Document:

exv10w38

 

Exhibit 10.38

AGREEMENT OF PURCHASE AND SALE

BETWEEN

FIRST STATES INVESTORS 228, LLC,

a Delaware limited liability company, as SELLER

AND

FPG DF LINCOLN STREET, LLC,

a Delaware limited liability company, as BUYER

Dated: November 2, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	1. AGREEMENT TO BUY AND SELL
	 	 	1	 
	2. PURCHASE PRICE
	 	 	2	 
	3. ESCROW AGENT
	 	 	3	 
	4. TITLE; SURVEY
	 	 	3	 
	5. DEFEASANCE OF MORTGAGE
	 	 	5	 
	6. ESTOPPEL CERTIFICATES AND NON-DISTURBANCE AGREEMENT
	 	 	6	 
	7. OPERATION OF THE PROPERTY PRIOR TO CLOSING
	 	 	7	 
	8. REPRESENTATIONS AND WARRANTIES
	 	 	8	 
	9. CONDITIONS PRECEDENT TO CLOSING
	 	 	13	 
	10. RISK OF LOSS
	 	 	14	 
	11. CLOSING
	 	 	15	 
	12. PRORATIONS AND CHARGES
	 	 	16	 
	13. INSTRUMENTS OF CONVEYANCE AND OTHER DOCUMENTS
	 	 	20	 
	14. DELIVERY AND PAYMENT
	 	 	22	 
	15. BREACH
	 	 	23	 
	16. NO OUTSIDE REPRESENTATIONS/AS-IS SALE/SURVIVING
OBLIGATIONS
	 	 	24	 
	17. SURVIVABILITY
	 	 	26	 
	18. NOTICES
	 	 	26	 
	19. BROKER’S COMMISSION
	 	 	27	 
	20. BINDING EFFECT
	 	 	28	 
	21. ASSIGNMENT
	 	 	28	 
	22. SELLER’S LIMITED LIABILITY
	 	 	29	 
	23. TAX FREE EXCHANGE
	 	 	29	 
	24. SECTION HEADINGS
	 	 	29	 
	25. PRONOUNS
	 	 	29	 
	26. AGREEMENT IN COUNTERPARTS
	 	 	29	 
	27. GOVERNING LAW
	 	 	30	 
	28. TIME OF THE ESSENCE; FAILURE TO ENFORCE NOT A WAIVER
	 	 	30	 
	29. SEVERABILITY
	 	 	30	 

 

 

	 	 	 	 	 
	 	 	Page	 
	30. CONFIDENTIALITY/NO PUBLIC DISCLOSURE
	 	 	30	 
	31. NO PARTNERSHIP
	 	 	30	 
	32. INTENTIONALLY OMITTED
	 	 	30	 
	33. NO RECORDATION
	 	 	30	 
	34. RIGHT OF FIRST REFUSAL
	 	 	31	 
	35. THIRD PARTY BENEFICIARY
	 	 	32	 

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AGREEMENT OF PURCHASE AND SALE

     THIS AGREEMENT OF PURCHASE AND SALE (“Agreement”) dated as of November 2, 2006 is between
First States Investors 228, LLC, a Delaware limited liability company (“Seller”), and FPG DF
Lincoln Street, LLC, a Delaware limited liability company (“Buyer”).

RECITALS

     A. Seller is the owner of a certain tract of land comprised of two (2) parcels of property,
together with a 36 story office tower (the “Building”) and an underground five (5) story parking
garage (the “Garage”) and other improvements thereon, collectively known as State Street Financial
Center, One Lincoln Street, Boston, Suffolk County, Massachusetts.

     B. Seller is the landlord under that certain lease demising portions of the Building (the “SSB
Office Lease”) and that certain lease demising the Garage (the “SSB Garage Lease”; collectively
with the SSB Office Lease, the “State Street Leases”) with SSB Realty LLC (the “State Street
Tenant”).

     C. Seller desires to sell the Property (as hereinafter defined), including, without
limitation, Seller’s interest in the State Street Leases, to Buyer, and Buyer desires to acquire
the Property from Seller.

     NOW, THEREFORE, in consideration of the mutual covenants and promises set forth in this
Agreement, and for other valuable consideration, the receipt and sufficiency of which is each
hereby acknowledged, Seller and Buyer agree as follows:

1. AGREEMENT TO BUY AND SELL.

     Seller shall sell and convey to Buyer, and Buyer shall purchase and accept from Seller, all of
Seller’s right, title, estate, and interest in and to:

     (a) the land described on Schedule 1(a), which is attached to and made a part of this
Agreement, together with all easements, privileges, and appurtenant rights belonging or in
any way appertaining to the land (collectively, the “Land”);

     (b) the Building, Garage and other improvements, and all fixtures attached to the Land
and buildings (collectively, the “Improvements”, and together with the Land, the “Real
Property”);

     (c) such furnishings, furniture, equipment, supplies, and other personal property, if
any, as are owned by Seller and are currently located in or on the Real Property and used
exclusively in the operation or maintenance of the Real Property, but excluding those items
of personal property which are owned by tenants, licensees or other third parties or which may be removed by such parties under the terms of their leases
or which are located in Seller’s or Seller’s agent’s property management office, if any, on

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the Real Property (collectively, the “Personal Property”). The Personal Property is
conveyed subject to depletions, replacements and additions in the ordinary course of
Seller’s business;

     (d) the State Street Leases (as described on Schedule 1(d);

     (e) the State Street Lease Guarantees (as described on Schedule 8 (a) (xi);

     (f) all other agreements, contracts, and contract rights pertaining to the Property and
to which Seller is a party, which have not been assigned to the State Street Tenant pursuant
to its exercise of the SSB Management Rights (as defined in Section 8 (a) (vi) hereof) and
which are assignable by Seller, including without limitation, those described on Schedule
1(e), which is attached to and made a part of this Agreement (collectively, the “Service
Contracts”); and

     (g) all intangible property owned by Seller and used in connection with the Real
Property and Personal Property, including all trademarks and trade names used in connection
with the Property, all plans and specifications, if any, in the possession of Seller which
were prepared in connection with the construction of the Improvements and all licenses,
permits and warranties now in effect with respect to the Property, all to the extent
assignable (collectively, the “Intangible Property”).

     The Real Property, the Personal Property, the State Street Leases, the Service Contracts and
the Intangible Property are collectively referred to in this Agreement as the “Property”.

2. PURCHASE PRICE.

     (a) Subject to the charges and prorations set forth in Section 12 of this Agreement,
Buyer shall pay to Seller at Closing (as hereinafter defined) the sum of Eight Hundred
Eighty Nine Million Dollars ($889,000,000) (the “Purchase Price”) for the purchase of the
Property. The Purchase Price shall be payable by wire transfer of immediately available
federal funds to a bank account designated by Seller to Buyer in writing prior to the
Closing. To enable Seller to make conveyance as herein provided, Seller may, at the
Closing, use the purchase money or any portion thereof to clear the title of any or all
encumbrances or interests, provided that provision reasonably satisfactory to Buyer’s and
Buyer’s lender’s attorneys is made at the Closing for prompt recording of all instruments so
procured.

     (b) On or before 1:00 p.m. Eastern Standard Time on the first business day immediately
following the date of this Agreement, Buyer shall deposit the sum of Twenty Million Dollars
($20,000,000) (the “Deposit”) with Deposit Escrow Agent (as hereinafter defined). If Buyer
closes the transactions contemplated by this Agreement, the Deposit, together with all
interest earned thereon, shall be applied to the Purchase Price.
Otherwise, Deposit Escrow Agent shall disburse the Deposit, together with all interest
thereon, to the party entitled to receive the Deposit as provided by this Agreement.

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3. ESCROW AGENT.

     Chicago Title Insurance Company (“Deposit Escrow Agent” or “Title Company”) shall serve as
escrow agent for the Deposit (“Escrow Agent”) pursuant to the terms of the escrow agreement (the
“Deposit Escrow Agreement”) attached hereto as Schedule 3.

4. TITLE; SURVEY.

     (a) For Buyer’s convenience, Seller has (i) attached hereto as Schedule 4(a) a
commitment by the Title Company to issue an owner’s policy of title insurance insuring the
Real Property (the “Title Commitment”), and (ii) has delivered to Buyer an ALTA survey (the
“Survey”) provided with respect to the Real Property entitled State Street Financial
Center”, dated December 17, 2003, and prepared by Gunther Engineering, Inc. All matters
disclosed by the Survey and all matters set forth in the following sections or provisions of
the Title Commitment are deemed approved by Buyer as “Permitted Exceptions”, except as
otherwise provided in paragraph (d) below: Item 2 in Schedule B, Section 1 and Items 2, 3
and 5 through 14 in Schedule B, Section 2 of the Title Commitment.

     (b) With respect to any continuation or update of the Title Commitment or any update of
the Survey obtained by Buyer subsequent to the date of the Title Commitment, Buyer shall
deliver to Seller, within one (1) business day of receipt of such continuation or update, a
copy of such continuation or update together with a written statement by Buyer of any
objections to title which have appeared for the first time in such continuation or update
(collectively, a “Title Objection”); it being understood that Buyer may not raise as a
Title Objection any matter which pursuant to the following subsection (c) Buyer has agreed
to accept title subject to. If any matter is unsatisfactory, Buyer must specify in such
written notice (the “Title Notice”) the reason such matter(s) are not satisfactory and the
curative steps necessary to remove the basis for Buyer’s disapproval. The parties shall
then have until five (5) business days after the Title Notice (the “Response Date”) to make
such arrangements or take such steps as they shall mutually agree to satisfy Buyer’s
objections(s); provided, however, that Seller shall have no obligation whatsoever to expend
or agree to expend any funds, to undertake or agree to undertake any obligations or
otherwise to attempt to cure or agree to attempt to cure any Title Objections, and Seller
shall not be deemed to have any obligation to attempt to cure any such matters unless Seller
expressly undertakes such an obligation by a written notice to or written agreement with
Buyer given or entered into on or prior to the Response Date and which recites that it is in
response to a Title Notice. Buyer’s sole right with respect to any Title Objections
contained in a Title Notice which Seller has not agreed to satisfactorily resolve shall be
to elect on or before the date which is one
business day after the Response Date to terminate this Agreement in accordance with
Section 5(f) hereof, in which event the Deposit, and all interest thereon, shall be returned
to Buyer, and neither party shall have any further liability to the other hereunder, except
as otherwise provided herein. All Title Objections not included in a Title Notice given by
Buyer to Seller or with respect to which a timely Title Notice is given but Seller fails to

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expressly agree to attempt to cure as provided above shall be deemed approved by Buyer as
“Permitted Exceptions” as provided in paragraph (c).

     (c) At the Closing, Seller shall convey title to the Real Property to Buyer by
Massachusetts statutory (M.G.L. ch.183, Sec.11) quitclaim deed (the “Deed”), duly executed
and acknowledged by Seller and in proper form for recording, conveying good and clear record
marketable fee simple title to the Real Property to Buyer, subject to no exceptions other
than (i) matters created by or to be assumed by Buyer; (ii) matters specifically set forth
in this Agreement; (iii) zoning, building ordinances and bylaws and provisions of existing
and future laws, regulations, restrictions, requirements, ordinances, resolutions and orders
(including, without limitation, any relating to building, zoning and environmental
protection) as to the use, occupancy, subdivision or improvement of the Real Property; (iv)
general and special real estate taxes and assessments (whether or not then a lien on the
date of Closing, but subject to adjustment as hereinafter provided); (v) legal roadways and
highways; (vi) nonmaterial encroachments over a building setback or property line, a
prohibited encroachment of a nonmaterial nature over any easement or any other matter which
does not materially interfere with the use of the Real Property; (vii) the State Street
Leases (and the interests of the tenants and subtenants thereunder); (viii) any state of
facts that a personal inspection of the Real Property might disclose; (ix) any lien or
encumbrance (other than the Permitted Exceptions and subject to the provisions of the
following subsection 4(d)) encumbering the Real Property as to which Seller shall deliver to
Buyer, or to Buyer’s Title Company at or prior to the Closing, payment sufficient to satisfy
the obligations secured by such lien or encumbrance (in the case of liens or encumbrances,
if any, which secure the payment of money) or proper instruments, in recordable form, which
upon recordation will cancel such lien or encumbrance, together with any other instruments
necessary thereto and the cost of recording and canceling the same and which lien or
encumbrance the Title Company will insure, or commit to insure, Buyer against loss or
forfeiture of title to, or collection from, the Real Property without additional cost to
Buyer; (x) any lien or encumbrance that the State Street Tenant is obligated to discharge
under the State Street Leases, and (xi) the Permitted Exceptions. All of the foregoing
exceptions shall be referred to collectively as the “Conditions of Title”.

     (d) Notwithstanding the foregoing, however, Seller agrees to take the actions
reasonably necessary, as provided in Section 5 below, to defease the loan secured by, and
caused to be discharged of record (as contemplated by subsection (c) (ix)) that certain
Mortgage and Security Agreement, dated February 17th, 2004, made by Seller to
Lehman Brothers Bank, FSB and any assignment of lease or UCC financing statement executed in
connection with said mortgage (collectively, the “Mortgage”). Seller also agrees to
discharge other encumbrances securing the payment of money, which may be placed by reason of
the act or omission of Seller on the Property at any time up to and including the date of
Closing (collectively, “Monetary Liens”).

     (e) By acceptance of the Deed and the Closing of the purchase and sale of the Property
Buyer agrees that Seller shall have conclusively satisfied its obligations with respect to
title to the Property. The provisions of this Section 4 shall survive the Closing.

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     (f) If, pursuant to the provisions of Section 34, a ROFR Termination Event (hereinafter
defined) has occurred Buyer may not assert the Right of First Refusal (as hereinafter
defined) as an objection to title or Title Objection. In the event at the time of a
Scheduled Closing Date there is either (x) a notice of pendency filed against the Property,
or (y) an injunction issued staying the Closing or the Seller or Buyer from effecting the
Closing, in either of (x) or (y) by reason of a lawsuit commenced by IPC (hereinafter
defined) claiming a breach of the Right of First Refusal (hereinafter defined), then such
notice of pendency and/or injunction shall be deemed a Title Objection for the purposes of
this Section 4. In the event of a ROFR Termination Event occurred by reason , of IPC not
having accepted the offer set forth in the ROFR Offer Notice, as described in Section 34
hereof, Seller shall upon the request of the title company insuring Buyer’s title to the
Real Property deliver to such title company a certificate stating that Seller did not
receive an acceptance of the offer set forth in the ROFR Offer Notice.

5. DEFEASANCE OF MORTGAGE.

     (a) Seller and Buyer acknowledge that to complete the transactions herein contemplated
the Mortgage must be defeased prior to Closing. Buyer further acknowledges that it has
received and reviewed Section 2.4 of the Loan Agreement executed between Seller and Lehman
Brothers Bank FSB in connection with the Mortgage, which section sets forth the procedures
for defeasance of the Mortgage.

     (b) Seller agrees that it shall take such reasonable and customary actions as may be
required to effect such defeasance and thereby discharge of record the Mortgage.

     (c) Buyer covenants and agrees that it shall take all reasonable and customary actions
(at Seller’s expense (other than Buyer’s legal fees)) to assist Seller in connection with
the defeasance. Without limiting the generality of the foregoing, not later than the fifth
(5th) business day prior to the Scheduled Closing Date (such date being time of
the essence), Buyer (at Seller’s request) shall enter into, and shall take such reasonable
and customary actions to cause any mortgage lender providing it financing for this
transaction to enter into, an escrow agreement to be prepared by Seller (the “Closing Escrow
Agreement”) with Seller, the title company that shall insure Buyer’s title (the “Closing
Escrow Agent”) and the holder of the Mortgage (or its servicer), which Closing Escrow
Agreement shall provide (A) that Buyer and/or its mortgage lender shall deposit into escrow
with the Escrow Agent on or before 12:00 p.m. EST on the second (2nd) business
day (unless the holder of the Mortgage or its servicer requires it to be done on the third
(3rd)) prior to the Scheduled Closing Date (as such term is defined in Section 11
and such date and time being time of the essence), funds (the “Funds”) in that amount
necessary to purchase the Defeasance Collateral (as defined in said Loan Agreement), (B)
that the Funds shall be
released from escrow to purchase the Defeasance Collateral
immediately
prior to the transfer of title to the Property to Buyer, subject only to the Title
Company agreeing to issue a title commitment in favor of the Buyer’s mortgage lender,
effective as of the date of release of the Funds, which commitment shall insure the mortgage
to be taken by such lender as a first priority mortgage lien, subject only to the exceptions
to title that Buyer is required to accept under this Agreement,(C) that the Funds shall be

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released from escrow and returned to Buyer in the event Buyer is entitled to a return of the
Deposit, and (D) such other terms and conditions as are customary in transactions involving
the simultaneous sale of property and the defeasance of the mortgage encumbering such
property. The aforesaid reference to the Buyer’s mortgage lender shall not be deemed to mean
that this transaction is subject to or contingent upon Buyer obtaining financing.

     (d) Seller and Buyer shall upon request provide to the other reasonable evidence of the
actions each has taken to discharge their respective obligations under the foregoing
provisions of this Section 5.

     (e) Buyer shall engage a title company to insure Buyer’s title to the Real Property,
which title company shall perform, without compensation, the obligations of the Closing
Escrow Agent set forth in this Agreement (including without limitation, the obligations set
forth in subsection (c) above).

6. ESTOPPEL CERTIFICATES AND NON-DISTURBANCE AGREEMENT

     (a) (i) Seller shall request of the State Street Tenant that it execute and deliver (i)
an estoppel certificate with respect to the SSB Office Lease and the SSB Garage Lease
substantially in the form attached to the SSB Office Lease and substantially in the form
required by the SSB Garage Lease (collectively, the “SSB Estoppel”), and (ii) a statement
pursuant to Section 24.3(d) of the SSB Office Lease (as amended and restated pursuant to
Section 7 of that certain Second Amendment to Lease, dated as of February 13, 2004, which
forms a part of the SSB Office Lease (the “Second Lease Amendment”)), substantially to the
effect that the State Street Tenant’s right of first offer has been waived or lapsed with
respect to the sale of the Real Property provided for under this Agreement (the “SSB RoFo
Certificate”).

           (ii) It shall be a condition of Buyer’s obligation to close title hereunder that the
Seller deliver to Buyer the SSB RoFo Certificate and the SSB Estoppel and that the SSB
Estoppel not contain statements which are inconsistent, in any material respect, with the
representations of Seller contained in Section 8(a) (vi) hereof. In the event the SSB
Estoppel contains statements that are materially inconsistent with such Seller’s
representations then the SSB Estoppel shall nonetheless be deemed acceptable, provided that
Seller (if it shall so elect) shall either provide Buyer with a credit against the Purchase
Price in the amount necessary to cure the defaults of Seller set forth in the SSB Estoppel
(provided that such defaults are reasonably quantifiable) or, if Seller shall dispute that
such default(s) exists, deposit with the Deposit Escrow Agent the estimated amount of the
cost to cure such default(s), provided that such defaults are reasonably
quantifiable, which deposit shall be held by the Deposit Escrow Agent under the terms of an
escrow agreement substantially in accordance with the Deposit Escrow Agreement and which
shall provide that the deposited sums shall be released to Seller and/or Buyer, as the case
may be (i.e., Seller shall be entitled to the amounts relating to any disputes with the
State Street Tenant which are resolved in Seller’s favor and Buyer shall be entitled to the
amounts relating to any disputes which are resolved in the State Street Tenant’s favor, less
any sums which shall have been paid or is payable to State Street

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Tenant.) Seller shall
have the right to take such actions as may be necessary to pursue any such disputes,
including commencing and defending actions, as appropriate, against the State Street Tenant.
In the event that any such dispute shall not have been resolved within eighteen (18) months
following the Closing (plus such additional time as may be necessary to complete any appeal
of any such action or proceeding), then Buyer shall have the right upon thirty (30) days
prior notice to Seller, to assume the responsibility to contest (in good faith) and/or
settle such dispute on Seller’s behalf. Any such settlement shall require Seller’s consent,
which shall not be unreasonably withheld or delayed. The provisions of this Section shall
survive the Closing. The Seller amounts that shall be credited against the purchase price
or deposited in escrow, as provided above, shall be mutually agreed to by Seller and Buyer
in the exercise of their reasonable good faith judgment.

          (iii) Notwithstanding anything to the contrary set forth in this Agreement (i) if the
State Street Tenant shall deliver a single estoppel certificate with respect to both the SSB
Office Lease and the SSB Garage Lease, such single certificate shall be treated as the SSB
Estoppel if it otherwise satisfies the provisions of this Section, and (ii) if the SSB
Estoppel contains provisions that are substantially the same as those required to be set
forth in the SSB RoFo Certificate, then the delivery of such SSB RoFo Certificate shall not
be required under this Agreement.

     (b) Seller agrees that it shall request that the State Street Tenant execute and
deliver to any lender that will be providing mortgage financing for its acquisition, a
subordination, non-disturbance and attornment agreement in the form specified under the
State Street Leases.

7. OPERATION OF THE PROPERTY PRIOR TO CLOSING.

     (a) From the date of this Agreement to the Closing Date, Seller:

     (i) shall maintain and operate the Real Property, subject to the SSB Management
Rights (as defined in Section 8 (a) (vi)) and in accordance with the Seller’s
practices since the State Street Tenant has commenced the exercise of the SSB
Management Rights;

     (ii) shall not modify, amend, renew, extend or terminate any of the State
Street Lease Guarantees or State Street Leases without the prior written consent of
Buyer, unless such modification, amendment, renewal, extension or
termination is required pursuant to the terms of any of the State Street Leases
or is entered into to effectuate or memorialize the exercise of any right or option
contained in any of the State Street Leases. Further, Seller may grant such
consents as may be required to be granted by the lessor under the State Street
Leases (including those consents as to which the lessor’s consent is required to not
be unreasonably withheld). In no event, however, shall Seller exercise any right,
with respect to a proposed subletting, to recapture any portion of the premises
demised under the State Street Leases, without the consent of Buyer. In the event
Seller takes any action under this subsection that does not require

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Buyer’s consent
Seller shall make reasonable efforts to provide Buyer with reasonably prompt notice
prior to such action.

     (iii) shall not (x) enter into any new leases or tenancies with respect to the
Property, or (y) except to the extent required under the State Street Leases, enter
into any other new agreements or contracts which would be binding on Buyer, unless
the same are terminable upon not more than thirty (30) days’ notice;

     (iv) shall maintain and keep in full force and effect insurance on the Real
Property in amounts substantially comparable to that currently in effect; and

     (v) shall comply, in all material respects, with the terms and provisions of
the State Street Leases.

(b) Buyer covenants and agrees that it shall not communicate with State Street
Tenant without Seller’s consent, provided, however, (i) that Buyer may meet with
State Street Tenant if Seller is given reasonable advance notice of such meeting and
is afforded an opportunity to attend such meeting, and (ii) may enter into written
communications with State Street Tenant, provided that true and complete copies of
all such communications shall be promptly delivered to Seller. For the avoidance of
doubt, email and text communications shall be deemed to be written communications.

(c) Seller covenants and agrees to promptly request of all third party consultants
and providers of reports relating to the Project and delivered to Buyer that said
consultants issue to Buyer and its permitted assigns, lenders and rating agencies
such reports and reliance letters relating thereto as Buyer shall reasonably
request.

8. REPRESENTATIONS AND WARRANTIES.

     (a) Seller represents and warrants to Buyer as follows:

     (i) Seller is and will be on the Closing Date a limited liability company duly
organized and validly existing under the laws of the State of Delaware, and Seller
has and will have on the Closing Date all necessary power and authority to: (A)
carry on the business for which it has been organized; (B) own and operate the
Property; and (C) enter into and perform Seller’s obligations under this Agreement.

     (ii) Seller has taken all actions required to be taken under the laws of the
State of Delaware and under Seller’s operating agreement to approve or authorize the
execution and delivery of this Agreement and consummation of the transactions
contemplated in this Agreement.

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     (iii) Neither the execution of this Agreement nor the consummation of the
transactions contemplated in this Agreement will constitute a violation of, be in
conflict with, or constitute a default under (or with the passage of time or
delivery of notice, or both, would constitute a default under) any term or provision
of Seller’s operating agreement or, to the actual knowledge of Seller, any other
agreement, lease, or other instrument by which the Property is bound.

     (iv) No litigation, proceeding, or action is pending or, to Seller’s actual
knowledge, threatened against or relating to the Property or Seller, that could
materially adversely affect the Property or its ownership or operation by Buyer,
except as shown on Schedule 8(a)(iv).

     (v) No condemnation proceeding is pending or, to Seller’s actual knowledge,
threatened against or relating to the Real Property.

     (vi) As to the State Street Leases:

     (A) the State Street Leases are set forth on Schedule 1(d) and true,
complete and correct copies of the State Street Leases (including all
amendments thereto) have been delivered to Buyer;

     (B) except as disclosed on Schedule 8(a)(vi)(B), which is attached to
and made a part of this Agreement, (x) to the actual knowledge of Seller
the State Street Tenant is not in default in any material respect under the
terms of the State Street Leases and (y) Seller has not delivered to the
State Street Tenant a notice of any material default;

     (C) except as disclosed on Schedule 8(a)(vi)(C), which is attached to
and made a part of this Agreement, to the actual knowledge of the Seller
(x)the State Street Tenant has not made any written claim that the Seller is
in default in any material respect under the terms of the State Street
Leases, and (y) Seller is not in material default under the State Street
Leases;

     (D) the State Street Tenant has elected pursuant to Section 2.2(a) of
the Second Amendment to assume certain responsibilities with respect to the
operation and management of the Property (the “SSB Management Rights”);

     (E) the Seller has delivered to the State Street Tenant the Offer
Notice (as such term is defined in the Second Amendment), a true and
complete copy of such Offer Notice is attached hereto as Schedule
8(a)(vi)(E), and the State Street Tenant has not delivered to Seller a
Notice of Interest (as defined in the Second Amendment);

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     (F) the Seller has not entered into, nor assumed the obligations under,
any brokerage agreement with respect to the State Street Leases; and

     (G) there are no sums due to the State Street Tenants with respect to
tenant improvements the State Street Tenants have made to the Real Property.

     (vii) As to the Service Contracts,

     (A) complete, true, and correct copies of all written Service Contracts
disclosed on Schedule 1(e) have been delivered to Buyer (it being
acknowledged by Buyer that in light of the State Street Tenant having
elected the SSB Management Rights there may be other agreements that affect
the operation of the Property that are not Service Contracts hereunder);

     (B) except as disclosed on Schedule 8(a)(vii)(B), which is attached to
and made a part of this Agreement, to the actual knowledge of Seller,
neither Seller nor any other party under any Service Contract is in default
in any material respect under any Service Contract.

     (viii) Seller is not (x) identified on the OFAC List (as hereinafter defined)
or (y) a person with whom a citizen of the United States is prohibited to engage in
transactions by any trade embargo, economic sanction, or other prohibition of United
States law, rule, regulation, or Executive Order of the President of the United
States. The term “OFAC List” shall mean the list of specially designated
nationals and blocked persons subject to financial sanctions that is maintained by
the U.S. Treasury Department, Office of Foreign Assets Control and any other similar
list maintained by the U.S. Treasury Department, Office of Foreign Assets Control
pursuant to any law, rule, regulation or Executive Order of the President of the
United States, including, without limitation, trade embargo, economic sanctions, or
other prohibitions imposed by Executive Order of the President of the United States.

     (ix) the Seller has delivered to Buyer a true and complete copy of that certain
License Agreement, dated July 1, 2004, between Seller and the Boston Fire Department
(the “License Agreement”).

     (x) Seller has not granted (and to the actual knowledge of Seller there are no)
rights of first refusal, rights of first offer, options or similar rights to
purchase the Real Property, other than the Right of First Refusal (as hereinafter
defined) and the above described right of first offer held by the State Street
Tenant.

     (xi) the Seller has delivered to Buyer true and complete copies (including any
amendments thereto) of those certain guarantees (the “State Street

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Lease Guarantees)
of the State Street Leases and which State Street Lease Guarantees are described on
Schedule 8(a)(xi) hereto. To Seller’s actual knowledge State Street Corporation is
not in default in any material respect under the terms of the State Street Lease
Guarantees. The Seller has not delivered to the State Street Corporation any notice
alleging a default under the terms of said guarantees.

     (xii) the Seller has delivered to Buyer true and complete copies of the
following two certain Phase I environmental reports that it commissioned with
respect to the Real Property: reports of Haley & Aldrich, dated February, 2004 and
EMG, dated October 2, 2006. Seller has not commissioned any other Phase I or
similar report.

     (xiii) the “operating report” attached to this Agreement as Exhibit B was
prepared by Seller or its affiliate in the normal course of its business.

     (b) Buyer represents and warrants to Seller as follows:

     (i) Buyer is a Delaware limited liability company, duly organized, validly
existing and in good standing under the laws of the State of Delaware, and qualified
to do business in the jurisdiction in which the Property is located, and Buyer has
and will have on the Closing Date all necessary power and authority to: (A) carry
on the business for which it has been organized; (B) own and operate the Property;
and (C) enter into and perform Buyer’s obligations under this Agreement.

     (ii) Buyer has taken all actions required to be taken under the laws of the
State of Delaware and under Buyer’s partnership agreement, articles of incorporation
and by-laws or articles of organization and operating agreement, as the case may be,
to approve or authorize the execution and delivery of this Agreement and
consummation of the transactions contemplated in this Agreement.

     (iii) Neither the execution of this Agreement nor the consummation of the
transactions contemplated in this Agreement will constitute a violation of, be
in conflict with, or constitute a default under (or with the passage of time or
delivery of notice, or both, would constitute a default under) any term or provision
of Buyer’s partnership agreement, articles of incorporation and by-laws or articles
of organization and operating agreement, as the case may be, or any other agreement
or other instrument to which Buyer is bound.

     (iv) Buyer has not (A) made a general assignment for the benefit of creditors,
(B) filed any voluntary petition in bankruptcy or suffered the filing of any
involuntary petition by Buyer’s creditors, (C) suffered the appointment of a
receiver to take possession of all, or substantially all, of Buyer’s assets, (D)
suffered the attachment or other judicial seizure of all, or substantially all, of
Buyer’s assets, (E) admitted in writing its inability to pay its debts as they come

11

 

due, or (F) made an offer of settlement, extension or composition to its creditors
generally.

     (v) Buyer is not (x) identified on the OFAC List, or (y) a person with whom a
citizen of the United States is prohibited to engage in transactions by any trade
embargo, economic sanction, or other prohibition of United States law, rule,
regulation, or Executive Order of the President of the United States.

     (c) When the phrase “to Seller’s actual knowledge” or similar phrase is used with
respect to Seller, it shall (i) be limited to the actual knowledge of Michael Maher only,
who is the employee of Seller’s affiliate and is, and has since the date Seller acquired the
Property been, charged with the day to day operations of the Property, (ii) be deemed to
refer to the current actual, not implied, constructive or imputed, knowledge of such person
as management agent as aforesaid, and not individually, as of the times expressly indicated
only, and without any obligation to make any independent investigation of, or any implied
duty to investigate, the matters being represented and warranted, or to make any inquiry of
any other persons, or to search or to examine any files, records books, correspondence and
the like, and (iii) not be construed to refer to the knowledge of any other beneficial
owner, officer, director, employee, shareholder or agent of Seller. There shall be no
personal liability on the part of the individual named above arising out of any
representations or warranties made herein or otherwise.

     (d) If after the date of this Agreement but prior to the Closing, Buyer obtains
knowledge that any of Seller’s representations and warranties are untrue, inaccurate or
incorrect in any material respect, Buyer shall give Seller notice thereof within five (5)
business days of obtaining such knowledge (but, in any event, prior to the Closing). If
after the date of this Agreement but prior to the Closing, Seller obtains actual knowledge
that any of Seller’s representations and warranties are untrue, inaccurate or incorrect in
any material respect, Seller shall give Seller notice thereof within five (5) business days
of obtaining such knowledge (but, in any event, prior to the Closing). In either such
event, Seller shall have the right to cure such misrepresentation or breach and shall be
entitled to a reasonable adjournment of the Closing (no to exceed ninety (90) days) for the
purpose of such cure. Seller reserves the right, at its sole discretion, at any time during
such period to notify Buyer that it no longer elects to endeavor to effect any such
cure, in which event Buyer shall have two (2) business days from such notice in which
to notify Seller of its election as provided in the next succeeding sentence. If Seller is
unable or elects not to so cure any such misrepresentation or breach, then Buyer, as its
sole remedy for any and all such materially untrue, inaccurate or incorrect representations
or warranties, shall elect either (i) to waive such misrepresentations or breaches or
representations or warranties and consummate the transactions without any reduction of or
credit against the Purchase Price, or (ii) to terminate this Agreement by notice given to
Seller on the Closing Date, in which event this Agreement shall terminate, the Deposit and
all interest thereon shall be returned to Buyer and neither party shall have any further
liability to the other hereunder, except as may otherwise provided herein. The untruth,
inaccuracy or incorrectness of a Seller’s representation or warranty shall be deemed
material only if Buyer’s aggregate damages (including a diminution in the value of the

12

 

Property) resulting from any such untruths, inaccuracies or incorrectness are reasonably
estimated to exceed $5,000,000.

     (e) The representations and warranties set forth in this Section 8 shall survive for
the period of 270 days following consummation of the transactions contemplated by this
Agreement and the recording the Deed and Seller shall be liable to Buyer hereunder for a
breach of a Seller’s representations with respect to which a claim is made by Buyer against
Seller on or before the expiration of said 270 day period and an action is commenced by
Buyer against Seller with respect to such claim within ninety (90) days after such claim is
made. Anything in this Agreement to the contrary notwithstanding, the maximum aggregate
liability of Seller for breaches of Seller’s representations discovered following the
Closing shall not exceed the lesser of Buyer’s actual damages and Twenty Million Dollars
($20,000,000) in the aggregate, nor shall any claim be made for any item for which the claim
of damage is less than Five Hundred Thousand Dollars ($500,000). Notwithstanding the
foregoing, however, if the Closing occurs, Buyer hereby expressly waives, relinquishes and
releases any right or remedy available to it at law or in equity, under this Agreement or
otherwise to make a claim against Seller for damages that Buyer may incur, or to rescind
this Agreement and the transaction, as the result of any of Seller’s representations being
untrue, inaccurate or incorrect if Buyer knew or is deemed to know at the time of the
Closing that such representation or warranty was untrue, inaccurate or incorrect.

9. CONDITIONS PRECEDENT TO CLOSING.

     (a) Buyer’s obligations under this Agreement are expressly conditioned upon completion
or satisfaction of the following matters on or prior to the Closing Date:

     (i) Seller shall have complied, in all material respects, with its obligations
under this Agreement. Without limiting the generality of the foregoing provision,
Seller shall have deposited or have caused to be deposited with the Closing Escrow
Agent all documents required of Seller to be deposited into Escrow hereunder;

     (ii) the SSB RoFo Certificate and the SSB Estoppel in the form required by
Section 6 are delivered to Buyer;

     (iii) The representations and warranties of Seller contained in Section 8(a) of
this Agreement shall be true and correct in all material respects as of the Closing
Date, subject to Section 8(c), (d) and (e) above; and

     (iv) The Real Property is in the As Is Condition (as hereinafter defined).

     (b) Seller’s obligations to perform hereunder are expressly contingent and conditional
upon the satisfaction of the following:

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     (i) Buyer shall have complied, in all material respects, with its obligations
under this Agreement. Without limiting the generality of the foregoing provision,
Buyer shall have deposited or have caused to be deposited with the Closing Escrow
Agent all documents and funds required of Buyer to be deposited into Escrow or paid
hereunder; and

     (ii) The representations and warranties of Buyer contained in Section 8(b) of
this Agreement shall be true and correct in all material respects as of the Closing
Date.

(c) It shall be a condition of each party’s obligation to close on the Closing Date
that (i) a ROFR Termination Event shall have occurred, and (ii) a defeasance of the
Mortgage, as contemplated by Section 5, shall have been effected.

(d) The parties acknowledge that the conditions precedent set forth in subsection
(a) above are for the benefit of Buyer and that the conditions precedent set forth
in subsection (b) above are for the benefit of Seller. Unless otherwise
specifically set forth herein, the date by which the conditions precedent must be
satisfied shall be the Closing Date. If any of the conditions precedent set forth
in subsection (a) or subsection (b) above are not satisfied on or before the date by
which they are required to be satisfied, the party for whose benefit the condition
precedent exists shall have the right to waive such condition and, to the extent
applicable, the rights under Section 15 of this Agreement. If such waiver is not
given then, subject to the rights of the parties under Section 15 hereof in the
event a condition was not satisfied by reason of a default by a party, this
Agreement shall terminate, the Buyer shall be entitled to a return of the Deposit
and all interest thereon, and neither party shall have any rights or obligations
hereunder, except those that survive any such termination of this Agreement.

10. RISK OF LOSS.

     (a) If any part of the Real Property is damaged or destroyed by fire or any other cause
(“Damage”) or subject to a pending, threatened, or completed taking by condemnation or
eminent domain, or a proposed conveyance under threat of either (“Taking”), Seller shall,
obtaining knowledge of same, promptly notify Buyer of the same.

     (b) If the extent of the Damage is such that either the State Street Tenant or Seller
shall have the right under the terms of the SSB Office Lease to terminate such lease, then
Buyer may terminate this Agreement by giving written notice of such termination within ten
(10) days after Seller’s notice of such Damage; provided, however, that if Buyer elects to
so terminate, Seller shall have the right to render such election null and void by giving
notice to Buyer, within ten (10) business days after Seller’s receipt of Buyer’s notice of
election to terminate, confirming that as a condition to the performance of Buyer’s
obligations hereunder, Seller shall not exercise any right it may have to terminate the
State Street Leases on account of the Damage and that Seller shall deliver to Buyer at
Closing a waiver, executed by the State Street Tenant, pursuant to which such

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Tenant waives
its right to terminate the SSB Office Lease on account of the Damage. If Buyer elects to
terminate this Agreement and Seller does not render such election null and void as herein
provided, Deposit Escrow Agent shall return the Deposit, and all interest thereon, to
Buyer, and neither party shall have any further liability to the other hereunder, except as
otherwise provided herein.

     (c) If any such Taking provides the State Street Tenant with the right to terminate the
SSB Office Lease or reduce its rents thereunder, then Buyer may terminate this Agreement by
giving written notice of such termination within ten (10) days after Seller’s notice of such
Taking; provided, however, that if Buyer elects to so terminate, Seller shall have the right
to render such election null and void by giving notice to Buyer, within ten (10) business
days after Seller’s receipt of Buyer’s notice of election to terminate, confirming that as a
condition to the performance of Buyer’s obligations hereunder, Seller shall deliver to Buyer
at Closing a waiver, executed by the State Street Tenant, pursuant to which such Tenant
waives its right to terminate the SSB Office Lease or reduce its rents, as the case may be,
on account of the Taking. If Buyer elects to terminate this Agreement and Seller does not
render such election null and void as herein provided, Deposit Escrow Agent shall return
the Deposit, and all interest thereon, to Buyer, and neither party shall have any further
liability to the other hereunder, except as otherwise provided herein.

     (d) If this Agreement is not terminated pursuant to subsections 10(b) or (c) above,
Seller may elect to (i) repair and restore the Real Property in a good and workmanlike
manner, in which event Seller may adjourn the Closing Date for such reasonable period of
time (but not to exceed 90 days) as may be necessary to effect such repair and restoration,
or (ii) assign to Buyer Seller’s rights to the proceeds of any awards, compensation or
insurance payable. Buyer shall remain obligated to perform this Agreement, and in the case
of damage or destruction covered by insurance, the Purchase Price shall be reduced by the
amount of the deductible, if any, under the insurance policy or policies covering the
Property.

