Document:

Loan Agreement Between Philadelphia Plaza-Phase II and Morgan Stanley Mortgage

 EXHIBIT 10.14 
 LOAN AGREEMENT 
 Dated as of July 31, 2003

 Between 
 PHILADELPHIA PLAZA-PHASE II, LP, 
 as Borrower 
 and 
 MORGAN STANLEY MORTGAGE CAPITAL INC., 

as Lender 

 TABLE OF CONTENTS 
  

					
	 	    	 	  	Page
	 I. DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	  	1
			
	 Section 1.1
	    	Definitions	  	1
	 Section 1.2
	    	Principles of Construction	  	18
		
	 II. THE LOAN
	  	19
			
	 Section 2.1
	    	The Loan	  	19
			
	 2.1.1
	    	Agreement to Lend and Borrow	  	19
	 2.1.2
	    	Single Disbursement to Borrower	  	19
	 2.1.3
	    	The Note	  	19
	 2.1.4
	    	Use of Proceeds	  	19
	 2.1.5
	    	Modification of Components	  	19
			
	 Section 2.2
	    	Interest Rate	  	19
			
	 2.2.1
	    	Interest Rate	  	19
	 2.2.2
	    	Intentionally Omitted	  	19
	 2.2.3
	    	Default Rate	  	19
	 2.2.4
	    	Interest Calculation	  	20
	 2.2.5
	    	Usury Savings	  	20
			
	 Section 2.3
	    	Loan Payments	  	20
			
	 2.3.1
	    	Payment	  	20
	 2.3.2
	    	Intentionally Omitted	  	20
	 2.3.3
	    	Payment on Maturity Date	  	20
	 2.3.4
	    	Late Payment Charge	  	20
	 2.3.5
	    	Method and Place of Payment	  	21
	 2.3.6
	    	Payments After Event of Default	  	21
			
	 Section 2.4
	    	Prepayments	  	21
			
	 2.4.1
	    	Voluntary Prepayments	  	21
	 2.4.2
	    	Mandatory Prepayments	  	21
	 2.4.3
	    	Prepayments After Default	  	22
			
	 Section 2.5
	    	Defeasance	  	22
			
	 2.5.1
	    	Conditions to Defeasance	  	22
	 2.5.2
	    	Defeasance Collateral Account	  	24
	 2.5.3
	    	Successor Borrower	  	24
		
	 III. REPRESENTATIONS AND WARRANTIES
	  	24
			
	 Section 3.1
	    	Borrower Representations	  	24
			
	 3.1.1
	    	Organization	  	24
	 3.1.2
	    	Proceedings	  	25
	 3.1.3
	    	No Conflicts	  	25
	 3.1.4
	    	Litigation	  	25
	 3.1.5
	    	Agreements	  	25

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	    	 	  	Page
	 3.1.6  
	    	Consents	  	25
	 3.1.7  
	    	Title	  	26
	 3.1.8  
	    	No Plan Assets	  	26
	 3.1.9  
	    	Compliance	  	26
	 3.1.10
	    	Financial Information	  	26
	 3.1.11
	    	Condemnation	  	27
	 3.1.12
	    	Utilities and Public Access	  	27
	 3.1.13
	    	Separate Lots	  	27
	 3.1.14
	    	Assessments	  	27
	 3.1.15
	    	Enforceability	  	27
	 3.1.16
	    	Assignment of Leases	  	27
	 3.1.17
	    	Insurance	  	27
	 3.1.18
	    	Licenses	  	27
	 3.1.19
	    	Flood Zone	  	27
	 3.1.20
	    	Physical Condition	  	28
	 3.1.21
	    	Boundaries	  	28
	 3.1.22
	    	Leases	  	28
	 3.1.23
	    	Filing and Recording Taxes	  	28
	 3.1.24
	    	Single Purpose	  	28
	 3.1.25
	    	Tax Filings	  	32
	 3.1.26
	    	Solvency	  	32
	 3.1.27
	    	Federal Reserve Regulations	  	32
	 3.1.28
	    	Organizational Chart	  	33
	 3.1.29
	    	Bank Holding Company	  	33
	 3.1.30
	    	No Other Debt	  	33
	 3.1.31
	    	Investment Company Act	  	33
	 3.1.32
	    	Access/Utilities	  	33
	 3.1.33
	    	No Bankruptcy Filing	  	33
	 3.1.34
	    	Full and Accurate Disclosure	  	33
	 3.1.35
	    	Foreign Person	  	33
	 3.1.36
	    	Fraudulent Transfer	  	33
	 3.1.37
	    	No Change in Facts or Circumstances; Disclosure	  	34
	 3.1.38
	    	Management Agreement	  	34
	 3.1.39
	    	Perfection of Accounts	  	34
	 3.1.40
	    	Borrower Entity/Separateness	  	34
	 3.1.41
	    	Owner Entity/Trailing Liabilities	  	36
	 3.1.42
	    	REA	  	37
			
	 Section 3.2
	    	Survival of Representations	  	37
	 Section 3.3
	    	Mezzanine Loan	  	37
		
	 IV. BORROWER COVENANTS
	  	37
			
	 Section 4.1
	    	Borrower Affirmative Covenants	  	37

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	    	 	  	Page
	 4.1.1  
	    	Existence; Compliance with Legal Requirements	  	37
	 4.1.2  
	    	Taxes and Other Charges	  	37
	 4.1.3  
	    	Litigation	  	38
	 4.1.4  
	    	Access to Property	  	38
	 4.1.5  
	    	Further Assurances; Supplemental Mortgage Affidavits	  	38
	 4.1.6  
	    	Financial Reporting	  	38
	 4.1.7  
	    	Title to the Property	  	40
	 4.1.8  
	    	Estoppel Statement	  	40
	 4.1.9  
	    	Leases	  	41
	 4.1.10
	    	Alterations	  	43
	 4.1.11
	    	Intentionally Omitted	  	43
	 4.1.12
	    	Material Agreements	  	43
	 4.1.13
	    	Performance by Borrower	  	43
	 4.1.14
	    	Costs of Enforcement/Remedying Defaults	  	43
	 4.1.15
	    	Business and Operations	  	44
	 4.1.16
	    	Loan Fees	  	44
			
	 Section 4.2
	    	Borrower Negative Covenants	  	44
			
	 4.2.1  
	    	Due on Sale and Encumbrance; Transfers of Interests	  	44
	 4.2.2  
	    	Liens	  	45
	 4.2.3  
	    	Dissolution	  	45
	 4.2.4  
	    	Change in Business	  	45
	 4.2.5  
	    	Debt Cancellation	  	45
	 4.2.6  
	    	Affiliate Transactions	  	45
	 4.2.7  
	    	Zoning	  	45
	 4.2.8  
	    	Assets	  	46
	 4.2.9  
	    	No Joint Assessment	  	46
	 4.2.10
	    	Principal Place of Business	  	46
	 4.2.11
	    	ERISA	  	46
	 4.2.12
	    	Material Agreements	  	46
	 4.2.13
	    	REA	  	46
		
	 V. INSURANCE, CASUALTY AND CONDEMNATION
	  	47
			
	 Section 5.1
	    	Insurance	  	47
			
	 5.1.1
	    	Insurance Policies	  	47
	 5.1.2
	    	Insurance Company	  	51
			
	 Section 5.2
	    	Casualty and Condemnation	  	52
			
	 5.2.1
	    	Casualty	  	52
	 5.2.2
	    	Condemnation	  	52
	 5.2.3
	    	Casualty Proceeds	  	53
			
	 Section 5.3
	    	Delivery of Net Proceeds	  	53

  

 -iii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	    	 	  	Page
	 5.3.1
	    	Minor Casualty or Condemnation	  	53
	 5.3.2
	    	Major Casualty or Condemnation	  	53
			
	 Section 5.4
	    	Net Proceeds	  	56
		
	 VI. RESERVE FUNDS
	  	56
			
	 Section 6.1
	    	Intentionally Deleted	  	56
	 Section 6.2
	    	Tax and Insurance Funds	  	56
			
	 6.2.1
	    	Deposits of Tax and Insurance Funds	  	56
	 6.2.2
	    	Release of Tax and Insurance Funds	  	57
			
	 Section 6.3
	    	Intentionally Deleted	  	57
	 Section 6.4
	    	Capital Expenditure/Leasing Funds	  	57
			
	 6.4.1
	    	Deposits of Capital Expenditure/Leasing Funds	  	57
	 6.4.2
	    	Release of Capital Expenditure/Leasing Funds	  	58
			
	 Section 6.5
	    	Debt Service Reserve Funds	  	60
			
	 6.5.1
	    	Deposits of Debt Service Reserve Funds	  	60
	 6.5.2
	    	Release of Debt Service Reserve Funds	  	60
			
	 Section 6.6
	    	Lease Termination Rollover Funds	  	60
			
	 6.6.1
	    	Deposits of Lease Termination Rollover Funds	  	60
	 6.6.2
	    	Release of Lease Termination Rollover Funds	  	61
			
	 Section 6.7
	    	Operating Expense Funds	  	62
			
	 6.7.1
	    	Deposits of Operating Expense Reserve Funds	  	62
	 6.7.2
	    	Release of Operating Expense Funds	  	62
			
	 Section 6.8
	    	Application of Reserve Funds	  	62
	 Section 6.9
	    	Security Interest in Reserve Funds	  	63
			
	 6.9.1
	    	Grant of Security Interest	  	63
	 6.9.2
	    	Income Taxes	  	63
	 6.9.3
	    	Prohibition Against Further Encumbrance	  	63
			
	 Section 6.10
	    	Letters of Credit	  	63
			
	 6.10.1
	    	Delivery of Letters of Credit	  	63
			
	 Section 6.11
	    	Provisions Regarding Letters of Credit	  	64
			
	 6.11.1
	    	Security for Debt	  	64
	 6.11.2
	    	Additional Rights of Lender	  	64
		
	 VII. PROPERTY MANAGEMENT
	  	65
			
	 Section 7.1
	    	The Management Agreement	  	65
	 Section 7.2
	    	Approval of New Manager	  	65

  

 -iv- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	    	 	  	Page
	 Section 7.3
	    	Replacement of Manager	  	65
		
	 VIII. PERMITTED TRANSFERS
	  	65
			
	 Section 8.1
	    	Permitted Transfer of the Property	  	65
	 Section 8.2
	    	Permitted Transfers of Interest in Borrower	  	66
		
	 IX. SALE AND SECURITIZATION OF MORTGAGE
	  	66
			
	 Section 9.1
	    	Sale of Mortgage and Securitization	  	66
	 Section 9.2
	    	Securitization Indemnification	  	68
		
	 X. DEFAULTS
	  	70
			
	 Section 10.1
	    	Event of Default	  	70
	 Section 10.2
	    	Remedies	  	72
	 Section 10.3
	    	Right to Cure Defaults	  	73
	 Section 10.4
	    	Remedies Cumulative	  	74
		
	 XI. MISCELLANEOUS
	  	74
			
	 Section 11.1  
	    	Successors and Assigns	  	74
	 Section 11.2  
	    	Lender’s Discretion	  	74
	 Section 11.3  
	    	Governing Law	  	75
	 Section 11.4  
	    	Modification, Waiver in Writing	  	76
	 Section 11.5  
	    	Delay Not a Waiver	  	76
	 Section 11.6  
	    	Notices	  	77
	 Section 11.7  
	    	Trial by Jury	  	77
	 Section 11.8  
	    	Headings	  	78
	 Section 11.9  
	    	Severability	  	78
	 Section 11.10
	    	Preferences	  	78
	 Section 11.11
	    	Waiver of Notice	  	78
	 Section 11.12
	    	Remedies of Borrower	  	78
	 Section 11.13
	    	Expenses; Indemnity	  	79
	 Section 11.14
	    	Schedules Incorporated	  	80
	 Section 11.15
	    	Offsets, Counterclaims and Defenses	  	80
	 Section 11.16
	    	No Joint Venture or Partnership; No Third Party Beneficiaries	  	80
	 Section 11.17
	    	Publicity	  	80
	 Section 11.18
	    	Waiver of Marshalling of Assets	  	81
	 Section 11.19
	    	Waiver of Offsets/Defenses/Counterclaims	  	81
	 Section 11.20
	    	Conflict; Construction of Documents; Reliance	  	81
	 Section 11.21
	    	Brokers and Financial Advisors	  	81
	 Section 11.22
	    	Exculpation	  	82
	 Section 11.23
	    	Prior Agreements	  	84
	 Section 11.24
	    	Servicer	  	84
	 Section 11.25
	    	Joint and Several Liability	  	84
	 Section 11.26
	    	Creation of Security Interest	  	84
	 Section 11.27
	    	Assignments and Participations	  	84

  

 -v- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	    	 	    	 	  	Page
	 SCHEDULES
	    		    		  	
	 Schedule I
	    	-	    	Rent Roll	  	
	 Schedule II
	    	-	    	Intentionally Deleted	  	
	 Schedule III
	    	-	    	Organizational Chart	  	
	 Schedule IV
	    	-	    	Form of Subordination, Non-Disturbance and Attornment Agreement	  	
	 Schedule V
	    	-	    	Schedule of Amortized Payments	  	
	 Schedule VI
	    	-	    	Description of REA	  	
	 Schedule VII
	    	-	    	Approved Lease Form	  	

  

 -vi- 

 LOAN AGREEMENT 
 THIS LOAN AGREEMENT, dated as of July 31, 2003 (as amended, restated, replaced, supplemented or otherwise modified
from time to time, this “Agreement”), between MORGAN STANLEY MORTGAGE CAPITAL INC., a New York corporation, having an address at 1221 Avenue of the Americas, 27th Floor, New York, New York 10020 (“Lender”) and PHILADELPHIA PLAZA-PHASE II, LP, a Pennsylvania
limited partnership having an address at c/o Thomas Properties Group LLC, 515 South Flower, Suite 600, Los Angeles, California 90071 (“Borrower”). 
 All capitalized terms used herein shall have the respective meanings set forth in Article I hereof. 
 WITNESSETH: 
 WHEREAS, Borrower desires to obtain the Loan from Lender; and

 WHEREAS, Lender is willing to make the Loan to Borrower, subject to and in accordance with the conditions and terms of this
Agreement and the other Loan Documents. 
 NOW, THEREFORE, in consideration of the covenants set forth in this Agreement, and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree, represent and warrant as follows: 
 I. DEFINITIONS; PRINCIPLES OF CONSTRUCTION 
 Section 1.1
Definitions. For all purposes of this Agreement, except as otherwise expressly provided: 
 “Acquired Property
Statements” shall have the meaning set forth in Section 9.1(c). 
 “Affiliate” shall
mean, as to any Person, any other Person that, directly or indirectly, owns more than forty percent (40%) of, is in control of, is controlled by or is under common ownership or control with such Person or is a director or officer of such Person
or of an Affiliate of such Person. As used in this definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management, policies or activities of a Person,
whether through ownership of voting securities, by contract or otherwise. 
 “Agent” shall mean PNC
Bank, National Association, and any successor Eligible Institution thereto. 
 “ALTA” shall mean
American Land Title Association, or any successor thereto. 
 “Alteration Threshold” shall mean
$6,600,000.00. 
 “Annual Budget” shall mean the operating and capital budget for the Property setting
forth Borrower’s good faith estimate of gross revenue, operating expenses (including the

  

 - 1 - 

 
Philadelphia Gross Receipts Tax, Net Profits Tax and such other customary business taxes incurred by Borrower in the ordinary course of operating the Property and the cost of sundry services
performed by Borrower for a Tenant, the cost of which is reimbursable to Borrower by such Tenant), real estate taxes, and Capital Expenditures for the applicable Fiscal Year. 
 “Approved Annual Budget” shall have the meaning set forth in Section 4.1.6(e). 
 “Approved Lease Form” shall mean the form of Lease approved by Lender and attached hereto as Schedule VII.

 “Assignment of Leases” shall mean that certain first priority Assignment of Leases and Rents, dated
as of the date hereof, from Borrower, as assignor, to Lender, as assignee, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Assignment of Management Agreement” shall mean that certain Assignment of Management Agreement and Subordination of
Management Fees dated the date hereof among Borrower, Manager and Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Award” shall mean any compensation paid by any Governmental Authority in connection with a Condemnation in respect
of all or any part of the Property. 
 “Bankruptcy Code” shall mean Title 11 of the United States Code
entitled “Bankruptcy,” as amended from time to time, and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating to bankruptcy, insolvency or
creditors’ rights. 
 “Basic Carrying Costs” shall mean the sum of the following costs associated
with the Property for the relevant Fiscal Year or payment period: (i) Taxes and (ii) Insurance Premiums. 
 “Borrower” shall mean Philadelphia Plaza-Phase II, LP, a Pennsylvania limited partnership, together with its permitted successors and permitted assigns. 
 “Borrower General Partner” shall mean TCS Genpar, LLC, a Delaware limited liability company. 
 “Borrower’s Partners” shall have the meaning set forth in Section 11.22(b). 
 “Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday on which national banks are not
open for general business in (i) the State of New York, (ii) the state where the corporate trust office of the Trustee is located, or (iii) the state where the servicing offices of the Servicer are located. 
 “Capital Expenditures” for any period shall mean amounts expended for replacements and alterations to the Property
and required to be capitalized according to GAAP. 
  

 - 2 - 

 “Capital Expenditure/Leasing Funds” shall have the meaning set forth
in Section 6.4.1. 
 “Capital Expenditure/Leasing Funds Amount” shall mean (a) with respect to
the period of time from the Closing Date but prior to July 1, 2009, an amount equal to $178,739.25 and (b) with respect to the period of time from and after July 1, 2009 through the Maturity Date, an amount equal to $79,439.67.

 “Capital Expenditure Funds” shall have the meaning set forth in Section 6.4.2(b). 
 “Capital Expenditures Work” shall mean any labor performed or materials installed in connection with any Capital
Expenditure. 
 “Cash Management Agreement” shall mean that certain Cash Management Agreement of even
date herewith among Lender, Borrower, Manager and Agent. 
 “Casualty” shall mean the occurrence of any
casualty, damage or injury, by fire or otherwise, to the Property or any part thereof. 
 “Casualty
Consultant” shall have the meaning set forth in Section 5.3.2(c). 
 “Casualty
Retainage” shall have the meaning set forth in Section 5.3.2(d). 
 “Closing Date”
shall mean the date of this Agreement. 
 “Code” shall mean the Internal Revenue Code of 1986, as
amended, and as it may be further amended from time to time, any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 
 “Component A1” shall mean that portion of the Loan in the amount of Thirty Three Million and No/100 Dollars
($33,000,000.00) made by Lender to Borrower pursuant to this Agreement. 
 “Component A1 Rate” shall
mean a rate per annum equal to Six and Three-Tenths percent (6.30%). 
 “Component A2” shall mean that
portion of the Loan in the amount of Thirty Three Million and No/100 Dollars ($33,000,000.00) made by Lender to Borrower pursuant to this Agreement. 
 “Component A2 Rate” shall mean a rate per annum equal to Six and Three-Tenths percent (6.30%). 
 “Component A3” shall mean that portion of the Loan in the amount of Thirty Three Million and No/100 Dollars ($33,000,000.00) made by Lender to Borrower pursuant to this Agreement.

  

 - 3 - 

 “Component A3 Rate” shall mean a rate per annum equal to Six and
Three-Tenths percent (6.30%). 
 “Component A4” shall mean that portion of the Loan in the amount of
Thirty Three Million and No/100 Dollars ($33,000,000.00) made by Lender to Borrower pursuant to this Agreement. 
 “Component A4 Rate” shall mean a rate per annum equal to Six and Three-Tenths percent (6.30%). 
 “Components” shall mean, collectively, Component Al, Component A2, Component A3 and Component A4. 
 “Condemnation” shall mean a temporary or permanent taking by any Governmental Authority as the result or in lieu or in anticipation of the exercise of the right of condemnation or eminent domain, of all or any part
of the Property, or any interest therein or right accruing thereto, including any right of access thereto or any change of grade affecting the Property or any part thereof. 
 “Constituent Partner” shall have the meaning set forth in Section 11.22(b). 
 “Debt” shall mean the outstanding principal amount of the Loan together with all interest accrued and unpaid thereon
and all other sums (including the Yield Maintenance Premium if payable pursuant to any of the Loan Documents) due to Lender in respect of the Loan under the Note, this Agreement, the Mortgage, the Environmental Indemnity or any other Loan Document.

 “Debt Service” shall mean, with respect to any particular period of time, scheduled principal and
interest payments under the Note. 
 “Debt Service Reserve Account” shall have the meaning set forth in
the Cash Management Agreement. 
 “Debt Service Reserve Funds” shall have the meaning set forth in
Section 6.5.1. 
 “Debt Service Reserve Target Amount” shall have the meaning set forth in
Section 6.5.1. 
 “Debt Service Reserve Target Deposit” shall have the meaning set forth in
Section 6.5.1. 
 “Default” shall mean the occurrence of any event hereunder or under any other
Loan Document which, but for the giving of notice or passage of time, or both, would be an Event of Default. 
 “Default Rate” shall mean, with respect to each Component, a rate per annum equal to the lesser of (i) the maximum rate permitted by applicable law, or (ii) five percent (5%) above the Interest Rate.

  

 - 4 - 

 “Defeasance Collateral” shall mean U.S. Obligations, which provide
payments (i) on or prior to, but as close as possible to, the Business Day immediately preceding all Monthly Payment Dates and other scheduled payment dates, if any, under the Note after the Defeasance Date and up to and including the Permitted
Prepayment Date, and (ii) in amounts equal to or greater than the Scheduled Defeasance Payments relating to such Monthly Payment Dates and other scheduled payment dates. 
 “Defeasance Collateral Account” shall have the meaning set forth in Section 2.5.3. 
 “Defeasance Date” shall have the meaning set forth in Section 2.5.1(a)(i). 
 “Defeasance Event” shall have the meaning set forth in Section 2.5.1(a). 
 “Disclosure Document” shall have the meaning set forth in Section 9.2(a). 
 “Disclosure Document Date” shall have the meaning set forth in Section 9.1(c)(iv). 
 “Eligible Account” shall mean an identifiable account which is separate from all other funds held by the holding
institution that is either (a) an account or accounts maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution or (b) a segregated trust account or
accounts maintained with the corporate trust department of a federal or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository institution or trust company is
subject to regulations substantially similar to 12 C.F.R, § 9.10(b), having in either case a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal and state authority. An Eligible Account will
not be evidenced by a certificate of deposit, passbook or other instrument. 
 “Eligible Institution”
shall mean a federal or state chartered depository institution or trust company insured by the Federal Deposit Insurance Corporation the short term unsecured debt obligations or commercial paper of which are rated at least A-1 by S&P, P-1 by
Moody’s and F-1+ by Fitch in the case of accounts in which funds are held for thirty (30) days or less or, in the case of Letters of Credit or accounts in which funds are held for more than thirty (30) days, the long term unsecured
debt obligations of which are rated at least “AA” by Fitch and S&P and “Aa2” by Moody’s. 
 “Environmental Indemnity” shall mean that certain Environmental Indemnity Agreement dated as of the date hereof executed by Borrower in connection with the Loan for the benefit of Lender. 
 “Equipment” shall have the meaning set forth in the granting clause of the Mortgage. 
 “ERISA” shall have the meaning set forth in Section 3.1.8. 
 “Event of Default” shall have the meaning set forth in Section 10.1. 
  

 - 5 - 

 “Exchange Act” shall have the meaning set forth in
Section 9.2(a). 
 “Exchange Act Filing” shall have the meaning set forth in
Section 9.1(c)(vi). 
 “Excusable Delay” shall mean a delay due to acts of God, governmental
restrictions, stays, judgments, orders, decrees, enemy actions, civil commotion, fire, casualty, strikes, work stoppages, shortages of labor or materials or other causes beyond the reasonable control of Borrower, but lack of funds in and of itself
shall not be deemed a cause beyond the control of Borrower. 
 “Fiscal Year” shall mean each twelve
month period commencing on January 1 and ending on December 31 during each year of the term of the Loan. 
 “Fitch” shall mean Fitch, Inc. 
 “GAAP” shall mean generally accepted
accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or
agencies with similar functions of comparable stature and authority within the accounting profession), or in such other statements by such entity as may be in general use by significant segments of the U.S. accounting profession. 
 “Governmental Authority” shall mean any court, board, agency, commission, office or authority of any nature
whatsoever or any governmental unit (federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence. 
 “Guarantor” shall mean Thomas Development Partners, LP, a California limited partnership, or the guarantor under any replacement guaranty issued pursuant to Section 5.16 of
the Guaranty. 
 “Guarantor Operational Covenant” shall mean have the meaning set forth in the Guaranty.

 “Guaranty” shall mean that certain Guaranty of Recourse Obligations of even date herewith from
Guarantor for the benefit of Lender or any replacement guaranty issued pursuant to Section 5.16 of the Guaranty. 
 “Improvements” shall have the meaning set forth in the granting clause of the Mortgage. 
 “Indebtedness” shall mean, for any Person, without duplication: (i) all indebtedness of such Person for borrowed money, for amounts drawn under a letter of credit, or for the deferred purchase price of property
for which such Person or its assets is liable, (ii) all unfunded amounts under a loan agreement, letter of credit, or other credit facility for which such Person would be liable if such amounts were advanced thereunder, (iii) all amounts
requited to be paid by such Person as a guaranteed payment to partners or a preferred or special dividend, including any mandatory redemption of shares or interests, (iv) all indebtedness guaranteed by such Person, (v) all obligations
under leases that constitute capital leases for which such Person is liable, and (vi) all obligations of such Person under interest rate swaps, caps, floors, collars and other interest hedge agreements, in each case whether such Person is
liable contingently or otherwise, as obligor, guarantor or otherwise, or in respect of which obligations such Person otherwise assures a creditor against loss. 
  

 - 6 - 

 “Indemnified Liabilities” shall have the meaning set forth in
Section 11.13(b). 
 “Independent Director” shall have the meaning set forth in
Section 3.1.24(p). 
 “Insolvency Opinion” shall mean that certain bankruptcy nonconsolidation
opinion letter dated the date hereof delivered by Pircher, Nichols and Meeks in connection with the Loan. 
 “Insurance Premiums” shall have the meaning set forth in Section 5.1.1(b). 
 “Interest Period” shall mean (a) for the first interest period hereunder, (i) if the Closing Date occurs on or before the eighth (8th) day of a calendar month, the period commencing on the Closing Date
and ending on (and including) the eighth (8th) day of the calendar month in which the Closing Date occurs, and (ii) if the Closing Date occurs on or after the ninth (9th) day of a calendar month, the period commencing on the Closing
Date and ending on (and including) the eighth (8th) day of the following calendar month and (b) for each interest period thereafter commencing August 9, 2003, the period commencing on the ninth (9th) day of each calendar month
and ending on (and including) the eighth (8th) day of the following calendar month. Each Interest Period as set forth in clause (b) above shall be a full month and shall not be shortened by reason of any payment of the Loan prior to the
expiration of such Interest Period. 
 “Interest Rate” shall mean (a) with respect to Component Al,
the Component A1 Rate, (b) with respect to Component A2, the Component A2 Rate, (c) with respect to Component A3, the Component A3 Rate and (d) with respect to Component A4, the Component A4 Rate. 
 “Junior A Mezzanine Borrower” shall mean Philadelphia Plaza-Phase II, LP, a Pennsylvania limited partnership.

 “Junior A Mezzanine Lender” shall mean DB Realty Mezzanine Parallel Fund II, LLC, a Delaware limited
liability company. 
 “Junior A Mezzanine Loan” shall mean the mezzanine loan made by Junior A Mezzanine
Lender to Junior A Mezzanine Borrower in the aggregate principal amount of Three Million Five Hundred Thousand and No/100 Dollars ($3,500,000.00). 
 “Junior A Mezzanine Loan Agreement” shall mean that certain Junior A Mezzanine Loan Agreement dated as of the date hereof between Junior A Mezzanine Lender and Junior A Mezzanine
Borrower and TCS SPE 2, L.P., a Delaware limited partnership, as a guarantor as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  

 - 7 - 

 “Junior A Mezzanine Loan Documents” shall mean, collectively, the
Junior A Mezzanine Note, the Junior A Mezzanine Loan Agreement and any and all other documents evidencing or securing the Junior A Mezzanine Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

 “Junior A Mezzanine Note” shall mean that certain Junior A Mezzanine Promissory Note dated the date
hereof made by the Junior A Mezzanine Borrower to Junior A Mezzanine Lender in the stated principal amount of $3,500,000.00, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Junior B Mezzanine Borrower” shall mean Philadelphia Plaza-Phase II, LP, a Pennsylvania limited partnership.

 “Junior B Mezzanine Lender” shall mean DB Realty Mezzanine Parallel Fund 11, LLC, a Delaware limited
liability company. 
 “Junior B Mezzanine Loan” shall mean the mezzanine loan made by Junior B Mezzanine
Lender to Junior B Mezzanine Borrower in the aggregate principal amount of Twenty Four Million Four Hundred Fifty Seven Thousand Three Hundred Forty and No/100 Dollars ($24,457,340.00). 
 “Junior B Mezzanine Loan Agreement” shall mean that certain Junior B Mezzanine Loan Agreement dated as of the date
hereof between Junior B Mezzanine Lender and Junior B Mezzanine Borrower and TCS SPE 3, L.P., a Delaware limited partnership, as a guarantor, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

 “Junior B Mezzanine Loan Documents” shall mean, collectively, the Junior B Mezzanine Note, the Junior
B Mezzanine Loan Agreement and any and all other documents evidencing or securing the Junior B Mezzanine Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Junior B Mezzanine Note” shall mean that certain Junior B Mezzanine Promissory Note dated the date hereof made by
the Junior B Mezzanine Borrower to Junior B Mezzanine Lender in the stated principal amount of $24,457,340.00, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Lease” shall mean any lease, sublease or subsublease, letting, license, concession or other agreement (whether
written or oral and whether now or hereafter in effect) pursuant to which any Person is granted a possessory interest in, or right to use or occupy all or any portion of any space in the Property, and every modification, amendment or other agreement
relating to such lease, sublease, subsublease, or other agreement entered into in connection with such lease, sublease, subsublease, or other agreement and every guarantee of the performance and observance of the covenants, conditions and agreements
to be performed and observed by the other party thereto. Subleases granted by parties other than Borrower, or its predecessor in interest, shall not be included in this definition unless there is any agreement with Borrower, or its predecessor in
interest, which could make such sublease a direct Lease with the fee owner of the Property. 
  

 - 8 - 

 “Lease Termination Fee” shall have the meaning set forth in
Section 6.6.1. 
 “Lease Termination Rollover Funds” shall have the meaning set forth in
Section 6.6.1. 
 “Leasing Funds” shall have the meaning set forth in Section 6.4.2(c).

 “Legal Requirements” shall mean all federal, state, county, municipal and other governmental
statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities affecting Borrower or the Property or any part thereof or the construction, use, alteration or operation thereof, or any part
thereof, whether now or hereafter enacted and in force, including, without limitation, the Americans with Disabilities Act of 1990, and all permits, licenses and authorizations and regulations relating thereto. 
 “Lender” shall mean Morgan Stanley Mortgage Capital Inc., a New York corporation, together with its successors and
assigns. 
 “Lender Indemnitees” shall have the meaning set forth in Section 11.13(b). 

“Letter of Credit” shall mean an irrevocable, unconditional, transferable, clean sight draft letter of credit
acceptable to Lender and the Rating Agencies (either an evergreen letter of credit or one which does not expire until at least thirty (30) Business Days after the Maturity Date) in favor of Lender and entitling Lender to draw thereon in New
York, New York, issued by a domestic Eligible Institution or the U.S. agency or branch of a foreign Eligible Institution. If at any time the bank issuing any such Letter of Credit shall cease to be an Eligible Institution, Lender shall have the
right immediately to draw down the same in full and hold the proceeds of such draw in accordance with the applicable provisions hereof. 
 “Liabilities” shall have the meaning set forth in Section 9.2(b). 
 “Lien” shall mean any mortgage, deed of trust, lien, pledge, hypothecation, assignment, security interest, or any other encumbrance, charge or transfer of, on or affecting the
Property or any portion thereof or Borrower, or any interest therein, including, without limitation, any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing,
the filing of any financing statement, and mechanic’s, materialmen’s and other similar liens and encumbrances. 
 “Loan” shall mean the loan in the original principal amount of One Hundred Thirty Two Million and No/100 Dollars ($132,000,000.00) made by Lender to Borrower pursuant to this Agreement. 
 “Loan Documents” shall mean, collectively, this Agreement, the Note, the Mortgage, the Assignment of Leases, the
Cash Management Agreement, the Environmental Indemnity, the Guaranty, the Assignment of Management Agreement and any other document pertaining to the Property as well as all other documents, certificates and agreements now or hereafter executed
and/or delivered in connection with the Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  

 - 9 - 

 “Loss” shall mean any and all liabilities, claims, obligations,
debts, actual damages (excluding diminution in value and other consequential damages), fines, penalties, charges, fees, actual out-of-pocket costs and expenses actually incurred by Lender in connection with a matter. 
 “Major Lease” shall mean any Lease (i) covering more than 50,000 rentable square feet at the Property or
(ii) made with a Tenant that is a Tenant under another Lease at the Property or that is an Affiliate of any other Tenant under a Lease at the Property, if the Leases together cover more than 50,000 rentable square feet. 
 “Management Agreement” shall mean that certain Amended and Restated Management and Leasing Agreement entered into
July 1, 1997 by and between Borrower and the Manager, pursuant to which the Manager is to provide management, leasing and other services with respect to the Property. 
 “Manager” shall mean Thomas Development Partners, LP, a California limited partnership or any other manager approved
in accordance with the terms and conditions of the Loan Documents. 
 “Material Agreements” means each
contract and agreement relating to the ownership, management, development, use, operation, leasing, maintenance, repair or improvement of the Property, other than the Management Agreement and the Leases, under which there is an obligation of
Borrower to pay more than $500,000.00 per annum. 
 “Maturity Date” shall mean May 9, 2013 or such
other date on which the final payment of principal of the Note becomes due and payable as therein or herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise; provided, however, if a Defeasance Event
occurs, the Maturity Date shall mean the Permitted Prepayment Date. 
 “Maximum Legal Rate” shall mean
the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charge or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents, under
the laws of such state or states whose laws are held by any court of competent jurisdiction to govern the interest rate provisions of the Loan. 
 “Minimum Disbursement Amount” shall mean Twenty-Five Thousand and No/100 Dollars ($25,000). 
 “Monthly Debt Service Payment Amount” shall mean, on any Monthly Payment Date, the amount of all accrued but unpaid interest, plus the amortization as set forth on Schedule V.

 “Monthly Operating Expense Amount” shall have the meaning set forth in Section 6.7.1.

 “Monthly Operating Expense Funds” shall have the meaning set forth in Section 6.7.1. 

 

 - 10 - 

 “Monthly Payment Date” shall mean the ninth (9th) day of every
calendar month occurring during the term of the Loan. 
 “Moody’s” shall mean Moody’s
Investors Service, Inc. 
 “Morgan Stanley” shall have the meaning set forth in Section 9.2(b).

 “Morgan Stanley Group” shall have the meaning set forth in Section 9.2(b). 
 “Mortgage” shall mean that certain first priority Mortgage, Assignment of Leases and Rents and Security Agreement,
dated the date hereof, executed and delivered by Borrower as security for the Loan and encumbering the Property, as the same maybe amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Net Proceeds” shall mean: (i) the net amount of all insurance proceeds payable as a result of a Casualty to
the Property, after deduction of reasonable costs and expenses (including, but not limited to, reasonable attorneys’ fees), if any, in collecting such insurance proceeds, or (ii) the net amount of the Award, after deduction of reasonable
costs and expenses (including, but not limited to, reasonable attorneys’ fees), if any, in collecting such Award. 
 “Net Proceeds Deficiency” shall have the meaning set forth in Section 5.3.2(f). 
 “Note” shall mean, collectively, Note Al, Note A2, Note A3 and Note A4, as either of the same may hereafter be amended, supplemented, restated, increased, extended, consolidated or severed from time to time.

 “Note A1” shall mean that certain Promissory Note Al dated the date hereof executed by Borrower and
payable to the order of Lender which represents Component Al of the Loan, as the same may hereafter be amended, supplemented, restated, increased, extended, consolidated or severed from time to time. 
 “Note A2” shall mean that certain Promissory Note A2 dated the date hereof executed by Borrower and payable to the
order of Lender which represents Component A2 of the Loan, as the same may hereafter be amended, supplemented, restated, increased, extended, consolidated or severed from time to time. 
 “Note A3” shall mean that certain Promissory Note A3 dated the date hereof executed by Borrower and payable to the
order of Lender which represents Component A3 of the Loan, as the same may hereafter be amended, supplemented, restated, increased, extended, consolidated or severed from time to time. 
 “Note A4” shall mean that certain Promissory Note A4 dated the date hereof executed by Borrower and payable to the
order of Lender which represents Component A4 of the Loan, as the same may hereafter be amended, supplemented, restated, increased, extended, consolidated or severed from time to time. 
 “Notice” shall have the meaning set forth in Section 11.6. 
  

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 “Officer’s Certificate” shall mean a certificate delivered to
Lender by Borrower which is signed by an authorized officer of a constituent general partner of Borrower or such other authorized representative which in all events shall be subject to Section 11.22 hereof. 
 “Operating Agreements” shall mean the REA, including any other covenants, restrictions or agreements of record
relating to the construction, operation or use of the Property. 
 “Operating Expense Funds” shall have
the meaning set forth in Section 6.7.1. 
 “Other Charges” shall mean all ground rents, maintenance
charges, impositions other than Taxes, and any other charges, including, without limitation, vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Property, now or hereafter levied or assessed or imposed
against the Property or any part thereof. 
 “Otherwise Rated Insurer” shall have the meaning set forth
in Section 5.1.2. 
 “Owner Related Party” or “Owner Related Parties” shall
have the meaning set forth in Section 4.1.30(d). 
 “Permitted Encumbrances” shall mean,
collectively, (i) he Liens and security interests created by the Loan Documents, (ii) all Liens, encumbrances and other matters disclosed in the Title Insurance Policy, (iii) Liens, if any, for Taxes imposed by any Governmental
Authority not yet due or delinquent, (iv) such other title and survey exceptions as Lender has approved or may approve in writing in Lender’s sole discretion and (v) easements which (a) are necessary for the operation of the
Property that do not and would not have a material and adverse effect on the Property or (b) Lender has approved or may approve in Lender’s discretion. 
 “Permitted Fund Manager” means any entity which is not subject to a bankruptcy proceeding and is a nationally-recognized manager of investment funds investing in debt or equity
interests relating to commercial real estate which is investing through a fund which has committed capital of at least $250,000,000. 
 “Permitted Investments” shall have the meaning set forth in the Cash Management Agreement. 
 “Permitted Prepayment Date” shall mean March 9, 2013. 
 “Permitted
Transferee” shall mean (A) a corporation, partnership or limited liability company (i) acceptable to Lender in its sole discretion, (ii) that qualifies as a single purpose, bankruptcy remote entity under criteria
established by the Rating Agencies and (iii) whose counsel has delivered to Lender a non-consolidation opinion reasonably acceptable to Lender and acceptable to the Rating Agencies in their sole discretion, (B) Senior Mezzanine under or
its nominee, (C) Junior A Mezzanine Lender or its nominee or (D) Junior B Mezzanine Lender or its nominee. 
 “Person” shall mean any individual, corporation, partnership, limited liability company, joint venture, estate, trust, unincorporated association, any other entity, any federal, state, county or municipal government
or any bureau, department or agency thereof and any fiduciary acting in such capacity on behalf of any of the foregoing. 
  

 - 12 - 

 “Plan Assets Regulation” shall have the meaning set forth in
Section 3.1.8. 
 “Policies” shall have the meaning set forth in Section 5.1.1(b). 

“Preferred Equity” shall mean the equity contribution as of the date hereof by an Affiliate of Borrower into TCS
SPE 2, L.P., a Delaware limited partnership of Two Million and No/100 Dollars ($2,000,000). 
 “Prepayment
Date” shall mean the date on which the Loan is prepaid in accordance with the terms hereof. 
 “Prescribed Laws” shall mean, collectively, (a) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56) (The USA PATRIOT
Act), (b) Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, and relating to Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism, (c) the
International Emergency Economic Power Act, 50 U.S.C. § 1701 et. seq. and (d) all other Legal Requirements relating to money laundering or terrorism. 
 “Property” shall mean the parcel of real property, the Improvements thereon and all personal property owned by Borrower and encumbered by the Mortgage, together with all rights
pertaining to such property and Improvements, all as more particularly described in the Granting Clauses of the Mortgage. 
 “Qualified Transferee” shall mean (i) a real estate investment trust, bank, saving and loan association, investment bank, insurance company, trust company, commercial credit corporation, pension plan, pension
fund or pension advisory firm, mutual fund, government entity or plan, (ii) investment company, money management firm or “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, as amended, or
an institutional “accredited investor” within the meaning of Regulation D under the Securities Act of 1933, as amended, which is regularly engaged in the business of making or owning mezzanine loans or loans of similar types to the Loan,
(iii) a Qualified Trustee in connection with a securitization of, the creation of collateralized debt obligations (“CDO”) secured by or financing through an “owner trust” of, a mezzanine loan, so long as (I) the
special servicer or manager of such securitization, CDO or trust has the Required Special Servicer Rating, (II) the “controlling class” of such securitization vehicle is held by a Qualified Transferee and (III) the operative documents of
the related securitization vehicle, CDO or financing must require that (x) the “controlling class” or “equity interest” in such securitization vehicle or CDO are owned by a Qualified Transferee or a Permitted Investment Fund
(as hereinafter defined) and (y) if any of the relevant trustee, special servicer, manager or controlling class fails to meet the requirements of such clause, such entity must be replaced by a qualifying entity within 30 days, (iv) an
investment fund, limited liability company, limited partnership or general partnership (a “Permitted Investment Fund”) where a Qualified Transferee or a Permitted Fund Manager acts as the general partner, managing member or fund
manager and at least 50% of the equity interests 
  

 - 13 - 

 
in such Permitted Investment Fund are owned, directly or indirectly, by one or more of the following: a Qualified Transferee, an institutional “accredited investor,” within the meaning
of Regulation D promulgated under the Securities Act of 1933, as amended, and/or a “qualified institutional buyer” or both within the meaning of Rule 144A promulgated under the Securities Exchange Act of 1934 (provided each institutional
“accredited investor,” or “qualified institutional buyer” meets the test set forth in clause (vi)(A) below), as amended, (v) any other lender or entity (including any opportunity funds) regularly engaged in the business of
making mezzanine loans which has been approved as a Qualified Transferee hereunder by the Rating Agencies, (vi) an institution substantially similar to any of the foregoing entities described in clauses (i) or (ii) of this definition,
and as to each of the entities described in clauses (i), (ii) and (vi) provided such entity (A) has total assets (in name or under management) in excess of $650,000,000 and (except with respect to a pension advisory firm or similar
fiduciary) capital/statutory surplus or shareholder’s equity of $250,000,000; and (B) is regularly engaged in the business of making or owning commercial real estate loans or commercial loans secured by a pledge of interests in a mortgage
borrower or (vii) any entity Controlled (as defined below) by any one or more of the entities described in this definition. For purposes of this definition only, “Control” means the ownership, directly or indirectly, in the
aggregate of more than fifty percent (50%) of the beneficial ownership interest of an entity and the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of an entity, whether through
the ability to exercise voting power, by contract or otherwise. 
 “Rating Agencies” shall mean, prior
to the final Securitization of the Loan, each of S&P, Moody’s and Fitch, or any other nationally-recognized statistical rating agency which has been designated by Lender and, after the final Securitization of the Loan, shall mean any of the
foregoing that have rated any of the Securities. 
 “Rating Agency Confirmation” shall mean a written
affirmation from each of the Rating Agencies that the credit rating of the Securities by such Rating Agency immediately prior to the occurrence of the event with respect to which such Rating Agency Confirmation is sought will not be qualified,
downgraded or withdrawn as a result of the occurrence of such event, which affirmation may be granted or withheld in such Rating Agency’s sole and absolute discretion. 
 “Rating Surveillance Charge” shall have the meaning set forth in Section 9.3. 
 “REA” shall mean, collectively, as the same may be amended, restated, supplemented or otherwise modified from time
to time, that certain Reciprocal Easement Agreement more specifically described on Schedule VI attached hereto and made a part hereof. 
 “Registration Statement” shall have the meaning set forth in Section 9.2(b). 
 “Regulation D” shall mean Regulation D of the Board of Governors of the Federal Reserve System from time to time in effect, including any successor or other Regulation or official interpretation of said Board of
Governors relating to reserve requirements applicable to member banks of the Federal Reserve System. 
  

 - 14 - 

 “Release Date” shall mean the date that is the earlier to occur of
(i) three (3) years from the Closing Date or (ii) two (2) years from the “startup day” (within the meaning of Section 860G(a)(9) of the Code) of the REMIC Trust established in connection with the last
Securitization involving any portion of this Loan. 
 “REMIC Trust” shall mean a “real estate
mortgage investment conduit” within the meaning of Section 860D of the Code that holds the Note. 
 “Rent
Deficiency” shall have the meaning set forth in Section 6.6.2. 
 “Rents” shall
mean all rents, moneys payable as damages or in lieu of rent, revenues, deposits (including, without limitation, security, utility and other deposits), accounts, cash, issues, profits, charges for services rendered, and other consideration of
whatever form or nature received by or paid to or for the account of or benefit of Borrower or its agents or employees from any and all sources arising from or attributable to the Property. 
 “Replacement Lease” shall have the meaning set forth in Section 6.6.2. 
 “Required Special Servicer Rating” means a servicer on its approved list of special servicers in the case of S&P
and, in the case of Moody’s, a special servicer that is acting as special servicer in a commercial mortgage loan securitization that was rated by Moody’s within the six month period prior to the date of determination and Moody’s has
not downgraded or withdrawn the then-current rating on any class of commercial mortgage securities or placed any class of commercial mortgage securities on watch citing the continuation of such special servicer as special servicer of such commercial
mortgage securities. The requirement of any agency not a Rating Agency shall be disregarded. 
 “Reserve
Funds” shall mean, collectively, the Capital Expenditure/Leasing Funds, the Debt Service Reserve Funds, the Operating Expense Funds, the Tax and Insurance Funds and the Lease Termination Rollover Funds. 
 “Restoration” shall have the meaning set forth in Section 5.2.1. 
 “Restoration Threshold” shall mean $6,600,000.00. 
 “S&P” shall mean Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc.

 “Scheduled Defeasance Payments” shall mean scheduled payments of interest and principal under the
Note for all Monthly Payment Dates occurring after the Defeasance Date and up to and including the Maturity Date (including, in the case of a total defeasance, the outstanding principal balance on the Note as of the Maturity Date), and all payments
required after the Defeasance Date, if any, under the Loan Documents for servicing fees, Rating Surveillance Charges and other similar charges. 
 “Secondary Market Transaction” shall have the meaning set forth in Section 9.1(a). 
  

