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<SEC-DOCUMENT>0000950137-08-010451.txt : 20080808
<SEC-HEADER>0000950137-08-010451.hdr.sgml : 20080808
<ACCEPTANCE-DATETIME>20080808104114
ACCESSION NUMBER:		0000950137-08-010451
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		8
CONFORMED PERIOD OF REPORT:	20080630
FILED AS OF DATE:		20080808
DATE AS OF CHANGE:		20080808

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AGREE REALTY CORP
		CENTRAL INDEX KEY:			0000917251
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				383148187
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12928
		FILM NUMBER:		081000878

	BUSINESS ADDRESS:	
		STREET 1:		31850 NORTHWESTERN HGWY
		CITY:			FARMINGTON HILLS
		STATE:			MI
		ZIP:			48334
		BUSINESS PHONE:		8107374190

	MAIL ADDRESS:	
		STREET 1:		31850 NORTHWESTERN HIGHWAY
		CITY:			FARMINGTON HILLS
		STATE:			MI
		ZIP:			48334
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>k34657e10vq.htm
<DESCRIPTION>AGREE REALTY CORPORATION 10-Q
<TEXT>
<HTML>
<HEAD>
<TITLE>Agree Realty Corporation 10-Q</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 10-Q</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><b>Mark
One</b>

</DIV>
<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>Quarterly Report Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%"><B>For the quarterly period ended June&nbsp;30, 2008
</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>OR</B></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>Transition Report Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%"><B>For the transition period from <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Commission File Number 1-12928</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B><FONT style="border-bottom: 1px solid #000000">Agree Realty Corporation</FONT></B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Maryland</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>38-3148187</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">of incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Identification No.)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>31850 Northwestern Highway, Farmington Hills, Michigan</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>48334</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Registrant&#146;s telephone number, including area code: (248)&nbsp;737-4190</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Indicate by check mark whether the registrant: (1)&nbsp;has filed all reports required to be filed by
Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12&nbsp;months (or for
such shorter period that the registrant was required to file such reports), and (2)&nbsp;has been
subject to such filing requirements for the past 90&nbsp;days. Yes <FONT face="Wingdings">&#254;</FONT> No <FONT face="Wingdings">&#111;</FONT>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer,
a non-accelerated filer, or a smaller reporting company.
See the definitions of &#147;large
accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange Act. (Check one):</DIV>



<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left" valign="top">Large accelerated filer
<FONT face="Wingdings">&#111;</FONT>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" valign="top">Accelerated filer
<FONT face="Wingdings">&#254;</FONT>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD nowrap align="center">Non-accelerated filer &nbsp; <FONT face="Wingdings">&#111;</FONT><BR>
(Do not check if a smaller reporting company)</TD>
    <TD align="center">&nbsp;</TD>
    <TD nowrap align="center" valign="top">Smaller Reporting Company <FONT face="Wingdings">&#111;</FONT>&nbsp;</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant is a shell company (as defined in Rule&nbsp;12b-2 of the
Exchange Act). Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of August&nbsp;8, 2008, the Registrant had 7,794,546 shares of common stock, $0.0001 par value,
outstanding.
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Form&nbsp;10-Q</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Index</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 0px solid #000000"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Part I: Financial Information</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Item&nbsp;1. Interim Consolidated Financial Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#101">Consolidated Balance Sheets as of June&nbsp;30, 2008 (Unaudited) and December&nbsp;31, 2007</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">1-2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#102">Consolidated Statements of Income (Unaudited) for the three months ended June&nbsp;30,
2008 and 2007</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#103">Consolidated Statements of Income (Unaudited) for the six months ended June&nbsp;30, 2008
and 2007</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#104">Consolidated Statements of Stockholders&#146; Equity (Unaudited) for the six months ended
June&nbsp;30, 2008</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#105">Consolidated Statements of Cash Flows (Unaudited) for the six months ended June&nbsp;30,
2008 and 2007</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">6-7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#106">Notes to Consolidated Financial Statements (Unaudited)</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">8-11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107">Item&nbsp;2. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">12-19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108">Item&nbsp;3. Quantitative and Qualitative Disclosures About Market Risk</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">Item&nbsp;4. Controls and Procedures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">20-21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110"><B>Part II: Other Information</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">Item&nbsp;1. Legal Proceedings</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#112">Item&nbsp;1A. Risk Factors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113">Item&nbsp;2. Unregistered Sales of Equity Securities and Use of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114">Item&nbsp;3. Defaults Upon Senior Securities</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115">Item&nbsp;4. Submission of Matters to a Vote of Security Holders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#116">Item&nbsp;5 Other Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#117">Item&nbsp;6. Exhibits</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Signatures</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k34657exv4w1.htm">EX-4.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k34657exv4w2.htm">EX-4.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k34657exv4w3.htm">EX-4.3</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k34657exv31w1.htm">EX-31.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k34657exv31w2.htm">EX-31.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k34657exv32w1.htm">EX-32.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="k34657exv32w2.htm">EX-32.2</A></FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>

<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Consolidated Balance Sheets</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">December 31,</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2007</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Real Estate Investments</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>87,234,289</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">87,233,715</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Buildings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>206,895,228</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">197,033,867</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Property under development</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6,576,182</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,806,114</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>300,705,699</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">289,073,696</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Less accumulated depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(55,824,194</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(53,250,564</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size:10pt">
<TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net Real Estate Investments</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>244,881,505</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">235,823,132</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash and Cash Equivalents</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>180,737</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">544,639</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Accounts Receivable &#151; Tenants, </B>net of allowance of $20,000
for possible losses at June&nbsp;30, 2008 and December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>657,152</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">770,365</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Unamortized Deferred Expenses</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Financing costs, net of accumulated amortization of $4,743,144
and $4,665,144 at June&nbsp;30, 2008 and December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>785,738</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">837,033</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Leasing costs, net of accumulated amortization of $746,679
and $716,679 at June&nbsp;30, 2008 and December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>506,953</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">424,002</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other Assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>888,299</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">948,335</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>247,900,384</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">239,347,506</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>See accompanying notes to consolidated financial statements.</I>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Consolidated Balance Sheets</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">December 31,</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2007</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Liabilities and Stockholders&#146; Equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Mortgages Payable</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>44,407,947</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">45,760,168</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Notes Payable</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>47,750,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,800,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Dividends and Distributions Payable</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,234,891</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,211,827</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Deferred Revenue</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>11,069,628</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,414,404</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Accrued Interest Payable</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>487,532</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">329,171</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Accounts Payable</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>710,919</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,069,734</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Operating</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>864,601</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,483,127</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Deferred Income Taxes</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>705,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">705,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Tenant Deposits</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>70,076</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64,085</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total Liabilities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>110,300,594</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101,837,516</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Minority Interest</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,857,037</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,896,180</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Stockholders&#146; Equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, $0.0001 par value; 20,000,000 shares authorized,
7,798,096 and 7,754,246 shares issued and outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>780</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>142,841,659</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,260,659</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deficit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(11,099,686</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(10,647,624</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total Stockholders&#146; Equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>131,742,753</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131,613,810</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>247,900,384</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">239,347,506</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>See accompanying notes to consolidated financial statements.</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>

<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Consolidated
Statements of Income (Unaudited)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Three Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">June 30, 2007</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Minimum rents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>8,133,119</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,642,554</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Percentage rents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,347</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Operating cost reimbursements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>654,325</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">726,107</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,657</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,518</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total Revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8,789,101</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,377,526</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating Expenses</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Real estate taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>450,864</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">467,147</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Property operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>359,268</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">436,162</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Land lease payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>171,050</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168,550</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">General and administrative</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,130,155</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">975,399</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,347,452</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,262,463</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total Operating Expenses</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,458,789</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,309,721</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Income From Operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,330,312</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,067,805</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other (Expense)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest expense, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,238,977</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,151,331</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size:10pt">
<TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Income Before Minority Interest</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,091,335</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,916,474</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Minority Interest</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(324,877</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(313,322</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net Income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>3,766,458</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,603,152</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Earnings Per Share &#151; Basic</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>0.49</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Earnings Per Share &#151; Dilutive</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>0.49</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Dividend Declared Per Share</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>0.50</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Weighted Average Number of
Common Shares Outstanding &#151; Basic</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,676,258</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,643,026</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Weighted Average Number of
Common Shares Outstanding &#151; Dilutive</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,683,039</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,691,475</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>See accompanying notes to consolidated financial statements.</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>

<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Consolidated Statements of Income (Unaudited)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Six Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">June 30, 2007</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Minimum rents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>16,111,767</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,329,914</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Percentage rents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>4,758</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,026</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Operating cost reimbursements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,437,082</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,482,457</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3,249</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,621</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total Revenues</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>17,556,856</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,841,018</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Operating Expenses</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Real estate taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>916,177</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">924,508</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Property operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>953,646</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">946,609</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Land lease payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>339,600</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">338,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">General and administrative</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,225,850</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,971,662</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,642,718</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,496,649</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total Operating Expenses</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,077,991</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,678,028</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Income From Operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>10,478,865</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,162,990</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Other (Expense)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest expense, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(2,499,053</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,327,970</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size:10pt">
<TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Income Before Minority Interest</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,979,812</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,835,020</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Minority Interest</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(634,402</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(626,809</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net Income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>7,345,410</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,208,211</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Earnings Per Share &#151; Basic</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>0.96</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.94</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Earnings Per Share &#151; Dilutive</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>0.96</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.94</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Dividend Declared Per Share</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>1.00</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.98</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Weighted Average Number of
Common Shares Outstanding &#151; Basic</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,672,500</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,643,026</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Weighted Average Number of
Common Shares Outstanding &#151; Dilutive</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,682,947</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,692,133</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>See accompanying notes to consolidated financial statements.</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>

<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Consolidated Statements of Stockholders&#146; Equity (Unaudited)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Additional</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Paid-In</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"  colspan="3"><B>Amount</B>&nbsp;&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Capital</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Deficit</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Balance, </B>January&nbsp;1, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,754,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">775</TD>

    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">142,260,659</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(10,647,624</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Issuance of shares under the Equity
Incentive Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vesting of restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">581,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividends declared for the period
January&nbsp;1, 2008 to June&nbsp;30, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7,797,472</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income for the period
January&nbsp;1, 2008 to June&nbsp;30, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,345,410</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Balance, </B>June&nbsp;30, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,798,096</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">780</TD>

    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">142,841,659</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(11,099,686</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>See accompanying notes to consolidated financial statements.</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>

<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Consolidated
Statements of Cash Flows (Unaudited)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Six Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">June 30, 2007</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash Flows From Operating Activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>7,345,410</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,208,211</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjustments to reconcile net income to net cash
provided by operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,609,942</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,468,181</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>110,776</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,468</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Stock-based compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>581,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">489,460</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Minority interests</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>634,402</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">626,809</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Decrease in accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>113,213</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">328,494</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Increase (decrease)&nbsp;in other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>20,948</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(112,311</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Decrease in accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(618,526</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(575,795</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Decrease in deferred revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(344,776</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(344,774</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Increase in accrued interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>158,361</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,883</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Increase in tenant deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,991</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net Cash Provided By Operating Activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>10,616,741</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,261,626</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash Flows From Investing Activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Acquisition of real estate investments (including
capitalized interest of $286,000 in 2008 and
$265,000 in 2007)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(10,921,084</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,026,384</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size:10pt">
<TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net Cash Used In Investing Activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(10,921,084</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,026,384</TD>
    <TD nowrap>)</TD>
</TR>

<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash Flows From Financing Activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Payments of mortgages payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,352,221</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,213,491</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dividends and limited partners&#146; distributions paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(8,447,948</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,243,969</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Line-of-credit net borrowings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>10,950,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,700,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Repayments of capital expenditure payables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(1,069,734</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(766,378</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Payments of financing costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(26,705</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Payments of leasing costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(112,951</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,500</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net Cash Used In Financing Activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(59,559</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,537,338</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net Decrease In Cash and Cash Equivalents</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><B>(363,902</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(302,096</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash and Cash Equivalents, </B>beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>544,639</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">463,730</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Cash and Cash Equivalents, </B>end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>180,737</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">161,634</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Consolidated
Statements of Cash Flows (Unaudited)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Six Months Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>June 30, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">June 30, 2007</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Supplemental Disclosure of Cash Flow Information</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash paid for interest (net of amounts capitalized)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>2,263,133</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,183,742</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Supplemental Disclosure of Non-Cash Transactions</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dividends and limited partners&#146; distributions declared and unpaid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>4,234,891</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,123,402</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Real estate investments financed with accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>710,919</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,230,060</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>See accompanying notes to consolidated financial statements.</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>

<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px"><B>1. Basis of
Presentation</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The accompanying unaudited consolidated financial
statements for the six and three months ended June
30, 2008 and 2007 have been prepared in accordance
with generally accepted accounting principles for
interim financial information and with the
instructions to Form&nbsp;10-Q and Article&nbsp;10 of
Regulation&nbsp;S-X. Accordingly, they do not include
all of the information and footnotes required by
generally accepted accounting principles for
audited financial statements. In the opinion of
management, all adjustments (consisting of normal
recurring accruals) considered necessary for a
fair presentation have been included. The
consolidated balance sheet at December&nbsp;31, 2007
has been derived from the audited consolidated
financial statements at that date. Operating
results for the three months and six months ended
June&nbsp;30, 2008 are not necessarily indicative of
the results that may be expected for the year
ending December&nbsp;31, 2008 or for any other interim
period. For further information, refer to the
audited consolidated financial statements and
footnotes thereto included in the Company&#146;s Annual
Report on Form&nbsp;10-K for the year ended
December&nbsp;31, 2007.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:15px; text-indent:-15px"><B>2. Stock Based
Compensation</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">On January&nbsp;1, 2006, Agree Realty Corporation (the
&#147;Company&#148;) adopted the provisions of Statement of
Financial Accounting Standards (&#147;SFAS&#148;) No.&nbsp;123
(R), &#147;<I>Share-Based Payments</I>&#148; (&#147;SFAS 123R&#148;), under
the modified prospective method. Under the
modified prospective method, compensation cost is
recognized for all awards granted after the
adoption of this standard and for the unvested
portion of previously granted awards that are
outstanding as of the adoption date. In
accordance with SFAS 123R, the Company
estimates the fair value of restricted stock and
stock option grants at the date of grant and
amortizes those amounts into expense on a straight
line basis or amount vested, if greater, over the
appropriate vesting period.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">As of June&nbsp;30, 2008, there was $3,119,769 of total
unrecognized compensation costs related to the
outstanding restricted shares, which is expected
to be recognized over a weighted average period of
3.40&nbsp;years. The Company used a 0% discount factor
and forfeiture rate for determining the fair value
of restricted stock. The forfeiture rate was
based on historical results and trends and the
Company does not consider discount rates to be
material.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The holder of a restricted share award is
generally entitled at all times on and after the
date of issuance of the restricted shares to
exercise the rights of a shareholder of the
Company, including the right to vote the shares
and the right to receive dividends on the shares.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Grant Date</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Fair Value</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unvested restricted shares at December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24.89</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restricted shares granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,850</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restricted shares vested</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18,750</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restricted shares forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unvested restricted shares at June&nbsp;30, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30.79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>





<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px"><B>3. Earnings Per
Share</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Earnings per share has been computed by dividing the
net income by the weighted average number of common
shares outstanding. The per share amounts reflected in
the consolidated statements of income are presented in
accordance with SFAS No.&nbsp;128 &#147;<I>Earnings per Share</I>.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The following is a reconciliation of the denominator of
the basic net earnings per common share computation to
the denominator of the diluted net earnings per common
share computation for each of the periods presented:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>Three Months Ended June 30,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of common shares outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,797,808</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,750,496</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unvested restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(121,550</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(107,470</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of common shares
outstanding used in basic earnings per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,676,258</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,643,026</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of common shares
outstanding used in basic earnings per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,676,258</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,643,026</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect of dilutive securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>6,781</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,449</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of common shares
outstanding used in diluted earnings per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,683,039</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,691,475</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


<TR style="font-size:10pt">
<TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>Six Months Ended June 30,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="0" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of common shares outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,794,050</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,750,496</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unvested restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>(121,550</B></TD>
    <TD nowrap><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(107,470</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of common shares
outstanding used in basic earnings per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,672,500</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,643,026</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of common shares
outstanding used in basic earnings per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,672,500</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,643,026</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect of dilutive securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restricted stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>10,447</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,107</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average number of common shares
outstanding used in diluted earnings per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7,682,947</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,692,133</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px"><B>4. Recent Accounting Pronouncements</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In September&nbsp;2006, the FASB issued
Statement No.&nbsp;157. &#147;<I>Fair Value
Measurements&#148; </I>(&#147;SFAS No.&nbsp;157&#148;).
This Statement defines fair value,
establishes a framework for
measuring fair value in generally
accepted accounting principles and
expands disclosures about fair value
measurements. This Statement
applies to accounting pronouncements
that require or permit fair value
measurements, except for share-based
compensation transactions under FASB
Statement No.&nbsp;123 (Revised) &#147;Share
Based Payment.&#148; This Statement was
effective for financial statements
issued for fiscal years beginning
after November&nbsp;15, 2007, except for
non-financial assets and liabilities
for which this Statement will be
effective for years beginning after
November&nbsp;15, 2008. The Company is
evaluating the effect of
implementing the Statement relating
to such non-financial assets and
liabilities, although the Statement
does not require any new fair value
measurements or remeasurements of
previously reported fair values.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In December&nbsp;2007, the FASB issued
SFAS No.&nbsp;160, &#147;<I>Noncontrolling
Interests in Consolidated Financial
Statements</I>&#148; (&#147;SFAS No.&nbsp;160&#148;), an
amendment to Accounting Research
Board No.&nbsp;51. SFAS No.&nbsp;160&#146;s
objective is to improve the
relevance, comparability</TD>
</TR>
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</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">and
transparency of financial
information that a reporting entity
provides in its consolidated
financial statements. The key
aspects of SFAS No.&nbsp;160 are (i)&nbsp;the
minority interests in subsidiaries
should be presented in the
consolidated balance sheet within
equity of the consolidated group,
separate from the parent&#146;s
shareholders&#146; equity,
(ii)&nbsp;acquisitions or dispositions of
noncontrolling interests in a
subsidiary that do not result in a
change of control should be
accounted for as
equity
transactions, (iii)&nbsp;a parent
recognizes a gain or loss in net
income when a subsidiary is
deconsolidated, measured using the
fair value of the non-controlling
equity investment, (iv)&nbsp;the acquirer
should attribute net income and each
component of other comprehensive
income between controlling and
noncontrolling interests based on
any contractual arrangements or
relative ownership interests, and
(v)&nbsp;a reconciliation of beginning to
ending total equity is required for
both controlling and noncontrolling
interests. SFAS No.&nbsp;160 is effective
for fiscal years beginning on or
after December&nbsp;15, 2008 and should
be applied prospectively. We are
currently evaluating the provisions
for SFAS No.&nbsp;160 to determine the
potential impact, if any, the
adoption will have on our financial
position and results of operations.
In March&nbsp;2008, the SEC announced
revisions to Topic No.&nbsp;D-98
&#147;Classification and Measurement of
Redeemable Securities&#148; that provide
interpretive guidance on the
interaction on the interaction
between Topic D-98 and Statement <BR>
No.
160..</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In December&nbsp;2007, the FASB issued
SFAS No.&nbsp;141(R), &#147;<I>Business
Combinations&#148; (&#147;SFAS No.&nbsp;141&#148;).</I>
SFAS No.&nbsp;141(R) will significantly
change the accounting for business
combinations. Under SFAS
No.&nbsp;141(R), an acquiring entity will
be required to recognize all the
assets acquired and liabilities
assumed in a transaction at the
acquisition-date fair value with
limited exceptions. SFAS
No.&nbsp;141(R) will change the
accounting treatment for certain
specific acquisition related items
including: (1)&nbsp;expensing acquisition
related costs as incurred;
(2)&nbsp;valuing noncontrolling interests
at fair value at the acquisition
date; and (3)&nbsp;expensing
restructuring costs associated with
an acquired business. SFAS
No.&nbsp;141(R) also includes a
substantial number of new disclosure
requirements. SFAS No.&nbsp;141(R) is to
be applied prospectively to business
combinations for which the
acquisition date is on or after
January&nbsp;1, 2009. We expect SFAS
No.&nbsp;141(R) will have an impact on
our accounting for future business
combinations once adopted, but we
are still currently assessing the
impact it will have on our
consolidated results of operations
and financial position.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In March&nbsp;2008, the FASB issued SFAS
No.&nbsp;161, &#147;<I>Disclosures about
Derivative Instruments and Hedging
Activities&#148; (&#147;SFAS No.&nbsp;161&#148;).</I> SFAS
No.&nbsp;161 requires enhanced
disclosures about an entity&#146;s
derivative and hedging
activities. It clarifies (a)&nbsp;how and
why an entity uses derivative
instruments, (b)&nbsp;how derivative
instruments and related hedged items
are accounted for under SFAS No.133
and its related interpretations, and
(c)&nbsp;how derivative instruments and
related hedged items affect an
entity&#146;s financial position,
financial performance, and cash
flows. SFAS No.&nbsp;161 is effective
for fiscal years beginning
after November&nbsp;15, 2008. The
Company is currently evaluating the
application of SFAS No.&nbsp;161 and
anticipates the SFAS No.&nbsp;161 will
not have an effect on its results of
operations or financial position as
SFAS N. 161 only provides for new
disclosure requirements.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In December&nbsp;2007, the FASB ratified
EITF Issue No.&nbsp;07-06, &#147;<I>Accounting
for the Sale of Real Estate Subject
to the Requirements of FASB
Statement No.&nbsp;66 When the Agreement
Includes </I>a <I>Buy-Sell Clause&#148;</I>
(&#147;EITF 07-06&#148;). EITF 07-06 requires
companies to determine whether the
terms of the buy-sell clause
indicate that the seller has
transferred the usual risks and
rewards of ownership and does not
have substantial continuing
involvement pursuant to SFAS 66. It
clarifies that a buy-sell clause, in
and of itself, does not constitute a
prohibited form of continuing
involvement that would preclude
partial sales treatment under SFAS
66, but should be evaluated in
consideration of all the relevant
facts and circumstances. EITF 07-06
is effective for fiscal years
beginning after December&nbsp;15, 2007.
We do not expect EITF 07-06 to have
a material impact on our financial
position and results of operations.</TD>
</TR>
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</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In May&nbsp;2008, the FASB issued
Statement No.&nbsp;162 <I>&#147;The Hierarchy of
Generally Accepted Accounting
Principles.&#148;</I> The current hierarchy
of generally accepted accounting
principles is set forth in the
American Institute of Certified
Accountants (AICPA)&nbsp;Statement of
Auditing Standards (SAS)&nbsp;No.&nbsp;69,
&#147;<I>The meaning of Present Fairly in
Conformity With Generally Accepted
Accounting Principles</I>. Statement
No.&nbsp;162 is intended to improve
financial reporting by identifying a
consistent framework or hierarchy
for selecting accounting principles
to be used in preparing financial
statements that are presented in
conformity with U.S. generally
accepted accounting principles for
nongovernmental entities. This
Statement is effective 60&nbsp;days
following the SEC&#146;s approval of the
Public Company Oversight Board
Auditing amendments to SAS 69. The
Company is currently evaluating the
application of this Statement but
does not anticipate that the
Statement will have a material
effect on the Company&#146;s results of
operations or financial position, as
the Statement does not directly
impact the accounting principles
applied in the preparation of the
Company&#146;s financial statements.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In June&nbsp;2008, the FASB ratified FASB
Staff Position No.&nbsp;EITF 03-6-01
&#147;<I>Determining Whether Instruments
Granted in Share-Based Payment
Transactions Are Participating
Securities&#148; (&#147;FSP EITF 03-6-01&#148;).</I>
FSP EITF 03-6-01 addresses whether
instruments granted in share-based
payment transactions are
participating securities prior to
vesting and, therefore, need to be
included in the earnings allocation
in computing earnings per share
(&#147;EPS&#148;) under the two-class method
of SFAS 128. It clarifies that
unvested share-based payment awards
that contain nonforfeitable right to
dividends or dividend equivalents
(whether paid or unpaid) are
participating securities and shall
be included in the computation of
EPS pursuant to the two-class
method. FSP EITF 03-6-01 is
effective for fiscal years beginning
after December&nbsp;15, 2008. We do not
expect FSP EITF 06-6-01 to have a
material impact on our computation
of EPS.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>5. Subsequent Event</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In July&nbsp;2008, the Company obtained a secured term
loan in the amount of $24.8&nbsp;million. The loan is
collateralized by a first real estate mortgage and
assignment of rents and leases on seven retail
properties, bears interest at 150 basis points over
LIBOR, has a term of five years and can be extended
at our option for an additional two-year period. The
loan requires monthly payments of interest and
principal based on a 25&nbsp;year amortization.</TD>
</TR>
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</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>