11. CLOSING.

     (a) The closing of the transactions contemplated by this Agreement (the “Closing”)
shall be held at the offices of Bryan Cave LLP, 1290 Avenue of the Americas, New York, New
York 10104, at 10:00 a.m. (New York City time), on December 21, 2006 (said date, as the same
may be adjourned by Seller either pursuant to subsection (b) below or as otherwise provided
in this Agreement or by Buyer pursuant to subsection (b)), being herein called the
“Scheduled Closing Date”), TIME BEING OF THE ESSENCE with respect to the Seller’s and
Buyer’s obligations to close on the Scheduled Closing Date (as the same may be extended,
from time to time, pursuant to the terms hereof). The actual date on which the Closing
occurs is referred to herein as the “Closing Date.”

     (b) Notwithstanding anything to the contrary contained herein, (i) in addition to any
other rights which Seller may have under this Agreement to adjourn the Closing, Seller shall
have the right, exercisable from time to time upon written notice to Buyer

15

 

given on or prior
to the then Scheduled Closing Date, to adjourn the Closing to a business day specified in
such notice, provided that in no event may such adjournments be more than thirty (30) days
in the aggregate, and (ii) Buyer shall have the right, exercisable from time to time upon
written notice to Seller given on or prior to the then Scheduled Closing Date, to adjourn
the Closing to a business day specified in such notice, provided that in no event may such
adjournments be more ten (10) days in the aggregate. In the event Seller shall elect to
adjourn the then Scheduled Closing Date for more than ten (10) business days it shall
provide to Buyer at the Closing a credit in the amount of the cost Buyer incurs in extending
the Rate Lock Agreement (hereinafter defined) to the newly Scheduled Closing Date or in the
event this Agreement is terminated other than by reason of Buyer’s default Seller shall
promptly reimburse Buyer for such amount. Buyer shall upon Seller’s request promptly
provide to Seller the cost of the aforesaid extension. This provision shall survive the
Closing.

     (c) In the event the conditions precedent to Buyer’s obligation to Close (as set forth
in Section 9) are not satisfied (or waived by Buyer) on the originally Scheduled Closing
Date and the Seller does not elect to adjourn the Closing as provided above, then Buyer
shall have the one time right to adjourn the originally Scheduled Closing Date for a period
not to exceed thirty (30) days. This right shall be in addition to the ten (10) day right
of adjournment afforded Buyer under subsection (b) above, provided that if such right is
exercised then the thirty (30) day period in the preceding sentence shall be deemed reduced
to twenty (20) days.

12. PRORATIONS AND CHARGES.

     (a) The following are to be adjusted and prorated between Seller and Buyer as of 11:59
P.M. on the day preceding the Closing Date, based upon a 365 day year, and the net amount
thereof shall be, if such net amount is in Seller’s favor, paid to Seller at the Closing,
or, if such net amount is in Buyer’s favor, paid to Buyer at the Closing:

     (i) Real estate taxes shall be adjusted and prorated on the basis of the fiscal
year for which assessed. If the Closing shall occur before the tax rate or assessed
valuation is fixed for the Real Property, the apportionment of real estate taxes for
the Real Property shall be upon the basis of the tax rate for the preceding year
applied to the most recently applicable assessed valuation of the Real Property,
subject to further and final adjustment when the tax rate and/or assessed valuation
for the Real Property is fixed for the fiscal year in which the Closing occurs. In
the event that the Real Property or any part thereof shall be or shall have been
affected by an assessment or assessments, whether or not the same become payable in
annual installments, Seller shall, at the Closing, be responsible for any
installments due prior to the Closing and Buyer shall be responsible for any
installments due on or after the Closing.

     (ii) Except to the extent paid directly by the State Street Tenant pursuant to
the terms of the State Street Leases, with respect to water rates, water meter
charges and sewer rents and sewer charges (the “Water Charges”), if any,

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Seller
shall endeavor to have the appropriate agencies read the meters for the Water
Charges (if applicable) on or prior to the Closing Date. Seller shall be responsible
for all charges applicable to the period prior to the Closing Date based on such
final meter readings, and Buyer shall be responsible for all charges thereafter. If
such final readings are not obtainable, then, until such time as the final readings
are obtained, all Water Charges for which final readings were not obtained shall be
pro rated as of the Closing Date based upon the per diem rate obtained by using the
last period and bills for such water and sewer usage that are available. Upon the
taking of a subsequent actual final reading after Closing, such apportionment shall
be adjusted to reflect the actual per diem rate for the billing period in which the
Closing Date falls, and Seller or Buyer, as the case may be, shall promptly deliver
to the other the amount determined to be due upon such adjustment. Unmetered Water
Charges shall be apportioned on the basis of the charges therefor for the same
period of the preceding calendar year, but applying the current rate thereto.

     (iii) Vault charges, if any, shall be adjusted and prorated on the basis of the
fiscal period for which assessed.

     (iv) Except to the extent paid directly by the State Street Tenant pursuant to
the terms of the State Street Leases, fuel, if any, on the basis of Seller’s last
cost therefor, including sales tax, as evidenced by a written statement of Seller’s
fuel oil supplier, which statement shall be conclusive as to quantity and cost.

     (v) Except to the extent paid directly by the State Street Tenant pursuant to
the terms of the State Street Leases, Seller shall use reasonable efforts to obtain
readings of meters measuring electricity, steam, gas and other utility consumption
at the Real Property for all periods through (and including) the date preceding the
Closing Date, but in no event prior to the date which is thirty (30) days prior to
the Closing Date, Seller shall pay and be responsible for, all bills rendered on the
basis of such readings. If such readings are not obtained for any metered utility,
then, at the Closing, apportionment shall be made on the basis of the most recent
period for which such readings are available. Upon the taking of subsequent actual
readings, there shall be a recalculations of the applicable utility charges, and
Seller or Buyer, as the case may be, shall promptly remit to the other party any
amounts to which such party shall be entitled by reason of such recalculation (with
Seller being obligated to pay all such utility charges pertaining to the period
prior to the Closing and Buyer being obligated to pay all such utility charges
pertaining to the period thereafter).

     (vi) Amounts payable under all Service Contracts assigned to Buyer at the
Closing.

     (vii) the amount of the reimbursement of “Assumed Service Costs”, as such term
is defined in Section 2.2 of the Second Amendment).

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     (viii) Prepaid (x) fixed or so-called base rent payments (“Fixed Rents”), and
(y) reimbursements or payments in respect of operating expenses, real estate taxes,
and other charges (collectively, “Overage Rent”, together with Fixed Rents shall
hereinafter be referred to collectively as, “Rents”) payable pursuant to the State
Street Leases.

     If any items to be adjusted as set forth in this Section 12 are not determinable at the
Closing, the adjustment shall be made subsequent to the Closing when the charge is
determined. Any errors or omissions in computing adjustments at the Closing shall be
promptly corrected, provided that the party seeking to correct such error or omission shall
have notified the other party of such error or omission on or prior to the date that is six
(6) months following the Closing Date.

     (b) (i) If, on the Closing Date, there are any past due Fixed Rents owing by the State
Street Tenant, Buyer shall use its commercially reasonable efforts to collect the same.
Buyer shall not be obligated to institute legal actions or proceedings against any such
tenant to collect such past due Fixed Rents. Any Rents received directly or indirectly by
Seller or Buyer following the Closing which are the property of the other party, shall be
deemed held in trust and shall be paid to the other party within five (5) business days
following receipt thereof. Upon either party’s request from time to time, the other party
shall provide the requesting party with a certified accounting of all Rents received by it
following Closing.

           (ii) Any Fixed Rents received (net of Buyer’s reasonable costs of collection) after the
Closing from the State Street Tenant for the period prior to the
Closing shall be applied in the following order of priority: (A) first, to Fixed Rent
arrearages with respect to the month in which the Closing occurs (subject to apportionment
pursuant to the terms hereof), (B) second, to Seller for Fixed Rent arrearages for the month
immediately preceding the month in which the Closing occurs; (C) third, to Buyer, until
Fixed Rent for all current periods is paid in full, and (D) fourth after Fixed Rent then due
and payable for all post Closing periods are paid in full, to Seller in payment of Fixed
Rent for periods prior to the month immediately preceding the month in which the Closing
occurs.

           (iii) As to Overage Rent in respect of an accounting period that shall have expired
prior to the Closing, but which shall be paid after the Closing, Buyer agrees that it will
pay the entire amount over to Seller upon receipt thereof, less Buyer’s reasonable costs of
collection reasonably allocable thereto. Buyer agrees that it shall: (A) promptly render
bills for any Overage Rent in respect of an accounting period that shall have expired prior
to Closing but which shall be payable after the Closing, (B) bill the State Street Tenant
such Overage Rent attributable to an accounting period that shall have expired prior to the
Closing, on a monthly basis for a period of six consecutive months, and (C) use commercially
reasonable efforts in the collection of Overage Rent, provided, however, that Buyer shall
have no obligation to commence any legal actions or proceedings to collect any such Overage
Rents. Seller shall furnish to Buyer all information and documentation relating to the
period prior to the Closing that is reasonably necessary for the computation and billing of
such Overage Rent. Buyer shall

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deliver to Seller, concurrently with the delivery to the
State Street Tenant, copies of all statements relating to Overage Rent for periods prior to
the Closing.

               (iv) Overage Rent in respect of the accounting period in which the Closing occurs shall
be apportioned between Seller and Buyer as of 11:59 P.M. of the day preceding the Closing
Date. Seller shall be entitled to receive the proportion of such Overage Rent (less a like
portion of any reasonable costs and expenses incurred in the collection of such Overage
Rent), that the portion of such accounting period prior to the Closing Date bears to the
entire such accounting period. Buyer shall be entitled to receive the proportion of such
Overage Rent (less a like portion of any reasonable costs and expenses incurred in the
collection of such Overage Rent) that the portion of such accounting period from and after
the Closing Date bears to the entire such accounting period.

               (v) To the extent that any portion of the Overage Rent is required to be paid monthly
or on another periodic basis, by the State Street Tenant on account of estimated amounts for
the current period, and at the end of each calendar year (or, if applicable, at the end of
each lease year or tax year, as the case may be), such estimated amounts are to be
recalculated based upon the actual sales, expenses, taxes and other relevant factors for
that calendar (lease or tax) year, with the appropriate adjustments being made with such
tenant, then such portion of the Overage Rent paid shall be prorated between Seller and
Buyer at the Closing, based on such estimated payments (i.e., with Seller entitled to retain
all monthly and other periodic installments of such amounts paid with respect to periods
prior to the calendar month or other relevant period
in which the Closing Date occurs, Seller to pay to Buyer at the Closing all monthly or other
relevant period installments of such amounts paid with respect to periods following the
calendar month or other relevant period in which the Closing occurs and Seller and Buyer
shall apportion all monthly installments of such amounts with respect to the calendar month
in which the Closing occurs) and at the time(s) of final calculation and collection from (or
refund to) the State Street Tenant of the amounts in reconciliation of actual Overage Rent
for a period for which estimated amounts have been prorated, there shall be a reproration
between Seller and Buyer, with the net credit resulting from such reproration being payable
to the appropriate party (i.e., to Seller if the recalculated amounts exceed the estimated
amounts and to Buyer if the recalculated amounts are less than the estimated amounts).

               (vi) Until such time as all amounts required to be paid to Seller by Buyer pursuant to
this Section shall have been paid in full, Seller may from time to time, but not more
frequently than once each calendar month, request that Buyer furnish Seller with a
reasonably detailed accounting of the collection of all Rent. Within ten (10) business days
of its receipt of such request, Buyer shall furnish Seller with such accounting. Seller
shall have the right from time to time following the Closing, on prior notice to Buyer, to
review Buyer’s records with respect to the Property to ascertain the accuracy of such
accountings.

     (c) To the extent that any portion of the reimbursement of Assumed Service Costs is
required to be paid monthly or on another periodic basis, by the Seller on

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account of
estimated amounts for the current period, and at the end of each calendar year such
estimated amounts are to be recalculated based upon the Assumed Service Costs with
appropriate adjustments being made with the State Street Tenant, then Assumed Service Costs
shall be prorated between Seller and Buyer at the Closing, based on such estimated payments
and at the time(s) of final calculation and collection from (or payment to) the State Street
Tenant of the amounts in reconciliation of actual reimbursement of the Assumed Service Costs
for a period for which estimated amounts have been prorated, there shall be a reproration
between Seller and Buyer, with the net credit resulting from such reproration being payable
to the appropriate party.

     (d) Seller shall be responsible for the following costs and charges:

     (i) cost of any transfer taxes or deed stamps required to record the Deed;

     (ii) one-half (1/2) of the escrow fee of the Deposit Escrow Agent;

     (iii) Seller’s attorneys’ fees; and

     (iv) any other fees in connection with the consummation of the transactions
required by the terms of this Agreement to be paid by Seller and not expressly set
forth in this Section 12.

     (e) Buyer shall be responsible for the following costs and charges:

     (ix) cost of recording the Deed and such other instruments as Buyer or Buyer’s
title company may consider necessary or desirable to be recorded;

     (x) cost of Buyer’s title insurance policy and any endorsements thereto to
insure over any title defect;

     (xi) one-half (1/2) of the escrow fee of the Deposit Escrow Agent;

     (xii) Buyer’s attorneys’ fees; and

     (xiii) all other fees in connection with the consummation of the transactions
required to be paid by Buyer by the terms of this Agreement and not expressly set
forth in this Section 12.

     (f) The provisions of this Section 12 shall survive the Closing

13. INSTRUMENTS OF CONVEYANCE AND OTHER DOCUMENTS.

     (a) On or prior to the Closing Date, Seller shall fully and properly execute and
deposit with Closing Escrow Agent the following documents:

     (i) the Deed in the form of Schedule 13(a)(i), which is attached to and made a
part of this Agreement;

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     (ii) a bill of sale (the “Bill of Sale”) in the form of Schedule 13(a)(ii),
which is attached to and made a part of this Agreement, conveying to Buyer good
title to the Personal Property free and clear of all liens and encumbrances;

     (iii) an assignment and assumption of the State Street Leases (the “Assignment
of Leases”), in the form of Schedule 13(a)(iii), which is attached to and made a
part of this Agreement, pursuant to which Seller assigns and Buyer assumes all of
Seller’s right, title, and interest as lessor under the State Street Leases;

     (iv) an assignment of the License Agreement, Service Contracts and the
Intangible Property (the “Assignment of License Agreement, Service Contracts and
Intangible Property”), in the form of Schedule 13(a)(iv), which is attached to and
made a part of this Agreement, pursuant to which Seller assigns and Buyer assumes
all of Seller’s right, title, and interest in and to the Service Contracts and the
Intangible Property;

     (v) a counterpart settlement statement (the “Settlement Statement”) setting
forth the Purchase Price and all amounts charged against Seller pursuant to Section
12 of this Agreement;

     (vi) an affidavit in the form of Schedule 13(a)(vi), which is attached to and
made a part of this Agreement, regarding the non-foreign status of Seller;

     (vii) a closing certificate (the “Seller’s Closing Certificate”) in the form of
Schedule 13(a)(vii), which is attached to and made a part of this Agreement, stating
that, to the actual knowledge of Seller, there is no default under the covenants,
representations and warranties of Seller contained in this Agreement and, in
addition, that all such representations and warranties are true and correct in all
material respects as of the Closing Date as if made on and as of the Closing Date
(or specifying in reasonable detail any defaults or exceptions that may then exist,
provided that Seller shall not take any action that is reasonably likely to result
in any such default or exception);

     (viii) a letter to the State Street Tenant stating that the Property has been
conveyed to Buyer as of the Closing Date and advising such tenant that all future
payments of rent and all other future correspondence regarding the Property should
be delivered to Buyer; and

     (ix) such customary affidavits, evidence and documents as may be reasonably
required by Buyer’s title company in order to issue so-called owner’s and lender’s
title insurance policies insuring Buyer’s title to the Property, as relate to (i)
mechanics’ or materialmen’s liens; (ii) parties in possession; and (iii) the status
and capacity of Seller and the authority of the person or persons who are executing
the various documents on behalf of Seller in connection with the sale of the
Property; provided in no event shall Seller be required to deliver any instrument
that shall impose liability upon it or require Seller to undertake any

21

 

obligations
or make any representations not otherwise provided for in this Agreement.

     (b) On or prior to the Closing Date, Buyer shall fully execute and deposit with Closing
Escrow Agent the following documents and funds:

     (i) the Purchase Price, subject to the closing adjustments contemplated hereby
and after a credit for the Deposit and any sums advanced by Buyer to purchase the
Defeasance Collateral as provided in Section 5 hereof;

     (ii) such evidence or documents as may reasonably be required by Buyer’s title
company evidencing the status and capacity of Buyer and the authority of the person
or persons who are executing the various documents on behalf of Buyer in connection
with the purchase of the Property;

     (iii) a counterpart Assignment of Leases;

     (iv) a counterpart Assignment of Service Contracts and Intangible Property;

     (v) a certificate (“Buyer’s Closing Certificate”) in the form of Schedule
13(b)(v), which is attached to and made a part of this Agreement, stating that there
is no default under the covenants, representations and warranties of Buyer contained
in this Agreement and, in addition, that, to the actual knowledge of Buyer, all such
representations and warranties are true and correct in all material respects as of
the Closing Date as if made on and as of the Closing Date (or specifying in
reasonable detail any defaults or exceptions that may then exist, provided that
Buyer shall not take any action that is reasonably likely to result in any such
default or exception); and

     (vi) a counterpart Settlement Statement setting forth the Purchase Price and
all amounts applied on behalf of or charged against Buyer pursuant to Section 12 of
this Agreement.

14. DELIVERY AND PAYMENT.

     Upon consummation of the transactions contemplated in this Agreement, Closing Escrow
Agent shall disburse funds and documents as follows:

     (a) To Seller:

     (i) the Purchase Price, plus or minus amounts charged against or credited to
Seller hereunder after a credit for the Deposit and any sums advanced

22

 

by Buyer to
purchase the Defeasance Collateral as provided in Section 5 hereof; and

     (ii) executed originals of the documents and other deliveries listed in Section
13(b) above.

     (b) To Buyer:

     (i) the Deed, the Assignment of Leases and title clearing documents (each of
which Buyer may instruct the Closing Escrow Agent to record contemporaneously with
the Closing pursuant to usual and customary escrow instructions for commercial real
estate transactions in Boston, Massachusetts);

     (ii) executed originals of the documents and other deliveries listed in Section
13(a) above, except as provided in (i) above; and

     (iii) the balance, if any, in the escrow account to the credit of Buyer by
check payable to Buyer.

Immediately after Closing, Seller shall deliver, or cause to be delivered, to Buyer, all to
the extent in Seller’s possession, copies of the executed State Street Leases and Service
Contracts, plans and specifications for the Improvements, building permits, certificates of
occupancy, and such other certificates, licenses, and permits as may relate to the operation
of the Property, and the originals or photocopies of all books, accounts, and records
relating to the Property.

15. BREACH.

     (a) If Buyer shall breach the terms of, or default under, this Agreement, as Seller’s
sole remedy the Deposit and all interest thereon shall be retained by Seller as liquidated
damages, and both parties shall be relieved of and released from any further liability
hereunder except for those obligations which specifically survive termination. Seller and
Buyer acknowledge and agree that (a) it would be extremely difficult to accurately determine
the amount of damages suffered by Seller as a result of Buyer’s default hereunder; (b) the
Deposit and such interest is a fair and reasonable amount to be retained by Seller as agreed
and liquidated damages for Buyer’s default under this Agreement; and (c) retention by Seller
of the Deposit and the interest thereon upon Buyer’s default hereunder shall not constitute
a penalty or a forfeiture.

     (b) If Seller shall refuse or fail to convey the Property to Buyer in violation of
Seller’s obligations hereunder for any reason other than a default by Buyer under this
Agreement or otherwise be in breach of any other covenant herein contained, Buyer shall
elect as its sole remedy hereunder either (a) to terminate the Agreement and recover the
Deposit and the interest thereon , or (b) to seek specific performance of Seller’s
obligation to convey the Property pursuant to this Agreement, provided that in no event
shall Seller by obligated to undertake any of the following: (i) change the condition of
the Property or restore the same after fire or casualty; (ii) expend money or post a bond to
remove or

23

 

insure over a title defect or encumbrance or to correct any matter shown on a
survey of the Property; or (iii) secure any permit, approval, estoppel, waiver or consent
with respect to the Property or Seller’s conveyance thereof. Notwithstanding the foregoing,
in the event the breach by Seller is a willful and intentional breach of a material
obligation, the Buyer if it elects to terminate the Agreement and receive the Deposit and
the interest thereon the Buyer may also seek to collect its actual (but not consequential or
punitive) damages, but in no event in an amount to exceed Twenty Million ($20,000,000)
Dollars in the aggregate.

16. NO OUTSIDE REPRESENTATIONS/AS-IS SALE/SURVIVING OBLIGATIONS.

     (a) This Agreement, including the Schedules attached hereto and incorporated herein,
contains all of the terms and conditions agreed upon, it being understood that there are no
outside representations or oral agreements. Any modification of this Agreement shall be in
writing and shall be signed by Seller and Buyer.

     (b) The Property is being sold in an “AS IS, WHERE IS” condition and “WITH ALL FAULTS”,
as of the date hereof, subject to reasonable wear and tear, repairs that are the obligation
of the State Street Tenant and the condition the Property may be in under provisions of
Section 10 of this Agreement (collectively, the “As Is Condition”). Except for Seller’s
representations as set forth in this Agreement and any instruments delivered by Seller at
Closing, no representations or warranties, express, implied or arising by operation of law,
have been made or are made and no responsibility has been or is assumed by Seller or by any
partner, officer, person, firm, agent, attorney, or representative acting or purporting to
act on behalf of Seller as to the condition or repair of the Property or the value, expense
of operation, or income potential thereof or as to any other fact or condition which has or
might affect the Property of the condition, repair, value, expense of operation or income
potential of the Property or any portion thereof. The parties agree that all understandings
and agreements heretofore made between them or their respective agents or representatives
are merged in this Agreement and the schedules and exhibits hereto annexed, which, along
with any confidentiality agreements or access agreements that have been or may be entered
into between the parties, alone fully and completely express their agreement, and that this
Agreement has been entered into after full investigation, or with the parties satisfied with
the opportunity afforded for investigation, neither party relying upon any statement or
representation by the other unless such statement or representation is specifically embodied
in this Agreement or such schedules or exhibits. Seller makes no representations or
warranties as to whether the Property contains asbestos or any hazardous materials or
harmful or toxic substances, or pertaining to the extent, location or nature of same, if
any. Further, to the extent that Seller has provided to Buyer access or use of a physical
or electronic data room or internet site (any such form of access or use referred to as
“Data Room”) or information from any inspection, engineering or environmental reports
concerning asbestos or any hazardous materials or harmful or toxic substances, Seller makes
no representations or warranties with respect to the accuracy or completeness, methodology
of preparation or otherwise concerning the contents of such Data Room or reports, except the

24

 

representations set forth in Section 8 (a) (xii) and (xiii). Buyer acknowledges that Seller
has requested that Buyer inspect the Property fully and carefully and investigate all
matters relevant thereto and that Buyer rely solely upon the results of Buyer’s own
inspections or other information obtained or otherwise available to Buyer, rather than any
information that may have been provided by Seller to Buyer. Buyer expressly understands and
acknowledges that it is possible that unknown liabilities may exist with respect to the
Property and Buyer explicitly took that possibility into account in determining and agreeing
to the Purchase Price.

     (c) Buyer waives and releases Seller from any present or future claims arising from or
relating to the presence or alleged presence of asbestos or any hazardous materials or
harmful or toxic substances in, on, under or about the Property, prior to, on or after the
date hereof, including without limitation any claims under or on account of (i) the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, Massachusetts
Oil and Hazardous Materials Release Prevention and Response Act (as amended) (M.G.L. c.21E
et seq.), Massachusetts Hazardous Waste Management Act (as amended) (M.G.L. c.21C et seq.);
Massachusetts Wetlands Protection Act (as amended)
(M.G.L. c.131, §40 et seq.); Massachusetts Clean Waters Act (as amended) (M.G.L. c.21,
§§26-53 et seq.); Massachusetts Clean Air Act (as amended) (M.G.L. c.111, §142 et seq.); and
Massachusetts Environmental Policy Act (as amended) (M.G.L. c.30, §61 et seq.) as the same
may have been or may be amended from time to time, and similar statutes, and any regulations
promulgated thereunder, (ii) any other federal, state or local law, ordinance, rule or
regulation, now or hereafter in effect, that deals with or otherwise in any manner relates
to, environmental matters of any kind, (iii) this Agreement, or (iv) the common law. The
terms and provisions of this paragraph shall survive Closing hereunder or termination of
this Agreement.

     (d) Seller and Buyer agree that Seller shall, at its sole cost and expense, indemnify
and defend Buyer against the claim of 99 Bedford Corporation disclosed in Schedule 8(a)(iv).
Buyer agrees to reasonably cooperate therewith.

     (e) Buyer acknowledges that Seller has advised Buyer that the State Street Tenant is
conducting an audit of the State Street Tenant’s Rent billings for the 2004 and 2005
calendar years. Seller and Buyer agree that Seller shall be responsible for any sums that
may be due to State Street Tenant as a result of such audits or any settlement in connection
therewith (it being understood that the foregoing is not intended, nor shall it be deemed to
mean, that Seller believes that any sums shall be due to State Street Tenant in connection
with such audit.) In the event any sum is determined to be due to the State Street Tenant
by reason of such audits and the State Street Tenant sets off such sum against the rental
due Buyer, then Seller shall pay that amount to Buyer. Seller and Buyer agree that Seller
shall have the right to control such audits and that Buyer shall reasonably cooperate with
Seller, at Seller’s expense, in connection therewith, provided that Seller shall not settle
without Buyer’s consent (which shall not be unreasonably withheld) any such audit dispute
with the State Street Tenant if the effect of such settlement would adversely affect the
Overage Rents that Buyer is entitled to under the State Street Leases. In the event that
Buyer so withholds its consent, Seller shall have the

25

 

right to require that Buyer assume the
obligation to contest the audit(s) in question at its sole cost and expense and Seller shall
thereupon become liable to reimburse the Buyer for an amount equal to the lesser of (i) the
amount of any final judgment or settlement of the audit, or (ii) the amount that Seller
wished to pay the State Street Tenant to so settle the audit.

     (f) (i) If any tax reduction proceedings in respect of the Real Property, relating to
any fiscal years ending prior to the fiscal year in which the Closing occurs, are pending at
the time of the Closing, Seller reserves and shall have the right to continue to prosecute
and/or settle the same. If any tax reduction proceedings in respect of the Real Property,
relating to the fiscal year in which the Closing occurs, are pending at the time of Closing,
then Seller reserves and shall have the right to continue to prosecute and/or settle the
same; provided, however, that Seller shall not settle any such proceeding
without Buyer’s prior written consent, which consent shall not be unreasonably withheld or
delayed. Buyer shall reasonably cooperate with Seller in connection with the prosecution of
any such tax reduction proceedings.

          (ii) Any refunds or savings in the payment of taxes resulting from such tax reduction
proceedings applicable to the period prior to the date of the Closing shall belong to and be
the property of Seller, and any refunds or savings in the payment of taxes applicable to the
period from and after the date of the Closing shall belong to and be the property of Buyer.
All attorneys’ fees and other expenses incurred in obtaining such refunds or savings shall
be apportioned between Seller and Buyer in proportion to the gross amount of such refunds or
savings payable to Seller and Buyer, respectively, except that Buyer liability for such fees
and other expenses shall not exceed the refund or savings so obtained. Notwithstanding the
foregoing, in the event that the State Street Tenant is entitled to a portion or all of such
refunds pursuant to the State Street Leases, the amount to which such tenant is entitled to
shall be remitted to it.

     (g) The provisions of this Section 16 shall survive the Closing and delivery of the
Deed and shall not be merged thereby.

17. SURVIVABILITY.

     Except for the rights and obligations of Seller and Buyer in Sections 4, 8, 12, 16, 19, 22 and
29 of this Agreement and the obligations of Buyer in Section 5 hereof, which by their express terms
shall survive, none of the rights and obligations of Buyer and Seller shall survive the Closing or
the termination of this Agreement.

18. NOTICES.

     All notices, requests, approvals, consents and other communications required to be given or
delivered under this Agreement shall be in writing and shall be deemed validly given (a)
immediately upon hand delivery, (b) one (1) day following deposit with a courier or express service
guaranteeing overnight delivery, (c) two (2) postal delivery days after deposit in the U.S. mails
by certified mail, return receipt requested, or (d) immediately upon the telephonically confirmed
receipt of a facsimile transmission, addressed as follows:

26

 

	 	 	 	 	 
	 

	 	If to Seller:
	 	First States Investors 228, LLC
	 

	 	 	 	c/o American Financial Realty Trust
	 

	 	 	 	610 Old York Rd.
	 

	 	 	 	Suite 300
	 

	 	 	 	Jenkintown, PA 19046
	 

	 	 	 	Attn: Edward J. Matey, Jr.
	 

	 	 	 	General Counsel
	 

	 	 	 	Telephone: 215-887-2280
	 

	 	 	 	Telecopier: 215-572-1596
	 
	 	 	 	 
	 

	 	with copies to:
	 	Bryan Cave LLP
	 

	 	 	 	1290 Avenue of the Americas
	 

	 	 	 	New York, NY 10104
	 

	 	 	 	Attn: Barry C. Ross, Esquire
	 

	 	 	 	Telephone: (212) 541-2255
	 

	 	 	 	Telecopier: (212) 541-1455
	 
	 	 	 	 
	 

	 	If to Buyer:
	 	FPG DF Lincoln Street, LLC
	 

	 	 	 	184 Kent Avenue, 5th Floor
	 

	 	 	 	Brooklyn, New York 11211
	 

	 	 	 	Attn: Jonathan Landau
	 

	 	 	 	Telephone: (718) 907-7703
	 

	 	 	 	Telecopier: (718) 907 8703
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Bloodworth Carroll & Banowsky, P.C.
	 

	 	 	 	12221 Merit Drive, Suite 1680
	 

	 	 	 	Dallas, Texas, 75251
	 

	 	 	 	Attn: Thomas Bloodworth
	 

	 	 	 	Telephone: (214) 234-2720
	 

	 	 	 	Telecopier(214) 234-2727

or to such other person or address as Seller or Buyer shall have given by notice as herein
provided.

19. BROKER’S COMMISSION.

     Except for Eastdil/Secured, L.L.C. (“Eastdil”) whose fees shall be paid pursuant to a certain
agreement between Seller and Eastdil, Seller and Buyer each represent and warrant to the other that
the warranting party has had no dealing with any other dealer, real estate agent, or broker so as
to entitle such other dealer, agent, or broker to receive any commission or fee in connection with
sale of the Property to Buyer. If for any reason any such commission or fee shall become due, the
party dealing with such dealer, agent, or broker shall pay any such commission or fee and shall
indemnify, defend, and save the other party harmless from and against any and all claims for any
such commission or fee and from any attorneys’ fees and

27

 

litigation or other expenses relating to
any such claim. The provisions of this Section 19 shall survive the Closing or the termination of
this Agreement.

20. BINDING EFFECT.

     This Agreement shall benefit and bind the parties and the heirs, legal representatives,
successors, and assigns of each of them.

21. ASSIGNMENT.

     (a) This Agreement may not be assigned by Buyer without the prior written consent of
Seller which Seller may withhold in its sole and absolute discretion. Except as hereinafter
set forth, a transfer, sale or assignment of any direct or indirect interest in Buyer shall
constitute an assignment of this Agreement. Any assignment or attempted assignment shall be
void if made without the prior written consent of Seller. Notwithstanding the foregoing,
Buyer may, without the consent of Seller (i) admit one or more members to its limited
liability company, provided that following such admission the Buyer remains under the
control of one or more of those persons or entities that control Buyer on the date hereof
(the “Control Group”) and one or more of those persons or entities in the Control Group,
directly or indirectly, owns twenty (20%) percent or more of all of the membership interests
in Buyer, (ii) effective upon the Closing, assign this Agreement to one or more persons or
entities that shall take title as tenants-in-common, provided that each of such persons or
entities executes an agreement in reasonably satisfactory form assuming the obligations
under this Agreement, and that one or more members of the Control Group owns twenty (20%)
percent or more of the equity and other beneficial interests, on an aggregate basis, in such
assignees and control assignees having such twenty (20%) percent interest, and (iii)
effective upon the Closing, assign this Agreement to an entity, provided that such entity
executes an agreement in reasonably satisfactory form assuming the obligations under this
Agreement, and that one or more members of the Control Group control such entity and own
twenty (20%) percent or more of the equity and other beneficial interests therein. Buyer
shall provide to Seller at Closing an instrument certifying that the provisions of this
Section have been complied with. For purposes of this Section 21, the term “control” means
the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting stock, by contract,
or otherwise.

     (b) Buyer agrees that in the event it shall transfer, convey or otherwise dispose of
all or any portion of the Real Property on or before the 180th day following the
Closing Date that it shall pay to Seller a sum equal to 70% of the “Net Proceeds”. The term
Net Proceeds shall mean the amount by which the gross purchase price of the Real Property
(or portion thereof) exceeds the aggregate of (i) the Purchase Price (or proportionate
amount thereof if less than all the Real Property is transferred), and (ii) the reasonable
and customary costs of selling similar property in Boston, MA. The parties agree that (x)
transfers, sales or assignments resulting in there being transferred more

28

 

than eighty (80%)
percent of all of the equity and other beneficial interests in Buyer shall be deemed a
transfer of the Real Property. This provision shall survive the Closing.

22. SELLER’S LIMITED LIABILITY.

     It is hereby expressly agreed that any liability of Seller arising hereunder, for any reason
whatsoever, shall be limited to Seller’s interest in and to the Property and the proceeds thereof.
It is further hereby expressly agreed that in no event shall any member, manager, officer,
director, employee, agent or representative of Seller have any personal liability in connection
with this Agreement or the transaction envisioned herein. The provisions of this Section 22 shall
survive the Closing or the termination of this Agreement.

23. TAX FREE EXCHANGE.

     Seller and Buyer acknowledge and agree that either of them may elect to assign its interest in
this Agreement to an exchange facilitator for the purpose of completing an exchange (the
“Exchange”) which will qualify for non-recognition of gain under Section 1031 of the Internal
Revenue Code, and the Treasury Regulations promulgated thereunder. If any party so elects, the
other party shall cooperate in effecting the Exchange and in implementing any such assignment
provided that such cooperation shall not entail any additional expense (other than nominal amounts)
to the non-electing party or cause the non-electing party to be exposed to any liability or loss of
rights or benefits contemplated under this Agreement. No such assignment shall relieve any party
of its obligations hereunder, nor shall the consummation of an Exchange be a condition to the
performance of such party’s obligations hereunder. In addition, nothing contained in this Section
23 is intended to confer any adjournment rights that are not otherwise available under this
Agreement.

24. SECTION HEADINGS.

     All section headings and other titles and captions used in this Agreement are for convenience
only, do not form a substantive part of this Agreement, and shall not restrict or enlarge any
substantive provisions of this Agreement.

25. PRONOUNS.

     All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine,
neuter, singular, or plural, as the context and the identity of the person or persons may require.

26. AGREEMENT IN COUNTERPARTS.

     This Agreement may be executed in counterparts and all such counterparts shall constitute one
agreement binding on all the parties, notwithstanding that all the parties are not signatories to
the same counterpart.

29

 

27. GOVERNING LAW.

     This Agreement shall be governed by the laws of the Commonwealth of Massachusetts.

28. TIME OF THE ESSENCE; FAILURE TO ENFORCE NOT A WAIVER.

     Time is of the essence of this Agreement. Except as may be expressly provided in this
Agreement, failure by Seller or Buyer to enforce any right shall not constitute a waiver thereof.

29. SEVERABILITY.

     If any provision in this Agreement, or its application to any person or circumstance, is held
to be invalid or unenforceable to any extent, that holding shall not affect the remainder of this
Agreement or the application of that provision to persons or circumstances other than that to which
it was held invalid or unenforceable.

30. CONFIDENTIALITY/NO PUBLIC DISCLOSURE.

     (a) The terms and provisions of that certain Confidentiality Agreement dated as of
October 22, 2006 executed by Buyer are hereby incorporated by reference, as if the same were
fully set forth herein.

     (b) All press releases or other dissemination of information to the media or responses
to requests from the media for information relating to the transaction contemplated herein
which Buyer wishes to issue or provide shall be subject to the prior written approval of
Seller; provided that, following Closing, Seller’s approval shall not be unreasonably
withheld or delayed.

     (c) Seller shall have the right to issue one or more press releases, file Form 8-K
reporting this transaction with the SEC (it Seller determines such filing is required) or
from disseminating other information to the media or responses to requests from the media
for information relating to this transaction.

     (d) The provisions of this Section 30 shall survive the Closing or the termination of
this Agreement.

31. NO PARTNERSHIP.

     Nothing contained in this Agreement shall be construed to create a partnership or joint
venture between the parties or their successors in interest.

32. INTENTIONALLY OMITTED.

33. NO RECORDATION.

30

 

     Neither this Agreement nor any memorandum or short form thereof may be recorded by Buyer. A
violation of this prohibition shall constitute a material breach by Buyer of this Agreement.

34. RIGHT OF FIRST REFUSAL.

     (a) Buyer recognizes that the Real Property is subject to a certain right of first
refusal (the “Right of First Refusal”) benefiting IPC Realty II, LLC
(“IPC”), pursuant to the terms of that certain First Amended and Restated Limited
Liability Company Agreement of First States Investors 228 Holdings A, LLC. (the “First
States Agreement”).

     (b) (i) On the date hereof Seller shall deliver to Federal Express for delivery to IPC
a notice substantially in the form set forth on Exhibit A annexed hereto and made a
part hereof (the “ROFR Offer Notice).

     (ii) If (i) on or before the expiration of the time period afforded IPC to accept the
offer set forth in ROFR Offer Notice (which Seller has advised Buyer is seven (7) business
days, plus the time necessary for the receipt of any acceptance (which in no event, however,
shall be deemed to be more than four (4) business days)) following IPC’s receipt of the ROFR
Offer Notice, IPC shall not have accepted the offer set forth in the ROFR Offer Notice, or
(ii) at any time IPC shall in writing reject the offer set forth in the ROFR Offer Notice or
otherwise waive in writing the Right of First Refusal, then, in any such event (each such
event being referred to herein as a “ROFR Termination Event”), the condition
precedent to Closing that is set forth in Section 9 (c) above shall be deemed satisfied and
the parties hereto shall proceed to the Closing hereunder. Seller shall promptly deliver to
Buyer copies of any such instruments of waiver and/or termination demonstrating the
occurrence of a ROFR Termination Event.

     (iii) If IPC shall accept the offer set forth in the ROFR Offer Notice, then, Seller
shall promptly deliver to Buyer written notice or other evidence of such acceptance (the
“ROFR Acceptance Notice”), accompanied by Seller’s good and sufficient check made
payable to Buyer in the sum of (x) $3,000,000, in the event the ROFR Acceptance Notice is
delivered on or before 5:00 P.M. EST on November 3, 2006, or (x) $6,000,000.00, in the event
the ROFR Acceptance Notice is delivered after 5:00 P.M. EST on November 3, 2006 (in each
case such sum being referred to herein as the “Breakup Fee”). Upon delivery to
Buyer of the ROFR Acceptance Notice and the Breakup Fee, (A) this Agreement shall be deemed
terminated, (B) the Deposit (together with any interest earned thereon) shall be returned to
Buyer, and (C) the parties hereto shall have no further obligation each to the other except
for those obligations which expressly survive the termination of this Agreement (it
being understood that the return of the Deposit and payment of the Breakup
Fee to Buyer shall be deemed full and complete compensation to Buyer for the failure of the
transactions herein contemplated to be consummated as a result of IPC’s acceptance of ROFR
Offer Notice).