 - 15 - 

 “Securities” shall have the meaning set forth in
Section 9.1(a). 
 “Securities Act” shall have the meaning set forth in Section 9.2(a).

 “Securitization” shall have the meaning set forth in Section 9.1 (a). 
 “Security Agreement” shall mean a security agreement in form and substance that would be satisfactory to a prudent
lender pursuant to which Borrower grants Lender a perfected, first priority security interest in the Defeasance Collateral Account and the Defeasance Collateral. 
 “Senior Mezzanine Borrower” shall mean Philadelphia Plaza-Phase II, LP, a Pennsylvania limited partnership. 
 “Senior Mezzanine Debt Service” shall mean, with respect to any particular period of time, scheduled principal and
interest payments under the Senior Mezzanine Note. 
 “Senior Mezzanine Lender” shall mean DB Realty
Mezzanine Investment Fund II, L.L.C., a Delaware limited liability company. 
 “Senior Mezzanine Loan”
shall mean the mezzanine loan made by Senior Mezzanine Lender to Senior Mezzanine Borrower in the aggregate principal amount of Forty Nine Million One Hundred Thirty Thousand and No/100 Dollars ($49,130,000.00). 
 “Senior Mezzanine Loan Agreement” shall mean that certain Senior Mezzanine Loan Agreement dated as of the date
hereof between Senior Mezzanine Lender and Senior Mezzanine Borrower and TCS SPE 1, L.P., a Delaware limited partnership, as a guarantor, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

 “Senior Mezzanine Loan Documents” shall mean, collectively, the Senior Mezzanine Note, the Senior
Mezzanine Loan Agreement and any and all other documents evidencing or securing the Senior Mezzanine Loan, as amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Senior Mezzanine Note” shall mean that certain Senior Mezzanine Promissory Note dated the date hereof made by the
Senior Mezzanine Borrower to Senior Mezzanine Lender in the stated principal amount of $49,130,000.00, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Servicer” shall have the meaning set forth in Section 11.24. 
 “Servicing Agreement” shall have the meaning set forth in Section 11.24. 
 “Severed Loan Documents” shall have the meaning set forth in Section 10.2(c). 
 “SPC Party” shall have the meaning set forth in Section 3.1.24(o). 
  

 - 16 - 

 “Standard Statement” shall have the meaning set forth in
Section 9.1(c). 
 “State” shall mean the State or Commonwealth in which the Property or any part
thereof is located. 
 “Successor Borrower” shall have the meaning set forth in Section 2.5.3.

 “Survey” shall mean a survey of the Property prepared by a surveyor licensed in the State and
reasonably satisfactory to Lender and the company or companies issuing the Title Insurance Policy, and containing a certification of such surveyor reasonably satisfactory to Lender. 
 “Tax and Insurance Funds” shall have the meaning set forth in Section 6.2.1. 
 “Taxes” shall mean all real estate and personal property taxes, assessments, water rates or sewer rents, now or
hereafter levied or assessed or imposed against the Property or part thereof, together with all interest and penalties thereon. 
 “Tenant” shall mean any Person obligated by contract or otherwise to pay monies (including a percentage of gross income, revenue or profits) under any Lease now or hereafter affecting all or any part of the Property.

 “Termination Space” shall have the meaning set forth in Section 6.6.1. 
 “TRIA” shall mean the Terrorism Risk Insurance Act of 2002, as the same may be amended or otherwise modified.

 “Title Insurance Policy” shall mean an ALTA mortgagee title insurance policy in the form reasonably
acceptable to Lender issued with respect to the Property and insuring the lien of the Mortgage. 
 “Total Defeasance
Event” shall have the meaning set forth in Section 2.5.1(a). 
 “Treasury Rate” shall
mean, as of the Maturity Date, the yield, calculated by Lender by linear interpolation (rounded to the nearest one-thousandth of one percent ( i.e. , 0.001%) of the yields of non-inflation adjusted noncallable United States Treasury
obligations with terms (one longer and one shorter) most nearly approximating the period from such date of determination to the Maturity Date, as determined by Lender on the basis of Federal Reserve Statistical Release H.15-Selected Interest Rates
under the heading U.S. Governmental Security/Treasury Constant Maturities, or another nationally recognized source of financial market information selected by Lender. Lender’s determination of the Treasury Rate shall be final absent manifest
error. 
 “Trustee” shall mean any trustee holding the Loan in a Securitization. 
 “Unbudgeted Expense” shall mean any operating expense or capital expenditure which is necessary for the maintenance,
operation and use of the Property not set forth in the Approved Annual Budget and for which budget approval has not been obtained from Lender, 
  

 - 17 - 

 
Senior Mezzanine Lender, Junior A Mezzanine Lender and Junior B Mezzanine Lender; provided, however, that such an operating expense or capital expenditure shall not be an Unbudgeted Expense
unless in the reasonable opinion of Lender, the incurrence of the same was necessary for the proper maintenance, operation and use of the Property and was certified as such by Lender to Agent. 
 “UCC” or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in
the State. 
 “Underwriter Group” shall have the meaning set forth in Section 9.2(b). 

“Updated Information” shall have the meaning set forth in Section 9.1(b)(i). 
 “U.S. Obligations” shall mean direct full faith and credit obligations of the United States of America that are not
subject to prepayment, call or early redemption. 
 “Yield Maintenance Premium” shall mean an amount
equal to the greater of: (i) one percent (1%) of the principal amount of the Loan being prepaid or (ii) the present value as of the Prepayment Date of the Calculated Payments from the Prepayment Date through the Maturity Date
determined by discounting such payments at the Discount Rate. As used in this definition, the term “Prepayment Date” shall mean the date on which prepayment is made. As used in this definition, the term “Calculated
Payments” shall mean the monthly payments of interest only which would be due based on the principal amount of the Loan being prepaid on the Prepayment Date and assuming an interest rate per annum equal to the difference (if such difference
is greater than zero) between (y) the Interest Rate and (z) the Yield Maintenance Treasury Rate. As used in this definition, the term “Discount Rate” shall mean the rate which, when compounded monthly, is equivalent to the
Yield Maintenance Treasury Rate, when compounded semi-annually. As used in this definition, the term “Yield Maintenance Treasury Rate” shall mean the yield calculated by Lender by the linear interpolation of the yields, as reported
in the Federal Reserve Statistical Release H.15-Selected Interest Rates under the heading U.S. Government Securities/Treasury Constant Maturities for the week ending prior to the Prepayment Date, of U.S. Treasury Constant Maturities with maturity
dates (one longer or one shorter) most nearly approximating the Maturity Date. In the event Release H.15 is no longer published, Lender shall select another nationally recognized source of financial market information. In no event, however, shall
Lender be required to reinvest any prepayment proceeds in U.S. Treasury obligations or otherwise. 
 Section 1.2
Principles of Construction. All references to sections and schedules are to sections and schedules in or to this Agreement unless otherwise specified. Unless otherwise specified, the words “hereof,” “herein” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Unless otherwise specified, all meanings attributed to defined terms herein
shall be equally applicable to both the singular and plural forms of the terms so defined. 
  

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 II. THE LOAN 
 Section 2.1 The Loan. 
 2.1.1 Agreement to Lend and Borrow. Subject to and upon the terms and conditions set forth herein, Lender shall make the Loan to Borrower and Borrower shall accept the Loan from
Lender on the Closing Date. 
 2.1.2 Single Disbursement to Borrower. Borrower shall receive only one
borrowing hereunder in respect of the Loan and any amount borrowed and repaid hereunder in respect of the Loan may not be reborrowed. 
 2.1.3 The Note. The Loan shall be evidenced by the Note in the aggregate principal amount of One Hundred Thirty Two Million and No/100 Dollars ($132,000,000.00) and shall be repaid in accordance with the term of this
Agreement and the Note. 
 2.1.4 Use of Proceeds. Borrower shall use proceeds of the Loan to (i) pay
and discharge any existing loans relating to the Property, (ii) pay all past-due Basic Carrying Costs, if any, in respect of the Property, (iii) deposit the Reserve Funds, (iv) pay costs and expenses incurred in connection with the
closing of the Loan, (v) fund any working capital requirements of the Property and (vi) retain the balance, if any. 
 2.1.5 Modification of Components. Lender shall have the right, at any time, to modify the Loan in order to create additional Components, reduce the number of Components, reallocate the principal balances of the
Components or eliminate the Component structure of the Loan provided that (a) the total principal balance of the Loan immediately after the effective date of such modification equals the outstanding principal balance of the Loan immediately
prior to such modification, and (b) the weighted average of the interest rates for all Components always equals the weighted average of the interest rates for all Components immediately prior to such modification. Lender shall have the right to
modify the Components in accordance with this Section 2.1.5 upon prior notice to Borrower (in which event such modification shall then be deemed effective). Lender shall provide certified copies of any modification of the Components to
Borrower. If requested by Lender, Borrower shall promptly execute an amendment to this Agreement and the Note to evidence such modification. 
 Section 2.2 Interest Rate. 
 2.2.1 Interest Rate.
Interest on the outstanding principal balance of each Component shall accrue from the Closing Date up to but excluding the Maturity Date at the Interest Rate. 
 2.2.2 Intentionally Omitted. 
 2.2.3 Default
Rate. In the event that, and for so long as, any Event of Default shall have occurred and be continuing, the outstanding principal balance of the Loan and, to the extent permitted by law, overdue interest in respect of the Loan, shall
accrue interest at the Default Rate, calculated from the date such payment was due without regard to any grace or cure periods contained herein. 
  

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 2.2.4 Interest Calculation. Interest on the outstanding principal balance of
each Component shall be calculated by multiplying (a) the actual number of days elapsed in the period for which the calculation is being made by (b) a daily rate based on a three hundred sixty (360) day year (that is, the Interest
Rate or the Default Rate, as then applicable, expressed as an annual rate divided by 360) by (c) the outstanding principal balance. The accrual period for calculating interest due on each Monthly Payment Date shall be the calendar month
immediately prior to such Monthly Payment Date. 
 2.2.5 Usury Savings. This Agreement and the other Loan
Documents are subject to the express condition that at no time shall Borrower be required to pay interest on the principal balance of the Loan at a rate which could subject Lender to either civil or criminal liability as a result of being in excess
of the Maximum Legal Rate. If by the terms of this Agreement or the other Loan Documents, Borrower is at any time required or obligated to pay interest on the principal balance due hereunder at a rate in excess of the Maximum Legal Rate, the
Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to the Maximum Legal Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed to have been payments in reduction of principal
and not on account of the interest due hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of the sums due under the Loan, shall, to the extent permitted by applicable law, be amortized, prorated,
allocated, and spread throughout the full stated term of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed the Maximum Legal Rate from time to time in effect and applicable to the Loan for
so long as the Loan is outstanding. 
 Section 2.3 Loan Payments. 
 2.3.1 Payment. Borrower shall make a payment to Lender of interest only on August 9, 2003 for the period from the Closing
Date through and including August 8, 2003 (unless the Closing Date is the ninth day of a calendar month, in which case no such separate payment of interest shall be due). Borrower shall make a payment to Lender of principal and interest in the
amount of the Monthly Debt Service Payment Amount on the Monthly Payment Date occurring in September 9, 2003 and on each Monthly Payment Date thereafter to and including the Maturity Date. Each payment shall be applied (a) first to accrued
and unpaid interest on all of the Components and (b) the balance shall be applied to principal of all the Components, pro rata and pari passu. 
 2.3.2 Intentionally Omitted. 
 2.3.3 Payment on Maturity
Date. Borrower shall pay to Lender on the Maturity Date the outstanding principal balance of the Loan, all accrued and unpaid interest (including without limitation the Accrued Interest) and all other amounts due hereunder and under the
Note, the Mortgage and the other Loan Documents. 
 2.3.4 Late Payment Charge. If any principal, interest or any
other sum due under the Loan Documents, other than the payment of principal due on the Maturity Date, is not paid by Borrower on the date on which it is due, Borrower shall pay to Lender upon demand an amount equal to the lesser of three percent
(3%) of such unpaid sum or the maximum amount permitted by applicable law in order to defray the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such delinquent
payment. Any such amount shall be secured by the Mortgage and the other Loan Documents. 
  

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 2.3.5 Method and Place of Payment. (a) Except as otherwise specifically
provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender not later than 2:00 P.M., New York City time, on the date when due and shall be made in lawful money of the United States of America in
immediately available funds at Lender’s office, and any funds received by Lender after such time shall, for all purposes hereof, be deemed to have been paid on the next succeeding Business Day. 
 (b) Whenever any payment to be made hereunder or under any other Loan Document shall be stated to be due on a day which is not a Business
Day, the due date thereof shall be the preceding Business Day. 
 (c) All payments required to be made by Borrower hereunder or
under the Note or the other Loan Documents shall be made irrespective of, and without deduction for, any setoff, claim or counterclaim and shall be made irrespective of any defense thereto. 
 2.3.6 Payments After Event of Default. Any amounts received by Lender following an Event of Default shall be applied by Lender
toward the payment of interest and/or principal of any of the Components and/or any other amounts due under the Loan Documents in such order, priority and proportions as Lender in its sole discretion shall deem proper. 
 Section 2.4 Prepayments. 
 2.4.1 Voluntary Prepayments. Except as otherwise provided herein, Borrower shall not have the right to prepay the Loan in whole or in part. On and after the Permitted Prepayment Date,
Borrower may, provided no Event of Default has occurred and is continuing, at its option and upon ten (10) Business Days prior notice to Lender (or such shorter period of time as may be permitted by Lender in its sole discretion), prepay the
Debt in whole on any date without payment of the Yield Maintenance Premium or any other premium or fee. Any prepayment received by Lender on a date other than a Monthly Payment Date shall include interest which would have accrued thereon to the next
Monthly Payment Date. Borrower may revoke its notice of prepayment if written notice of such revocation is provided to Lender at least five (5) Business Days prior to the proposed prepayment date. 
 2.4.2 Mandatory Prepayments. On each date on which Borrower or Lender actually receives a distribution of Net Proceeds, and if
Lender is not obligated to make such Net Proceeds available to Borrower for a Restoration, Borrower shall, at Lender’s option, prepay the outstanding principal balance of the Note in an amount equal to one hundred percent (100%) of such
Net Proceeds together with interest that would have accrued on such amounts through the next Monthly Payment Date. The full amount of any such prepayment shall be applied to the Components in the order specified in Section 2.3.1 and any
amount of such prepayment in excess of that required to pay the Debt in full and such interest shall, if any of the Senior Mezzanine Loan, the Junior A Mezzanine Loan or the Junior B Mezzanine Loan is in existence, be paid in 
  

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the following order of priority: (a) first to the Senior Mezzanine Loan, (b) second to the Junior A Mezzanine Loan and to the Preferred Equity, pari passu, (c) third to the Junior
B Mezzanine Loan and (d) with any remainder being promptly remitted to Borrower. No Yield Maintenance Premium or other prepayment premium or fee shall be due in connection with any prepayment made pursuant to this Section 2.4.2. Any
prepayment received by Lender pursuant to this Section 2.4.2 on a date other than a Monthly Payment Date shall be held by Lender as collateral security for the Loan in an interest bearing account, with such interest accruing to the benefit of
Borrower, and shall be applied by Lender on the next Monthly Payment Date. 
 2.4.3 Prepayments After Default. If
after an Event of Default but prior to the Permitted Prepayment Date, payment of all or any part of the principal of the Loan is tendered by Borrower, a purchaser at foreclosure or any other Person, such tender shall be deemed an attempt to
circumvent the prohibition against prepayment set forth in Section 2.4.1 and Borrower, such purchaser at foreclosure or other Person shall pay the Yield Maintenance Premium, in addition to the outstanding principal balance, all accrued and
unpaid interest and other amounts payable under the Loan Documents. The full amount of any such prepayment shall be applied by Lender toward the payment of interest and/or principal of any of the Components and/or any other amounts due under the
Loan Documents in such order, priority and proportions as Lender in its sole discretion shall deem proper. 
 Section 2.5 Defeasance. 
 2.5.1 Conditions to Defeasance. (a) Provided no Event of
Default shall have occurred and remain uncured, Borrower shall have the right at any time after the Release Date and prior to Permitted Prepayment Date to voluntarily defease the entire Loan and obtain a release of the lien of the Mortgage by
providing Lender with the Defeasance Collateral (hereinafter, a “Defeasance Event”), subject to the satisfaction of the following conditions precedent: 
 (i) Borrower shall provide Lender not less than thirty (30) days notice (or such shorter period of time if permitted by Lender in its sole discretion) specifying a date (the “Defeasance
Date”) on which the Defeasance Event is to occur; 
 (ii) Borrower shall pay to Lender (A) all payments of
principal and interest due on the Loan to and including the Defeasance Date and (B) all other sums, then due under the Note, this Agreement, the Mortgage and the other Loan Documents; 
 (iii) Borrower shall deposit the Defeasance Collateral into the Defeasance Collateral Account and otherwise comply with the provisions of
Sections 2.5.2 and 2.5.3 hereof; 
 (iv) Borrower shall execute and deliver to Lender a Security Agreement in respect of the
Defeasance Collateral Account and the Defeasance Collateral; 
 (v) Borrower shall deliver to Lender an opinion of counsel for
Borrower that is standard in commercial lending transactions and subject only to customary qualifications, assumptions and exceptions opining, among other things, that (A) Lender has a legal and valid perfected first priority security interest
in the Defeasance Collateral Account and the Defeasance Collateral, (B) if a Securitization has occurred, the REMIC Trust formed pursuant to such 
  

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Securitization will not fail to maintain its status as a “real estate mortgage investment conduit” within the meaning of Section 860D of the Code as a result of a Defeasance Event
pursuant to this Section 2.5, (C) the Defeasance Event will not result in a deemed exchange for purposes of the Code and will not adversely affect the status of the Note as indebtedness for federal income tax purposes, (D) delivery of
the Defeasance Collateral and the grant of a security interest therein to Lender shall not constitute an avoidable preference under Section 547 of the Bankruptcy Code or applicable state law and (E) a non-consolidation opinion with respect
to the Successor Borrower, 
 (vi) Borrower shall deliver to Lender a Rating Agency Confirmation as to the Defeasance Event;

 (vii) Borrower shall deliver an Officer’s Certificate certifying that the requirements set forth in this
Section 2.5 have been satisfied; 
 (viii) Borrower shall deliver a certificate of a “Big Four” or other
nationally recognized public accounting firm acceptable to Lender certifying that the Defeasance Collateral will generate monthly amounts equal to or greater than the Scheduled Defeasance Payments; 
 (ix) Borrower shall deliver such other certificates, opinions, documents and instruments as Lender may reasonably request; and 

(x) Borrower shall pay all costs and expenses of Lender incurred in connection with the Defeasance Event, including Lender’s
reasonable attorneys’ fees and expenses and Rating Agency fees and expenses. 
 (b) If Borrower has elected to defease the
Note and the requirements of this Section 2.5 have been satisfied, the Property shall be released from the lien of the Mortgage and the Defeasance Collateral pledged pursuant to the Security Agreement shall be the sole source of collateral
securing the Note. In connection with the release of the Lien, Borrower shall submit to Lender, not less than fifteen (15) days prior to the Defeasance Date (or such shorter time as is acceptable to Lender in its sole discretion), a release of
Lien (and related Loan Documents) for execution by Lender. Such release shall be in a form appropriate in the jurisdiction in which the Property is located. In addition, Borrower shall provide all other documentation Lender reasonably requires to be
delivered by Borrower in connection with such release, together with an Officer’s Certificate certifying to Borrower’s actual knowledge that such documentation (i) is in compliance with all Legal Requirements, and (ii) will
effect such release in accordance with the terms of this Agreement. Borrower shall pay all costs, taxes and expenses association with the release of the lien of the Mortgage, including Lender’s reasonable attorneys’ fees. Except as set
forth in this Section 2.5 or in connection with a prepayment of the Debt in full described in and permitted by Section 2.4.1 and Section 2.4.2, no repayment, prepayment or defeasance of all or any portion of the Note shall cause, give
rise to a right to require, or otherwise result in, the release of the lien of the Mortgage on the Property. 
  

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 2.5.2 Defeasance Collateral Account. On or before the date on which Borrower
delivers the Defeasance Collateral, Borrower shall open at any Eligible Institution the defeasance collateral account (the “Defeasance Collateral Account”) which shall at all times be an Eligible Account. The Defeasance Collateral Account
shall contain only (i) Defeasance Collateral, and (ii) cash from interest and principal paid on the Defeasance Collateral. All cash from interest and principal payments paid on the Defeasance Collateral shall be paid over to Lender on each
Monthly Payment Date and applied first to accrued and unpaid interest and then to principal. Any cash from interest and principal paid on the Defeasance Collateral not needed to pay the Scheduled Defeasance Payments shall be paid to Borrower.
Borrower shall cause the Eligible Institution at which the Defeasance Collateral is deposited to enter an agreement with Borrower and Lender, satisfactory to Lender in its sole discretion, pursuant to which such Eligible Institution shall agree to
hold and distribute the Defeasance Collateral in accordance with this Agreement. The Borrower or Successor Borrower, as applicable, shall be the owner of the Defeasance Collateral Account and shall report all income accrued on Defeasance Collateral
for federal, state and local income tax purposes in its income tax return. Borrower shall prepay all cost and expenses associated with opening and maintaining the Defeasance Collateral Account. Lender shall not in any way be liable by reason of any
insufficiency in the Defeasance Collateral Account. 
 2.5.3 Successor Borrower. In connection with a Defeasance
Event under this Section 2.5, Borrower shall, if required by the Rating Agencies or if Borrower elects to do so, establish or designate a successor entity (the “Successor Borrower”) which shall be a single purpose bankruptcy
remote entity and which shall be approved by the Rating Agencies. Any such Successor Borrower may, at Borrower’s option, be an Affiliate of Borrower unless the Rating Agencies shall require otherwise. Borrower shall transfer and assign all
obligations, rights and duties under and to the Note, together with the Defeasance Collateral to such Successor Borrower. Such Successor Borrower shall assume the obligations under the Note and the Security Agreement and Borrower shall be relieved
of its obligations under such documents. Borrower shall pay a minimum of $1,000 to any such Successor Borrower as consideration for assuming the obligations under the Note and the Security Agreement. Borrower shall pay all costs and expenses
incurred by Lender, including Lender’s attorney’s fees and expenses, incurred in connection therewith. 
 III.
REPRESENTATIONS AND WARRANTIES 
 Section 3.1 Borrower Representations. 
 Borrower represents and warrants that as of the Closing Date: 
 3.1.1 Organization. (a) Each of Borrower and each SPC Party is duly organized, validly existing and in good standing with full power and authority to own its assets and conduct its
business, and is duly qualified in all jurisdictions in which the ownership or lease of its property or the conduct of its business requires such qualification, except where the failure to be so qualified would not have a material adverse effect on
its ability to perform its obligations hereunder, and Borrower has taken all necessary action to authorize the execution, delivery and performance of this Agreement and the other Loan Documents by it, and has the power and authority to execute,
deliver and perform under this Agreement, the other Loan Documents and all the transactions contemplated hereby. 
  

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 (b) Borrower’s exact legal name is correctly set forth in the first paragraph of this
Agreement. Borrower is an organization of the type specified in the first paragraph of this Agreement. Borrower is incorporated or organized under the laws of the state specified in the first paragraph of this Agreement. Borrower’s principal
place of business and chief executive office, and the place where Borrower keeps its books and records, including recorded data of any kind or nature, regardless of the medium of recording, including software, writings, plans, specifications and
schematics, has been for the preceding four (4) months (or, if less than four (4) months, the entire period of the existence of Borrower) and will continue to be the address of Borrower set forth in the first paragraph of this Agreement
(unless Borrower notifies Lender within five (5) Business Days after the date of such change). Borrower’s organizational identification number, if any, assigned by the state of its incorporation or organization is 1611765. Borrower’s
federal tax identification number is 52-1685931. Borrower is not subject to back-up withholding taxes. 
 3.1.2
Proceedings. This Agreement and the other Loan Documents have been duly authorized, executed and delivered by Borrower and constitute a legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance
with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, and by general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at law). 
 3.1.3 No
Conflicts. The execution and delivery of this Agreement and the other Loan Documents by Borrower and the performance of its obligations hereunder and thereunder will not conflict with any provision of any law or regulation to which
Borrower is subject, or conflict with, result in a breach of, or constitute a default under, any of the terms, conditions or provisions of any of Borrower’s organizational documents or any agreement or instrument to which Borrower is a party or
by which it is bound, or any order or decree applicable to Borrower, or result in the creation or imposition of any lien on any of Borrower’s assets or property (other than pursuant to the Loan Documents). 
 3.1.4 Litigation. There is no action, suit, proceeding or investigation pending or, to Borrower’s actual
knowledge, threatened against Borrower in any court or by or before any other Governmental Authority which would materially and adversely affect the ability of Borrower to carry out the transactions contemplated by this Agreement. 
 3.1.5 Agreements. Borrower is not in default with respect to any order or decree of any court or any order, regulation
or demand of any Governmental Authority, which default would materially and adversely impair Borrower’s ability to repay the Loan or Lender’s ability to enforce its rights and remedies under the Loan Documents. 
 3.1.6 Consents. No consent, approval, authorization or order of any court or Governmental Authority is required for the
execution, delivery and performance by Borrower of, or compliance by Borrower with, this Agreement or the consummation of the transactions contemplated hereby, other than those which have been obtained by Borrower. 
  

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 3.1.7 Title. Borrower has good, marketable and insurable fee simple
title to the real property comprising part of the Property and good title to the balance of the Property owned by it, free and clear of all Liens whatsoever except the Permitted Encumbrances. The Mortgage, when properly recorded in the appropriate
records, together with any Uniform Commercial Code financing statements required to be filed in connection therewith, will create (i) a valid, first priority, perfected lien on the Property, subject only to Permitted Encumbrances and
(ii) perfected security interests in and to, and perfected collateral assignments of, all personalty (including the Leases), all in accordance with the terms thereof, in each case subject only to any Permitted Encumbrances. There are no
mechanics’, materialman’s or other similar liens or claims which have been filed for work, labor or materials affecting the Property which are or may be liens prior to, or equal or coordinate with, the lien of the Mortgage. None of the
Permitted Encumbrances, individually or in the aggregate, materially impair the use or operations of the Property or impair Borrower’s ability to pay its obligations in a timely manner. 
 3.1.8 No Plan Assets. As of the date hereof and throughout the term of the Loan (a) Borrower is not and will not
be an “employee benefit plan,” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), whether or not subject to Title I of ERISA, or a “plan” as defined in
Section 4975 of the Code, (b) none of the assets of Borrower constitutes or will constitute “plan assets” of one or more such plans within the meaning of U.S. Department of Labor Regulation 29 C.F.R. Section 2510.3-101 (the
“Plan Assets Regulation”), and (c) transactions by or with Borrower are not and will not be subject to any state statute regulating investments of, or fiduciary obligations with respect to, governmental plans, as defined in
Section 3(32) of ERISA. 
 3.1.9 Compliance. Except as otherwise disclosed in writing prior to the
Closing Date by Borrower to Lender, Borrower and the Property and the use thereof comply in all material respects with all applicable Legal Requirements, including, without limitation, building and zoning ordinances and codes and Prescribed Laws.
Borrower is not in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority, the violation of which would materially adversely affect Borrower’s ability to repay the Loan or Lender’s ability to
enforce its rights and remedies under the Loan Documents. Borrower has not committed any act which may give any Governmental Authority the right to cause Borrower to forfeit the Property or any part thereof or any monies paid in performance of
Borrower’s obligations under any of the Loan Documents. 
 3.1.10 Financial Information. All financial
data, including, without limitation, the statements of cash flow and income and operating expense, that have been delivered to Lender in respect of the Property (i) are true, complete and correct in all material respects, (ii) accurately
represent the financial condition of the Property as of the date of such reports, and (iii) have been prepared in accordance with GAAP throughout the periods covered (as to the audited financial statements of Borrower (all of the other
foregoing financial information is prepared in accordance with reasonable and sound accounting practices, to the extent accounting practices apply)), except as disclosed therein. Except for the Permitted Encumbrances, Borrower does not have any
contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments that are known to Borrower and reasonably likely to have a materially adverse effect on the
Property or the operation thereof, except as referred to or reflected in said financial statements. Since the date of the financial statements, there has been no material adverse change in the financial condition, operations or business of Borrower
or the Property from that set forth in said financial statements. 
  

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 3.1.11 Condemnation. No Condemnation or other proceeding has been
commenced or, to Borrower’s actual knowledge, is contemplated with respect to all or any portion of the Property or for the relocation of roadways providing access to the Property. 
 3.1.12 Utilities and Public Access. The Property has rights of access to public ways and is served by water, sewer,
sanitary sewer and storm drain facilities adequate to service the Property for its intended uses. 
 3.1.13 Separate
Lots. The Property is comprised of one (1) or more parcels which constitute separate tax lots and do not constitute a portion of any other tax lot not a part of the Property. 
 3.1.14 Assessments. Except as disclosed in the Title Policy, there are no pending, or to Borrower’s actual
knowledge, proposed special or other assessments for public improvements or otherwise affecting the Property, nor are there any contemplated improvements to the Property that may result in such special or other assessments. 
 3.1.15 Enforceability. The Loan Documents are not subject to any right of rescission, set-off, counterclaim or defense
by Borrower, including the defense of usury and Borrower has not asserted any right of rescission, set-off, counterclaim or defense with respect thereto. 
 3.1.16 Assignment of Leases. The Assignment of Leases creates a valid assignment of, or a valid security interest in, certain rights under the Leases, subject only to a license
granted to Borrower to exercise certain rights and to perform certain obligations of the lessor under the Leases, including the right to operate the Property and collect Rents. Other than Borrower, no Person other than Lender has any interest in or
assignment of the Leases or any portion of the Rents due and payable or to become due and payable thereunder. 
 3.1.17
Insurance. Borrower has obtained and has delivered to Lender original or certified copies of all of the Policies or so-called “Acord” certificates evidencing coverage thereof, with all premiums prepaid thereunder,
reflecting the insurance coverages, amounts and other requirements set forth in this Agreement. No claims have been made under any of the Policies, and no Person, including Borrower, has done, by act or omission, anything which would impair the
coverage of any of the Policies. 
 3.1.18 Licenses. All permits and approvals, including without
limitation, certificates of occupancy required by any Governmental Authority for the use, occupancy and operation of the Property in the manner in which the Property is currently being used, occupied and operated have been obtained and are in full
force and effect. 
 3.1.19 Flood Zone. None of the Improvements on the Property is located in an area
identified by the Federal Emergency Management Agency as a special flood hazard area. 
  

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 3.1.20 Physical Condition. To Borrower’s actual knowledge and
except as otherwise identified in the Property Condition Report, the Property, including, without limitation, all buildings, improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection
systems, electrical systems, equipment, elevators, exterior sidings and doors, landscaping, irrigation systems and all structural components, are in good condition, order and repair in all material respects; there exists no structural or other
material defects or damages in the Property, whether latent or otherwise, and Borrower has not received notice from any insurance company or bonding company of any defects or inadequacies in the Property, or any part thereof, which would adversely
affect the insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond. 
 3.1.21 Boundaries. Except as may be shown on the Survey, all of the improvements which were included in determining the
appraised value of the Property lie wholly within the boundaries and building restriction lines of the Property, and no improvements on adjoining properties encroach upon the Property, and no easements or other encumbrances affecting the Property
encroach upon any of the improvements, so as to materially and adversely affect the value or marketability of the Property except those which are insured against by title insurance. 
 3.1.22 Leases. Borrower represents and warrants to Lender with respect to the Leases that: (a) the rent roll
attached hereto as Schedule I is true, complete and correct and the Property is not subject to any Leases other than the Leases described in Schedule I , (b) the Leases identified on Schedule I are in full force and effect
and to Borrower’s actual knowledge, there are no defaults thereunder by either party, (c) the copies of the Leases delivered to Lender are true and complete, and there are no oral agreements with respect thereto, (d) no Rent
(including security deposits) has been paid more than one (1) month in advance of its due date, (e) all work to be performed by Borrower under each Lease has been performed as required and has been accepted by the applicable Tenant,
(f) except as otherwise disclosed in writing prior to the Closing Date by Borrower to Lender, any payments, free rent, partial rent, rebate of rent or other payments, credits, allowances or abatements required to be given by Borrower to any
Tenant has already been received by such Tenant and (g) all security deposits are being held in accordance with Legal Requirements. 
 3.1.23 Filing and Recording Taxes. All mortgage, mortgage recording, stamp, intangible or other similar tax required to be paid under applicable Legal Requirements in connection with
the execution, delivery, recordation, filing, registration, perfection or enforcement of any of the Loan Documents, including, without limitation, the Mortgage, have been paid or are being paid simultaneously herewith. 
 3.1.24 Single Purpose. Borrower hereby represents and warrants to, and covenants with, Lender that as of the date
hereof and until such time as the Debt shall be paid in full: 
 (a) Borrower does not own and will not own any asset or
property other than (i) the Property, and (ii) incidental personal and intangible property necessary for the ownership or operation of the Property. 
  

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 (b) Borrower will not engage in any business other than the acquisition, development,
ownership, operating, leasing, management, maintenance, holding, selling and otherwise dealing with the Property and entering into the Loan, and activities incidental thereto and Borrower will conduct and operate its business as presently conducted
and operated. 
 (c) Borrower will not enter into any contract or agreement with any Affiliate of Borrower, any constituent
party of Borrower or any Affiliate of any constituent party, except in the ordinary course of business and upon terms and conditions that are intrinsically fair and substantially similar to those that would be available on an arms-length basis with
third parties other than any such party. 
 (d) Borrower has not incurred and will not incur any Indebtedness other than
(i) the Debt, Taxes and Other Charges, (ii) unsecured trade payables and operational debt not evidenced by a note and in an aggregate amount not exceeding $500,000.00 at any one time (not including trade payables Borrower is contesting in
good faith up to an aggregate amount of $250,000.00 and (iii) Indebtedness incurred in the financing of equipment and other personal property used on the Property with annual payments not exceeding $150,000.00 in the aggregate; provided that
any Indebtedness incurred pursuant to subclauses (ii) and (iii) shall be (x) not more than sixty (60) days past due and (y) incurred in the ordinary course of business. No Indebtedness other than the Debt may be secured
(subordinate or pari passu) by the Property. 
 (e) Borrower has not made and will not make any loans or advances
to any third party (including any Affiliate or constituent party) but provided that this shall not prohibit tenant allowances pursuant to Leases permitted under this Agreement, and shall not acquire obligations or securities of its Affiliates or any
other Person (other than cash or investment grade securities). 
 (f) Borrower is and will remain solvent and Borrower will pay
its debts and liabilities (including, as applicable, shared personnel and overhead expenses) from its assets as the same shall become due to the extent of available funds. 
 (g) Borrower has done or caused to be done and will do all things necessary to observe organizational formalities and preserve its
existence, and Borrower will not, nor will Borrower permit any constituent party to amend, modify or otherwise change the partnership certificate, partnership agreement, articles of incorporation and bylaws, operating agreement, trust or other
organizational documents of Borrower or such constituent party without the prior written consent of Lender in any manner that (i) violates the single purpose covenants set forth in this Section 3.1.24, or (ii) amends, modifies or
otherwise changes any provision thereof that by its terms cannot be modified at any time when the Loan is outstanding or by its terms cannot be modified without Lender’s consent 
 (h) Borrower will maintain all of its books, records, financial statements and bank accounts separate from those of its Affiliates and any
constituent party. Borrower’s assets will not be listed as assets on the financial statement of any other Person, provided, however, that Borrower’s assets may be included in a consolidated financial statement of its Affiliates
provided that (i) appropriate notation shall be made on such consolidated financial statements to indicate the separateness of Borrower and such Affiliates and to indicate that Borrower’s assets and credit 
  

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are not available to satisfy the debts and other obligations of such Affiliates or any other Person and (ii) such assets shall be listed on Borrower’s own separate balance sheet.
Borrower will file its own tax returns (to the extent Borrower is required to file any such tax returns) and will not file a consolidated federal income tax return with any other Person. Borrower shall maintain all Pennsylvania limited partnership
formalities. 
 (i) Borrower will be, and at all times will hold itself out to the public as, a legal entity separate and
distinct from any other entity (including any Affiliate of Borrower or any constituent party of Borrower), shall correct any known misunderstanding regarding its status as a separate entity, shall conduct business in its own name, shall not identify
itself or any of its Affiliates as a division or part of the other, shall maintain and utilize separate stationery, invoices and checks bearing its own name and shall allocate fairly and reasonably any overhead for shared office space, provided,
however, to the extent invoices for such services are not allocated and separately billed to each entity, there is a system in place that provides that the amount thereof that is to he allocated among the relevant parties will be reasonably related
to the services provided to each such party. The invoices, checks and stationery utilized by Borrower or utilized to collect its funds or pay its expenses shall bear its own name and shall not bear the name of any other entity unless such entity is
clearly designated as being Borrower’s agent. 
 (j) Borrower will maintain adequate capital for the normal obligations
reasonably foreseeable in a business of its size and character and in light of its contemplated business operations. 
 (k)
Neither Borrower nor any constituent party will seek or effect the liquidation, dissolution, winding up, liquidation, consolidation or merger, in whole or in part, of Borrower. 
 (l) Borrower will not commingle the funds and other assets of Borrower with those of any Affiliate or constituent party or any other Person,
and will hold all of its assets in its own name. 
 (m) Borrower has and will maintain its assets in such a manner that it will
not be costly or difficult to segregate, ascertain or identify its individual assets from those of any Affiliate or constituent party or any other Person. 
 (n) Borrower will not guarantee or become obligated for the debts of any other Person and does not and will not hold itself out to be responsible for or have its credit available to satisfy the debts or
obligations of any other Person. 
 (o) (i) If Borrower is a limited partnership or a limited liability company (other than
a single member limited liability company), each general partner or managing member (each, an “SPC Party”) shall be a limited liability company or corporation whose sole asset is its interest in Borrower and each such SPC Party will
at all times comply (except as to Borrower General Partner with respect to Section 3.1.24(a), (b), (d) and (n) above), and will cause Borrower to comply, with each of the representations, warranties, and covenants contained in this
Section 3.1.24 as if such representation, warranty or covenant was made directly by such SPC Party (except as to Borrower General Partner with respect to Section 3.1.24(a), (b), (d) and 
  

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(n) above). Upon the withdrawal or the disassociation of an SPC Party from Borrower, Borrower shall immediately appoint a new SPC Party whose articles of organization or incorporation, as
applicable, are substantially similar to those of such SPC Party and deliver a new non-consolidation opinion to the Rating Agency or Rating Agencies, as applicable, with respect to the new SPC Party and its equity owners. 
 (ii) If Borrower or SPC Party is a single member limited liability company, such Borrower or SPC Party shall have at least two
(2) springing members, one of which, upon the dissolution of such sole member or the withdrawal or the disassociation of the sole member from such Borrower or SPC Party, shall immediately become the sole member of such Borrower or SPE Party,
and the other of which shall become the sole member of such Borrower or SPC Party if the first such springing member no longer is available to serve as such sole member. 
 (p) Borrower shall at all times cause there to be at least two duly appointed members of the board of directors or independent managers, as applicable, who are provided by a nationally-recognized company
that provides professional independent directors (Lender hereby approves of the use of Entity Services as the provider for independent directors) (each, an “Independent Director”) of each SPC Party who shall not have been at the
time of such individual’s appointment or at any time while serving as a director of such SPC Party and Borrower, and may not have been at any time during the preceding five years (i) a stockholder, director (other than as an Independent
Director of SPC Party), officer, employee, partner, member, attorney or counsel of such SPC Party, Borrower or any Affiliate of any of them, (ii) a creditor, customer, supplier or other Person who derives any of its purchases or revenues from
its activities with such SPC Party, Borrower or any Affiliate of any of them (other than his or her service as an Independent Director of SPC Party), (iii) a Person or other entity controlling or under common control with any such stockholder,
partner, member, creditor, customer, supplier or other Person, or (iv) a member of the immediate family of any such stockholder, director, officer, employee, partner, member, creditor, customer, supplier or other Person. As used in this
definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management, policies or activities of a Person, whether through ownership of voting securities, by
contract or otherwise. 
 (q) Borrower shall not cause or permit the board of directors, partners or members, as applicable, of
any SPC Party and Borrower to take any action which, under the terms of any certificate of incorporation, by-laws or any voting trust agreement with respect to any common stock or under any organizational document of Borrower or SPC Party, requires
a vote of the board of directors, partners or members, as applicable, of each SPC Party and Borrower unless at the time of such action there shall be at least two members who are each an Independent Director. 
 (r) Borrower shall conduct its business so that the assumptions made with respect to Borrower in the Insolvency Opinion shall be true and
correct in all respects. In connection with the foregoing, Borrower hereby covenants and agrees that it will comply with or cause the compliance with, (i) all of the facts and assumptions (whether regarding the Borrower or any other Person) set
forth in the Insolvency Opinion, (ii) all the representations, warranties and covenants in this Section 3.1.24, and (iii) all the organizational documents of the Borrower and any SPC Party. 
  

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 (s) Borrower will not permit any Affiliate or constituent party independent access to its
bank accounts except for the Manager, as agent, pursuant to the terms of the Management Agreement. 
 (t) Borrower shall pay the
salaries of its own employees (if any) from its own funds and maintain a sufficient number of employees (if any) in light of its contemplated business operations. 
 (u) Borrower shall compensate each of its consultants and agents from its funds for services provided to it and pay from its own assets all obligations of any kind incurred. 
 (v) Borrower shall not pledge its assets for the benefit of any other Person. 
 (w) Borrower shall not form, acquire, or hold any subsidiary (whether corporate, partnership, limited liability company or other) or own any
equity interest in any other entity. 
 3.1.25 Tax Filings. To the extent required, Borrower has filed (or has
obtained effective extensions for filing) all federal, state and local tax return required to be filed and have paid or made adequate provision for the payment of all federal, state and local taxes, charges and assessments payable by Borrower.
Borrower believes that its tax returns (if any) properly reflect the income and taxes of Borrower for the periods covered thereby, subject only to reasonable adjustments required by the Internal Revenue Service or other applicable tax authority upon
audit. 
 3.1.26 Solvency. Borrower (a) has not entered into the transaction or any Loan Document with the
actual intent to hinder, delay, or defraud any creditor and (b) received reasonably equivalent value in exchange for its obligations under the Loan Documents. Giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds
and will, immediately following the making of the Loan, exceed Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed and contingent liabilities, The fair saleable value of Borrower’s assets is
and will, immediately following the making of the Loan, be greater than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on its debts as such debts become absolute and matured. Borrower’s assets
do not and, immediately following the making of the Loan will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe that it will, incur
Indebtedness and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such Indebtedness and liabilities as they mature (taking into account the timing and amounts of cash to be received by Borrower and the
amounts to be payable on or in respect of obligations of Borrower). 
 3.1.27 Federal Reserve Regulations. No part
of the proceeds of the Loan will be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose which would be
inconsistent with such Regulation U or any other Regulations of such Board of Governors, or for any purposes prohibited by Legal Requirements or by the terms and conditions of this Agreement or the other Loan Documents. 
  

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 3.1.28 Organizational Chart. The organizational chart attached as
Schedule III hereto, relating to Borrower and certain Affiliates and other parties, is true, complete and correct on and as of the date hereof 
 3.1.29 Bank Holding Company. Borrower is not a “bank holding company” or a direct or indirect subsidiary of a “bank holding company” as defined in the Bank Holding
Company Act of 1956, as amended, and Regulation Y thereunder of the Board of Governors of the Federal Reserve System. 
 3.1.30 No Other Debt. Borrower has not borrowed or received debt financing (other than permitted pursuant to this Agreement) that has not been heretofore repaid in full. 
 3.1.31 Investment Company Act. Borrower is not (1) an “investment company” or a company “controlled”
by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended; (2) a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of
either a “holding company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as amended; or (3) subject to any other federal or state law or regulation which purports to restrict
or regulate its ability to borrow money. 
 3.1.32 Access/Utilities. All public utilities necessary to the
continued use and enjoyment of the Property as presently used and enjoyed are located in the public right-of-way abutting the Property. All roads necessary for the full utilization of the Property for its current purpose have been completed and
dedicated to public use and accepted by all governmental authorities or are the subject of access easements for the benefit of the Property. 
 3.1.33 No Bankruptcy Filing. Borrower is not contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of its assets or
property, and Borrower does not have any knowledge of any Person contemplating the filing of any such petition against it. 
 3.1.34 Full and Accurate Disclosure. To Borrower’s actual knowledge, no information contained in this Agreement, the other Loan Documents, or any written statement furnished by or on behalf of Borrower pursuant to the
terms of this Agreement contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained herein or therein not misleading in light of the circumstances under which they were made.

 3.1.35 Foreign Person. Borrower is not a “foreign person” within the meaning of
Section 1445(f)(3) of the Code. 
 3.1.36 Fraudulent Transfer. Borrower (a) has not entered into the
Loan or any Loan Document with the actual intent to hinder, delay, or defraud any creditor and (b) has received reasonably equivalent value in exchange for its obligations under the Loan Documents. The assets of Borrower do not and, immediately
following the execution and delivery of the Loan Documents will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe that it will, incur
debts and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such debts as they mature (taking into account the timing and amounts reasonably expected to be payable on or in respect of its obligations).

  

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 3.1.37 No Change in Facts or Circumstances; Disclosure. To Borrower’s
actual knowledge, there has been no material adverse change in any condition, fact, circumstance or event that would make the financial statements, rent rolls, reports, certificates or other documents submitted in connection with the Loan
inaccurate, incomplete or otherwise misleading in any material respect or that otherwise materially and adversely affects the business operations or the financial condition of Borrower or the Property. 
 3.1.38 Management Agreement. All of the representations and warranties with respect to the Management Agreement set forth in
Article VII of this Agreement are true and correct in all respects. 
 3.1.39 Perfection of Accounts.
Borrower hereby represents and warrants to Lender that: 
 (a) This Agreement, together with the other Loan Documents, create a
valid and continuing security interest (as defined in the Uniform Commercial Code) in the Accounts (as defined in the Cash Management Agreement) in favor of Lender, which security interest is prior to all other Liens, other than Permitted
Encumbrances, and is enforceable as such against creditors of and purchasers from Borrower. Other than in connection with the Loan Documents and except for Permitted Encumbrances, Borrower has not sold or otherwise conveyed the Accounts; 

(b) The Accounts constitute “deposit accounts” or “securities accounts” within the meaning of the Uniform Commercial
Code, as set forth in the Cash Management Agreement; 
 (c) Pursuant and subject to the terms hereof, Agent has agreed to comply
with all instructions originated by Lender, without further consent by Borrower, directing disposition of the Accounts and all sums at any time held, deposited or invested therein, together with any interest or other earnings thereon, and all
proceeds thereof (including proceeds of sales and other dispositions), whether accounts, general intangibles, chattel paper, deposit accounts, instruments, documents or securities; and 
 (d) The Accounts are not in the name of any Person other than Borrower, as pledgor, or Lender, as pledgee. Borrower has not consented to
Agent’s complying with instructions with respect to the Accounts from any Person other than Lender. 
 3.1.40
Borrower Entity/Separateness. Borrower hereby represents with respect to Borrower, from the date of formation of Borrower on March 28, 1990 to the date of this Agreement as follows: 
 (a) Borrower’s business has been limited solely to (i) acquiring, owning, developing, holding, leasing, financing, operating and
managing the Property, (ii) entering into financings and refinancings of the Property and (iii) transacting any and all lawful business that was incident, necessary and appropriate to accomplish the foregoing. 
  

