Document:

Promissory Note

 Exhibit 10.(a) 
 PROMISSORY NOTE 
  

			
	$125,000,000.00	 	
		
	March 23, 2011	 	Loan No. 706108495

 FOR
VALUE RECEIVED, CLARENDON CENTER LLC, a Delaware limited liability company (“Borrower”), promises to pay to the order of THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, a New Jersey corporation (“Lender,” which shall
also mean successors and assigns who become holders of this Note), at 2100 Ross Avenue, Suite 2500, Dallas, Texas 75201, the principal sum of ONE HUNDRED TWENTY-FIVE MILLION AND NO/100 U.S. DOLLARS ($125,000,000.00), with interest on the unpaid
balance (“Balance”) at the rate of five and thirty-one hundredths percent (5.31%) per annum (“Note Rate”) from and including the date of the first disbursement of Loan proceeds under this Note (“Funding
Date”) until Maturity (defined below). Capitalized terms used without definition shall have the meanings ascribed to them in the Instrument (defined below). 
 1. Regular Payments. Principal and interest shall be payable as follows: 

(a) Interest from and including the Funding Date to April 5, 2011 shall be due and payable on the Funding Date. 

(b) Principal and interest shall be paid in one hundred eighty (180) monthly installments of Seven Hundred Fifty-Three Thousand Four
Hundred Ninety and 96/100 Dollars ($753,490.96) each, commencing on May 5, 2011 and continuing on the fifth (5th) day of each succeeding month to and including April 5, 2026. Each payment due date is referred to as a “Due
Date.” 
 (c) The entire Obligations shall be due and payable on April 5, 2026 (“Maturity Date”).
“Maturity” shall mean the Maturity Date or earlier date that the Obligations may be due and payable by acceleration by Lender as provided in the Documents. 
 (d) Interest on the Balance for any full month shall be calculated on the basis of a three hundred sixty (360) day year consisting of twelve (12) months of thirty (30) days each. For any
partial month, interest shall be due in an amount equal to (i) the Balance multiplied by (ii) the Note Rate divided by (iii) 360 multiplied by (iv) the number of days during such partial month that any Balance is outstanding to
(but excluding) the date of payment. 
 (e) Provided there is no Event of Default, upon the occurrence of a principal paydown in
excess of $2,500,000.00 pursuant to any of Sections 3.07(b), 3.08(c) or 5.03 of the Instrument, the monthly principal and interest payments required under Section 1(b) above shall be adjusted, commencing with the next payment due after such
principal paydown, by reducing the monthly principal and interest payment to an amount equal to the unpaid principal balance of the Loan immediately after such principal paydown times the effective monthly loan constant immediately prior to
such principal paydown. The term “effective monthly loan constant” shall mean the quotient obtained by dividing (x) the initial monthly principal and interest payment (as set forth in Section 1(b) above) by (y) the unpaid
principal balance of the Loan immediately prior to such principal paydown. The effective monthly loan constant shall be determined by Lender and shall be binding on Borrower absent a clear mathematical calculation error. 

  

			
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 2. Late Payment and Default Interest. 

(a) Late Charge. If any scheduled payment due under this Note is not fully paid by its Due Date (other than
the principal payment due on the Maturity Date), a charge of $750.00 per day (the “Daily Charge”) shall be assessed for each day that elapses from and after the Due Date until such payment is made in full (including the date payment
is made); provided, however, that if any such payment, together with all accrued Daily Charges, is not fully paid by the fourteenth (14th) day following the applicable Due Date, a late charge equal to the lesser of (i) four percent (4%) of
such payment or (ii) the maximum amount allowed by law (the “Late Charge”) shall be assessed and be immediately due and payable; provided, however, neither the Daily Charge nor the Late Charge shall be due on the principal
payment due on the Maturity Date. The Late Charge shall be payable in lieu of Daily Charges that shall have accrued. The Late Charge may be assessed only once on each overdue payment. These charges shall be paid to defray the expenses incurred by
Lender in handling and processing such delinquent payment(s) and to compensate Lender for the loss of the use of such funds. The Daily Charge and Late Charge shall be secured by the Documents. The imposition of the Daily Charge, Late Charge, and/or
requirement that interest be paid at the Default Rate (defined below) shall not be construed in any way to (i) excuse Borrower from its obligation to make each payment under this Note promptly when due or (ii) preclude Lender from
exercising any rights or remedies available under the Documents upon an Event of Default. 
 (b) Acceleration. Upon any
Event of Default, Lender may declare the Balance, unpaid accrued interest, the Prepayment Premium (defined below) and all other Obligations immediately due and payable in full. 

(c) Default Rate. Upon an Event of Default or if the Obligations are not paid in full at Maturity, whether by acceleration (due to
a voluntary or involuntary Event of Default) or otherwise, the entire Obligations (excluding accrued but unpaid interest if prohibited by law) shall bear interest at the Default Rate. The “Default Rate” shall be the lesser of
(i) the maximum rate allowed by law or (ii) five percent (5%) plus the greater of (A) the Note Rate or (B) the prime rate (for corporate loans at large United States money center commercial banks) published in The Wall
Street Journal on the first Business Day (defined below) of the month in which the Event of Default or Maturity (as the case may be) occurs and on the first Business Day of every month thereafter. The term “Business Day” shall
mean each Monday through Friday except for days on which commercial banks are not authorized to open or are required by law to close in New York, New York. 
 3. Application of Payments. Until an Event of Default occurs, all payments received under this Note shall be applied in the following order: (a) to unpaid Daily Charges, Late Charges and costs
of collection; (b) to any Prepayment Premium due; (c) to interest due on the Balance; and (d) then to the Balance. After an Event of Default, all payments shall be applied in any order determined by Lender in its sole discretion.

 4. Prepayment. This Note may be prepaid, in whole or in part, upon at least thirty (30) days’ prior written notice to Lender
and upon payment of all accrued interest (and other Obligations due under the Documents) and a prepayment premium (“Prepayment Premium”) equal to the greater of (a) one percent (1%) of the principal amount being prepaid
multiplied by the quotient of the number of full months remaining until the Maturity Date, calculated as of the prepayment date, divided by the number of full months comprising the term of this Note, or (b) the Present Value of the Loan
(defined below) less the amount of principal and accrued interest (if any) being prepaid, calculated as of the prepayment date. The Prepayment Premium shall be due and payable, except as provided in the Instrument, this Section 4,
Section 5 hereinbelow, or as limited by law, upon any prepayment of this Note, whether voluntary or involuntary, and Lender shall not be obligated to accept any prepayment of this Note unless it is

  

			
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accompanied by the Prepayment Premium, all accrued interest and all other Obligations due under the Documents. Lender shall notify Borrower of the amount of and the calculation used to determine
the Prepayment Premium. Borrower agrees that (a) Lender shall not be obligated to actually reinvest the amount prepaid in any Treasury obligation and (b) the Prepayment Premium is directly related to the damages that Lender will suffer as
a result of the prepayment. The “Present Value of the Loan” shall be determined by discounting all scheduled payments remaining to the Maturity Date attributable to the amount being prepaid at the Discount Rate (defined below). If
prepayment occurs on a date other than a Due Date, the actual number of days remaining from the date of prepayment to the next Due Date will be used to discount within this period. The “Discount Rate” is the rate which, when
compounded monthly, is equivalent to the Treasury Rate (defined below), when compounded semi-annually. The “Treasury Rate” is the semi-annual yield on the Treasury Constant Maturity Series with maturity equal to the remaining
weighted average life of the Loan, for the week prior to the prepayment date, as reported in Federal Reserve Statistical Release H.15 - Selected Interest Rates, conclusively determined by Lender (absent a clear mathematical calculation error) on the
prepayment date. The rate will be determined by linear interpolation between the yields reported in Release H.15, if necessary. If Release H.15 is no longer published, Lender shall select a comparable publication to determine the Treasury Rate.
Notwithstanding any of the foregoing to the contrary, however, the Prepayment Premium shall be in the following amounts if the prepayment date occurs during the following time periods: 

 

	 	A.	If the prepayment date occurs during the fourteenth (14th) year of the term of the Loan, Borrower shall pay a Prepayment Premium equal to the product of two
percent (2%) multiplied by the amount of principal of the Loan being prepaid on such date. 

  

	 	B.	Except as set forth in Subpart (C) below, if the prepayment date occurs during the fifteenth (15th) year of the term of the Loan, Borrower shall pay a
Prepayment Premium equal to the product of one percent (1%) multiplied by the amount of principal of the Loan being prepaid on such date. 

  

	 	C.	If the prepayment date occurs during the last ninety (90) days of the term of the Loan, no Prepayment Premium shall be due. 

With respect to the foregoing provisions, Borrower hereby expressly agrees as follows: 

(a) The Note Rate provided herein has been determined based on the sum of (i) the treasury rate in effect at the time the Note Rate
was determined under the Loan application submitted to Lender, plus (ii) an interest rate spread over such treasury rate, which together represent Lender’s agreed-upon return for making the proceeds of the Loan hereunder available to
Borrower over the term of such Loan. 
 (b) The determination of the Note Rate, and in particular the aforesaid interest rate
spread, were based on the expectation and agreement of Borrower and Lender that the principal sums advanced hereunder would not be prepaid during the term of this Note, or if any such prepayment occurs, the Prepayment Premium (calculated in the
manner set forth above) would apply (except as expressly permitted by this Note). 
 (c) The Lender’s business involves
making financial commitments to others based in part on the returns it expects to receive from this Note and other similar loans made by Lender, and Lender’s financial performance as a business depends not only on the returns from each loan or
investment it makes but also upon the aggregate amounts of the loans and investments it is able to make over any given period of time. 

  

			
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 (d) In the event of a prepayment hereunder, Lender will be required to redeploy the funds
received into other loans or investments, which (i) may not provide a return to Lender comparable to the return Lender anticipates based on the Note Rate and (ii) may reduce the total amount of loans or investments Lender is able to make
during the term of the Loan, which in turn may impair the profitability of Lender’s business. Therefore, in order to compensate Lender for the potential impact and risks to its business of prepayments under this Note, Lender has limited the
Borrower’s right to prepay this Note and has offered the method of calculation of the Prepayment Premium set forth above. 

(e) Borrower acknowledges that (i) Lender could have determined that it would not permit any prepayments under the Note during its
term, and therefore, in electing to permit prepayments hereunder, Lender is entitled to determine and negotiate the terms on which it will accept prepayments of its loans, and (ii) Borrower could have elected to negotiate more permissive
prepayment provisions and/or a more favorable manner of calculating the Prepayment Premium, but in such event the applicable interest rate spread, and therefore the Note Rate, would have been higher to compensate Lender for the potential loss of
income on account of the risk that Borrower might elect to prepay this Note at an earlier time and/or for a lesser Prepayment Premium than set forth herein. 
 Therefore, in consideration of Lender’s agreement to the Note Rate set forth herein, and in recognition of Lender’s reliance on the prepayment provisions of this Note (including the method of
calculating the Prepayment Premium), Borrower agrees that the manner of calculation of the Prepayment Premium set forth in this Note represents bargained-for compensation to Lender for granting to Borrower the privilege of prepaying this Note on the
terms set forth herein and for the potential loss of future income to Lender arising from having to redeploy the amounts prepaid under this Note into other loans or investments. As such, the Prepayment Premium constitutes reasonable compensation to
Lender for making the Loan on the terms reflected in this Note and does not represent a penalty. 
 5. No Usury. Under no circumstances
shall the aggregate amount paid or to be paid as interest under this Note exceed the highest lawful rate permitted under applicable usury law (“Maximum Rate”). If under any circumstances the aggregate amounts paid on this Note shall
include interest payments which would exceed the Maximum Rate, Borrower stipulates that payment and collection of interest in excess of the Maximum Rate (“Excess Amount”) shall be deemed the result of a mistake by both Borrower and
Lender, and Lender shall promptly credit the Excess Amount against the Balance (without Prepayment Premium or other premium) or refund to Borrower any portion of the Excess Amount which cannot be so credited. 

6. Security and Documents Incorporated. This Note is the Note referred to and secured by, among other things, that certain Deed of Trust, Security
Agreement and Fixture Filing of even date herewith from Borrower to Lawyers Title Realty Services, Inc., as trustee, conveying the Property for the benefit of Lender (the “Instrument”). Borrower shall observe and perform all of the
terms and conditions in the Documents. The Documents are incorporated into this Note as if fully set forth in this Note. 
 7. Treatment of
Payments. All payments under this Note shall be made, without offset or deduction, (a) in lawful money of the United States of America at the office of Lender or at such other place (and in the manner) Lender may specify by written notice
to Borrower, (b) in immediately available federal funds, and (c) if received by Lender prior to 2:00 p.m. Eastern Time at such place, shall be credited on that day, or, if received by Lender at or after 2:00 p.m. Eastern Time at such
place, shall, at Lender’s option, be credited on the next Business Day. Initially (unless waived by Lender), and until Lender shall direct Borrower otherwise, Borrower shall make all payments due under this Note in the manner set forth in
Section 3.13 of the Instrument. If any Due Date falls on a day which is not a Business Day, then the Due Date shall be deemed to have fallen on the next succeeding Business Day. 

  

			
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 8. Limited Recourse Liability. Except to the extent set forth in Paragraph 8 and Paragraph 9 of this
Note, Borrower shall not have any personal liability for the Obligations. Notwithstanding the preceding sentence, Lender may bring a foreclosure action or other appropriate action to enforce the Documents or realize upon and protect the Property
(including, without limitation, naming Borrower and any other necessary parties in the actions) and IN ADDITION BORROWER AND SAUL CENTERS, INC. (SINGULARLY OR COLLECTIVELY, THE “RECOURSE PARTIES”) SHALL HAVE JOINT AND SEVERAL
PERSONAL LIABILITY FOR: 
 (a) any amounts accrued and/or payable under any Anti-Terrorism Laws provisions and indemnities
or guaranties and any environmental and ERISA provisions and indemnities in the Documents and the duty to defend with respect to such indemnities as set forth in the Documents (including, without limitation, the provisions of Sections 8.04, 8.06 and
8.07 of the Instrument and the Environmental Indemnity); 
 (b) the amount of any assessments and taxes (accrued and/or payable)
with respect to the Property and the amount of any recordation or similar such tax payable with respect to the recording of the Instrument; 
 (c) the amount of any unapplied security deposits (and the amount of security deposits that were applied to a Lease during the period when an Event of Default under the Documents was continuing), rents
prepaid more than one (1) month in advance or prepaid expenses of tenants to the extent not turned over to (i) Lender upon foreclosure, sale (pursuant to power of sale), or conveyance in lieu thereof, or (ii) a receiver or trustee for
the Property after appointment; 
 (d) the amount of any insurance proceeds or condemnation awards neither turned over to Lender
nor used in compliance with Sections 3.07 and 3.08 of the Instrument; 
 (e) damages suffered or incurred by Lender as a result
of Borrower (i) entering into a new Lease, (ii) entering into an amendment or termination of an existing Lease, or (iii) accepting a termination, cancellation or surrender of an existing Lease (other than with respect to a Lease with
a Major Tenant which is addressed in Paragraphs 8(n) and 9(d) below), in each case to the extent such action is in breach of the leasing restrictions set forth in Section 7 of the Assignment (as defined in the Instrument); 

(f) damages suffered or incurred by Lender by reason of any waste of the Property; 

(g) the amount of any Rents or other income from the Property received by any of the Recourse Parties (i) during the period of time
after an Event of Default under the Documents and until the earlier to occur of (A) the cure of such Event of Default and (B) the Transfer of Possession Date (defined below) and (ii) not otherwise applied to the indebtedness under the
Documents or to the current (not deferred) operating expenses of the Property. As used in this subparagraph 8(g), the term “Transfer of Possession Date” shall mean the first to occur of: (i) the date on which Lender obtains
title to the Property as a result of a foreclosure, (ii) the date on which a receiver is appointed for the benefit of the Property, or (iii) the date on which Borrower conveys the Property to Lender in compliance with all of the following
requirements, which shall require that Borrower, at Borrower’s sole cost and expense, shall deliver or cause to be delivered to Lender (A) a duly executed and acknowledged deed, in customary form for the jurisdiction in which the Property
is located and in form and substance satisfactory to Lender, duly signed and acknowledged by Borrower conveying all of Borrower’s right title and interest in the Property to Lender or Lender’s nominee, as determined by Lender in its sole
discretion, (B) a duly executed and acknowledged bill of sale and assignment (in form and substance satisfactory to Lender) conveying to 

  

			
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Lender or Lender’s nominee all of Borrower’s right, title and interest to all Personal Property, (C) a duly executed affidavit (in form and substance satisfactory to Lender) of
Borrower stating Borrower’s United States taxpayer identification number and that Borrower is not a foreign person as defined in Internal Revenue Code Section 1445, (D) a duly executed release of Lender and/or Lender’s nominee
(in form and substance satisfactory to Lender) by Borrower and any guarantor, (E) originals of leases, licenses and permits pertaining to the Property, (F) a duly executed settlement statement (in form and substance satisfactory to
Lender), (G) the irrevocable and unconditional commitment of a title company acceptable to Lender to issue the owner’s title insurance policy described below, (H) appropriate UCC searches and/or certificates evidencing that there are
no liens against any of Borrower’s personal property pertaining to the Property, (I) all other documents affecting title to or possession of the Property and necessary to transfer or assign such title or possession to Lender, or at
Lender’s option, Lender’s nominee, (J) the amount of all funds applicable to the Property and in the possession of Borrower or Borrower’s management company, (K) a non merger endorsement to Lender’s existing
mortgagee’s title policy, (L) any and all state, county, or local transfer tax forms covering the transfer provided hereby, all of which must be duly executed by Borrower, (M) a Form 1099, duly executed by Borrower, setting forth its
name, address, tax identification number, description of the Property and the funding date of the Loan, (N) an amount in cash equal to the sum of (i) all transfer or similar taxes payable in connection with such transfer, (ii) all
legal fees and expenses incurred by Lender in connection with reviewing all documentation and closing such deed in lieu transfer, (iii) the cost of the owner’s title policy described below, and (iv) all other third party costs and
expenses incurred by Lender in connection with such deed in lieu transfer, (O) all other customary documents, instruments or forms (all in form and substance satisfactory to Lender) required for the transfer of title in the jurisdiction in
which the Property is located, duly signed and acknowledged by Borrower, (P) such owner’s affidavits and other certifications, duly signed and acknowledged by Borrower, as may be reasonably necessary for Lender to obtain an ALTA
owner’s policy of title insurance for the Property, which shall show no liens, encumbrances or exceptions to title other than those set forth in Lender’s mortgagee’s policy of title insurance obtained by Lender in connection with the
Loan and issued on or about the date of this Instrument, (Q) a property condition report and an environmental assessment report both of which must be prepared by consultants approved by Lender and both such reports must show no conditions with
respect to the Property that are unacceptable to Lender, and (R) such other documents, deliveries, and certifications as Lender shall reasonably require; PROVIDED, HOWEVER, THAT THE RECOURSE PARTIES SHALL HAVE PERSONAL LIABILITY for amounts
paid as expenses to a person or entity related to or affiliated with any of the Recourse Parties except for (A) reasonable salaries for on-site employees, (B) a reasonable allocation of the salaries of off-site employees for accounting and
management, and (C) management fees and out-of-pocket expenses of Borrower’s management company (including management fees and expenses paid to Borrower’s affiliated management company) relating to the Property, but in no event shall
such fees or expenses be greater than prevailing market rates for any such services; 
 (h) the face amount of any letter of
credit required under the Documents or otherwise in connection with the Loan that Borrower fails to maintain; 
 (i) during an
Event of Default under the Documents (1) the amount of any security deposit cashed or applied by Borrower, any termination fee, cancellation fee or any other fee received by, or on behalf of, any of the Recourse Parties in connection with any
lease termination, cancellation, surrender or expiration, and (2) any judgment, settlement or other recovery (excluding recoveries for operating expenses) received by, or on behalf of, any of the Recourse Parties against or from any tenant
under or any guarantor of, any Lease (with any item described in (1) or (2) above being herein called a “Recovery”), not applied to the indebtedness under the Documents; 

  

			
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 (j) with respect to any Lease that provides more than ten percent (10%) of the gross
annual income from the Property during the twelve month period preceding payment of a Recovery with respect to such Lease, the amount of any Recovery if such Recovery is greater than one (1) month’s base rent payable under the applicable
Lease, which is received by, or on behalf of, any of the Recourse Parties at any time during the term of the Loan and which is not paid to Lender (or an escrow agent selected by Lender) to be disbursed for the payment of Lender approved
(1) tenant improvements and/or (2) market leasing commissions as provided in the Assignment, except as may be otherwise agreed in writing by Lender; provided that such escrow shall not be required (or shall be released) if the Lease (which
is the subject of said Recovery) is fully reinstated without change to the terms of said Lease; 
 (k) following the occurrence
and during the continuation of an Event of Default under the Documents, all reasonable attorneys’ fees and other expenses incurred by Lender in enforcing the Documents if any of the Recourse Parties contests, delays, or otherwise hinders or
opposes (including, without limitation, the filing of a bankruptcy by any of the Recourse Parties) any of Lender’s enforcement actions; provided, however, that if in such action the Recourse Parties successfully prove that no Event of Default
occurred under the Documents, the Recourse Parties shall not be required to reimburse Lender for such attorneys’ fees, allocated costs and other expenses; 
 (l) damages suffered or incurred by Lender as a result of Borrower’s breach or violation of Sections 2.10 and/or 3.21 of the Instrument; 

(m) damages suffered or incurred by Lender as a result of any involuntary lien or encumbrance on the Property that is not removed, bonded
off or otherwise discharged within sixty (60) days from the filing of such involuntary lien or encumbrance; and 
 (n)
damages suffered or incurred by Lender as a result of any modification of a Lease with a Major Tenant that increases the obligations of landlord, decreases the term, decreases or accelerates rent, relieves the tenant of any liabilities under any
such Lease with a Major Tenant, or extends the term of such Lease or grants options to extend or terminate the term of such Lease in each case in breach of the leasing restrictions set forth in the Assignment. 

9. Full Recourse Liability. Notwithstanding the provisions of Paragraph 8 of this Note, the RECOURSE PARTIES SHALL HAVE JOINT AND SEVERAL
PERSONAL LIABILITY for the Obligations if: 
 (a) there shall be any transfer of the Property or interests in Borrower in
breach or violation of Article V of the Instrument or there shall be any secondary financing liens or any voluntary liens placed on or encumbering the Property in breach or violation of the Instrument; or 

(b) there shall be any fraud or intentional misrepresentation by any of the Recourse Parties in connection with the Property, the
Documents, the Loan application, or any other aspect of the Loan; or 
 (c) the Property or any part thereof shall become an
asset in (i) a voluntary bankruptcy or insolvency proceeding or (ii) an involuntary bankruptcy or insolvency proceeding which is not dismissed within ninety (90) days of filing; provided, however, that this Paragraph 9(c) shall not
apply if (A) an involuntary bankruptcy is filed by Lender or (B) the involuntary filing was initiated by a third-party creditor independent of any collusive action, participation or collusive communication by (1) Borrower,
(2) any partner, shareholder or member of Borrower or Borrower’s general partner or manager, or (3) any of the Recourse Parties; or 

  

			
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 (d) Borrower (i) enters into a Lease with a Major Tenant, (ii) consents to, or
otherwise accepts, an assignment of a Lease with a Major Tenant, which assignment would result in the Major Tenant being relieved from any liability under such Lease, or (iii) accepts the termination, cancellation or surrender of any Lease with
a Major Tenant, in each case, only if in breach of the leasing restrictions set forth in the Assignment; or 
 (e) the
Instrument or any of the other Documents are determined to be fraudulent conveyances or preferences or are otherwise determined to be void pursuant to any principles limiting the rights of creditors, whether such claims, demands or assertions are
made under the Bankruptcy Code (as amended or replaced from time to time), including, without limitation, under Sections 544, 547 or 548 thereof, or under any applicable state fraudulent conveyance statues or similar laws. 

10. Guaranty. Notwithstanding the provisions of Paragraph 8 or Paragraph 9 of this Note, Borrower shall be fully liable for all amounts payable
under that certain Partial Recourse Guaranty (the “Recourse Guaranty”), dated of even date herewith, made by Saul Centers, Inc. in favor of Lender unless and until the Recourse Guaranty is terminated in accordance with its terms.

