2

	 	Mandatory Prepayments
	 	 	19	 
	2.4.3

	 	Prepayments After Default
	 	 	19	 
	Section 2.5

	 	Defeasance
	 	 	19	 
	2.5.1

	 	Total Defeasance
	 	 	19	 
	2.5.2

	 	Partial Defeasance
	 	 	21	 
	2.5.3

	 	Defeasance Collateral Account
	 	 	24	 
	2.5.4

	 	Successor Borrower
	 	 	24	 
	Section 2.6

	 	Foreign Lenders
	 	 	25	 
	 
	 	 	 	 	 	 
	III. REPRESENTATIONS AND WARRANTIES	 	 	26	 
	 
	 	 	 	 	 	 
	Section 3.1

	 	Borrower Representations
	 	 	26	 
	3.1.1

	 	Organization
	 	 	26	 
	3.1.2

	 	Proceedings
	 	 	26	 
	3.1.3

	 	No Conflicts
	 	 	26	 

-i-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	3.1.4

	 	Litigation
	 	 	27	 
	3.1.5

	 	Agreements
	 	 	27	 
	3.1.6

	 	Consents
	 	 	27	 
	3.1.7

	 	Title
	 	 	27	 
	3.1.8

	 	No Plan Assets
	 	 	27	 
	3.1.9

	 	Compliance
	 	 	27	 
	3.1.10

	 	Financial Information
	 	 	28	 
	3.1.11

	 	Condemnation
	 	 	28	 
	3.1.12

	 	Utilities and Public Access
	 	 	28	 
	3.1.13

	 	Separate Lots
	 	 	28	 
	3.1.14

	 	Assessments
	 	 	28	 
	3.1.15

	 	No Defenses
	 	 	28	 
	3.1.16

	 	Assignment of Leases
	 	 	28	 
	3.1.17

	 	Insurance
	 	 	29	 
	3.1.18

	 	Licenses
	 	 	29	 
	3.1.19

	 	Flood Zone
	 	 	29	 
	3.1.20

	 	Physical Condition
	 	 	29	 
	3.1.21

	 	Boundaries
	 	 	29	 
	3.1.22

	 	Leases
	 	 	29	 
	3.1.23

	 	Filing and Recording Taxes
	 	 	30	 
	3.1.24

	 	Single Purpose
	 	 	30	 
	3.1.25

	 	Tax Filings
	 	 	33	 
	3.1.26

	 	Solvency
	 	 	34	 
	3.1.27

	 	Federal Reserve Regulations
	 	 	34	 
	3.1.28

	 	Organizational Chart
	 	 	34	 
	3.1.29

	 	Investment Company Act
	 	 	34	 
	3.1.30

	 	Access/Utilities
	 	 	34	 
	3.1.31

	 	No Bankruptcy Filing
	 	 	35	 
	3.1.32

	 	Full and Accurate Disclosure
	 	 	35	 
	3.1.33

	 	Foreign Person
	 	 	35	 
	3.1.34

	 	No Change in Facts or Circumstances; Disclosure
	 	 	35	 
	3.1.35

	 	Perfection of Accounts
	 	 	35	 
	3.1.36

	 	Intentionally Omitted
	 	 	36	 
	3.1.37

	 	Intentionally Omitted
	 	 	36	 
	3.1.38

	 	Patriot Act
	 	 	36	 
	Section 3.2

	 	Survival of Representations
	 	 	36	 
	 
	 	 	 	 	 	 
	IV. BORROWER COVENANTS	 	 	36	 
	 
	 	 	 	 	 	 
	Section 4.1

	 	Borrower Affirmative Covenants
	 	 	36	 
	4.1.1

	 	Existence; Compliance with Legal Requirements
	 	 	36	 
	4.1.2

	 	Taxes and Other Charges
	 	 	36	 
	4.1.3

	 	Litigation
	 	 	37	 
	4.1.4

	 	Access to Property
	 	 	37	 
	4.1.5

	 	Intentionally Omitted
	 	 	37	 
	4.1.6

	 	Financial Reporting
	 	 	37	 

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	 	 	 	 	Page
	 
	4.1.7

	 	Title to the Property
	 	 	39	 
	4.1.8

	 	Estoppel Statement
	 	 	39	 
	4.1.9

	 	Leases
	 	 	40	 
	4.1.10

	 	Alterations
	 	 	41	 
	4.1.11

	 	Intentionally Omitted
	 	 	41	 
	4.1.12

	 	Material Agreements
	 	 	42	 
	4.1.13

	 	Performance by Borrower
	 	 	42	 
	4.1.14

	 	Intentionally Omitted
	 	 	42	 
	4.1.15

	 	Business and Operations
	 	 	42	 
	4.1.16

	 	Loan Fees
	 	 	42	 
	4.1.17

	 	Intentionally Omitted
	 	 	42	 
	4.1.18

	 	Handicapped Access
	 	 	42	 
	4.1.19

	 	Intentionally Omitted
	 	 	43	 
	4.1.20

	 	Notice of Certain Events
	 	 	43	 
	4.1.21

	 	Further Assurances
	 	 	43	 
	4.1.22

	 	Taxes on Security
	 	 	43	 
	4.1.23

	 	Stop and Shop Estoppel
	 	 	44	 
	Section 4.2

	 	Borrower Negative Covenants
	 	 	44	 
	4.2.1

	 	Liens
	 	 	44	 
	4.2.2

	 	Dissolution
	 	 	44	 
	4.2.3

	 	Debt Cancellation
	 	 	44	 
	4.2.4

	 	Zoning
	 	 	44	 
	4.2.5

	 	No Joint Assessment
	 	 	44	 
	4.2.6

	 	Principal Place of Business
	 	 	45	 
	4.2.7

	 	ERISA
	 	 	45	 
	4.2.8

	 	Material Agreements
	 	 	45	 
	4.2.9

	 	Intentionally Deleted
	 	 	45	 
	4.2.10

	 	Intentionally Omitted
	 	 	45	 
	 
	 	 	 	 	 	 
	V. INSURANCE, CASUALTY AND CONDEMNATION	 	 	46	 
	 
	 	 	 	 	 	 
	Section 5.1

	 	Insurance
	 	 	46	 
	5.1.1

	 	Insurance Policies
	 	 	46	 
	5.1.2

	 	Insurance Company
	 	 	50	 
	Section 5.2

	 	Casualty and Condemnation
	 	 	50	 
	5.2.1

	 	Casualty
	 	 	50	 
	5.2.2

	 	Condemnation
	 	 	50	 
	5.2.3

	 	Casualty Proceeds
	 	 	51	 
	Section 5.3

	 	Delivery of Net Proceeds
	 	 	51	 
	5.3.1

	 	Minor Casualty or Condemnation
	 	 	51	 
	5.3.2

	 	Major Casualty or Condemnation
	 	 	51	 
	 
	 	 	 	 	 	 
	VI. RESERVE FUNDS	 	 	55	 
	 
	 	 	 	 	 	 
	Section 6.1

	 	Required Repair Funds
	 	 	55	 
	6.1.1

	 	Deposit of Required Repair Funds
	 	 	55	 

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	 	 	 	 	Page
	 
	6.1.2

	 	Release of Required Repair Funds
	 	 	55	 
	Section 6.2

	 	Tax Funds
	 	 	56	 
	6.2.1

	 	Deposits of Tax Funds
	 	 	56	 
	6.2.2

	 	Release of Tax Funds
	 	 	56	 
	Section 6.3

	 	Insurance Funds
	 	 	56	 
	6.3.1

	 	Deposits of Insurance Funds
	 	 	56	 
	6.3.2

	 	Release of Insurance Funds
	 	 	56	 
	Section 6.4

	 	Capital Expenditure Funds
	 	 	57	 
	6.4.1

	 	Deposits of Capital Expenditure Funds
	 	 	57	 
	6.4.2

	 	Release of Capital Expenditure Funds
	 	 	57	 
	Section 6.5

	 	Rollover Funds 	 	 	58	 
	6.5.1

	 	Deposits of Rollover Funds
	 	 	58	 
	6.5.2

	 	Release of Rollover Funds
	 	 	58	 
	Section 6.6

	 	Intentionally Deleted
	 	 	59	 
	Section 6.7

	 	Security Interest in Reserve Funds
	 	 	59	 
	6.7.1

	 	Grant of Security Interest
	 	 	59	 
	6.7.2

	 	Interest on Reserve Funds
	 	 	59	 
	6.7.3

	 	Prohibition Against Further Encumbrance
	 	 	69	 
	 
	 	 	 	 	 	 
	VII. PROPERTY MANAGEMENT	 	 	60	 
	 
	 	 	 	 	 	 
	Section 7.1

	 	The Management Agreement
	 	 	60	 
	Section 7.2

	 	Prohibition Against Termination or Modification
	 	 	60	 
	Section 7.3

	 	Replacement of Manager
	 	 	60	 
	 
	 	 	 	 	 	 
	VIII. TRANSFERS	 	 	61	 
	 
	 	 	 	 	 	 
	Section 8.1

	 	Prohibited Transfer or Encumbrance of Property
	 	 	61	 
	Section 8.2

	 	Permitted Transfers
	 	 	63	 
	8.2.1

	 	Permitted Transfer of the Property
	 	 	63	 
	8.2.2

	 	Permitted Transfer of Interest in Borrower
	 	 	64	 
	Section 8.3

	 	Substitute Guarantor
	 	 	64	 
	 
	 	 	 	 	 	 
	IX. SALE AND SECURITIZATION OF MORTGAGE	 	 	65	 
	 
	 	 	 	 	 	 
	Section 9.1

	 	Sale of Mortgage and Securitization
	 	 	65	 
	Section 9.2

	 	Securitization Indemnification
	 	 	66	 
	 
	 	 	 	 	 	 
	X. DEFAULTS	 	 	68	 
	 
	 	 	 	 	 	 
	Section 10.1

	 	Event of Default
	 	 	68	 
	Section 10.2

	 	Remedies
	 	 	70	 
	Section 10.3

	 	Right to Cure Defaults
	 	 	71	 
	Section 10.4

	 	Remedies Cumulative
	 	 	72	 

-iv-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	XI. MISCELLANEOUS	 	 	72	 
	 
	 	 	 	 	 	 
	Section 11.1

	 	Successors and Assigns
	 	 	72	 
	Section 11.2

	 	Lender’s Discretion
	 	 	72	 
	Section 11.3

	 	Governing Law
	 	 	73	 
	Section 11.4

	 	Modification, Waiver in Writing
	 	 	74	 
	Section 11.5

	 	Delay Not a Waiver
	 	 	74	 
	Section 11.6

	 	Notices
	 	 	75	 
	Section 11.7

	 	Trial by Jury
	 	 	76	 
	Section 11.8

	 	Headings
	 	 	76	 
	Section 11.9

	 	Severability
	 	 	76	 
	Section 11.10

	 	Preferences
	 	 	77	 
	Section 11.11

	 	Waiver of Notice
	 	 	77	 
	Section 11.12

	 	Remedies of Borrower
	 	 	77	 
	Section 11.13

	 	Expenses; Indemnity
	 	 	77	 
	Section 11.14

	 	Schedules Incorporated
	 	 	78	 
	Section 11.15

	 	Offsets, Counterclaims and Defenses
	 	 	78	 
	Section 11.16

	 	No Joint Venture or Partnership; No Third Party Beneficiaries
	 	 	79	 
	Section 11.17

	 	Publicity
	 	 	79	 
	Section 11.18

	 	Waiver of Marshalling of Assets
	 	 	79	 
	Section 11.19

	 	Waiver of Offsets/Defenses/Counterclaims
	 	 	80	 
	Section 11.20

	 	Conflict; Construction of Documents; Reliance
	 	 	80	 
	Section 11.21

	 	Brokers and Financial Advisors
	 	 	80	 
	Section 11.22

	 	Exculpation
	 	 	80	 
	Section 11.23

	 	Prior Agreements
	 	 	83	 
	Section 11.24

	 	Servicer
	 	 	83	 
	Section 11.25

	 	Joint and Several Liability
	 	 	83	 
	Section 11.26

	 	Creation of Security Interest
	 	 	83	 
	Section 11.27

	 	Assignments and Participations
	 	 	84	 
	Section 11.28

	 	Set-Off
	 	 	84	 
	Section 11.29

	 	Component Notes
	 	 	84	 
	Section 11.30

	 	Approvals; Third Parties; Conditions
	 	 	85	 
	Section 11.31

	 	Limitation on Liability of Lender’s Officers, Employees, etc.
	 	 	85	 

SCHEDULES

	 	 	 	 	 	 	 

	Schedule I

	 	—	 	Rent Roll
	 	 
	Schedule II

	 	—	 	Required Repairs	 	 
	Schedule III

	 	—	 	Organizational Chart	 	 
	Schedule IV

	 	—
	 	Form of Subordination, Non-Disturbance and Attornment Agreement	 	 
	Schedule V

	 	—	 	Intentionally Deleted	 	 
	Schedule VI

	 	—	 	Description/Diagram of Release Parcel	 	 

-v-

 

LOAN AGREEMENT

          THIS LOAN AGREEMENT, dated as of November 1, 2004 (as amended, restated, replaced,
supplemented or otherwise modified from time to time, this “Agreement”), between EUROHYPO
AG, NEW YORK BRANCH, the New York branch of a German banking corporation, having an address at 1114
Avenue of the Americas, Twenty-Ninth Floor, New York, New York 10036 (together with its permitted
successors and assigns, “Lender”), and CEDAR-FRANKLIN VILLAGE LLC, a Delaware limited
liability company, having an address at c/o Cedar Shopping Centers Partnership, L.P., 44 South
Bayles Avenue, Suite 304, Port Washington, NY 11050 (together with its permitted successors and
assigns “borrower”).

          All other capitalized terms used herein shall have the respective meanings set forth in
Article I hereof.

WITNESSETH:

          WHEREAS, Borrower desires to obtain the Loan from Lender; and

          WHEREAS, Lender is willing to make the Loan to Borrower, subject to and in accordance with the
conditions and terms of this Agreement and the other Loan Documents.

          NOW, THEREFORE, in consideration of the covenants set forth in this Agreement, and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree, represent and warrant as follows:

          I. DEFINITIONS; PRINCIPLES OF CONSTRUCTION

          Section 1.1 Definitions.

          For all purposes of this Agreement, except as otherwise expressly provided:

          “Access Laws” shall have the meaning set forth in Section 4.1.18.

          “Additional Collateral” shall mean U.S. Obligations, that provide payments on a
portion of the Loan in the principal amount of $3,200,000 which are (i) paid on or prior to, but as
close as possible to, the Business Day immediately preceding all Monthly Payment Dates and other
scheduled payment dates, hereunder and (ii) in amounts equal to the scheduled payments of interest
up to and including the Permitted Repayment Date (including, the payment of principal in the amount
of $3,200,000.00 on the Permitted Repayment Date), and all other payments, if any, required, under
the Loan Documents for servicing fees, and other similar charges.

          “Accounts” shall have the meaning set forth in Section 3.1.35(a).

          “Acquired Property Statements” shall have the meaning set forth in Section
9.1(c)(i).

 

 

          “Affiliate” shall mean, as to any Person, any other Person that, directly or
indirectly, owns more than forty percent (40%) of, is in control of, is controlled by or is under
common ownership or control with such Person or is a director or officer of such Person or of an
Affiliate of such Person. As used in this definition, the term “control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the management, policies
or activities of a Person, whether through ownership of voting securities, by contract or
otherwise.

          “Affiliated Manager” shall mean any managing agent in which Borrower, Borrower
Principal, any SPC Party (if any) or any Affiliate of such Persons has, directly or indirectly, any
legal, beneficial or economic interest.

          “Agent” shall mean PNC Bank, National Association and any successor Eligible
Institution thereto.

          “Allocated Loan Amount” shall mean with respect to the release of the Release Parcel
pursuant to Section 2.5.2, $4,785,000.

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

          “Alteration Threshold” shall mean an amount equal to five percent (5%) of the original
principal amount of the Loan.

          “Annual Budget” shall mean the operating and capital budget for the Property setting
forth Borrower’s good faith estimate of Gross Income from Operations, Operating Expenses, and
Capital Expenditures for the applicable Fiscal Year.

          “Approved Property Manager” shall mean (i) Cedar Shopping Centers Partnership L.P. , a
Delaware limited partnership, for so long as that entity is an Affiliate or sole member of Borrower
and controlled by Cedar Shopping Centers, Inc., a Maryland corporation or (ii) a reputable and
experienced management organization possessing experience in managing properties similar in size,
scope and value to the Property, provided that with respect to an Approved Property Manager under
clause (ii), (A) prior to a Securitization, Borrower shall have obtained the prior written consent
of Lender for such entity, which consent shall not be unreasonably withheld and (B) after a
Securitization, Borrower shall have obtained prior written confirmation from the Rating Agencies
that management of the Property by such entity will not, in and of itself, cause a downgrade,
withdrawal or qualification of the then current ratings of the Securities issued pursuant to the
Securitization.

          “Assignment of Leases” shall mean that certain first priority Assignment of Leases and
Rents, dated as of the date hereof, from Borrower, as assignor, to Lender, as assignee, as the same
may be amended, restated, replaced, supplemented or otherwise modified from time to time.

          “Assignment of Management Agreement” shall mean that certain Assignment of Management
Agreement and Subordination of Management Fees dated the date hereof among Borrower, Manager and
Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time.

-2-

 

          “Award” shall mean any compensation paid by any Governmental Authority in connection
with a Condemnation in respect of all or any part of the Property.

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

          “Basic Carrying Costs” shall mean the sum of the following costs associated with the
Property for the relevant Fiscal Year or payment period: (i) Taxes and (ii) Insurance Premiums.

          “Borrower Principal” shall mean Cedar Shopping Centers Partnership, L.P.

          “Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday
on which national banks are not open for general business in (i) the State of New York, (ii) the
state where the corporate trust office of the Trustee is located, or (iii) the state where the
servicing offices of the Servicer are located.

          “Capital Expenditures” for any period shall mean amounts expended for replacements and
alterations to the Property and required to be capitalized according to GAAP.

          “Capital Expenditure Funds” shall have the meaning set forth in Section 6.4.1.

          “Capital Expenditures Work” shall mean any labor performed or materials installed in
connection with any Capital Expenditure.

          “Cash Management Agreement” shall mean that certain Cash Management Agreement of even
date herewith among Lender, Borrower, Manager and Agent.

          “Casualty” shall mean the occurrence of any casualty, damage or injury, by fire or
otherwise, to the Property or any part thereof.

          “Casualty Consultant” shall have the meaning set forth in Section 5.3.2(c).

          “Casualty Retainage” shall have the meaning set forth in Section 5.3.2(d).

          “Closing Date” shall mean the date of funding the Loan.

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

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

-3-

 

          “Control” shall mean the power to direct the management and policies of a Restricted
Party, directly or indirectly, whether through the ownership of voting securities or other
beneficial interests, by contract or otherwise.

          “Debt” shall mean the outstanding principal amount of the Loan together with all
interest accrued and unpaid thereon and all other sums (including the Yield Maintenance Premium)
due to Lender in respect of the Loan under the Note, this Agreement, the Mortgage, the
Environmental Indemnity or any other Loan Document.

          “Debt Service” shall mean, with respect to any particular period of time, scheduled
interest payments under the Note.

          “Debt Service Coverage Ratio” shall mean a ratio for the applicable period in which:

     (i) the numerator is the Net Cash Flow for such period as set forth in the
financial statements required in accordance with this Agreement; and

     (ii) the denominator is the Debt Service due for such period.

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

          “Default Rate” shall mean, with respect to the Loan, a rate per annum equal to the
lesser of (i) the maximum rate permitted by applicable law, or (ii) five percent (5%) above the
Interest Rate.

          “Defeasance Collateral” shall mean the Total Defeasance Collateral or the Partial
Defeasance Collateral, as the case may be.

          “Defeasance Collateral Account” shall have the meaning set forth in Section 2.5.3.

          “Defeasance Date” shall mean the Total Defeasance Date or the Partial Defeasance Date,
as the case may be.

          “Defeasance Event” shall mean a Total Defeasance Event or a Partial Defeasance Event,
as the case may be.

          “Defeased Note” shall have the meaning set forth in Section 2.5.2(a)(iv)
hereof.

          “Disclosure Document” shall have the meaning set forth in Section 9.2(a).

          “Disclosure Document Date” shall have the meaning set forth in Section
9.1(c)(iv).

-4-

 

          “Eligible Account” shall mean a separate and identifiable account from all other funds
held by the holding institution that is either (i) an account or accounts maintained with a federal
or state-chartered depository institution or trust company which complies with the definition of
Eligible Institution or (ii) a segregated trust account or accounts maintained with a federal or
state chartered depository institution or trust company acting in its fiduciary capacity which, in
the case of a state chartered depository institution or trust company is subject to regulations
substantially similar to 12 C.F.R. § 9.10(b), having in either case a combined capital and surplus
of at least $50,000,000.00.00 and subject to supervision or examination by federal and state
authority. An Eligible Account will not be evidenced by a certificate of deposit, passbook or other
instrument.

          “Eligible Institution” shall mean a depository institution or trust company insured by
the Federal Deposit Insurance Corporation the short term unsecured debt obligations or commercial
paper of which are rated at least A-1 by S&P and having at least the equivalent rating from one of
the two other Rating Agencies in the case of accounts in which funds are held for thirty (30) days
or less or, in the case of Letters of Credit or accounts in which funds are held for more than
thirty (30) days, the long term unsecured debt obligations of which are rated at least “AA” by
Fitch and S&P and “Aa2” by Moody’s.

          “Environmental Indemnity” shall mean that certain Environmental Indemnity Agreement,
dated as of the date hereof, executed by Borrower and Guarantor in connection with the Loan for the
benefit of Lender.

          “Equipment” shall have the meaning set forth in the granting clause of the Mortgage.

          “ERISA” shall have the meaning set forth in Section 4.2.7.

          “Event of Default” shall have the meaning set forth in Section 10.1.

          “Exchange Act” shall have the meaning set forth in Section 9.2(a).

          “Exchange Act Filing” shall have the meaning set forth in Section 9.1(c)(vii).

          “Executive Order” shall have the meaning set forth in the definition of “Prohibited
Person”.

          “Exxon Remediation” shall mean those certain remediation efforts at the Property made
or to be made by Exxon Mobil in connection with a petroleum release from an underground storage
tank located on the Property, which remediation efforts include that certain Phase III Remedial
Action Plan and that certain Phase VI Remedy Implementation Plan developed by Groundwater &
Environmental Services, Inc. in accordance with Environmental Law as enforced by the New Jersey
Department of Environmental Protection.

          “Fiscal Year” shall mean each twelve month period commencing on January 1 and ending
on December 31 during each year of the term of the Loan.

          “Fitch” shall mean Fitch, Inc. and its successors.

-5-

 

          “GAAP” shall mean generally accepted accounting principles set forth in the opinions
and pronouncements of the Accounting Principles Board and the American Institute of Certified
Public Accountants and statements and pronouncements of the Financial Accounting Standards Board
(or agencies with similar functions of comparable stature and authority within the accounting
profession), or in such other statements by such entity as may be in general use by significant
segments of the U.S. accounting profession.

          “Governmental Authority” shall mean any court, board, agency, commission, office or
authority of any nature whatsoever or any governmental unit (federal, state, county, district,
municipal, city or otherwise) whether now or hereafter in existence.

          “Gross Income from Operations” shall mean, for any period, all income, computed in
accordance with GAAP, derived from the ownership and operation of the Property from whatever source
during such period, including, but not limited to, Rents, utility charges, escalations, forfeited
security deposits, interest on credit accounts, service fees or charges, license fees, parking
fees, rent concessions or credits, and other pass-through or reimbursements paid by tenants under
the Leases of any nature but excluding Rents from month-to-month tenants or tenants that are
debtors in any proceeding under the Bankruptcy Code, sales, use and occupancy or other taxes on
receipts required to be accounted for by Borrower to any Governmental Authority, refunds and
uncollectible accounts, sales of furniture, fixtures and equipment, Net Proceeds (other than
business interruption or other loss of income insurance), and any disbursements to Borrower from
the Tax Funds, Insurance Funds, the Capital Expenditure Funds, the Rollover Funds, or any other
escrow fund established by the Loan Documents.

          “Guaranties” shall have the meaning set forth in Section 8.3 hereof.

          “Guarantor” shall mean Cedar Shopping Centers Partnership, L.P.

          “Guaranty” shall mean that certain Guaranty of even date herewith from Guarantor for
the benefit of Lender.

          “Improvements” shall have the meaning set forth in the granting clause of the
Mortgage.

          “Indebtedness” shall mean, for any Person, without duplication: (i) 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, (ii) 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 thereunder, (iii) all amounts required to be paid by such
Person as a guaranteed payment to partners or a preferred or special dividend, including any
mandatory redemption of shares or interests, (iv) all indebtedness guaranteed by such Person,
directly or indirectly, (v) all obligations under leases that constitute capital leases for which
such Person is liable, and (vi) 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.

-6-

 

          “I&G Funds” shall mean the constituent entities (and their wholly owned subsidiaries)
from time to time of the fund marketed as the “J.P. Morgan U.S. Real Estate Income and Growth
Fund,” of which JPMorgan Investment Management Inc. (or JPMorgan Chase Bank, or any of their
affiliates) and/or their successors and assigns is the investment advisor and, as of the date
hereof includes, without limitation, JPM I&G Domestic REIT, Inc., J.P. Morgan U.S. Real Estate
Income and Growth Direct, LP, J.P. Morgan U.S. Real Estate Income and Growth Corp. (Cayman), J.P.
Morgan U.S. Real Estate Income and Growth Finance Corp (Cayman), J.P. Morgan U.S. Real Estate
Income and Growth Investment Corp (Cayman), J.P. Morgan U.S. Real Estate Income and Growth GmBH &
Co. KG, and J.P. Morgan U.S. Real Estate and Growth Domestic, LP.

          “Indemnified Liabilities” shall have the meaning set forth in Section
11.13(b).

          “Independent Director” shall have the meaning set forth in Section 3.1.24(p).

          “Interest Rate” shall mean a rate per annum equal to four and eighty-one hundredths
percent (4.81%).

          “Insolvency Opinion” shall mean that certain bankruptcy non-consolidation opinion
letter, dated the date hereof, rendered by Lavenfeld Pearlstein, LLC in connection with the Loan.

          “Insurance Funds” shall have the meaning set forth in Section 6.3.1.

          “Insurance Premiums” shall have the meaning set forth in Section 5.1.1(b).

          “Lease” shall mean any lease, sublease or subsublease, letting, license, concession or
other agreement (whether written or oral and whether now or hereafter in effect) pursuant to which
any Person is granted a possessory interest in, or right to use or occupy all or any portion of any
space in the Property, and every modification, amendment or other agreement relating to such lease,
sublease, subsublease, or other agreement entered into in connection with such lease, sublease,
subsublease, or other agreement and every guarantee of the performance and observance of the
covenants, conditions and agreements to be performed and observed by the other party thereto.

          “Legal Requirements” shall mean all federal, state, county, municipal and other
governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and
injunctions of Governmental Authorities affecting Borrower or the Property or any part thereof or
the construction, use, alteration or operation thereof, or any part thereof, whether now or
hereafter enacted and in force, including, without limitation, the Americans with Disabilities Act
of 1990, and all permits, licenses and authorizations and regulations relating thereto, and all
covenants, agreements, restrictions and encumbrances contained in any instruments, either of record
or known to Borrower, at any time in force affecting the Property or any part thereof, including,
without limitation, any which may (i) require repairs, modifications or alterations in or to the
Property or any part thereof, or (ii) in any way limit the use and enjoyment thereof.

          “Lender Group” shall have the meaning set forth in Section 9.2(b).

-7-

 

          “Lender Indemnitees” shall have the meaning set forth in Section 11.13(b).

          “Liabilities” shall have the meaning set forth in Section 9.2(b).

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

          “Loan” shall mean the loan in the original principal amount of Forty-Three Million
Five Hundred Thousand and No/100 Dollars ($43,500,000.00) made by Lender to Borrower pursuant to
this Agreement evidenced by the Note and secured by the Mortgage, together with all sums due or to
become due thereunder.

          “Loan Documents” shall mean, collectively, this Agreement, the Note, the Mortgage, the
Assignment of Leases, the Cash Management Agreement, the Environmental Indemnity, the Guaranty, the
Supplemental Guaranty, the Assignment of Management Agreement as well as all other documents now or
hereafter executed and/or delivered in connection with the Loan.

          “Loan to Value Ratio” shall mean the ratio, as of a particular date, in which the
numerator is equal to the outstanding principal balance of the Debt and the denominator is equal to
the appraised value of the Property based on a FIRREA-conforming appraisal in form and substance
satisfactory to Lender, as determined by Lender in its sole and absolute discretion.

          “Major Lease” shall mean any Lease covering 10,000 square feet or more at the
Property, provided that the calculations set forth in this definition of Major Lease shall be made
based on the
aggregate square footage leased, by any single Tenant and/or Affiliate of such Tenant, whether
pursuant to a single Lease or otherwise.

          “Management Agreement” shall mean that certain management agreement entered into by
and between Borrower and the Manager, pursuant to which the Manager is to provide management and
other services with respect to the Property.

          “Manager” shall mean Calarese Properties, Inc., a Massachusetts corporation, or any
other manager approved in accordance with the terms and conditions of the Loan Documents.

          “Material Adverse Effect” shall mean any material adverse effect upon (i) the business
operations, economic performance, assets, financial condition, equity, contingent liabilities,
prospects, material agreements or results of operations of Borrower, Guarantor or the Property,
(ii) the ability of Borrower or Guarantor to perform, in all material respects, its obligations
under each of the Loan Documents, (iii) the enforceability or validity of any Loan Document, the
perfection or priority of any Lien created under any Loan Document or the remedies of the Lender
under any Loan Document or (iv) the value of, or cash flow from the Property or the operations
thereof.

-8-

 

          “Material Agreements” shall mean each contract and agreement relating to the
ownership, management, development, use, operation, leasing, maintenance, repair or improvement of
the Property, other than the Management Agreement and the Leases or other contract and/or agreement
that is material to the use and operation of the Property or to Borrower.

          “Maturity Date” shall mean November 1, 2011 or such other date on which the final
payment of principal of the Note becomes due and payable as therein or herein provided, whether at
such stated maturity date, by declaration of acceleration, or otherwise.

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

          “Minimum Disbursement Amount” shall mean Twenty-Five Thousand and No/100 Dollars
($25,000.00).

          “Monthly Debt Service Payment Amount” shall mean an amount equal to the interest on
the outstanding principal balance of the Loan that accrues at the Interest Rate during each
calendar month during the term of the Loan, calculated in the manner set forth herein.

          “Monthly Payment Date” shall mean the first (1st) day of every calendar month
occurring during the term of the Loan, provided, however, that Lender shall have the right at any
time prior to Securitization of the Loan to change the Monthly Payment Date to any other day (or
such other day of a calendar month selected by Lender, in its sole and absolute discretion, to
collect debt service payments under loans which it makes and securitizes) upon notice to Borrower
(in which event such change shall then be deemed effective) and, if requested by Lender, Borrower
shall promptly execute an amendment to this Agreement to evidence such change, at no cost to
Borrower (except that Borrower shall pay its own legal fees).

          “Moody’s” shall mean Moody’s Investors Service, Inc.

          “Mortgage” shall mean that certain first priority Mortgage and Security Agreement,
dated the date hereof, executed and delivered by Borrower as security for the Loan and encumbering
the Property, as the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time.

          “Net Cash Flow” shall mean, for any period, the amount obtained by subtracting
Operating Expenses for such period from Gross Income from Operations for such period.

          “Net Proceeds” shall mean: (i) the net amount of all insurance proceeds payable as a
result of a Casualty to the Property, after deduction of reasonable costs and expenses (including,
but not limited to, reasonable attorneys’ fees), if any, in collecting such insurance proceeds, or
(ii) the net amount of the Award, after deduction of reasonable costs and expenses (including, but
not limited to, reasonable attorneys’ fees), if any, in collecting such Award.

-9-

 

          “Net Proceeds Deficiency” shall have the meaning set forth in Section
5.3.2(f).

          “Note” shall have the meaning set forth in Section 2.1.3.

          “Notice” shall have the meaning set forth in Section 11.6.

          “Officer’s Certificate” shall mean a certificate delivered to Lender by Borrower which
is signed by an authorized senior officer of Borrower.

          “Operating Agreements” shall mean any material covenants, restrictions or agreements
of record relating to the construction, operation or use of the Property.

          “Operating Expenses” shall mean, for any period, the total of all expenditures,
computed on a cash accounting basis, of whatever kind during such period relating to the operation,
maintenance and management of the Property that are incurred on a regular monthly or other periodic
basis, including without limitation, utilities, ordinary repairs and maintenance (which ordinary
repairs and maintenance for the purposes of this definition shall be no less than an assumed
expense of $54,062.50 per month), insurance, license fees, property taxes and assessments,
advertising expenses, management fees, payroll and related taxes, computer processing charges,
tenant improvements, leasing commissions and normalized capital expenditures (which tenant
improvements, leasing commissions and normalized capital expenditures for the purposes of this
definition shall be no less than an assumed
expense of $413,579.00 per month), operational equipment or other lease payments as approved by
Lender, and other similar costs, but excluding from such calculation depreciation, Debt Service and
interest costs.

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

          “Partial Defeasance Collateral” shall mean U.S. Obligations, which provide payments
(i) on or prior to, but as close as possible to, the Business Day immediately preceding all Monthly
Payment Dates and other scheduled payment dates, if any, under the Defeased Note after the Partial
Defeasance Date and up to and including the Permitted Prepayment Date, and (ii) in amounts equal to
or greater than the Scheduled Partial Defeasance Payments relating to such Monthly Payment Dates
and other scheduled payment dates.

          “Partial Defeasance Date” shall have the meaning set forth in Section 2.5.2(a)(i).

          “Partial Defeasance Event” shall have the meaning set forth in Section 2.5.2(a).

          “Patriot Act” shall mean collectively all laws relating to terrorism or money
laundering, including Executive Order No. 13224 on Terrorist Financing (effective September 24,
2001) and the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (Public Law 107 56).

-10-

 

          “Permitted Encumbrances” shall mean, collectively, (i) the Liens and security
interests created by the Loan Documents, (ii) all Liens, encumbrances and other matters expressly
set forth on
Schedule A or Schedule B of the Title Insurance Policy, (iii) Liens, if any, for Taxes imposed by
any Governmental Authority not yet due or delinquent, (iv) such other title and survey exceptions
as Lender has approved or may approve in writing in Lender’s sole discretion, and (v) easements
granted by Borrower from and after the date hereof in the ordinary course of business and approved
by Lender, which approval shall not be unreasonably withheld.

          “Permitted Investments” shall have the meaning set forth in the Cash Management
Agreement.

          “Permitted Prepayment Date” shall have the meaning set forth in Section 2.4.1.

          “Permitted Transferee” shall mean a corporation, partnership or limited liability
company (i) acceptable to Lender in its sole discretion, (ii) that qualifies as a single purpose,
bankruptcy remote entity under criteria established by the Rating Agencies and (iii) whose counsel
has delivered to Lender a non-consolidation opinion reasonably acceptable to Lender and the Rating
Agencies.

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

          “Policy” shall have the meaning set forth in Section 5.1.1(b).

          “Prepayment Date” shall mean the date on which the Loan is prepaid in accordance with
the terms hereof.

          “Prohibited Person” shall mean any Person:

     (i) listed in the Annex to, or is 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”);

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

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

     (iv) who commits, threatens or conspires to commit or supports “terrorism” as defined
in the Executive Order;

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     (v) 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 or at any replacement website or other replacement official
publication of such list; or

     (vi) who is an Affiliate of a Person listed above.

          “Prohibited Transfer” shall have the meaning specified in Section 8.1(a).

          “Property” shall mean the parcel of real property, the Improvements thereon and all
personal property owned by Borrower and encumbered by the Mortgage, together with all rights
pertaining to such property and Improvements, all as more particularly described in the granting
clauses of the Mortgage.

          “Qualified Transferee” shall mean any one of the following Persons or wholly owned
subsidiaries of such Person:

     (i) a pension fund, pension trust or pension account that (a) has total real estate
assets of at least One Billion Dollars and (b) is managed by a Person who controls at
least One Billion Dollars of real estate equity assets; or

     (ii) a pension fund advisor who (a) immediately prior to such transfer, controls at
least One Billion Dollars of real estate equity assets and (b) is acting on behalf of one
or more pension funds that, in the aggregate, satisfy the
requirements of clause (i) of
this definition; or

     (iii) an insurance company which is subject to supervision by the insurance
commissioner, or a similar official or agency, of a state or territory of the United
States (including the District of Columbia) (a) with a net worth, as of a date no more than
six (6) months prior to the date of the transfer of at least Five Hundred Million Dollars
and (b) who, immediately prior to such transfer, controls real estate equity assets
of at least One Billion Dollars; or

     (iv) a corporation organized under the banking laws of the United States or any state
or territory of the United States (including the District of Columbia) (a) with a combined
capital and surplus of at least Five Hundred Million Dollars and (b) who, immediately
prior to such transfer, controls real estate equity assets of at least One
Billion Dollars; or

     (v) any Person (a) with a long-term unsecured debt rating from the Rating Agencies of
at least investment grade or (b) who (i) directly or indirectly owns or operates at least
twelve (12) regional shopping centers totaling at least six million square feet of gross
leasable area, (ii) has a net worth, as of a date no more than six (6) months prior
to the date of such transfer, of at least Five Hundred Million Dollars and (iii)
immediately prior to such transfer, controls real estate equity assets of at least One
Billion Dollars.

-12-

 

          “Rating Agencies” shall mean, prior to the final Securitization of the Loan, each of
S&P, Moody’s and Fitch, or any other nationally-recognized statistical rating agency which has been
designated by Lender and, after the final Securitization of the Loan, shall mean any of the
foregoing that have rated any of the Securities.

          “Rating Agency Confirmation” shall mean a written affirmation from each of the Rating
Agencies that the credit rating of the Securities by such Rating Agency immediately prior to the
occurrence of the event with respect to which such Rating Agency Confirmation is sought will not be
qualified, downgraded or withdrawn as a result of the occurrence of such event, which affirmation
may be granted or withheld in such Rating Agency’s sole and absolute discretion.