<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 2. MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Forward-Looking Statements</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Management has included herein certain forward-looking statements within the meaning of
Section&nbsp;27A of the Securities Act of 1933, as amended, and Section&nbsp;21E of the Securities and
Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;). These forward-looking statements represent
our expectations, plans and beliefs concerning future events and may be identified by terminology
such as &#147;anticipate,&#148; &#147;estimate,&#148; &#147;should,&#148; &#147;expect,&#148; &#147;believe,&#148; &#147;intend&#148; and similar
expressions. Although the forward-looking statements made in this report are based on good faith
beliefs, reasonable assumptions and our best judgment reflecting current information, certain
factors could cause actual results to differ materially from such forward-looking statements,
including but not limited to; the effect of economic and market conditions; risks that our
acquisition and development projects will fail to perform as expected; financing risks, such as
the inability to obtain debt or equity financing on favorable terms; the level and volatility of
interest rates; loss or bankruptcy of one or more of our major retail tenants; a failure of our
properties to generate additional income to offset increases in operating expenses; and other
factors discussed elsewhere in this report and our other reports furnished or filed with the
Securities and Exchange Commission, including our annual report on Form 10-K for the fiscal year
ended December&nbsp;31, 2007. Given these uncertainties, you should not place undue reliance on our
forward-looking statements. Except as required by law, we assume no obligation to update these
forward-looking statements, even if new information becomes available in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Overview</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Agree Realty Corporation is a fully-integrated, self-administered and self-managed real estate
investment trust (&#147;REIT&#148;) focused primarily on the ownership, development, acquisition and
management of retail properties net leased to national tenants. In this report, the terms
&#147;Company,&#148; &#147;we,&#148; &#147;ours&#148; and &#147;us&#148; and similar terms refer to Agree Realty Corporation and its
subsidiaries as the context may require. We were formed in December&nbsp;1993 to continue and expand
the business founded in 1971 by our current President and Chairman, Richard Agree. We specialize
in developing retail properties for national tenants who have executed long-term net leases prior
to the commencement of construction. As of June&nbsp;30, 2008, approximately 88% of our annualized
base rent was derived from national tenants. All of our freestanding property tenants and the
majority of our community shopping center tenants have triple-net leases, which require the
tenant to be responsible for property operating expenses, including property taxes, insurance and
maintenance. We believe this strategy provides a generally consistent source of income and cash
for distributions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of June&nbsp;30, 2008, our portfolio consisted of 67 properties, located in 16 states containing an
aggregate of approximately 3.4&nbsp;million square feet of gross leasable area (&#147;GLA&#148;). As of June
30, 2008, our portfolio included 55 freestanding net leased properties and 12 community shopping
centers that were 99.3% leased in aggregate. As of June&nbsp;30, 2008, approximately 67% of our
annualized base rent was derived from our top three tenants: Borders Group, Inc.  &#151; 30%;
Walgreen Co. (&#147;Walgreens&#148;) &#151; 25% and Kmart Corporation  &#151; 12%. During the period July&nbsp;1, 2008 to
December&nbsp;31, 2010 we have 45 leases that are scheduled to expire assuming that none of the
tenants exercise renewal options or terminate their leases prior to the contractual expiration
date. These leases represent 508,783 square feet of gross leasable area and $2,896,203 of
annualized base rent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We expect to continue to grow our asset base primarily through the development of retail
properties that are pre-leased on a long-term basis to national tenants. We focus on development
because we believe, based on the historical returns we have been able to achieve, it generally
provides us a higher return on investment than the acquisition of similarly located properties
and does not entail the risks associated with speculative development. Since our initial public
offering in 1994, we have developed 54 of our 67 properties, including 42 of our 55 freestanding
properties and all 12 of our community shopping centers. As of June&nbsp;30, 2008, the properties
that we developed accounted for 83.7% of our annualized base rent. We expect to continue to
expand our tenant relationships and diversify our tenant base to include other quality national
tenants.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our assets are held by, and all operations are conducted through, Agree Limited Partnership (the
&#147;Operating Partnership&#148;), of which Agree Realty Corporation is the sole general partner and held
a 92.05% and 92.01% interest as
of June&nbsp;30, 2008 and December&nbsp;31, 2007, respectively. We are operating so as to qualify as a REIT
for federal income tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following should be read in conjunction with the Consolidated Financial Statements of Agree
Realty Corporation, including the respective notes thereto, which are included in this Form 10-Q.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Recent Accounting Pronouncements</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In September&nbsp;2006, the FASB issued Statement No.&nbsp;157. &#147;<I>Fair Value Measurements&#148; </I>(&#147;SFAS No.&nbsp;157&#148;).
This Statement defines fair value, establishes a framework for measuring fair value in generally
accepted accounting principles and expands disclosures about fair value measurements. This
Statement applies to accounting pronouncements that require or permit fair value measurements,
except for share-based compensation transactions under FASB Statement No.&nbsp;123 (Revised) &#147;Share
Based Payment.&#148; This Statement was effective for financial statements issued for fiscal years
beginning after November&nbsp;15, 2007, except for non-financial assets and liabilities for which this
Statement will be effective for years beginning after November&nbsp;15, 2008. The Company is
evaluating the effect of implementing the Statement relating to such non-financial assets and
liabilities, although the Statement does not require any new fair value measurements or
remeasurements of previously reported fair values.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2007, the FASB issued SFAS No.&nbsp;160, &#147;<I>Noncontrolling Interests in Consolidated
Financial Statements</I>&#148; (&#147;SFAS No.&nbsp;160&#148;), an amendment to Accounting Research Board No.&nbsp;51. SFAS
No.&nbsp;160&#146;s objective is to improve the relevance, comparability and transparency of financial
information that a reporting entity provides in its consolidated financial statements. The key
aspects of SFAS No.&nbsp;160 are (i)&nbsp;the minority interests in subsidiaries should be presented in the
consolidated balance sheet within equity of the consolidated group, separate from the parent&#146;s
shareholders&#146; equity, (ii)&nbsp;acquisitions or dispositions of noncontrolling interests in a
subsidiary that do not result in a change of control should be accounted for as equity
transactions, (iii)&nbsp;a parent recognizes a gain or loss in net income when a subsidiary is
deconsolidated, measured using the fair value of the non-controlling equity investment, (iv)&nbsp;the
acquirer should attribute net income and each component of other comprehensive income between
controlling and noncontrolling interests based on any contractual arrangements or relative
ownership interests, and (v)&nbsp;a reconciliation of beginning to ending total equity is required for
both controlling and noncontrolling interests. SFAS No.&nbsp;160 is effective for fiscal years
beginning on or after December&nbsp;15, 2008 and should be applied prospectively. The Company is
currently evaluating the provisions for SFAS No.&nbsp;160 to determine the potential impact, if any,
the adoption will have on our financial position and results of operations. In March&nbsp;2008, the
SEC announced revisions to Topic No.&nbsp;D-98 &#147;Classification and Measurement of Redeemable
Securities&#148; that provide interpretive guidance on the interaction on the interaction between
Topic D-98 and Statement No.&nbsp;160..
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2007, the FASB issued SFAS No.&nbsp;141(R), &#147;<I>Business Combinations&#148; (&#147;SFAS No.&nbsp;141&#148;).</I>
SFAS No.&nbsp;141(R) will significantly change the accounting for business combinations. Under SFAS
No.&nbsp;141(R), an acquiring entity will be required to recognize all the assets acquired and
liabilities assumed in a transaction at the acquisition-date fair value with limited exceptions.
SFAS No.&nbsp;141(R) will change the accounting treatment for certain specific acquisition related
items including: (1)&nbsp;expensing acquisition related costs as incurred; (2)&nbsp;valuing noncontrolling
interests at fair value at the acquisition date; and (3)&nbsp;expensing restructuring costs associated
with an acquired business. SFAS No.&nbsp;141(R) also includes a substantial number of new disclosure
requirements. SFAS No.&nbsp;141(R) is to be applied prospectively to business combinations for which
the acquisition date is on or after January&nbsp;1, 2009. We expect SFAS No.&nbsp;141(R) will have an
impact on our accounting for future business combinations once adopted, but we are still
currently assessing the impact it will have on our consolidated results of operations and
financial position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In March&nbsp;2008, the FASB issued SFAS No.&nbsp;161, &#147;<I>Disclosures about Derivative Instruments and
Hedging Activities&#148; (&#147;SFAS No.&nbsp;161&#148;). </I>SFAS No.&nbsp;161 requires enhanced disclosures about an
entity&#146;s derivative and hedging
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">activities. It clarifies (a)&nbsp;how and why an entity uses
derivative instruments, (b)&nbsp;how derivative instruments and related hedged items are accounted for
under SFAS No.133 and its related interpretations, and (c)&nbsp;how derivative instruments and related
hedged items affect an entity&#146;s financial position, financial performance, and cash flows. SFAS
No.&nbsp;161 is effective for fiscal years beginning after November&nbsp;15, 2008. The Company is
currently evaluating the application of SFAS No.&nbsp;161 and anticipates the SFAS No.&nbsp;161 will not
have an effect on its results of operations or financial position as SFAS N. 161 only provides
for new disclosure requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In December&nbsp;2007, the FASB ratified EITF Issue No.&nbsp;07-06, &#147;<I>Accounting for the Sale of Real Estate
Subject to the Requirements of FASB Statement No.&nbsp;66 When the Agreement Includes </I>a <I>Buy-Sell
Clause&#148; </I>(&#147;EITF 07-06&#148;). EITF 07-06 requires companies to determine whether the terms of the
buy-sell clause indicate that the seller has transferred the usual risks and rewards of ownership
and does not have substantial continuing involvement pursuant to SFAS 66. It clarifies that a
buy-sell clause, in and of itself, does not constitute a prohibited form of continuing
involvement that would preclude partial sales treatment under SFAS 66, but should be evaluated in
consideration of all the relevant facts and circumstances. EITF 07-06 is effective for fiscal
years beginning after December&nbsp;15, 2007. The Company does not expect EITF 07-06 to have a
material impact on our financial position and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In May&nbsp;2008, the FASB issued Statement No.&nbsp;162 <I>&#147;The Hierarchy of Generally Accepted Accounting
Principles.&#148; </I>The current hierarchy of generally accepted accounting principles is set forth in
the American Institute of Certified Accountants (AICPA)&nbsp;Statement of Auditing Standards (SAS)&nbsp;No.
69, &#147;<I>The meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles</I>.
Statement No.&nbsp;162 is intended to improve financial reporting by identifying a consistent
framework or hierarchy for selecting accounting principles to be used in preparing financial
statements that are presented in conformity with U.S. generally accepted accounting principles
for nongovernmental entities. This Statement is effective 60&nbsp;days following the SEC&#146;s approval
of the Public Company Oversight Board Auditing amendments to SAS 69. The Company is currently
evaluating the application of this Statement but does not anticipate that the Statement will have
a material effect on the Company&#146;s results of operations or financial position, as the Statement
does not directly impact the accounting principles applied in the preparation of the Company&#146;s
financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In June&nbsp;2008, the FASB ratified FASB Staff Position No.&nbsp;EITF 03-6-01 &#147;<I>Determining Whether
Instruments Granted in Share-Based Payment Transactions Are Participating Securities&#148; (&#147;FSP EITF
03-6-01&#148;). </I>FSP EITF 03-6-01 addresses whether instruments granted in share-based payment
transactions are participating securities prior to vesting and, therefore, need to be included in
the earnings allocation in computing earnings per share (&#147;EPS&#148;) under the two-class method of
SFAS 128. It clarifies that unvested share-based payment awards that contain nonforfeitable
right to dividends or dividend equivalents (whether paid or unpaid) are participating securities
and shall be included in the computation of EPS pursuant to the two-class method. FSP EITF
03-6-01 is effective for fiscal years beginning after December&nbsp;15, 2008. The Company does not
expect FSP EITF 06-6-01 to have a material impact on our computation of EPS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Critical Accounting Policies</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Critical accounting policies are those that are both significant to the overall presentation of
our financial condition and results of operations and require management to make difficult,
complex or subjective judgments. For example, significant estimates and assumptions have been
made with respect to revenue recognition, capitalization of costs related to real estate
investments, potential impairment of real estate investments, operating cost reimbursements, and
taxable income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Minimum rental income attributable to leases is recorded when due from tenants. Certain leases
provide for additional percentage rents based on tenants&#146; sales volumes. These percentage rents
are recognized when determinable by us. In addition, leases for certain tenants contain rent
escalations and/or free rent during the first several months of the lease term; however such
amounts are not material.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Real estate assets are stated at cost less accumulated depreciation. All costs related to
planning, development and construction of buildings prior to the date they become operational,
including interest and real estate taxes during the construction period, are capitalized for
financial reporting purposes and recorded as property under development until construction has
been completed. Subsequent to the completion of construction, expenditures for property
maintenance are charged to operations as incurred, while significant renovations are capitalized.
Depreciation of the buildings is recorded in accordance with the straight-line method using an
estimated useful life of 40&nbsp;years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We evaluate real estate for impairment when events or changes in circumstances indicate that the
carrying amount of the assets may not be recoverable through estimated undiscounted future cash
flows from the use of these assets. When any such impairment exists, the related assets will be
written down to fair value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Substantially all of our leases contain provisions requiring tenants to pay as additional rent a
proportionate share of operating expenses (&#147;operating cost reimbursements&#148;) such as real estate
taxes, repairs and maintenance, insurance, etc. The related revenue from tenant billings is
recognized in the same period the expense is recorded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;), commencing with our 1994 tax year. As a result, we are not subject to federal income
taxes to the extent that we distribute annually at least 90% of our REIT taxable income to our
stockholders and satisfy certain other requirements defined in the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In October&nbsp;2007, we established a taxable REIT subsidiary pursuant to the provisions of the REIT
Modernization Act. Our TRS is able to engage in activities resulting in income that previously
would have been disqualified from being eligible REIT income under the federal income tax
regulations. As a result, certain activities of the Company which occur within its TRS entity
are subject to federal and state income taxes. As of June&nbsp;30, 2008, the Company had accrued a
deferred income tax amount of $705,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Comparison of Three Months Ended June&nbsp;30, 2008 to Three Months Ended June&nbsp;30, 2007</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Minimum rental income increased $490,000, or 6%, to $8,133,000 in 2008, compared to $7,643,000 in
2007. The increase was the result of the development of a Walgreens drug store in Livonia,
Michigan in June&nbsp;2007, the development of a Walgreens drug store in Barnesville, Georgia in
October&nbsp;2007, the development of a parcel of land located in East Lansing, Michigan in November
2007, the development of a parcel of land located in Plainfield, Indiana, in November&nbsp;2007, the
development of a Walgreens drug store and a bank land lease in Macomb Township, Michigan in March
2008 and the development of a Walgreen drug store in Ypsilanti, Michigan in May&nbsp;2008. Our
revenue increase from these developments amounted to $508,000. In addition, rental income from
our Big Rapids, Michigan shopping center decreased by $34,000 as a result of redevelopment
activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Percentage rents decreased $2,000, to $-0- in 2008, compared to $2,000 in 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Operating cost reimbursements decreased $72,000, or 10<I>%, </I>to $654,000 in 2008, compared to
$726,000 in 2007. Operating cost reimbursements decreased due to the decrease in property
operating expenses as explained below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Other income decreased $5,000, to $2,000 in 2008, compared to $7,000 in 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Real estate taxes decreased $16,000, or 3%, to $451,000 in 2008, compared to $467,000 in 2007.
The decrease was the result of general assessment adjustments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Property operating expenses (shopping center maintenance, snow removal, insurance and utilities)
decreased $77,000, or 18%, to $359,000 in 2008 compared to $436,000 in 2007. The net decrease was
the result of: a decrease in shopping center maintenance costs of ($59,000); an decrease in snow
removal costs of ($21,000); an increase in utility costs of $5,000; and a decrease in insurance
costs of ($2,000) in 2008 versus 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Land lease payments increased $2,000, to $171,000 in 2008, compared to $169,000 for 2007.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">General and administrative expenses increased by $155,000, or 16%<I>, </I>to $1,130,000 in 2008,
compared to $975,000 in 2007. The increase was the result of increased compensation related
expenses as a result of: an increase in salaries and the value of employee stock awards of
$114,000; an increase in legal and auditing costs of $35,000; an increase in other taxes of
$48,000 and a decrease in property related expenses of ($42,000). General and administrative
expenses as a percentage of total rental income (minimum and percentage rents) increased from
12.3% for 2007 to 13.9% for 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Depreciation and amortization increased $85,000, or 7%, to $1,347,000 in 2008, compared to
$1,262,000 in 2007. The increase was the result of the development of four properties in 2007
and three properties in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Interest expense increased $88,000, or 8%, to $1,239,000 in 2008, compared to $1,151,000 in 2007.
The increase in interest expense resulted from increased borrowings to fund the development of
the four properties in 2007 and the development of three properties in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our income before minority interest increased $175,000, or 4%, to $4,091,000 in 2008 from
$3,916,000 in 2007 as a result of the foregoing factors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Comparison of Six Months Ended June&nbsp;30, 2008 to Six Months Ended June&nbsp;30, 2007</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Minimum rental income increased $782,000, or 5%, to $16,112,000 in 2008, compared to $15,330,000
in 2007. The increase was the result of the development of a Walgreens drug store in Livonia,
Michigan in June&nbsp;2007, the development of a Walgreens drug store in Barnesville, Georgia in
October&nbsp;2007, the development of a parcel of land located in East Lansing, Michigan in November
2007, the development of a parcel of land located in Plainfield, Indiana, in November&nbsp;2007, the
development of a Walgreens drug store and a bank land lease in Macomb Township, Michigan in March
2008 and the development of a Walgreens drug store located in Ypsilanti, Michigan. Our revenue
increase from these developments amounted to $893,000. In addition, rental income from our Big
Rapids, Michigan shopping center decreased by $102,000 as a result of redevelopment activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Percentage rents decreased $11,000, to $5,000 in 2008, compared to $16,000 in 2007. The decrease
was primarily the result of decreased tenant sales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Operating cost reimbursements decreased $45,000, or 3<I>%, </I>to $1,437,000 in 2008, compared to
$1,482,000 in 2007. Operating cost reimbursements decreased due to the decrease in property
operating expenses as explained below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Other income decreased $10,000, to $3,000 in 2008, compared to $13,000 in 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Real estate taxes decreased $9,000, or 1%, to $916,000 in 2008, compared to $925,000 in 2007.
The decrease was the result of general assessment adjustments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Property operating expenses increased $7,000, or 1%, to $954,000 in 2008 compared to $947,000 in
2007. The net increase was the result of: a decrease in shopping center maintenance costs of
($42,000); an increase in snow removal costs of $47,000; an increase in utility costs of $7,000;
and a decrease in insurance costs of ($5,000) in 2008 versus 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Land lease payments remained relatively constant at $340,000 for 2008 and $339,000 for 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">General and administrative expenses increased by $254,000, or 13%<I>, </I>to $2,226,000 in 2008,
compared to $1,972,000 in 2007. The increase was the result of increased compensation related
expenses as a result of: an increase in salaries and the value of employee stock awards of
$197,000; an increase in legal and auditing costs of $64,000 and increase in state and local
taxes of $46,000; and a decrease in property related expenses of ($53,000). General and
administrative expenses as a percentage of total rental income (minimum and percentage rents)
increased from 12.9% for 2007 to 13.8% for 2008.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Depreciation and amortization increased $146,000, or 6%, to $2,643,000 in 2008, compared to
$2,497,000 in 2007. The increase was the result of the development of four properties in 2007
and three properties in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Interest expense increased $171,000, or 7%, to $2,499,000 in 2008, compared to $2,328,000 in
2007. The increase in interest expense resulted from increased borrowings to fund the development
of the four properties in 2007 and the development of three properties in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our income before minority interest increased $145,000, or 2%, to $7,980,000 in 2008 from
$7,835,000 in 2007 as a result of the foregoing factors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Liquidity and Capital Resources</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our principal demands for liquidity are operations, distributions to our stockholders, debt
repayment, development of new properties, redevelopment of existing properties and future
property acquisitions. We intend to meet our short-term liquidity requirements, including
capital expenditures related to the leasing and improvement of the properties, through cash flow
provided by operations and the Line of Credit and the Credit Facility. We believe that adequate
cash flow will be available to fund our operations and pay dividends in accordance with REIT
requirements for at least the next 12&nbsp;months. We may obtain additional funds for future
development or acquisitions through other borrowings or the issuance of additional shares of
common stock. We intend to incur additional debt in a manner consistent with our policy of
maintaining a ratio of total debt (including construction and acquisition financing) to total
market capitalization of 65% or less. As of June&nbsp;30, 2008, our ratio of indebtedness to market
capitalization was approximately 49%. We believe that these financing sources will enable us to
generate funds sufficient to meet both our short-term and long-term capital needs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the quarter ended June&nbsp;30, 2008, we declared a quarterly dividend of $0.50 per share. We
paid the dividend on July&nbsp;15, 2008 to holders of record on June&nbsp;30, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of June&nbsp;30, 2008, we had total mortgage indebtedness of $44,407,947 with a weighted average
interest rate of 6.64%. This mortgage debt is all fixed rate debt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition, the Operating Partnership has in place a $55&nbsp;million credit facility (the &#147;Credit
Facility&#148;) with Bank of America, as the agent, which is guaranteed by the Company. The Credit
Facility matures in November&nbsp;2009 and can be extended at our option, subject to specified
conditions, for two additional one-year periods. Advances under the Credit Facility bear
interest within a range of one-month to twelve-month LIBOR plus 100 basis points to 150 basis
points or the lender&#146;s prime rate, at our option, based on certain factors such as the ratio of
our indebtedness to the capital value of our properties. The Credit Facility generally is used
to fund property acquisitions and development activities. As of June&nbsp;30, 2008, $44,000,000 was
outstanding under the Credit Facility bearing a weighted average interest rate of 4.63%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also have in place a $5&nbsp;million line of credit (the &#147;Line of Credit&#148;), which matures in
November&nbsp;2009 and can be extended at our option, subject to specified conditions, for two
additional one-year periods. The Line of Credit bears interest at the lender&#146;s prime rate less
75 basis points or 150 basis points in excess of the one-month to twelve-month LIBOR rate, at our
option. The purpose of the Line of Credit is generally to provide working capital and fund land
options and start-up costs associated with new projects. As of June&nbsp;30, 2008, $3,750,000 was
outstanding under the Line of Credit bearing a weighted average interest rate of 4.25%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In July&nbsp;2008, the Company obtained a secured term loan in the amount of $24.8&nbsp;million. The loan
is collateralized by a first real estate mortgage and assignment of rents and leases on seven
retail properties, bears interest at 150 basis points over LIBOR, has a term of five years and
can be extended at our option for an additional two-year period. The loan requires monthly
payments of interest and principal based on a 25-year amortization. Proceeds from the term loan
were utilized to pay amounts outstanding under our Credit Facility.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table outlines our contractual obligations as of June&nbsp;30, 2008 for the periods
presented below (in thousands).
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>July 1, 2008 &#150;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>July 1, 2009 &#150;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>July 1, 2011 &#150;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 31, 2011</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>June 30, 2013</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Thereafter</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgages Payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,408</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,124</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notes Payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Land Lease Obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,435</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,377</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest
Payments on Mortgages And Notes Payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,055</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,716</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Long-Term Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">125,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">61,513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,217</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At June&nbsp;30, 2008 we had three development projects under construction that will add an additional
29,370 square feet of GLA to our portfolio. The projects are expected to be completed during the
third and fourth quarters of 2008. Additional funding required to complete the projects is
estimated to be $5,654,000, which is not reflected in the table above, and will be funded through
advances under the Credit Facility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We plan to begin construction of additional pre-leased developments and may acquire additional
properties, which will initially be financed by the Credit Facility and Line of Credit. We will
periodically refinance short-term construction and acquisition financing with long-term debt
and/or equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Off-Balance Sheet Arrangements</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We do not engage in any off-balance sheet arrangements with unconsolidated entities or
financial partnerships, such as structured finance or special purpose entities.
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Inflation</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our leases generally contain provisions designed to mitigate the adverse impact of inflation on
net income. These provisions include clauses enabling the us to pass through to tenants certain
operating costs, including real estate taxes, common area maintenance, utilities and insurance,
thereby reducing the our exposure to increases in costs and operating expenses resulting from
inflation. Certain of our leases contain clauses enabling us to receive percentage rents based on
tenants&#146; gross sales, which generally increase as prices rise, and, in certain cases, escalation
clauses, which generally increase rental rates during the terms of the leases. In addition,
expiring tenant leases permit us to seek increased rents upon re-lease at market rates if rents
are below the then existing market rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Funds from Operatio</I></B><B>ns</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Funds from Operations (&#147;FFO&#148;) is defined by the National Association of Real Estate Investment
Trusts, Inc. (&#147;NAREIT&#148;) to mean net income computed in accordance with GAAP, excluding gains (or
losses) from sales of property, plus real estate related depreciation and amortization and after
adjustments for unconsolidated partnerships and joint ventures. Management uses FFO as a
supplemental measure to conduct and evaluate our business because there are certain limitations
associated with using GAAP net income by itself as the primary measure of our operating
performance. Historical cost accounting for real estate assets in accordance with GAAP
implicitly assumes that the value of real estate assets diminishes predictably over time. Since
real estate values instead have historically risen or fallen with market conditions, management
believes that the presentation of operating results for real estate companies that use historical
cost accounting is insufficient by itself.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">FFO should not be considered as an alternative to net income as the primary indicator of our
operating performance or as an alternative to cash flow as a measure of liquidity. Further, while
we adhere to the NAREIT definition of FFO,
our presentation of FFO is not necessarily comparable to similarly titled measures of other REITs
due to the fact that not all REITs use the same definition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table provides a reconciliation of FFO and net income for the three and six months
ended June&nbsp;30, 2008 and 2007:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Three Months Ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2007</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>3,766,458</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,603,152</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Depreciation of real estate assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,313,910</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,235,850</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amortization of leasing costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15,200</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,442</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Minority interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>324,877</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313,322</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Funds from Operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>5,420,445</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,164,766</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Weighted Average Shares and Operating
Partnership Units Outstanding &#151; Dilutive</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8,356,586</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,365,022</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Six Months Ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>June 30,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2007</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>7,345,410</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,208,211</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Depreciation of real estate assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2,576,406</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,443,915</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amortization of leasing costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>30,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,692</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Minority interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>634,402</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">626,809</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Funds from Operations</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>10,586,218</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,303,627</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Weighted Average Shares and Operating
Partnership Units Outstanding &#151;
Dilutive</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8,356,494</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,365,680</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are exposed to interest rate risk primarily through borrowing activities. There is inherent
roll-over risk for borrowings as they mature and are renewed at current market rates. The extent
of this risk is not quantifiable or predictable because of the variability of future interest
rates and our future financing requirements.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our interest rate risk is monitored using a variety of techniques. The table below presents the
principal payments (in thousands) and the weighted average interest rates on outstanding debt, by
year of expected maturity, to evaluate the expected cash flows and sensitivity to interest rate
changes.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000"><B>Year Ended June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2010</B></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2011</B></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2012</B></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2013</B></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Thereafter</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fixed rate debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,243</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,464</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">28,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">44,408</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Average interest rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.64</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.64</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.64</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.64</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.64</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.64</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Variable rate debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">47,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">47,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Average interest rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4.60</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The fair value (in thousands) is estimated at $44,934 and $47,750 for fixed rate debt and
variable rate debt, respectively, as of June&nbsp;30, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table above incorporates those exposures that exist as of June&nbsp;30, 2008; it does not consider
those exposures or positions, which could arise after that date. As a result, our ultimate
realized gain or loss with respect to interest rate fluctuations will depend on the exposures
that arise during the period and interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We do not enter into financial instrument transactions for trading or other speculative purposes
or to manage interest rate exposure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As of June&nbsp;30, 2008, a 100 basis point increase in interest rates on the portion of our debt
bearing interest at variable rates would result in an annual increase in interest expense of
approximately $478,000.
</DIV>

<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ITEM 4. CONTROLS AND PROCEDURES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At December&nbsp;31, 2007, management identified the following material weakness in our internal
controls:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We lack segregation of duties in the period-end financial reporting process. Our chief
financial officer is the only employee with any significant knowledge of generally accepted
accounting principles. The chief financial officer is also the sole employee in charge of
the general ledger (including the preparation of routine and non-routine journal entries and
journal entries involving accounting estimates), the preparation of accounting
reconciliations, the selection of accounting principles, and the preparation of interim and
annual financial statements (including report combinations, consolidation entries and
footnote disclosures) in accordance with generally accepted accounting principles.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We, under the supervision of and with the participation of our management, including the Chief
Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of
the design and operation of our disclosure controls and procedures, as defined in Rules&nbsp;13a-15(e)
and 15d-15(e) under the Exchange Act, as of the end of the period covered by this report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Based on this evaluation as of June&nbsp;30, 2008, and due to the material weaknesses in our internal
control over financial reporting as described above, our Chief Executive Officer and Chief
Financial Officer concluded that our disclosure controls and procedures were not effective to
ensure that information required to be disclosed by us in reports that we file or submit under
the Exchange Act is recorded, processed, summarized and reported within the time periods
specified by the SEC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our audit committee has engaged independent third party consultants to perform periodic reviews
of our financial reporting closing process to help mitigate the material weakness in our internal
control over financial reporting. There
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">was no change in our internal control over financial
reporting during the most recently completed fiscal quarter that has materially affected or is
reasonably likely to materially affect our internal control over financial reporting.
</DIV>
<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART II&#151;OTHER INFORMATION</B>
</DIV>

<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ITEM 1. LEGAL PROCEEDINGS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are not presently involved in any litigation nor, to our knowledge, is any other litigation
threatened against us, except for routine litigation arising in the ordinary course of business
which is expected to be covered by our liability insurance.
</DIV>
<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ITEM 1A. RISK FACTORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There were no material changes in our risk factors set forth under Item&nbsp;1A of Part&nbsp;I of our most
recently filed Form 10-K.
</DIV>
<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None
</DIV>
<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ITEM 3. DEFAULTS UPON SENIOR SECURITIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None
</DIV>
<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On May&nbsp;5, 2008, we held our annual meeting of stockholders. The following were the results of
the meeting:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The stockholders elected William S. Rubenfaer as a Director until the annual meeting of
stockholders in 2010 or until a successor is duly elected and qualified. In addition, the
stockholders elected Farris G. Kalil and Gene Silverman as Directors until the annual meeting of
stockholders in 2011 or until a successor is duly elected and qualified. The vote was as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>William S. Rubenfaer</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Farris G. Kalil</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Gene Silverman</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Votes cast for</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,253,626</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,178,902</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,262,995</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Votes withheld</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">861,869</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">936,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">872,499</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Richard Agree, Michael Rotchford and Leon Schurgin continue to hold office after the annual
meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The stockholders ratified the appointment of Virchow Krause &#038; Company, LLP as our
independent registered public accounting firm for 2008.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Votes cast for</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,465,886</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Votes against</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,240</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Votes abstained</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">619,369</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>
<DIV align="left">
<A name="116"></A>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 5. OTHER INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July&nbsp;14, 2008 we obtained a $24.8&nbsp;million secured term loan. The loan is collateralized
by a first real estate mortgage and assignment of rents and leases on seven of our retail
properties. The loan bears interest at 150 basis pointes over LIBOR, has a term of five years
and can be extended at our option for an additional two-year period.
Monthly payments of interest and principal and interest are based on a 25-year amortization.
The proceeds from the term loan were used to pay-down on the Company&#146;s Credit Facility.
</DIV>
<DIV align="left">
<A name="117"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ITEM 6. EXHIBITS</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Articles of Incorporation and Articles of Amendment of the Company (incorporated by
reference to Exhibit&nbsp;3.1 to the Company&#146;s Registration Statement on Form&nbsp;S-11 (Registration
Statement No.&nbsp;33-73858, as amended)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bylaws of the Company (incorporated by reference to Exhibit&nbsp;3.2 to the Company&#146;s Annual
Report on Form&nbsp;10-K for the year ended December&nbsp;31, 2006)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan Agreement dated as of July&nbsp;14, 2008 by and between Agree Limited Partnership, as
Borrower, and The Financial Institutions party thereto, as Co-Lenders, and LaSalle Bank
Midwest National Association, as Agent</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commercial Mortgage dated as of July&nbsp;14, 2008 executed by Agree Limited Partnership to
and for the benefit of LaSalle Bank Midwest National Association and Raymond James Bank, FSB</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Continuing Unconditional Guaranty dated as of July&nbsp;14, 2008 by Agree Realty Corporation
for the benefit of La Salle Bank Midwest National Association</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*31.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002, Richard Agree,
President and Chief Executive Officer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*31.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002, Kenneth R.
Howe, Vice President and Chief Financial Officer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*32.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, Richard Agree,
President and Chief Executive Officer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*32.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002, Kenneth R.
Howe, Vice President and Chief Financial Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Filed herewith</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Agree Realty Corporation</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ RICHARD AGREE
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Richard Agree
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">President and Chief Executive Officer<BR>
(Principal Executive Officer)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ KENNETH R. HOWE
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Kenneth R. Howe
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Vice President and Financial Officer<BR>
(Principal Financial and Accounting Officer)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date: August&nbsp;8, 2008
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>



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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>2
<FILENAME>k34657exv4w1.htm
<DESCRIPTION>EX-4.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-4.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U><B>EXHIBIT &#150; 4.1</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LOAN AGREEMENT</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>dated as of July&nbsp;14, 2008</B>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>by and between</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>AGREE LIMITED PARTNERSHIP,<BR>
a Delaware limited partnership,<BR>
as Borrower</B>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE FINANCIAL INSTITUTIONS PARTY HERETO, as Co-Lenders</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>and</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LASALLE BANK MIDWEST NATIONAL ASSOCIATION,<BR>
a national banking association, as Agent</B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>TABLE OF CONTENTS</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Article</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
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<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 1 INCORPORATION AND DEFINITIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">1.1 Incorporation and Definitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 2 REPRESENTATIONS AND WARRANTIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.1 Representations and Warranties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.2 Continuation of Representations and Warranties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 3 AMOUNT AND TERMS OF LOANS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.1 Agreement to Lend and to Borrow; Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.2 Commitments Several</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 4 PRINCIPAL, INTEREST; SPECIAL PROVISIONS FOR LIBOR LOANS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.1 Interest Rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.2 Payment of Principal and Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.3 Types of Loans; Setting and Notice of LIBOR Rates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.4 Conversion and Continuation Procedures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.5 Computation of Interest and Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.6 Inability to Determine Interest Rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.7 Pro Rata Treatment and Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.8 Illegality</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.9 Legal Requirements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.10 Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.11 LIBOR Loan Indemnification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 5 LOAN DOCUMENTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.1 Loan Documents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 6 CONDITIONS TO LOAN CLOSING</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">6.1 Conditions to Loan Closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">6.2 Termination of Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 7 DISBURSEMENTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.1 Conditions Precedent to Disbursement of Loan Proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.2 Advances by Banks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.3 Expenses and Advances Secured by Mortgages</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.4 Acquiescence not a Waiver</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.5 Agent&#146;s Action for Agent&#146;s Own Protection Only</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 8 FURTHER AGREEMENTS OF BORROWER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.1 Furnishing Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.2 Compliance with Covenants; Prohibition Against Additional Recordings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.3 Property Accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.4 Distributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.5 Further Assurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->i<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Article</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
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<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 9 CASUALTIES AND CONDEMNATION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">9.1 Application of Insurance Proceeds and Condemnation Awards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 10 ASSIGNMENTS, SALE AND ENCUMBRANCES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.1 Bank Assignments, Participations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.2 Prohibition of Assignments and Encumbrances by Borrower</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.3 Partial Releases of Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 11 EVENTS OF DEFAULT BY BORROWER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.1 Event of Default Defined</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 12 AGENT&#146;S REMEDIES UPON EVENT OF DEFAULT</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.1 Remedies Conferred upon Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.2 Right of Banks to Make Advances to Cure Event of Defaults; Obligatory Advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.3 Attorneys Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.4 No Waiver</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">12.5 Default Rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 13 THE AGENT</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">13.1 Appointment and Authorization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">13.2 Actions Requiring Consent and Approval</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">13.3 Liability of Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">13.4 Reliance by Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">13.5 Notice of Default</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">13.6 Credit Decision</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">13.7 Bank Indemnification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">13.8 Agent in Individual Capacity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">13.9 Successor Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">13.10 Collateral Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">13.11 Agent May File Proofs of Claim</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 14 MISCELLANEOUS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.1 Time is of the Essence</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.2 Agent&#146;s Determination of Facts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.3 Prior Agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.4 Disclaimer by Banks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.5 Borrower Indemnification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.6 Captions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.7 Inconsistent Terms and Partial Invalidity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.8 Gender and Number</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.9 Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.10 Effect of Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.11 Governing Law</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.12 Consent to Jurisdiction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.13 Waiver of Jury Trial</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.14 Counterparts; Facsimile Signatures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">14.15 Customer Identification &#151; USA Patriot Act Notice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>SCHEDULES</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Schedule&nbsp;3.1 &#150; Loan Amounts<BR>
Schedule&nbsp;10.1 &#151; Schedule of Release Payments

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>EXHIBITS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">EXHIBIT&nbsp;&#147;A&#148; &#151; THE PROPERTY<BR>
EXHIBIT&nbsp;&#147;B&#148; &#150; FORM OF PROMISSORY NOTE<BR>
EXHIBIT&nbsp;&#147;C&#148; &#151; PERMITTED EXCEPTIONS<BR>
EXHIBIT&nbsp;&#147;D&#148; &#151; FORM OF ASSIGNMENT AND ACCEPTANCE