 11. Joint and Several Liability. This Note shall be the joint and several obligation of Borrower and all other makers and endorsers,
if any, and shall be binding upon them and their respective successors and assigns and shall inure to the benefit of Lender and its successors and assigns. 
 12. Unconditional Payment. Borrower is and shall be obligated to pay principal, interest and any and all other amounts which became payable hereunder or under the other Documents absolutely and
unconditionally and without abatement, postponement, diminution or deduction and without any reduction for counterclaim or setoff. In the event that at any time any payment received by Lender hereunder shall be deemed by a court of competent
jurisdiction to have been a voidable preference or fraudulent conveyance under any bankruptcy, insolvency or other debtor relief law, then the obligation to make such payment shall survive any cancellation or satisfaction of this Note or return
thereof to Borrower and shall not be discharged or satisfied with any prior payment thereof or cancellation of this Note, but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof, and such
payment shall be immediately due and payable upon demand. 
 13. Certain Waivers. Borrower and all others who may become liable for the
payment of all or any part of the Obligations do hereby severally waive presentment and demand for payment, notice of dishonor, protest and notice of protest, notice of non-payment and notice of intent to accelerate the maturity hereof (and of such
acceleration), except for notices expressly required pursuant to the terms of the Documents. No release of any security for the Obligations or extension of time for payment of this Note or any installment hereof, and no alteration, amendment or
waiver of any provision of this Note, the Instrument or the other Documents shall release, modify, amend, waive, extend, change, discharge, terminate or affect the liability of Borrower, and any other who may become liable for the payment of all or
any part of the Obligations, under this Note, the Instrument and the other Documents. 
 14. WAIVER OF TRIAL BY JURY. EACH OF BORROWER
AND LENDER HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM FILED BY EITHER PARTY, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN, THE
DOCUMENTS, OR ANY ALLEGED ACTS OR OMISSIONS OF LENDER OR BORROWER IN CONNECTION THEREWITH. 

  

			
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 15. Local Law Provision - Changes in Laws Regarding Taxation. In the event of the passage of any law
of the Commonwealth of Virginia, the County of Arlington or any other applicable taxing authority deducting from the value of real property for the purpose of taxation any lien or encumbrance thereon or changing in any way the laws for the taxation
of mortgages or debts secured by mortgages for federal, state or local purposes or the manner of the collection of any such taxes, and imposing a tax (other than a tax on income, revenue, return of principal or reserves or the lack thereof), either
directly or indirectly, on the Instrument, this Note, any of the other Documents or the entire outstanding principal balance of this Note, Borrower shall, if permitted by law, pay any tax imposed as a result of any such law within the statutory
period or within twenty (20) days after demand by Lender, whichever is less; provided however, that if, in the opinion of counsel for Lender, Borrower is not permitted by law to pay such taxes, Lender shall have the right, at its option, to
declare the entire outstanding principal balance of this Note immediately due and payable (without any Prepayment Premium) upon one hundred twenty (120) days’ prior written notice to Borrower. 

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 IN WITNESS WHEREOF, this Note has been executed by Borrower as of the date first set forth
above. 
  

					
	BORROWER:
	
	CLARENDON CENTER LLC, a Delaware limited liability company
		
	By:	 	Saul Centers, Inc., a Maryland corporation, its Manager
			
		 	By:	 	 /s/ B. Francis Saul II

		 	Name:	 	 B. Francis Saul II

		 	Title:	 	 Chief Executive Officer

	
	[CORPORATE SEAL]

  

			
	Prudential Loan No. 706108495	  	BORROWER’S INITIALS:             
	 Clarendon Center \Promissory Note
	  	

 10Deed of Trust, Security Agreement and Fixture Filing

 Exhibit 10.(b) 
 PREPARED OUTSIDE THE COMMONWEALTH 
 OF VIRGINIA BY: 

Seyfarth Shaw LLP 
 1075 Peachtree Street, N.E.

 Suite 2500 
 Atlanta, Georgia
30309-3962 
 Attention: James H. Kaminer, Jr., Esq. 
 Prudential Deal Name: Clarendon Center 
 Prudential Loan Number: 706108495 

RPC Nos.: 18012004 and 18013011 
 UPON
RECORDATION RETURN TO: 
 Commonwealth Land Title Insurance Company 
 1015 15th Street, NW 
 Suite 300 
 Washington, DC 20005 
 Attn: David P. Nelson 

 
  

 
 CLARENDON CENTER LLC, as grantor

 (Borrower) 
 to 
 LAWYERS TITLE REALTY SERVICES, INC., as trustee 

(Trustee) 
 for
the benefit of 
 THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, as beneficiary 

(Lender) 
  

 
 DEED OF TRUST,
SECURITY AGREEMENT AND FIXTURE FILING 
  

 
  

											
		 		 	Dated:	  	As of March 23, 2011
				
		 		 	Location:	  	 3000 Wilson Boulevard,
 3030 Clarendon Boulevard, and
 1200 N. Garfield Street

Arlington, Virginia

				
		 		 	County:	  	Arlington

  

 
  

This Deed of Trust, Security Agreement and Fixture Filing (this “Deed of Trust”), securing the principal sum of $125,000,000, is a permanent
loan deed of trust being recorded within three years after the recording of the construction loan deed of trust encumbering the same real property, which construction loan deed of trust secured the principal sum of $157,500,000 and was recorded
May 14, 2008 in Deed Book 4189 at page 1758 among the Land Records of Arlington County, VA, with recordation tax having been paid on such principal sum of $157,500,000. Accordingly, pursuant to Section 58.1-804(C) of the Code of Virginia,
this Deed of Trust is exempt from recordation tax. 

 TABLE OF CONTENTS 

 

			
	 	  	 Page

		
	 ARTICLE I - OBLIGATIONS
	  	3
	 Section 1.01 Obligations
	  	3
	 Section 1.02 Documents
	  	3
		
	 ARTICLE II - REPRESENTATIONS AND WARRANTIES
	  	3
	 Section 2.01 Title, Legal Status and Authority
	  	3
	 Section 2.02 Validity of Documents
	  	3
	 Section 2.03 Litigation
	  	4
	 Section 2.04 Status of Property
	  	4
	 Section 2.05 Tax Status of Borrower
	  	5
	 Section 2.06 Bankruptcy and Equivalent Value
	  	5
	 Section 2.07 Disclosure
	  	5
	 Section 2.08 Illegal Activity
	  	5
	 Section 2.09 OFAC Lists
	  	5
	 Section 2.10 Property as Single Asset
	  	6
		
	 ARTICLE III - COVENANTS AND AGREEMENTS
	  	6
	 Section 3.01 Payment of Obligations
	  	6
	 Section 3.02 Continuation of Existence
	  	6
	 Section 3.03 Taxes and Other Charges
	  	7
	 Section 3.04 Defense of Title, Litigation and Rights under Documents
	  	8
	 Section 3.05 Compliance with Laws and Operation and Maintenance of Property
	  	8
	 Section 3.06 Insurance
	  	9
	 Section 3.07 Damage and Destruction of Property
	  	12
	 Section 3.08 Condemnation
	  	13
	 Section 3.09 Liens and Liabilities
	  	14
	 Section 3.10 Tax and Insurance Deposits
	  	15
	 Section 3.11 ERISA
	  	15
	 Section 3.12 Environmental Representations, Warranties, and Covenants
	  	16
	 Section 3.13 Electronic Payments
	  	18
	 Section 3.14 Inspection
	  	18
	 Section 3.15 Records, Reports, and Audits
	  	19
	 Section 3.16 Borrower’s Certificates
	  	21
	 Section 3.17 Intentionally Deleted
	  	21
	 Section 3.18 Additional Security
	  	21
	 Section 3.19 Further Acts
	  	21
	 Section 3.20 Compliance with Anti-Terrorism Regulations
	  	21
	 Section 3.21 Compliance with Property as Single Asset
	  	22
	 Section 3.22 Intentionally Deleted
	  	22
	 Section 3.23 Intentionally Deleted
	  	22
	 Section 3.24 Tax Status of Borrower
	  	23
	 Section 3.25 Disclosure
	  	23
	 Section 3.26 Illegal Activity
	  	23
		
	 ARTICLE IV - ADDITIONAL ADVANCES; EXPENSES; SUBROGATION
	  	23
	 Section 4.01 Expenses and Advances
	  	23

  
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	 Section 4.02 Subrogation
	  	23
		
	 ARTICLE V - SALE, TRANSFER, OR ENCUMBRANCE OF THE PROPERTY
	  	24
	 Section 5.01 Due-on-Sale or Encumbrance
	  	24
	 Section 5.02 One-Time Transfer
	  	26
	 Section 5.03 Partial Release
	  	28
		
	 ARTICLE VI - DEFAULTS AND REMEDIES
	  	30
	 Section 6.01 Events of Default
	  	30
	 Section 6.02 Remedies
	  	31
	 Section 6.03 Expenses
	  	33
	 Section 6.04 Rights Pertaining to Sales
	  	33
	 Section 6.05 Application of Proceeds
	  	33
	 Section 6.06 Additional Provisions as to Remedies
	  	34
	 Section 6.07 Waiver of Rights and Defenses
	  	34
	 Section 6.08 Additional Credit Bidding
	  	34
		
	 ARTICLE VII - SECURITY AGREEMENT
	  	34
	 Section 7.01 Security Agreement
	  	34
		
	 ARTICLE VIII - LIMITATION ON PERSONAL LIABILITY AND INDEMNITIES
	  	35
	 Section 8.01 Limited Recourse Liability
	  	35
	 Section 8.02 General Indemnity
	  	35
	 Section 8.03 Transaction Taxes Indemnity
	  	35
	 Section 8.04 ERISA Indemnity
	  	35
	 Section 8.05 Environmental Indemnity
	  	35
	 Section 8.06 Duty to Defend, Costs and Expenses
	  	36
	 Section 8.07 Recourse Obligation and Survival
	  	36
		
	 ARTICLE IX - ADDITIONAL PROVISIONS
	  	36
	 Section 9.01 Usury Savings Clause
	  	36
	 Section 9.02 Notices
	  	37
	 Section 9.03 Sole Discretion of Lender
	  	37
	 Section 9.04 Applicable Law and Submission to Jurisdiction
	  	37
	 Section 9.05 Construction of Provisions
	  	38
	 Section 9.06 Transfer of Loan
	  	38
	 Section 9.07 Miscellaneous
	  	39
	 Section 9.08 Entire Agreement
	  	39
	 Section 9.09 Concerning the Trustee
	  	40
	 Section 9.10 WAIVER OF TRIAL BY JURY
	  	40
		
	 ARTICLE X - LOCAL LAW PROVISIONS
	  	40
	 Section 10.01 Statutory Provisions
	  	40

  
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 EXHIBITS 
 Exhibit A- Legal Description of Land 
 Exhibit B- Description of Personal Property 

Exhibit C- Permitted Encumbrances 
 Exhibit D-
North Block Legal Description 

  
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 DEFINITIONS 
 The terms set forth below are defined in the following sections of this Instrument: 
  

							
		 	Act	 	Section 3.22(y)	 	
		 	Action	 	Section 9.04	 	
		 	Additional Funds	 	Section 3.07(c)	 	
		 	Affecting the Property	 	Section 3.12(a)	 	
		 	Affiliate Loans	 	Section 5.01(a)(vii)	 	
		 	All	 	Section 9.05(m)	 	
		 	Anti-Terrorism Regulations	 	Section 3.20(b)	 	
		 	Any	 	Section 9.05(m)	 	
		 	Application Election	 	Section 5.03(c)	 	
		 	Assessments	 	Section 3.03(a)	 	
		 	Assignment	 	Recitals, Section 2(B)	 	
		 	Award	 	Section 3.08(b)	 	
		 	Bankruptcy Code	 	Recitals, Section 2(A)(ix)	 	
		 	Control Requirements	 	Section 5.01(b)(i)	 	
		 	Costs	 	Section 4.01	 	
		 	Current Beneficial Owners	 	Section 5.01(b)(i)	 	
		 	Damage	 	Section 3.07(a)	 	
		 	Debt Service Coverage Ratio	 	Section 5.02	 	
		 	Demand	 	Section 9.12(n)	 	
		 	Deposits	 	Section 3.10	 	
		 	Documents	 	Section 1.02	 	
		 	Environmental Indemnity	 	Section 8.05	 	
		 	Environmental Law	 	Section 3.12(a)	 	
		 	Environmental Liens	 	Section 3.12(b)	 	
		 	Environmental Report	 	Section 3.12(a)	 	
		 	ERISA	 	Section 3.11	 	
		 	Event of Default	 	Section 6.01	 	
		 	Executive Order 13224	 	Section 2.09	 	
		 	First Notice	 	Section 3.15(b)	 	
		 	Flood Acts	 	Section 2.04(a)	 	
		 	Foreign Person	 	Section 2.05	 	
		 	Grace Period	 	Section 6.01(b)	 	
		 	Hazardous Materials	 	Section 3.12(a)	 	
		 	Impositions	 	Section 3.10	 	
		 	Improvements	 	Recitals, Section 2(A)(ii)	 	
		 	Include, Including	 	Section 9.05(f)	 	
		 	Indemnified Parties	 	Section 8.02	 	
		 	Indemnify	 	Section 8.02	 	
		 	Individual Beneficiaries	 	Section 2.09	 	
		 	Individual Shareholders	 	Section 2.09	 	
		 	Instrument	 	Preamble	 	
		 	Insurance Premiums	 	Section 3.10	 	
		 	Investors	 	Section 9.06	 	
		 	Land	 	Recitals, Section 2(A)(i)	 	
		 	Laws	 	Section 3.05(c)	 	
		 	Lease	 	Section 9.05(k)	 	

  
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		 	Leases	 	Recitals, Section 2(A)(ix)	 	
		 	Lender	 	Preamble	 	
		 	Lessee	 	Section 9.05(k)	 	
		 	Lessor	 	Section 9.05(k)	 	
		 	Loan	 	Recitals, Section 1	 	
		 	Loan to Value Ratio	 	Section 5.02	 	
		 	Losses	 	Section 8.02	 	
		 	Merger	 	Section 5.01(c)(ii)	 	
		 	Microbial Matter	 	Section 3.12(a)	 	
		 	Net Proceeds	 	Section 3.07(d)	 	
		 	NOI	 	Section 5.02	 	
		 	North Parcel Allocated Loan	 		 	
		 	    Amount	 	Section 5.03(a)	 	
		 	Note	 	Recitals, Section 1	 	
		 	Notice	 	Section 9.02	 	
		 	O & M Plan	 	Section 3.12(b)	 	
		 	Obligations	 	Section 1.01	 	
		 	OFAC	 	Section 2.09	 	
		 	OFAC Lists	 	Section 2.09	 	
		 	OFAC Violation	 	Section 3.20(c)	 	
		 	On Demand	 	Section 9.05(n)	 	
		 	Organization State	 	Section 2.01	 	
		 	Owned	 	Section 9.05(l)	 	
		 	Partial Release	 	Section 5.03	 	
		 	Permitted Encumbrances	 	Recitals, Section 2(B)	 	
		 	Permitted Family Members	 	Section 5.01(b)(i)	 	
		 	Person	 	Section 9.05(i)	 	
		 	Permitted Pledges	 	Section 5.01(b)(A)	 	
		 	Personal Property	 	Section 6.02(j)	 	
		 	Property	 	Recitals, Section 2(A)	 	
		 	Property Payables	 	Section 3.09	 	
		 	Property State	 	Section 2.01	 	
		 	Provisions	 	Section 9.05(j)	 	
		 	Rating Agency	 	Section 9.06	 	
		 	Recourse Guaranty	 	Section 5.02	 	
		 	Release	 	Section 3.12(a)	 	
		 	Release Parcel	 	Section 5.03	 	
		 	Remaining Property	 	Section 5.03	 	
		 	Rent Loss Proceeds	 	Section 3.07(c)	 	
		 	Rents	 	Recitals, Section 2(A)(x)	 	
		 	Restoration	 	Section 3.07(a)	 	
		 	Revenue Code	 	Section 2.05	 	
		 	Saul Parties	 	Section 5.01(b)(A)	 	
		 	Saul Parties’ Minimum	 		 	
		 	  Ownership Percentage	 	Section 5.01(b)(A)	 	
		 	Saul Permitted Transfers	 	Section 5.01(b)	 	
		 	SCI	 	Section 3.15(a)(i)	 	
		 	Second Notice	 	Section 3.15(b)	 	
		 	Securities	 	Section 9.06	 	
		 	Security Agreement	 	Section 7.01	 	

  
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		 	SHLP	 	Section 2.05	 	
		 	TADS	 	Section 5.02	 	
		 	Taking	 	Section 3.08(a)	 	
		 	Targeted Leasing Standard	 	Section 3.15(a)	 	
		 	Tenant	 	Recitals, Section 2(A)(vi)	 	
		 	Tenants	 	Section 9.05(k)	 	
		 	third parties	 	Section 5.01(c)(ii)	 	
		 	Transaction Taxes	 	Section 3.03(c)	 	
		 	Transfer	 	Section 5.01(b)(A)	 	
		 	Trustee	 	Preamble, Section 9.05(o)	 	
		 	U.C.C.	 	Section 2.02	 	
		 	Unenforceable Restrictions	 	Section 3.05(d)	 	
		 	Upon Demand	 	Section 9.05(n)	 	
		 	Violation	 	Section 3.11	 	

  
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 DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING 

THIS DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING (this “Instrument”) is made as of the 23rd day of March, 2011,
by CLARENDON CENTER LLC, a Delaware limited liability company, having its principal office and place of business at 7501 Wisconsin Avenue, Suite 1500 East, Bethesda, Maryland 20814, as grantor (“Borrower”), to LAWYERS TITLE REALTY
SERVICES, INC., a Virginia corporation, Trustee, having its principal place of business at 7130 Glen Forest Dr # 403, Richmond, VA 23226, and having a mailing address of c/o Commonwealth Land Title Insurance Company, 1015 15th Street, N.W., Suite
300, Washington, DC 20005, as trustee/grantee (“Trustee”), for the benefit of THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, a New Jersey corporation, having an office at c/o Prudential Asset Resources, Inc., 2100 Ross Avenue, Suite
2500, Dallas, Texas 75201, Attention: Asset Management Department; Reference Loan No. 706108495, as beneficiary (“Lender”). 
 RECITALS: 
 1. Borrower, by the terms of its Promissory Note executed on the same date as this
Instrument (“Note”) and in connection with the loan (“Loan”) from Lender to Borrower, is indebted to Lender in the principal sum of ONE HUNDRED TWENTY-FIVE MILLION AND NO/100 U.S. DOLLARS ($125,000,000.00).

 2. Borrower desires to secure the payment of and the performance of all of the obligations of Borrower under the Note and certain additional
Obligations (as defined in Section 1.01). 
 IN CONSIDERATION of Lender making the Loan to Borrower, and other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, Borrower irrevocably: 
 A. Grants, bargains, sells, assigns, transfers,
pledges, mortgages, warrants, and conveys to Trustee, for the benefit of Lender, and grants Trustee and Lender a security interest in, the following property, rights, interests and estates owned by Borrower (collectively, the
“Property”): 
 (i) The real property in Arlington County, Virginia and described in Exhibit A
(“Land”); 
 (ii) All buildings, structures and improvements (including fixtures) now or later located in or on
the Land (“Improvements”); 
 (iii) All easements, estates, and interests including hereditaments, servitudes,
appurtenances, tenements, mineral and oil/gas rights, water rights, air rights, development power or rights, options, reversion and remainder rights, and any other rights owned by Borrower and relating to or usable in connection with or providing
access to the Land or Improvements; 
 (iv) All right, title, and interest owned by Borrower in and to all land lying within the
rights-of-way, roads, or streets, open or proposed, adjoining the Land to the center line thereof, and all sidewalks, alleys, and strips and gores of land adjacent to or used in connection with the Land; 

(v) All right, title, and interest of Borrower in, to, and under, to the extent assignable, all plans, specifications, surveys, studies,
reports, permits, licenses, agreements, contracts, instruments, books of account, insurance policies, and any other documents relating to the use, construction, occupancy, leasing, activity, or operation of the Land or Improvements; 

  
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 (vi) All of the fixtures and personal property described in Exhibit B owned by
Borrower and replacements thereof; but excluding all personal property owned by any tenant (a “Tenant”) of the Property, the garage operator or any other license and/or service provider; 

(vii) All of Borrower’s right, title and interest in the proceeds (including conversion to cash or liquidation claims) of
(A) insurance relating to the Property and (B) all awards made for the taking by eminent domain (or by any proceeding or purchase in lieu thereof ) of the Property, including awards resulting from a change of any streets (whether as to
grade, access, or otherwise) and for severance damages; 
 (viii) All of Borrower’s right, title and interest in and to all
tax refunds, including interest thereon, tax rebates, tax credits, and tax abatements, and the right to receive the same, which may be payable or available with respect to the Property; 

(ix) All leasehold estates, ground leases, leases, subleases, licenses, or other agreements affecting the use, enjoyment or occupancy of
the Property now or later existing (including any use or occupancy arrangements created pursuant to Title 7 or 11 of the United States Code, as amended from time to time, or any similar federal or state laws now or later enacted for the relief of
debtors [the “Bankruptcy Code”]) and all extensions and amendments thereto (collectively, the “Leases”) and all of Borrower’s right, title and interest under the Leases, including all guaranties thereof;

 (x) All rents, issues, profits, royalties, receivables, use and occupancy charges (including all oil, gas or other mineral
royalties and bonuses), income and revenue and other benefits now or later derived from any portion or use of the Property (including, without limitation, any payments received with respect to any Tenant or the Property pursuant to the Bankruptcy
Code) and all cash, security deposits, advance rentals, or similar payments relating thereto (collectively, the “Rents”) and all proceeds from the cancellation, termination, surrender, sale or other disposition of the Leases, and
the right to receive and apply the Rents to the payment of the Obligations; and 
 (xi) All of Borrower’s rights and
privileges heretofore or hereafter otherwise arising in connection with or pertaining to the Property, including, without limiting the generality of the foregoing, all water and/or sewer capacity, all water, sewer and/or other utility deposits or
prepaid fees, and/or all water and/or sewer and/or other utility tap rights or other utility rights, any right or privilege of Borrower under any loan commitment, lease, contract, declaration of covenants, restrictions and easements or like
instrument, developer’s agreement, or other agreement with any third party pertaining to the ownership, development, construction, operation, maintenance, marketing, sale or use of the Property. 

B. Absolutely and unconditionally assigns, sets over, and transfers to Lender all of Borrower’s right, title, interest and estates in and to the
Leases and the Rents, subject to the terms and license granted to Borrower under that certain Assignment of Leases and Rents made by Borrower to Lender dated the same date as this Instrument (the “Assignment”), which document shall
govern and control the provisions of this assignment. 
 TO HAVE AND TO HOLD the Property unto Lender and Trustee, and their successors and
assigns forever, subject to the matters listed in Exhibit C (“Permitted Encumbrances”) and the provisions, terms and conditions of this Instrument. 

  
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 IN TRUST, WITH POWER OF SALE, to secure payment and performance of the Obligations in the time and manner
set forth in the Documents (defined below). 
 PROVIDED, HOWEVER, if Borrower shall pay and perform the Obligations as provided for in the
Documents (defined below) and shall comply with all the provisions, terms and conditions in the Documents, these presents and the estates hereby granted (subject to survival of certain obligations of Borrower set forth in Sections 3.11 and 3.12 and
Article VIII hereof) shall cease, terminate and be void. 
 IN FURTHERANCE of the foregoing, Borrower warrants, represents, covenants and agrees
as follows: 
 ARTICLE I - OBLIGATIONS 
 Section 1.01 Obligations. This Instrument is executed, acknowledged, and delivered by Borrower to secure and enforce the following obligations (collectively, the
“Obligations”): 
 (a) Payment of all obligations, indebtedness and liabilities under the Note and the other
Documents including any renewals, extensions, and amendments of the Documents; 
 (b) Performance of every obligation, covenant,
and agreement under the Documents including renewals, extensions, and amendments of the Documents; and 
 (c) Payment of all
sums advanced (including costs and expenses) by Lender pursuant to the Documents including renewals, extensions, and amendments of the Documents. 
 Section 1.02 Documents. The “Documents” shall mean this Instrument, the Note, the Assignment, and any other written agreement executed by Borrower or any
guarantor in connection with the Loan (but excluding the Loan application and Loan commitment) and by the party against whom enforcement is sought, including those given to evidence or further secure the payment and performance of any of the
Obligations, and any written renewals, extensions, and amendments of the foregoing, executed by the party against whom enforcement is sought. All of the provisions of the Documents are incorporated into this Instrument as if fully set forth in this
Instrument. 
 ARTICLE II - REPRESENTATIONS AND WARRANTIES 
 Borrower hereby represents and warrants to Lender that the following are true and correct on and as of the date hereof: 
 Section 2.01 Title, Legal Status and Authority. Borrower (i) to Borrower’s knowledge, is seised of good and marketable fee title to the Land and the Improvements,
free and clear of all liens, charges, encumbrances, and security interests, except the Permitted Encumbrances; (ii) will forever warrant and defend its title to the Property and the validity, enforceability, and priority of the lien and
security interest created by this Instrument against the claims of all persons; (iii) is a limited liability company duly organized, validly existing, and in good standing and qualified to transact business under the laws of its state of
organization or incorporation (“Organization State”) and the state where the Property is located (“Property State”); and (iv) has all necessary approvals, governmental and otherwise, and full power and
authority to own its properties (including the Property) and carry on its business. 
 Section 2.02 Validity of
Documents. The execution, delivery and performance of the Documents and the borrowing evidenced by the Note (i) are within the power of Borrower; (ii) have been authorized by all requisite action; (iii) have received
all necessary approvals and consents; (iv) will not violate, conflict with, breach, or constitute (with notice or lapse of time, or both) a default under (1) to Borrower’s 

  
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knowledge (as to all but Borrower’s governing instrument), any law, order or judgment of any court, governmental authority, or the governing instrument of Borrower or (2) any indenture,
agreement, or other instrument to which Borrower is a party or by which it or any of its property is bound or affected; (v) will not result in the creation or imposition of any lien, charge, or encumbrance upon any of its properties or assets
except for those in this Instrument; and (vi) will not require any authorization or license from, or any filing with, any governmental or other body (except for the recordation of this Instrument, the Assignment and Uniform Commercial Code
(“U.C.C.”) filings). The Documents constitute legal, valid, and binding obligations of Borrower, subject to the limitations and qualifications set forth in the opinion of counsel provided to Lender in connection with the Loan.

