Document:

exv10w16

Exhibit 10.16

Execution Version

GUARANTY AGREEMENT

     This GUARANTY AGREEMENT (this “Guaranty”) is given as of November 12, 2009, by TNP
STRATEGIC RETAIL TRUST, INC., a Maryland corporation having an address of 1900 Main Street, Suite
700, Irvine, California 92614 (the “REIT”), THOMPSON NATIONAL PROPERTIES, LLC, a Delaware
limited liability company having an address of 1900 Main Street, Suite 700, Irvine, California
92614 (“TNP”), and ANTHONY W. THOMPSON, an individual having an address of 1900 Main
Street, Suite 700, Irvine, California 92614 (“Thompson”, and together with the REIT and
TNP, the “Guarantors”, and individually, a “Guarantor”) pursuant to the terms and
conditions of that certain Revolving Credit Agreement of even date, as may be amended from time to
time (the “Credit Agreement”) by and among TNP Strategic Retail Operating Partnership, LP,
a Delaware limited partnership having and address of 1900 Main Street, Suite 700, Irvine,
California 92614, as “Borrower” and KEYBANK NATIONAL ASSOCIATION, a national banking
association, having an address at 225 Franklin Street, 18th Floor, Boston, Massachusetts
02110, as agent (in such capacity, together with its successors and assigns in such capacity, the
“Agent”) for itself and any other lenders who become Lenders under the Credit Agreement
(collectively referred to as “Lenders” and each individually referred to as a
“Lender”), and the Lenders. Capitalized terms used herein and not otherwise specifically
defined shall have the same meaning herein as in the Credit Agreement.

     FOR VALUE RECEIVED, and to induce Lenders to extend credit to Borrower as provided for in the
Credit Agreement and the other Loan Documents, Guarantors hereby unconditionally agrees as follows:

     1. Guaranty. Guarantors, as a primary party and not merely as a surety, and on a
joint and several basis, unconditionally and irrevocably guarantee the following (referred to
herein as the “Guaranteed Obligations”):

     A. All Obligations. The prompt and full payment (and not merely the
collectibility), performance and observance of all of the obligations, terms and conditions
to be paid, performed or observed by Borrower, any Guarantor and/or any Obligor (or other
grantor under a Pledge Agreement or any joinder or addendum thereto) under the Credit
Agreement and each other Loan Document, each as the same may be hereafter amended, modified,
extended, renewed or recast, including, but not limited to the payment of $15,000,000,
together with interest and other charges thereon as provided for in the Note and the Credit
Agreement, all obligations of Borrower to be paid, performed, satisfied and complied with
under and with respect to any so-called interest rate “swap” agreement or any other interest
rate protection agreement now or hereafter entered into by and between Borrower and one or
more of Lenders, and all indebtedness to Agent and Lenders incurred by Borrower and/or any
Obligor relating to the Loan Documents prior
to, during or following any proceedings in respect of a bankruptcy, reorganization or

 

 

insolvency, together with each amendment, extension, modification, replacement or recasting
of any one or more of such agreements.

     B. Payment. The prompt and full payment, and not merely the collectibility, of
all principal, interest, fees and other charges when due under the Notes, the Credit
Agreement, and each other Loan Document.

     Upon any Event of Default under the Credit Agreement, or any of the other Loan Documents, or
if Agent has accelerated the Obligations pursuant to a right to do so under the Credit Agreement,
Agent may at its option proceed directly and at once, without further notice, against any Guarantor
hereunder, without proceeding against Borrower, or any other person or other Collateral for the
obligations secured by this Guaranty. Any sums payable by Guarantors hereunder shall bear interest
at the Default Rate from the date of demand until the date paid.

     If Borrower, or Guarantors if so required, shall fail or refuse to perform or continue
performance of all of the Obligations of the Credit Agreement on the part of Borrower to be kept
and performed, then, if an Event of Default exists on account thereof under the Credit Agreement or
this Guaranty, in addition to any other rights and remedies which Agent may have hereunder or
elsewhere, and not in limitation thereof, Agent, at Agent’s option, may exercise any or all of its
rights and remedies under the Credit Agreement, that certain Pledge and Security Agreement of even
date herewith by and between the REIT and Agent, for the benefit of Lenders, as may be amended from
time to time (the “REIT Pledge Agreement”), and each other Loan Document. This Guaranty
shall survive and continue in full force and effect beyond and after the payment and satisfaction
of the Guaranteed Obligations and the Obligations of Borrower in the event Agent or any Lender is
required to disgorge or return any payment or property received as a result of any laws pertaining
to preferences, fraudulent transfers or fraudulent conveyances; provided that Guarantors’ liability
under this sentence shall be limited to the amount of such payment or property disgorged or
returned together with any reasonable attorneys’ fees, costs and expenses paid or incurred by Agent
or Lenders in connection with any such event.

     2. Waivers. Each Guarantor hereby waives and relinquishes to the fullest extent now
or hereafter not prohibited by applicable law:

     (i) all suretyship defenses and defenses in the nature thereof;

     (ii) any right it may have to require the Agent or any Lender to proceed against
Borrower, proceed against or exhaust any security held from Borrower, or pursue any other
remedy in the Agent’s or the Lenders’ power to pursue;

     (iii) any defense based on any claim that such Guarantor’s (or Guarantors’) obligations
exceed or are more burdensome than those of Borrower;

     (iv) any defense based on: (a) any legal disability of Borrower, (b) any release,
discharge, modification, impairment or limitation of the liability of Borrower to the Agent
or the Lenders from any cause, whether consented to by the Agent or the Lenders or
arising by operation of law or from any Insolvency Proceeding and (c) any

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rejection or
disaffirmance of the Loan, or any part of it, or any security held for it, in any such
Insolvency Proceeding;

     (v) any defense based on any action taken or omitted by the Agent or any Lender in any
Insolvency Proceeding involving Borrower, including any election to have the Agent’s or the
Lenders’ claim allowed as being secured, partially secured or unsecured, any extension of
credit by the Lenders to Borrower in any Insolvency Proceeding, and the taking and holding
by the Agent or the Lenders of any security for any such extension of credit;

     (vi) any right or claim of right to cause a marshalling of the assets of Borrower or of
any Collateral, or to cause Agent or any Lender to proceed against any of the other security
for the Guaranteed Obligations or the Obligations of Borrower before proceeding under this
Agreement against Guarantor, or, if there shall be more than one Guarantor, to require Agent
or any Lender to proceed against any other Guarantor or any of Guarantors in any particular
order;

     (vii) all rights and remedies, including, but not limited to, any rights of
subrogation, contribution, reimbursement, exoneration or indemnification pursuant to any
agreement, express or implied, or now or hereafter accorded by applicable law to
indemnitors, guarantors, sureties or accommodation parties, provided,
however, unless Agent otherwise expressly agrees in writing, such waiver by
Guarantor shall not be effective to the extent that by virtue thereof Guarantor’s liability
under this Guaranty or under any other Loan Document is rendered invalid, voidable, or
unenforceable under any applicable state or federal law dealing with the recovery or
avoidance of so-called preferences or fraudulent transfers or conveyances or otherwise;

     (viii) notice of the acceptance hereof, presentment, demand for payment, protest,
notice of protest, or any and all notice of nonpayment, nonperformance, nonobservance or
default, or other proof or notice of demand whereby to charge Guarantor therefor;

     (ix) the pleading of any Statute of Limitations as a defense to Guarantor’s obligations
hereunder; and

     (x) the right to a trial by jury in any matter related to this Guaranty.

Any and all payments made by Borrower, or any Person other than Guarantor, and any and all
payments, proceeds, credits or other sums received by Agent on account of the Loan Documents
whether arising from the disposition of the Properties or other Collateral, or otherwise, shall be
applied by Agent first, without modifying, releasing or reducing the obligations of Guarantors
hereunder, to reduce that portion of the principal of the Notes and interest thereon not guaranteed
by Guarantors hereunder, and only thereafter to the portion of the principal of the Notes and the
interest thereon guaranteed by Guarantors hereunder.

     3. Cumulative Rights. Agent’s rights under this Guaranty shall be in addition to and
not in limitation of all of the rights and remedies of Agent under the Loan Documents. All

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rights
and remedies of Agent shall be cumulative and may be exercised in such manner and combination as
Agent may determine.

     4. No Impairment. The liability of Guarantors hereunder shall in no way be limited or
impaired by, and Guarantors hereby assent to and agree to be bound by, any amendment or
modification of the provisions of the Loan Documents to or with Agent by Borrower or any other
Guarantor or any Person who succeeds Borrower as owner of the Collateral. In addition, the
liability of Guarantors under this Guaranty and the other Loan Documents shall in no way be limited
or impaired by:

     (i) any extensions of time for performance required by any of the Loan Documents;

     (ii) any amendment to or modification of any of the Loan Documents;

     (iii) any sale or assignment of any of the Loans or any sale, transfer or exchange of
all or part of the Collateral;

     (iv) the accuracy or inaccuracy of any of the representations or warranties made by or
on behalf of Borrower or any Guarantor, under any Loan Document or otherwise;

     (v) the release of Borrower, any owner of Borrower, or any other Person, from
performance or observance of any of the agreements, covenants, terms or conditions contained
in any of the Loan Documents by operation of law, Agent’s voluntary act, or otherwise,
except in connection with an indefeasible payment in full of the Obligations;

     (vi) the filing of any bankruptcy or reorganization proceeding by or against Borrower,
any owner of Borrower, or any subsequent owner of the Collateral;

     (vii) the release or substitution in whole or part of any collateral or security for
the Obligations or the Guaranteed Obligations;

     (viii) Agent’s failure to record any UCC financing statements, or Agent’s improper
recording or filing of any thereof, or Agent’s failure to otherwise perfect, protect,
secure, or insure any security interest or lien given as security for the Obligations;

     (ix) the release of any other party now or hereafter liable upon or in respect of this
Guaranty or any of the other Loan Documents; or

     (x) the invalidity or unenforceability of all or any portion of any of the Loan
Documents as to Borrower or any other Person.

Any of the foregoing may be accomplished with or without notice to Borrower, any owner of Borrower
or any Guarantor and with or without consideration.

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     5. Delay Not Waiver. No delay on Agent’s part in exercising any right, power or
privilege hereunder or under any of the Loan Documents shall operate as a waiver of any such
privilege, power or right. No waiver by Agent in any instance shall constitute a waiver in any
other instance.

     6. Warranties and Representations.

     A. Guarantors. Each Guarantor warrants and represents to Agent and Lenders for
the express purpose of inducing Agent and Lenders to enter into the Credit Agreement, to
make the Loans, to accept this Guaranty, and to otherwise complete the transactions
contemplated by the Credit Agreement as to such Guarantor and Borrower that as of the date
of this Guaranty, upon the date of each Borrowing, and at all times thereafter until the
Obligations are repaid and all Guaranteed Obligations to Lenders have been satisfied in
full, as follows:

          (i) Incorporation by Reference. Each warranty and representation made by any
Guarantor or Borrower in the Credit Agreement or the other Loan Documents is true, accurate
and complete and is incorporated herein by reference as if set forth at length herein.