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 (b) Borrower has not engaged in any business other than as set forth in (a) above.

 (c) Borrower has not owned any asset or property other than (i) the Property, and (ii) incidental personal and
intangible property reasonably necessary for and used or to be used in connection with the ownership or operation of the Property. 
 (d) Borrower has not entered into any contract or agreement with any Affiliate of Borrower, any constituent party of Borrower, any owner of Borrower, any guarantors of the obligations of Borrower or any Affiliate of any such constituent
party, owner or guarantor (individually, a “Borrower Related Party” and collectively, the “Borrower Related Parties”), except upon terms and conditions that are commercially reasonable. 
 (e) Borrower has not made any loans or advances to any Person and has not acquired obligations or securities of any Borrower Related Party
(other than cash or investment-grade securities). 
 (f) Borrower has paid its debts and liabilities (including, as applicable,
share personnel and overhead expenses) from its assets as the same have become due except for the debts permitted under Section 3.1.24(d) of this Agreement. 
 (g) Borrower has done or caused to be done all things necessary to observe organizational formalities and preserve its existence. 
 (h) Borrower has maintained all of its books, records, financial statements and bank accounts in accordance with the provisions of this
Agreement, and Borrower’s assets have not been listed as assets on the financial statement of any other Person. Borrower has filed its own tax returns and has not filed a consolidated federal income tax return with any other Person. Borrower
has maintained all Pennsylvania partnership formalities. 
 (i) Borrower has been, and at all times has held itself out to the
public as, a legal entity separate and distinct from any other Person (including any Affiliate or other Borrower Related Party), has corrected any known misunderstanding regarding its status as a separate entity, has conducted its business in its
own name, has not identified itself or any of its Affiliates as a division or part of the other, has maintained and utilized separate invoices and checks. 
 (j) Borrower has not commingled its assets with those of any other Person and has held all of its assets in its own name. 
 (k) Borrower has not guaranteed or become obligated for the debts of any other Person and has not held itself out as being responsible for or have its credit available to satisfy the debts or obligations
of any other Person. 
 (l) Borrower has allocated fairly and reasonably any overhead expenses that have been shared with an
Affiliate, including paying for office space and services performed by any employee of an Affiliate or Borrower Related Party, provided, however, to the extent invoices for such services are not allocated and separately billed to each entity, there
is a system

  

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in place that provides that the amount thereof that is to be allocated among the relevant parties will be reasonably related to the services provided to each such party. The invoices, checks and
stationery utilized by Borrower or utilized to collect its funds or pay its expenses shall bear its own name and shall not bear the name of any other entity unless such entity is clearly designated as being Borrower’s agent. 
 (m) Borrower has not pledged its assets for the benefit of any other Person other than with respect to loans secured by the Property and no
such pledge remains outstanding except in connection with the Loan. 
 (n) Borrower has maintained a sufficient number of
employees in light of its contemplated business operations and has paid the salaries of its own employees from its own funds. 
 (o) Borrower has not made loans to any other person or has bought or held evidence of indebtedness issued by any other person or entity that are still outstanding except for tenant allowances permitted under Section 3.1.24(e) of this
Agreement. 
 (p) Intentionally Deleted. 
 (q) Borrower has not incurred any indebtedness that is still outstanding other than (i) indebtedness that is permitted under the Loan Documents and (ii) indebtedness satisfied as of the date
hereof 
 (r) Borrower has received a Phase One environmental audit for the Property and no such environmental audit has
indicated any area of environmental concern which has not been corrected in full. 
 (s) Except for guarantees permitted under
the Loan Documents, no Affiliate of Borrower has guaranteed indebtedness of Borrower that is still outstanding other than those described in the Insolvency Opinion. 
 3.1.41 Owner Entity/Trailing Liabilities. Except for that certain lawsuit between Borrower and Deutsche Bank Trust Company Americas which is concurrently herewith being jointly dismissed
with prejudice, (a) Borrower is not now party to any lawsuit, arbitration or adversarial legal proceeding except (i) lawsuits, arbitrations or legal proceedings which have been dismissed with prejudice (and for which the time period for
any and all appeals has expired), (ii) lawsuits, arbitrations or legal proceedings which have been paid or satisfied in full, (iii) lawsuits, arbitrations or legal proceedings for which Borrower’s liability is fully covered by
Borrower’s insurance, or (iv) bankruptcy proceedings in which Borrower is or was a creditor or proceedings in which Borrower is or was a plaintiff ( provided no counterclaims or crossclaims have been asserted against Borrower).

 (b) No judgments or liens of any nature are filed against or imposed upon Borrower or any of its property or assets, except
for tax liens with respect to taxes that are not yet due and payable and liens disclosed in the Title Policy. 
 (c)
Intentionally deleted. 
  

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 (d) Borrower is not involved in any dispute with any taxing authority other than normal
appeals relating to (i) valuation for ad valorem tax purposes and (ii) calculations of sales tax on utility consumption. 
 (e) Borrower has no material contingent or actual obligations not related to the Property. 
 (f) Borrower is and,
since its formation has been duly formed, validly existing, and in good standing under the laws of the State of Pennsylvania. 
 (g) Borrower is not delinquent in the payment of any Taxes. 
 3.1.42 REA. The REA is in full force and
effect and neither Borrower nor to Borrower’s knowledge, any other party to the REA, is in default thereunder, and to the best of Borrower’s knowledge, there are no conditions which, with the passage of time or the giving of notice, or
both, would constitute a default thereunder. Except as set forth on Schedule VI, the REA has not been modified, amended or supplemented. 
 Section 3.2 Survival of Representations. The representations and warranties set forth in Section 3.1 shall survive, and any covenants contained in Section 3.1 shall
continue, for so long as any amount remains payable to Lender under this Agreement or any of the other Loan Documents. 
 Section 3.3 Mezzanine Loan. Notwithstanding the foregoing provisions of this Article 3, Borrower shall not be deemed to have violated any of the foregoing representations by signing the Senior Mezzanine Note, the
Junior A Mezzanine Note, the Junior B Mezzanine Note, the Senior Mezzanine Loan Agreement, the Junior A Mezzanine Loan Agreement and the Junior B Mezzanine Loan Agreement in connection with the Senior Mezzanine Loan, the Junior A Mezzanine Loan and
the Junior B Mezzanine Loan. 
 IV. BORROWER COVENANTS 
 Section 4.1 Borrower Affirmative Covenants. 
 Borrower hereby covenants and agrees with Lender that: 
 4.1.1 Existence;
Compliance with Legal Requirements. Borrower shall do or cause to be done all things necessary to preserve, renew and keep in full force and effect its existence, rights, licenses, permits and franchises and comply in all material respects
with all Legal Requirements applicable to it and the Property, including, without limitation, Prescribed Laws. 
 4.1.2
Taxes and Other Charges. Borrower shall pay all Taxes and Other Charges now or hereafter levied or assessed or imposed against the Property or any part thereof as the same become due and payable, provided , however ,
Borrower’s obligation to directly pay Taxes shall be suspended for so long as Borrower complies with the terms and provisions of Section 6.2 hereof. Borrower shall furnish to Lender receipts for the payment of the Taxes and the Other
Charges prior to the date the same shall become delinquent; provided , however , that

  

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Borrower is not required to furnish such receipts for payment of Taxes in the event that such Taxes have been paid by Lender pursuant to Section 6.2 hereof. Borrower shall not permit or
suffer and shall promptly discharge any lien or charge against the Property; however, after prior notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding, conducted in good faith and with due diligence, the amount
or validity of any Taxes or Other Charges, provided that (i) no Event of Default has occurred and remains uncured; (ii) such proceeding shall be permitted under and be conducted in accordance with all applicable statutes, laws and
ordinances; (iii) neither the Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost; (iv) Borrower shall promptly upon final determination thereof pay the amount of any
such Taxes or Other Charges, together with all costs, interest and penalties which may be payable in connection therewith; (v) such proceeding shall suspend the collection of Taxes or Other Charges from the Property; and (vi) Borrower
shall deposit with Lender cash, or other security as may be approved by Lender, in an amount equal to one hundred twenty-five percent (125%) of the contested amount, to insure the payment of any such Taxes or Other Charges, together with all
interest and penalties thereon. Lender may pay over any such cash or other security held by Lender to the claimant entitled thereto at any time when, in the good faith judgment of Lender, the entitlement of such claimant is established. 

4.1.3 Litigation. Borrower shall give prompt notice to Lender of any litigation or governmental proceedings known to
Borrower, pending or threatened in writing against Borrower which would materially adversely affect the Property or Borrower’s ability to perform its obligations hereunder or under the other Loan Documents. 
 4.1.4 Access to Property. Borrower shall permit agents, representatives and employees of Lender to inspect the Property
or any part thereof at reasonable hours upon reasonable advance notice. 
 4.1.5 Further Assurances; Supplemental Mortgage
Affidavits. Borrower shall, at Borrower’s sole cost and expense: 
 (a) execute and deliver to Lender such
documents, instruments, certificates, assignments and other writings, and do such other acts necessary or desirable, to evidence, preserve and/or protect the collateral at any time securing or intended to secure the obligations of Borrower under the
Loan Documents, as Lender may reasonably require; and 
 (b) do and execute all and such further lawful and reasonable acts,
conveyances and assurances for the better and more effective carrying out of the intents and purposes of this Agreement and the other Loan Documents, as Lender shall reasonably require from time to time. 
 4.1.6 Financial Reporting. 
 (a) Borrower shall keep and maintain or will cause to be kept and maintained proper and accurate books and records, in accordance with GAAP, reflecting the financial affairs of Borrower. Lender shall have
the right from time to time during normal business hours upon reasonable written notice (but no more than twice per year when there is no occurrence and continuance of an Event of Default) to Borrower to examine such books and records at the office
of Borrower or other Person maintaining such books and records and to make such copies or extracts thereof as Lender shall desire. 
  

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 (b) Borrower shall furnish Lender annually, within one hundred twenty (120) days
following the end of each Fiscal Year, a complete copy of Borrower’s annual financial statements audited by a “Big Four” accounting firm or other independent certified public accountant reasonably acceptable to Lender prepared in
accordance with GAAP covering the Property, including statements of income and expense and cash flow for Borrower and the Property and a balance sheet for Borrower. Borrower’s annual financial statements shall be accompanied by an
Officer’s Certificate stating that such annual financial statement presents fairly the financial condition and the results of operations of Borrower and the Property. Together with Borrower’s annual financial statements, Borrower shall
furnish to Lender an Officer’s Certificate certifying as of the date thereof whether to Borrower’s actual knowledge each such financial statement is true, correct and complete in all respects. In addition, Borrower shall provide Lender
with the annual financial statements of Senior Mezzanine Borrower, Junior A Mezzanine Borrower, Junior B Mezzanine Borrower and Guarantor, each accompanied by an Officer’s Certificate certifying that each such financial statement is true,
correct and complete in all respects. 
 (c) Borrower will furnish Lender on or before the forty-fifth (45th) day after the
end of each fiscal quarter (based on Borrower’s Fiscal Year), the following items, accompanied by an Officer’s Certificate, certifying that such items are true, correct, accurate and complete and fairly present the financial condition and
results of the operations of Borrower and the Property in accordance with GAAP as applicable: 
 (i) a comparative balance sheet
for Borrower illustrating the current quarter-end position and the position at the beginning of Borrower’s fiscal year; 
 (ii) an income statement illustrating the most current month of operations and the fiscal year-to-date operations for Borrower; 
 (iii) a cash flow statement indicating the fiscal year-to-date cash flow of Borrower; 
 (iv) a comparison of the budgeted income and expenses and the actual income and expenses for such month and year to date for the Property, together with a detailed explanation of any variances of more than the greater of five percent
(5%) or $10,000.00 between budgeted and actual year-to-date amounts; 
 (v) a comparison of the actual income and expenses
for the current year to date and the actual income and expenses for the comparable period of the previous year for the Property; 
 (vi) a current rent roll for the Property; and 
 (vii) an aged accounts receivable report for payments due from
Tenants at the Property. 
  

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 (d) Borrower will furnish Lender on or before the twenty-fifth (25th) day after the end
of each calendar month, the following items, accompanied by an Officer’s Certificate, certifying that such items are true, correct, accurate, and complete and fairly present the financial condition and results of the operations of Borrower and
the Property in a manner consistent with GAAP, as applicable: 
 (i) monthly and year-to-date statements of income and expense
and cash flow prepared for such month with respect to the Property; 
 (ii) a current rent roll for the Property; and

 (iii) any notice received from a Tenant threatening non-payment of Rent or other default, alleging or acknowledging a default
by landlord. 
 (e) Borrower shall submit the Annual Budget to Lender not later than thirty (30) days prior to the
commencement of each Fiscal Year. Lender shall have the right to approve each Annual Budget covering any period of time after the Closing Date, which approval shall not be unreasonably withheld, conditioned or delayed. Annual Budgets approved by
Lender shall hereinafter be referred to as an “Approved Annual Budget.” In the event that Borrower incurs an Unbudgeted Expense, then Borrower shall promptly deliver to Lender a reasonably detailed explanation of such proposed
Unbudgeted Expense for Lender’s approval. 
 (f) Borrower shall furnish to Lender, within ten (10) Business Days after
request (or as soon thereafter as may be reasonably possible), such further detailed information with respect to the operation of the Property and the financial affairs of Borrower as may be reasonably requested by Lender. 
 4.1.7 Title to the Property. Borrower will warrant and defend the validity and priority of the Liens of the Mortgage
and the Assignment of Leases on the Property against the claims of all Persons whomsoever, subject only to Permitted Encumbrances. 
 4.1.8 Estoppel Statement. 
 (a) After request by Lender, Borrower shall within five
(5) Business Days furnish Lender with a statement, duly acknowledged and certified, stating (i) the unpaid principal amount of the Note, (ii) the Interest Rate of the Note, (iii) the date installments of interest and/or principal
were last paid, (iv) to Borrower’s actual knowledge, any offsets or defenses to the payment of the Debt, if any, (v) that this Agreement and the other Loan Documents have not been modified or if modified, giving particulars of such
modification and (vi) if to Borrower’s actual knowledge, there are any Events of Default under the Loan. 
 (b) After
request by Borrower, Lender shall within ten (10) Business Days furnish Borrower with a statement, duly acknowledged and certified, stating (i) the unpaid principal amount of the Note, (ii) the Interest Rate of the Note,
(iii) the date installments of interest and/or principal were last paid, (iv) whether or not Lender has sent any notice of default under the Loan Documents which remains uncured in the opinion of Lender and (v) if to Lender’s
actual knowledge, there are any Events of Default under the Loan. 
  

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 (c) Borrower shall use commercially reasonable efforts to deliver to Lender, upon thirty
(30) days’ request, an estoppel certificate from each Tenant under any Lease; provided that such certificate may be in the form required under such Lease; provided further that Borrower shall not be required to deliver such certificates
more frequently than one (1) time in any calendar year or two (2) times in any calendar year in which a Securitization occurs. 
 (d) Borrower shall deliver to Lender, upon request, estoppel certificates from each party to the REA; provided, however, that such certificates may be in the form required under the REA; provided further
that Borrower shall not be required to deliver such certificates more than three (3) times during the term of the Loan and not more frequently than once per calendar year (or twice during any calendar year in which a Securitization occurs).

 4.1.9 Leases. 
 (a) All Leases and all renewals of Leases executed after the date hereof shall (i) provide for rental rates comparable to existing local market rates for similar properties taking into account the
other terms of the Lease, (ii) be on commercially reasonable terms, (iii) provide that such Lease is subordinate to the Mortgage and that the lessee will attorn to Lender and any purchaser at a foreclosure sale and (iv) not contain
any terms which would materially adversely affect Lender’s rights under the Loan Documents. All Major Leases and all renewals, amendments and modifications thereof executed after the date hereof shall be subject to Lender’s prior approval,
which approval shall not be unreasonably withheld, conditioned or delayed; provided, however, that Borrower may, without Lender’s consent (x) enter into renewals, modifications, amendments, expansions and terminations of existing Leases
that are not Major Leases and (y) enter into new Leases that are not Major Leases. Lender shall execute and deliver a Subordination Non-Disturbance and Attornment Agreement in the form annexed as Schedule IV to Tenants under future
Leases approved or deemed approved by Lender promptly upon request with such commercially reasonable changes as may be requested by Tenants, from time to time, and which are reasonably acceptable to Lender. All Leases that are not Major Leases which
provide for tenant improvements, tenant allowances and leasing commissions, in the aggregate in excess of $50.00 per rentable square foot, are subject to Lender’s prior approval, such approval not to be unreasonably withheld, conditioned or
delayed. Moreover, it shall be reasonable for Lender to withhold its approval of any Lease which provides for an excess of $50.00 per rentable square foot for tenant improvements, tenant allowances and leasing commissions in the aggregate unless
Borrower provides Lender evidence that it has the financial ability (e.g., adequate funds on deposit with Senior Mezzanine Lender which are available for the payment of same) to fund such excess before Lender disburses same out of the various
Reserve Funds. 
 (b) Borrower (i) shall observe and perform the obligations imposed upon the lessor under the Leases in a
commercially reasonable manner; (ii) shall use commercially reasonable efforts to enforce the terms, covenants and conditions contained in the Leases upon the part of the lessee thereunder to be observed or performed in a commercially
reasonable manner, provided , however , Borrower shall not terminate or accept a surrender of a Major Lease without Lender’s prior approval which approval shall not be unreasonably withheld, delayed or conditioned provided
further, however, that it shall not be unreasonable for Lender to withhold its approval if the Senior Mezzanine Lender or the Junior A Mezzanine Lender or the Junior B

  

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Mezzanine Lender (or any holder of any loan which refinanced such mezzanine loans) do not approve such termination or surrender, (iii) shall not collect any of the Rents more than one
(1) month in advance (other than security deposits and lease termination payments permitted under Leases permitted hereunder); (iv) shall not execute any assignment of lessor’s interest in the Leases or the Rents (except as
contemplated by the Loan Documents); and (v) shall hold all security deposits under all Leases in accordance with Legal Requirements. Upon request, Borrower shall furnish Lender with executed copies of all Leases. 
 (c) Notwithstanding anything to the contrary contained in this Section 4.1.9: 
 (i) whenever Lender’s approval or consent is required pursuant to the provisions of this Section 4.1.9, Borrower shall have the
right to submit a term sheet for any Major Lease or any renewal, modification or amendment thereof to Lender for Lender’s approval, such approval not to be unreasonably withheld, delayed or conditioned. Any such term sheet submitted to Lender
shall set forth all material terms of the proposed Major Lease (or renewal, modification or amendment thereof) including, without limitation, identity of tenant, square footage, term, rent, rent credits, abatements, work allowances and tenant
improvements to be constructed by Borrower and include a request containing a legend in bold letters stating that upon Lender’s failure to respond within ten (10) Business Days the lease transaction described in the term sheet shall be
deemed consented to and approved. Lender shall respond within ten (10) Business Days after Lender’s receipt of Borrower’s written request for approval or consent of such term sheet. If Lender fails to respond to such request within
ten (10) Business Days, Lender shall be deemed to have approved or consented to such term sheet; 
 (ii) whenever
Lender’s approval or consent is required pursuant to the provisions of this Section 4.1.9 for any matter that Lender has not previously approved a term sheet pursuant to Section 4.1.9(c)(i) above, Lender shall respond within ten
(10) Business Days after Lender’s receipt of Borrower’s written request for such approval or consent which contains a legend in bold letters stating that Lender’s failure to respond within ten (10) Business Days shall be
deemed consent or approved. If Lender fails to respond to such request within ten (10) Business Days, Lender shall be deemed to have approved or consented to the matter for which lender’s consent or approval was sought; 
 (iii) whenever Lender’s approval or consent is required pursuant to the provisions of this Section 4.1.9 for any matter that
Lender has previously approved a term sheet pursuant to Section 4.1.9(c)(i) above, Lender shall respond within ten (10) Business Days after Lender’s receipt of Borrower’s written request for such approval or consent containing a
legend in bold letters stating that Lender’s failure to respond within ten (10) Business Days shall be deemed consent or approval. If Lender fails to respond to such request within ten (10) Business Days, Lender shall be deemed to
have approved or consented to the matter for which Lender’s consent or approval was sought. The ten (10) Business Day periods contained in this subsection (iii) shall be reduced to three (3) Business Days if the matter involves a
new Major Lease or an amended and restated Major Lease, a term sheet is approved, a blacklined copy of the new document against the Approved Lease Form is delivered to Lender and an Officer’s Certificate is delivered to Lender, in each case
indicating that the new document’s only differences with the Approved Lease Form are as reflected in the approved term sheet and those which do not materially adversely affect the Property, Borrower or Lender; 
  

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 (iv) in the event that Lender shall have approved (or be deemed to have approved) a term
sheet submitted by Borrower with respect to a certain Lease, Lender shall not withhold its approval or consent with respect to such Lease on the basis of any provisions of such Lease dealing with the items contained in the approved term sheet or any
other provisions which do not materially adversely affect the Property, Borrower or Lender; and 
 (v) Borrower shall have the
right, without the consent or approval of Lender in any instance, to terminate or accept a surrender of any Lease that is not a Major Lease. 
 4.1.10 Alterations. Lender’s prior approval shall be required in connection with any alterations to any Improvements (except tenant improvements under any Lease approved
by Lender or under any Lease for which approval was not required by Lender under this Agreement) (a) that is likely to have a material and adverse effect on Borrower’s financial condition, the value of the Property or the ongoing revenues
and expenses of the Property or (b) the cost of which (including any related alteration, improvement or replacement) is reasonably anticipated to exceed the Alteration Threshold. If the total unpaid amounts incurred and to be incurred with
respect to such alterations to the Improvements shall at any time exceed the Alteration Threshold, Borrower shall promptly deliver to Lender as security for the payment of such amounts and as additional security for Borrower’s obligations under
the Loan Documents any of the following: (i) cash, (ii) Letters of Credit (iii) U.S. Obligations, (iv) other securities acceptable to Lender, provided that Lender shall have received a Rating Agency Confirmation as to the form
and issuer of same, or (v) a completion bond, provided that Lender shall have received a Rating Agency Confirmation as to the form and issuer of same. Such security shall be in an amount equal to the excess of the total unpaid amounts incurred
and to be incurred with respect to such alterations to the Improvements (other than such amounts to be paid or reimbursed by Tenants under the Leases) over the Alteration Threshold. 
 4.1.11 Intentionally Omitted. 
 4.1.12 Material Agreements. Borrower shall (a) promptly perform and/or observe all of the material covenants and agreements required to be performed and observed by it under each
Material Agreement to which it is a party, and do all things necessary to preserve and to keep unimpaired its rights thereunder, (b) promptly notify Lender in writing of the giving of any notice of any default by any party under any Material
Agreement of which it is aware and (c) promptly enforce the performance and observance of all of the material covenants and agreements required to be performed and/or observed by the other party under each Material Agreement to which it is a
party in a commercially reasonable manner. 
 4.1.13 Performance by Borrower. Borrower shall in a timely
manner observe, perform and fulfill each and every covenant, term and provision of each Loan Document executed and delivered by Borrower, and shall not enter into or otherwise suffer or permit any amendment, waiver, supplement, termination or other
modification of any Loan Document executed and delivered by Borrower without the prior consent of Lender. 
 4.1.14 Costs
of Enforcement/Remedying Defaults. In the event (a) that the Mortgage is foreclosed in whole or in part or the Note or any other Loan Document is put into the hands of an attorney for collection, suit, action or foreclosure,
(b) of the foreclosure of any 
  

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Lien or Mortgage prior to or subsequent to the Mortgage in which proceeding Lender is made a party, (c) of the bankruptcy, insolvency, rehabilitation or other similar proceeding in respect
of Borrower or Guarantor or an assignment by Borrower or Guarantor for the benefit of its creditors, or (d) Lender shall remedy or attempt to remedy any Event of Default hereunder, Borrower shall be chargeable with and agrees to pay all out of
pocket costs incurred by Lender as a result thereof, including costs of collection and defense (including reasonable attorneys’, experts’, consultants’ and witnesses’ fees and disbursements) in connection therewith and in
connection with any appellate proceeding or post-judgment action involved therein, which shall be due and payable on ten (10) days’ notice from Lender, together with interest thereon from the date incurred by Lender at the Default Rate,
and together with all required service or use taxes. 
 4.1.15 Business and Operations. Borrower will continue to
engage in the businesses currently conducted by it as and to the extent the same are necessary for the ownership and leasing of the Property. Borrower will qualify to do business and will remain in good standing under the laws of each jurisdiction
as and to the extent the same are required for the ownership and leasing of the related Property. Borrower shall at all times cause the Property to be maintained as a first class office building. 
 4.1.16 Loan Fees. 
 Borrower shall pay all fees and costs required of Borrower pursuant to the terms of that certain commitment letter between Thomas Development Partners, L.P., DB Realty Mezzanine Investment Fund II, LLC
and Morgan Stanley Mortgage Capital Inc. dated June 3, 2003. 
 Section 4.2 Borrower Negative Covenants.

 Borrower covenants and agrees with Lender that: 
 4.2.1 Due on Sale and Encumbrance; Transfers of Interests. Except with respect to the Senior Mezzanine Loan, the Junior A Mezzanine Loan and the Junior B Mezzanine Loan, without the prior
written consent of Lender, Borrower or any other Person having a direct or indirect ownership or beneficial interest in Borrower shall not sell, convey, mortgage, grant, bargain, encumber, pledge, assign or transfer any interest, direct or indirect,
in the Borrower, the Property or any part thereof, whether voluntarily or involuntarily, in violation of the covenants and conditions set forth in the Mortgage and this Agreement. Borrower shall not be deemed to have violated this Section 4.2.1
in connection with Borrower’s execution and delivery of the Senior Mezzanine Note, the Junior A Mezzanine Note, the Junior B Note, the Senior Mezzanine Loan Agreement, the Junior A Mezzanine Loan Agreement, the Junior B Loan Agreement, the
mezzanine cash management agreements executed in connection with the foregoing and the pledge agreements delivered on the Closing Date in connection with the foregoing (which pledge agreements are not executed by Borrower). Notwithstanding the
foregoing, Lender’s consent shall not be required for the refinancing of the Senior Mezzanine Loan, the Junior A Mezzanine Loan and the Junior B Mezzanine Loan provided (i) the amount of the new financing shall not exceed the amount
necessary to satisfy in full the Senior Mezzanine Loan, the Junior A Mezzanine Loan and the Junior B Mezzanine Loan, including normal and customary costs and reasonable fees of the new lender, (ii) the new lender is a Qualified Transferee;
(iii) the loan

  

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documents for the refinanced mezzanine loans do not impose a materially greater burden on Borrower, Senior Mezzanine Borrower, Junior A Mezzanine Borrower or the Junior B Mezzanine Borrower, and
(iv) an intercreditor agreement satisfactory to Lender is executed and delivered between Lender and the new mezzanine lender(s); provided, however, that in the event that the proposed refinancing exceeds the amount in clause (i) above or
the proposed lender is not a Qualified Transferee, Borrower may nonetheless proceed with such refinancing if Borrower obtains Lender’s consent (not to be unreasonably withheld, conditioned or delayed) and, if a Securitization has occurred,
Borrower has obtained a Rating Agency Confirmation with respect thereto. 
 4.2.2 Liens. Borrower shall not
create, incur, assume or suffer to exist any Lien on any portion of the Property except for Permitted Encumbrances. 
 4.2.3
Dissolution. Borrower shall not (i) engage in any dissolution, liquidation or consolidation or merger with or into any other business entity, (ii) engage in any business activity not related to the ownership and operation
of the Property, (iii) transfer, lease or sell, in one transaction or any combination of transactions, all or substantially all of the property or assets of Borrower except to the extent expressly permitted by the Loan Documents, or
(iv) cause, permit or suffer any SPC Party to (A) dissolve, wind up or liquidate or take any action, or omit to take an action, as a result of which such SPC Party would be dissolved, wound up or liquidated in whole or in part, or
(B) amend, modify, waive or terminate the certificate of formation or operating agreement of such SPC Party to delete, amend or otherwise modify the single purpose entity covenants set forth in Section 3.1.24 or those provisions which
pursuant to such formation or operating agreements cannot be modified without Lender’s consent, in each case without obtaining the prior consent of Lender. 
 4.2.4 Change in Business. Borrower shall not enter into any line of business other than the ownership and operation of the Property and matters incidental thereto. 
 4.2.5 Debt Cancellation. Borrower shall not cancel or otherwise forgive or release any claim or debt (other than
termination of Leases in accordance herewith) owed to Borrower by any Person, except for adequate consideration and in the ordinary course of Borrower’s business. 
 4.2.6 Affiliate Transactions. Borrower shall not enter into, or be a party to, any transaction with an Affiliate of Borrower or any of the partners of Borrower except in the ordinary
course of business and on terms which are fully disclosed to Lender in advance and are no less favorable to Borrower or such Affiliate than would be obtained in a comparable arm’s-length transaction with an unrelated third party. 
 4.2.7 Zoning. Borrower shall not initiate or consent to any zoning reclassification of any portion of the Property or
seek any variance under any existing zoning ordinance or use or permit the use of any portion of the Property in any manner that could result in such use becoming a non-conforming use under any zoning ordinance or any other applicable land use law,
rule or regulation, without the prior consent of Lender, not to be unreasonably withheld. 
  

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 4.2.8 Assets. Borrower shall not purchase or own any property other
than the Property and any property necessary or incidental for the operation of the Property. 
 4.2.9 No Joint
Assessment. Borrower shall not suffer, permit or initiate the joint assessment of the Property (i) with any other real property constituting a tax lot separate from the Property, and (ii) with any portion of the Property
which may be deemed to constitute personal property, or any other procedure whereby the lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to the Property. 
 4.2.10 Principal Place of Business. Borrower shall not change its principal place of business from the address set
forth on the first page of this Agreement without promptly thereafter notifying Lender in writing. 
 4.2.11
ERISA. (a) Borrower shall not engage in any transaction which would cause any obligation, or action taken or to be taken, hereunder (or the exercise by Lender of any of its rights under the Note, this Agreement or the other
Loan Documents) to be a non-exempt (under a statutory or administrative class exemption) prohibited transaction under the ERISA; or Section 4975 of the Code. 
 (b) Borrower shall deliver to Lender such certifications or other evidence from time to time throughout the term of the Loan, as requested by Lender in its sole discretion, that (A) Borrower is not
an “employee benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “plan” within the meaning of Section 4975 of the Code; (B) Borrower is not subject to any state statute
regulating investments of, or fiduciary obligations with respect to, governmental plans as defined in Section 3(32) of ERISA; and (C) one or more of the following circumstances is true: 
 (i) Equity interests in Borrower are publicly offered securities, within the meaning of the Plan Assets Regulation; 
 (ii) Less than twenty-five percent (25%) of each outstanding class of equity interests in Borrower is held by “benefit plan
investors” within the meaning of the Plan Assets Regulation; or 
 (iii) Borrower qualifies as an “operating
company,” a “venture capital operating company” or a “real estate operating company” within the meaning of the Plan Assets Regulation. 
 4.2.12 Material Agreements. Borrower shall not, without Lender’s prior written consent, which shall not be unreasonably withheld, delayed or conditioned: (a) increase or consent to
the increase of the amount of any charges under any Material Agreement to which it is a party, except as provided therein or on an arms’-length basis and commercially reasonable terms; or (b) otherwise modify, change, supplement, alter or
amend, or waive or release any of its rights and remedies under any Material Agreement to which it is a party in any material respect, except on an arms’-length basis and commercially reasonable terms. 
 4.2.13 REA. Borrower agrees that without the prior consent of Lender, Borrower will not execute modifications to the REA if
such modification will have a material adverse effect on the use, operation or value (including the underwritable cash flow) of the Property, taken as a whole, or the ability of Borrower to pay its obligations in respect of the Loan. 
  

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 V. INSURANCE, CASUALTY AND CONDEMNATION 
 Section 5.1 Insurance. 
 5.1.1 Insurance Policies. (a) Borrower shall obtain and maintain, or cause to be maintained, insurance for Borrower and the Property providing at least the following coverages:

 (i) comprehensive all risk insurance on the Improvements and the personal property at the Property, including contingent
liability from Operation of Building Laws, Demolition Costs and Increased Cost of Construction Endorsements, in each case (A) in an amount equal to one hundred percent (100%) of the “Full Replacement Cost,” which for purposes of
this Agreement shall mean actual replacement value (exclusive of costs of excavations, foundations, underground utilities and footings) with a waiver of depreciation, but the amount shall in no event be less than the outstanding principal balance of
the Loan; (B) containing an agreed amount endorsement with respect to the Improvements and personal property at the Property waiving all co-insurance provisions; (C) providing for no deductible in excess of Twenty-Five Thousand and No/100
Dollars ($25,000) for all such insurance coverage; and (D) containing an “Ordinance or Law Coverage” or “Enforcement” endorsement if any of the Improvements or the use of the Property shall at any time constitute legal
non-conforming structures or uses. In addition, Borrower shall obtain: (y) if any portion of the Improvements is currently or at any time in the future located in a federally designated “special flood hazard area”, flood hazard
insurance in an amount equal to the lesser of (1) the outstanding principal balance of the Note or (2) the maximum amount of such insurance available under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973
or the National Flood Insurance Reform Act of 1994, as each may be amended or such greater amount as Lender shall require; and (z) earthquake insurance in amounts and in form and substance satisfactory to Lender in the event the Property is
located in an area with a high degree of seismic activity, provided that the insurance pursuant to clauses (y) and (z) hereof shall be on terms consistent with the comprehensive all risk insurance policy required under this subsection (i).

 (ii) commercial general liability insurance against claims for personal injury, bodily injury, death or property damage
occurring upon, in or about the Property, such insurance (A) to be on the so-called “occurrence” form with a per occurrence limit of One Million and No/100 Dollars ($1,000,000) and a general aggregate, excluding umbrella coverage, of
not less than Two Million and No/100 Dollars ($2,000,000) and (B) to cover at least the following hazards: (1) premises and operations; (2) products and completed operations on an “if any” basis; (3) independent
contractors; (4) blanket contractual liability for all insured contracts; and (5) contractual liability covering the indemnities contained in Article 9 of the Mortgage to the extent the same is available; 
  

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 (iii) business income insurance (A) with loss payable to Lender, (B) covering all
risks required to be covered by the insurance provided for in subsection (i) above for a period commencing at the time of loss for such length of time as it takes to repair or replace with the exercise of due diligence and dispatch;
(C) containing an extended period of indemnity endorsement which provides that after the physical loss to the Improvements and Personal Property has been repaired, the continued loss of income will be insured until such income either returns to
the same level it was at prior to the loss, or the expiration of twelve (12) months from the date that the Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that the policy may expire prior
to the end of such period; and (D) in an amount equal to one hundred percent (100%) of the projected gross income from the Property for a period from the date of loss to a date (assuming total destruction) which is twelve (12) months
from the date that the Property is repaired or replaced and operations are resumed. The amount of such business income insurance shall be determined prior to the date hereof and at least once each year thereafter based on Borrower’s reasonable
estimate of the gross income from the Property for the succeeding twelve (12) month period. All proceeds payable to Lender pursuant to this subsection shall be held by Lender and shall be applied to the obligations secured by the Loan Documents
from time to time due and payable hereunder and under the Note; provided , however , that nothing herein contained shall be deemed to relieve Borrower of its obligations to pay the obligations secured by the Loan Documents on the
respective dates of payment provided for in the Note and the other Loan Documents except to the extent such amounts are actually paid out of the proceeds of such business income insurance; 
 (iv) at all times during which structural construction, repairs or alterations are being made with respect to the Improvements, and only if
the Property coverage form does not otherwise apply, (A) owner’s contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the above mentioned commercial general liability insurance
policy; and (B) the insurance provided for in subsection (i) above written in a so-called builder’s risk completed value form (1) on a non-reporting basis, (2) against all risks insured against pursuant to subsection
(i) above, (3) including permission to occupy the Property, and (4) with an agreed amount endorsement waiving co-insurance provisions; 
 (v) to the extent the risks to be covered thereby are not already covered by the Policies maintained by Borrower, workers’ compensation, subject to the statutory limits of the state in which the
Property is located, and employer’s liability insurance with a limit of at least One Million and No/100 Dollars ($1,000,000) per accident and per disease per employee, and One Million and No/100 Dollars ($1,000,000) for disease aggregate in
respect of any work or operations on or about the Property, or in connection with the Property or its operation (if applicable); 
 (vi) comprehensive boiler and machinery insurance, if applicable, in amounts as shall be reasonably required by Lender on terms consistent with the commercial property insurance policy required under subsection (i) above; 

(vii) umbrella liability insurance in addition to primary coverage in an amount not less than Twenty-Five Million and No/100 Dollars
($25,000,000) per occurrence on terms consistent with the commercial general liability insurance policy required under subsection (ii) above and (viii) below; 
  

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 (viii) motor vehicle liability coverage for all owned and non-owned vehicles, including
rented and leased vehicles containing minimum limits per occurrence, including umbrella coverage, of One Million and No/100 Dollars ($1,000,000) (if applicable); 
 (ix) so-called “dramshop” insurance or other liability insurance required in connection with the sale of alcoholic beverages (if applicable), 
 (x) insurance against employee dishonesty in an amount not less than one (1) month of gross revenue from the Property and with a
deductible not greater than One Hundred Thousand and No/100 Dollars ($100,000); 
 (xi) (A) during any period of the term
of the Loan that TRIA is in effect, if “acts of terrorism” or other similar acts or events are hereafter excluded from Borrower’s comprehensive all risk insurance policy (including business income), Borrower shall obtain an
endorsement to such policy, or a separate policy insuring against all “certified acts of terrorism” as defined by TRIA and “fire following,” each in an amount equal to (i) one hundred percent (100%) of the “Full
Replacement Cost,” which for purposes of this Agreement shall mean actual replacement value (exclusive of costs of excavations, foundations, underground utilities and footings) with a waiver of depreciation or (ii) the total outstanding
principal balance of the; Loan and the Senior Mezzanine Loan; provided, however, the total annual premium payable by Borrower for such terrorism coverage shall not exceed Three Hundred Seventy Five Thousand and No/100 Dollars
($375,000.00) for such coverage. The endorsement or policy shall be in form and substance reasonably satisfactory to Lender and shall meet Rating Agency criteria for securitized loans; or 
 (B) during any period of the term of the Loan that TRIA is not in effect, if “acts of terrorism” or other similar acts or events
or “fire following” are hereafter excluded from Borrower’s comprehensive all risk insurance policy (including business income), Borrower shall obtain an endorsement to such policy, or a separate policy from an insurance provider which
maintains at least an investment grade rating from Moody’s (that is, “ Baa3 ”) and/or S&P and/or Fitch (that is, “ BBB- ”), insuring against all such excluded acts or events, to the extent such policy or
endorsement is available, in an amount which is at least One Hundred Thirty Five Million and No/100 Dollars ($135,000,000.00) if such coverage is dedicated to the Property only (if coverage is provided on a blanket basis, the coverage under the
blanket policy shall be at least Two Hundred Twenty Five Million and No/100 Dollars ($225,000,000.00); provided , however , the total annual premium payable by Borrower for such terrorism coverage shall not exceed Three Hundred Seventy
Five Thousand and No/100 Dollars ($375,000.00) for such coverage. The endorsement or policy shall be in form and substance reasonably satisfactory to Lender and shall meet Rating Agency criteria for securitized loans. Notwithstanding the foregoing,
Lender may, in its sole discretion, consent to Borrower’s obtaining the coverage required by this Section 5.1.1(a)(xi)(B) from carriers that do not have an investment grade rating as described above (which consent may be conditioned
upon receipt 
  

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of a Rating Agency Confirmation) if Lender, in its sole judgment, determines that it would be beneficial to both the Borrower and the Property to obtain insurance from such carriers based on a
comparison of the various rates, types and amounts of coverage available, as well as the quality of the carriers offering to provide such coverage (it being agreed that once such consent is granted by Lender, the coverage obtained by Borrower and
permitted by Lender shall be deemed to satisfy the requirements of this Section 5.1.1(a)(xi)(B) until the expiration of such coverage based on the expiration date of such coverage consented to by Lender); and 
 (xii) upon sixty (60) days’ notice, such other reasonable insurance and in such reasonable amounts as Lender from time to time may
reasonably request against such other insurable hazards which at the time are commonly insured against for property similar to the Property located in or around the region in which the Property is located. 
 (b) All insurance provided for in Section 5.1.1(a) shall be obtained under valid and enforceable policies (collectively, the
“Policies” or in the singular, the “Policy”) and, to the extent not specified above, shall be subject to the approval of Lender as to deductibles, loss payees and insureds. Prior to the expiration dates of the
Policies theretofore furnished to Lender, certificates of insurance evidencing the Policies accompanied by evidence satisfactory to Lender of payment of the premiums then due thereunder (the “ Insurance Premium ”), shall be
delivered by Borrower to Lender. 
 (c) Any blanket insurance Policy shall specifically allocate to the Property the amount of
coverage from time to time required hereunder and shall otherwise provide the same protection as would a separate Policy insuring only the Property in compliance with the provisions of Section 5.1.1(a). 
 (d) All Policies of insurance provided for or contemplated by Section 5.1.1(a) shall be primary coverage and, except for the Policy
referenced in Section 5.1.1(a)(v), shall name Borrower as the insured and Lender and its successors and/or assigns as the additional insured, as its interests may appear, and in the case of comprehensive all risk insurance, boiler and
machinery, flood, earthquake and terrorism insurance, shall contain standard a mortgagee clause in favor of Lender providing that the loss thereunder shall be payable to Lender. Borrower shall not procure or permit any of its constituent entities to
procure any other insurance coverage which would be on the same level of payment as the Policies or would adversely impact in any way the ability of Lender or Borrower to collect any proceeds under any of the Policies. 
 (e) All Policies of insurance provided for in Section 5.1.1(a), except for the Policies referenced in Section 5.1.1(a)(v) and
(a)(viii) shall contain clauses or endorsements to the effect that: 
 (i) no act (excepting intentional acts (for liability
Policies only)) or negligence of Borrower, or anyone acting for Borrower, or of any Tenant or other occupant, or failure to comply with the provisions of any Policy, which might otherwise result in a forfeiture of the insurance or any part thereof,
shall in any way affect the validity or enforceability of the insurance insofar as Lender is concerned; 
  

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 (ii) the Policy shall not be canceled without at least thirty (30) days’ written
notice to Lender and any other party named therein as an additional insured (except ten (10) days’ written notice with respect to non-payment) and, if obtainable by Borrower using commercially reasonable efforts, shall not be materially
changed (other than to increase the coverage provided thereby) without such a thirty (30) day notice; and 
 (iii) Lender
shall not be liable for any Insurance Premiums thereon or subject to any assessments thereunder. 
 (f) If at any time Lender is
not in receipt of written evidence that all insurance required hereunder is in full force and effect, Lender shall have the right without notice to Borrower, to take such action as Lender deems reasonably necessary to protect its interest in the
Property, including, without limitation, the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate and all premiums incurred by Lender in connection with such action or in obtaining such insurance and keeping it in
effect shall be paid by Borrower to Lender upon ten (10) days written demand and until paid shall be secured by the Mortgage and shall bear interest at the Default Rate from the date incurred. 
 (g) In the event of foreclosure of the Mortgage or other transfer of title to the Property in extinguishment in whole or in part of the
Debt, all right, title and interest of Borrower in and to the Policies that are not blanket Policies then in force concerning the Property and all proceeds payable thereunder shall thereupon vest in the purchaser at such foreclosure or Lender or
other transferee in the event of such other transfer of title. 
 5.1.2 Insurance Company. The Policies
shall be issued by financially sound and responsible insurance companies authorized to do business in the state in which the Property is located and having a claims paying ability rating of “AA-” or better by S&P or Fitch or an
insurance financial strength rating of “Aa3” by Moody’s. Notwithstanding the foregoing, Borrower shall be permitted to maintain the Policies with insurance companies which do not meet the foregoing requirements (an “Otherwise
Rated Insurer”), provided Borrower obtains a “cut-through” endorsement (that is, an endorsement which permits recovery against the provider of such endorsement), or similar credit enhancing vehicle which accomplishes the same
financial wherewithal objective, with respect to any Otherwise Rated Insurer from an insurance company which meets the claims paying ability ratings required above with the cut-through endorsement (or other such vehicle) in effect at all times, in
an amount not less than the Full Replacement Cost of the Property. Moreover, if Borrower desires to maintain insurance required hereunder from an insurance company which does not meet the claims paying ability ratings set forth herein but the parent
of such insurance company, which owns at least fifty-one percent (51%) of such insurance company, maintains such ratings, Borrower may use such insurance companies if approved by the Rating Agencies (such approval may be conditioned on items
required by the Rating Agencies including a requirement that the parent guarantee the obligations of such insurance company). 
  