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->ii<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>LOAN AGREEMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This <B>LOAN AGREEMENT </B>dated as of July&nbsp;14, 2008 (the &#147;<U>Agreement</U>&#148;), is executed by and
among <B>AGREE LIMITED PARTNERSHIP</B>, a Delaware limited partnership (the &#147;<U>Borrower</U>&#148;), the
financial institutions that are or may from time to time become parties hereto and are described on
Schedule&nbsp;3.1 hereto (together with LaSalle and their respective successors and assigns, the
&#147;<U>Banks</U>&#148;) and <B>LASALLE BANK MIDWEST NATIONAL ASSOCIATION</B>, a national banking association (in
its individual capacity, &#147;<U>LaSalle</U>&#148;), as agent for itself and the other Banks.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><u>R</u> <u>E</u> <u>C</u> <u>I</u> <u>T</u> <u>A</u> <u>L</u> <u>S</u></B>:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;Borrower is the owner or land lessee of the properties described in <U>Exhibit&nbsp;&#147;A&#148;</U>
attached hereto (being collectively referred to herein as the &#147;<U>Property</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;Borrower has applied to the Banks for the Loans (as hereinafter defined) for the purpose of
financing the Property, and the Banks are willing to make the Loans upon the terms and conditions
hereinafter set forth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW, THEREFORE</B>, in consideration of the mutual representations, warranties, covenants and
agreements herein contained, the sufficiency of which is hereby acknowledged, the parties hereto
represent and agree as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 1</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>INCORPORATION AND DEFINITIONS</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <U><B>Incorporation and Definitions</B></U>. The foregoing recitals and all exhibits hereto are
hereby made a part of this Agreement. The following terms shall have the following meanings in
this Agreement:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Actual Knowledge</U>&#148;: Knowledge acutally possessed by Richard Agree, or his
successor, without inquiry or additional investigation, and not constructive knowledge which
is imputed to the Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agent</U>&#148;: As of the date hereof, LaSalle in its capacity as agent for the Banks
and any successor or assign of LaSalle in such capacity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Applicable Margin</U>&#148;: With respect to LIBOR Loans, one and one-half percent
(1.50%) per annum and with respect to Base Rate Loans, one percent (1.00%) per annum.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Assignments of Rents</U>&#148;: As defined in Section&nbsp;5 hereof
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bank(s)</U>&#148;: As defined in the Preamble.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bank Affiliate</U>&#148; means RJ Capital Services, Inc., an affiliate of Raymond James
Bank, FSB, and any other affiliate of any Bank, and their respective successors and assigns.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Base Rate Loan</U>&#148;: Any Loan which bears interest at a rate determined by
reference to the Base Rate.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Base Rate</U>&#148;: At any time, the greater of the Federal Funds Rate <U>plus</U>
one-half of one percent (0.50%) and the Prime Rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Borrower</U>&#148;: As defined in the Preamble.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Day</U>&#148;: Any day other than a Saturday, Sunday or a legal holiday on
which banks are authorized or required to be closed for the conduct of commercial banking
business in Troy, Michigan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commitment Fee</U>&#148;: A commitment fee in the amount of three eights of one
percent (.375%) of the Loan Amount, payable to the Banks according to their Pro-Rata Shares
in consideration for their commitments to make the Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Debt Service</U>&#148;: For any fiscal year, the sum of all scheduled principal and
interest payments on the Loans which are due and payable during such fiscal year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Debt Service Coverage Ratio</U>&#148;: For any fiscal year, the ratio of Net Operating
Income to Debt Service.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Default Rate</U>&#148;: As defined in Section&nbsp;4.1 hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Indemnity Agreement</U>&#148;: As defined in Section&nbsp;5 hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Laws</U>&#148;: As defined in the Environmental Indemnity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA</U>&#148;: The Employee Retirement Income Security Act of 1974.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Eurocurrency Reserve Percentage</U>&#148;: With respect to any LIBOR Loan for any
Interest Period, a percentage (expressed as a decimal) equal to the daily average during
such Interest Period of the percentage in effect on each day of such Interest Period, as
prescribed by the FRB, for determining the aggregate maximum reserve requirements applicable
to &#147;Eurocurrency Liabilities&#148; pursuant to Regulation&nbsp;D or any other then applicable
regulation&nbsp;of the FRB which prescribes reserve requirements applicable to &#147;Eurocurrency
Liabilities&#148; as presently defined in Regulation&nbsp;D.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Event of Default</U>&#148;: One or more of the events or occurrences referred to in
Article&nbsp;11 of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Federal Funds Rate</U>&#148;: For any day, a fluctuating interest rate equal for each
day during such period to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers,
as published for such day (or, if such day is not a Business Day, for the next preceding
Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published
for any day which is a Business Day, the average of the quotations for such day on such
transactions received by the Agent from three Federal funds brokers of recognized standing
selected by the Agent. The Agent&#146;s determination of such rate shall be binding and
conclusive absent manifest error.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>FRB</U>&#148;: The Board of Governors of the Federal Reserve System or any successor
thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>GAAP</U>&#148;: Generally accepted accounting principles set forth from time to time
in the opinions and pronouncements of the Accounting Principles Board and the American
Institute of
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board (or agencies with similar functions of comparable stature and
authority within the U.S. accounting profession), which are applicable to the circumstances
as of the date of determination, provided, however, that interim financial statements or
reports shall be deemed in compliance with GAAP despite the absence of footnotes and fiscal
year-end adjustments as required by GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Governmental Authority</U>&#148;: Any nation or government, any state or other
political subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Guarantor</U>&#148;: Agree Realty Corporation, a Maryland corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hazardous Materials</U>&#148;: As defined in the Environmental Indemnity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Interest Period</U>&#148;: As to any LIBOR Loan, the period commencing on the date such
Loan is borrowed or continued as a LIBOR Loan and ending on the date one, two or three
months thereafter as selected by Borrower pursuant to Section&nbsp;4.3; provided that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Interest Period occurring after the initial Interest Period of any
LIBOR Loan shall commence on the day on which the preceding Interest Period for such
LIBOR Loan expires;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if any Interest Period would otherwise end on a day that is not a Business
Day, such Interest Period shall be extended to the following Business Day unless the
result of such extension would be to carry such Interest Period into another
calendar month, in which event such Interest Period shall end on the preceding
Business Day;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Interest Period that begins on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period shall end on the last Business Day of the calendar month at the end of such
Interest Period; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Borrower may not select any Interest Period for a Loan which would extend
beyond the scheduled Maturity Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>LaSalle</U>&#148;: As defined in the Preamble.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lease(s)</U>&#148;: Any and all leases, licenses or agreements for use of any part of
the Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Legal Requirements</U>&#148;: As to any person or party, the Articles of Incorporation
or Organization and bylaws, operating agreement, partnership agreement or other
organizational or governing documents of such person or party, and any law, treaty, rule or
regulation or determination of an arbitrator or a court or other governmental authority, in
each case applicable to or binding upon such person or party or any of its property or to
which such person or party or any of its property is subject.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>LIBOR Loan</U>&#148;: Any Loan which bears interest at a rate determined by reference
to the LIBOR Rate (Reserve Adjusted).
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>LIBOR Office</U>&#148;: With respect to any Bank, the office or offices of such Bank
which shall be making or maintaining the LIBOR Loans of such Bank hereunder. A LIBOR Office
of any Bank may be, at the option of such Bank, either a domestic or foreign office.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>LIBOR Rate</U>&#148;: With respect to any LIBOR Loan for any Interest Period, the per
annum rate of interest at which United States dollar deposits in an amount comparable to the
amount of such LIBOR Loan and for a period equal to the relevant Interest Period are offered
in the London Interbank Eurodollar market at 11:00&nbsp;a.m. (London time) two (2)&nbsp;Business Days
prior to the commencement of such Interest Period (or three Business Days prior to the
commencement of such Interest Period if banks in London, England were not open and dealing
in offshore United States dollars on such second preceding Business Day), as displayed in
the <I>Bloomberg Financial Markets </I>system (or other authoritative source selected by the Agent
in its sole discretion).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>LIBOR Rate (Reserve Adjusted)</U>&#148;: With respect to any LIBOR Loan for any
Interest Period, a rate per annum equal to (A)&nbsp;the LIBOR Rate, divided by (B)&nbsp;a number
determined by subtracting from 1.00 the Eurocurrency Reserve Percentage.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan Amount</U>&#148;: The aggregate principal amount of the Loans, which is equal to
Twenty Four Million Eight Hundred Thousand and 00/100 Dollars ($24,800,000.00). The amount
of each Bank&#146;s Pro Rata Share of the Loan Amount is set forth on Schedule&nbsp;3.1 attached
hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan Documents</U>&#148;: This Agreement, the documents specified in Article&nbsp;5 hereof
and any other instruments evidencing, securing or guarantying obligations of any party under
the Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan Expenses</U>&#148;: As defined in Section&nbsp;7.2(b) hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan Closing</U>&#148;: The first disbursement of the Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan Closing Date</U>&#148;: July&nbsp;14, 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan Proceeds</U>&#148;: All amounts advanced as part of the Loans, whether advanced
directly to Borrower or otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loans</U>&#148;: The loans to be made by the Banks pursuant to this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Maturity Date</U>&#148;: Initially, July&nbsp;14, 2013, which shall be subject to extension
at the Borrower&#146;s option as provided in Section&nbsp;4.2(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Mortgages</U>&#148;: As defined in Section&nbsp;5 hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Net Operating Income</U>&#148;: For any fiscal year, the gross income derived from the
operation of the Property, on a combined basis, less Operating Expenses attributable to the
Property, on a combined basis, accounted for on an accrual basis, in accordance with GAAP,
including any rent loss or business interruption insurance proceeds, and water and sewer
charges, which are actually received and Operating Expenses actually paid or payable on an
accrual basis attributable to the Property as set forth on operating statements satisfactory
to Agent. Notwithstanding the foregoing, Net Operating Income shall not include (i)&nbsp;any
condemnation or insurance proceeds (excluding rent or business interruption insurance
proceeds), (ii)&nbsp;any proceeds resulting from the sale, exchange, transfer, financing or
refinancing of all or any portion of the Property, (iii)&nbsp;amounts received from tenants as
security deposits, (iv)&nbsp;amounts received from
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">affiliates of the Borrower or the Guarantor, which amounts do not represent
pass-through rent payments received from bona-fide third party tenants, (v)&nbsp;interest income,
and (vi)&nbsp;any type of income otherwise included in Net Operating Income but paid directly by
any tenant to anyone other than Borrower or the Guarantor or its agents or representatives.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Non-Excluded Taxes</U>&#148;: As defined in Section&nbsp;4.10 hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Note(s)</U>&#148;: Collectively, the notes made by Borrower payable to each Bank in
the aggregate amount of the Loans and in the Form of <U>Exhibit&nbsp;&#147;B&#148;</U> hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Operating Expenses</U>&#148;: For any given period (and shall include the pro rata
portion for such period of all such expenses attributable to, but not paid during, such
period) all expenses to be paid or payable, as determined in accordance with GAAP, by
Borrower or the Guarantor during that period in connection with the operation of the
Property, including without limitation:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) expenses for cleaning, repair, mantenance, decoration and painting of the Property
(including, without limitation, parking lots and roadways), net of any insurance preceeds in
respect of any of the foregoing;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) wages (including overtime payments), benefits, payroll taxes and all other related
expenses for Borrower&#146;s and the Guarantor&#146;s on-site personnel, engaged in the repair,
operation and maintenance of the Property and service to tenants and on-site personnel
engaged in audit and accounting functions performed by Borrower;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) actual management fees, if any, together with any allocated management fees or
similar fees received from tenants or other parties. Such fees shall include all fees for
management services whether such services are performed at the Proeprty or off-site;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the cost of all electricity, oil, gas, water, steam, heat, ventilation, air
conditioning and any other energy, utility or similar item and the cost of building and
cleaning supplies;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the cost of leasing commissions and tenant concessions or improvements payable by
Borrower or the Guarantor pursuant to any leases which are in effect for the Property at the
commencement of that period as such costs are recognized in accordance with GAAP, but on no
less than a straight line basis over the remaining term of the respective Lease, exclusive
of any renewal or extension or similar options;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) rent, liability, casualty and fidelity insurance premiums;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) legal, accounting and other professional fees and expenses;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the cost of all equipment to be used in the ordinary course of business, which
is not capitalized in accordance with GAAP;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) real estate and other taxes;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) advertising and other marketing costs and expenses;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) casualty losses to the extent not reimbursed by a third party;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) any ground lease payments; and
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) all amounts that should be reserved, as reasonably determined by Borrower and
the Guarantor with approval by Agent in its reasonable discretion, for repair or maintenance
of the Property and to maintain the value of the Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nothwithstanding the foregoing, Operating Expenses shall not include (i)&nbsp;depreciation
or amortization or any other non-cash item of expense; (ii)&nbsp;interest, principal, fees, costs
and expense reimbursements of Agent in administering the Loan but not in exercising any of
its rights under this Agreement or the Loan Documents; or (iii)&nbsp;any expenditure (other than
leasing commissions, tenant concessions and improvements, and replacement reserves) which is
properly treatable as a capital item under GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Exceptions</U>&#148;: The title exceptions specified in <U>Exhibit&nbsp;&#147;C&#148;</U>
hereto, together with such additional exceptions as may be approved in writing by Agent or
are permitted by the terms hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Prime Rate</U>&#148;: For any day, the rate of interest most recently announced by
LaSalle at Troy, Michigan as its prime or base rate. A certificate made by an officer of
LaSalle stating the Prime Rate in effect on any given day, for the purposes hereof, shall be
conclusive evidence of the Prime Rate in effect on such day. The Prime Rate is a base
reference rate of interest adopted by LaSalle as a general benchmark from which LaSalle
determines the floating interest rates chargeable on various loans to borrowers with varying
degrees of creditworthiness and Borrower acknowledges and agrees that LaSalle has made no
representations whatsoever that the Prime Rate is the interest rate actually offered by
LaSalle to borrowers of any particular creditworthiness. The effective date of any change
in the Prime Rate shall for purposes hereof be the date the Prime Rate is changed by
LaSalle. LaSalle shall not be obligated to give notice of any change in the Prime Rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Property</U>&#148;: As defined in the Recitals to this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Pro Rata Share</U>&#148;: As to any Bank at any time, the percentage the aggregate
principal amount of such Bank&#146;s Loan then outstanding bears to the aggregate principal
amount of the Loans then outstanding, as described on Schedule&nbsp;3.1 attached hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rate Management Agreement</U>&#148; means any agreement, device or arrangement
providing for payments which are related to fluctuations of interest rates, exchange rates,
forward rates, or equity prices, including, but not limited to, dollar-denominated or
cross-currency interest rate exchange agreements, forward currency exchange agreements,
interest rate cap or collar protection agreements, forward rate currency or interest rate
options, puts and warrants, and any agreement pertaining to equity derivative transactions
(e.g., equity or equity index swaps, options, caps, floors, collars and forwards), including
without limitation any and all obligations under any and all swap agreements as defined in
11 USC 1, Ch. 101 between the Borrower and any of the Banks and/or any Bank Affiliate and
any ISDA Master Agreement between Borrower and any Bank and/or any Bank Affiliate, and any
schedules, confirmations and documents and other confirming evidence between the parties
confirming transactions thereunder, all whether now existing or hereafter arising, and in
each case as amended, modified or supplemented from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rate Management Obligations</U>&#148; means any and all obligations of Borrower to any
Bank and/or Bank Affiliate, whether absolute, contingent or otherwise and howsoever and
whensoever (whether now or hereafter) created, arising, evidenced or acquired (including all
renewals, extensions and modifications thereof and substitutions therefore), under or in
connection with (i)
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">any and all Rate Management Agreements, and (ii)&nbsp;any and all cancellations, buy-backs,
reversals, terminations or assignments of any Rate Management Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Regulatory Change</U>&#148;: As to any Bank, the introduction of, or any change in any
applicable law, treaty, rule, regulation or guideline or in the interpretation or
administration thereof by any governmental authority or any central bank or other fiscal,
monetary or other authority having jurisdiction over the Banks or their lending offices.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Required Banks</U>&#148;: Banks having Pro Rata Shares aggregating fifty one percent
(51%) or more.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>State</U>&#148;: The state in which the Property is located.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Title Company</U>&#148;: Liberty Title Insurance Company.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 2</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>REPRESENTATIONS AND WARRANTIES</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <U><B>Representations and Warranties</B></U>. To induce the Banks to execute and perform this
Agreement, Borrower hereby represents, covenants or warrants to the Banks as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the Loan Closing and at all times thereafter until the Loans are paid in full,
Borrower will have good and merchantable fee simple title to the Property, with the
exception of the Property located at 56805 Van Dyke Avenue, Shelby Township, MI, with
respect to which the Borrower is the ground lessee under a Ground Lease dated August&nbsp;17,
2007, subject only to the Permitted Exceptions;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower is a limited partnership, duly organized, validly existing and in good
standing under the laws of the State of Delaware and is qualified to conduct business in the
State of Michigan. Borrower has full power and authority to conduct its business as
presently conducted, to own and operate the Property, to enter into this Agreement and to
perform all of its duties and obligations under this Agreement and under the Loan Documents;
such execution and performance have been duly authorized by all necessary Legal
Requirements; neither Borrower nor Guarantor has been convicted of a felony and there are no
proceedings or investigations being conducted involving criminal activities of either
Borrower or Guarantor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement, the Note, the Mortgages, the other Loan Documents and any other
documents and instruments required to be executed and delivered by Borrower and/or Guarantor
in connection with the Loans, when executed and delivered, will constitute the duly
authorized, valid and legally binding obligations of the party required to execute the same
and will be enforceable strictly in accordance with their respective terms (except to the
extent that enforceability may be affected or limited by applicable bankruptcy, insolvency
and other similar debtor relief laws affecting the enforcement of creditors&#146; rights
generally); no basis presently exists for any claim against Agent or the Banks under this
Agreement, under the Loan Documents or with respect to the Loans; enforcement of this
Agreement and the Loan Documents are subject to no defenses of any kind;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The execution, delivery and performance of this Agreement, the Note, the Mortgages,
the other Loan Documents and any other documents or instruments to be executed and delivered
by Borrower or Guarantor pursuant to this Agreement or in connection with the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Loans and occupancy and use of the Property will not, to the Borrower&#146;s Actual
Knowledge: (i)&nbsp;violate any Legal Requirements, or (ii)&nbsp;conflict with, be inconsistent with,
or result in any breach or default of any of the terms, covenants, conditions or provisions
of any indenture, mortgage, deed of trust, instrument, document, agreement or contract of
any kind to which Borrower or Guarantor is a party or by which any of them may be bound.
Neither Borrower nor Guarantor is in default (without regard to grace or cure periods) under
any contract or agreement to which it is a party, the effect of which default will adversely
affect the performance by Borrower or Guarantor of its obligations pursuant to and as
contemplated by the terms and provisions of this Agreement and/or the other Loan Documents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No condition, circumstance, event, agreement, document, instrument, restriction,
litigation or proceeding (or threatened litigation or proceeding or basis therefor) exists
which could (i)&nbsp;adversely affect the validity or priority of the liens and security
interests granted Agent under the Loan Documents; (ii)&nbsp; materially adversely affect the
ability of Borrower or Guarantor to perform their obligations under the Loan Documents; or
(iii)&nbsp;constitute an Event of Default under any of the Loan Documents or an event which, with
the giving of notice, the passage of time or both, would constitute such an Event of
Default;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the Borrower&#146;s Actual Knowledge, the Property, and the present use and occupancy
of the Property, will not violate or conflict with any applicable law, statute, ordinance,
rule, regulation or order of any kind, including, without limitation, Environmental Laws,
zoning, building, land use, noise abatement, occupational health and safety or other laws,
any building permit or any condition, grant, easement, covenant, condition or restriction,
whether recorded or not, and if a third-party is required under any covenants, conditions
and restrictions of record or any other agreement to consent to the use and/or operation of
the Property, Borrower has obtained such approval from such party. In addition, and without
limiting the foregoing, Borrower shall (a)&nbsp;ensure that no person or entity which owns a
controlling interest in or otherwise controls Borrower is or shall be listed on the
Specially Designated Nationals and Blocked Person List or other similar lists maintained by
the Office of Foreign Assets Control (&#147;<U>OFAC</U>&#148;), the Department of the Treasury or
included in any Executive Orders, (b)&nbsp;not use or permit the use of any Loan Proceeds to
violate any of the foreign asset control regulations of OFAC or any enabling statute or
Executive Order relating thereto, and (c)&nbsp;comply with all applicable Bank Secrecy Act laws
and regulations, as amended;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Property has never been used, and the Property will not be used, for any
activities which, directly or indirectly, involve the use, generation, treatment, storage,
transportation or disposal of any Hazardous Materials in violation of any Environmental
Laws. No Hazardous Materials exist now, and no Hazardous Materials will hereafter exist, on
or under the Property in violation of any Environmental Laws or in any surface waters or
groundwaters on or under the Property. The Property and its existing and prior uses have at
all times complied with and will comply with all Environmental Laws, and Borrower has not
violated, and will not violate, any Environmental Laws;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) There are no facilities on the Property which are subject to reporting under any
State laws or Section&nbsp;312 of the Federal Emergency Planning and Community Right-to-Know Act
of 1986 (42 U.S.C.&nbsp;Section&nbsp;11022), and federal regulations promulgated thereunder. The
Property does not contain any underground storage tanks;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All financial statements submitted by Borrower or Guarantor to Agent in connection
with the Loans are true and correct in all material respects, have been prepared in
accordance with generally accepted accounting principles consistently applied, and fairly
present
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">the respective financial conditions and results of operations of the entities which are
their subjects;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) This Agreement and all financial statements, budgets, schedules, opinions,
certificates, confirmations, applications, rent rolls, affidavits, agreements, and other
materials submitted to Agent in connection with or in furtherance of this Agreement by or on
behalf of Borrower or Guarantor fully and fairly state the matters with which they purport
to deal, and neither misstate any material fact nor, separately or in the aggregate, fail to
state any material fact necessary to make the statements made not misleading;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) All governmental permits and licenses required by applicable law to occupy and
operate the Property have been validly issued and are in full force;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Improvements on the Property do not encroach upon any building line, set back line,
sideyard line, or any recorded or visible easement (or other easement of which Borrower is
aware or has reason to believe may exist) which exists with respect to the Property;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Loans, including interest rate, fees and charges as contemplated hereby, are
business loans; the Loans are an exempted transaction under the Truth In Lending Act, 12
U.S.C. &#167;&nbsp;1601 et seq.; and the Loans do not, and when disbursed will not, violate the
provisions of the usury laws of the State, any consumer credit laws or the usury laws of any
state which may have jurisdiction over this transaction, Borrower or any property securing
the Loans;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) There are no Leases for use or occupancy of any part of the Property other than as
previously delivered to and approved by Agent; Borrower shall not enter into any other Lease
for all or any portion of the Property, without the prior written consent of Agent; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Leases are in full force and effect; to the Borrower&#146;s Actual Knowledge, no
defaults have occurred thereunder; no tenant under any Lease has a current right of set-off
against payment of rent due thereunder; and, to the Borrower&#146;s Actual Knowledge, no events
or circumstances exist which, with the passage of time or the giving of notice, or both,
would constitute a default under a Lease.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <U><B>Continuation of Representations and Warranties</B></U><B>. </B>The Borrower hereby covenants,
warrants and agrees that the representations and warranties made in Section&nbsp;2.1 hereof shall be and
shall remain true and correct at the time of the Loan Closing.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 3</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>AMOUNT AND TERMS OF LOANS</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <U><B>Agreement to Lend and to Borrow; Notes</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the conditions and upon the terms provided for in this Agreement, each
Bank severally agrees to make the Loans to Borrower in the principal amount indicated on
Schedule&nbsp;3.1 hereto. The Loans shall be LIBOR Loans except in the circumstances described
in Section&nbsp;4.4(b), 4.6 or 4.8.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Loans made by each Bank shall be evidenced by a Note of Borrower, substantially
in the form of <U>Exhibit&nbsp;&#147;B&#148;</U> hereto, with appropriate insertions therein as to payee,
date and principal amount, payable to the order of such Bank. The date, amount and type of
each
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Loan and payment or prepayment of principal with respect thereto, each continuation
thereof, and the length of each Interest Period with respect to each LIBOR Loan shall be
recorded by each Bank on its books and, (prior to any transfer of its Note or, at the
discretion of each Bank, at any other time) endorsed by each Bank, on the schedules annexed
to and constituting a part of its Note. Each such recordation shall constitute prima facie
evidence of the accuracy of the information so recorded in the absence of manifest error.
The Note of each Bank shall (i)&nbsp;be dated the date hereof or, if a Bank&#146;s interest is
hereafter assigned, the effective date of such assignment, (ii)&nbsp;be stated to mature on the
Maturity Date, and (iii)&nbsp;provide for the payment of princial and interest in accordance with
Article&nbsp;4 hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No portion of any Loan shall be funded with plan assets of (i)&nbsp;any employee benefit
plan subject to Title I of ERISA, (ii)&nbsp;any plan covered by Section&nbsp;4975 of the Code, or
(iii)&nbsp;any government plan subject to state laws that are comparable to Title&nbsp;I of ERISA or
Section&nbsp;4975 of the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <U><B>Commitments Several</B></U>. The failure of any Bank to make its Loan at the Loan Closing
shall not relieve any other Bank of its obligation (if any) to make a Loan on such date, but no
Bank shall be responsible for the failure of any other Bank to make any Loan to be made by such
other Bank.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 4</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>PRINCIPAL, INTEREST; SPECIAL PROVISIONS FOR LIBOR LOANS</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <U><B>Interest Rates</B></U>. Borrower promises to pay interest on the unpaid principal amount
of each Loan for the period commencing on the date of such Loan until such Loan is paid in full as
follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at all times while such Loan is a LIBOR Loan, at a rate per annum equal to the sum
of the LIBOR Rate (Reserve Adjusted) applicable to each Interest Period for such Loan
<U>plus</U> the Applicable Margin from time to time in effect; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at all times while such Loan is a Base Rate Loan, at a rate per annum equal to the
sum of the Base Rate from time to time in effect <U>minus</U> the Applicable Margin from
time to time in effect. Loans may be Base Rate Loans only under the circumstances described
in Section&nbsp;4.4(b), 4.6 or 4.8;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provided that at any time an Event of Default exists, the interest rate applicable to each Loan
shall be increased by two percent (2.00%) (the &#147;<U>Default Rate</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <U><B>Payment of Principal and Interest</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Principal and interest on the Loans shall be payable as provided in the Notes. The
outstanding principal balance on all Loans made by the Banks hereunder shall be due and
payable in full on the Maturity Date, unless the Loans are otherwise accelerated, terminated
or extended as provided in this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower shall be entitled to exercise a one-time option to extend the Maturity
Date for a period of two years from the initial Maturity Date, provided that: (1)&nbsp;as of the
initial Maturity Date, the Property shall have generated a Debt Service Coverage Ratio, as
of the end of the most recent fiscal year, of not less than 1.20 to 1.00, and (2)&nbsp;the
Borrower shall pay to the Agent an extension fee in an amount equal to one eighth of one
percent (1/8%) of the principal balance outstanding on the Loans as of the initial Maturity
Date. In the event the Borrower
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">exercises this extension option, the payment schedules attached to the Notes shall be
revise to add the additional principal payments that will be required to continue amortizing
the outstanding principal balance of the Loans as of the initial Maturity Date over the
remainder or the original amortization period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Prior to the occurrence of an Event of Default, all payments and prepayments on
account of the indebtedness evidenced by the Note shall be applied as follows: (i)&nbsp;first, to
fees, expenses, costs and other similar amounts then due and payable to the Banks,
(ii)&nbsp;second, to accrued and unpaid interest on the principal balance of the Note,
(iii)&nbsp;third, to the payment of principal due in the month in which the payment or prepayment
is made, if any, (iv)&nbsp;fourth, to any escrows, impounds or other amounts which may then be
due and payable under the Loan Documents, (v)&nbsp;fifth, to any other amounts then due the Banks
hereunder or under any of the Loan Documents, and (vi)&nbsp;last, to the unpaid principal balance
of the Note. After an Event of Default has occurred and is continuing, payments shall be
applied as required under applicable law and in the absence of any such requirements,
payments may be applied to amounts owed hereunder and under the Loan Documents in such order
as Agent shall determine, in its sole discretion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All payments of principal (including prepayments) and accrued interest shall be
paid by wire transfer or check in United States Dollars, to Agent, for the account of the
Banks, at such place as Agent may from time to time direct, and in the absence of such
direction, then at the offices of Agent at 2600 West Big Beaver Road, Troy, Michigan 48084.
Payment made by check shall be deemed paid on the date Lender receives such check; provided,
however, that if such check is subsequently returned to Agent unpaid due to insufficient
funds or otherwise, the payment shall not be deemed to have been made and shall continue to
bear interest until collected. Notwithstanding the foregoing, the final payment due under
the Note must be made by wire transfer or other immediately available funds.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If any payment of interest or principal due hereunder is not made within five days
after such payment is due in accordance with the terms hereof, then, in addition to the
payment of the amount so due, Borrower shall pay to Agent a &#147;late charge&#148; of five cents for
each whole dollar so overdue to defray part of the cost of collection and handling such late
payment. Borrower agrees that the damages to be sustained by the holder hereof for the
detriment caused by any late payment are extremely difficult and impractical to ascertain,
and that the amount of five cents for each one dollar due is a reasonable estimate of such
damages, does not constitute interest, and is not a penalty.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) LIBOR Loans and Base Rate Loans may be prepaid either in whole or in part at any
time and from time to time without penalty or premium upon three (3)&nbsp;days prior notice to
Agent; provided, however, that if a LIBOR Loan is prepaid on a date other than the last day
of the applicable Interest Period, it shall be accompanied by any amounts due under
Section&nbsp;4.11 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <U><B>Types of Loans; Setting and Notice of LIBOR Rates</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Loan shall be divided into tranches which shall be LIBOR Loans, except in the
circumstances described in Section&nbsp;4.4(b), 4.6 or 4.8, in which case they shall be Base Rate
Loans (each a &#147;type&#148; of Loan). Not more than five (5)&nbsp;different tranches of LIBOR Loans
shall be outstanding at any one time. All borrowings, conversions and repayments of Loans
shall be effected so that each Bank will have a pro rata share (according to its Pro Rata
Share) of all Loans. Each LIBOR Loan shall be designated by the Borrower by any written,
verbal, electronic, telephonic or telecopy request, in form acceptable to the Agent, which
the Agent in good faith
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">believes to emanate from a properly authorized representative of the Borrower, whether
or not that is in fact the case. Each such request shall be effective upon receipt by the
Agent, shall be irrevocable, and shall specify the date, amount and the initial Interest
Period therefor. Upon receipt of any such notice, Agent shall promptly notify each Bank
thereof. The final Interest Period for any LIBOR Loan must be such that its expiration
occurs on or before the Maturity Date. A request to designate a LIBOR Loan must be (i)
received by the Agent no later than 11:00&nbsp;a.m. Troy, Michigan time, three days before the
day it is to be designated a LIBOR Loan, and (ii)&nbsp;in an amount equal to Five Hundred
Thousand and 00/100 Dollars ($500,000.00) or a higher integral multiple of Two Hundred Fifty
Thousand and 00/100 Dollars ($250,000.00). The Borrower does hereby irrevocably confirm,
ratify and approve all such designations and does hereby indemnify the Agent and the Banks
against losses and expenses (including court costs, attorneys&#146; and paralegals&#146; fees) and
shall hold the Agent and the Banks harmless with respect thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The applicable LIBOR Rate for each Interest Period shall be determined by the
Agent, and notice thereof shall be given by the Agent promptly to Borrower and each Bank.
The Agent shall, upon written request of Borrower or any Bank, deliver to Borrower or such
Bank a statement showing the computations used by the Agent in determining any applicable
LIBOR Rate hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <U><B>Conversion and Continuation Procedures</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each LIBOR Loan shall automatically renew for the Interest Period specified in the
initial request received by the Bank for the LIBOR Loan, at the then current LIBOR Rate
unless the Borrower, pursuant to a subsequent written notice received by the Agent, shall
elect a different Interest Period. Upon receipt by the Agent of such subsequent notice, the
Borrower may, subject to the terms and conditions of this Agreement, elect, as of the last
day of the applicable Interest Period, to continue any LIBOR Loan having an Interest Period
expiring on such day for a different Interest Period. Such notice shall be given before
11:00&nbsp;a.m., Troy, Michigan time, at least three Business Days prior to the last day of the
applicable Interest Period, specifying: (i)&nbsp;the aggregate amount of LIBOR Loans to be
converted to a different Interest Period; and (ii)&nbsp;the duration of the requested Interest
Period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower may not elect an Interest Period, and an Interest Period for a LIBOR
Loan shall not automatically renew, with respect to any principal amount which is scheduled
to be repaid before the last day of the applicable Interest Period, and any such amounts
shall be converted to Base Rate Loans until repaid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <U><B>Computation of Interest and Fees</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fees and interest shall be calculated on the basis of a 365&nbsp;day year (366&nbsp;days for
leap years) for the actual days elapsed in any portion of a month in which interest is due.
Interest on Base Rate Loans and LIBOR Loans shall not exceed the maximum amount permitted
under applicable law. Any change in the interest rate on a Loan resulting from a change in
the Base Rate, or the Eurocurrency Reserve Percentage, shall become effective as of the
opening of business on the day on which such change becomes effective. Agent shall as soon
as practicable notify Borrower and the Banks of each determination of a LIBOR Rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each determination of an interest rate by Agent pursuant to any provision of this
Agreement shall be conclusive and binding upon the parties hereto in the absence of manifest
error.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <U><B>Inability to Determine Interest Rate</B></U>. If prior to the first day of any Interest
Period, Agent shall have determined (which determination shall be conclusive, absent manifest
error) that (i)&nbsp;the making or maintenance of any LIBOR Loan would violate any applicable law, rule,
regulation or directive, whether or not having the force of law, (ii)&nbsp;United States dollar deposits
in the principal amount, and for periods equal to the Interest Period for funding any LIBOR Loan
are not available in the London Interbank Eurodollar market in the ordinary course of business, or
(iii)&nbsp;by reason of circumstances affecting the London Interbank Eurodollar market, adequate and
fair means do not exist for ascertaining the LIBOR Rate to be applicable to the relevant LIBOR
Loan, Agent shall give telecopy or telephonic notice thereof to Borrower and Banks as soon as
practicable thereafter and, so long as such circumstances shall continue, (A)&nbsp;no Bank shall be
under any obligation to make any LIBOR Loans or convert any Base Rate Loans into LIBOR Loans, and
(B)&nbsp;on the last day of the current Interest Period for each LIBOR Loan, such Loan, unless then
repaid in full, shall automatically convert to a Base Rate Loan, without further demand,
presentment, protest or notice of any kind, all of which are hereby waived by the Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <U><B>Pro Rata Treatment and Payments</B></U>. Each borrowing by Borrower from the Banks
hereunder, and each payment by Borrower on account of any fees hereunder, shall be made pro rata
according to the respective Pro Rata Shares of the Banks. Each payment (including each prepayment)
by Borrower on account of principal of and interest on the Loans shall be made pro rata according
to the respective outstanding principal amounts of the Loans then held by the Banks. All payments
(including prepayments) to be made by Borrower hereunder and under the Notes, whether on account of
principal, interest, fees or otherwise, shall be made without setoff or counterclaim and shall be
made prior to 1:00 P.M., Troy, Michigan time, on the due date thereof. Agent shall distribute such
payments to the Banks promptly upon receipt in like funds as received. If any payment hereunder
becomes due and payable on a day other than a Business Day, such payment shall be extended to the
next succeeding Business Day, and, with respect to payments of principal, interest thereon shall be
payable at the then applicable rate during such extension.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <U><B>Illegality</B></U>. Notwithstanding any other provision herein, if Agent shall have
reasonably determined that any Regulatory Change shall make it unlawful for any Bank to make or
maintain LIBOR Loans as contemplated by this Agreement, Agent shall give notice of such
determination to Borrower and each Bank and (A)&nbsp;the commitment of such Bank hereunder to make LIBOR
Loans, continue LIBOR Loans as such and convert Base Rate Loans to LIBOR Loans shall forthwith be
canceled and (B)&nbsp;the LIBOR Loans then outstanding, if any, shall be converted automatically to Base
Rate Loans on the respective last days of the then current Interest Periods with respect to such
LIBOR Loans or within such earlier period as required by law. If any such conversion of a LIBOR
Loan occurs on a day which is not the last day of the then current Interest Period with respect
thereto, Borrower shall pay to each Bank such amounts, if any, as may be required pursuant to
subSection&nbsp;4.11.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <U><B>Legal Requirements</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any Regulatory Change made subsequent to the date hereof shall:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) subject any Bank to any tax of any kind whatsoever with respect to this
Agreement, any Note or any LIBOR Loan made by it, or change the basis of taxation