          “Registration Statement” shall have the meaning set forth in Section 9.2(b).

          “Release Date” shall mean the earlier to occur of (i) the fourth (4th) anniversary of
the Closing Date and (ii) the date that is two (2) years from the “startup day” (within the meaning
of Section 860G(a)(9) of the Code) of the REMIC Trust established in connection with the last
Securitization involving any portion of this Loan.

          “Release Parcel” shall mean that certain portion of the Property comprising
approximately 50,000 square feet of office space more particularly
shown on Schedule VI attached
hereto.

          “REMIC Trust”
shall mean a “real estate mortgage investment conduit” within the
meaning of Section 860D of the Code that holds the Note or any portion thereof.

          “Rents” shall mean all rents (including, without limitation, percentage rents), rent
equivalents, moneys payable as damages or in lieu of rent or rent equivalents, royalties
(including, without limitation, all oil and gas or other mineral royalties and bonuses), income,
receivables, receipts, revenues, deposits (including, without limitation, security, utility and
other deposits), accounts, cash, issues, profits, charges for services rendered, and other
consideration of whatever form or nature received by or paid to or for the account of or benefit of
Borrower or its agents or employees from any and all sources arising from or attributable to the
Property, and proceeds, if any, from business interruption or other loss of income insurance.

          “Required Repair Funds” shall have the meaning set forth in Section 6.1.1.

          “Required Repairs” shall have the meaning set forth in Section 6.1.1.

          “Reserve Funds” shall mean, collectively, the Capital Expenditure Funds, the Insurance
Funds, the Tax Funds, the Required Repair Funds and the Rollover Funds.

          “Restoration” shall have the meaning set forth in Section 5.2.1.

          “Restoration Threshold” shall mean Eight Hundred Seventy Thousand and No/00 Dollars
($870,000.00).

-13-

 

          “Restricted Party” shall mean Borrower, Borrower Principal, and any SPC Party.

          “Rollover
Funds” shall have the meaning set forth in
Section 6.5.1.

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

          “Sale
or Pledge” shall mean a voluntary or involuntary sale, conveyance, mortgage,
grant, bargain, encumbrance, pledge, assignment, grant of any options with respect to, or any other
transfer or disposition of (directly or indirectly, voluntarily or involuntarily, by operation of
law or otherwise, and
whether or not for consideration or of record) of a legal or beneficial interest, except with
respect to Permitted Encumbrances.

          “Scheduled Defeasance Payments” shall mean Scheduled Partial Defeasance Payments or
Scheduled Total Defeasance Payments, as the case may be.

          “Scheduled Partial Defeasance Payments” shall mean scheduled payments of interest and
principal under the Defeased Note for all Monthly Payment Dates occurring after the Partial
Defeasance Date and up to and including the Permitted Prepayment Date (including, the outstanding
principal balance on the Defeased Note as of the Permitted Prepayment Date), and all payments
required after the Partial Defeasance Date, if any, under the Loan Documents for servicing fees,
and other similar charges.

          “Scheduled Total Defeasance Payments” shall mean scheduled payments of interest and
principal under the Note in the amount of the Monthly Debt Service Payment Amount for all Monthly
Payment Dates occurring after the Total Defeasance Date and up to and including the Permitted
Prepayment Date (including, the outstanding principal balance on the Note as of the Permitted
Prepayment Date), and all payments required after the Total Defeasance Date, if any, under the Loan
Documents for servicing fees and other similar charges.

          “Secondary Market Transaction” shall have the meaning set forth in Section
9.1(a).

          “Securities” shall have the meaning set forth in Section 9.1(a).

          “Securities Act” shall have the meaning set forth in Section 9.2(a).

          “Securitization” shall have the meaning set forth in Section 9.1(a).

          “Security Agreement” shall mean a security agreement in form and substance that would
be satisfactory to a prudent lender pursuant to which Borrower grants Lender a perfected, first
priority security interest in the Defeasance Collateral Account and the Defeasance Collateral.

          “Servicer” shall have the meaning set forth in Section 11.24(a).

          “Servicing Agreement” shall have the meaning set forth in Section 11.24(a).

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          “Severed Loan Documents” shall have the meaning set forth in Section 10.2(c).

          “SPC Party” shall have the meaning set forth in Section 3.1.24(o).

          “Standard Statements” shall have the meaning set forth in Section 9.1(c)(i).

          “State” shall mean the State or Commonwealth in which the Property or any part thereof
is located.

          “Stop and Shop” shall mean Stop & Shop Supermarket Company, Inc., as tenant under the
Stop and Shop Lease.

          “Stop and Shop Lease” shall mean that certain lease dated July 1, 1986 between Stop
and Shop, as tenant and Roger V. Calarese and Americo Calarese as Trustees for Franklin Village
Trust, as landlord (as modified and amended, including without limitation the Stop and Shop Third
Lease Amendment).

          “Stop and Shop Third Lease Amendment” shall mean that certain Third Amendment to the
Stop and Shop Lease, dated April 2, 2004.

          “Substitute Guarantor” shall have the meaning set forth in Section 8.3 hereof.

          “Successor Borrower” shall have the meaning set forth in Section 2.5.3.

          “Supplemental Guaranty” shall mean that certain Supplemental Guaranty of even date
herewith from Guarantor for the benefit of Lender.

          “Survey” shall mean a current land survey for the Property, certified to the title
company and Lender and its successors and assigns, in form and content reasonably satisfactory to
Lender and prepared by a professional and properly licensed land surveyor reasonably satisfactory
to Lender in accordance with the 1999 Minimum Standard Detail Requirements for ALTA/ACSM Land Title
Surveys (i) meeting the classification of an “Urban Survey” and the following additional items from
the list of “Optional Survey Responsibilities and Specifications” (Table A) should be added to each
survey: 2, 3, 4, 6, 8, 9, 10, 11 and 13, (ii) reflecting a metes and bounds description of the real
property comprising part of the Property in conformity with the Title Insurance Policy, and (iii)
together with the surveyor’s seal affixed to the Survey and a certification from the surveyor in
form and substance reasonably acceptable to Lender.

          “Tax Funds” shall have the meaning set forth in Section 6.2.1.

          “Taxes” shall mean all real estate and personal property taxes, assessments, water
rates or sewer rents, now or hereafter levied or assessed or imposed against the Property or part
thereof, together with all interest and penalties thereon.

          “Tenant” shall mean any Person obligated by contract or otherwise to pay monies
(including a percentage of gross income, revenue or profits) under any Lease now or hereafter
affecting all or any part of the Property.

-15-

 

          “Terrorism Cap” shall have the meaning set forth in Section 5.1.1(a)(x)
hereof.

          “Title Insurance Policy” shall mean an ALTA mortgagee Title Insurance policy in the
form reasonably acceptable to Lender issued with respect to the Property and insuring the lien of
the Mortgage together with such endorsements and affirmative coverages as Lender may reasonably
require.

          “Total Defeasance Collateral” shall mean U.S. Obligations, which provide payments (i)
on or prior to, but as close as possible to, the Business Day immediately preceding all Monthly
Payment Dates and other scheduled payment dates, if any, under the Note after the Total Defeasance
Date and up to and including the Permitted Prepayment Date, and (ii) in amounts equal to or greater
than the Scheduled Total Defeasance Payments relating to such Monthly Payment Dates and other
scheduled payment dates.

          “Total Defeasance Date” shall have the meaning set forth in Section
2.5.1(a)(i).

          “Total Defeasance Event” shall have the meaning set forth in Section 2.5.1(a).

          “Transferee” shall have the meaning set forth in Section 8.1(e)(ii).

          “Trustee” shall mean any trustee holding the Loan in a Securitization.

          “UCC
” or “Uniform Commercial Code” shall mean the Uniform Commercial Code as
in effect in the State.

          “Undefeased Note” shall have the meaning set forth in Section 2.5.2(a)(iv)
hereof.

          “Underwriter Group” shall have the meaning set forth in Section 9.2(b).

          “Updated Information” shall have the meaning set forth in Section 9.1(b)(i).

          “U.S. Obligations” shall mean direct full faith and credit obligations of the United
States of America that are not subject to prepayment, call or early redemption.

          “Yield Maintenance Premium” shall mean the amount, if any, which, when added to the
remaining principal amount of the Note, will be sufficient to purchase U.S. Obligations providing
the required Scheduled Defeasance Payments and any other costs and expenses that would be incurred
in defeasing the Loan pursuant to Section 2.5 hereof.

          Section 1.2 Principles of Construction.

          All references to sections and schedules are to sections and schedules in or to this Agreement
unless otherwise specified. Unless otherwise specified, the words “hereof,” “herein” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement. Unless otherwise specified, all
meanings attributed to defined terms herein shall be equally applicable to both the singular and
plural forms of the terms so defined.

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          II. THE LOAN

          Section 2.1 The Loan.

          2.1.1 Agreement to Lend and Borrow. Subject to and upon the terms and conditions set
forth herein, Lender shall make the Loan to Borrower and Borrower shall accept the Loan from Lender
on the Closing Date.

          2.1.2 Single Disbursement to Borrower. Borrower shall receive only one (1) borrowing
hereunder in respect of the Loan and any amount borrowed and repaid hereunder in respect of the
Loan may not be reborrowed.

          2.1.3 The Note. The Loan shall be evidenced by that certain Promissory Note of even
date herewith, in the stated principal amount of Forty-Three Million Five Hundred Thousand and
No/100 Dollars ($43,500,000.00) executed by Borrower and payable to the order of Lender in evidence
of the Loan (as the same may hereafter be amended, supplemented, restated, increased, extended or
consolidated from time to time, the “NOTE”) and shall be repaid in accordance with the terms of
this Agreement and the Note.

          2.1.4 Use of Proceeds. Borrower shall use proceeds of the Loan to (a) to acquire the
Property, (b) deposit the Reserve Funds, (c) pay costs and expenses incurred in connection with the
closing of the Loan, as approved by Lender, (d) fund any working capital requirements of the
Property, as approved by Lender and (e) distribute the balance of the proceeds, if any to Borrower.

          Section 2.2 Interest Rate.

          2.2.1 Interest Rate. Interest on the outstanding principal balance of the Loan shall
accrue from the Closing Date up to and including the Maturity Date at the Interest Rate.

          2.2.2 Intentionally Omitted 

          2.2.3 Default Rate. In the event that, and for so long as, any Event of Default shall
have occurred and be continuing, the outstanding principal balance of the Loan and, to the extent
permitted by law, overdue interest in respect of the Loan, shall accrue interest at the Default
Rate, calculated from the date such payment was due without regard to any grace or cure periods
contained herein.

          2.2.4 Interest Calculation. Interest on the outstanding principal balance of the Loan
shall be calculated by multiplying (a) the actual number of days elapsed in the period for which
the calculation is being made by (b) a daily rate based on a three hundred sixty (360) day year
(that is, the Interest Rate or the Default Rate, as then applicable, expressed as an annual rate
divided by 360) by (c) the outstanding principal balance.

          2.2.5 Usury Savings. This Agreement and the other Loan Documents are subject to the
express condition that at no time shall Borrower be required to pay interest on the principal
balance of the Loan at a rate which could subject Lender to either civil or criminal liability as a
result of being in excess of the Maximum Legal Rate. If by the terms of this

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

          Section 2.3 Loan Payments.

          2.3.1 Payment Before Maturity Date. Borrower shall make a payment to Lender of
interest only on the Closing Date for the period from the Closing Date through the last day of the
month in which the Closing Date occurs (unless the Closing Date is the first (1st) day of a
calendar month, in which case no such separate payment of interest shall be due). Borrower shall
make a payment to Lender of interest only in the amount of the Monthly Debt Service Payment Amount
on the Monthly
Payment Date occurring in December, 2004 and on each Monthly Payment Date thereafter to and
including the Maturity Date.

          2.3.2 Intentionally Omitted.

          2.3.3 Payment on Maturity Date. Borrower shall pay to Lender on the Maturity Date the
outstanding principal balance of the Loan, all accrued and unpaid interest and all other amounts
due hereunder and under the Note, the Mortgage and the other Loan Documents.

          2.3.4 Late Payment Charge. If any principal, interest or any other sum due under the
Loan Documents, other than the payment of principal due on the Maturity Date, is not paid by
Borrower on or prior to the fifth (5th) day following the date on which it is due, Borrower shall
pay to Lender upon demand an amount equal to the lesser of (a) five percent (5%) of such unpaid sum
or (b) the maximum amount permitted by applicable law in order to defray the expense incurred by
Lender in handling and processing such delinquent payment and to compensate Lender for the loss of
the use of such delinquent payment. Any such amount shall be secured by the Mortgage and the other
Loan Documents.

          2.3.5 Method and Place of Payment.

          (a) Except as otherwise provided herein, all payments and prepayments under this Agreement and
the Note shall be made to Lender not later than 1:00 P.M., New York City time, on the date when due
and shall be made in lawful money of the United States of America in immediately available funds at
Lender’s office at 1114 Avenue of the Americas, 29th Floor, New York, New York 10036, or at such
other place as Lender may from time to time designate in writing, and any funds received by Lender
after such time shall, for all purposes hereof, be deemed to have been paid on the next succeeding
Business Day.

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          (b) Whenever any payment to be made hereunder or under any other Loan Document shall be stated
to be due on a day which is not a Business Day, the due date thereof shall be the immediately
preceding Business Day, and such early payment shall in such case not be included in the
computation of interest.

          (c) All payments required to be made by Borrower hereunder or under the Note or the other Loan
Documents shall be made irrespective of, and without deduction for, any setoff, claim or
counterclaim and shall be made irrespective of any defense thereto.

          Section 2.4 Prepayments.

          2.4.1 Voluntary Prepayments. Except as otherwise provided herein, Borrower shall not
have the right to prepay the Loan in whole or in part. On and after
May 1, 2011 (“Permitted
Prepayment Date”), Borrower may, at its option and upon thirty (30) days prior notice to Lender,
prepay the Debt in whole, but not in part, on any date without payment of the Yield Maintenance
Premium or any other prepayment premium, but with payment of accrued and unpaid interest and all
other sums owing under the Note, this Agreement and the other Loan Documents. Any prepayment
received by Lender on a date other than a Monthly Payment Date shall include interest which would
have accrued thereon to the next Monthly Payment Date.

          2.4.2 Mandatory Prepayments. On each date on which Lender actually receives a
distribution of Net Proceeds, and if Lender does not make such Net Proceeds available to Borrower
for a Restoration, Borrower shall, at Lender’s option, prepay the outstanding principal balance of
the Note in an amount equal to one hundred percent (100%) of such Net Proceeds together with
interest that would have accrued on such amounts through the next Monthly Payment Date. No Yield
Maintenance Premium or any other prepayment premium shall be due in connection with any prepayment
made pursuant to this Section 2.4.2. Any partial prepayment shall be applied to the payment due at
maturity.

          2.4.3 Prepayments After Default. If after an Event of Default, but prior to the date
when prepayment is permitted under Section 2.4.1, payment of all or any part of the principal of
the Loan is tendered by Borrower (which tender Lender may reject to the extent permitted under
applicable Legal Requirements), a purchaser at foreclosure or any other Person, such tender shall
be deemed an attempt to circumvent the prohibition against prepayment
set forth in Section 2.4.1
and Borrower, such purchaser at foreclosure or other Person shall pay a sum equal to the greater of
(i) the Yield Maintenance Premium, and (ii) one percent (1.0%) of the outstanding principal balance
of the Loan, in
addition to the outstanding principal balance, all accrued and unpaid interest and other amounts
payable under the Loan Documents.

          Section 2.5 Defeasance.

          2.5.1 Total Defeasance.

          (a) Provided no Event of Default shall have occurred and remain uncured, Borrower shall have
the right at any time after the Release Date to voluntarily defease the entire Loan and obtain a
release of the lien of the Mortgage by providing Lender with the Total Defeasance Collateral
(hereinafter, a “Total Defeasance Event”), subject to the satisfaction of the following conditions
precedent:

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     (i) Borrower shall provide Lender not less than thirty (30) days notice (or such
shorter period of time if permitted by Lender in its sole discretion) specifying a date
(the “Total Defeasance Date”) on which the Total Defeasance Event is to occur;

     (ii) Borrower shall pay to Lender (A) all payments of interest due on the Loan to and
including the Total Defeasance Date (including, without limitation, short-term interest,
if any) and (B) all other sums, then due under the Note, this Agreement, the Mortgage and
the other Loan Documents;

     (iii) Borrower shall deposit the Total Defeasance Collateral into the Defeasance
Collateral Account and otherwise comply with the provisions of Sections 2.5.3 and
2.5.4 hereof;

     (iv) Borrower shall execute and deliver to Lender a Security Agreement in respect of
the Defeasance Collateral Account and the Total Defeasance Collateral;

     (v) Borrower shall deliver to Lender an opinion of counsel for Borrower that is
standard and commercially reasonable in commercial lending transactions and subject only
to customary qualifications, assumptions and exceptions opining, among other things, that
(A) Lender has a legal and valid perfected first priority security interest in the
Defeasance Collateral Account and the Total Defeasance Collateral, (B) if a
Securitization has occurred, the REMIC Trust formed pursuant to such Securitization will
not fail to maintain its status as a “real estate mortgage investment conduit” within the
meaning of Section 860D of the Code as a result of a Total Defeasance Event pursuant to
this Section 2.5, (C) that Borrower has legally and validly transferred and
assigned the Total Defeasance Collateral to the Successor Borrower and (D) a
non-consolidation opinion with respect to the Successor Borrower;

     (vi) Borrower shall deliver to Lender a Rating Agency Confirmation as to the Total
Defeasance Event;

     (vii) Borrower shall deliver an Officer’s Certificate certifying that the
requirements set forth in this Section 2.5 have been satisfied;

     (viii) Borrower shall deliver a certificate of a “big four” or other nationally
recognized public accounting firm reasonably acceptable to Lender certifying that the
Total Defeasance Collateral will generate monthly amounts equal to or greater than the
Scheduled Total Defeasance Payments;

     (ix) Borrower shall deliver such other certificates, opinions, documents and
instruments as Lender may reasonably request; and

     (x) Borrower shall pay all costs and expenses of Lender actually incurred in
connection with the Total Defeasance Event, including Lender’s reasonable attorneys’ fees
and expenses and Rating Agency fees and expenses. Simultaneously with the notice described
in subparagraph (a)(i) above, Borrower shall deliver to Lender an amount
reasonably determined by Lender to be sufficient to pay such costs and expenses, which
amount may be applied by Lender toward payment of such costs and expenses if a

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proposed
Total Defeasance Event does not occur,
provided that if such amount is insufficient to pay such costs and expenses, Borrower
shall remain obligated to pay any deficiency.

          (b) If Borrower has elected to defease the Note and the requirements of this Section
2.5.1 have been satisfied, the Property shall be released from the lien of the Mortgage and the
Total Defeasance Collateral pledged pursuant to the Security Agreement shall be the sole collateral
securing the Note. In connection with the release of the Lien, Borrower shall submit to Lender, not
less than thirty (30) days prior to the Total Defeasance Date (or such shorter time as is
acceptable to Lender in its sole discretion), a release of Lien (and related Loan Documents) for
execution by Lender. Such release shall be in a form appropriate in the jurisdiction in which the
Property is located and shall contain standard provisions protecting the rights of the releasing
lender. In addition, Borrower shall provide all other documentation Lender reasonably requires to
be delivered by Borrower in connection with such release, together with an Officer’s Certificate
reasonably acceptable to Lender certifying that such documentation (i) is in material compliance
with all Legal Requirements, and (ii) will effect such release in accordance with the terms of this
Agreement. Borrower shall pay all reasonable costs, taxes and expenses associated with the release
of the lien of the Mortgage, including Lender’s reasonable attorneys’ fees. Except as set forth in
this Section 2.5.1, no repayment, prepayment or defeasance of all or any portion of the
Note shall cause, give rise to a right to require, or otherwise result in, the release of the lien
of the Mortgage on the Property. The foregoing release shall be effective upon the Total Defeasance
Date but Lender agrees to provide written evidence of such release to Borrower promptly following
Borrower’s request therefor.

          2.5.2 Partial Defeasance. (a) Provided no Event of Default shall have occurred and remain
uncured beyond the expiration of any applicable cure period, Borrower shall have the right at any
time after the Release Date to obtain a partial release of the Lien of the Mortgage encumbering the
Release Parcel (hereinafter, a “Partial Defeasance Event”) upon satisfaction of the
following conditions:

     (i) Borrower shall provide Lender thirty (30) days prior written notice (or such
shorter period of time if permitted by Lender in its sole discretion) specifying a Monthly
Payment Date (the “Partial Defeasance Date”) on which Borrower shall have
satisfied the conditions in this Section 2.5.2 and shall effect the defeasance;

     (ii) Borrower shall pay to Lender (A) all payments of interest due and payable on the
Loan up to and including the Partial Defeasance Date and (B) all other sums, then due and
payable under the Note, this Agreement, the Mortgage and the other Loan Documents;

     (iii) Borrower shall deposit the Partial Defeasance Collateral into the Defeasance
Collateral Account and otherwise comply with the provisions of Sections 2.5.3 and
2.5.4 hereof;

     (iv) Borrower shall prepare all necessary documents to modify this Agreement and to
amend and restate the Note and issue two substitute notes, one note having a principal
balance equal to 125% of the Allocated Loan Amount (the “Defeased Note”),

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and the
other note
having a principal balance equal to the excess of (A) the outstanding principal
amount of the Loan, over (B) the amount of the Defeased Note (the “Undefeased
Note”). The Defeased Note and the Undefeased Note shall have identical payment terms
as the Note except for the principal balance. The Defeased Note and the Undefeased Note
shall be cross defaulted and cross collateralized unless the Rating Agencies shall
require otherwise or unless a Successor Borrower is established pursuant to Section
2.5.4. A Defeased Note may not be the subject of any further defeasance;

     (v) Borrower shall execute and deliver to Lender a Security Agreement in respect of
the Defeasance Collateral Account and the Partial Defeasance Collateral;

     (vi) After giving effect to the release of the Lien of the Mortgage encumbering the
Release Parcel, the Debt Service Coverage Ratio with respect to the remaining portion of
the Property is not less than the greater of (A) the Debt Service Coverage Ratio prior to
the release and (B) Debt Service Coverage Ratio of 1.90x.

     (vii) Borrower shall have delivered to Lender and the Rating Agencies shall have
received from Borrower with respect to the matters referred to in clause (vi), (A)
statements of the Net Cash
Flow and Debt Service (both on a consolidated basis and separately for the
applicable portion of the Property to be released) for the applicable measuring period and
(B) based on the foregoing statements of Net Cash Flow and Debt Service, calculations of
the Debt Service Coverage Ratio both with and without giving effect to the proposed
release, and (C) calculations of the ratios referred to in such clause (vi),
accompanied by an Officer’s Certificate stating that such statements, calculations
and information are true, correct and complete in all material respects;

     (viii) Borrower shall deliver to Lender an opinion of counsel for Borrower that would
be reasonably satisfactory to a prudent lender opining, among other things, that (A)
Lender has a legal and valid perfected first priority security interest in the Defeasance
Collateral Account and the Partial Defeasance Collateral, (B) if a Securitization
has occurred, the REMIC Trust formed pursuant to such Securitization will not fail to
maintain its status as a “real estate mortgage investment conduit” within the meaning of
Section 860D of the Code as a result of the defeasance pursuant to this Section
2.5.2, (C) that Borrower has legally and validly transferred and assigned the Total
Defeasance Collateral to the Successor Borrower (D) delivery of the Partial
Defeasance Collateral and the grant of a security interest therein to Lender shall not
constitute an avoidable preference under Section 547 of the Bankruptcy Code or applicable
state law and (E) a non-consolidation opinion with respect to the Successor Borrower;

     (ix) Borrower shall deliver to Lender a Rating Agency Confirmation as to the Partial
Defeasance Event;

     (x) Borrower shall deliver a certificate of a “big four” or other nationally
recognized public accounting firm reasonably acceptable to Lender certifying that the
Partial Defeasance Collateral will generate monthly amounts equal to or greater than the
Scheduled Defeasance Payments;

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     (xi) Borrower shall deliver to Lender an Officer’s Certificate certifying that the
requirements set forth in this Section 2.5.2(a) have been satisfied;

     (xii) Borrower shall deliver to Lender such other certificates, documents or
instruments as Lender may reasonably request; and

     (xiii) Borrower shall pay all costs and expenses of Lender actually incurred in
connection with the defeasance, including Lender’s reasonable attorneys’ fees and
expenses.

          (b) If Borrower has elected to make a partial defeasance and the requirements of Section
2.5.2(a) have been satisfied, the Release Parcel shall be released from the Lien of the
Mortgage, upon satisfaction of the following additional conditions:

     (i) on the date Borrower delivers to Lender notice of the proposed release and on the
date of the release, no Event of Default has occurred which is continuing;

     (ii) not less than ten (10) Business Days prior to the date of the release, Borrower
delivers to Lender a notice setting forth (i) the date of the release, (ii) a metes and
bounds description of the Release Parcel and (iii) a Survey of the Release Parcel;

     (iii) Borrower delivers to Lender evidence (together with an Officer’s Certificate
certifying to such documentation) which would be satisfactory to a prudent lender acting
reasonably that (A) the Release Parcel has been, or is about to be (without any further
discretionary or other approvals pending), legally subdivided from the remainder of
the Property; (B) after giving effect to such transfer, each of the Release Parcel and
the balance of the Property conforms to and is in compliance in all material respects with
applicable Legal Requirements and constitute separate tax lots, and (C) the Release Parcel
is not necessary for the Property to comply with any zoning, building, land use
or parking or other Legal Requirements applicable to the Property or for the then current
use of the Property, including without limitation for legal access, driveways, parking,
utilities or drainage or, to the extent that the Release Parcel is necessary for any such
purpose, a reciprocal easement agreement or other agreement has been executed and
recorded that would run to the benefit of Borrower, run with the land and allow the owner
of the Property to continue to use the Release Parcel to the extent necessary for such
purpose;

     (iv) in the event that the release would reasonably be expected to materially
adversely effect Lender’s rights under the Title Insurance Policy as to any portion of the
Property other than as to the Release Parcel, Borrower shall deliver to Lender an
endorsement to the Title Insurance Policy insuring the Mortgage (A) extending the
effective date of the policy to the effective date of the release; (B) confirming no
change in the priority of the Mortgage on the balance of the Property (exclusive of the
Release Parcel) or in the amount of the insurance or the coverage of the Property
(exclusive of the Release Parcel) under the policy; and (C) insuring the rights and
benefits under any new or amended reciprocal easement agreement or such other
agreement required pursuant to clause (iii)(C) of this Section that has been executed and
recorded, and the lien of the

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Mortgage is a first
lien on Borrower’s beneficial interest in such easement, subject to no exceptions
other than Permitted Encumbrances and those approved by Lender in its reasonable
discretion;

     (v) Borrower has complied with any requirements applicable to the release in the
Leases, reciprocal easement agreements, operating agreements, parking agreements or other
similar agreements affecting the Property and the release does not violate any of the
provisions of such documents in any respect that would result in a termination (or
give any other party thereto the right to terminate), extinguishment or other loss of
material rights of Borrower or in a material increase in Borrower’s obligations under such
documents and, to the extent necessary to comply with such documents, the transferee of
the Release Parcel has assumed Borrower’s obligations, if any, relating to the
Release Parcel under such documents;

     (vi) Borrower shall submit to Lender, not less than five (5) Business Days prior to
the Partial Defeasance Date (or such shorter time as permitted by Lender in its sole
discretion), a release of Lien (and related Loan Documents) for execution by Lender. Such
release shall be in a form appropriate in the jurisdiction in which the Property
is located and that would be satisfactory to a prudent lender;

     (vii) Borrower shall pay all costs, taxes and expenses actually incurred in
connection with the release of the Lien of the Mortgage, including Lender’s reasonable
attorneys’ fees and reasonable out-of-pocket expenses;

     (viii) Borrower delivers to Lender any other information, approvals and documents
which would be required by a prudent lender acting reasonably relating to the release; and

     (ix) Borrower shall cause, if applicable, title to the Release Parcel so released
from the Lien of the Mortgage to be transferred to and held by a Person other than
Borrower.

          (c) Except
as set forth in this Section 2.5, no repayment, prepayment or defeasance of all or
any portion of the Note shall cause, give rise to a right to require, or otherwise result in, the
release of any Lien of any Mortgage on any of the Property.

          2.5.3 Defeasance Collateral Account. On or before the date on which Borrower delivers
the Defeasance Collateral, Borrower shall open at any Eligible Institution the defeasance
collateral account (the “Defeasance Collateral Account”) which shall at all times be an
Eligible Account. The Defeasance Collateral Account shall contain only (a) Defeasance Collateral,
and (b) cash from interest and principal paid on the Defeasance Collateral. All cash from interest
and principal payments paid on the Defeasance Collateral shall be paid over to Lender on each
Monthly Payment Date and applied to accrued and unpaid interest. Any cash from interest and
principal paid on the Defeasance Collateral not needed to pay the Scheduled Defeasance Payments
shall be paid to Borrower. Borrower shall cause the Eligible Institution at which the Defeasance
Collateral is deposited to enter an agreement with Borrower and Lender, satisfactory to Lender in
its sole discretion, pursuant to which such Eligible Institution shall

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agree to hold and distribute
the Defeasance Collateral in
accordance with this Agreement. The Borrower or Successor Borrower, as applicable, shall be
the owner of the Defeasance Collateral Account and shall report all income accrued on the
Defeasance Collateral for federal, state and local income tax purposes in its income tax return.
Borrower or
Successor Borrower shall prepay all cost and expenses associated with opening and maintaining the
Defeasance Collateral Account. Lender shall not in any way be liable by reason of any insufficiency
in the Defeasance Collateral Account.

          2.5.4
Successor Borrower. In connection with a Defeasance Event under this Section 2.5, Borrower shall, if required by the Rating Agencies or if Borrower elects to do so, establish
or designate a successor entity (the “Successor Borrower”) which shall be a single purpose
bankruptcy remote entity and which shall be approved by the Rating Agencies. Any such Successor
Borrower may, at Borrower’s option, be an Affiliate of Borrower unless the Rating Agencies shall
require otherwise. Borrower shall transfer and assign all obligations, rights and duties under and
to the Note or the Defeased Note, as applicable, together with the Defeasance Collateral to such
Successor Borrower. Such Successor Borrower shall assume the obligations under the Note or the
Defeased Note, as applicable, and the Security Agreement and Borrower shall be relieved of its
obligations under such documents. Borrower shall pay a minimum of One Thousand and No/100 Dollars
($1,000.00) to any such Successor Borrower as consideration for assuming the obligations under the
Note or the Defeased Note, as applicable, and the Security Agreement. Borrower shall pay all costs
and expenses actually incurred by Lender, including Lender’s reasonable attorney’s fees and
expenses, actually incurred in connection therewith.

          Section
2.6 Foreign Lenders.

          Any Lender that is not a United States “person” within the meaning of Section 7701(a)(30) of
the Code (a “Non-U.S. Lender”) shall deliver to Borrower, upon making the Loan or accepting
an assignment of the Loan or any interest therein, two duly completed and signed copies of IRS Form
W-8BEN, IRS Form W-8ECI or IRS Form W-8IMY or any successor form thereto (relating to such Non-U.S.
Lender and entitling it to an exemption from, or reduction of, withholding tax on all payments to
be made to such Non-U.S. Lender by Borrower) or such other evidence satisfactory to Borrower that
such Non-U.S. Lender is entitled to an exemption from, or reduction of, U.S. withholding tax. A
Form W-8BEN completed and delivered by (i) certain foreign trusts, or (ii) persons claiming an
exemption or reduced rate of withholding at source under an income tax treaty will not be
considered duly completed unless the Form W-8BEN contains such Person’s U.S. taxpayer
identification number. Thereafter and from time to time, such Non-U.S. Lender shall (a) upon
reasonable requests from Borrower, submit to Borrower such additional duly completed and signed
copies of one of such forms (or such successor forms as shall be adopted from time to time by the
relevant United States taxing authorities) as may then be available under then current United
States laws and regulations to avoid, or such evidence as is satisfactory to Borrower of any
available exemption from or reduction of, United States withholding taxes in respect of all
payments to be made to such Non-U.S. Lender, (b) notify Borrower of any change in circumstances
which would to Lender’s actual knowledge, modify or render invalid any claimed exemption or
reduction, and (c) upon reasonable requests from Borrower, take such steps as shall not be
materially disadvantageous to it, in the reasonable judgment of such Non-U.S. Lender, and as may be
reasonably necessary to

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avoid any
requirements that Borrower make any deduction or withholding for taxes from amounts payable to
such Non-U.S. Lender. If such Non-U.S. Lender fails to deliver the above forms or other
documentation reasonably satisfactory to Borrower evidencing complete exemption from U.S. federal
withholding tax on all payments by Borrower under the Loan, or if for any reason Borrower is
required by U.S. law to withhold U.S. income tax, then notwithstanding anything to the contrary in
the Loan Documents, Borrower may withhold from any interest payment to such Non-U.S. Lender an
amount equivalent to the applicable withholding tax imposed by Sections 1441 and 1442 of the Code
and deduct such withholding from such payment.

          III. REPRESENTATIONS AND WARRANTIES

          Section
3.1 Borrower Representations.

          Borrower represents and warrants that:

          3.1.1
Organization.

          (a) Each of Borrower and each SPC Party is duly organized, validly existing and in good
standing with full power and authority to own the Property and conduct its business, and is duly
qualified in all jurisdictions in which the ownership or lease of the Property or the conduct of
its business requires such qualification, except where the failure to be so qualified would not
have a Material Adverse Effect on its ability to perform its obligations hereunder, and Borrower
has taken all necessary action to authorize the execution, delivery and performance of this
Agreement and the other Loan
Documents by it, and has the power and authority to execute, deliver and perform under this
Agreement, the other Loan Documents and all the transactions contemplated hereby.

          (b) Borrower’s exact legal name is correctly set forth in the first paragraph of this
Agreement. Borrower is an organization of the type specified in the first paragraph of this
Agreement. Borrower is incorporated or organized under the laws of the state specified in the first
paragraph of this Agreement. Borrower’s principal place of business and chief executive office, and
the place where Borrower keeps its books and records, including recorded data of any kind or
nature, regardless of the medium of recording, including software, writings, plans, specifications
and schematics, has been for the preceding four (4) months (or, if less than four (4) months, the
entire period of the existence of Borrower) and will continue to be the address of Borrower set
forth in the first paragraph of this Agreement (unless Borrower notifies Lender in writing at least
thirty (30) days prior to the date of such change). Borrower’s organizational identification
number, if any, assigned by the state of its incorporation or organization is 3830201. Borrower’s
federal tax identification number is 20-1414039.

          3.1.2
Proceedings. This Agreement and the other Loan Documents have been duly
authorized, executed and delivered by Borrower and constitute a legal, valid and binding obligation
of Borrower, enforceable against Borrower in accordance with their respective terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the enforcement of creditors’ rights generally, and by

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general principles of equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law).

          
3.1.3 No Conflicts. The execution and delivery of this Agreement and the other Loan
Documents by Borrower and the performance of its obligations hereunder and thereunder will not
conflict with any provision of any law or regulation to which Borrower is subject, or conflict
with, result in a breach of, or constitute a default under, any of the terms, conditions or
provisions of any of Borrower’s organizational documents or any agreement or instrument to which
Borrower is a party or by which it is bound, or any order or decree applicable to Borrower, or
result in the creation or
imposition of any lien on any of Borrower’s assets or property (other than pursuant to the Loan
Documents).

          3.1.4 Litigation. There is no action, suit, proceeding or investigation pending or, to
Borrower’s knowledge, threatened against Borrower in any court or by or before any other
Governmental Authority that would have a Material Adverse Effect.

          3.1.5 Agreements. Borrower is not a party to any agreement or instrument or subject to
any restriction which would have a Material Adverse Effect. Borrower is not in default in any
material respect in the performance, observance or fulfillment of any of the obligations, covenants
or conditions contained in any agreement or instrument to which it is a party or by which Borrower
or the Property is bound. Borrower has no material financial obligation under any agreement or
instrument to which Borrower is a party or by which Borrower or the Property is otherwise bound,
other than (a) obligations incurred in the ordinary course of the operation of the Property and (b)
obligations under the Loan Documents.

          3.1.6 Consents. No consent, approval, authorization or order of any court or
Governmental Authority is required for the execution, delivery and performance by Borrower of, or
compliance by Borrower with, this Agreement or the consummation of the transactions contemplated
hereby, other than those which have been obtained by Borrower.

          3.1.7 Title. Borrower has good, marketable and insurable fee simple title to the real
property comprising part of the Property and good title to the balance of the Property, free and
clear of all Liens whatsoever except the Permitted Encumbrances. The Mortgage, when properly
recorded in the appropriate records, will create (a) a valid, first priority, perfected lien on the
Property, subject only to Permitted Encumbrances and (b) perfected security interests in and to,
and perfected collateral assignments of, all personalty (including the Leases), all in accordance
with the terms thereof, in each case subject only to any Permitted Encumbrances. There are no
mechanics’, materialman’s or other similar liens or claims which have been filed for work, labor or
materials affecting the Property which are or may be liens prior to, or equal or coordinate with,
the lien of the Mortgage. None of the Permitted Encumbrances, individually or in the aggregate,
materially interfere with the benefits of the security intended to be provided by the Mortgage and
this Loan Agreement, materially and adversely affect the value of the Property, impair the use or
operations of the Property or impair Borrower’s ability to pay its obligations in a timely manner.

          3.1.8 No Plan Assets. As of the date hereof and throughout the term of the Loan (a)
Borrower is not and will not be an “employee benefit plan,” as defined in Section 3(3)

-27-

 

of ERISA,
subject to Title I of ERISA, (b) none of
the assets of Borrower constitutes or will constitute “plan assets” of one or more such plans
within the meaning of 29 C.F.R. Section 2510.3-101, (c) Borrower is not and will not be a
“governmental plan” within the meaning of Section 3(32) of ERISA, and (d) transactions by or with
Borrower are not and will not be subject to any state statute regulating investments of, or
fiduciary obligations with respect to, governmental plans.