          (ii) Financial Information. True, accurate and complete financial statements
of Guarantors have been delivered to Agent and each of the same fairly present in all
material respects Guarantors’ financial condition as of the dates thereof and no material
and adverse change has occurred in Guarantors’ financial condition since the date thereof;
and each financial statement of each Guarantor submitted in the future shall be true,
accurate and complete and shall fairly present in all material respects such Guarantor’s
financial condition as of the dates thereof.

          (iii) No Violation. The payment and performance by such Guarantor of such
Guarantor’s obligations under the Credit Agreement and this Guaranty do not and shall not
constitute a violation (a) to such Guarantor’s knowledge, of any law, order or regulation,
or (b) of any contract, agreement or organizational document to which such Guarantor is a
party or by which such Guarantor or such Guarantor’s property may be bound, which violation
would reasonably be expected to have a material adverse effect on the financial condition of
such Guarantor or to impair the ability of the REIT to perform its obligations hereunder.

          (iv) No Litigation. There is no material litigation now pending or, to the
best of such Guarantor’s knowledge threatened, against such Guarantor which, if adversely
decided could reasonably be expected to materially impair the ability of such Guarantor to
perform its obligations hereunder or under the Loan Documents.

          (v) Valid and Binding. Each of the Loan Documents to which such Guarantor is a
party, constitutes such Guarantor’s legal, valid and binding obligation in accordance with
the respective terms thereof, subject to bankruptcy, insolvency and similar laws of general
application affecting the rights and remedies of creditors and with

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respect to the availability of remedies of specific enforcement subject to the
discretion of the court before which proceedings therefor may be brought.

          (vi) Solvency. Such Guarantor is solvent and is not rendered insolvent by the
obligations undertaken in this Guaranty. Such Guarantor is not contemplating either the
filing of a petition or proceeding under any state or federal bankruptcy or insolvency or
reorganization laws or the liquidating of all or a major portion of such Guarantor’s
property, and Guarantor has no knowledge of any such petition or proceeding being filed
against such Guarantor.

          (vii) Material Economic Benefit. The granting of the Loans to Borrower will
constitute a material economic benefit to such Guarantor inasmuch as such Guarantor directly
or indirectly owns the ownership interests of Borrower.

     B. The REIT. In addition to the foregoing representations and warranties set
forth in Section 6A of this Guaranty, the REIT warrants and represents to Agent and Lenders
for the express purpose of inducing Agent and Lenders to enter into the Credit Agreement, to
make the Loans, to accept this Guaranty, and to otherwise complete the transactions
contemplated by the Credit Agreement as to the REIT that as of the date of this Guaranty,
upon the date of each Borrowing, and at all times thereafter until the Obligations are
repaid and all Guaranteed Obligations to Lenders have been satisfied in full, as follows:

          (i) No Violation. The payment and performance by the REIT of the REIT’s
obligations under the Credit Agreement, this Guaranty and the REIT Pledge Agreement do not
and shall not constitute a violation (a) to the REIT’s knowledge, of any law, order or
regulation, or (b) of any contract, agreement or organizational document to which the REIT
is a party or by which the REIT or the REIT’s property may be bound, which violation would
reasonably be expected to have a material adverse effect on the financial condition of the
REIT or to impair the ability of the REIT to perform its obligations hereunder.

          (ii) Entity Matters. The REIT is a duly organized, validly existing
corporation organized and in good standing under the laws of the State of Maryland, has all
requisite power and authority to conduct its business and to own its property as now
conducted or owned, and is qualified to do business in all jurisdictions where the nature
and extent of its business is such that such qualification is required by law.

          (iii) Credit Agreement. The REIT acknowledges and agrees that certain
representations, warranties, covenants, agreements and undertakings were made by the REIT
and/or on behalf of the REIT under the Credit Agreement and related Loan Documents, all of
which are hereby incorporated by reference as if set forth at length herein.

     C. TNP. In addition to the foregoing representations and warranties set forth
in Section 6A of this Guaranty, TNP warrants and represents to Agent and Lenders for the
express purpose of inducing Agent and Lenders to enter into the Credit Agreement, to

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make the Loans, to accept this Guaranty, and to otherwise complete the transactions
contemplated by the Credit Agreement as to TNP that as of the date of this Guaranty, upon
the date of each Borrowing, and at all times thereafter until the Obligations are repaid and
all Guaranteed Obligations to Lenders have been satisfied in full, as follows:

          (i) Entity Matters. TNP is a duly organized, validly existing limited
liability company organized and in good standing under the laws of the State of Delaware,
has all requisite power and authority to conduct its business and to own its property as now
conducted or owned, and is qualified to do business in all jurisdictions where the nature
and extent of its business is such that such qualification is required by law.

     7. Notices. All notices shall be given in the manner provided for, and shall be
effective in accordance with the provisions of, Section 15.1 of the Credit Agreement.

     8. No Oral Change. No provision of this Agreement may be changed, waived, discharged,
or terminated orally (in person or by telephone) or by any other means except by an instrument in
writing signed by the party against whom enforcement of the change, waiver or discharge or
termination is sought.

     9. Parties Bound; Benefit. This Agreement shall be binding upon Guarantors and each
Guarantor’s respective successors, assigns, heirs and personal representatives and shall be for the
benefit of Agent and Lenders, and of any subsequent holder of Agent’s or a Lender’s interest in the
Obligations or Loans and of any owner of a participation interest therein. In the event the
interest of Agent or any Lender under the Loan Documents is sold or transferred, then the liability
of the Guarantors to Lenders shall then be in favor of the Lenders originally named herein and each
subsequent holder of any such Lenders’ interest therein, to the extent of their respective
interests.

     10. Joint and Several. If there is more than one (1) Guarantor, the obligations of
each Guarantor and such Guarantor’s respective successors, assigns, heirs and personal
representatives shall be and remain joint and several. Each reference to Guarantor shall include
each Guarantor separately as well as all Guarantors collectively.

     11. Partial Invalidity. Each of the provisions hereof shall be enforceable against
Guarantors to the fullest extent now or hereafter not prohibited by applicable law. The invalidity
or unenforceability of any provision hereof shall not limit the validity or enforceability of each
other provision hereof.

     12. Governing Law. This Agreement and the rights and obligations of the parties
hereunder shall in all respects be governed by and construed and enforced in accordance with the
internal laws of the Commonwealth of Massachusetts, excluding the laws applicable to conflicts or
choice of law. The parties agree that the Commonwealth of Massachusetts has a substantial
relationship to the parties and to the underlying transactions embodied by the Loan Documents.

     13. Consent to Jurisdiction. Each Guarantor hereby irrevocably submits to the
nonexclusive personal jurisdiction of any Massachusetts State Court or any Federal Court sitting

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in
Massachusetts over any suit, action or proceeding arising out of or relating to this Guaranty. Each
Guarantor hereby agrees and consents that in addition to any methods of service of process provided
for under applicable law, all service of process in any such suit, action or proceeding in any
Massachusetts State or Federal Court sitting in Massachusetts may be made by certified or
registered mail, return receipt requested, directed to such Guarantor at the address indicated in
Section 7 above and service so made shall be deemed completed five (5) days after the same shall
have been so mailed.

     14. Financial Statements and Reports.

          A. The REIT. The REIT shall furnish or cause to be furnished to Agent from time to
time the financial statements, data and information specifically required of the REIT pursuant to
Section 9.2 of the Credit Agreement.

          B. TNP. TNP shall furnish to the Agent, from time to time, the following financial
statements, data and information:

               (i) Annual Statements. Within one hundred twenty (120) days of the end of each fiscal
year of TNP, audited financial statements of TNP prepared in accordance with generally accepted
accounting principles, or other recognized method of accounting reasonably acceptable to Agent,
consistently applied, in form and manner of presentation reasonably acceptable to Agent consistent
with the financial statements previously delivered to Agent by Deloitte & Touche LLP or another
independent, certified public accountant reasonably acceptable to Agent, such financial statements
to be unqualified, true, accurate and complete and fairly represent in all material respects the
financial condition of TNP as of the dates thereof.

               (ii) Periodic Statements. Within forty-five (45) days following the end of each fiscal
quarter the following, internally prepared by TNP and certified by TNP to be true, accurate and
complete and to fairly represent in all material respects the financial condition of TNP as of the
dates thereof: (a) financial statements (consisting of a balance sheet, income statement and
statement of cash flow) showing the results of operation for the prior quarter and on a
year-to-date basis for the prior quarter; and (b) covenant compliance certificates substantially in
the form of Exhibit A-2 attached hereto signed by an authorized representative of TNP (and
such additional backup material as may be reasonably requested by Agent).

               (iii) Other Information. Within a reasonable period of time, and from time to time,
all such other financial data, schedules or information as Agent may reasonably request with
respect to TNP.

          C. Thompson. Thompson shall furnish to the Agent, from time to time, the following
financial statements, data and information

               (i) Annual Statements. Within one hundred twenty (120) days of the end of each fiscal
year of Thompson, a balance sheet in the form previously provided to and
approved by Agent prior to the date of this Guaranty, such balance sheet to be unqualified,
true, accurate and complete and fairly represent in all material respects the financial condition
of Thompson as of the dates thereof.

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               (ii) Periodic Statements. Within forty-five (45) days following the end of each fiscal
quarter the following, internally prepared by Thompson and certified by Thompson to be true,
accurate and complete and to fairly represent in all material respects the financial condition of
Thompson as of the dates thereof: (a) a balance sheet in the form previously provided to and
approved by Agent prior to the date of this Guaranty showing the results of operation for the prior
quarter; and (b) covenant compliance certificates substantially in the form of Exhibit A-2
attached hereto signed by Thompson (and such additional backup material as may be reasonably
requested by Agent).

               (iii) Other Information. Within a reasonable period of time, and from time to time,
all such other financial data, schedules or information as Agent may reasonably request with
respect to Thompson.

     15. Additional Covenants of the Guarantors.

          15.1. The REIT. The REIT shall pay, perform, observe and comply with all of the
obligations, terms, covenants and conditions set forth in this Guaranty, the REIT Pledge Agreement,
and the other Loan Documents to which the REIT is a party and by any provisions of the Credit
Agreement specifically applicable to the REIT (all as if such provisions were, and such provisions
hereby are, incorporated by reference into this Guaranty as if set forth at length herein).
Additionally, the REIT agrees to comply with each of the following:

               A. Minimum REIT Net Worth. At all times, the REIT will be required to maintain a
minimum REIT Net Worth of not less than the sum of (i) $1,400,771 (which represents ninety percent
(90%) of the REIT Net Worth as of the date of this Guaranty), plus (ii) ninety percent (90%) of the
total of all Net Proceeds received by the REIT from Equity Issuances after the date of this
Guaranty. This covenant will be tested at the end of each fiscal quarter.