 Section 2.03 Litigation. Except as disclosed to Lender in the Closing Certification, dated of even date herewith, there
is no action, suit, or proceeding, judicial, administrative, or otherwise (including any condemnation or similar proceeding), pending or, to the best knowledge of Borrower, threatened or contemplated against, or affecting, Borrower or the Property
which would have a material adverse effect on either the Property or Borrower’s ability to perform its obligations. 
 Section 2.04
Status of Property. 
 (a) To Borrower’s knowledge, except as may be noted on the survey
delivered to Lender in connection with this Loan, the Land and Improvements are not located in an area identified by the Secretary of Housing and Urban Development, or any successor, as an area having special flood hazards pursuant to the National
Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973, or the National Flood Insurance Reform Act of 1994, as each have been or may be amended, or any successor law (collectively, the “Flood Acts”) or, if located
within any such area, Borrower has and will maintain the insurance prescribed in Section 3.06 below. 
 (b) To
Borrower’s knowledge, Borrower has all necessary (i) certificates, licenses, and other approvals, governmental and otherwise, for the operation of the Property and the conduct of its business and (ii) zoning, building code, land use,
environmental and other similar permits or approvals, all of which are currently in full force and effect and not subject to revocation, suspension, forfeiture, or modification. To Borrower’s knowledge, except as disclosed to Lender in the
Closing Certification, dated of even date herewith, the Property and its use and occupancy is in compliance with all Laws and Borrower has received no notice of any violation or potential violation of the Laws which has not been remedied or
satisfied. 
 (c) The Property is served by all utilities (including water and sewer) required for its use. 

(d) All public roads and streets necessary to serve the Property for its use have been completed, are serviceable, are legally open, and
have been dedicated to and accepted by the appropriate governmental entities. 
 (e) The Property is free from damage caused by
fire or other casualty. 
 (f) All costs and expenses for labor, materials, supplies, and equipment used in the construction of
the Improvements have been paid in full except for the Permitted Encumbrances and costs for ongoing work which will be paid in the ordinary course of business. 
 (g) Borrower owns and has paid in full for all furnishings, fixtures, and equipment (other than property of Tenants, licensees and service providers) used in connection with the operation of the Property,
free of all security interests, liens, or encumbrances except the Permitted Encumbrances and those created by this Instrument. 

  
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 (h) The Property is assessed for real estate tax purposes as one or more wholly independent
tax lot(s), separate from any adjoining land or improvements, and no other land or improvements are assessed and taxed together with the Property. 
 Section 2.05 Tax Status of Borrower. Borrower is not a “foreign person” within the meaning of Sections 1445 and 7701 of the Internal Revenue Code of 1986, as
amended, and the regulations thereunder (the “Revenue Code”). Borrower further represents and warrants to Lender that Borrower is a “disregarded entity” as defined in Section 1.1445-2(b)(2)(iii) of the Income Tax
Regulations issued under the Revenue Code; however, Borrower further represents and warrants to Lender that Saul Holdings Limited Partnership (“SHLP”), Borrower’s sole member, is not a “disregarded entity” as defined
in said Section 1.1445-2(b)(2)(iii) of the Income Tax Regulations issued under the Revenue Code. 
 Section 2.06
Bankruptcy and Equivalent Value. 
 (a) No bankruptcy, reorganization, insolvency, liquidation, or other
proceeding for the relief of debtors has been instituted by or, to Borrower’s knowledge, against Borrower, any general partner of Borrower (if Borrower is a partnership), or any manager or managing member of Borrower (if Borrower is a limited
liability company); 
 (b) The Obligations incurred by Borrower under the Documents, the obligations of Borrower under the Note,
and the mortgaging of the Property pursuant to this Instrument are not made or incurred with the intent to hinder, delay, or defraud any present or future creditor of Borrower; 

(c) Borrower has not received less than reasonably equivalent value in exchange for incurring the Obligations and/or the mortgaging of
the Property in connection with the Loan; 
 (d) Borrower is solvent as of the date hereof, and Borrower will not become
insolvent as a result of incurring the Obligations and/or the mortgaging of the Property pursuant to this Instrument; 
 (e)
Borrower is not engaged, and Borrower is not about to engage, in business or a transaction for which any property remaining with Borrower is an unreasonably small capital; 
 (f) Borrower has not and does not intend to incur, and Borrower does not believe that it will incur, debts that would be beyond Borrower’s ability to pay as such debts mature; and 

(g) Borrower is not mortgaging the Property and/or incurring the Obligations to or for the benefit of an insider (as defined in 11 U.S.C.
§ 101(31)), under an employment contract and not in the ordinary course of business. 
 Section 2.07 Disclosure.
Borrower has disclosed to Lender all material facts and has not failed to disclose any material fact that could cause any representation or warranty made herein to be materially misleading. There has been no adverse change in any condition, fact,
circumstance, or event that would make any such information materially inaccurate, incomplete or otherwise misleading. 

Section 2.08 Illegal Activity. No portion of the Property has been or will be purchased, improved, fixtured, equipped or
furnished by Borrower with proceeds of any illegal activity and, to the best of Borrower’s knowledge, there are no illegal activities at or on the Property. 
 Section 2.09 OFAC Lists. That (i) neither Borrower, nor any persons or entities holding any legal or beneficial interest whatsoever in Borrower (whether directly or
indirectly), are named on any list of persons, entities, and governments issued by the Office of Foreign Assets Control of the United States 

  
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Department of the Treasury (“OFAC”) pursuant to Executive Order 13224 – Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or
Support Terrorism (“Executive Order 13224”), as in effect on the date hereof, or any similar list issued by OFAC or any other department or agency of the United States of America (collectively, the “OFAC Lists”);
provided, however, that (A) with respect to individual beneficiaries of any governmental plans or employee benefit plans holding interests in Borrower (collectively, the “Individual Beneficiaries”), the foregoing
representations and warranties are limited to Borrower’s actual knowledge, and (B) with respect to individual shareholders of any publicly-traded company holding an interest in Borrower (collectively, the “Individual
Shareholders”), the foregoing representations and warranties are limited to Borrower’s actual knowledge; (ii) neither Borrower, nor any persons or entities holding any legal or beneficial interest whatsoever in Borrower (whether
directly or indirectly), are included in, owned by, controlled by, acting for or on behalf of, providing assistance, support, sponsorship, or services of any kind to, or otherwise associated with any of the persons or entities referred to or
described in the OFAC Lists; provided, however, that (A) with respect to any Individual Beneficiaries holding interests in Borrower, the foregoing representations and warranties are limited to Borrower’s actual knowledge, and (B) with
respect to any Individual Shareholders holding interests in Borrower, the foregoing representations and warranties are limited to Borrower’s actual knowledge; (iii) neither any guarantor, nor any persons or entities holding any legal or
beneficial interest whatsoever in any guarantor (whether directly or indirectly), are named on any OFAC Lists; provided, however, that (A) with respect to any Individual Beneficiaries holding interests in any guarantor, the foregoing
representations and warranties are limited to Borrower’s actual knowledge, and (B) with respect to any Individual Shareholders holding interests in any guarantor, the foregoing representations and warranties are limited to Borrower’s
actual knowledge; (iv) neither any guarantor, nor any persons or entities holding any legal or beneficial interest whatsoever in any guarantor (whether directly or indirectly), are included in, owned by, controlled by, acting for or on behalf
of, providing assistance, support, sponsorship, or services of any kind to, or otherwise associated with any of the persons or entities referred to or described in the OFAC Lists; provided, however, that (A) with respect to any Individual
Beneficiaries holding interests in any guarantor, the foregoing representations and warranties are limited to Borrower’s actual knowledge, and (B) with respect to any Individual Shareholders holding interests in any guarantor, the
foregoing representations and warranties are limited to Borrower’s actual knowledge; and (v) neither Borrower nor any guarantor has knowingly conducted business with or engaged in any transaction with any person or entity named on any of
the OFAC Lists or any person or entity included in, owned by, controlled by, acting for or on behalf of, providing assistance, support, sponsorship, or services of any kind to, or otherwise associated with any of the persons or entities referred to
or described in the OFAC Lists. 
 Section 2.10 Property as Single Asset. That (i) Borrower’s only asset is
the Property, and (ii) the Property generates substantially all of the gross income of Borrower and there is no substantial business being conducted by Borrower other than the business of operating the Property and the activities incidental
thereto. 
 ARTICLE III - COVENANTS AND AGREEMENTS 
 Borrower covenants and agrees with Lender as follows: 
 Section 3.01 Payment of
Obligations. Borrower shall timely pay and cause to be performed the Obligations. 
 Section 3.02 Continuation of
Existence. Borrower shall not (a) dissolve, terminate, or otherwise dispose of, directly, indirectly or by operation of law, all or substantially all of its assets; (b) reorganize or change its legal structure without Lender’s
prior written consent, except as otherwise expressly permitted under Article V below; (c) change its name, address, or the name under which Borrower conducts its 

  
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business without promptly notifying Lender; or (d) do anything to cause the representations in Section 2.02 to become untrue. Borrower shall (a) maintain its existence as a limited
liability company duly organized, validly existing, and in good standing and qualified to transact business under the laws of its Organization State and the Property State and (b) shall maintain all necessary approvals, governmental and
otherwise, and full power and authority to own its properties (including the Property) and carry on its business. 
 Section 3.03
Taxes and Other Charges. 
 (a) Payment of Assessments. Borrower shall pay when due
all taxes, liens, assessments, utility charges (public or private and including sewer fees), ground rents, maintenance charges, dues, fines, impositions, and public and other charges of any character (including penalties and interest) assessed
against, or which could become a lien against, the Property (“Assessments”) and in all events prior to the date any fine, penalty, interest or charge for nonpayment may be imposed. Unless Borrower is making deposits per
Section 3.10, Borrower shall provide Lender with receipts evidencing such payments (except for income taxes, franchise taxes, ground rents, maintenance charges, and utility charges) within thirty (30) days after their due date. 

(b) Right to Contest. So long as no Event of Default (defined below) has occurred (unless Lender has accepted cure of such Event
of Default by specific written statement from Lender to Borrower acknowledging Lender’s acceptance of such cure, and Borrower specifically understands and agrees that Lender shall have no obligation to accept the cure of any Event of Default),
Borrower may, prior to delinquency and at its sole expense, contest any Assessment, but this shall not change or extend Borrower’s obligation to pay the Assessment as required above unless (i) Borrower gives Lender prior written notice of
its intent to contest an Assessment; (ii) Borrower demonstrates to Lender’s reasonable satisfaction that (A) the Property will not be sold to satisfy the Assessment prior to the final determination of the legal proceedings,
(B) Borrower has taken such actions as are required or permitted to accomplish a stay of any such sale, and (C) Borrower has timely paid the uncontested portion of the Assessment and has furnished Lender evidence of such payment; and
(iii) such proceeding shall be permitted under any other instrument to which Borrower or the Property is subject (whether superior or inferior to this Instrument); provided, however, that the foregoing shall not restrict the contesting of any
income taxes, franchise taxes, ground rents, maintenance charges, and utility charges. 
 (c) Documentary Stamps and Other
Charges. Borrower shall pay all taxes, assessments, charges, expenses, costs and fees (including registration and recording fees and revenue, transfer, stamp, intangible, and any similar taxes) (collectively, the “Transaction
Taxes”) required in connection with the making and/or recording of the Documents. If Borrower fails to pay the Transaction Taxes after demand, Lender may (but is not obligated to) pay these and Borrower shall reimburse Lender on demand for
any amount so paid with interest at the applicable interest rate specified in the Note, which shall be the Default Rate unless prohibited by Laws. 
 (d) Changes in Laws Regarding Taxation. If any law (i) deducts from the value of real property for the purpose of taxation any lien or encumbrance thereon, (ii) taxes deeds of trust or
debts secured by deeds of trust for federal, state or local purposes or changes the manner of the collection of any such existing taxes, and/or (iii) imposes a tax, either directly or indirectly, on any of the Documents or the Obligations,
Borrower shall, if permitted by law, pay such tax within the statutory period or within twenty (20) days after demand by Lender, whichever is less; provided, however, that if, in the opinion of Lender based on advice of counsel, Borrower is not
permitted by law to pay such taxes, Lender shall have the option to declare the Obligations immediately due and payable (without any Prepayment Premium) upon one hundred twenty (120) days’ notice to Borrower. 

  
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 Section 3.04 Defense of Title, Litigation and Rights under Documents. Borrower
shall forever warrant, defend and preserve Borrower’s title to the Property, the validity, enforceability and priority of this Instrument and the lien or security interest created thereby, and any rights of Lender and/or Trustee under the
Documents against the claims of all persons, and shall promptly notify Lender and Trustee of any such claims. Lender and/or Trustee (whether or not named as a party to such proceedings) is authorized and empowered (but shall not be obligated) to
take such additional steps as it may deem necessary or proper for the defense of any such proceeding or the protection of the lien, security interest, validity, enforceability, or priority of this Instrument, title to the Property, or any rights of
Lender and/or Trustee under the Documents, including the employment of counsel, the prosecution and/or defense of litigation, the compromise, release, or discharge of such adverse claims, the purchase of any tax title, the removal of any such liens
and security interests, and any other actions Lender and/or Trustee deems necessary to protect its or their interests. Borrower authorizes Lender and/or Trustee to take any actions required to be taken by Borrower, or permitted to be taken by Lender
and/or Trustee, in the Documents in the name and on behalf of Borrower if Borrower fails to take action timely. Borrower shall reimburse Lender and Trustee on demand for all expenses (including reasonable attorneys’ fees) incurred by it/them in
connection with the foregoing and Lender’s or Trustee’s exercise of its or their rights under the Documents. All such expenses of Lender and/or Trustee, until reimbursed by Borrower, shall be part of the Obligations, bear interest upon
demand at the Default Rate and shall be secured by this Instrument. 
 Section 3.05 Compliance with Laws and Operation and
Maintenance of Property. 
 (a) Repair and Maintenance. Borrower will operate and maintain
the Property in good order, repair, and operating condition. Borrower will promptly make all necessary repairs, replacements, additions, and improvements necessary to ensure that the Property shall not in any way be diminished or impaired. Borrower
will not cause or allow any of the Property to be misused, wasted, or to deteriorate and Borrower will not abandon the Property. No new building, structure, or other improvement shall be constructed on the Land nor shall any material part of the
Improvements be removed, demolished, or structurally or materially altered, without Lender’s prior written consent. 
 (b)
Replacement of Property. Borrower will keep the Property fully equipped and will replace all worn out or obsolete personal property in a commercially reasonable manner with comparable fixtures or personal property. Borrower will not, without
Lender’s prior written consent, remove any personal property covered by this Instrument unless the same is replaced by Borrower in a commercially reasonable manner with a comparable article (i) owned by Borrower free and clear of any lien
or security interest (other than the Permitted Encumbrances and those created by this Instrument) or (ii) leased by Borrower (A) with Lender’s prior written consent or (B) if the replaced personal property was leased at the time
of execution of this Instrument. 
 (c) Compliance with Laws. Borrower shall comply with and shall cause the Property to
be maintained, used, and operated in compliance with all (i) present and future laws, Environmental Laws (defined below), ordinances, regulations, rules, orders and requirements (including zoning and building codes) of any governmental or
quasi-governmental authority or agency applicable to Borrower or the Property (collectively, the “Laws”); (ii) orders, rules, and regulations of any regulatory, licensing, accrediting, insurance underwriting or rating
organization, or other body exercising similar functions; (iii) duties or obligations of any kind imposed under any Permitted Encumbrance (except with respect to covenants prohibiting the sale of liquor) or by law, covenant, condition,
agreement, or easement, public or private; and (iv) policies of insurance at any time in force with respect to the Property. If proceedings are initiated or Borrower receives notice that Borrower or the Property is not in compliance with any of
the foregoing, Borrower will promptly send Lender notice and a copy of the proceeding or violation notice. Without limiting Lender’s rights and remedies under Article VI or otherwise, if Borrower or the Property are not in compliance with all
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the applicable grace or cure period provided thereunder, Lender may impose additional requirements upon Borrower for the purpose of securing such compliance obligation, including monetary
reserves or financial equivalents. Borrower shall maintain all necessary (i) certificates, licenses, and other approvals, governmental and otherwise, for the operation of the Property and the conduct of its business and (ii) zoning,
building code, land use, environmental and other similar permits or approvals, in full force and effect. 
 (d) Zoning and
Title Matters. Borrower shall not, without Lender’s prior written consent, (i) initiate or support any zoning reclassification of the Property or variance under existing zoning ordinances; (ii) modify or supplement any of the
Permitted Encumbrances; (iii) impose any restrictive covenants or encumbrances upon the Property; (iv) execute or file any subdivision plat affecting the Property; (v) consent to the annexation of the Property to any municipality;
(vi) permit the Property to be used by the public or any person in a way that might make a claim of adverse possession or any implied dedication or easement possible; (vii) cause or permit the Property to become a non-conforming use under
zoning ordinances or any present or future non-conforming use of the Property to be discontinued; or (viii) fail to comply with the terms of the Permitted Encumbrances, except with respect to covenants prohibiting the sale of liquor,
prohibiting uses that may be nuisances to other lot owners in the subdivision, such as a soap factory or like industry, 15-foot building set-back line, and Caucasians-only restrictions, all as more particularly set forth in the deeds identified in
Item 2 of the Permitted Encumbrances (collectively, the “Unenforceable Restrictions”); provided that, Lender shall not unreasonably withhold its consent to any easements or special exceptions requested by retail Tenants
pursuant to Leases approved by Lender (or Leases for which Lender’s approval is not required) under the Assignment and related solely to the Tenant’s use of sidewalk space pursuant to the terms of its Lease. 

(e) Utility Service. The Property shall be served by all utilities (including water and sewer) required for its use. 

(f) Roads and Streets. All public roads and streets necessary to serve the Property for its use shall be completed, serviceable,
legally open, and dedicated to and accepted by the appropriate governmental entities. 
 (g) Ownership of FF&E.
Borrower shall own and shall have paid in full for all furnishings, fixtures, and equipment (other than Tenants’ property) or property leased by Borrower pursuant to equipment leases in compliance with the terms of the Documents used in
connection with the operation of the Property, free of all security interests, liens, or encumbrances except the Permitted Encumbrances and those created by this Instrument. 
 (h) Separate Tax Lot. The Property shall be assessed for real estate tax purposes as one or more wholly independent tax lot(s), separate from any adjoining land or improvements and no other land or
improvements shall be assessed and taxed together with the Property. 
 Section 3.06 Insurance.

 (a) Property and Time Element Insurance. Borrower shall keep the Property insured for the benefit of Borrower and
Lender (with Lender named as mortgagee) by (i) a “special form cause of loss” property insurance policy with an agreed amount endorsement for full replacement cost (defined below) without any coinsurance provisions or penalties, or
the broadest form of coverage available, in an amount sufficient to prevent Lender from ever becoming a coinsurer under the policy or Laws, and with a deductible not to exceed One Hundred Thousand Dollars ($100,000.00); (ii) a policy or
endorsement insuring against acts of terrorism, if reasonably available; (iii) [INTENTIONALLY OMITTED]; (iv) a policy or endorsement providing business income insurance (including business interruption insurance,

  
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and extra expense insurance and/or rent insurance) on an actual loss sustained basis in an amount equal to at least eighteen (18) months’ total income from the Property including all
Rents, which business interruption insurance shall also provide coverage as aforesaid for any additional hazards as may be required pursuant to the terms of this Instrument; (v) a policy or endorsement insuring against damage by flood if the
Property is located in a Special Flood Hazard Area identified by the Federal Emergency Management Agency or any successor or related government agency as a 100 year flood plain currently classified as Flood Insurance Rate Map Zones “A”,
“AO”, “AH”, “A1-A30”, “AE”, “A99”, “V”, “V1-V30”, and “VE” in an amount not less than $25,000,000.00 (unless coverage in such amount is not available at commercially
reasonable rates, in which case Borrower shall obtain as much coverage as possible [up to the aforesaid limit] at commercially reasonable rates); (vi) a policy or endorsement covering against damage or loss from (A) sprinkler system
leakage and (B) boilers, boiler tanks, HVAC systems, heating and air-conditioning equipment, pressure vessels, auxiliary piping, and similar apparatus, in the amount reasonably required by Lender; (vii) during the period of any
construction, repair, restoration, or replacement of the Property or any portion thereof, a standard builder’s risk policy with extended coverage in an amount at least equal to the full replacement cost of the Property (or such applicable
portion thereof that is being constructed, repaired, restored or replaced); and (viii) a policy or endorsement covering against damage or loss by earthquake and other natural phenomenon in an amount not less than $25,000,000.00 (unless coverage
in such amount is not available at commercially reasonable rates, in which case Borrower shall obtain as much coverage as possible [up to the aforesaid limit] at commercially reasonable rates). “Full replacement cost” shall mean the
one hundred percent (100%) replacement cost of the Property, without allowance for depreciation and exclusive of the cost of excavations, foundations, footings, and value of land, and shall be subject to verification by Lender. Full replacement
cost will be determined, at Borrower’s expense, periodically upon policy expiration or renewal by the insurance company or an appraiser, engineer, architect, or contractor approved by said company and Lender. 

(b) Liability and Other Insurance. Borrower shall maintain commercial general liability insurance with per occurrence limits of
$1,000,000, a products/completed operations limit of $2,000,000, and a general aggregate limit of $2,000,000, with an excess/umbrella liability policy of not less than $10,000,000 per occurrence and annual aggregate covering Borrower, with Lender
named as an additional insured, against claims for bodily injury or death or property damage occurring in, upon, or about the Property. In addition to any other requirements, such commercial general liability and excess/umbrella liability insurance
shall provide insurance against acts of terrorism, if reasonably available, or such coverage shall be provided by separate policies or endorsements. Upon request, Borrower shall also carry additional insurance or additional amounts of insurance
covering Borrower or the Property as Lender shall reasonably require to the extent such additional coverage is available on commercially reasonable terms and at commercially reasonable rates. 