     (c) If an ROFR Termination Event shall occur, then on or before the seventh
(7th) business day following same Buyer shall deliver to Seller a true an
complete copy of

31

 

a Rate Lock Agreement. A Rate Lock Agreement shall mean an agreement that
is in full force and effect between Buyer and an institutional lender from which it is
seeking financing for this transaction, which agreement shall (w) lock the rate of interest
on that amount of proposed loan or portion of the proposed loan that Buyer is seeking (which
amount shall not be less than $700,000,000, (x) have a term that will not expire prior to
December 31, 2006, and (y) shall be extendable by Buyer for one or more periods not to
exceed 30 days in the aggregate and at a cost not to exceed that which is customary for such
extension, and (z) shall otherwise be on terms that are customary for such agreements.

     (d) Seller shall, from and after delivery to IPC of the ROFR Offer Notice, continue to
have the right to deal with and carry on discussions with IPC.

     THIRD PARTY BENEFICIARY.

     Nothing in this Agreement is intended or shall be construed to confer upon or to give
to any person, firm or corporation (including, without limitation, IPC) other than the
parties hereto any right, remedy or claim under or by reason of this Agreement. All terms
and conditions of this Agreement shall be for the sole and exclusive benefit of the parties
hereto. No party, other than the named Seller or Buyer shall be liable hereunder as a
disclosed or undisclosed principal.

36. GUARANTY.

     First States Group, L.P. has joined in this Agreement soley to evidence its agreement
that is shall guarantee the obligations of Seller that survive the Closing,
including the obligation to pay any damages that the Seller may be liable for. This
guaranty shall not be limited by the provisions of Section 22 hereof.

32

 

     IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the date first
set forth at the beginning of this Agreement.

	 	 	 	 	 	 	 	 	 
	 	 	SELLER:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	First States Investors 228, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Glenn Blumenthal	 	 
	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BUYER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	FPG DF Lincoln Street, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Guarantor:	 	 
	 	 	First States Group, LP,	 	 
	 	 	By: First States Group, LLC, its general partner	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

33

 

LIST OF SCHEDULES

	 	 	 
	Schedule 1(a)

	 	Legal Description of the Land
	Schedule 1(d)

	 	List of Leases
	Schedule 1(e)

	 	List of Service Contracts
	Schedule 3

	 	Deposit Escrow Agreement
	Schedule 4(a)

	 	Title Commitment and Survey
	Schedule 8(a)(iv)

	 	Litigation
	Schedule 8(a)(vi)(B)

	 	State Street Tenant Defaults
	Schedule 8(a)(vi)(C)

	 	State Street Tenant Claims
	Schedule 8(a)(vi)(E)

	 	RoFo Notice
	Schedule 8(a)(vii)(B)

	 	Defaults Under Service Contracts
	Schedule 8(a)(xi)

	 	State Street Lease Guarantees
	Schedule 13(a)(i)

	 	Form of Deed
	Schedule 13(a)(ii)

	 	Form of Bill of Sale
	Schedule 13(a)(iii)

	 	Form of Assignment of Leases
	Schedule 13(a)(iv)

	 	Form of Assignment of License Agreements, Service
Contracts and Intangible Property
	Schedule 13(a)(vi)

	 	Form of Affidavit of Non-Foreign Status
	Schedule 13(a)(vii)

	 	Form of Seller’s Closing Certificate
	Schedule 13(b)(v)

	 	Form of Buyer’s Closing Certificate
	Exhibit A

	 	Form of ROFR Offer Notice
	Exhibit B

	 	Form of Operating Report

1

 

SCHEDULE 1(a)

Legal Description of the Land

See Following Pages

2

 

SCHEDULE 1(d)

List of Leases

	1.	 	Lease dated May 9, 2001, by and between Kingston Bedford Joint Venture LLC, as
Landlord, and SSB Realty LLC, as Tenant, as amended by First Amendment to Lease dated
August 15, 2003, by and between Kingston Bedford Joint Venture LLC, as Landlord, and SSB
Realty LLC, as Tenant, as amended by Second Amendment to Lease dated February 13, 2004, by
and between First States Investors 228 LLC, as Landlord, and SSB Realty LLC, as Tenant, as
amended by Third Amendment To Lease dated December 22, 2004, by and between First States
Investors 228 LLC, as Landlord, and SSB Realty LLC, as Tenant.

	2.	 	Garage Lease dated May ___, 2004, by and between First States Investors 228 LLC, as
Landlord, and SSB Realty LLC, as Tenant.

3

 

SCHEDULE 1(e)

List of Service Contracts

None

4

 

SCHEDULE 3

Deposit Escrow Agreement

Escrow Agreement

DEPOSIT ESCROW AGREEMENT

THIS DEPOSIT ESCROW AGREEMENT, entered into as of ___, 2006 by and among First States
Investors 228, LLC, a Delaware limited liability company
(“Seller”), ___ (“Buyer”)
and Chicago Title Insurance Company (the “Escrow Agent”).

     WHEREAS, Seller and Buyer have entered into an Agreement of Purchase and Sale dated the date
hereof (the “P&S”) for the transfer of certain property located at One Lincoln Street, Boston,
Massachusetts from Seller to Buyer;

     WHEREAS, Seller and Buyer desire to have Escrow Agent act as an escrow agent with respect to
the Deposit under such P&S;

     NOW, THEREFORE, in consideration of the foregoing, and of the mutual covenants and agreements
hereinafter set forth, the parties, intending to be bound legally, agree as follows:

1. Buyer shall pursuant to the terms of the P&S deliver to the Escrow Agent by wire transfer the
deposit described in the P&S in the amount of ___ ($___) to be held in
accordance with the terms and conditions of this Agreement (the Deposit so deposited, with all
interest thereon, shall be hereinafter referred to as the “Deposit”). Buyer hereby advises Seller
and Escrow Agent that Buyer’s Employer Identification is
___ so that Escrow Agent may establish
an interest bearing escrow account.

2. Upon delivery of the Deposit, the Escrow Agent agrees to acknowledge receipt of same
and agrees to hold and keep same in accordance with terms and conditions hereof, and to
deliver the Deposit upon the occurrence of the conditions hereinafter set forth. The
Deposit shall be invested at either Citizen Bank, Wilmington Trust or Bank of America.

3. The Escrow Agent shall deliver the Deposit in accordance with the following terms and
conditions:

     a. The Deposit to Seller, to be credited toward the Purchase Price, upon completion of the
Closing in accordance with the P&S;

     b. The Deposit to Seller, after receipt of Seller’s written demand in which Seller certifies
that Buyer has defaulted under the P&S and Seller is thereby entitled to receive the Deposit
pursuant to the P&S; but Escrow Agent shall not honor Seller’s written demand until more than ten
(10) Business Days (as hereinafter defined) after Escrow Agent has sent a copy of Seller’s written
demand to Buyer in accordance with Paragraph 14 hereof, nor thereafter if Escrow Agent receives a
Notice of Objection (as hereinafter defined) from Buyer within such ten (10) Business Day period;
or The Deposit to Buyer, after receipt of Buyer’s written demand in

5

 

which Buyer certifies either (i) that Seller has defaulted under the P&S, and that the Buyer is
entitled to the return of the Deposit, or (ii) the P&S has otherwise been terminated or canceled in
accordance with the terms thereof, and Buyer is thereby entitled to receive the Deposit; but Escrow
Agent shall not honor Buyer’s written demand until more than ten (10) Business Days after Escrow
Agent has send a copy of Buyer’s written demand to Seller in accordance with Paragraph 14 hereof,
nor thereafter if Escrow Agent receives a Notice of Objection (hereinafter defined) from Seller
within such ten (10) Business Day period;

     c. Upon delivery of the entire Deposit, Escrow Agent shall be relieved of all liability
hereunder.

4. Upon receipt of written demand in accordance with the terms of paragraph 3 (b), the Escrow Agent
shall send a copy of such written demand to the other party. Within ten (10) Business Days after
the date of sending such copy, but not thereafter, the other party may object to delivery of the
Deposit to the other party by giving written notice of objection (a “Notice of Objection”) to
Escrow Agent. After receiving a Notice of Objection, Escrow Agent shall send a copy of such Notice
of Objection to the party who filed the written demand; and thereafter, in its sole and absolute
discretion, Escrow Agent may elect:

     a. to continue to hold the Deposit or any portion thereof until Escrow Agent receives a
written agreement of Buyer and Seller directing the disbursement of the Deposit in dispute, in
which event Escrow Agent shall disburse such Deposit in accordance with such agreement; and/or

     b. to take any and all such actions as Escrow Agent deems necessary or desirable, in its sole
and absolute discretion, to discharge and terminate its duties under, this Escrow Agreement,
including (but not limited to) depositing the Deposit or any remaining portion thereof into any
court of competent jurisdiction and the bringing of any action of interpleader or any other
proceeding; and/or in the event of any litigation between Seller and Buyer relating to the
disposition of the Deposit, to deposit the Deposit or any remaining portion thereof with the clerk
of the court in which such litigation is pending;

5. If Escrow Agent is uncertain for any reason whatsoever as to its duties or rights hereunder (and
whether or not the Escrow Agent has received any written demand under Paragraph 3 or Notice of
Objection under Paragraph 4), notwithstanding anything to the contrary herein, Escrow Agent may
hold the Deposit pursuant to the terms hereof and may decline to take any other action whatsoever.
In the event the Deposit is deposited in a court by Escrow Agent pursuant to Paragraphs 4 (b),
Escrow Agent shall be entitled to rely upon the decision of such court. In the event of any
dispute whatsoever among the parties with respect to the disposition of the Deposit or any
remaining portion thereof, Buyer and Seller shall pay the attorneys’ fees and costs incurred by
Escrow Agent (which said parties shall share equally, but for which such parties shall be jointly
and severally liable) for any litigation in which Escrow Agent is named as, or becomes, a party.

6. The Escrow Agent undertakes to perform only those duties which are expressly set forth in this
Agreement and acknowledges that these duties are purely ministerial in nature. The

6

 

Escrow Agent shall be entitled to receive reimbursement as Escrow Agent of documented reasonable
attorneys’ fees and other documented out-of-pocket expenses incurred by it in the performance of
its duties under this Agreement, which shall be paid in equal amounts by Buyer and Seller.

7. Each of Buyer and Seller agrees to indemnify and hold harmless the Escrow Agent, its , officers,
partners, employees and agents against any and all cost, losses, claims, damages, liabilities and
expenses (including reasonable costs of investigation, court costs and attorney’s fees) which may
be imposed upon the Escrow Agent in connection with its acceptance of appointment as Escrow Agent
hereunder (except those arising out of the Escrow Agent’s failure to comply with the provisions of
this Agreement or the negligence or willful misconduct of the Escrow Agent), including any
litigation arising from this Agreement or involving the subject matter hereof.

8. The Escrow Agent may in its sole discretion resign by giving (30) days written notice thereof to
the parties hereto. The parties shall furnish to the Escrow Agent written instructions for the
disposition of the Deposit. If the Escrow Agent shall not have received such written instructions
within the thirty (30) days, the Escrow Agent may petition any court of competent jurisdiction for
the appointment of a successor Escrow Agent and upon such appointment deliver the Deposit to such
successor. The costs and fees incurred by the Escrow Agent may, at the option of the Escrow Agent,
be deducted from any Deposit held pursuant hereto. The other parties hereto reserve the right to
remove the Escrow Agent at any time, provided ten (10) days’ prior written notice is given to the
Escrow Agent. The Escrow Agent neither approves nor disapproves of this transaction, nor does it
recommend for or against, nor does it have an opinion as to the legality or validity of this
transaction.

9. If the Deposit is at any time attached, garnished, or levied upon under any court order or if
the payment or delivery of the Deposit is stayed or enjoined by any court order, or if any order,
judgment or decree shall be made or entered by any court affecting the Deposit, Escrow Agent is
authorized, in its sole discretion, to rely upon and comply with the order, writ, judgment or
decree. Escrow Agent shall not be liable to any of the parties or to any other person, firm or
corporation by reason of such compliance even though the order, writ, judgment or decree may be
subsequently reversed modified, annulled, set aside or vacated.

10. Escrow Agent shall not be responsible for (i) any fluctuations in the interest rate applicable
to any cash held by it pursuant to or by virtue of this Agreement; or (ii) the validity,
sufficiency, collectability, or legal effect of any instrument deposited with Escrow Agent.

11. Notwithstanding anything contained in this Agreement to the contrary, Escrow Agent has the
right (but not the obligation) to require from Seller and Buyer a written release of liability of
Escrow Agent, a written authorization to disburse the Deposit, or both. The Escrow Agent shall
incur no liability whatsoever in connection with its good faith performance under this Agreement.
Buyer and Seller release and waive any claims they may have against the Escrow Agent, which may
result from its non-negligent performance in good faith of its duties under this Agreement,
including, but not limited to, a delay in the electronic wire transfer of Deposit. The Escrow Agent
shall be liable only for loss or damage caused directly by its acts of negligence or

7

 

willful, misconduct while performing as Escrow Agent under this Agreement. The Escrow Agent shall
be entitled to rely upon the authenticity of any signature and the genuineness and validity of any
writing received by Escrow Agent relating to this Agreement, so long as the Escrow Agent is acting
in good faith in relying thereon. The Escrow Agent shall not be bound in any way by any contract or
agreement between the other parties hereto, whether or not it has knowledge of any such contract or
agreement or of its terms or conditions.

12. The parties hereto are aware that the Federal Deposit Insurance Corporation (“FDIC”) coverages
apply only to a cumulative maximum amount of $100,000 for each individual deposit for all
depositor’s accounts at the same or related institutions. The parties hereto further understand
that certain banking instruments such as, but not limited to, re-purchase agreements and letters of
credit are not covered at all by FDIC insurance. Further the parties hereto understand that Escrow
Agent assumes no responsibility for, nor will the parties hereto hold Escrow Agent liable for, any
loss occurring which arises from the fact that the amount of the above account may cause the
aggregate amount of any individual depositor’s accounts to exceed $100,000 and that the excess
amount is not insured by the Federal Deposit Insurance Corporation or that FDIC insurance is not
available on certain types of bank instruments.

13. Buyer and Seller severally agree to provide to the Escrow Agent all instruments and documents
within their respective powers necessary for the Escrow Agent to perform its duties hereunder.

14. All notices and other communications required or permitted to be given under or by reason of
this Agreement shall be in writing and shall be deemed to have been duly given on the date of
personal delivery to or on the date of receipt at the addresses or facsimile numbers set forth in
this Section 14 or at such other address as may be specified in writing by the party to whom notice
is to be given. If mailed by first-class, postage prepaid, registered mail, return receipt
requested, such written notices shall be deemed to have been received as of the date set forth on
the return receipt. Notices, demands, and communications will, unless another address is specified
in writing be sent to the persons and at the addresses indicated below:

	 	 	 	 	 
	 

	 	To Seller:
	 	First States Investors 228, LLC
	 

	 	 	 	c/o American Financial Realty Trust
	 

	 	 	 	610 Old York Rd.
	 

	 	 	 	Suite 300
	 

	 	 	 	Jenkintown, PA 19046
	 

	 	 	 	Attn: Edward J. Matey, Jr.
	 

	 	 	 	General Counsel
	 

	 	 	 	Telephone: 215-887-2280
	 

	 	 	 	Telecopier: 215-572-1596
	 
	 	 	 	 
	 

	 	with copies to:
	 	Bryan Cave LLP
	 

	 	 	 	1290 Avenue of the Americas
	 

	 	 	 	New York, NY 10104
	 

	 	 	 	Attn: Barry C. Ross, Esquire
	 

	 	 	 	Telephone: (212) 541-2255

8

 

	 	 	 	 	 
	 

	 	 	 	Telecopier: (212) 541-1455

	 	 	 	 	 	 	 
	 

	 	To Buyer:
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Attention:	 	 
	 

	 	 	 	Fax No.:	 	 
	 
	 	 	 	 	 	 
	 

	 	with copies to:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Attention:	 	 
	 

	 	 	 	Fax No.:	 	 
	 
	 	 	 	 	 	 
	 	 	To Escrow Agent: Chicago Title Insurance Company	 	 
	 

	 	 	 	Suite 2550	 	 
	 

	 	 	 	1601 Market Street	 	 
	 

	 	 	 	Attention: Edwin G. Ditlow	 	 
	 

	 	 	 	Fax No.: 215-568-4880	 	 

15. This Agreement shall be binding upon and shall insure to the benefit of the parties hereto and
their respective successors and assigns as permitted hereunder. No person or entity other than the
parties hereto is or shall be entitled to bring any action to enforce any provision of this
Agreement against any of the parties hereto, and the covenants and agreements set forth in this
Agreement shall be solely for the benefit of, and shall be enforceable only by, the parties hereto
or their respective successors and assigns as permitted hereunder. No party to this Agreement may
assign this Agreement or any rights hereunder without the prior written consent of the parties
hereto.

16. This Agreement contains all the terms agreed upon by the parties with respect to the subject
matter hereof and supercedes all prior oral or written agreements, commitments or understandings
with respect to such matters. This Agreement may be amended only by a written instrument signed by
the party against whom enforcement or any waiver, change, modification, extension or discharge is
sought.

17. This Agreement shall be governed by, and construed according to, the laws of the Commonwealth
of Massachusetts (without regard to the choice of law provisions thereof).

18. This Agreement may be signed upon any number of counterparts with the same effect as if the
signatures on all counterparts are upon the same instrument.

19. For purposes of this Agreement, a “Business Day” shall be any day other than a Saturday,
Sunday, official Federal holiday or legal holiday in the Commonwealth of Massachusetts. If any
payment is to be made or obligation to be performed hereunder is to be made or performed on a

9

 

day other than a Business Day, it shall be deemed to be made or performed in a timely manner if
done on the next succeeding Business Day.

20. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the
P&S.

10

 

IN WITNESS WHEREOF, the parties hereto have executed this ESCROW AGREEMENT as of the date set forth
above.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	First States Investors 228, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Date:
	 	 	, 2006	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	BUYER:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Date:
	 	 	, 2006	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	ESCROW AGENT	 	 
	 
	 	 	Chicago Title
Insurance Company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Date:
	 	 	, 2006	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

11

 

SCHEDULE 4(a)

Title Commitment and Survey

See Following Attachments

12

 

SCHEDULE 8(a)(iv)

Litigation

Claim of 99 Bedford Corporation with respect to damage caused by settlement of the
Improvements. A copy of the letter setting forth such claim is attached hereto.

13

 

SCHEDULE 8(a)(vi)(B)

State Street Tenant Defaults

None

14

 

SCHEDULE 8(a)(vi)(C)

State Street Tenant Claims

None

15

 

SCHEDULE 8(a)(vi)(E)

Defaults under Service Contracts

None

16

 

SCHEDULE 8(a)(vii)(B)

RoFo Notice

17

 

SCHEDULE 8(a)(xi)

	1.	 	Guaranty made by State Street Corporation dated May 9, 2001 for the benefit of Kingston
Bedford Joint Venture LLC

	2.	 	Guaranty made by State Street Corporation dated June 2, 2004 for the benefit of First
States Investors 228 LLC.

18

 

SCHEDULE 13(a)(i)

Form of Deed

QUITCLAIM DEED

     [Name of Grantor], a                                         , having an address at
                    ,                     ,                      County,
                     (the “Grantor”), for consideration of                      and
___/100 Dollars ($                    ) paid, grants to [Name of Grantee], a                     ,
having an address at                     ,                     ,                      County,
                                         (the “Grantee”), with QUITCLAIM COVENANTS,

[Insert Property Description]

[GRANTOR’S SIGNATURE ON FOLLOWING PAGE]

19

 

Witness my
hand and seal this ___ day of                                         , 200___.

	 	 	 	 	 	 	 
	 

	 	 	, a	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

COMMONWEALTH OF MASSACHUSETTS

                                        , ss.

     On
this ___ day of                     , 20___, before me, the undersigned notary public,
personally appeared                                         , proved to me through satisfactory evidence of
identification, which was                     , to be the person whose name is signed on the
preceding or attached document, and acknowledged to me that he/she signed it voluntarily for its
stated purpose as                      [INSERT CORRECT DESCRIPTION OF CAPACITY OF INDIVIDUAL SIGNING]
of First States Investors 228, LLC.

	 	 	 	 	 
	 
	 

	 	 

Notary Public
	 	 
	 
	 	 	 	 
	 

	 	My commission expires:	 	 

20

 

SCHEDULE 13(a)(ii)

Form of Bill of Sale

BILL OF SALE

This
BILL OF SALE is given this ___ day of ___,
20___ by First States Investors 228,
LLC, with an address c/o American Financial Realty Trust, 610 Old York Rd., Suite
300, Jenkintown, PA 19046 (“Seller”), to                     , a
                     (“Buyer”).

     Seller, for good and valuable consideration received from Buyer, the receipt and sufficiency
of which are hereby acknowledged, hereby bargains, sells and conveys to Buyer all furnishings,
furniture, equipment, supplies, and other personal property (hereinafter collectively referred to
as “Personal Property”) of Seller located on, and used in connection with, the real property
located in the City of                     , County of                     , Commonwealth of Massachusetts
                    , which real property is more particularly described in the Agreement of Purchase and
Sale dated
                     ___, 20___ between Seller and Buyer, to have and to hold the Personal
Property unto Buyer, its successors and assigns, forever. Nothing contained in this Bill of Sale
shall be construed to include in the definition of Personal Property any furniture, furnishings,
trade fixtures, equipment or other personal property of any tenant occupying such real property.

     Seller hereby covenant with Buyer that (1) Seller’s interest in the Personal Property is free
and clear from any encumbrances whatsoever; and (2) Seller is the true and lawful owner of the
Personal Property and has good right and lawful authority to bargain and sell the Personal Property
to Buyer in the manner and form as aforesaid. Except as otherwise set forth herein, the Personal
Property is being transferred by Seller to Buyer in its “AS IS” condition, without any
representation or warranty of any kind or nature, express, implied, statutory or otherwise.

     IN WITNESS WHEREOF, Seller has hereunto executed this Bill of Sale as of the date first above
written.

	 	 	 	 	 	 	 	 	 
	Witnesses:	 	 	 	First States Investors 228, LLC,	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 

	 	 

21

 

SCHEDULE 13(a)(iii)

Form of Assignment of Leases

ASSIGNMENT AND ASSUMPTION OF LEASES AND GUARANTEES

     First States Investors 228, LLC, with an address c/o American Financial Realty Trust, 610 Old
York Road, Suite 300, Jenkintown, PA 19046 (“Assignor”), for valuable consideration received,
hereby assigns to           
               
              
               
      , a         
             having an
office at                                                              (“Assignee”) all of Assignor’s right,
title, interest and obligations as owner of certain real property and improvements known as One
Lincoln Street, Boston, Mass., which real property is more fully described on Exhibit A, attached
hereto and incorporated herein by this reference (the “Property”), under each lease and tenancy
affecting the Property (individually, a “Tenant Lease”, and collectively, the “Tenant Leases”) and
the guarantees of same (“Guarantees”), which Tenant Leases and Guarantees are identified and
described on Schedule I, attached to this Assignment and incorporated herein by this reference,
together with all right, power, and authority of Assignor to alter, modify, or otherwise change the
terms of the Tenant Leases and Guarantees and to surrender, cancel, and terminate the Tenant Leases
and Guarantees or any of them, and together with all rents, income, and profits arising from the
Tenant Lease and Guarantees from and after the date of this Assignment, and from any renewals of
the Tenant Leases and Guarantees, including, without limitation, any security and damage deposits
described therein.

     Assignee hereby accepts the foregoing assignment, assumes all of Assignor’s right, title,
interest and obligations under the Tenant Leases and Guarantees, and agrees to indemnify and hold
harmless Assignor from and against any and all loss, cost, damage and expense (including reasonable
attorneys’ fees) arising out of any of the Tenant Leases and Guarantees from and after the date
hereof.

     This Assignment shall benefit and bind Assignor and Assignee and the heirs, legal
representatives, successors, and assigns of each of them.

     IN WITNESS WHEREOF, Assignor, by its duly authorized representative, executes this Assignment
as of the ___ day of                     , 200_.

22

 

	 	 	 	 	 	 	 	 	 
	WITNESSES:	 	 	 	ASSIGNOR:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	First States Investors 228, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:  
 

	 	 
	 

	 	 	 	 
	 	 
 

	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	ASSIGNEE	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

COMMONWEALTH OF MASSACHUSETTS

                    , ss.

     On
this ___ day of                     , 20___, before me, the undersigned notary public,
personally appeared                                         , proved to me through satisfactory evidence of
identification, which was                                         , to be the person whose name is signed on the
preceding or attached document, and acknowledged to me that he/she signed it voluntarily for its
stated purpose as                      [INSERT CORRECT DESCRIPTION OF CAPACITY OF INDIVIDUAL SIGNING]
of First States Investors 228, LLC.

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 
	 
	 	 	 	 
	 

	 	My commission expires:	 	 

COMMONWEALTH OF MASSACHUSETTS

                    , ss.

     On
this ___ day of                     , 20___, before me, the undersigned notary public,
personally appeared                     , proved to me through satisfactory evidence of
identification, which was                     , to be the person whose name is signed on the
preceding or attached document, and acknowledged to me that he/she signed it voluntarily for its
stated purpose as                      [INSERT CORRECT

23

 

DESCRIPTION OF CAPACITY OF INDIVIDUAL SIGNING] of                     .

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 
	 
	 	 	 	 
	 

	 	My commission expires:	 	 

24

 

SCHEDULE 13(a)(iv)

Form of Assignment of License Agreement, Service Contracts and Intangible Property

ASSIGNMENT AND ASSUMPTION OF SERVICE CONTRACTS AND INTANGIBLE PROPERTY

     First States Investors 228, LLC , with an address c/o American Financial Realty Trust 610 Old
York Road, Suite 300, Jenkintown, PA 19046 (“Assignor”), for valuable consideration received,
hereby assigns to                                         , a                      having
an office at                                          (“Assignee”) all of Assignor’s right, title,
interest and obligations as owner of certain real property and improvements known as
                    , which real property is more fully described on Exhibit A,
attached hereto and incorporated herein by this reference (the “Property”), in (i) each contract
for operation or maintenance of the Property (individually, a “Service Contract”, and collectively,
the “Service Contracts”), identified and described on Schedule I attached to this Assignment and
incorporated herein by this reference, (ii) all intangible property owned by Assignor and used in
connection with the Property, including all trademarks and trade names used in connection with the
Property and all licenses, permits and warranties now effect with respect to the Property to the
extent assignable (collectively, the “Intangible Property”), and (iii) the license agreement with
respect to the use of a portion of the roof, identified and described on Schedule I attached to
this Assignment and incorporated herein by this reference.

     Assignee hereby accepts the foregoing assignment, assumes all of Assignor’s right, title,
interest and obligations under, or by reason of, the License Agreement, Service Contracts and the
Intangible Property, and agrees to indemnify and hold harmless Assignor from and against any and
all loss, cost, damage and expense (including reasonable attorneys’ fees) arising out of, or by
reason of, any of the License Agreement, Service Contracts or the Intangible Property from and
after the date hereof.

     This Assignment shall benefit and bind Assignor and Assignee and the heirs, legal
representatives, successors, and assigns of each of them.

     IN WITNESS WHEREOF, Assignor, by its duly authorized representative, executes this Assignment
as of the ___ day of                     , 200_.

	 	 	 	 	 	 	 	 	 
	WITNESSES:	 	 	 	ASSIGNOR:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	First States Investors 228, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	By:  
 

	 	 
	 

	 	 	 	 	 	 

	 	 

25

 

	 	 	 	 	 	 	 
	 	 	ASSIGNEE	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 

COMMONWEALTH OF MASSACHUSETTS

                                        , ss.

     On
this ___ day of                     , 20___, before me, the undersigned notary public,
personally appeared                     , proved to me through satisfactory evidence of
identification, which was                     , to be the person whose name is signed on the
preceding or attached document, and acknowledged to me that he/she signed it voluntarily for its
stated purpose as                      [INSERT CORRECT DESCRIPTION OF CAPACITY OF INDIVIDUAL SIGNING]
of First States Investors 228, LLC.

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 
	 
	 	 	 	 
	 

	 	My commission expires:	 	 

COMMONWEALTH OF MASSACHUSETTS

                                        , ss.

     On
this ___ day of                     , 20___, before me, the undersigned notary public,
personally appeared                     , proved to me through satisfactory evidence of
identification, which was                     , to be the person whose name is signed on the
preceding or attached document, and acknowledged to me that he/she signed it voluntarily for its
stated purpose as                      [INSERT CORRECT DESCRIPTION OF CAPACITY OF INDIVIDUAL SIGNING]
of                     .

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 
	 
	 	 	 	 
	 

	 	My commission expires:	 	 
	 
	 	 	 	 
	 

	 	My commission expires:	 	 
	 
	 	 	 	 
	 

	 	 	 	 

26

 

SCHEDULE 13(a)(v)

Form of Affidavit of Non-Foreign Status

AFFIDAVIT OF NON-FOREIGN STATUS

(Corporation, Partnership, Trust, Transferor Estate)

     Section 1445 of the Internal revenue Code of 1986, as amended, provides that a transferee of a
U.S. real property interest must withhold tax if the transferor is a foreign person. To inform the
transferee that withholding of tax is not required upon disposition of a U.S. real property
interest by First States Investors 228, LLC , the undersigned hereby affirms the following on
behalf of First States Investors 228, LLC:

     1. First States Investors 228, LLC is not a foreign corporation, foreign partnership, foreign
trust, or foreign estate (as those terms are defined in the Internal Revenue Code and income tax
Regulations);

     2. First States Investors 228, LLC                     ’s U.S. employer identification number is
[                    ]; and

     3. First States Investors 228, LLC                      office address is:

c/o American Financial Realty Trust

610 Old York Road

Suite 300

Jenkintown, PA 19046

     The undersigned understands that this Affidavit may be disclosed to the Internal Revenue
Service by transferee and that any false statement contained herein could be punished by fine,
imprisonment, or both.

     Under penalties of perjury, I declare that I have examined this Affidavit and to the best of
my knowledge and belief it is true, correct and complete, and I further declare that I have
authority to sign this Affidavit on behalf of First States Investors 228, LLC.

	 	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 

	 	 

27

 

EXHIBIT A_

(Form of ROFR Offer Notice)

FIRST STATES INVESTORS 228, LLC

610 Old York Rd.

Suite 300

Jenkintown, PA 19046

November ___, 2006

By Federal Express and telecopy

IPC Realty II, LLC

303 North Hurstbourne Parkway

Suite 115

Louisville, KY 40222

Attention: Bruce Wibbels

			
	Re:	 	Right of First Offer

One Lincoln Street, Boston, Massachusetts

Gentlemen:

Reference is made to the provisions of Section 11.04 of that certain First Amended and Restated
Limited Liability Company Agreement of First States Investors 228 Holdings A, LLC. (the “First
States Agreement”), which afford you certain rights to acquire the Offered Interest (the
“Rights”). All capitalized terms not otherwise defined herein shall have the respective
meanings ascribed thereto in the First States Agreement.

Please be advised that the undersigned desires to sell the Offered Interest and has entered into
that certain Agreement of Purchase and Sale, dated November ___, 2006, with FPG DF Lincoln Street,
LLC (the “Sales Agreement”). A true and complete copy of the Sales Agreement is annexed hereto.
Please be further advised that First States Group, L.P. has joined in this letter to confirm that
it shall cause the undersigned to sell the Offered Interest in accordance with the provisions of
the First States Agreement and this notice. This letter shall constitute a Sale Notice to acquire
the Property on the identical terms set forth in the Sales Agreement, except for the following:
Section34 (and all other references to the Rights ) shall be deemed deleted; you shall be deemed
the “Buyer”; and, the notice provision shall be deemed amended such that all notices to the “Buyer”
shall be sent in accordance with the notice provisions of the First States Agreement.

28

 

If you wish to accept the aforesaid, then, on or before the seventh (7th) business day
following your receipt of this notice you must (i) send a written acceptance of such offer by
notice to the undersigned (in accordance with the notice provisions in the First States Agreement),
(ii) execute and deliver to the undersigned and Chicago Title Insurance Company (the “Escrow
Agent”) a counterpart of escrow agreement, which has been executed by Escrow Agent and the
undersigned and an original counterpart of which is annexed hereto, and (ii) deliver the sum of
$20,000,000 by wire transfer of immediate funds to Chicago Title Insurance Company (the “Escrow
Agent”), as follows:

	 	 	 
	Wire to:

	 	Citizens Bank
	 

	 	2001 Market Street
	 

	 	Philadelphia, PA 19103
	 
	 	 
	ABA Number:

	 	 036076150
	 
	 	 
	Account of:

	 	Chicago Title Insurance Company
	 
	 	 
	Account Number:

	 	 6205835936
	 
	 	 
	Reference File #:

	 	One Lincoln/EGD
	 
	 	 
	Notify:

	 	Ms. Cindy Bryant @215-568-4800, Ext. 3005

Upon the foregoing you shall, as provided in the First States Agreement, be deemed to have agreed
to purchase the Offered Interest.

Please be advised that the undersigned address for all notices has been changed to that set forth
above.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	First States Investors 228, LLC	 	 
	 

	 	By:
	 	                                                            	 	 
	 	 	Name: Glenn Blumenthal	 	 
	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Confirmation:	 	 
	 
	 	 	 	 	 	 
	 	 	First States Group, L.P.,	 	 
	 	 	By: First States Group, LLC, its general partner	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

29

 

	 	 	 
	cc:

	 	IPC US Real Estate Investment Trust
	 

	 	Attn: Gary M. Goodman
	 
	 	 
	 

	 	Davies Ward Phillips & Vineberg LLP
	 

	 	Attn: Fiona J. Kelly

30

 

SCHEDULE 13(a)(vii)

Form of Seller’s Closing Certificate

SELLER’S CLOSING CERTIFICATE

     First States Investors 228, LLC, a Delaware limited liability company (“Seller”), hereby
certifies to                      that, to Seller’s actual knowledge, (i) there is no material
default of Seller under the covenants of Seller contained in certain Agreement of Purchase and Sale
dated as of
                    
___, 200___ and, (ii) that the representations and warranties of Seller set forth in
said Agreement of Purchase and Sale are true and correct in all material respects as of the date of
this Seller’s Closing Certificate, except to the extent set forth on the annexed exhibit.

     This Seller’s Closing Certificate is dated as of _                    , 200_.

	 	 	 	 	 	 	 
	 	 	First States Investors 228, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

SCHEDULE 13(b)(viii)

Form of Buyer’s Closing Certificate

BUYER’S CLOSING CERTIFICATE

                         
(“Buyer”), hereby certifies to ___ that to Buyer’s actual
knowledge (i) that it is not in material default under the covenants of Buyer contained in that
certain Agreement of Purchase and Sale dated as of ___,
20___ and, (ii) that the
representations and warranties of Buyer set forth in said Agreement of Purchase and Sale are true
and correct in all material respects as of the date of this Buyer’s Closing Certificate, except to
the extent set forth on the annexed exhibit.

     This Buyer’s Closing Certificate is dated as of                      ___, 200_.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:exv10w59

 

Exhibit 10.59

 

 

AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

dated as of December 19, 2006

between

BANK OF AMERICA, N.A.,

as a Lender and Arranger

(“Lender”),

BANK OF AMERICA, N.A.,

as Administrative Agent

(“Administrative Agent”)

and

RD ABINGTON ASSOCIATES LIMITED PARTNERSHIP (“RD Abington”),

ACADIA TOWN LINE, LLC (“Acadia Town Line”),

RD METHUEN ASSOCIATES LIMITED PARTNERSHIP (“RD Methuen”),

RD ABSECON ASSOCIATES, L.P. (“RD Absecon”),

RD BLOOMFIELD ASSOCIATES, LIMITED PARTNERSHIP (“RD Bloomfield”),

RD HOBSON ASSOCIATES, L.P. (“RD Hobson”),

and

RD VILLAGE ASSOCIATES LIMITED PARTNERSHIP (“RD Village”),

as Borrowers

(RD Abington, Acadia Town Line, RD Methuen, RD Absecon, RD Bloomfield,

RD Hobson and RD Village, individually and collectively, as the context requires,

“Borrower”)

 

 

 

 

     THIS AMENDED AND RESTATED REVOLVING LOAN AGREEMENT (“this Agreement”) dated as of December 19,
2006 by and among RD ABINGTON ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership (“RD
Abington”), ACADIA TOWN LINE, LLC, a Connecticut limited liability company (“Acadia Town Line”), RD
METHUEN ASSOCIATES LIMITED PARTNERSHIP, a Massachusetts limited partnership (“RD Methuen”), RD
ABSECON ASSOCIATES, L.P., a Delaware limited partnership (“RD Absecon”), RD BLOOMFIELD ASSOCIATES,
LIMITED PARTNERSHIP, a Delaware limited partnership (“RD Bloomfield”), RD HOBSON ASSOCIATES, L.P.,
a Delaware limited partnership (“RD Hobson”) and RD VILLAGE ASSOCIATES LIMITED PARTNERSHIP, a
Delaware limited partnership (“RD Village”; RD Abington, Acadia Town Line, RD Methuen, RD Absecon,
RD Bloomfield, RD Hobson and RD Village, collectively and individually, as the context requires,
“Borrower”) and BANK OF AMERICA, N.A. (in its individual capacity and not as Administrative Agent,
“BofA”; BofA and each other lender who may become a Lender pursuant to Section 8.07, each, a
“Lender” and collectively, “Lenders”) and BANK OF AMERICA, N.A., as Administrative Agent for
Lenders (together with its successors in such capacity, “Administrative Agent”).