of payments to such Bank in respect thereof (except for Non-Excluded Taxes covered
by subsection&nbsp;4.10 and changes in the rate of tax on the overall net income of such
Bank);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) impose, modify or hold applicable any reserve, special deposit,
compulsory loan or similar requirement against assets held by, deposits or other
liabilities in or for the account of, advances, loans or other extensions of credit
by, or
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">any other acquisition of funds by, any office of such Bank which is not
otherwise included in the determination of the LIBOR Rate; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on such Bank any other condition regarding the LIBOR Loans or any
Banks&#146; funding thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">and the result of any of the foregoing is to increase the cost to such Bank, by an amount
which such Bank in good faith deems to be material, of making, converting into, continuing
or maintaining LIBOR Loans or to reduce any amount receivable hereunder in respect thereof,
then, in any such case, Borrower shall promptly pay such Bank, upon its demand, any
additional amounts necessary to compensate such Bank for such increased cost or reduced
amount receivable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any Bank shall have determined that any Regulatory Change regarding capital
adequacy or in the interpretation or application thereof or compliance by such Bank or any
corporation controlling such Bank with any request or directive regarding capital adequacy
(whether or not having the force of law) from any Governmental Authority, in any such case
made subsequent to the date hereof, does or shall have the effect of reducing the rate of
return on such Bank&#146;s or such corporation&#146;s capital as a consequence of its obligations
hereunder to a level below that which such Bank or such corporation could have achieved but
for such change or compliance (taking into consideration such Bank&#146;s or such corporation&#146;s
policies with respect to capital adequacy) by an amount deemed by such Bank to be material,
then from time to time, after submission by such Bank to Borrower (with a copy to Agent) of
a written request therefor, Borrower shall pay to such Bank such additional amount or
amounts as will compensate such Bank for such reduction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Bank becomes entitled to claim any additional amounts pursuant to this
subsection, it shall promptly notify Borrower, with a copy to Agent, of the event by reason
of which it has become so entitled. A certificate as to any additional amounts payable
pursuant to this subSection&nbsp;submitted by such Bank to Borrower (with a copy to Agent) shall
be conclusive in the absence of manifest error. This covenant shall survive the termination
of this Agreement and the payment of the Notes and all other amounts payable hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary contained in this subsection, Borrower
shall not be required to pay any additional amounts to any Bank pursuant to this subSection
to the extent such additional amounts result from such Bank&#146;s negligence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 <U><B>Taxes</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments made by Borrower under this Agreement and any Note shall be made free
and clear of, and without deduction or withholding for or on account of, any present or
future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or
withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority, excluding net income taxes and franchise taxes (imposed in lieu of
net income taxes) imposed on Agent or any Bank as a result of a present or former connection
between Agent or such Bank and the jurisdiction of the Governmental Authority imposing such
tax or any political subdivision or taxing authority thereof or therein (other than any such
connection arising solely from Agent or such Bank having executed, delivered or performed
its obligations or received a payment under, or enforced, this Agreement or any Notes). If
any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions or
withholdings (&#147;<U>Non-Excluded Taxes</U>&#148;) are required to be withheld from any amounts
payable to Agent or any Bank
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">hereunder or under any Notes, the amounts so payable to Agent or such Bank shall be
increased to the extent necessary to yield to Agent or such Bank (after payment of all
Non-Excluded Taxes) interest or any such other amounts payable hereunder at the rates or in
the amounts specified in this Agreement, provided, however, that Borrower shall not be
required to increase any such amounts payable to any Bank that is not organized under the
laws of the United States of America or a state thereof if such Bank fails to comply with
the requirements of paragraph (b)&nbsp;of this subsection. Whenever any Non-Excluded Taxes are
payable by Borrower, as promptly as possible thereafter Borrower shall send to Agent for its
own account or for the account of such Bank, as the case may be, a certified copy of an
original official receipt received by Borrower showing payment thereof. If Borrower fails
to pay any Non-Excluded Taxes when due to the appropriate taxing authority or fails to remit
to Agent the required receipts or other required documentary evidence, Borrower shall
indemnify Agent and the Banks for any incremental taxes, interest or penalties that may
become payable by Agent or any Bank as a result of any such failures. The agreements in
this subSection shall survive the termination of this Agreement and the payment of the Notes
and all other amounts payable hereunder. Notwithstanding anything to the contrary contained
in this subsection, Borrower shall not be required to pay any additional amounts to any Bank
pursuant to this subSection to the extent such additional amounts result from such Bank&#146;s
negligence.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Bank that is not incorporated under the laws of the United States of America
or a state thereof shall:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) deliver to Borrower and Agent (A)&nbsp;two duly completed copies of United
States Internal Revenue Service Form&nbsp;1001 or 4224, or successor applicable form, as
the case may be, and (B)&nbsp;an Internal Revenue Service Form W-8 or W-9, or successor
applicable form, as the case may be;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) deliver to Borrower and Agent two further copies of any such form or
certification on or before the date that any such form or certification expires or
becomes obsolete and after the occurrence of any event requiring a change in the
most recent form previously delivered by it to Borrower; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) obtain such extensions of time for filing and complete such forms or
certifications as may reasonably be requested by Borrower or Agent; unless in any
such case an event (including, without limitation, any change in treaty, law or
regulation) has occurred prior to the date on which any such delivery would
otherwise by required which renders all such forms inapplicable or which would
prevent such Bank from duly completing and delivering any such form with respect to
it and such Bank so advises Borrower and Agent. Such Bank shall certify (i)&nbsp;in the
case of a Form&nbsp;1001 or 4224, that it is entitled to receive payments under this
Agreement without deduction or withholding of any United States federal income
taxes and (ii)&nbsp;in the case of a Form W-8 or W-9, that it is entitled to an
exemption from United States backup withholding tax. Each party that shall become
a transferee pursuant to Section&nbsp;10.1 shall, upon the effectiveness of the related
transfer, be required to provide all of the forms and statements required pursuant
to this Section, provided that in the case of a participant such participant shall
furnish all such required forms and statements to Bank from which the related
participation shall have been purchased.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 <U><B>LIBOR Loan Indemnification</B></U>. Borrower agrees to indemnify each Bank and to hold
each Bank harmless from any loss or expense which such Bank may sustain or incur as a consequence
of (a)&nbsp;default by Borrower in making a borrowing of, conversion into or continuation of LIBOR Loans
after
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Borrower has given a notice requesting the same in accordance with the provisions of this
Agreement, (b)&nbsp;default by Borrower in making any prepayment after Borrower has given a notice
thereof in accordance with the provisions of this Agreement, or (c)&nbsp;the making of a prepayment of
LIBOR Loans on a day which is not the last day of an Interest Period with respect thereto. Such
indemnified amount shall include any and all costs, expenses, penalties and charges incurred by the
Banks as a result thereof, plus an amount equal to the excess, if any, of (i)&nbsp;the amount of
interest which would have accrued on the amount so prepaid, or borrowed, converted or continued,
for the period from the time of such prepayment or of such failure to borrow, convert or continue
to the last day of such Interest Period (or, in the case of the failure to borrow, convert or
continue, the Interest Period which would have commenced on the date of such failure) in each case
the applicable rate of interest for such Loans provided herein (excluding, however, the Applicable
Margin included thereon, if any) over (ii)&nbsp;the amount of interest (as reasonably defined by such
Bank) which would have accrued to such Bank on such amount by placing such amount on deposit for a
comparable period with leading banks in the certificate of deposit market, the eurodollar deposit
market, or other appropriate money market selected by such Bank. This covenant shall survive the
termination of this Agreement and the payment of the Notes and all other amounts due hereunder.
Amounts payable pursuant to this subSection shall be paid to Agent for the account of the
applicable Bank, upon the request of such Bank through Agent and a determination of any Bank as to
the amounts payable pursuant to this subSection shall be conclusive absent manifest error, based
upon the assumption that such Bank funded its loan commitment for LIBOR Loans in the London
Interbank Eurodollar market and using any reasonable attribution or averaging methods which such
Bank deems appropriate and practical, provided, however, that such Bank is not obligated to accept
a deposit in the London Interbank Eurodollar market in order to charge interest on a LIBOR Loan at
the LIBOR Rate.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 5</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>LOAN DOCUMENTS</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <U><B>Loan Documents</B></U>. As a condition precedent to the Loan Closing, Borrower agrees
that it will deliver the following Loan Documents to Agent at least five (5)&nbsp;days prior to the Loan
Closing, all of which must be satisfactory to Agent and Agent&#146;s counsel in form, substance and
execution:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U><B>Promissory Notes</B></U>. Promissory notes dated the date hereof executed by
Borrower and made payable to the order of each Bank in the amount of its respective Loan in
the form of <U>Exhibit&nbsp;&#147;B&#148;</U> attached hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U><B>Mortgages</B></U>. Mortgages dated as of even date herewith (the
&#147;<U>Mortgages</U>&#148;), duly executed by Borrower to and for the benefit of Agent, granting a
first lien on the Property to Agent for the benefit of the Banks, to secure the Notes, the
Loan and all obligations of Borrower in connection therewith and any and all indebtedness,
liabilities and obligations owing from the Borrower to the Banks, or any of them, arising
under any interest rate, currency or commodity swap agreement(s), cap agreement(s) or collar
agreement(s), and any other agreement(s) or arrangement(s) entered into by the Borrower in
conjunction with the Loan and designed to protect the Borrower against fluctuations in
interest rates, currency exchange rates or commodity prices.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U><B>Assignment of Rents and Leases</B></U>. Assignments of Rents and Leases dated as
of even date herewith (the &#147;<U>Assignments of Rents</U>&#148;), duly executed by Borrower to and
for the benefit of Agent, collaterally assigning to Agent for the benefit of the Banks all
of Borrower&#146;s rents, leases and profits of the Property as security for the Notes, and, if
Agent so requires, specific collateral assignments of any particular Leases bearing the
consent to the assignment of the lessee whose Lease is so assigned.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U><B>Financing Statements</B></U>. Uniform Commercial Code Financing Statements as
required by Agent to perfect all security interests granted by the Mortgages.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U><B>Environmental Indemnity</B></U>. Environmental Indemnity Agreements dated as of
even date herewith (the &#147;<U>Environmental Indemnity</U>&#148;), jointly and severally executed
by Borrower and Guarantor to and for the benefit of Agent, on behalf of the Banks, whereby
Borrower and Guarantor jointly and severally indemnify the Banks for any loss, cost, damage
or expense incurred as a result of environmental matters at the Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U><B>Guaranty</B></U>. A Guaranty of Payment (the &#147;<U>Guaranty</U>&#148;), jointly and
severally executed by Guarantor to and for the benefit of Agent, guaranteeing to Agent, on
behalf of the Banks, payment of all amounts due in connection with the Loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U><B>Other Loan Documents</B></U>. Such other documents and instruments as further
security for the Loan as Agent may reasonably require.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 6</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>CONDITIONS TO LOAN CLOSING</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <U><B>Conditions to Loan Closing</B></U>. As a condition precedent to the Loan Closing,
Borrower shall furnish the following to Agent at least five (5)&nbsp;days prior to the Loan Closing or
at such time as is set forth below, all of which must be strictly satisfactory to Agent and Agent&#146;s
counsel in form, content and execution:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U><B>Title Insurance Policy</B></U>. At the Loan Closing, an ALTA Loan Policy-1997
issued on the date of the Loan Closing by the Title Company to Agent in the full amount of
the Loan, insuring the Mortgages to be valid first, prior and paramount liens upon the fee
title (or leasehold interest in the case of the Property located at 56805 Van Dyke Avenue,
Shelby Township, MI) to the Property subject only to the Permitted Exceptions (the
&#147;<U>Title Insurance Policy</U>&#148;). The Title Insurance Policy must contain the following
endorsements: (i)&nbsp;ALTA Zoning Endorsement Form&nbsp;3.1 (including compliance with parking
requirements); (ii)&nbsp;Comprehensive Endorsement; (iii)&nbsp;location endorsement; (iv)&nbsp;access
endorsement; (v)&nbsp;if a Property consists of more than one subparcel, contiguity endorsement;
(vi)&nbsp;environmental lien endorsement; (vii)&nbsp;creditor&#146;s rights endorsement; (viii)&nbsp;variable
rate endorsements, if applicable; and (ix)&nbsp;such other endorsements as Agent may require. If
required by any Bank, Borrower shall procure reinsurance with companies and in amounts
satisfactory to the Banks.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U><B>Survey</B></U>. A survey (the &#147;<U>Survey</U>&#148;) of the Property made by a land
surveyor licensed in the State, which Survey must be satisfactory to the Agent, showing:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the location of all buildings, driveways, parking areas, number of parking
spaces, fences and other improvements on the Property;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the location (and recording information, to the extent recorded) of all
visible or recorded easements (including appurtenant easements), water courses,
drains, sewers, public and private roads (including the names and widths thereof
and recording numbers for the dedications thereof), other rights of way, and curb
cuts, if any, within, adjacent to or serving the Property or to which the Property
is subject; that the same are unobstructed; and that all portions of the Property
have direct access to dedicated public roads;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the location of the servient estate of any easements, if the Property is
the dominant estate thereunder;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the common street address of the Property and the dimensions, boundaries
and acreage or square footage of the Property;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) that there are no encroachments onto the Property from improvements
located on adjoining property;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the location and course of all utility lines;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) if the Property comprises more than one parcel, interior lines and other
data sufficient to insure contiguity; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) such additional information which may be required by Agent or the Title
Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Survey shall be made in accordance with (i)&nbsp;the current survey standards of the American
Land Title Association and American Congress on Surveying and Mapping and (ii)&nbsp;the laws of
the State. To the extent that there is any conflict or inconsistency among the Survey
standards described above, the more restrictive standard shall apply. The Survey shall be
dated not later than sixty (60)&nbsp;days prior to the Loan Closing, and shall bear a proper
certificate by the surveyor, which certificate shall recite compliance with the laws and
standards enumerated above, shall include the legal description of the Property and shall
run in favor of Borrower, Agent and the Title Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U><B>Insurance Policies</B></U>. Borrower shall, during the term of this Agreement,
procure at its expense and keep in force the insurance coverages required by the Mortgages.
In addition, all insurance shall be in form, content and amounts approved by Agent and
written by an insurance company or companies licensed to do business in the state in which
the Property is located and domiciled in the United States or a governmental agency or
instrumentality approved by Agent. The policies for such insurance shall have attached
thereto standard mortgagee clauses in favor of and permitting Agent to collect any and all
proceeds payable thereunder and shall include a thirty (30)&nbsp;day (except for nonpayment of
premium, in which case, a ten (10)&nbsp;day) notice of cancellation clause in favor of Agent.
Duplicate policies or certificates of insurance shall be delivered to and held by Agent as
further security for the payment of the Note and any other obligations arising under the
Loan Documents, with evidence of renewal coverage delivered to Agent at least thirty (30)
days before the expiration date of any policy. In lieu of the foregoing requirements, such
insurance may be provided through self-insurance programs maintained by tenants under the
Leases, if so provided in the Leases, in which case Agent shall be listed as the lender loss
payee or an additional insured as its interest may apply.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U><B>Environmental Report</B></U>. A written report (the &#147;<U>Environmental
Report</U>&#148;) prepared at Borrower&#146;s sole cost and expense by an independent professional
environmental consultant approved by Agent in its sole and absolute discretion. The
Environmental Report shall be subject to the Banks&#146; approval in their sole and absolute
discretion. If the Environmental Report reveals contamination or conditions warranting
further investigation in order to establish baseline data, the Banks may require, in their
sole and absolute discretion, a written report (also referred to herein as the
&#147;<U>Environmental Report</U>&#148;) based on additional testing and investigation in order to
define the source and extent of the contamination or to establish baseline data, as well as
to provide relevant detailed information on the area&#146;s geological and hydrogeological
conditions.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Any additional Environmental Report prepared pursuant to this requirement shall be
subject to the Banks&#146; approval, in their sole and absolute discretion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U><B>Appraisals</B></U>. Appraisals addressed and satisfactory to the Agent, prepared
by a certified or licensed appraiser who is approved by Agent. The appraisals must show
appraised values of the Property such that the ratio of the Loan Amount to the total of the
appraised values of the Property shall be no more than eighty percent <B>(</B>80.00%).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U><B>Documents of Record</B></U>. Copies of all covenants, conditions, restrictions,
easements and matters of record which affect the Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U><B>Searches</B></U>. A report from the appropriate filing officers of the state and
county in which the Property is located, indicating that no judgments, tax or other liens,
security interests, leases of personalty, financing statements or other encumbrances (other
than Permitted Exceptions and liens and security interests in favor of Agent) are of record
or on file encumbering any portion of the Property, and that there are no judgments, tax
liens, pending litigation or bankruptcy actions outstanding with respect to Borrower and the
Guarantor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U><B>Borrower&#146;s Attorney&#146;s Opinion</B></U>. An opinion of Borrower&#146;s counsel addressing
such issues as Agent may request, including the following propositions and questions of law
that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Borrower, its manager or general partner, as applicable, and, if Guarantor
is not an individual, Guarantor are duly organized, validly existing and in good
standing to do business in the state of their respective organization and in the
State;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Borrower has all necessary legal right, power and authority to conduct
its business, to operate and use the Property and to enter into and perform its
obligations under this Agreement and the Loan Documents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all necessary corporate, shareholder, membership, partnership approvals,
resolutions and directions have been obtained for the operation and use of the
Property and the execution of this Agreement and the Loan Documents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the execution and delivery of this Agreement and the Loan Documents, the
performance thereunder by Borrower will comply with all applicable law and will not
violate or conflict with the instruments under which Borrower is organized or any
applicable contracts or agreements; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Loan Documents and this Agreement have been duly and validly executed
and delivered.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U><B>Organizational Documents</B></U>. If Borrower is a partnership (and if any general
partner of Borrower is a partnership), a copy of the partnership agreement creating Borrower
(and such general partner) certified by a general partner of such partnership as being a
true and correct copy and as otherwise unmodified and in full force and effect, together
with a notarized incumbency certificate showing specimen signatures for all partners of
Borrower executing any Loan Documents. In addition, if Borrower is a limited partnership
(or if any general partner of Borrower is a limited partnership), a certified copy of the
certificate of limited partnership (and amendments thereto) of such partnership. If
Borrower is a corporation (or if any general partner of Borrower is a corporation), a
current Certificate of Good Standing for Borrower (or that partner) from the state of
incorporation and from the State, a certified copy of the Articles of
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Incorporation and Bylaws, including all amendments thereto, for Borrower (or that
partner) and a notarized incumbency certificate showing specimen signatures for all officers
of Borrower (or that partner) executing any Loan Documents, and certified copies of director
and shareholder resolutions authorizing execution and delivery of the Loan Documents. If
Borrower is a limited liability company (or if any manager or general partner of Borrower is
a limited liability company), a copy of the operating agreement creating Borrower (or such
manager or partner), certified by the manager or the controlling member of such entity as
being a true and correct copy and as otherwise unmodified and in full force and effect,
together with a current Certificate of Good Standing for Borrower (and its manager or
general partner) from the state of incorporation and the State, a certified copy of the
Articles of Organization, including all amendments thereto, for Borrower (and its manager or
general partner), a certificate from the manager or controlling member providing that no
certificate of dissolution has been filed, a notarized incumbency certificate showing
specimen signatures for all of the members of Borrower (and its manager or general partner)
executing any Loan Documents and, if necessary, certified copies of resolutions from the
members authorizing execution and delivery of the Loan Documents. Borrower shall also
provide the appropriate organizational documents for Guarantor that is not an individual,
together with proper authorizing resolutions, if applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U><B>Leases</B></U>. Certified copies of all Leases and such evidence as to the
validity thereof, absence of defaults thereunder, good standing and financial ability of the
parties thereto to perform, and such subordination, non-disturbance and attornment
agreements and estoppel letters from tenants under Leases and holders of concessions or
encumbrances with respect to any portion of the Property, all as Agent may require. In
addition, Borrower shall deposit all security deposits required under Leases with Agent in
an account in Borrower&#146;s name, which account is pledged to Agent pursuant to the Assignment
of Rents and Leases of even date herewith; provided, however, that such security deposits
may only be applied in accordance with the terms and conditions of the Leases.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <U><B>Real Estate Taxes</B></U>. Evidence satisfactory to Agent that the Property is
separately assessed for real estate taxing purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <U><B>Broker</B></U>. Evidence satisfactory to Agent that all brokers&#146; commissions or
fees due with respect to the Loan or the Property have been paid in full in cash.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <U><B>Additional Documents</B></U>. Such other papers and documents regarding Borrower
or the Property as Agent may require.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <U><B>Termination of Agreement</B></U>. Borrower agrees that all conditions precedent to the
Loan Closing will be complied with on or prior to the Loan Closing Date. If all of the conditions
precedent to the Loan Closing hereunder shall not have been performed on or before the Loan Closing
Date, the Banks may, at their option at any time thereafter and prior to the Loan Closing,
terminate this Agreement and all of their obligations hereunder by giving a written notice of
termination from Agent to Borrower. In the event of such termination, Borrower shall pay all Loan
Expenses which have accrued or been charged as of the Loan Closing Date.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 7</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>DISBURSEMENTS</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <U><B>Conditions Precedent to Disbursement of Loan Proceeds</B></U>. The Loan Closing shall be
made at such time as all of the conditions and requirements of this Agreement required to be
performed
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">by Borrower or other parties prior to the Loan Closing have been satisfied or performed,
unless the same shall have been waived in writing by Agent; but in no event shall the Loan Closing
occur later than the Loan Closing Date. At the Loan Closing, the Banks shall disburse funds
necessary to pay any Loan Expenses then due, unless paid by Borrower. The Loan Proceeds shall not
be disbursed by the Banks to Borrower unless:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all conditions precedent to that disbursement under the Loan Documents have been
satisfied;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Event of Default has occurred under this Agreement or under any Loan Document,
and no event, circumstance or condition has occurred or exists which, with the passage of
time or the giving of notice, would constitute a Event of Default under this Agreement or
under the Loan Documents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no litigation or proceedings are pending or threatened (including proceedings under
Title&nbsp;11 of the United States Code) against Borrower, Guarantor or the Property, which
litigation or proceeding is material; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all representations and warranties made by Borrower to the Banks herein and
otherwise in connection with the Loans are accurate in all material respects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <U><B>Advances by Banks</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If a Bank (a &#147;<U>Defaulting Bank</U>&#148;) defaults in making any advance or paying
any other sum due and payable by it hereunder, such sum together with interest thereon at
the interest rate applicable to such borrowing from the date such amount was due until
repaid (such sum and interest thereon as aforesaid referred to, collectively, as the
&#147;<U>Bank Default Obligation</U>&#148;) shall be payable by the Defaulting Bank (i)&nbsp;to any Bank
which elects, at its sole option (and with no obligation to do so), to fund the amount which
the Defaulting Bank failed to fund or (ii)&nbsp;to Agent or any other Bank which under the terms
of this Agreement is entitled to reimbursement from the Defaulting Bank for the amounts
advanced or expended. Notwithstanding any provision hereof to the contrary, until such time
as a Defaulting Bank has repaid the Bank Default Obligation in full, all amounts which would
otherwise be distributed to the Defaulting Bank shall instead be applied first to repay the
Bank Default Obligation (to be applied first to interest at the Federal Funds Rate and then
to principal) until the Bank Default Obligation has been repaid in full (whether by such
application or by cure by the Defaulting Bank), whereupon such Bank shall no longer be a
Defaulting Bank. Any interest collected from Borrower on account of principal advanced by
any Bank(s) on behalf of a Defaulting Bank shall be paid to the Bank(s) who made such
advance and shall be credited against the Defaulting Bank&#146;s obligation to pay interest on
the amount advanced at the Federal Funds Rate. If no other Bank funds the amount which the
Defaulting Bank was obligated to fund, then a portion of the Defaulting Bank&#146;s indebtedness
hereunder equal to the Bank Default Obligation shall be subordinated to the indebtedness of
Borrower to the Banks (other than the Defaulting Bank) and shall be repaid only after
payment in full of all other indebtedness hereunder. The provisions of this Section shall
apply and be effective regardless of whether an Event of Default occurs and is then
continuing, and notwithstanding (i)&nbsp;any other provision of this Agreement to the contrary or
(ii)&nbsp;any instruction of Borrower as to its desired application of payments. Additionally, a
Defaulting Bank&#146;s right to vote on matters which are subject to the consent or approval of
the Required Banks (other than the Defaulting Bank) shall be suspended until it ceases to be
a Defaulting Bank, and during any such period in which a Defaulting Bank&#146;s voting rights
have been suspended the Required Banks shall be the requisite percentage of all other
entities comprising the Banks. Agent shall be
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">entitled to (i)&nbsp;withhold or set off, and to apply to the payment of the Bank Default
Obligation any amounts to be paid to such Defaulting Bank under this Agreement, and
(ii)&nbsp;bring an action or suit against such Defaulting Bank in a court of competent
jurisdiction to recover the Bank Default Obligation and, to the extent such recovery would
not fully compensate Bank (other than the Defaulting Bank) for the Defaulting Bank&#146;s breach
of this Agreement, to collect damages. In addition, the Defaulting Bank shall indemnify,
defend and hold Agent and each of the other Banks harmless from and against any and all
claims, actions, liabilities, damages, costs and expenses (including attorneys&#146; fees and
expenses), plus interest thereon at the Default Rate, for funds advanced by Agent or any
other Bank on account of the Defaulting Bank or any other damages such entities may sustain
by reason of the Defaulting Bank&#146;s failure or refusal to abide by its obligations under this
Agreement. If a Bank becomes a Defaulting Bank, Borrower may find a replacement Bank and
require the Defaulting Bank to assign its interests to such replacement in accordance with
the terms of Section&nbsp;10.1 of this Agreement provided that there shall be deducted from the
amount that would otherwise be paid to the Defaulting Bank an amount equal to the Bank
Default Obligation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower hereby authorizes each Bank to make an advance to Agent for payment of the
Commitment Fee and reimbursement of all charges, costs and expenses incurred by Agent in
connection with the Loan, including, but not limited to, (i)&nbsp;any points, loan fees, service
charges, commitment fees or other fees due to Agent in connection with the Loan; (ii)&nbsp;all
title examination, survey, escrow, filing, search, recording and registration fees and
charges; (iii)&nbsp;all documentary stamp and other taxes and charges imposed by law on the
issuance or recording of any of the Loan Documents; (iv)&nbsp;all appraisal fees; (v)&nbsp;all
reasonable fees and disbursements of legal counsel engaged by Agent in connection with the
origination, negotiation, document preparation, consummation and administration of the Loan
and all reasonable fees and disbursements of legal counsel engaged by the Agent in
connection with the enforcement of this Agreement or any of the Loan Documents, which shall
also include reasonable attorneys&#146; fees and time charges of attorneys who may be employees
of the Agent or any affiliate of the Agent; and (vi)&nbsp;any amounts required to be paid by
Borrower under this Agreement, the Mortgages or any Loan Document after the occurrence of an
Event of Default (all of which are herein referred to as &#147;<U>Loan Expenses</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <U><B>Expenses and Advances Secured by Mortgages</B></U>. Any and all advances or payments made
by the Banks hereunder, from time to time, and any amounts expended by Agent pursuant to this
Agreement and all other Loan Expenses, as and when advanced or incurred, shall be deemed to have
been disbursed as part of the Loan and be and become secured and guaranteed by the Loan Documents
to the same extent and effect as if the terms and provisions of this Agreement were set forth
therein, whether or not the aggregate of such indebtedness shall exceed the face amount of the
Note.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <U><B>Acquiescence not a Waiver</B></U>. To the extent that Agent may have acquiesced (whether
intentionally or unintentionally) in the Borrower&#146;s failure to comply with and satisfy any
condition precedent to the Loan Closing or to the disbursement of the Loan Proceeds, such
acquiescence shall not constitute a waiver by Agent of any condition precedent set forth in this
Agreement, and Agent at any time thereafter may require the Borrower to comply with and satisfy all
conditions and requirements of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <U><B>Agent&#146;s Action for Agent&#146;s Own Protection Only</B></U>. The authority herein conferred
upon Agent and any action taken by Agent or its agents or employees will be taken by Agent and by
its agents or employees for their own protection and that of the Banks only, and neither Agent nor
its agents or employees shall be deemed to have assumed any responsibility to Borrower or Guarantor
or any other person or entity with respect to any such action herein authorized or taken by them.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 8</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>FURTHER AGREEMENTS OF BORROWER</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <U><B>Furnishing Information</B></U>. Borrower will:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Furnish to Agent: (i)&nbsp;annual audited consolidated financial statements of Borrower
and Guarantor prepared in accordance with GAAP within 120&nbsp;days after the end of Borrower&#146;s
and the Guarantor&#146;s fiscal year prepared by a regional independent public accountants (which
accountant&#146;s opinion shall be unqualified), satifactory to Agent; (ii)&nbsp;within 60&nbsp;days after
the close of each quarterly accounting period in each fiscal year, the consolidated balance
sheet of Borrower and the Guarantor as of the end of such quarterly period and the related
consolidated statements of income, cash flow and retained earnings for such quarterly period
and for the elapsed portion of the fiscal year ended with the last day of such quarterly
period, each prepared in accordance with GAAP; (iii)&nbsp;quarterly operating statements
(prepared on a basis consistent with that used in the preparation of the GAAP consolidated
financial statements of Borrower and the Guarantor) for each Property showing the most
recently ended fiscal quarter and the fiscal year to date, and the Net Operating Income for
the most recently completed fiscal quarter and 12&nbsp;month period, within 60&nbsp;days of the end of
each fiscal quarter for the quarterly operating statements, and within 120&nbsp;days of the end
of each fiscal year for the annual operating statements, and (iv)&nbsp;copies of all of
Borrower&#146;s and the Guarantor&#146;s quarterly and annual filings with the Securities and Exchange
Commission and all shareholder reports and letters to Borrower&#146;s and the Guarantor&#146;s
partners and shareholders and all other publicly released information promptly after their
filing or mailing;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Within 60&nbsp;days after the end of each fiscal quarter, furnish Agent certified rent
rolls of all properties owned by the Borrower, as of the last day of such period in a form
reasonable satisfactory to Agent;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly notify Agent and each Bank of any condition or event which constitutes (or
which, with the giving of notice or lapse of time, or both, would constitute) an Event of
Default, and of any material adverse change in the financial condition of Borrower or
Guarantor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Maintain a standard and modern system of accounting in accordance with generally
accepted accounting principles, consistently applied;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Permit Agent or any of its agents or representatives to have access to and to
examine and copy and make abstracts from all books and records regarding the Property at any
time or times hereafter during business hours.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <U><B>Compliance with Covenants; Prohibition Against Additional Recordings</B></U>. Borrower
will comply with all recorded covenants affecting the Property. Borrower will not record or permit
to be recorded any document, instrument, agreement or other writing against the Property without
the prior written consent of Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <U><B>Property Accounts</B></U>. Borrower will set up and maintain all operating accounts and
other accounts related to the Property with Agent and shall maintain monthly minimum balances
sufficient to cover demand deposit account activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <U><B>Distributions</B></U>. Borrower shall not make any distributions to its members, partners
or shareholders, as the case may be, of any revenue received by or on behalf of Borrower from the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ownership and operation of the Property unless or until the Loan and all interest accrued
thereon, the Loan Expenses and other amounts due the Banks hereunder have been paid in full.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <U><B>Further Assurance</B></U>. Borrower, on request of Agent, from time to time, will execute
and deliver such documents as may be necessary to perfect and maintain perfected as valid liens
upon the Property and the personal property located thereon, the liens granted to Agent pursuant to
this Agreement or any of the other loan Documents, and to fully consummate the transactions
contemplated by this Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 9</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>CASUALTIES AND CONDEMNATION</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <U><B>Application of Insurance Proceeds and Condemnation Awards</B></U>. The proceeds of any
insurance policies collected or claims as a result of any loss or damage to any portion of the
Property resulting from fire, vandalism, malicious mischief or any other casualty or physical harm
and any awards, judgments or claims resulting from the exercise of the power of condemnation or
eminent domain shall be applied as provided in the Mortgages. Borrower shall not settle and adjust
any claims under policies of insurance without Agent&#146;s prior written consent, except as provided in
the Mortgages.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 10</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>ASSIGNMENTS, SALE AND ENCUMBRANCES</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <U><B>Bank Assignments, Participations</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U><B>Assignments</B></U>. Any Bank may, with the prior written consent of Agent, at any
time assign and delegate to one or more commercial banks or other financial institutions
(any such entity to which such an assignment and delegation is to be made being herein
called an &#147;<U>Assignee</U>&#148;) all or any fraction of such Bank&#146;s Loans (which assignment and
delegation shall be of a constant, and not a varying, percentage of all the assigning Bank&#146;s
Loans) in a minimum aggregate amount equal to the lesser of (i)&nbsp;the amount of the assigning
Bank&#146;s Pro Rata Share of the Loans and (ii)&nbsp;Two Million and 00/100 Dollars ($2,000,000.00);
<U>provided</U> that Borrower and the Agent shall be entitled to continue to deal solely
and directly with such Bank in connection with the interests so assigned and delegated to an
Assignee until the date when all of the following conditions shall have been met:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) five Business Days (or such lesser period of time as Agent and the
assigning Bank shall agree) shall have passed after written notice of such
assignment and delegation, together with payment instructions, addresses and
related information with respect to such Assignee, shall have been given to the
Borrower and Agent by such assigning Bank and the Assignee,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the assigning Bank and the Assignee shall have executed and delivered to
Borrower and the Agent an assignment agreement substantially in the form of
<U>Exhibit&nbsp;&#147;D&#148;</U> (an &#147;<U>Assignment Agreement</U>&#148;), together with any
documents required to be delivered thereunder, which Assignment Agreement shall
have been accepted by Agent, and
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) except in the case of an assignment by a Bank to one of its affiliates,
the assigning Bank or the Assignee shall have paid Agent a processing fee of Three
Thousand Five Hundred and 00/100 Dollars ($3,500.00).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">From and after the date on which the conditions described above have been met, (A)&nbsp;such
Assignee shall be deemed automatically to have become a party hereto and, to the extent that
rights and obligations hereunder have been assigned and delegated to such Assignee pursuant
to such Assignment Agreement, shall have the rights and obligations of a Bank hereunder, and
(B)&nbsp;the assigning Bank, to the extent that rights and obligations hereunder have been
assigned and delegated by it pursuant to such Assignment Agreement, shall be released from
its obligations hereunder arising from and after the effective date of such assignment.
Within five Business Days after effectiveness of any assignment and delegation, Borrower
shall execute and deliver to Agent (for delivery to the Assignee and the Assignor, as
applicable) a new Note in the principal amount of the Assignee&#146;s Pro Rata Share of the Loans
and, if the assigning Bank has retained a portion of the Loans, a replacement Note in the
principal amount of the Pro Rata Share of the Loans retained by the assigning Bank (such
Note to be in exchange for, but not in payment of, the predecessor Note held by such
assigning Bank). Each such Note shall be dated the effective date of such assignment. The
assigning Bank shall mark the predecessor Note &#147;exchanged&#148; and deliver it to Borrower.
Accrued interest on that part of the predecessor Note being assigned shall be paid as
provided in the Assignment Agreement. Accrued interest and fees on that part of the
predecessor Note not being assigned shall be paid to the assigning Bank. Accrued interest
and accrued fees shall be paid at the same time or times provided in the predecessor Note
and in this Agreement. Any attempted assignment and delegation not made in accordance with
this Section&nbsp;10.1.(a) shall be null and void.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U><B>Participations</B></U>. Any Bank may at any time sell to one or more commercial
banks or other financial institutions participating interests in any Loan owing to such
Bank, the Note held by such Bank, the Loans of such Bank, or any other interest of such Bank
hereunder (any Person purchasing any such participating interest being herein called a
&#147;<U>Participant</U>&#148;). In the event of a sale by a Bank of a participating interest to a
Participant, (i)&nbsp;such Bank shall remain the holder of its Note for all purposes of this
Agreement, (ii)&nbsp;Borrower and Agent shall continue to deal solely and directly with such Bank
in connection with such Bank&#146;s rights and obligations hereunder, and (iii)&nbsp;all amounts
payable by Borrower shall be determined as if such Bank had not sold such participation and
shall be paid directly to such Bank. No Participant shall have any direct or indirect
voting rights hereunder and participants shall not have the right to further participate
their interests. Each Bank agrees to incorporate the requirements of the preceding sentence
into each participation agreement which such Bank enters into with any Participant.
Borrower agrees that if amounts outstanding under this Agreement and the Notes are due and
payable (as a result of acceleration or otherwise), each Participant shall be deemed to have
the right of setoff in respect of its participating interest in amounts owing under this
Agreement, any Note; <U>provided</U> that such right of setoff shall be subject to the
obligation of each Participant to share with the Banks, and the Banks agree to share with
each Participant, as provided herein. Borrower also agrees that each Participant shall be
entitled to the benefits of Article&nbsp;4 hereof as if it were a Bank (<U>provided</U> that no
Participant shall receive any greater compensation pursuant to such Article&nbsp;4 than would
have been paid to the participating Bank if no participation had been sold).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <U><B>Prohibition of Assignments and Encumbrances by Borrower</B></U>. Except as expressly
provided in the Mortgages, Borrower, without the prior written consent of Agent, shall not create,
effect, consent to, attempt, contract for, agree to make, suffer or permit any Prohibited Transfer
(as defined in the Mortgages).
</DIV>