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 Section 5.2 Casualty and Condemnation. 
 5.2.1 Casualty. If the Property shall sustain a Casualty, Borrower shall give prompt notice of such Casualty to Lender and
shall promptly commence and diligently prosecute to completion the repair and restoration of the Property as nearly as possible to the condition the Property was in immediately prior to such Casualty (a “Restoration”) and otherwise
in accordance with Section 5.3, it being understood, however, that Borrower shall not be obligated to restore the Property to the precise condition of the Property prior to such Casualty provided the Property is restored, to the extent
practicable, to be of at least equal value and of substantially the same character as prior to the Casualty. Borrower shall pay all costs of such Restoration whether or not such costs are covered by insurance. Lender may, but shall not be obligated
to, make proof of loss if not made promptly by Borrower. In the event of a Casualty where the loss does not exceed Restoration Threshold, Borrower may settle and adjust such claim; provided that (a) no Event of Default has occurred and is
continuing and (b) such adjustment is carried out in a commercially reasonable and timely manner. In the event of a Casualty where the loss exceeds the Restoration Threshold or if an Event of Default then exists, Borrower may settle and adjust
such claim only with the consent of Lender (which consent shall not be unreasonably withheld, delayed or conditioned) and Lender shall have the opportunity to participate, at Borrower’s cost, in any such adjustments. Notwithstanding any
Casualty, Borrower shall continue to pay the Debt at the time and in the manner provided for its payment in the Note and in this Agreement. 
 5.2.2 Condemnation. Borrower shall give Lender prompt notice of any actual or threatened Condemnation by any Governmental Authority of all or any part of the Property and shall
deliver to Lender a copy of any and all papers served in connection with such proceedings. Provided no Event of Default has occurred and is continuing, in the event of a Condemnation where the amount of the taking does not exceed the Restoration
Threshold, Borrower may settle and compromise such Condemnation; provided that the same is effected in a commercially reasonable and timely manner. In the event a Condemnation where the amount of the taking exceeds the Restoration Threshold or if an
Event of Default then exists, Borrower may settle and compromise the Condemnation only with the consent of Lender (which consent shall not be unreasonably withheld, delayed or conditioned) and Lender shall have the opportunity to participate, at
Borrower’s cost, in any litigation and settlement discussions in respect thereof and Borrower shall from time to time deliver to Lender all instruments requested by Lender to permit such participation. Borrower shall, at its expense, diligently
prosecute any such proceedings, and shall consult with Lender, its attorneys and experts, and cooperate with them in the carrying on or defense of any such proceedings. Notwithstanding any Condemnation, Borrower shall continue to pay the Debt at the
time and in the manner provided for its payment in the Note and in this Agreement. Lender shall not be limited to the interest paid on the Award by any Governmental Authority but shall be entitled to receive out of the Award interest at the rate or
rates provided herein or in the Note. If the Property or any portion thereof is taken by any Governmental Authority, Borrower shall promptly commence and diligently prosecute the Restoration of the Property and otherwise comply with the provisions
of Section 5.3. If the Property is sold, through foreclosure or otherwise, prior to the receipt by Lender of the Award, Lender shall have the right, whether or not a deficiency judgment on the Note shall have been sought, recovered or denied,
to receive the Award, or a portion thereof sufficient to pay the Debt. 
  

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 5.2.3 Casualty Proceeds. Notwithstanding the last sentence of
Section 5.1.1(a)(iii) and provided no Event of Default exists and is continuing hereunder, proceeds received by Lender on account of the business interruption insurance specified in Subsection 5.1.1(a)(iii) above with respect to any Casualty
shall be deposited by Lender directly into the Deposit Account (as defined in the Cash Management Agreement) but (a) only to the extent it reflects a replacement for (i) lost Rents that would have been due under Leases existing on the date
of such Casualty, and/or (ii) lost Rents under Leases that had not yet been executed and delivered at the time of such Casualty which Borrower has proven to the insurance company would have been due under such Leases (and then only to the
extent such proceeds disbursed by the insurance company reflect a replacement for such past due Rents) and (b) only to the extent necessary to fully make the disbursements required by Section 3.3(a) through (h) of the Cash Management
Agreement. All other such proceeds shall be held by Lender and disbursed in accordance with Section 5.3 hereof. 
 Section 5.3 Delivery of Net Proceeds. 
 5.3.1 Minor Casualty or Condemnation.
If a Casualty or Condemnation has occurred to the Property and the Net Proceeds shall be less than the Restoration Threshold and the costs of completing the Restoration shall be less than the Restoration Threshold, and provided no Event of Default
shall have occurred and remain uncured, the Net Proceeds will be disbursed by Lender to Borrower. Promptly after receipt of the Net Proceeds, Borrower shall commence and satisfactorily complete with due diligence the Restoration in accordance with
the terms of this Agreement. If any Net Proceeds are received by Borrower and may be retained by Borrower pursuant to the terms hereof, such Net Proceeds shall, until completion of the Restoration, be held in trust for Lender and shall be segregated
from other funds of Borrower to be used to pay for the cost of Restoration in accordance with the terms hereof. 
 5.3.2
Major Casualty or Condemnation. (a) If a Casualty or Condemnation has occurred to the Property and the Net Proceeds are equal to or greater than the Restoration Threshold or the costs of completing the Restoration is equal to
or greater than the Restoration Threshold, Lender shall make the Net Proceeds available for the Restoration, provided that each of the following conditions are met: 
 (i) no Event of Default shall have occurred and be continuing; 
 (ii) (A) in
the event the Net Proceeds are insurance proceeds, less than thirty percent (30%) of the total floor area of the Improvements at the Property has been damaged, destroyed or rendered unusable as a result of such Casualty or (B) in the event
the Net Proceeds are an Award, less than ten percent (10%) of the land constituting the Property is taken, and such land is located along the perimeter or periphery of the Property, and no portion of the Improvements is the subject of the
Condemnation; 
 (iii) Leases requiring payment of annual rent equal to seventy-five percent (75%) of the gross rental
revenue received by Borrower during the twelve (12) month period immediately preceding the Casualty or Condemnation and all Major Leases shall remain in full force and effect during and after the completion of the Restoration without abatement
of rent beyond the time required for Restoration, notwithstanding the occurrence of such Casualty or Condemnation; 
  

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 (iv) Borrower shall commence the Restoration as soon as reasonably practicable (but in no
event later than sixty (60) days after such Casualty or Condemnation, whichever the case may be, occurs) and shall diligently pursue the same to satisfactory completion; 
 (v) Lender shall be reasonably satisfied that any operating deficits and all payments of principal and interest under the Note will be paid
during the period required for Restoration from (A) the Net Proceeds, (B) business income insurance or (C) other funds of Borrower; 
 (vi) Lender shall be satisfied that the Restoration will be completed on or before the earliest to occur of (A) the date three (3) months prior to the Maturity Date, (B) the earliest date
required for such completion under the terms of any Major Lease, (C) such time as may be required under applicable Legal Requirements in order to repair and restore the Property to the condition it was in immediately prior to such Casualty or
to as nearly as possible the condition it was in immediately prior to such Condemnation, as applicable or (D) the expiration of the insurance coverage referred to in Section 5.1.1(a)(iii); 
 (vii) the Property and the use thereof after the Restoration will be in compliance in all material respects with and permitted under all
applicable Legal Requirements; 
 (viii) the Restoration shall be done and completed by Borrower in an expeditious and diligent
fashion and in compliance with all applicable Legal Requirements; and 
 (ix) such Casualty or Condemnation, as applicable, does
not result in the loss of access to the Property or the related Improvements. 
 (b) In the event of a Casualty or Condemnation
where the loss exceeds the Restoration Threshold, the Net Proceeds shall be paid directly to Lender and held by Lender in an interest-bearing account and, until disbursed in accordance with the provisions of this Section 5.3.2, shall constitute
additional security for the Debt. The Net Proceeds shall be disbursed by Lender to, or as directed by, Borrower from time to time during the course of the Restoration, upon receipt of evidence reasonably satisfactory to Lender that (A) all
requirements set forth in Section 5.3.2(a) have been satisfied, (B) all materials installed and work and labor performed (except to the extent that they are to be paid for out of the requested disbursement) in connection with the
Restoration have been paid for in full, and (C) there exist no notices of pendency, stop orders, mechanic’s or materialman’s liens or notices of intention to file same, or any other liens or encumbrances of any nature whatsoever on
the Property arising out of the Restoration which have not either been fully bonded to the satisfaction of Lender and discharged of record or in the alternative fully insured to the satisfaction of Lender by the title company issuing the Title
Insurance Policy. 
  

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 (c) All plans and specifications required in connection with the Restoration shall be
subject to prior reasonable approval of Lender and an independent architect selected by Lender (the “Casualty Consultant”). The plans and specifications shall require that the Restoration be completed in a first-class workmanlike
manner at least equivalent to the quality and character of the original work in the Improvements (provided, however, that in the case of a partial Condemnation, the Restoration shall be done to the extent reasonable practicable after
taking into account the consequences of such partial Condemnation), so that upon completion thereof, the Property shall be at least equal in value and general utility to the Property prior to the damage or destruction; it being understood, however,
that Borrower shall not be obligated to restore the Property to the precise condition of the Property prior to such Casualty provided the Property is restored, to the extent practicable, to be of at least equal value and of substantially the same
character as prior to the Casualty. Borrower shall restore all Improvements such that when they are fully restored and/or repaired, such Improvements and their contemplated use fully comply with all applicable material Legal Requirements. The
identity of the contractors, subcontractors and materialmen engaged in the Restoration, the cost of which is greater than $20,000.00, as well as the contracts under which they have been engaged, shall be subject to the reasonable approval of Lender
and the Casualty Consultant. All out of pocket costs and expenses incurred by Lender in connection with recovering, holding and advancing the Net Proceeds for the Restoration including, without limitation, reasonable attorneys’ fees and
disbursements and the Casualty Consultant’s fees and disbursements, shall be paid by Borrower. 
 (d) In no event shall
Lender be obligated to make disbursements of the Net Proceeds in excess of an amount equal to the costs actually incurred from time to time for work in place as part of the Restoration, as certified by the Casualty Consultant, less the Casualty
Retainage. The term “Casualty Retainage” shall mean, as to each contractor, subcontractor or materialman engaged in the Restoration, an amount equal to five percent (5%) (or such greater amount as provided in the contracts with
the contractor, subcontractor or materialman) of the costs actually incurred for work in place as part of the Restoration, as certified by the Casualty Consultant, until the Restoration has been completed. The Casualty Retainage shall in no event,
and notwithstanding anything to the contrary set forth above in this Section 5.3.2(d), be less than the amount actually held back by Borrower from contractors, subcontractors and materialmen engaged in the Restoration. The Casualty Retainage
shall not be released until the Casualty Consultant certifies to Lender that the Restoration has been completed in accordance with the provisions of this Section 5.3.2(d) and that all approvals necessary for the re-occupancy and use of the
Property have been obtained from all appropriate Governmental Authorities, and Lender receives evidence reasonably satisfactory to Lender that the costs of the Restoration have been paid in full or will be paid in full out of the Casualty Retainage;
provided, however, that Lender will release the portion of the Casualty Retainage being held with respect to any contractor, subcontractor or materialman engaged in the Restoration as of the date upon which the Casualty Consultant certifies to
Lender that the contractor, subcontractor or materialman has satisfactorily completed all work and has supplied all materials in accordance with the provisions of the contractor’s, subcontractor’s or materialman’s contract, the
contractor, subcontractor or materialman delivers the lien waivers and evidence of payment in full of all sums due to the contractor, subcontractor or materialman as may be reasonably requested by Lender or by the title company issuing the Title
Insurance Policy, and Lender receives an endorsement to the Title Insurance Policy insuring the continued priority of the lien of the Mortgage and evidence of payment of any premium payable for such endorsement. If required by Lender, the release of
any such portion of the Casualty Retainage shall be approved by the surety company, if any, which has issued a payment or performance bond with respect to the contractor, subcontractor or materialman. 
  

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 (e) Lender shall not be obligated to make disbursements of the Net Proceeds more frequently
than once every calendar month. 
 (f) If at any time the Net Proceeds or the undisbursed balance thereof shall not, in the good
faith opinion of Lender in consultation with the Casualty Consultant, be sufficient to pay in full the balance of the costs which are estimated by the Casualty Consultant to be incurred in connection with the completion of the Restoration, Borrower
shall deposit the deficiency (the “Net Proceeds Deficiency”) with Lender before any further disbursement of the Net Proceeds shall be made. The Net Proceeds Deficiency deposited with Lender shall be held by Lender and shall be
disbursed for costs actually incurred in connection with the Restoration on the same conditions applicable to the disbursement of the Net Proceeds, and until so disbursed pursuant to this Section 5.3.2 shall constitute additional security for
the Debt. 
 (g) The excess, if any, of the Net Proceeds and the remaining balance, if any, of the Net Proceeds Deficiency
deposited with Lender after the Casualty Consultant certifies to Lender that the Restoration has been completed in accordance with the provisions of this Section 5.3.2, and the receipt by Lender of evidence reasonably satisfactory to Lender
that all costs incurred in connection with the Restoration have been paid in full, shall be remitted by Lender to Borrower, provided no Event of Default shall have occurred and shall be continuing under any of the Loan Documents; provided,
however, the amount of such excess returned to Borrower in the case of a Condemnation shall not exceed the amount of Net Proceeds Deficiency deposited by Borrower with the balance being applied to the Debt in the manner provided for in
subsection 5.3.2(h). 
 (h) All Net Proceeds not required (i) to be made available for the Restoration or (ii) to be
returned to Borrower as excess Net Proceeds pursuant to Section 5.3.2(g) may be retained and applied by Lender toward the payment of the Components, whether or not then due and payable, in such order, priority and proportions as Lender in its
sole discretion shall deem proper, or, at the discretion of Lender, the same may be paid, either in whole or in part, to Borrower for such purposes as Lender shall designate. 
 Section 5.4 Net Proceeds. Notwithstanding anything to the contrary contained herein, if Lender is obligated under this
Agreement to disburse the Net Proceeds to Borrower, and if Lender fails to do so, then any obligation of Borrower to restore or repair the Property under the Loan Documents shall not apply. 
 VI. RESERVE FUNDS 
 Section 6.1 Intentionally Deleted. 
 Section 6.2 Tax and
Insurance Funds. 
 6.2.1 Deposits of Tax and Insurance Funds. On the Closing Date, Borrower shall deposit with
Agent the amount of One Million Six Hundred Twelve Thousand Seven Hundred Twenty Seven and 04/100 Dollars ($1,612,727.04) and, pursuant to the Cash Management Agreement, there shall be deposited on each Monthly Payment Date an amount equal to
one-twelfth of (i) the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate sufficient funds to pay all such Taxes at least

  

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ten (10) days prior to their respective due dates and (ii) the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the Policies upon the
expiration thereof in order to accumulate sufficient funds to pay all such Insurance Premiums at least five (5) Business Days prior to the expiration of the Policies. Amounts deposited pursuant to this Section 6.2.1 are referred to herein
as the “Tax and Insurance Funds.” If at any time Lender reasonably determines that the Tax and Insurance Funds will not be sufficient to pay the Taxes and/or Insurance Premiums, Lender shall notify Borrower of such determination and
the monthly deposits for Taxes and/or Insurance Premiums, as applicable, shall be increased by the amount that Lender estimates is sufficient to make up the deficiency at least ten (10) days prior to the respective due dates for the Taxes and
at least five (5) Business Days prior to the expiration of the Policies; provided that if Borrower receives notice of any deficiency after the date that is ten (10) days prior to the date that Taxes are due, Borrower will deposit such
amount within one (1) Business Day after its receipt of such notice. 
 6.2.2 Release of Tax and Insurance
Funds. Lender shall apply the Tax and Insurance Funds to payments of Taxes and Insurance Premiums. In making any payment relating to Taxes and Insurance Premiums, Lender shall do so according to any bill, statement or estimate
procured from the appropriate public office (with respect to Taxes) without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof. If the
amount of the Tax and Insurance Funds shall exceed the amounts due for Taxes and Insurance Premiums, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future payments to be made to the Tax and
Insurance Funds. Any Tax and Insurance Funds remaining after the Debt has been paid in full shall be returned to Borrower. Notwithstanding anything to the contrary contained herein and provided no Event of Default then exists, Lender shall request
Agent to issue a check for Taxes (made payable to the appropriate public office in the amount of the Taxes then due but not more than has been reserved hereunder for Taxes) and deliver such check to Borrower so that Borrower may directly pay the
Taxes to the appropriate public office on or prior to February 28th of each year. Notwithstanding anything to the contrary contained herein and provided no Event of Default then exists, and upon Lender’s receipt of evidence that the
Policies for the insurance required under this Agreement has been bound, Lender shall request Agent to issue a check for Insurance Premiums (made payable to the insurance company or Borrower’s insurance broker in the amount of the Insurance
Premiums but not more than has been reserved hereunder for Insurance Premiums) and deliver such check to Borrower promptly after Borrower’s request therefore so that Borrower may directly pay the Insurance Premiums to the insurance company.

 Section 6.3 Intentionally Deleted. 
 Section 6.4 Capital Expenditure/Leasing Funds. 
 6.4.1 Deposits
of Capital Expenditure/Leasing Funds. On the Closing Date, Borrower shall deposit with Agent the amount of One Million Three Hundred Eighty Eight Thousand One Hundred Thirty Two and 55/100 Dollars ($1,388,132.55), and pursuant to the
Cash Management Agreement, there shall be deposited on each Monthly Payment Date an amount equal to the Capital Expenditure/Leasing Funds Amount for annual Capital Expenditures approved by Lender, which approval shall not be unreasonably withheld or
delayed, and for tenant improvements and leasing commissions that may be incurred following the date hereof Amounts deposited pursuant to this Section 6.4.1 are referred to herein as the “Capital Expenditure/Leasing Funds.”

  

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 6.4.2 Release of Capital Expenditure/Leasing Funds. (a) Lender
shall direct Agent to disburse Capital Expenditure/Leasing Funds only for Capital Expenditures, tenant improvements and leasing commissions. 
 (b) With respect to Capital Expenditure/Leasing Funds to be utilized for Capital Expenditures (“Capital Expenditure Funds”), Lender shall direct Agent to disburse to Borrower the Capital
Expenditure Funds upon satisfaction by Borrower of each of the following conditions: (i) Borrower shall submit a request for payment to Lender at least five (5) Business Days prior to the date on which Borrower requests such payment be
made and specifies the Capital Expenditures to be paid, (ii) on the date such request is received by Lender and on the date such payment is to be made, no Event of Default shall exist and remain uncured, (iii) Lender shall have received an
Officers Certificate from Borrower (A) stating that the items to be funded by the requested disbursement are Capital Expenditures, (B) stating, that all Capital Expenditures at the Property to be funded by the requested disbursement have
been completed in a good and workmanlike manner and in accordance in all material respects with all applicable Legal Requirements, such certificate to be accompanied by a copy of any license, permit or other approval required by any Governmental
Authority in connection with the Capital Expenditures, if applicable, (C) identifying each Person that supplied materials or labor in connection with the Capital Expenditures to be funded by the requested disbursement, and (D) stating that
each such Person has been paid in full or will be paid in full upon such disbursement, such certificate to be accompanied by lien waivers or other evidence of payment reasonably satisfactory to Lender, (iv) at Lender’s option, and only if
(1) requested in writing and (2) the cost of any individual Capital Expenditure exceeds $500,000.00 and the disbursement exceeds $100,000.00, a title search for the Property indicating that the Property is free from all Liens, claims and
other encumbrances not previously approved by Lender, and (v) at Lender’s option, if the cost of any individual Capital Expenditure exceeds $500,000.00 and the disbursement exceeds $100,000.00, Lender shall have received a report
satisfactory to Lender in its reasonable discretion from an architect or engineer reasonably approved by Lender in respect of such architect or engineer’s inspection of the required repairs, and (vi) Lender shall have received such other
evidence as Lender shall reasonably request that the Capital Expenditures at the Property to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement to Borrower. Lender shall not be
required to disburse Capital Expenditure Funds more frequently than once each calendar month, unless such requested disbursement is in an amount greater than the Minimum Disbursement Amount (or a lesser amount if the total amount of Capital
Expenditure Funds is less than the Minimum Disbursement Amount, in which case only one disbursement of the amount remaining in the account shall be made). 
 (c) With respect to Capital Expenditure/Leasing Funds to be utilized for tenant improvements and leasing commissions (“Leasing Funds”), Lender shall direct Agent to disburse to Borrower
the Leasing Funds upon satisfaction by Borrower of each of the following conditions: (i) Borrower shall submit a request for payment to Lender at least five (5) Business Days prior to the date on which Borrower requests such payment be
made and specifies the tenant improvement costs and leasing commissions to be paid, (ii) on the date such request is received by Lender and on the date such payment is to be made, no Event of Default shall exist

  

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and remain uncured, (iii) as to a Major Lease, Lender shall have reviewed and approved the Major Lease (or such Major Lease shall have been deemed approved hereunder) in respect of which
Borrower is obligated to pay or reimburse certain tenant improvement costs and leasing commissions, (iv) with respect to disbursements for tenant improvements, Lender shall have received an Officer’s Certificate from Borrower
(A) stating that all tenant improvements at the Property to be funded by the requested disbursement have been completed in good and workmanlike manner and in accordance in all material respects with all applicable federal, state and local laws,
rules and regulations, such certificate to be accompanied by a copy of any license, permit or other approval by any Governmental Authority required in connection with the tenant improvements, if applicable, (B) identifying each Person that
supplied materials or labor in connection with the tenant improvements to be funded by the requested disbursement, and (C) stating that each such Person has been paid in full or will be paid in fill upon such disbursement, such certificate to
be accompanied by lien waivers or other evidence of payment reasonably satisfactory to Lender, (v) with respect to disbursements for tenant improvements, at Lender’s option and only (1) if requested in writing and (2) if the cost
of the tenant improvements exceeds $2,000,000.00 and the disbursement exceeds One Hundred Thousand and No/100 Dollars ($100,000.00), a title search for the Property indicating that the Property is free from all Liens, claims and other encumbrances
not previously approved by Lender and (vi) with respect to disbursements for tenant improvements Lender shall have received such other evidence as Lender shall reasonably request that the tenant improvements at the Property to be funded by the
requested disbursement have been with respect to disbursements for tenant improvements, completed and are paid for or will be paid upon such disbursement to Borrower. Lender shall not be required to disburse Leasing Funds more frequently than once
each calendar month, unless such requested disbursement is in an amount greater than the Minimum Disbursement Amount (or a lesser amount if the total amount of Leasing Funds is less than the Minimum Disbursement Amount, in which case only one
disbursement of the amount remaining in the account shall be made). 
 (d) Nothing in this Section 6.4.2 shall
(i) make Lender responsible for making or completing the Capital Expenditures Work; (ii) require Lender to expend funds in addition to the Capital Expenditure Funds to complete any Capital Expenditures Work; (iii) obligate Lender to
proceed with the Capital Expenditures Work; or (iv) obligate Lender to demand from Borrower additional sums to complete any Capital Expenditures Work. 
 (e) Upon two (2) Business Days’ notice, Borrower shall permit Lender and Lender’s agents and representatives (including, without limitation, Lender’s engineer, architect, or inspector)
to enter onto the Property during normal business hours (subject to the rights of Tenants under their Leases) to inspect the progress of any Capital Expenditures Work and all materials being used in connection therewith and to examine all plans and
shop drawings relating to such Capital Expenditures Work. Borrower shall use commercially reasonable efforts to cause all contractors and subcontractors to cooperate with Lender or Lender’s representatives or such other Persons described above
in connection with inspections described in this Section 6.4.2(d). 
 (f) If (i) the Capital Expenditure Work exceeds
$500,000.00 or (ii) the Tenant Improvement Cost exceeds $2,000,000.00 and the disbursement will exceed $100,000.00. Lender may require an inspection of the Property at Borrower’s expense prior to making a disbursement of Capital
Expenditure Funds in order to verify completion of the Capital

  

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Expenditures Work for which reimbursement is sought. Lender may require that such inspection be conducted by an appropriate independent qualified professional selected by Lender and may require a
certificate of completion by an independent qualified professional architect acceptable to Lender prior to the disbursement of Capital Expenditure Funds. Borrower shall pay the expense of the inspection as required hereunder, whether such inspection
is conducted by Lender or by an independent qualified professional architect. 
 (g) In addition to any insurance required under
the Loan Documents, Borrower shall provide or cause to be provided workmen’s compensation insurance, builder’s risk, and public liability insurance and other insurance to the extent required under applicable law in connection with Capital
Expenditures Work. All such policies shall be in form and amount reasonably satisfactory to Lender. 
 (h) Lender shall use good
faith efforts to cause the disbursement of the applicable amounts of the Capital Expenditure Funds and the Leasing Funds within five (5) Business Days after receipt of Borrower’s request and all required documentation (but Lender shall
have no liability for failure to do so). 
 Section 6.5 Debt Service Reserve Funds. 
 6.5.1 Deposits of Debt Service Reserve Funds. On the Closing Date, Borrower shall deposit with Agent the amount of Five Hundred
Thousand and No/100 Dollars ($500,000.00) and, pursuant to the Cash Management Agreement, there shall be deposited on each Monthly Payment Date the Debt Service Reserve Target Deposit whenever the amount on deposit in the Debt Service Reserve
Account is less than Five Hundred Thousand and No/100 Dollars ($500,000.00) (the “Debt Service Reserve Target Amount”). The “Debt Service Reserve Target Deposit” shall be an amount equal to the lesser of
(i) the difference between the amount on deposit in the Debt Service Reserve on such Monthly Payment Date (before any deposit on such Monthly Payment Date pursuant to Section 3.3(h) of the Cash Management Agreement) and the Debt Service
Reserve Target Amount and (ii) the amount available to be deposited into the Debt Service Reserve Account on such Monthly Payment Date after the disbursements pursuant to Sections 3.3(a) - (g) of the Cash Management Agreement. Amounts deposited
pursuant to this Section 6.5.1 are referred to herein as the “Debt Service Reserve Funds.” 
 6.5.2 Release
of Debt Service Reserve Funds. Debt Service Reserve Funds shall be released as set forth in the Cash Management Agreement. 
 Section 6.6 Lease Termination Rollover Funds. 
 6.6.1 Deposits of Lease Termination Rollover
Funds. In the event that Borrower receives a fee, payment or other compensation from any Tenant relating to or in exchange for the termination of such Tenant’s Lease (a “Lease Termination Fee”) Borrower shall
immediately deposit or cause to be deposited such Lease Termination Fee with Lender, to be utilized for tenant improvements and leasing commissions that may be incurred with respect to the space relating to such Lease Termination Fee (a
“Termination Space”) and at Borrower’s election, in the event that there is a Rent Deficiency (as hereinafter defined) for the Termination Space from and after the date that the Lease for the Termination Space was terminated,
in replacement of Rent. Amounts deposited pursuant to this Section 6.6.1 are referred to herein as the “Lease Termination Rollover Funds.” 
  

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 6.6.2 Release of Lease Termination Rollover Funds. (a) Lender
shall direct Agent to disburse to Borrower the Lease Termination Rollover Funds upon satisfaction by Borrower of each of the following conditions: (i) Borrower shall submit a request for payment to Lender at least five (5) Business Days
prior to the date on which Borrower requests such payment be made and (A) specifies the tenant improvement costs and leasing commissions to be paid for the Termination Space or (B) specifies the amount by which the rent expected to be
obtained by Borrower for the Termination Space during the next succeeding calendar month pursuant to the Lease or Leases for such Termination Space (a “Replacement Lease”) is less than the amount of monthly rent received from the
previous Tenant in the Termination Space pursuant to its Lease prior to such termination (the “Rent Deficiency”), (ii) on the date such request is received by Lender and on the date such payment is to be made, no Event of
Default shall exist and remain uncured, (iii) if disbursements are to be used for tenant improvements, Lender shall have reviewed and, if the Replacement Lease shall constitute a Major Lease or if such Lease shall provide for tenant
improvements in excess of $50.00 per rentable square foot, approved the Replacement Lease in respect of which Borrower is obligated to pay or reimburse certain tenant improvement costs and leasing commissions, (iv) with respect to any Lease
Termination Rollover Funds to be released by Lender for tenant improvements or leasing commissions pursuant to a Replacement Lease, Lender shall have received an Officer’s Certificate (A) stating that a 11 tenant improvements at the
Property to be funded by the requested disbursement have been completed in good and workmanlike manner and in accordance in all material respects with all applicable federal, state and local laws, rules and regulations, such certificate to be
accompanied by a copy of any license, permit or other approval by any Governmental Authority required in connection with the tenant improvements, if applicable, (B) identifying each Person that supplied materials or labor in connection with the
tenant improvements to he funded by the requested disbursement, and (C) stating that each such Person has been paid in full or will be paid in full upon such disbursement, such certificate to be accompanied by lien waivers or other evidence of
payment reasonably satisfactory to Lender, (v) with respect to any Lease Termination Rollover Funds to be released by Lender for tenant improvements or leasing commissions pursuant to a Replacement Lease, at Lender’s option and only
(1) if requested in writing and (2) if the cost of the tenant improvements exceeds $2,000,000.00 and the disbursement exceeds One Hundred Thousand and No/100 Dollars ($100,000.00), a title search for the Property indicating that the
Property is free from all Liens, claims and other encumbrances not previously approved by Lender and (vi) with respect to any Lease Termination Rollover Funds to be released by Lender for tenant improvements or leasing commissions pursuant to a
Replacement Lease, Lender shall have received such other evidence as Lender shall reasonably request that the tenant improvements at the Property to be funded by the requested disbursement have been completed and are paid for or will be paid upon
such disbursement to Borrower. Lender shall not be required to disburse Lease Termination Rollover Funds more frequently than once each calendar month, unless such requested disbursement is in an amount greater than the Minimum Disbursement Amount
(or a lesser amount if the total amount of Lease Termination Rollover Funds is less than the Minimum Disbursement Amount, in which case only one disbursement of the amount remaining in the account shall be made). All Rent Deficiency disbursements
made by Lender shall be deposited into the Deposit Account as if such sums were received by Borrower as Rent during the calendar-month after such request is made by Borrower. 
  

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 (b) Notwithstanding the foregoing, upon receipt by Lender of evidence that, with respect to
any new Replacement Lease with a term of at least five (5) years, all tenant improvements required to be completed by Borrower pursuant to the Replacement Lease, if any, have been completed and all leasing commissions required to be paid by
Borrower with respect to the Replacement Lease, if any, have been paid, and provided no Event of Default then exists, Lender shall direct Agent to disburse to Borrower the Lease Termination Rollover Funds on deposit with respect to such Termination
Space provided that the rent to be obtained by Borrower for such Termination Space during the next succeeding sixty (60) calendar months pursuant to the respective Replacement Lease is equal to or greater than the sum of the monthly rent last
received from the previous Tenant in such Termination Space pursuant to its Lease multiplied by sixty (60). 
 (c) Lender shall
use good faith efforts to cause the disbursement of the applicable amounts of the Lease Termination Rollover Funds within five (5) Business Days after receipt of Borrower’s request and all required documentation (but Lender shall have no
liability for failure to do so). 
 Section 6.7 Operating Expense Funds. 
 6.7.1 Deposits of Operating Expense Reserve Funds. There shall be deposited on each Monthly Payment Date an amount equal to
one-twelfth (1/12) of the amount of operating expenses and capital expenditures necessary for operation of the Property as set forth in the Approved Annual Budget (the “Monthly Operating Expense Amount”) for the calendar month
following the Monthly Payment Date on which such deposit was made. Amounts deposited pursuant to this Section 6.7.1 are referred to herein as the “Operating Expense Funds.” 
 6.7.2 Release of Operating Expense Funds. Lender shall disburse the Monthly Operating Expense Amount and the amount of the
Unbudgeted Expense to Borrower in accordance with the provisions of the Cash Management Agreement, provided that, on the date such payment is to be made, no Event of Default shall exist and remain uncured. Notwithstanding anything to the
contrary in the foregoing, during the continuance of an Event of Default Lender shall have the option (but not the obligation) in lieu of disbursing Operating Expense Funds to Borrower, to pay such Operating Expense Funds directly to the related
obligees or to pay such Operating Expense Funds to Borrower and the related obligees jointly or to apply the Operating Expense Funds to the Debt in any order Lender desires. If Lender fails to fund any Operating Expense Funds requested by Borrower,
no waste shall be deemed created thereby. 
 Section 6.8 Application of Reserve Funds. 
 Notwithstanding anything contained herein to the contrary, upon the occurrence and during the continuance of an Event of Default, Lender, at
its option, may withdraw the Reserve Funds and apply the Reserve Funds to the items for which the Reserve Funds were established or to payment of the Debt in such order, proportion and priority as Lender may determine in its sole discretion.
Lender’s right to withdraw and apply the Reserve Funds shall be in addition to all other rights and remedies provided to Lender under the Loan Documents. 
  

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 Section 6.9 Security Interest in Reserve Funds. 
 6.9.1 Grant of Security Interest. Borrower shall be the owner of the Reserve Funds. Borrower hereby pledges, assigns and grants
a security interest to Lender, as security for payment of the Debt and the performance of all other terms, conditions and covenants of the Loan Documents on Borrower’s part to be paid and performed, in all of Borrower’s right, title and
interest in and to the Reserve Funds. The Reserve Funds shall be under the sole dominion and control of Lender. 
 6.9.2
Income Taxes. Borrower shall report on its federal, state and local income tax returns all interest or income accrued on the Reserve Funds. 
 6.9.3 Prohibition Against Further Encumbrance. Borrower shall not, without the prior consent of Lender, further pledge, assign or grant any security interest in the Reserve Funds or permit
any lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements, except those naming Lender as the secured party, to be filed with respect thereto. 
 Section 6.10 Letters of Credit. 
 6.10.1 Delivery of Letters of Credit. (a) In lieu of making the payments to any of the Reserve Funds (other than the Operating Expense Funds), Borrower may deliver to Lender a Letter of
Credit in accordance with the provisions of this Section 6.10. Additionally, Borrower may deliver to Lender a Letter of Credit in accordance with the provisions of this Section 6.10 in lieu of deposits previously made to the Reserve Funds.
The aggregate amount of any Letter of Credit and cash on deposit with respect to the Capital Expenditure/Leasing Funds and the Lease Termination Rollover Funds shall at all times be at least equal to the aggregate amount which Borrower is required
to have on deposit in such Reserve Fund pursuant to this Agreement. The aggregate amount of any Letter of Credit and cash on deposit with respect to the Tax and Insurance Funds shall at all times be at least equal to the aggregate which Borrower
would be required to deposit in such Reserve Fund over the next twelve (12) month period. The aggregate amount of any Letter of Credit and cash on deposit with respect to Debt Service Reserve Funds shall at all times be at least equal to the
aggregate amount which Borrower is required to have on deposit in such Reserve Fund pursuant to this Agreement. In the event that a Letter of Credit is delivered in lieu of any portion of the Tax and Insurance Funds, Borrower shall be responsible
for the payment of Taxes or Insurance Premiums, as applicable, and Lender shall not be responsible therefore. Provided no Event of Default has occurred and is continuing, and the amount of the Letter of Credit is greater than that required by
Section 6.10.1, then Borrower may be permitted to amend the applicable Letter of Credit to reduce the amount of the Letter of Credit to the amount required hereunder or replace with cash. In the event Borrower is entitled to a disbursement from
any of the Reserve Funds which are represented by a Letter of Credit and Borrower desires a reduction of any such Letter of Credit instead, Borrower may amend the applicable Letter of Credit to reduce the amount of the Letter of Credit in the amount
of the disbursement and Lender will cooperate in obtaining such amendment. 
  

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 (b) Borrower shall give Lender no less than twenty (20) days notice of Borrower’s
election to deliver a Letter of Credit and Borrower shall pay to Lender all of Lender’s reasonable actual out-of-pocket costs and expenses in connection therewith. Borrower shall not be entitled to draw from any such Letter of Credit. Upon
twenty (20) days notice to Lender, Borrower may replace a Letter of Credit with a cash deposit to the applicable Reserve Fund if a Letter of Credit has been outstanding for more than six (6) months. Prior to the return of a Letter of
Credit, Borrower shall deposit an amount equal to the amount that would have accumulated in the applicable Reserve Fund and not been disbursed in accordance with this Agreement if such Letter of Credit had not been delivered. 
 (c) Borrower shall provide Lender with notice of any increases in the annual payments for Taxes and Insurance Premiums twenty (20) days
prior to the effective date of any such increase and any applicable Letter of Credit shall be increased by such increased amount at least ten (10) days prior to the effective date of such increase. 
 Section 6.11 Provisions Regarding Letters of Credit. 
 6.11.1 Security for Debt. Each Letter of Credit delivered under this Agreement shall be additional security for the payment of
the Debt. Upon the occurrence and continuance of an Event of Default, Lender shall have the right, at its option, to draw on any Letter of Credit and to apply all or any part thereof to the payment of the items for which such Letter of Credit was
established or to apply each such Letter of Credit to payment of the Debt in such order, proportion or priority as Lender may determine. Any such application to the Debt shall be subject to the Yield Maintenance Premium. On the Maturity Date, any
such Letter of Credit may be applied to reduce the Debt unless the Debt has been paid in full. 
 6.11.2 Additional Rights
of Lender. In addition to any other right Lender may have to draw upon a Letter of Credit pursuant to the terms and conditions of this Agreement, Lender shall have the additional rights to draw in full any Letter of Credit: (a) with
respect to any evergreen Letter of Credit, if Lender has received a notice from the issuing bank that the Letter of Credit will not be renewed and a substitute Letter of Credit is not provided at least fifteen (15) days prior to the date on
which the outstanding Letter of Credit is scheduled to expire; (b) with respect to any Letter of Credit with a stated expiration date, if Lender has not received a notice from the issuing bank that it has renewed the Letter of Credit at least
fifteen (15) days prior to the date on which such Letter of Credit is scheduled to expire and a substitute Letter of Credit is not provided at least fifteen (15) days prior to the date on which the outstanding Letter of Credit is scheduled
to expire; (c) upon receipt of notice from the issuing bank that the Letter of Credit will be terminated (except if the termination of such Letter of Credit is permitted pursuant to the terms and conditions of this Agreement or a substitute
Letter of Credit is provided at least fifteen (15) days prior to such termination); or (d) if Lender has received notice that the bank issuing the Letter of Credit shall cease to be an Eligible Institution and a substitute Letter of Credit
is not provided within fifteen (15) days of such cessation. Notwithstanding anything to the contrary contained in the above, Lender is not obligated to draw any Letter of Credit upon the happening of an event specified in (a), (b), (c) or
(d) above and shall not be liable for, any losses sustained by Borrower due to the insolvency of the bank issuing the Letter of Credit if Lender has not drawn the Letter of Credit. 
  

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 VII. PROPERTY MANAGEMENT 
 Section 7.1 The Management Agreement. 
 Borrower shall cause Manager to manage the Property in accordance with the Management Agreement. Borrower shall (i) diligently perform and observe all of the material terms, covenants and conditions
of the Management Agreement on the part of Borrower to be performed and observed and (ii) promptly notify Lender of any notice to Borrower of any default by Borrower in the performance or observance of any of the terms, covenants or conditions
of the Management Agreement on the part of Borrower to be performed and observed. If Borrower shall default in the performance or observance of any material term, covenant or condition of the Management Agreement on the part of Borrower to be
performed or observed, then, without limiting Lender’s other rights or remedies under this Agreement or the other Loan Documents, and without waiving or releasing Borrower from any of its obligations hereunder or under the Management Agreement,
Lender shall have the right, but shall be under no obligation, to. pay any sums and to perform any act as may be appropriate to cause all the material terms, covenants and conditions of the Management Agreement on the part of Borrower to be
performed or observed. 
 Section 7.2 Approval of New Manager. Borrower shall be permitted to terminate the
Management Agreement provided that Lender shall approve the replacement Manager, such approval not to unreasonably withheld, conditioned or delayed, and Borrower and such replacement Manager shall, as a condition to Lender’s approval, execute a
subordination of management agreement in the form then used by Lender and reasonably acceptable to the new Manager. 
 Section 7.3 Replacement of Manager. Lender shall have the right to require Borrower to replace the Manager with a Person which is not an Affiliate of, but is chosen by, Borrower and approved by Lender upon the occurrence of any
one or more of the following events: (i) at any time following the occurrence of an Event of Default and acceleration of the Loan, (ii) at any time following the occurrence of an “Event of Default” under the Senior Mezzanine Loan
and acceleration of the Senior Mezzanine Loan, (iii) if Manager shall be in default under the Management Agreement beyond any applicable notice and cure period or (iv) if at any time the Manager has engaged in fraud or willful misconduct.
If any replacement Manager under Section 7.2 or this Section 7.3 is an Affiliate of Borrower, Borrower shall deliver to Lender at the time of such replacement a non-consolidation opinion acceptable to Rating Agencies and reasonably
acceptable to Lender. 
 VIII. PERMITTED TRANSFERS 
 Section 8.1 Permitted Transfer of the Property. Lender shall not withhold, delay or condition its consent to the one-time
conveyance of the Property to a Permitted Transferee provided that (a) no Event of Default then exists, (b) Lender has received a Rating Agency Confirmation as to the conveyance of the Property to the Permitted Transferee,

  

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(c) Lender has received an agreement, acceptable to it in its sole discretion, pursuant to which Permitted Transferee assumes all of Borrower’s obligations under the Loan Documents upon
which Borrower shall be released from all obligations arising thereafter, (d) Lender receives a transfer fee equal to $100,000.00 only in the event of a transfer to a Person not an Affiliate of Borrower, plus reimbursement for all out of pocket
costs and expenses of Lender in connection with the transactions contemplated by this Section 8.1 and (e) Lender shall have received such documents, certificates and legal opinions as it may reasonably request. 
 Section 8.2 Permitted Transfers of Interest in Borrower. The restrictions on Transfers of ownership interests in Borrower set
forth in Article 6 of the Mortgage shall not apply to and Lender’s consent shall not be required with respect to the transfer of direct and indirect interests in the owners of the Junior B Mezzanine Borrower (i) to the Guarantor (so
long as it is controlled by James A. Thomas), James A. Thomas or Thomas Properties Group LLC (so long as it is controlled by James A. Thomas), or to any entity or entities controlled by or under common control with any of the foregoing, or to any
combination of the foregoing; (ii) to immediate family members of James A. Thomas, entities controlled by immediate family members of James A. Thomas, or trusts established for the immediate family members of the equity holders in the Junior B
Mezzanine Borrower for estate planning purposes, (iii) to employees of Thomas Properties Group LLC as part of a compensation package (provided such transfer, taken together with all previous transfers to employees, does not result in a change
of control of Borrower) or (iv) pursuant to a will or other testamentary disposition, provided that in each case (v) notice is provided to the Lender of such a transfer, (w) the transferee of such interests acknowledges in
writing that such interests remain subject to the provisions of the Senior Mezzanine Lender’s pledge and security agreement, the Junior A Mezzanine Lender’s pledge and security agreement and the Junior B Mezzanine Lender’s pledge and
security agreement, (x) the transferee delivers a non-consolidation opinion, if required by the Rating Agencies, (y) unless resulting from death or incapacitation, James A. Thomas at all times maintains direct or indirect control of
Borrower, Senior Mezzanine Borrower, Junior A Mezzanine Borrower and Junior B Mezzanine Borrower and (z) Lender receives reimbursement for all out of pocket costs and expenses of Lender in connection with the transactions contemplated by this
Section 8.2. In addition to the foregoing, the restrictions on Transfers of ownership interests set forth in Article 6 of the Mortgage shall not apply to and Lender’s consent shall not be required with respect to the pledging of the
interests pursuant to the pledge agreements which are part of the Senior Mezzanine Loan Documents, the Junior A Mezzanine Loan Documents and the Junior B Mezzanine Loan Documents. 
 IX. SALE AND SECURITIZATION OF MORTGAGE 
 Section 9.1 Sale of Mortgage and Securitization. 
 (a) Lender shall have the
right (i) to sell or otherwise transfer the Loan or any portion thereof as a whole loan, (ii) to sell participation interests in the Loan or (iii) to securitize the Loan or any portion thereof in a single asset securitization or a
pooled loan securitization. (The transaction referred to in clauses (i), (ii) and (iii) shall hereinafter be referred to collectively as “Secondary Market Transactions” and the transactions referred to in clause
(iii) shall hereinafter be referred to as a “Securitization.” Any certificates, notes or other securities issued in connection with a Securitization are hereinafter referred to as “Securities”). 
  

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 (b) If requested by Lender, at no out-of-pocket cost or additional liability to Borrower,
Borrower shall assist Lender in satisfying the market standards to which Lender customarily adheres or which may be reasonably required in the marketplace or by the Rating Agencies in connection with any Secondary Market Transactions, including,
without limitation, to: 
 (i) (A) provide updated financial and other information with respect to the Property, the
business operated at the Property, Borrower and the Manager and (B) provide updated budgets relating to the Property to the extent otherwise required by the Loan Documents; 
 (ii) if required by the Rating Agencies, provide revised opinions of counsel, which may be relied upon by Lender, the Rating Agencies and
their respective counsel, agents and representatives, as to non-consolidation, due execution and enforceability with respect to the Property, Borrower, Guarantor and the Loan Documents; 
 (iii) provide updated, as of the closing date of the Secondary Market Transaction, representations and warranties made in the Loan Documents
as are customarily provided in securitization transactions and as may be reasonably requested by the holder of the Note or the Rating Agencies and consistent with the facts covered by such representations and warranties made in the Loan Documents to
the extent they are true as of the time of the closing of the Securitization; and 
 (iv) execute amendments to the Loan
Documents reasonably requested by Lender, provided, however, that Borrower shall not be required to modify or amend any Loan Document if such modification or amendment would (A) change the interest rate, the stated maturity or the
amortization of principal as set forth herein or in the Note, (B) modify or amend any economic or any other material term of the Loan, (C) otherwise materially increase the obligations or decrease the rights of Borrower pursuant to the
Loan Documents or (D) impose any additional personal liability on any Constituent Partner (as hereinafter defined) of Borrower, Guarantor or their respective Affiliates. 
 All financial statements provided by Borrower pursuant to this Section 9.1(c) shall be prepared in accordance with GAAP, and shall meet other applicable Legal Requirements. All financial statements
relating to a Fiscal Year shall be audited by the independent accountants in accordance with generally accepted auditing standards and all other applicable Legal Requirements, shall be accompanied by the manually executed report of the independent
accountants thereon, which report shall meet the requirements and all other applicable Legal Requirements, and shall be further accompanied by a manually executed written consent of the independent accountants, in form and substance acceptable to
Lender, to the inclusion of such financial statements in any Disclosure Document and any Exchange Act Filing and to the use of the name of such independent accountants and the reference to such independent accountants as “experts” in any
Disclosure Document and Exchange Act Filing, all of which shall be provided at the same time as the related financial statements are required to be provided. All other financial statements shall be certified by the chief financial officer of
Borrower, which certification shall state that such financial statements meet the requirements set forth in the first sentence of this paragraph. 
  