     WHEREAS, pursuant to that certain Revolving Loan Agreement dated as of May 26, 2005 (the
“Original Agreement”) by and among RD Absecon, RD Bloomfield, RD Hobson and RD Village
(collectively, the “Original Borrowers”) and RD Woonsocket Associates Limited Partnership (“RD
Woonsocket”), Fleet National Bank, a Bank of America company (“Fleet”) and The Bank of China, New
York Branch (“Bank of China”), Fleet and Bank of China made a loan (the “Original Loan”) to
Original Borrowers and RD Woonsocket in the original principal amount of up to $65,000,000;

     WHEREAS, on the date hereof, after giving effect to an Assignment and Assumption from Bank of
China to BofA, BofA is the only Lender under the Original Agreement;

     WHEREAS, pursuant to that certain Amended and Restated Term Loan Agreement dated as of June
30, 2004 (the “Term Agreement”) by and among Fleet, Heathcote Associates, L.P. (“Acadia
Heathcote”), RD Branch Associates, L.P. (“RD Branch”), Acadia Town Line, RD Abington, and RD
Methuen (collectively, the “Term Borrowers”), Lender made a loan (the “Term Loan”) to Term
Borrowers in the original principal amount of up to $45,900,000;

     WHEREAS, the property owned by RD Woonsocket has been, or will contemporaneously herewith be,
released from the liens of the mortgages securing the Original Loan;

     WHEREAS, the property owned by Acadia Heathcote has been released from the liens of the
mortgages securing the Term Loan;

     WHEREAS, BofA is the successor by merger to Fleet;

 

 

     WHEREAS, the portion of the Term Loan which is secured by the property owned by RD Branch will
contemporaneously herewith be severed pursuant to a certain Note Modification and Severance
Agreement dated as of the date hereof (the “Severance Agreement”) by and between the Term Borrowers
and BofA so that such portion of the Term Loan is evidenced by a severed note and secured by a
severed mortgage upon which the other Term Borrowers are not obligors;

     WHEREAS, RD Woonsocket, Acadia Heathcote and RD Branch shall, as of the date hereof, no longer
have any of their property encumbered as collateral for either the Term Loan or the Original Loan,
therefore such entities have requested that they be released from liability for the future
repayment thereof and Lenders have agreed to so release such entities;

     WHEREAS, as of the date hereof the outstanding principal balance of the Original Loan is
$22,000,000 and the outstanding principal balance of the Term Loan, after giving effect to the
Severance Agreement and excluding the portion thereof for which solely RD Branch shall hereafter be
liable, is $18,584,535 and, in addition, the Existing Letters of Credit (as hereinafter defined) in
the aggregate amount of $56,600 have been issued and are outstanding; and

     WHEREAS, Borrower has requested, and Lenders and Administrative Agent have agreed, subject to
the terms and conditions hereof, to consolidate the Original Loan and the Term Loan into a single
loan (defined herein as the Loan), increase the maximum principal amount thereof, extend the term
thereof and to consolidate, amend and restate the terms of the Original Agreement, the notes
executed pursuant to the Original Agreement (the “Original Notes”), the Term Agreement, the note
executed pursuant to the Term Agreement (the “Term Note”) on the terms and conditions set forth
herein and Lenders are prepared to do so on the terms and conditions hereinafter set forth.

     Borrower desires that Lenders extend credit as provided herein, and Lenders are prepared to
extend such credit. Accordingly, Borrower, Administrative Agent and each Lender agree as follows:

     NOW, THEREFORE, in consideration of the mutual promises and agreements herein contained,
Borrower, Administrative Agent and Lenders hereby agree as follows:

ARTICLE I

DEFINITIONS AND RULES OF CONSTRUCTION

     Section 1.01. Definitions. The following terms, as used in this Agreement, shall
have the following meanings:

“Abington/PA Property” — The fee interest in real property located on Old York Road in
Abington, Pennsylvania owned by RD Abington.

2

 

“Absecon/NJ Property” — The fee interest in real property located at Whitehorse Pike in
Absecon, New Jersey owned by RD Absecon.

“Additional Costs” — Has the meaning specified in Section 3.01.

“Additional Interest”  — Any and all sums that shall become due and payable by Borrower
under the Hedging Agreement.

“Additional Advance” — Has the meaning set forth in Section 4.02 of this Agreement.

“Administration Fee” — Has the meaning specified in Section 6.03.

“Administrative Agent” — Has the meaning specified in the preamble.

“Administrative Agent’s Counsel” — Schiff Hardin LLP, 623 Fifth Avenue, 28th Floor, New
York, New York 10022.

“Administrative Agent’s Office” — Administrative Agent’s office located as set forth on
its signature page hereof, or such other address in the United States as Administrative Agent
may designate by notice to Borrower and Lenders.

“Affiliate” — With respect to any Person (the “first Person”), any other Person (1) which
directly or indirectly controls, or is controlled by, or is under common control with the
first Person or (2) 10% or more of the beneficial interest in which is directly or indirectly
owned or held by the first Person. The term “control” means the possession, directly or
indirectly, of the power, alone, to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities, by contract, or
otherwise.

“Anchors” — Shall mean, with respect to each Property:

     (i) American Stores Properties, Inc., a wholly owned subsidiary of Albertson’s, Inc.
(a/k/a Acme), Island Gym/Fitness and Eckerd Corporation with respect to the Absecon/NJ
Property;

     (ii) HomeGoods, Inc., Marshalls of MA, Inc., The TJX Companies, Inc., PetCo and
OfficeMax North America, Inc. (f/k/a OfficeMax, Inc.) with respect to the Bloomfield/MI
Property;

     (iii) Bobak Enterprises and Coldwell Banker, with respect to the Hobson/IL Property;

     (iv) Stop & Shop and Town Line Diner with respect to the Town Line/CT Property;

     (v) Wal-Mart and Demoulas Market, with respect to the Methuen/MA Property; and

3

 

     (vi) T.J. Maxx, with respect to the Abington/PA Property.

“Applicable Lending Office” — For each Lender and for the portions of the outstanding
principal balance under its Note bearing interest at the Prime Based Rate or LIBO Based Rate,
as applicable, the lending office of such Lender (or of an Affiliate of such Lender)
designated as such on its signature page hereof or in the applicable Assignment and Assumption
Agreement, or such other office of such Lender (or of an Affiliate of such Lender) as such
Lender may from time to time specify to Administrative Agent and Borrower as the office by the
portions of the outstanding principal balance under its Note bearing interest at the Prime
Based Rate or LIBO Based Rate , as applicable, are to be made and maintained.

“Applicable Margin” — With respect to the Prime Based Rate, 1.0% per annum; and with
respect to the LIBO Based Rate, 1.25% per annum.

“Assignee” — Has the meaning specified in Section 8.07.

“Assignment and Assumption Agreement” — An Assignment and Assumption Agreement,
substantially in the form of EXHIBIT A, pursuant to which a Lender assigns and an Assignee
assumes rights and obligations in accordance with Section 11.05.

“Authorization Letter” — The letter in the form of EXHIBIT F.

“Bloomfield/MI Property” — The fee interest in real property located at 2257 South
Telegraph Road in Bloomfield, Michigan owned by RD Bloomfield.

“Business Day” — Any day on which commercial banks are not authorized or required to close
in New York City; and, whenever such day relates to a LIBOR Amount, an Interest Period with
respect to a LIBOR Amount, or notice with respect to a LIBOR Amount, any such day in which
dealings in Dollar deposits are also carried out in the London interbank market and banks are
also open for business in London.

“Code” — The Internal Revenue Code of 1986.

“Contribution Agreement” — That certain Subordination and Contribution Agreement dated as
of the date hereof by and among Administrative Agent and Borrowers.

“Counterparty” — Bank of America, N.A., or any of its Affiliates, in their capacity as a
party to the Hedging Agreement, if any, and its successors and assigns in such capacity.

“Default” — Any event or circumstance which, with the giving of notice or the passage of
time, or both, would become an Event of Default.

“Default Rate” — A rate per annum equal to (1) with respect to Prime Based Loans, a
variable rate 5% above the rate of interest then in effect thereon and (2) with

4

 

respect to LIBOR Amounts, a fixed rate 5% above rate(s) of interest in effect thereon at
the time of Event of Default until the end of the then current Interest Period therefor
and, thereafter, a variable rate 5% above the rate of interest for a Prime Based Loan.

“Delinquency Amount”; “Delinquency Notice”; “Delinquent Lender” — Have the
respective meanings specified in Section 7.16.

“Dollars” and “$” — Lawful money of the United States of America.

“DSC Cap” — Has the meaning set forth in Section 2.04(b) of this Agreement.

“DSC Test” — Has the meaning set forth in Section 6.06 of this Agreement.

“Electing Lender”; “Election Notice”; “Election Period” — Have the
respective meanings specified in Section 7.16.

“Eligible Assignee” — An entity which is (i) a commercial bank organized under the Laws of
the United States, or any State thereof, and having (x) total assets in excess of
$1,000,000,000 and (y) a combined capital and surplus of at least $250,000,000; (ii) a
commercial bank organized under the laws of any other country which is a member of the
Organization of Economic Cooperation and Development (“OECD”), or a political subdivision of
any such country, and having (x) total assets in excess of $1,000,000,000 and (y) a combined
capital and surplus of at least $250,000,000, provided that such bank is acting through a
branch or agency located in the country in which it is organized or another country which is
also a member of OECD; (iii) a life insurance company organized under the Laws of any State of
the United States, or organized under the laws of any country and licensed as a life insurer
by any State within the United States and having admitted assets of at least $1,000,000,000;
or (iv) a nationally recognized investment banking company, or an Affiliate thereof (other
than any Person which is directly or indirectly an Affiliate of Borrower or Guarantor, or of
any member or partner of Borrower or Guarantor) organized under the Laws of any State of the
United States, and licensed or qualified to conduct such business under the Laws of any such
State and having (1) total assets of at least $1,000,000,000 and (2) a net worth of at least
$250,000,000.

“Employee Benefit Plan” — Any employee benefit or other plan established or maintained, or
to which contributions have been made, by Borrower or Guarantor.

“ERISA” — The Employee Retirement Income Security Act of 1974, including the rules and
regulations promulgated thereunder.

“ERISA Affiliate” — Any corporation which is a member of the same controlled group of
corporations (within the meaning of Section 414(b) of the Code) as Borrower and/or Guarantor,
or any trade or business which is under common control (within the meaning of Section 414(c)
of the Code) with Borrower and/or Guarantor, or

5

 

any organization which is required to be treated as a single employer with Borrower and/or
Guarantor under Section 414(m) or 414(o) of the Code.

“Event of Default” — Has the meaning given to such term in the Mortgage.

“Existing Letters of Credit” — Collectively, (i) that certain letter of credit no.
68010726 issued by BofA on December 30, 2005 in the reduced amount of $6,600 for the benefit
of New Castle County General Manager, Department of Land Use and (ii) that certain letter of
credit no. 68012410 issued by BofA on April 24, 2006 in the amount of $50,000 for the benefit
of The Estate of John W. Rollins, Sr.

“Federal Funds Rate” — For any day, the rate per annum equal to the weighted average of
the rates on overnight Federal funds transactions as published by the Federal Reserve Bank of
New York for such day or, for any day that is not a banking day in New York City, for the
immediately preceding banking day.

“Fiscal Year” — The calendar year or such other annual period as Borrower and
Administrative Agent may mutually agree upon.

“Financial Statements” — Statements of the assets, liabilities (direct or contingent),
income, expenses and cash flow of Borrower and Guarantor, prepared in accordance with
generally accepted accounting principles in the United States as in effect from time to time
and consistently applied.

“Fronting Fee” — Has the meaning set forth in Section 8.21 of this Agreement.

“Funding Cap” — $75,000,000 subject to adjustment, up or down, in accordance with Section
2.04(b), but in no event to exceed $88,000,000.

“GAAP” — Generally accepted accounting principles in the United States as in effect from
time to time, consistently applied.

“Good Faith Contest” — The contest of an item if (1) the item is diligently contested in
good faith, and, if appropriate, by proceedings timely instituted, (2) adequate reserves are
established with respect to the contested item, (3) during the period of such contest, the
enforcement of any contested item is effectively stayed and (4) the failure to pay or comply
with the contested item during the period of the contest is not likely to (x) result in a
Material Adverse Change or (y) have an adverse effect on the Mortgaged Property under any
Mortgage or any part thereof, or on Lenders’ interest therein.

“Governmental Approvals” — Any authorization, consent, approval, license, permit,
certification, or exemption of, registration or filing with or report or notice to, any
Governmental Authority.

“Governmental Authorities” — The United States, the state in which the Property is located
and any political subdivision, agency, department, commission, board, bureau or
instrumentality of either of them, including any local authorities, which

6

 

exercises jurisdiction over Borrower, Guarantor, the Property or the Improvements.

“Guarantor” — Jointly and severally, Acadia Realty Limited Partnership, a Delaware limited
partnership and any other person(s) or entity(ies) who may hereafter become a guarantor of any
or all of Borrower’s obligations in respect of the Loan.

“Guaranty” — The guaranty(ies) of all or part of Borrower’s obligations, to be executed by
Guarantor.

“Hazardous Materials” — Has the meaning given to such term in the Mortgage.

“Hedging Agreement” — Any ISDA Master Agreement or other documentation with respect to an
interest rate hedging transaction entered into by and between any Borrower, as any of the same
may be amended, modified or supplemented from time to time, including any and all
“confirmations” under any thereof.

“Hobson/IL Property” — The fee interest in real property located at 931 West 75th Street
in Naperville, Illinois owned by RD Hobson.

“Improvements” — Shall mean, with respect to the indicated Property: (i) a one story
Neighborhood Shopping Center containing 105,093 square feet with respect to the Absecon/NJ
Property, (ii) a one story Community Shopping Center containing 229,506 square feet with
respect to the Bloomfield/MI Property, (iii) a one story Neighborhood Shopping Center
containing 99,042 square feet with respect to the Hobson/IL Property, (iv) a one story
neighborhood shopping center containing 129,494 square feet with respect to the Methuen/MA
Property, (v) a multi-level shopping center containing 63,889 square feet with respect to the
Abington/PA Property, (vi) a one-story neighborhood shopping center containing 206,178 square
feet with respect to the Town Line/CT Property and (vii) a two story, 578,706 n.r.s.f./600
unit apartment community with 1,158 surface parking spaces with respect to the Village/NC
Property.

“Increase Fee” — Has the meaning set forth in Section 2.04(b) of this Agreement.

“Indemnity” — An agreement from Borrower and Guarantor or, if there is no Guarantor, such
other persons or entities as shall be satisfactory to Lender, whereby, among other things,
Lender is indemnified regarding Hazardous Materials.

“Individual Loan Commitment” — With respect to each Lender, the amount set forth below
opposite the name of such Lender (subject to change in accordance with the terms of this
Agreement).

7

 

	 	 	 	 	 
	Lender	 	Individual Loan Commitment
	 
	 	 	 	 
	BofA
	 	$	88,000,000	 

Upon any reduction in the Total Loan Commitment, each Lender’s Individual Loan Commitment shall
reduce by the Lender’s Pro Rata Share of the reduction of the Total Loan Commitment.

“Insolvency Event” — Shall mean the occurrence of any of the Events of Default described
in clauses (d) through (h) of the Mortgage.

“Interest Period” — The period during which interest at the LIBO Based Rate, determined as
provided in this Agreement, shall be applicable to the LIBO Rate Request Amount in question,
provided, however, that each such period shall be either one (1), two (2),
three (3) months (or, if available, four (4), or six (6) months or such other periods as
Administrative Agent may make available from time to time), which shall be measured from the
date specified by Borrower in each LIBO Rate Request for the commencement of the computation
of interest at the LIBO Based Rate, to the numerically corresponding day in the calendar month
in which such period terminates (or, if there be no numerical correspondent in such month, or
if the date selected by Borrower for such commencement is the last Business Day of a calendar
month, then the last Business Day of the calendar month in which such period terminates, or if
the numerically corresponding day is not a Business Day then the next succeeding Business Day,
unless such next succeeding Business Day enters a new calendar month, in which case such
period shall end on the next preceding Business Day) and in no event shall any such period
extend beyond the Maturity Date.

“Initial Advance” — The first advance of Loan proceeds to be made hereunder.

“Law” — Any federal, state or local law, statute, rule, regulation, ordinance, order,
decree, directive, requirement, code, notice of violation or rule of common law, now or
hereafter in effect, and in each case as amended, and any judicial or administrative
interpretation thereof by a Governmental Authority or otherwise, including any judicial or
administrative order, determination, consent decree or judgment.

“Lender”; “Lenders” — Has the respective meanings specified in the preamble.

“Lender Reply Period” — Has the meaning specified in Section 8.06.

“Lenders L/C Fee” — Has the meaning set forth in Section 8.21 of this Agreement.

“Letter of Credit” — Has the meaning set forth in Section 8.21 of this Agreement.

“LIBO Based Rate” — With respect to any LIBOR Amount, the rate per annum (expressed as a
percentage) determined by Administrative Agent to be equal to the sum of (i) the quotient of
the LIBO Rate for the LIBOR Amount and Interest

8

 

Period in question divided by [1 minus the Reserve Requirement] (at Administrative Agent’s
option, rounded up, if necessary, to the nearest 1/100 of 1%) and (ii) the Applicable
Margin.

“LIBO Rate” — With respect to any applicable Interest Period, the rate per annum equal to
the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other
commercially available source providing quotations of BBA LIBOR as selected by Administrative
Agent from time to time) at approximately 11:00 a.m. London time two (2) Business Days before
the commencement of such Interest Period, for deposits in U.S. Dollars (for delivery on the
first day of such Interest Period) with a term equivalent to such Interest Period. If such
rate is not available at such time for any reason, then the rate for that Interest Period will
be determined by such alternate method as reasonably selected by Administrative Agent.

“LIBO Rate Request” — Borrower’s telephonic notice (to be promptly confirmed in writing),
to be received by Administrative Agent by 12 Noon (New York time) three (3) Business Days
prior to the date specified in the LIBO Rate Request for the commencement of the Interest
Period (which specified date must be a Business Day), of (a) its intention to have (i) all or
any portion of the Principal Amount which is not then the subject of an Interest Period (other
than an Interest Period which is terminating on the Business Day specified in the notice)
and/or (ii) all or any portion of any advance of proceeds of the Loan evidenced by the Notes
which is to be made on the Business Day specified in such notice, bear interest at the LIBO
Based Rate and (b) the Interest Period desired by Borrower in respect of the amount specified,
which notice shall be promptly communicated by Administrative Agent to each Lender.

“LIBO Rate Request Amount” — The amount, to be specified by Borrower in each LIBO Rate
Request, which Borrower desires bear interest at the LIBO Based Rate and which, at
Administrative Agent’s option, shall be an integral multiple of $100,000.

“LIBOR Amount” — All or any portion (as the context requires) of any Lender’s Loan which
shall accrue interest at the LIBOR Based Rate.

“Liquidity Requirement” — Has the meaning specified in Section 4.01(d)(18).

“Loan” — The loan in the Loan Amount made by Lender to Borrower under this Agreement.

“Loan Allocation” — Shall mean, with respect to the indicated Property: (i) $13,000,000
for the Absecon/NJ Property, (ii) $21,000,000 for the Bloomfield/MI Property, (iii)
$10,000,000 for the Hobson/IL Property, (iv) $7,500,000 for the Abington/PA Property, (v)
$13,000,000 for the Town Line/CT Property, (vi) $8,500,000 for the Methuen/MA Property and
(vii) $15,000,000 for the Village/NC Property.

9

 

“Loan Amount” — [$75,000,000 (subject to change in accordance with the terms of this
Agreement)].

“Loan Documents” — This Agreement, the Notes, the Mortgages, the Indemnity, the
Authorization Letter, the Solvency Certificate, the Contribution Agreement, Uniform Commercial
Code financing statements in respect of the Mortgaged Property and any other collateral given
to Lender as security for the Loan, and any other documents which evidence or secure the Loan.

“Loan to Value Cap” — Has the meaning set forth in Section 2.04(b) of this Agreement.

“Loan to Value Test” — Has the meaning set forth in Section 6.06 of this Agreement.

“Major Lease” — Any lease for space in excess of 10,000 square feet of the rentable area
of the Improvements.

“Material Adverse Change” means either (1) a material adverse change in the status of the
business, results of operations, financial condition, property or prospects of Borrower or (2)
any event or occurrence of whatever nature which is likely to (x) have a material adverse
effect on the ability of Borrower to perform its obligations under the Loan Documents or (y)
create, in the sole and absolute judgment (reasonably exercised) of Lender, a material risk of
sale or forfeiture of any of the Mortgaged Property (other than an immaterial portion thereof)
under any Mortgage or otherwise materially impair any of the Mortgaged Property under any
Mortgage or Lenders’ rights therein.

“Maturity Date” — December 1, 2010 subject to extension in accordance with Section 2.16.

“Maximum Release Price” — Has the meaning set forth in Section 8.18 of this Agreement.

“Methuen/MA Property” — The fee and leasehold interest in real property located at the
intersection of Rte. 113 and Interstate 495 in Methuen, Massachusetts owned by RD Methuen.

“Mortgage” — Those certain mortgages (or deeds of trust) made by a Borrower in favor of
Administrative Agent dated the date hereof, or as may be described in, and modified by, those
certain Mortgage (or Deed of Trust) Modification Agreements, dated the date hereof, by and
between a Borrower and Administrative Agent, in all cases to secure the payment and
performance of Borrower’s obligations hereunder, under the Note and otherwise in respect of
the Loan.

“Mortgaged Property” means, for each Property, the Property, the Improvements thereon and
all other property constituting the “Mortgaged Property”, as said quoted term is defined in
the applicable Mortgage.

10

 

“Multiemployer Plan” — A Plan defined as such in Section 3(37) of ERISA to which
contributions have been made by Borrower or any ERISA Affiliate and which is covered by Title
IV of ERISA.

“Net Operating Income”

     (a) all revenues from the ownership, use, occupancy, leasing and operation of the
Property during the period in question, determined in accordance with GAAP (but adjusted to
eliminate the effects of straight-lining of rents and further adjusted to exclude
extraordinary and non-recurring sources of income), including all rental and other
payments, including, without limitation, base rent, additional rent, promotional revenues,
percentage rent and payments for common area maintenance, taxes, insurance and operating
expenses and proceeds of rental loss or business interruption service, excluding tenant
security deposits collected but not applied to tenants’ obligations, and interest on such
deposits;

     minus

     (b) all expenses in connection with the Property during such period, determined in
accordance with GAAP, including insurance premiums, real estate taxes, promotional
expenses, maintenance and repair expenses, management fees and any other operational
expenses, all as determined in accordance with GAAP, but not including debt service payable
under the Loan.

“Net Worth Requirement” — Has the meaning specified in Section 4.01(d)(18).

“Non-Delinquent Lender” — Each Lender other than the Delinquent Lender(s).

“Non-Excluded Taxes” — Has the meaning specified in Section 8.14.

“Note”; “Notes” — Have the respective meanings specified in Section 2.06.

“Obligations” — Each and every obligation, covenant and agreement of Borrower, now or
hereafter existing, contained in this Agreement, and any of the other Loan Documents, whether
for principal, reimbursement obligations, interest, fees, expenses, indemnities or otherwise,
and any amendments or supplements thereto, extensions or renewals thereof or replacements
therefor, including, but not limited to, all indebtedness, obligations and liabilities of
Borrower to Administrative Agent and any Lender now existing or hereafter incurred under or
arising out of or in connection with the Notes, this Agreement, the other Loan Documents, and
any documents or instruments executed in connection therewith; in each case whether direct or
indirect, joint or several, absolute or contingent, liquidated or unliquidated, now or
hereafter existing, renewed or restructured, whether or not from time to time decreased or
extinguished and later increased, created or incurred, and including all indebtedness of
Borrower, under any instrument now or hereafter evidencing or securing any of the foregoing.

11

 

“Outstanding Credit Amount” — Has the meaning set forth in Section 2.01 of this Agreement.

“Participant”; “Participation” — Have the respective meanings specified in Section
8.07.

“Payor” — Has the meaning specified in Section 7.12.

“Pension Plan” — Any employee pension benefit plan within the meaning of Section 3(2) of
ERISA with respect to which Borrower, Guarantor or any ERISA Affiliate at any relevant time
has liability or an obligation to contribute.

“Person” — An individual, partnership, corporation, limited liability company, business
trust, joint stock company, trust, unincorporated association, joint venture or other entity
of whatever nature.

“Plan” — Any employee benefit or other plan established or maintained, or to which
contributions have been made, by Borrower or any ERISA Affiliate and which is covered by Title
IV of ERISA or to which Section 412 of the Code applies.

“Premises Documents” — Has the meaning given to such term in the Mortgage.

“Prime Based Loan” — All or any portion (as the context requires) of a Lender’s Loan which
shall accrue interest at a rate determined in relation to the Prime Based Rate.

“Prime Based Rate” — The Applicable Margin plus the greater of (i) the Federal Funds Rate
plus 1/2 of 1% per annum or (ii) the prime commercial lending rate as announced from time to
time by Administrative Agent at Administrative Agent’s Office (it being understood that said
“prime commercial lending rate” is a reference rate and does not necessarily represent the
lowest or best rate being charged to customers), each change in said rates to be effective,
without notice or demand of any kind, as of the date of such change.

“Principal Amount” — At any time, the aggregate outstanding principal amount of the Notes.

“Property” means, individually and collectively, as the context requires, each of the
Absecon/NJ Property, the Bloomfield/MI Property, the Hobson/IL Property, the Village/NC
Property, the Abington/PA Property, the Methuen/MA Property and the Town Line/CT Property.

“Pro Rata Share” — With respect to each Lender, the ratio of such Lender’s Individual Loan
Commitment to the Loan Amount. As of the date hereof, the Lenders’ respective Pro Rata Shares
are as follows:

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	Lender	 	Pro Rata Share
	 
	 	 	 	 
	BofA
	 	 	100	%

“Regulation D” and “Regulation U” — Respectively, Regulation D and Regulation U of
the Board of Governors of the Federal Reserve System.

“Regulatory Change” — With respect to any Lender and the charging and collecting of
interest at the LIBO Based Rate, any change after the date hereof in federal, state or foreign
laws or regulations (including Regulation D) or the adoption or making after such date of any
interpretations, directives or requests applying to a class of banks including such Lender
under any federal, state or foreign laws or regulations (whether or not having the force of
law) by any court or governmental or monetary authority charged with the interpretation or
administration thereof, excluding any change the effect of which is reflected in a change in
the LIBO Based Rate.

“Release Price” — Shall mean, with respect to each Property, an amount equal to the
greater of (x) the product of the Loan Allocation Amount for such Property multiplied by 1.15
or (y) 80% of the appraised value of such Property as indicated on the most recent appraisal
procured by Lender for such Property.

“Replacement Lender” — Has the meaning set forth in Section 7.20 of this Agreement.

“Required Lenders” — At any time, those Non-Delinquent Lenders having Pro Rata Shares
aggregating more than 50%.

“Required Payment” — Has the meaning specified in Section 7.12.

“Requisition” — A written statement by or on behalf of Borrower, in form and substance
satisfactory to Administrative Agent, setting forth the amount of the Loan advance requested
in each instance and instructions for the payment of the same, and certifying the purpose for
which such advance is to be used.

“Reserve Requirement” — With respect to any applicable Interest Period, for any day that
percentage (expressed as a decimal) which is in effect on such day, as prescribed by the Board
of Governors of the Federal Reserve System (or any successor) for determining the maximum
reserve requirement (including basic, supplemental, emergency, special and marginal reserves)
generally applicable to financial institutions regulated by the Federal Reserve Board
comparable in size and type to Lenders, in respect of “Eurocurrency liabilities” (or in
respect of any other category of liabilities which includes deposits by reference to which the
interest rate on LIBOR Amounts is determined), whether or not Lenders have any Eurocurrency
liabilities or such requirement otherwise in fact applies to Lenders. The LIBOR Rate shall be
adjusted automatically as of the effective date of each change in the Reserve Requirement

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“Solvency Certificate” — A certificate in the form of EXHIBIT G executed by each of
the Borrowers.

“Solvent” — When used with respect to any Person, that the fair value of the property of
such Person, on a going concern basis, is greater than the total amount of liabilities
(including, without limitation, contingent liabilities) of such Person.

“Special Holdback” — $780,000, provided, however, that the Special Holdback shall be $0
(zero) if, as and when RD Bloomfield delivers to Administrative Agent an estoppel from Circuit
City Stores, Inc. (“CC”) certifying that, pursuant to the lease between RD Bloomfield and CC,
CC has accepted occupancy of the demised premises, has opened for business to the public
therein and has received all required “Landlord Reimbursements” thereunder and that there is
no default under such lease.

“Supplemental Fee Letter” — That certain letter agreement, dated the date hereof, between
BofA and Borrower, providing for Borrower’s payment to Administrative Agent and/or BofA on the
date hereof and from time to time hereafter certain fees in connection with the Loan, each
such fee to be for Administrative Agent’s and/or BofA’s own account.

“Title Insurer” — The issuer(s), approved by Administrative Agent, of the title insurance
policy or policies insuring the Mortgage.

“Total Loan Commitment” — An amount equal to (x) the aggregate amount of all Individual
Loan Commitments less (y) the Special Holdback.

“Town Line/CT Property” — The fee interest in real property located at 80 Town Line Road,
Rocky Hill, Connecticut owned by Acadia Town Line.

“Treasury Rate” — The yield rate (i) on the 10 year U.S. Treasury Security due on or
closest to the Maturity Date (as defined in the Note), as such yield rate is reported in the
Wall Street Journal on the second Business Day preceding the date of calculation.

“Unrestricted Cash and Cash Equivalents” — The following assets of Guarantor (and
Guarantor’s pro rata share thereof with respect to unconsolidated joint ventures in which
Guarantor has the power and authority to cause distributions from such joint venture), in each
case, not subject to any lien, security interest or restriction: (i) cash, (ii) securities
issued or directly and fully guaranteed or insured by the United States of America or any
agency or instrumentality thereof (provided that the full faith and credit of the United
States of America is pledged in support thereof) having maturities of not more than six (6)
months from the date of acquisition, (iii) shares of money market funds invested in the
securities described in clause (ii) above and (iv) Dollar denominated time deposits or
certificates of deposit of any domestic United States commercial bank whose long-term debt is
rated at least A by Standard & Poor’s Rating Services, a division of The McGraw-

14

 

Hill Companies, Inc. or A2 by Moody’s Investors Service, Inc. and having capital and
surplus in excess of $500,000,000.

“Unused Fee” — Has the meaning specified in Section 6.10.

“Unused Fee Rate” — A rate per annum which will vary daily based upon the Outstanding
Credit Amount as follows:

	 	 	 
	Outstanding Credit Amount	 	Unused Fee Rate
	 
	Less than $50,000,000

	 	0.0150% (15 basis points)
	 
	 	 
	Equal to or greater than
$50,000,000 but equal to or less
than $60,000,000

	 	0.0125% (12.5 basis points)
	 
	 	 
	Greater than $60,000,000

	 	0.0100% (10 basis points)

“Village/NC Property” — The fee interest in real property located at 240 Village Crossing
Lane in Winston-Salem, North Carolina owned by RD Village.

     Section 1.02. Accounting Terms. All accounting terms not specifically defined herein
shall be construed in accordance with GAAP, and all financial data required to be delivered
hereunder shall be prepared in accordance with GAAP.

     Section 1.03. Computation of Time Periods. Except as otherwise provided herein, in
this Agreement, in the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including” and words “to” and “until” each means “to but
excluding”.

     Section 1.04. Rules of Construction. Except as expressly provided otherwise, when
used in this Agreement (i) “or” is not exclusive, (ii) “hereunder”, “herein”, “hereof” and the like
refer to this Agreement as a whole, (iii) “Article”, “Section”, “Schedule” and “Exhibit” refer to
Articles, Sections, Schedules and Exhibits of this Agreement, (iv) terms defined in the singular
shall have a correlative meaning when used in the plural and vice versa, (v) a reference to a Law
includes any amendment, modification or supplement to, or replacement of, such Law and (vi) a
reference to a document shall mean such document as the same may be amended, modified or
supplemented from time to time in accordance with its terms. The cover page and the Exhibits and
Schedules, if any, annexed hereto are incorporated as a part of this Agreement with the same effect
as if set forth in the body hereof. Any table of contents and all captions and headings herein are
for convenience only and shall not affect the interpretation or construction hereof.

ARTICLE II

THE LOAN

     Section 2.01. Generally. Subject to the terms and conditions of this Agreement, each
of the Lenders severally agrees to lend to Borrower in an amount up to its Individual

15

 

Loan Commitment pursuant to which the Lender shall from time to time advance and re-advance to
Borrower an amount equal to its Pro Rata Share of the excess of the Total Loan Commitment over the
sum (the “Outstanding Credit Amount”) of (1) all previous advances of the Loans which remain unpaid
and (2) the outstanding amount of all Letters of Credit. Within the limits set forth herein,
Borrower may borrow from time to time under this Section 2.01 and prepay from time to time pursuant
to Section 2.13 (subject, however, to the restrictions on prepayment set forth in said Section),
and thereafter re-borrow pursuant to this Section 2.01. The Loans may be outstanding as (1) Base
Rate Loans, (2) LIBOR Amounts or (3) a combination of the foregoing, as Borrower shall elect and
notify Administrative Agent in accordance with Section 2.10. Each Lender’s share of the Loan shall
be maintained at such Lender’s Applicable Lending Office.

     Section 2.02. Nature of Lenders’ Obligations. The obligations of Lenders under this
Agreement are several, and no Lender shall be responsible for the failure of any other Lender to
make any advance of the Loan to be made by such other Lender. However, the failure of any Lender
to make any advance of the Loan to be made by it hereunder on the date specified therefor shall not
relieve any other Lender of its obligation to make any advance of its portion of the Loan specified
hereby to be made on such date.

     Section 2.03. Purpose. The Loan shall be made for the business purposes of working
capital, distributions to Borrower’s parent company and repayment of existing debt. Borrower
covenants and agrees that in no event shall proceeds of the Loan, or any part thereof, be used,
directly or indirectly, for any other purpose, for any illegal purpose or for the purpose, whether
immediate, incidental or ultimate, of buying or carrying “margin stock” within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System, or in connection with any
hostile acquisition or for any illegal purpose.

     Section 2.04. Advances.

     (a) The Initial Advance (which has previously been advanced under the Original Agreement and
the Term Agreement) is in the amount of $40,584,535 (prior to any prepayments Borrower may make on
the date hereof) and shall be made upon satisfaction of the conditions set forth in Section 4.01.
Subsequent advances shall be made no more frequently than once a month thereafter, upon
satisfaction of the conditions set forth in Section 4.02. In no event shall Lenders be obligated
to make an advance hereunder if the Outstanding Credit Amount of the Loan following such advance
(the “Post Advance Amount”) would exceed the Funding Cap.

     (b) Upon (i) request of Borrower, but not more often than once per calendar quarter, and
payment of the Increase Fee (as hereinafter defined) or (ii) the release of any Property in
accordance with Section 8.18 or 8.19, Administrative Agent shall recalculate the Funding Cap as of
the first day of the month in which Administrative Agent receives such request (or in the case of a
Property release, the first day of the month preceding such release) to be the amount equal to the
least of (x) 65% of the appraised value of the Mortgaged Property (the “Loan to Value Cap”) as
determined by an independent appraisal conducted at Borrower’s expense by an appraiser selected by
Administrative

16

 

Agent, which appraisal shall be conclusive as to value absent manifest error or (y) an amount
equal to the highest Post Advance Amount at which the current Net Operating Income would equal 130%
of debt service on such Post Advance Amount (the “DSC Cap”) or (z) $88,000,000. As a condition to
the effectiveness of any and all increases in the Funding Cap, Borrower shall pay to Administrative
Agent for the benefit of Lenders, any applicable fee related to such extension as set forth in the
Supplemental Fee Letter (the “Increase Fee”). For purposes of determining compliance with the DSC
Cap, Net Operating Income shall be calculated using actual figures for the preceding six (6) months
and the projected figures for the next succeeding six months and debt service shall be calculated
using an interest rate equal to the greater of (a) the actual interest rate; (b) the Treasury Rate
plus 225 basis points or (c) an interest rate equal to 8.0% and a (25) year equal payment self
liquidating amortization schedule. For purposes of determining the Loan to Value Cap, a new
appraisal shall not be required for each redetermination of the Funding Cap provided the appraisal
required in connection therewith shall not be more than twelve (12) months old and any required
reappraisals shall be made at Borrower’s expense. Notwithstanding anything to the contrary
contained herein, there shall be no increases in the Funding Cap on or after December 1, 2010.

     Section 2.05. Procedure for Advance. Borrower shall submit to Administrative Agent a
request for the advance of proceeds of the Loan stating the amount requested and the purpose for
which such advance is to be used no later than 10:00 a.m. (New York time) on the date five (5)
Business Days, prior to the date the advance is to be made. Administrative Agent, upon its receipt
and approval of the request for advance, will so notify all Lenders by facsimile. Not later than
10:00 a.m. (New York time) on the date set for such advance, each Lender shall, through its
Applicable Lending Office and subject to the conditions of this Agreement, make the amount to be
advanced by it on such day available to Administrative Agent, at Administrative Agent’s Office and
in immediately available funds for the account of Borrower. The amount so received by
Administrative Agent shall, subject to the conditions of this Agreement, be made available to
Borrower, in immediately available funds, by Administrative Agent’s crediting one or more bank
accounts of Borrower or any one or more of them designated by Borrower in its request for advance.
Each Advance made pursuant to this Agreement shall be in an amount at least equal to $1,000,000 and
in integral multiples of $100,000.

     Section 2.06. Notes/Joint and Several Liability. The Loan shall be evidenced by
notes of Borrower in the form of EXHIBIT D, duly completed and executed by Borrower (one for each
Lender in an amount equal to such Lender’s Individual Loan Commitment, payable for the account of
such Lender’s Applicable Lending Office), in an aggregate principal amount equal to the Loan Amount
(such notes, as the same may hereafter be amended, modified, extended, severed, assigned,
substituted, renewed or restated from time to time (including, without limitation, any substitute
notes pursuant to Section 8.07), each, a “Note” and collectively, the “Notes”). The Notes shall
mature, and all outstanding principal and other sums thereunder shall be paid in full, on the
Maturity Date, as the same may be accelerated or extended. All entities which comprise Borrower
hereunder shall be jointly and severally liable for all Obligations of Borrower hereunder and under
the Notes and other Loan Documents. Each Borrower hereby (i) acknowledges that all of the
conditions to funding hereunder are solely for the benefit of

17

 

Lenders and Administrative Agent and Administrative Agent and/or Lenders may, in their sole
and absolute discretion, waive any condition hereunder to funding any portion of the Loan to
Borrower and (ii) agrees that no Borrower shall have any offset or defense to its obligations
hereunder or under the other Loan Documents, or any claim whatsoever against Administrative Agent
or any Lender, based upon Lenders making any advance of Loan proceeds to any Borrower.

     Each Lender is hereby authorized by Borrower to endorse on the schedule attached to the Note
held by it, the amount of each advance and each payment of principal received by such Lender for
the account of its Applicable Lending Office(s) on account of its Loan, which endorsement shall, in
the absence of manifest error, be conclusive as to the outstanding balance of the Loan made by such
Lender. The failure by any Lender to make such notations with respect to its Loans or each advance
or payment shall not limit or otherwise affect the obligations of Borrower under this Agreement or
the Notes.

     In case of any loss, theft, destruction or mutilation of any Lender’s Note, Borrower shall,
upon its receipt of an affidavit of an officer of such Lender as to such loss, theft, destruction
or mutilation and an appropriate indemnification, execute and deliver a replacement Note to such
Lender in the same principal amount and otherwise of like tenor as the lost, stolen, destroyed or
mutilated Note.

     Section 2.07. Payments and Distributions; Certain Consequences of Delinquent Lender
Status. Borrower shall make each payment under this Agreement and under the Notes not later
than 11:00 a.m. (New York time) on the date when due to Administrative Agent at Administrative
Agent’s Office in immediately available funds. Administrative Agent will thereafter, on the day of
its receipt of each such payment, cause to be distributed to each Lender (i) such Lender’s
appropriate share (based upon the respective outstanding principal amounts of the Notes and the
respective rates of interest thereunder) of the payments of principal and interest, and its
appropriate share of the payments of other sums, in like funds for the account of such Lender’s
Applicable Lending Office. Payments by Borrower hereunder or under the Notes or other Loan
Documents shall be made without setoff or counterclaim.

     Except to the extent otherwise provided in this Agreement, whenever any payment to be made
under this Agreement or under the Notes is due on any day other than a Business Day, such payment
shall be made on the next succeeding Business Day, and such extension of time shall in such case be
included in the computation of the payment of interest and, if applicable, fees, as the case may
be.