(c) Form of Policy. All insurance required under this Section shall be fully paid for (it being understood that the premiums for
any coverage required under this Section 3.06 may be paid by Borrower in quarterly installments), non-assessable, and the policies shall contain such provisions, endorsements, and expiration dates as Lender shall reasonably require. The
policies shall be issued by insurance companies authorized to do business in the Property State, approved by Lender, and must have and maintain a current financial strength rating of “A-, X” (or higher) from A.M. Best or equivalent (or if
a rating by A.M. Best is no longer available, a similar rating from a similar or successor service). In addition, all policies shall (i) include a standard mortgagee clause, without contribution, in the name of Lender, (ii) provide that
they shall not be canceled, amended, or materially altered (including reduction in the scope or limits of coverage) with respect to the Property without at least thirty (30) days’ prior written notice to Lender except in the event of
cancellation for non-payment of premium, in which case only ten (10) days’ prior written notice will be given to Lender, and (iii) include a waiver of subrogation clause substantially equivalent to the following: “The Company may
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all rights of recovery against any party for loss to the extent that payment therefor is made by the Company, but the Company shall not acquire any rights of recovery which the Insured has
expressly waived prior to loss, nor shall such waiver affect the Insured’s rights under this policy.” 
 (d)
Original Policies. Borrower shall deliver to Lender (i) original or certified copies of all policies (and renewals) required under this Section and (ii) receipts evidencing payment of all premiums on such policies (or premiums then
due under an installment payment plan) at least ten (10) days prior to their expiration. If original and renewal policies are unavailable or if coverage is under a blanket policy, Borrower shall deliver duplicate originals, or, if unavailable,
(1) an MBA Evidence of Insurance - Commercial Property form certificate with respect to all insurance coverage required under Section 3.06(a) above and (2) an original ACORD 25 certificate with respect to all insurance coverage
required under Section 3.06(b) above (or equivalent certificates acceptable to Lender; provided, however, that any property insurance certificate containing language to the effect that the certificate is provided “for information
only” shall not qualify as adequate evidence, unless certificates containing such language become prevailing industry norm for property insurance certificates) evidencing that such policies are in full force and effect, together with certified
copies of the original policies. Without limiting Lender’s other rights with respect to the foregoing obligations, if, within ten (10) days prior to the expiration of the current applicable policy, Lender has not received the foregoing
items in form and substance acceptable to Lender (as being in compliance with the terms of this Instrument), Lender may retain a commercial property insurance consultant to assist Lender in obtaining adequate evidence that the required insurance
coverage is in effect, in which event Borrower shall (i) cooperate with such consultant in confirming that adequate evidence that the required insurance coverage is in effect, and (ii) pay all of the reasonable costs and expenses of such
consultant. 
 (e) General Provisions. Borrower shall not carry separate or additional insurance concurrent in form or
contributing in the event of loss with that required under this Section unless endorsed in favor of Lender as per this Section and approved by Lender in all respects. In the event of foreclosure of this Instrument or other transfer of title or
assignment of the Property in extinguishment, in whole or in part, of the Borrower Obligations, all right, title, and interest of Borrower in and to all pending claims and claim rights under all policies of insurance then in force regarding the
Property, all proceeds payable thereunder and unearned premiums thereon shall immediately vest in the purchaser or other transferee of the Property. No approval by Lender of any insurer shall be construed to be a representation, certification, or
warranty of its solvency. No approval by Lender as to the amount, type, or form of any insurance shall be construed to be a representation, certification, or warranty of its sufficiency. Borrower shall comply with all insurance requirements and
shall not cause or permit any condition to exist which would be prohibited by any insurance requirement or would invalidate the insurance coverage on the Property. Borrower shall not be exempt from any of the requirements set forth in this
Section 3.06 to the extent that a Tenant has agreed to provide the required insurance or a portion thereof pursuant to the terms and provisions of its respective Lease. If a Tenant is carrying any insurance required on the Property, such
insurance must fully comply with this Section 3.06. Borrower shall obtain from any such Tenant(s) and provide to Lender documentation sufficient to satisfy the requirements of Section 3.06(d) above. Lender has no duty or obligation to
contact any Tenant(s) regarding proof of insurance for the Property. 
 (f) Waiver of Subrogation. A waiver of
subrogation shall be obtained by Borrower from its insurers and, consequently, Borrower for itself, and on behalf of its insurers, hereby waives and releases any and all right to claim or recover against Lender, its officers, employees, agents and
representatives, for any loss of or damage to Borrower, other Persons, the Property, Borrower’s property or the property of other Persons from any cause required to be insured against by the provisions of this Instrument or otherwise insured
against by Borrower. 

  
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 Section 3.07 Damage and Destruction of Property. 

(a) Borrower’s Obligations. If any damage to, loss, or destruction of the Property occurs (any “Damage”),
(i) Borrower shall promptly notify Lender and take all necessary steps to preserve any undamaged part of the Property and (ii) if the insurance proceeds are made available for Restoration (defined below) (but regardless of whether any
proceeds are sufficient for Restoration), Borrower shall promptly commence and diligently pursue to completion the restoration, replacement, and rebuilding of the Property as nearly as possible to its value and condition immediately prior to the
Damage or a Taking (defined below) in accordance with plans and specifications approved by Lender (“Restoration”). Borrower shall comply with other reasonable requirements established by Lender to preserve the security under this
Instrument. 
 (b) Lender’s Rights. If any Damage occurs and some or all of it is covered by insurance, then
(i) Lender may, but is not obligated to, make proof of loss if not made promptly by Borrower and Lender is authorized and empowered by Borrower to settle, adjust, or compromise any claims for the Damage; (ii) each insurance company
concerned is authorized and directed to make payment directly to Lender for the Damage; and (iii) Lender may apply the insurance proceeds in any order it determines (1) to reimburse Lender for all Costs (defined below) related to
collection of the proceeds, and (2) subject to Section 3.07(c) and at Lender’s option, to (A) payment (without any Prepayment Premium) of all or part of the Obligations, whether or not then due and payable, in the order
determined by Lender (provided that if any Obligations remain outstanding after this payment, the unpaid Obligations shall continue in full force and effect and Borrower shall not be excused in the payment thereof, except that the monthly principal
and interest payment amount due under Section 1(b) of the Note may be adjusted in accordance with the provisions of Section 1(e) of the Note); (B) the cure of any Event of Default under the Documents; or (C) the Restoration.
Notwithstanding the foregoing, if there shall then be no Event of Default, Borrower shall have the right to settle, adjust or compromise any claim for Damage and receive immediate payments of proceeds if the total amount of such claim is less than
$1,250,000.00, provided, that Borrower promptly uses the full amount of such insurance proceeds for Restoration of the Damage and provides evidence thereof to Lender in a manner acceptable to Lender. Any insurance proceeds held by Lender shall be
held without the payment of interest thereon. Notwithstanding anything to the contrary hereinabove, provided there is no Event of Default, and subject to Lender’s reasonable approval, Borrower shall have the right to settle, adjust or
compromise any claim for Damage in excess of $1,250,000.00. If Borrower receives any insurance proceeds for the Damage in excess of $1,250,000.00, Borrower shall promptly deliver the proceeds to Lender. Notwithstanding anything in this Instrument or
at law or in equity to the contrary, none of the insurance proceeds paid to Lender shall be deemed trust funds and Lender may dispose of these proceeds as provided in this Section. Borrower expressly assumes all risk of loss from any Damage, whether
or not insurable or insured against. 
 (c) Application of Proceeds to Restoration. Notwithstanding the provisions of
Section 3.07(b) above, Lender shall make the Net Proceeds (defined below) available to Borrower for Restoration if: (i) there shall then be no Event of Default; (ii) Lender shall be satisfied that (A) Restoration can and will be
completed at least six (6) months prior to the maturity of the Note, and (B) Leases which are terminated or terminable as a result of the Damage cover an aggregate of less than fifteen percent (15%) of the total rentable square
footage contained in the Property at the closing of the Loan or such Tenants agree in writing to continue their Leases; (iii) Borrower shall have entered into a general construction contract acceptable in all respects to Lender for Restoration,
which contract must include provision for commercially reasonable retainage; and (iv) in Lender’s reasonable judgment, after Restoration has been completed, the net cash flow of the Property will be sufficient to cover all costs and
operating expenses of the Property, including payments due and reserves required under the Documents. Notwithstanding any provision of this Instrument to the contrary, Lender shall not be obligated to make any portion of the Net Proceeds available
for Restoration (whether as a result of Damage or a Taking) unless, at the time of the disbursement request, Lender has determined in its reasonable discretion that (y) Restoration can be completed at a cost which does not exceed the aggregate
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deposited with Lender by Borrower (“Additional Funds”) and (z) the aggregate of any loss of rental income insurance proceeds which the carrier has acknowledged to be payable
(“Rent Loss Proceeds”) and any funds deposited with Lender by Borrower are sufficient to cover all costs and operating expenses of the Property, including payments due and reserves required under the Documents. 

(d) Disbursement of Proceeds. If Lender elects or is required to make insurance proceeds or the Award (defined below), as the case
may be, available for Restoration, Lender shall, through a disbursement procedure established by Lender, periodically make available to Borrower in installments the net amount of all insurance proceeds or the Award, as the case may be, received by
Lender after deduction of all reasonable costs and expenses incurred by Lender in connection with the collection and disbursement of such proceeds (“Net Proceeds”) and, if any, the Additional Funds. The amounts periodically
disbursed to Borrower shall be based upon the amounts currently due under the construction contract for Restoration and Lender’s receipt of (i) appropriate lien waivers, (ii) a certification of the percentage of Restoration completed
by an architect or engineer acceptable to Lender, and (iii) title insurance protection against materialmen’s and mechanics’ liens. At Lender’s election, a disbursing agent selected by Lender shall disburse such funds, and
Borrower shall pay such agent’s reasonable fees and expenses. The Net Proceeds, Rent Loss Proceeds, and any Additional Funds shall constitute additional security for the Loan and Borrower shall execute, deliver, file and/or record, at its
expense, such instruments as Lender requires to grant to Lender a perfected, first-priority security interest in these funds. If the Net Proceeds are made available for Restoration and (x) Borrower refuses or fails to complete the Restoration,
(y) an Event of Default occurs, or (z) the Net Proceeds or Additional Funds are not applied to Restoration, then any undisbursed portion may, at Lender’s option, be applied to the Obligations in any order of priority, and any such
application to principal shall be deemed a voluntary prepayment subject to the Prepayment Premium. 
 Section 3.08
Condemnation. 
 (a) Borrower’s Obligations. Borrower will promptly notify Lender
of any threatened or instituted proceedings for the condemnation or taking by eminent domain of the Property including any change in any street (whether as to grade, access, or otherwise) (a “Taking”). Borrower shall, at its
expense, (i) diligently prosecute these proceedings, (ii) deliver to Lender copies of all papers served in connection therewith, and (iii) consult and cooperate with Lender in the handling of these proceedings. No settlement of these
proceedings shall be made by Borrower without Lender’s prior written consent not to be unreasonably withheld. Lender may participate in these proceedings (but shall not be obligated to do so) and Borrower will sign and deliver all instruments
requested by Lender to permit this participation. 
 (b) Lender’s Rights to Proceeds. All condemnation awards,
judgments, decrees, or proceeds of sale in lieu of condemnation (“Award”) are assigned and shall be paid, to Lender. Borrower authorizes Lender to collect and receive them, to give receipts for them, to accept them in the amount
received without question or appeal, and/or to appeal any judgment, decree, or award. Borrower will sign and deliver all instruments requested by Lender to permit these actions. 

(c) Application of Award. Lender may apply any Award in any order it determines (1) to reimburse Lender for all Costs related
to collection of the Award and (2) subject to Section 3.08(d) and at Lender’s option, to (A) payment (without any Prepayment Premium) of all or part of the Obligations, whether or not then due and payable, in the order determined
by Lender (provided that if any Obligations remain outstanding after this payment, the unpaid Obligations shall continue in full force and effect and Borrower shall not be excused in the payment thereof, except that the monthly principal and
interest payment amount due under Section 1(b) of the Note may be adjusted in accordance with the provisions of Section 1(e) of the Note); (B) the cure of any Event of Default under the Documents; or (C) the Restoration. If
Borrower receives any Award, Borrower shall promptly deliver such Award to Lender. 

  
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Notwithstanding anything in this Instrument or at law or in equity to the contrary, none of the Award paid to Lender shall be deemed trust funds and Lender may dispose of these proceeds as
provided in this Section. 
 (d) Application of Award to Restoration. Lender shall permit the application of the Award to
Restoration if: (i) no more than (A) twenty percent (20%) of the gross area of the Improvements; or (B) twenty percent (20%) of the parking spaces is affected by the Taking, (ii) the amount of the loss does not exceed
twenty percent (20%) of the original amount of the Note; (iii) the Taking does not affect access to the Property from any public right-of-way; (iv) there is no Event of Default at the time of the Taking or the application of the
Award; (v) after Restoration, the Property and its use will be in compliance with all Laws; (vi) in Lender’s reasonable judgment, Restoration is practical and can be completed at least six (6) months prior to the maturity of the
Note; (vii) the Tenants under Major Leases (as defined in the Assignment) agree in writing to continue their Leases without abatement of rent (other than for any portion of their Lease premises which was taken in the Taking);
(viii) Borrower shall have entered into a general construction contract acceptable in all respects to Lender for Restoration, which contract must include provision for commercially reasonable retainage; and (ix) in Lender’s reasonable
judgment, after Restoration has been completed the net cash flow of the Property will be sufficient to cover all costs and operating expenses of the Property, including payments due and reserves required under the Documents. Any portion of the Award
that is (i) for loss of value or property or (ii) in excess of the cost of any Restoration permitted above, may, in Lender’s sole discretion, be applied against the Obligations or paid to Borrower. If the Award is disbursed to
Borrower under the provisions of this Section 3.08(d), then such Award shall be disbursed to Borrower in accordance with the terms and conditions of Section 3.07(d). 
 (e) Effect on the Obligations. Notwithstanding any Taking, Borrower shall continue to pay and perform the Obligations as provided in the Documents, as they may be adjusted pursuant to Paragraph
1(e) of the Note. Any reduction in the Obligations due to application of the Award shall take effect only upon Lender’s actual receipt and application of the Award to the Obligations. If the Property shall have been foreclosed, sold pursuant to
any power of sale granted hereunder, or transferred by deed-in-lieu of foreclosure prior to Lender’s actual receipt of the Award, Lender may apply the Award received to the extent of any deficiency upon such sale and Costs incurred by Lender in
connection with such sale. 
 Section 3.09 Liens and Liabilities. Borrower shall pay when due all claims and demands
of mechanics, materialmen, laborers and others for any work performed or materials delivered for the Property or the Improvements (collectively, “Property Payables”); provided, however, Borrower shall have the right to contest in
good faith any such claim or demand, so long as it does so diligently, by appropriate proceedings and without prejudice to Lender and provided that neither the Property nor any interest therein would be in any danger of sale, loss or forfeiture as a
result of such proceeding or contest. In the event Borrower shall contest any such claim or demand, Borrower shall promptly notify Lender of such contest and thereafter shall, upon Lender’s request, promptly provide a bond, cash deposit or
other security satisfactory to Lender to protect Lender’s interest and security should the contest be unsuccessful, unless the lien has already been bonded off in which case no additional security shall be required. If Borrower shall fail to
discharge or provide security against any such claim or demand within sixty (60) days after the filing of a mechanic’s lien, Lender or Trustee may do so and any and all expenses incurred by Lender or Trustee, together with interest thereon
at the Default Rate from the date incurred by Lender until actually paid by Borrower, shall be immediately paid by Borrower on demand and shall be secured by this Instrument and by all other Documents securing all or any part of the Obligations.
Borrower shall, at its sole expense, do everything necessary to preserve the lien and security interest created by this Instrument and its priority. Nothing in the Documents shall be deemed or construed as constituting the consent or request by
Lender or Trustee, express or implied, to any contractor, subcontractor, laborer, mechanic or materialman for the performance of any labor or the furnishing of any 

  
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material for any improvement, construction, alteration, or repair of the Property. Borrower further agrees that neither Lender nor Trustee stands in any fiduciary relationship to Borrower. Any
contributions made, directly or indirectly, to Borrower by or on behalf of any of its partners, members, principals or any party related to such parties shall be treated as equity or Affiliate Loans (to the extent permitted by Section 5.01
hereof) and shall be subordinate and inferior to the rights of Lender under the Documents. 
 Section 3.10 Tax and Insurance
Deposits. At Lender’s option (i) following an Event of Default (unless Lender has accepted cure of such Event of Default by specific written statement from Lender to Borrower acknowledging Lender’s acceptance of such cure, and
Borrower specifically understands and agrees that Lender shall have no obligation to accept the cure of any Event of Default) or (ii) in the event that Borrower fails, within thirty (30) days after request from Lender, to timely deliver to
Lender evidence of payment of Assessments or evidence that required insurance policies have been renewed, as required by Section 3.03(a) and Section 3.06(d), respectively, Borrower shall make monthly deposits (“Deposits”)
with Lender equal to one-twelfth (1/12) of the annual Assessments (except for income taxes, franchise taxes, ground rents, maintenance charges and utility charges) and the premiums for insurance required under Section 3.06 (the
“Insurance Premiums”) together with amounts sufficient to pay these items thirty (30) days before they are due (collectively, the “Impositions”). Lender shall estimate the amount of the Deposits until
ascertainable. At that time, Borrower shall promptly deposit any deficiency. Borrower shall promptly notify Lender of any changes to the amounts, schedules and instructions for payment of the Impositions. Borrower authorizes Lender or its agent to
obtain the bills for Assessments directly from the appropriate tax or governmental authority. All Deposits are pledged to Lender and shall constitute additional security for the Obligations. The Deposits shall be held by Lender without interest
(except to the extent required under Laws) and may be commingled with other funds. If (i) there is no Event of Default at the time of payment, (ii) Borrower has delivered bills or invoices to Lender for the Impositions in sufficient time
to pay them when due, and (iii) the Deposits are sufficient to pay the Impositions or Borrower has deposited the necessary additional amount, then Lender shall pay the Impositions prior to their due date. Any Deposits remaining after payment of
the Impositions shall, at Lender’s option, be credited against the Deposits required for the following year or paid to Borrower. If an Event of Default occurs, the Deposits may, at Lender’s option, be applied to the Obligations in any
order of priority. Any application to principal shall be deemed a voluntary prepayment subject to the Prepayment Premium. Borrower shall not claim any credit against the principal and interest due under the Note for the Deposits. Upon an assignment
or other transfer of this Instrument, Lender may pay over the Deposits in its possession to the assignee or transferee and then it shall be completely released from all liability with respect to the Deposits. Borrower shall look solely to the
assignee or transferee with respect thereto. This provision shall apply to every transfer of the Deposits to a new assignee or transferee. Subject to Article V, a transfer of title to the Land shall automatically transfer to the new owner the
beneficial interest in the Deposits. Upon full payment and satisfaction of this Instrument or, at Lender’s option, at any prior time, the balance of the Deposits in Lender’s possession shall be paid over to the record owner of the Property
and no other party shall have any right or claim to the Deposits. Lender may transfer all its duties under this Section to such servicer or financial institution as Lender may periodically designate and Borrower agrees to make the Deposits to such
servicer or institution. 
 Section 3.11 ERISA. 

(a) Borrower understands and acknowledges that, as of the date hereof, the source of funds from which Lender is extending the Loan will
include one or more of the following accounts: (i) an “insurance company general account,” as that term is defined in Prohibited Transaction Class Exemption (“PTE”) 95-60 (60 Fed. Reg. 35925 (Jul. 12, 1995)), as to
which Lender meets the conditions for relief in Sections I and IV of PTE 95-60, and as to which no plan exceeds the 10% limit in Section I(a) of PTE 95-60; (ii) [INTENTIONALLY OMITTED]; and (iii) one or more insurance company separate
accounts maintained solely in connection with fixed contractual obligations of the insurance company, under which the amounts payable or credited to the plan are not affected in any manner by the investment performance of the separate account.

  
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 (b) Borrower represents and warrants to Lender that (i) Borrower is not an
“employee benefit plan” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or a “governmental plan” within the meaning of Section 3(32) of ERISA;
(ii) [INTENTIONALLY OMITTED]; (iii) Borrower is not subject to state statutes regulating investments and fiduciary obligations with respect to governmental plans, or if subject to such statutes, is not in violation thereof in the execution
of the Documents and the making of the Loan thereunder; (iv) the assets of Borrower do not constitute “plan assets” of one or more plans within the meaning of 29 C.F.R. Section 2510.3-101; and (v) one or more of the
following circumstances is true: (1) equity interests in Borrower are publicly offered securities, within the meaning of 29 C.F.R. Section 2510.3-101(b)(2); (2) less than twenty-five percent (25%) of all equity interests in
Borrower are held by “benefit plan investors” within the meaning of 29 C.F.R. Section 2510.3-101(f)(2); or (3) Borrower qualifies as an “operating company,” a “venture capital operating company” or a
“real estate operating company” within the meaning of 29 C.F.R. Section 2510.3-101(c), (d) or (e), respectively. 
 (c) Borrower shall deliver to Lender such certifications and/or other evidence periodically requested by Lender, in its sole discretion, to verify the representations and warranties in
Section 3.11(b) above. Failure to deliver these certifications or evidence, breach of these representations and warranties, or consummation of any transaction which would cause this Instrument or any exercise of Lender’s rights under this
Instrument to (i) constitute a non-exempt prohibited transaction under ERISA or (ii) violate ERISA or any state statute regulating governmental plans (collectively, a “Violation”), shall be an Event of Default.
Notwithstanding anything in the Documents to the contrary, no sale, assignment, or transfer of any direct or indirect right, title, or interest in Borrower or the Property (including creation of a junior lien, encumbrance or leasehold interest)
shall be permitted which would, in Lender’s opinion, negate Borrower’s representations in this Section or cause a Violation. Except with respect to transfers not subject to Lender consent pursuant to Section 5.01(b) hereof (but
without limiting the certification requirements set forth in Section 5.01), at least fifteen (15) days before consummation of any of the foregoing, Borrower shall obtain from the proposed transferee or lienholder (i) a certification
to Lender that the representations and warranties of Section 3.11(b) will be true after consummation and (ii) an agreement to comply with this Section 3.11. 
 Section 3.12 Environmental Representations, Warranties, and Covenants. 
 (a) Environmental Representations and Warranties. Borrower represents and warrants, to the best of Borrower’s knowledge and additionally based upon the environmental site assessment report of
the Property prepared by ATC Associates Inc., dated February 21, 2011 (the “Environmental Report”), that except as disclosed in the Environmental Report: (i) there are no Hazardous Materials (defined below) or underground
storage tanks affecting the Property (“affecting the Property” shall mean “in, on, under, stored, used or migrating to or from the Property”) except for (A) routine office, cleaning, janitorial and other materials and
supplies necessary to operate the Property for its current use and (B) Hazardous Materials that are (1) in compliance with Environmental Laws (defined below), (2) have all required permits, and (3) are in only the amounts
necessary to operate the Property; (ii) there are no past, present or threatened Releases (defined below) of Hazardous Materials in violation of any Environmental Law affecting the Property except for Releases which have been fully remediated
in accordance with Environmental Laws; (iii) there is no past or present non-compliance with Environmental Laws or with permits issued pursuant thereto except for Releases which have been fully remediated in accordance with Environmental Laws;
(iv) Borrower does not know of, and has not received, any written or oral notice or communication from any person relating to Hazardous Materials affecting the Property; and (v) Borrower has provided to Lender, in writing, all information
relating to violations of Environmental Laws affecting 

  
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the Property known to Borrower or contained in Borrower’s files (unless such violations have been cured in accordance with Environmental Laws). “Environmental Law” means any
present and future federal, state and local laws, statutes, ordinances, rules, regulations, standards, policies and other government directives or requirements, as well as common law, that apply to Borrower or the Property and relate to Hazardous
Materials including the Comprehensive Environmental Response, Compensation and Liability Act and the Resource Conservation and Recovery Act. “Hazardous Materials” shall mean petroleum and petroleum products and compounds containing
them, including gasoline, diesel fuel and oil; explosives, flammable materials; radioactive materials; polychlorinated biphenyls (“PCBs”) and compounds containing them; lead and lead-based paint; Microbial Matter, infectious
substances, asbestos or asbestos-containing materials in any form that is or could become friable; underground or above-ground storage tanks, whether empty or containing any substance; any substance the presence of which on the Property is
prohibited by any federal, state or local authority; any substance that requires special handling; and any other material or substance now or in the future defined as a “hazardous substance,” “hazardous material,” “hazardous
waste,” “toxic substance,” “toxic pollutant,” “contaminant,” or “pollutant” within the meaning of any Environmental Law. “Release” of any Hazardous Materials includes any release,
deposit, discharge, emission, leaking, spilling, seeping, migrating, pumping, pouring, escaping, dumping, disposing or other movement of Hazardous Materials. “Microbial Matter” shall mean the presence of fungi or bacterial matter
which reproduces through the release of spores or the splitting of cells, including, but not limited to, mold, mildew and viruses, whether or not such Microbial Matter is living. 

(b) Environmental Covenants. Borrower covenants and agrees that: (i) Borrower shall use and operate (and shall use
commercially reasonable efforts to cause all tenants, invitees and other parties having access to the Premises to use and operate) the Property in compliance with all Environmental Laws and required permits; (ii) it shall use all reasonable
efforts to prevent Releases of Hazardous Materials on or in the operation of the Property in violation of Environmental Laws; (iii) there shall be no Hazardous Materials on or in the operation of the Property except (A) routine office,
cleaning and janitorial supplies, (B) in compliance with all Environmental Laws, (C) in compliance with all required permits, and (D) (1) in only the amounts necessary to operate the Property or (2) as shall have been fully
disclosed to and approved by Lender in writing; (iv) Borrower shall keep the Property free and clear of all liens and encumbrances imposed by any Environmental Laws due to any act or omission by Borrower or any person (the
“Environmental Liens”); (v) Borrower shall, at its sole expense, fully and expeditiously cooperate in all activities performed under Section 3.12(c) including providing all relevant information and making knowledgeable
persons available for interviews; (vi) Borrower shall, at its sole expense, (A) cause to be performed any environmental site assessment or other investigation of environmental conditions at the Property upon Lender’s request based on
Lender’s reasonable belief that the Property is not in compliance with all Environmental Laws, (B) share with Lender the results and reports and Lender and the Indemnified Parties (defined below) shall be entitled to rely on such results
and reports, and (C) complete any remediation of Hazardous Materials affecting the Property or other actions required by any Environmental Laws; (vii) Borrower shall use commercially reasonable efforts to prevent any Tenant or other user
of the Property from violating any Environmental Law; (viii) Borrower shall immediately notify Lender in writing after it becomes aware of (A) the presence, Release, or threatened Release of Hazardous Materials affecting the Property,
(B) any non-compliance of the Property with any Environmental Laws, (C) any actual or potential Environmental Lien, (D) any required or proposed remediation of environmental conditions relating to the Property, or (E) any written
communication or notice from any person relating to Hazardous Materials, or any oral communication relating to or alleging any violation or potential violation of Environmental Law, and (ix) if an Asbestos Operation and Maintenance Plan and any
other Operation and Maintenance Plan (collectively, the “O&M Plan”) is in effect (or required by Lender to be implemented) at the time of the closing of the Loan, then Borrower shall, at its sole expense, implement and continue
the O&M Plan (with any modifications required to comply with applicable Laws) until payment and full satisfaction of the Obligations. 