               B. Maximum Leverage Ratio. At all times, the Leverage Ratio shall not exceed (i) for
the period commencing on the date of this Agreement and continuing to and including March 31, 2010,
eighty percent (80%), (ii) for the period commencing on April 1, 2010 and continuing to and
including June 30, 2010, seventy-five percent (75%), and (iii) for the period commencing on July 1,
2010 and continuing until the Maturity Date, seventy percent (70%). This covenant will be tested
at the end of each fiscal quarter. The REIT shall have the right to cause the Borrower to curtail
the outstanding principal balance of the Obligations by such amount as is necessary to satisfy the
foregoing covenant.

               C. Liquidity. Commencing on the Trigger Date, at all times, the Liquidity of the REIT
shall not be less than $250,000, which must be unencumbered and for which no Negative Pledge is in
effect with any creditor and for which a Negative Pledge has not been given to any creditor, and
which Liquidity shall not be less than $500,000 upon the earlier
to occur of (i) April 12, 2010 (which date is six (6) months after the date of this Guaranty)
or (ii) the REIT receiving Net Proceeds in an aggregate amount in excess of $10,000,000 from Equity
Issuances. This covenant will be tested at the end of each fiscal quarter commencing with the
first fiscal quarter following the Trigger Date.

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               D. Minimum Debt Service Coverage Ratio. The ratio of (i) EBITDA of the REIT for the
period of the fiscal quarter of the REIT most recently ending to (ii) Total Debt Service for such
period, shall equal or exceed 1.30 to 1.00 at all times. This covenant will be tested at the end
of each fiscal quarter. The REIT shall have the right to cause the Borrower to curtail the
outstanding principal balance of the Obligations by such amount as is necessary to satisfy the
foregoing covenant.

               E. Equity Issuances. The REIT shall receive Net Proceeds from Equity Issuances of no
less than (i) $2,000,000 in each of December, 2009, January, 2010 and February, 2010, (ii)
$3,000,000 in each of March, April, May and June of 2010, and (iii) $4,000,000 in each calendar
month thereafter until the Maturity Date.

               F. Certificate of Compliance. Not later than the dates required by Section
9.2 of the Credit Agreement, the REIT shall deliver to Agent a Certificate of Compliance in the
form attached as Exhibit A-1 hereto.

               G. Ownership of Borrower. At all times, REIT shall own one hundred percent (100%) of
the general partnership interests and (either directly, indirectly or through an affiliate of the
REIT) not less than seventy-five percent (75%) of the limited partnership interests, in and to the
Borrower.

               H. Prohibited Transactions. The REIT shall comply in all respects with Section
9.6 of the Credit Agreement.

               I. REIT Requirements. At such time as the REIT makes the REIT Election (as defined in
the Credit Agreement), the REIT agrees that it shall: (a) operate its business at all times so as
to satisfy or be deemed to have satisfied all requirements necessary to qualify as a real estate
investment trust under the Code (as defined in the Credit Agreement); (b) The REIT shall maintain
adequate records so as to comply with all record-keeping requirements relating to its qualification
as a real estate investment trust as required by the Code and applicable regulations of the
Department of the Treasury promulgated thereunder and will properly prepare and timely file with
the IRS all returns and reports required thereby; and (c) request from its shareholders all
shareholder information required by the Code and applicable regulations of the Department of
Treasury promulgated thereunder. The REIT agrees to promptly notify the Agent of the REIT
Election.

               J. Depository Accounts. The REIT shall comply with the provisions of Section 9.28 of
the Credit Agreement.

          15.2. TNP. TNP shall pay, perform, observe and comply with all of the obligations,
terms, covenants and conditions set forth in this Guaranty and the other Loan
Documents to which TNP is a party and by any provisions of the Credit Agreement specifically
applicable to TNP.

               A. Depository Accounts. TNP shall comply with the provisions of Section 9.28 of the
Credit Agreement.

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          15.3. Thompson. Thompson shall pay, perform, observe and comply with all of the
obligations, terms, covenants and conditions set forth in this Guaranty, and the other Loan
Documents to which Thompson is a party and by any provisions of the Credit Agreement specifically
applicable to Thompson.

          15.4. TNP and Thompson.

               A. Minimum Net Worth. At all times, TNP and Thompson will be required to maintain a
minimum Thompson/TNP Net Worth of not less than $20,000,000, which minimum Thompson/TNP Net Worth
shall be satisfied if (a) Thompson and TNP on a combined basis have a minimum Thompson/TNP Net
Worth of not less than $20,000,000; or (b) either Thompson or TNP has a Thompson/TNP Net Worth
(calculated on an individual basis) of at least $20,000,000 individually. This covenant will be
tested at the end of each fiscal quarter.

               B. Liquidity. At all times, the Liquidity of TNP and Thompson shall not be less than
$1,000,000, which must be unencumbered and for which no Negative Pledge is in effect with any
creditor and for which a Negative Pledge has not been given to any other creditor, and which
Liquidity covenant shall be satisfied if (a) Thompson and TNP on a combined basis have a Liquidity
of not less than $1,000,000; or (b) either Thompson or TNP has a Liquidity of at least $1,000,000
individually. This covenant will be tested at the end of each fiscal quarter.

          15.5. Definitions. For purposes of this Guaranty, the following terms shall have the
following meanings:

          A. Contingent Obligation. Means any obligation of a Person arising from a
guaranty, indemnity or other assurance of payment or performance of any Debt, lease,
dividend or other obligation (“primary obligations”) of another obligor
(“primary obligor”) in any manner, whether directly or indirectly (but, for purposes
of clarification, excluding any such primary obligation to the extent such primary
obligation is reflected on the balance sheet of either the Borrower or a Guarantor),
including any obligation of such Person under any (i) guaranty, endorsement, co-making or
sale with recourse of an obligation of a primary obligor; (ii) obligation to make
take-or-pay or similar payments regardless of nonperformance by any other party to an
agreement; and (iii) arrangement (a) to purchase any primary obligation or security
therefor, (b) to supply funds for the purchase or payment of any primary obligation, (c) to
maintain or assure working capital, equity capital, net worth or solvency of the primary
obligor, (d) to purchase real or personal property or services for the purpose of assuring
the ability of the primary obligor to perform a primary obligation, or (e) otherwise to
assure or hold harmless the holder of any primary obligation against loss in respect
thereof. The amount of any Contingent
Obligation shall be deemed to be the stated or determinable amount of the primary
obligation (or, if less, the maximum amount for which such Person may be liable under the
instrument evidencing the Contingent Obligation) or, if not stated or determinable, the
maximum reasonably anticipated liability with respect thereto.

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          B. Debt. Means, at any time, with respect to any Person, without duplication:
(i) all obligations of such Person for borrowed money (including, without limitation, all
obligations of such Person evidenced by any debenture, bond, note, commercial paper or
security, but also including all such obligations for borrowed money not so evidenced),
which shall include (without limitation) (x) in the case of the Borrower, the Obligations
and (y) in the case of the Entities, the Property Loans; (ii) all obligations for borrowed
money secured by any Lien existing on any real or personal property owned by such Person
(whether or not such obligations have been assumed by such Person or recourse in respect
thereof is available against such Person), solely to the extent not included in clause (i);
and (iii) any Contingent Obligation or endorsement of such Person of any obligation or
liability of another Person, solely to the extent not included in clauses (i) or (ii).

          C. EBITDA. Means, with respect to the REIT, and for any period, the net income
(or loss) of the REIT (before provision for income taxes) for such period plus (i) the sum
of (a) interest expense, (b) depreciation, amortization and other non-cash charges, (c)
losses on asset sales, exchanges, transfers or other dispositions, and (d) extraordinary
losses or charges, less (ii) the sum of (a) gains on asset sales, exchanges, transfers or
other disposition, (b) extraordinary or other unusual gains or credits, (c) income tax
credits received or accrued, and (d) income attributable to non-cash items or other non-cash
credits, in each case to the extent included in arriving at such income (or loss) for such
period and determined in accordance with GAAP.

          D. GAAP. Means generally accepted accounting principles in the United States
set forth in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board or such other principles as may be approved by a
significant segment of the accounting profession in the United States, that are applicable
to the circumstances as of the date of determination, consistently applied.

          E. Liquidity. Means, with respect to any Person, as determined on any date,
the sum of (i) unrestricted cash and cash equivalents of such Person, plus (ii) unencumbered
marketable securities and other investments (to the extent reasonably acceptable to Agent)
of such Person, plus (iii) unrestricted and immediately available borrowing capacity under
corporate credit facilities (to the extent such facilities are not currently in default or
if any such facility is currently in default, then to the extent that such Person can
demonstrate (to the reasonable satisfaction of Agent) that, notwithstanding such default,
such Person is able to draw or otherwise obtain advances under such loan facility from the
applicable lender) of such Person.

          F. Leverage Ratio. Means the ratio of Total Liabilities to Total Asset Value.

          G. REIT Net Worth. Means the sum of (i) Total Asset Value less (ii) Total
Liabilities.

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          H. Thompson/TNP Net Worth Means, with respect to Thompson and/or TNP (as
applicable) an amount equal to (i) the total assets of Thompson and/or TNP (as applicable)
minus (ii) the total of (x) all indebtedness of Thompson and/or TNP (as applicable) (whether
long-term or current, senior or subordinated) on a consolidated basis which would properly
be shown as liabilities on the face of the balance sheet of Thompson and/or TNP prepared in
accordance with generally accepted accounting principles consistently applied, plus (y) with
respect to the Contingent Obligations of Thompson and TNP, an amount equal to the total of
(i) ten percent (10%) of such Contingent Obligations arising with respect to any guaranty by
Thompson and/or TNP of the obligations of (A) an Entity under a Property Loan, and (B) any
other Person under a loan, to the extent such Property Loan or other loan (as applicable)
is secured by a first lien mortgage or deed of trust in favor of the applicable lender (the
“Property Level Contingent Obligations”), plus (ii) twenty five percent (25%) of all
Contingent Obligations that are not Property Level Contingent Obligations, and which (in the
case of (i) or (ii) above), are not reflected on such balance sheet of Thompson and/or TNP
(as applicable), as of the applicable date of calculation, and are not included in (x)
above. To the extent that the Thompson/TNP Net Worth is being calculated on an aggregate
and not individual basis, a Contingent Obligation of both Thompson and TNP (to the extent
that it is duplicative) shall only be included once for purposes of calculating the
aggregate Thompson/TNP Net Worth.