          3.1.9 Compliance. To the best of Borrower’s knowledge, Borrower and the Property and
the use thereof comply in all material respects with all applicable Legal Requirements, including,
without limitation, building and zoning ordinances and codes. To the best of Borrower’s knowledge,
Borrower is not in default or violation of any order, writ, injunction, decree or demand of any
Governmental Authority, the violation of which would have a Material Adverse Effect. There has not
been and shall never be committed by Borrower or any other person in occupancy of or involved with
the operation or use of the Property any act or omission affording the federal government or any
state or local government the right of forfeiture as against the Property or any part thereof or
any monies paid in performance of Borrower’s obligations under any of the Loan Documents. Borrower
hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording
such right of forfeiture.

          3.1.10 Financial Information. To the best of Borrower’s knowledge, all financial data,
including, without limitation, the statements of cash flow and income and operating expense, that
have been delivered to Lender in respect of the Property (i) are true, complete and correct in all
material respects, (ii) accurately represent the financial condition of the Property as of the date
of such reports, and (iii) have been prepared in accordance with GAAP or such other accounting
method that may be acceptable to Lender) throughout the periods covered, except as disclosed
therein. Borrower does not have any contingent liabilities, liabilities for taxes, unusual forward
or long-term commitments or unrealized or anticipated losses from any unfavorable commitments that
are known to Borrower and reasonably likely to have a Material Adverse Effect. Since the date of
the most current financial statements delivered by Borrower to Lender, there has been no material
adverse change in the financial
condition, operations or business of Borrower or, to Borrower’s knowledge, the Property from that
set forth in said financial statements.

          3.1.11 Condemnation. No Condemnation or other proceeding has been commenced or, to
Borrower’s best knowledge, is threatened with respect to all or any portion of the Property or for
the relocation of roadways providing access to the Property.

          3.1.12 Utilities and Public Access. The Property has rights of access to public ways
and is served by water, sewer, sanitary sewer and storm drain facilities adequate to service the
Property for its intended uses.

          3.1.13 Separate Lots. The Property is comprised of one (1) or more parcels which
constitute separate tax lots and do not constitute a portion of any other tax lot not a part of the
Property.

          3.1.14 Assessments. To Borrower’s knowledge, there are no pending or proposed special
or other assessments for public improvements or otherwise affecting the

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Property, nor are there any
contemplated improvements to
the Property that may result in such special or other assessments.

          3.1.15 No Defenses. The Loan Documents are not subject to any right of rescission, set
off, counterclaim or defense by Borrower, including the defense of usury, nor would the operation
of any of the terms of the Loan Documents, or the exercise of any right thereunder, render the Loan
Documents unenforceable, and Borrower has not asserted any right of rescission, set off,
counterclaim or defense with respect thereto.

          3.1.16 Assignment of Leases. The Assignment of Leases creates a valid assignment of,
or a valid security interest in, certain rights under the Leases, subject only to a license granted
to Borrower to exercise certain rights and to perform certain obligations of the lessor under the
Leases, as more particularly set forth therein. No Person other than Lender has any interest in or
assignment of the Leases or any portion of the Rents due and payable or to become due and payable
thereunder.

          3.1.17 Insurance. Borrower has obtained and has delivered to Lender original or
certified copies of all of the Policies, with all premiums prepaid thereunder, reflecting the
insurance coverages, amounts and other requirements set forth in this Agreement. No claims have
been made under any of the Policies, and no Person, including Borrower, has done, by act or
omission, anything which would impair the coverage of any of the Policies.

          3.1.18 Licenses. To the best of Borrower’s knowledge, all permits and approvals,
including, without limitation, certificates of occupancy required by any Governmental Authority for
the use, occupancy and operation of the Property in the manner in which the Property is currently
being used, occupied and operated have been obtained and are in full force and effect.

          3.1.19 Flood Zone. Except as disclosed on the Survey, none of the Improvements on the
Property is located in an area identified by the Federal Emergency Management Agency as a special
flood hazard area.

          3.1.20 Physical Condition. Except as set forth in any property condition or
engineering report delivered to and reviewed by Lender in connection with the Loan, and, to
Borrower’s knowledge, the Property, including, without limitation, all buildings, improvements,
parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire
protection systems, electrical systems, equipment, elevators, exterior sidings and doors,
landscaping, irrigation systems and all structural components, are in good condition, order and
repair in all material respects; except as set forth in any property condition or engineering
report delivered to and reviewed by lender in connection with the Loan, and, to Borrower’s
knowledge, there exists no structural or other material defects or damages in the Property, whether
latent or otherwise, and Borrower has not received notice from any insurance company or bonding
company of any defects or inadequacies in the Property, or any part thereof, which would adversely
affect the insurability of the same or cause the imposition of extraordinary premiums or charges
thereon or of any termination or threatened termination of any policy of insurance or bond.

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          3.1.21 Boundaries. Except as set forth in the Survey and in Lender’s Title Insurance
policy, all of the improvements which were included in determining the appraised value of the
Property lie wholly within the boundaries and building restriction lines of the Property, and no
improvements on adjoining properties encroach upon the Property, and no easements or other
encumbrances affecting the Property encroach upon any of the improvements, so as to affect the
value or marketability of the Property except those which are insured against by Title Insurance
each of which, whether or not insured are shown on the Survey.

          3.1.22 Leases. Borrower represents and warrants to Lender with respect to the Leases
that: (a) the rent roll attached hereto as Schedule I is true, complete and correct and the
Property is not subject to any Leases other than the Leases described in Schedule I, (b) the Leases
identified on Schedule I are in full force and effect and there are no defaults thereunder by
either party except as otherwise set forth in an estoppel certificate executed by the applicable
Tenant delivered to Lender prior to the date hereof, (c) the copies of the Leases delivered to
Lender are true and complete in all material respects, and there are no oral agreements with
respect thereto except as otherwise set forth in an estoppel certificate executed by the applicable
Tenant delivered to Lender prior to the date hereof, (d) no Rent (including security deposits) has
been paid more than one (1) month in advance of its due date except as otherwise set forth in an
estoppel certificate executed by the applicable Tenant delivered to Lender prior to the date
hereof, (e) all work to be performed by Borrower under each Lease has been performed as required
and has been accepted by the applicable Tenant except as otherwise set forth in an estoppel
certificate executed by the applicable Tenant delivered to Lender prior to the date hereof, (f) any
payments, free rent, partial rent, rebate of rent or other payments, credits, allowances or
abatements required to be given by Borrower to any Tenant has already been received by such Tenant
except as otherwise set forth in an estoppel certificate executed by the applicable Tenant
delivered to Lender prior to the date hereof, (g) all security deposits are being held in
accordance with Legal Requirements, (h) neither the landlord nor any Tenant is in default under any
of the Leases except as otherwise set forth in an estoppel certificate executed by the applicable
Tenant delivered to Lender prior to the date hereof; (i) Borrower has no knowledge of any notice of
termination or default with respect to any Lease; (j) Borrower has not assigned or pledged any of
the Leases, the rents or any interests therein except to Lender; (k) no Tenant or other party has
an option or right of first refusal or offer, to purchase all or any portion of the Property (other
than the Stop and Shop Lease, which right of first refusal has been waived by Stop and Shop
pursuant to that certain Notice of Waiver of Right of First Refusal dated October 28, 2004); (l) no
Tenant has the right to terminate its Lease prior to expiration of the stated term of such Lease;
and (m) all existing Leases are subordinate to the Mortgage either
pursuant to their terms or a recordable subordination agreement delivered concurrently herewith, or
delivered hereafter as approved by Lender.

          3.1.23 Filing and Recording Taxes. All transfer taxes, deed stamps, intangible taxes
or other amounts in the nature of transfer taxes required to be paid under applicable Legal
Requirements in connection with the transfer of the Property to Borrower have been paid or are
being paid simultaneously herewith. All mortgage, mortgage recording, stamp, intangible or other
similar tax required to be paid under applicable Legal Requirements in connection with the
execution, delivery, recordation, filing, registration, perfection or enforcement of any of the
Loan Documents, including, without limitation, the Mortgage, have been paid or are being paid

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simultaneously
herewith. All taxes and governmental assessments due and owing in respect of the Property have
been paid, or an escrow of funds in an amount sufficient to cover such payments has been
established hereunder.

          3.1.24 Single Purpose. Borrower hereby represents and warrants to, and covenants with,
Lender that as of the date hereof and until such time as the Debt shall be paid in full, Borrower
has not at any time, does not presently, and shall not:

          (a) own any asset or property other than (i) the Property, and (ii) incidental personal
property necessary for the ownership or operation of the Property;

          (b) engage in any business other than the ownership, management and operation of the Property
or fail to conduct and operate its business as presently conducted and operated;

          (c) enter into any contract or agreement with any Affiliate of Borrower, any constituent party
of Borrower or any Affiliate of any constituent party, except upon terms and conditions that are
intrinsically fair and substantially similar to those that would be available on an arms-length
basis with third parties other than any such party;

          (d) incur any Indebtedness other than (i) the Debt, (ii) unsecured trade payables and
operational debt not evidenced by a note and in an aggregate amount not exceeding $1,000,000.00 at
any one time, and (iii) Indebtedness incurred in the financing of equipment and other personal
property used on the Property with annual payments not exceeding $500,000.00 in the aggregate;
provided that any Indebtedness incurred pursuant to
subclauses (ii) and (iii) shall be (x) paid
within sixty (60) days of the date incurred and (y) incurred in the ordinary course of business. No
Indebtedness other than the Debt may be secured (subordinate or pari passu) by the Property;

          (e) make any loans or advances to any third party (including any Affiliate or constituent
party), or acquire obligations or securities of its Affiliates;

          (f) fail to remain solvent or fail to pay its debts and liabilities (including, as applicable,
shared personnel and overhead expenses) from its assets as the same shall become due;

          (g) fail to do all things necessary to observe organizational formalities and preserve its
existence, and Borrower will not, nor will Borrower permit any constituent party to amend, modify
or otherwise change the partnership certificate, partnership agreement, articles of incorporation
and bylaws, operating agreement, trust or other organizational documents of Borrower or such
constituent party without the reasonable prior consent of Lender in any manner that (i) violates
the covenants set forth in this Section 3.1.24, or (ii) amends, modifies or otherwise changes any
provision thereof that by its terms cannot be modified at any time when the Loan is outstanding or
by its terms cannot be modified without Lender’s consent;

          (h) fail to maintain all of its books, records, financial statements and bank accounts
separate from those of its Affiliates and any constituent party. Borrower’s assets will not be
listed as assets on the financial statement of any other Person, provided, however, that

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Borrower’s
assets may be included in a consolidated financial statement of its Affiliates provided that
(i) appropriate notation shall be made on such consolidated financial statements to indicate the
separateness of Borrower and such Affiliates and to indicate that Borrower’s assets and credit are
not available to satisfy the debts and other obligations of such Affiliates or any other Person and
(ii) such assets shall be listed on Borrower’s own separate balance sheet. Borrower will file its
own tax returns (to the extent Borrower is required to file any such tax returns) and will not file
a consolidated federal income tax return with any Person other than Cedar Shopping Centers Inc.
Borrower shall maintain its books, records, resolutions and agreements as official records;

          (i) fail to be, or fail to hold itself out to the public as, a legal entity separate and
distinct from any other entity (including any Affiliate of Borrower or any constituent party of
Borrower), fail to correct any known misunderstanding regarding its status as a separate entity,
fail to conduct business in its own name, or fail to maintain and utilize separate stationery,
invoices and checks bearing its own name, and Borrower shall not identify itself or any of its
Affiliates as a division or part of the other;

          (j) intentionally omitted;

          (k) seek or effect the liquidation, dissolution, winding up, liquidation, consolidation or
merger, in whole or in part, of Borrower nor permit any constituent party of Borrower to do any of
the foregoing;

          (l) commingle the funds and other assets of Borrower with those of any Affiliate or
constituent party or any other Person, and will hold all of its assets in its own name;

          (m) fail to maintain its assets in such a manner that it will not be costly or difficult to
segregate, ascertain or identify its individual assets from those of any Affiliate or constituent
party or any other Person;

          (n) guarantee or become obligated for the debts of any other Person or hold itself out to be
responsible for or have its credit available to satisfy the debts or obligations of any other
Person;

          (o) (i) If Borrower is a limited partnership or a limited liability company (other than a
single member limited liability company), fail to cause each general partner or managing member
(each, an “SPC Party”) to be a corporation whose sole asset is its interest in Borrower and
each such SPC Party will at all times comply, and will cause Borrower to comply, with each of the
representations, warranties, and covenants contained in this Section 3.1.24 as if such
representation, warranty or covenant was made directly by such SPC Party. Upon the withdrawal or
the disassociation of an SPC Party from Borrower, Borrower shall immediately appoint a new SPC
Party whose articles of incorporation are substantially similar to those of such SPC Party and
deliver a new non-consolidation opinion to the Rating Agency or Rating Agencies, as applicable,
with respect to the new SPC Party and its equity owners;

     (ii) If Borrower is a single member limited liability company, fail to have at least
two (2) springing members, one of which, upon the dissolution of such sole member or the
withdrawal or the disassociation of the sole member from Borrower, shall immediately
become the sole member of Borrower, and the other of which shall become

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the sole member
of Borrower if the first such springing member no longer is available to serve as
such sole member.

          (p) fail to cause there to be one duly appointed member of the board of directors who are
provided by a nationally recognized company that provides professional independent directors (each,
an “Independent Director”) of Borrower reasonably satisfactory to Lender who shall not have
been at the time of such individual’s appointment or at any time while serving as a director of
Borrower, and may not have been at any time during the preceding five years (i) a stockholder,
director (other than as an Independent Director), officer, employee, partner, attorney or counsel
of Borrower or any Affiliate of either of them, (ii) a customer, supplier or other Person who
derives any of its purchases or revenues from its activities with Borrower or any Affiliate (other
than payment for services as an Independent Director), (iii) a Person or other entity controlling
or under common control with any such stockholder, partner, customer, supplier or other Person, or
(iv) a member of the immediate family of any such stockholder, director, officer, employee,
partner, customer, supplier or other Person. (For purposes of this subclause (p), the term
“Affiliate” means any person controlling, under common control with, or
controlled by the person in question; and the term “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of management, policies or activities of
a person or entity, whether through ownership of voting securities, by contract or otherwise.) A
natural person who satisfies the foregoing definition other than subparagraph (ii) shall
not be disqualified from serving as an Independent Director if such individual is an independent
director provided by a nationally-recognized company that provides professional independent
directors and that also provides other corporate services in the ordinary course of its business. A
natural person who otherwise satisfies the foregoing definition except for being the independent
director of a “special purpose entity” affiliated with the borrower that does not own a direct or
indirect equity interest in the borrower or any co-borrower shall not be disqualified from serving
as an Independent Director of the SPC Party if such individual is at the time of initial
appointment, or at any time while serving as a Independent Director of the SPC Party, an
Independent Director of a “special purpose entity” affiliated with the Borrower or the SPC Party
(other than any entity that owns a direct or indirect equity interest in borrower or any
co-borrower) if such individual is an independent director provided by a nationally-recognized
company that provides professional independent directors. For purposes of this paragraph, a
“special purpose entity” is an entity, whose organizational documents contain restrictions on its
activities substantially similar to those set forth in the SPC Party’s organizational documents.

          (q) cause or permit the board of directors of Borrower to take any action which, under the
terms of any certificate of incorporation, by laws or any voting trust agreement with respect to
any common stock or under any organizational document of Borrower, requires a vote of the board of
directors of each SPC Party and Borrower unless at the time of such action there shall be at least
one (1) member who is an Independent Director.

          (r) intentionally omitted.

          (s) permit any Affiliate or constituent party independent access to its bank accounts.

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          (t) fail to pay the salaries of its own employees (if any) from its own funds or fail to
maintain a sufficient number of employees (if any) in light of its contemplated business
operations.

          (u) fail to compensate each of its consultants and agents from its funds for services provided
to it and pay from its own assets all obligations of any kind incurred.

          3.1.25 Tax Filings. To the extent required, Borrower has filed (or has 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. Borrower believes that its tax returns (if any) properly
reflect the income and taxes of Borrower for the periods covered thereby, subject only to
reasonable adjustments required by the Internal Revenue Service or other applicable tax authority
upon audit.

          3.1.26 Solvency. Borrower (a) has not entered into the transaction or any Loan
Document with the actual intent to hinder, delay, or defraud any creditor and (b) received
reasonably equivalent value in exchange for its obligations under the Loan Documents. Giving effect
to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following
the making of the Loan, 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 Loan, 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 Loan 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 Indebtedness and liabilities (including contingent liabilities and
other commitments) beyond its ability to pay such Indebtedness and liabilities 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).

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

          3.1.28 Organizational Chart.
The organizational chart attached as Schedule III hereto,
relating to Borrower and certain Affiliates and other parties, is true, complete and correct on and
as of the date hereof.

          3.1.29 Investment Company Act. Borrower is not (a) an “investment company” or a
company “controlled” by an “investment company,” within the meaning of the Investment Company Act
of 1940, as amended; (b) a “holding company” or a “subsidiary company” of a “holding company” or an
“affiliate” of either a “holding company” or a “subsidiary company” within the meaning of the
Public Utility Holding Company Act of 1935, as amended; or

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(c)
subject to any other federal or state law or regulation which purports to restrict or regulate
its ability to borrow money.

          3.1.30 Access/Utilities. Except as disclosed in the Survey, all public utilities
necessary to the continued use and enjoyment of the Property as presently used and enjoyed are
located in the public right-of-way abutting the Property. All roads necessary for the full
utilization of the Property for its current purpose have been completed and dedicated to public use
and accepted by all governmental authorities or are the subject of access easements for the benefit
of the Property.

          3.1.31 No Bankruptcy Filing. Borrower is not contemplating either the filing of a
petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of its
assets or property, and Borrower does not have any knowledge of any Person contemplating the filing
of any such petition against it.

          3.1.32 Full and Accurate Disclosure. To the best of Borrower’s knowledge, no
information contained in this Agreement, the other Loan Documents, or any written statement
furnished by or on behalf of Borrower pursuant to the terms of this Agreement contains any untrue
statement of a material fact or omits to state a material fact necessary to make the statements
contained herein or therein not misleading in light of the circumstances under which they were
made. There is no fact or circumstance presently known to Borrower which has not been disclosed to
Lender and which will have a Material Adverse Effect.

          3.1.33 Foreign Person. Borrower is not a “foreign person” within the meaning of
Section 1445(f)(3) of the Code.

          3.1.34 No Change in Facts or Circumstances; Disclosure. To the best of Borrower’s
knowledge, there has been no material adverse change in any condition, fact, circumstance or event
that would make the financial statements, rent rolls, reports, certificates or other documents
submitted in connection with the Loan inaccurate, incomplete or otherwise misleading in any
material respect or that otherwise materially and adversely affects the business operations or the
financial condition of Borrower or the Property.

          3.1.35 Perfection of Accounts. Borrower hereby represents and warrants to Lender that:

          (a) This Agreement, together with the other Loan Documents, create a valid and continuing
security interest (as defined in the Uniform Commercial Code) in the Accounts (as defined in the
Cash Management Agreement) in favor of Lender, which security interest is prior to all other Liens,
and is enforceable as such against creditors of and purchasers from Borrower. Other than in
connection with the Loan Documents, Borrower has not sold or otherwise conveyed the Accounts;

          (b) The Accounts constitute “deposit accounts” or “securities accounts” within the meaning of
the Uniform Commercial Code, as set forth in the Cash Management Agreement;

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          (c) Pursuant to the Cash Management Agreement, Agent has agreed to comply with all
instructions originated by Lender, without further consent by Borrower, directing disposition of
the Accounts and all sums at any time held, deposited or invested therein, together with any
interest or other earnings thereon, and all proceeds thereof (including proceeds of sales and other
dispositions), whether accounts, general intangibles, chattel paper, deposit accounts, instruments,
documents or securities; and

          (d) The Accounts are not in the name of any Person other than Borrower, as pledgor, or Lender,
as pledgee. Borrower has not consented to Agent’s complying with instructions with respect to the
Accounts from any Person other than Lender.

          3.1.36 Intentionally Omitted.

          3.1.37 Intentionally Omitted.

          3.1.38 Patriot Act.

          (a) None of Borrower, any of its constituents or Affiliates, and to the best of Borrower’s
knowledge, any of its brokers or other agents acting or benefiting in any capacity in connection
with the Loan is a Prohibited Person.

          (b) None of Borrower, any of its constituents or Affiliates, or, to Borrower’s knowledge, any
of its brokers or other agents acting in any capacity in connection with the Loan, (i) has
conducted or will conduct any business or has engaged or will engage in any transaction or dealing
with any Prohibited Person, including making or receiving any contribution of funds, goods or
services to or for the benefit of any Prohibited Person, (ii) has dealt or will deal in, or
otherwise has engaged or will engage in any transaction relating to, any property or interests in
property blocked pursuant to the Executive Order; or (iii) has engaged or will engage in or has
conspired or will conspire to engage in any transaction that evades or avoids, or has the purpose
of evading or avoiding, or attempts to violate, any of the prohibitions set forth in the Executive
Order or the Patriot Act.

          (c) Borrower covenants and agrees to deliver to Lender any certification or other evidence
requested from time to time by Lender in its reasonable discretion, confirming Borrower’s
compliance with this Section 3.1.38.

          Section 3.2 Survival of Representations.

          The representations and warranties set forth in Section 3.1 shall survive for so long as any
amount remains payable to Lender under this Agreement or any of the other Loan Documents.

          IV. BORROWER COVENANTS

          Section 4.1 Borrower Affirmative Covenants.

          Borrower hereby covenants and agrees with Lender that:

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          4.1.1 
Existence; Compliance with Legal Requirements. Borrower shall do or cause to be
done all things necessary to preserve, renew and keep in full force and effect its existence,
rights, licenses, permits and franchises and comply with all Legal Requirements applicable to it
and the Property.

          4.1.2 
Taxes and Other Charges. Except as otherwise provided herein, Borrower shall pay
all Taxes and Other Charges now or hereafter levied or assessed or imposed against the Property or
any part thereof as the same become due and payable; provided,
however, Borrower’s obligation to
directly pay Taxes shall be suspended for so long as Borrower complies with the terms and
provisions of Section 6.2 hereof. Borrower shall furnish to Lender receipts for the payment of the
Taxes and the Other Charges prior to the date the same shall become
delinquent; provided, however,
that Borrower is not required to furnish such receipts for payment of Taxes in the event that such
Taxes have been paid by Lender pursuant to Section 6.2 hereof. Borrower shall not permit or suffer
and shall promptly discharge any lien or charge against the Property. After prior notice to Lender,
Borrower, at its own expense, may contest by appropriate legal proceeding, conducted in good faith
and with due diligence, the amount or validity of any Taxes or Other
Charges, provided that (a) no
Default or Event of Default has occurred and remains uncured; (b) such proceeding shall be
permitted under and be conducted in accordance with all applicable statutes, laws and ordinances;
(c) neither the Property nor any part thereof or interest therein will be in danger of being sold,
forfeited, terminated, canceled or lost; (d) Borrower shall promptly upon final determination
thereof pay the amount of any such Taxes or Other Charges,
together with all costs, interest and penalties which may be payable in connection therewith; (e)
such proceeding shall suspend the collection of Taxes or Other Charges from the Property; (f)
Borrower shall deposit with Lender cash, or other security as may be reasonably approved by Lender,
in an amount equal to one hundred twenty-five percent (125%) of the contested amount, to insure the
payment of any such Taxes or Other Charges, together with all interest and penalties thereon; and
(g) such contest by Borrower is not in violation of Leases or Operating Agreements. Lender may pay
over any such cash or other security held by Lender to the claimant entitled thereto at any time
when, in the judgment of Lender, the entitlement of such claimant is established.

          4.1.3 
Litigation. Borrower shall give prompt notice to Lender of any litigation or
governmental proceedings pending or, upon discovery by Borrower, threatened against Borrower which
if adversely determined would have a Material Adverse Effect.

          4.1.4 Access to Property. Borrower shall permit agents, representatives and employees
of Lender to inspect the Property or any part thereof at reasonable hours upon reasonable advance
notice, provided that such inspection is conducted in a manner that minimizes interference with
Tenants and the operation of the Property.

          4.1.5 Intentionally Omitted.

          4.1.6 Financial Reporting.

          (a) GAAP. Borrower shall keep and maintain or shall cause to be kept and maintained,
consistent with GAAP (or any other accounting basis that is reasonably acceptable to Lender) proper
and accurate books, records and accounts reflecting all of the financial affairs of

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Borrower and
all items of income and expense in connection with the operation on an individual basis of the Property.
All financial statements delivered to Lender consistent with this
Section 4.1.6 shall be prepared
consistent with GAAP in the United States of America as in effect on the date so indicated and
consistently applied.

          (b) Monthly Reports. Prior to a Securitization, within thirty (30) days after the end
of each calendar month, if requested by Lender Borrower, shall furnish to Lender a current (as of
the calendar month just ended) balance sheet, a detailed operating statement (showing monthly
activity and year to date) stating gross income from operations, operating expenses, for the
calendar month just ended, a rent roll for the subject month and, as requested by Lender, any other
documentation supporting the information disclosed in the most recent financial statements. In
addition, such statement shall also be accompanied by (i) a calculation reflecting the Debt Service
Coverage Ratio as of the last day of such month for such month and (ii) a certificate of an officer
of Borrower or the general partner of Borrower stating that the representations and warranties of
Borrower set forth in Section 3.1.24 are true and correct as of the date of such certificate and
that there are no trade payables outstanding for more than sixty (60) days.

          (c) Quarterly Reports. Within forty five (45) days after the end of each calendar
quarter, Borrower shall furnish to Lender a detailed operating statement (showing quarterly
activity and year to date) stating gross income and operating expenses for the calendar quarter
just ended and a balance sheet (which also reports capital expenditures) for such quarter for
Borrower. Borrower’s quarterly statements shall be accompanied by (i) a current rent roll for the
Property and (ii) a summary report for the most recently completed calendar year of aggregate sales
by tenants under Leases of the Property, to the extent such information is provided by Tenants
and/or required under the their Leases, and (iii) a certificate executed by an officer of Borrower
or the general partner of Borrower stating that each such quarterly statement presents fairly the
financial condition and the results of operations of the Borrower and the Property and has been
prepared consistent with general accepted accounting principles.

          (d) Annual Reports. Within seventy five (75) days after the end of each calendar year
of Borrower’s operation of the Property, Borrower will furnish to Lender a complete copy of
Borrower’s annual financial statements prepared by Borrower (or, if required by Lender, audited by
Ernst & Young LLP or other firm of independent certified public accountants acceptable to Lender),
consistent with GAAP for such calendar year which financial statements shall contain a balance
sheet, a detailed operating statement stating gross income, operating expenses for each of Borrower
and the Property. Borrower’s annual financial statements shall be accompanied by (i) a certificate
executed by an officer of Borrower or the managing member of Borrower stating that each such annual
financial statement presents fairly the financial condition and the results of operations of
Borrower and the Property and has been prepared consistent with general accepted accounting
principles, and (ii) if required by Lender, an unqualified opinion of Ernst & Young LLP or other
firm of independent certified public accountants
acceptable to Lender (notwithstanding the foregoing, Borrower’s financial statements may be
consolidated with its Affiliates, provided that Borrower also provides appropriate
schedules to report the amounts applicable to the Borrower and the Property).

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          (e) Certification; Supporting Documentation. Each such financial statement shall be in
scope and detail reasonably satisfactory to Lender and certified by an officer of Borrower.

          (f) Additional Reports. Borrower shall deliver to Lender as soon as reasonably
available but in no event later than thirty (30) days after such items become available to Borrower
in final form:

     (i) copies of any final engineering or environmental reports prepared for Borrower
with respect to the Property;

     (ii) a copy of any notice received by Borrower from any environmental authority
having jurisdiction over the Property with respect to a violation of any environmental law
applicable to the Property other than the Exxon Remediation;

     (iii) a summary report containing each of the following with respect to the Property
for the most recently completed calendar year: (A) aggregate sales by Tenants under Leases
or other occupants of the Property (only to the extent such information is provided by
Tenants, and/or required under Leases) and on a comparable store basis), (B) rent
per square foot payable by each tenant and (C) aggregate occupancy of the Property by
anchor space and in-line store space as of December 31; and

     (iv) if requested by Lender, a summary report listing only Tenants and square footage
occupied by such Tenants.

          (g) Access. Lender shall have the right from time to time upon reasonable prior
written notice to Borrower, at all times during normal business hours to examine such books,
records and accounts at the office of Borrower or other Person maintaining such books, records and
accounts and to make such copies or extracts thereof as Lender shall reasonably desire. After the
occurrence of an Event of Default, Borrower shall pay any costs and expenses incurred by Lender to
examine Borrower’s records with respect to the Property, as Lender shall determine to be reasonably
necessary or appropriate in the protection of Lender’s interest.

          (h) Format of Delivery. Any reports, statements or other information required to be
delivered under this Agreement shall be delivered (i) in paper form, (ii) on a diskette, and (iii)
if requested by Lender and within the capabilities of Borrower’s data systems without change or
modification thereto, in electronic form reasonably acceptable to Lender.

          (i) Annual Budget. Borrower shall submit the Annual Budget to Lender not later than
twenty (20) days prior to the commencement of each Fiscal Year.

          (j) Other Required Information. Borrower shall furnish to Lender, within five (5)
Business Days after request (or as soon thereafter as may be reasonably possible), such further
detailed information with respect to the operation of the Property and the financial affairs of
Borrower as may be reasonably requested by Lender, provided that Borrower has such information
available.

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          4.1.7 Title to the Property. Borrower will warrant and defend the validity and
priority of the Liens of the Mortgage and the Assignment of Leases on the Property against the
claims of all Persons whomsoever, subject only to Permitted Encumbrances.

          4.1.8 Estoppel Statement.

          (a) After request by Lender (not more than one (1) time in any calendar year provided no Event
of Default exists), Borrower shall within ten (10) Business Days furnish Lender with a statement,
duly acknowledged and certified, stating (i) the unpaid principal amount of the Note, (ii) the
Interest Rate of the Note, (iii) the date installments of interest were last paid, (iv) any offsets
or defenses to the payment of the Debt, if any, and (v) that this Agreement and the other Loan
Documents have not been modified or if modified, giving particulars of such modification.

          (b) Borrower shall endeavor to deliver to Lender, within forty-five (45) days after request,
an estoppel certificate from each Tenant under any Lease (provided that Borrower shall only be
required to use commercially reasonable efforts to obtain an estoppel certificate from any Tenant
not required to provide an estoppel certificate under its Lease); provided that such certificate
shall be in the form required under such Lease; provided further that Borrower
shall not be required to deliver such certificates more frequently than two (2) times in any
calendar year.

          4.1.9 Leases.

          (a) All Leases and other rental arrangements shall in all material respects be approved by
Lender and shall be on a standard Lease form previously approved by Lender with no modifications
(except as approved by Lender). Such Lease form shall provide that (i) the Lease is subordinate to
the Mortgage, (ii) the tenant shall attorn to Lender, and (iii) that any cancellation, surrender,
or amendment of such Lease without the prior written consent of Lender shall be voidable by Lender.
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 Lender’s request, Borrower shall furnish to Lender a statement
of all tenant security deposits, and copies of all Leases not previously delivered to Lender,
certified by Borrower as being true and correct in all material respects. Notwithstanding anything
contained in the Loan Documents, Lender’s approval shall not be required for future Leases, Lease
modifications, or Lease extensions if the following conditions are satisfied: (A) no Event of
Default has occurred and is continuing; (B) the Lease is on the standard Lease form approved by
Lender with no modifications except for commercially reasonable modifications agreed to in the
ordinary course of Borrower’s business, but in no event shall there be any material modifications
to the subordination, attornment, estoppel and landlord liability clauses of such Lease without the
prior written consent of Lender, which consent shall not be unreasonably withheld, conditioned or
delayed; (C) the Lease does not violate any restrictive covenant affecting the Property or any
other Lease for space in the Property; (D) the Lease is not a Major Lease; (E) the Lease shall
provide for rental rates and landlord concessions comparable to existing local market rates and
shall be an arms length transaction and in no event be with an Affiliate of Borrower; (F) the Lease
shall be to a tenant which Borrower, in its professional and commercially reasonably judgment, has
determined is creditworthy; and (G) the

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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). Lender shall execute and deliver a Subordination Non-Disturbance and
Attornment Agreement in the form annexed hereto as Schedule IV to Tenants under future Major Lease
approved by Lender promptly upon request with such commercially reasonable changes as may be
requested by Tenants, from time to time, and which are reasonably acceptable to Lender.

          (b) Borrower (i) shall perform the obligations which Borrower is required to perform under the
Leases; (ii) shall enforce the obligations to be performed by the tenants; (iii) shall promptly
furnish to Lender 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; (iv) 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 months rent; (v) shall not
enter into any ground Lease or master Lease of any part of the Property; (vi) shall not further
assign or encumber any Lease; (vii) shall not, except with Lender’s prior written consent, cancel
or accept surrender or termination of any Lease, except as expressly set forth in Section
4.1.9(c) hereof, and (viii) any Lease termination or cancellation fees shall be paid to Lender
and held in the Rollover Fund. Any action in violation of clauses (v), (vi),
(vii), and (viii) of this Section 4.1.9(b) shall be void at the election of
Lender.

          (c) Notwithstanding anything to the contrary contained herein, Borrower shall have the right
to terminate any Lease which is not a Major Lease, provided such termination is (i) commercially
reasonable, (ii) made in accordance with Borrower’s reasonable business judgment, and (iii) the
Lease so terminated is replaced with a Lease which otherwise complies with the requirements set
forth in this Section 4.1.9.

          (d) Notwithstanding anything to the contrary contained in this Section 4.1.9, whenever
Lender’s approval or consent is required pursuant to the provisions of this Section 4.1.9
for any matter that Lender has not previously approved, Lender shall respond within ten (10)
Business Days after Lender’s receipt of Borrower’s written request for such approval or consent. If
Lender fails to respond to such request within five (5) Business Days, and Borrower sends a second
request containing a legend in
bold letters stating that Lender’s failure to respond within five (5) Business Days shall be deemed
consent or approval, Lender shall be deemed to have approved or consented to the matter for which
Lender’s consent or approval was sought if Lender fails to respond to such second written request
before the expiration of such second five (5) Business Days period.

          4.1.10 Alterations. Lender’s prior approval shall be required in connection with any
alterations to any Improvements (except tenant improvements under any Lease approved by Lender or
under any Lease for which approval was not required by Lender under this Agreement) (a) adversely
affecting structural components of the Property, utilities, HVAC or the exterior of the building,
(b) that may have a Material Adverse Effect or (c) the cost of which (including any related
alteration, improvement or replacement) is reasonably anticipated to exceed the Alteration
Threshold, which approval may be granted or withheld in Lender’s reasonable discretion. If the
total unpaid amounts incurred and to be incurred with respect to such alterations to the
Improvements shall at any time exceed the Alteration Threshold, Borrower shall promptly deliver to
Lender as security for the payment of such amounts and as

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additional security for Borrower’s obligations under the Loan Documents any of the following
selected by Borrower: (i) cash, (ii) Letters of Credit, (iii) U.S. Obligations, (iv) other
securities reasonably acceptable to Lender, provided that Lender shall have received a Rating
Agency Confirmation as to the form and issuer of same, or (v) a completion bond, provided that
Lender shall have received a Rating Agency Confirmation as to the form and issuer of same. Such
security shall be in an amount equal to the excess of the total unpaid amounts incurred and to be
incurred with respect to such alterations to the Improvements (other than such amounts to be paid
or reimbursed by Tenants under the Leases) over the Alteration Threshold.

          4.1.11 Intentionally Omitted.

          4.1.12 Material Agreements. Borrower shall (a) promptly perform and/or observe all of
the material covenants and agreements required to be performed and observed by it under each
Material Agreement and Operating Agreement to which it is a party, and do all things necessary to
preserve and to keep unimpaired its rights thereunder, (b) promptly notify Lender in writing of the
giving of any notice of any default by any party under any Material Agreement and Operating
Agreement of which it is aware which has a Material Adverse Effect on Borrower or the Property and
(c) promptly enforce the performance and observance of all of the material covenants and agreements
required to be performed and/or observed by the other party under each Material Agreement and
Operating Agreement to which it is a party in a commercially reasonable manner.

          4.1.13 Performance by Borrower. Borrower shall in a timely manner observe, perform and
fulfill each and every covenant, term and provision of each Loan Document executed and delivered by
Borrower, and shall not enter into or otherwise suffer or permit any amendment, waiver, supplement,
termination or other modification of any Loan Document executed and delivered by Borrower without
the prior consent of Lender.

          4.1.14 Intentionally Omitted.

          4.1.15 Business and Operations. Borrower will continue to engage in the businesses
currently conducted by it as and to the extent the same are necessary for the ownership and leasing
of the Property. Borrower will qualify to do business and will remain in good standing under the
laws of each jurisdiction as and to the extent the same are required for the ownership and leasing
of the related Property. Borrower shall at all times cause the Property to be maintained as a
commercial retail shopping center.

          4.1.16 Loan Fees. Borrower shall pay all fees and costs (including, without
limitation, all origination and commitment fees) required of Borrower pursuant to the terms of that
certain term sheet between Cedar Shoppings Center Partnership, L.P. and Lender dated September 30,
2004.

          4.1.17 Intentionally Omitted.

          4.1.18 Handicapped Access.

          (a) Borrower covenants and agrees that the Property shall at all times comply to the extent
applicable with the requirements of the Americans with Disabilities Act of 1990, the

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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”).

          (b) Notwithstanding any provisions set forth herein or in any other document regarding
Lender’s approval of alterations of the Property, Borrower shall not alter the Property in any
manner which would materially increase Borrower’s responsibilities for compliance with the
applicable Access Laws without the prior written approval of Lender. The foregoing shall apply to
tenant improvements constructed by Borrower or by any of its tenants. Lender may condition any such
approval upon receipt of a certificate of Access Law compliance from an architect, engineer, or
other person acceptable to Lender.