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 Section 9.2 Securitization Indemnification. 
 (a) Borrower understands that information provided to Lender by Borrower and its agents, counsel and representatives may be included in
disclosure documents in connection with the Securitization, including, without limitation, an offering circular, a prospectus, prospectus supplement, private placement memorandum or other offering document (each, an “Disclosure
Document”) and may also be included in filings with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Securities and Exchange Act of 1934, as amended
(the “Exchange Act”), and may be made available to investors or prospective investors in the Securities, the Rating Agencies, and service providers relating to the Securitization. 
 (b) Borrower shall provide in connection with each of (i) a preliminary and a final private placement memorandum or (ii) a
preliminary and final prospectus or prospectus supplement, as applicable, an agreement (A) certifying that Borrower has examined such Disclosure Documents specified by Lender and that to Borrower’s actual knowledge each such Disclosure
Document, as it relates to Borrower, Borrower Affiliates, the Property and Manager does not contain any untrue statement of a material fact or omit to state a material fact in Borrower’s actual knowledge, necessary in order to make the
statements made, in the light of the circumstances under which they were made, not misleading, (B) indemnifying Lender (and for purposes of this Section 9.2, Lender hereunder shall include its officers and directors), the Affiliate of
Morgan Stanley Dean Witter & Co. (“Morgan Stanley”) that has filed the registration statement relating to the Securitization (the “Registration Statement”), each of its directors, each of its officers who
have signed the Registration Statement and each Person that controls the Affiliate within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Morgan Stanley Group”), and
Morgan Stanley, and any other placement agent or underwriter with respect to the Securitization, each of their respective directors and each Person who controls Morgan Stanley or any other placement agent or underwriter within the meaning of
Section 15 of the Securities Act and Section 20 of the Exchange Act (collectively, the “Underwriter Group”) for any losses, claims, compensatory damages (but not consequential damages) or liabilities (collectively, the
“Liabilities”) to which Lender, the Morgan Stanley Group or the Underwriter Group may become subject insofar as the Liabilities arise out of or are based upon any untrue statement or alleged untrue statement of any material fact
contained in such sections known by Borrower to be untrue or arise out of or are based upon the omission or alleged omission to state therein a material fact in Borrower’s actual knowledge, required to be stated in such sections or necessary in
order to make the statements in such sections, in light of the circumstances under which they were made, not misleading and (C) agreeing to reimburse Lender, the Morgan Stanley Group and/or the Underwriter Group for any legal or other
reasonable expenses reasonably incurred by Lender, the Morgan Stanley Group and the Underwriter Group in connection with investigating or defending the Liabilities; provided, however, that Borrower will be liable in any such case under
clauses (B) or (C) above only to the extent that any such loss claim, damage or liability arises out of or is based upon any such untrue statement or omission made therein in reliance upon and in conformity with information furnished to
Lender by Borrower in connection with the preparation of the Disclosure Document or in connection with the underwriting or closing of the Loan, including, without limitation, financial statements of Borrower, operating statements and rent rolls with
respect to the Property. Notwithstanding anything to the contrary contained herein, if there is a 
  

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lawsuit based upon an alleged untrue statement or an alleged omission and such allegations are proved to be untrue pursuant to a final court order which is unappealable, Borrower shall not be
responsible for the legal fees incurred by Lender, the Morgan Stanley Group and the Underwriter Group. This indemnity agreement will be in addition to any liability which Borrower may otherwise have. 
 (c) In connection with Exchange Act Filings, Borrower shall (i) indemnify Lender, the Morgan Stanley Group and the Underwriter Group
for Liabilities to which Lender, the Morgan Stanley Group or the Underwriter Group may become subject insofar as the Liabilities arise out of or are based upon the omission or alleged omission to state in the Disclosure Document a material fact in
Borrower’s actual knowledge required to be stated in the Disclosure Document in order to make the statements in the Disclosure Document, in light of the circumstances under which they were made, not misleading and (ii) reimburse Lender,
the Morgan Stanley Group or the Underwriter Group for any legal or other expenses reasonably incurred by Lender, the Morgan Stanley Group or the Underwriter Group in connection with defending or investigating the Liabilities. Notwithstanding
anything to the contrary contained herein, if there is a lawsuit based upon an alleged untrue statement or an alleged omission and such allegations are proved to be untrue pursuant to a final court order which is unappealable, Borrower shall not be
responsible for the legal fees incurred by Lender, the Morgan Stanley Group and the Underwriter Group. 
 (d) Promptly after
receipt by an indemnified party under this Section 9.2 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to he made against the indemnifying party under this Section 9.2, notify the
indemnifying party in writing of the commencement thereof, but the omission to so notify the indemnifying party will not relieve the indemnifying party from any liability which the indemnifying party may have to any indemnified party hereunder
except to the extent that failure to notify causes prejudice to the indemnifying party. In the event that any action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party
will be entitled, jointly with any other indemnifying party, to participate therein and, to the extent that it (or they) may elect by written notice delivered, to the indemnified party promptly after receiving the aforesaid notice from such
indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party. After notice from the indemnifying party to such indemnified party under this Section 9.2, such indemnified party shall pay for any
legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there are any legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party at the cost of the
indemnifying party. The indemnifying party shall not be liable for the expenses of more than one separate counsel unless an indemnified party shall have reasonably concluded that there may be legal defenses available to it that are different from or
additional to those available to another indemnified party. 
  

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 (e) In order to provide for just and equitable contribution in circumstances in which the
indemnity agreement provided for in Section 9.2(b) or (c) is for any reason held to be unenforceable as to an indemnified party in respect of any Liabilities (or action in respect thereof) referred to therein which would otherwise be
indemnifiable under Section 9.2(b) or (c), the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such Liabilities (or action in respect thereof); provided, however, that no
Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. In determining the amount of
contribution to which the respective parties are entitled, the following factors shall be considered: (i) Morgan Stanley’s and Borrower’s relative knowledge and access to information concerning the matter with respect to which the
claim was asserted; (ii) the opportunity to correct and prevent any statement or omission; and (iii) any other equitable considerations appropriate in the circumstances. 
 (f) Subject to the provisions of Section 11.22 hereof, the liabilities and obligations of both Borrower and Lender under this
Section 9.2 shall survive the termination of this Agreement and the satisfaction and discharge of the Debt. 
 X.
DEFAULTS 
 Section 10.1 Event of Default. 
 (a) Each of the following events, after the applicable notice and expiration of the applicable cure period set forth in this subsection (a),
if any, shall constitute an event of default hereunder (an “Event of Default”): 
 (i) if (A) any monthly
installment of principal and/or interest due under the Note or the payment due on the Maturity Date is not paid when due, provided that it shall not be an Event of Default if (1) a monthly installment of principal and/or interest is not paid
when due if sufficient funds are in the Debt Service Account to make such payment on the Monthly Payment Date in question and Borrower has not attempted to block the payment of such sums or (2) a monthly installment of principal and/or interest
is not paid when due up to two (2) times during any twelve (12) month period as long as such payment is received by Lender within one (l) Business Day following notice to Borrower that the same is due and payable, or (B) any
other portion of the Debt is not paid when due and such non-payment continues for five (5) days following notice to Borrower that the same is due and payable; 
 (ii) if any of the Taxes are not paid when due (except to the extent sums sufficient to pay such Taxes have been deposited with Lender in accordance with the terms of this Agreement in an amount
sufficient to pay the same and Borrower has not attempted to impede Agent’s attempts to pay same) or any of the Other Charges are not paid within ten (10) Business Days of the date when the same are due; 
 (iii) if the Policies are not kept in full force and effect (except to the extent sums sufficient to pay the Insurance Premiums have been
deposited with Lender in accordance with the terms of this Agreement in an amount sufficient to pay the same and Borrower has not attempted to impede Agent’s attempts to pay same); 
  

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 (iv) if Borrower breaches or permits or suffers a breach of Article 6 of the Mortgage and
such breach is not cured within ten (10) Business Days of notice thereof; 
 (v) if any representation or warranty made by
Borrower herein or in any other Loan Document, or in any report, certificate, financial statement or other instrument, agreement or document furnished to Lender shall have been false or misleading in any material respect as of the date the
representation or warranty was made and such default is not cured within ten (10) Business Days of notice thereof; 
 (vi)
if Borrower, any SPC Party or Guarantor shall make an assignment for the benefit of creditors; 
 (vii) if a receiver,
liquidator or trustee shall be appointed for Borrower, any SPC Party or Guarantor or if Borrower, any SPC Party or Guarantor shall be adjudicated a bankrupt or insolvent, or if any petition for bankruptcy, reorganization or arrangement pursuant to
federal bankruptcy law, or any similar federal or state law, shall be filed by or against, consented to, or acquiesced in by, Borrower, any SPC Party or Guarantor, or if any proceeding for the dissolution or liquidation of Borrower, any SPC Party or
Guarantor shall be instituted; provided, however, if such appointment, adjudication, petition or proceeding was involuntary and not consented to by Borrower, and SPC Party or Guarantor, upon the same not being discharged, stayed or
dismissed within ninety (90) days; 
 (viii) Intentionally Deleted; 
 (ix) if any of the assumptions contained in the Insolvency Opinion, or in any other non-consolidation opinion delivered to Lender in
connection with the Loan, or in any other non-consolidation delivered subsequent to the closing of the Loan, is or shall become untrue in any material respect; 
 (x) if Borrower breaches any representation, warranty or covenant contained in Sections 3.1.24, 3.1.40 or 3.1.41 hereof; 
 (xi) if Borrower fails to comply with the covenants as to Prescribed Laws set forth in Section 4.1.1 and continues to fail to comply after ten (10) Business Days of notice thereof;

 (xii) if Borrower breaches any of the negative covenants contained in Section 4.2.12 hereof or acts or neglects
to act in such a manner as to be considered a default under the Operating Agreements and continues such breach or act after ten (10) Business Days of notice thereof; 
 (xiii) if Guarantor breaches in any material respect any covenant, warranty or representation contained in the Guaranty and continues such breach after ten (10) Business Days of notice thereof or
breaches the Guarantor Operational Covenant; 
 (xiv) if Borrower shall continue to be in Default under any of the other terms,
covenants or conditions of this Agreement not specified in subsections (i) to (xiii) above, for ten (10) days after notice to Borrower from Lender, in the case of any Default which can be cured by

  

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the payment of a sum of money, or for thirty (30) days after notice from Lender in the case of any other Default; provided, however, that if such non-monetary Default is
susceptible of cure but cannot reasonably be cured within such 30-day period and provided further that Borrower shall have commenced to cure such Default within such 30-day period and thereafter diligently and expeditiously proceeds to cure the
same, such 30-day period shall be extended for such time as is reasonably necessary for Borrower in the exercise of due diligence to cure such Default, such additional period not to exceed ninety (90) days plus time permitted for Excusable
Delays; or 
 (xv) if there shall be default under any of the other Loan Documents beyond any applicable cure periods contained
in such Loan Documents or if no time period is specified for the thirty (30) day period following written notice of such default, whether as to Borrower or the Property, or if any other such event shall occur or condition shall exist, if the
effect of such event or condition is to accelerate the maturity of any portion of the Debt or to permit Lender to accelerate the maturity of all or any portion of the Debt. 
 (b) Upon the occurrence and continuance of an Event of Default (other than an Event of Default described in clauses (vi) or
(vii) above) and at any time thereafter Lender may, in addition to any other rights or remedies available to it pursuant to this Agreement and the other Loan Documents or at law or in equity, take such action, without notice or demand, that
Lender deems advisable to protect and enforce its rights against Borrower and in and to the Property, including, without limitation, declaring the Debt to be immediately due and payable, and Lender may enforce or avail itself of any or all rights or
remedies provided in the Loan Documents against Borrower and the Property, including, without limitation, all rights or remedies available at law or in equity; and upon any Event of Default described in clauses (vi) and (vii) above, the
Debt and all other obligations of Borrower hereunder and under the other Loan Documents shall immediately and automatically become due and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand, anything
contained herein or in any other Loan Document to the contrary notwithstanding. 
 Section 10.2 Remedies.

 (a) Upon the occurrence and during the continuance of an Event of Default, all or any one or more of the rights, powers,
privileges and other remedies available to Lender against Borrower under this Agreement or any of the other Loan Documents executed and delivered by, or applicable to, Borrower or at law or in equity may be exercised by Lender at any time and from
time to time, whether or not all or any of the Debt shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action for the enforcement of its rights and remedies under any of the Loan
Documents with respect to the Property. Any such actions taken by Lender shall be cumulative and concurrent and may be pursued independently, singly, successively, together or otherwise, at such time and in such order as Lender may determine in its
sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and remedies of Lender permitted by law, equity or contract or as set forth herein or in the other Loan Documents. Without limiting
the generality of the foregoing, if an Event of Default is continuing (i) Lender is not subject to any “one action” or “election of remedies” law or rule, and (ii) all liens and other rights, remedies or privileges
provided to Lender shall remain in full force and effect until Lender has exhausted all of its remedies against the Property and the Mortgage has been foreclosed, sold and/or otherwise realized upon in satisfaction of the Debt or the Debt has been
paid in full. 
  

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 (b) Lender shall have the right from time to time to partially foreclose the Mortgage in any
manner and for any amounts secured by the Mortgage then due and payable as determined by Lender in its sole discretion including, without limitation, the following circumstances: (i) in the event Borrower defaults beyond any applicable grace
period in the payment of one or more scheduled payments of principal and interest, Lender may foreclose the Mortgage to recover such delinquent payments, or (ii) in the event Lender elects to accelerate less than the entire outstanding
principal balance of the Loan, Lender may foreclose the Mortgage to recover so much of the principal balance of the Loan as Lender may accelerate and such other sums secured by the Mortgage as Lender may elect. Notwithstanding one or more partial
foreclosures, the Property shall remain subject to the Mortgage to secure payment of sums secured by the Mortgage and not previously recovered. 
 (c) Lender shall have the right from time to time to sever the Note and the other Loan Documents into one or more separate notes, mortgages and other security documents (the “Severed Loan
Documents”) in such denominations as Lender shall determine in its sole discretion for purposes of evidencing and enforcing its rights and remedies provided hereunder, provided that Borrower’s liability or obligations shall not be
materially increased by such severance. Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and such other documents as Lender shall request in order to effect the severance
described in the preceding sentence, all in form and substance reasonably satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead to make and
execute all documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue thereof; provided, however, Lender shall not make or execute any such documents under such
power unless Borrower has not responded to such request within five (5) Business Days after notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under such power. Borrower shall not be obligated to pay any
costs or expenses incurred in connection with the preparation, execution, recording or filing of the Severed Loan Documents. The Severed Loan Documents shall not contain any representations, warranties or covenants not contained in the Loan
Documents (modified to reflect the current status of such representations and warranties) and any such representations and warranties contained in the Severed Loan Documents will be given by Borrower only as of the Closing Date. 
 (d) Any amounts recovered from the Property or any other collateral for the Loan after an Event of Default may be applied by Lender toward
the payment of any interest and/or principal of the Components and/or any other amounts due under the Loan Documents in such order, priority and proportions as Lender in its sole discretion shall determine. 
 Section 10.3 Right to Cure Defaults. During the existence of an Event of Default or on ten (10) Business Days’ notice
(except in the case of an emergency), Lender may, but without any obligation to do so and without notice to or demand on Borrower and without releasing Borrower from any obligation hereunder or being deemed to have cured any Event of 
  

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Default hereunder, make, do or perform any obligation of Borrower hereunder in such manner and to such extent as Lender may deem necessary. During the existence of an Event of Default or on ten
(10) Business Days’ notice (except in the case of an emergency), Lender is authorized to enter upon the Property for such purposes, or appear in, defend, or bring any action or proceeding to protect its interest in the Property for such
purposes, and the out of pocket cost and expense thereof (including reasonable attorneys’ fees to the extent permitted by law), with interest as provided in this Section 10.3, shall constitute a portion of the Debt and shall be due and
payable to Lender upon demand. All such out of pocket costs and expenses incurred by Lender in remedying such Event of Default or such failed payment or act or in appearing in, defending, or bringing any action or proceeding shall bear interest at
the Default Rate, for the period after such cost or expense was incurred into the date of payment to Lender. All such costs and expenses incurred by Lender together with interest thereon calculated at the Default Rate shall be deemed to constitute a
portion of the Debt and be secured by the liens, claims and security interests provided to Lender under the Loan Documents and shall be immediately due and payable upon demand by Lender therefore. 
 Section 10.4 Remedies Cumulative. The rights, powers and remedies of Lender under this Agreement shall be cumulative and not
exclusive of any other right, power or remedy which Lender may have against Borrower pursuant to this Agreement or the other Loan Documents, or existing at law or in equity or otherwise. Lender’s rights, powers and remedies may be pursued
singly, concurrently or otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion. No delay or omission to exercise any remedy, right or power accruing upon an Event of Default shall impair any such remedy,
right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient. A waiver of one Default or Event of Default with respect to Borrower shall not
be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any remedy, right or power consequent thereon. 
 XI. MISCELLANEOUS 
 Section 11.1 Successors and Assigns. All
covenants, promises and agreements in this Agreement, by or on behalf of Borrower, shall inure to the benefit of the legal representatives, successors and assigns of Lender. 
 Section 11.2 Lender’s Discretion. Whenever pursuant to this Agreement Lender exercises any right given to it to approve or
disapprove, or any arrangement or term is to be satisfactory to Lender, the decision of Lender to approve or disapprove or to decide whether arrangements or terms are satisfactory or not satisfactory shall (except as is otherwise specifically herein
provided) be in the sole discretion of Lender and shall be final and conclusive. Prior to a Securitization, whenever pursuant to this Agreement the Rating Agencies are given any right to approve or disapprove, or any arrangement or term is to be
satisfactory to the Rating Agencies, the decision of Lender to approve or disapprove or to decide whether arrangements or terms are satisfactory or not satisfactory, based upon Lender’s determination of Rating Agency criteria, shall be
substituted therefore. 
  

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 Section 11.3 Governing Law. 
 (A) THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK,
AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS,
INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL
TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIEN AND SECURITY INTEREST CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS (OTHER THAN WITH RESPECT TO LIENS AND SECURITY INTERESTS IN PROPERTY WHOSE
PERFECTION, PRIORITY AND ENFORCEMENT IS COVERED BY ARTICLE 9 OF THE UCC (INCLUDING, WITHOUT LIMITATION, THE ACCOUNTS) WHICH SHALL BE GOVERNED BY THE LAW OF THE JURISDICTION APPLICABLE THERETO IN ACCORDANCE WITH SECTIONS 9-301 THROUGH 9-307 OF THE
UCC AS IN EFFECT IN THE STATE OF NEW YORK) SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE
STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY
WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW EXCEPT AS SPECIFICALLY SET FORTH ABOVE. 
 (B) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT LENDER’S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF
NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR

  

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HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION
OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT: 
 Mr. Randall Scott 
 c/o Thomas Properties Group, LLC 
 One Commerce Square 
 2004 Market Street, Suite 2300 
 Philadelphia, Pennsylvania 19103 
 AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK AND AGREES THAT SERVICE OF
PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER, IN ANY SUCH SUIT, ACTION OR
PROCEEDING IN THE STATE OF NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, AND (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT (WHICH
SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS). 
 Section 11.4
Modification, Waiver in Writing. No modification, amendment, extension, discharge, termination or waiver of any provision of this Agreement or of any other Loan Document, nor consent to any departure by Borrower therefrom, shall in any event be
effective unless the same shall be in a writing signed by the party against whom enforcement is sought, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise
expressly provided herein, no notice to, or demand on Borrower, shall entitle Borrower to any other or future notice or demand in the same, similar or other circumstances. 
 Section 11.5 Delay Not a Waiver. Neither any failure nor any delay on the part of Lender in insisting upon strict performance of
any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under any other Loan Document, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any
other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by way of limitation, by accepting payment after the due date of any amount payable under this Agreement or any other Loan Document, Lender
shall not be deemed to have waived any right either to require prompt payment when due of all other amounts due under this Agreement or the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount.
Lender shall have the right to waive or reduce any time periods that Lender is entitled to under the Loan Documents in its sole and absolute discretion. 
  

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

			
	 If to Lender:
	  	
		
		  	 Morgan Stanley Mortgage Capital Inc.
 1221 Avenue of the Americas, 27th
Floor
 New York, New York 10020
 Attention: James Flaum and Kevin Swartz
 Facsimile No.: (212) 762-9494

		
	 with a copy to:
	  	
		
		  	 Cadwalader, Wickersham & Taft LLP
 100 Maiden Lane
 New York, New York 10038
 Attention: John M. Zizzo, Esq.
 Facsimile No.: (212)
504-6666

		
	 If to Borrower:
	  	
		
		  	 Philadelphia Plaza-Phase II, LP
 c/o Thomas Properties Group, LLC
 515 South Flower, Suite 600
 Los Angeles, California 90071
 Attention: Mr. James Thomas
 Facsimile No.: (213) 633-4760

		
	 with a copy to:
	  	
		  	 Thomas Properties Group, LLC
 One Commerce Square
 2005 Market Street, Suite 2300
 Philadelphia, Pennsylvania 19103
 Attention: Mr. Randall Scott
 Facsimile No. (215) 851-6021

		
	 with a copy to:
	  	
		
		  	 Pircher, Nichols & Meeks
 1925 Century Park East, Suite 1700
 Los Angeles, California 90067
 Attention: Real Estate Notices (LJP/SCS)
 Facsimile No. (310) 201-8922

Section 11.7 Trial by Jury. BORROWER AND LENDER EACH HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT

  

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BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION
ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER AND LENDER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD
OTHERWISE ACCRUE. EACH PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER. 
 Section 11.8 Headings. The Article and/or Section headings and the Table of Contents in this Agreement are included herein for convenience of reference only and shall not constitute a part of
this Agreement for any other purpose. 
 Section 11.9 Severability. Wherever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
 Section 11.10 Preferences. Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the obligations of Borrower hereunder. To the extent Borrower
makes a payment or payments to Lender, which payment or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds received, the obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect,
as if such payment or proceeds had not been received by Lender. 
 Section 11.11 Waiver of Notice. Borrower shall
not be entitled to any notices of any nature whatsoever from Lender except with respect to matters for which this Agreement or the other Loan Documents specifically and expressly provide for the giving of notice by Lender to Borrower and except with
respect to matters for which Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. Borrower hereby expressly waives the right to receive any notice from Lender with respect to any matter for which this
Agreement or the other Loan Documents do not specifically and expressly provide for the giving of notice by Lender to Borrower. 
 Section 11.12 Remedies of Borrower. In the event that a claim or adjudication is made that Lender or its agents have acted unreasonably or unreasonably delayed acting in any case where, by law or under this Agreement or the
other Loan Documents, Lender or such agent, as the case may be, has an obligation to act reasonably or promptly, neither Lender nor its agents shall be liable for any monetary damages, and Borrower’s sole remedy shall be limited to commencing
an action seeking injunctive relief or declaratory judgment unless Lender’s actions are arbitrary and capricious. Any action or proceeding to determine whether Lender has acted reasonably shall be determined by an action seeking declaratory
judgment unless Lender’s actions are arbitrary and capricious. 
  

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 Section 11.13 Expenses; Indemnity. 
 (a) Borrower shall pay or, if Borrower fails to pay, reimburse Lender upon ten (10) days of receipt of notice from Lender, for all
reasonable costs and expenses (including reasonable attorneys’ fees and disbursements) incurred by Lender in connection with (i) any default by Borrower in Borrower’s prompt ongoing performance of and compliance with Borrower’s
agreements and covenants contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date, including, without limitation, confirming compliance with environmental and insurance
requirements; (ii) the negotiation, preparation, execution, delivery and administration of any consents, amendments, waivers or other modifications to this Agreement and the other Loan Documents and any other documents or matters requested by
Borrower; (iii) the filing and recording fees and expenses, title insurance and reasonable fees and expenses of counsel for providing to Lender all required legal opinions, and other similar expenses incurred, in creating and perfecting the
Liens in favor of Lender pursuant to this Agreement and the other Loan Documents; (iv) subject to the terms hereof, enforcing or preserving any rights, in response to third party claims or the prosecuting or defending of any action or
proceeding or other litigation or otherwise, in each case against, under or affecting Borrower, this Agreement, the other Loan Documents, the Property, or any other security given for the Loan; and (v) enforcing any obligations of or collecting
any payments due from Borrower under this Agreement, the other Loan Documents or with respect to the Property or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a
“work-out” or of any insolvency or bankruptcy proceedings; provided, however, that Borrower shall not be liable for the payment of any such costs and expenses to the extent the same arise by reason of the gross negligence,
illegal acts, fraud or willful misconduct of Lender. Any costs due and payable to Lender may be paid to Lender pursuant to the Cash Management Agreement after ten (10) days prior written notice from Lender to Borrower. Notwithstanding the
foregoing, Borrower shall not be responsible for the legal fees and costs of attorneys incurred by Lender in connection with the closing of the Loan. 
 (b) Borrower shall indemnify, defend and hold harmless Lender and its officers, directors, agents, employees (and the successors and assigns of the foregoing) (the “Lender Indemnitees”)
from and against any and all liabilities, obligations, out-of-pocket losses, compensatory damages (but not consequential damages), penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever
(including, without limitation, the reasonable fees and disbursements of counsel for the Lender Indemnitees in connection with any investigative, administrative or judicial proceeding commenced or threatened, whether or not the Lender Indemnitees
shall be designated a party thereto), that may be imposed on, incurred by, or asserted against the Lender Indemnitees in any manner relating to or arising out of (i) any breach by Borrower of its obligations under, or any material
misrepresentation by Borrower contained in, this Agreement or the other Loan Documents, or (ii) the use or intended use of the proceeds of the Loan (collectively, the “Indemnified Liabilities”); provided, however,
that Borrower shall not have any obligation to the Lender Indemnitees hereunder to the extent that such Indemnified Liabilities arise from the gross

  

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negligence, illegal acts, fraud or willful misconduct of the Lender Indemnitees. To the extent that the undertaking to indemnify, defend and hold harmless set forth in the preceding sentence may
be unenforceable because it violates any law or public policy, Borrower shall pay the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by the Lender
Indemnitees. 
 Section 11.14 Schedules Incorporated. The Schedules annexed hereto are hereby incorporated herein as
a part of this Agreement with the same effect as if set forth in the body hereof. 
 Section 11.15 Offsets,
Counterclaims and Defenses. Any assignee of Lender’s interest in and to this Agreement and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such documents which
Borrower may otherwise have against any assignor of such documents, and no such unrelated counterclaim or defense shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon such documents and any such
right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrower. 
 Section 11.16 No Joint Venture or Partnership; No Third Party Beneficiaries. 
 (a) Borrower and Lender intend that the relationships created hereunder and under the other Loan Documents be solely that of borrower and lender. Nothing herein or therein is intended to create a joint venture, partnership,
tenancy-in-common, or joint tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Property other than that of mortgagee, beneficiary or lender. 
 (b) This Agreement and the other Loan Documents are solely for the benefit of Lender and nothing contained in this Agreement or the other
Loan Documents shall be deemed to confer upon anyone other than Lender any right to insist upon or to enforce the performance or observance of any of the obligations contained herein or therein. All conditions to the obligations of Lender to make
the Loan hereunder are imposed solely and exclusively for the benefit of Lender and no other Person shall have standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to
make the Loan in the absence of strict compliance with any or all thereof and no other Person shall under any circumstances be deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender if,
in Lender’s sole discretion, Lender deems it advisable or desirable to do so. 
 Section 11.17 Publicity.
Except for Lender Disclosure Documents in connection with a Securitization, all news releases, publicity or advertising by Borrower, Lender or their Affiliates through any media intended to reach the general public which refers to the Loan Documents
or the financing evidenced by the Loan Documents, to Borrower, Lender, Morgan Stanley Mortgage Capital Inc., or any of their Affiliates shall be subject to the prior approval of Lender and Borrower, which shall not be unreasonably withheld.
Notwithstanding the foregoing, disclosure required by any federal or state securities laws, rules or regulations or other applicable Legal Requirements, as determined by any such party’s counsel, shall be not be subject to the prior written
approval of the other. 
  

 - 80 - 

 Section 11.18 Waiver of Marshalling of Assets. To the fullest extent permitted
by law, Borrower, for itself and its successors and assigns, waives all rights to a marshalling of the assets of Borrower, Borrower’s Partners and others with interests in Borrower, and of the Property, and shall not assert any right under any
laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan
Documents to a sale of the Property for the collection of the Debt without any prior or different resort for collection or of the right of Lender to the payment of the Debt out of the net proceeds of the Property in preference to every other
claimant whatsoever. 
 Section 11.19 Waiver of Offsets/Defenses/Counterclaims. Borrower hereby waives the right to
assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Lender or its agents or otherwise to offset any obligations to make the payments required by the Loan Documents. No failure by Lender to
perform any of its obligations hereunder shall be a valid defense to, or result in any offset against, any payments which Borrower is obligated to make under any of the Loan Documents. 
 Section 11.20 Conflict; Construction of Documents; Reliance. In the event of any conflict between the provisions of this
Agreement and any of the other Loan Documents, the provisions of this Agreement shall control. The parties hereto acknowledge that they were represented by competent counsel in connection with the negotiation, drafting and execution of the Loan
Documents and that such Loan Documents shall not be subject to the principle of construing their meaning against the party which drafted same. Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and
advisors in entering into the Loan without relying in any manner on any statements, representations or recommendations of Lender or any parent, subsidiary or Affiliate of Lender. Lender shall not be subject to any limitation whatsoever in the
exercise of any rights or remedies available to it under any of the Loan Documents or any other agreements or instruments which govern the Loan by virtue of the ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest
any of them may acquire in Borrower, and Borrower hereby irrevocably waives the right to raise any defense or take any action on the basis of the foregoing with respect to Lender’s exercise of any such rights or remedies. Borrower acknowledges
that Lender engages in the business of real estate financings and other real estate transactions and investments which may be viewed as adverse to or competitive with the business of Borrower or its Affiliates. 
 Section 11.21 Brokers and Financial Advisors. Borrower hereby represents that it has dealt with no financial advisors, brokers,
underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement. Borrower shall indemnify, defend and hold Lender harmless from and against any and all third party (i.e. other than Borrower or its
Affiliates) claims, liabilities, out of pocket costs and expenses of any kind (including Lender’s attorneys’ fees and expenses) in any way relating to or arising from a claim by any Person that such Person acted on behalf of Borrower or
Lender in connection with the transactions contemplated herein. The provisions of this Section 11.21 shall survive the expiration and termination of this Agreement and the payment of the Debt. 
  

 - 81 - 

 Section 11.22 Exculpation. 
 (a) Subject to the qualifications below, Lender shall not enforce the liability and obligation of Borrower to perform and observe the
obligations contained in the Note, this Agreement, the Mortgage or the other Loan Documents by any action or proceeding wherein a money judgment shall be sought against Borrower, except that Lender may bring a foreclosure action, an action for
specific performance or any other appropriate action or proceeding (including a money judgment under the Note and the other Loan Documents) to enable Lender to enforce and realize upon its interest under the Note, this Agreement, the Mortgage and
the other Loan Documents, or in the Property, the Rents, or any other collateral given to Lender pursuant to the Loan Documents; provided, however, that, except as specifically provided herein, any judgment in any such action or
proceeding shall be enforceable against Borrower only to the extent of Borrower’s interest in the Property, in the Rents and in any other collateral given to Lender, and Lender, by accepting the Note, this Agreement, the Mortgage and the other
Loan Documents, shall not sue for, seek or demand any deficiency or other personal judgment against Borrower in any such action or proceeding under or by reason of or under or in connection with the Note, this Agreement, the Mortgage or the other
Loan Documents. The provisions of this Section shall not, however, (a) constitute a waiver, release or impairment of any obligation evidenced or secured by any of the Loan Documents; (b) impair the right of Lender to name Borrower as a
party defendant in any action or suit for foreclosure and sale under the Mortgage; (c) affect the validity or enforceability of any guaranty made in connection with the Loan or any of the rights and remedies of Lender thereunder;
(d) impair the right of Lender to obtain the appointment of a receiver; (e) impair the enforcement of the Assignment of Leases; (f) constitute a prohibition against Lender to seek a deficiency or other personal judgment against
Borrower solely in order to fully realize on any security given by Borrower in connection with the Loan or to commence any other appropriate action or proceeding in order for Lender to exercise its remedies against such security; or
(g) constitute a waiver of the right of Lender to enforce the liability and obligation of Borrower, by money judgment or otherwise, to the extent of any Loss incurred by Lender (including attorneys’ fees and costs reasonably incurred)
arising out of or in connection with the following: 
 (i) fraud or intentional misrepresentation by Borrower or the Guarantor
in connection with the Loan; 
 (ii) the willful misconduct of Borrower, 
 (iii) the existence of environmental matters in violation of applicable Legal Requirements; 
 (iv) the intentional misapplication or conversion by Borrower or its authorized agents of (A) any insurance proceeds paid by reason of
any loss, damage or destruction to the Property, to the extent so misappropriated or misapplied, (B) any Awards or other amounts received in connection with the Condemnation of an or a portion of the Property, to the extent so misappropriated
or misapplied, or (C) any Rents, to the extent so misappropriated or misapplied; 
 (v) Borrower’s indemnification of
Lender set forth in Section 9.2 hereof; and 
  

 - 82 - 

 (vi) Borrower breaches any representation contained in Sections 3.1.40 or 3.1.41 hereof

 Notwithstanding anything to the contrary in this Agreement, the Note or any of the Loan Documents, (A) Lender shall not
be deemed to have waived any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code to file a claim for the full amount of the Debt or to require that all collateral shall continue to
secure all of the Debt owing to Lender in accordance with the Loan Documents, and (B) the Debt shall be fully recourse to Borrower in the event that: (i) Borrower files a voluntary petition under the Bankruptcy code or any other Federal or
state bankruptcy or insolvency law; (ii) an Affiliate, which controls, directly or indirectly, Borrower files, or arranges for or joins in the filing of, an involuntary petition against Borrower under the Bankruptcy Code or any other Federal or
state bankruptcy or insolvency law (other than if such filing is consented to in writing by Lender); (iii) Borrower colludes in or arranges for any involuntary petition filed against it by any other Person (other than by Lender) under the
Bankruptcy Code or any other Federal or state bankruptcy or insolvency law (other than if such filing is consented to in writing by Lender); or (iv) Guarantor breaches the Guarantor Operational Covenant. 
 (b) Notwithstanding anything to the contrary contained in this Agreement, the Note or any of the Loan Documents (except for Guarantor under
the Guaranty and Manager under the Assignment of Management Agreement and the Cash Management Agreement) neither any present or future Constituent Partner in Borrower nor any present or future shareholder, officer, director, employee, trustee,
beneficiary, advisor, partner, member, principal, participant or agent of or in Borrower or of or in any person or entity that is or becomes a Constituent Partner in Borrower (collectively, the “Borrower’s Partners”) shall have
any personal liability, directly or indirectly, under or in connection with this Agreement, the Note or any of the Loan Documents (except for Guarantor under the Guaranty and Manager under the Assignment of Management Agreement and the Cash
Management Agreement), or any amendment or amendments to any of the foregoing made at any time or times hereafter and Lender, on behalf of itself and its successors and assigns, hereby waives any and all such personal liability. The term
“Constituent Partner,” as used herein, shall mean, any direct partner in Borrower and any person or entity that, directly or indirectly, through one or more other partnerships, limited liability companies or corporation or other
entities is a partner in Borrower. For purposes of this Section 11.22(b), neither the negative capital account of any Constituent Partner in Borrower or in any other Constituent Partner in Borrower, nor any obligation of any Constituent Partner
in Borrower to restore a negative capital account or to contribute or loan capital to Borrower or to any other Constituent Partner in Borrower shall at any time be deemed to be the property or an asset of Borrower (or any other Constituent Partner)
and neither Lender nor any of its successors or assigns shall have any right to collect, enforce or proceed against with respect to any such negative capital account or obligation to restore, contribute or loan. 
  

 - 83 - 

 Section 11.23 Prior Agreements. This Agreement and the other Loan Documents
contain the entire agreement of the parties hereto and thereto in respect of the transactions contemplated hereby and thereby, and all prior agreements among or between such parties, whether oral or written, including, without limitation, the
Commitment Letter dated June 3, 2003 (as amended) between Borrower DB Realty Mezzanine Investment Fund II, LLC and Lender, are superseded by the terms of this Agreement and the other Loan Documents. 
 Section 11.24 Servicer. 
 (a) At the option of Lender, the Loan may be serviced by a servicer (the “Servicer”) selected by Lender and Lender may delegate all or any portion of its responsibilities under this
Agreement and the other Loan Documents to the Servicer pursuant to a servicing agreement (the “Servicing Agreement”) between Lender and Servicer. Lender shall be responsible for any reasonable set-up fees or any other initial costs
relating to or arising under the Servicing Agreement; and Borrower shall not be responsible for payment of the monthly servicing fee due to the Servicer under the Servicing Agreement. Servicer shall, however, be entitled to reimbursement of costs
and expenses as and to the same extent (but without duplication) as Lender is entitled thereto under the applicable provisions of this Agreement and the other Loan Documents. 
 (b) Upon notice thereof from Lender, Servicer shall have the right to exercise all rights of Lender and enforce all obligations of Borrower
pursuant to the provisions of this Agreement, the Note and the other Loan Documents. 
 (c) Provided Borrower shall have been
given notice of Servicer’s address by Lender, Borrower shall deliver to Servicer duplicate originals of all notices and other instruments which Borrower may or shall be required to deliver to Lender pursuant to this Agreement, the Note and the
other Loan Documents (and no delivery of such notices or other instruments by Borrower shall be of any force or effect unless delivered to Lender and Servicer as provided above). 
 Section 11.25 Joint and Several Liability. If more than one Person has executed this Agreement as “Borrower,” the
representations, covenants, warranties and obligations of all such Persons hereunder shall be joint and several. 
 Section 11.26 Creation of Security Interest. Notwithstanding any other provision set forth in this Agreement, the Note, the Mortgage or any of the other Loan Documents, Lender may at any time create a security interest in all or
any portion of its rights under this Agreement, the Note, the Mortgage and any other Loan Document (including, without limitation, the advances owing to it) in favor of any Federal Reserve Bank in accordance with Regulation A of the Board of
Governors of the Federal Reserve System. 
 Section 11.27 Assignments and Participations. 
 (a) The Lender may assign to one or more Persons all or a portion of its rights and obligations under this Loan Agreement, as holder of the
Note. 
  

 - 84 - 

 (b) Upon such execution and delivery, from and after the effective date specified in such
Assignment and Acceptance, the assignee thereunder shall be a party hereto and have the rights and obligations of Lender hereunder. 
 (c) Lender may sell participations to one or more Persons in or to all or a portion of its rights and obligations under this Loan Agreement; provided, however, that (i) Lender’s obligations under this Loan Agreement
shall remain unchanged, (ii) Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) Lender shall remain the holder of any Note for all purposes of this Loan Agreement and
(iv) Borrower shall continue to deal solely and directly with Lender in connection with Lender’s rights and obligations under and in respect of this Loan Agreement and the other Loan Documents. 
 (d) Lender may, in connection with any assignment or participation or proposed assignment or participation pursuant to this
Section 11.27, disclose to the assignee or participant or proposed assignee or participant, as the case may be, any information relating to Borrower or any of its Affiliates or to any aspect of the Loan that has been furnished to the Lender by
or on behalf of the Borrower or any of its Affiliates. 
 (e) Notwithstanding anything to the contrary contained in this
Agreement, Lender shall not include Guarantor financial information in any Disclosure Document. 
 [NO FURTHER TEXT ON THIS PAGE]

  

 - 85 - 

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

			
	LENDER:
	
	MORGAN STANLEY MORTGAGE CAPITAL INC., a New York corporation
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 - 86 - 

															
	BORROWER:
	
	 PHILADELPHIA PLAZA-PHASE II, LP,
 a Pennsylvania limited partnership

		
	By:	  	 TCS Genpar, LLC
 a
Delaware limited liability company,
 Its General Partner

			
		  	By:	  	 TCS SPE 1, L.P.,
 a Delaware limited partnership,
 Its Sole Member

				
		  		  	By:	  	 TCS Mezzanine GP, LLC,
 a Delaware limited liability company,
 Its General Partner

					
		  		  		  	By:	  	 Maguire Thomas Partners-Commerce Square II, Ltd.,
 a California limited partnership,
 Its Managing Member

						
		  		  		  		  	By:	  	 Thomas Development Partners-Phase II, Inc.,
 a California corporation,
 Its General Partner

								
		  		  		  		  		  	By:	  	  
	  	
		  		  		  		  		  	Name:	  	  
	  	
		  		  		  		  		  	Title:	  	  
	  	

  

 - 87 - 

 SCHEDULE I 
 RENT ROLL 

 Page 1 of 5 
 Two Commerce Square 
 Rent Roll 
 July 1, 2003 
  

																											
	 	  	 	  	 	  	Square	  	Lease	 	Term	  	Rent	  	 	  	Recoveries	  	Percentage Rent
	 Tenant Name
	  	Suite	  	Floor	  	Feet	  	Date	 	Start	  	End	  	Steps	  	Rent	  	Charge	  	Base	  	Percent	 	Break
	 ATT/TCG
	  	30	  	1	  	0	  	1/9/03	 	1/1/03	  	MTM	  	1/1/03	  	$	1200	  	N/A	  	N/A	  		 		
	 Commerce Restaurant Corporation
	  	100	  	1	  	1,621	  	4/3/01	 	5/20/01	  	5/31/07	  	12/1/01	  	$	24.22	  	Op. Ex.	  	Net	  	6.0%	 	 	Annual
	     “Twenty21”
	  		  		  		  		 		  		  	1/1/02	  	$	16.87	  	Taxes	  	Net	  	Effective	 	 	Sales >
		  		  		  		  		 		  		  	4/1/02	  	$	24.22	  		  		  		 		
		  		  		  		  		 		  		  	6/1/04	  	$	24.80	  		  		  	12/1/01	 	$	3,750,000
		  		  		  		  		 		  		  	6/1/05	  	$	25.44	  		  		  	1/1/02	 	$	3,465,463
		  		  		  		  	3/18/02:	 		  		  		  			  		  		  	1/1/03	 	$	3,750,000
		  		  		  		  	Option to	 		  		  		  			  		  		  	6/1/04	 	$	3,840,000
		  		  		  		  	Exercise	 		  		  		  			  		  		  	6/1/05	 	$	3,940,000
		  		  		  		  	and Amnd	 		  		  		  			  		  		  		 		
	 Cort Furniture Rental Corp.
	  	110	  	1	  	4,477	  	1/5/93	 	10/1/93	  	9/30/03	  	10/1/93	  	$	8.25	  	Op. Ex.	  	Net	  		 		
	     “Coif Furniture Rental”
	  		  		  		  		 		  		  	10/1/94	  	$	15.50	  	Taxes	  	Net	  		 		
		  		  		  		  		 		  		  	10/1/95	  	$	16.50	  		  		  		 		
		  		  		  		  		 		  		  	10/1/96	  	$	17.50	  		  		  		 		
		  		  		  		  		 		  		  	10/1/97	  	$	18.50	  		  		  		 		
		  		  		  		  		 		  		  	10/1/98	  	$	19.00	  		  		  		 		
		  		  		  		  		 		  		  	10/1/01	  	$	20.00	  		  		  		 		
		  		  		  		  	1st Amnd.	 	10/01/03	  	9/30/06	  	10/1/03	  	$	23.00	  	Op. Ex.	  	Net	  		 		
		  		  		  		  	10/18/02	 		  		  		  			  	Taxes	  	Net	  		 		
	 Marathon Grill
	  	120	  	1	  	7,938	  	10/25/00	 	4/1/01	  	3/31/11	  	4/1/01	  	$	8.31	  	Op. Ex.	  	Net	  	6.0%	 	 	Annual
		  		  		  		  		 		  		  	4/1/02	  	$	9.15	  	Taxes	  	Net	  	Effective	 	 	Sales >
		  		  		  		  	1st Amnd:	 		  		  	4/1/03	  	$	9.98	  		  		  		 		
		  		  		  		  	5/1/01	 		  		  	4/1/04	  	$	11.22	  		  		  	4/1/01	 	$	1,100,000
		  		  		  		  		 		  		  	4/1/06	  	$	14.55	  		  		  	4/1/02	 	$	1,210,000
		  		  		  		  		 		  		  	4/1/07	  	$	15.80	  		  		  	4/1/03	 	$	1,320,000
		  		  		  		  		 		  		  	4/1/09	  	$	17.04	  		  		  	4/1/04	 	$	1,485,000
		  		  		  		  		 		  		  	4/1/10	  	$	17.88	  		  		  	4/1/06	 	$	1,925,000
		  		  		  		  		 		  		  		  			  		  		  	411/07	 	$	2,090,000
		  		  		  		  		 		  		  		  			  		  		  	4/1109	 	$	2,255,000
		  		  		  		  		 		  		  		  			  		  		  	4/1/10	 	$	2,365,000
	 Salad Works, Inc.
	  	130	  	1	  	3,606	  	3/31/97	 	10/1/97	  	9/30/07	  	10/1/97	  	$	20.00	  	Op. Ex.	  	Net	  	6.0%	 	 	LY 1-5:
	     “Salad Works”
	  		  		  		  		 		  		  	4/1/00	  	$	22.00	  	Taxes	  	Net	  		 	$	1.75mm
		  		  		  		  	1st Amnd:	 		  		  	4/1/02	  	$	24.00	  		  		  		 		
		  		  		  		  	9/30/97	 		  		  	4/1/04	  	$	26.00	  		  		  		 	 	LY 6-10:
		  		  		  		  		 		  		  	4/1/05	  	$	27.00	  		  		  		 	$	1.85mm
	 Kinko’s of Ohio, Inc.
	  	140	  	1	  	4,650	  	12/2/96	 	5/12/97	  	5/11/07	  	5/1/97	  	$	33.79	  	Op. Ex.	  	Tot	  		 		
	     “Kinko’s”
	  		  		  		  		 		  		  	5/1/98	  	$	34.79	  	Taxes	  	Base	  		 		
		  		  		  		  		 		  		  	5/1/99	  	$	35.79	  		  	$6.85	  		 		
		  		  		  		  		 		  		  	5/1/00	  	$	38.79	  		  		  		 		
		  		  		  		  		 		  		  	5/1/01	  	$	37.79	  		  		  		 		
		  		  		  		  		 		  		  	5/1/02	  	$	41.29	  		  		  		 		