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</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <U><B>Partial Releases of Property</B></U>. The Borrower shall be entitled to a partial
release from the lien of a Mortgage of each Property upon payment of a principal payment on the
Loan, in addition to all scheduled payments of principal, in the amount shown for the applicable
Property in Schedule&nbsp;10.1 attached. Any such principal payment shall be applied to the outstanding
principal balance of the Loans, on a pro-rata basis, and, at Borrower&#146;s request, the amount of the
regularly scheduled payments of principal due thereafter shall be adjusted to the amount necessary
to amortize the remaining principal balance over the remainder of the original amortization period.
Upon receipt of such payment, the Agent shall execute and record a discharge of the Mortgage
encumbering the applicable Property.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 11</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>EVENTS OF DEFAULT BY BORROWER</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 <U><B>Event of Default Defined</B></U>. The occurrence of any one or more of the following
shall constitute an Event of Default, and any Event of Default which may occur hereunder shall
constitute an Event of Default under each of the other Loan Documents:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower fails to pay (i)&nbsp;any installment of principal or interest payable pursuant
to the Note within ten (10)&nbsp;days after written notice from the Agent that such installment
is past due, or (ii)&nbsp;any other amount payable to the Banks under the Note, this Agreement or
any of the other Loan Documents within twenty (20)&nbsp;days after written notice from the Agent
that such amount is past due in accordance with the terms hereof or thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Borrower fails to perform or cause to be performed any other obligation or observe
any other condition, covenant, term, agreement or provision required to be performed or
observed by Borrower under the Note, this Agreement or any of the other Loan Documents not
otherwise described in Sections&nbsp;11.1(a), or (c)&nbsp;through (p); provided, however, that if the
Note, this Agreement or other applicable Loan Document does not provide for a specific
grace, notice or cure period, and further provided that if such failure by its nature can be
cured, then so long as the continued operation and safety of the Property, and the priority,
validity and enforceability of the liens created by the Mortgages or any of the other Loan
Documents and the value of the Property are not impaired, threatened or jeopardized,
Borrower shall have a period (the &#147;<U>Cure Period</U>&#148;) of thirty (30)&nbsp;days after Borrower
obtains actual knowledge of such failure or receives written notice of such failure to cure
the same or, if the failure is of a kind which cannot be cured within thirty (30)&nbsp;days, if
Borrower undertakes to cure the failure within thirty (30)&nbsp;days after Borrower obtains
actual knowledge of such failure or receives written notice of such failure and thereafter
diligently pursues such cure, the Cure Period shall be extended for a reasonable time
necessary to complete such cure, and an Event of Default shall not be deemed to exist during
the Cure Period;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The existence of any inaccuracy or untruth in any material respect in any
representation or warranty contained in this Agreement or any of the other Loan Documents or
of any statement or certification as to facts delivered to Agent by Borrower or Guarantor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The occurrence of a Prohibited Transfer;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The existence of any collusion, fraud, dishonesty or bad faith by or with the
acquiescence of Borrower or Guarantor which in any way relates to or affects the Loans or
the Property;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Borrower or Guarantor (i)&nbsp;files a voluntary petition in bankruptcy or is
adjudicated a bankrupt or insolvent or files any petition or answer seeking any
reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar
relief under the present or any future federal, state, or other statute or law, or (ii)
seeks or consents to or acquiesces in the appointment of any trustee, receiver or similar
officer of Borrower or of all or any substantial part of the property of Borrower or
Guarantor or any of the Property; or all or a substantial part of the assets of Borrower or
Guarantor are attached, seized, subjected to a writ or distress warrant or are levied upon
unless the same is released or located within ninety (90)&nbsp;days;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The commencement of any involuntary petition in bankruptcy against Borrower or
Guarantor or the institution against Borrower or Guarantor of any reorganization,
arrangement, composition, readjustment, dissolution, liquidation or similar proceedings
under any present or future federal, state or other statute or law, or the appointment of a
receiver, trustee or similar officer for all or any substantial part of the property of
Borrower or Guarantor, which shall remain undismissed or undischarged for a period of ninety
(90)&nbsp;days;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The dissolution, unless corrected promptly within the time permitted by applicable
law, or termination of Borrower or Guarantor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The occurrence of an &#147;Event of Default&#148; under any of the Notes, the Mortgages or
any of the other Loan Documents; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Nonpayment by Borrower of any Rate Management Obligation when due or the breach by
Borrower of any term, provision or condition contained in any Rate Management Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 12</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>AGENT&#146;S REMEDIES UPON EVENT OF DEFAULT</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 <U><B>Remedies Conferred upon Agent</B></U>. Upon the occurrence of any Event of Default,
Agent, in addition to all remedies conferred upon Agent by law and by the terms of the Note, the
Mortgages and the other Loan Documents, may, and at the direction of the Required Banks shall, and
upon occurrence of an Event of Default described in Section&nbsp;11.1(j) shall, pursue any one or more
of the following remedies concurrently or successively, it being the intent hereof that none of
such remedies shall be to the exclusion of any others:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Declare the Notes to be due and payable forthwith, without presentment, demand,
protest or other notice of any kind, all of which Borrower hereby expressly waives, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Exercise or pursue any other remedy or cause of action permitted at law or in
equity or under this Agreement or any other Loan Document, including, but not limited to,
foreclosure of the Mortgages and enforcement of all Loan Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 <U><B>Right of Banks to Make Advances to Cure Event of Defaults; Obligatory Advances</B></U>.
If an Event of Default shall occur as a result of Borrower&#146;s failure to perform any of its
covenants or agreements herein or in any of the other Loan Documents contained, Agent may (but
shall not be required to) perform any of such covenants and agreements, and any amounts expended by
Agent in so doing, and any amounts expended by Agent pursuant to Section&nbsp;12.1 hereof and any
amounts advanced by the Banks pursuant to this Agreement shall be deemed advanced by the Banks
under an obligation to do so regardless of the identity of the person or persons to whom said funds
are disbursed. Amounts advanced
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">by the Banks to protect their security for the Loan are obligatory advances hereunder and
shall constitute additional indebtedness payable on demand and evidenced and secured by the Loan
Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 <U><B>Attorneys&#146; Fees</B></U>. Borrower will pay Agent&#146;s reasonable attorneys&#146; fees and costs
in connection with the negotiation, preparation, administration and enforcement of this Agreement
and the other Loan Documents, which shall also include reasonable attorneys&#146; fees and time charges
of attorneys who may be employees of the Agent or any affiliate of the Agent; without limiting the
generality of the foregoing, if at any time or times hereafter Agent employs counsel for advice or
other representation with respect to any matter concerning Borrower, this Agreement, the Property
or the Loan Documents or if the Banks employ one or more counsel to protect, collect, lease, sell,
take possession of, or liquidate any of the Property, or to attempt to enforce or protect any
security interest or lien or other right in any of the Property or under any of the Loan Documents,
or to enforce any rights of the Banks or obligations of Borrower or any other person, firm or
corporation which may be obligated to the Banks by virtue of this Agreement or under any of the
Loan Documents or any other agreement, instrument or document, heretofore or hereafter delivered to
Agent in furtherance hereof, then in any such event, all of the attorneys&#146; fees arising from such
services, and any expenses, costs and charges relating thereto, shall constitute an additional
indebtedness owing by Borrower to the Banks payable on demand and evidenced and secured by the Loan
Documents; provided, however, that in connection with any enforcement proceedings, the Agent shall
be entitled to recover attorney fees only in the event it is the prevailing party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 <U><B>No Waiver</B></U>. No failure by Agent to exercise, or delay by Agent in exercising, any
right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, power or privilege hereunder preclude any other or further exercise
thereof, or the exercise of any other right, power or privilege. The rights and remedies provided
in this Agreement and in the Loan Documents are cumulative and not exclusive of each other or of
any right or remedy provided at law or in equity. No notice to or demand on Borrower in any case,
in itself, shall entitle Borrower to any other or further notice or demand in similar or other
circumstances or constitute a waiver of the rights of Agent to any other or further action in any
circumstances without notice or demand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5 <U><B>Default Rate</B></U>. From and after the date of any Event of Default until the date on
which such Event of Default is cured or waived, interest on funds outstanding hereunder shall
accrue at the Default Rate and be payable on demand. The failure of Agent to charge interest at
the Default Rate shall not be evidence of the absence of an Event of Default or waiver of an Event
of Default by Agent.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 13</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>THE AGENT</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 <U><B>Appointment and Authorization</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Bank hereby irrevocably (subject to Section&nbsp;13.9) appoints, designates and
authorizes Agent to take such action on its behalf under the provisions of this Agreement
and each other Loan Document and to exercise such powers and perform such duties as are
expressly delegated to it by the terms of this Agreement or any other Loan Document,
together with such powers as are reasonably incidental thereto. Notwithstanding any
provision to the contrary contained elsewhere in this Agreement or in any other Loan
Document, Agent shall not have any duty or responsibility except those expressly set forth
herein, nor shall Agent have or be deemed to have any fiduciary relationship with any Bank,
and no implied covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or any other Loan Document or otherwise exist against
Agent. Without limiting the generality of the foregoing sentence, the use of the term
&#147;agent&#148; herein and in other Loan Documents with
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">reference to the Agent is not intended to connote any fiduciary or other implied (or
express) obligations arising under agency doctrine of any applicable law. Instead, such
term is used merely as a matter of market custom, and is intended to create or reflect only
an administrative relationship between independent contracting parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Agent may execute any of its duties under this Agreement or any other Loan Document
by or through agents, employees or attorneys-in-fact and shall be entitled to advice of
counsel concerning all matters pertaining to such duties. Agent shall not be responsible
for the negligence or misconduct of any agent or attorney-in-fact that it selects in the
absence of gross negligence or willful misconduct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 <U><B>Actions Requiring Consent and Approval</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Agent may amend or waive any of the provisions of this Agreement or any of the
other Loan Documents, or consent to any departure by any party to the Loan Documents there
from which amendment, waiver or consent is intended to be within Agent&#146;s discretion or
determination, or otherwise in Agent&#146;s reasonable determination shall not result in a
material adverse change. Otherwise, no such amendment, waiver or consent shall be effective
unless in writing, signed by the Required Banks, and Borrower or the applicable party to the
Loan Documents, as the case may be, and acknowledged by Agent and each such waiver or
consent shall be effective only in the specific instance and for the specific purpose for
which given. Notwithstanding the foregoing, Required Lender consent shall be required for
the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Agent shall not, without the prior approval or consent of the Required
Banks, appoint a successor Agent, provided that no Bank shall unreasonably withhold
its consent to the appointment of a successor Agent and further provided that
nothing contained in this Section&nbsp;13.2 shall limit the rights of Agent under
Section&nbsp;13.9 in the event a successor Agent is not appointed within thirty (30)
days of the retiring Agent giving notice of its resignation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Waive any non-monetary Event of Default on the part of the Borrower of
Guarantor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Agent shall not undertake any of the following actions without the prior approval
or consent of each Bank:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Extend the Maturity Date or forgive all or any portion of the principal
amount of the Loan or any accrued interest thereon, or any other amendment of this
Agreement or the other Loan Documents which would reduce the underlying interest
rate or the rate at which fees are calculated or forgive any loan fee, or extend
the time of payment of any principal, interest or fees;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Amend the recourse provisions in the Guaranty;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Modify the percentage specified in the definition of Required Banks;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Increase of the amount of the Loan;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Amend this Section&nbsp;13.2(b);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Waive a monetary default under the Loan Documents;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Amend any of the conditions to the Loan Closing set forth in Article&nbsp;6
of this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Release all or any portion of any collateral for the Loan except in
accordance with the terms and provisions of Section&nbsp;13.10 hereof or any other Loan
Document; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Consent to any additional indebtedness of Borrower secured by all or any
portion of the Property, except as may be provided for in the Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No provision of Article&nbsp;13 or other provision of this Agreement affecting the Agent
in its capacity as such shall be amended, modified or waived without the written consent of
the Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In addition to the required consents or approvals referred to in subsections (a),
(b)&nbsp;and (c)&nbsp;above, Agent may, but shall not be required to, at any time request instructions
from the Required Banks with respect to any actions or approvals which, by the terms of this
Agreement or of any of the Loan Documents, Agent is permitted or required to take or to
grant without instructions from the Required Banks, and if such instructions are promptly
requested, Agent shall be absolutely entitled to refrain from taking any action or to
withhold any approval and shall not be under any liability whatsoever for refraining from
taking any action or withholding any approval under any of the Loan Documents until it shall
have received such instructions from the Required Banks. Without limiting the foregoing, no
Bank shall have any right of action whatsoever against Agent as a result of Agent acting or
refraining from acting under this Agreement or any of the other Loan Documents in accordance
with the instructions of the Required Banks. Agent shall promptly notify each Bank at any
time that the Required Banks have instructed Agent to act or refrain from acting pursuant
hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If an Event of a Default occurs hereunder or under any of the Loan Documents, Agent
may make the determination to accelerate the Loan and exercise or refrain from exercising
remedies hereunder (and Agent shall do so at the written direction of the Required Banks).
Notwithstanding the foregoing, Agent may take any action it deems to be necessary from time
to time to protect the collateral.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each Bank authorizes and directs Agent to enter into the Loan Documents other than
this Agreement. Each Bank agrees that any action taken by Agent at the direction or with
the consent of the Required Bank in accordance with the provisions of this Agreement or any
other Loan Document, and the exercise by Agent at the direction or with the consent of the
Required Banks of the powers set forth herein or therein, together with such other powers as
are reasonably incidental thereto, shall be authorized and binding upon all of the Banks,
except for actions specifically requiring the approval of all of the Banks. All
communications from Agent to the Banks requesting a Bank&#146;s determination, consent, approval
or disapproval (i)&nbsp;shall be given in the form of a written notice to each Bank, (ii)&nbsp;shall
be accompanied by a description of the matter or item as to which such determination,
approval, consent or disapproval is requested, or shall advise each Bank where such matter
or item may be inspected, or shall otherwise describe the matter or issue to be resolved,
(iii)&nbsp;shall include, if reasonably requested and to the extent not previously provided
written materials and a summary of all oral information provided to Agent by Borrower in
respect of the matter or issue to be resolved, and (iv)&nbsp;shall include Agent&#146;s recommended
course of action or determination in respect thereof. Each Bank shall reply promptly, but
in any event within ten (10)&nbsp;days after receipt of the request therefor from Agent (the
&#147;<U>Bank Reply Period</U>&#148;). Unless written notice to Agent that a Bank objects to the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">recommendation or determination of Agent (together with a written explanation of the
reasons behind such objection) within the Bank Reply Period, such party shall be deemed to
have approved of or consented to such recommendation or determination. With respect to
decisions requiring the approval of the Required Banks or all of the Banks, Agent shall
submit its recommendation or determination for approval of or consent to such recommendation
or determination to each Bank and upon receiving the required approval or consent shall, to
the extent feasible, follow the course of action or determination recommended by Agent or
such other course of action recommended by the Required Banks, and each non-responding party
shall be deemed to have concurred with such recommended course of action.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Until such time as Borrower is otherwise instructed in writing by the Agent or the
Required Banks, Borrower may rely on the direction, consent or approval of Agent as the
direction, consent or approval of the Banks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 <U><B>Liability of Agent</B></U>. None of Agent nor any of its directors, officers, employees
or agents shall (i)&nbsp;be liable for any action taken or omitted to be taken by any of them under or
in connection with this Agreement or any other Loan Document or the transactions contemplated
hereby (except to the extent resulting from its own gross negligence or willful misconduct in
connection with the duties expressly set forth herein as determined by a final, non-appealable
judgment by a court of competent jurisdiction), or (ii)&nbsp;be responsible in any manner to any of the
Banks or any Participant for any recital, statement, representation or warranty made by Borrower,
Guarantor, or any member, partner, shareholder or officer of Borrower or Guarantor, contained in
this Agreement or in any other Loan Document, or in any certificate, report, statement or other
document referred to or provided for in, or received by the Agent under or in connection with, this
Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document (or the creation, perfection or
priority of any lien, mortgage or security interest therein), or for any failure of Borrower or any
other party to any Loan Document to perform its obligations hereunder or thereunder. Agent shall
not be under any obligation to any Bank to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this Agreement or any other
Loan Document, or to inspect the properties, books or records of Borrower or Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4 <U><B>Reliance by Agent</B></U>. Agent shall be entitled to rely, and shall be fully protected
in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter,
telegram, facsimile, telex or telephone message, statement or other document or conversation
believed by it to be genuine and correct and to have been signed, sent or made by the proper person
or party, and upon advice and statements of legal counsel (including counsel to Borrower),
independent accountants and other experts selected by the Agent. Agent shall be fully justified in
failing or refusing to take any action under this Agreement or any other Loan Document unless it
shall first receive such advice or concurrence of the Required Banks as it deems appropriate and,
if it so requests, confirmation from the Banks of their obligation to indemnify the Agent against
any and all liability and expense which may be incurred by it by reason of taking or continuing to
take any such action. Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement or any other Loan Document in accordance with a request or consent of
the Required Banks and such request and any action taken or failure to act pursuant thereto shall
be binding upon all of the Banks. For purposes of determining compliance with the conditions
specified in Section&nbsp;13, each Bank that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter required thereunder
to be consented to or approved by or acceptable or satisfactory to a Bank unless the Agent shall
have received written notice from such Bank prior to the proposed Loan Closing Date specifying its
objection thereto.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5 <U><B>Notice of Default</B></U>. Agent shall not be deemed to have knowledge or notice of the
occurrence of any Event of Default except with respect to defaults in the payment of principal,
interest and fees required to be paid to Agent for the account of the Banks, unless Agent shall
have received written notice from a Bank or Borrower referring to this Agreement, describing such
Event of Default and stating that such notice is a &#147;notice of default&#148;. Agent will notify the
Banks of its receipt of any such notice. Agent shall take such action with respect to such Event
of Default as may be requested by the Required Banks in accordance with this Section&nbsp;13;
<U>provided</U> that unless and until Agent has received any such request, Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with respect to such
Event of Default as it shall deem advisable or in the best interest of the Banks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6 <U><B>Credit Decision</B></U>. Each Bank acknowledges that Agent has not made any
representation or warranty to it, and that no act by Agent hereafter taken, including any review of
the affairs of Borrower and Guarantor, shall be deemed to constitute any representation or warranty
by Agent to any Bank as to any matter, including whether the Agent has disclosed material
information in its possession. Each Bank represents to Agent that it has, independently and
without reliance upon Agent and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of Borrower and Guarantor, and made
its own decision to enter into this Agreement and to extend credit to Borrower hereunder. Each
Bank also represents that it will, independently and without reliance upon Agent and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit
analysis, appraisals and decisions in taking or not taking action under this Agreement and the
other Loan Documents, and to make such investigations as it deems necessary to inform itself as to
the business, prospects, operations, property, financial and other condition and creditworthiness
of Borrower. Except for notices, reports and other documents expressly herein required to be
furnished to the Banks by Agent, Agent shall not have any duty or responsibility to provide any
Bank with any credit or other information concerning the business, prospects, operations, property,
financial or other condition or creditworthiness of Borrower which may come into the possession of
the Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7 <U><B>Bank Indemnification</B></U>. Whether or not the transactions contemplated hereby are
consummated, the Banks shall indemnify upon demand Agent and its directors, officers, employees and
agents (to the extent not reimbursed by or on behalf of Borrower and without limiting the
obligation of Borrower to do so), pro rata, from and against any and all actions, causes of action,
suits, losses, liabilities, damaged and expenses, including attorneys&#146; fees and expenses
(collectively, the &#147;<U>Indemnified Liabilities</U>&#148;); provided that no Bank shall be liable for
any payment to Agent of any portion of the Indemnified Liabilities to the extent determined by a
final, non-appealable judgment by a court of competent jurisdiction to have resulted from Agent&#146;s
gross negligence or willful misconduct. No action taken in accordance with the directions of the
Required Banks shall constitute gross negligence or willful misconduct for purposes of this
Agreement. Without limitation of the foregoing, each Bank shall reimburse Agent upon demand for
its ratable share of any costs or out-of-pocket expenses (including Loan Expenses) incurred by the
Agent in connection with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or
legal advice in respect of rights or responsibilities under, this Agreement, any other Loan
Document, or any document contemplated by or referred to herein, to the extent that the Agent is
not reimbursed for such expenses by or on behalf of Borrower. The undertaking in this Section
shall survive repayment of the Loans, cancellation of the Notes, any foreclosure under, or
modification, release or discharge of, any or all of the Loan Documents, termination of this
Agreement and the resignation or replacement of the Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8 <U><B>Agent in Individual Capacity</B></U>. LaSalle and its affiliates may make loans to,
issue letters of credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting or other business
with Borrower and Guarantor as
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">though LaSalle were not Agent hereunder and without notice to or consent of the Banks. The
Banks acknowledge that, pursuant to such activities, LaSalle or its affiliates may receive
information regarding Borrower or Guarantor (including information that may be subject to
confidentiality obligations in favor of Borrower or Guarantor) and acknowledge that Agent shall be
under no obligation to provide such information to them. With respect to their Loans (if any),
LaSalle and its affiliates shall have the same rights and powers under this Agreement as any other
Bank and may exercise the same as though LaSalle were not the Agent, and the terms &#147;Bank&#148; and
&#147;Banks&#148; include LaSalle and its affiliates, to the extent applicable, in their individual
capacities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.9 <U><B>Successor Agent</B></U>. Agent may resign as Agent upon thirty (30)&nbsp;days notice to the
Banks. If Agent resigns under this Agreement, the Required Banks shall, with (so long as no Event
of Default exists) the consent of Borrower (which shall not be unreasonably withheld or delayed),
appoint from among the Banks a successor agent for the Banks. If no successor agent is appointed
prior to the effective date of the resignation of Agent, Agent may appoint, after consulting with
the Banks and Borrower, a successor agent from among the Banks. Upon the acceptance of its
appointment as successor agent hereunder, such successor agent shall succeed to all the rights,
powers and duties of the retiring Agent and the term &#147;Agent&#148; shall mean such successor agent, and
the retiring Agent&#146;s appointment, powers and duties as Agent shall be terminated. After any
retiring Agent&#146;s resignation hereunder as Agent, the provisions of this Section&nbsp;13 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was Agent under this
Agreement. If no successor agent has accepted appointment as Agent by the date which is 30&nbsp;days
following a retiring Agent&#146;s notice of resignation, the retiring Agent&#146;s resignation shall
nevertheless thereupon become effective and the Banks shall perform all of the duties of the Agent
hereunder until such time, if any, as the Required Banks appoint a successor agent as provided for
above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.10 <U><B>Collateral Matters</B></U>. The Banks irrevocably authorize Agent, at its option and in
its discretion, to release any Lien granted to or held by Agent under any Loan Document (i)&nbsp;upon
payment in full of all Loans and all other obligations of Borrower hereunder; (ii)&nbsp;constituting
property sold or to be sold or disposed of as part of or in connection with any disposition
permitted hereunder; or (iii)&nbsp;if approved, authorized or
ratified in writing by all of the Banks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.11 <U><B>Agent May File Proofs of Claim</B></U>. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to Borrower or Guarantor, the Agent (irrespective of whether the
principal of any Loan shall then be due and payable as herein expressed or by declaration or
otherwise and irrespective of whether the Agent shall have made any demand on the Borrower) shall
be entitled and empowered, by intervention in such proceeding or otherwise:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, and all other obligations that are owing and unpaid and
to file such other documents as may be necessary or advisable in order to have the claims of
the Banks and the Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Banks and the Agent and their respective agents and
counsel and all other amounts due the Banks and the Agent hereunder allowed in such judicial
proceedings; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar
official in any such judicial proceeding is hereby authorized by each Bank to make such
payments to the Agent and, in the event that the Agent shall consent to the making of such
payments directly to
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">the Banks, to pay to the Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Agent and its agents and counsel, and any other amounts
due the Agent hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained herein shall be deemed to authorize the Agent to authorize or
consent to or accept or adopt on behalf of any Bank any plan of reorganization, arrangement,
adjustment or composition affecting the Loans or the rights of any Bank or to authorize the
Agent to vote in respect of the claim of any Bank in any such proceeding.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ARTICLE 14</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>MISCELLANEOUS</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 <U><B>Time is of the Essence</B></U>. Borrower agrees that time is of the essence in all of
its covenants under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 <U><B>Agent&#146;s Determination of Facts</B></U>. Agent and/or Banks at all times shall be free to
establish independently to its or their satisfaction and in its or their sole and absolute
discretion the existence or nonexistence of any fact or facts, the existence or nonexistence of
which is a condition of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3 <U><B>Prior Agreements</B></U>. This Agreement and the other Loan Documents, and any other
documents or instruments executed pursuant thereto or contemplated thereby, shall represent the
entire, integrated agreement between the parties hereto with respect to the Loan, and shall
supersede all prior negotiations, representations or agreements pertaining thereto, either oral or
written. This Agreement and any provision hereof shall not be modified, amended, waived or
discharged in any manner other than by a written amendment executed by all parties to this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4 <U><B>Disclaimer by Banks</B></U>. Borrower is not or shall not be an agent of Agent or the
Banks for any purposes, and neither Agent nor the Banks are venture partners with Borrower in any
manner whatsoever. Approvals granted by Agent or the Banks for any matters covered under this
Agreement shall be narrowly construed to cover only the parties and facts identified in any written
approval or, if not in writing, such approvals shall be solely for the benefit of Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5 <U><B>Borrower Indemnification</B></U>. Borrower agrees to defend (with counsel satisfactory
to Lender), protect, indemnify and hold harmless Agent, each Bank, any parent corporation,
affiliated corporation or subsidiary of Agent or any Bank, and each of their respective officers,
directors, employees, attorneys and agents (each, an &#147;<U>Indemnified Party</U>&#148;) from and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs, expenses and distributions of any kind or nature (including, without limitation, the
disbursements and the reasonable fees of counsel for each Indemnified Party thereto, which shall
also include, without limitation, reasonable attorneys&#146; fees and time charges of attorneys who may
be employees of Agent, any Bank or any parent or affiliated corporation of Agent or any Bank),
which may be imposed on, incurred by, or asserted against, any Indemnified Party (whether direct,
indirect or consequential and whether based on any federal, state or local laws or regulations,
including, without limitation, securities, environmental laws and commercial laws and regulations,
under common law or in equity, or based on contract or otherwise) in any manner relating to or
arising out of this Agreement or any of the Loan Documents, or any act, event or transaction
related or attendant thereto, the preparation, execution and delivery of this Agreement, the Notes
and the Loan Documents, the making or issuance and management of the Loans, the use or intended use
of the proceeds of the Loans and the enforcement of Agent and any Bank&#146;s rights and remedies under
this Agreement, the Notes, the Loan Documents, any other instruments and documents delivered
hereunder or
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->34<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">thereunder; provided, however, that Borrower shall not have any obligation hereunder to any
Indemnified Party with respect to disputes between the Banks or between the Banks and the Agent not
arising out of the wrongdoing of the Borrower or matters caused by or resulting from the willful
misconduct or gross negligence of such Indemnified Party. The Indemnified Parties shall give
notice as promptly as reasonably practical to the Borrower in the event they become aware of a
claim or potential claim for which they intend to seek indemnity under the provisions of this
Section&nbsp;14.5. To the extent that the undertaking to indemnify set forth in the preceding sentence
may be unenforceable because it violates any law or public policy, Borrower shall satisfy such
undertaking to the maximum extent permitted by applicable law. Any liability, obligation, loss,
damage, penalty, cost or expense covered by this indemnity shall be paid to such Indemnified Party
on demand, and failing prompt payment, together with interest thereon at the Default Rate from the
date incurred by such Indemnified Party until paid by Borrower, shall be added to the obligations
of Borrower evidenced by the Notes and secured by the collateral securing the Loans. This indemnity
is not intended to excuse Agent or any Bank from performing hereunder. The provisions of this
section shall survive the closing of the Loans, the satisfaction and payment of the Notes and any
cancellation of this Agreement. Borrower shall also pay, and hold Agent and each Bank harmless
from, any and all claims of any brokers, finders or agents claiming a right to any fees in
connection with arranging the Loan. Each Bank hereby represents that it has not employed a broker
or other finder in connection with the Loans. Borrower represents and warrants that no brokerage
commissions or finder&#146;s fees are to be paid in connection with the Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6 <U><B>Captions</B></U>. The captions and headings of various Articles and Sections of this
Agreement and exhibits pertaining hereto are for convenience only and are not to be considered as
defining or limiting in any way the scope or intent of the provisions hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.7 <U><B>Inconsistent Terms and Partial Invalidity</B></U>. In the event of any inconsistency
among the terms hereof (including incorporated terms), or between such terms and the terms of any
other Loan Document, Agent may elect which terms shall govern and prevail. If any provision of
this Agreement, or any paragraph, sentence, clause, phrase or word, or the application thereof, in
any circumstances, is adjudicated by a court of competent jurisdiction to be invalid, the validity
of the remainder of this Agreement shall be construed as if such invalid part were never included
herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.8 <U><B>Gender and Number</B></U>. Any word herein which is expressed in the masculine or neuter
gender shall be deemed to include the masculine, feminine and neuter genders. Any word herein
which is expressed in the singular or plural number shall be deemed, whenever appropriate in the
context, to include the singular and the plural.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.9 <U><B>Notices</B></U>. Any notices, communications and waivers under this Agreement shall be
in writing and shall be (i)&nbsp;delivered in person, (ii)&nbsp;mailed, postage prepaid, either by registered
or certified mail, return receipt requested, or (iii)&nbsp;sent by overnight express carrier, addressed
in each case as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">To Agent:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">LaSalle Bank Midwest National Association</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2600 West Big Beaver Road</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Troy, Michigan 48084</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Commercial Real Estate</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With copies to:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Daniel C. Watson, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dykema Gossett PLLC</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">400 Renaissance Center</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Detroit, Michigan 48243</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">To a Bank:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See notice addresses set forth on Schedule&nbsp;3.1 hereto.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">To Borrower:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agree Limited Partnerhip/Agree Realty Corporation</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">31850 Northwestern Highway</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Farmington Hills, Michigan 48334</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Richard Agree</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy to:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Leon M. Schurgin, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bodman LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Suite&nbsp;500</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">201 W. Big Beaver Road</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Troy, Michigan 48084</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or to any other address as to any of the parties hereto, as such party shall designate in a written
notice to the other party hereto. All notices sent pursuant to the terms of this Section shall be
deemed received (i)&nbsp;if personally delivered, then on the date of delivery, (ii)&nbsp;if sent by
overnight, express carrier, then on the next Business Day immediately following the day sent, or
(iii)&nbsp;if sent by registered or certified mail, then on the earlier of the third Business Day
following the day sent or when actually received.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.10 <U><B>Effect of Agreement</B></U>. The submission of this Agreement and the Loan Documents to
Borrower for examination does not constitute a commitment or an offer by Agent to make a commitment
to lend money to Borrower; this Agreement shall become effective only upon execution by Banks and
delivery hereof by Agent to Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.11 <U><B>Governing Law</B></U>. This Agreement has been negotiated, executed and delivered at
Troy, Michigan, and shall be construed and enforced in accordance with the laws of the State of
Michigan, without reference to the choice of law or conflicts of law principles of the State.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.12 <U><B>Consent to Jurisdiction</B></U><B>. TO INDUCE BANKS TO ACCEPT THE NOTES, BORROWER
IRREVOCABLY AGREES THAT, SUBJECT TO AGENT&#146;S SOLE AND ABSOLUTE ELECTION, ALL ACTIONS OR PROCEEDINGS
IN ANY WAY ARISING OUT OF OR RELATED TO THE LOAN DOCUMENTS WILL BE LITIGATED IN COURTS HAVING SITUS
IN OAKLAND COUNTY, MICHIGAN. BORROWER HEREBY CONSENTS AND SUBMITS TO THE EXTENT PERMITTED BY
APPLICABLE LAW, TO THE JURISDICTION OF ANY COURT LOCATED WITHIN OAKLAND COUNTY, MICHIGAN, WAIVES
PERSONAL SERVICE OF PROCESS UPON BORROWER, AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE
BY REGISTERED MAIL DIRECTED TO BORROWER AT THE ADDRESS STATED HEREIN AND SERVICE SO MADE WILL BE
DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.13 <U><B>Waiver of Jury Trial</B></U><B>. BORROWER, AGENT AND BANKS (BY ACCEPTANCE HEREOF), HAVING
BEEN REPRESENTED BY COUNSEL EACH KNOWINGLY AND VOLUNTARILY WAIVES ANY RIGHT TO A TRIAL BY JURY IN
ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (A)&nbsp;UNDER THIS AGREEMENT OR ANY RELATED
AGREEMENT OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE
FUTURE BE DELIVERED IN CONNECTION WITH THIS AGREEMENT OR (B)&nbsp;ARISING FROM ANY BANKING RELATIONSHIP
EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING WILL BE
TRIED BEFORE A COURT AND NOT BEFORE A JURY. BORROWER AGREES THAT IT WILL NOT ASSERT</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>ANY CLAIM AGAINST AGENT OR BANKS OR ANY OTHER PERSON INDEMNIFIED UNDER THIS AGREEMENT ON ANY
THEORY OF LIABILITY FOR SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.14 <U><B>Counterparts; Facsimile Signatures</B></U>. This Agreement may be executed in any
number of counterparts and by the different parties hereto on separate counterparts and each such
counterpart shall be deemed to be an original, but all such counterparts shall together constitute
but one and the same Agreement. Receipt of an executed signature page to this Agreement by
facsimile or other electronic transmission shall constitute effective delivery thereof. Electronic
records of executed Loan Documents maintained by Agent shall be deemed to be originals thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.15 <U><B>Customer Identification &#151; USA Patriot Act Notice.</B></U> Each Bank and Agent (for
itself and not on behalf of any Bank) hereby notifies Borrower that pursuant to the requirements of
the USA Patriot Act (Title III of Pub. L. 107-56, signed into law October&nbsp;26, 2001) (the
&#147;<U>Act</U>&#148;), and each Bank&#146;s and Agent&#146;s policies and practices, it is required to obtain,
verify and record certain information and documentation that identifies Borrower, which information
includes the name and address of Borrower and such other information that will allow such Bank or
Agent to identify Borrower in accordance with the Act.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>&#091;SIGNATURE PAGE FOLLOWS&#093;</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->37<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>, the Banks and Borrower have caused this Loan Agreement to be executed as
of the day and year first above written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>BORROWER</B>:<BR>
<BR>
<B>AGREE LIMITED PARTNERSHIP</B>, a Delaware limited partnership<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>