          (c) Borrower covenants and agrees to give prompt notice to Lender of the receipt by Borrower
of any complaints related to violation of any Access Laws and of the commencement of any
proceedings or investigations which relate to compliance with applicable Access Laws.

          4.1.19 Intentionally Omitted.

          4.1.20 Notice of Certain Events. Borrower shall promptly notify Lender of (a) any
Event of Default, together with a detailed statement of the steps being taken to cure such Default
or Event of Default; (b) any notice of default received by Borrower under other obligations
relating to the Property or otherwise material to Borrower’s business which, if determined
adversely, would have a Material Adverse effect on Borrower or the Property; and (c) any threatened
or pending legal, judicial or regulatory proceedings, including any dispute between Borrower and
any Governmental Authority, affecting Borrower or the Property.

          4.1.21 Further Assurances. Borrower shall, at Borrower’s sole cost and expense,
promptly (a) cure any defects in the execution and delivery of the Loan Documents, (b) execute and
deliver, or cause to be executed and delivered, all such other documents, agreements and
instruments as Lender may reasonably request to further evidence and more fully describe the
collateral for the Loan, 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 provided such documents do not
increase Borrower’s monetary obligations or decrease Borrower’s rights hereunder and (c) do all
such further lawful and reasonable acts, conveyances and assurances for the better and more
effectively carrying out of the intents and purposes of this Agreement and the other Loan Documents
as Lender shall reasonably require from time to time, provided such documents do not increase
Borrower’s monetary obligations or decrease Borrower’s rights hereunder. Upon the occurrence and
during the continuation of an Event of Default, Borrower grants Lender an irrevocable power of
attorney coupled with an interest for the purpose of exercising and perfecting any and all rights
and remedies available to Lender under the Loan Documents, at law and in equity, including without
limitation such rights and remedies available to Lender pursuant to Sections 10.2,
10.3, and 10.4.

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          4.1.22 Taxes on Security. Borrower shall pay all taxes, charges, filing, registration
and recording fees, excises and levies payable with respect to the Note or the Liens created or
secured by the Loan Documents, other than income, franchise and doing business taxes imposed on
Lender. If there shall be enacted any law (a) deducting the Loan from the value of the Property for
the purpose of taxation, (b) affecting any Lien on the Property, or (c) 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 Lender, on demand,
all taxes, costs and charges, other than income, franchise or doing business taxes, for which
Lender is or may be liable as a result thereof; however, if such payment would be prohibited by law
or would render the Loan usurious, then instead of collecting such payment, Lender may declare all
amounts owing under the Loan Documents to be immediately due and payable without any prepayment
penalty or fee.

          4.1.23 Stop and Shop Estoppel. On or before May 5, 2006, Borrower shall deliver
evidence that Stop and Shop has commenced paying the unabated annual fixed rent set forth in the
Stop and Shop Third Lease Amendment. If Borrower fails to comply with the provisions of this
Section 4.1.23, then Borrower shall deliver the Additional Collateral to Lender to be held
by Lender as additional security for the Loan to be deposited in an Account and maintained by
Lender pursuant to the Cash Management Agreement. At the request of Lender, Borrower shall agree to
reasonable amendments to the Cash Management Agreement to reflect that the deposit of the
Additional Collateral and provide any and all
other documentation reasonably required to perfect Lender’s security interest in the Additional
Collateral. Any and all income earned on the Additional Collateral shall inure to the benefit of
Borrower.

          Section 4.2 Borrower Negative Covenants.

          Borrower covenants and agrees with Lender that:

          4.2.1 Liens. Subject to Borrower’s right to contest in accordance with the express
terms set forth in this Agreement, Borrower shall not create, incur, assume or suffer to exist any
Lien on any portion of the Property except for Permitted Encumbrances.

          4.2.2 Dissolution. Except as expressly set forth in this Agreement, Borrower shall not
(a) engage in any dissolution, liquidation or consolidation or merger with or into any other
business entity, (b) transfer, lease or sell, in one transaction or any combination of
transactions, all or substantially all of the property or assets of Borrower except to the extent
expressly permitted by the Loan Documents, or (c) cause, permit or suffer any SPC Party to (i)
dissolve, wind up or liquidate or take any action, or omit to take an action, as a result of which
such SPC Party would be dissolved, wound up or liquidated in whole or in part, or (ii) amend,
modify, waive or terminate the certificate of incorporation or bylaws of such SPC Party, in each
case without obtaining the prior consent of Lender.

          4.2.3 Debt Cancellation. Borrower shall not cancel or otherwise forgive or release any
claim or debt (other than termination of Leases in accordance herewith) owed to Borrower by any
Person, except for adequate consideration and in the ordinary course of Borrower’s business.

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          4.2.4 Zoning. Borrower shall not initiate or consent to any zoning reclassification of
any portion of the Property or seek any variance under any existing zoning ordinance or use or
permit the use of any portion of the Property in any manner that could result in such use becoming
a non
conforming use under any zoning ordinance or any other applicable land use law, rule or regulation,
without the prior written consent of Lender, which shall not be unreasonably withheld, conditioned
or delayed.

          4.2.5 No Joint Assessment. Borrower shall not suffer, permit or initiate the joint
assessment of the Property (a) with any other real property constituting a tax lot separate from
the Property, and (b) with any portion of the Property which may be deemed to constitute personal
property, or any other procedure whereby the lien of any taxes which may be levied against such
personal property shall be assessed or levied or charged to the Property.

          4.2.6 Principal Place of Business. Borrower shall not change its principal place of
business from the address set forth on the first page of this Agreement without first giving Lender
thirty (30) days prior notice.

          4.2.7 ERISA.

          (a) Borrower shall not engage in any transaction which would cause any obligation, or action
taken or to be taken, hereunder (or the exercise by Lender of any of its rights under the Note,
this Agreement or the other Loan Documents) to be a non-exempt (under a statutory or administrative
class exemption) prohibited transaction under the Employee Retirement Income Security Act of 1974,
as amended (“ERISA”) or Section 4975 of the Code.

          (b) Borrower shall deliver to Lender such certifications or other evidence from time to time
throughout the term of the Loan, as requested by Lender in its sole discretion, that (i) Borrower
is not an “employee benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I
of ERISA, or a “plan” subject to Section 4975 of the Code, or a “governmental plan” within the
meaning of Section 3(32) of ERISA; (ii) Borrower is not subject to any state statute regulating
investments of, or fiduciary obligations with respect to, governmental plans; and (iii) one or more
of the following circumstances is true:

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

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

          (C) Borrower qualifies as an “operating company” or a “real estate operating company” within
the meaning of 29 C.F.R. §2510.3-101(c) or (e).

          4.2.8 Material Agreements. Borrower shall not, without Lender’s reasonable consent:
(a) enter into, surrender or terminate any Material Agreement or Operating Agreement to which it is
a party (unless the other party thereto is in material default and the termination of such
agreement would be commercially reasonable), (b) increase or consent to the increase of the amount
of any charges under any Material Agreement or Operating Agreement to which it is a

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party, except
as provided therein or on an arms-length basis and
commercially reasonable terms; or (c) otherwise modify, change, supplement, alter or amend, or
waive or release any of its rights and remedies under any Material Agreement or Operating Agreement
to which it is a party in any material respect, except on an arms’-length basis and commercially
reasonable terms.

          4.2.9 Intentionally Deleted.

          4.2.10 Intentionally Omitted.

          V. INSURANCE, CASUALTY AND CONDEMNATION

          Section 5.1 Insurance.

          5.1.1 Insurance Policies.

          (a) Borrower shall obtain and maintain, or cause to be maintained, insurance for Borrower and
the Property providing at least the following coverages:

     (i) comprehensive all risk insurance on the Improvements and the personal property at
the Property (A) in an amount equal to one hundred percent (100%) of the “Full Replacement
Cost,” which for purposes of this Agreement shall mean actual replacement value
(exclusive of costs of excavations, foundations, underground utilities and footings) with
a waiver of depreciation, but the amount shall in no event be less than the outstanding
principal balance of the Loan; (B) containing an agreed amount endorsement with respect to
the Improvements and personal property at the Property waiving all co-insurance
provisions; (C) providing for no deductible in excess of Twenty Five Thousand and No/100
Dollars ($25,000.00) for all such insurance coverage; and (D) containing an “Ordinance or
Law Coverage” or “Enforcement” endorsement if any of the Improvements or the use of
the Property shall at any time constitute legal non-conforming structures or uses. In
addition, Borrower shall obtain: (y) if any portion of the Improvements is currently or at
any time in the future located in a federally designated “special flood hazard area,”
flood hazard insurance in an amount equal to the lesser of (1) the outstanding
principal balance of the Note or (2) the maximum amount of such insurance available under
the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the
National Flood Insurance Reform Act of 1994, as each may be amended or such greater
amount as Lender shall require; and (z) earthquake insurance in amounts and in form and
substance satisfactory to Lender in the event the Property is located in an area with a
high degree of seismic activity, provided that the insurance pursuant to clauses
(y) and (z) hereof shall be on terms consistent with the comprehensive all risk insurance
policy required under this subsection (i).

     (ii) commercial general liability insurance against claims for personal injury,
bodily injury, death or property damage occurring upon, in or about the Property, such
insurance (A) to be on the so-called “occurrence” form with an occurrence limit of not
less than One Million and No/100 Dollars ($1,000,000.00) and an aggregate limit
of not less than Two Million and No/100 Dollars ($2,000,000.00); (B) to continue at not
less than the aforesaid limit until required to be changed by Lender by reason of changed

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economic conditions making such
protection inadequate; and (C) to cover at least the following hazards: (1) premises
and operations; (2) products and completed operations on an “if any” basis; (3)
independent contractors; (4) blanket contractual liability for all legal contracts; and
(5) contractual liability covering the indemnities contained in Article 9 of the Mortgage
to the extent the same is available;

     (iii) business income insurance (A) with loss payable to Lender; (B) covering all
risks required to be covered by the insurance provided for in
subsection (i) above for a
period commencing at the time of loss for such length of time as it takes to repair or
replace with the exercise of due diligence and dispatch; (C) containing an
extended period of indemnity endorsement which provides that after the physical loss to
the Improvements and Personal Property has been repaired, the continued loss of income
will be insured until such income either returns to the same level it was at prior to the
loss, or the expiration of twelve (12) months from the date that the Property is
repaired or replaced and operations are resumed, whichever first occurs, and
notwithstanding that the policy may expire prior to the end of such period; and (D) in an
amount equal to one hundred percent (100%) of the projected gross income from the Property
for a period from the date of loss to a date (assuming total destruction) which is
six (6) months from the date that the Property is repaired or replaced and operations are
resumed. The amount of such business income insurance shall be determined prior to the
date hereof and at least once each year thereafter based on Borrower’s reasonable estimate
of the gross income from the Property for the succeeding twelve (12) month
period. Subject to Section 5.3.2 hereof, all proceeds payable to Lender pursuant to this
subsection shall be held by Lender and shall be applied to the obligations secured by the
Loan Documents from time to time due and payable hereunder and under the Note;
provided, however, that nothing herein contained shall be deemed to
relieve Borrower of its obligations to pay the obligations secured by the Loan Documents
on the respective dates of payment provided for in the Note and the other Loan
Documents except to the extent such amounts are actually paid out of the proceeds of such
business income insurance;

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

     (v) workers’ compensation, subject to the statutory limits of the state in which the
Property is located, and employer’s liability insurance with a limit of at least One
Million and No/100 Dollars ($1,000,000.00) per accident and per disease per employee, and
One Million and No/100 Dollars ($1,000,000.00) for disease aggregate in respect
of any work or operations on or about the Property, or in connection with the Property or
its operation (if applicable);

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

     (vii) umbrella liability insurance in addition to primary coverage in an amount not
less than $10,000,000.00.00 per occurrence on terms consistent with the commercial general
liability insurance policy required under subsection (ii) above and (viii)
below;

     (viii) motor vehicle liability coverage for all owned and non-owned vehicles,
including rented and leased vehicles containing minimum limits per occurrence of One
Million and No/100 Dollars ($1,000,000.00);

     (ix) so-called “dramshop” insurance or other liability insurance required in
connection with the sale of alcoholic beverages, if served at the Property, and;

     (x) If the commercial property and business income insurance policies required under
subsections (i) and (iii) above do not cover perils of terrorism or acts
of terrorism, Borrower shall maintain commercial property and business income insurance
for loss resulting from perils
and acts of terrorism on terms (including amounts) consistent with those required under
subsections (i) and (iii) above; notwithstanding the foregoing, Borrower
shall be required to obtain and maintain terrorism insurance in an amount not less than
the amount of terrorism insurance that is available for an annual premium equal to
two (2) times Borrower’s then current premium for the “all-risk” insurance required under
subsection (i) above (such limitation shall be referred to as the “Terrorism
Cap”) for terrorism insurance that is at least equivalent to the existing terrorism
insurance required under this Section 5.1.1(a)(x); provided,
however, the Terrorism Cap shall not apply if (A) owners and/or operators of
office buildings in the same class as the Property in Massachusetts are generally
obtaining terrorism insurance, (B) lenders financing such office buildings in the
same class as the Property in Massachusetts are generally requiring terrorism insurance as
a condition of financing, or (C) Borrower Principal or any Affiliates of Borrower
Principal or any transferee of Borrower Principal or any of its Affiliates, is obtaining
terrorism insurance on any other properties in Massachusetts which any of the
foregoing Persons own or operate. The claims paying ability rating of the insurer shall be
consistent with the requirements of Section 5.1.2 hereof or, if no insurer of such
claims paying ability rating is then issuing such terrorism insurance, the chosen insurer
shall be the insurer which is offering such terrorism insurance and which has a
claims paying ability rating the closest to that required by Section 5.1.2 hereof.

If perils of terrorism and acts of terrorism or other similar acts or events are
hereafter excluded from Borrower’s comprehensive all risk insurance policy or business
income insurance coverage required under subsections (i) and (iii) above,
Borrower shall obtain an endorsement to such policy, or a separate policy from an
insurance provider which meets the requirements set forth in Section 5.1.2 below
or is otherwise satisfactory to Lender, insuring against all such excluded acts or
events in the amounts required for such coverage under subsections (i) and
(iii) above, or such lesser amount as may be approved by Lender in its sole
discretion. The endorsement or policy shall be in form and

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substance reasonably satisfactory to Lender and shall meet Rating Agency criteria for
securitized loans.

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

          (b) All insurance provided for in Section 5.1.1(a) shall be obtained under valid and
enforceable policies (collectively, the “Policies” or, in the singular, the
“Policy”) and, to the extent not specified above, shall be subject to the approval of
Lender as to deductibles, loss payees and insureds. Not less than fifteen (15) days prior to the
expiration dates of the Policies theretofore furnished to Lender, certificates of insurance
evidencing the Policies accompanied by evidence satisfactory to Lender of payment of the premiums
then due thereunder (the “Insurance Premiums”), shall be delivered by Borrower to Lender.

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

          (d) All Policies of insurance provided for or contemplated by Section 5.1.1(a) shall
be primary coverage and, except for the Policy referenced in Section 5.1.1(a)(v), shall
name Borrower as the insured and Lender and its successors and/or assigns as the additional
insured, as its interests may appear, and in the case of property damage, boiler and machinery,
flood, earthquake and terrorism insurance, shall contain a so-called New York standard non
contributing mortgagee clause in favor of Lender providing that the loss thereunder shall be
payable to Lender. Borrower shall not procure or permit any of its constituent entities to procure
any other insurance coverage which would be on the same level of payment as the Policies or would
adversely impact in any way the ability of Lender or Borrower to collect any proceeds under any of
the Policies.

          (e) All Policies of insurance provided for in Section 5.1.1(a), except for the
Policies referenced in Sections 5.1.1(a)(v) and (a)(viii), shall contain clauses or
endorsements to the effect that:

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

     (ii) the Policy shall not be canceled or permitted to lapse without at least thirty
(30) days’ written notice to Lender and any other party named therein as an additional
insured and, shall not be materially changed (other than to increase the coverage provided
thereby) without such a thirty (30) day notice; and

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

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

          (g) In the event of foreclosure of the Mortgage or other transfer of title to the Property in
extinguishment in whole or in part of the Debt, all right, title and interest of Borrower in and to
the Policies that are not blanket Policies then in force concerning the Property and all proceeds
payable thereunder shall upon transfer of title to the Property vest in the purchaser at such
foreclosure or Lender or other transferee in the event of such other transfer of title.

          5.1.2 Insurance Company. All Policies, excluding “flood hazard” and “earthquake” Policies
provided for in Section 5.1.1(a)(i) hereof, shall be issued by financially sound and responsible
insurance companies authorized to do business in the state in which the Property is located and
having a claims paying ability rating of “A” or better by S&P and the equivalent rating by one of
the other Rating Agencies.

          Section 5.2 Casualty and Condemnation.

          5.2.1 Casualty. If the Property shall sustain a Casualty, Borrower shall give prompt
notice of such Casualty to Lender and shall promptly commence and diligently prosecute to
completion the repair and restoration of the Property as nearly as possible to the condition the
Property was in immediately prior to such Casualty (a “Restoration”) and otherwise in
accordance with Section 5.3, it being understood, however, that Borrower shall not be obligated to
restore the Property to the precise condition of the Property prior to such Casualty provided the
Property is restored, to the extent practicable, to be of at least equal value and of substantially
the same character as prior to the Casualty. Borrower shall pay all costs of such Restoration
whether or not such costs are covered by insurance. Lender may, but shall not be obligated to, make
proof of loss if not made promptly by Borrower. In the event of a Casualty where the loss does not
exceed the Restoration Threshold, Borrower may settle and adjust such
claim; provided that (a) no
Event of Default has occurred and is continuing and (b) such adjustment is carried out in a
commercially reasonable and timely manner. In the event of a Casualty
where the loss exceeds the Restoration Threshold or if an Event of Default then exists, Borrower
may settle and adjust such claim only with the prior written consent of Lender (which consent shall
not be unreasonably withheld or delayed) and Lender shall have the opportunity to participate, at
Borrower’s cost, in any such adjustments. Notwithstanding any Casualty, Borrower shall continue to
pay the Debt at the time and in the manner provided for its payment in the Note and in this
Agreement.

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          5.2.2 Condemnation. Borrower shall give Lender prompt notice of any actual or
threatened Condemnation by any Governmental Authority of all or any part of the Property and shall
deliver to Lender a copy of any and all papers served in connection with such proceedings. Borrower
may settle and compromise the Condemnation only with prior written the consent of Lender (which
consent shall not be unreasonably withheld or delayed) and Lender shall have the opportunity to
participate, at Borrower’s cost, in any litigation and settlement discussions in respect thereof
and Borrower shall from time to time deliver to Lender all instruments requested by Lender to
permit such participation. Borrower shall, at its expense, diligently prosecute any such
proceedings, and shall consult with Lender, its attorneys and experts, and cooperate with them in
the carrying on or defense of any such proceedings following an Event of Default that remains
uncured. Lender is hereby irrevocably appointed as Borrower’s attorney-in-fact, coupled with an
interest, with exclusive power to collect, receive and retain any Award and to make any compromise
or settlement in connection with any such Condemnation. Notwithstanding any Condemnation, Borrower
shall continue to pay the Debt at the time and in the manner provided for its payment in the Note
and in this Agreement. Lender shall not be limited to the interest paid on the Award by any
Governmental Authority but shall be entitled to receive out of the Award interest at the rate or
rates provided herein or in the Note. If the Property or any portion thereof is taken by any
Governmental Authority, Borrower shall promptly commence and diligently prosecute the Restoration
of the Property and otherwise comply with the provisions of
Section 5.3. If the Property is sold,
through foreclosure or otherwise, prior to the receipt by Lender of the Award, Lender shall have
the right, whether or not a deficiency judgment on the Note shall have been sought, recovered or
denied, to receive the Award, or a portion thereof sufficient to pay the Debt.

          5.2.3
Casualty Proceeds. Notwithstanding the last sentence of Section 5.1.1(a)(iii)
and provided no Event of Default then exists hereunder, proceeds received by Lender on account of
the business interruption insurance specified in
Section 5.1.1(a)(iii) above with respect to any
Casualty shall be deposited by Lender directly into the Lockbox Account (as defined in the Cash
Management Agreement) but (a) only to the extent it reflects a replacement for lost Rents that
would have been due under Leases existing on the date of such Casualty, and (b) only to the extent
necessary to fully make the disbursements required by Sections 3.3(a)(i) through (vi) of the Cash
Management Agreement. All other such proceeds shall be held by Lender and disbursed in accordance
with Section 5.3 hereof.

          Section 5.3 Delivery of Net Proceeds.

          5.3.1 Minor Casualty or Condemnation. If a Casualty or Condemnation has occurred to
the Property and the Net Proceeds shall be less than the Restoration Threshold and the costs of
completing the Restoration shall be less than the Restoration Threshold, and provided (a) no Event
of Default shall have occurred and remain uncured and (b) the Casualty or Condemnation shall have
occurred prior to the Maturity Date, the Net Proceeds will be promptly disbursed by Lender to
Borrower. Promptly after receipt of the Net Proceeds, Borrower shall commence and satisfactorily
complete with due diligence the Restoration in accordance with the terms of this Agreement. If any
Net Proceeds are received by Borrower and may be retained by Borrower pursuant to the terms hereof,
such Net Proceeds shall, until completion of the Restoration, be held in trust for Lender and shall
be segregated from other funds of Borrower to be used to pay for the cost of Restoration in
accordance with the terms hereof.

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          5.3.2
Major Casualty or Condemnation. (a) If a Casualty or Condemnation has occurred
to the Property and the Net Proceeds are equal to or greater than the Restoration Threshold or the
costs of completing the Restoration is equal to or greater than the Restoration Threshold, Lender
shall make the Net Proceeds available for the Restoration, provided that each of the following
conditions are met:

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

     (ii) (A) in the event the Net Proceeds are insurance proceeds, less than thirty-five
percent (35%) of the total floor area of the Improvements at the Property has been
damaged, destroyed or rendered unusable as a result of such Casualty or (B) in the event
the Net Proceeds are an Award, less than fifteen percent (15%) of the land
constituting the Property is taken, and such land is located along the perimeter or
periphery of the Property, and no portion of the Improvements is the subject of the
Condemnation;

     (iii) Leases requiring payment of annual rent equal to sixty-five percent (65%) of
the Gross Income from Operations received by Borrower during the twelve (12) month period
immediately preceding the Casualty or Condemnation and all Major Leases shall remain in
full force and effect during and after the completion of the Restoration without
abatement of rent beyond the time required for Restoration, notwithstanding the occurrence
of such Casualty or Condemnation;

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

     (v) Lender shall be satisfied that any operating deficits and all payments of
interest under the Note will be paid during the period required for Restoration from (A)
the Net Proceeds, or (B) other funds of Borrower;

     (vi) Lender shall be satisfied that the Restoration will be completed on or before
the earliest to occur of (A) the date six (6) months prior to the Maturity Date, (B) the
earliest date required for such completion under the terms of any Major Lease, (C) such
time as may be required under applicable Legal Requirements in order to repair
and restore the Property to the condition it was in immediately prior to such Casualty or
to as nearly as possible the condition it was in immediately prior to such Condemnation,
as applicable or (D) the expiration of the insurance coverage referred to in Section
5.1.1(a)(iii);

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

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

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

     (x) all Operating Agreements shall remain in full force and effect; and

     (xi) After giving effect to such Restoration, the Debt Service Coverage Ratio for the
Property shall be equal to the greater of (i) the Debt Service Coverage Ratio for the
twelve (12) full calendar months immediately preceding the Closing Date, and (ii) the Debt
Service Coverage Ratio for the Property for the twelve (12) full calendar months
immediately preceding the Casualty or Condemnation of the Property.

          (b) The Net Proceeds shall be paid directly to Lender and held by Lender in an
interest-bearing account, which interest shall accrue for Borrower’s benefit, and, until disbursed
in accordance with the provisions of this Section 5.3.2, shall constitute additional
security for the Debt. The Net Proceeds (including all interest earned thereon) shall be disbursed
by Lender to, or as directed by, Borrower from time to time during the course of the Restoration,
upon receipt of evidence reasonably satisfactory to Lender that (i) all requirements set forth in
Section 5.3.2(a) have been satisfied, (ii) all materials installed and work and labor performed
(except to the extent that they are to be paid for out of the requested disbursement) in connection
with the Restoration have been paid for in full, and (iii) there exist no notices of pendency, stop
orders, mechanic’s or materialman’s liens or notices of intention to file same, or any other liens
or encumbrances of any nature whatsoever on the Property arising out of the Restoration which have
not either been fully bonded to the satisfaction of Lender and discharged of record or in the
alternative fully insured to the satisfaction of Lender by the title company issuing the Title
Insurance Policy.

          (c) All plans and specifications required in connection with the Restoration shall be subject
to prior reasonable approval of Lender and an independent architect reasonably selected by Lender
(the “Casualty Consultant”). The plans and specifications shall require that the
Restoration be completed in a first-class workmanlike manner at least equivalent to the quality and
character of the original work in the Improvements (provided, however, that in the
case of a partial Condemnation, the Restoration shall be done to the extent reasonably practicable
after taking into account the consequences of such partial Condemnation), so that upon completion
thereof, the Property shall be at least equal in value and general utility to the Property prior to
the damage or destruction; it being understood, however, that Borrower shall not be obligated to
restore the Property to the precise condition of the Property prior to such Casualty provided the
Property is restored, to the extent practicable, to be of at least equal value and of substantially
the same character as prior to the Casualty. Borrower shall restore all Improvements such that when
they are fully restored and/or repaired, such Improvements and their contemplated use fully comply
with all applicable material Legal Requirements. The identity of the contractors, subcontractors
and materialmen engaged in the Restoration, as well as the contracts under which they have been
engaged, shall be subject to reasonable approval by Lender and the Casualty Consultant. All costs
and expenses incurred by Lender in connection with recovering, holding and advancing the Net
Proceeds for the Restoration including, without limitation, reasonable
attorneys’ fees and disbursements and the Casualty Consultant’s fees and disbursements, shall be
paid by Borrower.

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          (d) In no event shall Lender be obligated to make disbursements of the Net Proceeds in excess
of an amount equal to the costs actually incurred from time to time for work in place as part of
the Restoration, as certified by the Casualty Consultant, less the Casualty Retainage. The term
“Casualty Retainage” shall mean, as to each contractor, subcontractor or materialman
engaged in the Restoration, an amount equal to ten percent (10%) of the costs actually incurred for
work in place as part of the Restoration, as certified by the Casualty Consultant, until the
Restoration has been completed. The Casualty Retainage shall in no event, and notwithstanding
anything to the contrary set forth above in this Section 5.3.2(d), be less than the amount
actually held back by Borrower from contractors, subcontractors and materialmen engaged in the
Restoration. The Casualty Retainage shall not be released until the Casualty Consultant certifies
to Lender that the Restoration has been completed in accordance with the provisions of this
Section 5.3.2(d) and that all approvals necessary for the re-occupancy and use of the
Property have been obtained from all appropriate Governmental Authorities, and Lender receives
evidence satisfactory to Lender that the costs of the Restoration have been paid in full or will be
paid in full out of the Casualty Retainage; provided, however, that Lender will
release the portion of the Casualty Retainage being held with respect to any contractor,
subcontractor or materialman engaged in the Restoration as of the date upon which the Casualty
Consultant certifies to Lender that the contractor, subcontractor or materialman has satisfactorily
completed all work and has supplied all materials in accordance with the provisions of the
contractor’s, subcontractor’s or materialman’s contract, the contractor, subcontractor or
materialman delivers the lien waivers and evidence of payment in full of all sums due to the
contractor, subcontractor or materialman as may be reasonably requested by Lender or by the title
company issuing the Title Insurance Policy, and Lender receives an endorsement to the Title
Insurance Policy insuring the continued priority of the lien of the Mortgage and evidence of
payment of any premium payable for such endorsement. If required by Lender, the release of any such
portion of the Casualty Retainage shall be approved by the surety company, if any, which has issued
a payment or performance bond with respect to the contractor, subcontractor or materialman.

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

          (f) If at any time the Net Proceeds or the undisbursed balance thereof shall not, in the
opinion of Lender in consultation with the Casualty Consultant, be sufficient to pay in full the
balance of the costs which are estimated by the Casualty Consultant to be incurred in connection
with the completion of the Restoration, Borrower shall deposit the deficiency (the “Net
Proceeds Deficiency”) with Lender before any further disbursement of the Net Proceeds shall be
made. The Net Proceeds Deficiency deposited with Lender shall be held by Lender and shall be
disbursed for costs actually incurred in connection with the Restoration on the same conditions
applicable to the disbursement of the Net Proceeds, and until so disbursed pursuant to this
Section 5.3.2 shall constitute additional security for the Debt.

          (g) The excess, if any, of the Net Proceeds and the remaining balance, if any, of the Net
Proceeds Deficiency deposited with Lender after the Casualty Consultant certifies to Lender that
the Restoration has been completed in accordance with the provisions of this Section 5.3.2,
and the receipt by Lender of evidence satisfactory to Lender that all costs incurred in connection
with the Restoration have been paid in full, shall be remitted by Lender to Borrower,
provided no Event of Default shall have occurred and shall be continuing under any of

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the
Loan Documents; provided, however, the amount of such excess returned to Borrower
in the case of a Condemnation shall not exceed the amount of Net Proceeds Deficiency deposited by
Borrower with the balance being applied to the Debt in the manner provided for in subsection
5.3.2(h).

          (h) All Net Proceeds not required (i) to be made available for the Restoration or (ii) to be
returned to Borrower as excess Net Proceeds pursuant to Section 5.3.2(g) may be retained
and applied by Lender toward the payment of the Debt, whether or not then due and payable, in such
order, priority and proportions as Lender in its sole discretion shall deem proper, or, at the
discretion of Lender, the same may be paid, either in whole or in part, to Borrower for such
purposes as Lender shall designate, without prepayment premium or other penalty.

          VI. RESERVE FUNDS

          Section 6.1 Required Repair Funds.

          6.1.1 Deposit of Required Repair Funds. Borrower shall perform the repairs at the
Property as set forth on Schedule II hereto (such repairs hereinafter referred to as “Required
Repairs”) and shall complete each of the Required Repairs on or before the respective deadline
for each repair as set forth on Schedule II. On the Closing Date, Borrower shall deposit with
Lender the
amount that is one hundred and twenty-five percent (125%) of the cost to perform such Required
Repairs as set forth on Schedule II hereto to perform the Required Repairs. Amounts deposited
pursuant to this Section 6.1.1 are referred to herein as the “Required Repair
Funds.”

          6.1.2 Release of Required Repair Funds. With respect to any item of Required Repairs
which has been completed, Lender shall disburse, or cause to be disbursed, to Borrower the Required
Repair Funds upon satisfaction by Borrower of each of the following conditions: (a) Borrower shall
submit a request for payment to Lender at least ten (10) days prior to the date on which Borrower
requests such payment be made and specifies the Required Repairs to be paid, (b) on the date such
request is received by Lender and on the date such payment is to be made, no Event of Default shall
exist and remain uncured, (c) Lender shall have received a certificate from Borrower (i) stating
that all Required Repairs to be funded by the requested disbursement have been completed in a good
and workmanlike manner and in accordance with all applicable Legal Requirements, such certificate
to be accompanied by a copy of any license, permit or other approval by any Governmental Authority,
if any, required in connection with the Required Repairs, (ii) identifying each Person that
supplied materials or labor in connection with the Required Repairs to be funded by the requested
disbursement, and (iii) stating that each such Person has been paid in full or will be paid in full
upon such disbursement, such certificate to be accompanied by lien waivers or other evidence of
payment satisfactory to Lender, (d) at Lender’s option, a title search for the Property indicating
that the Property is free from all liens, claims and other encumbrances not previously approved by
Lender, (e) at Lender’s option, if the cost of the Required Repairs exceeds Twenty-Five Thousand
and No/100 Dollars ($25,000.00), Lender shall have received a report satisfactory to Lender in its
reasonable discretion from an architect or engineer approved by Lender in respect of such architect
or engineer’s inspection of the required repairs, and (f) Lender shall have received such other
evidence as Lender shall reasonably request that the Required Repairs to be

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funded by the requested
disbursement have been completed and are paid for or will be paid upon such disbursement to
Borrower. Lender shall not be required to disburse Required Repair Funds more frequently than once
each calendar month, and the requested disbursement must be at least in an amount equal to the
Minimum Disbursement Amount (or a lesser amount if the total Required Repair Funds is less than the
Minimum Disbursement Amount, in which case only one disbursement of the amount remaining in the
account shall be made). Lender shall have the right, but not the obligation, to make any of the
Required Repairs in the event Borrower fails to perform same in accordance with Section
6.1.1.

          Section 6.2 Tax Funds.

          6.2.1 Deposits of Tax Funds. On the Closing Date, Borrower shall deposit with Lender
the amount of Twenty Nine Thousand Eight Hundred Forty Five and 90/100 Dollars ($29,845.90) and
there shall be deposited to the appropriate Accounts on each Monthly Payment Date an amount equal
to one-twelfth of the Taxes that Lender estimates will be payable during the next ensuing twelve (12)
months in order to accumulate sufficient funds to pay all such Taxes at least ten (10) days prior
to their respective due dates. Amounts deposited pursuant to this
Section 6.2.1 are referred to
herein as the “Tax Funds.” If at any time Lender reasonably determines that the Tax Funds will not
be sufficient to pay the Taxes, Lender shall notify Borrower of such determination and the monthly
deposits for Taxes shall be increased by the amount that Lender estimates is sufficient to make up
the deficiency at least ten (10) days prior to the respective delinquent dates for the Taxes;
provided that if Borrower receives notice of any deficiency after the date that is ten (10) days
prior to the date that Taxes are due, Borrower will deposit such amount within two (2) Business
Days after its receipt of such notice.

          6.2.2 Release of Tax Funds. Unless an Event of Default has occurred and is continuing,
Lender shall apply the Tax Funds to payments of Taxes. In making any payment relating to Taxes,
Lender may do so according to any bill, statement or estimate procured from the appropriate public
office (with respect to Taxes) without inquiry into the accuracy of such bill, statement or
estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim
thereof. If the amount of the Tax Funds shall exceed the amounts due for Taxes, Lender shall, in
its sole discretion, return any excess to Borrower or credit such excess against future payments to
be made to the Tax Funds. Any Tax Funds remaining after the Debt has been paid in full shall be
returned to Borrower.

          Section 6.3 Insurance Funds.

          6.3.1 Deposits of Insurance Funds. On the Closing Date, Borrower shall deposit with
Lender the amount of Five Thousand Seven Hundred Thirty and No/100 Dollars ($5,730.00) and there
shall be deposited to the appropriate Accounts on each Monthly Payment Date an amount equal to
one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the
coverage afforded by the Policies upon the expiration thereof in order to accumulate sufficient
funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the
Policies. Amounts deposited pursuant to this Section 6.3.1 are referred to herein as the
“Insurance Funds”. If at any time Lender reasonably determines that the Insurance Funds
will not be sufficient to pay the Insurance Premiums, Lender shall notify Borrower of such
determination and the monthly deposits for Insurance Premiums shall be

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increased by the amount that
Lender estimates is sufficient to make up the deficiency at least thirty (30) days prior to
expiration of the Policies.

          6.3.2 Release of Insurance Funds. Unless an Event of Default has occurred and is
continuing, Lender shall apply the Insurance Funds to payment of Insurance Premiums. In making any
payment relating to Insurance Premiums, Lender may do so according to any bill, statement or
estimate
procured from the insurer or its agent, without inquiry into the accuracy of such bill, statement
or estimate. If the amount of the Insurance Funds shall exceed the amounts due for Insurance
Premiums, Lender shall return any excess to Borrower. Any Insurance Funds remaining after the Debt
has been paid in full shall be returned to Borrower.

          Section 6.4 Capital Expenditure Funds.

          6.4.1 Deposits of Capital Expenditure Funds. On the Closing Date, Borrower shall
deposit with Lender the amount of Two Thousand Five Hundred Fourteen and 16/100 Dollars ($2,514.16)
and there shall be deposited to the appropriate Accounts on each Monthly Payment Date, an amount
equal to Two Thousand Five Hundred Fourteen and 16/100 Dollars ($2,514.16) for annual Capital
Expenditures approved by Lender, which approval shall not be unreasonably withheld or delayed;
provided, however, Borrower shall have no obligation to make deposits under this
Section 6.4.1 during any month in which the amount then on deposit in the appropriate
Account is greater than or equal to $250,000. Amounts deposited pursuant to this Section
6.4.1 are referred to herein as the “Capital Expenditure Funds.” Lender may reassess
its estimate of the amount necessary for capital expenditures from time to time and, and may
require Borrower to increase the monthly deposits required pursuant to this Section 6.4.1 upon
thirty (30) days notice to Borrower if Lender determines in its reasonable discretion that an
increase is necessary to maintain proper operation of the Property.

          6.4.2 Release of Capital Expenditure Funds.

          (a) Lender shall disburse, or cause to be disbursed, Capital Expenditure Funds only for
Capital Expenditures.

          (b) Lender shall disburse, or cause to be disbursed, to Borrower the Capital Expenditure Funds
upon satisfaction by Borrower of each of the following conditions: (i) Borrower shall submit a
request for payment to Lender at least ten (10) days prior to the date on which Borrower requests
such payment be made and specifies the Capital Expenditures to be paid, (ii) on the date such
request is received by Lender and on the date such payment is to be made, no Event of Default shall
exist and remain uncured, (iii) Lender shall have received a certificate from Borrower (A) stating
that the items to be funded by the requested disbursement are Capital Expenditures, (B) stating
that all Capital Expenditures at the Property to be funded by the requested disbursement have been
completed in a good and workmanlike manner and in accordance with all applicable Legal
Requirements, such certificate to be accompanied by a copy of any license, permit or other approval
required by any Governmental Authority, if any, in
connection with the Capital Expenditures, (C) identifying each Person that supplied materials or
labor in connection with the Capital Expenditures to be funded by the requested disbursement, and
(D) stating that each such Person has been paid in full or will be paid in full upon such
disbursement, such certificate to be accompanied by lien waivers or other evidence of payment

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satisfactory to Lender, (iv) at Lender’s option, a title search for the Property indicating that
the Property is free from all Liens, claims and other encumbrances not previously approved by
Lender, (v) at Lender’s option, if the cost of any individual Capital Expenditure exceeds Twenty
Five Thousand and No/100 Dollars ($25,000.00), Lender shall have received a report satisfactory to
Lender in its reasonable discretion from an architect or engineer approved by Lender in respect of
such architect or engineer’s inspection of the required repairs, and (vi) Lender shall have
received such other evidence as Lender shall reasonably request that the Capital Expenditures at
the Property to be funded by the requested disbursement have been completed and are paid for or
will be paid upon such disbursement to Borrower. Lender shall not be required to disburse Capital
Expenditure Funds more frequently than once each calendar month, and each disbursement must be at
least an amount greater than the Minimum Disbursement Amount (or a lesser amount if the total
amount of Capital Expenditure Funds is less than the Minimum Disbursement Amount, in which case
only one disbursement of the amount remaining in the account shall be made).