  
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 (c) Lender’s Rights. Lender and any person designated by Lender may enter the
Property to assess the environmental condition of the Property and its use including (i) conducting any environmental assessment or audit (the scope of which shall be determined by Lender) and (ii) taking samples of soil, groundwater or
other water, air, or building materials, and conducting other invasive testing at all reasonable times when (A) an Event of Default has occurred under the Documents, (B) Lender reasonably believes that a Release has occurred or the
Property is not in compliance with all Environmental Laws, or (C) the Loan is being considered for sale (any out-of-pocket expenses incurred in connection with the entry under clause (C) only shall be at Lender’s expense). Borrower
shall cooperate with and provide access to Lender and such person, and/or grant licenses to Lender enabling Lender to conduct any testing and remediation that Lender is entitled to undertake pursuant to the terms hereof. 

(d) Confirmation of Termination. This Section 3.12 (and the Environmental Indemnity) shall terminate if: (i) the Loan is
paid in full in accordance with the terms of the Documents other than through or as a result of Lender taking enforcement action (including, but not limited to, foreclosure, trustee’s sale, or deed-in-lieu of foreclosure), (ii) Borrower
requests in writing, pursuant to a notice delivered to Lender not sooner than twenty-four (24) months after the date of the payment of the Loan in full by Borrower pursuant to the terms of the Documents (other than through or as a result of
Lender taking enforcement action, including, but not limited to, foreclosure, trustee’s sale, or deed-in-lieu of foreclosure), that Lender provide the Confirmation of Termination (as defined below), (iii) at the time Borrower requests that
Lender deliver the Confirmation of Termination, Borrower shall deliver to Lender a then-current environmental report of the Property from an environmental consultant acceptable to Lender showing neither any violation of Environmental Laws nor the
presence of any Hazardous Materials on the Property in violation of Environmental Laws and in all other respects acceptable in form and substance to Lender, and (iv) there is no pending or threatened environmental claim, investigation,
violation or action related to the Property or related to this Section 3.12 (or the Environmental Indemnity) at the time Borrower requests Lender to provide the Confirmation of Termination. If each of the foregoing conditions is complied with,
then Lender shall provide Borrower with the Confirmation of Termination. The “Confirmation of Termination” shall mean that Lender shall provide Borrower with a written confirmation that this Section 3.12 of the Instrument and
the Environmental Indemnity are terminated. 
 Section 3.13 Electronic Payments. Unless directed otherwise in writing
by Lender, all payments due under the Documents shall be made by electronic funds transfer debit entries to Borrower’s account at an Automated Clearing House member bank satisfactory to Lender or by similar electronic transfer process selected
by Lender. Each payment due under the Documents shall be initiated by Lender through the Automated Clearing House network (or similar electronic process) for settlement on the Due Date (as defined in the Note) for the payment. Borrower shall, at
Borrower’s sole cost and expense, direct its bank in writing to permit such electronic fund transfer debit entries (or similar electronic transfer) to be made by Lender. Prior to each payment Due Date under the Documents, Borrower shall deposit
and/or maintain sufficient funds in Borrower’s account to cover each debit entry. Any charges or costs, if any, by Borrower’s bank for the foregoing shall be paid by Borrower. 
 Section 3.14 Inspection. Borrower shall allow Lender and any person designated by Lender to enter upon the Property and conduct tests or inspect the Property at all reasonable
times. Borrower shall assist Lender and such person in effecting said inspection. 

  
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 Section 3.15 Records, Reports, and Audits. 

(a) Records and Reports. (i) Borrower shall maintain complete and accurate books and records with respect to all operations of, or
transactions involving, the Property. Annually (and upon Lender’s request, quarterly) Borrower shall furnish Lender financial statements for the most current fiscal year (including a schedule of all related Obligations and contingent
liabilities) for (A) Borrower, (B) any general partner or managing member of Borrower, and any general partner or managing member of any general partner of Borrower, (C) Saul Centers, Inc. (“SCI”) and any other
guarantors or sureties of the Note, and (D) any Major Tenants to the extent Borrower can obtain them with commercially reasonable efforts. Annually (and upon Lender’s request, quarterly), Borrower shall furnish Lender (1) operating
statements showing cash flow and capital expenditures for the Property including income and expenses (before and after Obligations service), major capital improvements, a schedule showing tenant sales and percentage rent for retail properties where
sales are reported, and the average daily rate and average daily occupancy for hotel properties; (2) copies of paid tax receipts for the Property; (3) a certified rent roll including security deposits held, the expiration of the terms of
the Leases, and identification and explanation of any Tenants to whom Borrower has sent a notice of default, which default has not been cured; (4) a budget showing projected income and expenses (before and after Obligations service) for the
next twelve (12) month budget period; (5) any appraisals of the Property performed on behalf of any Recourse Parties and/or SHLP during the previous year; and (6) upon Lender’s request following an Event of Default, (x) a
schedule showing Borrower’s tax basis in the Property, (y) the distribution of economic interests in the Property, and (z) copies of any other loan documents affecting the Property. 

(ii) Notwithstanding anything to the contrary in Section 3.15 (a) (i) above, Borrower shall, until the Property has
achieved the Targeted Leasing Standard (as defined below), deliver the following information to Lender within sixty (60) days following the end of each calendar quarter: 

(1) An operating statement showing cash flow and capital expenditures for the Property including income and expenses
(before and after the debt service on the Loan), major capital improvements, and if applicable, a schedule showing tenant sales and percentage rent for retail properties; 

(2) A certified rent roll including security deposits held, the expiration of the terms of the Leases, and identification
and explanation of any tenants in default; 
 (3) Borrower’s written analysis (with the format of such
analysis being reasonably satisfactory to Lender) of (A) the Property’s actual property performance during the most recent quarter, including leasing velocity, rental rates and cash flow in comparison to the pro forma Borrower delivered to
Lender prior to date of this Instrument, (B) the concessions granted in connection with Leases entered into during the most recent quarter, the average rental rate achieved on such Leases, and projections of leasing expected to be achieved
during the current quarter as well as projections of concessions that will be offered during the current quarter, and (C) whether Borrower is on time and on budget with respect to capital improvements to the Property, renovation and
rehabilitation expenses, and tenant finish costs; and 
 (4) A comparison of the budget for the Property to
actual quarterly results with both monthly and year-to-date information included. 
 The “Targeted Leasing
Standard” shall be achieved when the Property is ninety-two percent (92%) leased to tenants in physical occupancy, paying full rent, open for business (with respect to retail tenant only), with credit reasonably acceptable to Lender
(with respect to office and retail tenants under Leases first entered into after the Closing of the Loan only), and not in monetary default or material non-monetary default under the terms of such tenant’s Lease and the Debt Service Coverage
Ratio (as defined below) is at least 1.35 to 1.00. The term “Debt Service Coverage Ratio” shall mean the ratio, as 

  
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reasonably determined by Lender, calculated by dividing (i) net operating income (“NOI”) by (ii) total annual debt service (“TADS”). NOI is the gross
annual income realized from operations of the Property for the applicable twelve (12) month period after subtracting all necessary and ordinary operating expenses (both fixed and variable) for that twelve (12) month period (assuming for
expense purposes only that the Property is ninety-five percent (95%) leased and occupied if actual leasing is less than ninety-five percent [95%]), including, without limitation, utilities, administrative, cleaning, landscaping, security,
repairs, and maintenance, ground rent payments, management fees, reserves for replacements, real estate and other taxes (on a fully-assessed basis after transfer of the Property), assessments and insurance, but excluding deduction for federal, state
and other income taxes, debt service expense, depreciation or amortization of capital expenditures (including but not limited to initial construction), and other similar non-cash items. Gross income shall be based on the cash actually received for
the preceding twelve months and projected income based on leases in place for the next succeeding twelve months, and ordinary operating expenses shall not be prepaid. Documentation of NOI and expenses shall be certified by an officer of Borrower
with detail satisfactory to Lender and shall be subject to the approval of Lender. TADS shall mean the aggregate debt service payments for any given calendar year on the Loan and on all other indebtedness secured, or to be secured, by any part of
the Property. Notwithstanding anything to the contrary in this paragraph, for the purposes of calculating NOI in connection with determining whether the Targeted Leasing Standard has been achieved, or the minimum Debt Service Coverage Ratio has been
achieved pursuant to Section 2(c) of the Escrow Agreement (Debt Service) or Section 24(c) of the Partial Recourse Guaranty, gross annual income realized from operations of the Property shall be calculated based on the cash actually
received for the preceding three months and then annualized. For the avoidance of doubt, the immediately preceding sentence shall only be applicable in connection with calculations made pursuant to this Section 3.15(a)(ii) or elsewhere in the
Documents where this Section 3.15 is specifically referenced in connection with the calculation of NOI. 
 (b) Delivery
of Reports. All of the reports, statements, and items required under this Section shall be (i) certified as being true, correct, and accurate by an authorized person, partner, or officer of the delivering party or, at the deliverer’s
option, audited by a Certified Public Accountant; (ii) satisfactory to Lender in form and substance (Lender acknowledges that the form and substance of the financial statements submitted to Lender in connection with the Application were
satisfactory); and (iii) delivered within (A) ninety (90) days after the end of Borrower’s fiscal year for annual reports and (B) forty-five (45) days after the end of each calendar quarter for quarterly reports. If any
one report, statement, or item is not received by Lender on its due date, a late fee of Five Hundred and No/100 Dollars ($500.00) per month shall be due and payable by Borrower; provided, that before the first late fee is imposed each calendar year,
Lender will give Borrower written notice of such failure and fifteen (15) days to deliver such report, statement or item. If any one report, statement, or item is not received after the expiration of (y) thirty (30) days after written
notice from Lender (the “First Notice”) and (z) ten (10) days after delivery of a second written notice from Lender (the “Second Notice”), which Second Notice shall not be delivered before the date that is
thirty (30) days after delivery of the First Notice, Lender may immediately declare an Event of Default under the Documents. Borrower shall (i) provide Lender with such additional financial, management, or other information regarding
Borrower, the sole member of Borrower, or the Property, as Lender may reasonably request and (ii) upon Lender’s request, deliver all items required by Section 3.15 in an electronic format (i.e. on computer disks) or by electronic
transmission acceptable to Lender. 
 (c) Inspection of Records. Borrower shall allow Lender or any person designated by
Lender to examine, audit, and make copies of all such books and records and all supporting data at the place where these items are located at all reasonable times after reasonable advance notice; provided that no notice shall be required after any
Event of Default under the Documents. Borrower shall assist Lender in effecting such examination. Upon five (5) days’ prior notice, Lender may inspect and make copies of Borrower’s or the sole member of Borrower’s income tax
returns with respect to the Property for the purpose of verifying any items referenced in this Section. 

  
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 Section 3.16 Borrower’s Certificates. Within ten (10) days after
Lender’s request, Borrower shall furnish a written certification to Lender and any Investors (defined below) as to (a) the amount of the Obligations outstanding; (b) the interest rate, terms of payment, and maturity date of the Note;
(c) the date to which payments have been paid under the Note; (d) whether any offsets or defenses exist against the Obligations and a detailed description of any listed; (e) whether all Leases are in full force and effect and have not
been modified (or if modified, setting forth all modifications); (f) the date to which the Rents have been paid; (g) whether, to the best knowledge of Borrower, any material defaults exist under the Leases and a detailed description of any
listed; (h) the security deposit held by Borrower under each Lease and that such amount is the amount required under such Lease; (i) whether there are any defaults (or events which with the passage of time and/or giving of notice would
constitute a default) under the Documents and a detailed description of any listed; (j) whether the Documents are in full force and effect; and (k) any other matters reasonably requested by Lender related to the Leases, the Obligations,
the Property, or the Documents. For all non-residential properties and promptly upon Lender’s request, Borrower shall use good faith, commercially reasonable efforts to deliver a written certification to Lender and Investors from Tenants
specified by Lender that: (a) their Leases are in full force and effect; (b) there are no defaults (or events which with the passage of time and/or notice would constitute a default) under their Leases and a detailed description of any
listed; (c) none of the Rents have been paid more than one month in advance; (d) there are no offsets or defenses against the Rents and a detailed description of any listed; and (e) any other matters reasonably requested by Lender
related to the Leases; provided, however, that Borrower shall not have to pay money to a Tenant to obtain such certification, but it will deliver a landlord’s certification for any certification it cannot obtain. 

Section 3.17 Intentionally Deleted. 
 Section 3.18 Additional Security. No other security now existing or taken later to secure the Obligations shall be affected by the execution of the Documents and all additional
security shall be held as cumulative. The taking of additional security, execution of partial releases, or extension of the time for the payment obligations of Borrower shall not diminish the effect and lien of this Instrument and shall not affect
the liability or obligations of any maker or guarantor. Neither the acceptance of the Documents nor their enforcement shall prejudice or affect Lender’s or Trustee’s right to realize upon or enforce any other security now or later held by
Lender or Trustee. Lender and/or Trustee may enforce the Documents or any other security in such order and manner as either of them may determine in its respective discretion. 
 Section 3.19 Further Acts. Borrower shall take all necessary actions to (i) keep valid and effective the lien and rights of Lender and Trustee under the Documents and
(ii) protect the lawful owner of the Documents. Promptly upon request by Lender or Trustee, and at Borrower’s expense, Borrower shall execute additional instruments and take such actions as Lender and/or Trustee reasonably believes are
necessary or desirable to (a) maintain or grant Lender and Trustee a first-priority, perfected lien on the Property, (b) grant to Lender and Trustee, to the fullest extent permitted by Laws, the right to foreclose on, or transfer title to,
the Property non-judicially, (c) correct any error or omission in the Documents, and (d) effect the intent of the Documents, including filing/recording the Documents, additional mortgages or deeds of trust, financing statements, and other
instruments. 
 Section 3.20 Compliance with Anti-Terrorism Regulations. 

(a) Borrower hereby covenants and agrees that (i) neither Borrower nor any guarantor, will knowingly conduct business with or engage
in any transaction with any person or entity named on any of the OFAC Lists or any person or entity included in, owned by, controlled by, acting for or on behalf of, 

  
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providing assistance, support, sponsorship, or services of any kind to, or otherwise associated with any of the persons or entities referred to or described in the OFAC Lists; and
(ii) Borrower shall take such actions as may be required by Laws to prevent any persons or entities holding any legal or beneficial interests whatsoever in Borrower or any guarantor (whether directly or indirectly), from knowingly conducting
business with or engaging in any transaction with any person or entity named on any of the OFAC Lists or any person or entity included in, owned by, controlled by, acting for, or on behalf of, providing assistance, support, sponsorship or services
of any kind to, or otherwise associated with any of the persons or entities referred to or described in the OFAC Lists. 
 (b)
Borrower hereby covenants and agrees that it will comply at all times with the requirements of Executive Order 13224; the International Emergency Economic Powers Act, 50 U.S.C. Sections 1701-06; the United and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56; the Iraqi Sanctions Act, Pub. L. 101-513, 104 Stat. 2047-55; the United Nations Participation Act, 22 U.S.C. Section 287c; the Antiterrorism and
Effective Death Penalty Act, (enacting 8 U.S.C. Section 219, 18 U.S.C. Section 2332d, and 18 U.S.C. Section 2339b); the International Security and Development Cooperation Act, 22 U.S.C. Section 2349 aa-9; the Terrorism Sanctions
Regulations, 31 C.F.R. Part 595; the Terrorism List Governments Sanctions Regulations, 31 C.F.R. Part 596; and the Foreign Terrorist Organizations Sanctions Regulations, 31 C.F.R. Part 597 and any similar laws or regulations currently in force or
hereafter enacted (collectively, the “Anti-Terrorism Regulations”). 
 (c) Borrower hereby covenants and agrees
that if it becomes aware or receives any notice that Borrower, any guarantor or the Property, or any person or entity holding any legal or beneficial interest whatsoever (whether directly or indirectly) in Borrower, any guarantor or in the Property,
is named on any of the OFAC Lists (such occurrence, an “OFAC Violation”), Borrower will immediately (i) give notice to Lender of such OFAC Violation, and (ii) comply with all Laws applicable to such OFAC Violation
(regardless of whether the party included on any of the OFAC Lists is located within the jurisdiction of the United States of America), including, without limitation, the Anti-Terrorism Regulations, and Borrower hereby authorizes and consents to
Lender’s taking any and all steps Lender deems necessary, in its sole discretion, to comply with all Laws applicable to any such OFAC Violation, including, without limitation, the requirements of the Anti-Terrorism Regulations (including the
“freezing” and/or “blocking” of assets). 
 (d) Upon Lender’s request from time to time during the term
of the Loan, Borrower agrees to deliver a certification confirming that the representations and warranties set forth in Section 2.09 above remain true and correct as of the date of such certificate and confirming Borrower’s and any
guarantor’s compliance with this Section 3.20. 
 Section 3.21 Compliance with Property as Single Asset.
Borrower hereby covenants and agrees that (i) during the term of the Loan, Borrower shall not own any assets in addition to the Property, (ii) the Property shall remain as a single property or project comprised of three (3) separate
buildings (prior to any Partial Release that may occur pursuant to Section 5.03 hereof), and (iii) during the term of the Loan, the Property shall generate substantially all of the gross income of Borrower and there shall be no substantial
business being conducted, either directly or indirectly, by Borrower other than the business of operating the Property and the activities incidental thereto. 
 Section 3.22 Intentionally Deleted. 
 Section 3.23 Intentionally Deleted.

  
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 Section 3.24 Tax Status of Borrower. Borrower shall not be a “foreign person”
within the meaning of Sections 1445 and 7701 of the Revenue Code. Borrower currently is a “disregarded entity” as defined in Section 1.1445-2(b)(2)(iii) of the Income Tax Regulations issued under the Revenue Code, and Borrower
shall not change such tax status if such change would violate the provisions of Section 5.01 below. 
 Section 3.25
Disclosure. Borrower shall disclose to Lender any material fact that could cause any representation or warranty made in this Instrument to be materially misleading. 
 Section 3.26 Illegal Activity. No portion of the Property will be purchased, improved, fixtured, equipped or furnished by Borrower with proceeds of any illegal activity, and
neither Borrower nor Borrower shall engage in, and Borrower shall take commercially reasonable efforts to prevent others from engaging in, illegal activities at or on the Property. 

ARTICLE IV - ADDITIONAL ADVANCES; EXPENSES; SUBROGATION 
 Section 4.01 Expenses and Advances. Borrower shall pay all reasonable appraisal, recording, filing, registration, brokerage, abstract, title insurance (including premiums), title
searches and examinations, surveys and similar data and assurances with respect to title, U.C.C. search, escrow, attorneys’ (both in-house staff and retained attorneys), engineers’, environmental engineers’, environmental testing, and
architects’ fees, costs (including travel), expenses, and disbursements incurred by Borrower, Lender, or Trustee and reasonable fees charged by Lender and/or Trustee in connection with the granting, closing, servicing (other than routine loan
servicing performed in the ordinary course of business and for the performance of which Lender is not routinely reimbursed by other borrowers in the ordinary course of Lender’s business), and enforcement of the Loan and the Documents or other
costs and expenses payable by Borrower or reimburseable to Lender under the Documents. The term “Costs” shall mean any of the foregoing incurred in connection with (a) any default by Borrower under the Documents, (b) the
servicing (other than routine loan servicing performed in the ordinary course of business and for the performance of which Lender is not routinely reimbursed by other borrowers in the ordinary course of Lender’s business) of the Loan, or
(c) the exercise, enforcement, compromise, defense, litigation, or settlement of any of Lender’s and Trustee’s rights or remedies under the Documents or relating to the Loan or the Obligations. If Borrower fails to pay any amounts or
perform any actions required under the Documents and the same is not cured within applicable grace or cure periods, Lender or Trustee may (but shall not be obligated to) advance sums to pay such amounts or perform such actions. Borrower grants
Lender or Trustee the right to enter upon and take possession of the Property to remedy any such failure and the right to take such actions in Borrower’s name if such failure is not cured within applicable grace or cure period. No advance or
performance shall be deemed to have cured a default by Borrower. All (a) sums advanced by or payable to Lender or Trustee per this Section or under applicable Laws, (b) except as expressly provided in the Documents, payments due under the
Documents which are not paid in full when due (subject to applicable notice, grace and cure periods), and (c) Costs, shall: (i) be deemed demand obligations, (ii) bear interest upon demand at the Default Rate until paid if not paid on
demand, (iii) be part of, together with such interest, the Obligations, and (iv) be secured by the Documents. Lender or Trustee, upon making any such advance, shall also be subrogated to rights of the person receiving such advance.

 Section 4.02 Subrogation. If any proceeds of the Note were used to extinguish, extend or renew any indebtedness on
the Property, then, to the extent of the funds so used, (a) Lender and Trustee shall be subrogated to all liens, titles and interests existing on the Property held by the holder of such indebtedness and (b) these liens, titles and
interests are not waived but rather shall (i) continue in full force and effect in favor of Lender and Trustee and (ii) are merged with the lien and security interest created by the Documents as cumulative security for the payment and
performance of the Obligations. 