          I. Total Asset Value. Means the sum of (i) the REIT’s pro rata share of the
Acquisition Costs of all Properties, plus (ii) cash and cash equivalents.

          J. Total Debt Service. Means, for any period, the sum of (i) interest expense
for such period, plus (ii) all regularly scheduled principal payments made with respect to
indebtedness; in each case with respect to the REIT, the Borrower, and the Entities during
such period, and excluding any balloon, bullet, early repayment or similar principal payment
which, in each case, repays such indebtedness in full.

          K. Total Liabilities. Means the sum of (i) the REIT’s pro rata share of the
aggregate outstanding principal balance of all Debt of the REIT, the Borrower and the
Entities, plus (ii) the then outstanding principal balance of the Obligations, solely to the
extent not included in clause (i).

          L. Trigger Date means, the earlier to occur of (i) the REIT raising an
aggregate amount in excess of $2,000,000 in gross proceeds from Equity Issuances to
unaffiliated third parties (that are neither affiliates, directors, officers nor
Subsidiaries of the REIT) or (ii) the completion of the first acquisition of Property and/or
Equity Interests in an Entity by the Borrower under the terms of the Credit Agreement.

16. Subordination.

     16.1. Except as may be otherwise specifically provided for in the Credit Agreement with
respect to Permitted Distributions and repayment of Permitted Additional Debt, any indebtedness of
Borrower to Guarantors now or hereafter existing together with any interest

13

 

thereon shall be, and
such indebtedness is, hereby deferred, postponed and subordinated to the prior, full and
Non-Contestable Payment and satisfaction of all Obligations of Borrower to the Lenders. Payment
and satisfaction of Obligations shall be deemed “Non-Contestable Payment” only upon such
payment and satisfaction and the expiration of all periods of time within which a claim for the
recovery of a preferential payment, or fraudulent conveyance, or fraudulent transfer, in respect of
payments received by Agent as to the Obligations could be filed or asserted with: (A) no such
claim having been filed or asserted, or (B) if so filed or asserted, the final, non-appealable
decision of a court of competent jurisdiction denying the claim or assertion.

     16.2. Except as may be otherwise specifically provided for in the Credit Agreement with
respect to Permitted Distributions and repayment of Permitted Additional Debt, at all times until
the full and Non-Contestable Payment and satisfaction of the Obligations of Borrower to Lenders
with respect to the Obligations (and including interest accruing on the Note after the commencement
of a case by or against Borrower under the Bankruptcy Code now or hereafter in effect, which
interest the parties agree shall remain a claim that is prior and superior to any claim of
Guarantors notwithstanding any contrary practice, custom or ruling in cases under the Bankruptcy
Code, as now or hereafter in effect, generally), each Guarantor agrees not to accept any payment or
satisfaction for any kind of indebtedness of Borrower to such Guarantor and hereby assigns such
indebtedness to Lenders including, but not limited to, the right to file proofs of claim and to
vote thereon in connection with any such case under the Bankruptcy Code, as now or hereafter in
effect, and the right to vote on any plan of reorganization.

     16.3. Any mortgage, security interest, Lien or charge on the Collateral, all rights therein
and thereto, and on the revenue and income to be realized therefrom, which any Guarantor, or any
affiliated entity, may have or obtain as security for any loans, advances, indebtedness or costs in
connection with the construction and completion of any improvements at a Property or in connection
with the Collateral, or otherwise, shall be, and such mortgage, security interest, Lien or charge
hereby is, subordinated to the Security Documents and to the full and Non-Contestable Payment and
satisfaction of all Obligations of Borrower to the Lenders.

     16.4. In addition to the foregoing, and not in limitation thereof, any claims of a Guarantor
of subrogation, contribution, reimbursement, exoneration, indemnification, or reimbursement arising
out of any payment made on this Guaranty, whether such claim is based upon an express or implied
contract, or operation of law, are hereby waived until the full and Non-Contestable Payment and
satisfaction of all Obligations of Borrower to Lenders, provided, however, unless
Agent otherwise expressly agrees in writing, such waiver by any particular Guarantor shall not be
effective to the extent that by virtue thereof such Guarantor’s liability under this Guaranty or
under any other Loan Document is rendered invalid, voidable, or unenforceable under any applicable
state or federal law dealing with the recovery or avoidance of so-called preferences or fraudulent
conveyances or otherwise.

     17. Legal Fees, Costs and Expenses. Each Guarantor further agrees to pay upon demand
all out-of-pocket costs and expenses reasonably incurred by Agent or its successors or assigns in
connection with enforcing any of the rights or remedies of Agent, or such successors or assigns,
under or with respect to this Guaranty including, but not limited to, reasonable

14

 

attorneys’ fees
and the out-of-pocket expenses and disbursements of such attorneys. Any such amounts which are not
paid within fifteen (15) days of demand therefor shall bear interest at the Default Rate from the
date of demand until paid.

     18. Set-off. The REIT hereby grants to Agent, a continuing lien, security interest
and right of set-off as security for all liabilities and obligations to Agent, whether now existing
or hereafter arising, upon and against all deposits, credits, collateral and property, now or
hereafter in the possession, custody, safekeeping or control of Agent or any entity under the
control of KeyBank National Association and their respective successors and assigns, or in transit
to any of them. At any time, without demand or notice (any such notice being expressly waived by
the REIT), Agent may set-off the same or any part thereof and apply the same to any liability or
obligation of Borrower and the REIT even though unmatured and regardless of the adequacy of any
other collateral securing the Loan. ANY AND ALL RIGHTS TO REQUIRE AGENT TO EXERCISE ITS RIGHTS OR
REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE LOAN, PRIOR TO EXERCISING ITS RIGHT
OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF THE BORROWER OR THE REIT, ARE
HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

     19. Information Regarding Borrower and any Collateral. Before signing this Guaranty,
each Guarantor investigated the financial condition and business operations of Borrower, the
present and former condition, uses and ownership of any collateral, and such other matters as such
Guarantor deemed appropriate to assure itself of Borrower’s ability to discharge its obligations
under the Loan Documents. Each Guarantor assumes full responsibility for that due diligence, as
well as for keeping informed of all matters which may affect Borrower’s ability to pay and perform
its obligations to the Agent and the Lenders. Neither the Agent nor any Lender has any duty to
disclose to any Guarantor any information that the Agent or any Lender may have or receive about
Borrower’s financial condition or business operations, the condition or uses of any collateral or
any other circumstances bearing on Borrower’s ability to perform.

     20. JURY TRIAL WAIVER. EACH GUARANTOR, AGENT AND LENDERS MUTUALLY HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED ON
THIS GUARANTY, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS GUARANTY OR ANY OTHER LOAN
DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF
DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT
LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF AGENT AND LENDERS
RELATING TO THE ADMINISTRATION OF THE LOANS OR ENFORCEMENT OF THE LOAN DOCUMENTS, AND AGREE THAT
NONE OF THE PARTIES WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY
TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, EACH GUARANTOR HEREBY
WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE
OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION

15

 

TO ACTUAL DAMAGES. EACH
GUARANTOR CERTIFIES THAT NO REPRESENTATIVE OF AGENT OR LENDERS OR ATTORNEY OF AGENT OR LENDERS HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT AGENT AND LENDERS WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER. EACH GUARANTOR AUTHORIZES AGENT OR ANY LENDER TO FILE THIS
AGREEMENT WITH ANY COURT OF COMPETENT JURISDICTION AS EVIDENCE OF THIS WAIVER. THIS WAIVER
CONSTITUTES A MATERIAL INDUCEMENT FOR GUARANTORS, AGENT AND LENDERS TO ENTER INTO LOAN DOCUMENTS
AND MAKE THE LOANS AND THE TRANSACTIONS CONTEMPLATED HEREBY.

(The next page is the signature page.)

16

 

     Witness the execution and delivery hereof as an instrument under seal as of the date set forth
above.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	GUARANTORS:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	REIT	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	TNP Strategic Retail Trust, Inc., a Maryland
corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ Wendy Worcester	 	 
	 	 	 	 	 	 	 
	 	 	Print Name: Wendy Worcester	 	 
	 

	 	Title: 
	 	Chief Financial Officer
and Secretary	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	TNP	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Thompson National Properties, LLC, a Delaware limited

liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Wendy Worcester	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Wendy Worcester	 
	 

	 	Title: 
	 	Chief Financial Officer
and Secretary	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Thompson	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	/s/ Anthony W. Thompson
	 	 	 	 	 
	 	 	Anthony W. Thompson, an individual

[Signature Page to Guaranty Agreement]exv10w17

Exhibit 10.17

Execution Version

PLEDGE AND SECURITY AGREEMENT

(TNP Strategic Retail Trust, Inc.)

     This PLEDGE AND SECURITY AGREEMENT (this “Agreement”) is made and entered into as of
November 12, 2009 by and between TNP Strategic Retail Trust, Inc., a Maryland corporation having an
address of 1900 Main Street, Suite 700, Irvine, California 92614 (“Grantor”), and KeyBank
National Association, a national banking association having a principal place of business at 225
Franklin Street, 18th Floor, Boston, Massachusetts 02110, as agent (in such capacity,
“Agent”) for itself and any other lenders who become Lenders under the Credit Agreement (as
hereinafter defined) collectively referred to as “Lenders” and each individually referred
to as a “Lender”).

     1. Grant of Pledge and Security Agreement. Grantor does hereby pledge, assign,
transfer and deliver to Agent and does hereby grant to Agent a continuing security interest in the
Collateral to secure the Obligations (as each such term is hereinafter defined).

     2. Credit Agreement; Guaranty and Defined Terms. The Grantor, Thompson National
Properties, LLC, a Delaware limited liability company and Anthony W. Thompson (collectively the
“Guarantors”) have executed and delivered to the Agent, for the benefit of the Lenders that
certain Guaranty Agreement dated as of even date herewith (as amended, restated and/or modified
from time to time, the “Guaranty”), pursuant to which the Guarantors guaranteed all of the
obligations, liabilities and indebtedness of TNP Strategic Retail Operating Partnership, LP, a
Delaware limited partnership (the “Borrower”) to the Lenders under that certain Revolving
Credit Agreement of even date herewith among the Borrower, Agent and Lenders (as amended, restated
and/or modified from time to time, the “Credit Agreement”), the Notes and the related Loan
Documents (each as defined in the Credit Agreement). The Grantor has agreed to provide this
Agreement in order to, inter alia, secure the Obligations (as hereinafter defined) and the
obligations of the Grantor under the Guaranty and related Loan Documents. Capitalized terms used
herein which are not otherwise specifically defined shall have the same meaning herein as in the
Credit Agreement.