          (c) Nothing in this Section 6.4.2 shall (i) make Lender responsible for making or completing
the Capital Expenditures Work; (ii) require Lender to expend funds in addition to the Capital
Expenditure Funds to complete any Capital Expenditures Work; (iii) obligate Lender to proceed with
the Capital Expenditures Work; or (iv) obligate Lender to demand from Borrower additional sums to
complete any Capital Expenditures Work.

          (d) Borrower shall permit Lender and Lender’s agents and representatives (including, without
limitation, Lender’s engineer, architect, or inspector) or third parties to enter onto the Property
during normal business hours (subject to the rights of Tenants under their Leases) to inspect the
progress of any Capital Expenditures Work and all materials being used in connection therewith and
to examine all plans and shop drawings relating to such Capital Expenditures Work. Any such
inspection shall be conducted in a manner designed to minimize interference with Tenants or
Borrower’s operation of the Property. Borrower shall cause all contractors and subcontractors to
cooperate with Lender or Lender’s representatives or such other Persons described above in
connection with inspections described in this Section 6.4.2(d).

          Section 6.5 Rollover Funds.

          6.5.1 Deposits of Rollover Funds. On the Closing Date, Borrower shall deposit with
Lender the amount of Thirty Two Thousand and No/00 Dollars ($32,000.00) and there shall be
deposited to the appropriate Account on each Monthly Payment Date the sum of Thirty Two Thousand
and No/00 Dollars ($32,000.00), for tenant improvements and leasing commissions, lease cancellation
fees, buy-out fees or a similar cost that may be incurred following the date hereof;
provided, however, Borrower shall have no obligation to make deposits under this
Section 6.5.1 during any month in which the amount then on deposit in the appropriate
Account is greater than or equal to $500,000. Amounts deposited pursuant to this Section
6.5.1 are referred to herein as the “Rollover Funds.”

          6.5.2 Release of Rollover Funds. Lender shall disburse, or cause to be disbursed, to
Borrower the Rollover Funds upon satisfaction by Borrower of each of the following conditions: (a)
Borrower shall submit a request for payment to Lender at least ten (10) days prior to the date on
which Borrower requests such payment be made and specifies the tenant

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improvement costs and leasing
commissions to be paid, (b) on the date such request is received by Lender and on the date such
payment is to be made, no Event of Default shall exist and remain uncured, (c) subject to
Section 4.1.9 hereof, Lender shall have reviewed and approved the Lease in respect of which
Borrower is obligated to pay or reimburse certain tenant improvement costs and leasing commissions
(to the extent approval is required pursuant to Section 4.1.9 hereof), (d) Lender shall
have received and approved a budget for tenant improvement costs and a schedule of leasing
commissions payments and the requested disbursement will be used to pay all or a portion of such
costs and payments, (e) Lender shall have received a certificate from Borrower (i) stating that all
tenant improvements at the Property to be funded by the requested disbursement have been completed
in good and workmanlike manner and in accordance with all applicable federal, state and local laws,
rules and regulations, such certificate to be accompanied by a copy of any license, permit or other
approval by any Governmental Authority required in connection with the Capital Expenditures, (ii)
identifying each Person that supplied materials or labor in connection with the tenant improvements
to be funded by the requested disbursement, and (iii) stating that each such Person has been paid
in full or will be paid in full upon such disbursement, such certificate to be accompanied by lien
waivers or other evidence of payment satisfactory to Lender, (f) at Lender’s option, a title search
for the Property indicating that the Property is free from all Liens, claims and other encumbrances
not previously approved by Lender, (g) Lender shall have received an estoppel certificate from the
applicable tenant stating that (i) all required work is complete and (ii) such tenant is in
occupancy and paying full unabated rent or has taken possession of the demised premises, and (h)
Lender shall have received such other evidence as Lender shall reasonably request that the tenant
improvements at the Property to be funded by the requested disbursement have been completed and are
paid for or will be paid upon such disbursement to Borrower. Lender shall not be required to
disburse Rollover Funds more frequently than once each calendar month, and each disbursement must
be in an amount greater than the Minimum Disbursement Amount (or a lesser amount if the total
amount of Rollover Funds is less than the Minimum Disbursement Amount, in which case only one
disbursement of the amount remaining in the account shall be made).

          Section 6.6 Intentionally Deleted.

          Section 6.7 Security Interest in Reserve Funds.

          6.7.1 Grant of Security Interest. Borrower hereby pledges to Lender, and grants to
Lender a security interest in, any and all monies now or hereafter deposited in the Reserve Funds
as additional security for the payment of the Loan. The Reserve Funds shall be held in Lender’s
name and may be commingled with Lender’s own funds at financial institutions selected by Lender in
its sole discretion. Upon the occurrence of an Event of Default, Lender may apply any sums then
present in the Reserve Funds to the payment of the Loan in any order in its sole discretion. Until
expended or applied as above provided, the Reserve Funds shall constitute additional security for
the Loan. Lender shall have no obligation to release any of the Reserve Funds while any Event of
Default or Default then exists.

          6.7.2 Interest on Reserve Funds. All interest or income earned on any and all funds on
deposit in any of the Reserve Funds shall be accumulated for the benefit of Borrower.

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          6.7.3 Prohibition Against Further Encumbrance. Borrower shall not, without the prior
consent of Lender, further pledge, assign or grant any security interest in the Reserve Funds or
permit any lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1
Financing Statements, except those naming Lender as the secured party, to be filed with respect
thereto.

          VII.
PROPERTY MANAGEMENT SECTION

          Section 7.1 The Management Agreement.

          Borrower shall cause Manager to manage the Property in accordance with the Management
Agreement. Borrower shall (a) diligently perform and observe all of the terms, covenants and
conditions of the Management Agreement on the part of Borrower to be performed and observed, (b)
promptly notify Lender of any notice to Borrower of any default that has occurred and is continuing
beyond expiration of applicable cure periods by Borrower in the performance or observance of any of
the terms, covenants or conditions of the Management Agreement on the part of Borrower to be
performed and observed, and (c) promptly deliver to Lender a copy of each financial statement,
business plan, capital expenditures plan, report and estimate received by it under the Management
Agreement. If Borrower
shall default beyond expiration of applicable cure periods in the performance or observance of any
material term, covenant or condition of the Management Agreement on the part of Borrower to be
performed or observed, then, without limiting Lender’s other rights or remedies under this
Agreement or the other Loan Documents, and without waiving or releasing Borrower from any of its
obligations hereunder or under the Management Agreement, Lender shall have the right, but shall be
under no obligation, to pay any sums and to perform any act as may be appropriate to cause all the
material terms, covenants and conditions of the Management Agreement on the part of Borrower to be
performed or observed.

          Section 7.2 Prohibition Against Termination or Modification.

          Borrower shall not surrender, terminate, cancel, modify, renew, amend, or extend the
Management Agreement, or enter into any other agreement relating to the management or operation of
the Property with Manager or any other Person, or consent to the assignment by the Manager of its
interest under the Management Agreement, in each case without the express written consent of
Lender, which consent shall not be unreasonably withheld;
provided, however, with respect to a new
manager such consent may be conditioned upon Borrower delivering a Rating Agency Confirmation as to
such new manager and management agreement and, if such new manager is an Affiliate of Borrower,
upon delivery of a non-consolidation opinion acceptable to the Rating Agencies. If at any time
Lender consents to the appointment of a new manager, such new manager and Borrower shall, as a
condition of Lender’s consent, execute a subordination of management agreement in the form then
used by Lender. Notwithstanding the foregoing, Borrower shall have the right to terminate the
Management Agreement and enter into a new management agreement upon terms reasonably acceptable to
Lender with the Approved Property Manager; provided,
however, Borrower shall (i) pay all of
Lender’s expenses in connection therewith, and (ii) enter into an Assignment of Management
Agreement with Lender similar to that which Lender and Manager have entered into as of the date
hereof.

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          Section 7.3 Replacement of Manager.

          Lender shall have the right to require Borrower to replace the Manager with a Person which is
not an Affiliate of, but is chosen by, Borrower and approved by Lender upon the occurrence of any
one or more of the following events: (a) at any time following the occurrence of an Event of
Default, (b) if Manager shall be in default under the Management Agreement beyond any applicable
notice and cure period and/or (c) if Manager becomes insolvent or is adjudicated bankrupt or if any
petition for bankruptcy shall be filed against or consented to by Manager.

          VIII. TRANSFERS

          Section 8.1 Prohibited Transfer or Encumbrance of Property.

          (a) Borrower shall not cause or permit a Sale or Pledge of the Property or any part thereof or
any legal or beneficial interest therein nor permit a Sale or Pledge of an interest in any
Restricted Party (in each case, a “Prohibited Transfer”), other than pursuant to Leases of
space in the Improvements to Tenants in accordance with the provisions of Section 4.1.9,
without the prior written consent of Lender.

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

          (c) Notwithstanding the provisions of Section 8.1(b), the following transfers shall
not be deemed to be a Prohibited Transfer: (i) a transfer by devise or descent or by operation of
law upon the death of a member, partner or shareholder of a Restricted Party; (ii) the Sale or
Pledge, in one or a series of transactions, of not more than forty-nine percent (49%) of the stock,
limited partnership interests or non-managing membership interests (as the case may be) in a
Restricted Party; provided, however, no such transfers shall result in a change in
Control in the Restricted Party or change in control of the Property, and as a condition to each

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such transfer, Lender shall receive not less than twenty (20) days prior written notice of such
proposed transfer, (iii) the sale, transfer, cancellation or issuance of stock or other securities
of Cedar Shopping Centers, Inc., a Maryland corporation, provided such stock or other securities
are listed on the New York Stock Exchange or such other nationally recognized stock
exchange, (iv) transfers of direct or indirect membership interests in Borrower between any then
existing I&G Fund to another I&G Fund, provided that (A) Borrower shall maintain its status
as a single purpose, bankruptcy remote entity under criteria established by the Rating Agencies,
(B) if after giving effect to such transfer and all prior transfers, more than forty-nine percent
(49%) in the aggregate of direct or indirect interests in Borrower are owned by any Person and its
Affiliates that owned less than a forty nine percent (49%) direct or indirect interest in Borrower
as of the Closing Date, Lender shall receive a non consolidation opinion acceptable to Lender and
the Rating Agencies, (v) from and after a transfer pursuant to Sections 8.2.2(a) or (b), transfers
amongst the then existing members of Cedar-Franklin Village 2 LLC of their direct membership
interests in Cedar-Franklin Village 2 LLC, provided that (A) Borrower shall maintain its
status as a single purpose, bankruptcy remote entity under criteria established by the Rating
Agencies, (B) if after giving effect to such transfer and all prior transfers, more than forty-nine
percent (49%) in the aggregate of direct or indirect interests in Borrower are owned by any Person
and its Affiliates that owned less than a forty nine percent (49%) direct or indirect interest in
Borrower as of the Closing Date, Lender shall receive a non consolidation opinion acceptable to
Lender and the Rating Agencies and (vi) transfers of interests in the I&G Funds by investors in
such I&G Funds.

          (d) Lender reserves the right to condition the consent to a Prohibited Transfer requested
hereunder upon (a) a modification of the terms hereof and on assumption of the Note and the other
Loan Documents as so modified by the proposed Prohibited Transfer, (b) receipt of payment of a
transfer fee equal to 0.5% of the outstanding principal balance of the Loan and all of Lender’s
expenses actually incurred in connection with such Prohibited Transfer, (c) receipt of Rating
Agency Confirmation with respect to the transfer, (d) the proposed transferee’s continued
compliance with the covenants set forth in this Agreement (including, without limitation, the
covenants in Section 3.1.24) and the other Loan Documents, (e) a new manager for the
Property and a new management agreement satisfactory to Lender, (f) a new guaranty(ies) and
environmental indemnity, substantially in the form of the Guaranty, Supplemental Guaranty, and
Environmental Indemnity delivered contemporaneously with this Agreement, from guarantor(s) and
indemnitor(s) satisfactory to Lender, and (g) the satisfaction of such other conditions and/or
legal opinions as Lender shall determine in its sole discretion to be in the interest of Lender.
All expenses incurred by Lender shall be payable by Borrower whether or not Lender consents to the
Prohibited Transfer. Lender shall not be required to demonstrate any actual impairment of its
security or any increased risk of default hereunder in order to declare the Debt immediately due
and payable upon a Prohibited Transfer made without Lender’s consent. This provision shall apply to
each and every Prohibited Transfer, whether or not Lender has consented to any previous Prohibited
Transfer. Notwithstanding anything to the contrary contained in this Section 8.1(d), in the
event a substantive non-consolidation opinion was delivered to Lender and the Rating Agencies in
connection with the closing of the Loan, and if any Prohibited Transfer results in any Person and
its Affiliates owning in excess of forty-nine percent (49%) of the ownership interests in a
Restricted Party, Borrower shall, prior to such transfer, and in addition to any other requirement
for Lender consent contained herein, deliver a revised substantive

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non-consolidation opinion to
Lender reflecting such Prohibited Transfer,
which opinion shall be in form, scope and substance acceptable in all respects to Lender and the
Rating Agencies.

          Section 8.2 Permitted Transfers

          8.2.1 Permitted Transfer of the Property

          (a) Notwithstanding
the provisions of Section 8.1, Borrower shall have a one-time right to
sell or otherwise transfer the Property while the Loan or any portion thereof is outstanding,
subject to the satisfaction of the following conditions:

     (i) no Event of Default shall have occurred and remain uncured;

     (ii) the proposed transferee (“Transferee”) shall be a Permitted Transferee
and shall be a reputable entity or person of good character, creditworthy, with sufficient
financial worth considering the obligations assumed and undertaken, as evidenced by
financial statements and other information reasonably requested by Lender;

     (iii) the Transferee and its property manager shall have sufficient experience in the
ownership and management of properties similar to the Property, and Lender shall be
provided with reasonable evidence thereof (and Lender reserves the right to approve the
Transferee without approving the substitution of the property manager);

     (iv) Lender shall have received Rating Agency Confirmation with respect to the
transfer;

     (v) Lender shall have received evidence satisfactory to it (which shall include a legal
non-consolidation opinion acceptable to Lender) that the single purpose nature and
bankruptcy remoteness of Borrower its shareholders, partners, or members, as the case may
be, following such transfer are in accordance with the standards of the Rating
Agencies;

     (vi) the Transferee shall have executed and delivered to Lender an assumption
agreement in form and substance acceptable to Lender, evidencing such Transferee’s
agreement to abide and be bound by the terms of the Note, the Mortgage and the other Loan
Documents, together with such legal opinions and Title Insurance endorsements as
may be reasonably requested by Lender; and

     (vii) Lender shall have received on or prior to the date of the sale or transfer (A)
an assumption fee equal to one-half of one percent (0.50%) of the then unpaid principal
balance of the Note, (B) a rating confirmation fee for each of the Rating Agencies
delivering a Rating Agency Confirmation pursuant to clause (iv) above, which
confirmation fees shall be equal to the then customary fees charged by each applicable
Rating Agency for such a confirmation and (C) the payment of all costs and expenses
actually incurred by Lender and the Rating Agencies in connection with such assumption
(including reasonable attorneys’ fees and costs).

     (viii) the Transferee shall comply with the provisions of Section 3.1.38 hereof.

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          8.2.2 Permitted Transfer of Interest in Borrower

          (a) Notwithstanding the provisions of Section 8.1, Borrower and the holder of any
direct or indirect owner of ownership interest in Borrower shall have the right to transfer of not
more than an aggregate of 80% of the direct or indirect ownership interests in the Borrower to a
Qualified Transferee, provided that (i) no Event of Default shall have occurred and be continuing,
(ii) Borrower shall pay all out-of-pocket fees and expenses actually incurred by Lender in
connection with such Transfer including, without limitation, the cost of any third party reports,
reasonable legal fees and expenses, or required legal opinions, (iii) Lender shall have received
thirty (30) days advance written notice from Borrower of such Transfer, (iv) Lender shall have
received such documents, certificates and legal opinions as it may reasonably request, (v) if after
giving effect to such Transfer and all prior transfers, more than forty-nine percent (49%) in the
aggregate of direct or indirect interests in Borrower are owned by any Person and its Affiliates
that owned less than a forty nine percent (49%) direct or indirect interest in Borrower as of the
Closing Date, Lender shall receive a non consolidation opinion acceptable to Lender and the Rating
Agencies (vi) Borrower shall maintain its status as a single purpose, bankruptcy remote entity
under criteria established by the Rating Agencies, (vii) if after giving effect to such transfer
and all prior transfers, more than forty-nine percent (49%) in the aggregate of direct or indirect
interests in Borrower are proposed to be transferred, Lender shall have received a Rating Agency
Confirmation, (viii) the Transferee shall comply with the provisions of Section 3.1.38
hereof and (ix) the Property is managed by an Approved Property Manager.

          (b) Notwithstanding the provisions of Section 8.1, Borrower and the holder of any
direct or indirect owner of ownership interest in Borrower shall have the right to transfer of not
more than an aggregate of 80% of the direct or indirect ownership interests in the Borrower to one
or more of the I&G Funds, provided that (i) no Event of Default shall have occurred and be
continuing, (ii) Borrower shall pay all out-of-pocket fees and expenses actually incurred by Lender
in connection with such Transfer including, without limitation, the cost of any third party
reports, reasonable legal fees and expenses, or required legal opinions, (iii) Lender shall have
received thirty (30) days advance written notice from Borrower of such Transfer, (iv) Lender shall
have received such documents, certificates and legal opinions as it may reasonably request, (v) if
after giving effect to such Transfer and all prior transfers, more than forty-nine percent (49%) in
the aggregate of direct or indirect interests in Borrower are owned by any Person and its
Affiliates that owned less than a forty nine percent (49%) direct or indirect interest in Borrower
as of the Closing Date, Lender shall receive a non consolidation opinion acceptable to Lender and
the Rating Agencies (vi) Borrower shall maintain its status as a single purpose, bankruptcy remote
entity under criteria established by the Rating Agencies, (vii) the Transferee shall comply with
the provisions of Section 3.1.38 hereof, (viii) Borrower provides an Officer’s Certificate
that as of the date of the transfer, the I&G Funds’ net worth has not materially decreased since
the date hereof and (ix) the Property is managed by an Approved Property Manager.

          Section 8.3 Substitute Guarantor.

          Solely in connection with Transfers permitted pursuant to Sections 8.2.1, 8.1(c)(v)
and 8.2.2, Borrower may substitute the Guarantor under the Guaranty, the Supplemental

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Guaranty and the Environmental Indemnity (collectively, the “Guaranties”) with another
guarantor (“Substitute Guarantor”)
provided that: (i) such Substitute Guarantor satisfies
the requirements of a Qualified Transferee as of the date of the proposed substitution and is
otherwise acceptable to Lender in its sole discretion; and (ii) such Substitute Guarantor executes
the Guaranties, in the form identical to Guaranties executed by Guarantor as of the Closing Date.
Upon such substitution in accordance with the provisions of this Section 8.3 the former
Guarantor shall be released from any liability or other obligation under each of the Guaranties.

          IX. SALE AND SECURITIZATION OF MORTGAGE

          Section 9.1 Sale of Mortgage and Securitization.

          (a) Lender shall have the right (i) to sell or otherwise transfer the Loan or any portion
thereof as a whole loan, (ii) to sell participation interests in the Loan or (iii) to securitize
the Loan or any portion thereof in a single asset securitization or a pooled loan securitization.
(The transactions referred to in
clauses (i), (ii) and (iii) shall hereinafter be referred to collectively
as “Secondary Market Transactions” and the transaction referred to in clause (iii)
shall hereinafter be referred to as a “Securitization.” Any certificates, notes or other
securities issued in connection with a Securitization are hereinafter referred to as
“Securities”).

          (b) If requested by Lender, at not material cost to Borrower, Borrower shall assist Lender in
satisfying the market standards to which Lender customarily adheres or which may be reasonably
required in the marketplace or by the Rating Agencies in connection with any Secondary Market
Transactions, including, without limitation, to:

     (i) (A) provide updated financial and other information with respect to the Property,
the business operated at the Property, Borrower and the Manager, (B) provide updated
budgets relating to the Property and (C) provide updated appraisals, market studies,
environmental reviews (Phase I’s and, if appropriate, Phase II’s), property condition
reports and other due diligence investigations of the Property (the “Updated
Information”), together, with appropriate verification of the Updated Information
through letters of auditors or opinions of counsel acceptable to Lender and the Rating
Agencies;

     (ii) provide opinions of counsel, which may be relied upon by Lender, the Rating
Agencies and their respective counsel, agents and representatives, as to non-consolidation
or any other opinion customary in Secondary Market Transactions or required by the Rating
Agencies with respect to the Property and Borrower and Affiliates, which counsel
and opinions shall be reasonably satisfactory to Lender and the Rating Agencies;

     (iii) provide updated, as of the closing date of the Secondary Market Transaction,
representations and warranties made in the Loan Documents and such additional
representations and warranties as the Rating Agencies may require;

     (iv) execute such amendments to the Loan Documents and Borrower’s organizational
documents reasonably requested by Lender, including, without limitation,

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amending the
Monthly Payment Date, the execution of one or more replacement loan agreements, as may be
requested by Lender or the Rating Agencies to effect the Securitization and/or deliver one
or more new component notes to replace the original note or modify the original note to
reflect multiple components of the Loan (and such new notes or modified note shall have
the same initial weighted average coupon of the original note, but such new notes or
modified note may change
the interest rate, Monthly Payment Date and amortization of the Loan), and modify the Cash
Management Agreement with respect to the newly created components such that the pricing
and marketability of the Securities and the size of each class of Securities and
the rating assigned to each such class by the Rating Agencies shall provide the most
favorable rating levels and achieve the optimum rating levels for the
Loan; provided,
however, any such amendments or agreements will not result in an economic change in the
Loan terms and will not materially alter the payment terms set forth in this
Agreement or the other Loan Documents or materially and adversely affect Borrower or
impose additional material obligations or liabilities upon Borrower; and

     (v) attend management meetings and conduct tours of the Property.

          Section 9.2 Securitization Indemnification.

          (a) Borrower understands that information provided to Lender by Borrower and its agents,
counsel and representatives may be included in disclosure documents in connection with the
Securitization, including, without limitation, an offering circular, a prospectus, prospectus
supplement, private placement memorandum or other offering document (each, a “Disclosure
Document”) and may also be included in filings with the Securities and Exchange Commission
pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the
Securities and Exchange Act of 1934, as amended (the “Exchange Act”), and may be made
available to investors or prospective investors in the Securities, the Rating Agencies, and service
providers relating to the Securitization.

          (b) Borrower shall provide in connection with each of (i) a preliminary and a final private
placement memorandum or (ii) a preliminary and final prospectus or prospectus supplement, as
applicable, an agreement (A) certifying that Borrower has examined such Disclosure Documents
specified by Lender and that each such Disclosure Document, as it relates to Borrower, Borrower
Affiliates, the Property, Manager and all other aspects of the Loan, does not contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements made, in the light of the circumstances under which they were made, not misleading, (B)
indemnifying Lender (and for purposes of this Section 9.2, Lender hereunder shall include
its officers and directors), the Affiliate of Lender that has filed the registration statement
relating to the Securitization (the “Registration Statement”), each of its directors, each
of its officers who have signed the Registration Statement and each Person that controls the
Affiliate within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
(collectively, the “Lender Group”), and Lender, and any other placement agent or
underwriter with respect to the Securitization, each of their
respective directors and each Person who controls Lender or any other placement agent or
underwriter within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange
Act (collectively, the “Underwriter Group”) for any losses, claims, damages or liabilities
(collectively, the

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“Liabilities”) to which Lender, the Lender Group or the Underwriter
Group may become subject insofar as the Liabilities arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in such sections or arise out
of or are based upon the omission or alleged omission to state therein a material fact required to
be stated in such sections or necessary in order to make the statements in such sections, in light
of the circumstances under which they were made, not misleading and (C) agreeing to reimburse
Lender, the Lender Group and/or the Underwriter Group for any legal or other expenses reasonably
incurred by Lender, the Lender Group and the Underwriter Group in connection with investigating or
defending the Liabilities; provided, however, that Borrower will be liable in any
such case under clauses (B) or (C) above only to the extent that any such loss
claim, damage or liability arises out of or is based upon any such untrue statement or omission
made therein in reliance upon and in conformity with information furnished to Lender by or on
behalf of Borrower in connection with the preparation of the Disclosure Document or in connection
with the underwriting or closing of the Loan, including, without limitation, financial statements
of Borrower, operating statements and rent rolls with respect to the Property. This indemnity
agreement will be in addition to any liability which Borrower may otherwise have.

          (c) In connection with Exchange Act Filings, Borrower shall (i) indemnify Lender, the Lender
Group and the Underwriter Group for Liabilities to which Lender, the Lender Group or the
Underwriter Group may become subject insofar as the Liabilities arise out of or are based upon the
omission or alleged omission to state in the Disclosure Document a material fact required to be
stated in the Disclosure Document in order to make the statements in the Disclosure Document, in
light of the circumstances under which they were made, not misleading and (ii) reimburse Lender,
the Lender Group or the Underwriter Group for any reasonable legal or other expenses actually and
reasonably incurred by Lender, the Lender Group or the Underwriter Group in connection with
defending or investigating the Liabilities.

          (d) Promptly after receipt by an indemnified party under this Section 9.2 of notice of
the commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 9.2, notify the indemnifying party
in writing of the commencement thereof, but the omission to so notify the indemnifying party will
not relieve the indemnifying party from any liability which the indemnifying party may have to any
indemnified party hereunder except to the extent that failure to notify causes prejudice to the
indemnifying party. In the event that any action is brought against any indemnified party, and it
notifies the indemnifying party of the commencement thereof, the indemnifying party will be
entitled, jointly with any other indemnifying party, to participate therein and, to the extent that
it (or they) may elect by written notice delivered to the indemnified party promptly after
receiving the aforesaid notice from such indemnified party, to
assume the defense thereof with counsel reasonably satisfactory to such indemnified party. After
notice from the indemnifying party to such indemnified party under this Section 9.2, such
indemnified party shall pay for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs of
investigation; provided, however, if the defendants in any such action include both
the indemnified party and the indemnifying party and the indemnified party shall have reasonably
concluded that there are any legal defenses available to it and/or other indemnified parties that
are different from or additional to those available to the indemnifying party, the indemnified
party or parties shall have the right to select separate counsel to assert such legal defenses and
to

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otherwise participate in the defense of such action on behalf of such indemnified party at the
cost of the indemnifying party. The indemnifying party shall not be liable for the expenses of more
than one separate counsel unless an indemnified party shall have reasonably concluded that there
may be legal defenses available to it that are different from or additional to those available to
another indemnified party.

          (e) In order to provide for just and equitable contribution in circumstances in which the
indemnity agreement provided for in Section 9.2(b) or (c) is for any reason held to
be unenforceable as to an indemnified party in respect of any losses, claims, damages or
liabilities (or action in respect thereof) referred to therein which would otherwise be
indemnifiable under Section 9.2(b) or (c), the indemnifying party shall contribute
to the amount paid or payable by the indemnified party as a result of such losses, claims, damages
or liabilities (or action in respect thereof); provided, however, that no Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. In determining the amount of contribution to which the respective parties are
entitled, the following factors shall be considered: (i) Lender’s and Borrower’s relative knowledge
and access to information concerning the matter with respect to which the claim was asserted; (ii)
the opportunity to correct and prevent any statement or omission; and (iii) any other equitable
considerations appropriate in the circumstances. Lender and Borrower hereby agree that it would not
be equitable if the amount of such contribution were determined by pro rata or per capita
allocation.

          (f) The liabilities and obligations of both Borrower and Lender under this Section 9.2 shall
survive the termination of this Agreement and the satisfaction and discharge of the Debt.

          X. DEFAULTS

          Section 10.1 Event of Default.

          (a) Each of the following events shall constitute an event of default hereunder (an “Event
of Default”):

     (i) if (A) any monthly installment of interest due under the Note or the payment due
on the Maturity Date is not paid within five (5) days of the date when due or (B) any other
portion of the Debt is not paid when due and such non-payment in this Section
10.1(a)(i)(B) continues for five (5) days following notice to Borrower that the same
is due and payable;

     (ii) if any of the Taxes or Other Charges are not paid when due (except to the extent
(A) Lender is obligated to disburse Tax Funds for the payment of Taxes pursuant to
Section 6.2.2 hereof, (B) Lender has sufficient Tax Funds in the Tax Funds account
for such payment to make such payment, (C) no other Event of Default shall have occurred
and (D) Lender fails to make such payment of Taxes);

     (iii) if the Policies are not kept in full force and effect provided,
however, if Borrower has deposited sufficient funds into the Insurance Account (as
defined in the

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Cash Management Agreement) for the purchase of the Policies in accordance with
Section 6.3 hereof, the failure to maintain such Policies due solely to
non-payment of the Insurance Premiums shall not be deemed an Event of Default hereunder;

     (iv) if Borrower breaches or permits or suffers a breach of Article 6 of the Mortgage
or Article VIII of this Agreement;

     (v) if any representation or warranty made by Borrower herein or in any other Loan
Document, or in any report, certificate, financial statement or other instrument,
agreement or document furnished to Lender shall have been false or misleading in any
material respect as of the date the representation or warranty was made;

     (vi) if Borrower, any SPC Party or Guarantor shall make an assignment for the benefit
of creditors;

     (vii) if Borrower fails or admits its inability to pay debts generally as they become
due;

     (viii) if a receiver, liquidator or trustee shall be appointed for Borrower, any SPC
Party or Guarantor or if Borrower, any SPC Party or Guarantor shall be adjudicated
bankrupt or insolvent, or if any petition for bankruptcy, reorganization or arrangement
pursuant to federal bankruptcy law, or any similar federal or state law, shall be
filed by or against, consented to, or acquiesced in by, Borrower, any SPC Party or
Guarantor, or if any proceeding for the dissolution or liquidation of Borrower, any SPC
Party or Guarantor shall be instituted; provided, however, if such appointment,
adjudication, petition or proceeding was involuntary and not consented to by
Borrower, and SPC Party or Guarantor, upon the same not being discharged, stayed or
dismissed within forty-five (45) days or if an order for relief is entered;

     (ix) if Borrower assigns its rights under this Agreement or any of the other Loan
Documents or any interest herein or therein in contravention of the Loan Documents;

     (x) Intentionally Deleted;

     (xi) if any of the assumptions contained in the Insolvency Opinion, or in any other
non-consolidation opinion delivered to Lender in connection with the Loan, or in any other
non-consolidation delivered subsequent to the closing of the Loan, is or shall become
untrue in any material respect and Borrower fails to deliver updates/corrections
within thirty (30) days of request therefor;

     (xii) if Borrower breaches any representation, warranty or covenant contained in
Section 3.1.24 hereof;

     (xiii) intentionally omitted;

     (xiv) if Guarantor breaches in any material respect any covenant, warranty or
representation contained in the Guaranty or the Supplemental Guaranty;

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     (xv) if Borrower shall continue to be in Default under any of the other terms,
covenants or conditions of this Agreement not specified in subsections (i) through
and including (xv) above, for ten (10) days after notice to Borrower from Lender, in
the case of any Default which can be cured by the payment of a sum of money, or for
thirty (30) days after notice from Lender in the
case of any other Default; provided, however, that if such non monetary
Default is susceptible of cure but cannot reasonably be cured within such thirty
(30) day period and provided further that Borrower shall have commenced to
cure such Default within such thirty (30) day period and thereafter diligently and
expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for
such time as is reasonably necessary for Borrower in the exercise of due diligence to cure
such Default, such additional period not to exceed ninety (90) days; or

     (xvi) if there shall be Default under any of the other Loan Documents beyond any
applicable cure periods contained in such Loan Documents, whether as to Borrower or the
Property, or if any other such event shall occur or condition shall exist, if the effect
of such event or condition is to accelerate the maturity of any portion of the Debt
or to permit Lender to accelerate the maturity of all or any portion of the Debt.

          (b) Upon the occurrence of an Event of Default (other than an Event of Default described in
Sections 10.1(a)(vi), (vii) or (viii) above) and at any time thereafter
Lender may, in addition to any other rights or remedies available to it pursuant to this Agreement
and the other Loan Documents or at law or in equity, take such action, without notice or demand,
that Lender deems advisable to protect and enforce its rights against Borrower and in and to the
Property, including, without limitation, declaring the Debt to be immediately due and payable, and
Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents
against Borrower and the Property, including, without limitation, all rights or remedies available
at law or in equity; and upon any Event of Default described in Sections 10.1(a)(vi),
(vii) or (viii) above, the Debt and all other obligations of Borrower hereunder and
under the other Loan Documents shall immediately and automatically become due and payable, without
notice or demand, and Borrower hereby expressly waives any such notice or demand, anything
contained herein or in any other Loan Document to the contrary notwithstanding.

          Section 10.2 Remedies.

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

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foregoing and subject to applicable law, if an Event of Default is continuing
(i) Lender is not subject to any “one action” or “election of remedies” law or rule, and (ii) all
liens and other rights, remedies or privileges provided to Lender shall remain in full force and
effect until Lender has exhausted all of its remedies against the Property and the Mortgage has
been foreclosed, sold and/or otherwise realized upon in satisfaction of the Debt or the Debt has
been paid in full.

          (b) Subject to applicable law, Lender shall have the right from time to time to partially
foreclose the Mortgage in any manner and for any amounts secured by the Mortgage then due and
payable as determined by Lender in its sole discretion including, without limitation, the following
circumstances: (i) in the event Borrower defaults beyond any applicable grace period in the payment
of one or more scheduled payments of principal and interest, Lender may foreclose the Mortgage to
recover such delinquent payments, or (ii) in the event Lender elects to accelerate less than the
entire outstanding principal balance of the Loan, Lender may foreclose the Mortgage to recover so
much of the principal balance of the Loan as Lender may accelerate and such other sums secured by
the Mortgage as Lender may elect. Notwithstanding one or more partial foreclosures, the Property
shall remain subject to the Mortgage to secure payment of sums secured by the Mortgage and not
previously recovered.

          (c) Lender shall have the right from time to time to sever the Note and the other Loan
Documents into one or more separate notes, mortgages and other security documents (the “Severed
Loan Documents”) in such denominations as Lender shall determine in its sole discretion for
purposes of evidencing and enforcing its rights and remedies provided hereunder. Borrower shall
execute and deliver to Lender from time to time, promptly after the request of Lender, a severance
agreement and such other documents as Lender shall request in order to effect the severance
described in the preceding sentence, all in form and substance reasonably satisfactory to Lender.
Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled
with an interest, in its name and stead to make and execute all documents necessary or desirable to
effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue
thereof; provided, however, Lender shall not make or execute any such documents
under such power until three (3) days after notice has been given to Borrower by Lender of Lender’s
intent to exercise its rights under such power. Except as may be required in connection with a
Securitization pursuant to Section 9.1 hereof, (i) Borrower shall not be obligated to pay
any costs or expenses incurred in connection with the preparation, execution, recording or filing
of the Severed Loan Documents, and (ii) the Severed Loan Documents shall not contain any
representations, warranties or covenants not contained in the Loan Documents and any such
representations and warranties contained in the Severed Loan Documents will be given by Borrower
only as of the Closing Date.

          (d) Any amounts recovered from the Property or any other collateral for the Loan after an
Event of Default may be applied by Lender toward the payment of any interest and/or principal of
the Loan and/or any other amounts due under the Loan Documents in such order, priority and
proportions as Lender in its sole discretion shall determine.

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          Section 10.3 Right to Cure Defaults.

          Lender may, but without any obligation to do so and without notice to or demand on Borrower
and without releasing Borrower from any obligation hereunder or being deemed to have cured any
Event of Default hereunder, make, do or perform any obligation of Borrower hereunder in such manner
and to such extent as Lender may deem necessary. Lender is authorized to enter upon the Property
for such purposes, or appear in, defend, or bring any action or proceeding to protect its interest
in the Property for such purposes, and the cost and expense actually incurred thereof (including
reasonable attorneys’ fees to the extent permitted by law), with interest as provided in this
Section 10.3, shall constitute a portion of the Debt and shall be due and payable to Lender
upon demand. All such costs and expenses actually incurred by Lender in remedying such Event of
Default or such failed payment or act or in appearing in, defending, or bringing any action or
proceeding shall bear interest at the Default Rate, for the period after such cost or expense was
incurred to the date of payment to Lender. All such costs and expenses incurred by Lender together
with interest thereon calculated at the Default Rate shall be deemed to constitute a portion of the
Debt and be secured by the liens, claims and security interests provided to Lender under the Loan
Documents and shall be immediately due and payable upon demand by Lender therefore.

          Section 10.4 Remedies Cumulative.

          The rights, powers and remedies of Lender under this Agreement shall be cumulative and not
exclusive of any other right, power or remedy which Lender may have against Borrower pursuant to
this Agreement or the other Loan Documents, or existing at law or in equity or otherwise. Lender’s
rights, powers and remedies may be pursued singly, concurrently or otherwise, at such time and in
such order as Lender may determine in Lender’s sole discretion. No delay or omission to exercise
any remedy, right or power accruing upon an Event of Default shall impair any such remedy, right or
power or shall be construed as a waiver thereof, but any such remedy, right or power may be
exercised from time to time and as often as may be deemed expedient. A waiver of one Default or
Event of Default with respect to Borrower shall not be construed to be a waiver of any subsequent
Default or Event of Default by Borrower or to impair any remedy, right or power consequent thereon.