     Notwithstanding the foregoing provisions of this Section, (i) Administrative Agent shall make
no payment to a Delinquent Lender until the Non-Delinquent Lenders have been paid in full all
outstanding principal, accrued and unpaid interest and any other sums owing to them under the Loan
Documents, it being understood that payments of interest on account of the outstanding principal
amount of the Note held by the Delinquent Lender shall be held by Administrative Agent in a
non-interest bearing account and not distributed to the Delinquent Lender until such time as all
principal,

18

 

interest and other sums due to the Non-Delinquent Lenders have been paid in full; (ii) any
payments (other than interest, as provided in clause (i) above) which would otherwise be due a
Delinquent Lender shall be distributed to the Non-Delinquent Lenders until such time as all
principal, interest and other sums due to the Non-Delinquent Lenders have been paid in full (except
that any such amounts otherwise due a Delinquent Lender received by Administrative Agent during an
Election Period shall be retained by Administrative Agent until the expiration of the Election
Period and either paid to the Delinquent Lender, if the delinquency is cured, or paid to the
Non-Delinquent Lenders, if the delinquency is not cured); and (iii) Administrative Agent shall
deduct, from amounts due (or, in the case of a Delinquent Lender, amounts that would otherwise be
payable to such Delinquent Lender being held by Administrative Agent pursuant to clause (i) above)
a Lender in default under its obligations under Section 7.05 or the reimbursement provisions of
this Section 2.07 regarding interpleader actions, the amount owing by such Lender pursuant to said
Section 7.05 or the reimbursement provisions of this Section 2.07 regarding interpleader actions
and pay the amount so deducted to itself, the other Lenders, or such other party as is entitled to
such amount, as applicable.

     If, following such time as all amounts owing under the Loan to the Non-Delinquent Lenders and
Administrative Agent have been paid in full, Administrative Agent is holding funds in respect of
amounts payable to the Delinquent Lender as provided in the third paragraph of this Section,
Administrative Agent shall file an interpleader action in New York State Supreme Court, New York
County and shall deposit the funds so held (less a sum equal to Administrative Agent’s reasonable
fees and expenses in connection with said interpleader action and deposit) with said court and
Administrative Agent shall thereupon be relieved of responsibility to any party with respect to the
funds deposited. Borrower and each Delinquent Lender hereby jointly and severally agree to
reimburse Administrative Agent for all costs and expenses that Administrative Agent may incur in
connection with the foregoing interpleader action.

     Except as provided above in this Section and in Section 7.16, each Lender’s interest in the
Loan shall be of equal priority with the interest of each other Lender.

     Section 2.08. Interest. Borrower shall have the option, subject to the terms and
conditions set forth in this Agreement, of paying interest on the Principal Amount or portions
thereof at the Prime Based Rate or the LIBO Based Rate. If Borrower desires the application of the
LIBO Based Rate, it shall submit a LIBO Rate Request to Administrative Agent, which LIBO Rate
Request shall be irrevocable, subject to Borrower’s right to convert the rate of interest payable
under the Notes with respect to any LIBOR Amount from the LIBO Based Rate to the Prime Based Rate
as provided in Section 2.10. Administrative Agent shall, on the day of its receipt of the LIBO
Rate Request from Borrower, notify each Lender by facsimile of the specified LIBOR Amount and the
amount of the Lender’s portion thereof, the Interest Period and date of commencement thereof, and
the interest rate applicable to such LIBOR Amount. Each LIBO Rate Request shall be applicable to
the Notes in accordance with the Lenders’ respective Pro Rata Shares, so that, barring a conversion
or suspension of the LIBO Based Rate by one or more, but not all, Lenders, pursuant to Article III,
the outstanding principal amounts of each of the Notes shall contain segments bearing interest at
the

19

 

Prime Based Rate and/or LIBO Based Rate(s) under particular Interest Period(s), each of which
segments shall correspond to a proportional segment of the outstanding principal amount of every
other Note. In the event that Borrower fails to submit a LIBO Rate Request with respect to a LIBOR
Amount not later than 12 Noon (New York time) three (3) Business Days prior to the last day of the
relevant Interest Period, the LIBOR Amount in question shall bear interest, commencing at the end
of such Interest Period, at the Prime Based Rate for a one (1) month Interest Period.

     Interest shall be computed on an actual/360-day basis (i.e., interest for each
day during which any portion of the Principal Amount is bearing interest at a particular interest
rate per annum shall be computed at such rate divided by 360).

     Borrower shall pay interest on the Principal Amount to Administrative Agent for the account of
Lenders. Interest on the Principal Amount shall be payable, in arrears, monthly on the first day
of the first month following the Initial Advance and on the first day of each month thereafter
until the Notes are repaid in full.

     Section 2.09. Limitation on Number of Interest Periods. Borrower shall not have the
right to have more than five (5) Interest Periods, in the aggregate, in respect of the Loan in
effect at any one time, whether or not any portion of the Principal Amount is then bearing interest
at the Prime Based Rate.

     Section 2.10. Conversions of Interest Rate. Provided there exists no Event of
Default, Borrower shall have the right to convert, from time to time, the rate of interest payable
under the Notes with respect to any portion of the Principal Amount to the LIBO Based Rate or the
Prime Based Rate, subject to the terms of this Agreement (including, without limitation, the
payment of all amounts due in connection with any such conversion from the LIBO Based Rate on a
date other than the last day of an applicable Interest Period) and provided that, in the
case of a conversion from the LIBO Based Rate, the entire LIBOR Amount is the subject of the
conversion. Conversions shall be accomplished (i) in the case of a conversion from the Prime Based
Rate to the LIBO Based Rate, by Borrower’s submission of a LIBO Rate Request in accordance with
Section 2.08 or (ii) in the case of a conversion from the LIBO Based Rate to the Prime Based Rate,
by Borrower’s request to Administrative Agent by telephone (to be promptly confirmed in writing),
to be received by Administrative Agent at least three (3) Business Days prior to the date specified
for such conversion, specifying the LIBOR Amount with respect to which the interest rate is to be
converted and the date of the conversion. With respect to any portion of the Principal Amount
subject to the LIBO Based Rate, Borrower shall not have the right to convert from one Interest
Period to another other than the last day of an applicable Interest Period. On the date of its
receipt of such request, Administrative Agent shall notify each Lender thereof either by telephone
or by facsimile.

     Section 2.11. Inapplicability of LIBO Based Rate. Any portion of the Principal
Amount to which the LIBO Based Rate is not or cannot pursuant to the terms of this Agreement be
applicable shall bear interest at the Prime Based Rate. Upon the occurrence of an Event of
Default, the entire Principal Amount shall, at the option of the

20

 

Required Lenders, immediately and without notice to Borrower, bear interest at the Prime Based
Rate. In addition, following the occurrence of an Event of Default, Borrower shall have no right
to submit a LIBO Rate Request with respect to any LIBOR Amount for which the current Interest
Period is expiring. The foregoing provisions shall not be construed as a waiver by Lenders of
their right to pursue any other remedies available to them under the Mortgage or any other Loan
Document nor shall they be construed to limit in any way the application of the Default Rate as
provided in the Mortgage.

     Section 2.12. Late Payment Premium. Borrower shall pay to Administrative Agent for
the account of Lenders a late payment premium in the amount of 5% of any payments of principal or
interest under the Loan made more than ten (10) days after the due date thereof, which late payment
premium shall be due with any such late payment.

     Section 2.13. Voluntary Prepayments. Borrower may, upon at least five (5) Business
Days’ notice (which notice shall be irrevocable) to Administrative Agent, prepay the Principal
Amount, in whole or part, without premium or penalty; provided, however, that (i)
any partial prepayment under this Section shall be in a principal amount of not less than
$1,000,000 and an integral multiple of $100,000, (ii) prepayment of a LIBOR Amount other than on
the last day of the applicable Interest Period shall be subject to the provisions of Section 3.03
and (iii) each prepayment under this Section shall include all interest accrued on the amount of
principal prepaid (and all late charges and other sums that may be payable) through the date of
prepayment.

     Section 2.14. Annual Commitment Reduction/Required Amortization. Commencing on the
first day of December, 2007 and on the first day of each December thereafter until the Maturity
Date both the Loan Amount and the Total Loan Commitment shall reduce by the amount set forth on
Schedule A attached hereto and, to the extent the Loan Amount as so reduced would exceed
the Outstanding Credit Amount, Borrower shall, on the date of reduction make a mandatory principal
payment (or at Administrative Agent’s option deliver cash collateral for any Letter of Credit
outstanding) in the amount of such excess such that, at no time, shall the Outstanding Credit
Amount (excluding any portion of a Letter of Credit which is secured by cash collateral) exceed the
Loan Amount as reduced from time to time. After any release of a Property, in accordance with
Section 8.18 or otherwise, Administrative Agent shall recalculate the required annual amortization
payments due hereunder in accordance with a constant annual payment mortgage schedule based on the
Funding Cap at such time and an assumed interest rate of 8% per annum, which would fully amortize
over a term equal to (x) twenty-five (25) years less (y) the number of full twelve (12) month
periods elapsed since the date hereof. Administrative Agent shall provide Borrower with a schedule
of such recalculated amortization payment schedule upon request and such schedule shall be final
and binding upon Borrower absent manifest error.

     Section 2.15. Nature of Lenders’ Obligations; Borrower’s Rights and Obligations in Event a
Lender Fails to Make an Advance. The obligations of Lenders under this Agreement are several,
and no Lender shall be responsible for the failure of any other Lender to fund the portion required
to be funded by such other Lender of an advance of the Loan.

21

 

     Section 2.16. Extension of Maturity.

     (a) Borrower shall have the right to extend the Maturity Date for a period of one (1) year, to
December 1, 2011 (the “First Extension Term”), upon satisfaction of the following conditions: (i)
Borrower shall give notice to Administrative Agent of Borrower’s election to so extend the Maturity
Date no later than thirty (30) days prior to the original Maturity Date and no earlier than ninety
(90) days prior to the original Maturity Date, (ii) no Default or Event of Default exists at either
the time Borrowers gives notice of its exercise of such extension option or as of the original
Maturity Date, (iii) with Borrower’s notice exercising such extension option, Borrower shall pay to
BofA the extension fee required pursuant to the Supplemental Fee Letter, which fee shall be earned
by BofA upon receipt and (iv) without limiting the generality of the foregoing, Borrower shall be
in compliance with Section 6.06.

     (b) Provided that Borrower has extended the Maturity Date in accordance with the terms of
Section 2.16(a), Borrowers shall have the right to further extend the Maturity Date for an
additional period of one (1) year, to December 1, 2012 (the “Second Extension Term”), upon
satisfaction of the following conditions: (i) Borrower shall give notice to Administrative Agent
of Borrower’s election to so extend the Maturity Date no later than thirty (30) days prior to the
Maturity Date as extended by the First Extension Term and no earlier than ninety (90) days prior to
the Maturity Date as extended by the First Extension Term, (ii) no Default or Event of Default
exists at either the time Borrowers give notice of its exercise of such extension option or as of
the Maturity Date, as extended by the First Extension Term, (iii) with Borrower’s notice exercising
such extension option, Borrower shall pay to BofA the extension fee required pursuant to the
Supplemental Fee Letter, which fee shall be earned by BofA upon receipt and (iv) without limiting
the generality of the foregoing, Borrower shall be in compliance with Section 6.06.

ARTICLE III

YIELD MAINTENANCE ETC.

     Section 3.01. Additional Costs and Other Effects of Regulatory Changes; Taxes.
Borrower shall pay directly to a Lender, promptly upon demand, such amounts as are necessary to
compensate such Lender for Additional Costs resulting from any Regulatory Change which (i) subjects
such Lender to any tax, duty or other charge with respect to the Loan or its Note, or changes the
basis of taxation of any amounts payable to such Lender under the Loan or its Note (other than
taxes imposed on the overall net income of such Lender or of its Applicable Lending Office by the
jurisdiction in which such Lender’s principal office or such Applicable Lending Office is located),
(ii) imposes, modifies or deems applicable any reserve, special deposit or similar requirements
relating to any extensions of credit or other assets of, or any deposits with or other liabilities
of, such Lender, (iii) imposes on such Lender or, in the case of LIBOR Amounts, on the London
interbank market, any other condition affecting the Loan or its Note, or any of such extensions of
credit or liabilities or (iv) imposes any capital adequacy requirements on such Lender by virtue of
the Loan or the Notes. Such Lender will notify Borrower (with

22

 

a copy to Administrative Agent) of any event occurring after the date hereof which would
entitle it to compensation pursuant to this paragraph as promptly as practicable after it obtains
knowledge thereof and determines to request such compensation, and will designate a different
Applicable Lending Office for those portions of the Loan affected by such event if such designation
will avoid the need for, or reduce the amount of, such compensation and will not, in such Lender’s
sole opinion, be disadvantageous to it, provided that such Lender shall have no obligation to so
designate an Applicable Lending Office located in the United States.

     Without limiting the effect of the immediately preceding paragraph, in the event that, by
reason of any Regulatory Change, (i) a Lender incurs Additional Costs based on or measured by the
excess above a specified level of the amount of (1) a category of deposits or other liabilities of
such Lender which includes deposits by reference to which the LIBO Rate is determined as provided
in this Agreement and/or (2) a category of extensions of credit or other assets of such Lender
which includes loans the interest on which is determined on the basis of rates referred to in the
definition of “LIBO Rate” in Section 1.01, (ii) a Lender becomes subject to restrictions on the
amount of such a category of liabilities or assets which it may hold or (iii) it shall be unlawful
or impossible for a Lender to make or maintain its Pro Rata Share of the Loan (or any portion
thereof) at the LIBO Based Rate, then such Lender’s obligation to make or maintain its Pro Rata
Share of the Loan (or any portion thereof) at the LIBO Based Rate (and Borrower’s right to request
the same) shall be suspended and such Lender shall give notice thereof to Borrower (with a copy to
Administrative Agent) and, upon the giving of such notice, interest payable on the affected Note
shall be converted to the Prime Based Rate, unless such Lender may lawfully continue to maintain
its Pro Rata Share of the Loan (or any portion thereof) then bearing interest at the LIBO Based
Rate to the end of the current Interest Period(s), at which time the interest rate on the affected
Note shall convert to the Prime Based Rate. If subsequent to any conversion to the Prime Based
Rate as provided above such Lender determines that such Regulatory Change has ceased to be in
effect, such Lender will so notify Borrower (with a copy to Administrative Agent), and Borrower may
convert the rate of interest payable under the affected Note with respect to those portions of the
Principal Amount bearing interest at the Prime Based Rate to the LIBO Based Rate by submitting a
LIBO Rate Request in respect thereof and otherwise complying with the provisions of this Agreement
with respect thereto.

     Determinations by each Lender of the existence or effect of any Regulatory Change on its costs
of making or maintaining its Pro Rate Share of the Loan, or portions thereof, at the LIBO Based
Rate, or on amounts receivable by it in respect thereof, and of the additional amounts required to
compensate such Lender in respect of Additional Costs, shall be conclusive, so long as made on a
reasonable basis.

     Section 3.02. Limitations on Availability of LIBO Based Rate. Anything herein to the
contrary notwithstanding, if, at the time of or prior to the determination of the LIBO Based Rate
in respect of any LIBO Rate Request Amount as provided in this Agreement, (i) Administrative Agent
determines (which determination shall be conclusive, so long as made on a reasonable basis) that by
reason of circumstances affecting the London interbank market generally, adequate and fair means do
not or will

23

 

not exist for determining the LIBO Rate applicable to an Interest Period or (ii) a Lender
determines (which determination shall be conclusive, so long as made on a reasonable basis) that
the LIBO Rate will not accurately reflect the cost to such Lender of making or maintaining its Pro
Rata Share of the Loan (or any portion thereof) at the LIBO Based Rate, then Administrative Agent,
in the case of the circumstances described in clause (i) above, or such Lender, in the case of the
circumstances described in clause (ii) above, shall give Borrower prompt notice thereof (with a
copy to Administrative Agent in the case of the notice from such Lender), and the LIBO Rate Request
Amount in question, in the case of the circumstances described in clause (i) above, or such
Lender’s portion thereof, in the case of the circumstances described in clause (ii) above, shall
bear interest, or continue to bear interest, as the case may be, at the Prime Based Rate. If at
any time subsequent to Administrative Agent’s or such Lender’s giving of such notice,
Administrative Agent or such Lender, as the case may be, determines that because of a change in
circumstances the LIBO Based Rate is again available to Borrower, Administrative Agent or such
Lender, as the case may be, shall so notify Borrower (with a copy to Administrative Agent, in the
case of the notice from such Lender) and Borrower may convert the rate of interest payable under
the Notes or such Lender’s Note, as the case may be, from the Prime Based Rate to the LIBO Based
Rate by submitting a LIBO Rate Request in respect thereof and otherwise complying with the
provisions of this Agreement with respect thereto.

     Section 3.03. Certain Compensation. Borrower shall pay directly to a Lender,
immediately upon request and notwithstanding contrary provisions contained in the Mortgage or other
Loan Documents, such amounts as shall, in the judgment of such Lender (which shall be conclusive so
long as made on a reasonable basis), compensate it for any loss, cost or expense incurred by it as
a result of (i) any payment or prepayment (under any circumstances whatsoever, whether voluntary or
involuntary) of any portion of the Principal Amount bearing interest at the LIBO Based Rate on a
date other than the last day of an applicable Interest Period, (ii) the conversion (for any reason
whatsoever, whether voluntary or involuntary) of the rate of interest payable under such Lender’s
Note from the LIBO Based Rate to the Prime Based Rate with respect to any portion of the Principal
Amount then bearing interest at the LIBO Based Rate on a date other than the last day of an
applicable Interest Period, (iii) the failure of all or a portion of an advance of the Loan which
was to have borne interest at the LIBO Based Rate pursuant to a LIBO Rate Request to be made, (iv)
any failure by Borrower to prepay any portion of the Principal Amount bearing interest at the LIBO
Based Rate on the date specified in Borrower’s notice of prepayment or (v) the failure of Borrower
to borrow, continue or convert in accordance with a LIBO Rate Request submitted by it, which
amounts shall include, without limitation, an amount equal the Present Value (determined as
hereinafter provided) of the dollar amount which is obtained by multiplying the number of days from
the date of the occurrence to the last day of the applicable Interest Period by a number which is
calculated by (i) multiplying the amount prepaid, converted, not advanced, not prepaid or not
borrowed, as the case may be, by the excess of the LIBO Based Rate applicable thereto over the
current rate for United States Treasury securities (bills on a discounted basis shall be converted
to a bond equivalent) with a maturity date closest to the last day of the applicable Interest
Period and (ii) dividing the product thereof by 360. For purposes of this Section, Present Value
shall be determined by using the number of

24

 

days during the period from the date of occurrence to and including the last day of the
applicable Interest Period and using the above-referenced United States Treasury security rate. A
determination by a Lender as to the amounts payable to it pursuant to this Section shall be
conclusive absent manifest error.

     Section 3.04. “Lender” to Include Participants. For purposes of this Article III and
of the definition of “Additional Costs” in Section 1.01, the term “Lender” shall, at each Lender’s
option, be deemed to include such Lender’s present and future Participants in the Loan to the
extent of each such Participant’s actual Additional Costs or other losses, costs or expenses
payable pursuant to this Article III.

ARTICLE IV

CONDITIONS PRECEDENT

     Section 4.01. Conditions Precedent to Loan. Lenders shall not be obligated to make
the Initial Advance until the following conditions shall have been satisfied:

     (a) There shall exist no Default or Event of Default, and no Default or Event of
Default would result from the making of the Loan;

     (b) The representations and warranties made to Administrative Agent or Lenders herein,
in the other Loan Documents and in any other document, certificate or statement executed or
delivered to Administrative Agent or Lenders in connection with the Loan shall be true and
correct on and as of the date of the advance of the Loan with the same effect as if made on
such date;

     (c) The Improvements shall not have been materially injured or damaged by fire or
other casualty; and

     (d) Lenders shall have received and approved each of the following:

     (1) Loan Fees and Expenses. (i) Those fees required by the
Supplemental Fee Letter to be paid on or before the date hereof, to be retained by
Administrative Agent and/or BofA of its own account (without credit for any amounts
paid under existing credit facilities refinanced hereby) to be retained by BofA
whether or not any advances are made hereunder, (ii) the first payment of the
Administration Fee required by Section 6.03 to be paid to Administrative Agent for
its own account and (iii) all fees and expenses incurred by Administrative Agent
(including, without limitation, the reasonable fees and expenses of Administrative
Agent’s Counsel, Lenders’ environmental and insurance consultants, and the preparer
of the appraisal required by paragraph (4) below);

     (2) Loan Documents. This Agreement and each of the other Loan
Documents, duly executed by the parties thereto, and, where applicable, duly
acknowledged and in proper form for recording or filing,

25

 

as the case may be, and all necessary or desirable recordings and filings
shall have been duly made;

     (3) Financial Statements. Current Financial Statements and such other
financial data (including, without limitation, current financial statements of
tenants under leases in respect of the Mortgaged Property and of parties to any of
the Premises Documents, and of the guarantor(s), if any, of any such tenants or
parties) as Administrative Agent shall require;

     (4) Appraisal. An independent M.A.I. appraisal of the Property and
Improvements complying in all respects with the standards for real estate
appraisals established pursuant to the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989;

     (5) Insurance Policies. The policies of insurance required by the
Mortgage, together with evidence of the payment of the premiums therefor;

     (6) Hazardous Materials Report/Reliance Letter. A detailed report by
a properly qualified engineer, which shall include, inter alia, a
certification that such engineer has obtained and examined a list of prior owners,
tenants and other users of all or any portion of the Property or any improvements
thereon, and has made an on-site physical examination of the Property, and a visual
observation of the surrounding areas, and has found no evidence of past or present
Hazardous Materials activities or the presence of Hazardous Materials, together
with, if required by Administrative Agent, a “reliance letter” addressed to
Administrative Agent with respect to such report;

     (7) Title Policy. A paid title insurance policy, in the amount of the
Loan Allocation for each property in ALTA 10-17-92 or other form approved by
Administrative Agent’s Counsel with such endorsements as shall be reasonably
requested by Administrative Agent’s Counsel (including “tie-in” endorsements
aggregating liability under such policies to the extent permitted by Law), issued
by the Title Insurer which shall insure the Mortgage to be a valid lien on
Borrower’s interest in the premises free and clear of all defects and encumbrances
except those previously received and approved by Administrative Agent’s Counsel,
and shall contain (i) full coverage against mechanics’ liens (filed and inchoate),
(ii) a reference to the survey but no survey exceptions except those theretofore
approved by Administrative Agent’s Counsel, (iii) such affirmative insurance and
endorsements as Administrative Agent’s Counsel may require, and (iv) if any such
policy is dated earlier than the date of the disbursement of the Loan, an
endorsement to such policy, in form approved by Administrative Agent’s Counsel,
redating the policy and setting forth no additional exceptions except those
approved by

26

 

Administrative Agent’s Counsel; and shall be accompanied by such reinsurance
agreements between the Title Insurer and title companies approved by Lender, in
ALTA 1994 facultative form, as Lender may require;

     (8) Survey. A current ALTA/ACSM, as-built survey of the Property,
certified to Lender and the Title Insurer showing (i) the location of the perimeter
of the Property by courses and distances, (ii) all easements, rights-of-way, and
utility lines referred to in the title policy required by this Agreement or which
actually service or cross the Property (with instrument, book and page number
indicated), (iii) the lines of the streets abutting the Property and the width
thereof, and any established building lines (and that such roads have been
dedicated for public use and are completed and have been accepted by all required
Governmental Authorities), (iv) any encroachments and the extent thereof upon the
Property, (v) locations of all portions (with the acreage thereof also identified)
of the Property, if any, which are located in an area designated as a “flood prone
area” as defined by U.S. Department of Housing and Urban Development pursuant to
the Flood Disaster Protection Act of 1973 and (vi) the Improvements, and the
relationship thereof by distances to the perimeter of the Property, established
building, setback and street lines and (vi) if the Property is described as being
on a filed map, a legend relating the survey to said map;

     (9) Leases and Premises Documents. Certified copies of all leases in
respect of the Mortgaged Property, accompanied by, in the case of Anchors and any
other leases specified by Administrative Agent, estoppel certificates from the
tenants thereunder and executed notice-of-assignment letters in the form of EXHIBIT
B in respect thereof; executed subordination and attornment agreements, in
Administrative Agent’s usual form, in respect of such leases as Administrative
Agent may require; a certified copy of the standard form of lease or contract of
sale, as the case may be, Borrower will use in connection with the leasing of space
in the Improvements or the sale of portions of the Property; certified copies of
all Premises Documents, together with estoppel certificates from the parties
thereto and a certified current rent roll for the Improvements;

     (10) Requisition. A Requisition for the Initial Advance,

     (11) Counsel Opinions. Opinions of Borrower’s counsel and local
counsel (and, if required by Lender, of a local counsel selected by Lender
or Administrative Agent’s Counsel) to the effects set forth on EXHIBIT C; Borrower
hereby acknowledges that each of its counsel delivering opinion letters to
Administrative Agent on or about the date hereof has been requested and directed by
Borrower to do so;

27

 

     (12) Organizational Documents. If Borrower, the mortgagor or grantor
under any Mortgage (if different from Borrower), Guarantor or any general partner
or member of any of them is a corporation, current copies of the following
documents with respect to each (unless otherwise indicated):

     (i) a good-standing certificate from the jurisdiction of its
incorporation and, as to Borrower and the mortgagor or grantor under the
Mortgage only, from the jurisdiction in which the Property is located,

     (ii) a resolution, certified by the corporate secretary, of the
shareholders or directors of the corporation authorizing the consummation
of the transactions contemplated hereby and the execution, delivery and
performance of the Loan Documents and any other documents to be executed,
delivered or performed by said corporation (including any substitute or
replacement Notes to be executed and delivered pursuant to the terms
hereof), and

     (iii) a certificate of the corporate secretary as to the incumbency
of the officers executing any of the documents required hereby,

and, if Borrower, the mortgagor or grantor under the Mortgage (if different from
Borrower), Guarantor or any general partner or member of any of them is a
partnership, venture, limited liability company or trust:

     (iv) the entity’s organizational agreement and all amendments and
attachments thereto, certified by a general partner, venturer, member or
trustee to be true and complete,

     (v) any certificates filed or required to be filed by the entity in
the jurisdictions of its formation and where the Property is located in
order for it to do business in those jurisdictions, and

     (vi) evidence of the authorization of the consummation of the
transactions contemplated hereby and the execution, delivery and
performance of the Loan Documents and any other documents to be executed,
delivered or performed by said entity (including any substitute or
replacement notes to be executed and delivered pursuant to the terms
hereof), and including any required consents by partners, venturers,
members, trustees or beneficiaries;

     (13) Management and Leasing Contracts. Copies, certified to be true
and complete, of all existing contracts providing for the management, maintenance,
operation or leasing of the Property and Improvements, together with, in each case,
such collateral assignments or “will-serve” letters as Administrative Agent may
require;

28

 

     (14) Permits and Approvals. Copies of the certificate(s) of occupancy
for the Improvements and of any and all other authorizations (including plot plan
and subdivision approvals, zoning variances, water, sewer, building and other
permits) required by Governmental Authorities or otherwise necessary for the use,
occupancy and operation of the Property and/or Improvements for their intended
purposes in accordance with all applicable Laws;

     (15) Intentionally Omitted;

     (16) Chattel Searches. UCC searches against Borrower or other owner
of the Mortgaged Property and advice from the Title Insurer to the effect that
searches of proper public records disclose no leases of personalty or financing
statements filed or recorded against the Mortgaged Property, Borrower or other
owner of any Mortgaged Property;

     (17) Intentionally Omitted; and

     (18) Additional Documentation. Such other approvals, opinions or
documents as Lender may reasonably request including, but not limited to, (i) a
current certified rent roll for the Mortgaged Property and tenant estoppel letters
for all Anchors, (ii) ground lessor estoppel certificates from the ground lessor
with respect to any ground leases encumbered by the Mortgage and (iii) current
financial statements of Guarantor showing a minimum net worth of $100,000,000 (the
“Net Worth Requirement”) and a minimum Unrestricted Cash and Cash Equivalents of
$10,000,000 (the “Liquidity Requirement”).

     Section 4.02. Conditions to Advances After the Initial Advance. In addition to the
Initial Advance, an amount of Loan proceeds (each such advance, an “Additional Advance”) shall be
made available to Borrower subject to the satisfaction of the following conditions:

     (a) Subject to the limitations set forth in Section 2.04 and Section 4.02(h) with
respect to any Additional Advance), the amount of each Additional Advance subsequent to the
Initial Advance shall be in the minimum amount of $100,000 (unless less than said amount is
available for disbursement pursuant to the terms hereof at the time of such Additional
Advance, in which case the amount of such subsequent advance shall be equal to such
remaining availability).

     (b) All conditions of Section 4.01 shall have been and remain satisfied as of the date
of such advances;

     (c) There shall exist no Default or Event of Default;

     (d) The representations and warranties made to Administrative Agent and Lenders
herein, in the other Loan Documents and in any other document, certificate or statement
executed or delivered to Administrative Agent or Lenders

29

 

in connection with the Loan shall be true and correct on and as of the date of
the advance with the same effect as if made on such date (except for the updated rent
roll);

     (e) Lender shall have received a Requisition, and, if required, a title continuation
report;

     (f) There shall have occurred no material adverse change in the condition or value of
the “Mortgaged Property”, as defined in the Mortgage;

     (g) Mortgagor shall furnish Administrative Agent with a statement, duly acknowledged,
of the amount due whether for principal or interest, on the Loan and whether any offsets,
counterclaims or defenses exist against the indebtedness secured hereby; and

     (h) The aggregate outstanding proceeds of the Loan, including the amount of the
advance being requested, shall not exceed the amount necessary to satisfy the Loan to Value
Test and the DSC Test for Additional Advances.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

     Borrower and Guarantor represent and warrant to Administrative Agent and Lenders that:

     Section 5.01. Due Formation, Power and Authority. If it, the mortgagor or grantor
under the Mortgage (if different from Borrower), Guarantor or any general partner or member of any
of them is a corporation, partnership, venture, limited liability company or trust, each such
entity is duly organized, validly existing and in good standing under the Laws of the jurisdiction
of its formation, is qualified to do business (if required) and is in good standing in the
jurisdiction in which the Property is located, and has full power and authority to consummate the
transactions contemplated hereby and to execute, deliver and perform this Agreement and any other
Loan Document to which it is a party.

     Section 5.02. Legally Enforceable Agreements. Each Loan Document to which Borrower
or Guarantor is a party is a legal, valid and binding obligation of such party, enforceable against
Borrower or Guarantor, as the case may be, in accordance with its terms, except to the extent that
such enforcement may be limited by applicable bankruptcy, insolvency and other similar Laws
affecting creditors’ rights generally.

     Section 5.03. Financial Statements. Financial Statements have been heretofore
delivered to Lenders which are true, correct and current in all respects and which fairly present
the respective financial conditions of the subjects thereof as of the respective dates thereof; no
material adverse change has occurred in the financial conditions reflected therein since the
respective dates thereof and no borrowings (other than the

30

 

Loan) which might give rise to a lien or claim against the Mortgaged Property or proceeds of
the Loan have been made by Borrower or others since the dates thereof.

     Section 5.04. Compliance With Laws; Payment of Taxes. Borrower and Guarantor are in
compliance with, and the transactions contemplated hereby and by the other Loan Documents do not
and will not violate any provision of, or require any filing, registration, consent or approval
under, any Law presently in effect having applicability to Borrower or Guarantor; Borrower has
filed all tax returns (federal, state and local) required to be filed and has paid all taxes,
assessments and governmental charges and levies due and payable (including those in respect of the
Mortgaged Property), including interest and penalties.

     Section 5.05. Litigation. There are no actions, suits or proceedings pending or
threatened against or affecting it, Guarantor, the Mortgaged Property, the validity or
enforceability of the Mortgage or the priority of the lien thereof at law, in equity or before or
by any Governmental Authorities except actions, suits or proceedings which have been disclosed to
Administrative Agent and Lenders in writing and which are fully covered by insurance or would, if
adversely determined, not substantially impair the ability of Borrower or Guarantor to pay when due
any amounts which may become payable under the Notes or Guaranty or to otherwise pay and perform
their respective obligations in connection with the Loan; to Borrower’s knowledge, neither it nor
Guarantor is in default with respect to any order, writ, injunction, decree or demand of any court
or Governmental Authorities.

     Section 5.06. No Conflicts or Defaults. The consummation of the transactions
contemplated hereby and the performance hereof and of the other Loan Documents have not resulted
and will not result in any breach of, or constitute a default under, any mortgage, deed of trust,
lease, bank loan or credit agreement, corporate charter, by-laws, partnership agreement or other
instrument to which Borrower or Guarantor is a party or by which either of them may be bound or
affected.

     Section 5.07. Solvency. Borrower and Guarantor are, and upon consummation of the
transactions contemplated by this Agreement, the other Loan Documents and any other related
documents, will be, Solvent.

     Section 5.08. Governmental Regulation. Borrower is not subject to regulation under
the Investment Company Act of 1940 or any Law limiting its ability to incur indebtedness for money
borrowed as contemplated hereby.

     Section 5.09. Insurance. Borrower has in force, and has paid the premiums in respect
of, all of the insurance required by the Mortgage.

     Section 5.10. ERISA. Neither Borrower nor Guarantor nor any other Person, including
any fiduciary, has engaged in any prohibited transaction (as defined in Section 4975 of the Code or
Section 406 of ERISA) which could subject Borrower or Guarantor or any Person whom they have an
obligation to indemnify to any tax or penalty imposed under Section 4975 of the Code or Section 502
of ERISA; neither Borrower nor

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Guarantor nor any ERISA Affiliate maintains, contributes to or has any liability with respect
to a Multiemployer Plan or any other plan subject to Title IV of ERISA; each Employee Benefit Plan
is administered in accordance with its terms and in compliance with all applicable Laws, including
any reporting requirements; each Pension Plan intending to qualify under Section 401(a) or 401(k)
of the Code does so qualify; there is no lien outstanding or security interest given in connection
with a Pension Plan; neither Borrower nor Guarantor nor any ERISA Affiliate has any liability with
respect to an accumulated funding deficiency (whether or not waived) under Section 412 of the Code
or Section 302 of ERISA; neither Borrower nor Guarantor has any liability for retiree medical or
death benefits (contingent or otherwise) other than as required by Section 4980B of the Code; and
no part of the funds to be used by Borrower or Guarantor in satisfaction of their respective
obligations under this Agreement and the other Loan Documents constitute “plan assets” of any
“employee benefit plan” within the meaning of ERISA or of any “plan” within the meaning of Section
4975(e)(1) of the Code, as interpreted by the Internal Revenue Service and the United States
Department of Labor in rules, regulations, releases or bulletins or as interpreted under applicable
case law.

     Section 5.11. Other Documents. The Major Leases and Premises Documents are
unmodified and in full force and effect, there are no defaults (or events which with notice or the
passage of time, or both, would constitute such a default) under any thereof and all conditions to
the effectiveness and continuing effectiveness thereof required to be satisfied as of the date
hereof have been satisfied.

     Section 5.12. No Defaults. There exists no Default or Event of Default.

     Section 5.13. Accuracy of Information; Full Disclosure. Neither this Agreement nor
any documents, financial statements, reports, notices, schedules, certificates, statements or other
writings furnished by or on behalf of Borrower or Guarantor to Lender in connection with the
negotiation of this Agreement or the other Loan Documents or the consummation of the transactions
contemplated hereby, or required herein or by the other Loan Documents to be furnished by or on
behalf of Borrower or Guarantor, contains any untrue or misleading statement of a material fact or
omits a material fact necessary to make the statements herein or therein not misleading; there is
no fact which Borrower has not disclosed to Administrative Agent and Lenders in writing which
materially affects adversely nor, so far as Borrower can now foresee, will materially affect
adversely any of the Mortgaged Property or the business affairs or financial condition of Borrower
or Guarantor, or the ability of Borrower or Guarantor to perform this Agreement and the other Loan
Documents.

     Section 5.14. Separate Tax and Zoning Lot. Each Mortgaged Property constitutes a
distinct parcel for purposes of zoning and of taxes, assessments and impositions (public or
private) and are not otherwise considered as part of a larger single lot for purposes of zoning or
of taxes, assessments or impositions (public or private).

     Section 5.15. The Improvements. There are no structural defects in the Improvements
or violations of any requirement of any Governmental Authorities with respect thereto; the use,
occupancy and operation of the Improvements comply with all

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applicable permits and restrictive covenants affecting the Mortgaged Property, as well as with
the Premises Documents and with all zoning, building, environmental, ecological, landmark,
subdivision and other Laws, and all requirements for such use, occupancy and operation have been
satisfied; there exist a sufficient number of parking spaces necessary to satisfy the requirements
of the Premises Documents and any leases and all zoning and other applicable legal requirements
with respect to the Mortgaged Property, and all required landscaping, sidewalks and other
amenities, and all off-site improvements, related to the Improvements have been completed.

     Section 5.16. Utility Services. All utility services necessary for the use and
operation of the Improvements for their intended purposes are available and servicing the Property,
including water supply, storm and sanitary sewer, gas, electric power and telephone facilities.

     Section 5.17. Creation of Liens. It has entered into no contract or arrangement of
any kind the performance of which by the other party thereto would give rise to a lien on the
Mortgaged Property or any part thereof.

     Section 5.18. Roads. All roads necessary for the full utilization of the
Improvements for their intended purposes have been completed and dedicated to public use and
accepted by all appropriate Governmental Authorities.

     Section 5.19. Requisition as Reaffirmation. Each Requisition submitted to
Administrative Agent, and the receipt of the funds requested thereby, shall constitute an
affirmation by Borrower that the representations and warranties contained herein and in the other
Loan Documents remain true and correct as of the respective dates of such Requisitions.

     Section 5.20. Patriot Act.

     (a) As of the date hereof, none of the funds or other assets of Borrower or of any of its
direct or indirect owners (including Guarantor) constitute property of, or are beneficially owned,
directly or indirectly, by, any Person subject to trade restrictions under United States Law,
including those who are covered by the International Emergency Economic Powers Act, 50 U.S.C.
§§1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et
seq., and any Executive Orders or regulations promulgated thereunder (an “Embargoed
Person”) with the result that the investment in Borrower (whether directly or indirectly) is
prohibited by such applicable Law or the Loan is in violation of such Law; (ii) no Embargoed Person
has any interest of any nature whatsoever (whether directly or indirectly) in Borrower with the
result that the investment in Borrower (whether directly or indirectly) is prohibited by such
applicable Law or the Loan is in violation of such Law; and (iii) none of the funds of Borrower
have been derived from any unlawful activity with the result that the investment in Borrower
(whether directly or indirectly) is prohibited by such applicable Law or the Loan is in violation
of such Law.

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     (b) Neither Borrower nor any of its direct or indirect owners (including Guarantor) is in
violation of the U.S. Federal Bank Secrecy Act, as amended, and its implementing regulations (31
CFR part 103), the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 and the regulations promulgated
thereunder, any order issued with respect to anti-money laundering by the U.S. Department of the
Treasury’s Office of Foreign Assets Control (“OFAC”), or any other anti-money laundering Law.

     (c) Neither Borrower nor any if its direct or indirect owners (including Guarantor) is a
Person with whom United States Persons are restricted from doing business with under (a)
regulations issued by OFAC (including those persons and entities named on OFAC’s Specially
Designated Nationals and Blocked Persons list) or under any United States Law (including the
September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who
Commit, Threaten to Commit, or Support Terrorism) or (b) any other Law. Without limiting the
foregoing, Borrower is not presently funding its obligations hereunder with funds from any of the
Persons referred to in this paragraph (c).