  
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 ARTICLE V - SALE, TRANSFER, OR ENCUMBRANCE OF THE PROPERTY 

Section 5.01 Due-on-Sale or Encumbrance. 
 (a) It shall be an Event of Default and, at the sole option of Lender, Lender may accelerate the Obligations and the entire Obligations (including any Prepayment Premium) shall become immediately due and
payable, if, without Lender’s prior written consent (which consent may be given or withheld for any or for no reason or given conditionally, in Lender’s sole discretion) any of the following shall occur: 

(i) Borrower shall sell, convey, assign, transfer, dispose of or be divested of its title to, convey security title to, mortgage,
encumber or cause to be encumbered (except for the imposition of mechanics’ or materialmen’s liens which are removed, bonded off, or otherwise discharged within sixty (60) days after the filing of such mechanics’ or
materialmen’s lien) the Property or any interest therein, in any manner or way, whether voluntary or involuntary; or 

(ii) in the event of any merger, consolidation, sale, transfer, assignment, liquidation, or dissolution involving any or all of the
assets of Borrower (except for the sale or transfer of physical personal property at the end of its useful life) or all or substantially all of the assets of any general partner or managing member of Borrower; or 

(iii) in the event of the assignment, transfer, pledge, voluntary or involuntary sale, or encumbrance (or any of the foregoing at one
time or over any period of time) of: 
 (1) (1) any ownership interests in Borrower, regardless of the type
or form of entity of Borrower, (2) the voting stock or ownership interest of any corporation or limited liability company which is, respectively, general partner or managing member of Borrower or any corporation or limited liability company
directly or indirectly owning ten percent (10%) or more of any such corporation or limited liability company, or (3) the ownership interests in any owner of ten percent (10%) or more of the beneficial interests of Borrower if Borrower
is a trust; or 
 (2) any general partnership, managing member or controlling interest in (1) Borrower,
(2) an entity which is in Borrower’s chain of ownership and which is derivatively liable for the obligations of Borrower, or (3) any entity that has the right to participate directly or indirectly in the control of the management or
operations of Borrower; or 
 (iv) in the event of the conversion of any general partnership interest in Borrower to a limited
partnership interest, if Borrower is a partnership; or 
 (v) in the event of any substitution, removal, or resignation of any
general partner of Borrower, if Borrower is a partnership; or 
 (vi) in the event of any change, removal, addition or
resignation of a managing member of Borrower (or if no managing member, any member) if Borrower is a limited liability company; or 
 (vii) Borrower shall (A) guarantee, or otherwise agree to be liable for (whether conditionally or unconditionally), any obligations of any person or entity or (B) obtain any unsecured debt
except for (1) customary and reasonable short-term trade payables obtained by Borrower and repaid by Borrower in the ordinary course of Borrower’s business and (2) as long as there is no Event of Default under the Loan, loans to
Borrower from natural persons or entities that directly or indirectly own an 

  
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interest in Borrower or share common ownership with Borrower (“Affiliate Loans”), provided such Affiliate Loans shall be unsecured, shall be expressly subordinate in all respects
to the Loan and the rights of Lender (which subordination shall be pursuant to documentation acceptable to Lender and shall contain such controls with respect to such subordination as Lender shall require, including, but not limited to, the payment
obligations under such Affiliate Loans and the collection rights of the holders of such Affiliate Loans shall be subordinate in all respects to the Loan), and do not exceed in the aggregate Ten Million and No/100 Dollars ($10,000,000.00), and
Borrower shall pay (x) all costs and expenses incurred by Lender for the processing of Borrower’s request for such Affiliate Loans including a processing fee of $1,500 and (y) all other costs and expenses (including attorneys’
fees and expenses for Lender’s outside counsel) involved in such proposed Affiliate Loans, the drafting and negotiation of the subordination and intercreditor agreement (which shall provide for certain controls over such Affiliate Loans in the
event of a bankruptcy of Borrower), and the preparation, review and negotiation of any other documents deemed reasonably necessary by Lender. 
 (b) Notwithstanding any of the foregoing to the contrary, the provisions of Section 5.01(a) above will not apply to transfers by B.F. Saul II or B.F. Saul III of ownership interests in SHLP and SCI
as a result of the death of either of them, or in connection with conveyances by either B.F. Saul II or B.F. Saul III in connection with estate planning to a spouse, son or daughter or descendant of either, or to a stepson or stepdaughter or
descendant of either. Additionally, provided that no non-monetary Event of Default for which Borrower has received written notice from Lender or monetary Event of Default exists at the time of any transfer described in items (A) and (B) of
this Section 5.01(b) below, then the provisions of Section 5.01(a) shall not apply to the following ( the “Saul Permitted Transfers”): 

(A) transfers of interests, admissions of additional members, limited partners or shareholders, and other structural
changes, in SHLP or SCI, or any owner of a direct or indirect legal or beneficial interest in either of them, including, but not limited to, their respective partners, members or shareholders (a “Transfer”), provided after giving
effect thereto (i) no Merger (as defined below) shall result from such Transfer, whether considered individually or when considered in the aggregate with other related transactions; (it being agreed by the parties that a Merger shall require
the prior written consent of Lender, which consent shall be in the sole discretion of Lender); (ii) Borrower remains owned 100% by SHLP; (iii) B.F. Saul II or B.F. Saul III, each an individual, members of their respective families, trusts
for the benefit of any of the same, and/or companies or entities controlled, directly or indirectly, by any of the same (individually or collectively the “Saul Parties”), continue to own, directly or indirectly, at least ten percent
(10%) of the partnership units of SHLP, whether directly or indirectly through ownership of limited partnership interests or directly or indirectly through ownership of the common stock of SHLP’s sole managing general partner, SCI on a
fully diluted basis (the “Saul Parties’ Minimum Ownership Percentage”); and (iv) SCI remains at all times the sole managing general partner of SHLP, with not less than a 51% partnership interest in SHLP as general partner,
and maintains, at all times, effective legal and day to day management control of Borrower, SHLP and the Property; and 
 (B) pledges of direct or indirect ownership interests in SHLP, including pledges of stock of SCI but excluding any pledge by SCI of its general partnership interest in SHLP (collectively,
“Permitted Pledges”); provided that (i) the Saul Parties continue to own the Saul Parties’ Minimum Ownership Percentage; (ii) SCI remains at all times the sole managing general partner of SHLP, with not less than a
51% partnership interest in SHLP as general partner, and maintains, at all times, effective legal and day to day management control of Borrower, SHLP and the Property; and (iii) no Merger (as defined below) shall result from such Transfer,
whether considered individually or when 

  
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considered in the aggregate with other related transactions; (it being agreed by the parties that a Merger shall require the prior written consent of Lender, which consent shall be in the sole
discretion of Lender); it is further agreed that (i) any transfer of a direct or indirect interest in Borrower, whether through foreclosure of a pledge or transfer in lieu of foreclosure of a pledge or otherwise, that results in a violation of
subparts (i), (ii) or (iii) above shall constitute an Event of Default under the Documents and shall not be deemed a Saul Permitted Transfer; and (y) any Permitted Pledge shall not be deemed a transfer of the interest so pledged and,
therefore, shall not reduce the Saul Parties’ Minimum Ownership Percentage unless and until it is foreclosed or transferred in lieu of foreclosure. 
 Borrower shall pay all costs and expenses, including reasonable attorneys’ fees and disbursements, incurred by Lender in connection with any transfer. 

(c) (i) Within thirty (30) days following a written request to Borrower by Lender, Borrower shall deliver to Lender (a) a
statement showing the current direct ownership of the Borrower (and a then current organizational chart of SHLP and SCI), (b) a certification from Borrower that Borrower remains in compliance with Section 3.11 of this Instrument,
(c) a certification from Borrower that Borrower remains in compliance with the representations, warranties and covenants in Section 2.09 and 3.20 of this Instrument; provided, however, that with respect to shareholders in SCI any such
certification shall be made to Borrower’s actual knowledge. Without limiting the provisions of the preceding sentence, in the event of a Saul Permitted Transfer, Borrower and the transferee of the ownership interests in Borrower being
transferred shall be deemed to have made the certification, as of the date of the applicable transfer, described in subsections (b) and (c) (in the immediately preceding sentence) in favor of Lender, as a result of the transfer, and the
acceptance thereof, of the applicable ownership interests in Borrower. 
 (ii) The term “Merger” shall mean
when (w) at one time or over time, fifty-one percent (51%) or more by value of the assets of SHLP and/or SCI are sold, transferred or assigned to one or more third parties (“third parties” being parties other than SCI,
SHLP and any entities 100% owned by either SCI or SHLP), other than for the reasonable market value of such assets at the time of transfer; or (x) any Person or two or more Persons, other than Saul Parties, acting in concert shall have acquired
beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Act of 1934), of voting equity interests of SCI representing fifty-one percent (51%) or more of all voting equity interests in
SCI; or (y) any Person or two or more Persons, other than Saul Parties, acting in concert shall have acquired by contract or otherwise control over voting equity interests in the SCI (or other interests convertible into such interests)
representing fifty-one percent (51%) or more of all voting equity interests in the SCI. For purposes of this provision, the term “Person” shall mean and include an individual, a partnership, a joint venture, a corporation, a
limited liability company, a limited liability partnership, any other entity having limited liability for its owners under the law of its creation, a trust, an unincorporated organization and a government or any department or agency thereof.

 Section 5.02 One-Time Transfer. Notwithstanding Section 5.01 above, and so long as (i) a transfer
pursuant to this Section 5.02 shall not occur prior to the first day following the full release of that certain Partial Recourse Guaranty of even date herewith from SCI in favor of Lender (the “Recourse Guaranty”), and
(ii) there is no default under the Documents, Lender agrees, upon thirty (30) days’ prior written request, to consent to the original Borrower’s one transfer of the entire Property if: 

(a) the proposed transferee of the Property shall be a newly formed special purpose entity that meets the special purpose entity
requirements set forth in Section 3.22 of this Instrument and that is wholly owned and controlled by a person which, in the judgment of Lender, has financial capability and 

  
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creditworthiness, reputation and experience in the ownership, operation, management, and leasing of similar properties, equal to or greater than that of Borrower’s principals; it being
understood, without limiting the foregoing, that the proposed transferee shall not be acceptable if (i) upon assumption of the Loan, such transferee’s and/or its parent, affiliates’, and/or related entities’ credit obligations
shall exceed Lender’s individual or related borrower limits as established by Lender from time to time in its sole discretion or (ii) the proposed transferee is related to Lender or advised by Lender or any affiliate of Lender; 

(b) at the time of transfer the Loan to Value Ratio (defined below) does not exceed fifty five percent (55 %); 

(c) Borrower pays Lender a non-refundable servicing fee (as specified by Lender) at the time of the request and an additional fee equal
to sixty-five hundredths percent (0.65%) of the outstanding principal balance of the Loan at the time of the transfer, less the amount of the non-refundable servicing fee paid to Lender; 

(d) at Lender’s option, Lender’s title policy is endorsed to verify the first priority of the Documents at Borrower’s
expense; 
 (e) the Debt Service Coverage Ratio (defined below) is at least 1.75 to 1.00 for the preceding twelve
(12) month period, and Lender receives satisfactory evidence that this Debt Service Coverage Ratio will be maintained for the next succeeding twelve (12) months; 
 (f) the transferee expressly assumes all obligations under the Documents and executes any documents reasonably required by Lender, and all of these documents are satisfactory in form and substance to
Lender, and a guarantor acceptable to Lender executes a guaranty and indemnities (pursuant to documents satisfactory in form and substance to Lender) with respect to all of the obligations contained in Paragraphs 8 and 9 of the Note, Sections 3.11,
3.12, 8.04 and 8.05 of this Instrument, and the Environmental Indemnity; 
 (g) Lender reasonably approves the form and content
of all transfer documents and the transferee’s organizational documents, and Lender is furnished with a certified copy of the recorded transfer documents; 
 (h) the transferee complies with and delivers the ERISA certification required under Section 3.11 of this Instrument and the Environmental Indemnity of even date herewith; 

(i) Borrower shall provide a copy of (i) the purchase and sale agreement (and all amendments thereto) for the Property at the time
of the transfer request or within five (5) days of execution, (ii) all amendments to the purchase and sale agreement after delivery of said agreement to Lender, and (iii) a fully-executed closing statement upon closing of the
transfer; 
 (j) the transferee shall sign and deliver Lender’s current credit certification at the time of the request,
which shall include a representation that the proposed transferee and all persons or entities holding any legal or beneficial interest whatsoever in the proposed transferee are not included in, owned by, controlled by, acting for or on behalf of,
providing assistance, support, sponsorship, or services of any kind to, or otherwise associated with any of the persons or entities referred to or described in the OFAC Lists; and 

(k) Borrower or the transferee pays all reasonable fees, costs, and expenses incurred by Lender in connection with the proposed transfer,
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disbursements (for both outside counsel and Lender’s staff attorneys), accounting, title insurance, documentary stamps taxes, intangible taxes, mortgage taxes, recording fees, and appraisal
fees, whether or not the transfer is actually consummated. 
 The term “Loan to Value Ratio” shall mean the ratio, as
reasonably determined by Lender, of (i) the aggregate principal balance of all encumbrances against the Property to (ii) the fair market value of the Property. The term “Debt Service Coverage Ratio” shall mean the ratio,
as reasonably determined by Lender, calculated by dividing (i) net operating income (“NOI”) by (ii) total annual debt service (“TADS”). NOI is the gross annual income realized from operations of the
Property for the applicable twelve (12) month period after subtracting all necessary and ordinary operating expenses (both fixed and variable) for that twelve (12) month period (assuming for expense purposes only that the Property is
ninety-five percent [95%] leased and occupied if actual leasing is less than ninety-five percent [95%]), including, without limitation, utilities, administrative, cleaning, landscaping, security, repairs, and maintenance, ground rent payments,
management fees, reserves for replacements, real estate and other taxes (on a fully-assessed basis after transfer of the Property), assessments and insurance, but excluding deduction for federal, state and other income taxes, debt service expense,
depreciation or amortization of capital expenditures, and other similar non-cash items (including, but not limited to, initial construction). Gross income shall be based on the cash actually received for the preceding twelve months and projected
income based on leases in place for the next succeeding twelve months, and ordinary operating expenses shall not be prepaid. Documentation of NOI and expenses shall be certified by an officer of Grantor with detail satisfactory to Lender and shall
be subject to the approval of Lender. TADS shall mean the aggregate debt service payments for any given calendar year on the Loan and on all other indebtedness secured, or to be secured, by any part of the Property. 

Notwithstanding anything to the contrary in this Section 5.02, Borrower shall not have the right to a one-time transfer until such time as Lender
has fully released the Recourse Guaranty in accordance with the terms of such guaranty. 
 Section 5.03 Partial
Release. 
 (a) Upon not less than thirty (30) days’ prior written notice from Borrower, Lender shall release
(the “Partial Release”) from the lien of this Instrument that portion of the Property known as the “North Block” and more particularly described in Exhibit D attached hereto (the “Release Parcel”),
provided that (i) at the time such request is made and at the time of the Partial Release, there is no Event of Default under the Documents; (ii) Borrower pays to Lender at the time of the release an amount equal to the sum of (a) an
amount equal to 28.8% of the unpaid principal balance of the Loan at that time (the “North Parcel Allocated Loan Amount”) plus (b) the Prepayment Premium applicable to the North Parcel Allocated Loan Amount; plus (c) all
accrued interest with respect to the North Parcel Allocated Loan Amount, (iii) Borrower delivers to Lender, at Borrower’s sole cost, such title insurance coverage as Lender may deem reasonably necessary to insure that this Instrument
remains a valid first lien against the remainder of the Property (the “Remaining Property”), with access to all of the public sidewalks surrounding the Remaining Property and with access at the same access points as exist on the
date hereof to the publicly dedicated streets of North Garfield Street and North Highland Street, subject only to such exceptions to title as were evidenced in the title policy insuring this Instrument, current taxes due but not yet payable, such
exceptions approved in writing by Lender after the date hereof, and such other exceptions as may be approved by Lender, in its sole discretion; (iv) Lender shall have received evidence satisfactory to it that the Debt Service Coverage Ratio
(using the Debt Service Coverage Ratio and NOI definitions contained in Section 5.02) is at least 1.60 to 1.00 for the preceding twelve (12) month period and Lender receives satisfactory evidence that this Debt Service Coverage Ratio will
be maintained for the next succeeding twelve (12) months with respect to the Remaining Property; (v) the Loan to Value Ratio (as defined in Section 5.02) of the Loan (after the payment of the North Parcel Allocated Loan

  
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Amount) to the Remaining Property shall not exceed fifty-five percent (55%); (vi) Lender shall have received satisfactory evidence that both the Release Parcel and the Remaining Property
shall be in compliance with all applicable laws, ordinances, rules and regulations, including, but not limited to, lot split and platting requirements, building codes, subdivision, zoning, and land use laws; (vii) Lender shall have received
satisfactory evidence that both the Release Parcel and the Remaining Property will constitute separate real estate tax parcels, and accordingly each will be separately taxed and assessed; (viii) any space lease applicable to the Release Parcel
shall be separate from all space leases applicable to the Remaining Property and any lease on the Remaining Property shall not be dependent on or tied in any way to any space lease on the Release Parcel; (ix) Borrower shall pay, at the time of
the request for the Partial Release, a servicing fee of $10,000 and Lender’s legal fees and disbursements and expenses incurred in connection with the request for the Partial Release whether or not the request for the Partial Release is granted
by Lender; (x) Lender shall have determined, in its sole discretion, that the Remaining Property will have all of the underground parking below the Remaining Property (which is comprised of 460 spaces) and no other property or property owner
shall be granted an easement to use any of such 460 parking spaces under the Remaining Property except for an easement (in form and substance reasonably satisfactory to Lender) for use by the public and customers of the retail tenants on the Release
Parcel; (xi) Lender shall have received evidence satisfactory to Lender that all necessary Tenant approvals (if any) have been obtained in connection with the Partial Release; (xii) Borrower and any guarantor shall reaffirm their
respective obligations under the Documents; (xiii) the Partial Release shall not affect any obligations of Borrower or any guarantor under the Documents, except that the monthly principal and interest payment amount due under Section 1(b)
of the Note shall be adjusted in accordance with the provisions of Paragraph 1(e) of the Note; (xiv) Borrower shall have created easements for utilities, signage, drainage, parking, ingress and egress and other appropriate purposes in, on and
over the Release Parcel for the benefit of the Remaining Property to the extent required by Lender and such easements shall be insured as appurtenances in Lender’s title insurance policy via appropriate endorsements; and (xv) Lender shall
receive an updated survey and legal descriptions of the Release Parcel and the Remaining Property. Notwithstanding anything contained herein to the contrary, if after payment of the North Parcel Allocated Loan Amount the financial tests set forth in
clauses (iv) and (v) above would not be satisfied, then Borrower shall have the right to increase the North Parcel Allocated Loan Amount to the amount that would need to be repaid in order to cause the conditions set forth in clauses
(iv) and (v) to be satisfied. 
 (b) This Section 5.03 shall be personal to the original Borrower under the Loan,
and no transferee (including, but not limited to a transferee pursuant to Section 5.02) shall have any rights under this Section 5.03. 
 (c) In the event there is Damage to only the Release Parcel or a Taking involving only the Release Parcel, and Lender elects, pursuant to Section 3.07(b) or 3.08(c), to apply the insurance proceeds
or the Award to payment of the Obligations (the “Application Election”), then Borrower may elect, by written notice to Lender within 10 days after Borrower has been given notice of the Application Election by Lender, to obtain the
Partial Release so long as Borrower complies with all the requirements of Section 5.03(a) above. In such event Borrower will be entitled to a credit against the payment of the North Parcel Allocated Loan Amount equal to the net payment received
by Lender pursuant to Section 3.07(b)(iii)(2)(A) or Section 3.08(c)(2)(A) (the “Paydown Credit”). No Prepayment Premium will be due in connection with the Paydown Credit, but Borrower will be required to pay a Prepayment Premium
on the difference between the North Parcel Allocated Loan Amount and the Paydown Credit. 
 (d) Notwithstanding the provisions
of Section 3.05(d) above, Lender agrees to consider in good faith requests from Borrower for Lender’s consent to any easements over the Remaining Property for the benefit of the Release Parcel in connection with the Partial Release.

  
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 ARTICLE VI - DEFAULTS AND REMEDIES 

Section 6.01 Events of Default. The following shall be an “Event of Default”: 

(a) if Borrower fails to make any payment required under the Note or other Documents when due and such failure continues for five
(5) days after written notice; provided, however, that if Lender gives one (1) notice of such a monetary default within any twelve (12) month period, Borrower shall not have any further right to any notice of a monetary default during
the next following twelve (12) month period; provided, further, however, Borrower shall not have any right to any such notice upon the maturity date of the Note; 
 (b) except for defaults listed in the other subsections of this Section 6.01, if Borrower fails to perform or comply with any other provision contained in the Documents and the default is not cured
within thirty (30) days of Lender’s providing written notice thereof (the “Grace Period”); provided, however, that Lender will extend the Grace Period up to an additional ninety (90) days (for a total of one hundred twenty
(120) days from the date of default) if (i) Borrower promptly commences and diligently pursues the cure of such default and delivers (within the Grace Period) to Lender a written request for more time and (ii) Lender determines in
good faith that (1) such default cannot be cured within the Grace Period but can be cured within one hundred twenty (120) days after the default, (2) no lien or security interest created by the Documents will be impaired prior to
completion of such cure, and (3) Lender’s immediate exercise of any remedies provided hereunder or by law is not necessary for the protection or preservation of the Property or Lender’s or Trustee’s security interest; 

(c) if any representation made (i) in connection with the Loan or the Obligations or (ii) in the Loan application or Documents
shall be false or misleading in any material respect; 
 (d) if there is a transfer of the Property or any direct or indirect
interest therein in violation of Article V; 
 (e) if Borrower shall (i) become insolvent, (ii) make a transfer in
fraud of creditors, (iii) make an assignment for the benefit of its creditors, (iv) not be able to pay its debts as such debts become due, or (v) admit in writing its inability to pay its debts as they become due; 

(f) if any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding, or any other proceedings for the relief of
debtors, is instituted by or against Borrower, and, if instituted against Borrower, is allowed, consented to, or not dismissed within the earlier to occur of (i) ninety (90) days after such institution or (ii) the filing of an order
for relief; 
 (g) if any of the events in Sections 6.01 (e) or (f) shall occur with respect to any (i) managing
member of Borrower (if Borrower is a limited liability company), (ii) general partner of Borrower (if Borrower is a partnership), or (iii) guarantor of payment and/or performance of any of the Obligations; 

(h) if the Property shall be taken, attached, or sequestered on execution or other process of law in any action against Borrower
(including, by way of example, a Federal seizure of the Property on account of illegal activity, but excluding condemnation and the filing of Liens [which are addressed in Sections 3.08, 3.09 and 5.01(a)(i) hereinabove]) and such default is not
cured within thirty (30) days after notice from Lender; provided, that if Lender reasonably determines that title to the Property is in danger of being irretrievably lost, then Tenant shall not be entitled to any notice or cure period;

 (i) if any default occurs under the Environmental Indemnity (defined below) and such default is not cured within the cure
period set forth in Section 6.01(b) above; 

  
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 (j) if Borrower shall fail at any time to obtain, maintain, renew, or keep in force the
insurance policies required by Section 3.06 within ten (10) days after written notice; 
 (k) if Borrower shall be in
default beyond applicable cure period under any other mortgage, deed of trust, or security agreement covering any part of the Property, whether it be superior or junior in lien to this Instrument; 

(l) if any claim of priority (except based upon a Permitted Encumbrance) to the Documents by title, lien, or otherwise shall be upheld by
any court of competent jurisdiction or shall be consented to by Borrower; 
 (m) (i) the consummation by Borrower of any
transaction which would cause (A) the Loan or any exercise of Lender’s rights under the Documents to constitute a non-exempt prohibited transaction under ERISA or (B) a violation of a state statute regulating governmental plans;
(ii) the failure of any representation in Section 3.11 to be true and correct in all respects; or (iii) the failure of Borrower to provide Lender with the written certifications required by Section 3.11(c), unless such default is
cured within the lesser of (x) fifteen (15) days after written notice of such default to Borrower or (y) the shortest cure period, if any, provided for under any Laws applicable to such matters (including, without limitation, ERISA);
and 
 (n) (i) the consummation by Borrower of any transaction which would cause an OFAC Violation; (ii) the failure of any
representation in Section 2.09 to be true and correct in all respects; or (iii) the failure of Borrower to comply with the provisions of Section 3.20, unless such default is cured within the lesser of (A) fifteen (15) days
after written notice of such default to Borrower or (B) the shortest cure period, if any, provided for under any Laws applicable to such matters (including, without limitation, the Anti-Terrorism Regulations). 

Section 6.02 Remedies. If an Event of Default occurs (unless Lender has accepted cure of such Event of Default by specific
written statement from Lender to Borrower acknowledging Lender’s acceptance of such cure, and Borrower specifically understands and agrees that Lender shall have no obligation to accept the cure of any Event of Default), Lender, or any person
designated by Lender or Lender acting by or through Trustee, may (but shall not be obligated to) take any enforcement action (separately, concurrently, cumulatively, and at any time and in any order) permitted under any Laws, without notice, demand,
presentment, or protest (all of which are hereby waived), to protect and enforce Lender’s or Trustee’s rights under the Documents or Laws including the following actions: 

(a) accelerate and declare the entire unpaid Obligations immediately due and payable, except for defaults under Section 6.01 (f),
(g), or (h) which shall automatically make the Obligations immediately due and payable; 
 (b) judicially or otherwise,
(i) completely foreclose this Instrument or (ii) partially foreclose this Instrument for any portion of the Obligations due and the lien and security interest created by this Instrument shall continue unimpaired and without loss of
priority as to the remaining Obligations not yet due; 
 (c) sell for cash or upon credit the Property and all right, title and
interest of Borrower therein and rights of redemption thereof, pursuant to power of sale; 
 (d) subject to the limitations
referred to in Section 8.01 hereof, recover judgment on the Note either before, during or after any proceedings for the enforcement of the Documents and without any requirement of any action being taken to (i) realize on the Property or
(ii) otherwise enforce the Documents; 

  
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 (e) seek specific performance of any provisions in the Documents; 

(f) apply for the appointment of a receiver, custodian, trustee, liquidator, or conservator of the Property without (i) notice to
any person, (ii) regard for (A) the adequacy of the security for the Obligations or (B) the solvency of Borrower or any person liable for the payment of the Obligations; and Borrower and any person so liable waives or shall be deemed
to have waived the foregoing and any other objections to the fullest extent permitted by Laws and consents or shall be deemed to have consented to such appointment; 
 (g) with or without entering upon the Property, (i) exclude Borrower and any person from the Property without liability for trespass, damages, or otherwise (other than that arising directly from
Lender’s gross negligence or willful misconduct); (ii) take possession of, and Borrower shall surrender on demand, all books, records, and accounts relating to the Property; (iii) give notice to Tenants or any person, make demand for,
collect, receive, sue for, and recover in its own name all Rents and cash collateral derived from the Property; (iv) use, operate, manage, preserve, control, and otherwise deal with every aspect of the Property including (A) conducting its
business, (B) insuring it, (C) making all repairs, renewals, replacements, alterations, additions, and improvements to or on it, (D) completing the construction of any Improvements in manner and form as Lender deems advisable, and
(E) executing, modifying, enforcing, and terminating new and existing Leases on such terms as Lender deems advisable and evicting any Tenants in default; (v) apply the receipts from the Property to payment of the Obligations, in any order
or priority determined by Lender, after first deducting all Costs, expenses, and liabilities incurred by Lender or Trustee in connection with the foregoing operations and all amounts needed to pay the Impositions and other expenses of the Property,
as well as just and reasonable compensation for the services of Lender, Trustee, and their attorneys, agents, and employees; and/or (vi) in every case in connection with the foregoing, exercise all rights and powers of Borrower, or Lender or
Trustee with respect to the Property, either in Borrower’s name or otherwise; 
 (h) release any portion of the Property
for such consideration, if any, as Lender may require without, as to the remainder of the Property, impairing or affecting the lien or priority of this Instrument or improving the position of any subordinate lienholder with respect thereto, except
to the extent that the Obligations shall have been actually reduced, and Lender may accept by assignment, pledge, or otherwise any other property in place thereof as Lender may require without being accountable for so doing to any other lienholder;

 (i) apply any Deposits to the following items in any order and in Lender’s sole discretion: (A) the Obligations,
(B) Costs, (C) advances made by Lender or Trustee under the Documents, and/or (D) Impositions; 
 (j) take all
actions permitted under the U.C.C. of the Property State including (i) the right to take possession of all tangible and intangible personal property now or hereafter included within the Property (“Personal Property”) and take
such actions as Lender or Trustee deems advisable for the care, protection and preservation of the Personal Property and (ii) request Borrower at its expense to assemble the Personal Property and make it available to Lender or Trustee at a
convenient place acceptable to Lender or Trustee. Any notice of sale, disposition or other intended action by Lender or Trustee with respect to the Personal Property sent to Borrower at least five (5) days prior to such action shall constitute
commercially reasonable notice to Borrower; or 
 (k) take any other action permitted under any Laws. 