     3. Collateral. The term “Collateral” shall mean and include all of Grantor’s
right, title and interest in and to the following, whether now existing or hereafter coming into
existence:

     (a) all Equity Interests (as defined in the Credit Agreement) of Grantor in and to the
Entities (as defined in the Credit Agreement and which, for purposes of clarification, includes,
without limitation, the Borrower), as a member, partner, owner or creditor thereof, including,
without limitation, all certificates (if any) representing or evidencing such Equity Interests
standing in Grantor’s name (all in suitable form for transfer by delivery or accompanied by duly
executed instruments of transfer or assignments in blank, and any required transfer tax stamps),
and all other rights of Grantor under any and all certificates of formation and organization,

 

 

articles of incorporation and organization, operating agreements, partnership agreements, by-laws,
shareholder agreements and any other agreement and document related to the formation,
creation, governance, management and/or operation of the applicable Entity (collectively, the
“Entity Governance Documents,” and individually, an “Entity Governance Document”),
including, without limitation, all right, title and interest (if any) of Grantor as a member,
shareholder, partner, manager or director, as the case may be, to participate in the operation or
management of the Entities and all rights of the Grantor to the property, assets, ownership
interests, dividends and distributions under the Entity Governance Documents, all books, records
and papers, accounts and general intangibles relating thereto, and all products and proceeds, both
cash and non-cash, arising out of or in respect of any of the foregoing;

     (b) all income, money, cash flow, distributions, dividends, refinancing and sale proceeds paid
or to be paid to Grantor, other rights to payments of distributions, dividends, and other proceeds
(the “Rights to Proceeds”), and any and all property and amounts received by Grantor, in
each case only on account of Grantor being a member, partner, shareholder, owner or creditor of the
Entities and all products and proceeds, both cash and non-cash, arising out of or in respect of any
of the foregoing; and all substitutions, additions, interest, and other distributions arising out
of or in respect thereof, all deposit, lockbox and other accounts established by Grantor whether at
Agent or otherwise for the deposit of Net Proceeds and any cash collateral accounts established, in
each case, pursuant to the Credit Agreement (the “Accounts”) and general intangibles
relating thereto, and all products and proceeds, both cash and non-cash, arising out of or in
respect of any of the foregoing; and

     (c) the Distribution Account (as defined in Section 6.13 of this Agreement).

     Notwithstanding anything to the contrary herein, in the Credit Agreement, or any other Loan
Document, the term “Collateral” shall not include, and this Agreement shall not constitute a grant
of a security interest in: (i) Grantor’s right, title or interest in the Equity Interests of
Grantor in and to an Entity to the extent that this Agreement or such a grant of a security
interest is prohibited by, or under the terms thereof, constitutes a breach or default under or
directly or indirectly results in the termination of or requires any consent not obtained under,
the documents evidencing and securing Permitted Additional Debt or Property Level Debt (the
“Permitted Additional Debt Documents”) and/or the Entity Governance Documents for such
Entity, except to the extent that the provision in such documents providing for such prohibition,
breach, default or termination or requiring such consent is ineffective under Sections 9-406,
9-408, 9-409 of the UCC (as defined below) or other applicable provisions of the UCC of any
relevant jurisdiction or any other applicable law (including Title 11 of the United States Code
entitled “Bankruptcy,” as now and hereafter in effect, or any successor statute) or principles of
equity, provided that upon the ineffectiveness, lapse or termination of any such provision
of the Permitted Additional Debt Documents or Entity Governance Documents, the Collateral shall
include, and Grantor shall be deemed to have granted a security interest in, all such right, title
and interest as if such provision had never been in effect; and (ii) all voting rights in the
Collateral (the “Rights to Vote”) if and to the extent that the transfer or pledge thereof
is prohibited or limited by the Permitted Additional Debt Documents or the Entity Governance
Documents ((i) and (ii) being collectively, the “Excluded Rights”).

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     For purposes of clarification, the “Collateral” is not intended to include, and hereby
expressly excludes, any Equity Interests in an Entity owned or otherwise held by any Person that
is a third party joint venture partner of the Grantor (and is not an affiliate or Subsidiary
of Grantor).

     Capitalized terms used in this Section and not defined in the Credit Agreement shall have the
same meaning herein as in the Uniform Commercial Code as adopted in the Commonwealth of
Massachusetts (the “UCC”).

     4. Obligations. The term “Obligations” shall mean all obligations of Grantor
to Agent or any Lender, whether now existing or hereafter arising, direct or indirect, absolute or
contingent, under: (i) this Agreement; (ii) the Guaranty; (iii) any other Loan Document; (iv) all
indebtedness to Agent and Lenders incurred by Grantor, Borrower and any Obligor relating to the
Loan Documents prior to, during or following any proceedings in respect of a bankruptcy,
reorganization or insolvency; and (v) each of the foregoing together with each amendment,
extension, modification, replacement or recasting of any one or more of such agreements.

     5. Warranties and Representations. Grantor warrants and represents to, and agrees
with, Agent and Lenders that:

     5.1 Grantor is and shall be (a) the sole owner of the Equity Interests (as set forth in the
Entity Governance Documents and as described on Exhibit A attached hereto and made a part
hereof) and the Collateral free and clear of all pledges, liens, security interests and other
encumbrances of every nature whatsoever, except in favor of Agent and (b) the owner of the Excluded
Rights, free and clear of all pledges, liens, security interests and other encumbrances of every
nature whatsoever, except in favor of Agent and except as set forth in the provisions of the
Permitted Additional Debt Documents and the Entity Governance Documents, copies of which provisions
have been delivered to Agent to the extent the same are in existence as of the date hereof.

     5.2 Grantor has the corporate power and authority to pledge the Collateral and to grant the
security interest in the Collateral as herein provided.

     5.3 Except as permitted by the Credit Agreement, there are no restrictions on the transfer of
the Collateral to Agent hereunder or with respect to any subsequent transfer thereof or realization
thereupon by Agent.

     5.4 The execution, delivery and performance of this Agreement by Grantor does not and shall
not result in the violation of any mortgage, indenture, material contract, instrument, agreement,
judgment, decree, order, statute, rule or regulation to which Grantor is subject or by which it or
any of its Entities is bound; it being understood that only because the definition of Collateral
excludes the Excluded Rights, there is no violation of the applicable provisions of the Permitted
Additional Debt Documents and the Entity Governance Documents.

     5.5 Grantor shall not suffer or permit any lien or encumbrance to exist on or with respect to
the Collateral except in favor of Agent or as may be permitted by the Credit Agreement.

- 3 -

 

     5.6 This Agreement (i) has been duly authorized, executed and delivered by Grantor and (ii)
constitutes the legal, valid and binding obligation of Grantor enforceable in accordance
with the terms hereof, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, receivership, fraudulent conveyance, moratorium or similar laws
affecting creditors’ rights generally, and by general equitable principles (whether enforcement is
sought by proceedings in equity or at law).

     5.7 As of the date hereof, none of the Grantor’s direct ownership interests constituting the
Collateral are certificated. None of the Collateral constitutes “securities” or “investment
property” as such terms are used in the UCC.

     5.8 To the extent requested by Agent, true and correct copies of the Entity Governance
Documents have been delivered by Grantor to Agent, and the same have not been amended or modified
except as disclosed to Agent in writing.

     5.9 To the extent requested by Agent, true and correct copies of the Permitted Additional Debt
Documents in existence as of the date hereof have been delivered by Grantor to Agent, and the same
have not been amended or modified except as disclosed to Agent in writing.

     5.10 Exhibit A is a complete and correct list of all Entities, and such Exhibit
A sets forth for each such Entity, (a) the jurisdiction of organization of such Entity,
(b) each Person holding any Equity Interests in such Entity, (c) the nature of the Equity Interests
held by each such Person, and (d) the percentage of ownership of such Entity represented by such
Equity Interests. Except as disclosed in such Exhibit A (x) all of the issued and
outstanding capital stock of each such Entity organized as a corporation is validly issued, fully
paid and nonassessable and (y) except as permitted, in writing, by the Agent, there are no
outstanding subscriptions, options, warrants, commitments, preemptive rights or agreements of any
kind (including, without limitation, any stockholders’ or voting trust agreements) for the
issuance, sale, registration or voting of, or outstanding securities convertible into, any
additional shares of capital stock of any class, or partnership or other ownership interests of any
type in, any such Entity.

     5.11 Except for the filing of any UCC financing statements in connection with this Agreement,
Grantor is not required to obtain any consent, approval or authorization from, or to file any
declaration or statement with, any governmental instrumentality or other agency or any other Person
in connection with or as a condition to the execution, delivery or performance of this Agreement,
except such consents as have already been obtained, it being understood that only because the
definition of Collateral excludes the Excluded Rights, no consent, approval, or authorization is
needed by Grantor in connection with or as a condition to the execution, delivery or performance of
the Agreement.

     5.12 Grantor’s correct legal name, state of organization and principal address are accurately
and completely set forth in the first paragraph of this Agreement.

- 4 -

 

     6. Grantor’s Agreements. Grantor agrees so long as the Obligations remain outstanding
that:

     6.1 Grantor shall execute all such instruments, documents and papers, and will do all such
acts as Agent may reasonably request (provided the same do not materially increase Grantor’s
liabilities or obligations) from time to time to carry into effect the provisions and intent
of this Agreement including, without limitation, the execution of notifications to obligors on
the Collateral, and will use good faith reasonable efforts to do all such other acts as Agent may
reasonably request with respect to the perfection and protection of the pledge and security
interest granted herein and the assignment effected hereby, to the extent the same are permitted by
the applicable Entity Governance Documents.

     6.2 Grantor shall keep the Collateral and Excluded Rights free and clear of all liens,
encumbrances, attachments, security interest pledges and charges except for this Agreement and as
otherwise permitted by the Credit Agreement.

     6.3 Grantor shall not sell, assign, transfer or otherwise dispose of the Collateral or any
Excluded Rights or any interest therein to any other person, firm, corporation or entity, except
for Permitted Distributions and except as permitted under the Credit Agreement.

     6.4 Grantor shall cause the lien hereof to be registered in the books and records maintained
by the Entities and cause each such Entity to execute and deliver an Entity Consent acknowledging
the foregoing.

     6.5 To the extent required by the Credit Agreement, Grantor shall deliver to Agent, if and
when received by Grantor, any item representing or constituting any of the Collateral received by
Grantor; and if, after the occurrence and during the continuance of an Event of Default, any of
such proceeds should be paid to or come into the hands of Grantor, Grantor shall hold the same in
trust for prompt delivery to Agent to be held as additional Collateral.

     6.6 Grantor shall not exercise any right with respect to the Collateral or the Excluded Rights
which would dilute or materially adversely affect Agent’s rights in the Collateral unless otherwise
permitted by the terms of the Credit Agreement; provided that the foregoing shall not be deemed to
limit any actions reasonably taken by an Entity in connection with the operation, maintenance or
repair of a Property and which are otherwise in compliance with any applicable Property Loan
Documents.