 Page 2 of 5 
 Two Commerce Square 
 Rent Roll 
 July 1, 2003 
  

																										
	 	  	 	  	 	  	Square	  	Lease	 	Term	  	Rent	  	Recoveries	  	Percentage Rent
	 Tenant Name
	  	Suite	  	Floor	  	Feet	  	Date	 	Start	  	End	  	Steps	  	Rent	  	Charge	  	Base	  	Percent	  	Break
	 Citizens Bank
	  	170	  	1	  	2,896	  	7/12/02	 	12/16/02	  	12/31/12	  	12/16/02	  	$	28.00	  	Op. Ex.	  	Net	  		  	
		  		  		  		  		 		  		  	1/1/06	  	$	29.00	  	Taxes	  	Net	  		  	
		  		  		  		  		 		  		  	1/1/08	  	$	31.00	  		  		  		  	
		  		  		  		  		 		  		  	1/1/11	  	$	32.00	  		  		  		  	
	 Shoe Shine Service
	  	180	  	1	  	180	  	N/A	 		  		  		  			  		  		  		  	
	 NYCL - (Delaware Mgt.)
	  	060	  	P-1	  	10,198	  	3/28/90	 	5/15/92	  	6/23/07	  	5/15/92	  	$	19.00	  	Op. Ex.	  	Net	  		  	
	 NYCL - (Delaware Mgt.)
	  	200	  	2	  	41,936	  		 		  		  	5/15/93	  	$	20.00	  	Taxes	  	Net	  		  	
	 NYCL - (Delaware Mgt.)
	  	300	  	3	  	31,817	  	1st Amnd:	 		  		  	6/24/97	  	$	25.25	  		  		  		  	
	 NYCL - (Delaware Mgt.)
	  	400	  	4	  	33,572	  	10/1/92	 		  		  	6/24/02	  	$	30.00	  		  		  		  	
	 NYCL - Vacant
	  	500	  	5	  	33,572	  		 		  		  		  			  		  		  		  	
	 NYCL - (Citizens Bank)
	  	800	  	8	  	33.572	  	2nd Amnd:	 		  		  		  			  		  		  		  	
	 NYCL - (Biological Abstr.)
	  	700	  	7	  	33,572	  	6/20/99	 		  		  		  			  		  		  		  	
	 NYCL - Alliance
	  	800	  	8	  	16,186	  		 		  		  		  			  		  		  		  	
	 NYCL - (Biological Abstr.)
	  	810	  	6	  	7,551	  	3rd Amnd:	 		  		  		  			  		  		  		  	
	 NYCL - CSX
	  	830	  	8	  	5,640	  	9/30/99	 		  		  		  			  		  		  		  	
	 NYCL - (McCormick Teyl.)
	  	900	  	9	  	29,392	  		 		  		  		  			  		  		  		  	
	 NYCL - (McCormick Tayl.)
	  	1000	  	10	  	29,376	  		 		  		  		  			  		  		  		  	
	 NYCL - (ADR Options)
	  	1100	  	11	  	10.969	  	4th Amnd:	 		  		  		  			  		  		  		  	
	 NYCL - (Reliance Stand.)
	  	1110	  	11	  	18,761	  	12/10/99	 		  		  		  			  		  		  		  	
	 NYCL - (Reliance Stand.)
	  	1200	  	12	  	29,730	  		 		  		  		  			  		  		  		  	
	 NYCL - (Reliance Stand.)
	  	1400	  	14	  	29,724	  	5th Amnd:	 		  		  		  			  		  		  		  	
	 NYCL - (Reliance Stand.)
	  	1600	  	15	  	29,724	  	1/5/00	 		  		  		  			  		  		  		  	
	 NYCL - Conrail
	  	1800	  	16	  	29,724	  		 		  		  		  			  		  		  		  	
	 NYCL - (PWC)
	  	1700	  	17	  	29,773	  	6th Amnd:	 		  		  		  			  		  		  		  	
	 NYCL - (PWC)
	  	1800	  	18	  	23,440	  	5/17/01	 		  		  		  			  		  		  		  	
	 NYCL - (PWC)
	  	1900	  	19	  	23,037	  		 		  		  		  			  		  		  		  	
	 NYCL - (PWC)
	  	2000	  	20	  	23,037	  	Ltr Agmnts:	 		  		  		  			  		  		  		  	
	 NYCL - (PWC)
	  	2100	  	21	  	22,825	  	3/28/90	 		  		  		  			  		  		  		  	
	 NYCL - (PWC)
	  	2200	  	22	  	23,037	  	6/3/93	 		  		  		  			  		  		  		  	
	 NYCL - (PWC)
	  	2300	  	23	  	23.037	  	9/9/94	 		  		  		  			  		  		  		  	
	 NYCL - (PWC)
	  	2400	  	24	  	23,037	  		 		  		  		  			  		  		  		  	
	 NYCL - (PWC)
	  	2500	  	25	  	23,037	  		 		  		  		  			  		  		  		  	
	 NYCL - Vacant
	  	2600	  	26	  	23,037	  		 		  		  		  			  		  		  		  	
	 NYCL - (GreenbergTrourig)
	  	2700	  	27	  	22,825	  		 		  		  		  			  		  		  		  	
	 NYCL - (PP Ph 2/E&Y)
	  	2800	  	28	  	22,981	  		 		  		  		  			  		  		  		  	
	 NYCL - (Norfolk South.)
	  	2900	  	29	  	14,677	  		 		  		  		  			  		  		  		  	
	 NYCL - Vacant
	  	4110	  	41	  	224	  		 		  		  		  			  		  		  		  	
		  		  		  	 	  		 		  		  		  			  		  		  		  	
		  		  		  	752,999	  		 		  		  		  			  		  		  		  	
	 Delaware Management
	  	000	  	P-1	  	See	  	12/10/99	 	N/A	  		  		  			  		  		  		  	
		  	200	  	2	  	NYCL	  		 		  		  		  			  		  		  		  	
		  	300	  	3	  		  		 		  		  		  			  		  		  		  	
		  	400	  	4	  		  		 		  		  		  			  		  		  		  	
	 Citizens Bank
	  	600	  	6	  	See	  	11/8/01	 	N/A	  		  		  			  		  		  		  	
		  		  		  	NYCL	  		 		  		  		  			  		  		  		  	

  

 Page 3 of 5 
 Two Commerce Square 
 Rent Roll 
 July 1, 2003 
  

																									
	 	  	 	  	 	  	Square	  	Lease	 	Term	  	Rent	  	 	  	Recoveries	  	Percentage Rent
	 Tenant Name
	  	Suite	  	Floor	  	Feet	  	Date	 	Start	  	End	  	Steps	  	Rent	  	Charge	 	Base	  	Percent	  	Break
	 Biological Abstracts
	  	700	  	7	  	See	  	4/30/99	 	6/24/09	  	11/30/09	  	6/24/09	  	$9.55	  	Op. Ex.	 	Net	  		  	
		  	810	  	8	  	NYCL	  		 		  		  		  		  	Taxes	 	Net	  		  	
		  		  		  		  	1st Amend:	 		  		  		  		  		 		  		  	
		  		  		  		  	2/28/01	 		  		  		  		  		 		  		  	
	 Alliance
	  	800	  	a	  	See	  	2/18/01	 	6/24/08	  	12/31/09	  	0/24/08	  	$25.90	  	Op. Ex.	 	Net	  		  	
		  		  		  	NYCL	  		 		  		  		  		  	Taxes	 	Net	  		  	
	 McCormick Taylor
	  	1000	  	10	  	See	  	7/8/99	 	8/24/09	  	1/31/10	  	6/24/09	  	$20.50	  	Op. Ex*	 	$5.89	  		  	
		  	900	  	9	  	NYCL	  		 		  		  		  		  	Taxes*	 	$3.09	  		  	
		  		  		  		  	1st Amend:	 		  		  		  		  		 		  		  	
		  		  		  		  	7/6/99	 		  		  		  		  		 		  		  	
		  		  		  		  	2nd Amend:	 		  		  		  		  		 		  		  	
		  		  		  		  	5/17/00	 		  		  		  		  		 		  		  	
	 ADR Options, Inc.
	  	1100	  	11	  	See	  	8/15/01	 	N/A	  		  		  		  		 		  		  	
		  		  		  	NYCL	  		 		  		  		  		  		 		  		  	
	 Reliance Standard Life
	  	1110	  	11	  	See	  	1/05/00	 	06/24108	  	06/23/09	  	06/24/08	  	$24.00	  	Op. Ex*	 	$5.89	  		  	
	 Reliance Standard Life
	  	1200	  	12	  	NYCL	  		 		  		  		  		  	Taxes*	 	$3.09	  		  	
	 Reliance Standard Life
	  	1400	  	14	  		  	Amended &	 		  		  		  		  		 		  		  	
	 Reliance Standard Life
	  	1500	  	15	  		  	Restated	 		  		  		  		  		 		  		  	
		  		  		  		  	Sublease:	 		  		  		  		  		 		  		  	
		  		  		  		  	5/1/00	 		  		  		  		  		 		  		  	
	 PriceWaterhouseCoopers
	  	1700	  	17	  	See	  	8/20/99	 	8/24/09	  	4/24/15	  	8/24/09	  	$25.00	  	Op. Ex	 	$5.94	  		  	
		  	1800	  	18	  	NYCL	  		 		  		  	4/24/10	  	$27.00	  	Taxes	 	$3.15	  		  	
		  	1900	  	19	  		  		 		  		  		  		  		 		  		  	
		  	2000	  	20	  		  		 		  		  		  		  		 		  		  	
		  	2100	  	21	  		  		 		  		  		  		  		 		  		  	
		  	2200	  	22	  		  		 		  		  		  		  		 		  		  	
		  	2300	  	23	  		  		 		  		  		  		  		 		  		  	
		  	2400	  	24	  		  		 		  		  		  		  		 		  		  	
		  	2500	  	25	  		  		 		  		  		  		  		 		  		  	
	 Greenberg Traurlg
	  	2700	  	27	  	See	  	7/11/00	 	N/A	  		  		  		  		 		  		  	
		  		  		  	NYCL	  		 		  		  		  		  		 		  		  	
	 Norfolk Southern
	  	2900	  	29	  	See	  	10/1/99	 	N/A	  		  		  		  		 		  		  	
		  		  		  	NYCL	  		 		  		  		  		  		 		  		  	
		  		  		  		  	1st Amnd:	 		  		  		  		  		 		  		  	
		  		  		  		  	10/26/99	 		  		  		  		  		 		  		  	

 Page 4 of 5 
 Two Commerce Square 
 Rent Roll 
 July 1, 2003 
  

																										
	 	  	 	  	 	  	Square	  	Lease	 	Term	  	Rent	  	 	  	Recoveries	  	Percentage Rent
	 Tenant Name
	  	Suite	  	Floor	  	Feet	  	Date	 	Start	  	End	  	Steps	  	Rent	  	Charge	  	Base	  	Percent	  	Break
	 Vacant
	  	3020	  	30	  	4.745	  		 		  		  		  			  		  		  		  	
	 Grant Thornton, LLP
	  	3010	  	30	  	9,856	  	7/29/94	 	12/5/94	  	12/4/04	  	9/2/96	  	$	25.00	  	Op. Ex.	  	Net	  		  	
		  		  		  		  		 		  		  	9/2/97	  	$	6.75	  	Taxes	  	Net	  		  	
		  		  		  		  		 		  		  	9/2/98	  	$	7.75	  		  		  		  	
		  		  		  		  		 		  		  	9/2/99	  	$	8.75	  		  		  		  	
		  		  		  		  		 		  		  	9/2/00	  	$	9.75	  		  		  		  	
		  		  		  		  		 		  		  	9/2/01	  	$	10.75	  		  		  		  	
		  		  		  		  		 		  		  	9/2/02	  	$	11,75	  		  		  		  	
		  		  		  		  		 		  		  	9/2/03	  	$	12.75	  		  		  		  	
		  		  		  		  		 		  		  	9/2/04	  	$	13.75	  		  		  		  	
	 Grant Thornton, LLP
	  	3100	  	31	  	14,633	  	1st Amend:	 		  		  	12/5/94	  	$	25.71	  		  		  		  	
		  		  		  	24,489	  	3/14/88	 		  		  	12/5/95	  	$	4.70	  		  		  		  	
		  		  		  		  		 		  		  	12/5/98	  	$	5.00	  		  		  		  	
		  		  		  		  		 		  		  	12/5/99	  	$	6.00	  		  		  		  	
		  		  		  		  		 		  		  	12/5/00	  	$	7.00	  		  		  		  	
		  		  		  		  		 		  		  	12/5/01	  	$	8.00	  		  		  		  	
		  		  		  		  		 		  		  	12/5/02	  	$	9.00	  		  		  		  	
		  		  		  		  		 		  		  	12/6/03	  	$	10.00	  		  		  		  	
	 Shrager, McDaid, Loftus,
	  	3210	  	32	  	8,989	  	6/15/92	 	12/18/93	  	12/31/03	  	1/1/93	  	$	8.75	  	Op. Ex.	  	Net	  		  	
	     Flum, & Spivey
	  		  		  		  		 		  		  	12/1/94	  	$	9.50	  	Taxes	  	Net	  		  	
		  		  		  		  		 		  		  	12/1/95	  	$	10.25	  		  		  		  	
		  	3209	  	32	  	*972	  	Ltr Agmnt:	 		  		  	12/1/96	  	$	11.00	  	N/A	  		  		  	
		  		  		  	 	  		 		  		  		  			  		  		  		  	
		  		  		  	9,961	  	8/14/92	 		  		  	12/1/97	  	$	14.50	  		  		  		  	
		  		  		  		  		 		  		  	12/1/98	  	$	15.00	  		  		  		  	
		  		  		  		  		 		  		  	12/1/99	  	$	16.00	  		  		  		  	
		  		  		  		  		 		  		  	12/1/00	  	$	17.00	  		  		  		  	
		  		  		  		  		 		  		  	12/1/01	  	$	20.00	  		  		  		  	
		  		  		  		  		 		  		  	12/1/02	  	$	21.00	  		  		  		  	
		  		  		  		  		 		  		  	12/1/03	  	$	22.00	  		  		  		  	
	 Barrack, Rodos & Baclne
	  	3220	  	32	  	4,672	  	2/1/93	 	5/10/93	  	9/30/11	  	5/10/93	  	$	14.57	  	Op. Ex.	  	Net	  		  	
	 Barrack, Rodos & Becine
	  	3300	  	33	  	14,633	  		 		  		  	5/10/96	  	$	15,25	  	Taxes	  	Net	  		  	
		  		  		  	 	  		 		  		  		  			  		  		  		  	
		  		  		  	19,305	  		 		  		  	9/22/01	  	$	15.50	  		  		  		  	
		  		  		  		  		 		  		  	10/1/02	  	$	16.00	  		  		  		  	
		  		  		  		  	  
 1st Amend:
	 		  		  	10/1/03	  	$	17.00	  		  		  		  	
		  		  		  		  	12/26/00	 		  		  	10/1/04	  	$	18.00	  		  		  		  	
		  		  		  		  		 		  		  	10/1/05	  	$	18.75	  		  		  		  	
		  		  		  		  		 		  		  	10/1/06	  	$	19.00	  		  		  		  	
		  		  		  		  		 		  		  	10/1/07	  	$	18.50	  		  		  		  	
		  		  		  		  		 		  		  	10/1/08	  	$	20.25	  		  		  		  	
		  		  		  		  		 		  		  	10/1/09	  	$	21.00	  		  		  		  	
		  		  		  		  		 		  		  	10/1/10	  	$	21.75	  		  		  		  	

 Page 5 of 5 
 Two Commerce Square 
 Rent Roll 
 July 1, 2003 
  

																										
	 	  	 	  	 	  	Square	 	Lease	 	Term	  	Rent	  	 	  	Recoveries	  	Percentage Rent
	 Tenant Name
	  	Suite	  	Floor	  	Feet	 	Date	 	Start	  	End	  	steps	  	    Rent    	  	Charge	  	Base	  	Percent	  	Break
	 Eizan, Fineburg & McCarthy
	  	3410	  	34	  	7,183	 	9/14/93	 	11/1/93	  	7/31/05	  	11/1/93	  	$	9.75	  	Op. Ex.	  	Net	  		  	
		  		  		  		 		 		  		  	11/1/94	  	$	13.00	  	Taxes	  	Net	  		  	
		  		  		  	Effective	 	1st Amend:	 		  		  	9/1/96	  	$	13.50	  		  		  		  	
		  		  		  	9/1/99:	 	5/14198	 		  		  	9/1/99	  	$	10.47	  		  		  		  	
		  		  		  		 		 		  		  	6/1/00	  	$	11.75	  		  		  		  	
		  		  		  	9,506	 	2nd Amend:	 		  		  	8/1/00	  	$	12.00	  		  		  		  	
		  		  		  		 	7/31/99	 		  		  	8/1/01	  	$	12.25	  		  		  		  	
		  		  		  		 		 		  		  	8/1/02	  	$	12.75	  		  		  		  	
		  		  		  		 		 		  		  	8/1/03	  	$	13.00	  		  		  		  	
		  		  		  		 		 		  		  	8/1/04	  	$	13.25	  		  		  		  	
	 P. G Corbin & Co., Inc.
	  	3420	  	34	  	5,127	 	3/7/94	 	6/1/94	  	7/31/04	  	6/1/94	  	$	11.26	  	Op. Ex.	  	Net	  		  	
		  		  		  		 		 		  		  	8/1/01	  	$	12.70	  	Taxes	  	Net	  		  	
		  		  		  		 	1st amend:	 		  		  	8/1/02	  	$	13.70	  		  		  		  	
		  		  		  		 	11/30/98	 		  		  	8/1/03	  	$	14.70	  		  		  		  	
		  		  		  		 	2nd Amend:	 		  		  		  			  		  		  		  	
		  		  		  		 	2/28/01	 		  		  		  			  		  		  		  	
	 Ernst & Young, LLP
	  	2800	  	28	  	22,961	 	Sublease	 	1/1/00	  	8/22/08	  	1/1/00	  	$	12,02	  	Op. Ex	  	Net	  		  	
		  		  		  		 	7/1/00  
	 		  		  	1/1/04  
	  	$  
	13.05  
	  	Taxes  
	  		  		  	
	 Ernst & Young, LLP
	  	3500	  	35	  	14,633	 	12/19/91	 	9/21/92	  	9/30/07	  	9/21/92	  	$	0	  		  		  		  	
	 Ernst & Young, LLP
	  	3600	  	36	  	14,633	 		 		  		  	9/21/93	  	$	7.00	  	Op. Ex.	  	Net	  		  	
	 Ernst & Young, LLP
	  	3700	  	37	  	14,633	 	1st Amend.	 	7/1/00	  	9/29/07	  	9/21/94	  	$	10.50	  	Taxes	  	Net	  		  	
	 Ernst & Young, LLP
	  	3800	  	38	  	14,633	 	9/30/99	 		  		  	9/21/95	  	$	15.50	  		  		  		  	
	 Ernst & Young, LLP
	  	3900	  	39	  	14,833	 		 		  		  	9/21/96	  	$	16.00	  		  		  		  	
	 Ernst & Young, LLP
	  	4000	  	40	  	14,833	 		 		  		  	9/21/97	  	$	20.00	  		  		  		  	
	 Ernst & Young, LLP**
	  	4100	  	41	  	13,998	 		 		  		  	9/21/99	  	$	21.00	  		  		  		  	
		  		  		  	 	 		 		  		  		  			  		  		  		  	
		  		  		  	124,757	 		 		  		  	9/21/00	  	$	22.00	  		  		  		  	
	 Less: NYCL Sublease
	  		  		  	(22,961)	 		 		  		  	9/21/01	  	$	23.00	  		  		  		  	
		  		  		  	 	 		 		  		  		  			  		  		  		  	
	     Original Direct Lease
	  		  		  	101,796	 		 		  		  	9/21/02	  	$	24.00	  		  		  		  	
		  		  		  		 		 		  		  	9/21/04	  	$	26.00	  		  		  		  	
		  		  		  		 		 		  		  	9/21/05	  	$	27.00	  		  		  		  	
		  		  		  		 		 		  		  	9/21/08	  	$	28.00	  		  		  		  	

  

						
	 Total Leased Space
	  	948,531	  	98.3	% 
	 Total Vacant Space
	  	4,745	  	1.7	% 
	 Total Space
	  	953,276	  	100	% 

 SCHEDULE II 
 INTENTIONALLY DELETED 

 SCHEDULE III 
 ORGANIZATIONAL CHART 

 

 

 

 

 

 

 SCHEDULE IV 
  

	
	  

	(Lender)
	
	- and -
	
	  

	(Tenant)
	
	  

	
	 SUBORDINATION, NON-DISTURBANCE
 AND ATTORNMENT AGREEMENT

	  

	
	Dated:
	
	Location:
	
	Section:
	Block:
	Lot:
	County:
	
	 PREPARED BY AND UPON
 RECORDATION RETURN TO:

	
	Messrs. Cadwalader, Wickersham & Taft LLP
	100 Maiden Lane
	 New York, New York 10038
 Attention:

	
	File No.:
	Title No.:

 SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT 
 THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (this “Agreement”) is made as of the
     day of             , 20     by and between MORGAN STANLEY MORTGAGE CAPITAL INC., having an address at 1221 Avenue of the
Americas, 27th Floor, New York, New York 10020
(“Lender”) and                                 , having an address at
                                        
(“Tenant”). 
 RECITALS: 
 A. Lender has made a loan in the approximate amount of $132,000,000.00 to Landlord (defined below), which Loan is given pursuant to the terms and conditions of that certain Loan Agreement dated
            , 2003, between Lender and Landlord (the “Loan Agreement”). The Loan is evidenced by a certain Promissory Note dated
            , 2003, given by Landlord to Lender (the “Note”) and secured by a certain [Mortgage][Deed of Trust] and Security Agreement dated
            , 2003, given by Landlord to Lender (the “Mortgage”), which encumbers the fee estate of Landlord in certain premises described in Exhibit A attached
hereto (the “Property”); 
 B. Tenant occupies a portion of the Property under and pursuant to the provisions of a
certain lease dated             ,      between Philadelphia Plaza-Phase 11, Ltd., a Pennsylvania limited partnership, as landlord (“Landlord”)
and Tenant, as tenant (the “Lease”); and 
 C. Tenant has agreed to subordinate the Lease to the Mortgage and to the
lien thereof and Lender has agreed to grant non-disturbance to Tenant under the Lease on the terms and conditions hereinafter set forth. 
 AGREEMENT: 
 For good and valuable consideration, Tenant and Lender agree as
follows: 
 1. Subordination. Tenant agrees that the Lease and all of the terms, covenants and provisions thereof and all
rights, remedies and options of Tenant thereunder are and shall at all times continue to be subject and subordinate in all respects to the Mortgage and to the lien thereof and all terms, covenants and conditions set forth. in the Mortgage and the
Loan Agreement including without limitation all renewals, increases, modifications, spreaders, consolidations, replacements and extensions thereof and to all sums secured thereby with the same force and effect as if the Mortgage and Loan Agreement
had been executed, delivered and (in the case of the Mortgage) recorded prior to the execution and delivery of the Lease. 
 2.
Non-Disturbance. Lender agrees that if any action or proceeding is commenced by Lender for the foreclosure of the Mortgage or the sale of the Property, Tenant shall not be named as a party therein unless such joinder shall be required by law,
provided, however, such joinder shall not result in the termination of the Lease or disturb the Tenant’s possession or use of the premises demised thereunder, and the sale of the Property in any such action or proceeding shall be made subject
to all rights of Tenant under the Lease except as set

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

 2 

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

 6. Lender to Receive Notices. Tenant shall provide Lender with copies of all written notices sent to Landlord pursuant
to the Lease simultaneously with the transmission of such notices to the Landlord. Tenant shall notify Lender of any default by Landlord under the Lease which would entitle Tenant to cancel the Lease or to an abatement of the rents, additional rents
or other sums payable thereunder, and agrees that, notwithstanding any provisions of the Lease to the contrary, no notice of cancellation thereof or of such an abatement shall be effective unless Lender shall have received notice of default giving
rise to such cancellation or abatement and shall have failed within sixty (60) days after receipt of such notice to cure such default, or if such default cannot be cured within sixty (60) days, shall have failed within sixty (60) days
after receipt of such notice to commence and thereafter diligently pursue any action necessary to cure such default. 
 7.
Notices. All notices or other written communications hereunder shall be deemed to have been properly given (i) upon delivery, if delivered in person or by facsimile transmission with receipt acknowledged by the recipient thereof and
confirmed by telephone by sender, (ii) one (1) Business Day (hereinafter defined) after having been deposited for overnight delivery with any reputable overnight courier service, or (iii) three (3) Business Days after having been
deposited in any post office or mail depository regularly maintained by the U.S. Postal Service and sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows: 
  

							
	If to Tenant:	 	  
	  	
		 	  
	  	
		 	  
	  	
		 	Attention:	 	  
	  	
		 	Facsimile No.	 	  
	  	
		
	If to Lender:	 	 Morgan Stanley Mortgage Capital Inc.
 1221 Avenue of the Americas, 27th Floor
 New York, New York 10020
 Attention: James Flaum and Kevin Swartz
 Facsimile No. (212)
762-9494

  

 3 

			
	With a copy to:	 	Cadwalader, Wickersham & Taft LLP
		 	100 Maiden Lane
		 	 New York, New York 10038
 Attention: John M. Zizzo, Esq.
 Facsimile No. (212) 504-6666

 or addressed as such party may from time to time designate by written notice to the other parties. For purposes of this Section, the term “Business
Day” shall mean a day on which commercial banks are not authorized or required by law to close in New York, New York. 
 Either party by
notice to the other may designate additional or different addresses for subsequent notices or communications. 
 8. Joint and
Several Liability. If Tenant consists of more than one person, the obligations and liabilities of each such person hereunder shall be joint and several. This Agreement shall be, binding upon and inure to the benefit of Lender and Tenant and
their respective successors and assigns. 
 9. Definitions. The term “Lender” as used herein shall include the
successors and assigns of Lender and any person, party or entity which shall become the owner of the Property by reason of a foreclosure of the Mortgage or the acceptance of a deed or assignment in lieu of foreclosure or otherwise. The term
“Landlord” as used herein shall mean and include the present landlord under the Lease and such landlord’s predecessors and successors in interest under the Lease, but shall not mean or include Lender. The term “Property” as
used herein shall mean the Property, the improvements now or hereafter located thereon and the estates therein encumbered by the Mortgage. 
 10. No Oral Modifications. This Agreement may not be modified in any manner or terminated except by an instrument in writing executed by the parties hereto. 
 11. Governing Law. This Agreement shall be deemed to be a contract entered into pursuant to the laws of the State where the Property
is located and shall in all respects be governed, construed, applied and enforced in accordance with the laws of the State where the Property is located. 
 12. Inapplicable Provisions. If any term, covenant or condition of this Agreement is held to be invalid, illegal or unenforceable in any respect, this Agreement shall be construed without such
provision. 
 13. Duplicate Originals; Counterparts. This Agreement may be executed in any number of duplicate originals
and each duplicate original shall be deemed to be an original. This Agreement may be executed in several counterparts, each of which counterparts shall be deemed an original instrument and all of which together shall constitute a single Agreement.
The failure of any party hereto to execute this Agreement, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder. 
  

 4 

 14. Number and Gender. Whenever the context may require, any pronouns used herein
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice versa. 
 15. Transfer of Loan. Lender may sell, transfer and deliver the Note and assign the Mortgage, this Agreement and the other documents executed in connection therewith to one or more investors in the
secondary mortgage market (“Investors”). In connection with such sale, Lender may retain or assign responsibility for servicing the loan, including the Note, the Mortgage, this Agreement and the other documents executed in connection
therewith, or may delegate some or all of such responsibility and/or obligations to a servicer including, but not limited to, any subservicer or master servicer, on behalf of the Investors. All references to Lender herein shall refer to and include
any such servicer to the extent applicable. 
 16. Further Acts. Tenant will, at the cost of Tenant, and without expense
to Lender, do, execute, acknowledge and deliver all and every such further acts and assurances as Lender shall, from time to time, require, for the better assuring and confirming unto Lender the property and rights hereby intended now or hereafter
so to be, or for carrying out the intention or facilitating the performance of the terms of this Agreement or for filing, registering or recording this Agreement, or for complying with all applicable laws. 
 17. Limitations on Lender’s Liability. Tenant acknowledges that Lender is obligated only to Landlord to make the Loan upon the
terms and subject to the conditions set forth in the Loan Agreement. In no event shall Lender or any purchaser of the Property at foreclosure sale or any grantee of the Property named in a deed-in-lieu of foreclosure, nor any heir, legal
representative, successor, or assignee of Lender or any such purchaser or grantee (collectively the Lender, such purchaser, grantee, heir, legal representative, successor or assignee, the “Subsequent Landlord”) have any personal liability
for the obligations of Landlord under the Lease and should the Subsequent Landlord succeed to the interests of the Landlord under the Lease, Tenant shall look only to the estate and property of any such Subsequent Landlord in the Property for the
satisfaction of Tenant’s remedies for the collection of a judgment (or other judicial process) requiring the payment of money in the event of any default by any Subsequent Landlord as landlord under the Lease, and no other property or assets of
any Subsequent Landlord shall be subject to levy, execution or other enforcement procedure for the satisfaction of Tenant’s remedies under or with respect to the Lease; provided, however, that the Tenant may exercise any other right or remedy
provided thereby or by law in the event of any failure by Subsequent Landlord to perform any such material obligation. 
  

 5 

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

			
	 LENDER:

	
	 MORGAN STANLEY MORTGAGE CAPITAL INC.,
 a New York corporation

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
	
	 TENANT:

	
	  

	 a                                 

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

													
	The undersigned accepts and agrees to the provisions of Section 4 hereof:
	
	LANDLORD:
	
	 PHILADELPHIA PLAZA-PHASE II, LP,
 a Pennsylvania limited partnership

		
	 By:
	 	TCS Genpar, LLC, a Delaware limited liability
 company, Its
General Partner

			
		 	By:	 	TCS SPE 1, L.P., a Delaware limited
 partnership, Its Sole
Member

				
		 		 	By:	 	TCS Mezzanine GP, LLC, a Delaware limited
 liability
company, Its General Partner

					
		 		 		 	By:	 	Maguire Thomas Partners-Commerce Square II, Ltd.,
 a
California limited partnership, Its Managing Member

						
		 		 		 		 	By:	 	 Thomas Development Partners-Phase II, Inc., a
 California corporation, Its General Partner

							
		 		 		 		 		 	By:	 	                                       
                            
		 		 		 		 		 	Name:	 	                                       
                            
		 		 		 		 		 	Title:	 	                                       
                            

  

 6 

 ACKNOWLEDGMENTS 
 [INSERT STATE SPECIFIC ACKNOWLEDGMENT] 

 EXHIBIT A 
 LEGAL DESCRIPTION 

 SCHEDULE V 
 SCHEDULE OF AMORTIZED PAYMENTS 

 Two Commerce 
 Amortization Schedule based on June 2003 Split 
  

			
	 MS Loan Amount
	  	132,000,000
	 Balloon Balance
	  	106,445,603

  

							
	 Date
	  	Beginning Balance	  	Principal Payment	  	End Balance
	 August 2003
	  	132,000,000	  	—  	  	132,000,000
	 September 2003
	  	132,000,000	  	307,600.00	  	131,692,400
	 October 2003
	  	131,692,400	  	307,600.00	  	131,384,800
	 November 2003
	  	131,384,800	  	307,600.00	  	131,077,200
	 December 2003
	  	131,077,200	  	307,600.00	  	130,769,600
	 January 2004
	  	130,769,600	  	448,808.97	  	130,320,791
	 February 2004
	  	130,320,791	  	448,808.97	  	129,871,982
	 March 2004
	  	129,871,982	  	448,808.97	  	129,423,173
	 April 2004
	  	129,423,173	  	448,808.97	  	128,974,364
	 May 2004
	  	128,974,364	  	448,808.97	  	128,525,555
	 June 2004
	  	128,525,555	  	448,808.97	  	128,076,746
	 July 2004
	  	128,076,746	  	448,808.97	  	127,627,937
	 August 2004
	  	127,627,937	  	448,808.97	  	127,179,128
	 September 2004
	  	127,179,128	  	448,808.97	  	126,730,319
	 October 2004
	  	126,730,319	  	448,808.97	  	126,281,510
	 November 2004
	  	126,281,510	  	448,808.97	  	125,832,701
	 December 2004
	  	125,832,701	  	448,808.97	  	125,383,892
	 January 2005
	  	125,383,892	  	442,424.00	  	124,941,468
	 February 2005
	  	124,941,468	  	442,424.00	  	124,499,044
	 March 2005
	  	124,499,044	  	442,424.00	  	124,056,620
	 April 2005
	  	124,056,620	  	442,424.00	  	123,614,196
	 May 2005
	  	123,614,196	  	442,424.00	  	123,171,772
	 June 2005
	  	123,171,772	  	442,424.00	  	122,729,348
	 July 2005
	  	122,729,348	  	442,424.00	  	122,286,924
	 August 2005
	  	122,286,924	  	442,424.00	  	121,844,500
	 September 2005
	  	121,844,500	  	442,424.00	  	121,402,076
	 October 2005
	  	121,402,076	  	442,424.00	  	120,959,652
	 November 2005
	  	120,959,652	  	442,424.00	  	120,517,228
	 December 2005
	  	120,517,228	  	442,424.00	  	120,074,804
	 January 2006
	  	120,074,804	  	459,258.80	  	119,615,546
	 February 2006
	  	119,615,546	  	459,258.80	  	119,156,287
	 March 2006
	  	119,156,287	  	459,258.80	  	118,697,028
	 April 2006
	  	118,697,028	  	459,258.80	  	118,237,769
	 May 2006
	  	118,237,769	  	459,258.80	  	117,778,510
	 June 2006
	  	117,778,510	  	459,258.80	  	117,319,252
	 July 2006
	  	117,319,252	  	459,258.80	  	116,859,993
	 August 2006
	  	116,859,993	  	459,258.80	  	116,400,734
	 September 2006
	  	116,400,734	  	459,258.80	  	115,941,475
	 October 2006
	  	115,941,475	  	459,258.80	  	115,482,216
	 November 2006
	  	115,482,216	  	459,258.80	  	115,022,958
	 December 2006
	  	115,022,958	  	459,258.80	  	114,563,699
	 January 2007
	  	114,563,699	  	378,733.33	  	114,184,965

 Two Commerce 
 Amortization Schedule based on June 2003 Split 
  

			
	 MS Loan Amount
	  	132,000,000
	 Balloon Balance
	  	106,445,603

  

							
	 Date
	  	Beginning Balance	  	Principal Payment	  	End Balance
	 February 2007
	  	114,184,965	  	378,733.33	  	113,806,232
	 March 2007
	  	113,806,232	  	378,733.33	  	113,427,499
	 April 2007
	  	113,427,499	  	378,733.33	  	113,048,765
	 May 2007
	  	113,048,765	  	378,733.33	  	112,670,032
	 June 2007
	  	112,670,032	  	378,733.33	  	112,291,299
	 July 2007
	  	112,291,299	  	378,733.33	  	111,912,565
	 August 2007
	  	111,912,565	  	378,733.33	  	111,533,832
	 September 2007
	  	111,533,832	  	378,733.33	  	111,155,099
	 October 2007
	  	111,155,099	  	378,733.33	  	110,776,365
	 November 2007
	  	110,776,365	  	378,733.33	  	110,397,632
	 December 2007
	  	110,397,632	  	378,733.33	  	110,018,899
	 January 2008
	  	110,018,899	  	119,999.70	  	109,898,899
	 February 2008
	  	109,898,899	  	119,999.70	  	109,778,899
	 March 2008
	  	109,778,899	  	119,999.70	  	109,658,900
	 April 2008
	  	109,658,900	  	119,999.70	  	109,538,900
	 May 2008
	  	109,538,900	  	119,999.70	  	109,418,900
	 June 2008
	  	109,418,900	  	119,999.70	  	109,298,901
	 July 2008
	  	109,298,901	  	119,999.70	  	109,178,901
	 August 2008
	  	109,178,901	  	119,999.70	  	109,058,901
	 September 2008
	  	109,058,901	  	119,999.70	  	108,938,901
	 October 2008
	  	108,938,901	  	119,999.70	  	108,818,902
	 November 2008
	  	108,818,902	  	119,999.70	  	108,698,902
	 December 2008
	  	108,698,902	  	119,999.70	  	108,578,902
	 January 2009
	  	108,578,902	  	39,582.70	  	108,539,320
	 February 2009
	  	108,539,320	  	39,582.70	  	108,499,737
	 March 2009
	  	108,499,737	  	39,582.70	  	108,460,154
	 April 2009
	  	108,460,154	  	39,582.70	  	108,420,572
	 May 2009
	  	108,420,572	  	39,582.70	  	108,380,989
	 June 2009
	  	108,380,989	  	39,582.70	  	108,341,406
	 July 2009
	  	108,341,406	  	39,582.70	  	108,301,823
	 August 2009
	  	108,301,823	  	39,582.70	  	108,262,241
	 September 2009
	  	108,262,241	  	39,582.70	  	108,222,658
	 October 2009
	  	108,222,658	  	39,582.70	  	108,183,075
	 November 2009
	  	108,183,075	  	39,582.70	  	108,143,493
	 December 2009
	  	108,143,493	  	39,582.70	  	108,103,910
	 January 2010
	  	108,103,910	  	39,582.70	  	108,064,327
	 February 2010
	  	108,064,327	  	39,582.70	  	108,024,745
	 March 2010
	  	108,024,745	  	39,582.70	  	107,985,162
	 April 2010
	  	107,985,162	  	39,582.70	  	107,945,579
	 May 2010
	  	107,945,579	  	41,666.00	  	107,903,913
	 June 2010
	  	107,903,913	  	41,666.00	  	107,862,247
	 July 2010
	  	107,862,247	  	41,666.00	  	107,820,581

 Two Commerce 
 Amortization Schedule based on June 2003 Split 
  

			
	 MS Loan Amount
	  	132,000,000
	 Balloon Balance
	  	106,445,603

  

							
	 Date
	  	Beginning Balance	  	Principal Payment	  	End Balance
	 August 2010
	  	107,820,581	  	41,666.00	  	107,778,915
	 September 2010
	  	107,778,915	  	41,666.00	  	107,737,249
	 October 2010
	  	107,737,249	  	41,666.00	  	107,695,583
	 November 2010
	  	107,695,583	  	41,666.00	  	107,653,917
	 December 2010
	  	107,653,917	  	41,666.00	  	107,612,251
	 January 2011
	  	107,612,251	  	41,666.00	  	107,570,585
	 February 2011
	  	107,570,585	  	41,666.00	  	107,528,919
	 March 2011
	  	107,528,919	  	41,666.00	  	107,487,253
	 April 2011
	  	107,487,253	  	41,666.00	  	107,445,587
	 May 2011
	  	107,445,587	  	41,666.00	  	107,403,921
	 June 2011
	  	107,403,921	  	41,666.00	  	107,362,255
	 July 2011
	  	107,362,255	  	41,666.00	  	107,320,589
	 August 2011
	  	107,320,589	  	41,666.00	  	107,278,923
	 September 2011
	  	107,278,923	  	41,666.00	  	107,237,257
	 October 2011
	  	107,237,257	  	41,666.00	  	107,195,591
	 November 2011
	  	107,195,591	  	41,666.00	  	107,153,925
	 December 2011
	  	107,153,925	  	41,666.00	  	107,112,259
	 January 2012
	  	107,112,259	  	41,666.00	  	107,070,593
	 February 2012
	  	107,070,593	  	41,666.00	  	107,028,927
	 March 2012
	  	107,028,927	  	41,666.00	  	106,987,261
	 April 2012
	  	106,987,261	  	41,666.00	  	106,945,595
	 May 2012
	  	106,945,595	  	41,666.00	  	106,903,929
	 June 2012
	  	106,903,929	  	41,666.00	  	106,862,263
	 July 2012
	  	106,862,263	  	41,666.00	  	106,820,597
	 August 2012
	  	106,820,597	  	41,666.00	  	106,778,931
	 September 2012
	  	106,778,931	  	41,666.00	  	106,737,265
	 October 2012
	  	106,737,265	  	41,666.00	  	106,695,599
	 November 2012
	  	106,695,599	  	41,666.00	  	106,653,933
	 December 2012
	  	106,653,933	  	41,666.00	  	106,612,267
	 January 2013
	  	106,612,267	  	41,666.00	  	106,570,601
	 February 2013
	  	106,570,601	  	41,666.00	  	106,528,935
	 March 2013
	  	106,528,935	  	41,666.00	  	106,487,269
	 April 2013
	  	106,487,269	  	41,666.00	  	106,445,603

 Two Commerce Square 
 Amortization Schedule 
  

							
	 Date
	  	Beginning Balance	  	Principal Payment	  	End Balance
	 August 2003
	  	132,000,000	  	—  	  	132,000,000
	 September 2003
	  	132,000,000	  	307,600.00	  	131,692,400
	 October 2003
	  	131,692,400	  	307,600.00	  	131,384,800
	 November 2003
	  	131,384,800	  	307,600.00	  	131,077,200
	 December 2003
	  	131,077,200	  	307,600.00	  	130,769,600
	 January 2004
	  	130,769,600	  	448,80897	  	130,320,791
	 February 2004
	  	130,320,791	  	448,808.97	  	129,871,982
	 March 2004
	  	129,871,982	  	448,808.97	  	129,423,173
	 April 2004
	  	129,423,173	  	448,808.97	  	128,974,364
	 May 2004
	  	128,974,364	  	448,808.97	  	128,525,555
	 June 2004
	  	128,525,555	  	448,80897	  	128,076,746
	 July 2004
	  	128,076,746	  	448,808.97	  	127,627,937
	 August 2004
	  	127,627,937	  	448,808.97	  	127,179,128
	 September 2004
	  	127,179,128	  	448,808.97	  	126,730,319
	 October 2004
	  	126,730,319	  	448,808.97	  	126,281,510
	 November 2004
	  	126,281,510	  	448,808.97	  	125,832,701
	 December 2004
	  	125,832,701	  	448,80897	  	125,383,892
	 January 2005
	  	125,383,892	  	442,424.00	  	124,941,468
	 February 2005
	  	124,941,468	  	442,424.00	  	124,499,044
	 March 2005
	  	124,499,044	  	442,424.00	  	124,056,620
	 April 2005
	  	124,056,620	  	442,424.00	  	123,614,196
	 May 2005
	  	123,614,196	  	442,424.00	  	123,171,772
	 June 2005
	  	123,171,772	  	442,424.00	  	122,729,348
	 July 2005
	  	122,729,348	  	442,424.00	  	122,286,924
	 August 2005
	  	122,286,924	  	442,424.00	  	121,844,500
	 September 2005
	  	121,844,500	  	442,424.00	  	121,402,076
	 October 2005
	  	121,402,076	  	442,424.00	  	120,959,652
	 November 2005
	  	120,959,652	  	442,424.00	  	120,517,228
	 December 2005
	  	120,517,228	  	442,424.00	  	120,074,804
	 January 2006
	  	120,074,804	  	459,258.80	  	119,615,546
	 February 2006
	  	119,615,546	  	459,258.80	  	119,156,287
	 March 2006
	  	119,156,287	  	459,258.80	  	118,697,028
	 April 2006
	  	118,697,028	  	459,258.80	  	118,237,769
	 May 2006
	  	118,237,769	  	459,258.80	  	117,778,510
	 June 2006
	  	117,778,510	  	459,258.80	  	117,319,252
	 July 2006
	  	117,319,252	  	459,258.80	  	116,859,993
	 August 2006
	  	116,859,993	  	459,258.80	  	116,400,734
	 September 2006
	  	116,400,734	  	459,258.80	  	115,941,475
	 October 2006
	  	115,941,475	  	459,258.80	  	115,482,216

							
	 November 2006
	  	115,482,216	  	459,258.80	  	115,022,958
	 December 2006
	  	115,022,958	  	459,258.80	  	114,563,699
	 January 2007
	  	114,563,699	  	378,733.33	  	114,184,965
	 February 2007
	  	114,184,965	  	378,733.33	  	113,806,232
	 March 2007
	  	113,806,232	  	378,733.33	  	113,427,499
	 April 2007
	  	113,427,499	  	378,733.33	  	113,048,765
	 May 2007
	  	113,048,765	  	378,733.33	  	112,670,032
	 June 2007
	  	112,670,032	  	378,733.33	  	112,291,299
	 July 2007
	  	112,291,299	  	378,733.33	  	111,912,565
	 August 2007
	  	111,912,565	  	378,733.33	  	111,533,832
	 September 2007
	  	111,533,832	  	378,733.33	  	111,155,099
	 October 2007
	  	111,155,099	  	378,733.33	  	110,776,365
	 November 2007
	  	110,776,365	  	378,733.33	  	110,397,632
	 December 2007
	  	110,397,632	  	378,733.33	  	110,018,899
	 January 2008
	  	110,018,899	  	119,999.70	  	109,898,899
	 February 2008
	  	109,898,899	  	119,999.70	  	109,778,899
	 March 2008
	  	109,778,899	  	119,999.70	  	109,658,900
	 April 2008
	  	109,658,900	  	119,999.70	  	109,538,900
	 May 2008
	  	109,538,900	  	119,999.70	  	109,418,900
	 June 2008
	  	109,418,900	  	119,999.70	  	109,298,901
	 July 2008
	  	109,298,901	  	119,999.70	  	109,178,901
	 August 2008
	  	109,178,901	  	119,999.70	  	109,058,901
	 September 2008
	  	109,058,901	  	119,999.70	  	108,938,901
	 October 2008
	  	108,938,901	  	119,999.70	  	108,818,902
	 November 2008
	  	108,818,902	  	119,999.70	  	108,698,902
	 December 2008
	  	108,698,902	  	119,999.70	  	108,578,902
	 January 2009
	  	108,578,902	  	39,58230	  	108,539,320
	 February 2009
	  	108,539,320	  	39,582.70	  	108,499,737
	 March 2009
	  	108,499,737	  	39,582.70	  	108,460,154
	 April 2009
	  	108,460,154	  	39,582.70	  	108,420,572
	 May 2009
	  	108,420,572	  	39,582.70	  	108,380,989
	 June 2009
	  	108,380,989	  	39,582.70	  	108,341,406
	 July 2009
	  	108,341,406	  	39,582.70	  	108,301,823
	 August 2009
	  	108,301,823	  	39,582.70	  	108,262,241
	 September 2009
	  	108,262,241	  	39,582.70	  	108,222,658
	 October 2009
	  	108,222,658	  	39,582.70	  	108,183,075
	 November 2009
	  	108,183,075	  	39,582.70	  	108,143,493
	 December 2009
	  	108,143,493	  	39,582.70	  	108,103,910
	 January 2010
	  	108,103,910	  	39,582.70	  	108,064,327
	 February 2010
	  	108,064,327	  	39,582.70	  	108,024,745
	 March 2010
	  	108,024,745	  	39,582.70	  	107,985,162
	 April 2010
	  	107,985,162	  	39,582.70	  	107,945,579
	 May 2010
	  	107,945,579	  	41,666.00	  	107,903,913
	 June 2010
	  	107,903,913	  	41,666.00	  	107,862,247
	 July 2010
	  	107,862,247	  	41,666.00	  	107,820,581

							
	 August 2010
	  	107,820,581	  	41,666.00	  	107,778,915
	 September 2010
	  	107,778,915	  	41,666.00	  	107,737,249
	 October 2010
	  	107,737,249	  	41,666.00	  	107,695,583
	 November 2010
	  	107,695,583	  	41,666.00	  	107,653,917
	 December 2010
	  	107,653,917	  	41,666.00	  	107,612,251
	 January 2011
	  	107,612,251	  	41,666.00	  	107,570,585
	 February 2011
	  	107,570,585	  	41,666.00	  	107,528,919
	 March 2011
	  	107,528,919	  	41,666.00	  	107,487,253
	 April 2011
	  	107,487,253	  	41,666.00	  	107,445,587
	 May 2011
	  	107,445,587	  	41,666.00	  	107,403,921
	 June 2011
	  	107,403,921	  	41,666.00	  	107,362,255
	 July 2011
	  	107,362,255	  	41,666.00	  	107,320,589
	 August 2011
	  	107,320,589	  	41,666.00	  	107,278,923
	 September 2011
	  	107,278,923	  	41,666.00	  	107,237,257
	 October 2011
	  	107,237,257	  	41,666.00	  	107,195,591
	 November 2011
	  	107,195,591	  	41,666.00	  	107,153,925
	 December 2011
	  	107,153,925	  	41,666.00	  	107,112,259
	 January 2012
	  	107,112,259	  	41,666.00	  	107,070,593
	 February 2012
	  	107,070,593	  	41,666.00	  	107,028,927
	 March 2012
	  	107,028,927	  	41,666.00	  	106,987,261
	 April 2012
	  	106,987,261	  	41,666.00	  	106,945,595
	 May 2012
	  	106,945,595	  	41,666.00	  	106,903,929
	 June 2012
	  	106,903,929	  	41,666.00	  	106,862,263
	 July 2012
	  	106,862,263	  	41,666.00	  	106,820,597
	 August 2012
	  	106,820,597	  	41,666.00	  	106,778,931
	 September 2012
	  	106,778,931	  	41,666.00	  	106,737,265
	 October 2012
	  	106,737,265	  	41,666.00	  	106,695,599
	 November 2012
	  	106,695,599	  	41,666.00	  	106,653,933
	 December 2012
	  	106,653,933	  	41,666.00	  	106,612,267
	 January 2013
	  	106,612,267	  	41,666.00	  	106,570,601
	 February 2013
	  	106,570,601	  	41,666.00	  	106,528,935
	 March 2013
	  	106,528,935	  	41,666.00	  	106,487,269
	 April 2013
	  	106,487,269	  	41,666.00	  	106,445,603

 SCHEDULE VI 
 DESCRIPTION OF REA 
 Reciprocal Easement and Operating
Agreement and Covenants Agreement, dated September 15, 1990, by and between Maguire – Thomas Partners – Philadelphia Plaza Associates and Maguire Thomas Partners – Philadelphia Plaza – Phase II. 