     (d) Guarantor has joined in this Agreement, for the purposes, among other things, of joining
in the representations to Administrative Agent and Lenders in this Section 5.20.

ARTICLE VI

COVENANTS OF BORROWER

     Borrower covenants and agrees with Administrative Agent and Lenders that it will promptly:

     Section 6.01. Compliance with Laws; Payment of Taxes. Comply with all Laws
applicable to it or the Mortgaged Property, or any part thereof, such compliance to include,
without limitation, paying before the same become delinquent all taxes, assessments and
governmental charges imposed on it or the Mortgaged Property, or any part thereof, and promptly
furnish Administrative Agent with reports of any official searches made by Governmental Authorities
and any claims of violations thereof.

     Section 6.02. Leases and Premises Documents. Not enter into any Major Lease without
the prior written consent of Administrative Agent, not to be unreasonably withheld or delayed; and
deliver to Administrative Agent certified copies of all leases in respect of the Mortgaged Property
and all Premises Documents and all amendments to any thereof (in any case, whether executed before
or after the date hereof) together with (i) if requested by Administrative Agent, current financial
statements of the tenants thereunder or parties thereto as the case may be, and of the
guarantor(s), if any, of such tenants or parties and (ii) in the case of all Major Leases, a
notice-of-assignment letter in the form of EXHIBIT B; and keep all Premises Documents and, except
as may be permitted by the Mortgage, all leases in full force and effect.

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     Section 6.03. Administration Fee/Inspection Fee. During the term of the Loan,
Borrowers shall pay to Administrative Agent for its own account (and not for the pro rata benefit
of Lenders) an administration fee (the “Administration Fee”) in the amount set forth in the
Supplemental Fee Letter, payable in advance on the date hereof and on each anniversary of the date
hereof. Each payment of the Administration Fee shall be deemed earned in full upon payment.
Commencing on the first anniversary of the date hereof and on each anniversary thereafter during
the term of the Loan, deliver to Administrative Agent, for its own account, a non-refundable
administrative inspection fee (the “Inspection Fee”) in the amount set forth in the Supplemental
Fee Letter with respect to the costs associated with Lender’s annual inspection of the Property.

     Section 6.04. Continuing Accuracy of Representations and Warranties. Cause all of
the representations and warranties made to Administrative Agent or Lenders herein and in the other
Loan Documents to be continuously true and correct.

     Section 6.05. Covenants, Restrictions and Easements. Comply with all restrictions,
covenants and easements affecting the Mortgaged Property or the Improvements and cause the
satisfaction of all conditions hereof.

     Section 6.06. Financial Covenants. In no event shall Borrower permit (i) the Funding
Cap to exceed 65% of the appraised value of the Mortgaged Property (the “Loan to Value Test”) as
determined by an independent appraisal conducted at Borrower’s expense by an appraiser selected by
Administrative Agent, which appraisal shall be conclusive as to value absent manifest error,
provided, however, that, except for appraisals performed in connection with a re-calculation of the
Funding Cap under Section 2.04, Borrower shall not be obligated to pay for more than one (1)
appraisal per any twelve (12) consecutive month period so long as no Event of Default exists or
(ii) Net Operating Income to be less than 130% of debt service on the Outstanding Credit Amount
equal to the Funding Cap (the “DSC Test”). For purposes of determining compliance with the DSC
Test, Net Operating Income shall be calculated on a semi-annual basis using six months’ actual
figures and the projected figures for the next succeeding six months and debt service shall be
calculated based upon a loan in the Outstanding Credit Amount using an interest rate equal to the
greatest of (a) the highest actual interest rate then applicable hereunder; (b) the Treasury Rate
plus 225 basis points or (c) an interest rate equal to 8.0% and a (25) year equal payment self
liquidating amortization schedule, provided, however, that such non-compliance shall not constitute
an Event of Default under the Mortgage and hereunder if, within forty-five (45) days of the date
upon which Mortgagor receives written notice from Administrative Agent of Borrower’s non-compliance
thereof (the “Notice Date”), Mortgagor complies with the provisions of this Section 6.06, by either
(i) agreeing in writing to reduce the Funding Cap by an amount which would bring Borrower into
compliance with the DSC Test and the Loan to Value Test and, to the extent the Funding Cap as so
reduced would exceed the Outstanding Credit Amount, making a mandatory principal payment (or at
Administrative Agent’s option deliver cash collateral for any Letter of Credit outstanding) in the
amount of such excess such that, at no time, shall the Outstanding Credit Amount (excluding any
portion of a Letter of Credit which is secured by cash collateral) exceed the Funding Cap as
reduced from time to time, with Borrower paying all applicable

35

 

prepayment or other charges, if any, provided for herein or in the Note with respect to such
mandatory principal payment or (ii) delivering to Administrative Agent cash, a letter of credit
from a financial institution acceptable to Administrative Agent, or such other collateral as may be
acceptable to Lender in its sole discretion in an amount equal to the amount that would have been
required to have been prepaid pursuant to (i) above in order to cure such default. In the case of
Guarantor, Guarantor shall comply at all times with the Liquidity Requirement and the Net Worth
Requirement.

     Section 6.07. Payment of Costs. Pay all costs and expenses required for the
satisfaction of the conditions hereof, including, without limitation (i) all document and stamp
taxes, recording and filing expenses and fees and commissions lawfully due to brokers in connection
with the transactions contemplated hereby, (ii) any taxes, insurance premiums, liens, security
interests or other claims or charges against the Property or Improvements and (iii) all costs of
completion of the work to be performed by Borrower in space to be occupied in the Improvements
(including public space) to permit the lawful occupancy thereof for the purposes contemplated by
actual or prospective lessees or owners of such space as set forth in the individual leases,
subleases or purchase contracts thereof or in detailed work letters or other agreements or letters
of intent with respect thereto, or, in cases where there are no such leases, subleases, contracts,
work letters or other documents as aforesaid, as set forth in Borrower’s standard work letter or
the standard form of lease or contract, if any, required by paragraph (10) of Section 4.01(d), or,
in cases where none of the foregoing exists, to the level of building standard in accordance with
industry practices, as conclusively determined by the Engineering Consultant.

     Section 6.08. Brokers. Indemnify Administrative Agent and Lenders against claims of
brokers arising by reason of the execution hereof or the consummation of the transactions
contemplated hereby.

     Section 6.09. Correction of Defects. Upon demand of Administrative Agent or the
Engineering Consultant, correct any defects (including structural) in the Improvements.

     Section 6.10. Unused Fee. Borrower shall, during the term of the Loan, pay to
Administrative Agent for the account of each Lender a fee (the “Unused Fee”), computed on the daily
unused Individual Loan Commitment (i.e., that portion of the Individual Loan
Commitment, without reduction for the Special Holdback, which (x) is not outstanding hereunder and
(y) is not allocated to an outstanding Letter of Credit) of such Lender based on the Loan Amount
for each day at a rate per annum equal to the Unused Fee Rate, calculated on the basis of a year of
three hundred sixty (360) days for the actual number of days elapsed. The accrued Unused Fee shall
be due and payable quarterly in arrears on the first day of July, October, January and April of
each year commencing on January 1, 2007, and upon the Maturity Date (as stated, by acceleration or
otherwise) or earlier termination of the Loan.

     Section 6.11. Reporting and Miscellaneous Document Requirements. Furnish directly to
each Lender:

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     (1) Semi-Annual Financial Statements of Borrower. On a semi-annual basis, as
soon as available and in any event within ninety (90) days after the end of each applicable
semi-annual period, Financial Statements of Borrower, in reasonable detail (including
detailed balance sheet, income statement, cash flow statement and one-year projections) and
stating in comparative form the respective figures for the corresponding date and period in
the prior semi-annual period;

     (2) Annual Financial Statements of Borrower. On a annual basis, as soon as
available and in any event within ninety (90) days after the end of each applicable annual
period, Financial Statements of Borrower, in reasonable detail (including detailed balance
sheet, income statement, cash flow statement and one-year projections) and stating in
comparative form the respective figures for the corresponding date and period in the prior
annual period;

     (3) Quarterly and Annual Financial Statements of Acadia Realty Trust. As soon
as available and in any event within one hundred twenty (120) days after the end of each
calendar quarter and Fiscal Year, Financial Statements of Acadia Realty Trust, a Maryland
real estate investment trust (“Sponsor”), which is the parent of Guarantor, as of the end
of and for such calendar quarter and Fiscal Year, in reasonable detail (including detailed
balance sheet, income statement, cash flow statement, and contingent liability schedule)
and stating in comparative form the respective figures for the corresponding date and
period in the prior Fiscal Year, audited (with respect to the annual financial statements
only) by BDO Seidman or one of the so-called “Big Four” accounting firms or another firm of
certified public accountants reasonably acceptable to Administrative Agent , provided that,
notwithstanding the foregoing, so long as Sponsor timely files 10Q and 10K reports with the
Securities and Exchange Commission, Sponsor shall have complied with this clause (3);

     (4) Covenant Compliance Certificates. Within sixty (60) days after the end of
each fiscal quarter, Guarantor shall submit to Lender a Covenant Compliance Certificate
certified by a principal financial or accounting officer or general partner, as the case
may be, in the Form of EXHIBIT E-1 hereto certifying, on the basis of Guarantor’s unaudited
financial statements, that Guarantor has met the Liquidity Requirement for the applicable
period. As soon as available and in any event within one hundred twenty (120) days after
the end of each Fiscal Year, Guarantor shall submit to Lender a Covenant Compliance
Certificate certified by a principal financial or accounting officer or general partner, as
the case may be, in the Form of EXHIBIT E-2 hereto certifying, on the basis of Guarantor’s
audited Financial Statements as of the end of and for such Fiscal Year, that Guarantor has
met the Net Worth Requirement and the Liquidity Requirement;

     (5) Notice of Litigation. Promptly after the commencement and knowledge
thereof, notice of all actions, suits, and proceedings before any court or arbitrator or
any Governmental Authority, affecting (i) Borrower which, if

37

 

determined adversely to Borrower are likely to result in a Material Adverse Change or
(ii) all or any portion of the Mortgaged Property under any Mortgage;

     (6) Notices of Defaults and Events of Default. As soon as possible and in any
event within ten (10) days after Borrower becomes aware of the occurrence of a Default or
any Event of Default, a written notice setting forth the details of such Default or Event
of Default and the action which is proposed to be taken with respect thereto;

     (7) Material Adverse Change. As soon as is practicable and in any event
within five (5) days after knowledge of the occurrence of any event or circumstance which
is likely to result in or has resulted in a Material Adverse Change, written notice
thereof;

     (8) Offices. Thirty (30) days’ prior written notice of any change in the
chief executive office or principal place of business of Borrower;

     (9) Environmental and Other Notices. As soon as possible and in any event
within ten (10) days after receipt, copies of (i) all Environmental Notices received by
Borrower which are not received in the ordinary course of business and which relate to any
Property or a situation which is likely to result in a Material Adverse Change and (ii) all
reports of any official searches made by any Governmental Authority having jurisdiction
over any Property or the Improvements thereon, and of any claims of violations thereof and,
on an annual basis, delivered with Borrower’s annual Financial Statements, a report from
Borrower regarding the status of the environmental matters discussed in Section 6.12;

     (10) Insurance Coverage. Promptly, such information concerning Borrower’s
insurance coverage as Administrative Agent may reasonably request;

     (11) Bankruptcy of Tenants. Promptly after becoming aware of the same,
written notice of the bankruptcy, insolvency or cessation of operations of any tenant in
the Improvements on any Property to which 5% or more of the aggregate minimum rent from
such Improvements is attributable;

     (12) Leasing Reports and Property Information. (i) Upon request by
Administrative Agent, but no more often than quarterly, an updated rent roll, leasing
report, and operating and cash statements for each Property and (ii) (ii) as soon as
available and in any event within ninety (90) days after the end of each Fiscal Year,
tenant sales report for each Property, to the extent Borrower is entitled to receive same
pursuant to the terms of the respective leases; and

     (13) General Information. Promptly, such other information respecting the
condition or operations, financial or otherwise, of Borrower, Guarantor or any Properties
of Borrower as Administrative Agent may from time to time reasonably request.

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ARTICLE VII

ADMINISTRATIVE AGENT; RELATIONS AMONG LENDERS

     Section 7.01. Appointment, Powers and Immunities of Administrative Agent. Each
Lender hereby irrevocably appoints and authorizes Administrative Agent to act as its agent
hereunder and under any other Loan Document with such powers as are specifically delegated to
Administrative Agent by the terms of this Agreement and any other Loan Document, together with such
other powers as are reasonably incidental thereto. Administrative Agent shall have no duties or
responsibilities except those expressly set forth in this Agreement and any other Loan Document or
required by Law, and shall not by reason of this Agreement be a fiduciary or trustee for any Lender
except to the extent that Administrative Agent acts as an agent with respect to the receipt or
payment of funds, nor shall Administrative Agent have any fiduciary duty to Borrower nor shall any
Lender have any fiduciary duty to Borrower or any other Lender. No implied covenants,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or otherwise
exist against Administrative Agent. Neither Administrative Agent nor any of its directors,
officers, employees, agents, attorneys-in-fact or Affiliates shall be responsible to Lenders for
any recitals, statements, representations or warranties made by Borrower or any officer, partner or
official of Borrower or any other Person contained in this Agreement or any other Loan Document, or
in any certificate or other document or instrument referred to or provided for in, or received by
any of them under, this Agreement or any other Loan Document, or for the value, legality, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document or any other document or instrument referred to or provided for herein or therein, for the
perfection or priority of any lien securing the obligations hereunder or thereunder or for any
failure by Borrower or any Guarantor to perform any of its obligations hereunder or thereunder.
Administrative Agent may employ agents and attorneys-in-fact and shall not be responsible, except
as to money or securities received by it or its authorized agents, for the negligence or misconduct
of any such agents or attorneys-in-fact selected by it with reasonable care. Neither
Administrative Agent nor any of its directors, officers, employees, agents, attorneys-in-fact or
Affiliates shall be liable or responsible for any action taken or omitted to be taken by it or them
hereunder or under any other Loan Document or in connection herewith or therewith, except for its
or their own gross negligence or willful misconduct.

     Section 7.02. Reliance by Administrative Agent. Administrative Agent shall be
entitled to rely upon any certification, notice or other communication (including any thereof by
telephone, telex, telegram or cable) believed by it to be genuine and correct and to have been
signed or sent by or on behalf of the proper Person or Persons, and upon advice and statements of
legal counsel, independent accountants and other experts selected by Administrative Agent.
Administrative Agent may deem and treat each Lender as the holder of its Note and interest in the
Loan for all purposes hereof and shall not be required to deal with any Person who has acquired a
Participation in the Loan from a Lender. As to any matters not expressly provided for by this
Agreement or any other Loan Document, Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, in accordance with instructions signed by the Required
Lenders,

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and such instructions of the Required Lenders and any action taken or failure to act pursuant
thereto shall be binding on all of Lenders and any other holder of all or any portion of the Loan
or Participation therein.

     Section 7.03. Defaults. Administrative Agent shall not be deemed to have knowledge
of the occurrence of a Default or of an Event of Default unless Administrative Agent has actual
knowledge thereof or has received notice from a Lender or Borrower specifying such Default or Event
of Default and stating that such notice is a “Notice of Default.” In the event that Administrative
Agent has such actual knowledge or receives such a notice of the occurrence of a Default or Event
of Default, Administrative Agent shall give prompt notice thereof to Lenders. Administrative Agent
shall promptly send to each Lender a copy of any notice of a Default or Event of Default that
Administrative Agent sends to Borrower or Guarantor. Administrative Agent, following consultation
with Lenders, shall (subject to Section 7.07) take such action with respect to such Default or
Event of Default which is continuing, including with respect to the exercise of remedies or the
realization on, or operation or disposition of, any or all of the Mortgaged Property or any other
collateral for the Loan, as shall be directed by the Required Lenders; provided,
however, that, unless and until Administrative Agent shall have received such directions,
Administrative Agent may take such action, or refrain from taking such action, with respect to such
Default or Event of Default as it shall deem to be in the best interest of Lenders. In no event
shall Administrative Agent be required to take any such action which it determines would be
contrary to the Loan Documents or to Law. Each of Lenders acknowledges and agrees that no
individual Lender may separately enforce or exercise any of the provisions of any of the Loan
Documents (including, without limitation, the Notes) other than through Administrative Agent.

     Section 7.04. Rights of Administrative Agent as Lender. With respect to its Note and
interest in the Loan, Administrative Agent in its capacity as a Lender hereunder shall have the
same rights and powers hereunder as any other Lender and may exercise the same as though it were
not acting as Administrative Agent, and the terms “Lender” and “Lenders” shall include
Administrative Agent in its capacity as a Lender. Administrative Agent and its affiliates may
(without having to account therefor to any Lender) accept deposits from, lend money to (on a
secured or unsecured basis), and generally engage in any kind of banking, trust or other business
with, Borrower or Guarantor (and any affiliates of them) as if it were not acting as Administrative
Agent.

     Section 7.05. Sharing of Costs by Lenders; Indemnification of Administrative Agent.
Each Lender shall pay its ratable share, based on the respective outstanding principal balances
under its Note and the other Notes, of any expenses incurred (and not paid or reimbursed by
Borrower after demand for payment is made by Administrative Agent) by or on behalf of Lenders in
connection with any Default or Event of Default, including, without limitation, costs of
enforcement of the Loan Documents and any advances to pay taxes or insurance premiums, to complete
the Improvements or otherwise to preserve the lien of the Mortgage or to preserve or protect the
Mortgaged Property. In the event a Lender fails to pay its share of expenses as aforesaid, and all
or a portion of such unpaid amount is paid by Administrative Agent and/or one or more of the other
Lenders, then the defaulting Lender shall reimburse Administrative Agent and/or

40

 

the other Lender(s) for the portion of such unpaid amount paid by it or them, as the case may
be, together with interest thereon at the Prime Based Rate from the date of payment by
Administrative Agent and/or the other Lender(s). In addition, each Lender agrees to reimburse and
indemnify Administrative Agent (to the extent it is not paid by on or behalf of Borrower, after
demand for payment is made by Administrative Agent, under Section 8.13 or under the applicable
provisions of any other Loan Document, but without limiting the obligation of Borrower under said
Section 8.13 or such provisions), for such Lender’s ratable share, based upon the respective
outstanding principal balances under its Note and the other Notes, of any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind and nature whatsoever which may be imposed on, incurred by or asserted
against Administrative Agent in any way relating to or arising out of this Agreement, any other
Loan Document or any other documents contemplated by or referred to herein or the transactions
contemplated hereby or thereby (including, without limitation, the costs and expenses which
Borrower is obligated to pay under Section 8.13 or under the applicable provisions of any other
Loan Document) or the enforcement of any of the terms hereof or thereof or of any such other
documents or instruments; provided, however, that no Lender shall be liable for (i)
any of the foregoing to the extent they arise from the gross negligence or willful misconduct of
the party to be indemnified or (ii) any loss of principal or interest with respect to
Administrative Agent’s Note or interest in the Loan.

     Section 7.06. Non-Reliance on Administrative Agent and Other Lenders. Each Lender
acknowledges that it has, independently and without reliance on Administrative Agent or any other
Lender, and based on such documents and information as it has deemed appropriate, made its own
analysis of the collateral for the Loan and of the credit of Borrower and Guarantor, and its own
decision to enter into this Agreement, and that it will, independently and without reliance upon
Administrative Agent or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own analysis and decisions in taking or not
taking action under this Agreement or any other Loan Document. Administrative Agent shall not be
required to keep itself informed as to the performance or observance by Borrower of this Agreement
or any other Loan Document or any other document referred to or provided for herein or therein or
to inspect the properties (including, without limitation, the Properties) or books of Borrower.
Except for notices, reports and other documents and information expressly required to be furnished
to Lenders by Administrative Agent hereunder, Administrative Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information concerning the affairs,
financial condition or business of Borrower or Guarantor (or any Affiliate of them) which may come
into the possession of Administrative Agent or any of its Affiliates. Administrative Agent shall
not be required to file this Agreement, any other Loan Document or any document or instrument
referred to herein or therein, for record or give notice of this Agreement, any other Loan Document
or any document or instrument referred to herein or therein, to anyone.

     Section 7.07. Failure of Administrative Agent to Act. Except for action expressly
required of Administrative Agent hereunder, Administrative Agent shall in all cases be fully
justified in failing or refusing to act hereunder unless it shall have received further assurances
(which may include cash collateral) of the indemnification obligations

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of Lenders under Section 7.05 in respect of any and all liability and expense which may be
incurred by it by reason of taking or continuing to take any such action. If any indemnity
furnished to Administrative Agent for any purpose shall, in the opinion of Administrative Agent, be
insufficient or become impaired, Administrative Agent may call for additional indemnity and cease,
or not commence, the action indemnified against until such additional indemnity is furnished.

     Section 7.08. Resignation or Removal of Administrative Agent. Administrative Agent
may resign on at least thirty (30) days’ written notice to Lenders and Borrower or upon the
occurrence of an Event of Default. Administrative Agent may be removed at any time with cause by
the Required Lenders, provided that Borrower and the other Lenders shall be promptly notified
thereof. Upon such resignation or removal of Administrative Agent, the Required Lenders shall have
the right to appoint a successor Administrative Agent, which successor Administrative Agent shall
(provided there exists no Event of Default) be subject to Borrower’s approval, such approval not to
be unreasonably withheld or delayed. If no successor Administrative Agent shall have been so
appointed by the Required Lenders, and shall have accepted such appointment, within twenty (20)
days after the resignation or the Required Lenders’ removal of the retiring Administrative Agent,
then the retiring Administrative Agent may, on behalf of Lenders, appoint a successor
Administrative Agent, which shall be one of Lenders, within ten (10) days. The Required Lenders or
the retiring Administrative Agent, as the case may be, shall upon the appointment of a successor
Administrative Agent promptly so notify Borrower and the other Lenders. Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor Administrative Agent, such successor
Administrative Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder. After any retiring Administrative
Agent’s resignation or removal hereunder as Administrative Agent, the provisions of this Article
VII shall continue in effect for its benefit in respect of any actions taken or omitted to be taken
by it while it was acting as Administrative Agent. The annual Administration Fee paid to the
retiring Administrative Agent shall be deemed earned by such retiring Administrative Agent only to
the extent of the actual days elapsed in the year to which such Administration Fee relates, and
upon appointment of a successor Administrative Agent, the retiring Administrative Agent shall pay
to such successor a pro-rata portion of such yearly Administration Fee based upon the number of
days remaining in such year.

     Section 7.09. Amendments Concerning Agency Function. Notwithstanding anything to the
contrary contained in this Agreement, Administrative Agent shall not be bound by any waiver,
amendment, supplement or modification of this Agreement or any other Loan Document which affects
its duties, rights, and/or function hereunder or thereunder unless it shall have given its prior
written consent thereto.

     Section 7.10. Liability of Administrative Agent. Administrative Agent shall not have
any liabilities or responsibilities to Borrower on account of the failure of any Lender to perform
its obligations hereunder or to any Lender on account of the failure of Borrower to perform its
obligations hereunder or under any other Loan Document.

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     Section 7.11. Transfer of Agency Function. Without the consent of Borrower or any
Lender, Administrative Agent may at any time or from time to time transfer its functions as
Administrative Agent hereunder to any of its offices wherever located in the United States,
provided that Administrative Agent shall promptly notify Borrower and Lenders thereof.

     Section 7.12. Non-Receipt of Funds by Administrative Agent; Adjustments.

     (a) Unless Administrative Agent shall have received notice from a Lender or Borrower (either
one as appropriate being the “Payor”) prior to the date on which such Lender is to make payment
hereunder to Administrative Agent of Loan proceeds or Borrower is to make payment to Administrative
Agent, as the case may be (either such payment being a “Required Payment”), which notice shall be
effective upon receipt, that the Payor will not make the Required Payment in full to Administrative
Agent, Administrative Agent may assume that the Required Payment has been made in full to
Administrative Agent on such date, and Administrative Agent in its sole discretion may, but shall
not be obligated to, in reliance upon such assumption, make the amount thereof available to the
intended recipient on such date. If and to the extent the Payor shall not have in fact so made the
Required Payment in full to Administrative Agent, the recipient of such payment shall repay to
Administrative Agent forthwith on demand such amount made available to it together with interest
thereon, for each day from the date such amount was so made available by Administrative Agent until
the date Administrative Agent recovers such amount, at the Federal Funds Rate.

     (b) If, after Administrative Agent has paid each Lender’s share of any payment received or
applied by Administrative Agent in respect of the Loan, that payment is rescinded or must otherwise
be returned or paid over by Administrative Agent, whether pursuant to any bankruptcy or insolvency
Law, sharing of payments clause of any loan agreement or otherwise, such Lender shall, at
Administrative Agent’s request, promptly return its share of such payment or application to
Administrative Agent, together with such Lender’s proportionate share of any interest or other
amount required to be paid by Administrative Agent with respect to such payment or application. In
addition, if a court of competent jurisdiction shall adjudge that any amount received and
distributed by Administrative Agent is to be repaid, each Person to whom any such distribution
shall have been made shall either repay to Administrative Agent its share of the amount so adjudged
to be repaid or shall pay over the same in such manner and to such Persons as shall be determined
by such court.

     Section 7.13. Withholding Taxes. Each Lender represents that it is entitled to
receive any payments to be made to it hereunder without the withholding of any tax and will furnish
to Administrative Agent such forms, certifications, statements and other documents as
Administrative Agent may reasonably request from time to time to evidence such Lender’s exemption
from the withholding of any tax imposed by any jurisdiction or to enable Administrative Agent to
comply with any applicable Laws relating thereto. Without limiting the effect of the foregoing, if
any Lender is not created or organized under the Laws of the United States or any state thereof,
such Lender will furnish to Administrative Agent Form W-8ECI or Form W-8BEN of the U.S. Internal

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Revenue Service, or such other forms, certifications, statements or documents, duly executed
and completed by such Lender, as evidence of such Lender’s complete exemption from the withholding
of United States tax with respect thereto. Administrative Agent shall not be obligated to make any
payments hereunder to such Lender in respect of the Loan until such Lender shall have furnished to
Administrative Agent the requested form, certification, statement or document.

     Section 7.14. Sharing of Payments among Lenders. If a Lender shall obtain payment of
any principal of its Note or of interest thereon through the exercise of any right of setoff,
banker’s lien or counterclaim, or by any other means (including direct payment), and such payment
results in such Lender receiving a greater payment than it would have been entitled to had such
payment been paid directly to Administrative Agent for disbursement to Lenders, then such Lender
shall promptly purchase for cash from the other Lenders Participations in the Loan in such amounts,
and make such other adjustments from time to time as shall be equitable, to the end that all
Lenders shall share ratably the benefit of such payment. To such end Lenders shall make
appropriate adjustments among themselves (by the resale of Participations sold or otherwise) if
such payment is rescinded or must otherwise be restored.

     Section 7.15. Possession of Documents. Each Lender shall maintain possession of its
own Note. Administrative Agent shall hold all other Loan Documents and related documents in its
possession and maintain separate records and accounts with respect to the Loan, reflecting the
interests of Lenders in the Loan, and shall permit Lenders and their representatives access at all
reasonable times to inspect such Loan Documents, related documents, records and accounts.

     Section 7.16. Effect of a Lender’s Failure to Make an Advance. In the event any
Lender fails for any reason to fund the portion it is required to fund of any advance of Loan
proceeds by 3:00 p.m. on the second Business Day after the date established by Administrative Agent
as the date such advance is to be made, such Lender shall be a “Delinquent Lender” for all purposes
hereunder until and unless such delinquency is cured in accordance with the terms of and by the
time permitted under Section 7.17, and the following provisions shall apply:

     (a) Administrative Agent shall notify (such notice being referred to as the
“Delinquency Notice”) each Lender and Borrower of any Lender’s failure to fund. Each
Non-Delinquent Lender shall have the right, but in no event or under any circumstance the
obligation, to fund such Delinquent Lender’s portion of such advance, provided that, within
twenty (20) days of the date of the Delinquency Notice (the “Election Period”), such
Non-Delinquent Lender or Lenders (each such Lender, an “Electing Lender”) irrevocably
commit(s) by notice in writing (an “Election Notice”) to Administrative Agent, the other
Lenders and Borrower to fund the Delinquent Lender’s portion of the advance that is the
subject of the delinquency and to assume the Delinquent Lender’s obligations with respect
to the advancing of the entire undisbursed portion of the Delinquent Lender’s Individual
Loan Commitment (such entire undisbursed portion of the Delinquent Lender’s Individual Loan
Commitment, including its portion of the advance that is the

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subject of the delinquency, the “Delinquency Amount”). If Administrative Agent
receives more than one Election Notice within the Election Period, then the Electing
Lenders sending such notices shall be deemed to have committed to fund ratable shares of
the Delinquency Amount based upon the amounts of their respective Individual Loan
Commitments. If there are one or more Electing Lenders and the Delinquent Lender fails to
cure during the Election Period as provided in Section 7.17, then upon the expiration of
the Election Period, each Electing Lender’s Individual Loan Commitment shall be
automatically increased by the Delinquency Amount (if there is only one Electing Lender) or
such Electing Lender’s ratable share, determined as aforesaid, of the Delinquency Amount
(if there are two or more Electing Lenders), and the Delinquent Lender’s Individual Loan
Commitment shall automatically be reduced by the Delinquency Amount. Administrative Agent
shall thereupon notify Borrower and each Lender of (i) the adjusted amounts of the
Individual Loan Commitments and (ii) if the advance that was the subject of the delinquency
was not made pursuant to Section 7.12 or was refunded by Borrower pursuant to paragraph (e)
of this Section, the rescheduled date of such advance (which shall be no sooner than three
(3) Business Days after such notice). In the event Administrative Agent shall have funded,
pursuant to Section 7.12, the entire advance that was the subject of the delinquency
(including the Delinquent Lender’s portion), and Borrower shall not have refunded such
advance pursuant to paragraph (e) of this Section, the Electing Lender(s) shall remit to
Administrative Agent the Delinquent Lender’s portion of the advance, or their ratable shares thereof, as the case may be, within three (3) Business Days of the notice provided
for in the immediately preceding sentence, and Administrative Agent shall reimburse itself
from such funds for making the Delinquent Lender’s portion of the advance. Notwithstanding
anything to the contrary contained herein, if Administrative Agent advances its own funds
in respect of a Delinquent Lender’s portion of an advance, Administrative Agent shall be
entitled to the interest on the portion of the Principal Amount represented thereby, from
the date Administrative Agent makes such advance until the date it is reimbursed therefor.

     (b) In connection with the adjustment of the amounts of the Individual Loan
Commitments of the Delinquent Lender and Electing Lender(s) upon the expiration of the
Election Period as aforesaid, Borrower covenants that it shall, promptly following the
request of the Electing Lender(s), execute and deliver to each Electing Lender and the
Delinquent Lender substitute notes substantially in the form of EXHIBIT D and stating:
“This Note is a substitute note as contemplated by Section 7.16 of the Loan Agreement; it
replaces and is in lieu of that certain note made by Maker dated [date of Note] to the
order of [Lender] in the principal sum of [Lender’s original Individual Loan Commitment].”
Such substitute notes shall be in amounts equal to such Lenders’ respective Individual Loan
Commitments, as adjusted. All such substitute notes shall constitute “Notes” and the
obligations evidenced by such substitute notes shall be secured by the Mortgage. In
connection with Borrower’s execution of substitute notes as aforesaid, Borrower shall
deliver to Administrative Agent evidence, satisfactory to Administrative Agent, of all
requisite partnership, corporate or other action to

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authorize Borrower’s execution and delivery of the substitute notes and any related
documents. The execution and delivery of substitute notes as required above shall be a
condition precedent to any further advances of Loan proceeds. Upon receipt of its
substitute note, the Electing Lender and the Delinquent Lender will return to Borrower
their notes that were replaced, provided that the delivery of a substitute note to
the Delinquent Lender pursuant to this Section 7.16 shall operate to void and replace the
note previously held by the Delinquent Lender regardless of whether the Delinquent Lender
returns same as required hereby. Borrower, Administrative Agent and Lenders shall execute
such modifications to the Loan Documents as shall, in the reasonable judgment of
Administrative Agent, be necessary or desirable in connection with the adjustment of the
amounts of Individual Loan Commitments in accordance with the foregoing provisions of this
Section.

     (c) In the event that no Lender elects to commit to fund the Delinquency Amount within
the Election Period as provided in paragraph (a) of this Section, Administrative Agent
shall, upon the expiration of the Election Period, so notify Borrower and each Lender and
the provisions of Section 2.15 shall apply.

     (d) Subject to a Delinquent Lender’s right to cure as provided in Section 7.17, but
notwithstanding anything else to the contrary contained in this Agreement, the Delinquent
Lender’s interest in, and any and all amounts due to a Delinquent Lender under, the Loan
Documents (including, without limitation, all principal, interest, fees and expenses) shall
be subordinate in lien priority and to the repayment of all amounts (including, without
limitation, interest) then or thereafter due or to become due to the Non-Delinquent Lenders
under the Loan Documents (including future advances), and the Delinquent Lender thereafter
shall have no right to participate in any discussions among and/or decisions by Lenders
hereunder and/or under the other Loan Documents. Further, any Delinquent Lender shall be
bound by any amendment to, or waiver of, any provision of, or any action taken or omitted
to be taken by Administrative Agent and/or the Non-Delinquent Lenders under, any Loan
Document which is made subsequent to the Delinquent Lender’s becoming a Delinquent Lender.

     (e) If, pursuant to the operation of Section 7.12, an advance of Loan proceeds is made
without Administrative Agent’s receipt of a Delinquent Lender’s portion thereof, Borrower
shall, upon demand of Administrative Agent, refund the entire such advance to
Administrative Agent. Borrower’s failure to do so within ten (10) days of such demand
shall, notwithstanding anything to the contrary contained herein or in the Mortgage,
constitute an Event of Default under the Mortgage. Upon its receipt of such funds from
Borrower, Administrative Agent shall promptly remit to each Non-Delinquent Lender its
appropriate share thereof.

     Section 7.17. Cure by Delinquent Lender. A Delinquent Lender may cure a delinquency
arising out of its failure to fund its required portion of any advance if, within the Election
Period, it remits to Administrative Agent its required portion of such

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advance (together with interest thereon at the Default Rate from the date such advance was to
have been made if such advance was made by Administrative Agent and not refunded by Borrower
pursuant to paragraph (e) of Section 7.16), in which event Administrative Agent shall so notify
Borrower and the Non-Delinquent Lenders (i) of its receipt of such funds and (ii)(A) if the advance
that was the subject of the delinquency shall not have been made (or shall have been refunded by
Borrower pursuant to paragraph (e) of Section 7.16), of the rescheduled date of the advance (which
shall be no sooner then three (3) Business Days after such notice) or (B) if Administrative Agent
shall have funded the entire advance that was the subject of the delinquency (including the
Delinquent Lender’s portion) and Borrower shall not have refunded such advance pursuant to
paragraph (e) of Section 7.16, of its intention to reimburse itself from funds received from the
Delinquent Lender (which reimbursement is hereby authorized) for funding the Delinquent Lender’s
required portion of the advance. In the event any Delinquent Lender cures a delinquency prior to
the expiration of the Election Period (or thereafter with the consent of all of the Non-Delinquent
Lenders), such Delinquent Lender nonetheless shall be bound by any amendment to or waiver of any
provision of, or any action taken or omitted to be taken by Administrative Agent and/or the
Non-Delinquent Lenders under, any Loan Document which is made subsequent to that Lender’s becoming
a Delinquent Lender and prior to its curing the delinquency as provided in this Section, provided
that such amendment or waiver of action was taken in accordance with the provisions of this
Agreement. A Delinquent Lender shall have absolutely no right to cure any delinquency after the
expiration of the Election Period unless all Non-Delinquent Lenders in their sole discretion elect
to permit such cure.

     Section 7.18. Delinquent Lender Not Excused. Nothing contained in Sections 7.16 or
7.17 shall release or in any way limit a Delinquent Lender’s obligations as a Lender hereunder
and/or under any other of the Loan Documents. Further, a Delinquent Lender shall indemnify and
hold harmless Administrative Agent, each of the Non-Delinquent Lenders and Borrower from any claim,
loss, or costs incurred by any of them as a result of a Delinquent Lender’s failure to comply with
the requirements of this Agreement, including, without limitation, any and all additional losses,
damages, costs and expenses (including, without limitation, attorneys’ fees) incurred by
Administrative Agent and any Lender as a result of and/or in connection with (i) a Non-Delinquent
Lender’s acting as an Electing Lender, (ii) any enforcement action brought by Administrative Agent
against a Delinquent Lender, and (iii) any action brought against Administrative Agent and/or
Lenders. The indemnification provided above shall survive any termination of this Agreement.

     Section 7.19. Notices Regarding Delinquent Lender. Notices by Administrative Agent
or Lenders pursuant to Sections 7.16 or 7.17 may be by telephone (to be promptly confirmed in
writing).

     Section 7.20. Replacement Lender. In the event any Lender becomes a Delinquent
Lender and none of the other Lenders elects to be an Electing Lender pursuant to Section 7.16,
Borrower shall have the right, provided there exists no Default or Event of Default, to cause
another financial institution, reasonably acceptable to (x) the Required Lenders if such
institution is not an Eligible Assignee or (y) Administrative

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Agent if such institution is an Eligible Assignee, to assume the Delinquent Lender’s
obligations with respect to the Delinquency Amount on the then-existing terms and conditions of the
Loan Documents (such replacement institution, a “Replacement Lender”). Such assumption shall be
pursuant to a written instrument reasonably satisfactory to Administrative Agent. Upon such
assumption, the Replacement Lender shall become a “Lender” for all purposes hereunder, with an
Individual Loan Commitment in an amount equal to the Delinquency Amount, and the Delinquent
Lender’s Individual Loan Commitment shall automatically be reduced by the Delinquency Amount. In
connection with the foregoing, Borrower shall execute and deliver to the Replacement Lender and the
Delinquent Lender substitute notes substantially in the form of EXHIBIT D and stating: “This Note
is a substitute note as contemplated by Section 7.20 of the Loan Agreement; it replaces and is in
lieu of that certain note made by Maker dated [date of Note] to the order of [Delinquent Lender] in
the principal sum of [Delinquent Lender’s original Individual Loan Commitment].” Such substitute
notes shall be in amounts equal to, in the case of the Replacement Lender’s note, the Delinquency
Amount and, in the case of the Delinquent Lender’s note, its Individual Loan Commitment, as reduced
as aforesaid. Such substitute notes shall constitute “Notes” and the obligations evidenced by such
substitute notes shall be secured by the Mortgage. In connection with Borrower’s execution of
substitute notes as aforesaid, Borrower shall deliver to Administrative Agent evidence,
satisfactory to Administrative Agent, of all requisite partnership/corporate action to authorize
Borrower’s execution and delivery of the substitute notes and any related documents. Upon delivery
of the foregoing substitute note(s), each Delinquent Lender shall return to Borrower its note which
was replaced, provided that the delivery of a substitute note to the Delinquent Lender
pursuant to this Section 7.20 shall operate to void and replace the note previously held by the
Delinquent Lender regardless of whether Delinquent Lender returns same as required hereby.

     Borrower, Administrative Agent and Lenders shall execute such modifications to the Loan
Documents as shall, in the reasonable judgment of Administrative Agent, be necessary or desirable
in connection with the substitution of Lenders in accordance with the foregoing provisions of this
Section.

     Lenders shall reasonably cooperate with Borrower’s attempts to obtain a Replacement Lender,
but they shall not be obligated to modify the Loan Documents in connection therewith, other than
modifications pursuant to the immediately preceding paragraph or modifications which are favorable
to Lenders.