     6.7 Grantor shall, upon request from Agent, from time to time, use commercially reasonable
efforts to cause the issuer of any securities comprising any of the Collateral which may be, but
has not been, certificated, to issue certificates with respect thereto in the name of Grantor or,
if so requested by Agent after the occurrence and during the continuance of an Event of Default, in
the name of Agent or that of its nominee as secured party. Pursuant to Section 6.5, upon the
occurrence and during the continuance of an Event of Default, Agent may receive the income and any
distributions with regard to the Collateral and hold the same as Collateral for the Obligations, or
apply the same to any defaulted Obligation of Grantor owed to Lenders.

     6.8 In the case of certificated securities, Grantor shall promptly pledge and deposit
hereunder with Agent, any equity securities, certificates or other rights to acquire a certificate
of

- 5 -

 

Equity Interests of the Entities acquired by Grantor in evidence of the Collateral, whether by
new issuance or by declaration of a dividend or distribution with respect to, or a split of, or
conversion of, any securities now or hereafter held in pledge (all, if applicable and as reasonably
requested by Agent, in suitable form for transfer by delivery or accompanied by (a) duly executed
instruments of transfer or assignments in blank, and (b) any required transfer tax stamps).

     6.9 Grantor shall not enter into or consent to any amendment, modification or termination of
or with respect to any organizational document or Entity Governance Document of any Entity to the
extent that such amendment, modification or termination could be materially adverse to the Agent or
Lenders without Agent’s prior written consent in each instance, which consent may be withheld,
granted or granted conditionally in the reasonable discretion of Agent.

     6.10 Insofar as the same may be material or significant to Agent’s interests, Grantor shall
perform all of its obligations as an owner of an interest in an Entity owning any of the Funded
Properties. Additionally, Grantor shall, in Grantor’s good faith business judgment, enforce to the
extent provided for in the organizational documents or other Entity Governance Documents of the
Entities, all of the material obligations of the other partners, owners or members.

     6.11 Except as may be permitted by the Credit Agreement, no Entity Governance Documents or
Permitted Additional Debt Documents executed after the date hereof shall contain any Excluded
Rights without the prior written consent of Agent, which consent shall not be unreasonably
withheld.

     6.12 Grantor shall not permit any of the Equity Interests constituting the Collateral to be
certificated or to be a “security” or “investment property” as such terms are used in the UCC.

     6.13 If requested by Agent, after the occurrence and during the continuance of an Event of
Default, Grantor shall deposit all cash and other Net Proceeds received as a direct or indirect
distribution from the Entities into a deposit account (the “Distribution Account”),
maintained with Key (as defined in the Credit Agreement), and which Distribution Account shall be
subject to the provisions of Section 9.11 of the Credit Agreement.

     6.14 On the date of this Agreement, Grantor shall deliver to Agent the written consent of each
Entity, together with the written consent of any member, partner, shareholder or other holder of an
Equity Interest where the consent of such Person is required, under the applicable Entity
Governance Documents, for the transactions contemplated by this Agreement, all substantially in the
form of the Consent, Acknowledgement and Agreement attached hereto as Exhibit B (each, a
“Consent”). Grantor shall deliver a Consent with respect to any Entity in which Grantor
acquires an interest within the time period specified in the Credit Agreement (or if no time is so
specified, then within five (5) Business Days after acquisition of such Equity Interests).

     6.15 Grantor will, upon obtaining ownership of any additional Equity Interests or Collateral
in an Entity, within the time periods specified in the Credit Agreement (or if no time is so
specified, then within five (5) Business Days after acquisition of such Equity Interests) deliver
to Agent an addendum to this Pledge Agreement in the form of Exhibit C attached hereto and

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made a part hereof (each, a “Pledge Agreement Addendum”), duly executed by Grantor, in
respect of any such additional Equity Interests and Collateral, pursuant to which Grantor pledges,
assigns, transfers, delivers and grants a security interest to the Agent, for the benefit of the
Lenders, in and to such Equity Interests and Collateral. Grantor hereby authorizes Agent to attach
each Pledge Agreement Addendum to this Agreement and agrees that all Equity Interests listed on any
Pledge Agreement Addendum delivered to Agent shall for all purposes hereunder be considered
Collateral. In the event any such additional Equity Interests identified on a Pledge
Agreement Addendum are represented by certificated securities or other certificates, Grantor
shall deliver, together with such Pledge Agreement Addendum, all such certificates (if any)
representing or evidencing such Equity Interests standing in Grantor’s name (all in suitable form
for transfer by delivery or accompanied by duly executed instruments of transfer or assignments in
blank, and any required transfer tax stamps). Upon the execution and delivery of a Pledge
Agreement Addendum, Exhibit A hereto shall be deemed to be amended and modified to reflect
such new or additional Equity Interests of the Grantor.

     6.16 Subject to the provisions of Section 3 of this Agreement related to Excluded
Rights, in the event that Grantor currently holds or hereafter acquires any Equity Interests or
additional Equity Interests or other Collateral in an Entity (each, a “New Grantor”) and
such New Grantor, directly or indirectly, holds Equity Interests in and to an Entity owning a
Property (or having rights in and to such Property), Grantor shall cause such New Grantor to
execute and deliver to the Agent, for the benefit of the Lenders, a Joinder to Pledge and Security
Agreement (a “Joinder”), each in the form of Exhibit D attached hereto and made a
part hereof, pursuant to which such New Grantor pledges, assigns, transfers, delivers and grants a
security interest to the Agent, for the benefit of the Lenders, in and to any Equity Interests and
Collateral of such New Grantor in and to any Entity. Upon execution and delivery of any Joinder,
each New Grantor executing such Joinder shall be deemed a “Grantor” for purposes of this Agreement,
and Exhibit A hereto shall be deemed to be amended and modified to reflect such Equity
Interests of the New Grantor, all as if such New Grantor had been an original signatory to this
Agreement. Additionally, the Grantor shall comply with the provisions of Section 6.15 of this
Agreement with respect to the Equity Interests of Grantor in and to such New Grantor.

     6.17 Grantor shall not, without the prior written consent of Agent in each instance, vote the
Collateral or the Excluded Rights in favor of or consent to any resolution or action which does or
might: (a) impose any restrictions upon the sale, transfer or disposition of the Collateral other
than restrictions, if any, the application of which is waived to the full satisfaction of Agent as
to the Collateral; (b) result in the issuance of any additional Equity Interest in an Entity, or of
any class of security, which issuance might adversely affect the value of the Collateral; (c) vest
additional powers, privileges, preferences or priorities to any other class of interest in an
Entity to the detriment of the value of or rights accruing to the Collateral; (d) permit any Entity
to sell, transfer, assign, pledge, mortgage, or otherwise encumber any property owned by such
Entity, or to incur any new indebtedness, unless Agent has given its prior written consent (which
consent shall not be unreasonably withheld) or unless permitted by the Credit Agreement; (e) have
the effect of impairing the position or interest of Agent with respect to the Collateral or Agent’s
rights and remedies under the Credit Agreement or any other Loan Document referred to therein,
except as otherwise permitted in the Credit Agreement, provided that the foregoing shall not be
deemed to limit any actions reasonably taken by an Entity in connection with the operation,
maintenance or repair of a Property and which are otherwise in

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compliance with any applicable
Property Loan Documents; (f) cause an Event of Default; (g) adversely affect the value of the
Collateral in the reasonable opinion of Agent, except otherwise permitted in the Credit Agreement,
provided that the foregoing shall not be deemed to limit any actions reasonably taken by an Entity
in connection with the operation, maintenance or repair of a Property and which are otherwise in
compliance with any applicable Property Loan Documents; or (h) authorize or effect any action then
prohibited by the Credit Agreement or any other Loan Document referred to therein.

     6.18 Grantor shall not itself, or on behalf of any Entity, take any action or refrain from
taking any action which would cause or result in a violation of any provisions of the Loan
Documents.

     6.19 Grantor shall take all such actions as may be necessary or desirable in order to insure
that all of the Obligations under the Loan Documents are punctually and faithfully paid and
performed in the manner provided for therein.

     7. Events of Default. Upon the occurrence of any one or more of the following events
(collectively, “Events of Default”) any and all of the Obligations of Grantor to Agent and
Lenders shall become immediately due and payable at the option of Agent, without further notice or
demand: (i) the occurrence of an uncured Event of Default as defined in the Credit Agreement; (ii)
the failure of Grantor to pay and perform all of Grantor’s obligations to Agent and Lenders
hereunder and/or under the Guaranty, unless such failure is cured or remedied within the applicable
grace or notice and cure period, if any, set forth or referred to in the Credit Agreement; (iii)
the making of any levy, seizure, or attachment of any of the Collateral; (iv) the sale, transfer,
pledge, or any encumbrance on the Collateral (excluding transfers permitted under the Credit
Agreement); or (v) other than because of Agent’s gross negligence or willful misconduct, this
Agreement shall at any time for any reason cease to be in full force and effect or shall be
determined to be null and void, or the validity or enforceability thereof shall be contested by
Grantor or Grantor shall deny that it has any liability or obligation thereunder.

     Upon any such uncured Event of Default, Agent may exercise any one or more of Agent’s rights
and remedies as hereinafter set forth or as set forth and provided for in each of the other Loan
Documents.

     8. After Event of Default.

     8.1 Upon the occurrence of any Event of Default, and during the continuance thereof, Agent
shall have all of the rights and remedies of a secured party upon default under the UCC, in
addition to which Agent may sell or otherwise dispose of the Collateral and/or enforce and collect
the Collateral (including, without limitation, the liquidation of debt instruments or securities
and the exercise of conversion rights with respect to convertible securities, whether or not such
instruments or securities have matured, and whether or not any penalties or other charges are
imposed on account of such action) for application towards (but not necessarily in complete
satisfaction of) the Obligations. Grantor shall remain liable to Agent for any deficiency
remaining following such application.

     8.2 Unless the Collateral threatens to decline speedily in value or is of a type customarily
sold on a recognized market (in which event Agent shall give Grantor such notice as

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may be
practicable under the circumstances), Agent shall give Grantor at least the greater of the minimum
notice required by law or ten (10) days’ prior written notice of the date, time and place of any
public sale thereof, or of the time after which any private sale or any other intended disposition
is to be made.

     8.3 Grantor acknowledges that any exercise by Agent of Agent’s rights upon an uncured Event of
Default will be subject to compliance by Agent with the applicable statutes,
regulations, ordinances, directives and orders of any federal, state, municipal or other
governmental authority including, without limitation, any of the foregoing which may restrict the
sale or disposition of securities. Agent in its sole discretion at any such sale or in connection
with any such disposition may restrict the prospective bidders or purchasers as to their number,
nature of business, investment intention, or otherwise, including, without limitation a requirement
that the persons making such purchases represent and agree to the satisfaction of Agent that they
are purchasing the Collateral, or some portion thereof, for their own account, for investment and
not with a view towards the distribution or a sale thereof, or that they otherwise fall within some
lawful exemption from registration under applicable laws.