          XI. MISCELLANEOUS

          Section 11.1 Successors and Assigns.

          Whenever in this Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the legal representatives, successors and assigns of such party. All covenants,
promises and agreements in this Agreement, by or on behalf of Borrower, shall inure to the benefit
of the legal representatives, successors and assigns of Lender.

          Section 11.2 Lender’s Discretion.

          Whenever pursuant to this Agreement Lender exercises any right given to it to approve or
disapprove, or any arrangement or term is to be satisfactory to Lender, the decision of Lender to
approve or disapprove or to decide whether arrangements or terms are satisfactory or

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not
satisfactory shall (except as is otherwise specifically herein provided) be in the sole discretion
of Lender and shall be final and conclusive. Prior to a Securitization, whenever pursuant to this
Agreement the Rating Agencies are given any right to approve or disapprove, or any arrangement or
term is to be satisfactory to the Rating Agencies, the decision of Lender to approve or disapprove
or to decide whether arrangements or terms are satisfactory or not satisfactory, based upon
Lender’s determination of Rating Agency criteria, shall be substituted therefore.

          Section 11.3 Governing Law.

          (A) THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE BY LENDER AND ACCEPTED BY
BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE NOTE DELIVERED PURSUANT HERETO WERE
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 (WITHOUT REGARD TO PRINCIPLES OF CONFLICT LAWS) 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 LIEN AND SECURITY
INTEREST 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 PROPERTY 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, BORROWER
HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER
JURISDICTION GOVERNS THIS AGREEMENT AND THE NOTE, AND THIS AGREEMENT AND THE NOTE 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.

          (B) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING
TO THIS AGREEMENT MAY AT LENDER’S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF
NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 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

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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:

Stuart H. Widowski

44 South Bayles Avenue

Port Washington, New York 11050

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, 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 (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED
ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) 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 (III) 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 11.4 Modification, Waiver in Writing.

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

          Section 11.5 Delay Not a Waiver.

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

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Loan Documents, or to declare a
default for failure to effect prompt payment of any such other amount. Lender shall have the right
to waive or reduce any time periods that Lender is entitled to under the Loan Documents in its sole
and absolute discretion.

          Section 11.6 Notices.

          All notices, demands, requests, consents, approvals or other communications (any of the
foregoing, a “Notice”) required, permitted, or desired to be given hereunder shall be in
writing sent by telefax (with answer back acknowledged) or by registered or certified mail, postage
prepaid, return receipt requested, or delivered by hand or reputable overnight courier addressed to
the party to be so notified at its address hereinafter set forth, or to such other address as such
party may hereafter specify in accordance with the provisions of this
Section 11.6. Any Notice
shall be deemed to have been received: (a) three (3) days after the date such Notice is mailed, (b)
on the date of sending by facsimile transmission if sent during business hours on a Business Day
(otherwise on the next Business Day), (c) on the date of delivery by hand if delivered during
business hours on a Business Day (otherwise on the next
Business Day), and (d) on the next Business Day if sent by an overnight commercial courier, in each
case addressed to the parties as follows:

If to Lender:

Eurohypo AG, New York Branch

1114 Avenue of the Americas

Twenty-Ninth Floor

New York, New York 10036

Attention: Head of Portfolio Operations

Facsimile No.: (212) 479-5800

with a copy to:

Eurohypo AG, New York Branch

1114 Avenue of the Americas

Twenty-Ninth Floor

New York, New York 10036

Attention: Legal Director

Facsimile No.: (212) 479-5800

with a copy to:

Cadwalader, Wickersham & Taft LLP

100 Maiden Lane

New York, New York 100038

Attention: Michael G. Kavourias, Esq.

Facsimile No.: (212) 504-6666

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If to Borrower:

Cedar-Franklin Village LLC

c/o Cedar Shopping Centers Partnership, L.P.

44 South Bayles Avenue

Suite 304

Port Washington, NY 11050

Attention: Brenda J. Walker and Stuart H. Widowski, Esq.

Facsimile No.: (516) 767-6497

with a copy to:

Stroock & Stroock, & Lavan, LLP

180 Maiden Lane

New York, New York 10038

Attention: Steven P. Moskowitz

Facsimile No.: (212) 806-6006

          Section 11.7 Trial by Jury.

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

          Section 11.8 Headings.

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

          Section 11.9 Severability.

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

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          Section 11.10 Preferences.

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

          Section 11.11 Waiver of Notice.

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

          Section 11.12 Remedies of Borrower.

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

          Section 11.13 Expenses; Indemnity.

          (a) Borrower shall pay or, if Borrower fails to pay, reimburse Lender upon receipt of notice
from Lender, for all reasonable costs and expenses (including reasonable attorneys’ fees and
disbursements actually incurred by Lender in connection with (i) the preparation, negotiation,
execution
and delivery of this Agreement and the other Loan Documents and the consummation of the
transactions contemplated hereby and thereby and all the costs of furnishing all opinions of
counsel (including without limitation any opinions requested by Lender as to any legal matters
pertaining to this Agreement, the other Loan Documents or the Property); (ii) Borrower’s ongoing
performance of and compliance with Borrower’s agreements and covenants contained in this Agreement
and the other Loan Documents on its part to be performed or complied with after the Closing Date,
including, without limitation, confirming compliance with environmental and insurance requirements;

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(iii) the negotiation, preparation, execution, delivery and administration of any consents,
amendments, waivers or other modifications to this Agreement and the other Loan Documents and any
other documents or matters requested by Borrower; (iv) the filing and recording fees and expenses,
Title Insurance and reasonable fees and expenses of counsel for providing to Lender all required
legal opinions, and other similar expenses incurred, in creating and perfecting the Liens in favor
of Lender pursuant to this Agreement and the other Loan Documents; (v) enforcing or preserving any
rights, in response to third party claims or the prosecuting or defending of any action or
proceeding or other litigation or otherwise, in each case against, under or affecting Borrower,
this Agreement, the other Loan Documents, the Property, or any other security given for the Loan;
and (vi) enforcing any obligations of or collecting any payments due from Borrower under this
Agreement, the other Loan Documents or with respect to the Property or in connection with any
refinancing or restructuring of the credit arrangements provided under this Agreement in the nature
of a “work out” or of any insolvency or bankruptcy proceedings; provided, however,
that Borrower shall not be liable for the payment of any such costs and expenses to the extent the
same arise by reason of the gross negligence, illegal acts, fraud, bad faith or willful misconduct
of Lender.

          (b) Borrower shall indemnify, defend and hold harmless Lender and its officers, directors,
agents, employees (and the successors and assigns of the foregoing) (the “Lender
Indemnitees”) from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or
nature whatsoever (including, without limitation, the reasonable fees and disbursements of counsel
for the Lender Indemnitees in connection with any investigative, administrative or judicial
proceeding commenced or threatened, whether or not the Lender Indemnitees shall be designated a
party thereto), that may be imposed on, incurred by, or asserted against the Lender Indemnitees in
any manner relating to or arising out of (i) any breach by Borrower of its obligations under, or
any material misrepresentation by Borrower contained in, this Agreement or the other Loan
Documents, or (ii) the use or intended use of the proceeds of the Loan (collectively, the
“Indemnified Liabilities”); provided, however, that Borrower shall not have
any obligation to the Lender Indemnitees hereunder to the extent that such Indemnified Liabilities
arise from the bad faith, gross negligence, illegal acts, fraud or willful misconduct of the Lender
Indemnitees. To the extent that the undertaking to indemnify, defend and hold harmless set forth in
the preceding sentence may be unenforceable because it violates any law or public policy, Borrower
shall pay the maximum portion that it is permitted to pay and satisfy under applicable law to the
payment and satisfaction of all Indemnified Liabilities incurred by the Lender Indemnitees.

          Section 11.14 Schedules Incorporated.

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

          Section 11.15 Offsets, Counterclaims and Defenses.

          Any assignee of Lender’s interest in and to this Agreement and the other Loan Documents shall
take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such
documents which Borrower may otherwise have against any assignor of such

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documents, and no such
unrelated counterclaim or defense shall be interposed or asserted by Borrower in any action or
proceeding brought by any such assignee upon such documents and any such right to interpose or
assert any such unrelated offset, counterclaim or defense in any such action or proceeding is
hereby expressly waived by Borrower.

          Section 11.16 No Joint Venture or Partnership; No Third Party Beneficiaries.

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

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

          Section 11.17 Publicity.

          All news releases, publicity or advertising by Borrower or its Affiliates through any media
intended to reach the general public which refers to the Loan Documents or the financing evidenced
by the Loan Documents, to Lender or any of its Affiliates shall be subject to the prior written
approval of Lender. Borrower authorizes Lender to issue press releases, advertisements and other
promotional materials in connection with Lender’s own promotional and marketing activities,
including in connection with a Secondary Market Transaction, and such materials may describe the
Loan in general terms or in detail and Lender’s participation therein in the Loan. All references
to Lender contained in any press release, advertisement or promotional material issued by Borrower
shall be reasonably approved in writing by Lender in advance of issuance.

          Section 11.18 Waiver of Marshalling of Assets.

          To the fullest extent permitted by law, Borrower, for itself and its successors and assigns,
waives all rights to a marshalling of the assets of Borrower, Borrower’s partners and others with
interests in Borrower, and of the Property, and shall not assert any right under any laws
pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead
exemption, the administration of estates of decedents, or any other matters whatsoever to defeat,
reduce or affect the right of Lender under the Loan Documents to a sale of the Property for the

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collection of the Debt without any prior or different resort for collection or of the right of
Lender to the payment of the Debt out of the net proceeds of the Property in preference to every
other claimant whatsoever.

          Section 11.19 Waiver of Offsets/Defenses/Counterclaims.

          Borrower hereby waives the right to assert a counterclaim, other than a compulsory
counterclaim, in any action or proceeding brought against it by Lender or its agents or otherwise
to offset any obligations to make the payments required by the Loan Documents. No failure by Lender
to perform any of its obligations hereunder shall be a valid defense to, or result in any offset
against, any payments which Borrower is obligated to make under any of the Loan Documents.

          Section 11.20 Conflict; Construction of Documents; Reliance.

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

          Section 11.21 Brokers and Financial Advisors.

          Borrower hereby represents that it has dealt with no financial advisors, brokers,
underwriters, placement agents, agents or finders in connection with the transactions contemplated
by this Agreement. Borrower shall indemnify, defend and hold Lender harmless from and against any
and all claims, liabilities, costs and expenses of any kind (including Lender’s attorneys’ fees and
expenses) in any way relating to or arising from a claim by any Person that such Person acted on
behalf of Borrower or Lender in connection with the transactions contemplated herein. The
provisions of this Section 11.21 shall survive the expiration and termination of this Agreement and
the payment of the Debt.

          Section 11.22 Exculpation.

          Subject to the qualifications below, Lender shall not enforce the liability and obligation of
Borrower to perform and observe the obligations contained in the Note, this

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Agreement, the Mortgage
or the other Loan Documents by any action or proceeding wherein a money judgment shall be sought
against Borrower, except that Lender may bring a foreclosure action, an action for specific
performance or any other appropriate action or proceeding to enable Lender to enforce and realize
upon its interest under the Note, this Agreement, the Mortgage and the other Loan Documents, or in
the Property, the Rents, or any other collateral given to Lender pursuant to the Loan Documents;
provided, however, that, except as specifically provided herein, any judgment in
any such action or proceeding shall be enforceable against Borrower only to the extent of
Borrower’s interest in the Property, in the Rents, Net Proceeds and in any other collateral given
to Lender, and Lender, by accepting the Note, this Agreement, the Mortgage and the other Loan
Documents, shall not sue for, seek or demand any deficiency judgment against Borrower in any such
action or proceeding under or by reason of or under or in connection with the Note, this Agreement,
the Mortgage or the other Loan Documents. The provisions of this Section shall not, however, (a)
constitute a waiver, release or impairment of any obligation evidenced or secured by any of the
Loan Documents; (b) impair the right of Lender to name Borrower as a party defendant in any action
or suit for foreclosure and sale under the Mortgage; (c) affect the validity or enforceability of
any guaranty made in connection with the Loan or any of the rights and remedies of Lender
thereunder; (d) impair the right of Lender to obtain the appointment of a receiver; (e) impair the
enforcement of the Assignment of Leases; (f) constitute a prohibition against Lender to seek a
deficiency judgment against Borrower in order to fully realize the security granted by the Mortgage
or to commence any other appropriate action or proceeding in order for Lender to exercise its
remedies against the Property; or (g) constitute a waiver of the right of Lender to enforce the
liability and obligation of Borrower, by money judgment or otherwise, to the extent of any loss,
damage, cost, expense, liability, claim or other obligation incurred by Lender (including
attorneys’ fees and costs reasonably incurred) arising out of or in connection with and Borrower
shall be personally liable for the following:

     (i) fraud or intentional misrepresentation by Borrower or any guarantor in connection
with the Loan;

     (ii) the willful misconduct of Borrower;

     (iii) the breach of any representation, warranty, covenant or indemnification
provision in the Environmental Indemnity or in the Mortgage concerning environmental laws,
hazardous substances and asbestos and any indemnification of Lender with respect thereto
in either document;

     (iv) the removal or disposal of any portion of the Property after an Event of
Default;

     (v) the misapplication or conversion by Borrower of (A) any insurance proceeds paid
by reason of any loss, damage or destruction to the Property, (B) any Awards or other
amounts received in connection with the Condemnation of all or a portion of the Property,
or (C) any Rents following an Event of Default or any Rents collected for more
than one month in advance to the extent such Rents or any other payments in respect of the
Leases and other income of the Property or any other collateral are not applied to the
costs of maintenance and operation of the Property and to the

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payment of taxes, lien
claims, insurance premiums, Debt Service and other amounts due under the Loan Documents;

     (vi) misappropriation or conversion of any security deposits, advance deposits or any
other deposits collected with respect to the Property which are not delivered to Lender
upon a foreclosure of the Property or action in lieu thereof, except to the extent any
such security deposits were applied in accordance with the terms and conditions
of any of the Leases prior to the occurrence of the Event of Default that gave rise to
such foreclosure or action in lieu thereof;

     (vii) Borrower’s failure to maintain insurance as required by this Agreement or to
pay any taxes or assessments affecting the Property as required by this Agreement;

     (viii) misappropriation, removal or disposal (except in the ordinary course of
Borrower’s business) of any Personal Property (as defined in the Mortgage) affixed to the
Property which constitutes a portion of the collateral for the Loan;

     (ix) failure to pay any charges when due for labor or materials that create Liens on
the Property (to the extent net cash flow from the Property is available for payment of
such charges) unless the same are being contested in accordance with this Agreement;

     (x) failure to restore physical waste of the Property; or

     (xi) Borrower fails to appoint a new property manager upon the request of Lender
after an Event of Default, as required by, and in accordance with the terms and provisions
of, this Agreement and the Mortgage.

          Notwithstanding anything to the contrary in this Agreement, the Note or any of the Loan
Documents, (A) Lender shall not be deemed to have waived any right which Lender may have under
Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code to file a claim for
the full amount of the Debt or to require that all collateral shall continue to secure all of the
Debt owing to Lender in accordance with the Loan Documents, and (B) the Debt shall be fully
recourse to Borrower in the event that: (i) Borrower fails to obtain Lender’s prior consent to any
subordinate financing or other voluntary Lien encumbering the Property (other than Permitted
Encumbrances); (ii) Borrower fails to obtain Lender’s prior consent to any Prohibited Transfer as
required by the Mortgage or this Agreement; (iii) Borrower files a voluntary petition under the
Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (iv) an Affiliate which
controls, directly or indirectly, Borrower files, or joins in the filing of, an involuntary
petition against Borrower under the Bankruptcy Code or any other Federal or state bankruptcy or
insolvency law, or solicits or causes to be solicited petitioning creditors for any involuntary
petition against Borrower from any Person; (v) 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 Bankruptcy Code or any other Federal or state bankruptcy or insolvency law, or solicits or
causes to be solicited petitioning creditors for any involuntary petition from any Person; (vi) any
Affiliate which controls Borrower consents to or acquiesces in or joins in an application for the
appointment of a custodian, receiver, trustee, or

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examiner for Borrower or any portion of the Property; (vii) 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 they become due; or (viii) Borrower defaults in the observance or
performance of any of its obligations under Section 3.1.24.

          Section 11.23 Prior Agreements.

          This Agreement and the other Loan Documents contain the entire agreement of the parties hereto
and thereto in respect of the transactions contemplated hereby and thereby, and all prior
agreements among or between such parties, whether oral or written, including, without limitation,
the term sheet dated September 30, 2004 between Borrower and Lender, are superseded by the terms of
this Agreement and the other Loan Documents.

          Section 11.24 Servicer.

          (a) At the option of Lender, the Loan may be serviced by a servicer (the “Servicer”)
selected by Lender and Lender may delegate all or any portion of its responsibilities under this
Agreement and the other Loan Documents to the Servicer pursuant to a servicing agreement (the
“Servicing Agreement”) between Lender and Servicer. Borrower shall be responsible for any
reasonable set-up fees or any other initial costs relating to or arising under the Servicing
Agreement; provided, however, that Borrower shall not be responsible for payment of
the monthly servicing fee due to the Servicer under the Servicing Agreement. Servicer shall,
however, be entitled to reimbursement of costs and expenses as and to the same extent (but without
duplication) as Lender is entitled thereto under the applicable provisions of this Agreement and
the other Loan Documents.

          (b) Upon notice thereof from Lender, Servicer shall have the right to exercise all rights of
Lender and enforce all obligations of Borrower pursuant to the provisions of this Agreement, the
Note and the other Loan Documents.

          (c) Provided Borrower shall have been given notice of Servicer’s address by Lender, Borrower
shall deliver to Servicer duplicate originals of all notices and other instruments which Borrower
may or shall be required to deliver to Lender pursuant to this Agreement, the Note and the other
Loan Documents (and no delivery of such notices or other instruments by Borrower shall be of any
force or effect unless delivered to Lender and Servicer as provided above).

          Section 11.25 Joint and Several Liability.

          If more than one Person has executed this Agreement as “Borrower,” the representations,
covenants, warranties and obligations of all such Persons hereunder shall be joint and several.

          Section 11.26 Creation of Security Interest.

          Notwithstanding any other provision set forth in this Agreement, the Note, the Mortgage or any
of the other Loan Documents, Lender may at any time create a security interest in all or any
portion of its rights under this Agreement, the Note, the Mortgage and any other

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Loan Document
(including, without limitation, the advances owing to it) in favor of any Federal Reserve Bank in
accordance with Regulation A of the Board of Governors of the Federal Reserve System.

          Section 11.27 Assignments and Participations.

          (a) The Lender may assign to one or more Persons all or a portion of its rights and
obligations under this Loan Agreement.

          (b) Upon such execution and delivery, from and after the effective date specified in such
assignment, the assignee thereunder shall be a party hereto and have the rights and obligations of
Lender hereunder.

          (c) Lender may, in connection with any assignment or participation or proposed assignment or
participation pursuant to this Section 11.27, disclose to the assignee or participant or
proposed assignee or participant, as the case may be, any information relating to Borrower or any
of its Affiliates or to any aspect of the Loan that has been furnished to the Lender by or on
behalf of the Borrower or any of its Affiliates.

          Section 11.28 Set-Off.

          In addition to any rights and remedies of Lender provided by this Loan Agreement and by law,
the Lender shall have the right, without prior notice to Borrower, any such notice being expressly
waived by Borrower to the extent permitted by applicable law, upon any amount becoming due and
payable by Borrower hereunder (whether at the stated maturity, by acceleration or otherwise) to
set-off and appropriate and apply against such amount any and all deposits (general or special,
time or demand, provisional or final), in any currency, and any other credits, indebtedness or
claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured
or unmatured, at any time held or owing by Lender or any Affiliate thereof to or for the credit or
the account of Borrower. Lender agrees promptly to notify Borrower after any such set-off and
application made by Lender; provided that the failure to give such notice shall not affect
the validity of such set-off and application.

          Section 11.29 Component Notes.

          Lender, without in any way limiting Lender’s other rights hereunder, in its sole and absolute
discretion, shall have the right at any time to require Borrower to execute and deliver “component”
notes (including senior and junior notes) in replacement of the Note as evidence of the Loan, which
notes may be paid in such order of priority as may be designated by Lender, provided that
(i) the aggregate principal amount of such “component” notes shall equal the outstanding principal
balance of the Loan, (ii) the weighted average interest rate of all such “component” notes shall on
the date created equal the interest rate which was applicable to the Loan, (iii) the Debt Service
on all such “component” notes shall on the date created equal the Debt Service which was due under
the Loan immediately prior to the creation of such component notes and (iv) the other terms and
provisions of each of the “component” notes shall be identical in substance and substantially
similar in form to the Loan Documents. Borrower, at its cost and expense, shall cooperate with all
reasonable requests of Lender in order to establish the “component” notes and shall execute and
deliver such documents as shall reasonably be required

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by Lender and any Rating Agency in
connection therewith, all in form and substance reasonably satisfactory to Lender and satisfactory
to any Rating Agency, including, without limitation, the severance of security documents if
requested. In the event Borrower fails to execute and deliver such documents to Lender within five
(5) Business Days following such request by Lender, Borrower hereby absolutely and irrevocably
appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead to
make and execute all documents necessary or desirable to effect such transactions, Borrower
ratifying all that such attorney shall do by virtue thereof subject to the limitations set forth in
this Section 11.29.

          It shall be an Event of Default under this Agreement, the Note, the Mortgage and the other
Loan Documents if Borrower fails to comply with any of the terms, covenants or conditions of this
Section 11.29 within ten (10) Business Days of notice thereof.

          All legal fees and expenses incurred by Borrower in connection with this Section 11.29
(including costs and expenses incurred by Borrower pursuant to any requests made by Lender under
Section 11.29) shall be paid by Borrower except Borrower’s legal fees.

          Section 11.30 Approvals; Third Parties; Conditions.

          All approval rights retained or exercised by Lender with respect to Leases, contracts, plans,
studies and other matters are solely to facilitate Lender’s credit underwriting, and shall not be
deemed or construed as a determination that Lender has 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 Lender and Borrower and may not be enforced, nor relied upon, by any Person
other than Lender and Borrower. All conditions of the obligations of Lender hereunder, including
the obligation to make advances, if any, are imposed solely and exclusively for the benefit of
Lender, its successors and assigns, and no other Person shall have standing to require satisfaction
of such
conditions or be entitled to assume that Lender 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 Lender at any time in Lender’s sole discretion.

          Section 11.31 Limitation on Liability of Lender’s Officers, Employees, etc.

          Any obligation or liability whatsoever of Lender which may arise at any time under this
Agreement or any other Loan Document shall be satisfied, if at all, out of Lender’s interest in the
Property 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 Lender’s shareholders, directors,
officers, employees or agents, regardless of whether such obligation or liability is in the nature
of contract, tort or otherwise.

[NO FURTHER TEXT ON THIS PAGE]

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          IN WITNESS WHEREOF, the parties hereto have caused this Loan Agreement to be duly executed by
their duly authorized representatives, all as of the day and year first above written.

	 	 	 	 	 
	 	LENDER:

EUROHYPO AG, NEW YORK BRANCH, the
New York branch
of a German banking corporation

 	 
	 	By:  	/s/ Bryan Donohoe
 	 
	 	 	Name:  	Bryan Donohoe 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	     /s/ Jonathan Hirshey
 	 
	 	 	Name:  	Jonathan Hirshey 	 
	 	 	Title:  	Vice President 	 

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Loan Agreement to be duly executed by
their duly authorized representatives, all as of the day and year first above written.

	 	 	 	 	 
	 	BORROWER:

CEDAR-FRANKLIN VILLAGE LLC,

a Delaware limited liability company

 	 
	 	By:  	Cedar-Franklin Village 2 LLC, a Delaware limited liability company, its sole member
 	 
	 
	 	 	 
	 	By:  	Cedar Shopping Centers Partnership, L.P., a Delaware limited partnership, its sole member
 	 
	 
	 	 	 
	 	By:  	Cedar Shopping Centers, Inc., a Maryland corporation, its general partner
 	 
	 
	 	 	 
	 	By:  	
/s/ Brenda J. Walker
 	 
	 	 	Name:  	Brenda J. Walker 	 
	 	 	Title:  	Vice President 	 

 

 

SCHEDULE I

(RENT ROLL)

Schedule I

 

 

Oct 22 2004

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Approx	 	Base	 	 	 	 	 	 	 	 	 	 	 	 	 	(Money Owed)
	 	 	 	 	 	 	Call Up	 	Expiration	 	 	 	 	 	Square	 	Rent	 	Current	 	CAM	 	Tax	 	Ins	 	Account	 	Security
	 	 	Lease	 	Use	 	Date	 	Date	 	Start Date	 	Options	 	Feet	 	Sq Ft	 	Rent	 	Billing	 	Billing	 	Billing	 	Receivable	 	Deposit
	Shopping Center	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Taco Bell	 	restaurant	 	 	 	9-30-2011	 	9-22-1991	 	N/A	 	 	2,000	 	 	 	20.00	 	 	 	3,333.33	 	 	 	329.13	 	 	 	202.72	 	 	Annual	 	 	0.00	 	 	 	 	 
	 
	 	D’Angelos	 	restaurant	 	 	 	1-31-2008	 	1-2-1988	 	N/A	 	 	2,500	 	 	 	25.29	 	 	 	5,267.75	 	 	 	411.42	 	 	 	253.40	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Funco	 	games	 	 	 	8-31-2006	 	6-16-1994	 	N/A	 	 	1,500	 	 	 	23.00	 	 	 	2,875.00	 	 	 	189.67	 	 	 	152.04	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Radio Shack	 	electronics	 	8-01-2005	 	1-31-2006	 	1-01-1988	 	1-4yr	 	 	2,000	 	 	 	21.00	 	 	 	3,500.00	 	 	 	266.66	 	 	 	202.72	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Cellular One	 	cell phone	 	 	 	10-31-2006	 	5-01-1997	 	N/A	 	 	1,857	 	 	 	23.62	 	 	 	3,655.53	 	 	 	305.60	 	 	 	188.22	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Stop and Shop	 	supermarket	 	12-1-2007	 	7-31-2008	 	7-16-2008	 	1-5yr	 	 	55,503	 	 	 	16.04	 	 	 	74,211.07	 	 	 	3,825.98	 	 	Quarterly	 	Annual	 	 	68,091.50	 	 	 	 	 
	 	 	(Stop and Shop) Does not reflect road at front entrance which is ongoing and Includes CAM adjustment for 6 months, to be adjusted at year end	 	 	 	 	 	 	 	 
	 
	 	VIII Mall Liquors	 	liquor store	 	9-30-2004	 	9-30-2005	 	10-1-2000	 	2-5yr	 	 	3,550	 	 	 	21.47	 	 	 	6,076.71	 	 	 	584.21	 	 	 	340.71	 	 	Annual	 	 	 	 	 	 	2,975.00	 
	 
	 	Online Comm. (Nextel)	 	cell phone 	 	8-31-2005	 	05-31-2006	 	05-15-2001	 	1-5yr	 	 	1,500	 	 	 	27.00	 	 	 	3,374.59	 	 	 	246.85	 	 	 	137.50	 	 	Annual	 	 	1,846.96	 	 	 	6,000.00	 
	 
	 	Bath & Body Works	 	skin care	 	12-01-2010	 	08-31-2011	 	08/23/2001	 	2-5yr	 	 	2,500	 	 	 	22.00	 	 	 	4,583.33	 	 	 	411.42	 	 	 	230.00	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	KB Toys (chap l1)	 	toy store	 	 	 	01-31-2005	 	07-16-1988	 	N/A	 	 	14,414	 	 	 	10.25	 	 	 	12,311.96	 	 	 	1,783.31	 	 	Quarterly	 	Annual	 	 	19,259.28	 	 	 	 	 
	 
	 	Old Hunan Gourmet	 	vacant	 	 	 	 	 	 	 	N/A	 	 	3,407	 	 	 	0.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Coconuts	 	record store	 	 	 	3-31-2006	 	04-1-1988	 	N/A	 	 	4,986	 	 	 	18.50	 	 	 	7,686.75	 	 	 	820.53	 	 	 	505.38	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Elizabeth Grady	 	skin care	 	 	 	05/31/2009	 	05-28-1992	 	N/A	 	 	1,600	 	 	 	22.20	 	 	 	2,960.50	 	 	 	263.31	 	 	 	162.17	 	 	Annual	 	 	 	 	 	 	1,733.33	 
	 
	 	General Nutrition	 	health	 	 	 	07-31-2005	 	07-13-1995	 	N/A	 	 	1,709	 	 	 	18.50	 	 	 	2,634.71	 	 	 	281.24	 	 	 	173.22	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Weathervane (Chap 11)	 	chap 11	 	 	 	1-31-2006	 	03-07-1988	 	N/A	 	 	3,850	 	 	 	21.00	 	 	 	6,737.50	 	 	 	633.58	 	 	 	390.23	 	 	Annual	 	 	24,998.57	 	 	 	 	 
	 
	 	DressBarn	 	clothing	 	12-31-2004	 	06-30-2005	 	03-07-1988	 	1-4yr	 	 	10,150	 	 	 	21.46	 	 	 	18,152.55	 	 	 	1,670.35	 	 	 	1,028.80	 	 	Annual	 	 	0.00	 	 	 	5,000.00	 
	 
	 	Payless shoe	 	shoes	 	 	 	02-28-2008	 	03-07-1988	 	N/A	 	 	2,550	 	 	 	19.00	 	 	 	4,037.50	 	 	 	325.00	 	 	 	258.47	 	 	Annual	 	 	0.00	 	 	 	 	 
	 
	 	TJX (Marshalls)	 	clothing	 	07-31-2008	 	01-31-2009	 	07-16-1988	 	1-5yr	 	 	26,890	 	 	 	9.00	 	 	 	20,167.50	 	 	 	4,258.36	 	 	Quarterly	 	Annual	 	 	0.00	 	 	 	 	 
	 
	 	Pet Corner	 	pet store	 	09-01-2003	 	03/31/2005	 	04/01/2002	 	1-5yr	 	 	5,000	 	 	 	21.00	 	 	 	7,291.66	 	 	 	822.83	 	 	 	495.83	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	The Mens Warehouse	 	mens clothing	 	 	 	01-31-2008	 	10-01-1996	 	N/A	 	 	3,600	 	 	 	18.00	 	 	 	5,400.00	 	 	 	592.44	 	 	 	364.90	 	 	Annual	 	 	 	 	 	 	 	 
	***
	 	Future Salleys Alley	 	-lease signed-	 	 	 	07/31/2009	 	08/01/2004	 	N/A	 	 	3,000	 	 	 	22.75	 	 	 	5,687.50	 	 	 	493.30	 	 	 	413.19	 	 	Annual	 	 	 	 	 	 	3,600.00	 
	 
	 	Salleys Alley (fut. Bost. Hairs gift & home	 	 	 	12-31-2002	 	12-05-1987	 	N/A	 	 	1,800	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	Annual	 	 	0.00	 	 	 	0.00	 
	 
	 	Hairs Boston	 	hair care	 	 	 	10-31-2002	 	12-05-1987	 	N/A	 	 	1,411	 	 	 	23.04	 	 	 	2,709.36	 	 	 	232.20	 	 	 	143.02	 	 	Annual	 	 	 	 	 	 	3,527.49	 
	 
	 	Cambridge Eye (Chap 11)	 	eye care	 	 	 	12-31-2007	 	01-01-1988	 	N/A	 	 	2,400	 	 	 	21.22	 	 	 	4,243.60	 	 	 	394.96	 	 	 	243.26	 	 	Annual	 	 	1,223.67	 	 	 	 	 
	 
	 	Crystal Card & Gifts (Hallmar card store	 	 	 	01-31-2008	 	2-1-1988	 	N/A	 	 	4,949	 	 	 	18.00	 	 	 	7,423.50	 	 	 	814.44	 	 	 	501.63	 	 	Annual	 	 	-42.25	 	 	 	 	 
	 
	 	Papa Gino’s	 	restaurant	 	 	 	12-31-2007	 	12-08-1987	 	N/A	 	 	3,120	 	 	 	23.00	 	 	 	5,980.00	 	 	 	513.45	 	 	 	316.24	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Fleet National Bank	 	bank	 	08-01-2011	 	04-30-2012	 	04-08-2002	 	2-5yr	 	 	2,550	 	 	 	25.46	 	 	 	5,410.59	 	 	 	419.65	 	 	 	233.75	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Fei Yue (Teppanyaki)	 	japanese rest.	 	08-31-2011	 	08/31/2013	 	09-01-2003	 	1-5yr	 	 	3,908	 	 	 	20.00	 	 	 	6,513.33	 	 	 	455.93	 	 	 	407.08	 	 	Annual	 	 	 	 	 	 	11,945.50	 
	 
	 	Applebee’s	 	restaurant	 	08-15-2004	 	02-28-2005	 	02-15-1988	 	1-5yr	 	 	5,682	 	 	 	21.41	 	 	 	10,136.00	 	 	 	935.07	 	 	 	575.93	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Bank Boston (Fleet ATM)	 	Bank ATM	 	 	 	01-31-2008	 	01-15-1988	 	N/A	 	 	216	 	 	 	184.19	 	 	 	3,315.42	 	 	 	35.55	 	 	Quarterly	 	Annual	 	 	 	 	 	 	3,200.00	 
	 
	 	Longhorn Steakhouse	 	restaurant	 	08-31-2009	 	08-31-2010	 	08-12-2000	 	3-5yr	 	 	6,323	 	 	 	20.75	 	 	 	10,933.52	 	 	 	1,040.56	 	 	 	607.68	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Triple A	 	travel, Insur.	 	04-01-2006	 	12-31-2006	 	12/13/2001	 	1-5yr	 	 	3,546	 	 	 	20.02	 	 	 	5,915.00	 	 	 	584.05	 	 	 	325.00	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Mattress Discounters	 	mattresses	 	07-01-2005	 	12/31/2005	 	01-01-2001	 	3-5yr	 	 	3,908	 	 	 	20.00	 	 	 	6,513.33	 	 	 	643.13	 	 	 	374.52	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Village Photo current	 	photo	 	12-01-2007	 	08-31-2008	 	09-01-2003	 	1-5yr	 	 	1,967	 	 	 	21.00	 	 	 	3,442.25	 	 	 	323.70	 	 	 	188.50	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Blockbuster Video	 	video	 	 	 	07-31-2004	 	08-03-1999	 	N/A	 	 	3,550	 	 	 	16.00	 	 	 	4,733.33	 	 	 	584.21	 	 	Annual	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Village Photo (Old)	 	fut. stop shop	 	 	 	 	 	 	 	N/A	 	 	1,500	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Superior Ceaners (Old)	 	fut. stop shop	 	 	 	 	 	 	 	N/A	 	 	1,898	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Annual	 	 	0.00	 	 	 	 	 
	 
	 	L’Equips	 	hair care	 	06-01-2004	 	02-28-2005	 	03-01-2000	 	1-5yr	 	 	2,070	 	 	 	21.80	 	 	 	3,761.01	 	 	 	340.65	 	 	 	198.38	 	 	Annual	 	 	 	 	 	 	1,100.00	 
	 
	 	Panera Bread	 	restaurant	 	02-01-2011	 	06-30-2011	 	06/07/2001	 	3-5yr	 	 	3,908	 	 	 	22.25	 	 	 	7,246.08	 	 	 	643.13	 	 	 	370.00	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Total	 	 	 	 	 	 	 	 	 	 	 	 	208,772	 	 	 	 	 	 	 	288,221.76	 	 	 	26,475.87	 	 	 	9,984.49	 	 	 	0.00	 	 	 	115,377.73	 	 	 	39,081.32	 

Oct 22 2004

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Approx	 	Base	 	 	 	 	 	 	 	 	 	 	 	 	 	(Money Owed)
	 	 	 	 	 	 	Call Up	 	Expiration	 	 	 	 	 	Square	 	Rent	 	Current	 	CAM	 	Tax	 	Ins	 	Account	 	Security
	 	 	Lease	 	 	 	Date	 	Date	 	Start Date	 	Options	 	Feet	 	Sq Ft	 	Rent	 	Billing	 	Billing	 	Billing	 	Receivable	 	Deposit
	500 Franklin Village Drive	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	*
	 	Dr. Robert Gushard	 	opthomologist	 	10-01-2003	 	06-30-2005	 	09-01-1993	 	N/A	 	 	1,593	 	 	 	21.45	 	 	 	2,847.06	 	 	 	132.75	 	 	 	132.75	 	 	 	39.82	 	 	 	 	 	 	 	863.90	 
	*
	 	Milford Regional (PT)	 	Physical thera.	 	10-01-2006	 	06-30-2008	 	07-01-2003	 	1-5yr	 	 	3,937	 	 	 	20.10	 	 	 	6,594.48	 	 	 	328.08	 	 	 	328.08	 	 	 	98.43	 	 	 	 	 	 	 	 	 
	*
	 	Marriott Management	 	corp. office	 	 	 	12-31-2005	 	05-01-1992	 	1-5yr	 	 	3,150	 	 	 	21.66	 	 	 	5,686.93	 	 	 	262.50	 	 	 	262.50	 	 	 	78.75	 	 	 	 	 	 	 	 	 
	 
	 	Century 21	 	real estate	 	 	 	01-31-2008	 	01-15-1999	 	N/A	 	 	2,565	 	 	 	21.90	 	 	 	4,681.05	 	 	 	276.74	 	 	 	254.36	 	 	Annual	 	 	 	 	 	 	3,852.00	 
	*
	 	Hormel Foods	 	corp. office	 	 	 	01-31-2007	 	02-01-1993	 	N/A	 	 	2,734	 	 	 	24.33	 	 	 	5,542.19	 	 	 	227.83	 	 	 	227.83	 	 	 	68.35	 	 	 	 	 	 	 	 	 

 

			
	*	 	denotes office tenants (gross rent plus electricity)