ARTICLE VIII

GENERAL CONDITIONS AND PROVISIONS

     Section 8.01. Disbursement Not Waiver. The disbursement by Lenders of the Loan made
prior to or without the fulfillment by Borrower of all of the conditions precedent thereto, whether
or not known to Lenders, shall not constitute a waiver by Lenders of the requirement that all
conditions, including the non-performed conditions, shall be satisfied.

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     Section 8.02. No Third-Party Beneficiaries. This Agreement is solely for the benefit
of Administrative Agent, Lenders and Borrower. All conditions of the obligations of Lenders
hereunder are imposed solely and exclusively for the benefit of Lenders and may be freely waived or
modified in whole or in part by Lenders at any time if in their sole discretion it deems it
advisable to do so, and no person other than Borrower (provided, however, that all
conditions have been satisfied) shall have standing to require Lenders to disburse the Loan or to
be a beneficiary of this Agreement.

     Section 8.03. Documentation Etc. Satisfactory. All documentation and proceedings
deemed by Administrative Agent or Administrative Agent’s Counsel to be necessary or required in
connection herewith and the documents relating hereto shall be subject to the prior approval of,
and satisfactory to, both of them as to form and substance. In addition, the Persons responsible
for the execution and delivery of, and signatories to, all of such documentation, shall be
acceptable to, and subject to the approval of, Administrative Agent and Administrative Agent’s
Counsel. Administrative Agent or Administrative Agent’s Counsel shall receive copies, certified if
requested by either of them, of all documents which they may require in connection with the
transactions contemplated hereby.

     Section 8.04. Lender’s Determination Conclusive. Administrative Agent shall, at all
times, be free to independently establish to its satisfaction and in its absolute discretion the
existence or nonexistence of any fact or facts the existence or nonexistence of which is a
condition hereof.

     Section 8.05. Notices. Except as expressly provided otherwise, all notices, demands,
consents, approvals and statements required or permitted hereunder shall be in writing and shall be
deemed to have been sufficiently given or served for all purposes when presented personally, three
(3) days after mailing by registered or certified mail, postage prepaid, or one (1) day after
delivery to a nationally recognized overnight courier service providing evidence of the date of
delivery, addressed to a party at its address on the signature page hereof or of the applicable
Assignment and Assumption Agreement, or at such other address of which a party shall have notified
the party giving such notice in writing in accordance with the foregoing requirements. Notices
validly given to any Borrower shall be deemed validly given to all Borrowers and notices from any
Borrower shall be deemed given by all Borrowers. Notwithstanding anything to the contrary
contained herein, in the event of separate notices received from less than all Borrowers which are
inconsistent, Administrative Agent may, in its discretion, (i) elect to treat any or all
inconsistent provisions of such notices as null and void and/or (ii) determine which of such
inconsistent provisions shall be considered valid hereunder.

     Section 8.06. Amendments and Waivers. No amendment or material waiver of any
provision of this Agreement or any other Loan Document, nor consent to any material departure by
Borrower or any Guarantor therefrom, shall in any event be effective unless the same shall be in
writing and signed by the party against whom such amendment, waiver or consent is sought to be
enforced (it being understood, however, that the signatures of the Required Lenders and, solely for
purposes of its acknowledgement thereof, Administrative Agent, shall be sufficient to bind Lenders
to

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any such amendment, waiver or consent), and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing and signed by all
Lenders, do any of the following: (i) reduce the principal of, or interest on, the Notes or any
fees due hereunder or any other amount due hereunder or under any other Loan Document; (ii)
postpone any date fixed for any payment of principal of, or interest on, the Notes or any fees due
hereunder or under any other Loan Document; (iii) change the definition of Required Lenders; (iv)
release any material portion of the Mortgaged Property or other collateral for the Loan other than
in accordance with the Loan Documents; (v) amend this Section or any other provision requiring the
consent of all Lenders; (vi) release, in whole or in part, any Guarantor other than in accordance
with the Loan Documents; or (vii) increase the Loan Amount. Without limiting the foregoing,
acceptance by Administrative Agent or Lenders of any sum required to be paid pursuant hereto or any
other Loan Document, after its due date, or in an amount less than the sum then due, shall not
constitute a waiver by Administrative Agent or Lenders of their right to require prompt payment
when due of all other such sums or to declare a default or to exercise such other rights provided
herein or in the other Loan Documents for such late or reduced payment.

     All communications from Administrative Agent to Lenders requesting Lenders’ determination,
consent, approval or disapproval (i) shall be given in the form of a written notice to each Lender,
(ii) shall be accompanied by or include a description or copy of the matter or thing as to which
such determination, approval, consent or disapproval is requested and (iii) shall include
Administrative Agent’s recommended course of action or determination in respect thereof. Each
Lender shall reply promptly, but in any event within ten (10) Business Days (or five (5) Business
Days with respect to any decision to accelerate or stop acceleration of the Loan) after receipt of
the request therefor by Administrative Agent (the “Lender Reply Period”). Unless a Lender shall
give written notice to Administrative Agent that it objects to the recommendation or determination
of Administrative Agent (together with a written explanation of the reasons behind such objection)
within the Lender Reply Period, such Lender shall be deemed to have approved or consented to such
recommendation or determination.

     Section 8.07. Assignment; Participation. Any Non-Delinquent Lender may at any time
grant to one or more banks or other institutions not affiliated with Borrower or Guarantor (each a
“Participant”) participating interests in its Pro Rata Share of the Loan (the “Participations”).
In the event of any such grant by a Lender of a Participation to a Participant, such Lender shall
remain responsible for the performance of its obligations hereunder, and Borrower and
Administrative Agent shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations hereunder. Any agreement pursuant to which any Lender may
grant a Participation shall provide that such Lender shall retain the sole right and responsibility
to enforce the obligations of Borrower hereunder and under any other Loan Document, including,
without limitation, the right to approve any amendment, modification or waiver of any provision of
this Agreement or any other Loan Document; provided that such participation agreement may
provide that such Lender will not agree to any modification,

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amendment or waiver described in clauses (i) through (vii) of Section 8.06 without the consent
of the Participant.

     Upon request by Borrower, each Lender agrees to provide Borrower with notice of all
Participations sold by such Lender. Borrower agrees to provide all assistance reasonably requested
by a Lender to enable such Lender to sell Participations as aforesaid, or make assignments of its
interest in the Loan as hereinafter provided in this Section.

     A Lender may at any time assign to any Eligible Assignee not affiliated with Borrower or
Guarantor with the consent of Administrative Agent, which consents shall not be unreasonably
withheld or delayed (such assignee, a “Consented Assignee”), or to one or more banks or other
institutions which are majority owned subsidiaries of a Lender or of the parent of a Lender (each
Consented Assignee or subsidiary bank or institution, an “Assignee”) all or a proportionate part of
all of its rights and obligations under this Agreement and its Note, and such Assignee shall assume
rights and obligations, pursuant to an Assignment and Assumption Agreement executed by such
Assignee and the assigning Lender, provided that, after giving effect to such assignment, in each
case, the Assignee’s portion of the Loan and, in the case of a partial assignment of a Lender’s
interest, the assigning Lender’s portion of the Loan will each be equal to or greater than
$5,000,000. Upon (i) execution and delivery of such instrument, (ii) payment by such Assignee to
the assigning Lender of an amount equal to the purchase price agreed between such Lender and such
Assignee and (iii) payment by such Assignee to Administrative Agent of a fee, for Administrative
Agent’s own account, in the amount of $3,500, such Assignee shall be a party to this Agreement and
shall have all the rights and obligations of a Lender as set forth in such Assignment and
Assumption Agreement, and the assigning Lender shall be released from its obligations hereunder to
a corresponding extent, and no further consent or action by any party shall be required. Upon the
consummation of any assignment pursuant to this paragraph, substitute notes, in the form of EXHIBIT
D, shall be issued to the assigning Lender (in the case of a partial assignment) and Assignee by
Borrower, in exchange for the return of the assigning Lender’s original Note. All such substitute
notes shall constitute “Notes” and the obligations evidenced by such substitute notes shall
constitute obligations secured by the Mortgage. In connection with Borrower’s execution of
substitute notes as aforesaid, Borrower shall deliver to Administrative Agent such evidence of the
due authorization, execution and delivery of the substitute notes and any related documents as
Administrative Agent may reasonably request. If the Assignee is not incorporated under the Laws of
the United States or a state thereof, it shall, prior to the first date on which interest or fees
are payable hereunder for its account, deliver to Borrower and Administrative Agent certification
as to exemption from deduction or withholding of any United States federal income taxes in
accordance with Section 7.13.

     Borrower, Administrative Agent and Lenders shall execute such modifications to the Loan
Documents as shall, in the reasonable judgment of Administrative Agent, be necessary or desirable
in connection with assignments in accordance with the foregoing provisions of this Section.

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     Any Lender may at any time assign all or any portion of its rights under this Agreement and
its Note to a Federal Reserve Bank. No such assignment shall release the transferor Lender from
its obligations hereunder.

     Borrower recognizes that in connection with a Lender’s selling of Participations or making of
assignments, any or all documentation, financial statements, appraisals and other data, or copies
thereof, relevant to Borrower, Guarantor or the Loan may be exhibited to and retained by any such
Participant or Assignee or prospective Participant or Assignee.

     Section 8.08. Setoff. In addition to (and without limitation of) any right of
setoff, bankers’ lien or counterclaim Administrative Agent or any Lender may otherwise have,
Administrative Agent and each Lender shall be entitled, but only with the prior consent of
Administrative Agent, to offset balances (general or special, time or demand, provisional or final)
held by it for the account of Borrower at any of Administrative Agent’s or such Lender’s offices
against any amount payable by Borrower to Administrative Agent or such Lender hereunder or under
any other Loan Document which is not paid when due (regardless of whether such balances are then
due to Borrower), in which case it shall promptly notify Borrower and (in the case of a Lender)
Administrative Agent thereof; provided, however, that Administrative Agent’s or
such Lender’s failure to give such notice shall not affect the validity thereof. Payments by
Borrower hereunder or under the other Loan Documents shall be made without setoff or counterclaim.

     Section 8.09. Successors and Assigns. Except as herein provided, this Agreement
shall be binding upon and inure to the benefit of Borrower, Administrative Agent and Lenders and
their respective heirs, personal representatives, successors and assigns. Notwithstanding the
foregoing, Borrower, without the prior written consent of Lender in each instance, may not assign,
transfer or set over to another, in whole or in part, all or any part of its benefits, rights,
duties and obligations hereunder, including, but not limited to, performance of and compliance with
conditions hereof and the right to receive the proceeds of the Loan.

     Section 8.10. Severability. The provisions hereof are intended to be severable. Any
provisions hereof, or the application thereof to any Person or circumstance, which, for any reason,
in whole or in part, is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof (or the remaining portions of such provision) or the
application thereof to any other Person or circumstance, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
(or portion thereof) or the application thereof to any Person or circumstance in any other
jurisdiction.

     Section 8.11. Non-Waiver; Remedies Cumulative. No failure or delay on Lender’s part
in exercising any right, remedy, power or privilege (hereinafter in this Section, each a “Remedy”)
hereunder or under any of the other Loan Documents shall operate as a waiver of any such Remedy or
shall be deemed to constitute Administrative

52

 

Agent’s or any Lender’s acquiescence in any default by Borrower or Guarantor under any of said
documents. A waiver by Administrative Agent or any Lender of any Remedy hereunder or under any of
the other Loan Documents on any one occasion shall not be construed as a bar to any other or future
exercise thereof or of any other Remedy. The Remedies provided in said documents are cumulative,
may be exercised singly or concurrently and are not exclusive of any Remedies provided therein or
by Law.

     Section 8.12. Certain Waivers. Borrower hereby irrevocably and unconditionally
waives (i) promptness and diligence, (ii) notice of any actions taken by Administrative Agent or
any Lender hereunder or under any other Loan Document or any other agreement or instrument relating
hereto or thereto except to the extent otherwise provided herein, (iii) all other notices, demands
and protests, and all other formalities of every kind in connection with the enforcement of
Borrower’s obligations hereunder and under the other Loan Documents, the omission of or delay in
which, but for the provisions of this Section, might constitute grounds for relieving Borrower of
any of its obligations hereunder or under the other Loan Documents, (iv) any requirement that
Administrative Agent or any Lender protect, secure, perfect or insure any lien on any collateral
for the Loan or exhaust any right or take any action against Borrower, Guarantor or any other
Person or against any collateral for the Loan, (v) any right or claim of right to cause a
marshalling of Borrower’s assets and (vi) all rights of subrogation or contribution, whether
arising by contract or operation of law or otherwise by reason of payment by Borrower pursuant
hereto or to any other Loan Document. BORROWER FURTHER HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES, IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING BROUGHT BY OR ON BEHALF OF ADMINISTRATIVE
AGENT OR LENDERS WITH RESPECT TO THIS AGREEMENT, THE NOTES OR OTHERWISE IN RESPECT OF THE LOAN, ANY
AND EVERY RIGHT BORROWER MAY HAVE TO (W) INJUNCTIVE RELIEF, (X) A TRIAL BY JURY, (Y) INTERPOSE ANY
COUNTERCLAIM THEREIN, OTHER THAN A COMPULSORY COUNTERCLAIM, AND (Z) HAVE THE SAME CONSOLIDATED WITH
ANY OTHER OR SEPARATE SUIT, ACTION OR PROCEEDING. NOTHING CONTAINED IN THE IMMEDIATELY PRECEDING
SENTENCE SHALL PREVENT OR PROHIBIT BORROWER FROM INSTITUTING OR MAINTAINING A SEPARATE ACTION
AGAINST ADMINISTRATIVE AGENT OR LENDERS WITH RESPECT TO ANY ASSERTED CLAIM.

     Section 8.13. Expenses; Indemnification. The Loan shall be made without cost to
Lender. Borrower covenants and agrees to pay all costs, expenses and charges (including, without
limitation, all fees and charges of engineers, appraisers, the Engineering Consultant and
Administrative Agent’s Counsel) incurred by Administrative Agent or any Lender in connection with
(i) the preparation for and consummation of the transactions contemplated hereby or for the
performance hereof and of the other Loan Documents, and for any services which may be required in
addition to those normally and reasonably contemplated hereby and (ii) the enforcement hereof or of
any or all of the other Loan Documents; provided, however, that Borrower shall not
be responsible for (1) the fees and expenses of legal counsel for Lenders other than BofA incurred
in connection with said counsel’s review of this Agreement and the other Loan Documents

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prior to execution and (2) costs, expenses and charges incurred by Administrative Agent and
Lenders in connection with the administration of the Loan (other than the fees payable pursuant to
Section 6.03). If Borrower fails to pay promptly any costs, charges or expense required to be paid
by it as aforesaid, and Administrative Agent or any Lender pays such costs, charges or expenses,
Borrower shall reimburse Administrative Agent or such Lender, as appropriate, on demand for the
amounts so paid, together with interest thereon at the Default Rate. Borrower further agrees to
indemnify Administrative Agent and each Lender and their respective directors, officers, employees
and agents from, and hold each of them harmless against, (x) any and all losses arising out of or
by reason of any investigation or litigation or other proceedings (including any threatened
investigation or litigation or other proceedings) relating to any actual or proposed use by
Borrower of the proceeds of the Loan, including, without limitation, the fees and disbursements of
counsel incurred in connection with any such investigation, litigation or other proceedings and (y)
any and all claims, actions, suits, proceedings, costs, expenses, losses, damages and liabilities
of any kind, including in tort, penalties and interest, arising out or by reason of any matter
relating, directly or indirectly, to the Mortgage or the ownership, condition, development,
construction, sale, rental or financing of the Property or Improvements or any part thereof (but
excluding any such losses, liabilities, claims, damages or expenses incurred solely by reason of
the gross negligence or willful misconduct of the party to be indemnified). The obligations of
Borrower under this Section and under Sections 3.01, 3.03 and 6.08 shall survive the repayment of
all amounts due under or in connection with any of the Loan Documents and the termination of the
Loan.

     Section 8.14. Gross-Up For Taxes. All payments made by Borrower under the Note and
other Loan Documents shall be made free and clear of, and without deduction or withholding for or
on account of, any present or future stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by
any Governmental Authority, excluding income taxes and franchise or other taxes (imposed in lieu of
income taxes) imposed on Lender as a result of a present or former connection between Lender and
the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or
taxing authority thereof or therein (other than any such connection arising solely from Lender’s
having executed, delivered or performed its obligations or received a payment under, or enforced,
this Agreement or the Note). If any such non-excluded taxes, levies, imposts, duties, charges,
fees, deductions or withholdings (“Non-Excluded Taxes”) is required to be withheld from any amounts
payable to Lender under the Note or other Loan Documents, the amounts so payable to Lender shall be
increased to the extent necessary to yield to Lender (after payment of all Non-Excluded Taxes)
interest or any such other amounts payable with respect to the Loan at the rates or in the amounts
specified in the Note or other Loan Documents. Whenever any Non-Excluded Taxes are payable by
Borrower, as promptly as possible thereafter Borrower shall send to Lender a certified copy of an
original official receipt received by Borrower showing payment thereof. If Borrower fails to pay
any Non-Excluded Taxes when due to the appropriate taxing authority or fails to remit to Lender the
required receipts or other required documentary evidence, Borrower shall indemnify Lender for any
incremental taxes, interest or penalties that may become payable by Lender as a result of any such
failure. The

54

 

agreements in this Section shall survive the termination of this Agreement and the payment of
the Note and all other amounts payable in respect of the Loan.

     Section 8.15. Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same instrument, and any
party hereto may execute this Agreement by signing any such counterpart.

     Section 8.16. Governing Law; Jurisdiction. This Agreement and the rights and
obligations of the parties hereunder shall in all respects be governed by, and construed and
enforced in accordance with, the Laws of the State of New York (without giving effect to New York’s
principles of conflicts of law). Borrower, Administrative Agent and each Lender hereby irrevocably
submit to the non-exclusive jurisdiction of any New York State or Federal court sitting in The City
of New York (or any county in New York State where any portion of the Property is located) over any
suit, action or proceeding arising out of or relating to this Agreement, and Borrower hereby agrees
and consents that, in addition to any methods of service of process provided for under applicable
Law, all service of process in any such suit, action or proceeding in any New York State or Federal
court sitting in The City of New York (or such other county in New York State) may be made by
certified or registered mail, return receipt requested, directed to Borrower at the address
indicated on the cover page hereof, and service so made shall be complete five (5) days after the
same shall have been so mailed.

     Section 8.17. Integration. The Loan Documents constitute the entire agreement among
Administrative Agent, Borrower and Lenders relating to the transactions contemplated thereby
(except with respect to agreements among Lenders or with Administrative Agent relating solely to
compensation, consideration and the syndication of the Loan) and supersede any prior oral or
written statements or agreements with respect to such transactions.

     Section 8.18. Releases. Provided no Default or Event of Default exists, Borrower
shall have the right to obtain the release of any of the Properties from the Mortgage encumbering
the same, at Borrower’s expense, so long as (i) Borrower pays to Administrative Agent for the
account of Lenders an amount equal to the lesser of (x) the greater of (A) the Release Price for
the Property that is the subject of such release and (B) the amount necessary to reduce the Funding
Cap and the Outstanding Credit Amount to an amount which satisfies the DSC Test on the basis of Net
Operating Income from the parcels not being released or (y) the Maximum Release Price, which amount
shall be applied to the reduction of outstanding principal under the Loan, (ii) Administrative
Agent receives such reasonable documentation as Administrative Agent shall request confirming that
the amount of any Additional Interest secured by the Mortgage encumbering the Property which is
being released shall be secured by the credit of Guarantor, and (iii) Administrative Agent receives
such other documents, opinions and assurances as Administrative Agent may reasonably request. Upon
any such release of a Property, such Property shall no longer constitute a “Property” hereunder and
the Total Loan Commitment shall be reduced by the amount of the Loan Allocation for such Property.
As used herein, the term “Maximum Release Price” shall mean the amount

55

 

(which shall in no event be less than zero) by which (x) the Outstanding Credit Amount exceeds
(y) the Funding Cap determined as if such Property were released.

     Section 8.19. Substitution of Collateral.

     (a) Not more than twice in any twelve (12) month period Borrower may obtain the release of a
Property as specified in a request to Lender by Borrower (the Property, the “Release Property”),
provided that Borrower grants to Administrative Agent a Mortgage encumbering substitute property
(“Substitute Collateral”) owned by a Borrower, and provided, further, that, as to each such release
and substitution, all of the following requirements are satisfied in full:

     (i) Required Lenders have given prior approval of the release and substitution;

     (ii) the Substitute Collateral is not located in the State of New York or in any other
jurisdiction in which Administrative Agent determines it is impractical or disadvantageous
to secure a revolving credit facility such as the Loan with real property;

     (iii) Administrative Agent receives at least ninety (90) days’ prior notice of the
proposed release and substitution, which notice will contain sufficient documentation to
enable Administrative Agent to determine whether the criteria set forth herein have been
satisfied including, without limitation, operating statements and rent rolls for the
Substitute Collateral for the six (6) most recent month period;

     (iv) no default or Event of Default exists at the time of Borrower’s request for
release and no default or Event of Default exists at the time of release and substitution
under the Loan Documents;

     (v) the Substitute Collateral will be encumbered by a Mortgage in an amount equal to
the Loan Amount, except that if the Substitute Collateral is located in a jurisdiction with
a material mortgage recording tax based on the principal amount secured by the Mortgage,
the amount of the Mortgage encumbering such Property shall be an amount equal to the
product of (x) the as-is appraised value (the “Substitute Collateral Value”) of the
Substitute Collateral based on an appraisal thereof acceptable to Administrative Agent,
which appraisal shall be at Borrower’s cost and (y) 1.25;

     (vi) Borrower will have complied with each and every covenant and condition to the
Initial Advance set forth in Section 4.01 that would have been applicable if such
Substitute Collateral had been included as a Property;

     (vii) each property constituting Substitute Collateral will have satisfied Lenders’
underwriting criteria including leasing criteria, tenant credit risk, tenant quality and
lease expiration risk;

56

 

     (viii) Guarantor indemnifies Administrative Agent and Lenders against losses related
to environmental matters related to the Substitute Collateral pursuant to an indemnity
agreement in substantially the same form executed with respect to the Release Property;

     (ix) Borrower will have caused the Title Insurer to deliver, in form and substance
satisfactory to Administrative Agent, a mortgagee’s title policy in at least the amount of
the Loan Allocation for the Substitute Collateral, together with tie-in endorsements to
such new policy and each of the mortgagee title insurance policies insuring the other
Mortgages, provided, however, that if the Substitute Collateral is located in a state in
which a title policy tie-in or aggregation endorsement is not permitted, the policy
insuring the Mortgage encumbering such Property shall be in an amount equal to the product
of (x) the Substitute Collateral Value and (y) 1.25;

     (x) Borrower will have paid for all of Lenders’ costs and expenses associated with the
substitution of collateral including attorneys’ fees incurred by Administrative Agent and
Lenders, title, survey, and engineering and environmental costs and charges; and

     (xi) the Substitute Collateral will conform in all respects to such other underwriting
standards and criteria as well as such other appraisal, legal, business, environmental,
engineering, diversification, leasing and title requirements, all as Lender may determine
in its sole discretion, and, in connection therewith, Lenders will have the right to
conduct with respect to the Substitute Collateral, at Borrower’s cost and expense,
engineering audits and/or reports, reports, or audits as to the compliance by the
Substitute Collateral with Law regarding access for persons with disabilities and
environmental audits and/or reports.

     (b) If Administrative Agent determines that the criteria set forth in this Section 8.19 have
been satisfied and so notifies Borrower, then, (x) Borrower will grant a new Mortgage in favor of
Administrative Agent in substantially the form of the other Mortgages and which will encumber the
Substitute Collateral as a first priority lien, (y) as determined by Administrative Agent,
Administrative Agent, Lenders, Borrower and Guarantor will otherwise modify or amend the Loan
Documents to add the Substitute Collateral to the security encumbered by the Loan Documents and
Borrower will execute and deliver to Administrative Agent such documents or instruments, as
Administrative Agent requires to effect such modification or amendment, including, without
limitation, modifications to (A) reflect the Allocated Amount for the Substitute Collateral (which
Administrative Agent shall determine to be at an amount at which the Substitute Collateral would,
if it were the only Property, satisfy the Loan to Value Test and the DSC Test) and the Funding
Amount, provided that in no event shall (1) the Loan Amount be increased or (2) the Funding Amount
exceed the Loan Amount and (B) reflect the deletion therefrom of references to the Release Property
and the addition thereto of the Substitute Collateral, and (z) subject to the satisfaction in full
of all of the requirements of clauses (x) and (y) above, Administrative Agent will release from the
lien of this Mortgage such Release Property as Lender has theretofore agreed to reconvey.

57

 

     Notwithstanding any of the above requirements, Administrative Agent reserves the right to
reject the proposed Substitute Collateral if Administrative Agent concludes, in its sole judgment,
that the proposed Substitute Collateral does not satisfy any of the conditions set forth above.

     Section 8.20. Exculpation. Neither Borrower nor any Guarantor shall be personally
liable for payment of the principal of the Note or interest thereon, and in the event of any
failure by Borrower to pay any portion of such principal or interest, Lenders will look, with
respect to the then outstanding balance of such principal and interest, solely to the Mortgaged
Property and such other collateral as has been, or hereafter shall be, given to secure payment of
the Note. The foregoing limitation on liability shall not impair or otherwise affect the validity
or enforceability of (a) the debt evidenced by the Note or the Loan Agreement or of any other
obligations evidenced by the Note, the Loan Agreement, the Mortgage or any of the Loan Documents or
(b) Lenders’ liens, security interests, rights and remedies (including, without limitation, the
remedies of foreclosure and/or sale) with respect to the Mortgaged Property or any other property,
security, collateral and/or assets (including the proceeds thereof) encumbered, pledged or assigned
by the Mortgages or any other security for the Loan. In addition, the foregoing limitation on
liability shall not limit anyone’s obligations or be applicable with respect to: (i) liability
under any guaranty(ies) or indemnity(ies) delivered or afforded to Lenders; (ii) any fraud or
material misrepresentation; (iii) taxes of any kind (whether characterized as transfer, gains or
other taxes) payable in connection with the foreclosure sale of the Mortgaged Property,
irrespective of who pays such taxes; (iv) application of any proceeds of the Loan to any purpose
other than as provided in the Loan Documents; (v) the application of any insurance or condemnation
proceeds or other funds or payments other than strictly in accordance with the Loan Documents; (vi)
the misapplication of any security deposits; (vii) rents, sales proceeds, or other sums received
after default under the Loan Documents which are not applied to expenses of operating the Mortgaged
Property or paid to Lenders or a duly appointed receiver of the Mortgaged Property; (viii) any
failure to deliver to Lenders, after demand therefor, any agreements relating to the operation,
management, leasing, use, occupancy or construction of the Mortgaged Property; (ix) any intentional
physical waste in respect of the Mortgaged Property; (x) any failure to pay or discharge any real
estate tax, other tax, assessment, fine, penalty or lien against the Mortgaged Property to the
extent revenue from leases of the Mortgaged Property was available to pay same; (xi) liability as
landlord under any lease(s) relating to the Mortgaged Property which liability accrued prior to
Lenders’ succeeding to such interest of Borrower, which Lenders are or become obligated for by
virtue of Lenders succeeding to the interests of Borrower, provided, however, that
such liability shall only apply with respect to any liability of Borrower under such leases which
Lenders assumes pursuant to subordination, non-disturbance and attornment agreements required
pursuant to the terms of such leases; (xii) liability under any agreement relating to the operation
or maintenance of the Mortgaged Property which liability accrued prior to Lenders’ succeeding to
such interest of Borrower which Lenders are or become obligated for by virtue of Lenders succeeding
to the interests of Borrower, provided, however, that such liability shall only apply with respect
to agreements which are not terminable by their terms upon thirty (30) days’ written notice; (xiii)
liability to pay for the premiums on and keep in full force and effect insurance in respect of the
Mortgaged Property in accordance

58

 

with the Loan Documents to the extent revenue from leases of the Mortgaged Property was
available to pay same; or (xiv) liability for Hazardous Substances that may exist upon or be
discharged from the Mortgaged Property. Borrower and any Guarantor shall in any event be and shall
remain personally liable for each of the matters to which reference is made in the preceding
sentence and Lenders may seek, obtain and enforce one or more money judgments in any appropriate
proceeding(s) with respect thereto. The limitation on personal liability contained in this
paragraph shall become automatically null and void and shall be of no further force or effect, and
Borrower and each Guarantor shall be and remain personally liable for payment of the principal of
the Note and interest thereon, in accordance with the terms and provisions of this Loan Agreement,
in the event that Borrower, or anyone acting on behalf of Borrower, shall (A) file a petition or
answer seeking any relief of any kind under the bankruptcy laws of the United States (or if an
Insolvency Event shall otherwise occur), (B) assert in writing or in any legal proceedings of any
kind that any provisions of any of the Loan Documents are in whole or in part unenforceable,
invalid or not legally binding, or (C) fail fully to cooperate with Lenders or a receiver in
Lenders’ or such receiver’s efforts to collect Rents directly from tenants after a default under
the Loan Documents.

     Section 8.21. Letters of Credit.

     (a) Borrower, with the consent of Administrative Agent, may request, in lieu of advances of
proceeds of the Loan, that Administrative Agent issue unconditional, irrevocable standby letters of
credit (each, a “Letter of Credit”) for the account of Borrower. Promptly upon Borrower’s request
for, and then upon issuance of, a Letter of Credit, Administrative Agent shall notify each Lender.
As of the date hereof, the parties acknowledge that the Existing Letters of Credit constitute
Letters of Credit issued hereunder. Each Borrower hereby assumes the reimbursement obligations
agreed to by the Borrowers which executed the applications or agreements related to the issuance of
the Existing Letters of Credit and all Borrowers shall hereafter be jointly and severally liable
therefor. Notwithstanding anything to the contrary contained herein, in no event shall Borrower be
permitted to have Letters of Credit with an aggregate face amount of more than $15,000,000
outstanding at any one time.

     (b) The amount of any Letter of Credit shall be limited to the amount of proceeds of the Loan
available to be advanced hereunder, it being understood that the amount of each Letter of Credit
issued and outstanding shall effect a reduction, by an equal amount, of proceeds available to
Borrower under the Loan. Administrative Agent’s issuance of each Letter of Credit shall be subject
to Borrower having satisfied all conditions precedent to its entitlement to an advance of Loan
proceeds. Each Letter of Credit shall expire no later than one (1) month prior to the Maturity
Date. If the Letter of Credit is returned undrawn upon or expires without being drawn upon, then
the amount of Loan proceeds allocated to the Letter of Credit shall again become available to be
advanced with the terms hereof.

     (c) In connection with, and as a further condition to the issuance of, each Letter of Credit,
Borrower shall execute and deliver to Administrative Agent an application for the Letter of Credit
on Administrative Agent’s standard form therefor,

59

 

together with such other documents, opinions and assurances as Administrative Agent shall
reasonably require, and shall pay such fees as Administrative Agent shall require.

     (d) The parties hereto acknowledge and agree that, immediately upon notice from Administrative
Agent of any drawing under a Letter of Credit, each Lender shall, notwithstanding the existence of
a Default or Event of Default or the non-satisfaction of any conditions precedent to the making of
an advance of the Loan, advance proceeds of the Loan, in an amount equal to its ratable share
(based upon the undisbursed amounts of the Lenders’ respective Individual Loan Commitments) of such
drawing, which advance shall be made to Administrative Agent to reimburse Administrative Agent, for
its own account, for such drawing. Borrower hereby irrevocably authorizes Lenders to make such
advances. Each Lender further acknowledges that its obligation to fund its share of drawings under
Letters of Credit as aforesaid shall survive the Lenders’ termination of this Agreement or
enforcement of remedies hereunder or under the other Loan Documents. In the event that any advance
cannot for any reason be made on the date otherwise required above (including, without limitation,
as a result of the commencement of a proceeding under any applicable bankruptcy or insolvency Law
with respect to Borrower), then each Lender shall purchase (on or as of the date such advance would
otherwise have been made) from Administrative Agent a participation interest in any unreimbursed
drawing in an amount equal to its Pro Rata Share of such unreimbursed drawing.

     (e) Borrower agrees, upon the occurrence of an Event of Default and at the written request of
Administrative Agent, (i) to deposit with Administrative Agent cash collateral in the amount of all
the outstanding Letters of Credit, which cash collateral shall be held by Administrative Agent as
security for Borrower’s obligations in connection with the Letters of Credit and (ii) to execute
and deliver to Administrative Agent such documents as Administrative Agent reasonably requests to
confirm and perfect the assignment of such cash collateral to Administrative Agent.

     (f) In connection with each Letter of Credit, Borrower hereby covenants to pay to
Administrative Agent the following fees, payable annually in advance upon the issuance of the
Letter of Credit and on each anniversary date thereof): (1) a fee (the “Lenders L/C Fee”) for the
account of Lenders, computed daily on the amount of the Letter of Credit issued and outstanding at
a per annum rate equal to 0.75% and (2) a fee (the “Fronting Fee”) for Administrative Agent’s own
account, computed daily on the amount of the Letter of Credit issued and outstanding at a rate per
annum equal to 0.15%. It is understood and agreed that the last installment of the foregoing fees
provided for in this paragraph (f) with respect to any particular Letter of Credit shall be due and
payable on the first day of the calendar quarter following the return, undrawn, or cancellation, of
such Letter of Credit. In addition, Borrower shall pay to Administrative Agent, Administrative
Agent’s customary Administration Fees in connection with the issuance, extension, amendment and
drawing of all Letters of Credit.

     Section 8.22. Concerning Irrevocable Authorizations. Any and all advances made at
any time by Lenders pursuant to the irrevocable authorizations granted by Section 8.20 shall
require no further direction, authorization or request for disbursement

60

 

from Borrower and may be made whether or not there exists a Default or Event of Default. Any
and all such disbursements shall be added to the outstanding principal balance evidenced by the
Notes and shall be secured by the Mortgage.

     Section 8.23. Usury. Anything herein to the contrary notwithstanding, the
obligations of Borrower under this Agreement and the Notes shall be subject to the limitation that
payments of interest shall not be required to the extent that receipt thereof would be contrary to
provisions of Law applicable to a Lender limiting rates of interest which may be charged or
collected by such Lender.

     Section 8.24. Documentation Satisfactory. All documentation required from or to be
submitted on behalf of Borrower in connection with this Agreement and the documents relating hereto
shall be subject to the prior approval of, and be satisfactory in form and substance to,
Administrative Agent, its counsel and, where specifically provided herein, Lenders. In addition,
the persons or parties responsible for the execution and delivery of, and signatories to, all of
such documentation, shall be acceptable to, and subject to the approval of, Administrative Agent
and its counsel.

[Remainder of page intentionally left blank]

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     IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the day and
year first above written, the execution hereof by Borrower constituting a certification by the
party or parties executing on its behalf that the representations and warranties made in Article IV
are true and correct as of the date hereof and that each of them duly holds and is incumbent in the
position indicated under his or her name.

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A. (as Lender and Administrative Agent)	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Denise M. Smyth
	 	 
	 

	 	 	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address for notices and Applicable Lending Office:	 	 
	 
	 	 	 	 	 	 
	 	 	Bank of America, N.A.	 	 
	 	 	1185 Avenue of the Americas, 16th Floor	 	 
	 	 	New York, New York 10036	 	 
	 	 	Attention: Ms. Denise M. Smyth	 	 
	 	 	Telephone: 212/819-6144	 	 
	 	 	Telefax: 212/819-6294	 	 
	 
	 	 	 	 	 	 
	 	 	RD ABSECON ASSOCIATES, L.P., a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	RD Absecon, Inc., a Delaware corporation, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	RD BLOOMFIELD ASSOCIATES, LIMITED PARTNERSHIP, a Delaware limited partnership
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Property Holdings, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Realty Limited Partnership, its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Realty Trust, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Robert Masters
	 	 
	 

	 	 	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	RD HOBSON ASSOCIATES, L.P., a Delaware limited partnership
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Property Holdings, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Realty Limited Partnership, its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Realty Trust, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Robert Masters
	 	 
	 

	 	 	 	Senior Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	RD VILLAGE ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Property Holdings, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Realty Limited Partnership, its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Realty Trust, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Robert Masters
	 	 
	 

	 	 	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	RD ABINGTON ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Property Holdings, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Realty Limited Partnership, its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Realty Trust, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Robert Masters
	 	 
	 

	 	 	 	Senior Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	ACADIA TOWN LINE, LLC, a Connecticut limited liability company
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Realty Limited Partnership, a Delaware limited partnership,

its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Realty Trust, a Maryland real estate

investment trust, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Robert Masters
	 	 
	 

	 	 	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	RD METHUEN ASSOCIATES LIMITED PARTNERSHIP, a Massachusetts limited partnership
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Property Holdings, LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Realty Limited Partnership, its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Acadia Realty Trust, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Robert Masters
	 	 
	 

	 	 	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Address for notices for all Borrowers:
	 
	 	 	 	 	 	 
	 	 	c/o Acadia Realty Trust

1311 Mamaroneck Avenue, Suite 260

White Plains, New York 10605

Attention: Mr. Robert Masters

 

 

EXHIBIT A

Assignment and Assumption Agreement

     ASSIGNMENT AND ASSUMPTION AGREEMENT, dated as of                     , 200___, among [NAME OF ASSIGNING
BANK] (“Assignor”) and [NAME OF ASSIGNEE] (“Assignee”).

Preliminary Statement

     1. This Assignment and Assumption Agreement (this “Agreement”) relates to the Amended and
Restated Revolving Loan Agreement (as the same may be amended from time to time, the “Loan
Agreement”) dated December 19, 2006 among                      (“Borrower”), the lender(s)
party thereto (each a “Lender” and, collectively, “Lenders”) and                     , as
administrative agent (“Administrative Agent”). All capitalized terms not otherwise defined herein
shall have the respective meanings set forth in the Loan Agreement.

     2. Subject to the terms and conditions set forth in the Loan Agreement, Assignor has made an
Individual Loan Commitment to Borrower in an aggregate principal amount of $                    
(“Assignor’s Loan Commitment”).

     3. The aggregate outstanding principal amount under Assignor’s Loan Commitment at the
commencement of business on the date hereof is $                    .

     4. Assignor desires to assign to Assignee all of the rights of Assignor under the Loan
Agreement in respect of a portion of Assignor’s Loan Commitment and the loan made pursuant thereto,
such portion being in an amount equal to $                     (the “Assigned Loan and Commitment”), of
which $                     is currently outstanding and $                     is still to be disbursed to Borrower
pursuant to the Loan Agreement; and Assignee desires to accept assignment of such rights and assume
the corresponding obligations from Assignor on such terms.

     NOW, THEREFORE, in consideration of the foregoing and the mutual agreements contained herein,
the parties hereto agree as follows:

     SECTION 1. Assignment. Assignor hereby assigns and sells to Assignee all of the
rights of Assignor under the Loan Agreement in and to the Assigned Loan and Commitment, and
Assignee hereby accepts such assignment from Assignor and assumes all of the obligations of
Assignor under the Loan Agreement with respect to the Assigned Loan and Commitment, including,
without limitation, Assignor’s obligations with respect to the undisbursed `ortion, if any,
thereof. Upon the execution and delivery hereof by Assignor, Assignee, Administrative Agent and
the payment of the amount specified in Section 2 hereof required to be paid on the date hereof, (1)
Assignee shall, as of the commencement of business on the date hereof, succeed to the rights and
obligations of a Lender under the Loan Agreement with an Individual Loan Commitment in an amount

 

 

equal to the Assigned Loan and Commitment, and (2) the Individual Loan Commitment of Assignor
shall, as of the commencement of business on the date hereof, be reduced correspondingly and
Assignor released from its obligations under the Loan Agreement to the extent such obligations have
been assumed by Assignee. Assignor represents and warrants that it (x) owns the Assigned Loan and
Commitment free and clear of all liens and other encumbrances and (y) is legally authorized to
enter into and perform this Agreement. Except as provided in the immediately preceding sentence,
the assignment provided for herein shall be without representation or warranty by, or recourse to,
Assignor.