  
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 If Lender or Trustee exercises any of its rights under Section 6.02(g), Lender and
Trustee shall not (a) be deemed to have entered upon or taken possession of the Property except upon the exercise of its option to do so, evidenced by its demand and overt act for such purpose; (b) be deemed a beneficiary or mortgagee in
possession by reason of such entry or taking possession; nor (c) be liable (i) to account for any action taken pursuant to such exercise other than for Rents actually received by Lender or Trustee, (ii) for any loss sustained by
Borrower resulting from any failure to lease the Property, or (iii) any other act or omission of Lender or Trustee except for losses caused by Lender’s or Trustee’s willful misconduct or gross negligence. Borrower hereby consents to,
ratifies, and confirms the exercise by Lender and Trustee of its or their rights under this Instrument and appoints Lender and Trustee as its attorney-in-fact, which appointment shall be deemed to be coupled with an interest and irrevocable, for
such purposes. 
 Section 6.03 Expenses. All Costs, expenses, or other amounts paid or incurred by Lender or Trustee
in the exercise of its or their rights under the Documents, together with interest thereon at the applicable interest rate specified in the Note, which shall be the Default Rate unless prohibited by Laws, shall be (a) part of the Obligations,
(b) secured by this Instrument, and (c) allowed and included as part of the Obligations in any foreclosure, decree for sale, power of sale, or other judgment or decree enforcing Lender’s and/or Trustee’s rights under the
Documents. 
 Section 6.04 Rights Pertaining to Sales. To the extent permitted under (and in accordance with) any
Laws, the following provisions shall, as Lender or Trustee may determine in its or their sole discretion, apply to any sales of the Property under Article VI, whether by judicial proceeding, judgment, decree, power of sale, foreclosure or otherwise:
(a) Lender or Trustee may conduct a single sale of the Property or multiple sales of any part of the Property in separate tracts or in its entirety or any other manner consistent with applicable Laws as Lender deems in its best interests and
each of Borrower waives any right to require otherwise; (b) if Lender elects more than one sale of the Property, Lender may at its option cause the same to be conducted simultaneously or successively, on the same day or on such different days
or times and in such order as Lender may deem to be in its best interests, no such sale shall terminate or otherwise affect the lien of this Instrument on any part of the Property not then sold, and Borrower shall pay the costs and expenses of each
such sale; (c) any sale may be postponed or adjourned by public announcement at the time and place appointed for such sale or for such postponed or adjourned sale without further notice or such sale may occur, without further notice, at the
time fixed by the last postponement or a new notice of sale may be given; and (d) Lender may acquire the Property and, in lieu of paying cash, may pay by crediting against the Obligations the amount of its bid, after deducting therefrom any
sums which Lender or Trustee is authorized to deduct under the provisions of the Documents. After any such sale, Trustee shall deliver to the purchaser at such sale the Trustee’s deed conveying the property so sold, but without any covenant or
warranty, express or implied. The recitals in any such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any Person, including Borrower, Trustee or Lender, may purchase at such sale. 

Section 6.05 Application of Proceeds. Any proceeds received from any sale or disposition under Article VI or otherwise, together
with any other sums held by Lender or Trustee, shall, except as expressly provided to the contrary, be applied in the order determined by Lender to: (a) payment of all Costs and expenses of any enforcement action, or foreclosure sale, transfer
of title by power of sale (including the expenses of the Trustee), or otherwise, including interest thereon at the applicable interest rate specified in the Note, which shall be the Default Rate unless prohibited by Laws, (b) all taxes,
Assessments, and other charges unless the Property was sold subject to these items; (c) payment of the Obligations in such order as Lender may elect; (d) payment of any other sums secured or required to be paid by Borrower; and
(e) payment of the surplus, if any, to any person lawfully entitled to receive it. Borrower and Lender intend and agree that during any period of time between any foreclosure judgment that may be obtained and the actual foreclosure sale that
the foreclosure judgment will not extinguish the Documents or any rights contained therein including the obligation of Borrower to pay all Costs and to pay interest at the applicable interest rate specified in the Note, which shall be the Default
Rate unless prohibited by Laws. 

  
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 Section 6.06 Additional Provisions as to Remedies. No failure, refusal, waiver, or
delay by Lender or Trustee to exercise any rights under the Documents upon any default or Event of Default shall impair Lender’s or Trustee’s rights or be construed as a waiver of, or acquiescence to, such or any subsequent default or
Event of Default. No recovery of any judgment by Lender or Trustee and no levy of an execution upon the Property or any other property of Borrower shall affect the lien and security interest created by this Instrument and such liens, rights, powers,
and remedies shall continue unimpaired as before. Lender or Trustee may resort to any security given by this Instrument or any other security now given or hereafter existing to secure the Obligations, in whole or in part, in such portions and in
such order as Lender or Trustee may deem advisable, and no such action shall be construed as a waiver of any of the liens, rights, or benefits granted hereunder. Acceptance of any payment after any Event of Default shall not be deemed a waiver or a
cure of such Event of Default and such acceptance shall be deemed an acceptance on account only (unless Lender has accepted cure of such Event of Default by specific written statement from Lender to Borrower acknowledging Lender’s acceptance of
such cure, and Borrower specifically understands and agrees that Lender shall have no obligation to accept the cure of any Event of Default). If Lender or Trustee has started enforcement of any right by foreclosure, sale, entry, or otherwise and
such proceeding shall be discontinued, abandoned, or determined adversely for any reason, then Borrower, Lender and Trustee shall be restored to their former positions and rights under the Documents with respect to the Property, subject to the lien
and security interest hereof. 
 Section 6.07 Waiver of Rights and Defenses. To the fullest extent Borrower may do so
under Laws, Borrower (a) will not at any time insist on, plead, claim, or take the benefit of any statute or rule of law now or later enacted providing for any appraisement, valuation, stay, extension, moratorium, or redemption; (b) for
itself, its successors and assigns, and for any person ever claiming an interest in the Property (other than Lender), waives and releases all rights of redemption, reinstatement, valuation, appraisement, notice of intention to mature or declare due
the whole of the Obligations, all rights to a marshaling of the assets of Borrower, including the Property, or to a sale in inverse order of alienation, in the event of foreclosure (or extinguishment by transfer of title by power of sale) of the
liens and security interests created under the Documents; (c) shall not be relieved of its obligation to pay the Obligations as required in the Documents nor shall the lien or priority of the Documents be impaired by any agreement renewing,
extending, or modifying the time of payment or the provisions of the Documents (including a modification of any interest rate), unless expressly released, discharged, or modified by such agreement. Regardless of consideration and without any notice
to or consent by the holder of any subordinate lien, security interest, encumbrance, right, title, or interest in or to the Property, Lender may (a) release any person liable for payment of the Obligations or any portion thereof or any part of
the security held for the Obligations or (b) modify any of the provisions of the Documents without impairing or affecting the Documents or the lien, security interest, or the priority of the modified Documents as security for the Obligations
over any such subordinate lien, security interest, encumbrance, right, title, or interest. 
 Section 6.08 Additional Credit
Bidding. In connection with any sale of the Property pursuant to Section 363 of the Bankruptcy Code or any plan under the Bankruptcy Code, Lender shall have the right to acquire the Property and, in lieu of paying cash, Lender shall
have the right (at its option) to pay by crediting against the Obligations the amount of its bid, after deducting therefrom any sums which Lender is authorized to deduct under the provisions of the Documents. 

ARTICLE VII - SECURITY AGREEMENT 
 Section 7.01 Security Agreement. This Instrument constitutes both a real property deed of trust and a “security agreement” within the meaning of the U.C.C. The Property
includes real and personal property 

  
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and all tangible and intangible rights and interest of Borrower in the Property. Borrower grants to Lender and Trustee, as security for the Obligations, a security interest in the Personal
Property to the fullest extent that the Personal Property may be subject to the U.C.C. Borrower authorizes Lender to file any financing or continuation statements and amendments thereto relating to the Personal Property without the signature of
Borrower if permitted by Laws. 
 ARTICLE VIII - LIMITATION ON PERSONAL LIABILITY AND INDEMNITIES 

Section 8.01 Limited Recourse Liability. Notwithstanding anything to the contrary contained herein, the liability of Borrower
hereunder and under the other Documents is limited in the same manner and to the same extent as Borrower’s liability is limited as provided in Paragraphs 8, 9 and 10 of the Note. 
 Section 8.02 General Indemnity. Borrower agrees that while Lender has no liability to any person in tort or otherwise as lender and that Lender is not an owner or operator of the
Property, Borrower shall, at its sole expense (but subject to the provisions of Section 8.01 above), protect, defend, release, indemnify and hold harmless (“indemnify”) the Indemnified Parties from any Losses (defined below)
imposed on, incurred by, or asserted against the Indemnified Parties, directly or indirectly, arising out of or in connection with the Property, the Loan, or the Documents, including Losses; provided, however, that the foregoing indemnities shall
not apply to any Losses caused by (i) the gross negligence of Lender, (ii) the willful misconduct of Lender, (iii) an illegal act by Lender, or (iv) fraud on the part of Lender; and provided further that the foregoing indemnities
shall not apply to claims brought by or on behalf of Lender or any of the other Indemnified Parties unless such claims are for indemnification against claims imposed on, incurred by, or asserted against Lender or such other Indemnified Parties by a
third party. The term “Losses” shall mean any claims, suits, liabilities (including strict liabilities), actions, proceedings, obligations, debts, damages, losses (including, without limitation, unrealized loss of value of the
Property), Costs, expenses, fines, penalties, charges, fees, judgments, awards, and amounts paid in settlement of whatever kind including attorneys’ fees (both in-house staff and retained attorneys) and all other costs of defense. The term
“Indemnified Parties” shall mean (a) Lender, (b) any prior owner or holder of the Note, (c) any existing or prior servicer of the Loan, (d) Trustee, (e) the officers, directors, shareholders, partners,
members, employees and trustees of any of the foregoing, and (f) the heirs, legal representatives, successors and assigns of each of the foregoing. 
 Section 8.03 Transaction Taxes Indemnity. Borrower shall, at its sole expense, indemnify the Indemnified Parties from all Losses imposed upon, incurred by, or asserted against
the Indemnified Parties or the Documents relating to Transaction Taxes. 
 Section 8.04 ERISA Indemnity. Borrower shall, at
its sole expense, indemnify the Indemnified Parties against all Losses imposed upon, incurred by, or asserted against the Indemnified Parties (a) as a result of a transaction by Borrower that causes a Violation, (b) in the investigation,
defense, and settlement of a Violation caused by a transaction of Borrower, (c) as a result of a breach of Borrower’s representations in Section 3.11 or default thereunder, (d) in correcting any prohibited transaction or the sale
of a prohibited loan, by reason of Borrower’s breach of the representations contained in Section 3.11(b), and (e) in obtaining any individual prohibited transaction exemption under ERISA that may be required, in Lender’s sole
discretion, by reason of Borrower’s breach of the representations contained in Section 3.11(b). 
 Section 8.05
Environmental Indemnity. Borrower and other persons, if any, have executed and delivered the Environmental and ERISA Indemnity Agreement dated the date hereof to Lender (“Environmental Indemnity”). 

  
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 Section 8.06 Duty to Defend, Costs and Expenses. Upon request, whether
Borrower’s obligation to indemnify Lender arises under Article VIII or in the Documents, Borrower shall defend the Indemnified Parties (in Borrower’s or the Indemnified Parties’ names) for the matters specified in Sections 8.03, 8.04
and 8.05 above by attorneys and other professionals approved by the Indemnified Parties. Notwithstanding the foregoing, the Indemnified Parties may, in their sole discretion, engage their own attorneys and professionals to defend or assist them and,
at their option, their attorneys shall control the resolution of any claims or proceedings. Upon demand, Borrower shall pay or, in the sole discretion of the Indemnified Parties, reimburse and/or indemnify the Indemnified Parties for all Costs
imposed on, incurred by, or asserted against the Indemnified Parties by reason of any items set forth in this Article VIII and/or the enforcement or preservation of the Indemnified Parties’ rights under the Documents. Any amount payable to the
Indemnified Parties under this Section shall (a) be deemed a demand obligation, (b) be part of the Obligations, (c) bear interest upon demand at the Default Rate until paid if not paid on demand, and (d) be secured by this
Instrument. 
 Section 8.07 Recourse Obligation and Survival. Notwithstanding anything to the contrary in the
Documents and in addition to the recourse obligations in the Note, the obligations of Borrower under Sections 8.03, 8.04, 8.05, and 8.06 shall be a full recourse obligation of Borrower, shall not be subject to any limitation on personal liability in
the Documents, and shall survive (a) repayment of the Obligations, (b) any termination, satisfaction, transfer of title by power of sale, assignment or foreclosure of this Instrument, (c) the acceptance by Lender (or any nominee) of a
deed in lieu of foreclosure, (d) a plan of reorganization for Borrower filed under the Bankruptcy Code, or (e) the exercise by Lender of any rights in the Documents. Notwithstanding the foregoing, the liability of Borrower under the
Environmental Indemnity shall be subject to the limitations set forth in Sections 6 and 19 of such document. Borrower’s obligations under Article VIII shall not be affected by the absence or unavailability of insurance covering the same or by
the failure or refusal by any insurance carrier to perform any obligation under any applicable insurance policy. 
 ARTICLE IX
- ADDITIONAL PROVISIONS 
 Section 9.01 Usury Savings Clause. All agreements in the Documents are expressly
limited so that in no event whatsoever shall the amount paid or agreed to be paid under the Documents for the use, forbearance, or detention of money exceed the highest lawful rate permitted by Laws. If, at the time of performance, fulfillment of
any provision of the Documents shall involve transcending the limit of validity prescribed by Laws, then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity. If Lender shall ever receive as interest an amount
which would exceed the highest lawful rate, the receipt of such excess shall be deemed a mistake and (a) shall be canceled automatically or (b) if paid, such excess shall be (i) credited against the principal amount of the Obligations
to the extent permitted by Laws or (ii) rebated to Borrower if it cannot be so credited under Laws. Furthermore, all sums paid or agreed to be paid under the Documents for the use, forbearance, or detention of money shall to the extent
permitted by Laws be amortized, prorated, allocated, and spread throughout the full stated term of the Note until payment in full so that the rate or amount of interest on account of the Obligations does not exceed the maximum lawful rate of
interest from time to time in effect and applicable to the Obligations for so long as the Obligations are outstanding. 

  
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 Section 9.02 Notices. Any notice, request, demand, consent, approval, direction,
agreement, or other communication (any “notice”) required or permitted under the Documents shall be in writing and shall be validly given if sent by a nationally-recognized courier that obtains receipts, delivered personally by a
courier that obtains receipts, or mailed by United States certified mail (with return receipt requested and postage prepaid) addressed to the applicable person as follows: 

 

			
	If to Borrower:	 	With a copy of notices sent to Borrower to:
		
	 CLARENDON CENTER LLC
 c/o Saul
Centers, Inc.
 7501 Wisconsin Avenue, Suite 1500 East
 Bethesda, Maryland 20814
 Attention: Scott V. Schneider, Senior Vice President and Chief Financial
Officer
	 	 PILLSBURY WINTHROP SHAW PITTMAN LLP
 2300 N Street, NW
 Washington, District of Columbia 20037

Attention: Diane Shapiro Richer, Esq.

		
		 	and
		
		 	 Clarendon Center LLC
 c/o
B.F. Saul Company
 7501 Wisconsin Avenue, Suite 1500 East
 Bethesda, Maryland 20814
 Attention: Victoria J. Perkins, Esq.

		
	If to Lender:	 	With a copy of notices sent to Lender to:
		
	 THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
 Prudential Asset Resources, Inc.
 2100 Ross Avenue, Suite 2500

Dallas, Texas 75201
 Attention: Asset Management
Department
 Reference Loan No. 706108495
	 	 THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
 Prudential Asset Resources, Inc.
 2100 Ross Avenue, Suite 2500

Dallas, Texas 75201
 Attention: Legal
Department
 Reference Loan No. 706108495

		
	If to Trustee:	 	
		
	 LAWYERS TITLE REALTY SERVICES, INC.
 c/o Commonwealth Land Title Insurance Company
 1015 15th Street, N.W., Suite 300

Washington, DC 20005
	 	

 Each notice shall be effective upon being so sent, delivered, or mailed, but the time period for response or
action shall run from the date of receipt as shown on the delivery receipt. Refusal to accept delivery or the inability to deliver because of a changed address for which no notice was given shall be deemed receipt. Any party may periodically change
its address for notice and specify up to two (2) additional addresses for copies by giving the other party at least ten (10) days’ prior notice. 
 Section 9.03 Sole Discretion of Lender. Except as otherwise expressly stated, whenever Lender’s judgment, consent, or approval is required or Lender shall have an option or
election under the Documents, such judgment, the decision as to whether or not to consent to or approve the same, or the exercise of such option or election shall be in the sole and absolute discretion of Lender (exercised in good faith).

 Section 9.04 Applicable Law and Submission to Jurisdiction. The Documents shall be governed by and construed in
accordance with the laws of the Property State and the applicable laws of the United States of America. Without limiting Lender’s or Trustee’s right to bring any action or proceeding against Borrower or the Property relating to the
Obligations (an “Action”) in the courts of other jurisdictions, Borrower irrevocably (a) submits to the jurisdiction of any state or federal court in the Property State, (b) agrees that any Action may be heard and
determined in such court, and (c) waives, to the fullest extent permitted by Laws, the defense of an inconvenient forum to the maintenance of any Action in such jurisdiction. 

  
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 Section 9.05 Construction of Provisions. The following rules of construction shall
apply for all purposes of this Instrument unless the context otherwise requires: (a) all references to numbered Articles or Sections or to lettered Exhibits are references to the Articles and Sections hereof and the Exhibits annexed to this
Instrument and such Exhibits are incorporated into this Instrument as if fully set forth in the body of this Instrument; (b) all Article, Section, and Exhibit captions are used for convenience and reference only and in no way define, limit, or
in any way affect this Instrument; (c) words of masculine, feminine, or neuter gender shall mean and include the correlative words of the other genders, and words importing the singular number shall mean and include the plural number, and vice
versa; (d) no inference in favor of or against any party shall be drawn from the fact that such party has drafted any portion of. this Instrument; (e) all obligations of Borrower hereunder shall be performed and satisfied by or on behalf
of Borrower at Borrower’s sole expense; (f) the terms “include,” “including,” and similar terms shall be construed as if followed by the phrase “without being limited to”; (g) the
terms “Property,” “Land,” “Improvements,” and “Personal Property” shall be construed as if followed by the phrase “or any part thereof”; (h) the term
“Obligations” shall be construed as if followed by the phrase “or any other sums secured hereby, or any part thereof”; (i) the term “person” shall include natural persons, firms, partnerships,
limited liability companies, trusts, corporations, governmental authorities or agencies, and any other public or private legal entities; (j) the term “provisions,” when used with respect hereto or to any other document or
instrument, shall be construed as if preceded by the phrase “terms, covenants, agreements, requirements, and/or conditions”; (k) the term “lease” shall mean “tenancy, subtenancy, lease, sublease, or
rental agreement,” the term “lessor” shall mean “landlord, sublandlord, lessor, and sublessor,” and the term “Tenants” or “lessee” shall mean “tenant, subtenant, lessee,
and sublessee”; (l) the term “owned” shall mean “now owned or later acquired”; (m) the terms “any” and “all” shall mean “any or all”;
(n) the term “on demand” or “upon demand” shall mean “within five (5) business days after written notice”; and (o) the term “Trustee” shall mean “Trustee, its
successors and assigns, and any substitute or successor Trustee of the estates, properties, powers, trusts and rights conferred upon Trustee pursuant to the Documents”. 
 Section 9.06 Transfer of Loan. 

(a) Lender may, at any time, (i) sell, transfer or assign the Documents and any servicing rights with respect thereto or
(ii) grant participations therein or issue mortgage or deed of trust pass-through certificates or other securities evidencing a beneficial interest in a rated or unrated public offering or private placement (collectively, the
“Securities”). Lender may forward to any purchaser, transferee, assignee, servicer, participant, or investor in such Securities (collectively, “Investors”), to any Rating Agency (defined below) rating such
Securities and to any prospective Investor, all documents and information which Lender now has or may later acquire relating to the Obligations, Borrower, any guarantor, any indemnitor(s), the Leases, and the Property, whether furnished by Borrower,
any guarantor, any indemnitor(s) or otherwise, as Lender determines advisable. Borrower, any guarantor and any indemnitor agree to cooperate with Lender in connection with any transfer made or any Securities created pursuant to this Section
including the delivery of an estoppel certificate in accordance with Section 3.16 and such other documents as may be reasonably requested by Lender. Borrower shall also furnish consent of any borrower, any guarantor and any indemnitor in order
to permit Lender to furnish such Investors or such prospective Investors or such Rating Agency with any and all information concerning the Property, the Leases, the financial condition of Borrower, any guarantor and any indemnitor, as may be
reasonably requested by Lender, any Investor, any prospective Investor or any Rating Agency and which may be complied with without undue expense. “Rating Agency” shall mean any one or more credit rating agencies approved by Lender.

  
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 (b) Borrower agree that upon any assignment or transfer of the Documents by Lender to any
third party, Lender shall have no obligations or liabilities under the Documents, such third party shall be substituted as the lender under the Documents for all purposes and Borrower shall look solely to such third party for the performance of any
obligations under the Documents or with respect to the Loan. 
 Section 9.07 Miscellaneous. If any provision of the
Documents shall be held to be invalid, illegal, or unenforceable in any respect, this shall not affect any other provisions of the Documents and such provision shall be limited and construed as if it were not in the Documents. If title to the
Property becomes vested in any person other than Borrower, Lender and Trustee may, without notice to Borrower, deal with such person regarding the Documents or the Obligations in the same manner as with Borrower without in any way vitiating or
discharging Borrower’s liability under the Documents or being deemed to have consented to the vesting. If both the lessor’s and lessee’s interest under any Lease ever becomes vested in any one person, this Instrument and the lien and
security interest created hereby shall not be destroyed or terminated by the application of the doctrine of merger and Lender and Trustee shall continue to have and enjoy all its rights and privileges as to each separate estate. Upon foreclosure (or
transfer of title by power of sale) of this Instrument, none of the Leases shall be destroyed or terminated as a result of such foreclosure (or sale), by application of the doctrine of merger or as a matter of law, unless Lender or Trustee takes all
actions required by law to terminate the Leases as a result of foreclosure or sale. All of Borrower’s covenants and agreements under the Documents shall run with the land and time is of the essence. Borrower appoints Lender as its
attorney-in-fact, which appointment is irrevocable and shall be deemed to be coupled with an interest, with respect to the execution, acknowledgment, delivery, filing or recording for and in the name of Borrower of any of the documents listed in
Sections 3.04, 3.19, 4.01 and 6.02, provided that Lender will not exercise such power unless Borrower fails to act within the timeframes required under the Documents. The Documents cannot be amended, terminated, or discharged except in a writing
signed by the party against whom enforcement is sought. No waiver, release, or other forbearance by Lender will be effective unless it is in a writing signed by Lender and then only to the extent expressly stated. The provisions of the Documents
shall be binding upon Borrower and its heirs, devisees, representatives, successors, and assigns including successors in interest to the Property and inure to the benefit of Lender and Trustee and its or their heirs, successors, substitutes, and
assigns. Where two or more persons have executed the Documents, the obligations of such persons shall be joint and several, except to the extent the context clearly indicates otherwise. The Documents may be executed in any number of counterparts
with the same effect as if all parties had executed the same document. All such counterparts shall be construed together and shall constitute one instrument, but in making proof hereof it shall only be necessary to produce one such counterpart. Upon
receipt of an affidavit of an officer of Lender as to the loss, theft, destruction or mutilation of any Document which is not of public record, and, in the case of any mutilation, upon surrender and cancellation of the Document, Borrower will issue,
in lieu thereof, a replacement Document, dated the date of the lost, stolen, destroyed or mutilated Document containing the same provisions. Any reviews, inspections, reports, approvals or similar items conducted, made or produced by or on behalf of
Lender with respect to Borrower, the Property or the Loan are for loan underwriting and servicing purposes only, and shall not constitute an acknowledgment, representation or warranty of the accuracy thereof, or an assumption of liability with
respect to Borrower, Borrower’s contractors, architects, engineers, employees, agents or invitees, present or future tenants, occupants or owners of the Property, or any other party. 
 Section 9.08 Entire Agreement. (a) the Documents constitute the entire understanding and agreement between Borrower, Lender and Trustee with respect to the Loan and supersede all
prior written or oral understandings and agreements with respect to the Loan including the Loan application and Loan commitment and (b) Borrower is not relying on any representations or warranties of Lender except as expressly set forth in the
Documents. 