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Approx	 	Base	 	 	 	 	 	 	 	 	 	 	 	 	 	(Money Owed)
	 	 	 	 	 	 	Call Up	 	Expiration	 	 	 	 	 	Square	 	Rent	 	Current	 	CAM	 	Tax	 	Ins	 	Account	 	Security
	 	 	Lease	 	 	 	Date	 	Date	 	Start Date	 	Options	 	Feet	 	Sq Ft	 	Rent	 	Billing	 	Billing	 	Billing	 	Receivable	 	Deposit
	*
	 	Dr. Jamila Khalil	 	dentist	 	 	 	12-31-2006	 	12-20-1994	 	N/A	 	 	1,500	 	 	 	19.69	 	 	 	2,461.33	 	 	 	125.00	 	 	 	125.00	 	 	 	37.50	 	 	 	 	 	 	 	1,687.50	 
	*
	 	Mortgage Financial	 	mortgage	 	 	 	05-31-2005	 	06-01-2002	 	N/A	 	 	2,481	 	 	 	17.59	 	 	 	3,635.91	 	 	 	231.56	 	 	 	231.56	 	 	 	69.47	 	 	 	 	 	 	 	4,168.50	 
	*
	 	North American (Shelter)	 	mortgage	 	 	 	05-31-2004	 	05-07-2000	 	N/A	 	 	841	 	 	 	21.34	 	 	 	1,495.56	 	 	 	70.08	 	 	 	70.08	 	 	 	21.03	 	 	 	 	 	 	 	 	 
	*
	 	Solutions	 	office	 	 	 	02/28/2006	 	02/15/1993	 	N/A	 	 	846	 	 	 	21.69	 	 	 	1,529.05	 	 	 	70.08	 	 	 	70.08	 	 	 	21.03	 	 	 	 	 	 	 	946.13	 
	 
	 	Pepper Terrace (Godduci’s)	 	restaurant	 	 	 	01-31-2007	 	01-15-1999	 	N/A	 	 	2,000	 	 	 	21.90	 	 	 	3,649.95	 	 	 	215.78	 	 	 	176.20	 	 	Annual	 	 	 	 	 	 	4,781.24	 
	 
	 	Sylvans Learning Center	 	learning ctr.	 	03-30-2005	 	09-30-2005	 	09-08-2000	 	1-5yr	 	 	3,200	 	 	 	18.25	 	 	 	4,866.67	 	 	 	345.25	 	 	 	306.67	 	 	Annual	 	 	 	 	 	 	 	 
	*
	 	E-Pro Engineering	 	engineering	 	 	 	11-30-2005	 	11-15-2000	 	N/A	 	 	1,098	 	 	 	22.29	 	 	 	2,039.10	 	 	 	91.50	 	 	 	91.50	 	 	 	27.45	 	 	 	 	 	 	 	 	 
	 
	 	Voice Box	 	cell phone	 	05-01-2005	 	01-31-2006	 	01-20-2003	 	1-3yr	 	 	1,000	 	 	 	22.04	 	 	 	1,836.46	 	 	 	107.89	 	 	 	95.83	 	 	Annual	 	 	 	 	 	 	1,791.66	 
	 
	 	California Nalls	 	nalls	 	10-31-2004	 	10-31-2005	 	10-31-1997	 	1-5yr	 	 	1,000	 	 	 	24.04	 	 	 	2,003.41	 	 	 	107.89	 	 	 	87.90	 	 	Annual	 	 	 	 	 	 	1,583.33	 
	 
	 	Mailboxes (UPS)	 	mall	 	 	 	04/30/2009	 	07-15-1997	 	1-5yr	 	 	1,818	 	 	 	25.00	 	 	 	3,787.91	 	 	 	196.15	 	 	 	160.11	 	 	Annual	 	 	 	 	 	 	2,878.50	 
	 
	 	BC Exec. Realty (Remax)	 	real estate	 	06-01-2008	 	02-28-2009	 	02-13-2002	 	1-7yr	 	 	4,000	 	 	 	21.09	 	 	 	7,030.40	 	 	 	431.57	 	 	 	373.33	 	 	Annual	 	 	 	 	 	 	 	 
	 
	 	Smallage Dental	 	dentist	 	 	 	11-30-2005	 	11-15-1995	 	N/A	 	 	1,600	 	 	 	19.84	 	 	 	2,645.33	 	 	 	172.63	 	 	 	142.87	 	 	Annual	 	 	 	 	 	 	1,933.33	 
	 
	 	Golf USA — VACANT	 	golf-sports	 	 	 	02-28-2001	 	03-01-1995	 	N/A	 	 	2,000	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	Annual	 	 	17,819.75	 	 	 	0.00	 
	 
	 	Curves For Woman	 	exercise	 	09-01-2005	 	04-30-2006	 	05-01-2001	 	1-5yr	 	 	1,200	 	 	 	19.96	 	 	 	1,995.69	 	 	 	129.47	 	 	 	112.00	 	 	Annual	 	 	 	 	 	 	1,800.00	 
	 
	 	EnviroSupply—Vacant	 	testing equip.	 	02-01-2006	 	11-30-2006	 	11-15-2001	 	N/A	 	 	1,200	 	 	 	0.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Annual	 	 	9,800.60	 	 	 	 	 
	*
	 	Northeast Cinema signed	 	office	 	 	 	12/30/2006	 	09/01/2004	 	N/A	 	 	2,630	 	 	 	0.00	 	 	$	5,125.75	 	 	GROSS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	*
	 	Murphy Piercey	 	accountant	 	 	 	02/28/2009	 	02-17-1999	 	N/A	 	 	490	 	 	 	19.97	 	 	 	815.37	 	 	 	40.83	 	 	 	40.83	 	 	 	12.25	 	 	 	 	 	 	 	765.62	 
	 
	 	Sun Pro	 	tanning salon	 	08-01-2006	 	04-30-2007	 	05-01-2002	 	1-5yr	 	 	1,600	 	 	 	21.01	 	 	 	2,801.67	 	 	 	172.63	 	 	 	149.33	 	 	Annual	 	 	0.00	 	 	 	 	 
	 
	 	Total	 	 	 	 	 	 	 	 	 	 	 	 	44,483	 	 	 	 	 	 	 	73,071.27	 	 	 	3,736.21	 	 	 	3,438.81	 	 	 	474.08	 	 	 	27,620.35	 	 	 	27,051.71	 

Oct 22 2004

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Approx	 	Base	 	 	 	 	 	 	 	 	 	 	 	 	 	(Money Owed)
	 	 	 	 	 	 	Call Up	 	Expiration	 	 	 	 	 	Square	 	Rent	 	Current	 	CAM	 	Tax	 	Ins	 	Account	 	Security
	 	 	Lease	 	 	 	Date	 	Date	 	Start Date	 	Options	 	Feet	 	Sq Ft	 	Rent	 	Billing	 	Billing	 	Billing	 	Receivable	 	Deposit
	Executive Center	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Strata Bank	 	banking	 	09-30-2007	 	09-30-2008	 	10-01-1995	 	2-5yr	 	 	5,023	 	 	 	32.11	 	 	 	13,845.82	 	 	 	1,778.51	 	 	Quarterly	 	Annual	 	 	 	 	 	 	10,611.66	 
	 
	 	Strata Bank	 	banking	 	09-30-2007	 	09-30-2008	 	11-01-2001	 	2-5yr	 	 	1,572	 	 	 	28.88	 	 	 	3,783.73	 	 	 	556.60	 	 	Quarterly	 	Annual	 	 	 	 	 	 	 	 
	*
	 	Guida McClafferty	 	accountant	 	 	 	09-30-2004	 	10-01-1990	 	N/A	 	 	1,866	 	 	 	21.34	 	 	 	3,318.33	 	 	 	155.50	 	 	 	155.50	 	 	 	46.65	 	 	 	 	 	 	 	1,348.42	 
	*
	 	Advantage Title	 	title examiner	 	 	 	05-31-2007	 	06-01-2002	 	N/A	 	 	2,837	 	 	 	22.87	 	 	 	5,406.53	 	 	 	236.42	 	 	 	236.42	 	 	 	70.90	 	 	 	 	 	 	 	1,666.66	 
	*
	 	Logic Vision	 	engineering	 	07-01-2007	 	12/31/2007	 	12-18-1999	 	1-3yr	 	 	1,156	 	 	 	22.90	 	 	 	2,205.83	 	 	 	96.33	 	 	 	96.33	 	 	 	28.91	 	 	 	 	 	 	 	2,023.00	 
	*
	 	Next Level	 	consulting	 	04-30-2008	 	10-30-2008	 	11-01-2003	 	1-5yr	 	 	1,797	 	 	 	20.45	 	 	 	3,062.87	 	 	 	236.42	 	 	 	236.42	 	 	 	70.92	 	 	 	 	 	 	 	3,606.63	 
	*
	 	Applebees Northeast	 	regional office	 	10-01-2005	 	08-30-2008	 	07-01-1998	 	1-2yr	 	 	2,448	 	 	 	22.48	 	 	 	4,586.73	 	 	 	204.00	 	 	 	204.00	 	 	 	61.20	 	 	 	 	 	 	 	 	 
	 
	 	Strata Bank	 	banking	 	09-30-2007	 	09-30-2008	 	06-01-1998	 	2-5yr	 	 	1,700	 	 	 	26.71	 	 	 	3,783.73	 	 	 	601.93	 	 	Quarterly	 	Annual	 	 	 	 	 	 	 	 
	*
	 	Kimberly Clark-Vacant	 	regional office	 	 	 	 	 	 	 	N/A	 	 	2,550	 	 	 	x	 	 	 	x	 	 	 	x	 	 	 	x	 	 	 	x	 	 	 	 	 	 	 	 	 
	*
	 	Kendig Ratcliffe	 	accountant	 	 	 	12-31-2004	 	12-18-1999	 	1-5yr	 	 	1,673	 	 	 	21.46	 	 	 	2,991.70	 	 	 	139.92	 	 	 	139.92	 	 	 	41.83	 	 	 	 	 	 	 	2,927.91	 
	*
	 	Gilmore Rees & Carlson	 	lawyers	 	 	 	10-31-2006	 	12-01-2001	 	N/A	 	 	7,670	 	 	 	24.58	 	 	 	15,710.33	 	 	 	639.17	 	 	 	639.17	 	 	 	191.74	 	 	 	 	 	 	 	 	 
	 
	 	Strata Bank	 	banking	 	09-30-2007	 	09-30-2008	 	11-01-2001	 	2-5yr	 	 	547	 	 	 	28.88	 	 	 	1,316.54	 	 	 	193.68	 	 	Quarterly	 	Annual	 	 	 	 	 	 	 	 
	*
	 	Jepsky and Sack	 	lawyers	 	06-01-2008	 	02-28-2009	 	03-01-1988	 	1-5yr	 	 	2,907	 	 	 	21.06	 	 	 	5,100.77	 	 	 	242.25	 	 	 	242.25	 	 	 	72.68	 	 	 	 	 	 	 	 	 
	*
	 	Calarese Development Corp	 	office	 	 	 	01-31-2002	 	04-01-1988	 	N/A	 	 	1,786	 	 	 	19.94	 	 	 	2,968.03	 	 	 	150.00	 	 	 	150.00	 	 	 	45.00	 	 	 	 	 	 	 	 	 
	 
	 	Total	 	 	 	 	 	 	 	 	 	 	 	 	35,532	 	 	 	 	 	 	 	68,080.94	 	 	 	5,230.73	 	 	 	2,100.01	 	 	 	629.83	 	 	 	0.00	 	 	 	22,184.28	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TOTAL NET LEASE SPACE	 	 	 	 	 	 	288,787	 	 	 	 	 	 	 	429,374	 	 	 	35,443	 	 	 	15,523	 	 	 	1,104	 	 	 	142,998	 	 	 	88,317	 

 

			

	*	 	denotes office tenants (gross rent plus electricity)
	 
	***	 	Rent waived until 12/1/2004

 

SCHEDULE II

(REQUIRED REPAIRS)

	 	 	 	 	 	 	 	 	 
	Property	 	Required Repair	 	Amount	 	Deadline
	Pavement Repairs

	 	Parking area cracks require repairs
	 	$	3,500	 	 	1 year
	Masonry Repairs

	 	Repair masonry control joints
	 	$	2,500	 	 	1 year
	Window Repairs

	 	Re-caulk storefront windows
	 	$	2,500	 	 	1 year
	Roof Repairs

	 	Investigate and repair roof
	 	$	2,500	 	 	1 year
	Sprinkler Head Repairs

	 	Resolve sprinkler head deficiencies

per Massachusetts code
	 	$	7,250	 	 	1 year
	Exposure Protection

	 	Add Applebee Tenant sprinkler heads
	 	$	4,500	 	 	1 year
	Standpipe Separation

	 	Separate standpipe hose valves from
sprinkler system in Buildings J and 1100
	 	$	13,000	 	 	1 year
	Exterior Alarms

	 	Add exterior audible alarms
	 	$	3,200	 	 	1 year
	Control Valves

	 	Add sprinkler control valves
	 	$	2,000	 	 	1 year
	Fire Pump Bearings

	 	Add fire pump bearing
	 	$	500	 	 	1 year
	Electrical Panel

	 	Infrared scan and maintain electric
panels
	 	$	3,000	 	 	1 year
	Electric Code Violation

	 	An electrical should verify the fire
pump feeder is not tapped
	 	$	1,500	 	 	1 year

Schedule II

 

 

SCHEDULE III

(ORGANIZATIONAL CHART)

Schedule III

 

 

Franklin Village
Organizational Chart

 

 

SCHEDULE IV

EUROHYPO AG, NEW YORK BRANCH

(Lender)

— and —

 

(Tenant)

SUBORDINATION, NON-DISTURBANCE

AND ATTORNMENT AGREEMENT

Dated:

Location:

Section:

Block:

Lot:

County:

PREPARED BY AND UPON

RECORDATION RETURN TO:

Cadwalader, Wickersham & Taft LLP

100 Maiden Lane

New York, New York 100038

Attention: Michael G. Kavourias, Esq.

Facsimile No.: (212) 504-6666

File No.:

Title No.:

Schedule IV - Page 1

 

SUBORDINATION, NON DISTURBANCE AND ATTORNMENT AGREEMENT

          THIS SUBORDINATION, NON DISTURBANCE AND ATTORNMENT AGREEMENT (this “Agreement”) is
made as of the                      day of                                         , 20      by and between EUROHYPO AG, NEW YORK BRANCH, the
New York branch of a German banking corporation, having an address at 1114 Avenue of the Americas,
Twenty-Ninth Floor, New York, New York 10036 (“Lender”), and ____________________________, having
an address at ____________________________ (“Tenant”).

RECITALS:

          A. Lender has made a loan in the approximate amount of $_______ to Landlord (defined
below), which Loan is given pursuant to the terms and conditions of that certain Loan Agreement
dated ________________, 20__, between Lender and Landlord (the “Loan Agreement”). The Loan
is evidenced by a certain Promissory Note dated ________________, 20__, given by Landlord to Lender
(the “Note”) and secured by a certain [Mortgage][Deed of Trust] and Security Agreement
dated ______________, 20__, given by Landlord to Lender (the “Mortgage”), which encumbers
the fee estate of Landlord in certain premises described in Exhibit A attached hereto (the
“Property”);

          B. Tenant occupies a portion of the Property under and pursuant to the provisions of a
certain lease dated _________________, ____ between _________________, as landlord
(“Landlord”) and Tenant, as tenant (the “LEASE”); and

          C. Tenant has agreed to subordinate the Lease to the Mortgage and to the lien thereof and
Lender has agreed to grant non-disturbance to Tenant under the Lease on the terms and conditions
hereinafter set forth.

AGREEMENT:

          For good and valuable consideration, Tenant and Lender agree as follows:

          1. Subordination. Tenant agrees that the Lease and all of the terms, covenants and
provisions thereof and all rights, remedies and options of Tenant thereunder are and shall at all
times continue to be subject and subordinate in all respects to the Mortgage and to the lien
thereof and all terms, covenants and conditions set forth in the Mortgage and the Loan Agreement
including without limitation all renewals, increases, modifications, spreaders, consolidations,
replacements and extensions
thereof and to all sums secured thereby with the same force and effect as if the Mortgage and Loan
Agreement had been executed, delivered and (in the case of the Mortgage) recorded prior to the
execution and delivery of the Lease.

          2. Non-Disturbance. Lender agrees that if any action or proceeding is commenced by
Lender for the foreclosure of the Mortgage or the sale of the Property, Tenant shall not be named
as a party therein unless such joinder shall be required by law, provided, however, such
joinder shall not result in the termination of the Lease or disturb the Tenant’s

Schedule IV - Page 2

 

possession or use of the premises demised thereunder, and the sale of the Property in any such
action or proceeding and the exercise by Lender of any of its other rights under the Note, the
Mortgage and the Loan Agreement shall be made subject to all rights of Tenant under the Lease,
provided that at the time of the commencement of any such action or proceeding or at the time of
any such sale or exercise of any such other rights (a) the term of the Lease shall have commenced
pursuant to the provisions thereof, (b) Tenant shall be in possession of the premises demised under
the Lease, (c) the Lease shall be in full force and effect and (d) Tenant shall not be in default
under any of the terms, covenants or conditions of the Lease or of this Agreement on Tenant’s part
to be observed or performed beyond the expiration of any applicable notice or grace periods.

          3. Attornment. Lender and Tenant agree that upon the conveyance of the Property by
reason of the foreclosure of the Mortgage or the acceptance of a deed or assignment in lieu of
foreclosure or otherwise, the Lease shall not be terminated or affected thereby (at the option of
the transferee of the Property (the “Transferee”) if the conditions set forth in Section 2 above
have not been met at the time of such transfer) but shall continue in full force and effect as a
direct lease between the Transferee and Tenant upon all of the terms, covenants and conditions set
forth in the Lease and in that event, Tenant agrees to attorn to the Transferee and the Transferee
shall accept such attornment, provided, however, that the provisions of the Mortgage and the Loan
Agreement shall govern with respect to the disposition of any casualty insurance proceeds or
condemnation awards and the Transferee shall not be (a) obligated to complete any construction work
required to be done by Landlord pursuant to the provisions of the Lease or to reimburse Tenant for
any construction work done by Tenant, (b) liable (i) for Landlord’s failure to perform any of its
obligations under the Lease which have accrued prior to the date on which the Transferee shall
become the owner of the Property, or (ii) for any act or omission of Landlord, whether prior to or
after such foreclosure or sale, (c) required to make any repairs to the Property or to the premises
demised under the Lease required as a result of fire, or other casualty or by reason of
condemnation unless the Transferee shall be obligated under the Lease to make such repairs and
shall have received sufficient casualty insurance proceeds or condemnation awards to finance the
completion of such repairs, (d) required to make any capital improvements to the Property or to the
premises demised under the Lease which Landlord may have agreed to make, but had not completed, or
to perform or provide any services not related to possession or quiet enjoyment of the premises
demised under the Lease, (e) subject to any offsets, defenses, abatements or counterclaims which
shall have accrued to Tenant against Landlord prior to the date upon which the Transferee shall
become the owner of the Property, (f) liable for the return of rental security deposits, if any,
paid by Tenant to Landlord in accordance with the Lease unless such sums are actually received by
the Transferee, (g) bound by any payment of rents, additional rents or other sums which Tenant may
have paid more than one (1) month in advance to any prior Landlord unless (i) such sums are
actually received by the Transferee or (ii) such prepayment shall have been expressly approved of
by the Transferee, (h) bound to make any payment to Tenant which was required under the Lease, or
otherwise, to be made prior to the time the Transferee succeeded to Landlord’s interest, (i) bound
by any agreement amending, modifying or terminating the Lease made without the Lender’s prior
written consent prior to the time the Transferee succeeded to Landlord’s interest or (j) bound by
any assignment of the Lease or sublease of the Property, or any portion thereof, made prior to the
time the Transferee succeeded to Landlord’s interest other than if pursuant to the provisions of
the Lease.

Schedule IV - Page 3

 

          4. Notice to Tenant. After notice is given to Tenant by Lender that the Landlord is in
default under the Note and the Mortgage and that the rentals under the Lease should be paid to
Lender pursuant to the terms of the assignment of leases and rents executed and delivered by
Landlord to Lender in connection therewith, Tenant shall thereafter pay to Lender or as directed by
the Lender, all rentals and all other monies due or to become due to Landlord under the Lease and
Landlord hereby expressly authorizes Tenant to make such payments to Lender and hereby releases and
discharges Tenant from any liability to Landlord on account of any such payments.

          5. Lender’s Consent. Tenant shall not, without obtaining the prior written consent of
Lender, (a) enter into any agreement amending, modifying or terminating the Lease, (b) prepay any
of the rents, additional rents or other sums due under the Lease for more than one (1) month in
advance of the due dates thereof, (c) voluntarily surrender the premises demised under the Lease or
terminate the Lease without cause or shorten the term thereof, or (d) assign the Lease or sublet
the premises demised under the Lease or any part thereof other than pursuant to the provisions of
the Lease; and any such amendment, modification, termination, prepayment, voluntary surrender,
assignment or subletting, without Lender’s prior consent, shall not be binding upon Lender.

          6. Lender to Receive Notices. Tenant shall provide Lender with copies of all written
notices sent to Landlord pursuant to the Lease simultaneously with the transmission of such notices
to the Landlord. Tenant shall notify Lender of any default by Landlord under the Lease which would
entitle Tenant to cancel the Lease or to an abatement of the rents, additional rents or other sums
payable thereunder, and agrees that, notwithstanding any provisions of the Lease to the contrary,
no notice of cancellation thereof or of such an abatement shall be effective unless Lender shall
have received notice of default giving rise to such cancellation or abatement and shall have failed
within sixty (60) days after
receipt of such notice to cure such default, or if such default cannot be cured within sixty (60)
days, shall have failed within sixty (60) days after receipt of such notice to commence and
thereafter diligently pursue any action necessary to cure such default.

          7. Notices. All notices or other written communications hereunder shall be deemed to
have been properly given (i) upon delivery, if delivered in person or by facsimile transmission
with receipt acknowledged by the recipient thereof and confirmed by telephone by sender, (ii) one
(1) Business Day (hereinafter defined) after having been deposited for overnight delivery with any
reputable overnight courier service, or (iii) three (3) Business Days after having been deposited
in any post office or mail depository regularly maintained by the U.S. Postal Service and sent by
registered or certified mail, postage prepaid, return receipt requested, addressed as follows:

          If to Tenant:

_____________________________

_____________________________

_____________________________

Attention: ____________________

Facsimile No.: __________________

Schedule IV - Page 4

 

          If to Lender:

Eurohypo AG, New York Branch

1114 Avenue of the Americas

Twenty-Ninth Floor

New York, New York 10036

Attention: Head of Portfolio Operations

Facsimile No.: (212) 479-5800

          With a copy to:

Eurohypo AG, New York Branch

1114 Avenue of the Americas

Twenty-Ninth Floor

New York, New York 10036

Attention: Legal Director

Facsimile No.: (212) 479-5800

          With a copy to:

Cadwalader, Wickersham & Taft LLP

100 Maiden Lane

New York, New York 100038

Attention: Michael G. Kavourias, Esq.

Facsimile No.: (212) 504-6666

or addressed as such party may from time to time designate by written notice to the other parties.
For purposes of this Section, the term “Business Day” shall mean a day on which commercial
banks are not authorized or required by law to close in New York, New York.

          Either party by notice to the other may designate additional or different addresses for
subsequent notices or communications.

          8. Joint and Several Liability. If Tenant consists of more than one person, the
obligations and liabilities of each such person hereunder shall be joint and several. This
Agreement shall be binding upon and inure to the benefit of Lender and Tenant and their respective
successors and assigns.

          9. Definitions. The term “Lender” as used herein shall include the successors
and assigns of Lender and any person, party or entity which shall become the owner of the Property
by reason of a foreclosure of the Mortgage or the acceptance of a deed or assignment in lieu of
foreclosure or otherwise. The term “Landlord” as used herein shall mean and include the
present landlord under the Lease and such landlord’s predecessors and successors in interest under
the Lease, but shall not mean or include Lender. The term “Property” as used herein shall
mean the Property, the improvements now or hereafter located thereon and the estates therein
encumbered by the Mortgage.

Schedule IV - Page 5

 

          10. No Oral Modifications. This Agreement may not be modified in any manner or
terminated except by an instrument in writing executed by the parties hereto.

          11. Governing Law. This Agreement shall be deemed to be a contract entered into
pursuant to the laws of the State where the Property is located and shall in all respects be
governed, construed, applied and enforced in accordance with the laws of the State where the
Property is located.

          12. Inapplicable Provisions. If any term, covenant or condition of this Agreement is
held to be invalid, illegal or unenforceable in any respect, this Agreement shall be construed
without such provision.

          13. Duplicate Originals; Counterparts. This Agreement may be executed in any number of
duplicate originals and each duplicate original shall be deemed to be an original. This Agreement
may be executed in several counterparts, each of which counterparts shall be deemed an original
instrument and all of which together shall constitute a single Agreement. The failure of any party
hereto to execute this Agreement, or any counterpart hereof, shall not relieve the other
signatories from their obligations hereunder.

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

          15. Transfer of Loan. Lender may sell, transfer and deliver the Note and assign the
Mortgage, this Agreement and the other documents executed in connection therewith to one or more
investors in the secondary mortgage market (“Investors”). In connection with such sale,
Lender may retain or assign responsibility for servicing the loan, including the Note, the
Mortgage, this Agreement and the other documents executed in connection therewith, or may delegate
some or all of such responsibility and/or obligations to a servicer including, but not limited to,
any subservicer or master servicer, on behalf of the Investors. All references to Lender herein
shall refer to and include any such servicer to the extent applicable.

          16. Further Acts. Tenant will, at the cost of Tenant, and without expense to Lender,
do, execute, acknowledge and deliver all and every such further acts and assurances as Lender
shall, from time to time, require, for the better assuring and confirming unto Lender the property
and rights hereby intended now or hereafter so to be, or for carrying out the intention or
facilitating the performance of the terms of this Agreement or for filing, registering or recording
this Agreement, or for complying with all applicable laws.

          17. Limitations on Lender’s Liability. Tenant acknowledges that Lender is obligated
only to Landlord to make the Loan upon the terms and subject to the conditions set forth in the
Loan Agreement. In no event shall Lender or any purchaser of the Property at foreclosure sale or
any grantee of the Property named in a deed-in-lieu of foreclosure, nor any heir, legal
representative, successor, or assignee of Lender or any such purchaser or grantee (collectively the
Lender, such purchaser, grantee, heir, legal representative, successor or assignee, the
“Subsequent Landlord”) have any personal liability for the obligations of Landlord under
the Lease and should the Subsequent Landlord succeed to the interests of the

Schedule IV - Page 6

 

Landlord under the
Lease, Tenant shall look only to the estate and property of any such Subsequent Landlord in the
Property for the satisfaction of Tenant’s remedies for the collection of a judgment (or other
judicial process) requiring the payment of money in the event of any default by any Subsequent
Landlord as landlord under the Lease, and no other property or assets of any Subsequent Landlord
shall be subject to levy, execution or other enforcement procedure for the satisfaction of Tenant’s
remedies under or with respect to the Lease; provided, however, that the Tenant may
exercise any other right or remedy provided thereby or by law in the event of any failure by
Subsequent Landlord to perform any such material obligation.

Schedule IV - Page 7

 

          IN WITNESS WHEREOF, Lender and Tenant have duly executed this Agreement as of the date first
above written.

	 	 	 	 	 
	 	LENDER:

EUROHYPO AG, NEW YORK BRANCH, the New York branch of a German banking corporation

 	 
	 	By:  	/s/ Bryan Donohoe
 	 
	 	 	Name:  	Bryan Donohoe 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	     /s/ Jonathan Hirshey
 	 
	 	 	Name:  	Jonathan Hirshey 	 
	 	 	Title:  	Vice President 	 
	 

 

 

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

Schedule IV - Page 9

 

ACKNOWLEDGMENTS

[INSERT STATE SPECIFIC ACKNOWLEDGMENT]

Schedule IV - Page 10

 

EXHIBIT A

LEGAL DESCRIPTION

Schedule IV - Page 11

 

SCHEDULE V

(DESCRIPTION OF REA)

Intentionally Deleted

Schedule. V

 

 

SCHEDULE VI

(DESCRIPTION/DIAGRAM OF RELEASE PARCEL)exv10w3

Exhibit 10.3

 

 

CEDAR-FRANKLIN VILLAGE LLC,

a Delaware limited liability company, as mortgagor

(Borrower)

to

EUROHYPO AG, NEW YORK BRANCH, as mortgagee

(Lender)

 

MORTGAGE AND

SECURITY AGREEMENT

 

Dated: As of November 1, 2004

Location: Franklin, Massachusetts

County: Norfolk

PREPARED BY AND UPON

RECORDATION RETURN TO:

Cadwalader, Wickersham & Taft LLP

100 Maiden Lane

New York, New York 100038

Attention: Michael G. Kavourias, Esq.

Facsimile No.: (212) 504-6666

 

 

 

 

MORTGAGE AND SECURITY AGREEMENT

     THIS MORTGAGE AND SECURITY AGREEMENT (this “SECURITY INSTRUMENT”) is made as of this 1st day
of November, 2004, by CEDAR-FRANKLIN VILLAGE LLC, a Delaware limited liability company, having its
principal place of business at c/o Cedar Shopping Centers Partnership, L.P., 44 South Bayles
Avenue, Suite 304, Port Washington, NY 11050, as mortgagor (“BORROWER”) for the benefit of EUROHYPO
AG, NEW YORK BRANCH, the New York branch of a German banking corporation, having an address at 1114
Avenue of the Americas, Twenty-Ninth Floor, New York, New York 10036, as mortgagee (“LENDER”).

WITNESSETH:

     WHEREAS, this Security Instrument is given to secure a loan (the “LOAN”) in the principal sum
of FORTY-THREE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($43,500,000.00) pursuant to that
certain Loan Agreement dated as of the date hereof between Borrower and Lender (as the same may be
amended, restated, replaced, supplemented or otherwise modified from time to time, the “LOAN
AGREEMENT”) and evidenced by that certain Promissory Note dated the date hereof made by Borrower to
Lender (such Note, together with all extensions, renewals, replacements, restatements or
modifications thereof being hereinafter referred to as the “NOTE”);

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

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

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

Article 1 — GRANTS OF SECURITY

     Section 1.1 PROPERTY MORTGAGED. Borrower does hereby irrevocably mortgage, grant, bargain,
sell, pledge, assign, warrant, transfer and convey to Lender and its successors and

 

 

assigns the following property, rights, interests and estates now owned, or hereafter acquired
by Borrower (collectively, the “PROPERTY”): \

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

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

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

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

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

     (f) Fixtures. All Equipment now owned, or the ownership of which is hereafter acquired, by
Borrower which is so related to the Land and Improvements forming part of the Property that it is
deemed fixtures or real property under the law of the particular state in which the Equipment is
located, including, without limitation, all building or construction materials intended for
construction, reconstruction, alteration or repair of or installation on the Property, construction
equipment, appliances, machinery, plant equipment, fittings, apparatuses, fixtures and other items
now or hereafter attached to, installed in or used in connection with (temporarily or permanently)
any of the Improvements or the Land, including, but not limited to, engines, devices for the
operation of pumps, pipes, plumbing, cleaning, call and sprinkler systems, fire extinguishing
apparatuses and equipment, heating, ventilating, plumbing,

-2-

 

laundry, incinerating, electrical, air conditioning and air cooling equipment and systems, gas
and electric machinery, appurtenances and equipment, pollution control equipment, security systems,
disposals, dishwashers, refrigerators and ranges, recreational equipment and facilities of all
kinds, and water, gas, electrical, storm and sanitary sewer facilities, utility lines and equipment
(whether owned individually or jointly with others, and, if owned jointly, to the extent of
Borrower’s interest therein) and all other utilities whether or not situated in easements, all
water tanks, water supply, water power sites, fuel stations, fuel tanks, fuel supply, and all other
structures, together with all accessions, appurtenances, additions, replacements, betterments and
substitutions for any of the foregoing and the proceeds
thereof (collectively, the “FIXTURES”). Notwithstanding the foregoing, “Fixtures” shall not include
any property which tenants are entitled to remove pursuant to leases except to the extent that
Borrower shall have any right or interest therein;

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

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

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

     (j) Insurance Proceeds. All proceeds in respect of the Property under any insurance policies
covering the Property, which are required by Lender under the Loan Agreement, including, without
limitation, the right to receive and

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apply the proceeds of any insurance, judgments, or settlements made in lieu thereof, for
damage to the Property;

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

     (l) Rights. The right, in the name and on behalf of Borrower, to appear in and defend any
action or proceeding brought with respect to the Property and to commence any action or proceeding
to protect the interest of Lender in the Property;

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

     (n) Trademarks. All tradenames, trademarks, servicemarks, logos, copyrights, goodwill, books
and records and all other general intangibles relating to or used in connection with the operation
of the Property;

     (o) Proceeds. All proceeds of any of the foregoing, including, without limitation, proceeds of
insurance and condemnation awards, whether cash, liquidation or other claims or otherwise; and

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

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

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

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discharge all current sums due on the Debt, for use in the payment of such sums.

     Section 1.3 SECURITY AGREEMENT. This Security Instrument is both a real property mortgage and
a “security agreement” within the meaning of the Uniform Commercial Code. The Property includes
both real and personal property and all other rights and interests, whether tangible or intangible
in nature, of Borrower in the Property. By executing and delivering this Security Instrument,
Borrower hereby grants to Lender, as security for the Obligations (hereinafter defined), a security
interest in the Fixtures, the Equipment, the Personal Property and other property constituting the
Property to the full extent that the Fixtures, the Equipment, the Personal Property and such other
property may be subject to the Uniform Commercial Code (said portion of the Property so subject to
the Uniform Commercial Code being called the “COLLATERAL”). If an Event of Default shall occur and
be continuing, Lender, in addition to any other rights and remedies which it may have, shall have
and may exercise immediately and without demand, any and all rights and remedies granted to a
secured party upon default under the Uniform Commercial Code, including, without limiting the
generality of the foregoing, the right to take
possession of the Collateral or any part thereof, and to take such other measures as Lender may
deem necessary for the care, protection and preservation of the Collateral. Upon request or demand
of Lender after the occurrence and during the continuance of an Event of Default, Borrower shall,
at its expense, assemble the Collateral and make it available to Lender at a convenient place (at
the Land if tangible property) reasonably acceptable to Lender. Borrower shall pay to Lender on
demand any and all expenses, including reasonable legal expenses and attorneys’ fees, incurred or
paid by Lender in protecting its interest in the Collateral and in enforcing its rights hereunder
with respect to the Collateral after the occurrence and during the continuance of an Event of
Default. Any notice of sale, disposition or other intended action by Lender with respect to the
Collateral sent to Borrower in accordance with the provisions hereof at least ten (10) business
days prior to such action, shall, except as otherwise provided by applicable law, constitute
reasonable notice to Borrower. The proceeds of any disposition of the Collateral, or any part
thereof, may, except as otherwise required by applicable law, be applied by Lender to the payment
of the Debt in such priority and proportions as Lender in its discretion shall deem proper. The
principal place of business of Borrower (Debtor) is as set forth on page one hereof and the address
of Lender (Secured Party) is as set forth on page one hereof.

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

     Section 1.5 PLEDGES OF MONIES HELD. Borrower hereby pledges to Lender any and all monies now
or hereafter held by Lender or on behalf of Lender in connection with the Loan, including, without
limitation, any sums deposited in the Accounts (as defined in the Cash Management Agreement) and
Net Proceeds, as additional security for the Obligations until expended or applied as provided in
this Security Instrument.

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CONDITIONS TO GRANT

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

     PROVIDED, HOWEVER, these presents are upon the express condition that, if Borrower shall well
and truly pay to Lender the Debt at the time and in the manner provided in the Note, the Loan
Agreement and this Security Instrument, shall well and truly perform the Other Obligations as set
forth in this Security Instrument and shall well and truly abide by and comply with each and every
covenant and condition set forth herein and in the Note, the Loan Agreement and the other Loan
Documents, these presents and the estate hereby granted shall cease, terminate and be void;
provided, however, that Borrower’s obligation to indemnify and hold harmless Lender pursuant to the
provisions hereof shall survive any such payment or release.

Article 2 — DEBT AND OBLIGATIONS SECURED

     Section 2.1 DEBT. This Security Instrument and the grants, assignments and transfers made in
Article 1 are given for the purpose of securing the Debt.

     Section 2.2 OTHER OBLIGATIONS. This Security Instrument and the grants, assignments and
transfers made in Article 1 are also given for the purpose of securing the following (the “OTHER
OBLIGATIONS”):

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

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

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

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

Article 3 — BORROWER COVENANTS

     Borrower covenants and agrees that:

     Section 3.1 PAYMENT OF DEBT. Borrower will pay the Debt at the time and in the manner provided
in the Loan Agreement, the Note and this Security Instrument.

     Section 3.2 INCORPORATION BY REFERENCE. All the covenants, conditions and agreements contained
in (a) the Loan Agreement, (b) the Note and (c) all and any of the other Loan Documents, are hereby
made a part of this Security

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Instrument to the same extent and with the same force as if fully set forth herein.

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

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

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

     Section 3.6 PAYMENT FOR LABOR AND MATERIALS. (a) Borrower will promptly pay when due all bills
and costs for labor, materials, and specifically fabricated materials (“LABOR AND MATERIAL COSTS”)
incurred in connection with the Property and never permit to exist beyond the due date thereof in
respect of the Property or any part thereof any lien or security interest, even though inferior to
the liens and the security interests hereof, and in any event never permit to be created or exist
in respect of the Property or any part thereof any other or additional lien or security interest
other than the liens or security interests hereof except for the Permitted Encumbrances.

     (b) After prior written notice to Lender, Borrower, at its own expense, may contest by
appropriate legal proceeding, promptly initiated and conducted in good faith and with due
diligence, the amount or validity or application in whole or in part of any of the Labor and
Material Costs, provided that (i) no Event of Default has occurred and is continuing under the Loan
Agreement, the Note, this Security Instrument or any of the other Loan Documents, (ii) Borrower is
permitted to do so under the provisions of any other mortgage, deed of trust or deed to secure debt
affecting the Property, (iii) such proceeding shall suspend the collection of the Labor and
Material Costs from Borrower and from the Property or Borrower shall have paid all of the Labor and
Material Costs under protest, (iv) such proceeding shall be permitted under and be conducted in
accordance with the provisions of any other instrument to which Borrower is subject and shall not
constitute a default thereunder, (v) neither the Property nor any part thereof or interest therein
will be in danger of being sold,

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forfeited, terminated, canceled or lost, and (vi) Borrower shall have furnished the security
as may be required in the proceeding, or as may be reasonably requested by Lender to insure the
payment of any contested Labor and Material Costs, together with all interest and penalties
thereon.