<TD colspan="3" style="border-bottom: 0px solid #000000" align="left">By: Agree Realty Corporation, a Maryland corporation
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Its: General Partner&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<tr style="font-size: 2pt">
<TD>&nbsp;</TD>
</tr>

<TR>

    <TD align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="1" style="border-bottom: 1px solid #000000" align="left">/S/ Richard Agree
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Richard Agree&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>AGENT</B>:<BR>
<BR>
<B>LASALLE BANK MIDWEST NATIONAL ASSOCIATION</B>, a national banking association<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Kathleen W. Bozek
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="1" valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Kathleen W. Bozek&nbsp;</TD>

    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="1" valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>THE BANKS:<BR>
<BR>
LASALLE BANK MIDWEST NATIONAL ASSOCIATION</B>, a national banking association<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Kathleen W. Bozek
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="1"  valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Kathleen W. Bozek&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="1" align="left">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>RAYMOND JAMES BANK, FSB</B>, a federal savings bank<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Thomas G. Scott
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="1"  valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Thomas G. Scott&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="1"  valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Senior Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->38<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SCHEDULE&nbsp;3.1</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>THE BANKS AND LOAN AMOUNTS</B></U>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>BANK</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LOAN AMOUNTS</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>PRO RATA SHARE</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">LaSalle Bank
Midwest National Association</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,800,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">59.677419354</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">
2600 West Big Beaver Road<br>
Troy, Michigan 48084<br>
Attn: Commercial Real Estate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Raymond James Bank, FSB</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,000,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">40.322580645</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">710 Carillon Parkway<br>
St. Petersburg, Florida 33716<br>
Attn: Thomas Scott</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SCHEDULE&nbsp;10.1</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>SCHEDULE OF RELEASE PAYMENTS</B></U>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>REQUIRED</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>PRINCIPAL PAYMENT</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>PROPERTY</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>FOR RELEASE</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">6421 West Saginaw<BR>
Delta Township, MI</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,975,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">2643 Kalamazoo<BR>
Grand Rapids, MI</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,780,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">16977 &#038; 17001 Newburgh Road<BR>
Livonia, MI</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,100,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">21790 &#038; 21700 21 Mile Road<BR>
Macomb Township, MI</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,055,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">56805 Van Dyke Avenue<BR>
Shelby Township, MI</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,510,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">25966 Gratiot<BR>
Roseville, MI</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2,750,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">2255 South Jackson Road<BR>
Summit Township, MI</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,630,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->Schedule 10.1 - 1<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>EXHIBIT&nbsp;&#147;A&#148;</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>THE PROPERTY</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Property known as 6421 West Saginaw, Delta Township, MI described as:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Land Situated in the Township of Delta, County of Eaton, State of Michigan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Commencing at the Northeast corner of Section&nbsp;15, T4N, R3W, Delta Township, Eaton County, Michigan;
thence S 00&#176;2719&#147;E 50.00 feet along the centerline of Creyts Road (66&#146; Wide) and the East line of
said Section&nbsp;15; thence S 89&#176;51&#146;50&#147;W 50.00 feet for a PLACE OF BEGINNING; thence S 45&#176;17&#146;45&#147;E 24.11
feet (recorded as Southeast 24.04 feet) to the Westerly right-of-way line of said Creyts Road (66&#146;
Wide); thence S 0002719&#147;E 181.00 feet along said West right-of-way line; thence S 89&#176;51&#146;50&#148; W
182.00 feet; thence S 00&#176;27&#146;19&#147;E 100.00 feet; thence S 89&#176;51&#146;50&#148; W 118.50 feet; thence N 00&#176;27&#146;1 W
246.01 feet; thence S 89&#176;32&#146;41&#148; W 2.50 feet; thence N 00&#176;2719&#147;W 52.00 feet; to the Southerly
right-of-way line of Saginaw Highway (100&#146; Wide); thence N 89&#176;51&#146;50&#148; E 286.00 feet along said South
right-of-way line to the Place of Beginning, being part of the Northeast 1/4 of said Section&nbsp;15.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">TAX IDENTIFICATION NUMBER: 23-040-015-200-220-00
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Property known as 2643 Kalamazoo, Grand Rapids, MI described as:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Land Situated in the City of Grand Rapids, County of Kent, State of Michigan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Part of the Southeast 1/4 of Section&nbsp;8, Town 6 North, Range 11 West, City of Grand Rapids, Kent
County, Michigan, described as: Commencing at the Southeast corner of Section&nbsp;8; thence South
90&#176;00&#146;00&#148; West 690.33 feet along the South line of Section&nbsp;8; thence North 03&#176;48&#146;25&#148; West 50.69
feet to a point on the North right-of-way line of 28th Street and the place of beginning; thence
North 03&#176;48&#146;25&#148; West 149.31 feet parallel to the West line of the Southeast 1/4 of the Southeast
1/4 of Section&nbsp;8; thence South 90&#176;00&#146;00&#148; West 30.00 feet; thence North 03&#176;48&#146;25&#148; West 207.59 feet
along the East line of Oakgrove Cemetery; thence South 89&#176;49&#146;30&#148; East 307.77 feet; thence North
00&#176;10&#146;30&#148; East 30.00 feet; thence North 34&#176;34&#146;57&#148; West 142.24 feet; thence Northeasterly 191.52
feet along a 115.50 foot radius curve to the right, the chord of which bears North 12&#176;55&#146;12&#148; East
170.32 feet; thence North 60&#176;43&#146;14&#148; East 14.10 feet; thence Southeasterly 544.27 feet along a
3769.83 foot radius curve to the right, the chord of which bears South 25&#176;16&#146;02&#148; East 543.80 feet;
thence South 35&#176;21&#146;20&#148; West 225.40 feet along the Northwesterly line of a clear vision
right-of-way; thence Northwesterly 71.70 feet along a 57246.01 foot radius curve to the right, the
chord of which bears North 89&#176;58&#146;00&#148; West 71.70 feet along the North line of 28th Street; thence
North 89&#176;55&#146;50&#148; West 253.76 feet to the point of beginning.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">TAX IDENTIFICATION NUMBER: 41-18-08-400-017
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Property known as 16977 &#038; 17001 Newburgh Road, Livonia, MI described as:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Land Situated in the City of Livonia, County of Wayne, State of Michigan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A parcel of land being a part of the Northeast 1/4 of Section&nbsp;18, Town 1 South, Range 9 East, City
of Livonia, Wayne County, Michigan, more particularly described as: Beginning at a point on the
South line
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->A-1 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of the Six Mile Road (180 feet wide), said point being South 89&#176;58&#146; West 287.73 feet and South
00&#176;02&#146; East 90.00 feet from the Southeast corner of said Section&nbsp;18, Town &#145;I South, Range 9 East,
thence North 89&#176;58&#146; East along said South line 105.24 feet to a point; thence South 00&#176;21&#146;20&#148; East
120.00 feet to a point; thence North 89&#176;58&#146; East 123.00 feet to a point on the West line of
Newburgh Road (120 feet wide); thence South 00&#176;21&#146;20&#148; East along said West line 413.01 feet to a
point; thence South 89&#176;58&#146; West 231.24 feet to a point; thence North 00&#176;02&#146; West 533.00 feet to the
point of beginning.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Together with, and subject to, the rights and benefits over adjacent parcels as disclosed in the
Declaration of Easements, Covenants, Conditions, and Restrictions recorded in Liber 45251, page
151, Wayne County Records.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">TAX IDENTIFICATION NUMBER: 46-069-99-0001-024
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Property known as 21790 &#038; 21700 21 Mile Road, Macomb Township, MI described as:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Land Situated in the Township of Macomb, County of Macomb, State of Michigan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Units 1 and 2, Agree/Macomb Township Condominium, according to the Master Deed recorded in Liber
18821, Page 532, Macomb County Records, and any amendments thereto, and designated as Macomb County
Condominium Subdivision Plan No.&nbsp;1033, together with rights in general common elements and limited
common elements as set forth in the above Master Deed and as described in Act 59 of the Public Acts
of 1978.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">TAX IDENTIFICATION NUMBER: 08-34-228-001 (Unit 1) and 08-34-228-002 (Unit 2)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Property known as 56805 Van Dyke Avenue, Shelby Township, MI described as:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Land
Situated in the Township of Shelby, County of Macomb, State of
Michigan.</div>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A parcel of land located in the Northeast 1/4 of Section&nbsp;4, Town 3 North, Range 12 East, Shelby
Township, Macomb County, Michigan, described as being parts of Lots 14 and 15 of Brown&#146;s Little
Farms Subdivision (unrecorded)&nbsp;more particularly described as: Commencing at the Northeast corner
of said Section&nbsp;4; thence South 01&#176;47&#146;44&#148; East 343.54 feet along the centerline of Van Dyke Avenue
for a place of beginning; thence continuing along said centerline South 01&#176;47&#146;44&#148; East 267.55 feet;
thence South 89&#176;16&#146;28&#148; West 327.33 feet; thence North 00&#176;34&#146;34&#148; West 268.35 feet; thence North
89&#176;25&#146;26&#148; East 321.83 feet to the centerline of Van Dyke Avenue and to the place of beginning.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">TAX IDENTIFICATION NUMBER: 07-04-226-025.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Property known as 25966 Gratiot, Roseville, MI described as:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Land Situated in the City of Roseville, County of Macomb, State of Michigan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Part of Lot 27 of Assessor&#146;s Plat No.&nbsp;8, as recorded in Liber 18, page 27, Macomb County Records,
and also part of the Southwest 114 of Section&nbsp;20, T1 N, R13E, City of Roseville, Macomb County,
Michigan, and being more particularly described as follows: Commencing at the West 1/4 corner of
Section&nbsp;20, thence North 89 degrees 11 minutes 15 seconds East along the East-West 1/4 line of
Section&nbsp;20, 1246.72 feet to the intersection of the East-West 1/4 line of Section&nbsp;20 and the
Northeasterly extension of the Southeasterly line of Gratiot Avenue (204 feet wide); thence South
27 degrees 19 minutes 27 seconds
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->A-2 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">West along the extension of the Southeasterly line of Gratiot Avenue, 37.42 feet to the Northwest
corner of said Lot 27 of Assessor&#146;s Plat No.&nbsp;8, being the point of beginning; thence North 89
degrees 11 minutes 15 seconds East along the North line of Lot 27, being also the South Right of
Way line of Frazho Road (66 feet wide), 103.44 feet; thence South 11 degrees 12 minutes 30 seconds
East 86.81 feet; thence South 01 degrees 12 minutes 30 seconds East 182.28 feet; thence South 27
degrees 21 minutes 58 seconds West 102.82 feet; thence North 62 degrees 38 minutes 02 seconds West
170.16 feet; thence North 34 degrees 05 minutes 31 seconds West 70.74 feet to a point on said
Southeasterly line of Gratiot Avenue; thence North 27 degrees 19 minutes 27 seconds East along said
Southeasterly line, 248.11 feet to the point of beginning.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">TAX IDENTIFICATION NUMBER: 14-20-326-039
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Property known as 2255 South Jackson Road, Summit Township, MI described as:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Land Situated in the Township of Summit, County of Jackson, State of Michigan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Part of the Northwest 1/4 of Section&nbsp;21, Town 3 South, Range 1 West, Summit Township, Jackson
County, Michigan, described as commencing at the West 1/4 corner of said Section&nbsp;21; thence due
east, 1425.00 feet along the east and west 1/4 line of said Section&nbsp;21 to the centerline of South
Jackson Road; thence N 10&#176;37&#146;00&#148; W, 398.51 feet along the centerline of South Jackson Road; thence
N 11&#176;18&#146;00&#148; W, 511.48 feet along the centerline of South Jackson Road to the point of beginning;
thence N 11&#176;18&#146;00&#148; W, 316.58 feet along the centerline of South Jackson Road; thence N 88&#176;49&#146;30&#148; E,
300.00 feet; thence S 05&#176;58&#146;21&#148; E, 148.33 feet; thence N 74&#176;01&#146;39&#148; E, 200.00 feet; thence S
05&#176;58&#146;21&#148; E, 75.00 feet, thence S 43&#176;36&#146;05&#148; W, 206.48 feet; thence N 89&#176;59&#146;49&#148; W, 311.03 feet to
the point of beginning.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">TAX IDENTIFICATION NUMBER: 000-13-21-176-046-02
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->A-3 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>EXHIBIT&nbsp;&#147;B&#148;</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>FORM OF PROMISSORY NOTE</B></U>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>PROMISSORY NOTE</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.00
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Date: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 20&#95;&#95;&#95;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Troy, Michigan
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Maturity Date: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 20&#95;&#95;&#95;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR VALUE RECEIVED, <B>AGREE LIMITED PARTNERSHIP</B>, a Delaware limited partnership (the
&#147;<U>Borrower</U>&#148;), hereby promises to pay to the order of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (the
&#147;<U>Bank</U>&#148;) at the principal office of LaSalle Bank Midwest National Association (the
&#147;<U>Agent</U>&#148;) in Troy, Michigan, on or before the Maturity Date (as defined in the hereinafter
referred to Loan Agreement), which Maturity Date is subject to extension as provided in the Loan
Agreement, the principal amount of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and 00/100 DOLLARS ($_<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.00), in
accordance with the terms and provisions of that certain Loan Agreement dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 20&#95;&#95;&#95;,
executed by and among the Borrower, certain financial institutions (including the Bank) and the
Agent (as amended, restated, supplemented or otherwise modified from time to time, the &#147;<U>Loan
Agreement</U>&#148;). Capitalized words and phrases not otherwise defined herein shall have the
meanings assigned thereto in the Loan Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower further promises to pay the outstanding principal balance of this Note in monthly
installments of principal, each in the amount corresponding to the applicable payment due date, as
shown in attached Schedule&nbsp;A, plus interest accrued to the due date of each payment on the unpaid
principal balance of this Note outstanding from time to time at the rates set forth in the Loan
Agreement. The outstanding principal balance hereof shall be repaid by the Borrower on the
Maturity Date, unless payable sooner pursuant to the provisions of the Loan Agreement. The Maturity
Date is subject to extension on the terms and conditions provided in the Loan Agreement. Payments
of both principal and interest are to be made in lawful money of the United States of America. The
Loans made by the Bank and all payments on account of the principal and interest thereof, shall be
recorded on the books and records of the Agent and the principal balance as shown on such books and
records shall be rebuttably presumptive evidence of the principal amount owing hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Note evidences indebtedness incurred under, and is subject to the terms and provisions
of, the Loan Agreement, to which Loan Agreement reference is hereby made for a statement of the
terms and provisions under which this Note may or must be paid prior to the Maturity Date, or
pursuant to which the Maturity Date may be accelerated. The holder of this Note is entitled to all
of the benefits and security provided for in the Loan Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except for such notices as may be expressly required under the Loan Documents, the Borrower
waives presentment, demand, notice, protest, and all other demands, or notices, in connection with
the delivery, acceptance, performance, default, or enforcement of this Note, and assents to any
extension or postponement of the time of payment or any other indulgence. No failure to exercise,
and no delay in exercising, any rights under any of the Loan Documents by the Agent of any holder
of this Note shall operate as a waiver of such rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Note shall be governed and construed in accordance with the laws of the State of Michigan
applicable to contracts made and to be performed entirely within such State.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-1 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>&#091;SIGNATURE PAGE FOLLOWS&#093;</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->B-2 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>BORROWER</B>:<BR>
<BR>
<B>AGREE LIMITED PARTNERSHIP</B>, a Delaware limited partnership<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 0px solid #000000" align="left">Agree Realty Corporation, a Maryland corporation
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="3"  align="left">Its: &nbsp;General Partner&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<tr style="font-size: 2pt">
<TD>&nbsp;</TD>
</tr>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="1" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Richard Agree&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-3 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SCHEDULE&nbsp;A</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>SCHEDULE OF PRINCIPAL PAYMENTS</B></U>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size:8pt">
    <TD align="center" valign="bottom"><B>PAYMENT DUE DATE</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>REQUIRED<BR>
PRINCIPAL PAYMENT</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->B-4 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>EXHIBIT&nbsp;&#147;C&#148;</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>PERMITTED EXCEPTIONS</B></U>

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->C-1 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>EXHIBIT&nbsp;&#147;D&#148;</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>FORM OF ASSIGNMENT AND ACCEPTANCE</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to the Loan Agreement dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 20&#95;&#95;&#95;(as the same may be
amended, modified or supplemented from time to time in accordance with its terms, the &#147;<U>Loan
Agreement</U>&#148;) among (i)&nbsp;Agree Limited Partnership, a Delaware limited partnership (the
&#147;<U>Borrower</U>&#148;), (ii)&nbsp;the several banks and financial institutions from time to time parties to
the Agreement (collectively, the &#147;<U>Banks</U>&#148;) and (iii)&nbsp;LaSalle Bank Midwest National
Association, as agent for the Banks (in such capacity the &#147;<U>Agent</U>&#148;). Terms defined in the
Loan Agreement are used herein with the same meaning. This Assignment and Acceptance, between the
Assignor (as identified on Schedule&nbsp;1 hereto) and the Assignee (as identified on Schedule&nbsp;1 hereto)
is dated as of the Effective Date (as specified on Schedule&nbsp;1 hereto, the &#147;<U>Effective
Date</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Assignor hereby irrevocably sells and assigns to the Assignee without recourse to the
Assignor, and the Assignee hereby irrevocably purchases and assumes from the Assignor, without
recourse to the Assignor, as of the Effective Date, the interest (the &#147;<U>Assigned Interest</U>&#148;)
in and to the Assignor&#146;s rights and obligations under the Loan Agreement with respect to the credit
facility contained in the Loan Agreement (the &#147;<U>Assigned Facility</U>&#148;), in a principal amount
and percentage of the credit facility as set forth in Schedule&nbsp;1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Assignor (a)&nbsp;makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in connection with the Loan
Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value
of the Loan Agreement, any other Loan Document or any other instrument or document furnished
pursuant thereto, other than that it has not created any adverse claim upon the interest being
assigned by it hereunder and that such interest is free and clear of any adverse claim; (b)&nbsp;makes
no representation or warranty and assumes no responsibility with respect to the financial condition
of Borrower or the performance or observance by Borrower of any of its obligations under the Loan
Agreement or any other Loan Document or any other instrument or document furnished pursuant hereto
or thereto; and (c)&nbsp;attaches the Note held by it evidencing the Assigned Facility and requests that
Agent exchange such Note for a new Note payable to the Assignor (if the Assignor has retained any
interest in the Assigned Facility) and a new Note payable to the Assignee in the respective amounts
which reflect the assignment being made hereby (and after giving effect to any other assignments
which have become effective on the Effective Date).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Assignee (a)&nbsp;represents and warrants that it is legally authorized to enter into this
Assignment and Acceptance; (b)&nbsp;confirms that it has received a copy of the Loan Documents, together
with copies of the financial statements delivered pursuant thereto and such other documents and
information as it has deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance; (c)&nbsp;agrees that it will, independently and without reliance upon
the Assignor, Agent or any other person which has become a Bank and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Agreement; (d)&nbsp;appoints and authorizes Agent to take
such action as agent on its behalf and to exercise such powers under the Loan Agreement as are
delegated to Agent by the terms thereof, together with such powers as are incidental thereto; and
(e)&nbsp;agrees that it will be bound by the provisions of the Loan Agreement and will perform in
accordance with its terms all the obligations which by the terms of the Loan Agreement are required
to be performed by it as a Bank including, if it is organized under the laws of a jurisdiction
outside the United States, its obligation pursuant to subSection&nbsp;4.10 of the Loan Agreement to
deliver the forms prescribed by the Internal Revenue Service of the United States certifying
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->D-1 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">as to the Assignee&#146;s exemption from United States withholding taxes with respect to all
payments to be made to the Assignee under the Loan Agreement, or such other documents as are
necessary to indicate that all such payments are subject to such tax at a rate reduced by an
applicable tax treaty.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement is conditioned upon the acceptance of Agent pursuant to the Loan Agreement.
The execution of this Agreement by Agent is evidence of this consent. Following the execution of
this Assignment and Acceptance, it will be delivered to Agent for acceptance by it and recording by
Agent pursuant to subSection10.1 of the Loan Agreement, effective as of the Effective Date (which
shall not, unless otherwise agreed to by Agent, be earlier than five Business Days after the date
of acceptance and recording by Agent of the executed Assignment and Acceptance).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon such acceptance and recording, from and after the Effective Date, Agent shall make all
payments in respect of the Assigned Interest (including payments of principal, interest, fees and
other amounts) to the Assignee whether such amounts have accrued prior to the Effective Date or
accrue subsequent to the Effective Date. The Assignor and the Assignee shall make all appropriate
adjustments in payments by Agent for period prior to the Effective Date or with respect to the
making of this Assignment directly between themselves.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From and after the Effective Date (a)&nbsp;the Assignee shall be a party to the Loan Agreement and,
with respect to the Assigned Interest, have the rights and obligations of a Bank thereunder and
under the other Loan Documents and shall be bound by the provisions thereof, and (b)&nbsp;the Assignor
shall, with respect to the Assigned Interest, relinquish its rights and be released from its
obligations under the Loan Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Assignment and Acceptance shall be governed by and construed in accordance with the laws
of the State of Michigan.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->D-2 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Acceptance to be
executed on Schedule&nbsp;1 hereto by their respective duly authorized officers.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>ASSIGNOR</B>:<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="2" valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="1" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="2" valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="1" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>

    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>ASSIGNEE</B>:<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="2"  valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="1" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="2"  valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="1" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>ACCEPTED BY AGENT<BR>
<BR>
LASALLE BANK MIDWEST NATIONAL ASSOCIATION</B>, as Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="2" valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="1" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD colspan="2"  valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->D-3 <!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE&nbsp;1<BR>
TO<BR>
ASSIGNMENT AND ACCEPTANCE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="95%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap valign="top"><DIV style="margin-left:0px; text-indent:-0px">NAME OF ASSIGNOR:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"> NAME OF ASSIGNEE:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="95%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="white-space: nowrap">EFFECTIVE DATE OF ASSIGNMENT:</FONT></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="70%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

    <TD COLSPAN="2"><DIV style="margin-left:15px; text-indent:-15px">PRINCIPAL AMOUNT ASSIGNED</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">ASSIGNEE&#146;S PRO RATA SHARE</TD>
</TR>
<TR valign="bottom">

    <TD COLSPAN="2"><DIV style="margin-left:15px; text-indent:-15px">(ASSIGNEE&#146;S LOAN AMOUNT):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">IN LOAN</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