 SCHEDULE VII 
 APPROVED LEASE FORM 

 TWO COMMERCE SQUARE 
 OFFICE LEASE 
 by and between 
 PHILADELPHIA PLAZA-PHASE II, LP 
 a Pennsylvania limited partnership 
 and 
 Dated 

 TABLE OF CONTENTS 
  

							
	1	  	Definitions	  	1
	2	  	Lease of Premises	  	1
	3	  	Use of Premises	  	1
	4	  	Term	  	1
	5	  	Rent	  	2
		  	5.1	  	Items Comprising Rent	  	2
		  	5.2	  	Time for Payment	  	2
		  	5.3	  	Estimates and Annual Reconciliation of Property Expenses	  	3
		  	5.4	  	Tenant’s Right to Audit Property Expenses	  	3
	6	  	Security Deposit	  	4
	7	  	Abatement for Failure of Building Systems	  	5
	8	  	Tenant Improvements; Allowances	  	5
		  	8.1	  	Tenant Improvements	  	5
		  	8.2	  	Allowances	  	5
		  	8.3	  	Acceptance	  	7
	9	  	Utilities and Services	  	7
		  	9.1	  	Landlord Obligations	  	7
		  	9.2	  	Extraordinary Services	  	8
		  	9.3	  	Telephone	  	9
		  	9.4	  	Interruption in Utility Services	  	9
	10	  	Alterations	  	9
		  	10.1	  	Restriction on Alterations	  	9
		  	10.2	  	Removal and Surrender of Fixtures and Alterations	  	10
		  	10.3	  	Tenant’s Fixtures	  	11
	11	  	Maintenance and Repairs	  	11
		  	11.1	  	Tenant’s Obligations	  	11
		  	11.2	  	Landlord’s Obligations	  	11
		  	11.3	  	Waiver of Liability	  	11
	12	  	Insurance; Waiver of Subrogation	  	11
		  	12.1	  	Liability Insurance	  	11
		  	12.2	  	Property Insurance	  	12
		  	12.3	  	Business Interruption Insurance	  	12
		  	12.4	  	Policy Requirements	  	12
		  	12.5	  	Landlord’s Insurance	  	13
		  	12.6	  	Waiver of Subrogation	  	14
	13	  	Damage or Destruction	  	14
		  	13.1	  	Damage and Restoration	  	14
		  	13.2	  	Termination	  	14
	14	  	Eminent Domain	  	15
		  	14.1	  	Taking	  	15
		  	14.2	  	Temporary Taking	  	15
	15	  	Assignment and Subletting	  	16
		  	15.1	  	Limitation	  	16
		  	15.2	  	Notice of Intent to Assign or Sublet	  	17
		  	15.3	  	Right of Recapture; Landlord’s Consent	  	17
		  	15.4	  	No Release of Tenant’s Obligations	  	18

  

 i 

							
		  	15.5	  	Transfer is Assignment	  	19
		  	15.6	  	Costs	  	19
	16	  	Landlord’s Reserved Rights	  	19
		  	16.1	  	Right of Entry	  	19
		  	16.2	  	Building and Common Areas	  	19
		  	16.3	  	Name	  	20
		  	16.4	  	One Commerce Square	  	20
	17	  	Indemnification and Waiver	  	20
		  	17.1	  	Indemnity by Tenant	  	20
		  	17.2	  	Waiver	  	20
	18	  	Definition of Landlord	  	21
	19	  	Subordination	  	21
		  	19.1	  	Subordination	  	21
		  	19.2	  	Attornment	  	21
		  	19.3	  	Notice from Tenant	  	21
	20	  	Substitution of Premises	  	22
	21	  	Surrender of Premises and Removal of Property	  	22
		  	21.1	  	No Merger	  	22
		  	21.2	  	Surrender of Premises	  	22
		  	21.3	  	Disposal of Property	  	22
	22	  	Holding Over	  	23
	23	  	Defaults and Remedies	  	23
		  	23.1	  	Defaults by Tenant	  	23
		  	23.2	  	Landlord’s Remedies	  	24
		  	23.3	  	Waivers by Tenant	  	25
		  	23.4	  	Right of Landlord to Injunction; Remedies Cumulative	  	25
		  	23.5	  	Right of Distress and Lien	  	25
		  	23.6	  	Waiver of Jury Trial	  	26
		  	23.7	  	Definition of Tenant	  	26
	24	  	Covenant Against Liens	  	26
	25	  	Interest on Tenant’s Obligations; Late Charges	  	26
		  	25.1	  	Interest	  	26
		  	25.2	  	Late Charge	  	26
	26	  	Quiet Enjoyment	  	27
	27	  	Parking Facilities	  	27
	28	  	Brokers	  	27
	29	  	Rules and Regulations	  	28
	30	  	Directory Board and Signage	  	28
		  	30.1	  	Directory Board	  	28
		  	30.2	  	Sins	  	28
	31	  	Termination Option	  	28
	32	  	Expansion Options	  	29
		  	32.1	  	First Expansion Option	  	29
		  	32.2	  	Second Expansion Option	  	30
		  	32.3	  	Personal Option	  	31
	33	  	Rights of First Offer	  	31

  

 ii 

							
		  	33.1	  	First Offer Space	  	31
		  	33.2	  	Personal Option	  	32
	34	  	Option to Renew	  	32
	35	  	General Provisions	  	33
		  	35.1	  	No Waiver	  	33
		  	35.2	  	Landlord’s Right to Perform	  	33
		  	35.3	  	Terms; Headings	  	34
		  	35.4	  	Entire Agreement	  	34
		  	35.5	  	Successors and Assigns	  	34
		  	35.6	  	Notices	  	34
		  	35.7	  	Severability	  	34
		  	35.8	  	Time of Essence	  	35
		  	35.9	  	Governing Law	  	35
		  	35.10	  	    Attorneys’ Fees	  	35
		  	35.11	  	    Light and Air	  	35
		  	35.12	  	    Bankruptcy Prior to Commencement	  	35
		  	35.13	  	    Force Majeure	  	35
		  	35.14	  	    Applicable Laws	  	35
		  	35.15	  	    Estoppel Certificates	  	35
		  	35.16	  	    Examination of Lease	  	36
		  	35.17	  	    Landlord Liability	  	36
		  	35.18	  	    Execution by Tenant	  	36
		  	35.19	  	    Landlord’s Waiver	  	36
	36	  	CONFESSION OF JUDGMENT	  	36
		  	36.1	  	CONFESSION OF JUDGMENT FOR RENT	  	36
		  	36.2	  	CONFESSION OF JUDGMENT FOR POSSESSION	  	37
		  	36.3	  	PROCEEDINGS	  	37
		  	36.4	  	ACKNOWLEDGMENT OF CONFESSION OF JUDGMENT	  	38
	
	 EXHIBIT A - FLOOR PLAN

	
	 EXHIBIT B - GLOSSARY OF DEFINED TERMS

	
	 EXHIBIT C - MEMORANDUM OF LEASE COMMENCEMENT

	
	 EXHIBIT D - TENANT IMPROVEMENT LETTER

	
	 EXHIBIT E - RULES AND REGULATIONS

	
	 EXHIBIT F - HVAC SPECIFICATIONS

	
	 EXHIBIT G - JANITORIAL SPECIFICATIONS

	
	 [OPTIONAL]: EXHIBIT H - NON-DISTURBANCE AGREEMENT

  

 iii 

 LEASE SUMMARY 
 This lease summary is for convenience of reference only. It is not a part of the lease and it should not be used in the interpretation of
any of the provisions of the lease. 
  

			
	Date:	  	                    
		
	Landlord:	  	PHILADELPHIA PLAZA-PHASE II, LP
		
	Tenant:	  	                            

		
	Premises:	  	             rentable square feet (“rsf”) located on the
                     floor Two
		  	Commerce Square, 2001 Market Street, Philadelphia, Pennsylvania 19103
		
	Term:	  	                    , commencing
                    
		  	(see Section 4, page 1)

 Rent (net of Operating

 Expenses and Real Estate 
 Taxes):

  

							
	 Period
	  	Annual Net Rent	  	Monthly Net Rent
	 Lease Year
	  	$	 	  	$	 
	 Lease Year
	  	$	 	  	$	 
	 Lease Year
	  	$	 	  	$	 

     (see
Section 5, page 2) 
  

			
	Estimated Current Year Operating Expenses and Real Estate Taxes:	  	$            /rsf
		
	Estimated Current Year Philadelphia Business Use and Occupancy tax:	  	$            /rsf
		
	Parking Passes:	  	            
		
	Improvement Allowance:	  	$            
		
	Moving Allowance:	  	$            
		
	Security Deposit:	  	$            

  

 S-1 

 Options: 
 Early termination (Section            ) 
 Expansion
(Section            ) 
 Renewal
(Section            ) 
 Right of First Offer
(Section            ) 
  

 S-2 

 TWO COMMERCE SQUARE OFFICE LEASE 
 THIS LEASE is made and entered into as of the      day of
         200    , by and between PHILADELPHIA PLAZA-PHASE II, LP, a Pennsylvania limited partnership (“Landlord”) and
                                        ,
a                                         
(“Tenant”). 
 1 Definitions. All capitalized terms used in this Lease and not specifically defined in the text shall
have the meanings ascribed to them in the glossary attached hereto as Exhibit B and hereby made a part hereof. 
 2 Lease of
Premises. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, those certain premises (the “Premises”) shown on the drawings attached hereto as Exhibit A, located on the
                     floor of the Building. The Premises
contain                     Rentable Square Feet. Landlord also hereby grants to Tenant a non-exclusive license to use the common areas and
public areas within the Property. 
 3 Use of Premises. The Premises shall be used only for office uses in keeping with the
character of a first-class, high-rise, institutional headquarters-grade office building and for no other purpose. Without limitation of the foregoing, Tenant shall not use the Premises, or permit others to use the Premises, for (a) a medical
practice, retail sales operation, retail showroom, classroom (other than for Tenant’s employees), testing center or for non-incidental storage; (b) any use which would violate any Applicable Laws, including, without limitation, those with
respect to hazardous or toxic materials, or the provisions of any governmental permit or document related to the Property; (c) any use which would adversely affect or render more expensive any fire or other insurance maintained by Landlord for
the Building or any of its contents; or (d) any use which would impair or interfere with the Building Systems or the Service Facilities. 
 4 Term. The term of this Lease (the “Term”) shall be
                                , commencing
                                 and ending, without the necessity of any notice
from either party, on the last day of the              [calendar month thereafter] [Lease Year]. Notwithstanding the foregoing, if Tenant takes occupancy for any purpose prior to
                            , the Term shall commence on the date of such occupancy and shall end on
the last day of the              [calendar month thereafter] [Lease Year]. At the request of either party, Landlord and Tenant will execute a memorandum in the form of Exhibit
C attached hereto, setting forth the dates on which the Term begins and ends. 
 OPTIONAL CLAUSE: 
 The term of this Lease (the “Term”) shall be
                    , commencing on the date the Tenant Improvements are Substantially Complete and ending, without the necessity of any
notice from either party, on the last day of the              calendar month after such date. At the request of either party, Landlord and Tenant will execute a memorandum in the
form of Exhibit C attached hereto, setting forth the dates on which the Term begins and ends. The date on which the term begins is hereinafter referred to as the “Commencement Date.” 
  

 1 

 5 Rent. 
 5.1 Items Comprising Rent. In consideration for this Lease, effective as of the Commencement Date, Tenant agrees to pay Landlord the following (hereinafter collectively referred to as
“Rent”): 
 (a) Monthly net Rent in accordance with the following table: 
  

							
	Period	 	Annual Net Rent/Sq. Ft.	 	Annual Net Rent	 	Monthly Net Rent
	     
	 	 	 	 	 	 
	     
	 	 	 	 	 	 
	 	 	 	 	 	 	 

 (b) Tenant’s Pro Rata Share of (i) Operating Expenses, and (ii) Real Property Taxes, as estimated by Landlord in accordance with Section 5.3 below. 
 (c) The cost of electricity consumed by Tenant in the Premises. The Premises will be separately metered and Landlord will bill Tenant based
upon such metered usage at the Building’s high tension rate without any mark-up. 
 (d) Any costs or expenses for goods,
services or utilities in excess of those which Landlord is required to supply pursuant to this Lease, including, without limitation, replacement lamps and ballasts within the Premises, and use of the freight elevator, which are (i) directly
attributable to Tenant’s use or occupancy of the Premises, and (ii) not otherwise included in Operating Expenses. 
 (e) Any sums which Tenant becomes obligated to pay as a result of Tenant’s failure to comply with any of the terms and provisions of this Lease. 
 (f) Tenant’s Pro Rata Share of the City of Philadelphia Business Use and Occupancy Tax applicable to the Property, which Tenant shall pay to Landlord along with each monthly installment of Rent, and
which Landlord shall forward to the Department of Revenue of the City of Philadelphia. 
 (g) Taxes, if any, now or hereafter
imposed upon or attributable to Tenant’s personal property located in or about the Premises, or any leasehold improvements (including Tenant Improvements and Alterations) installed in the Premises. 
 5.2 Time for Payment. Rent due under subparagraphs (a), (b) and (f) above shall be payable in advance on the first
day of each calendar month without prior notice or demand, except that Rent for the first month of the Term shall be due and payable upon Tenant’s execution of this Lease. As a convenience only, Landlord will endeavor to invoice Tenant monthly
for such Rent. All other sums due from Tenant, including electric bills pursuant to subparagraph (c) above, shall be payable upon presentation unless this Lease specifically

  

 2 

 
provides otherwise. All Rent shall be payable in United States dollars at the office of Landlord or such other place as Landlord may designate, without deduction or offset of any kind. Rent for
any partial calendar month during the Term shall be prorated on a per diem basis based on a 360 day year. 
 5.3 Estimates
and Annual Reconciliation of Property Expenses. Prior to the commencement of each calendar year, or as soon thereafter as possible, Landlord shall furnish to Tenant a statement containing Landlord’s reasonable estimate of Operating
Expenses and Real Property Taxes (collectively, “Property Expenses”) for such year and a calculation of Tenant’s Pro Rata Share thereof. Thereafter, Tenant shall pay to Landlord one-twelfth of the amount of its Pro Rata Share on each
monthly Rent payment date (commencing on January 1) until further adjustment pursuant to this paragraph. If Landlord’s statement is furnished after the start of the year, then on the next monthly Rent payment date after it receives
Landlord’s statement, Tenant shall also pay the amounts allocable to the prior months in that year. Following each year, Landlord shall furnish to Tenant a statement prepared by a firm of certified public accountants selected by Landlord
showing the actual Property Expenses during the previous year, and Landlord shall compute any charge or credit to Tenant necessary to adjust Rent previously paid by Tenant to reflect the actual Property Expenses. If such statement and computation
reveal an underpayment, Tenant shall within 30 days pay to Landlord an amount equal to such underpayment (whether or not this Lease has expired or been terminated), and if such statement and computation show an overpayment, Landlord shall credit the
next monthly rental payment of Tenant with an amount equal to such overpayment, or, if the Term has expired, refund the overpayment to Tenant. 
 OPTIONAL CLAUSE: 
 5.4 Tenant’s Right to Audit Property Expenses. Tenant shall have the right
to audit Landlord’s books and records with respect to Property Expenses provided (a) such audit shall be made by a national or regional firm of certified public accountants, in accordance with generally accepted accounting principles, in
Landlord’s offices at the Building, but at Tenant’s sole cost and expense; (b) such accounting firm must be engaged on an hourly basis for its services rather than on a contingency fee basis; (c) Tenant shall give Landlord at
least 30 days’ notice prior to arrival of the auditors; (d) the audit will cover only the most recently expired calendar year, and Landlord will not be obligated to provide information with respect to previous years; (e) the audit
shall not unreasonably interfere with the normal operations of Landlord’s manager for the Property; and (f) Tenant and its accountants shall keep all information disclosed by the audit as confidential and shall disclose such information to
no other party except as may be required by subpoena or other legal process. 
 If such audit reveals that for such calendar
year the Rent paid by Tenant on account of Property Expenses exceeded the sum which Tenant should have paid, Landlord shall credit such excess payments against Tenant’s next monthly payment due in accordance with the terms of this Lease, or, if
this Lease has expired, Landlord shall promptly refund such excess payment to Tenant. Additionally, if such audit reveals that for such calendar year the Rent paid by Tenant on account of Property Expenses exceeded by more than 5% the sum which
Tenant should have paid, Landlord shall promptly pay Tenant for the cost of such audit upon presentation of such accounting agency’s invoice therefor; provided, however, that regardless of 
  

 3 

 
the total sum of such invoice, Landlord shall not be obligated to pay more than $1,500.00 on account thereof; further provided, however, that if such audit reveals that for
such calendar year the Rent paid by Tenant on account of Property Expenses was within 5% of the sum which Tenant should have paid, Tenant, as additional Rent, shall promptly pay Landlord for the reasonable actual costs incurred by Landlord in
connection with such audit upon presentation of an invoice therefor, but in no event shall Tenant be obligated to pay more than $1,500 on account thereof. 
 6 Security Deposit. 
 (a) Tenant shall pay Landlord upon
execution and delivery hereof by Tenant the amount of $         (the “Security Deposit”) as security for the full and faithful performance of each of the terms hereof by Tenant. Landlord
shall [not] be required to keep the Security Deposit separate from its general funds and Tenant shall [not] be entitled to interest thereon. If an Event of Default occurs, Landlord may, but shall not be required to, use, apply or retain all or any
part of the Security Deposit for the payment of any Rent or any other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of such Event of Default or to compensate Landlord for any
other loss or damage which Landlord may suffer by reason of such Event of Default, including, without limitation, costs and attorneys’ fees incurred by Landlord to recover possession of the Premises. If any portion of the Security Deposit is so
used or applied, Tenant shall, upon demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount and Tenant’s failure to do so shall constitute an Event of Default. 
 (b) Tenant acknowledges that Landlord has the right to transfer or mortgage its interest in the Building and in this Lease, and Tenant
agrees that in the event of any such transfer or mortgage, Landlord shall have the right to transfer or assign the Security Deposit to the transferee or mortgagee. Upon such transfer or assignment of the Security Deposit, Landlord shall be deemed
released by Tenant from all liability or obligation for the return of the Security Deposit and Tenant shall look solely to such transferee or mortgagee for the return of the Security Deposit. If Tenant shall fully and faithfully perform every
provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within 30 days following the expiration
of the Term and surrender of possession of the Premises to Landlord. Tenant hereby waives all provisions of law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy
defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises; rather, Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable,
caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. 
 ALTERNATIVE PARAGRAPH: (Letter of Credit)

 (c) In lieu of cash, Tenant may elect to deliver an irrevocable letter of credit, in form and substance satisfactory to
Landlord, in the amount of $         issued by a Philadelphia-based bank satisfactory to Landlord in the exercise of reasonable business judgment, as the Security Deposit. Such letter of credit shall be
renewed or replaced with a 
  

 4 

 
substantially identical letter of credit annually, at least ten (10) business days prior to expiration of the then current letter of credit. Instead of a replacement or renewal of the letter
of credit, Tenant may deposit cash with Landlord, in which event subparagraphs (a) and (b) above will apply. Failure to deliver a renewal or replacement letter of credit, or cash in lieu thereof, in a timely manner, shall be an Event of
Default. After the              year of the Term, the amount of the renewal or replacement letter of credit shall be reduced to
$        . 
 7 Abatement for Failure of Building Systems. If the Premises
or any portion thereof are rendered untenantable and are not used by Tenant for a period of five consecutive business days or 12 business days in any 12-month period (the “Eligibility Period”) as a result of failure in the water, sewerage,
air conditioning, heating, ventilating or electrical systems of the Property, Tenant’s Rent shall be reduced and abated after the expiration of the Eligibility Period for such time as the Premises (or portion thereof, as the case may be) remain
untenantable and are not used by Tenant, in the same proportion as the Rentable Area rendered untenantable bears to the total Rentable Area of the Premises; provided, however, there shall be no abatement of Rent: (a) if Landlord
provides to Tenant other space in the Building which is reasonably suited for the temporary operation of Tenant’s business; (b) if the failure is caused in whole or in part by the negligent or willful acts or omissions of Tenant, its
agents, employees, contractors, licensees or invitees; or (c) to the extent that the Rent abatement is not actually covered by rental loss insurance, so long as such coverage is available on commercially reasonable terms. Notwithstanding the
foregoing, during any Rent abatement period under this Lease, Tenant shall pay Landlord as Rent Landlord’s normal charges for all services and utilities provided to and used by Tenant during the period of the Rent abatement. 
 8 Tenant Improvements; Allowances. 
 8.1 Tenant Improvements. Tenant shall be entitled to make Tenant Improvements to the Premises prior to the Commencement Date, in accordance with, and subject to, the terms and
conditions of the Tenant Improvement Letter attached hereto as Exhibit D. 
 8.2 Allowances. Subject
to Exhibit D, Landlord shall make available to Tenant up to $         (the “Tenant Fund”) (calculated as $         for each of
                     Rentable Square Feet) to be used solely for the following purposes: 
 (a) relocation and moving expenses; 
 (b) space planning, architectural and engineering expenses related to the Tenant Improvements; and 
 (c) purchase, installation and construction of Tenant Improvements which constitute permanent improvements to the Premises (including, without limitation, voice and data cabling, and carpeting) but not
furniture, furnishings or equipment or other personal property. 
 Subject to Exhibit D, Tenant may divide the Tenant Fund among
the foregoing expenses in such amounts as Tenant elects. 
  

 5 

 Amounts payable to Tenant for relocation and moving expenses pursuant to subparagraph
(a) above shall be paid by Landlord to Tenant within 30 days after presentation by Tenant to Landlord of receipted bills for such expenses. Amounts payable pursuant to subparagraphs (b) and (c) above shall be governed by the
provisions of Exhibit D, including, without limitation, paragraph 3 thereof. 
 If the Tenant Fund is insufficient to
defray the entire cost of the items referred to in subparagraphs (a), (b) and (c) above, the balance shall be paid entirely by Tenant. Landlord has no obligation to advance more than $        
for such items under any circumstances. 
 OPTIONAL CLAUSE: 
 If and to the extent Tenant does not use the entire Tenant Fund for expenses incurred in connection with its initial occupancy of the Premises, Landlord will make the unused balance available to Tenant
for (a) additional Tenant Improvements, made after the Commencement Date, but otherwise in accordance with Exhibit D; or (b) payment of Rent, up to a maximum of $        ; or
(c) any combination of the foregoing, provided, however, Landlord shall not be required to make any funds available unless it has received Tenant’s request therefor by
                            . 
 Landlord will retain any portion of the Tenant Fund which is not disbursed or committed by
                            , and shall have no further obligation to disburse such retained funds to
Tenant. 
 OPTIONAL CLAUSE: 
 In addition to the foregoing, Landlord will make available to Tenant the sum of $         at the end of the
         month of the Term, provided Tenant is not then in default hereunder, such sum to be used exclusively for painting, carpeting, and similar refurbishment of the Premises. Such funds will be
advanced in accordance with and subject to the applicable terms and provisions of Exhibit D. 
 OPTIONAL CLAUSE (TURNKEY ALTERNATIVE
TO 8.1 AND 8.2): 
 Landlord shall construct, at its sole cost and expense, the physical improvements in the Premises,
including, without limitation, partitions, wiring, floor coverings, wall coverings, outlets, ceilings, lighting and millwork (the “Tenant Improvements”) as specifically shown in Tenant’s Plans (as defined in Exhibit D).

 Landlord shall not materially deviate from Tenant’s Plans without the prior written consent of Tenant;
provided, however, that Landlord may (i) make “field changes” to the extent required by any Applicable Law, so long as such changes do not materially affect the Tenant Improvements and Tenant is promptly notified of such
changes, and (ii) substitute materials of equal or better quality upon written notice to Tenant of Landlord’s intention to do so, specifying in such notice the nature of such substitution and that the substitute materials are of equal or
better quality than those specified in Tenant’s Plans. 
  

 6 

 “Substantial Completion” (or “Substantially Complete”) shall mean the
condition of the Premises when Landlord has (i) completed construction of the Tenant Improvements in substantial compliance with Tenant’s Plans (exclusive of any equipment, furniture or fixtures to be installed by Tenant and exclusive of
any items on the Punchlist, as hereinafter defined), as certified by Landlord’s architect, and (ii) delivered to Tenant a statement of occupancy (or the equivalent) for the Premises from the Department of Licenses and Inspections of the
City of Philadelphia. On the date of Substantial Completion, Landlord and Tenant shall jointly inspect the Premises and shall prepare a list of any incomplete or deficient portions of the Tenant Improvements (the “Punchlist”). Landlord
shall, at its sole cost and expense, promptly and diligently proceed to cause completion of the Punchlist items. 
 If the date
of Substantial Completion is delayed by any failure of Tenant to comply with its obligations under Exhibit “D”, then the Commencement Date shall be the date the Premises would have been Substantially Complete but for Tenant’s delay.
This paragraph shall not be construed to limit any other damages for which Tenant may be liable in the event of its failure to comply with its obligations under Exhibit “D”. 
 8.3 Acceptance. In consideration for Landlord’s agreement to make funds available for Tenant Improvements as set forth
above, Tenant agrees to accept the Premises in their present physical condition, without any obligation by Landlord to paint, redecorate, or perform any other work in, on or about the Premises at any time, except as otherwise specifically set forth
in this Lease. Except as specifically set forth herein, Landlord makes no warranty or representation of any kind, expressed or implied, with respect to the Premises or the Building or any other portion of the Property. 
 9 Utilities and Services. 
 9.1 Landlord Obligations. Landlord shall furnish the following services and utilities to the Premises, the cost of which shall be included in Operating Expenses except as specifically
provided otherwise herein, during Normal Working Hours, subject to reasonable rules and regulations from time to time. 
 (a)
HVAC. Landlord shall furnish heating, ventilation and air conditioning (“HVAC”) in accordance with the specifications attached hereto as Exhibit F and made a part hereof. Tenant shall not, without Landlord’s prior
written consent, use any equipment or lighting or occupy the Premises with personnel so that heat generated by such use or occupancy affects the ambient temperature otherwise maintained in the Premises by the HVAC system under normal operation. In
the event such use or occupancy affects the ambient temperature, Landlord shall have the right to install any machinery or equipment which Landlord reasonably deems necessary to restore temperature balance, including without limitation,
modifications to the standard air conditioning equipment, and the cost thereof including the cost of installation and any additional cost of operation and maintenance incurred thereby, shall be paid by Tenant to Landlord upon demand by Landlord.
Landlord makes no representation with respect to the adequacy or fitness of the HVAC equipment in the Building to maintain temperatures which may be required for, or because of, any equipment of Tenant, and Landlord shall have no liability for loss
or damage in connection therewith. 
  

 7 

 (b) Electricity. Landlord shall furnish to the Premises electric current for HVAC and
an average of five watts of electric current (connected load) per square foot of Rentable Area for power and lighting. Without the prior written consent of Landlord, which Landlord may refuse in its sole discretion, Tenant shall not install or
operate any machinery, appliances or equipment in the Premises which will in any way increase the amount of electricity usually furnished or supplied for use of the Premises as general office space; nor connect any apparatus, device, machinery,
appliances or equipment (except through existing electrical outlets in the Premises), for the purpose of using electric current. 
 (c) Elevators. Landlord shall furnish passenger elevator service to the Premises during Normal Working Hours and freight elevator service to the Premises during Normal Working Hours, excluding Saturdays. Such service shall be
provided in common with service to other parts of the Building. During all other hours, Landlord shall furnish passenger elevator cab service in the elevator bank serving the Premises on an as needed basis, and, by prior arrangement with the Manager
(and at Tenant’s sole cost), freight elevator service. 
 (d) Water. Landlord shall make available water for normal
lavatory and drinking purposes to be drawn from the public lavatory in the core of the floor on which the Premises are located. 
 (e) Janitorial. Landlord shall provide janitorial service in accordance with the specifications attached hereto as Exhibit G and made a part hereof. Landlord shall not be required to provide more than Building standard
janitorial services for portions of the Premises used for storage, mailroom, kitchen or other non-office purposes, nor shall Landlord be required to provide janitorial services to areas obstructed or locked by Tenant, or used as a lavatory, other
than the lavatory rooms shown on the floor plan of the Premises attached hereto as Exhibit A. 
 (f)
Access. Landlord shall furnish Tenant’s employees access to the Premises and the Garage on a seven-day per week, 24-hour per day basis, subject to compliance with such reasonable security measures and reasonable rules and
regulations as shall from time-to-time be in effect for the Building and/or the Property, and Landlord’s maintenance activities. 
 9.2 Extraordinary Services. Landlord may impose a reasonable direct charge and establish reasonable rules and regulations for any of the following: (a) the use of any HVAC or electric current by Tenant at any time other
than during Normal Working Hours; (b) additional or unusual janitorial services requested by Tenant or required because of any non-building standard improvements in the Premises, the carelessness of Tenant, the nature of Tenant’s business
(including the operation of Tenant’s business other than during Normal Working Hours); (c) the removal of any refuse and rubbish from the Premises except for discarded material placed in wastepaper baskets and left for emptying as an
incident to Landlord’s normal cleaning of the Premises; and (d) any other services including, without limitation, freight elevator service, provided to Tenant at any time other than during Normal Working Hours (excluding Saturdays). The
foregoing direct charges shall be payable by Tenant as Rent on the next Rent payment date after submission of an invoice therefor by Landlord. 
  

 8 

 9.3 Telephone. Tenant shall make its own arrangements for telephone and/or
other communication services, and Landlord shall have no liability or obligation in connection therewith other than to provide reasonable access to the Building telephone closets. 
 9.4 Interruption in Utility Services. Landlord shall not be liable for damages or otherwise for failure, stoppage or
interruption of any services or utilities or unavailability of access to the Property, nor shall the same be construed either as an eviction of Tenant, or result in an abatement of Rent (except as provided in Article 7), when such failure is caused
by acts of God, accidents, breakage, repairs, strikes, lockouts, other labor disputes, other force majeure events, or by the making of repairs, alterations or improvements to the Premises or the Building, or the limitation, curtailment, rationing or
restriction on supply of fuel, steam, water, electricity, labor or other supplies or any other condition beyond Landlord’s reasonable control, including, without limitation, any governmental energy conservation program or legal requirement. If
any governmental entity imposes mandatory or voluntary controls or guidelines on Landlord or the Property or any part thereof, relating to the services provided by Landlord, or the reduction of emissions, Landlord may make such alterations to the
Building or any other part of the Property related thereto and take such other steps as are necessary to comply with such controls and guidelines, the cost of such compliance and alterations shall be included in Operating Expenses, and Landlord
shall not be liable therefor, for damages or otherwise, nor shall the same be construed either as an eviction of Tenant, or result in an abatement of Rent. 
 10 Alterations. 
 10.1 Restriction on Alterations.
Except for any Tenant Improvements specifically permitted by this Lease, Tenant shall make no alteration, repair, addition or improvement in, to or about the Premises (collectively, “Alterations”), without the prior written consent of
Landlord and Landlord may impose as a condition to such consent such requirements as Landlord, in its reasonable discretion, may deem necessary or desirable, including, without limitation, some or all of the following: (a) the right to approve
the plans and specifications for any work; (b) the right to require supplemental insurance satisfactory to Landlord and naming Landlord and Manager as an additional insured; (c) the right to require waivers of liens prior to commencement
of work and/or unconditional lien releases for work completed; (d) requirements as to the manner in which or the time or times at which work may be performed; and (e) the right to approve the contractor or contractors to perform
Alterations. 
 All Alterations (including cosmetic improvements) shall be compatible with a first class office building complex
and completed in accordance with Landlord’s requirements and all applicable rules, regulations and requirements of governmental authorities and insurance carriers. The outside appearance, character or use of the Building shall not be affected
by any Alteration, and no Alteration shall materially weaken or impair the structural strength of the Building or create the potential for unusual expenses to be incurred upon the removal of the Alterations and the restoration of the Premises upon
the termination of this Lease. No part of the Building outside of the Premises shall be materially, adversely affected by any Alteration; the proper functioning of the Building Systems and Service Facilities shall not be materially, adversely
affected by any Alteration and there shall be no Alteration which materially, adversely interferes with Landlord’s free access to the Building Systems or materially, adversely interferes with the moving of Landlord’s equipment to or from
the enclosures containing the Building 
  

 9 

 
Systems. Tenant shall not be permitted to install and make part of the Premises any materials, fixtures or articles which are subject to liens, conditional sales contracts or chattel mortgages
other than trade fixtures, furniture and equipment. Tenant shall reimburse Landlord for (a) its reasonable expenses in reviewing plans and inspecting all Alterations to assure compliance with Landlord’s requirements; and (b) any
out-of-pocket costs for engineering review reasonably incurred by Landlord. Landlord will not expressly or implicitly covenant or warrant that any plans or specifications submitted by Tenant are safe or that the same comply with Applicable Laws.
Further, Tenant shall indemnify, protect, defend and hold Landlord harmless from any loss, cost or expense, including reasonable attorneys’ fees and costs, incurred by Landlord as a result of any defects in design, materials or workmanship
resulting from Alterations, except to the extent such defects are caused by the negligence of Landlord, its agents, servants or employees. If requested by Landlord, Tenant shall provide Landlord with copies of all contracts, receipts, paid vouchers,
and any other documentation (including, without limitation, “as-built” drawings, air/water balancing reports, permits and inspection certificates) in connection with the construction of such Alterations. Tenant shall promptly pay all costs
incurred in connection with all Alterations. Any increase in any tax, assessment or charge levied or assessed as a result of any Alterations shall be payable by Tenant. 
 OPTIONAL CLAUSE: 
 Notwithstanding anything in this Section 10.1 to the
contrary, Tenant shall have the right to make cosmetic improvements to the interior of the Premises (such as painting, carpeting and wallpapering) without Landlord’s prior consent, provided that: (i) the cosmetic improvements do not impair
the structural integrity, operation or value of the Building; (ii) such improvements do not cost in excess of [$10,000.00]; and (iii) Tenant shall, prior to the commencement of the work, deliver to Landlord waivers of liens and proofs of
contractor insurance, in form reasonably acceptable to Landlord, from all contractors performing such work and plans indicating the nature of the proposed improvements. 
 10.2 Removal and Surrender of Fixtures and Alterations. All Alterations and all Tenant Improvements installed in the Premises pursuant to Exhibit D, which are attached to, or built
into, the Premises, shall at the end of the Term become the property of Landlord and shall be surrendered with the Premises; provided, however, Landlord may, by written notice to Tenant at least 30 days prior to the end of the Term,
require Tenant to remove any Alterations or Tenant Improvements designated by Landlord to be removed at the time of Landlord’s approval thereof (other than the initial Tenant Improvements constructed in the Premises pursuant to Exhibit
D) and any other improvements not generally found in a first-class office building, and to repair any damage to the Premises, the Building and any other part of the Property caused by such removal, all at Tenant’s sole expense and to the
reasonable satisfaction of Landlord. With respect to Tenant Improvements installed in the Premises pursuant to Exhibit D, Landlord and Tenant shall each own undivided interests in such Tenant Improvements to the extent, in the case of
Landlord, of the Tenant Improvement Allowance paid to or on behalf of Tenant, and, in the case of Tenant, the portion of the cost of such Tenant Improvements paid for by Tenant For purposes of the insurance requirements of this Lease, Tenant shall
be deemed to have an insurable interest in all of the Tenant Improvements and Alterations in the Premises, as between Landlord and Tenant, but the same shall be surrendered with the Premises on termination of this Lease, as set forth above.

  

 10 

 10.3 Tenant’s Fixtures. Tenant shall have the right to install
trade fixtures, machinery and equipment (excluding Alterations, which are governed by Sections 10.1 and 10.2 hereof) required by Tenant or used by it in its business (collectively, “Tenant’s Property”), provided that same do not
exceed applicable safe floor loads or otherwise impair the structural strength of the Building and further provided that Tenant’s Property shall be limited to items normally used for the permitted usage of the Premises. Except to the extent (if
any) paid for by Landlord, in cash or by way of any credit or allowance provided hereunder, Tenant’s Property shall be and remain Tenant’s personal property and shall be removed by Tenant prior to the end of the Term. Tenant shall repair
and restore any damage to the Premises and Building caused by such installation or removal. 
 11 Maintenance and Repairs.

 11.1 Tenant’s Obligations. Tenant shall, at Tenant’s sole expense, keep the Premises and every
part thereof clean and in good condition and repair, except for Landlord’s obligations specifically set forth in this Lease. 
 11.2 Landlord’s Obligations. Subject to Article 13 (“Damage or Destruction”), Landlord shall repair and maintain with reasonable diligence after notice thereof from Tenant, defects in, and damage to, the
Building Systems installed by Landlord and serving or located on the Premises. If such maintenance and repair is required by the act, neglect, misuse, fault or omission of any duty of Tenant, its agents, employees, contractors, licensees or
invitees, Tenant shall pay the cost of such maintenance and repairs. 
 11.3 Waiver of Liability. Landlord
shall not be liable for any injury to persons or property arising from any repairs, maintenance, alteration or improvement in or to any portion of the Property or the Building, including the Premises, or any personal property located therein, unless
Landlord is negligent in performing such repairs, maintenance, alterations or improvements, and such negligence is the sole proximate cause of the loss or damage. Further, neither Landlord nor its agents or employees shall be liable for any damage
to persons or property caused by other tenants or other persons in or about the Property, or for any consequential damages arising out of any loss of use of the Premises or any equipment or facilities therein by Tenant or any person claiming through
or under Tenant. Tenant waives and releases its right (if any) to make repairs at Landlord’s expense under Applicable Law. 
 12
Insurance; Waiver of Subrogation. Tenant shall at all times during the Term (and prior to the Term with respect to any activity of Tenant at the Property) and at its own cost and expense procure and continue in force insurance
as follows: 
 12.1 Liability Insurance. Workers’ compensation insurance, employer’s liability
insurance and commercial general liability insurance and, if necessary, commercial umbrella or excess liability insurance adequate to protect Tenant and Landlord against liability for injury to or death of any person or damage to property in
connection with the use, operation or condition of the Premises. The limits of liability under the workers’ compensation policy shall be at least equal to the statutory requirements therefor, and the limits of liability under the
employer’s liability policy shall be at least $1,000,000.00. The commercial general liability policy shall be in an amount of not less than $2,000,000.00 per occurrence and in the aggregate. Not more 
  

 11 

 
frequently than once each two years, if, in the opinion of Landlord’s mortgagee or of the independent insurance broker retained by Landlord, the amount of employer’s liability or
commercial general liability coverage at that time is not adequate, Tenant shall increase the insurance coverage as reasonably required by Landlord, provided, however, such increases shall not exceed commercially reasonable insurance
coverages carried by tenants leasing similar first-class Center City Philadelphia high-rise office space. 
 12.2 Property
Insurance. Insurance covering all leasehold improvements (including, but not limited to, all Tenant Improvements and Alterations) trade fixtures, merchandise and other personal property from time to time in, on or upon the Premises,
in an amount not less than 100% of their full replacement cost from time to time during the Term, providing protection against any peril included within the classification “All Risk Coverage,” together with insurance against sprinkler
water damage (including earthquake caused sprinkler damage), vandalism and malicious mischief. The proceeds of such insurance shall be used for the repair or replacement of the property so insured. Upon termination of this Lease due to any casualty,
the proceeds of such insurance shall be paid to Landlord and Tenant, as their interests appear in the insured property. The full replacement value of the items to be insured under this paragraph shall be determined by Tenant and acknowledged by the
company issuing the insurance policy by the issuance of an agreed amount endorsement at the time the policy is initially obtained, and shall be increased from time to time if and to the extent necessary to maintain full replacement value coverage.

 12.3 Business Interruption Insurance. Loss of income or business interruption insurance in such amounts as will
reimburse Tenant for direct and indirect loss of earnings attributable to all perils commonly insured against by prudent tenants or attributable to prevention of access to the Premises or to the Building as a result of such perils. 
 12.4 Policy Requirements. 
 (a) All insurance required to be carried by Tenant hereunder shall be issued by responsible insurance companies, qualified to do business in the Commonwealth of Pennsylvania and reasonably acceptable to
Landlord. Insurance companies rated A VII or better by Best’s Insurance Reports shall be deemed acceptable. 
 (b) Each
policy shall be written on an “occurrence” basis and shall have a deductible or deductibles, if any, which do not exceed the deductible amount(s) generally maintained by similarly situated tenants in first-class, high-rise office buildings
in the central business district of downtown Philadelphia. Each policy shall name Landlord, Manager, and Landlord’s lender and their respective members, managers, partners, officers, directors, agents and employees as additional insureds, as
their interests may appear, and the commercial general liability policy shall also name the Manager as an additional insured. Certificates evidencing the existence and amounts of such insurance shall be delivered to Landlord by Tenant at least 30
days prior to Tenant’s occupancy of any portion of the Premises, and in any event, prior to any activity of Tenant in the Building. No such policy shall be cancelable except after 30 days’ written notice to Landlord. Tenant shall provide
Landlord with originals of the endorsement(s) to Tenant’s commercial general liability insurance policy and all risks property insurance policies which include the following exact wording: 
 It is agreed that [TBD], and their respective members, managers, partners, officers, directors, affiliates, agents and employees are
additional insureds. The coverage under this policy is primary insurance with respect to liability arising out of the ownership, maintenance or use of the premises leased to
                                         
        [Tenant’s name]. 
  

 12 

 Tenant shall, at least 30 days prior to the expiration of any such policy, furnish Landlord with renewals or
“binders” thereof. Should Tenant at any time neglect or refuse to provide the insurance required by this Lease, or should such insurance be canceled, Landlord shall have the right, but not the duty, to procure the same and Tenant shall pay
the cost thereof as Rent promptly upon Landlord’s demand. Tenant will deliver copies of its policies and endorsements to Landlord within 20 days after Landlord’s written request therefor. 
 (c) The policies of insurance required to be carried by Tenant shall be primary and non-contributing with, and not in excess of any other
insurance available to Landlord. The cost of defending any claims made against any of the policies required to be carried by Tenant shall not be included in any of the limits of liability for such policies. Tenant shall immediately report to
Landlord, and promptly thereafter confirm in writing, the occurrence of any injury, loss or damage incurred by Tenant, or Tenant’s receipt of notice or knowledge of any claim by a third party or any occurrence that might give rise to such
claims. It shall be the responsibility of Tenant not to violate nor knowingly permit to be violated any condition of the policies required by this Lease. 
 (d) If any of the liability insurance policies required to be maintained by Tenant pursuant to this Article contains aggregate limits which apply to operations of Tenant other than those operations which
are the subject-of this Lease, and such limits are diminished by more than $200,000.00 after any one or more incidents, occurrences, claims, settlements, or judgments against such insurance, Tenant shall take immediate steps to restore aggregate
limits or shall maintain other insurance protection for such aggregate limits. Any policy of property insurance required hereunder may be in “blanket coverage” form, provided any such “blanket coverage” policy
(i) specifically provides that the amount of insurance coverage required hereunder shall in no way be prejudiced by other losses covered by the policy or (ii) is in an amount not less than the sum of 100% of the actual replacement costs of
all of the properties covered under such “blanket coverage” insurance policy. Neither the issuance of any such property insurance policy nor the minimum limits specified in this Article shall be deemed to limit or restrict in any way
Tenant’s liability arising under or out of this Lease. 
 12.5 Landlord’s Insurance. Landlord
shall, at all times during the Term hereof, maintain in force insurance of the type commonly referred to as an “all risk of physical loss” policy, including earthquake insurance, in an amount equal to the full replacement cost of the
Building (with a deductible not exceeding $100,000 for any loss), and commercial general liability insurance in an amount not less than $2 million insuring the Building and the Property against all risks and hazards as are customarily insured
against, in Landlord’s reasonable judgment, by others similarly situated and operating like properties. Landlord shall also maintain in force rental loss insurance in an amount not less than 12 month’s Rent for the Building. Without
limitation of the foregoing, Landlord shall maintain in force such insurance as may be required by the holder of the Mortgage. The premiums and deductible amounts on the insurance policies referred to in this paragraph will be part of Operating
Expenses. 
  

 13 

 12.6 Waiver of Subrogation. Landlord and Tenant each hereby releases
the other, and waives its right of recovery against the other, for any direct or consequential loss or damage arising out of or incident to the perils covered by the insurance policy or policies carried by the waiving party to the extent such losses
or damages are actually covered by such insurance policies, whether or not such damage or loss may be attributable to the negligence of either party or their agents, invitees, contractors, or employees. Each insurance policy carried by either
Landlord or Tenant in accordance with this Lease shall include a waiver of the insurer’s rights of subrogation to the extent necessary. Such waiver shall not limit any indemnity or other waiver made under this Lease. 
 13 Damage or Destruction. 
 13.1 Damage and Restoration. If the Premises or any Building Systems or common areas of the Building serving or providing access to the Premises shall be damaged by fire or other casualty, Landlord shall promptly and
diligently restore the Premises and such Building Systems and common areas at Landlord’s expense, and not as a part of Operating Expenses. Such restoration shall be to substantially the condition that existed prior to the casualty, except for
modifications required by zoning and building codes and other laws, or by the holder of a Mortgage on the Building, and any other modifications to the common areas deemed desirable by Landlord (provided access to the Premises and any common
restrooms serving the Premises is not materially impaired). Landlord shall not be required to repair or replace any of Tenant’s furniture, furnishing, fixtures or equipment, or any Alterations or Tenant Improvements not originally installed or
constructed by Landlord at its expense. Landlord shall not be liable for any inconvenience or annoyance to Tenant or its visitors, or injury to Tenant’s business resulting in any way from such damage or the repair thereof, except that Landlord
shall allow Tenant a proportionate abatement of Rent during the time and to the extent the Premises are unfit for occupancy by Tenant as a result thereof; provided, if the Premises or any other portion of the Building is damaged by fire or other
casualty caused in whole or in part by Tenant or any of Tenant’s agents, contractors, employees, or visitors, Rent shall not be so abated. 
 13.2 Termination. Notwithstanding the foregoing, Landlord may elect not to perform restoration work, and instead terminate this Lease by notifying Tenant in writing of such
termination within 60 [90] days after the date the damage occurred (such notice to include a termination date giving Tenant at least 60 days to vacate the Premises), but Landlord may so elect only if the Building shall be damaged by fire or other
casualty (whether or not the Premises are affected) such that: (a) restoration cannot reasonably be completed within 120 [180] days after being commenced without the payment of overtime or other premiums; (b) the holder of any Mortgage on
the Building shall require that the insurance proceeds or any portion thereof be used to retire the mortgage debt; or (c) the damage is not fully covered by Landlord’s insurance policies. Tenant hereby waives any rights it may have under
any Applicable Law to terminate the Lease by reason of damage to the Premises or the Building or to any abatement of Rent except as specifically set forth above. 
  