     SECTION 2. Payments. As consideration for the assignment and sale contemplated in
Section 1 hereof, Assignee shall pay to Assignor on the date hereof, in immediately available
funds, an amount equal to the outstanding principal amount under the Assigned Loan and Commitment
recited in paragraph 4 of the Preliminary Statement above. Each of Assignor and Assignee hereby
agrees that if it receives any amount under the Loan Agreement which is for the account of the
other party hereto, it shall receive the same for the account of such other party to the extent of
such other party’s interest therein and shall promptly pay the same to such other party.

     SECTION 3. Consent; Execution and Delivery of Note. This Agreement is conditioned
upon the consent of Administrative Agent. The execution of this Agreement and Administrative Agent
is evidence of this consent; [Consents not required for certain assignments to entities related to
a Lender.] Pursuant to Section 8.07 of the Loan Agreement, Borrower has agreed to execute and
deliver Notes payable to the respective orders of Assignee and Assignor to evidence the assignment
and assumption provided for herein. Assignee has designated as its Applicable Lending Office, and
as its address for notices, the office identified as such below.

     SECTION 4. Non-Reliance on Assignor. Assignor makes no representation or warranty in
connection with, and shall have no responsibility with respect to, the solvency, financial
condition, or statements of Borrower or any other party to any Loan Document, or the validity and
enforceability of the obligations of Borrower or any other party to a Loan Document in respect of
the Loan Agreement or any other Loan Document. Assignee acknowledges that it has, independently
and without reliance on Assignor, and based on such documents and information as it has deemed
appropriate, made its own analysis of the collateral for the Loan, credit analysis of Borrower and
Guarantor and decision to enter into this Agreement and will continue to be responsible for making
its own independent appraisal of the collateral for the Loan and of the business, affairs and
financial condition of Borrower and the other parties to the Loan Documents.

     SECTION 5. Governing Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the Laws of the State of New York (without giving effect to New York’s
principles of conflicts of law).

2

 

     SECTION 6. Counterparts. This Agreement may be signed in any number of counterparts,
each of which shall be an original, with the same effect as if the signatures thereto and hereto
were upon the same instrument.

     SECTION 7. Certain Representations and Agreements by Assignee. Assignee represents
that it is legally authorized to enter into and perform this Agreement. In addition, Assignee
hereby represents that it is entitled to receive any payments to be made to it under the Loan
Agreement or hereunder without the withholding of any tax and agrees to furnish the evidence of
such exemption as specified therein and otherwise to comply with the provisions of Section 7.13 of
the Loan Agreement.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by
their duly authorized officers as of the date first above written.

	 	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNOR]
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNEE]
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	Assignee’s Applicable Lending Office and Address for Notices:
	 
	 	 	[Assignee]
	 	 	[Address]
	 	 	Attention: ________________________________
	 	 	Telephone: (___) ________________________
	 
	 	 	 	 	 	 
	 	 	[NAME OF ADMINISTRATIVE AGENT]
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

3

 

	 	 	 	 	 	 	 
	 	 	[NAME OF BORROWER]
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

4

 

EXHIBIT B

Notice-of-Assignment of Lease

(On Letterhead of Borrower)

                    , 200_

[Name and Address of Tenant]

Re: Lease Dated:

       Lender:

       Address of Lender:

       Mortgage Dated:

Dear Sir/Madam:

     The undersigned has assigned by a mortgage or deed of trust (the “Mortgage”) dated as shown
above to the Lender identified above (hereinafter “Lender”) all its estate, right, title and
interest in, to and under the Lease between you and the undersigned dated as set forth above, as
said Lease may have been heretofore modified or amended (the “Lease”), together with all right,
title and interest of the undersigned as lessor thereunder, including, without limitation, the
right upon the occurrence of an Event of Default (as defined in the Mortgage) to collect and
receive all earnings, revenues, rents, issues, profits and income of the property subject to the
Mortgage.

     [Certain provisions of the Mortgage, the text of which are attached hereto, restrict
some of the undersigned’s rights under the Lease. However, s][S]aid assignment does not impair or
diminish any of our obligations to you under the provisions of the Lease, nor are any such
obligations imposed upon Lender, its successors or assigns.

     Pursuant to said assignment you are hereby notified that in the event of a demand on you by
Lender or its successors and assigns for the payment to it of the rents due under the Lease, you
may, and are hereby authorized and directed to, pay said rent to Lender and we hereby agree that
the receipt by you of such a demand shall be conclusive evidence of Lender’s right to the receipt
thereof and that the payment of the rents by you to Lender pursuant to such demand shall constitute
performance in full of your obligation under the Lease for the payment of rent to the undersigned.

 

			
	NOTE:	 	To be sent in accordance with notice requirements of the Lease.
	 
	*	 	To be used if property located in New York

 

 

	 	 	Kindly indicate your receipt of this letter and your agreement to the effect set forth below
by signing the enclosed copy thereof and mailing it to Lender at its address identified above to
the attention of its Real Estate Finance Office.

	 	 	 	 	 	 	 
	 	 	[BORROWER]
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

     The undersigned acknowledges receipt of the original of this letter and agrees for the benefit
of Lender that it shall notify Lender of any default on the part of the landlord under the Lease
which would entitle the undersigned to cancel the Lease or to abate the rent payable thereunder,
and further agrees that, notwithstanding any provision of the Lease, no notice of cancellation
thereof, nor of any abatement, shall be effective unless Lender has received the notice aforesaid
and has failed within 30 days of the date thereof to cure, or if the default cannot be cured within
30 days has failed to commence and to diligently prosecute the cure, of landlord’s default which
gave rise to the right to cancel or abate.

	 	 	 	 	 	 	 
	 	 	[NAME OF TENANT]
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

	, 	 
	 

	 	 	 	 
its authorized officer	 	 

2

 

EXHIBIT C

Required Contents of Borrower’s Counsel Opinion

     (1) If Borrower, the mortgagor or grantor under the Mortgage (if different from Borrower),
Guarantor or any general partner or member of any of them is a corporation, partnership, venture,
limited liability company or trust, each such entity is duly organized, validly existing and in
good standing under the laws of the jurisdiction of its formation, is qualified to do business
(or such opinion shall specifically state that such qualification is not required) and is
in good standing in the jurisdiction in which the Property is located, and has full power and
authority to consummate the transactions contemplated by the Loan Documents and to execute, deliver
and perform all Loan Documents to which it is a party.

     (2) There are no actions, suits or proceedings pending or threatened against or affecting
Borrower, Guarantor, the Mortgaged Property, the validity or enforceability of the Mortgage or the
priority of the lien thereof at law, in equity or before or by any Governmental Authorities except
actions, suits or proceedings which have been disclosed to Lender in writing and which are fully
covered by insurance or would, if adversely determined, not substantially impair the ability of
Borrower or Guarantor to pay when due any amounts which may become payable under the Note or
Guaranty or to otherwise pay and perform their respective obligations in connection with the Loan;
neither Borrower nor Guarantor is in default with respect to any order, writ, injunction, decree or
demand of any court or Governmental Authorities.

     (3) The consummation of the transactions contemplated by and the performance of the Loan
Documents have not resulted and will not result in any breach of, or constitute a default under,
any mortgage, deed of trust, lease, bank loan or credit agreement, corporate charter, by-laws,
partnership agreement or other instrument to which Borrower or Guarantor is a party or by which
either of them may be bound or affected.

     (4) There exist no violations of any laws, statutes, ordinances, rules, orders, regulations or
requirements of any Governmental Authorities with respect to the Improvements and that the use
thereof complies with all applicable zoning and other laws, etc. and with all restrictions,
covenants, leases and easements affecting the Mortgaged Property.

     (5) The Property is not part of a larger tract of land owned by Borrower, its affiliates or
Guarantor, or otherwise considered as part of one zoning or tax lot, or, if they are, that any
authorization or variance required for the subdivision of such larger tract which a sale of the
Property would entail has been obtained from all appropriate Governmental Authorities so that the
Property and Improvements constitute one zoning or tax lot (including parking and utility
facilities and street access, if relevant) capable of being conveyed as such.

 

 

Required Contents of Borrower’s Local Counsel Opinion (and, if required by Lender,
of a local counsel selected by Lender or its counsel)

     (1) The Loan Documents have each been duly authorized, executed and delivered by the parties
thereto (other than Lender) and, under the laws of the jurisdiction in which the Property is
located (were such laws to apply), are valid and binding instruments enforceable against such
parties in accordance with their respective terms, subject, however, to the qualifications that (a)
some of the rights and remedies set forth in the Note and Mortgage may be limited by bankruptcy,
insolvency, reorganization and other laws of general application to the enforcement of creditors’
rights and (b) certain remedies and waivers contained in the Mortgage may be limited by applicable
laws of said jurisdiction, none of which qualifications will materially interfere with the
practical realization of the benefits and security provided by said documents except for the
economic consequences of any procedural delay which may result therefrom.

     (2) Considering the significant relationship that the State of New York has to the Loan, the
courts of the jurisdiction in which the Property is located will, in all likelihood, honor any
designations by the parties of New York as the governing law contained in the Loan Documents.

     (3) The Mortgage will create the lien it purports to create on the property covered by the
Mortgage and will effectively assign the leases purported to be assigned thereby if the Mortgage
and any necessary UCC-1 financing statements are recorded or filed, as the case may be, and
specifying local law requirements as to (1) the manner in which, and offices where, such recording
and filing must be made and (2) the re-recording of the Mortgage and refiling of the financing
statements, all in order to establish, preserve and protect such lien and assignment and Lender’s
interest in the property covered by the Mortgage.

     (4) In the event of a foreclosure or other method of enforcement of the remedies provided for
in the Mortgage, any leases of the Mortgaged Property will, at the option of the holder of the
Mortgage, remain in full force and effect between the lessees thereunder and such holder or any
purchaser of the Mortgaged Property pursuant to such remedial action. The opinion shall state
whether the foregoing results as a matter of law or by reason of compliance with Section 1.14(c)
of the Mortgage.

     (5) All rights of redemption in respect of the Mortgage will be extinguished upon the
consummation of a sale of the Mortgaged Property pursuant to any remedial provisions provided for
in the Mortgage, [or if the foregoing is not the case, the opinion shall specify the period of time
which must expire following such consummation in order for said rights of redemption to be
extinguished under local law, and shall state whether the applicable result obtains as a matter of
law or pursuant to any waiver provided for in the Mortgage].

     (6) There are no changes or additions to the Mortgage and other Loan Documents which are
required by local law, and none which are customary in local

2

 

practice and which would not unsubstantially enhance the rights and benefits of Lender
thereunder.

     (7) To such other effects as Lender or its counsel may reasonably require.

3

 

EXHIBIT D

Note

			
	$                    
	 	New York, New York

___, 200___

     For value received, RD ABSECON ASSOCIATES, L.P., a Delaware limited partnership (“RD
Absecon”), RD BLOOMFIELD ASSOCIATES, LIMITED PARTNERSHIP, a Delaware limited partnership (“RD
Bloomfield”), RD HOBSON ASSOCIATES, L.P., a Delaware limited partnership (“RD Hobson”), RD VILLAGE
ASSOCIATES LIMITED PARTNERSHIP (“RD Village”), a Delaware limited partnership, RD ABINGTON
ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership (“RD Abington”), ACADIA TOWN LINE,
LLC, a Connecticut limited liability company (“Acadia Town Line”) and RD METHUEN ASSOCIATES LIMITED
PARTNERSHIP, a Massachusetts limited partnership (“RD Methuen”; RD Absecon, RD Bloomfield, RD
Hobson, RD Village, RD Abington, Acadia Town Line and RD Methuen, collectively and individually, as
the context requires, “Maker”) hereby covenant and promise to pay to the order of [NAME OF LENDER],
or its successors or assigns (collectively, “Lender”), at the principal office of BANK OF AMERICA,
N.A., located at 1185 Avenue of the Americas, New York, New York 10036 (“Administrative Agent”) for
the account of the Applicable Lending Office of Lender, the principal sum of
                                         Dollars ($                    ) or, if less, the amount loaned by the Lender
under its Loan to Borrower pursuant to the Loan Agreement (as defined below) and actually
outstanding, in lawful money of the United States and in immediately available funds, in accordance
with the terms set forth in the Loan Agreement. Maker also covenants and promises to pay interest
on the unpaid principal balance hereof, for the period such balance is outstanding, in like money,
at said office for the account of said Applicable Lending Office, at the time and at a rate per
annum as provided in the Loan Agreement (as defined below). Any amount or principal hereof which
is not paid when due, whether at stated maturity, by acceleration, or otherwise, shall bear
interest from the date when due until said principal amount is paid in full, payable on demand, at
the Default Rate. The entities comprising Maker are jointly and severally liable under this Note.

     The date and amount of each advance of the Loan made by Lender to Borrower under the Loan
Agreement referred to below, and each payment of said Loan, shall be recorded by Lender on its
books and, prior to any transfer of this Note (or, at the discretion of Lender, at any other time),
may be endorsed by Lender on the schedule attached hereto and any continuance thereof.

     This Note is one of the Notes referred to in the Amended and Restated Revolving Loan Agreement
dated as of the date hereof (as the same may be amended or supplemented from time to time, the
“Loan Agreement”) among Maker, as Borrower, the lenders named therein (including Lender), as
Lenders, and Administrative Agent, as

 

 

Administrative Agent for Lenders. All of the terms, conditions and provisions of the Loan
Agreement are hereby incorporated by reference. All capitalized terms used herein and not defined
herein shall have the meanings given to them in the Loan Agreement.

     This Note is secured by the various Mortgages which contain, among other things, provisions
for the prepayment of and acceleration of this Note upon the happening of certain stated events.
Reference to such of the Mortgages is hereby made for a description of the “Mortgaged Property”
encumbered thereby and the rights of Maker and Lenders (including Lender) with respect to such
Mortgaged Property.

     Maker agrees that it shall be bound by any agreement extending the time or modifying the terms
of payment set forth above and in the Loan Agreement, made by or on behalf of Lenders and the owner
or owners of the Mortgaged Property, whether with or without notice to Maker, and Maker shall
continue liable to pay the amount due hereunder in accordance with the terms set forth herein and
in the Loan Agreement, but with interest at a rate no greater than the rate of interest provided
therein, according to the terms of any such agreement of extension or modification.

     Should the indebtedness represented by this Note or any part thereof be collected at law or in
equity, or in bankruptcy, receivership or any other court proceeding (whether at the trial or
appellate level), or should this Note be placed in the hands of attorneys for collection upon
default, Maker agrees to pay, in addition to the principal, interest and other sums due and payable
hereon, all costs of collecting or attempting to collect this Note, including reasonable attorneys’
fees and expenses.

     All parties to this Note, whether principal, surety, guarantor or endorser, hereby waive
presentment for payment, demand, protest, notice of protest and notice of dishonor.

     This Note shall be governed by the Laws of the State of New York (without giving effect to New
York’s principles of conflicts of law), provided that, as to the maximum lawful rate of interest
which may be charged or collected, if the Laws applicable to Lender permit it to charge or collect
a higher rate than the Laws of the State of New York, then such Law applicable to Lender shall
apply to Lender under this Note.

     IN WITNESS WHEREOF, Maker has executed and delivered this Note as of the date first above
written.

	 	 	 	 	 	 	 
	 	 	[NAME OF BORROWER]

	 

	 	By
	 	 
	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

2

 

	 	 	 	 	 	 	 	 	 
	Date

	 	Amount
of Advance
	 	Amount
of Payment
	 	Balance

Outstanding
	 	Notation By
	 

	 	 
	 	 
	 	 
	 	 

3

 

EXHIBIT E-1

FINANCIAL COVENANT COMPLIANCE CERTIFICATE

     This Certificate is furnished pursuant to Section 6.11(3) of that certain Amended and Restated
Revolving Loan Agreement dated December 19, 2006 (the “Loan Agreement”) by and among RD ABSECON
ASSOCIATES, L.P., RD BLOOMFIELD ASSOCIATES, LIMITED PARTNERSHIP, RD HOBSON ASSOCIATES, L.P., RD
VILLAGE ASSOCIATES LIMITED PARTNERSHIP, RD ABINGTON ASSOCIATES LIMITED PARTNERSHIP, ACADIA TOWN
LINE, LLC and RD METHUEN ASSOCIATES LIMITED PARTNERSHIP (collectively and individually, as the
context requires, “Borrower”) and BANK OF AMERICA, N.A. (in its individual capacity and not as
Administrative Agent, “BofA”) and BofA, in its capacity as Administrative Agent, Section 6.11(3) of
which Loan Agreement was agreed to and acknowledged by ACADIA REALTY LIMITED PARTNERSHIP
(“Guarantor”). Capitalized terms used in this Certificate and Schedule 1 attached hereto, unless
otherwise defined herein or in said Schedule 1, have the meanings given to them in the Loan
Agreement.

     The undersigned, the ___of Guarantor, hereby certifies to Lender that
Schedule 1 attached hereto sets forth the financial data and computations relating to Guarantor’s
compliance with the Liquidity Requirement, which data and computations, to the best knowledge and
belief of the undersigned, are true, complete and correct.

     The undersigned certifies that he/she is authorized to execute and deliver this Certificate on
behalf of Guarantor.

     WITNESS my hand this ___day of ___, ___.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 

Name:
	 	 

 

 

EXHIBIT E-2

FINANCIAL COVENANT COMPLIANCE CERTIFICATE

     This Certificate is furnished pursuant to Section 6.11(3) of that certain Amended and Restated
Revolving Loan Agreement dated December 19, 2006 (“Loan Agreement”) by and among RD ABSECON
ASSOCIATES, L.P., RD BLOOMFIELD ASSOCIATES, LIMITED PARTNERSHIP, RD HOBSON ASSOCIATES, L.P., RD
VILLAGE ASSOCIATES LIMITED PARTNERSHIP, RD ABINGTON ASSOCIATES LIMITED PARTNERSHIP, ACADIA TOWN
LINE, LLC and RD METHUEN ASSOCIATES LIMITED PARTNERSHIP (collectively and individually, as the
context requires, “Borrower”) and BANK OF AMERICA, N.A. (in its individual capacity and not as
Administrative Agent, “BofA”) and BofA, in its capacity as Administrative Agent, Section 6.11(3) of
which Loan Agreement was agreed to and acknowledged by ACADIA REALTY LIMITED PARTNERSHIP
(“Guarantor”). Capitalized terms used in this Certificate and Schedule 1 attached hereto, unless
otherwise defined herein or in said Schedule 1, have the meanings given to them in the Loan
Agreement.

     The undersigned, the ___of Guarantor, hereby certifies to Lender that
Schedule 1 attached hereto sets forth the audited financial data and computations relating to
Guarantor’s compliance with the Net Worth Requirement and the Liquidity Requirement, which data and
computations, to the best knowledge and belief of the undersigned, are true, complete and correct.

     The undersigned certifies that he/she is authorized to execute and deliver this Certificate on
behalf of Guarantor.

     WITNESS my hand this ___day of _____________, ___.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 

Name:
	 	 

 

 

EXHIBIT F

AUTHORIZATION LETTER

                         , 2006

[Name and address of Administrative Agent]

	 	Re:  	 	Amended and Restated Revolving Loan Agreement dated as of
December 19, 2006 (the “Loan Agreement”; capitalized terms not otherwise
defined herein shall have the meanings ascribed to such terms in the Loan
Agreement) among us, as Borrower, the Lenders named therein, and you, as
Administrative Agent for said Lenders

Dear Sir/Madam:

     In connection with the captioned Loan Agreement, we hereby designate any of the following
persons to give to you instructions, including notices required pursuant to the Loan Agreement,
orally, by telephone or teleprocess, or in writing:

Michael Nelsen

Robert Masters

Richard Hartmann

Jon Grisham

     Instructions may be honored on the oral, telephonic, teleprocess or written instructions of
anyone purporting to be any one of the above designated persons even if the instructions are for
the benefit of the person delivering them. We will furnish you with written confirmation of each
such instruction signed by any person designated above (including any telecopy which appears to
bear the signature of any person designated above) on the same day that the instruction is provided
to you, but your responsibility with respect to any instruction shall not be affected by your
failure to receive such confirmation or by its contents.

     You and Lenders shall be fully protected in, and shall incur no liability to us for, acting
upon any instructions which you in good faith believe to have been given by any person designated
above, and in no event shall you or Lenders be liable for special, consequential or punitive
damages. In addition, we agree to hold you and Lenders and your and their respective agents
harmless from any and all liability, loss and expense arising directly or indirectly out of
instructions that we provide to you in connection with the Loan Agreement except for liability,
loss or expense occasioned by your gross negligence or willful misconduct.

 

 

     Upon notice to us, you may, at your option, refuse to execute any instruction, or part
thereof, without incurring any responsibility for any loss, liability or expense arising out of
such refusal if you in good faith believe that the person delivering the instruction is not one of
the persons designated above or if the instruction is not accompanied by an authentication method
that we have agreed to in writing.

     We will promptly notify you in writing of any change in the persons designated above and,
until you have actually received such written notice and have had a reasonable opportunity to act
upon it, you are authorized to act upon instructions, even though the person delivering them may no
longer be authorized.

	 	 	 	 	 	 	 
	 	 	Very truly yours,

	 	 	[BORROWERS]

	 

	 	By
	 	 
	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

2

 

EXHIBIT G

SOLVENCY CERTIFICATE

     The person executing this certificate is the Senior Vice President and/or Chief Financial
Officer of Acadia Realty Trust, the General Partner of Acadia Realty Limited Partnership, sole
member of Acadia Property Holdings, LLC, the General Partner of ___, a ___
(“Borrower”), and is familiar with its properties, assets and businesses, and is duly authorized to
execute this certificate on behalf of Borrower pursuant to Section 4.01(2) of the Amended and
Restated Revolving Loan Agreement dated the date hereof (the “Loan Agreement”) among Borrower along
with certain affiliated co-borrowers, the lenders party thereto (each a “Lender” and collectively,
“Lenders”) and Bank of America, N.A., as administrative agent for Lenders (in such capacity,
together with its successors in such capacity, “Administrative Agent”). In executing this
Certificate, such person is acting solely in his or her capacity as the Senior Vice President
and/or Chief Financial Officer of Borrower, and not in his or her individual capacity. Unless
otherwise defined herein, terms defined in the Loan Agreement are used herein as therein defined.

     The undersigned further certifies that he has carefully reviewed the Loan Agreement and the
other Loan Documents and the contents of this Certificate and, in connection herewith, has made
such investigation and inquiries as he deems reasonably necessary and prudent therefor. The
undersigned further certifies that the financial information and assumptions which underlie and
form the basis for the representations made in this Certificate were reasonable when made and were
made in good faith and continue to be reasonable as of the date hereof.

     The undersigned understands that Administrative Agent and Lenders are relying on the truth and
accuracy of this Certificate in connection with the transactions contemplated by the Loan
Agreement.

     The undersigned certifies that Borrower is Solvent.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate on __________, 2006.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 
	 	 
	 

	 	By
	 	 
	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

SCHEDULE A

	 	 	 	 	 
	 	 	Annual Loan Amount Reduction/
	Payment Date	 	Amortization Payment
	October 1, 2007

	 	$	981,828	 
	October 1, 2008

	 	$	1,063,319	 
	October 1, 2009

	 	$	1,151,574	 
	October 1, 2010

	 	$	1,247,154	 
	October 1, 2011

	 	$	1,350,668	 
	October 1, 2012

	 	$	1,462,772	 
	October 1, 2013

	 	$	1,584,182	 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I
	 	DEFINITIONS AND RULES OF CONSTRUCTION	 	 	2	 
	Section 1.01.
	 	Definitions	 	 	2	 
	Section 1.02.
	 	Accounting Terms	 	 	15	 
	Section 1.03.
	 	Computation of Time Periods	 	 	15	 
	Section 1.04.
	 	Rules of Construction	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE II
	 	THE LOAN	 	 	15	 
	Section 2.01.
	 	Generally	 	 	15	 
	Section 2.02.
	 	Nature of Lenders’ Obligations	 	 	16	 
	Section 2.03.
	 	Purpose	 	 	16	 
	Section 2.04.
	 	Advances	 	 	16	 
	Section 2.05.
	 	Procedure for Advance	 	 	17	 
	Section 2.06.
	 	Notes/Joint and Several Liability	 	 	17	 
	Section 2.07.
	 	Payments and Distributions; Certain Consequences of Delinquent Lender Status	 	 	18	 
	Section 2.08.
	 	Interest	 	 	19	 
	Section 2.09.
	 	Limitation on Number of Interest Periods	 	 	20	 
	Section 2.10.
	 	Conversions of Interest Rate	 	 	20	 
	Section 2.11.
	 	Inapplicability of LIBO Based Rate	 	 	20	 
	Section 2.12.
	 	Late Payment Premium	 	 	21	 
	Section 2.13.
	 	Voluntary Prepayments	 	 	21	 
	Section 2.14.
	 	Annual Commitment Reduction/Required Amortization	 	 	21	 
	Section 2.15.
	 	Nature of Lenders’ Obligations; Borrower’s Rights and Obligations in Event a Lender Fails to Make an Advance	 	 	21	 
	Section 2.16.
	 	Extension of Maturity	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE III
	 	YIELD MAINTENANCE ETC	 	 	22	 
	Section 3.01.
	 	Additional Costs and Other Effects of Regulatory Changes; Taxes	 	 	22	 
	Section 3.02.
	 	Limitations on Availability of LIBO Based Rate	 	 	23	 
	Section 3.03.
	 	Certain Compensation	 	 	24	 
	Section 3.04.
	 	“Lender” to Include Participants	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE IV
	 	CONDITIONS PRECEDENT	 	 	25	 
	Section 4.01.
	 	Conditions Precedent to Loan	 	 	25	 
	Section 4.02.
	 	Conditions to Advances After the Initial Advance	 	 	29	 
	 
	 	 	 	 	 	 
	ARTICLE V
	 	REPRESENTATIONS AND WARRANTIES	 	 	30	 
	Section 5.01.
	 	Due Formation, Power and Authority	 	 	30	 
	Section 5.02.
	 	Legally Enforceable Agreements	 	 	30	 
	Section 5.03.
	 	Financial Statements	 	 	30	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 5.04.
	 	Compliance With Laws; Payment of Taxes	 	 	31	 
	Section 5.05.
	 	Litigation	 	 	31	 
	Section 5.06.
	 	No Conflicts or Defaults	 	 	31	 
	Section 5.07.
	 	Solvency	 	 	31	 
	Section 5.08.
	 	Governmental Regulation	 	 	31	 
	Section 5.09.
	 	Insurance	 	 	31	 
	Section 5.10.
	 	ERISA	 	 	31	 
	Section 5.11.
	 	Other Documents	 	 	32	 
	Section 5.12.
	 	No Defaults	 	 	32	 
	Section 5.13.
	 	Accuracy of Information; Full Disclosure	 	 	32	 
	Section 5.14.
	 	Separate Tax and Zoning Lot	 	 	32	 
	Section 5.15.
	 	The Improvements	 	 	32	 
	Section 5.16.
	 	Utility Services	 	 	33	 
	Section 5.17.
	 	Creation of Liens	 	 	33	 
	Section 5.18.
	 	Roads	 	 	33	 
	Section 5.19.
	 	Requisition as Reaffirmation	 	 	33	 
	Section 5.20.
	 	Patriot Act	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE VI
	 	COVENANTS OF BORROWER	 	 	34	 
	Section 6.01.
	 	Compliance with Laws; Payment of Taxes	 	 	34	 
	Section 6.02.
	 	Leases and Premises Documents	 	 	34	 
	Section 6.03.
	 	Administration Fee/Inspection Fee	 	 	35	 
	Section 6.04.
	 	Continuing Accuracy of Representations and Warranties	 	 	35	 
	Section 6.05.
	 	Covenants, Restrictions and Easements	 	 	35	 
	Section 6.06.
	 	Financial Covenants	 	 	35	 
	Section 6.07.
	 	Payment of Costs	 	 	36	 
	Section 6.08.
	 	Brokers	 	 	36	 
	Section 6.09.
	 	Correction of Defects	 	 	36	 
	Section 6.10.
	 	Unused Fee	 	 	36	 
	Section 6.11.
	 	Reporting and Miscellaneous Document Requirements	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE VII
	 	ADMINISTRATIVE AGENT; RELATIONS AMONG LENDERS	 	 	39	 
	Section 7.01.
	 	Appointment, Powers and Immunities
of Administrative Agent	 	 	39	 
	Section 7.02.
	 	Reliance by Administrative Agent	 	 	39	 
	Section 7.03.
	 	Defaults	 	 	40	 
	Section 7.04.
	 	Rights of Administrative Agent as Lender	 	 	40	 
	Section 7.05.
	 	Sharing of Costs by Lenders; Indemnification of Administrative Agent	 	 	40	 
	Section 7.06.
	 	Non-Reliance on Administrative Agent and Other Lenders	 	 	41	 
	Section 7.07.
	 	Failure of Administrative Agent to Act	 	 	41	 
	Section 7.08.
	 	Resignation or Removal of Administrative Agent	 	 	42	 
	Section 7.09.
	 	Amendments Concerning Agency Function	 	 	42	 
	Section 7.10.
	 	Liability of Administrative Agent	 	 	42	 

2

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 7.11.
	 	Transfer of Agency Function	 	 	43	 
	Section 7.12.
	 	Non-Receipt of Funds by Administrative Agent; Adjustments	 	 	43	 
	Section 7.13.
	 	Withholding Taxes	 	 	43	 
	Section 7.14.
	 	Sharing of Payments among Lenders	 	 	44	 
	Section 7.15.
	 	Possession of Documents	 	 	44	 
	Section 7.16.
	 	Effect of a Lender’s Failure to Make an Advance	 	 	44	 
	Section 7.17.
	 	Cure by Delinquent Lender	 	 	46	 
	Section 7.18.
	 	Delinquent Lender Not Excused	 	 	47	 
	Section 7.19.
	 	Notices Regarding Delinquent Lender	 	 	47	 
	Section 7.20.
	 	Replacement Lender	 	 	47	 
	 
	 	 	 	 	 	 
	ARTICLE VIII
	 	GENERAL CONDITIONS AND PROVISIONS	 	 	48	 
	Section 8.01.
	 	Disbursement Not Waiver	 	 	48	 
	Section 8.02.
	 	No Third-Party Beneficiaries	 	 	49	 
	Section 8.03.
	 	Documentation Etc. Satisfactory	 	 	49	 
	Section 8.04.
	 	Lender’s Determination Conclusive	 	 	49	 
	Section 8.05.
	 	Notices	 	 	49	 
	Section 8.06.
	 	Amendments and Waivers	 	 	49	 
	Section 8.07.
	 	Assignment; Participation	 	 	50	 
	Section 8.08.
	 	Setoff	 	 	52	 
	Section 8.09.
	 	Successors and Assigns	 	 	52	 
	Section 8.10.
	 	Severability	 	 	52	 
	Section 8.11.
	 	Non-Waiver; Remedies Cumulative	 	 	52	 
	Section 8.12.
	 	Certain Waivers	 	 	53	 
	Section 8.13.
	 	Expenses; Indemnification	 	 	53	 
	Section 8.14.
	 	Gross-Up For Taxes	 	 	54	 
	Section 8.15.
	 	Counterparts	 	 	55	 
	Section 8.16.
	 	Governing Law; Jurisdiction	 	 	55	 
	Section 8.17.
	 	Integration	 	 	55	 
	Section 8.18.
	 	Releases	 	 	55	 
	Section 8.19.
	 	Substitution of Collateral	 	 	56	 
	Section 8.20.
	 	Exculpation	 	 	58	 
	Section 8.21.
	 	Letters of Credit	 	 	59	 
	Section 8.22.
	 	Concerning Irrevocable Authorizations	 	 	60	 
	Section 8.23.
	 	Usury	 	 	61	 
	Section 8.24.
	 	Documentation Satisfactory	 	 	61	 

3

 

 

 

FIRST AMENDMENT TO

AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

dated as of February ___, 2007

between

BANK OF AMERICA, N.A.,

as a Lender and Arranger

(“Lender”),

BANK OF AMERICA, N.A.,

as Administrative Agent

(“Administrative Agent”)

and

RD ABINGTON ASSOCIATES LIMITED PARTNERSHIP (“RD Abington”),

ACADIA TOWN LINE, LLC (“Acadia Town Line”),

RD METHUEN ASSOCIATES LIMITED PARTNERSHIP (“RD Methuen”),

RD ABSECON ASSOCIATES, L.P. (“RD Absecon”),

RD BLOOMFIELD ASSOCIATES, LIMITED PARTNERSHIP (“RD Bloomfield”),

RD HOBSON ASSOCIATES, L.P. (“RD Hobson”),

and

RD VILLAGE ASSOCIATES LIMITED PARTNERSHIP (“RD Village”),

as Borrowers

(RD Abington, Acadia Town Line, RD Methuen, RD Absecon, RD Bloomfield,

RD Hobson and RD Village, individually and collectively, as the context requires, “Borrower”)

 

 

 

 

FIRST AMENDMENT TO

AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

     FIRST AMENDMENT TO AMENDED AND RESTATED REVOLVING LOAN AGREEMENT (this “Amendment”) dated as
of February ___, 2007 by and among RD ABINGTON ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited
partnership (“RD Abington”), ACADIA TOWN LINE, LLC, a Connecticut limited liability company
(“Acadia Town Line”), RD METHUEN ASSOCIATES LIMITED PARTNERSHIP, a Massachusetts limited
partnership (“RD Methuen”), RD ABSECON ASSOCIATES, L.P., a Delaware limited partnership (“RD
Absecon”), RD BLOOMFIELD ASSOCIATES, LIMITED PARTNERSHIP, a Delaware limited partnership (“RD
Bloomfield”), RD HOBSON ASSOCIATES, L.P., a Delaware limited partnership (“RD Hobson”) and RD
VILLAGE ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership (“RD Village”; RD Abington,
Acadia Town Line, RD Methuen, RD Absecon, RD Bloomfield, RD Hobson and RD Village, collectively and
individually, as the context requires, “Borrower”) and BANK OF AMERICA, N.A. (in its individual
capacity and not as Administrative Agent, “BofA”; BofA and each other lender who may become a
Lender pursuant to Section 8.07, each, a “Lender” and collectively, “Lenders”) and BANK OF AMERICA,
N.A., as Administrative Agent for Lenders (together with its successors in such capacity,
“Administrative Agent”).

WITNESSETH:

     WHEREAS, Lender, Administrative Agent and Borrower are all of the parties to that certain
Amended and Restated Revolving Loan Agreement dated as of December 19, 2006 (the “Loan Agreement”;
capitalized terms used herein and not otherwise defined shall have the meanings attached to them in
the Loan Agreement); and

     WHEREAS, Lenders, Administrative Agent and Borrower have agreed to modify the Loan Agreement
in the manner hereinafter set forth.

     NOW, THEREFORE, in consideration of the mutual promises and agreements herein contained,
Borrower, Administrative Agent and Lenders hereby agree as follows:

          ARTICLE IX The definition of “Special Holdback” in Section 1.01 of the Loan Agreement is
hereby deleted in its entirety and replaced with the following new definition:

          “
‘Special Holdback’ — $1,330,000, provided, however, that the Special
Holdback shall be $0 (zero) if, as and when RD Bloomfield delivers to Administrative Agent
an estoppel from Circuit City Stores, Inc. (‘CC’) certifying that, pursuant to the lease
between RD Bloomfield and CC, RD Bloomfield has completed ‘Landlord’s Work’ under such
lease, CC has accepted occupancy of the demised premises, has opened for business to the
public therein and has received

 

 

all required ‘Landlord Reimbursements’ thereunder and that there is no default under
such lease.”

          ARTICLE X Except as modified hereby, the Loan Agreement remains unmodified and in full force
and effect. Borrower hereby acknowledges that it is justly indebted to Lender under the Loan
Agreement, and reaffirms its representations, warranties, agreements and covenants set forth in the
Loan Agreement and the other Loan Documents, as modified hereby.

          ARTICLE XI Borrower represents and warrants that there exist no defenses, offsets or
counterclaims with respect to its obligations under any of the Loan Documents.

          ARTICLE XII Borrower agrees to pay Lender’s costs and expenses, including, without limitation,
reasonable attorneys’ fees and expenses in connection with the preparation, execution and delivery
of this Amendment.

          ARTICLE XIII The terms and provisions hereof shall be binding upon and inure to the benefit of
the parties hereto and their heirs, representatives, successors and assigns.

          ARTICLE XIV This Amendment and the rights and obligations of the parties hereto shall in all
respects be governed by, and construed and enforced in accordance with, the laws of the State of
New York (without giving effect to New York’s choice of law principles).

          ARTICLE XV This Amendment may be executed in multiple counterparts, each of which shall
constitute an original and together which shall constitute but one and the same instrument.

[Remainder of page intentionally left blank]

2

 

     IN WITNESS WHEREOF, the parties have executed and delivered this Amendment as of the day and
year first above written, intending the same to take effect as a sealed instrument. The execution
hereof by Borrower, Administrative Agent and Lenders constitutes a certification by the party or
parties executing on its behalf that each of them duly holds and is incumbent in the position
indicated under his or her name.

	 	 	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A. (as Lender and Administrative Agent)	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	By	 	 	 	 	 	 
	 
	 	 	 	Denise M. Smyth	 	 	 	 
	 
	 	 	 	Senior Vice President	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	RD BLOOMFIELD ASSOCIATES, LIMITED PARTNERSHIP, a Delaware limited partnership
	 	 	 	 
	 	 	RD HOBSON ASSOCIATES, L.P., a Delaware limited partnership
	 	 	 	 
	 	 	RD VILLAGE ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership
	 	 	 	 
	 	 	RD ABINGTON ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership
	 	 	 	 
	 	 	RD METHUEN ASSOCIATES LIMITED PARTNERSHIP, a Massachusetts limited partnership
	 	 	 	 
	 
	 	 	By:   Acadia
Property Holdings, LLC, its general
         partner	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:   Acadia
Realty Limited Partnership, its sole
         member	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:   Acadia Realty Trust, its general partner	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	By	 	 	 	 	 	 
	 
	 	 	 	Robert Masters	 	 	 	 
	 
	 	 	 	Senior Vice President	 	 	 	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	RD ABSECON ASSOCIATES, L.P., a Delaware limited
partnership	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By: 	 	RD Absecon, Inc., a Delaware corporation, its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	By	 	 	 	 	 	 
	 
	 	 	 	Robert Masters	 	 	 	 
	 
	 	 	 	Senior Vice President	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ACADIA TOWN LINE, LLC, a Connecticut limited liability company	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	By:	 	Acadia Realty Limited Partnership,
a Delaware limited partnership, its sole member	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	By:	 	Acadia Realty Trust, a Maryland real estate	 	 	 	 
	 
	 	 	 	investment trust, its general partner	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	By	 	 	 	 	 	 
	 
	 	 	 	Robert Masters	 	 	 	 
	 
	 	 	 	Senior Vice President	 	 	 	 

ii

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