    <TD align="left"><DIV style="margin-left:15px; text-indent:-15px">$</DIV></TD>
<TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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<TYPE>EX-4.2
<SEQUENCE>3
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<DESCRIPTION>EX-4.2
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Exhibit&nbsp;4.2</B></U>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>COMMERCIAL MORTGAGE</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This <B>COMMERCIAL MORTGAGE </B>dated as of July&nbsp;14, 2008 (the &#147;<U>Mortgage</U>&#148;), is executed by
<B>AGREE LIMITED PARTNERSHIP</B>, a Delaware limited partnership, whose address is 31850 Northwestern
Highway,Farmington Hills, Michigan 48334 (the &#147;<U>Mortgagor</U>&#148;), to and for the benefit of
<B>LASALLE BANK MIDWEST NATIONAL ASSOCIATION</B>, a national banking association, whose address is 2600
West Big Beaver Road, Troy, Michigan 48084 (in its individual capacity, &#147;<U>LaSalle</U>&#148;), as
Agent for itself and the other Banks party to a Loan Agreement of even date herewith (in such
capacity, &#147;<U>Agent</U>&#148;), among the Mortgagor, LaSalle, as Agent, and LaSalle and <B>RAYMOND JAMES
BANK, FSB</B>, as Banks (as defined in the Loan Agreement) (the &#147;<U>Banks</U>&#148;), as amended,
supplemented, restated or otherwise modified from time to time (the &#147;<U>Loan Agreement</U>&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u><B>R</B></u> <u><B>E</B></u> <u><B>C</B></u> <u><B>I</B></u> <u><B>T</B></u> <u><B>A</B></u> <u><B>L</B></u> <u><B>S</B></u>:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;The Banks have severally agreed to extend mortgage loans (collectively, the &#147;<U>Loan</U>&#148;)
to the Mortgagor in the aggregate principal amount of Twenty Four Million Eight Hundred Thousand
and 00/100 Dollars ($24,800,000.00) (the &#147;<U>Loan Amount</U>&#148;), evidenced by promissory notes from
the Mortgagor to the Banks, dated of even date with the Loan Agreement, in an aggregate principal
amount equal to the Loan Amount (as amended, restated or replaced from time to time, the
&#147;<U>Notes</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;As a condition to the Banks&#146; loaning funds or providing other financial accommodations to
the Mortgagor, the Banks require that the Mortgagor grant this Mortgage in order to secure the
obligations and performance of the Mortgagor under such loans or financial accommodations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Mortgagor agrees as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">A G R E E M E N T S:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Mortgagor hereby mortgages and warrants to the Agent, as agent for the Banks under the
Loan Agreement, its successors and assigns, and grants to the Agent, as agent for the Banks under
the Loan Agreement, its successors and assigns, a security interest in, the following described
property, rights and interests (referred to collectively herein as the &#147;<U>Property</U>&#148;):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The real estate located in the State of Michigan and legally described on
<U>Exhibit&nbsp;A</U> attached hereto and made a part hereof (the &#147;<U>Real Estate</U>&#148;);
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All improvements of every nature whatsoever now or hereafter situated on the Real
Estate, including all extensions, additions, improvements, betterments, renewals,
substitutions and replacements to any of the foregoing (the &#147;<U>Improvements</U>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All easements, rights of way, gores of real estate, streets, ways, alleys,
passages, sewer rights, waters, water courses, water rights and powers, and all estates,
rights, titles, interests, privileges, liberties, tenements, hereditaments and appurtenances
whatsoever, in any way now or hereafter belonging, relating or appertaining to the Real
Estate, and the reversions, remainders, rents, issues and profits thereof, and all the
estate, right, title, interest, property, possession, claim and demand whatsoever, at law as
well as in equity, of the Mortgagor of, in and to the same;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All rents, revenues, issues, profits, proceeds, income, royalties, Letter of Credit
Rights (as defined in the Uniform Commercial Code of the State of Michigan (the
&#147;<U>Code</U>&#148;) in effect from time to time), escrows, security deposits, impounds,
reserves, tax refunds and other rights to monies from the Property and/or the businesses and
operations conducted by the Mortgagor thereon;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All interest of the Mortgagor in all leases and rental agreements (including,
without limitation, oil and gas leases and any specific lease(s) described in an attachment
to this Mortgage), written or unwritten, now or hereafter demising the Property in whole or
in any part, and all amendments, modifications, extensions, renewals, substitutions and
replacements for any of the foregoing (each, a &#147;<U>Lease</U>&#148;, and collectively, the
&#147;<U>Leases</U>&#148;), together with all security therefor and all monies payable thereunder;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All fixtures and articles of personal property now or hereafter owned by the
Mortgagor and located on or forming a part of or used in connection with the Real Estate or
the Improvements, including, but without limitation, any and all air conditioners, antennae,
appliances, apparatus, awnings, basins, bathtubs, bidets, boilers, bookcases, cabinets,
carpets, computer hardware and software used in the operation of the Property, coolers,
curtains, dehumidifiers, disposals, doors, drapes, dryers, ducts, dynamos, elevators,
engines, equipment, escalators, exercise equipment, fans, fittings, floor coverings,
furnaces, furnishings, furniture, hardware, heaters, humidifiers, incinerators, lighting,
machinery, motors, ovens, pipes, plumbing, pumps, radiators, ranges, recreational
facilities, refrigerators, screens, security systems, shades, shelving, sinks, sprinklers,
stokers, stoves, toilets, ventilators, wall coverings, washers, windows, window coverings,
wiring, and all renewals or replacements thereof or articles in substitution therefor,
whether or not the same are or shall be attached to the Real Estate or the Improvements in
any manner, together with the benefit of any deposits or payments now or hereafter made on
such personal property or fixtures by the Mortgagor or on its behalf; it being mutually
agreed that all of the aforesaid property owned by the Mortgagor and placed on the Real
Estate or the Improvements, so far as permitted by law, shall be deemed to be fixtures, a
part of the realty, and security for the Obligations; notwithstanding the agreement
hereinabove expressed that certain articles of property form a part of the realty covered by
this Mortgage and be appropriated to its use and deemed to be realty, to the extent that
such agreement and declaration may not be effective and that any of said articles may
constitute Goods (as defined in the Code), this instrument shall constitute a security
agreement, creating a security interest in such goods, as collateral, in the Agent, as agent
for the Banks under the Loan Agreement, as a Secured Party, and the Mortgagor, as Debtor,
all in accordance with the Code;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All of the Mortgagor&#146;s interests in General Intangibles, including Payment
Intangibles and Software (each as defined in the Code) now owned or hereafter acquired and
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">related to the Property, including, without limitation, all of the Mortgagor&#146;s right,
title and interest in and to: (i)&nbsp;all agreements, licenses, permits and contracts to which
the Mortgagor is or may become a party and which relate to the Property; (ii)&nbsp;all
obligations and indebtedness owed to the Mortgagor thereunder; (iii)&nbsp;all intellectual
property related to the Property; and (iv)&nbsp;all choses in action and causes of action
relating to the Property;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) All of the Mortgagor&#146;s accounts now owned or hereafter created or acquired as
relate to the Property and/or the businesses and operations conducted thereon, including,
without limitation, all of the following now owned or hereafter created or acquired by the
Mortgagor: (i)&nbsp;Accounts (as defined in the Code), contract rights, book debts, notes,
drafts, and other obligations or indebtedness owing to the Mortgagor arising from the sale,
lease or exchange of goods or other property and/or the performance of services; (ii)&nbsp;the
Mortgagor&#146;s rights in, to and under all purchase orders for goods, services or other
property; (iii)&nbsp;the Mortgagor&#146;s rights to any goods, services or other property represented
by any of the foregoing; (iv)&nbsp;monies due or to become due to the Mortgagor under all
contracts for the sale, lease or exchange of goods or other property and/or the performance
of services including the right to payment of any interest or finance charges in respect
thereto (whether or not yet earned by performance on the part of the Mortgagor);
(v)&nbsp;Securities, Investment Property, Financial Assets and Securities Entitlements (each as
defined in the Code); (vi)&nbsp;proceeds of any of the foregoing and all collateral security and
guaranties of any kind given by any person or entity with respect to any of the foregoing;
and (vii)&nbsp;all warranties, guarantees, permits and licenses in favor of the Mortgagor with
respect to the Property; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All proceeds of the foregoing, including, without limitation, all judgments, awards
of damages and settlements hereafter made resulting from condemnation proceeds or the taking
of the Property or any portion thereof under the power of eminent domain, any proceeds of
any policies of insurance, maintained with respect to the Property or proceeds of any sale,
option or contract to sell the Property or any portion thereof.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">FOR THE PURPOSE OF SECURING the Loan, as evidenced by the Notes, including any renewals or
extensions thereof, from the Banks to the Mortgagor and any and all indebtedness, liabilities and
obligations of any and every kind and nature heretofore, now or hereafter owing from the Mortgagor
to the Banks or any Bank Affiliate, or any of them, arising under: (a)&nbsp;the Notes, and any and all
extensions and renewals thereof, (b)&nbsp;this Mortgage, (c)&nbsp;any Rate Management Obligations and/or Rate
Management Agreements (as such terms are defined in the Loan Agreement), or any other interest
rate, currency or commodity swap agreement(s), cap agreement(s) or collar agreement(s), and any
other agreement(s) or arrangement(s) entered into by the Mortgagor in conjunction with the Loan and
designed to protect the Mortgagor against fluctuations in interest rates, currency exchange rates
or commodity prices, or (d)&nbsp;any other instrument(s), document(s), contract(s) or agreement(s)
heretofore, now or hereafter executed by the Mortgagor and delivered to the Agent in conjunction
with the Loan or to or under which the Mortgagor or any subsidiary or affiliate of the Mortgagor is
a party or beneficiary with respect to the Loan (collectively, the &#147;<U>Loan Documents</U>&#148;), plus
all interest, costs, expenses and reasonable attorney fees which may be made or incurred by the
Agent in the disbursement, administration or collection of such indebtedness, liabilities and
obligations and in the protection, maintenance and liquidation of any collateral for such
indebtedness, liabilities and obligations, and ANY FUTURE ADVANCES, WITH INTEREST THEREON, made to
the Mortgagor by the Banks which are secured by this Mortgage pursuant to the provisions hereof
(collectively, the &#147;<U>Obligations</U>&#148;). The Mortgagor covenants to pay when due any Obligations
for which it is liable in accordance with the terms of the Loan Documents and duly perform and
observe all of the terms, covenants and conditions to be observed and performed by the Mortgagor
under the Notes, this Mortgage and the other Loan Documents.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FUTURE ADVANCE MORTGAGE. This Mortgage is a &#147;Future Advance Mortgage&#148; under Public Act 348 of
Michigan Public Acts of 1990. All future advances under the Loan Documents shall have the same
priority as if the future advance was made on the date that this Mortgage was recorded. This
Mortgage shall secure all indebtedness of the Mortgagor, its successors and assigns under the Loan
Documents, whenever incurred, such indebtedness to be due at the times provided in the Loan
Documents. Notice is hereby given that the indebtedness secured hereby may increase as a result of
any defaults hereunder by Mortgagor due to, for example, and without limitation, unpaid interest or
late charges, unpaid taxes or insurance premiums which Agent elects to advance, defaults under
leases that Agent elects to cure, attorney fees or costs incurred in enforcing the Loan Documents
or other expenses incurred by Agent in protecting the premises, the security of this Mortgage or
Agent&#146;s rights and interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IT IS FURTHER UNDERSTOOD AND AGREED THAT:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U><B>Title</B></U>. The Mortgagor represents, warrants and covenants that (a)&nbsp;the Mortgagor is
the holder of the fee simple title to the Property, free and clear of all liens and encumbrances,
except those liens and encumbrances in favor of the Agent and as otherwise described on
<U>Exhibit&nbsp;B</U> attached hereto and made a part hereof (the &#147;<U>Permitted Exceptions</U>&#148;); and
(b)&nbsp;the Mortgagor has legal power and authority to mortgage and convey the Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U><B>Assignment of Rents and Leases</B></U>. As additional security for the Obligations and
performance of the covenants and agreements set forth herein, pursuant to Michigan Compiled Laws
565.81 et seq. and Michigan Compiled Laws 554.231 et seq., each as amended, Mortgagor hereby
assigns to the Agent, and grants Agent a security interest in, any and all Leases, and all rents,
issues, income and profits derived from the use of the Property or any portion thereof, whether due
or to become due. These assignments shall run with the land and shall be good and valid against
Mortgagor and all persons claiming by, under, or through Mortgagor from the date of recording of
this Mortgage and shall continue to be operative during foreclosure or any other proceedings taken
to enforce this Mortgage. If any foreclosure sale results in a deficiency, the assignments shall
continue as security during the foreclosure redemption period. Mortgagor covenants with and
warrants to Agent that as of the date of this Mortgage:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lease is in full force and effect and there are no defaults existing
thereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Mortgagor has not, except as may be described in an attachment, if any, to this
Mortgage: (1)&nbsp;executed or granted any prior assignment, encumbrance, or security interest in
any Lease or the rentals thereunder; (2)&nbsp;performed any acts or executed any other
instruments or agreements which would limit or prevent Agent from obtaining the benefit of
and exercising its rights conferred by this Mortgage; or (3)&nbsp;executed or granted any
modification of any Lease, either orally or in writing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As of the date of this Mortgage and for so long as any of the Obligations remains
unpaid or unperformed:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Mortgagor shall promptly inform Agent of, assign, and deliver, any
subsequent Lease of the Property or any part thereof, and make, execute and deliver
to the Agent, upon demand, any and all documents, agreements and instruments as may,
in Agent&#146;s opinion, be necessary to protect the Agent&#146;s rights under this Mortgage;
provided, that Mortgagor&#146;s failure to do so will not impair Agent&#146;s interest in or
rights with respect to any subsequent Lease, nor in any way affect the applicability
of this Mortgage to such Lease and the unpaid rents due or to become due thereunder.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Mortgagor shall not, without the prior written consent of Agent: (1)
cancel or accept surrender of a Lease; (2)&nbsp;modify or alter a Lease in any material
way, either orally or in writing; (3)&nbsp;reduce the amount of or postpone payment of
any Lease rents; (4)&nbsp;consent to any assignment of the lessee&#146;s interest in a Lease,
or any subletting thereunder, except as permitted under the provisions of a Lease;
(5)&nbsp;collect or accept payment of rents under a Lease for more than one (1)&nbsp;month in
advance; (6)&nbsp;make any other assignment, pledge, encumbrance, or other disposition of
a Lease or any Lease rents, issues, income or profits.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Mortgagor shall perform and discharge each and every obligation, covenant, and
agreement required to be performed by the landlord under any Lease and should Mortgagor fail
to do so the Agent, at Agent&#146;s sole option and without releasing Mortgagor from any such
obligation, may make or do the same in such manner and to such extent as the Agent deems
necessary to protect its rights and interests under this Mortgage. Any and all costs,
expenses and sums paid by the Agent in performing under any Lease, including reasonable
attorney fees, shall be added to the Obligations secured by this Mortgage. This assignment
of rents is given as collateral security only and will not be construed as obligating Agent
to perform any of the covenants or undertakings required to be performed by Mortgagor under
any Lease.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U><B>Maintenance, Repair, Restoration, Prior Liens, Parking</B></U>. The Mortgagor covenants
that, so long as any portion of the Obligations remains unpaid, the Mortgagor will, or will cause
the tenants under Leases, in accordance with the terms and provisions of the Leases to: (a)
promptly repair, restore or rebuild any Improvements now or hereafter on the Property which may
become damaged or be destroyed to a condition substantially similar to the condition immediately
prior to such damage or destruction, whether or not proceeds of insurance are available or
sufficient for the purpose; (b)&nbsp;keep the Property in good condition and repair, without waste, and
free from construction or like liens or claims or other liens or claims for lien (subject to the
Mortgagor&#146;s right to contest liens as permitted by the terms hereof; (c)&nbsp;pay when due any
indebtedness which may be secured by a permitted lien or charge on the Property, and upon request
furnish satisfactory evidence of the discharge of such lien to the Agent (subject to the
Mortgagor&#146;s right to contest liens as permitted by the terms of hereof); (d)&nbsp;comply with all
requirements of law, municipal ordinances or restrictions and covenants of record with respect to
the Property and the use thereof; (e)&nbsp;obtain and maintain in full force and effect, and abide by
and satisfy the material terms and conditions of, all material permits, licenses, registrations and
other authorizations with or granted by any governmental authorities that may be required from time
to time with respect to the performance of its obligations under this Mortgage; (f)&nbsp;make no
material alterations in the Property or demolish any portion of the Property without the Agent&#146;s
prior written consent, except as required by law or municipal ordinance; (g)&nbsp;suffer or permit no
change in the use or general nature of the occupancy of the Property, without the Agent&#146;s prior
written consent; (h)&nbsp;not initiate or acquiesce in any zoning reclassification with respect to the
Property, without the Agent&#146;s prior written consent; (i)&nbsp;provide and thereafter maintain adequate
parking areas within the Property as may be required by law, ordinance or regulation (whichever may
be greater), together with any sidewalks, aisles, streets, driveways and sidewalk cuts and
sufficient paved areas for ingress, egress and right-of-way to and from the adjacent public
thoroughfares necessary or desirable for the use thereof; and (j)&nbsp;comply, and cause the Property at
all times to be operated in compliance, with all applicable federal, state, local and municipal
environmental, health and safety laws, statutes, ordinances, rules and regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U><B>Payment of Taxes and Assessments</B></U>. The Mortgagor will pay, or cause tenants under
Leases to pay, when due and before any penalty attaches, all general and special taxes,
assessments, water charges, sewer charges, and other fees, taxes, charges and assessments of every
kind and nature whatsoever (all herein generally called &#147;<U>Taxes</U>&#148;), whether or not assessed
against the Mortgagor, if applicable to the Property or any interest therein, or the Obligations,
or any obligation or agreement
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">secured hereby, subject to the Mortgagor&#146;s and the Tenants&#146; under the Leases right to contest
the same, as provided by the terms hereof; and the Mortgagor will, upon written request, furnish to
the Agent duplicate receipts therefor within sixty (60)&nbsp;days after the Agent&#146;s request.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U><B>Insurance</B></U>. The Mortgagor shall at all times keep, or cause the tenants under the
Leases, if so provided for in the Leases, to keep, all buildings, improvements, fixtures and
articles of personal property now or hereafter situated on the Property insured against loss or
damage by fire and such other hazards as may reasonably be required by the Agent, in accordance
with the Agent&#146;s current insurance requirements, and such other insurance as the Agent may from
time to time reasonably require and Agent shall be included thereon as the lender loss payee or an
additional insured, as applicable, under a standard mortgage clause acceptable to the Agent. Such
insurance may be provided through self-insurance programs maintained by tenants under the Leases,
if so provided in the Leases, in which case Agent shall be listed as the lender loss payee or an
additional insured as its interest may apply.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless the Mortgagor provides the Agent evidence of the insurance coverages
required hereunder, the Agent may purchase insurance at the Mortgagor&#146;s expense to cover the
Agent&#146;s interest in the Property. The insurance may, but need not, protect the Mortgagor&#146;s
interest. The coverages that the Agent purchases may not pay any claim that the Mortgagor
makes or any claim that is made against the Mortgagor in connection with the Property. The
Mortgagor may later cancel any insurance purchased by the Agent, but only after providing
the Agent with evidence that the Mortgagor has provided for the insurance as required by
this Mortgage. If the Agent purchases insurance for the Property, the Mortgagor will be
responsible for the costs of such insurance, including, without limitation, interest and any
other charges which the Agent may impose in connection with the placement of the insurance,
until the effective date of the cancellation or expiration of the insurance. The costs of
the insurance may be added to the Obligations. The cost of the insurance may be more than
the cost of insurance the Mortgagor may be able to obtain on its own.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Mortgagor shall not take out separate insurance concurrent in form or
contributing in the event of loss with that required to be maintained hereunder unless the
Agent is included thereon as the loss payee or an additional insured as applicable, under a
standard mortgage clause acceptable to the Agent and such separate insurance is otherwise
acceptable to the Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of loss, the Mortgagor shall give prompt notice thereof to the Agent.
Insurance proceeds shall be distributed in accordance with the terms of the Leases. To the
extent insurance proceeds are distributable to the Mortgage under the terms of the Leases,
if the loss exceeds an amount equal to ten percent (10.00%) of the Obligations (the
&#147;<U>Threshold</U>&#148;), shall have the sole and absolute right to make proof of loss. If such
loss exceeds the Threshold or if such loss is equal to or less than the Threshold and the
conditions set forth in clauses (i), (ii)&nbsp;and (iii)&nbsp;of the immediately succeeding subsection
are not satisfied, then the Agent, solely and directly, shall receive such payment for loss
from each insurance company concerned. If and only if (i)&nbsp;such loss is equal to or less
than the Threshold, (ii)&nbsp;no Event of Default or event that with the passage of time, the
giving of notice or both would constitute an Event of Default then exists, (iii)&nbsp;the Agent
determines that the work required to complete the repair or restoration of the Property
necessitated by such loss can be completed no later than the maturity date of the earliest
maturing Obligation, and (iv)&nbsp;the total of the insurance proceeds and such additional
amounts placed on deposit with the Agent by the Mortgagor for the specific purpose of
rebuilding or restoring the Improvements equals or exceeds, in the sole and absolute
discretion of the Agent, the reasonable costs of such rebuilding or restoration, then the
Agent shall endorse to the Mortgagor any such payment and the Mortgagor may collect such
payment directly. The Agent shall have the right, at
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">its option and in its sole discretion, to apply any insurance proceeds received by the
Agent pursuant to the terms of this section, after the payment of all of the Agent&#146;s
expenses, either (i)&nbsp;on account of the Obligations, irrespective of whether such principal
balance is then due and payable, whereupon the Agent may declare the whole of the balance of
Obligations to be due and payable, or (ii)&nbsp;to the restoration or repair of the property
damaged as provided in subsection&nbsp;(d) below; provided, however, that the Agent hereby agrees
to permit the application of such proceeds to the restoration or repair of the damaged
property, subject to the provisions of subsection&nbsp;(d) below, if (i)&nbsp;the Agent has received
satisfactory evidence that such restoration or repair shall be completed no later than the
maturity date of the earliest maturing Obligation, and (ii)&nbsp;no Event of Default, or event
that with the passage of time, the giving of notice or both would constitute an Event of
Default, then exists. If insurance proceeds are made available to the Mortgagor by the
Agent as hereinafter provided, the Mortgagor shall repair, restore or rebuild the damaged or
destroyed portion of the Property so that the condition and value of the Property are
substantially the same as the condition and value of the Property prior to being damaged or
destroyed. Any insurance proceeds applied on account of the unpaid principal balance of the
Obligations shall be subject to any prepayment premium provided for in the Loan Documents.
In the event of foreclosure of this Mortgage, all right, title and interest of the Mortgagor
in and to any insurance policies then in force shall pass to the purchaser at the
foreclosure sale.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If insurance proceeds are made available by the Agent to the Mortgagor, the
Mortgagor shall comply with the following conditions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Before commencing to repair, restore or rebuild following damage to, or
destruction of, all or a portion of the Property, whether by fire or other casualty,
the Mortgagor shall obtain from the Agent its approval of all site and building
plans and specifications pertaining to such repair, restoration or rebuilding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Prior to each payment or application of any insurance proceeds to the
repair or restoration of the improvements upon the Property, the Agent shall be
satisfied as to the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) either such Improvements have been fully restored, or the
expenditure of money as may be received from such insurance proceeds will be
sufficient to repair, restore or rebuild the Property, free and clear of all
liens, claims and encumbrances, except the lien of this Mortgage and the
Permitted Exceptions, or, if such insurance proceeds shall be insufficient
to repair, restore and rebuild the Property, the Mortgagor has deposited
with the Agent such amount of money which, together with the insurance
proceeds shall be sufficient to restore, repair and rebuild the Property;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) prior to each disbursement of any such proceeds, the Agent shall be
furnished with a statement of the Agent&#146;s architect (the cost of which shall
be borne by the Mortgagor), certifying the extent of the repair and
restoration completed to the date thereof, and that such repairs,
restoration, and rebuilding have been performed to date in conformity with
the plans and specifications approved by the Agent and with all statutes,
regulations or ordinances (including building and zoning ordinances)
affecting the Property; and the Agent shall be furnished with appropriate
evidence of payment for labor or materials furnished to the Property, and
total or partial lien waivers substantiating such payments.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Mortgagor shall fail to restore, repair or rebuild the
Improvements within a time deemed satisfactory by the Agent, then the Agent, at its
option, may (A)&nbsp;commence and perform all necessary acts to restore, repair or
rebuild the said Improvements for or on behalf of the Mortgagor, or (B)&nbsp;declare an
Event of Default. If insurance proceeds shall exceed the amount necessary to
complete the repair, restoration or rebuilding of the Improvements, such excess
shall be applied on account of the Obligations irrespective of whether such
Obligations is then due and payable without payment of any premium or penalty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U><B>Condemnation</B></U>. If all or any part of the Property are damaged, taken or acquired,
either temporarily or permanently, in any condemnation proceeding, or by exercise of the right of
eminent domain, the amount of any award or other payment for such taking or damages made in
consideration thereof shall be distributed in accordance with the terms of the Leases. Any such
amount distributable to the Mortgagor, to the extent of the full amount of the remaining unpaid
Obligations, is hereby assigned to the Agent, who is empowered to collect and receive the same and
to give proper receipts therefor in the name of the Mortgagor and the same shall be paid forthwith
to the Agent. Such award or monies shall be applied on account of the Obligations, irrespective of
whether such Obligations is then due and payable and, at any time from and after the taking the
Agent may declare the whole of the balance of the Obligations to be due and payable.
Notwithstanding the provisions of this section to the contrary, if any condemnation or taking of
less than the entire Property occurs and provided that no Event of Default and no event or
circumstance which with the passage of time, the giving of notice or both would constitute an Event
of Default then exists, and if such partial condemnation, in the reasonable discretion of the
Agent, has no material adverse effect on the operation or value of the Property, then the award or
payment for such taking or consideration for damages resulting therefrom may be collected and
received by the Mortgagor, and the Agent hereby agrees that in such event it shall not declare the
Obligations to be due and payable, if it is not otherwise then due and payable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U><B>Taxation</B></U>. If, by the laws of the United States of America, or of any state or
political subdivision having jurisdiction over the Mortgagor, any tax is due or becomes due in
respect of the execution and delivery of this Mortgage or any of the other Loan Documents, the
Mortgagor shall pay such tax in the manner required by any such law. The Mortgagor further agrees
to reimburse the Agent for any sums which the Agent may expend by reason of the imposition of any
such tax. Notwithstanding the foregoing, the Mortgagor shall not be required to pay any income or
franchise taxes of the Agent. If any law is enacted after the date hereof requiring (a)&nbsp;the
deduction of any lien on the Property from the value thereof for the purpose of taxation or (b)&nbsp;the
imposition upon the Agent of the payment of the whole or any part of the Taxes, charges or liens
herein required to be paid by the Mortgagor, or (c)&nbsp;a change in the method of taxation of mortgages
or debts secured by mortgages or the Agent&#146;s interest in the Property, or the manner of collection
of taxes, so as to affect this Mortgage or the Obligations or the holders thereof, then the
Mortgagor, upon demand by the Agent, shall pay such Taxes or charges, or reimburse the Agent
therefor; provided, however, that the Mortgagor shall not be deemed to be required to pay any
income or franchise taxes of the Agent. Notwithstanding the foregoing, if in the opinion of
counsel for the Agent, it is or may be unlawful to require the Mortgagor to make such payment or
the making of such payment might result in the imposition of interest beyond the maximum amount
permitted by law, then the Agent may declare all of the Obligations to be immediately due and
payable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U><B>Agent&#146;s Performance of Defaulted Acts and Expenses Incurred by Agent</B></U>. If an Event
of Default has occurred, the Agent may, but need not, make any payment or perform any act herein
required of the Mortgagor in any form and manner deemed expedient by the Agent, subject to the
rights of the tenants under the Leases, and may, but need not, make full or partial payments of
principal or interest on prior encumbrances, if any, and purchase, discharge, compromise or settle
any tax lien or other prior lien or title or claim thereof, or redeem from any tax sale or
forfeiture affecting the Property or
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">consent to any tax or assessment or cure any default of the Mortgagor in any lease of the
Property. All monies paid for any of the purposes herein authorized and all expenses paid or
incurred in connection therewith, including reasonable attorneys&#146; fees, and any other monies
advanced by the Agent in regard to any tax provided for herein or to protect the Property or the
lien hereof, shall be so much additional Obligations, and shall become immediately due and payable
by the Mortgagor to the Agent, upon demand, and with interest thereon accruing from the date of
such demand until paid at the highest rate provided in the Loan Documents. In addition to the
foregoing, any costs, expenses and fees, including reasonable attorneys&#146; fees, incurred by the
Agent in connection with (a)&nbsp;sustaining the lien of this Mortgage or its priority, (b)&nbsp;protecting
or enforcing any of the Agent&#146;s rights hereunder, (c)&nbsp;recovering any Obligations, (d)&nbsp;any
litigation or proceedings affecting the Notes, this Mortgage, any of the other Loan Documents or
the Property, including without limitation, bankruptcy and probate proceedings, or (e)&nbsp; preparing
for the commencement, defense or participation in any threatened litigation or proceedings
affecting the Notes, this Mortgage, any of the other Loan Documents or the Property, with interest
thereon accruing from the date of such demand until paid at the highest rate provided in the Loan
Documents, shall be so much additional Obligations, and shall become immediately due and payable by
the Mortgagor to the Agent, upon demand. Should any amount paid out or advanced by the Agent
hereunder, or pursuant to any agreement executed by the Mortgagor in connection with the Loan, be
used directly or indirectly to pay off, discharge or satisfy, in whole or in part, any lien or
encumbrance upon the Property or any part thereof, then the Agent shall be subrogated to any and
all rights, equal or superior titles, liens and equities, owned or claimed by any owner or holder
of said outstanding liens, charges and indebtedness, regardless of whether said liens, charges and
indebtedness are acquired by assignment or have been released of record by the holder thereof upon
payment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U><B>Security Agreement</B></U>. The Mortgagor and the Agent agree that this Mortgage shall
constitute a Security Agreement within the meaning of the Code with respect to all property
described herein in which a security interest can be granted under Article&nbsp;9 of the Code (the
&#147;<U>Personal Property</U>&#148;; all of the Personal Property and the replacements, substitutions and
additions thereto and the proceeds thereof being sometimes hereinafter collectively referred to as
&#147;<U>Collateral</U>&#148;), and that a security interest in and to the Collateral is hereby granted to
the Agent to secure payment of the Obligations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The only persons having any interest in the Collateral are the Mortgagor, the Agent
and holders of interests, if any, expressly permitted hereby.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Financing Statement (other than Financing Statements showing the Agent as the
sole secured party, or with respect to liens or encumbrances, if any, expressly permitted
hereby) covering any of the Collateral or any proceeds thereof is on file in any public
office except pursuant hereto; the Mortgagor, at its own cost and expense, upon demand, will
furnish to the Agent such further information and will execute and deliver to the Agent such
financing statements and other documents in form satisfactory to the Agent and will do all
such acts as the Agent may request at any time or from time to time or as may be necessary
or appropriate to establish and maintain a perfected security interest in the Collateral as
security for the Obligations, subject to no other liens or encumbrances, other than liens or
encumbrances benefiting the Agent and liens and encumbrances (if any) expressly permitted
hereby. The Mortgagor will pay the cost of filing or recording such financing statements or
other documents, and this instrument, in all public offices wherever filing or recording is
deemed by the Agent to be desirable. The Mortgagor hereby irrevocably authorizes the Agent
at any time, and from time to time, to file in any jurisdiction any initial financing
statements and amendments thereto, without the signature of the Mortgagor covering the
Collateral and containing such information as is required by Section&nbsp;5 of Article&nbsp;9 of the
Uniform Commercial Code of the jurisdiction wherein such financing statement or amendment is
filed.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon an Event of Default hereunder, the Agent shall have the remedies of a secured
party under the Code, including, without limitation, the right to take immediate and
exclusive possession of the Collateral. The Agent will give the Mortgagor at least ten (10)
days notice of the time and place of any public sale of the Collateral or of the time after
which any private sale or any other intended disposition thereof is made. The requirements
of reasonable notice shall be met if such notice is mailed, by certified United States mail
or equivalent, postage prepaid, to the address of the Mortgagor hereinafter set forth at
least ten (10)&nbsp;days before the time of the sale or disposition. Any such sale may be held
in conjunction with any foreclosure sale of the Property. If the Agent so elects, the
Property and the Collateral may be sold as one lot. The net proceeds realized upon any such
disposition, after deduction for the expenses of retaking, holding, preparing for sale,
selling and the reasonable attorneys&#146; fees and legal expenses incurred by the Agent, shall
be applied against the Obligations in such order or manner as the Agent shall select. The
Agent will account to the Mortgagor for any surplus realized on such disposition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The terms and provisions contained in this section, unless the context otherwise
requires, shall have the meanings and be construed as provided in the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Mortgage is intended to be a financing statement within the purview of
Section&nbsp;9-502(3) of the Code with respect to the Collateral and the goods described herein,
which goods are or may become fixtures relating to the Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U><B>Restrictions on Transfer</B></U>. The Mortgagor, without the prior written consent of the
Agent, shall not effect, suffer or permit any of the following (a &#147;<U>Prohibited Transfer</U>&#148;),
whether effected directly or indirectly, voluntarily or involuntarily, by operation of law or
otherwise:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any conveyance, sale, assignment, transfer, lien, pledge, mortgage, security
interest or other encumbrance or alienation (or any agreement to do any of the foregoing) of
any the Property or any part thereof or interest therein, excepting only sales or other
dispositions of Collateral no longer useful in connection with the operation of the Property
(&#147;<U>Obsolete Collateral</U>&#148;), provided that prior to the sale or other disposition
thereof, such Obsolete Collateral has been replaced by Collateral of at least equal value
and utility which is subject to the lien hereof with the same priority as with respect to
the Obsolete Collateral; provided, however, that the foregoing provisions of this section
shall not apply (i)&nbsp;to the lien of current taxes and assessments not in default, or (ii)&nbsp;to
leases permitted by the terms of the Loan Documents, if any.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any conveyance, or assignment or other transaction which causes the current general
partner of the Mortgage to no longer be the general partner of the Mortgagor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In determining whether or not to make the loan secured by this Mortgage, the Agent
evaluated the background and experience of the Mortgagor in owning and operating property
such as the Property, found it acceptable and relied and continues to rely upon same as the
means of maintaining the value of the Property which is the Agent&#146;s security for the
Obligations. The Mortgagor further recognizes that any secondary junior financing placed
upon the Property (i)&nbsp;may divert funds which would otherwise be used to pay the Obligations;
(ii)&nbsp;could result in acceleration and foreclosure by any such junior encumbrancer which
would force the Agent to take measures and incur expenses to protect its security;
(iii)&nbsp;would detract from the value of the Property should the Agent come into possession
thereof with the intention of selling same; and (iv)&nbsp;would impair the Agent&#146;s right to
accept a deed in lieu of foreclosure, as a foreclosure by the Agent would be necessary to
clear the title to the Property. In accordance with the foregoing and for the purposes of
(a)&nbsp;protecting the Agent&#146;s security, both of repayment and of value of the Property;
(b)&nbsp;giving the Agent the full benefit of its bargain and contract with
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">the Mortgagor; (c)&nbsp;keeping the Property free of subordinate financing liens, the
Mortgagor agrees that if this section is deemed a restraint on alienation, that it is a
reasonable one.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U><B>Events of Default, Foreclosure; Expense of Litigation</B></U>. If an event of default, as
defined in the Loan Agreement, shall occur under the Obligations (an &#147;<U>Event of Default</U>&#148;),
the Agent may, at its option, and upon occurrence of an Event of Default described in Section
11.1(j) of the Loan Agreement shall, declare the whole of the Obligations to be immediately due and
payable without further notice to the Mortgagor. When all or any part of the Obligations shall
become due, whether by acceleration or otherwise, the Agent shall have the right to foreclose this
Mortgage and sell the Property at public auction or venue pursuant to Michigan Compiled Laws
600.3201 et seq. or judicially foreclose this Mortgage under the provisions of Michigan Compiled
Laws 600.3101 et seq., and/or exercise any right, power or remedy provided in this Mortgage or any
of the other Loan Documents in accordance with Michigan Compiled Laws 600.3201 et seq. or Michigan
Compiled Laws 600.3101 et seq. (as may be amended from time to time, collectively, the
&#147;<U>Act</U>&#148;). In the event of a foreclosure sale, the Agent is hereby authorized, without the
consent of the Mortgagor, to assign any and all insurance policies to the purchaser at such sale or
to take such other steps as the Agent may deem advisable to cause the interest of such purchaser to
be protected by any of such insurance policies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Mortgagor agrees to pay all of Agent&#146;s costs and expenses, including reasonable
attorney fees, which shall be added to the Obligations secured by this Mortgage. At any
foreclosure sale held under the foregoing Michigan statutes, Mortgagor agrees that in its
foreclosure sale bid price the Agent shall be allowed to deduct from the appraised value of
the Property: (i)&nbsp;a brokerage commission of not more than ten percent (10%) of the Property
value; (ii)&nbsp;the unpaid balance of any mortgage or other liens which have priority over the
lien of this Mortgage; and (iii)&nbsp;the sum of all unpaid property taxes and assessments and
insurance premiums due and to become due on the Property through the date upon which the
foreclosure redemption period shall expire. Any foreclosure sale may, at the sole option of
the Agent, be made en masse or in parcels, any law to the contrary notwithstanding, and
Mortgagor hereby knowingly, voluntarily and intelligently waives any right to require any
such foreclosure sale to be made in parcels or any right to select which parcels shall be
sold. The proceeds of any foreclosure sale shall be applied, as the Agent elects, to the
payment of Agent&#146;s collection and other expenses, including reasonable attorney fees, and/or
payment of the Obligations, with the surplus, if any, to Mortgagor or Mortgagor&#146;s successor
in interest. Commencement of proceedings to foreclose this Mortgage in any manner authorized
by law shall be deemed an exercise of the Agent&#146;s option to accelerate the Obligations.
After the date upon which the maturity of the Obligations secured by this Mortgage has been
accelerated, Agent acceptance of any amount(s) paid by Mortgagor less than the full unpaid
principal balance of the Obligations plus accrued interest, late charges and Agent&#146;s costs
and expenses in this Mortgage described, shall not waive the default or acceleration, but
shall only be credited upon the unpaid balance of the Obligations unless the Agent
specifically agrees in writing to waive any such default and/or acceleration.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS MORTGAGE CONTAINS A POWER OF SALE AND UPON DEFAULT MAY BE FORECLOSED BY
ADVERTISEMENT. IN A FORECLOSURE BY ADVERTISEMENT, NO HEARING IS INVOLVED AND THE ONLY NOTICE
REQUIRED IS PUBLICATION OF A FORECLOSURE NOTICE IN A LOCAL NEWSPAPER AND POSTING A COPY OF
THE NOTICE UPON THE PREMISES. IF THIS MORTGAGE IS FORECLOSED BY ADVERTISEMENT UNDER THE
PROVISIONS OF MICHIGAN COMPILED LAWS 600.3201 ET SEQ., MORTGAGOR HEREBY KNOWINGLY,
VOLUNTARILY, AND INTELLIGENTLY WAIVES ALL RIGHTS UNDER THE CONSTITUTION AND LAWS OF THE
STATE
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">OF MICHIGAN AND THE CONSTITUTION AND LAWS OF THE UNITED STATES OF AMERICA TO ANY NOTICE
OR HEARING IN CONNECTION WITH A FORECLOSURE BY ADVERTISEMENT EXCEPT AS SET FORTH IN THE
MICHIGAN STATUTE.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Agent may procure mortgage foreclosure or title reports. Mortgagor covenants to
pay forthwith to the Agent all sums paid for such purposes with interest at the highest rate
applicable to the Obligations, and such sums and the interest thereon shall constitute a
further lien upon the Property. The Agent may also procure appraisals, environmental audits
and such other investigations or analyses of the Property as the Agent may determine to be
required by regulatory or accounting rules, procedures or practices or to otherwise be
prudent or necessary. Mortgagor shall grant the Agent free and unrestricted access to the
Property for such purposes. Mortgagor covenants to pay forthwith to the Agent all sums paid
for such purposes with interest at the highest rate applicable to the Obligations, and such
sums and the interest thereon shall constitute a further lien upon the Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<U><B>Appointment of Receiver</B></U>. In conjunction with any foreclosure of this Mortgage,
Agent shall be entitled to seek the appointment of a receiver for the Property in accordance with
applicable law. Such appointment may be made either before or after sale, without notice, without
regard to the solvency or insolvency of the Mortgagor at the time of application for such receiver
and without regard to the value of the Property or whether the same shall be then occupied as a
homestead or not and the Agent hereunder or any other holder of the Notes may be appointed as such
receiver. Such receiver shall have power to collect the rents, issues and profits of the Property
(i)&nbsp;during the pendency of such foreclosure, (ii)&nbsp;in case of a sale and a deficiency, during the
full statutory period of redemption, whether there be redemption or not, and (iii)&nbsp;during any
further times when the Mortgagor, but for the intervention of such receiver, would be entitled to
collect such rents, issues and profits. Such receiver also shall have all other powers and rights
that may be necessary or are usual in such cases for the protection, possession, control,
management and operation of the Property during said period, including, to the extent permitted by
law, the right to lease all or any portion of the Property for a term that extends beyond the time
of such receiver&#146;s possession without obtaining prior court approval of such lease. The court from
time to time may authorize the application of the net income received by the receiver in payment of
(a)&nbsp;the Obligations, or any tax, special assessment or other lien which may be or become superior
to the lien hereof or of such decree, provided such application is made prior to foreclosure sale,
and (b)&nbsp;any deficiency upon a sale and deficiency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<U><B>Agent&#146;s Right of Possession in Case of Default</B></U>. At any time after an Event of
Default has occurred, the Mortgagor shall, upon demand of the Agent, surrender to the Agent
possession of the Property, subject to any rights of tenants under Leases. The Agent, in its
discretion, may, with process of law, enter upon and take and maintain possession of all or any
part of the Property, subject to any rights of tenants under Leases, together with all documents,
books, records, papers and accounts relating thereto, and may exclude the Mortgagor and its
employees, agents or servants therefrom, and the Agent may then hold, operate, manage and control
the Property, either personally or by its agents. The Agent shall have full power to use such
measures, legal or equitable, as in its discretion may be deemed proper or necessary to enforce the
payment or security of the avails, rents, issues, and profits of the Property, including actions
for the recovery of rent, actions in forcible detainer and actions in distress for rent. Without
limiting the generality of the foregoing, the Agent shall have full power to: (a)&nbsp;cancel or
terminate any lease or sublease for any cause or on any ground which would entitle the Mortgagor to
cancel the same; (b)&nbsp;elect to disaffirm any lease or sublease which is then subordinate to the lien
hereof; (c)&nbsp;extend or modify any then existing leases and to enter into new leases, which
extensions, modifications and leases may provide for terms to expire, or for options to lessees to
extend or renew terms to expire, beyond the Maturity Date and beyond the date of the issuance of a
deed or deeds to a
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">purchaser or purchasers at a foreclosure sale, it being understood and agreed that any such
leases, and the options or other such provisions to be contained therein, shall be binding upon the
Mortgagor and all persons whose interests in the Property are subject to the lien hereof and upon
the purchaser or purchasers at any foreclosure sale, notwithstanding any redemption from sale,
discharge of the Obligations, satisfaction of any foreclosure judgment, or issuance of any
certificate of sale or deed to any purchaser; (d)&nbsp;make any repairs, renewals, replacements,
alterations, additions, betterments and improvements to the Property as the Agent deems are
necessary; (e)&nbsp;insure and reinsure the Property and all risks incidental to the Agent&#146;s possession,
operation and management thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<U><B>Waste</B></U>. Mortgagor&#146;s failure, refusal or neglect to pay any taxes or assessments
levied against the Property or any insurance premiums due upon policies of insurance covering the
Property will constitute waste under Michigan Compiled Laws 600.2927, and the Agent shall have a
right to appointment of a receiver of the Property and of the rents and income from the Property,
with such powers as the Court making such appointment confers. Mortgagor hereby irrevocably
consents to such appointment in such event, and agrees that Agent&#146;s costs and expenses, including
reasonable attorney fees, incurred in such proceeding shall be added to the Obligations secured by
this Mortgage. Payment by the Agent for and on behalf of Mortgagor of any delinquent taxes,
assessments, or insurance premiums payable by Mortgagor under the terms of this Mortgage will not
cure the default herein described nor in any manner impair the Agent&#146;s right to appointment of a
receiver as set forth herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;<U><B>Rights Cumulative</B></U>. Each right, power and remedy herein conferred upon the Agent
is cumulative and in addition to every other right, power or remedy, express or implied, given now
or hereafter existing under any of the Loan Documents or at law or in equity, and each and every
right, power and remedy herein set forth or otherwise so existing may be exercised from time to
time as often and in such order as may be deemed expedient by the Agent, and the exercise or the
beginning of the exercise of one right, power or remedy shall not be a waiver of the right to
exercise at the same time or thereafter any other right, power or remedy, and no delay or omission
of the Agent in the exercise of any right, power or remedy accruing hereunder or arising otherwise
shall impair any such right, power or remedy, or be construed to be a waiver of any Event of
Default or acquiescence therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<U><B>Agent&#146;s Right of Inspection</B></U>. The Agent and its representatives shall have the
right to inspect the Property and the books and records with respect thereto at all reasonable
times upon not less than twenty four (24)&nbsp;hours prior notice to the Mortgagor, and access thereto,
subject to the rights of tenants in possession, shall be permitted for that purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;<U><B>Notices</B></U>. Any notices, communications and waivers under this Mortgage shall be in
writing and shall be (i)&nbsp;delivered in person, (ii)&nbsp;mailed, postage prepaid, either by registered or
certified mail, return receipt requested, or (iii)&nbsp;by overnight express carrier, addressed to the
Mortgagor or the Agent at the address shown for each party, respectively, in the first paragraph of
this Mortgage or to any other address as to any of the parties hereto, as such party shall
designate in a written notice to the other party hereto. All notices sent pursuant to the terms of
this section shall be deemed received (i)&nbsp;if personally delivered, then on the date of delivery,
(ii)&nbsp;if sent by overnight, express carrier, then on the next federal banking day immediately
following the day sent, or (iii)&nbsp;if sent by registered or certified mail, then on the earlier of
the third federal banking day following the day sent or when actually received.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;<U><B>Contests</B></U>. Notwithstanding anything to the contrary herein contained, the
Mortgagor and the tenants in accordance with the terms of the Leases shall have the right to
contest by appropriate legal proceedings diligently prosecuted any Taxes imposed or assessed upon
the Property or which may be or become a lien thereon and any construction or other liens or claims
for lien upon the Property (each, a &#147;<U>Contested Liens</U>&#148;), and no Contested Lien shall
constitute an Event of Default hereunder, if, but only if:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Mortgagor shall forthwith give notice of any Contested Lien to the Agent at the
time the same shall be asserted;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If contested by the Mortgagor, the Mortgagor shall either pay under protest or
deposit with the Agent the full amount (the &#147;<U>Lien Amount</U>&#148;) of such Contested Lien,
together with such amount as the Agent may reasonably estimate as interest or penalties
which might arise during the period of contest; provided that in lieu of such payment the
Mortgagor may furnish to the Agent a bond or title indemnity in such amount and form, and
issued by a bond or title insuring company, as may be satisfactory to the Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;<U><B>Further Instruments</B></U>. Upon request of the Agent, the Mortgagor shall execute,
acknowledge and deliver all such additional instruments and further assurances of title and shall
do or cause to be done all such further acts and things as may reasonably be necessary fully to
effectuate the intent of this Mortgage and of the other Loan Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;<U><B>Indemnity</B></U>. The Mortgagor hereby covenants and agrees that no liability shall be
asserted or enforced against the Agent in the exercise of the rights and powers granted to the
Agent in this Mortgage, and the Mortgagor hereby expressly waives and releases any such liability<B>,</B>
except to the extent resulting from the gross negligence or willful misconduct of the Agent. The
Mortgagor shall indemnify and save the Agent harmless from and against any and all liabilities,
obligations, losses, damages, claims, costs and expenses, including reasonable attorneys&#146; fees and
court costs (collectively, &#147;<U>Claims</U>&#148;), of whatever kind or nature which may be imposed on,
incurred by or asserted against the Agent at any time by any third party which relate to or arise
from: (a)&nbsp;any suit or proceeding (including probate and bankruptcy proceedings), or the threat
thereof, in or to which the Agent may or does become a party, either as plaintiff or as a
defendant, by reason of this Mortgage or for the purpose of protecting the lien of this Mortgage;
(b)&nbsp;the offer for sale or sale of all or any portion of the Property; and (c)&nbsp;the ownership,
leasing, use, operation or maintenance of the Property, if such Claims relate to or arise from
actions taken prior to the surrender of possession of the Property to the Agent in accordance with
the terms of this Mortgage; provided, however, that the Mortgagor shall not be obligated to
indemnify or hold the Agent harmless from and against any Claims with respect to disputes between
the Banks or between the Banks and the Agent not arising out of the wrongdoing of the Borrower or
directly arising from the gross negligence or willful misconduct of the Agent. The Agent shall
give notice as promptly as reasonably practical to the Mortgagor in the event it becomes aware of a
claim or potential claim for which it intends to seek indemnity under the provisions of this
Section&nbsp;20. All costs provided for herein and paid for by the Agent shall be so much additional
Obligations and shall become immediately due and payable upon demand by the Agent and with interest
thereon from the date incurred by the Agent until paid at the highest rate provided in the Loan
Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.&nbsp;<U><B>Environmental Representations, Warranties, Covenants and Indemnification</B></U>. The
Mortgagor represents and warrants to the Agent that, to the best of the Mortgagor&#146;s Actual
Knowledge: (a)&nbsp;neither the Property nor the operations of the Mortgagor are in violation of any
Environmental Law or any permit or authorization issued pursuant thereto., and (b)&nbsp;no Hazardous
Substances have been released on or from the Property in violation of any Environmental Laws.
&#147;<U>Actual Knowledge</U>&#148; shall mean knowledge actually possessed by Richard Agree, or his
successor, without inquiry or additional investigation, and not constructive knowledge which is
imputed to the Mortgagor. The Mortgagor covenants and agrees to at all times strictly observe and
promptly comply with all Environmental Laws and shall keep the Property free and clear of all liens
and other encumbrances imposed pursuant to any Environmental Laws (&#147;<U>Environmental Liens</U>&#148;).
The Mortgagor shall promptly notify the Agent in writing if the Mortgagor receives written notice
from a governmental authority having jurisdiction over environmental matters that there is or are
(a)&nbsp;any Hazardous Substances, other than those used by the Mortgagor or tenants under leases at the
Property in the ordinary course of their businesses and in
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">compliance with all Environmental Laws, present on the Property; (b)&nbsp;any release of Hazardous
Substances in, on, under, from or migrating towards the Property; (c)&nbsp;any non-compliance with
Environmental Laws related in any way to the Property; (d)&nbsp;any actual or potential Environmental
Liens; (e)&nbsp;any investigation or action or claim, whether threatened or pending, by any governmental
agency or third party pertaining to the Release of Hazardous Substances in, on, under, from, or
migrating towards the Property. Mortgagor agrees to allow the Agent or its agent access to the
Property to confirm Mortgagor&#146;s compliance with all Environmental Laws and Agent may at any time it
has reasonable cause to suspect a violation of an Environmental Law may have occurred, at
Mortgagor&#146;s sole cost and expense, hire, or require Mortgagor to hire, an environmental consultant
to inspect, test and audit the Property and advise the Agent concerning Mortgagor&#146;s compliance with
Environmental Laws. Any costs paid by Agent for violations of Environmental Laws or to hire an
environmental consultant shall be added to the Obligations secured by this Mortgage. Mortgagor
agrees to indemnify and hold the Agent harmless from any and all losses, costs, suits, harm,
liability, and damages of any and every kind, including reasonable attorney fees, which result from
or are related to any violation(s) by Mortgagor or Mortgagor&#146;s predecessors in title to the
Property of any Environmental Laws, and agrees that such indemnity shall survive the foreclosure or
discharge of this Mortgage and shall continue so long as Agent has any interest in or liability for
the Property. &#147;<U>Environmental Laws</U>&#148; shall mean any and all federal, state and local laws
(whether under common law, statute, rule, regulation or otherwise), requirements under permits or
other authorizations issued with respect thereto, and other orders, decrees, judgments, directives
or other requirements of any governmental authority relating to or imposing liability or standards
of conduct (including disclosure or notification) concerning protection of human health or the
environment or Hazardous Substances or any activity involving Hazardous Substances, all as
previously and in the future to be amended. &#147;<U>Hazardous Substance</U>&#148; shall mean, but is not
limited to, any substance, chemical, material or waste (a)&nbsp;the presence of which causes a nuisance
or trespass of any kind; (b)&nbsp;which is regulated by any federal, state or local governmental
authority because of its toxic, flammable, corrosive, reactive, carcinogenic, mutagenic,
infectious, radioactive, or other hazardous property or because of its effect on the environment,
natural resources or human health and safety, including, but not limited to, petroleum and
petroleum products, asbestos-containing materials, polychlorinated biphenyls, lead and lead-based
paint, radon, radioactive materials, flammables and explosives; or (c)&nbsp;which is designated,
classified, or regulated as being a hazardous or toxic substance, material, pollutant, waste (or a
similar such designation) under any federal, state or local law, regulation or ordinance, including
under any Environmental Law such as the Comprehensive Environmental Response Compensation and
Liability Act (42 U.S.C. &#167;9601 <U>et</U> <U>seq</U>.), the Emergency Planning and Community
Right-to-Know Act (42 U.S.C. &#167;11001 <U>et</U> <U>seq</U>.), the Hazardous Substances
Transportation Act (49 U.S.C. &#167;1801 <U>et</U> <U>seq</U>.), or the Clean Air Act (42 U.S.C. &#167;7401
<U>et</U> <U>seq</U>.).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;<U><B>Miscellaneous</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Successors and Assigns</U>. This Mortgage and all provisions hereof shall be
binding upon and enforceable against the Mortgagor and its assigns and other successors.
This Mortgage and all provisions hereof shall inure to the benefit of the Agent, its
successors and assigns and any holder or holders, from time to time, of the Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Invalidity of Provisions; Governing Law</U>. In the event that any provision
of this Mortgage is deemed to be invalid by reason of the operation of law, or by reason of
the interpretation placed thereon by any administrative agency or any court, the Mortgagor
and the Agent shall negotiate an equitable adjustment in the provisions of the same in order
to effect, to the maximum extent permitted by law, the purpose of this Mortgage and the
validity and enforceability of the remaining provisions, or portions or applications
thereof, shall not be affected thereby and shall remain in full force and effect. This
Mortgage is to be construed in accordance with and governed by the laws of the State of
Michigan.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Municipal Requirements</U>. The Mortgagor shall not by act or omission permit
any building or other improvement on premises not subject to the lien of this Mortgage to
rely on the Property or any part thereof or any interest therein to fulfill any municipal or
governmental requirement, and the Mortgagor hereby assigns to the Agent any and all rights
to give consent for all or any portion of the Property or any interest therein to be so
used. Similarly, no building or other improvement on the Property shall rely on any
premises not subject to the lien of this Mortgage or any interest therein to fulfill any
governmental or municipal requirement. Any act or omission by the Mortgagor which would
result in a violation of any of the provisions of this subsection shall be void.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Option of Agent to Subordinate</U>. At the option of the Agent, this Mortgage
shall become subject and subordinate, in whole or in part (but not with respect to priority
of entitlement to insurance proceeds or any condemnation or eminent domain award) to any and
all leases of all or any part of the Property upon the execution by the Agent of a
unilateral declaration to that effect and the recording thereof in the Office of the
Register of Deeds in and for the county wherein the Property are situated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Mortgagee-in-Possession</U>. Nothing herein contained shall be construed as
constituting the Agent a mortgagee-in-possession in the absence of the actual taking of
possession of the Property by the Agent pursuant to this Mortgage.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Relationship of Agent and Mortgagor</U>. The Agent shall in no event be
construed for any purpose to be a partner, joint venturer, agent or associate of the
Mortgagor or of any lessee, operator, concessionaire or licensee of the Mortgagor in the
conduct of their respective businesses, and, without limiting the foregoing, the Agent shall
not be deemed to be such partner, joint venturer, agent or associate on account of the Agent
becoming a mortgagee-in-possession or exercising any rights pursuant to this Mortgage, any
of the other Loan Documents, or otherwise. The relationship of the Mortgagor and the Agent
hereunder is solely that of debtor/creditor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Time of the Essence</U>. Time is of the essence of the payment by the
Mortgagor of all amounts due and owing to the Agent under the Loan Documents and the
performance and observance by the Mortgagor of all terms, conditions, obligations and
agreements contained in this Mortgage and the other Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U>No Merger</U>. The parties hereto intend that the Mortgage and the lien hereof
shall not merge in fee simple title to the Property, and if the Agent acquires any
additional or other interest in or to the Property or the ownership thereof, then, unless a
contrary intent is manifested by the Agent as evidenced by an express statement to that
effect in an appropriate document duly recorded, this Mortgage and the lien hereof shall not
merge in the fee simple title and this Mortgage may be foreclosed as if owned by a stranger
to the fee simple title.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U><B>CONSENT TO JURISDICTION</B></U><B>. TO INDUCE THE BANKS TO EXTEND THE OBLIGATIONS,
THE MORTGAGOR IRREVOCABLY AGREES THAT, SUBJECT TO THE AGENT&#146;S SOLE AND ABSOLUTE ELECTION,
ALL ACTIONS OR PROCEEDINGS IN ANY WAY ARISING OUT OF OR RELATED TO THE OBLIGATIONS AND THIS
MORTGAGE WILL BE LITIGATED IN COURTS HAVING SITUS IN OAKLAND COUNTY, MICHIGAN. THE
MORTGAGOR HEREBY CONSENTS AND SUBMITS, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TO THE
JURISDICTION OF ANY COURT LOCATED WITHIN OAKLAND COUNTY, MICHIGAN, WAIVES PERSONAL SERVICE
OF PROCESS UPON THE MORTGAGOR, AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE</B>
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>MADE BY REGISTERED MAIL DIRECTED TO THE MORTGAGOR AT THE ADDRESS STATED HEREIN AND
SERVICE SO MADE WILL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U><B>WAIVER OF JURY TRIAL</B></U><B>. THE MORTGAGOR AND THE AGENT (BY ACCEPTANCE HEREOF),
HAVING BEEN REPRESENTED BY COUNSEL EACH KNOWINGLY AND VOLUNTARILY WAIVES ANY RIGHT TO A
TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (A)&nbsp;UNDER THIS
MORTGAGE OR ANY RELATED AGREEMENT OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT
DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION WITH THIS MORTGAGE OR
(B)&nbsp;ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH THIS MORTGAGE, AND
AGREES THAT ANY SUCH ACTION OR PROCEEDING WILL BE TRIED BEFORE A COURT AND NOT BEFORE A
JURY. THE MORTGAGOR AGREES THAT IT WILL NOT ASSERT ANY CLAIM AGAINST THE AGENT OR ANY OTHER
PERSON INDEMNIFIED UNDER THIS MORTGAGE ON ANY THEORY OF LIABILITY FOR SPECIAL, INDIRECT,
CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <U>Complete Agreement</U>. This Mortgage and the other Loan Documents constitute
the complete agreement between the parties with respect to the subject matter hereof and the
Loan Documents may not be modified, altered or amended except by an agreement in writing
signed by both the Mortgagor and the Agent.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>&#091;SIGNATURE PAGE FOLLOWS&#093;</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>, the Mortgagor has executed and delivered this Mortgage as of the day and
year first above written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left"><B>MORTGAGOR</B>:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left"><B>AGREE LIMITED PARTNERSHIP</B>, a Delaware</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">limited partnership</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Agree Realty
Corporation, a Maryland corporation</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">General Partner</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Richard Agree</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Richard Agree</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Notary Acknowledgement
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing instrument was acknowledged before me in <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> County, Michigan,
on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, by Richard Agree, who is the President of Agree Realty Corporation, a
Maryland corporation, which is the General Partner of <B>AGREE LIMITED PARTNERSHIP</B>, a Delaware limited
partnership, on behalf of the limited partnership.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notary&#146;s Signature:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notary&#146;s Name:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notary Public, State of Michigan,
County of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">My commission expires:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Acting in the County of:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DRAFTED BY:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">WHEN RECORDED RETURN TO:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Daniel C. Watson, Esq.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">LaSalle Bank Midwest N.A.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dykema Gossett PLLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">c/o LaSalle Bank N.A.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">400 Renaissance Center
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attn: Rita Gomez MC74-00</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Detroit, Michigan 48243
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4747 W. Irving Road</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chicago, Illinois 60641</TD>
</TR>
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</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>EXHIBIT&nbsp;A</U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>LEGAL DESCRIPTION OF REAL ESTATE</U>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Land Situated in the City of Grand Rapids, County of Kent, State of Michigan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Part of the Southeast 1/4 of Section&nbsp;8, Town 6 North, Range 11 West, City of Grand Rapids, Kent
County, Michigan, described as: Commencing at the Southeast corner of Section&nbsp;8; thence South
90&#176;00&#146;00&#148; West 690.33 feet along the South line of Section&nbsp;8; thence North 03&#176;48&#146;25&#148; West 50.69
feet to a point on the North right-of-way line of 28th Street and the place of beginning; thence
North 03&#176;48&#146;25&#148; West 149.31 feet parallel to the West line of the Southeast 1/4 of the Southeast
1/4 of Section&nbsp;8; thence South 90&#176;00&#146;00&#148; West 30.00 feet; thence North 03&#176;48&#146;25&#148; West 207.59 feet
along the East line of Oakgrove Cemetery; thence South 89&#176;49&#146;30&#148; East 307.77 feet; thence North
00&#176;10&#146;30&#148; East 30.00 feet; thence North 34&#176;34&#146;57&#148; West 142.24 feet; thence Northeasterly 191.52
feet along a 115.50 foot radius curve to the right, the chord of which bears North 12&#176;55&#146;12&#148; East
170.32 feet; thence North 60&#176;43&#146;14&#148; East 14.10 feet; thence Southeasterly 544.27 feet along a
3769.83 foot radius curve to the right, the chord of which bears South 25&#176;16&#146;02&#148; East 543.80 feet;
thence South 35&#176;21&#146;20&#148; West 225.40 feet along the Northwesterly line of a clear vision
right-of-way; thence Northwesterly 71.70 feet along a 57246.01 foot radius curve to the right, the
chord of which bears North 89&#176;58&#146;00&#148; West 71.70 feet along the North line of 28th Street; thence
North 89&#176;55&#146;50&#148; West 253.76 feet to the point of beginning.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">PROPERTY ADDRESS OF REAL ESTATE: 2643 Kalamazoo, Grand Rapids, Michigan
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">TAX IDENTIFICATION NUMBER: 41-18-08-400-017
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>EXHIBIT&nbsp;B</U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>PERMITTED EXCEPTIONS</U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;General real estate taxes for the year 2008 and each year thereafter not yet due and
payable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Exception Nos. 1-11, inclusive, contained on Schedule&nbsp;B of Liberty Title Commercial Agency,
LLC File No.&nbsp;K10969 dated April&nbsp;9, 2008.
</DIV>