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

     Section 3.8 CHANGE OF NAME, IDENTITY OR STRUCTURE. Borrower shall not change Borrower’s name,
identity (including its trade name or names) or, if not an individual, Borrower’s corporate,
partnership or other structure without first (a) notifying Lender of such change in writing at
least thirty (30) days prior to the effective date of such change, (b) taking all action required
by Lender for the purpose of perfecting or protecting the lien and security interest of Lender and
(c) in the case of a change in Borrower’s structure, without first obtaining the prior written
consent of Lender; provided, however that in connection with any such change in Borrower’s name or
corporate identity Borrower shall have no obligation to pay to Lender a transfer fee. Borrower
shall promptly notify Lender in writing of any change in its organizational identification number.
If Borrower does not now have an organizational identification number and later obtains one,
Borrower shall promptly notify Lender in writing of such organizational identification number.
Borrower shall execute and deliver to Lender, prior to or contemporaneously with the effective date
of any such change, any financing statement or financing statement change required by Lender to
establish or maintain the validity, perfection and priority of the security interest granted
herein. At the request of Lender, Borrower shall execute a certificate in form satisfactory to
Lender listing the trade names under which Borrower intends to operate the Property, and
representing and warranting that Borrower does business under no other trade name with respect to
the Property.

Article 4 — OBLIGATIONS AND RELIANCES

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

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

     Section 4.3 NO LENDER OBLIGATIONS. (a) Notwithstanding the provisions of Subsections 1.1(h)
and (m) or Section 1.2, Lender is not undertaking the performance of (i) any obligations under the
Leases; or (ii) any obligations

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with respect to such agreements, contracts, certificates, instruments, franchises, permits,
trademarks, licenses and other documents.

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

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

Article 5 — FURTHER ASSURANCES

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

     Section 5.2 FURTHER ACTS, ETC. Borrower will, at the cost of Borrower, and without expense to
Lender, do, execute, acknowledge and deliver all and every such further acts, deeds, conveyances,
deeds of trust, mortgages, assignments, notices of assignments, transfers and assurances as Lender
shall, from time to time, reasonably require, for the better assuring, conveying, assigning,
transferring, and confirming unto Lender the property and rights hereby mortgaged, deeded, granted,
bargained, sold, conveyed, confirmed, pledged, assigned, warranted and transferred or intended now
or hereafter so to

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be, or which Borrower may be or may hereafter become bound to convey or assign to Lender, or
for carrying out the intention or facilitating the performance of the terms of this Security
Instrument or for filing, registering or recording this Security Instrument, or for complying with
all Legal Requirements; provided that the obligations of Borrower under the Loan Documents are not
materially increased and Borrower’s rights under the Loan Documents are not decreased. Borrower, on
demand, will execute and deliver, and in the event it shall fail to so execute and deliver, hereby
authorizes Lender to execute in the name of Borrower or without the signature of Borrower to the
extent Lender may lawfully do so, one or more financing statements (including, without limitation,
initial financing statements and amendments thereto and continuation statements) with or without
the signature of Borrower as authorized by applicable law, to evidence more effectively the
security interest of Lender in the Property. Borrower also ratifies its authorization for Lender to
have filed any like initial financing statements, amendments thereto and continuation statements,
if filed prior to the date of this Security Instrument. During the continuance of an Event of
Default, Borrower grants to Lender an irrevocable power of attorney coupled with an interest for
the purpose of exercising and perfecting any and all rights and remedies available to Lender at law
and in equity, including without limitation such rights and remedies available to Lender pursuant
to this Section 5.2. To the extent not prohibited by applicable
law, Borrower hereby ratifies all acts Lender has lawfully done in the past or shall lawfully do or
cause to be done in the future by virtue of such power of attorney.

     Section 5.3 CHANGES IN TAX, DEBT, CREDIT AND DOCUMENTARY STAMP LAWS. (a) If any law is enacted
or adopted or amended after the date of this Security Instrument which deducts the Debt from the
value of the Property for the purpose of taxation or which imposes a tax, either directly or
indirectly, on the Debt or Lender’s interest in the Property, Borrower will pay the tax, with
interest and penalties thereon, if any. If Lender is advised by counsel chosen by it that the
payment of tax by Borrower would be unlawful or taxable to Lender or unenforceable or provide the
basis for a defense of usury then Lender shall have the option by written notice of not less than
one hundred twenty (120) days to declare the Debt immediately due and payable, without prepayment
penalty or premium.

     (b) Borrower will not claim or demand or be entitled to any credit or credits on account of
the Debt for any part of the Taxes or Other Charges assessed against the Property, or any part
thereof, and no deduction shall otherwise be made or claimed from the assessed value of the
Property, or any part thereof, for real estate tax purposes by reason of this Security Instrument
or the Debt. If such claim, credit or deduction shall be required by law, Lender shall have the
option, by written notice of not less than one hundred twenty (120) days, to declare the Debt
immediately due and payable, without prepayment penalty or premium.

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

     Section 5.4 SPLITTING OF MORTGAGE. This Security Instrument and the Note shall, at any time
until the same shall be fully paid and satisfied, at the sole election and cost of Lender, be split
or divided into two or more notes and two or more security instruments, each of which shall cover
all or a portion of

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the Property to be more particularly described therein. To that end, Borrower, upon written
request of Lender, shall execute, acknowledge and deliver, or cause to be executed, acknowledged
and delivered by the then owner of the Property, to Lender and/or its designee or designees substitute notes and
security instruments in such principal amounts, aggregating not more than the then unpaid principal
amount of the Note, and containing terms, provisions and clauses identical to those contained
herein and in the Note, and such other documents and instruments as may be required by Lender;
provided that the interest rate set forth in any notes shall be the same as the interest rate
provided in the Note, the economic terms and Maturity Date of the notes are identical to those in
the Note, the obligations of Borrower under the Loan Documents shall not be increased and
Borrower’s rights under the Loan Documents shall not be decreased.

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

Article 6 — DUE ON SALE/ENCUMBRANCE

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

     Section 6.2 NO TRANSFER . Borrower shall not permit or suffer any Transfer to occur, unless
specifically permitted by Article 8 of the Loan Agreement or unless Lender shall consent thereto in
writing.

     Section 6.3 TRANSFER DEFINED. Subject to Section 8 of the Loan Agreement, as used in this
Article 6 “TRANSFER” shall mean any voluntary or involuntary sale, conveyance, mortgage, grant,
bargain, encumbrance, pledge, assignment, or transfer of: (a) all or any part of the Property or
any estate or interest therein including, but not be limited to, (i) an installment sales agreement
wherein Borrower agrees to sell the Property or any part thereof for a price to be paid in installments, (ii) an
agreement by Borrower leasing all or a substantial part of the Property for other than actual
occupancy by a space tenant thereunder and its affiliates or (iii) a sale, assignment or other
transfer of, or the grant of a security interest in, Borrower’s right, title and interest in and to
any Leases or any Rents; or (b) any ownership interest in (i) Borrower or (ii) any indemnitor or
guarantor of any Obligations or (iii) any corporation, partnership, limited liability company,
trust or other entity

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owning, directly or indirectly, any interest in Borrower or any indemnitor or guarantor of any
Obligations.

     Section 6.4 LENDER’S RIGHTS. Except as otherwise provided in Section 8 of the Loan Agreement,
without obligating Lender to grant any consent under Section 6.2 hereof which Lender may grant or
withhold in its sole discretion, Lender reserves the right to condition the consent required
hereunder upon (a) a modification of the terms hereof and of the Loan Agreement, the Note or the
other Loan Documents; (b) an assumption of the Loan Agreement, the Note, this Security Instrument
and the other Loan Documents as so modified by the proposed transferee, subject to the provisions
of Section 11.22 of the Loan Agreement; (c) payment of all of Lender’s expenses actually incurred
in connection with such transfer; (d) the confirmation in writing by the applicable Rating Agencies
that the proposed transfer will not, in and of itself, result in a downgrade, qualification or
withdrawal of the initial, or, if higher, then current ratings assigned in connection with any
Securitization; (e) the delivery of a nonconsolidation opinion reflecting the proposed transfer
satisfactory in form and substance to Lender; (f) the proposed transferee’s continued compliance
with the representations and covenants set forth in Section 3.1.24 and 4.2.8 of the Loan Agreement;
(g) the delivery of evidence satisfactory to Lender that the single purpose nature and bankruptcy
remoteness of Borrower, its shareholders, partners or members, as the case may be, following such
transfers are in accordance with the standards of the Rating Agencies; (h) the proposed
transferee’s ability to satisfy Lender’s then-current underwriting standards; or (i) such other
conditions as Lender shall determine in its reasonable discretion to be in the interest of Lender,
including, without limitation, the creditworthiness, reputation and qualifications of the
transferee with respect to the Loan and the Property. Lender shall not be required to demonstrate
any actual impairment of its security or any increased risk of default hereunder in order to
declare the Debt immediately due and payable upon a Transfer without Lender’s consent. This
provision shall apply to every Transfer, other than any Transfer permitted pursuant to the Loan
Agreement, regardless of whether voluntary or not, or whether or not Lender has consented to any
previous Transfer.

Article 7 — RIGHTS AND REMEDIES UPON DEFAULT

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

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

     (b) institute proceedings, judicial or otherwise, for the complete foreclosure of this
Security Instrument under any applicable provision of law, in which case the Property or any
interest therein may be sold for cash or upon credit in one or more parcels or in several interests
or portions and in any order or manner;

     (c) with or without entry, to the extent permitted and pursuant to the procedures provided by
applicable law, institute proceedings for the partial foreclosure of this Security Instrument for
the portion of the Debt then due and

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payable, subject to the continuing lien and security interest of this Security Instrument for
the balance of the Debt not then due, unimpaired and without loss of priority;

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

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

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

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

     (h) the license granted to Borrower under Section 1.2 hereof shall automatically be revoked
and Lender may enter into or upon the Property, either personally or by its agents, nominees or
attorneys and dispossess Borrower and its agents and servants therefrom, without liability for
trespass, damages or otherwise and exclude Borrower and its agents or servants wholly therefrom,
and take possession of all books, records and accounts relating thereto and Borrower agrees to
surrender possession of the Property and of such books, records and accounts to Lender upon demand,
and thereupon Lender may (i) use, operate, manage, control, insure, maintain, repair, restore and
otherwise deal with all and every part of the Property and conduct the business thereat; (ii)
complete any construction on the Property in such manner and form as Lender deems advisable; (iii)
make alterations, additions, renewals, replacements and improvements to or on the Property; (iv)
exercise all rights and powers of Borrower with respect to the Property, whether in the name of
Borrower or otherwise, including, without limitation, the right to make, cancel, enforce or modify
Leases, obtain and evict tenants, and demand, sue for, collect and receive all Rents of the
Property and every part thereof; (v) require Borrower to pay monthly in advance to Lender, or any
receiver appointed to collect the Rents, the fair and reasonable rental value for the use and
occupation of such part of the Property as may be occupied by Borrower; (vi) require Borrower to
vacate and surrender possession of the Property to Lender or to such receiver and, in default
thereof, Borrower may be evicted by summary proceedings or otherwise; and (vii) apply the receipts
from the Property to the payment of the Debt, in such order, priority and proportions as Lender
shall deem appropriate in its sole discretion after deducting therefrom all expenses (including
reasonable attorneys’ fees) incurred in connection with the aforesaid operations and all amounts
necessary to pay the Taxes, Other Charges, insurance and other expenses in connection with the
Property, as well as just and reasonable compensation for the services of Lender, its counsel,
agents and employees;

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

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

     (i) Taxes and Other Charges;

     (ii) Insurance Premiums;

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

     (iv) intentionally omitted;

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

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

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

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

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

     Section 7.3 RIGHT TO CURE DEFAULTS. Upon the occurrence and during the continuance of any
Event of Default, Lender may, but without any obligation to do so and without notice to or demand
on Borrower and without releasing Borrower from any obligation hereunder, make or do the same in
such manner and to such

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extent as Lender may deem necessary to protect the security hereof. Lender is authorized to
enter upon the Property for such purposes, or appear in, defend, or bring any action or proceeding
to protect its interest in the Property or to foreclose this Security Instrument or collect the
Debt, and the cost and expense thereof (including reasonable attorneys’ fees to the extent
permitted by law), with interest as provided in this Section 7.3, shall constitute a portion of the
Debt and shall be due and payable to Lender upon demand. All such costs and expenses incurred by
Lender in remedying such Event of Default or in appearing in, defending, or bringing any such
action or proceeding shall bear interest at the Default Rate, for the period after notice from
Lender that such cost or expense was incurred to the date of payment to Lender. All such costs and
expenses incurred by Lender together with interest thereon calculated at the Default Rate shall be
deemed to constitute a portion of the Debt and be secured by this Security Instrument and the other
Loan Documents and shall be immediately due and payable upon demand by Lender therefor.

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

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

     Section 7.6 EXAMINATION OF BOOKS AND RECORDS. At reasonable times and upon reasonable notice,
Lender, its agents, accountants and attorneys shall have the right to examine the records, books,
management and other papers of Borrower which reflect upon its financial condition, at the Property
or at any office regularly maintained by Borrower where the books and records are located. Lender
and its agents shall have the right to make copies and extracts from the foregoing records and
other papers. In addition, at reasonable times and upon reasonable notice, Lender, its agents,
accountants and attorneys shall have the right to examine and audit the books and records of
Borrower pertaining to the income, expenses and operation of the Property during reasonable
business hours at any office of Borrower where the books and records are located. This Section 7.6
shall apply throughout the term of the Note and without regard to whether an Event of Default has
occurred or is continuing, provided that any entry and inspection hereunder shall be conducted in a
manner designed to minimize interference with Borrower or the operation of the Property.

     Section 7.7 OTHER RIGHTS, ETC. (a) The failure of Lender to insist upon strict performance of
any term hereof shall not be deemed to be a waiver of any term of this Security Instrument.
Borrower shall not be relieved of Borrower’s obligations hereunder by reason of (i) the failure of
Lender to comply with any request of Borrower or any guarantor or indemnitor with respect to the
Loan to take any action to foreclose this Security Instrument or otherwise enforce any of the
provisions hereof or of the Note or the other Loan Documents, (ii) the release, regardless of
consideration, of the whole or any part of the Property, or of any person liable for the Debt or
any portion thereof, or (iii) any

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agreement or stipulation by Lender extending the time of payment or otherwise modifying or
supplementing the terms of the Note, this Security Instrument or the other Loan Documents.

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

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

     Section 7.8 RIGHT TO RELEASE ANY PORTION OF THE PROPERTY. Lender may release any portion of
the Property for such consideration as Lender may require without, as to the remainder of the
Property, in any way impairing or affecting the lien or priority of this Security Instrument, or
improving the position of any subordinate lienholder with respect thereto, except to the extent
that the obligations hereunder shall have been reduced by the actual monetary consideration, if
any, received by Lender for such release, and may accept by assignment, pledge or otherwise any
other property in place thereof as Lender may require without being accountable for so doing to any
other lienholder. This Security Instrument shall continue as a lien and security interest in the
remaining portion of the Property.

     Section 7.9 VIOLATION OF LAWS. If the Property is not in material compliance with Legal
Requirements and such noncompliance results in a Material Adverse Effect, Lender may impose
additional requirements upon Borrower in connection herewith including, without limitation,
monetary reserves or financial equivalents.

     Section 7.10 RECOURSE AND CHOICE OF REMEDIES. Notwithstanding any other provision of this
Security Instrument or the Loan Agreement, including, without limitation, Section 11.22 of the Loan
Agreement, Lender and other Indemnified Parties (as hereinafter defined) are entitled to enforce
the obligations of Borrower, any guarantor and indemnitor contained in Sections 9.2 and 9.3 herein
without first resorting to or exhausting any security or collateral and without first having
recourse to the Note or any of the Property, through foreclosure or acceptance of a deed in lieu of
foreclosure or otherwise, and in the event Lender commences a foreclosure action against the
Property, Lender is entitled to pursue a deficiency judgment with respect to such obligations
against Borrower and any guarantor or indemnitor with respect to the Loan. The provisions of
Sections 9.2 and 9.3 herein are exceptions to any non-recourse or exculpation provisions in the
Loan Agreement, the Note, this Security Instrument

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or the other Loan Documents, and Borrower and any guarantor or indemnitor with respect to the
Loan are fully and personally liable for the obligations pursuant to Sections 9.2 and 9.3 herein.
The liability of Borrower and any guarantor or indemnitor with respect to the Loan pursuant to
Sections 9.2 and 9.3 herein is not limited to the original principal amount of the Note.
Notwithstanding the foregoing, nothing herein shall inhibit or prevent Lender from foreclosing or
exercising any other rights and remedies pursuant to the Loan Agreement, the Note, this Security
Instrument and the other Loan Documents, whether simultaneously with foreclosure proceedings or in
any other sequence. A separate action or actions may be brought and prosecuted against Borrower
pursuant to Sections 9.2 and 9.3 herein, whether or not action is brought against any other Person
or whether or not any other Person is joined in the action or actions. In addition, Lender shall
have the right but not the obligation to join and participate in, as a party if it so elects, any
administrative or judicial proceedings or actions initiated in connection with any matter addressed
in the Environmental Indemnity.

     Section 7.11 RIGHT OF ENTRY. Upon reasonable notice to Borrower, Lender and its agents shall
have the right to enter and inspect the Property at all reasonable times.

Article 8 — INTENTIONALLY OMITTED

Article 9 — INDEMNIFICATION

     Section 9.1 GENERAL INDEMNIFICATION. Borrower shall, at its sole cost and expense, protect,
defend, indemnify, release and hold harmless the Indemnified Parties from and against any and all
claims, suits, liabilities (including, without limitation, strict liabilities), actions,
proceedings, obligations, debts, damages, losses, costs, expenses, fines, penalties, charges, fees, expenses, judgments,
awards, amounts paid in settlement, (including but not limited to reasonable attorneys’ fees and
other costs of defense) (collectively, the “LOSSES”) imposed upon or incurred by or asserted
against any Indemnified Parties and directly or indirectly arising out of or in any way relating to
any one or more of the following, except to the extent caused by the gross negligence, willful
misconduct or bad faith by an Indemnified Party of any of the Loan Documents: (a) ownership of this
Security Instrument, the Property or any interest therein or receipt of any Rents; (b) any
amendment to, or restructuring of, the Debt, and the Note, the Loan Agreement, this Security
Instrument, or any other Loan Documents; (c) any and all lawful action that may be taken by Lender
in connection with the enforcement of the provisions of this Security Instrument or the Loan
Agreement or the Note or any of the other Loan Documents, whether or not suit is filed in
connection with same, or in connection with Borrower, any guarantor or indemnitor and/or any
partner, joint venturer or shareholder thereof becoming a party to a voluntary or involuntary
federal or state bankruptcy, insolvency or similar proceeding; (d) any accident, injury to or death
of persons or loss of or damage to property occurring in, on or about the Property or any part
thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets
or ways; (e) any use, nonuse or condition in, on or about the Property or any part thereof or on
the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (f)
any failure on the part of Borrower to perform or be in compliance with any of the terms of this
Security Instrument; (g) performance of any labor or services or the furnishing of any materials or
other property in respect of the Property or any part thereof; (h) the failure of any person to
file timely with the Internal Revenue Service an accurate Form 1099-B, Statement for

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Recipients of Proceeds from Real Estate, Broker and Barter Exchange Transactions, which may be
required in connection with this Security Instrument, or to supply a copy thereof in a timely
fashion to the recipient of the proceeds of the transaction in connection with which this Security
Instrument is made; (i) any failure of the Property to be in compliance with any Legal
Requirements; (j) the enforcement by any Indemnified Party of the provisions of this Article 9; (k)
any and all claims and demands whatsoever which may be asserted against Lender by reason of any
alleged obligations or undertakings on its part to perform or discharge any of the terms,
covenants, or agreements contained in any Lease; (1) the payment of any commission, charge or
brokerage fee to anyone claiming through Borrower which may be payable in connection with the
funding of the Loan; or (m) any misrepresentation made by Borrower in this Security Instrument or
any other Loan Document. Any amounts payable to Lender by reason of the application of this Section
9.1 shall become immediately due and payable and shall bear interest at the Default Rate from the
date loss or damage is sustained by Lender until paid. For purposes of this Article 9, the term
“INDEMNIFIED PARTIES” means Lender and any Person who is or will have been involved in the
origination of the Loan, any Person who is or will have been involved in the servicing of the Loan
secured hereby, any Person in whose name the
encumbrance created by this Security Instrument is or will have been recorded, persons and entities
who may hold or acquire or will have held a full or partial interest in the Loan secured hereby
(including, but not limited to, investors or prospective investors in the Securities, as well as
custodians, trustees and other fiduciaries who hold or have held a full or partial interest in the
Loan secured hereby for the benefit of third parties) as well as the respective directors,
officers, shareholders, partners, employees, agents, servants, representatives, contractors,
subcontractors, affiliates, subsidiaries, participants, successors and assigns of any and all of
the foregoing (including but not limited to any other Person who holds or acquires or will have
held a participation or other full or partial interest in the Loan, whether during the term of the
Loan or as a part of or following a foreclosure of the Loan and including, but not limited to, any
successors by merger, consolidation or acquisition of all or a substantial portion of Lender’s
assets and business).

     Section 9.2 MORTGAGE AND/OR INTANGIBLE TAX. Borrower shall, at its sole cost and expense,
protect, defend, indemnify, release and hold harmless the Indemnified Parties from and against any
and all Losses imposed upon or incurred by or asserted against any Indemnified Parties and directly
or indirectly arising out of or in any way relating to any tax on the making and/or recording of
this Security Instrument, the Note or any of the other Loan Documents, but excluding any
withholding, income, franchise or other similar taxes.

     Section 9.3 ERISA INDEMNIFICATION. Borrower shall, at its sole cost and expense, protect,
defend, indemnify, release and hold harmless the Indemnified Parties from and against any and all
Losses (including, without limitation, reasonable attorneys’ fees and costs incurred in the
investigation, defense, and settlement of Losses incurred in correcting any prohibited transaction
or in the sale of a prohibited loan, and in obtaining any individual prohibited transaction
exemption under ERISA that may be required, in Lender’s sole discretion) that Lender may incur,
directly or indirectly, as a result of a default under Sections 3.1.8 or 4.2.8 of the Loan
Agreement.

     Section 9.4 INTENTIONALLY OMITTED.

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     Section 9.5 DUTY TO DEFEND; ATTORNEYS’ FEES AND OTHER FEES AND EXPENSES. Upon written request
by any Indemnified Party, Borrower shall defend such Indemnified Party (if requested by any
Indemnified Party, in the name of the Indemnified Party) by attorneys and other professionals
reasonably approved by the Indemnified Parties. Notwithstanding the foregoing, if the defendants in
any such claim or proceeding include both Borrower and any Indemnified Party and Borrower and such
Indemnified Party shall have reasonably concluded that a conflict exists, such Indemnified Party
shall have the right to select separate counsel to assert such legal defenses and to otherwise
participate in the defense of such action on behalf of such Indemnified Party, provided that no
compromise or settlement shall be entered without Borrower’s consent, which consent shall not be
unreasonably withheld. Upon demand, Borrower shall pay or, in the sole and absolute discretion of
the Indemnified Parties, reimburse, the Indemnified Parties for the payment of reasonable fees and
disbursements of attorneys, engineers, environmental consultants, laboratories and other
professionals actually incurred in connection therewith.

Article 10 — WAIVERS

     Section 10.1 WAIVER OF COUNTERCLAIM. To the extent permitted by applicable law, Borrower
hereby waives the right to assert a counterclaim, other than a mandatory or compulsory
counterclaim, in any action or proceeding brought against it by Lender arising out of or in any way
connected with this Security Instrument, the Loan Agreement, the Note, any of the other Loan
Documents, or the Obligations; provided, however, that such waiver shall not preclude borrower’
assertion of such claims in a separate action against Lender.

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

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

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

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

Article 11 — EXCULPATION

     The provisions of Section 11.22 of the Loan Agreement are hereby incorporated by reference
into this Security Instrument to the same extent and with the same force as if fully set forth
herein.

Article 12 — NOTICES

     All notices or other written communications hereunder shall be delivered in accordance with
Section 11.6 of the Loan Agreement.

Article 13 — APPLICABLE LAW

     Section 13.1 GOVERNING LAW. (A) THIS SECURITY INSTRUMENT WAS NEGOTIATED IN THE STATE OF NEW
YORK, AND MADE BY BORROWER AND ACCEPTED BY LENDER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE
NOTE SECURED HEREBY WERE 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 SECURITY INSTRUMENT 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 (WITHOUT REGARD TO PRINCIPLES OF CONFLICT LAWS) 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 WITH RESPECT TO THE PROPERTY SHALL BE GOVERNED BY AND

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CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE PROPERTY 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,
BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY
OTHER JURISDICTION GOVERNS THIS SECURITY INSTRUMENT OR THE OTHER LOAN DOCUMENTS, AND THIS SECURITY
INSTRUMENT AND THE OTHER LOAN DOCUMENTS 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.

     (B) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING
TO THIS SECURITY INSTRUMENT MAY AT LENDER’S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN
THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 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

	 	 	 	 	 

	 
	 	STUART H. WIDOWSKI

44 SOUTH BAYLES AVENUE

PORT WASHINGTON, NEW YORK 11050

	 	 

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, 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 (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED
ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) 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 (III) SHALL PROMPTLY
DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN

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OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.

     Section 13.2 USURY LAWS. Notwithstanding anything to the contrary, (a) all agreements and
communications between Borrower and Lender are hereby and shall automatically be limited so that,
after taking into account all amounts deemed interest, the interest contracted for, charged or
received by Lender shall never exceed the maximum lawful rate or amount, (b) in calculating whether
any interest exceeds the lawful maximum, all such interest shall be amortized, prorated, allocated
and spread over the full amount and term of all principal indebtedness of Borrower to Lender, and
(c) if through any contingency or event, Lender receives or is deemed to receive interest in excess
of the lawful maximum, any such excess shall be deemed to have been applied toward payment of the
principal of any and all then outstanding indebtedness of Borrower to Lender, or if there is no
such indebtedness, shall immediately be returned to Borrower.

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

Article 14 — DEFINITIONS

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

Article 15 — MISCELLANEOUS PROVISIONS

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

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     Section 15.2 SUCCESSORS AND ASSIGNS. This Security Instrument shall be binding upon and inure
to the benefit of Borrower and Lender and their respective successors and assigns forever.

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

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

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

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

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

     Section 15.8 LIMITATION ON LENDER’S RESPONSIBILITY. No provision of this Security Instrument
shall operate to place any obligation or liability for the control, care, management or repair of
the Property upon Lender, nor shall it operate to make Lender responsible or liable for any waste
committed on the Property by the tenants or any other Person, or for any dangerous or defective
condition of the Property, or for any negligence in the management, upkeep, repair or control of
the Property resulting in loss or injury or death to any tenant, licensee, employee or stranger
until such time as Lender or its designee takes title to the Property. Nothing herein contained
shall be construed as constituting Lender a “mortgagee in possession.”

-23-

 

Article 16 — MASSACHUSETTS -SPECIFIC PROVISIONS

     Section 16.1 PRINCIPLES OF CONSTRUCTION. In the event of any inconsistencies between the terms
and conditions of this Article 16 and the other terms and conditions of this Security Instrument,
the terms and conditions of this Article 16 shall control and be binding.

     Section 16.2 BORROWER’S INTEREST IN THE PROPERTY. Borrower has good and marketable fee simple
title to the Property. Borrower will preserve its interest in and title to the Property and will
forever defend same.

     Section 16.3 STATUTORY POWER OF SALE.

     (a) This Mortgage is intended to constitute: (i) a mortgage deed under Massachusetts General
Laws c. 183, § 18, (ii) a security agreement and financing statement under the Uniform Commercial
Code as enacted in the Commonwealth of Massachusetts, and (iii) a notice of assignment of rents or
profits under Massachusetts General Laws c. 183 § 4. This Mortgage is also intended to operate and
be construed as an absolute present assignment of the rents, issues and profits of the Property,
Borrower hereby agreeing, as provided for in Massachusetts General
Laws c. 183, § 26, that Lender
is entitled to receive the rents, issues and profits of the Property prior to an Event of Default
and without entering upon or taking possession of the Property.

     (b) This Mortgage is granted by Borrower WITH MORTGAGE COVENANTS and upon the STATUTORY
CONDITION and upon the further condition that all covenants and agreements on the part of the
Borrower herein undertaken shall be kept and fully and seasonably performed and that no breach
of any other of the conditions specified herein shall be permitted, for any breach of which
conditions, the Lender shall have the STATUTORY POWER OF SALE.

     Section 16.4 SALE OR OTHER DISPOSITION OF THE PROPERTY. Any sale or other disposition of the
Property may be at public or private sale, to the extent such private sale is authorized under the
provisions of the Uniform Commercial Code as enacted in the Commonwealth of Massachusetts, upon
such terms and in such manner as Lender deems advisable. Lender may conduct any such sale or other
disposition of the Property upon the Premises, in which event Borrower shall not be liable for any
rent or charge for such use of the Premises. Lender may purchase the Property, or any portion of
it, at any sale held under this Section. With respect to any of the property comprising the
Property to be sold pursuant to the Uniform Commercial Code, Lender shall give Borrower at least
seven (7) days written notice of the date, time, and place of any proposed public sale, or such
additional notice as may be required under the laws of the Commonwealth of Massachusetts, and of
the date after which any private sale or other disposition may be made. Lender may sell any of the
Property as part of the Premises and Improvements comprising the Property, or any portion or unit
thereof, at the foreclosure sale or sales conducted pursuant hereto. If the provisions of the
Uniform Commercial Code are applicable to any part of the Property which is to be sold in
combination with or as part of the Premises and Improvements comprising the Property, or any part
thereof, at one or more foreclosure sales, any notice required under such provisions shall be fully
satisfied by the notice given in execution of the STATUTORY POWER OF SALE with respect to the
Lender’s right, title and interest in and to Premises and

-24-

 

Improvements or any part thereof. Borrower’s waives any right to require the marshaling of any
of its assets in connection with any disposition conducted pursuant hereto. In the event all or
part of the Property is included at any foreclosure sale conducted pursuant hereto, a single total
price for the Property, or such part thereof as is sold, may be accepted by Lender with no
obligation to distinguish between the application of such proceeds amongst the property comprising
the Property.

[NO FURTHER TEXT ON THIS PAGE]

-25-

 

     IN WITNESS WHEREOF, THIS SECURITY INSTRUMENT has been executed by Borrower as of the day and
year first above written.

	 	 	 	 	 
	 	BORROWER:

CEDAR-FRANKLIN VILLAGE LLC,

a Delaware limited liability company

 	 
	 	By:  	Cedar-Franklin Village 2 LLC, a Delaware limited liability company, its sole member
 	 
	 
	 	 	 
	 	By:  	Cedar Shopping Centers Partnership, L.P., a Delaware limited partnership, its sole member
 	 
	 
	 	 	 
	 	By:  	Cedar Shopping Centers, Inc., a Maryland corporation, its general partner
 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	Brenda J. Walker 	 
	 	 	Title:  	Vice President 	 
	 

 

	 	 	 	 	 	 	 

	STATE OF _____________

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.
	COUNTY OF ___________

	 	 	)	 	 	 

     Then personally appeared before me the above-named Brenda J. Walker, the Vice President of
Cedar Shopping Centers, Inc., a Maryland corporation, general partner of Cedar Shopping Centers
Partnership, L.P., a Delaware limited liability company, sole member of Cedar-Franklin Village 2
LLC, a Delaware limited liability company, sole member of Cedar-Franklin Village LLC, a Delaware
limited liability company and said Brenda J. Walker acknowledged that the foregoing instrument was
signed and sealed on behalf of said limited liability company, and that said instrument was her
free act and deed and the free act and deed of said limited liability company.

                 
                        
                        

Notary Public

My Commission Expires:                         
                

 

EXHIBIT A

LEGAL DESCRIPTION

 

EXHIBIT A

Franklin Village Shopping Center

Legal Description

A certain parcel of land located on the southerly side of West Central Street and the easterly side
of Interstate Route 495 in the Town of Franklin, Norfolk County, Commonwealth of Massachusetts,
said described parcel of land is more particularly bounded and described as follows:

	 	 	Beginning at a point on the southerly sideline of said West Central Street, at land
(formerly of Eva A. Goldenberg) now or formerly of Rennaissance Development Corp.;
thence running

	 	 	 

	S00°00’04”W

	 	a distance of 1086.71 feet by land now or formerly of
Rennaissance Development Corp., crossing a railroad right of
way, to a point on the centerline of Mine Brook; thence
running
	 
	 	 
	Southwesterly

	 	by the centerline of said Mine Brook a distance of 1032 feet,
more or less (with a tie-line bearing S74°53’31”W a distance of
825.44 feet) to a point on the easterly sideline of said Route
495; thence running
	 
	 	 
	Northwesterly

	 	along the arc of a non-tangent curve to the left having a radius
of 8125.00 feet an arc length of 206.00 feet (with chord of
205.99 feet bearing N25°24 ’07”W) along the easterly sideline
of said Route 495 to a point at land of Consolidated Rail
Corporation; thence running
	 
	 	 
	S83°26’26”E

	 	a distance of 69.63 feet to a point; thence running
	 
	 	 
	N01°09’16”W

	 	a distance of 83.26 feet to a point; thence running
	 
	 	 
	N83°26’26”W

	 	a distance of 112.10 feet, the previous three (3) courses being
by land now or formerly of said Consolidated Rail Corporation
to a point on the easterly sideline of said Route 495; thence
running
	 
	 	 
	Northwesterly

	 	along the arc of a non-tangent curve to the left having a radius
of 8125.00 feet an arc length of 308.95 feet (with a chord of
308.93 feet bearing N27°54’41”W), to a Massachusetts
Highway Bound on the easterly sideline of said Route 495;
thence running

 

 

	 	 	 

	N16°25’12”W

	 	a distance of 564.18 feet the previous two courses being along
the easterly sideline of said Route 495 to a point at land now
or formerly of Setrak G. & Agnes Yergatian; thence running
	 
	 	 
	N01°53’56”W

	 	a distance of 57.37 feet by land now or formerly of said Setrak
G. & Agnes Yergatian to a point at land now or formerly of
Henry R. & Doris E. Melin; thence running
	 
	 	 
	N03°50’04”W

	 	a distance of 66.38 feet to a point; thence running
	 
	 	 
	N00°28’56”W

	 	a distance of 59.14 feet the previous two courses by land now
or formerly of said Henry R. & Doris E. Melin to a point on the
easterly sideline of said Route 495; thence running
	 
	 	 
	Northeasterly

	 	along the arc of a non-tangent curve to the right having a
radius of 160.00 feet an arc length of 48.70 feet (with a chord
of 48.51 feet bearing N36°23’ 43”E) to a point on the southerly
sideline of said West Central Street; thence running
	 
	 	 
	N69°46’54”E

	 	a distance of 162.42 feet to a point on the southerly sideline
of said West Central Street at land now or formerly of Mobil
Oil Corporation; thence running
	 
	 	 
	S07°34’50”E

	 	a distance of 130.54 feet to a point; thence running
	 
	 	 
	N82°25’10”E

	 	a distance of 165.00 feet to a point; thence running
	 
	 	 
	N03°52’42”E

	 	a distance of 75.51 feet to a point; thence running
	 
	 	 
	N07°34’50”W

	 	a distance of 64.60 feet the previous four (4) courses being by
land now or formerly of said Mobil Oil Corporation to a point
on a curve on the southerly sideline of said West Central
Street; thence running
	 
	 	 
	Northeasterly

	 	along the arc of a curve to the right having a radius of
3564.00 feet an arc length of 127.32 feet (with a chord of
127.31 feet bearing N82°33 ’48”E) to a point of tangency;
thence running
	 
	 	 
	S87o02’11”E

	 	a distance of 108.03 feet to a point; thence running
	 
	 	 
	N85°41’54”E

	 	a distance of 48.28 feet to a point of curvature; thence running
	 
	 	 
	Northeasterly

	 	along the arc of a curve to the right having a radius of
1148.00 feet an arc length of 73.34 feet (with a chord of 73.33
feet bearing N87°22’06”E) to a point of compound curvature;
thence running

-2-

 

	 	 	 

	Southeasterly

	 	along the arc of a curve to the right having a radius of 54.00
feet an arc length of 82.60 feet (with a chord of 74.78 feet
bearing S46°25’51”E) to a point of compound curvature; thence
running
	 
	 	 
	Southeasterly

	 	along the arc of a curve to the right having a radius of 74.00
feet an arc length of 6.17 feet (with a chord of 5.85 feet
bearing S04°14’12”E) to a point; thence running
	 
	 	 
	S78°01’00”E

	 	a distance of 109.19 feet to a point on a curve; thence running
	 
	 	 
	Northeasterly

	 	along the arc of a curve to the left having a radius of 54.00
feet a length of 98.09 feet (with a chord of 85.15 feet bearing
N45°31’48”E) to a point of compound curvature; thence running
	 
	 	 
	Southeasterly

	 	along the arc of a curve to the left having a radius of 954.00
feet an arc length of 255.90 feet (with a chord of 255.14 feet
bearing S74°44’49”E) to a point of compound curvature; thence
running
	 
	 	 
	Southeasterly

	 	along the arc of a curve to the left having a radius of 2494.00
feet an arc length of 63.40 feet (with a chord of 63.39 feet
bearing S66°20’03”E) the previous ten (10) courses being along
the southerly sideline of said West Central Street to a point on
a curve on southerly sideline of said West Central Street at the
point of beginning.

The above described land contains 33.664 acres, more or less; excepting the Rail Road Right-of-Way
from the above described parcel of land, Lot 81-61 contains an area of 32.066 acres more or less.

-3-

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