     8.4 The proceeds of any collection or of any sale or disposition of the Collateral, or any
portion thereof, held pursuant to this Agreement shall be applied towards the Obligations in such
order and manner as Agent determines in its sole discretion, any statute, custom or usage to the
contrary notwithstanding. Grantor shall remain liable to Agent and Lenders for any deficiency
remaining following such application.

     8.5 If at any time when Agent shall determine to exercise its right to sell all or any part of
the Collateral pursuant to this Section, and if such Collateral or the part thereof to be sold
shall not, for any reason whatsoever, be effectively registered under the Securities Act of 1933,
as from time to time in effect (the “Securities Act”) or the securities laws of any state,
Agent in its sole and absolute discretion, is hereby expressly authorized to sell such Collateral
or such part thereof by arm’s-length private sale in such manner and under such circumstances as
Agent may reasonably determine in order that such sale may legally be effected without such
registration. Agent may sell all or any part of the Collateral at any price which is commercially
reasonable under the circumstances, in its reasonable discretion. Grantor acknowledges that Agent
may resort to one or more private sales to a single purchaser or a restricted group of purchasers
who may be obligated to agree, among other things, to acquire such Collateral for their own
account, for investment and not with a view to the distribution or resale thereof. Grantor agrees
that private sales may be at prices and other terms less favorable to Grantor than if such
Collateral were sold at a public sale and that Agent shall have no obligation to delay the sale of
any such portion of the Collateral for the period of time necessary to permit the issuer of such
Collateral to register or qualify such Collateral, even if such issuer would, or should, proceed to
register or qualify such Collateral for public sale. Grantor agrees that private sales made under
the foregoing circumstances shall be deemed to have been made in a “commercially reasonable”
manner.

     8.6 Except for its gross negligence or willful misconduct, Agent shall incur no liability as a
result of the sale of the Collateral, or any part thereof, at any arm’s-length private sale
pursuant to this Agreement. Grantor hereby waives any claims against Agent arising by reason of
the fact that the price at which the Collateral may have been sold at such private sale

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was less
than the price that might have been obtained at a public sale or was less than the aggregate amount
of the secured Obligations, even if Agent accepts the first offer received and does not offer the
Collateral to more than one offeree.

     8.7 In connection with the exercise by Agent of any of its rights and remedies under this
Agreement, Grantor waives any rights that it may have under the Entity Governance Documents or
otherwise, including without limitation, rights of first refusal, and hereby consents
to the assignment of the Collateral (including any economic interest therein and all voting
rights and respect thereof) to any other person.

     9. Payments on Account of Collateral. Upon the occurrence and during the continuance
of any Event of Default, all payments due on account of the Collateral, whether or not such
payments are ordinary and regular cash distributions, shall be paid to Agent or, at Agent’s option,
to Agent’s nominee.

     10. Actions By Agent. Grantor hereby designates Agent, or any agent designated by
Agent, as the attorney-in-fact of Grantor, which power of attorney shall be exercisable during the
continuance of an Event of Default, to: (a) endorse in favor of Agent any of the Collateral; (b)
cause the transfer of any of the Collateral in such name as Agent may from time to time determine;
(c) renew, extend or roll over any Collateral; and (d) make, demand and initiate actions to enforce
any of the Collateral or rights therein. Agent may take such action with respect to the Collateral
as Agent may reasonably determine to be necessary to protect and preserve its interest in the
Collateral. Agent shall also have and may exercise at any time all rights, remedies, powers,
privileges and discretions of Grantor with respect to and under the Collateral; provided,
however, Agent shall have no right to exercise any voting rights available to holders of
the Collateral at any time the Collateral is held by Agent solely as secured party hereunder unless
an uncured Event of Default has occurred and is continuing (and has not been waived by Agent), and
then only to the extent such voting rights are not part of the Excluded Rights. The within
designation and grant of power of attorney is coupled with an interest, is irrevocable until this
Agreement is terminated by a written instrument executed by a duly authorized officer of Agent. The
power of attorney shall not be affected by subsequent disability or incapacity of Grantor. Agent
shall not be liable for any act or omission to act pursuant to this Section 10, except for any act
or omission to act which is in actual bad faith is grossly negligent or resulting from willful
misconduct.

     11. Rights and Remedies. The rights, remedies, powers, privileges and discretions of
Agent hereunder (hereinafter, the “Rights and Remedies”) shall be cumulative and not
exclusive of any rights, remedies, powers, privileges or discretions which it may otherwise have.
No delay or omission by Agent in exercising or enforcing any of the rights and remedies shall
operate as, or constitute, a waiver thereof. No waiver by Agent of any default or any Event of
Default or of any default under any other agreement shall operate as a waiver of any other default
hereunder or under the Loan Documents. No exercise of any of the Rights and Remedies and no other
agreement or transaction of whatever nature entered into between Agent and Grantor at any time
shall preclude any other exercise of the Rights and Remedies. No waiver by Agent of any of the
Rights and Remedies on any one occasion shall be deemed a waiver on any subsequent occasion nor
shall it be deemed a continuing waiver. All of the Rights and Remedies and all of Agent’s rights,
remedies, powers, privileges and discretions under any other agreement

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or transaction are
cumulative and not alternative or exclusive and may be exercised by Agent at such time or times in
such order of preference as Agent in its sole and absolute discretion may determine.

     12. Grantor’s Consent and Waiver. Grantor hereby consents to the extension, renewal,
amendment, modification or recasting from time to time of the Obligations or of any instrument,
document or agreement evidencing or securing any of the same, and Grantor specifically waives any
notice of the creation or existence of any of such Obligations and of any such extension, renewal,
amendment, modification or recasting. Grantor also agrees that Agent
may enforce its rights as against Grantor, the Collateral, or as against any other party
liable for the Obligations, or as against any other collateral given for any of the Obligations, in
any order or in such combination as Agent may in its sole discretion determine, and Grantor hereby
expressly waives all suretyship defenses and defenses in the nature thereof, agrees to the release
or substitution of any collateral hereunder or otherwise, and consents to each and all of the
terms, provisions and conditions of the other Loan Documents. Grantor agrees that it shall not
have any right of subrogation under any of the Loan Documents or any right to participate in any
security for the Obligations or any right to reimbursement, exoneration, contribution,
indemnification or any similar rights, and Grantor hereby waives all of such rights. Upon the
occurrence and during the continuance of an Event of Default, Grantor hereby irrevocably
authorizes the Entities to accept and act upon all instructions and directions given by Agent to
the Entities with respect to the Collateral, without the necessity of further authorization or
consent from, or notice to, Grantor. Grantor further: (a) waives presentment, demand, notice and
protest with respect to the Obligations and the Collateral; (b) waives any delay on the part of
Agent; (c) assents to any indulgence or waiver which Agent may grant or give any other Person
liable or obliged to Agent for or on account of the Obligations; (d) authorizes Agent to alter,
amend, cancel, waive or modify any term or condition of the obligations of any other Person liable
or obligated to Agent for or on account of the Obligations without notice to or further consent
from Grantor; (e) agrees that no release of any Entities securing the Obligations shall affect the
rights of Agent with respect to the Collateral hereunder which is not so released; and (f) to the
fullest extent that it is not unlawful to do so, waives the right to notice and/or hearing, if it
might otherwise be entitled thereto, prior to Agent’s exercising the Rights and Remedies upon and
during the continuance of an Event of Default. Additionally, to the maximum extent permitted by
applicable law, Grantor expressly waives any and all defenses now or hereafter arising or asserted
by reason of (i) any disability or other defense of Borrower or any other Obligor with respect to
the obligations evidenced hereby, (ii) the unenforceability or invalidity of any security or
guaranty for the obligations evidenced hereby or the lack of perfection or continuing perfection or
failure of priority of any security for the obligations evidenced hereby, (iii) the cessation for
any cause whatsoever of the liability of Borrower or any other Obligor (other than by reason of the
full payment and performance of all Obligations), (iv) any failure of Agent or any Lender to comply
with applicable law in connection with the sale or other disposition of any Collateral, (v) any act
or omission of Agent or any Lender or others that directly or indirectly results in or aids the
discharge or release of Borrower, any Obligor or the Obligations evidenced hereby or any security
or guaranty therefor by operation of law or otherwise, (vi) the avoidance of any lien in favor of
Agent or any Lender for any reason, (vii) the filing of any bankruptcy, reorganization or other
insolvency proceeding against Borrower or any Obligor, or (viii) any action taken by Agent or any
Lender that is authorized by this Section or any other provision hereof or of any Loan Document.
Grantor assumes all responsibility for

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being and keeping itself informed of Borrower’s financial
condition and assets, and all other circumstances bearing upon the risk of nonpayment of the
Obligations and the nature, scope and extent of the risks which Grantor assumes and incurs
hereunder, and agrees that neither Agent nor any Lender shall have any duty to advise Grantor of
information known to it regarding such circumstances or risks.

     13. Agent May Assign. Grantor agrees that upon any sale or transfer by Agent of the
Note and the indebtedness evidenced thereby, subject to the requirements of the Credit Agreement,
Agent may assign or transfer its rights and interest under this Agreement in whole or
in part to the purchaser or transferee, who shall thereupon become vested with all powers and
rights given to Agent in respect thereto, and Agent and Lenders shall be thereafter forever
relieved and fully discharged from any liability or responsibility in connection therewith
occurring after such delivery.

     14. Limits on Agent’s Duties. Agent shall have no duty as to the collection or
protection of the Collateral, or any portion thereof, or any income or distribution thereon, beyond
the safe custody of such of the Collateral as may come into the actual possession of Agent, and
Agent shall have no duty as to the preservation of rights against prior parties or any other rights
pertaining thereto.

     15. WAIVER OF JURY TRIAL. EACH OF GRANTOR, LENDERS AND AGENT HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE CREDIT AGREEMENT OR
ANY OTHER DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT,
COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS WAIVER
CONSTITUTES A MATERIAL INDUCEMENT FOR LENDERS AND AGENT TO ACCEPT THIS AGREEMENT AND ENTER THE
CREDIT AGREEMENT.

     16. Miscellaneous.

     16.1 Agent’s Rights and Remedies may be exercised without resort to or regard to any other
source of satisfaction of the Obligations.

     16.2 All of the agreements, obligations, undertakings, representations and warranties herein
made by Grantor shall inure to the benefit of Agent and Agent’s successors and assigns and shall
bind Grantor and its successors and assigns.