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</DIV>



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<DOCUMENT>
<TYPE>EX-4.3
<SEQUENCE>4
<FILENAME>k34657exv4w3.htm
<DESCRIPTION>EX-4.3
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-4.3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Exhibit&nbsp;4.3</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U> <B>CONTINUING UNCONDITIONAL GUARANTY</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This <B>CONTINUING UNCONDITIONAL GUARANTY </B>dated as of July&nbsp;14, 2008 (the &#147;<U>Guaranty</U>&#148;), is
executed by <B>AGREE REALTY CORPORATION</B>, a Maryland corporation, whose address is 31850 Northwestern
Highway, Farmington Hills, Michigan 48334 (the &#147;<U>Guarantor</U>&#148;), to and for the benefit of
<B>LASALLE BANK MIDWEST NATIONAL ASSOCIATION</B>, a national banking association, whose address is 2600
West Big Beaver Road, Troy, Michigan 48084 (in its individual capacity, &#147;<U>LaSalle</U>&#148;), as
Agent for itself and the other Banks party to a Loan Agreement of even date herewith (in such
capacity, &#147;<U>Agent</U>&#148;), among <B>AGREE LIMITED PARTNERSHIP</B>, a Delaware limited partnership (the
&#147;<U>Borrower</U>&#148;), LaSalle, as Agent, and LaSalle and <B>RAYMOND JAMES BANK, FSB</B>, as Banks (as
defined in the Loan Agreement) (the &#147;<U>Banks</U>&#148;), as amended, supplemented, restated or
otherwise modified from time to time (the &#147;<U>Loan Agreement</U>&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u><B>R</B></u> <u><B>E</B></u> <u><B>C</B></u> <u><B>I</B></u> <u><B>T</B></u> <u><B>A</B></u> <u><B>L</B></u> <u><B>S</B></u>:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;The Banks have severally agreed to extend mortgage loans (collectively, the &#147;<U>Loan</U>&#148;)
to the Borrower in the aggregate principal amount of Twenty Four Million Eight Hundred Thousand and
00/100 Dollars ($24,800,000.00) (the &#147;<U>Loan Amount</U>&#148;), evidenced by promissory notes from the
Borrower to the Banks, dated of even date with the Loan Agreement, in an aggregate principal amount
equal to the Loan Amount (as amended, restated or replaced from time to time, the &#147;<U>Notes</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;As a condition to the Banks&#146; loaning funds or providing other financial accommodations to
the Borrower, the Banks require that the Guarantor execute and deliver this Guaranty in order to
support the obligations and performance of the Borrower under such loans or financial
accommodations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;The Guarantor is financially interested in the Borrower and desires the Banks to extend or
continue the extension of credit to the Borrower, which is necessary and desirable to the conduct
and operation of the business of the Borrower and will inure to the financial benefit of the
Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, FOR VALUE RECEIVED, it is agreed that the preceding provisions and recitals
are an integral part hereof and that this Guaranty shall be construed in light thereof, and in
consideration of advances, credit or other financial accommodation heretofore afforded,
concurrently herewith being afforded or hereafter to be afforded to the Borrower by the Banks, the
Guarantor hereby unconditionally and absolutely guarantees to the Banks or other person paying or
incurring the same, irrespective of the validity, regularity or enforceability of any instrument,
writing, arrangement or credit agreement relating to or the subject of any such financial
accommodation, the prompt payment in full of: (a)&nbsp;the Indebtedness (as hereinafter defined),
<U>plus</U> (b)&nbsp;all Rate Management Obligations under any Rate Management Agreements (as defined
in the Loan Agreement, <U>plus</U> (c)&nbsp;all costs, legal expenses and attorneys&#146; and paralegals&#146;
fees of every kind (including those costs, expenses and fees of attorneys and paralegals who may be
employees of the Agent, its parent or affiliates), paid or incurred by the Agent in endeavoring to
collect all or any part of the Indebtedness, or in enforcing its rights in connection with any
collateral therefor, or in enforcing this Guaranty, or in defending against any defense,
counterclaim, setoff or crossclaim based on any act of commission or omission by the Banks with
respect to the Indebtedness, any collateral therefor, or in connection with any Repayment Claim (as
hereinafter defined) (collectively, the &#147;Guaranteed Debt&#148;). In addition, the Guarantor hereby
unconditionally and absolutely guarantees to the Banks the prompt, full and faithful performance
and discharge by the Borrower of each of the terms, conditions, agreements, representations and
warranties on the part of the
Borrower contained in any agreement, or in any modification or addenda thereto or substitution
thereof in connection with any of the Indebtedness.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used herein, &#147;Indebtedness&#148; shall mean and include any and all indebtedness, obligations
and liabilities of the Borrower to the Banks or to any Bank Affiliates (as defined in the Loan
Agreement) arising: (a)&nbsp;under and pursuant to the Loan Agreement, the Notes or the other Loan
Documents (as defined in the Loan Agreement), including any and all new or renewal notes issued in
substitution or replacement therefor or any and all extensions, renewals or replacements thereof,
and (b)&nbsp;under any Rate Management Agreements, or any other interest rate, currency or commodity
swap agreement(s), cap agreement(s) or collar agreement(s), and any other agreement(s) or
arrangement(s) designed to protect the Borrower against fluctuations in interest rates, currency
exchange rates or commodity prices entered into in connection with the loan evidenced by the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon an event of default under the Indebtedness, or any default by the Guarantor of any of the
covenants, terms and conditions set forth herein which is not cured within thirty days after notice
from the Agent to the Guarantor, all of the Guaranteed Debt shall, without notice to anyone,
immediately become due and all amounts due hereunder shall be payable by the Guarantor. The
Guarantor hereby expressly and irrevocably: (a)&nbsp;waives, to the fullest extent possible, on behalf
of itself and its successors and assigns (including any surety) and any other person, any and all
rights at law or in equity to subrogation, reimbursement, exoneration, contribution,
indemnification, set off or to any other rights that could accrue to a guarantor or to the holder
of a claim against any person, and which the Guarantor may have or hereafter acquire against any
person in connection with or as a result of the Guarantor&#146;s execution, delivery and/or performance
of this Guaranty, or any other documents to which the Guarantor is a party or otherwise; (b)&nbsp;waives
any &#147;claim&#148; (as such term is defined in the United States Bankruptcy Code) of any kind against the
Borrower, and further agrees that it shall not have or assert any such rights against any person
(including any surety), either directly or as an attempted set off to any action commenced against
the Guarantor by the Agent or any other person; and (c)&nbsp;acknowledges and agrees (i)&nbsp;the foregoing
waivers are intended to benefit the Banks and shall not limit or otherwise affect the Guarantor&#146;s
liability hereunder or the enforceability of this Guaranty, (ii)&nbsp;the Borrower and its successors
and assigns are intended third party beneficiaries of the foregoing waivers, and (iii)&nbsp;the
agreements set forth in this paragraph and the Banks&#146; rights under this paragraph shall survive
payment in full of the Guaranteed Debt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All dividends or other payments received by the Banks on account of the Indebtedness, from
whatever source derived, shall be taken and applied by the Agent toward the payment of the
Indebtedness and in such order of application as the Agent may, in its sole discretion, from time
to time elect. The Agent shall have the exclusive right to determine how, when and what application
of payments and credits, if any, whether derived from the Borrower or any other source, shall be
made on the Indebtedness and such determination shall be conclusive upon the Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Guaranty shall in all respects be continuing, absolute and unconditional, and shall
remain in full force and effect with respect to the Guarantor until: (i)&nbsp;written notice from the
Agent to the Guarantor by United States certified mail of its discontinuance as to the Guarantor;
or (ii)&nbsp;until all Guaranteed Debt created or existing before receipt of either such notice shall
have been fully paid. If there is more than one Guarantor party hereto and this Guaranty is
discontinued as to any Guarantor, this Guaranty shall nevertheless continue and remain in force
against any other guarantor until discontinued as to all other Guarantors. In the event of the
death, incompetency or dissolution of the Guarantor, this Guaranty shall continue as to all of the
Guaranteed Debt theretofore incurred by the Borrower even though the Indebtedness is renewed or the
time of maturity of the Indebtedness is extended without the consent of the successors or assigns
of the Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No compromise, settlement, release or discharge of, or indulgence with respect to, or failure,
neglect or omission to enforce or exercise any right against any other guarantor shall release or
discharge the Guarantor.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor&#146;s liability under this Guaranty shall in no way be modified, affected, impaired,
reduced, released or discharged by any of the following (any or all of which may be done or omitted
by the Agent in its sole discretion, without notice to anyone and irrespective of whether the
Indebtedness shall be increased or decreased thereby): (a)&nbsp;any acceptance by the Banks of any new
or renewal note or notes of the Borrower, or of any security or collateral for, or other guarantors
or obligors upon, any of the Indebtedness; (b)&nbsp;any compromise, settlement, surrender, release,
discharge, renewal, refinancing, extension, alteration, exchange, sale, pledge or election with
respect to the Indebtedness, or any note by the Borrower, or with respect to any collateral under
Section&nbsp;1111 or any action under Section&nbsp;364, or any other section of the United States Bankruptcy
Code, now existing or hereafter amended, or other disposition of, or substitution for, or
indulgence with respect to, or failure, neglect or omission to realize upon, or to enforce or
exercise any liens or rights of appropriation or other rights with respect to, the Indebtedness or
any security or collateral therefor or any claims against any person or persons primarily or
secondarily liable thereon; (c)&nbsp;any failure, neglect or omission to perfect, protect, secure or
insure any of security interests, liens, or encumbrances of the properties or interests in
properties subject thereto; (d)&nbsp;the granting of credit from time to time by the Banks to the
Borrower in excess of the amount, if any, to which the right of recovery under this Guaranty is
limited (which is hereby expressly authorized); (e)&nbsp;any change in the Borrower&#146;s name or the merger
of the Borrower into another entity; or (f)&nbsp;any act of commission or omission of any kind or at any
time upon the part of the Banks with respect to any matter whatsoever, other than the execution and
delivery by the Agent to the Guarantor of an express written release or cancellation of this
Guaranty. The Guarantor hereby consents to all acts of commission or omission of the Banks set
forth above and agrees that the standards of good faith, diligence, reasonableness and care shall
be measured, determined and governed solely by the terms and provisions hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to hold the Guarantor liable hereunder, there shall be no obligation on the part of
the Agent, at any time, to resort for payment to the Borrower or to anyone else, or to any
collateral, security, property, liens or other rights and remedies whatsoever, all of which are
hereby expressly waived by the Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor hereby expressly waives diligence in collection or protection, presentment,
demand or protest or in giving notice to anyone of the protest, dishonor, default, or nonpayment or
of the creation or existence of any of the Indebtedness or of any security or collateral therefor
or of the acceptance of this Guaranty or of extension of credit or indulgences hereunder or of any
other matters or things whatsoever relating hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor waives any and all defenses, claims and discharges of the Borrower, or any other
obligor, pertaining to the Indebtedness, except the defense of discharge by payment in full.
Without limiting the generality of the foregoing, the Guarantor will not assert, plead or enforce
against the Banks any defense of waiver, release, discharge in bankruptcy, statute of limitations,
res judicata, statute of frauds, anti-deficiency statute, fraud, incapacity, minority, usury,
illegality or unenforceability which may be available to the Borrower or any other person liable in
respect of any of the Indebtedness, or any setoff available against the Banks to the Borrower or
any such other person, whether or not on account of a related transaction. The Guarantor expressly
agrees that the Guarantor shall be and remain liable for any deficiency remaining after foreclosure
of any mortgage or security interest securing the Guaranteed Debt, whether or not the liability of
the Borrower or any other obligor for such deficiency is discharged pursuant to statute or judicial
decision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor represents and warrants to the Banks that the financial statements of the
Guarantor furnished to the Banks at or prior to the execution and delivery of this Guaranty fairly
present the financial condition of the Guarantor for the periods shown therein, and since the dates
covered by the most recent of such financial statements, there has been no material adverse change
in the Guarantor&#146;s
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">business operations or financial condition. The Guarantor agrees to advise the
Agent immediately of any adverse change in the financial condition, business operations or any
other status of the Guarantor. The Agent shall have the right at all times during business hours to
inspect the books and records of the Guarantor and make extracts therefrom. Except as expressly
shown on the most recent of such financial statements, the Guarantor owns all of its assets free
and clear of all liens; is not a party to any litigation, nor is any litigation threatened to the
knowledge of the Guarantor which would, if adversely determined, cause any material adverse change
in its business or financial condition; and has no delinquent tax liabilities, nor have any tax
deficiencies been proposed against it. The Guarantor shall not sell, lease, transfer, convey or
assign any of its assets, unless such sale, lease, transfer, conveyance or assignment is performed
in the ordinary course of its business consistent with past practices, and will not have a material
adverse effect on the business or financial condition of the Guarantor or its ability to perform
its obligations hereunder. The Guarantor shall neither become a party to any merger or
consolidation, nor, except in the ordinary course of its business consistent with past practices,
acquire all or substantially all of the assets of, a controlling interest in the stock of, or a
partnership or joint venture interest in, any other entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Banks may, without demand or notice of any kind to anyone, after the occurrence of an
Event of Default, as defined in the Loan Agreement, apply or set off any balances, credits,
deposits, accounts, moneys or other indebtedness at any time credited by or due from the Banks to
the Guarantor against the amounts due hereunder and in such order of application as the Banks may
from time to time elect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE GUARANTOR WAIVES EVERY DEFENSE, CAUSE OF ACTION, COUNTERCLAIM OR SETOFF WHICH THE
GUARANTOR MAY NOW HAVE OR HEREAFTER MAY HAVE TO ANY ACTION BY THE AGENT IN ENFORCING THIS GUARANTY.
AS FURTHER SECURITY, ANY AND ALL DEBTS AND LIABILITIES NOW OR HEREAFTER ARISING AND OWING TO THE
GUARANTOR BY THE BORROWER, OR TO ANY OTHER PARTY LIABLE TO THE BANKS FOR THE BORROWER&#146;S
OBLIGATIONS, ARE HEREBY SUBORDINATED TO THE BANKS&#146; CLAIMS AND ARE HEREBY ASSIGNED TO THE BANKS.
THE GUARANTOR HEREBY AGREES THAT THE GUARANTOR MAY BE JOINED AS A PARTY DEFENDANT IN ANY LEGAL
PROCEEDING (INCLUDING, BUT NOT LIMITED TO, A FORECLOSURE PROCEEDING) INSTITUTED BY THE AGENT
AGAINST THE BORROWER. THE GUARANTOR, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT
WITH COUNSEL, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES IRREVOCABLY THE RIGHT TO TRIAL BY
JURY WITH RESPECT TO ANY LEGAL PROCEEDING COMMENCED BY OR AGAINST THE GUARANTOR IN WHICH THE
GUARANTOR AND THE AGENT ARE ADVERSE PARTIES. THIS PROVISION IS A MATERIAL INDUCEMENT TO THE BANKS
GRANTING ANY FINANCIAL ACCOMMODATION TO THE BORROWER AND ACCEPTING THIS GUARANTY.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Should a claim (a &#147;Repayment Claim&#148;) be made upon the Banks at any time for repayment of any
amount received by the Banks in payment of the Indebtedness, or any part thereof, whether received
from the Borrower, the Guarantor pursuant hereto, or received by the Banks as the proceeds of
collateral, by reason of: (i)&nbsp;any judgment, decree or order of any court or administrative body
having jurisdiction over the Banks or any of their property; or (ii)&nbsp;any settlement or compromise
of any such Repayment Claim effected by the Banks, in their sole discretion, with the claimant
(including the Borrower), the Guarantor shall remain liable to the Banks for the amount so repaid
to the same extent as if such amount had never
originally been received by the Banks, notwithstanding any termination hereof or the
cancellation of any note or other instrument evidencing the Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Banks may, without notice to anyone, sell or assign the Indebtedness, or any part thereof,
or grant participations therein, and in any such event, the Agent, as agent for each and every
immediate or
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">remote assignee or holder of, or participant in, all or any of the Indebtedness shall
have the right to enforce this Guaranty, by suit or otherwise for the benefit of such assignee,
holder, or participant, as fully as if herein by name specifically given such right herein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless and until all of the Indebtedness have been paid in full, no release or discharge of
any other person, whether primarily or secondarily liable for and obligated with respect to the
Indebtedness, or the institution of bankruptcy, receivership, insolvency, reorganization,
dissolution or liquidation proceedings by or against the Guarantor or any other person primarily or
secondarily liable for and obligated with respect to the Indebtedness, or the entry of any
restraining or other order in any such proceedings, shall release or discharge the Guarantor, or
any other guarantor of the Indebtedness, or any other person, firm or corporation liable to the
Banks for the Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Guaranty has been delivered to the Agent at its offices in Michigan, and the rights,
remedies and liabilities of the parties shall be construed and determined in accordance with the
laws of the State of Michigan, in which State it shall be performed by the Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TO INDUCE THE BANKS TO GRANT FINANCIAL ACCOMMODATIONS TO THE BORROWER, THE GUARANTOR
IRREVOCABLY AGREES THAT ALL ACTIONS ARISING DIRECTLY OR INDIRECTLY AS A RESULT OR IN CONSEQUENCE OF
THIS GUARANTY SHALL BE INSTITUTED AND LITIGATED ONLY IN COURTS HAVING SITUS IN THE COUNTY OF
OAKLAND, MICHIGAN. THE GUARANTOR HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, AND VENUE OF ANY STATE OR FEDERAL COURT LOCATED AND HAVING ITS SITUS
IN THE COUNTY OF OAKLAND, MICHIGAN, AND WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS. THE
GUARANTOR HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS, AND CONSENTS TO THE SERVICE OF
PROCESS BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO THE GUARANTOR AT THE ADDRESS
INDICATED IN THE AGENT&#146;S RECORDS IN THE MANNER PROVIDED BY APPLICABLE STATUTE, LAW, RULE OF COURT
OR OTHERWISE. FURTHERMORE, THE GUARANTOR WAIVES ALL NOTICES AND DEMANDS IN CONNECTION WITH THE
ENFORCEMENT OF THE BANKS&#146; RIGHTS HEREUNDER, AND HEREBY CONSENTS TO, AND WAIVES NOTICE OF THE
RELEASE, WITH OR WITHOUT CONSIDERATION, OF THE BORROWER OR ANY OTHER PERSON RESPONSIBLE FOR PAYMENT
OF THE BORROWER&#146;S OBLIGATIONS, OR OF ANY COLLATERAL THEREFOR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wherever possible each provision of this Guaranty shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Guaranty shall be prohibited
by or invalid under such law, such provision shall be ineffective to the extent of such prohibition
or invalidity, without invalidating the remainder of such provision or the remaining provisions of
this Guaranty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is agreed that the Guarantor&#146;s liability is independent of any other guaranties at any time
in effect with respect to all or any part of the Indebtedness, and that the Guarantor&#146;s liability
hereunder may be enforced regardless of the existence of any such other guaranties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No delay on the part of the Agent in the exercise of any right or remedy shall operate as a
waiver thereof, and no single or partial exercise by the Agent of any right or remedy shall
preclude other or further exercise thereof, or the exercise of any other right or remedy. No
modification, termination, discharge or waiver of any of the provisions hereof shall be binding
upon the Banks, except as expressly set forth in a writing duly signed and delivered on behalf of
the Agent.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance of this Guaranty by the Guarantor have been duly
authorized by all necessary action on the part of the Guarantor and do not and will not (i)&nbsp;require
any consent or approval which has not been obtained, (ii)&nbsp;violate any provision of organizational
documents of the Guarantor or of any law, rule, regulation, order, writ, judgment, injunction,
decree, determination or award presently in effect having applicability to the Guarantor; (iii)
require the consent or approval of, or filing or registration with, any governmental body, agency
or authority, or (iv)&nbsp;result in a breach of or constitute a default under, or result in the
imposition of any lien, charge or encumbrance upon any property of the Guarantor pursuant to, any
indenture or other agreement or instrument under which the Guarantor is a party or by which it or
any of its properties may be bound or affected. The person(s) executing and delivering this
Guarantor for and on behalf of the Guarantor, are duly authorized to so act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Guaranty: (i)&nbsp;is valid, binding and enforceable in accordance with its provisions, and
no conditions exist to the legal effectiveness of this Guaranty as to the Guarantor; (ii)&nbsp;contains
the entire agreement between the Guarantor and the Banks; (iii)&nbsp;is the final expression of their
intentions; and (iv)&nbsp;supersedes all negotiations, representations, warranties, commitments, offers,
contracts (of any kind or nature, whether oral or written) prior to or contemporaneous with the
execution hereof. No prior or contemporaneous representations, warranties, understandings, offers
or agreements of any kind or nature, whether oral or written, have been made by the Banks or relied
upon by the Guarantor in connection with the execution hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;Guarantor&#148; as used herein shall mean all parties signing this Guaranty, and the
provisions hereof shall be binding upon the Guarantor, and each one of them, and all such parties,
their respective successors and assigns shall be jointly and severally obligated hereunder. This
Guaranty shall inure to the benefit of the Banks and their successors and assigns.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>&#091;SIGNATURE PAGE FOLLOWS&#093;</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>, the Mortgagor has executed and delivered this Continuing Unconditional
Guaranty as of the day and year first above written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="53%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>GUARANTOR</B>:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap  colspan="3" valign="top" align="left"><B>AGREE REALTY
CORPORATION</B>, a Maryland corporation</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Richard Agree</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Richard Agree</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>5
<FILENAME>k34657exv31w1.htm
<DESCRIPTION>EX-31.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-31.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Exhibit&nbsp;31.1</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I, Richard Agree, certify that:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">1. I have reviewed this quarterly report on Form 10-Q of Agree Realty Corporation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">2. Based on my knowledge, this report does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the
period covered by this report;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">3. Based on my knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this
report;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">4. The registrant&#146;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e)
and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act
Rules&nbsp;13a-15(f) and 15d-15(f)) for the registrant and have:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">a) Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">b) Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">c) Evaluated the effectiveness of the registrant&#146;s disclosure controls and
procedures and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">d) Disclosed in this report any change in the registrant&#146;s internal control over
financial reporting that occurred during the registrant&#146;s most recent fiscal quarter
(the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrant&#146;s
internal control over financial reporting; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">5. The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors
and the audit committee of the registrant&#146;s board of directors (or persons performing the
equivalent functions):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">a) All significant deficiencies and material weaknesses in the design or operation
of internal control over financial reporting which are reasonably likely to
adversely affect the registrant&#146;s ability to record, process, summarize and report
financial information; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">b) Any fraud, whether or not material, that involves management or other employees
who have a significant role in the registrant&#146;s internal control over financial
reporting.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="42%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Date: August&nbsp;8, 2008
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">/s/ Richard Agree</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Richard Agree</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: President and Chief Executive Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>6
<FILENAME>k34657exv31w2.htm
<DESCRIPTION>EX-31.2
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-31.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Exhibit&nbsp;31.2</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I, Kenneth R. Howe, certify that:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">1. I have reviewed this quarterly report on Form 10-Q of Agree Realty Corporation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">2. Based on my knowledge, this report does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the
period covered by this report;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">3. Based on my knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this
report;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">4. The registrant&#146;s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e)
and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act
Rules&nbsp;13a-15(f) and 15d-15(f)) for the registrant and have:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">a) Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">b) Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">c) Evaluated the effectiveness of the registrant&#146;s disclosure controls and
procedures and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">d) Disclosed in this report any change in the registrant&#146;s internal control over
financial reporting that occurred during the registrant&#146;s most recent fiscal quarter
(the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrant&#146;s
internal control over financial reporting; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">5. The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors
and the audit committee of the registrant&#146;s board of directors (or persons performing the
equivalent functions):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">a) All significant deficiencies and material weaknesses in the design or operation
of internal control over financial reporting which are reasonably likely to
adversely affect the registrant&#146;s ability to record, process, summarize and report
financial information; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">b) Any fraud, whether or not material, that involves management or other employees
who have a significant role in the registrant&#146;s internal control over financial
reporting.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-0px">Date: August&nbsp;8, 2008
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Kenneth R. Howe</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Kenneth R. Howe</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Vice President and Chief Financial Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>7
<FILENAME>k34657exv32w1.htm
<DESCRIPTION>EX-32.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-32.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Exhibit&nbsp;32.1</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Based on a review of the Quarterly Report of Agree Realty Corporation (the &#147;Company&#148;) on Form
10-Q for the period ending June&nbsp;30, 2008 as filed with the Securities and Exchange Commission on
the date hereof (the &#147;Report&#148;), I, Richard Agree, President and Chief Executive Officer of the
Company, certify, pursuant to 18 U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the
Sarbanes-Oxley Act of 2002, that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Report fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information contained in the Report fairy presents, in all
material respects, the financial condition and results of operations
of the Company.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>/s/ Richard Agree</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV></B>
Richard Agree
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">President and Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">August&nbsp;8, 2008
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>8
<FILENAME>k34657exv32w2.htm
<DESCRIPTION>EX-32.2
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-32.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Exhibit&nbsp;32.2</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Based on a review of the Quarterly Report of Agree Realty Corporation (the &#147;Company&#148;) on Form
10-Q for the period ending June&nbsp;30, 2008 as filed with the Securities and Exchange Commission on
the date hereof (the &#147;Report&#148;), I, Kenneth R. Howe, Vice President and Chief Financial Officer of
the Company, certify, pursuant to 18 U.S.C. Section&nbsp;1350, as adopted pursuant to Section&nbsp;906 of the
Sarbanes-Oxley Act of 2002, that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Report fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information contained in the Report fairy presents, in all
material respects, the financial condition and results of operations
of the Company.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>/s/ Kenneth R. Howe</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Kenneth R. Howe
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Vice President and Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">August&nbsp;8, 2008
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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