  
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 Section 9.09 Concerning the Trustee. By recording a written substitution in the
county where the Property is located or by any other means permitted by Laws, Lender may (a) remove Trustee or any successor Trustee at any time (or times) without notice or cause and (b) replace any Trustee who dies or resigns. To the
extent permitted by Laws, Trustee waives any statutory fee for its services and agrees to accept reasonable compensation in lieu thereof. Trustee may resign upon thirty (30) days notice to Lender and Borrower. If more than one person is
appointed Trustee, all rights granted to Trustee under this Instrument may be exercised by any of them, without the others, with the same effect as if exercised by all of them jointly. In addition to exercising all rights set forth in this
Instrument, Trustee may exercise all rights under Laws. 
 Section 9.10 WAIVER OF TRIAL BY JURY. EACH OF BORROWER AND
LENDER HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM FILED BY EITHER PARTY, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN, THE
DOCUMENTS, OR ANY ALLEGED ACTS OR OMISSIONS OF LENDER OR BORROWER IN CONNECTION THEREWITH. 
 ARTICLE X - LOCAL LAW PROVISIONS

 Section 10.01 Statutory Provisions. The following short form provisions are hereby made applicable and are
incorporated into this Instrument as permitted under the Code of Virginia (1950), Section 55-60 (1986 Rep. Vol. and 1988 Cum. Supp.) and shall have the meanings set forth therein: (a) “Exemptions Waived,” (b) “Subject
to call upon default,” (c) “Substitution of trustee permitted,” and (d) “Any trustee may act.” 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
 [SIGNATURES ON FOLLOWING PAGE]

  
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 IN WITNESS WHEREOF, the undersigned has executed this Instrument as of the day first set
forth above. 
  

					
	BORROWER:
	
	CLARENDON CENTER LLC, a Delaware limited liability company
		
	By:	 	Saul Centers, Inc., a Maryland corporation, its Manager
			
		 	By:	 	 /s/ B. Francis Saul II

		 	Name:	 	 B. Francis Saul II

		 	Title:	 	 Chief Executive Officer

	
	[CORPORATE SEAL]

 STATE OF
MARYLAND) 
 COUNTY OF MONTGOMERY) 

I, Laurenia Jenkins, a notary public in and for the state and county aforesaid do certify that B. Francis Saul II, whose name is signed to the writing
above, being the Chief Executive Officer of SAUL CENTERS, INC., a Maryland corporation, as Manager of CLARENDON CENTER LLC, a Delaware limited liability company, has acknowledged the same before me this 22nd day of March, 2011, in my county
aforesaid. 
  

			
	 /s/ Laurenia Jenkins

	Notary Public
	Name:	 	 Laurenia
Jenkins

			
	My Commission Expires:	 	 October 17,
2011

			
		
	Notary Registration No.	 	                     
	
	[NOTARY SEAL]

  
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 EXHIBIT A 

LEGAL DESCRIPTION 

TRACT ONE 
 All of Parcel “B”,
Block E, Lyon’s Addition to Clarendon, as the same is shown on a plat attached to the Deed of Resubdivision and Easements recorded in Deed Book 4160 at page 294, among the Land Records of Arlington County, Virginia, being more particularly
described by metes and bounds as follows: 
 Beginning at a point where the southerly right-of-way line of Wilson Boulevard
(variable width) intersects the westerly right-of-way line of North Garfield Street (variable width); thence with the said line of North Garfield Street: 
 S 06° 32’ 23” E, 158.46 feet to a point where the said line of North Garfield Street intersects the northerly right-of-way line of Clarendon Boulevard (variable width); thence with the said
line of Clarendon Boulevard 
 S 55° 15’ 05” W, 188.53 feet to a point marking a corner to a part of Lot 3, Block
E, Lyons Addition to Clarendon; thence departing the said line of Clarendon Boulevard and running with the line of said part of Lot 3 and part of Lot 2, Block E, Lyons Addition to Clarendon and also a portion of the aforementioned right-of-way line
of Wilson Boulevard 
 N 21° 51’ 21” W, 115.66 feet to a point; thence with the said line of Wilson Boulevard on
the following three (3) courses and distances: 
 N 45° 11’ 50” E, 56.60 feet to a point; thence 

S 12° 33’ 46” E, 17.72 feet to a point; thence 
 N 45° 12’ 07” E, 191.52 feet to the point of beginning. Containing 25,201 square feet, or 0.57854 acres of land, more or less. 
 TOGETHER WITH the beneficial easements and other items in the nature of real property rights contained in the Declaration of Covenants and Easements recorded in Deed Book 4009 at page 639 among the
aforesaid Land Records. 
 TOGETHER WITH the rights in the nature of real property rights arising from the Encroachment Ordinance recorded in
Deed Book 4108 at page 1998, among the aforesaid Land Records. 
 FURTHER TOGETHER WITH the Party Wall Agreements dated October 2, 1937 and
recorded May 31, 1938 in Deed Book 436 at page 41; dated January 15, 1938 and recorded May 31, 1938 in Deed Book 436 at page 42; dated June 28, 1938 and recorded August 26, 1938 in Deed Book 442 at page 577, as affected by Agreement and dated
May 9, 1939 and recorded December 26, 1940 in Deed Book 527 at page 45; as supplemented by Declaration (Supplemental Party Wall Agreement) dated December 19, 1990 and recorded January 4, 1991 in Deed Book 2459 at page 1712, among the aforesaid Land
Records 
 NOTE FOR INFORMATIONAL PURPOSES ONLY: 
 RPC Number:    18012004 

  
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 TRACT TWO 
 All of Parcel “A”, Block F, Lyon’s Addition to Clarendon, as the same is shown on a plat attached to the Deed of Resubdivision and Easements recorded in Deed Book 4156 at page 723, among
the Land Records of Arlington County, Virginia, being more particularly described by metes and bounds as follows: 
 Beginning
at a point where the southerly right-of-way line of Clarendon Boulevard (variable width) intersects the westerly right-of-way line of North Garfield Street (variable width); thence with the said line of North Garfield Street on the following three
(3) courses and distances: 
 S 06° 32’ 23” E, 121.34 feet to a point; thence 

N 55° 15’ 07” E, 5.67 feet to a point; thence 
 S 06° 32’ 23” E, 245.33 feet to a point where the said line of North Garfield Street intersects the northerly right-of-way line of 11th Street North (variable width); thence with the said
line of 11th Street North on the following three (3) courses and distances: 
 S 84° 33’ 37” W, 110.02 feet to a
point; thence 
 N 06° 32’ 23” W, 15.00 feet to a point; thence 

S 84° 33’ 37” W, 5.00 feet to the southeasterly corner to Outlot “A”:, Block F, Lyon’s Addition to
Clarendon; thence departing the said line of 11th Street North and running with the easterly line of said Outlot “A” 

N 06° 32’ 23” W, 96.72 feet to a point; thence with the northerly line of Outlot “A” and also Lot 110, Block F,
Lyon’s Addition to Clarendon 
 S 83° 27’ 41” W, 102.50 feet to a point in the easterly right-of-way line of
North Highland Street (variable width) thence departing the line of said Lot 110 and running with the said line of North Highland Street 
 N 06° 32’ 23” W, 136.08 feet to a point where the said line of North Highland Street intersects the aforementioned line of Clarendon Boulevard; thence with the said line of Clarendon
Boulevard 
 N 55° 15’ 07” E, 241.14 feet to the point of beginning. Containing 54,578 square feet or 1.25293
acres of land, more or less. 
 TOGETHER WITH Terms and conditions contained in Agreement dated January 16, 1946 and recorded September 17, 1947
in Deed Book 793 at page 310, among the aforesaid Land Records. 
 TOGETHER WITH the beneficial easements and other items in the nature of real
property rights contained in the Declaration of Covenants and Easements recorded in Deed Book 4009 at page 639 among the aforesaid Land Records. 
 TOGETHER WITH the rights in the nature of real property rights arising from the Encroachment Ordinance recorded in Deed Book 4108 at page 2009 among the aforesaid Land Records. 

TOGETHER WITH the rights in the nature of real property rights arising from the Development Agreement dated June 7, 2006, as evidenced by Memorandum of
Development Agreement recorded in Deed Book 4008 at page 2113 as amended by unrecorded First Amendment to Development Agreement dated September 5, 2007, as evidenced by Memorandum of First Amendment to Development Agreement recorded in Deed Book
4136 at page 152 both among the aforesaid Land Records. 
 TOGETHER WITH the easement granted Saul Holdings Limited Partnership by Sanitary
Sewer Easement Agreement from Leadership Institute dated April 9, 2008 and recorded in Deed Book 4181 at page 1624, among the aforesaid Land Records. 
 FURTHER TOGETHER WITH the easement granted Saul Holdings Limited Partnership by Encroachment Easement Agreement dated June 29, 2010 and recorded July 2, 2010 in Deed Book 4375 at page 669, among the
aforesaid Land Records. 
 NOTE FOR INFORMATIONAL PURPOSES ONLY: 
 RPC Number:    18013011 
 (End of Exhibit A) 

  
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 EXHIBIT B 

DESCRIPTION OF PERSONAL PROPERTY SECURITY 
 All of Borrower’s right, title and interest in, to and under the following: 

1. All machinery, apparatus, goods, equipment, materials, fittings, fixtures, chattels, and tangible personal property, and all
appurtenances and additions thereto and betterments, renewals, substitutions, and replacements thereof, owned by Borrower, wherever situate, and now or hereafter located on, attached to, contained in, or used in connection with the real property
described in Exhibit A attached hereto and incorporated herein (the “Land”), and all improvements located thereon (the “Improvements”) or placed on any part thereof, though not attached thereto,
including all screens, awnings, shades, blinds, curtains, draperies, carpets, rugs, furniture and furnishings, heating, electrical, lighting, plumbing, ventilating, air-conditioning, refrigerating, incinerating and/or compacting plants, systems,
fixtures and equipment, elevators, hoists, stoves, ranges, vacuum and other cleaning systems, call systems, sprinkler systems and other fire prevention and extinguishing apparatus and materials, motors, machinery, pipes, ducts, conduits, dynamos,
engines, compressors, generators, boilers, stokers, furnaces, pumps, tanks, appliances, equipment, fittings, and fixtures. 
 2.
All funds, accounts, deposits, instruments, documents, contract rights, general intangibles, notes, and chattel paper arising from or by virtue of any transaction related to the Land, the Improvements, or any of the personal property described in
this Exhibit B. 
 3. All permits, licenses, franchises, certificates, and other rights and privileges now held or
hereafter acquired by Borrower in connection with the Land, the Improvements, or any of the personal property described in this Exhibit B, to the extent assignable. 

4. All right, title, and interest of Borrower in and to the name by which the Land and/or the Improvements are known, including
trademarks and trade names relating thereto. 
 5. All right, title, and interest of Borrower in, to, and under all plans,
specifications, maps, surveys, reports, permits, licenses, architectural, engineering and construction contracts, books of account, insurance policies, and other documents of whatever kind or character, relating to the use, construction upon,
occupancy, leasing, sale, or operation of the Land and/or the Improvements, to the extent assignable. 
 6. All interests,
estates, or other claims or demands, in law and in equity, which Borrower now has or may hereafter acquire in the Land, the Improvements, or the personal property described in this Exhibit B. 

7. All right, title, and interest owned by Borrower in and to all options to purchase or lease the Land, the Improvements, or any other
personal property described in this Exhibit B, or any portion thereof or interest therein, and in and to any greater estate in the Land, the Improvements, or any of the personal property described in this Exhibit B.

 8. All of the estate, interest, right, title, other claim or demand, both in law and in equity, including claims or demands
with respect to the proceeds of insurance relating thereto, which Borrower now has or may hereafter acquire in the Land, the Improvements, or any of the personal property described in this Exhibit B, or any portion thereof or interest
therein, and any and all awards made for the taking by eminent domain, or by any proceeding or purchase in lieu thereof, of the whole or any part of such property, including without limitation, any award resulting from a change of any streets
(whether as to grade, access, or otherwise) and any award for severance damages. 

  
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 Clarendon Center/Deed of Trust 

 9. All right, title, and interest of Borrower in and to all contracts, permits,
certificates, licenses, approvals, utility deposits, utility capacity, and utility rights issued, granted, agreed upon, or otherwise provided by any governmental or private authority, person or entity relating to the ownership, development,
construction, operation, maintenance, marketing, sale, or use of the Land and/or the Improvements (to the extent assignable), including all of Borrower’s rights and privileges hereto or hereafter otherwise arising in connection with or
pertaining to the Land and/or the Improvements, including, without limiting the generality of the foregoing, all water and/or sewer capacity, all water, sewer and/or other utility deposits or prepaid fees, and/or all water and/or sewer and/or other
utility tap rights or other utility rights, any right or privilege of Borrower under any loan commitment, lease, contract, declaration of covenants, restrictions and easements or like instrument, developer’s agreement, or other agreement with
any third party pertaining to the ownership, development, construction, operation, maintenance, marketing, sale, or use of the Land and/or the Improvements, to the extent assignable. 

AND ALL PROCEEDS AND PRODUCTS OF THE FOREGOING PERSONAL PROPERTY DESCRIBED IN THIS EXHIBIT B. 

A PORTION OF THE ABOVE DESCRIBED GOODS ARE OR ARE TO BE AFFIXED TO THE REAL PROPERTY DESCRIBED IN EXHIBIT A. 

BORROWER IS THE RECORD TITLE HOLDER AND OWNER OF THE REAL PROPERTY DESCRIBED IN EXHIBIT A. 

ALL TERMS USED IN THIS EXHIBIT B (AND NOT OTHERWISE DEFINED IN THIS EXHIBIT B) SHALL HAVE THE MEANING, IF ANY, ASCRIBED TO
SUCH TERM UNDER THE UNIFORM COMMERCIAL CODE AS ADOPTED AND IN FORCE IN THE JURISDICTION IN WHICH THIS FINANCING STATEMENT HAS BEEN FILED/RECORDED (THE “U.C.C.”). 

WITH RESPECT TO ANY FINANCING STATEMENT TO WHICH THIS EXHIBIT B IS ATTACHED, THE TERM “BORROWER” SHALL MEAN
“DEBTOR” AS SUCH TERM IS DEFINED IN THE CODE. 

  
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 EXHIBIT C 

PERMITTED ENCUMBRANCES 

THE FOLLOWING ITEMS AFFECT BOTH TRACT ONE AND TRACT TWO: 
  

	1.	Taxes for the first half of 2011 and subsequent years, which are not yet due and payable. 

 

	2.	The restrictions contained in instruments dated June 3, 1904 and recorded June 3, 1904 in Deed Book 110 at page 81; dated September 1, 1904 and recorded September 1,
1904 in Deed Book 110 at page 329; dated September 1, 1904 and recorded September 8, 1904 in Deed Book 110 at page 367; dated October 1, 1904 and recorded October 15, 1904 in Deed Book 110 at page 434; dated October 1, 1904 and recorded October 13,
1904 in Deed Book 110 at page 435; dated November 1, 1904 and recorded November 5, 1904 Deed Book 110 at page 481; dated February 13, 1905 and recorded February 14, 1905 in Deed Book 111 at page 32; dated March 20, 1905 and recorded March 21, 1905
in Deed Book 111 at page 81; dated March 1, 1905 and recorded March 29, 1905 in Deed Book 111 at page 92; dated January 28, 1909 and recorded February 8, 1909 in Deed Book 119 at page 418; dated July 17, 1912 and recorded July 18, 1912 in Deed Book
133 at page 584 and dated January 2, 1913 and recorded January 4, 1913 in Deed Book 136 at page 57, among the Land Records of Arlington County, Virginia. 

  

	3.	Declaration of Covenants and Easements dated August 3, 2007 and recorded August 7, 2007 in Deed Book 4009 at page 639, among the aforesaid Land Records.

 THE FOLLOWING ITEMS AFFECT TRACT ONE: 
  

	4.	Party Wall Agreements dated October 2, 1937 and recorded May 31, 1938 in Deed Book 436 at page 41; dated January 15, 1938 and recorded May 31, 1938 in Deed Book 436 at
page 42; dated June 28, 1938 and recorded August 26, 1938 in Deed Book 442 at page 577, as affected by Agreement dated May 9, 1939 and recorded December 26, 1940 in Deed Book 527 at page 45; as supplemented by Declaration (Supplemental Party Wall
Agreement) dated December 19, 1990 and recorded January 4, 1991 in Deed Book 2459 at page 1712, among the aforesaid Land Records. 

  

	5.	Encroachment Ordinance dated June 15, 2007 and recorded June 19, 2007 in Deed Book 4108 at page 1998, among the aforesaid Land Records. 

 

	6.	Deed of Covenant (North Block) dated November 5, 2007 and recorded December 20, 2007 in Deed Book 4149 at page 2772, among the aforesaid Land Records.

  

	7.	Deed of Resubdivision and Easements for the benefit of County Board of Arlington County, Virginia as per the plat attached thereto dated January 4, 2008 and recorded
January 8, 2008 in Deed Book 4160 at page 294, among the aforesaid Land Records. 

  

	8.	Stormwater Facility Maintenance and Monitoring Agreement dated September 18, 2008 and recorded October 1, 2008 in Deed Book 4218 at page 1803, among the aforesaid Land
Records. 

  

	9.	Underground Right of Way Easement and Vault Agreement for the benefit of Virginia Electric and Power Company dated June 18, 2010 and recorded July 7, 2010 in Deed Book
4375 at page 2246, among the aforesaid Land Records. 

 THE FOLLOWING ITEMS AFFECT TRACT TWO: 

 

	10.	Easement granted to American Telephone and Telegraph Company of Virginia dated July 31, 1918 and recorded Octobers 29, 1918 in Deed Book 159 at page 39, among the
aforesaid Land Records. 

  

	11.	Agreement dated January 16, 1946 and recorded September 17, 1947 in Deed Book 793 at page 310, among the aforesaid Land Records. 

 

	12.	Easements reserved by The County Board of Arlington County, Virginia as set forth in Deed dated April 10, 1978 and recorded May 10, 1978 in Deed Book 1966 at page 1139,
among the aforesaid Land Records. 

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 Prudential Loan No. 706108495

 Clarendon Center/Deed of Trust 

	13.	Perpetual easement for public street and utility purposes granted to The County Board of Arlington County, Virginia by Deed of Easement dated April 14, 1978 and
recorded May 10, 1978 in Deed Book 1966 at page 1146, among the aforesaid Land Records. 

  

	14.	Unrecorded Development Agreement dated June 7, 2006, as evidenced by Memorandum of Development Agreement dated July 7, 2006 and recorded August 4, 2006 in Deed Book
4008 at page 2113; as amended by unrecorded First Amendment to Development Agreement dated September 5, 2007, as evidenced by Memorandum of First Amendment to Development Agreement dated September 5, 2007 and recorded September 20, 2007 in Deed Book
4136 at page 152, among the aforesaid Land Records. 

  

	15.	Encroachment Ordinance dated June 15, 2007 and recorded June 19, 2007 in Deed Book 4108 at page 2009, among the aforesaid Land Records. 

 

	16.	Deed of Covenant (South Block) dated November 5, 2007 and recorded December 20, 2007 in Deed Book 4149 at page 2764, among the aforesaid Land Records.

  

	17.	Deed of Resubdivision and Easements for the benefit of the County Board of Arlington County, Virginia as per the plat attached thereto dated December 18, 2007 and
recorded December 19, 2007 in Deed Book 4156 at page 723; as affected by Deed of Vacation which vacated a sanitary sewer easement and gas pipeline easement dated June 6, 2008 and recorded June 9, 2008 in Deed Book 4195 at page 2637, among the
aforesaid Land Records. 

  

	18.	Sanitary Sewer Easement Agreement between Leadership Institute and Saul Holdings Limited Partnership dated April 9, 2008 and recorded April 10, 2008 in Deed Book 4181
at page 1624, among the aforesaid Land Records. 

  

	19.	Surface easement and right of way and perpetual easement granted to the Washington Metropolitan Transit Authority by Deed of Easement dated November 24, 1975 and
recorded January 20, 1976 in Deed Book 1904 at page 693; as affected by Quitclaim Deed dated January 23, 2008 and recorded February 7, 2008 in Deed Book 4165 at page 2491, by which the sanitary sewer easement granted by the above instrument was
vacated. 

  

	20.	Subsurface easement and right of way granted to the Washington Metropolitan Transit Authority by Deed of Easement dated December 19, 1975 and recorded December 23, 1975
in Deed Book 1902 at page 837; as affected by Quitclaim Deed dated January 23, 2008 and recorded February 7, 2008 in Deed Book 4165 at page 2491, by which the sanitary sewer easement granted by the above instrument was vacated.

  

	21.	Stormwater Facility Maintenance and Monitoring Agreement dated September 18, 2008 and recorded October 1, 2008 in Deed Book 4218 at page 1809, among the aforesaid Land
Records. 

  

	22.	Underground Right of Way Easement and Vault Agreement for the benefit of Virginia Electric and Power Company dated November 9, 2009 and recorded December 15, 2009 in
Deed Book 4331 at page 1418, among the aforesaid Land Records. 

  

	23.	Encroachment Easement Agreement dated June 29, 2010 and recorded July 2, 2010 in Deed Book 4375 at page 669, among the aforesaid Land Records. 

 

	24.	Easements granted to the County Board of Arlington County, Virginia by virtue of Deed of Easement dated October 18, 2010 and recorded October 27, 2010 in Deed Book 4406
at page 1424, among the aforesaid Land Records. 

  

	25.	Matters shown on the ALTA/ACSM Land Title Survey on Parcel “A” Block “F” and Parcel “B”, Block “E”, Clarendon Center,
Lyon’s Addition to Clarendon prepared by Bowman Consulting Group, Ltd. dated February 15, 2011, last revised March 14, 2011, and designated Project No. 7018-03-001. 

Page 2 of 2 

  
 Prudential Loan No. 706108495

 Clarendon Center/Deed of Trust 

 EXHIBIT D 

NORTH BLOCK LEGAL DESCRIPTION 
 All of Parcel “B”, Block E, Lyon’s Addition to Clarendon, as the same is shown on a plat attached to the Deed of Resubdivision and Easements recorded in Deed Book 4160 at page 294, among
the Land Records of Arlington County, Virginia, being more particularly described by metes and bounds as follows: 
 Beginning at
a point where the southerly right-of-way line of Wilson Boulevard (variable width) intersects the westerly right-of-way line of North Garfield Street (variable width); thence with the said line of North Garfield Street: 

S 06° 32’ 23” E, 158.46 feet to a point where the said line of North Garfield Street intersects the northerly right-of-way
line of Clarendon Boulevard (variable width); thence with the said line of Clarendon Boulevard 
 S 55° 15’ 05” W,
188.53 feet to a point marking a corner to a part of Lot 3, Block E, Lyons Addition to Clarendon; thence departing the said line of Clarendon Boulevard and running with the line of said part of Lot 3 and part of Lot 2, Block E,
Lyons Addition to Clarendon and also a portion of the aforementioned right-of-way line of Wilson Boulevard 
 N 21° 51’
21” W, 115.66 feet to a point; thence with the said line of Wilson Boulevard on the following three (3) courses and distances: 
 N 45° 11’ 50” E, 56.60 feet to a point; thence 
 S 12° 33’
46” E, 17.72 feet to a point; thence 
 N 45° 12’ 07” E, 191.52 feet to the point of beginning. Containing
25,201 square feet, or 0.57854 acres of land, more or less. 
 TOGETHER WITH the beneficial easements and other items in the nature of real
property rights contained in the Declaration of Covenants and Easements recorded in Deed Book 4009 at page 639 among the aforesaid Land Records. 
 TOGETHER WITH the rights in the nature of real property rights arising from the Encroachment Ordinance recorded in Deed Book 4108 at page 1998. among the aforesaid Land Records. 

FURTHER TOGETHER WITH the Party Wall Agreements dated October 2, 1937 and recorded May 31, 1938 in Deed Book 436 at page 41; dated
January 15, 1938 and recorded May 31, 1938 in Deed Book 436 at page 42; dated June 28, 1938 and recorded August 26, 1938 in Deed Book 442 at page 577, as affected by Agreement and dated May 9, 1939 and recorded
December 26, 1940 in Deed Book 527 at page 45; as supplemented by Declaration (Supplemental Party Wall Agreement) dated December 19, 1990 and recorded January 4, 1991 in Deed Book 2459 at page 1712, among the aforesaid Land Records

 NOTE FOR INFORMATIONAL PURPOSES ONLY: 
 RPC Number: 18012004 

  
 Page 1 of 1

 Prudential Loan No. 706108495 

Clarendon Center/Deed of Trust

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