     16.3 This Agreement and all other instruments executed in connection herewith incorporate all
discussions and negotiations between Grantor and Agent concerning the matters included herein and
in such other instruments. No such discussions or negotiations shall limit, modify or otherwise
affect the provisions hereof. No modification, amendment or waiver of any provisions of the within
Agreement or of any provision of any other agreement between the Grantor and Agent shall be
effective unless executed in writing by the party to be charged with such modification, amendment
and waiver and, if such party be Agent or Agent, then by a duly authorized officer thereof.

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     16.4 This Agreement and all other documents in Agent’s possession which relate to the
Obligations may be reproduced by Agent by any photographic, photostatic microfilm, microcard,
miniature photographic, xerographic, PDF or similar process. Any such reproduction shall be
admissible in evidence as the original itself in any judicial or administrative proceeding (whether
or not the original is in existence and whether or not such reproduction was made in the regular
course of business) and any enlargement, facsimile or further reproduction shall be likewise
admissible in evidence.

     16.5 Captions in this Agreement are intended solely for convenience and shall not have any
affect on the meaning or interest of any provisions hereof.

     16.6 Each provision hereof shall be enforceable to the fullest extent not prohibited by
applicable law. The invalidity and unenforceability of any provision(s) hereof shall not impair or
affect any other provision(s) hereof which are valid and enforceable.

     16.7 This Agreement may be executed in several counterparts, each of which when executed and
delivered is an original, but all of which together shall constitute one instrument. In making
proof of this Agreement, it shall not be necessary to produce or account for more than one such
counterpart which is executed by the party against whom enforcement of such agreement is sought.

     16.8 Notwithstanding anything to the contrary contained herein or in any other document or
agreement, the Collateral is conditionally assigned and transferred to the Agent as collateral
security for the Obligations it being understood and agreed that the Agent’s entry into this
Agreement shall not be deemed to be an assumption by the Agent of any obligations or liabilities
which the Grantor may have under any such document or agreement or on account of the Grantor unless
and until the Agent expressly and specifically assumes in writing such obligations and liabilities
and then only to the extent such obligations and liabilities, if any, arise after such written
assumption.

     16.9 Any notice or other communication in connection with this Agreement shall be given as set
forth in the Credit Agreement.

     16.10 This Agreement shall in all respects be governed, construed, applied and enforced in
accordance with the internal laws of the Commonwealth of Massachusetts without regard to principles
of conflicts of law, other than as expressly set forth herein.

     16.11 Neither Agent nor any Lender shall, by virtue of this Agreement or its receipt of any
distributions with respect to the Collateral, be deemed to be a member, partner or owner of the
Entities or have any liability for the debts, obligations or liabilities of the Entities or any of
the partners thereof unless and until Agent expressly and specifically assumes in writing such
obligations and liabilities and then only to the extent such obligations and liabilities, if any,
arise after such written assumption. Grantor hereby covenants and agrees to indemnify and hold
harmless Agent from and against any and all liability, loss, or damage which it may suffer or incur
and which arises out of or results from this Agreement, or acceptance of distributions pursuant
hereto, or any claim of any alleged obligation, liability, or duty on the part of Grantor to
perform or discharge any of the terms, covenants, or provisions of with respect to the Entities or
any liability or obligation of the Entities, excluding in each case any such liability caused by
the

- 13 -

 

gross negligence or willful misconduct of Agent, together with all costs and expenses
(including, without limitation, court costs and reasonable attorneys’ fees) paid or incurred in
connection therewith.

     16.12 Within five (5) Business Days of a sale, transfer or other disposal of a portion of the
Collateral that has been approved by Agent in accordance with the Credit Agreement, Agent
shall deliver any releases or terminations reasonably requested by Grantor with respect to the
sold Collateral.

     16.13 For the purpose of enforcing payment and performance of this Agreement, or in any other
matter relating to, or arising out of, the Loan Documents, Grantor hereby consents to the
jurisdiction and venue of the courts of the Commonwealth of Massachusetts and the State of Delaware
or of any federal court located in such state, waives personal service of any and all process upon
it and consents that all such service of process be made by certified or registered mail directed
to such at the address provided for above and service so made shall be deemed to be completed upon
actual receipt or execution by a receipt by Grantor such address. Grantor hereby waives the right
to contest the jurisdiction and venue of the courts located in the Commonwealth of Massachusetts
and the State of Delaware on the ground of inconvenience or otherwise and, further, waives any
right to bring any action or proceeding against Agent or any Lender in any court outside the
Commonwealth of Massachusetts and the State of Delaware. For the purpose of enforcing the
performance of obligations by Agent under the Loan Documents, or in any other matter relating to,
or arising out of the Loan Documents, Agent hereby consents to the jurisdiction and venue of the
courts of the Commonwealth of Massachusetts and the State of Delaware or of any federal court
located in such state, waives personal service of any and all process upon it and consents that all
such service of process may be made by certified or registered mail directed to Agent at the
address provided for above and service so made shall be deemed to be completed upon actual receipt
or execution of a receipt by any Person at such address. The provisions of this subsection shall
not limit or otherwise affect the right of Agent to institute and conduct an action in any other
appropriate manner, jurisdiction or court.

     17. Termination and Release. Upon the payment and performance of the Obligations in
full, the pledge of the Collateral contained in this Agreement shall terminate and Agent, at the
request and reasonable expense of Grantor, will execute and deliver to Grantor an instrument or
instruments, reasonably satisfactory to Grantor, acknowledging the satisfaction and termination of
such pledge, and will duly assign, transfer and deliver to Grantor such of the Collateral as may be
in the possession of Agent and as has not theretofore been sold or otherwise applied or released
pursuant to this Agreement, together with any monies relating to the Collateral at the time held by
Agent hereunder.

     18. Member Consent and Agreement. Grantor as the holder of Equity Interests in the
Entities, hereby (a) instructs each Entity to register the rights of Agent created hereunder in the
Collateral in the books and records maintained by such Entity, (b) in connection with the exercise
by Agent of its rights and remedies under this Agreement, consents to the foreclosure or other
disposition or assignment of the Collateral to any person or entity (an “Assignee”) and the
substitution of such Assignee as a new holder of such Equity Interests and Collateral, and (c)
agrees that no such assignment or substitution and no foreclosure under this Agreement or other
remedies in respect thereof shall effect a termination or dissolution of such Entity. Without

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limiting the generality of the foregoing and notwithstanding the provisions of the applicable
Entity Governance Documents, Grantor, as holder of the Equity Interests in such Entity, hereby
agrees that if any Collateral is assigned to an Assignee upon the exercise by Agent of its rights
and remedies pursuant to this Agreement: (x) such Assignee shall be deemed a member, manager,
partner, limited partner, general partner, shareholder or other owner of such Equity Interests and
Collateral, with all rights of an owner of such Equity Interests and Collateral under the
applicable
Entity Governance Documents, all with no further action or consent by any other Person being
necessary; and (y) on and after the admission of an Assignee as a member, manager, partner, limited
partner, general partner, shareholder or other owner of such Equity Interests and Collateral of the
applicable Entity, such Assignee shall have all powers, statutory and otherwise, possessed by, and
all obligations (to the extent such obligations first arise, and relate to events occurring, after
the date that such Assignee is substituted as the new holder of the Equity Interests) of, a member,
manager, partner, limited partner, general partner, shareholder or other owner of Equity Interests
and Collateral under all applicable laws. Grantor hereby covenants and agrees to indemnify, defend
and hold harmless Assignee from and against any claim, cause of action, expense or liability which
arises out of, or otherwise results from, Grantor’s acts or omissions in its capacity as a member,
manager, partner, limited partner, general partner, shareholder or other owner of such Equity
Interests and Collateral of the applicable Entity, regardless of whether any such claim, cause of
action, expense or liability is asserted before or after an Assignee is substituted as the new
holder of the Equity Interests.

     19. Authorization. Grantor authorizes the filing by Agent, of any financing or
continuation statements, or amendments thereto, describing any of the Collateral and Grantor will
execute and deliver to Agent such other instruments or notices, as may be necessary or as Agent may
reasonably request, in order to perfect and preserve the security interest granted or purported to
be granted hereby, by any Pledge Agreement Addendum and/or any Joinder. Grantor also hereby
ratifies and confirms any and all financing statements or amendments previously or hereafter filed,
by Agent, in any jurisdiction. Upon request of the Grantor, Agent will endeavor to deliver to
Grantor, copies of any such continuation statements and amendments filed by the Agent.

     20. Subordination. Except as may be otherwise specifically provided for in the
Credit Agreement with respect to Permitted Distributions and repayment of Permitted Additional
Debt, any indebtedness of Borrower to Grantor now or hereafter existing together with any interest
thereon shall be, and such indebtedness is, hereby deferred, postponed and subordinated to the
prior, full and Non-Contestable Payment and satisfaction of all Obligations of Borrower to the
Lenders. Payment and satisfaction of Obligations shall be deemed “Non-Contestable Payment”
only upon such payment and satisfaction and the expiration of all periods of time within which a
claim for the recovery of a preferential payment, or fraudulent conveyance, or fraudulent transfer,
in respect of payments received by Agent as to the Obligations could be filed or asserted with:
(A) no such claim having been filed or asserted, or (B) if so filed or asserted, the final,
non-appealable decision of a court of competent jurisdiction denying the claim or assertion.
Except as may be otherwise specifically provided for in the Credit Agreement with respect to
Permitted Distributions and repayment of Permitted Additional Debt, at all times until the full and
Non-Contestable Payment and satisfaction of the Obligations of Borrower to Lenders with respect to
the Obligations (and including interest accruing on the Note after the commencement of a case by or
against Borrower under the Bankruptcy Code now or hereafter in

- 15 -

 

effect, which interest the parties
agree shall remain a claim that is prior and superior to any claim of Grantor notwithstanding any
contrary practice, custom or ruling in cases under the Bankruptcy Code, as now or hereafter in
effect, generally), Grantor agrees not to accept any payment or satisfaction for any kind of
indebtedness of Borrower to Grantor and hereby assigns such indebtedness to Lenders including, but
not limited to, the right to file proofs of claim and to vote thereon in connection with any such
case under the Bankruptcy Code, as now or hereafter in effect, and the right to vote
on any plan of reorganization. Further, Grantor hereby agrees that any and all security
interests heretofore or hereafter granted to Grantor by Borrower in the Collateral shall be junior
and subordinate to the collateral assignment and security interests in favor of the Agent
hereunder.

(Signature on next page)

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     This Agreement has been executed and delivered as an instrument under seal as of the date and
year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	GRANTOR:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TNP Strategic Retail Trust, Inc., a Maryland corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ Anthony W. Thompson	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name	 	Anthony W. Thompson	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title	 	Chief Executive Officer	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	AGENT:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	KeyBank National Association	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ Christopher T. Neil	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name	 	Christopher T. Neil	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title	 	Senior Relationship Manager	 	 
	 

	 	 	 	 	 	 	 	 

[Pledge and Security Agreement (REIT)]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}]]