 14 

 OPTIONAL “RIGHT TO TERMINATE” CLAUSE: 
 If the damage is so extensive that the Premises cannot reasonably be expected to be ready for re-occupancy by Tenant within 180 days after
the occurrence, or if the Premises are not in fact ready for re-occupancy by Tenant within 180 days after occurrence of the damage, Tenant may terminate this Lease by notice to Landlord. 
 14 Eminent Domain. 
 14.1 Taking. In case
the whole of the Premises, or such part thereof as shall substantially interfere with Tenant’s use and occupancy thereof, shall be taken by any lawful power or authority by exercise of the right of eminent domain, or sold to prevent such
taking, within 60 days after receipt of notice of such taking, either Tenant or Landlord may terminate this Lease effective as of the date possession is required to be surrendered to said authority. If such portion of the Building or Property is so
taken or sold so as to require, in the opinion of Landlord, a substantial alteration or reconstruction of the remaining portions thereof, or which renders the Building or Property economically inviable for its use as presently intended, or requires
cancellation of substantially all tenant leases in the Building, this Lease may be terminated by Landlord, as of the date of the vesting of title under such taking or sale, by written notice to Tenant within 60 days following notice to Landlord of
the date on which said vesting will occur. Except as provided herein, Tenant shall not because of such taking assert any claim against Landlord or the taking authority for any compensation because of such taking, and Landlord shall be entitled to
receive the entire amount of any award without deduction for any estate or interest of Tenant. If the amount of property or the type of estate taken shall not substantially interfere with Tenant’s use of the Premises, Landlord shall be entitled
to the entire amount of the award without deduction for any estate or interest of Tenant. In such event, Landlord shall promptly proceed to restore the Premises and the Building to substantially their condition prior to such partial taking, and the
Rent shall be abated in proportion to the time during which, and to the part of the Premises of which, Tenant shall be so deprived on account of such taking and restoration. Notwithstanding the foregoing, during any Rent abatement under this Lease,
Tenant shall continue to be obligated to pay Landlord for all services and utilities provided to and used by Tenant during the period of the Rent abatement. Nothing contained in this Article shall be deemed to give Landlord any interest in, or
prevent Tenant from seeking any award against the taking authority for, the taking of personal property and fixtures belonging to Tenant or for relocation or business interruption expenses recoverable from the taking authority. 
 Notwithstanding that the entire Premises are not condemned or taken for any public or quasi-public use or purpose, Tenant shall have the
right to terminate this Lease in the event that (i) a portion of the Premises is taken such that the remaining portion of the Premises cannot be used for its intended purposes, as reasonably determined by Tenant; (ii) access to the
Building is taken; (iii) vehicular access to the Garage is taken; or (iv) the existing parking spaces leased to Tenant are taken (unless Landlord replaces the lost parking spaces with new parking spaces within reasonable proximity to the
Building). 
 14.2 Temporary Taking. If all or any portion of the Premises are condemned or otherwise taken for
public or quasi-public use, this Lease shall remain in full force and effect and Tenant shall continue to perform all of the terms, conditions and covenants of this Lease, including without limitation, the payment of Rent and all other amounts
required hereunder. Tenant shall be entitled to receive the entire award made in connection with any temporary 
  

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condemnation or other taking attributable to any period within the Term. Landlord shall be entitled to the entire award for any such temporary condemnation or other taking which relates to a
period after the expiration of the Term or which is allocable to the cost of restoration of the Premises. If any such temporary condemnation or other taking terminates prior to the expiration of the Term, Tenant shall restore the Premises as nearly
as possible to the condition prior to the condemnation or other taking, at Tenant’s sole cost and expense; provided Tenant shall receive the portion of the award attributable to such restoration. 
 15 Assignment and Subletting. 
 15.1 Limitation. 
 (a) Tenant shall not directly or
indirectly, voluntarily or involuntarily (i) assign, mortgage or otherwise encumber (collectively, “Assignment”) all or any portion of its leasehold estate or (ii) permit the Premises to be occupied by anyone other than Tenant or
Tenant’s employees or sublet the Premises or any portion thereof (collectively, a “Sublease”) without obtaining the prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed. Any attempted
Assignment or Sublease (collectively, a “Transfer”) without such consent shall be null and void and of no effect. Notwithstanding any law or custom to the contrary, Landlord’s refusal to consent to any Transfer shall be deemed
reasonable if: 
 (1) The Transferee is of a character or reputation or engaged in a business which is not consistent with the
quality of the Building or the Property; 
 (2) The Transferee intends to use the Transfer Space for purposes which are not
permitted under this Lease; 
 (3) The Transferee has been involved in bona fide negotiations with Landlord for space in the
Building within the preceding [12] months; 
 (4) [If less than 95% of the Building is occupied on the date of the Transfer
Notice, the effective rental rate for the Transfer is less than 90% of the effective rental rate Landlord is asking for comparable space at the time of such Transfer;] 
 (5) The Transfer Space is not suitable for normal renting purposes in conformity with all applicable building and safety codes; 
 (6) The Transferee is a governmental body (or subdivision or agency thereof); 
 (7) The Transferee is an occupant of the Building; or 
 (8) The Transferee is, in the judgment of Landlord, insolvent or does not have the financial capacity to perform the obligations to be assumed for the term of the Transfer. 
  

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 OPTIONAL CLAUSE: 
 Notwithstanding the foregoing, Tenant shall have the right, after notice thereof to Landlord, to assign this Lease, or to sublet all or any portion of the Premises, without the approval of Landlord to
(i) any entity resulting from a merger or consolidation with Tenant; (ii) any entity succeeding to the business and assets of Tenant; or (iii) any entity which is a subsidiary or affiliate of Tenant. For purposes of this Lease, an
affiliate shall mean an entity controlled by Tenant, or which controls Tenant, or which is under common control with Tenant. No Transfer shall relieve Tenant of its obligations hereunder. 
 15.2 Notice of Intent to Assign or Sublet. If Tenant desires at any time to Transfer the Premises or any portion thereof, it
shall first give Landlord a notice (the “Transfer Notice”) specifying (a) the size and location of the space Tenant proposes to Transfer (the “Transfer Space”); (b) the terms of the proposed Transfer; (c) the date
on which Tenant proposes that the Transfer be effective, which shall be at least 30 days after the Transfer Notice; (d) the name of the proposed assignee, subtenant, transferee or occupant (“Transferee”); (e) the nature of the
proposed Transferee’s business to be carried on in the Transfer Space; and (f) such financial statements concerning the proposed Transferee as may be reasonably necessary for Landlord to make an informed judgment as to the financial
condition and prospects of the Transferee. 
 15.3 Right of Recapture; Landlord’s Consent. 
 (a) At any time within 30 days after Landlord’s receipt of all of the information required in the Transfer Notice, Landlord may by
written notice to Tenant elect to recapture the Transfer Space and terminate this Lease with respect thereto. If the Transfer Space is less than the entire Premises, this Lease shall remain in full force and effect with respect to the remainder of
the Premises, except that Rent (including Tenant’s Pro Rata Share of Property Expenses) shall be adjusted to reflect the diminution in the number of square feet of Rentable Area within the Premises. 
 (b) If the Transfer is not completed within 120 days of Landlord’s consent thereto, Tenant shall once again comply with all of the
provisions of this Article, including, without limitation, the obligation to give Landlord the Transfer Notice and Landlord shall again have the right of recapturing the Transfer Space and terminating the Lease with respect thereto. 
 (c) Any Sublease shall provide that it is subject and subordinate to this Lease and to the Mortgages; that Landlord may enforce the
provisions of the Sublease, including collection of Rent; that the cost of any modification to the Premises, Building and/or Property arising from or as a result of the Sublease shall be the sole responsibility of Tenant; that in the event of
termination of this Lease for any reason, including, without limitation, a voluntary surrender by Tenant, or in the event of any reentry or repossession of the Premises by Landlord, Landlord may, at its option, either (i) terminate the Sublease
or (ii) take over all of the right, title and interest of Tenant, as sublessor, under such Sublease, in which case the Transferee shall attorn to Landlord, but that nevertheless Landlord shall not (1) be liable for any previous act or
omission of Tenant under such Sublease, (2) be subject to any defense or offset previously accrued in favor of the Transferee against Tenant, or (3) be bound by any previous modification of any Sublease made without Landlord’s written
consent, or by any previous prepayment by the Transferee of more than one month’s Rent. 
  

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 (d) Each Transferee by assignment shall assume all obligations of Tenant under this Lease
and shall be and remain liable jointly and severally with Tenant for the payment of the Rent, and for the performance of all of the terms, covenants, conditions and agreements herein contained on Tenant’s part to be performed for the term of
this Lease; provided, however, that the Transferee shall be liable to Landlord for Rent only in the amount set forth in the Transfer. No Assignment shall be binding on Landlord unless the Transferee or Tenant shall deliver to Landlord
a counterpart of the Assignment and an instrument in recordable form which contains a covenant of assumption by the Transferee satisfactory in substance and form to Landlord consistent with the requirements of this Section. Failure or refusal of the
Transferee to execute such instrument of assumption shall not release or discharge the Transferee from its liability as set forth above. 
 (e) If there are any Profits from any Transfer, Tenant shall pay 50% of such Profits to Landlord as additional Rent. Landlord’s share of Profits shall be paid to Landlord within 30 days after receipt
thereof by Tenant. The payments of Profits to Landlord shall be made on a monthly basis as additional Rent with respect to each Transfer separately, subject to an annual reconciliation on each anniversary date of the Transfer. If the payments to
Landlord under this paragraph during the 12 months preceding each annual reconciliation exceed the amount of Profits determined on an annual basis, then Landlord shall refund to Tenant the amount of such overpayment or credit the overpayment against
Tenant’s future obligations under this paragraph, at Tenant’s option. If Tenant has underpaid its obligations hereunder during the preceding 12 months, Tenant shall immediately pay to Landlord the amount owing after the annual
reconciliation. 
 For purposes of this Article, “Profits” are defined as all cash or cash equivalent amounts and sums
which Tenant (including any affiliate or successor of Tenant or other entity related to Tenant) receives on an annual basis from any Transferee, directly or indirectly, attributable to the Premises or any portion thereof, less the sum of
(1) the amortized amount for each such annual period of (i) any additional tenant improvement costs paid to Tenant’s Transferee by Tenant; (ii) reasonable leasing commissions paid by Tenant in connection with the Transfer;
(iii) other economic concessions (planning allowance, lease takeover payments, moving expenses, etc.) paid by Tenant to or on behalf of the Transferee in connection with the Transfer; (iv) reasonable costs incurred by Tenant in advertising
the Transfer Space; and (v) Tenant’s reasonable attorneys’ fees paid by Tenant in connection with the Transfer (such amounts to be amortized over the term of the Transfer), and (2) the Rent paid during each such annual period by
Tenant attributable to the Transfer Space (pro rata based on Rentable Area). Any lump sum payment received by Tenant from a Transferee shall be treated like any other amount so received by Tenant for the applicable annual period and shall be
utilized in computing Profits in accordance with the foregoing. All Profits and the components thereof shall be subject to audit by Landlord or its representatives at reasonable times. Tenant shall deliver to Landlord, upon request, any information
reasonably required by Landlord to calculate and/or substantiate the amount of Profits hereunder. 
 15.4 No Release of
Tenant’s Obligations. No Transfer shall relieve Tenant of its obligation to pay the Rent and to perform all of the other obligations to be performed by Tenant hereunder. The acceptance of Rent by Landlord from any other person shall not
be deemed to be a waiver by Landlord of any provision of this Lease or to be a consent to any Transfer. Consent 
  

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to one Transfer shall not be deemed to constitute consent to any subsequent Transfer. Tenant waives any right it may have at law or in equity to terminate this Lease as a result of
Landlord’s refusal to consent to a Transfer, event if such refusal is ultimately determined by a court of competent jurisdiction to be unreasonable, nor will it obligate Landlord to consent to any further Transfer. 
 15.5 Transfer is Assignment. The transfer, assignment or hypothecation of any stock, partnership interest or other equity
interest in Tenant, in excess of 25%, in the aggregate, shall be deemed an Assignment hereunder. 
 15.6 Costs.
Tenant agrees to reimburse Landlord for Landlord’s reasonable costs and attorneys’ fees incurred in connection with the processing and documentation of any requested Transfer whether or not Landlord consents to the Transfer or the same is
finally consummated. 
 16 Landlord’s Reserved Rights. 
 16.1 Right of Entry. Landlord and its agents and representatives shall have the right, at all reasonable times, but in such
manner as to cause as little disturbance to Tenant as reasonably practicable, to enter the Premises for the following purposes: (a) inspecting the physical condition of the Premises; (b) performing all obligations of Landlord under this
Lease or Applicable Law; (c) showing the Premises to prospective purchasers, mortgagees and tenants; (d) maintaining, replacing, extending or otherwise modifying the Building Systems; and (e) access to telephone closets, electrical
panels, and similar installations which may serve areas of the Building other than (or in addition to) the Premises. Except for (i) emergencies and (ii) entry to furnish janitorial or other services to be provided by Landlord hereunder,
Landlord will give Tenant reasonable notice (which may be oral) prior to any entry, and Tenant shall have the right to have one of its employees accompany Landlord or its agent or representative, as the case may be. No such entry shall be construed
under any circumstances as a forcible or unlawful entry into the Premises, or an eviction of Tenant. Tenant hereby waives any claim against Landlord or its agents or representatives for damages for any injury or inconvenience to or interference
with, Tenant’s business or quiet enjoyment of the Premises, with the exception of any physical damage to the Premises or Tenant’s trade fixtures resulting from such entry. 
 16.2 Building and Common Areas. Without limitation of the preceding paragraph, and provided Landlord does not unreasonably
interfere with Tenant’s use, Landlord may: (a) install, repair, replace or relocate pipes, ducts, conduits, wires and appurtenant meters and equipment for service to other parts of the Building above the ceiling surfaces, below the floor
surfaces, within the walls and in the central core areas of the Premises or the rest of the Building; (b) repair, renovate, alter, expand or improve the Property; (c) make changes to the common areas, including, without limitation, changes
in the location, size, shape and number of street entrances, driveways, ramps, entrances, exits, parking spaces, parking areas, loading and unloading areas, halls, passages, stairways and other means of ingress and egress, direction of traffic,
landscaped areas and walkways; (d) close temporarily any of the common areas for maintenance purposes as long as reasonable access to the Premises remains available; (e) designate other land outside the boundaries of the Building to be a
part of the common areas; (f) use the common areas while engaged in making additional improvements, repairs or alterations to the Building, or any portion thereof; and (g) do and perform such other acts and make such other changes in, to
or with respect to the common areas and Building and other portions of the Property as Landlord may deem appropriate. 
  

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 16.3 Name. Landlord may adopt any name for the Building and/or the Property
and Landlord reserves the right to change the name and/or the address of the Building and/or the Property or any part thereof at any time. 
 16.4 One Commerce Square. Landlord shall have the right, but not the obligation, to enter into other agreements with the owner of the adjacent building known as One Commerce Square
(“Commerce 1”) to provide for (1) reciprocal rights of access, use and enjoyment of the Property and Commerce 1, (2) for the common management, operation, maintenance, improvement and repair of all or any portion of the common
area serving both the Property and Commerce 1, such as the fountain and the courtyard, and/or (3) for the allocation (on a 50/50 basis) of all or any portion of the Operating Expenses with respect to such management, operation, and maintenance.

 17 Indemnification and Waiver. 
 17.1 Indemnity by Tenant. Tenant shall indemnify, protect, defend and hold harmless, Landlord, its officers, directors, partners, agents, attorneys and employees, and any affiliate of
Landlord, including, without limitation, any corporations or any other entities controlling, controlled by or under common control with Landlord (collectively, “Landlord Indemnified Parties”), from and against any and all claims, suits,
demands, liability, damages and expenses, including attorneys’ fees and costs (collectively, “Indemnified Claims”), arising from or in connection with Tenant’s use or alteration of the Premises or the conduct of its business or
from any activity performed or permitted by Tenant in or about the Premises, the Building or any part of the Property during the Term or prior to the Commencement Date if Tenant has been provided access to the Premises, the Building or any part of
the Property for any purpose, or arising from any breach or default in the performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from Tenant’s use of the Building Services in excess of
their capacity or arising from any other act, neglect, fault or omission of Tenant or any of its officers, agents, directors, contractors, employees, subtenants, assignees, licensees or invitees. If any action or proceeding is brought against any of
the Landlord Indemnified Parties in connection with any Indemnified Claims, Tenant, upon notice from Landlord, shall defend the same at Tenant’s expense with counsel approved by Landlord, which approval shall not be unreasonably withheld.
Tenant’s indemnity obligation as aforesaid shall not be limited or affected by the provisions of any Worker’s Compensation Acts, disability benefits acts or other employee benefits acts or similar acts or statutes. Tenant’s
obligations under this Section 17.1 shall survive the expiration or earlier termination of this Lease. 
 17.2
Waiver. As a material part of the consideration to Landlord for entering into this Lease, Tenant hereby assumes all risk of and releases, discharges and holds harmless Landlord from and against any and all liability to Tenant for
damage to property or injury to persons in, upon or about the Premises from any cause whatsoever except that which is caused by the negligence or willful misconduct of Landlord. In no event shall Landlord be liable to Tenant for any injury to any
person in or about the Premises or damage to the Premises or for any loss, damage or injury to any property of Tenant therein or by any malfunction of any utility or other

  

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equipment, installation or system, or by the rupture, leakage or overflow of any plumbing or other pipes, including without limitation, water, steam and refrigeration lines, sprinklers, tanks,
drains, drinking fountains or similar cause in, about or upon the Premises, the Building or any other portion of the Property unless such loss, damage or injury is caused by the negligence or willful misconduct of Landlord. 
 18 Definition of Landlord. The term “Landlord” as used in this Lease, so far as covenants or obligations on the part of
Landlord are concerned, shall be limited to mean and include only the owner or owners, at the time in question, of the fee title of the Premises or the lessees under ground leases of the land or master leases of the Building, if any. In the event of
any transfer, assignment or other conveyance of any such title, Landlord herein named (and in case of any subsequent transfer or conveyance, the then grantor) shall be automatically freed and relieved from and after the date of such transfer,
assignment or conveyance of all liability for the performance of any covenant or obligation on the part of Landlord contained in this Lease thereafter to be performed. Without further agreement, the transferee of such title shall be deemed to have
assumed and agreed to observe and perform any and all obligations of Landlord hereunder, during its ownership of the Premises. Landlord may transfer its interest in the Premises without the consent of Tenant and such transfer or subsequent transfer
shall not be deemed a violation on Landlord’s part of any term or condition of this Lease. 
 19 Subordination.

 19.1 Subordination. This Lease is subject and subordinate to the Mortgage. This clause shall be
self-operative; however, Tenant shall execute promptly any certificate or document that Landlord may request to effectuate, evidence or confirm such subordination, and failure to do so shall be an Event of Default under this Lease. 
 19.2 Attornment. Notwithstanding the foregoing, if Landlord’s interest in the Building is sold or conveyed upon
the exercise of any remedy provided for in any Mortgage, or otherwise by operation of law: (a) Tenant will attorn to and recognize the new owner as Tenant’s landlord under this Lease, and Tenant will confirm such attornment in writing
within 10 days after receipt of a written request to do so; and (b) the new owner shall not be (i) liable for any act or omission of Landlord under this Lease occurring prior to such sale or conveyance; (ii) subject to any offset,
abatement or reduction of Rent because of any default of Landlord under this Lease occurring prior to such sale or conveyance; (iii) liable for the return of any security deposit paid by Tenant except to the extent that the security deposit has
actually been paid to such person or entity; or (iv) bound by any Rent payment which Tenant might have paid to Landlord more than 30 days in advance. 
 19.3 Notice from Tenant. Tenant shall give written notice to the holder of any Mortgage whose name and address have been previously furnished to Tenant of any act or omission by
Landlord which Tenant asserts as giving Tenant the right to terminate this Lease or to claim a partial or total eviction or reduction in Rent or any other right or remedy under this Lease or provided by law. Tenant further agrees that if Landlord
shall have failed to cure any default within the time period provided for in this Lease, then the holder of any Mortgage shall have an additional 30 days within which to cure such default or if such default cannot be cured within that time, then
such additional time as may be necessary if within such 30 days such 
  

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holder has commenced and is diligently pursuing the remedies necessary to cure such default (including, but not limited to, commencement of foreclosure proceedings, if necessary to effect such
cure), in which event this Lease shall not be terminated while such remedies are being so diligently pursued. 
 OPTIONAL CLAUSE:

 20 Substitution of Premises. Landlord shall have the right, at its option and from time to time, upon not less than
30 days’ prior written notice to Tenant, to relocate Tenant and to substitute for the Premises other space in the Building containing at least as much Rentable Area as the original Premises. The Rent for such substitute Premises shall be no
higher than that of the original Premises, and shall be improved by Landlord, at Landlord’s expense, with decorations and improvements at least equal in quality to those in the original Premises. Landlord shall pay the costs of moving and
telephone relocation reasonably incurred by Tenant in connection with such substitution of Premises, subject to adequate substantiation of such costs. 
 21 Surrender of Premises and Removal of Property. 
 21.1 No Merger. The
voluntary or other surrender of this Lease by Tenant, a mutual cancellation or a termination hereof, shall not constitute a merger, and shall, at the option of Landlord, terminate all or any existing subleases or shall operate as an assignment to
Landlord of any or all subleases affecting the Premises. 
 21.2 Surrender of Premises. Upon the expiration
of the Term, or upon any earlier termination hereof, Tenant shall quit and surrender possession of the Premises to Landlord in as good order and condition as the Premises are now or hereafter may be improved by Landlord or Tenant, reasonable wear
and tear, damage by casualty and repairs which are Landlord’s obligation excepted, and shall, without expense to Landlord, remove or cause to be removed from the Premises, all debris and rubbish, all furniture, equipment, business and trade
fixtures, free-standing cabinet work, movable partitioning and other articles of personal property owned by Tenant or installed or placed by Tenant at its expense in the Premises, and all similar articles of any other persons claiming under Tenant
unless Landlord exercises its option to have any subleases or subtenancies assigned to Landlord, and Tenant shall repair all damage to the Premises and the Property resulting from such removal. 
 21.3 Disposal of Property. In the event of the expiration of this Lease or other re-entry of the Premises by Landlord
as provided in this Lease, any property of Tenant not removed by Tenant upon the expiration of the Term of this Lease, or within 48 hours after a termination by reason of Tenant’s default, shall be considered abandoned and Landlord may remove
any or all of such property and dispose of the same in any manner or store the same in a public warehouse or elsewhere for the account of, and at the expense and risk of, Tenant. If Tenant shall fail to pay the costs of storing any such property
after it has been stored for a period of 30 days or more, Landlord may sell any or all of such property at public or private sale, in such manner and at such places as Landlord, in its sole discretion, may deem proper, without notice to or demand
upon Tenant. In the event of such sale, Landlord shall apply the proceeds thereof, first, to the cost and expense of sale, including reasonable attorneys’ fees; second, to the repayment of the cost of removal and storage; third, to the
repayment of any other sums which may then or thereafter be due to Landlord from Tenant under any of the terms of this Lease; and fourth, the balance, if any, to Tenant. 
  

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 22 Holding Over. In the event Tenant holds over after the expiration of the Term, with
the express or implied consent of Landlord, such tenancy shall be from month-to-month only, and not a renewal or an extension for any further term, and such month-to-month tenancy shall be subject to each and every term, covenant and agreement
contained herein; provided, however, that Tenant shall pay as monthly net rent during any holding over period, an amount equal to 150% of the monthly net rent payable immediately prior to expiration of the Term. Nothing in this Article
shall be construed as a consent by Landlord to any holding over by Tenant and Landlord expressly reserves the right to require Tenant to surrender possession of the Premises upon the expiration of the Term or upon the earlier termination hereof and
to assert any remedy in law or equity to evict Tenant and/or collect damages in connection with such holding over. 
 23 Defaults and
Remedies. 
 23.1 Defaults by Tenant. The occurrence of any of the following shall constitute
a material default and breach of this Lease by Tenant (each, an “Event of Default”): 
 (a) If Tenant fails to pay the
Rent or make any other payment required to be made by Tenant under this Lease and the Exhibits hereto as and when due and such failure continues for 5 business days after notice thereof by Landlord to Tenant; 
 (b) If Tenant (1) abandons the Premises or (2) enters into any assignment or sublease transaction in violation of the terms of
this Lease; 
 (c) If Tenant fails to observe or perform the provisions of Articles 3 (“Use of Premises”) and/or 10
(“Alterations”) and such failure continues for 24 hours after notice thereof from Landlord to Tenant; 
 (d) If Tenant
fails to provide estoppel certificates, or other certificates as herein provided, and such failure continues for 3 business days after notice to Tenant following expiration of the 10-day period provided herein for the delivery of such certificates;

 (e) If Tenant fails to observe or perform any other provision of this Lease including the Exhibits hereto, to be observed or
performed by Tenant, and such failure continues for 30 days after notice thereof by Landlord to Tenant; provided, however, that if the nature of such failure is such that it cannot reasonably be cured within such 30-day period, Tenant
shall not be deemed to be in default if Tenant shall within such period commence such cure and thereafter diligently prosecute the same to completion; 
 (f) If any action is taken by or against Tenant pursuant to any statute pertaining to bankruptcy or insolvency or the reorganization of Tenant (unless, in the case of a petition filed against Tenant, the
same is dismissed within 90 days); if Tenant makes any general assignment for the benefit of creditors; if a trustee or receiver is appointed to take possession of all or any portion of Tenant’s assets located at the Premises or of
Tenant’s interest in this Lease, where possession is not restored to Tenant within 30 days; or if all or any portion of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease is attached, executed upon, or
otherwise judicially seized and such seizure is not discharged within 30 days; 
  

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 (g) If Tenant fails to vacate and surrender the Premises as required by this Lease upon the
expiration of the Term or sooner termination of this Lease; 
 (h) If Tenant submits to Landlord any materially false
information on any document required to be given by Tenant to Landlord; and/or 
 (i) If any surety or guarantor of this Lease
fails to comply with all the provisions of the suretyship or guaranty agreement. 
 23.2 Landlord’s
Remedies. If there shall occur an Event of Default, Landlord shall have and may exercise all remedies available to Landlord at law or in equity or under any statute or ordinance. Without limitation of the foregoing, Landlord may at
its option: 
 (a) Acceleration of Rent: declare due and payable and sue for and recover, all unpaid Rent for the
unexpired period of the Term as if by the terms of this Lease the same were payable in advance, or sue for Rent monthly as it accrues; and/or 
 (b) Termination: terminate this Lease by giving written notice thereof and, upon the giving of such notice, this Lease and the estate hereby granted shall expire and terminate with the same force
and effect as though the date of such notice were the date fixed for the expiration of the Term, and all rights of Tenant hereunder shall expire and terminate, but Tenant shall remain liable as hereinafter provided; and/or 
 (c) Recovery of possession; reletting: whether or not this Lease has been terminated as herein provided, re-enter and repossess the
Premises or any part thereof by summary proceedings, ejectment or otherwise, and Landlord shall have the right to remove all persons and property therefrom. Landlord shall be under no liability for or by reason of any such entry, repossession or
removal; and no such re-entry or taking of possession of the Premises by Landlord shall be construed as an election on Landlord’s part to terminate this Lease or to accept a surrender thereof unless a written notice of such intention be given
to Tenant or unless the termination of this Lease be decreed by a court of competent jurisdiction. Notwithstanding any law or custom to the contrary, Landlord shall have no legal obligation to mitigate its damages; however, at any time or from time
to time after the repossession of the Premises or any part thereof whether or not the Term shall have been terminated, Landlord may at its option relet all or any part of the Premises for the account of Tenant for such term or terms (which may be
greater or less than the period which would otherwise have constituted the balance of the Term) and on such conditions (which may include concessions or free Rent) and for such uses as Landlord, in its sole discretion, may determine, and Landlord
may collect and receive any Rents payable by reason of such reletting; and apply the same on account of Rent due and to become due hereunder. Landlord shall not be required to accept any tenant offered by Tenant or observe any instruction given by
Tenant about such reletting, or do any act or exercise any care or diligence with respect to such reletting. For the purpose of such reletting, Landlord may decorate or make repairs, changes, alterations or additions in or to the Premises or any
part thereof to the extent deemed by Landlord desirable or convenient, and the cost of such

  

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decoration, repairs, changes, alterations or additions shall be charged to and be payable by Tenant as Rent hereunder, as well as any reasonable brokerage and legal fees expended by Landlord.
Landlord reserves the right to terminate this Lease at any time after taking possession of the Premises as aforesaid. Neither termination nor repossession and reletting shall relieve Tenant of its obligations hereunder, all of which shall survive
such termination, repossession or reletting. Tenant agrees that Landlord may file suit to recover any sums falling due under the terms of this Article from time to time and that no suit or recovery of any portion due Landlord hereunder shall be any
defense to any subsequent action brought for any amount not theretofore reduced to judgment in favor of Landlord; and/or 
 (d)
Liquidated damages: terminate this Lease and recover from Tenant upon demand therefor, unless Tenant has paid the whole of accelerated Rent pursuant to subparagraph (a) above, as liquidated and agreed upon final damages for Tenant’s
default, an amount equal to the difference, if any, between (a) Rent and other sums which would be payable under this Lease for the remainder of the Term, discounted to present worth at the rate of (5%] per annum, and (b) the then fair
market rental value of the Premises as reasonably determined by Landlord for the same period, discounted to present worth at a like rate. 
 (e) Calculation of Rent: In calculating future Rent for purposes of subparagraphs (a), (c) and (d) above, Landlord’s reasonable and good faith estimate of future Property Expenses
shall be conclusive and binding on the parties. In addition, Landlord may include as an item of Rent its reasonable attorney’s fees and costs in enforcing its rights hereunder. 
 23.3 Waivers by Tenant. In the event of a termination of this Lease as a result of an Event of Default, Tenant hereby
waives all right to recover or regain possession of the Premises, to save forfeiture by payment of Rent due or by other performance of the conditions, terms or provisions hereof, and without limitation of or by the foregoing, Tenant waives all right
to reinstate or redeem this Lease notwithstanding any provisions of any statute, law or decision now or hereafter in force or effect, and Tenant waives all right to any second or further trial in summary proceedings, ejectment or in any other action
provided by any statute or decision now or hereafter in force or effect. Tenant hereby waives all notices required by the Landlord and Tenant Act of 1951, as amended, and as the same may hereafter be amended, and/or any other provision of
Pennsylvania law. 
 23.4 Right of Landlord to Injunction; Remedies Cumulative. Upon any actual or
threatened Event of Default, Landlord shall have the right of injunction to restrain the same. The rights and remedies given to Landlord in this Lease are distinct, separate and cumulative remedies, and no one of them, whether or not exercised by
Landlord, shall be deemed to be in exclusion of any of the others. 
 23.5 Right of Distress and Lien. If
an Event of Default shall occur, Landlord shall, to the extent permitted by law, have a right of distress for Rent and a lien on all of Tenant’s inventory, trade fixtures, machinery, equipment and personal property of whatsoever kind or nature
in the Premises as security for Rent and all other charges payable hereunder, and also the right to proceed, without judicial decree, writ of execution or assistance of sheriffs, to conduct a private sale, by auction or sealed bid, of such personal
property, at which sale Landlord may bid 
  

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 without restriction. Tenant hereby waives the benefit of all laws, whether now in force or hereafter
enacted, exempting any personal property on the Premises from sale or levy, whether execution thereon is had by order of any court, assistance of sheriffs or through private sale as herein authorized. Tenant further waives the right to issue a Writ
of Replevin under the laws of Pennsylvania Rules of Civil Procedure or under any other law of the Commonwealth of Pennsylvania pertaining to the recovery of any articles of any nature whatsoever seized under a distress for Rent, or levy upon an
execution for Rent, liquidated damages or otherwise. 
 23.6 Waiver of Jury Trial. Landlord and Tenant hereby
waive trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other on any matters whatsoever arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant,
Tenant’s use or occupancy of the Premises, and/or any claim of injury or damage, or for the enforcement of any remedy under any statute, ordinance or otherwise. 
 23.7 Definition of Tenant. The term “Tenant” shall be deemed to include all persons or entities named as Tenant under this Lease, or each and every one of them. If any of the
obligations of Tenant hereunder is guaranteed by another person or entity, the term “Tenant” shall be deemed to include all of such guarantors and any one or more of such guarantors. If this Lease has been assigned, the term
“Tenant” shall be deemed to include both the assignee and the assignor. 
 24 Covenant Against Liens. Tenant has no
authority or power to cause or permit any lien or encumbrance of any kind whatsoever, whether created by act of Tenant, operation of law or otherwise, to attach to or be placed upon the Property or the Premises, or on Tenant’s leasehold
hereunder. Tenant further agrees not to suffer or permit any lien of mechanics or materialmen or others to be placed against the Property, the Building or the Premises, or any portion thereof, with respect to work or services performed for or
materials furnished to Tenant or the Premises (including, without limitation, in connection with the Tenant Improvements and any Alterations). Tenant agrees to cause any such lien to be immediately released and removed of record, at Tenant’s
expense. Tenant affirms that the Tenant Improvements are solely for the use and benefit of Tenant, and not in any way for the immediate benefit of Landlord. 
 25 Interest on Tenant’s Obligations; Late Charges. 
 25.1
Interest. Any amount due from Tenant to Landlord which is not paid when due 
 shall bear interest at 10% per
annum, from the date such payment is due until paid, but the payment of such interest shall not excuse or cure any default by Tenant under this Lease. 
 25.2 Late Charge. In the event Tenant is more than 5 days late in paying any amount of Rent due under this Lease, Tenant shall pay Landlord a late charge equal to 3% of each delinquent
amount of Rent and any subsequent delinquent amount of Rent. OPTIONAL CLAUSE: [Landlord agrees not to assess such late charge until 5 days have elapsed after Landlord has given Tenant notice of such delinquency; provided,
however, that Landlord shall have the right to assess such late charge without notice to Tenant in the event Landlord has given Tenant notice of past delinquencies at least twice during the prior 12 months.] The parties agree that the amount
of such late charge represents a reasonable estimate of the cost and expense that would be incurred by Landlord in processing each delinquent payment of Rent by Tenant and 
  

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that such late charge shall be paid to Landlord as liquidated damages for each delinquent payment, but the payment of such late charge shall not excuse or cure any default by Tenant under this
Lease. The parties further agree that the payment of late charges and the payment of interest provided for in the preceding paragraph are distinct and separate from one another in that the payment of interest is to compensate Landlord for the use of
Landlord’s money by Tenant, while the payment of a late charge is to compensate Landlord for the additional administrative expense incurred by Landlord in handling and processing delinquent payments, but excluding attorneys’ fees and costs
incurred with respect to such delinquent payments. 
 26 Quiet Enjoyment. Tenant, upon the paying of all Rent hereunder and
performing each of the covenants, agreements and conditions of this Lease required to be performed by Tenant, shall lawfully and quietly hold, occupy and enjoy the Premises during the Term without hindrance or molestation of anyone lawfully claiming
by, through or under Landlord, subject, however, to the terms and conditions of this Lease. This covenant of quiet enjoyment is in lieu of any implied covenant of quiet enjoyment under Pennsylvania law. 
 OPTIONAL CLAUSE NO. 1: 
 27 Parking
Facilities. Landlord shall provide (and Tenant shall lease for the entire Term)              unreserved parking spaces in the Garage, at such monthly rates as Landlord or its
Garage operator may establish from time to time. Such parking spaces will be used solely by Tenant’s own personnel and the right to use such spaces may not be transferred except pursuant to an assignment of this Lease or a subletting of all or
any portion of the Premises as the same may be permitted by the terms of this Lease. Such parking shall be subject to such reasonable rules and regulations as the operator of the Garage may establish from time to time. 
 OPTIONAL CLAUSE NO. 2: 
 27 Parking
Facilities. Landlord shall provide up to              unreserved parking spaces in the Garage, at such monthly rates as Landlord or its Garage operator may establish from
time to time; provided, however, that Tenant shall have no obligation to take all or any of such spaces and Tenant may at any time, surrender all or some of such spaces, and thereafter, neither Landlord nor Tenant shall have any obligations with
respect to the surrendered spaces under this Article. However, if Tenant thereafter requests to once again take such spaces and at the time of such request such spaces are available, Landlord shall provide such spaces to Tenant on the aforesaid
terms. Such parking spaces will be used solely by Tenant’s own personnel and the right to use such spaces may not be transferred except pursuant to an assignment of this Lease or a subletting of all or any portion of the Premises as the same
may be permitted by the terms of this Lease. Such parking shall be subject to such reasonable rules and regulations as the operator of the Garage may establish from time to time. 
 28 Brokers. Landlord and Tenant each warrant to the other that it has not had any contact or dealings with any real estate broker or other intermediary other than
                     (collectively, “Broker”) which would give rise to the payment of any fee or brokerage commission in connection
with this Lease. Landlord and Tenant shall each indemnify the other from and against any loss, liability or damage (including reasonable counsel fees and costs) with respect to any fee or brokerage commission (except to Broker) arising out of any
act or omission of the indemnifying party. Landlord agrees to pay brokerage commissions due in connection with this Lease to Broker in accordance with a separate commission agreement executed by Landlord and Broker. 
  

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 29 Rules and Regulations. The “Rules and Regulations” attached hereto as Exhibit
E are hereby incorporated herein and made a part of this Lease. Tenant agrees to abide by and comply with each and every one of said Rules and Regulations and any amendments, modifications and/or additions thereto as may hereafter be adopted by
Landlord for the safety, care, security, good order and cleanliness of the Premises, the Building, the Garage or any other portion of the Property. Provided Tenant’s rights under this Lease are not materially and adversely affected, Landlord
shall have the right to amend, modify or add to the Rules and Regulations in its sole discretion. Landlord agrees that the Rules and Regulations shall not be enforced so as to discriminate against Tenant or unreasonably interfere with Tenant’s
use of the Premises and that the Rules and Regulations shall be enforced uniformly against all tenants in the Building; provided, however, that Landlord shall not be liable to Tenant for Landlord’s failure to enforce the Rules and
Regulations against any other tenants. Tenant shall not be obligated to comply with any future Rules and Regulations or amendments thereto until Tenant has received a written copy of such Rules and Regulations. 
 30 Directory Board and Signage. 
 30.1 Directory Board. During the Term, Tenant shall have the right to designate one (1) name (a department or individual) per thousand square feet of Rentable Area in the Premises occupied
by Tenant for placement on the directory board in the lobby of the Building. Landlord shall have the option to maintain, in place of the directory board in the lobby of the Building, a computerized directory with display screen which has the
capacity to accommodate Tenant’s designation of names as set forth above. 
 30.2 Signs. Tenant shall be
permitted to install, at its own expense, appropriate signs containing Tenant’s name at the entrance to the Premises, and, if and so long as Tenant leases all of the Rentable Area on individual floors of the Premises, on the walls of the
elevator lobbies on each floor of the Premises leased solely by Tenant. Any such signs will be designed and constructed in a manner compatible with Building standard signs and graphics criteria and shall be subject to Landlord’s prior written
approval which approval shall not be unreasonably withheld or delayed. Upon expiration of the Term, Tenant shall promptly remove all its signs and repair and restore the surfaces on which such signs were attached to their prior condition, at
Tenant’s expense. 
 OPTIONAL CLAUSE: 
 31 Termination Option. Notwithstanding anything else herein contained, Tenant shall have the right to terminate this Lease effective as of
                     (the “Early Termination Date”), subject to the following terms and conditions: 
 (a) Tenant shall give Landlord written notice of its election to terminate the Lease not less than 12 months prior to the Early Termination
Date; 
  

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 (b) Tenant shall pay Landlord, in consideration for such early termination, a fee equal to
the sum of the following: (i) monthly Rent paid by Tenant pursuant to Articles 5(a) and 5(b) for the preceding              months, plus (ii) the unamortized balance of
(x) the funds actually disbursed by Landlord pursuant to [Tenant Improvement/Moving Allowance] and (y) brokerage commissions paid by Landlord to
                     (which, for these purposes, shall be amortizable over the original Term). Payment of 50% of the termination fee shall
accompany the notice of early termination, and the remaining 50% shall be paid at least 30 days prior to the Early Termination Date. 
 (c) No Event of Default shall have occurred and be in existence on the date of Tenant’s notice of its election to exercise this early termination option or during the period from and including the date of such notice through and
including the Early Termination Date. 
 (d) Tenant’s notice of early termination shall automatically nullify
Landlord’s obligation to make funds available for painting and other renovations at the end of the              month of the Term pursuant to Article
            , and all other options (if any) Tenant may have to renew, extend, or otherwise modify this Lease. 
 OPTIONAL CLAUSE: 
 32 Expansion Options. 
 32.1 First Expansion Option. Tenant shall have the option to lease approximately
             contiguous square feet of Rentable Area on the              floor of the Building as shown on the plan
attached hereto as Exhibit A (the “First Expansion Space”), by notice given on or before                     , subject to the
following terms and conditions: 
 (a) Promptly after receipt of Tenant’s notice, Landlord shall notify Tenant of the date
(which shall be between                      and
                    ) on which it will deliver the First Expansion Space to Tenant. 
 (b) The First Expansion Space shall become part of the Premises on the aforesaid delivery date and Tenant agrees to commence paying Rent for
the First Expansion Space          days after such delivery date. The annual Rent for the First Expansion Space shall be calculated by multiplying the Rent per square foot of Rentable Area in effect for
the original Premises on the delivery date by the Rentable Area of the First Expansion Space. 
 (c) Except as otherwise
specifically provided in this Article, all of the terms and conditions of this Lease shall apply to the First Expansion Space from and after the aforesaid delivery date; 
 (d) The First Expansion Space shall be leased to Tenant in its then existing condition and state of improvement and Landlord shall have no obligation to make any improvements, repairs or alterations
thereto. However, Landlord shall provide Tenant with a tenant improvement allowance for the First Expansion Space equal to $             per square foot of Rentable Area in the First
Expansion Space. Such tenant improvement allowance and the tenant improvements to be performed in the First Expansion Space shall be subject to all of the terms and conditions set forth in Exhibit D attached hereto regarding the Tenant
Improvements and the Tenant Improvement Allowance. 
  

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 (e) Notwithstanding anything to the contrary contained herein, Tenant shall have the right
to lease the First Expansion Space only if no Event of Default has occurred and is continuing on the date of Tenant’s notice of its intention to lease the First Expansion Space or on the date of delivery of the First Expansion Space to Tenant.

 (f) Within 10 days after Tenant exercises the First Expansion Option, Landlord and Tenant shall execute an amendment to this
Lease documenting the expansion of the Premises pursuant to this Section. 
 (g) Landlord shall have no liability to Tenant for
any damages resulting from any delay in delivering possession of the First Expansion Space to Tenant if said delay is caused by the holding over of a previous tenant of the First Expansion Space; provided, that, Landlord shall take all action
reasonably necessary, including required legal proceedings, to secure possession of the First Expansion Space. 
 OPTIONAL CLAUSE:

 32.2 Second Expansion Option. Regardless of whether Tenant leases the First Expansion Space as set forth
above, then Tenant shall have the right to lease the remainder of the              of the Building (the “Second Expansion Space”) by notice given on or before
                    , subject to the following terms and conditions: 
 (a) Promptly after receipt of Tenant’s notice, Landlord shall notify Tenant of the date (which shall be between
                     and
                    ) on which it will deliver the Second Expansion Space to Tenant. 
 (b) The Second Expansion Space shall become part of the Premises and Tenant agrees to commence paying Rent for the Second Expansion Space
         days after the date of delivery thereof to Tenant. The annual Rent for the Second Expansion Space shall be calculated by multiplying the Rent per square foot of Rentable Area in effect for the
original Premises on the delivery date by the Rentable Area of the Second Expansion Space. 
 (c) Except as otherwise
specifically provided in this Article, all of the terms and conditions of this Lease shall apply to the Second Expansion Space from and after the aforesaid delivery date; 
 (d) The Second Expansion Space shall be leased to Tenant in its then existing condition and state of improvement and Landlord shall have no obligation to make any improvements, repairs or alterations
thereto. However, Landlord shall provide Tenant with a tenant improvement allowance for the Second Expansion Space equal to $             per square foot of Rentable Area in the
Second Expansion Space. Such tenant improvement allowance and the tenant improvements to be performed in the Second Expansion Space shall be subject to all of the terms and conditions set forth in Exhibit D attached hereto regarding the
Tenant Improvements and the Tenant Improvement Allowance. 
  

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 (e) Notwithstanding anything to the contrary contained herein, Tenant shall have the right
to lease the Second Expansion Space only if no Event of Default has occurred and is continuing on the date of Tenant’s notice of its intention to lease the Second Expansion Space or on the date of delivery of the Second Expansion Space to
Tenant. 
 (f) Within 10 days after Tenant exercises the Second Expansion Option, Landlord and Tenant shall execute an amendment
to this Lease documenting the expansion of the Premises pursuant to this Section. 
 (g) Landlord shall have no liability to
Tenant for any damages resulting from any delay in delivering possession of the Second Expansion Space to Tenant if said delay is caused by the holding over of a previous tenant of the Second Expansion Space; provided, that, Landlord shall take all
action reasonably necessary, including required legal proceedings, to secure possession of the Second Expansion Space. 
 (h)
Notwithstanding anything else herein contained, including Exhibit A, if, and only if, Tenant exercises its Second Expansion Option without having executed its First Expansion Option, then Landlord may deliver, as the Second Expansion Space,
either the area designated on Exhibit A as the First Expansion Space (i.e., the southerly side of the          floor) or the Second Expansion Space (i.e., the northerly side of the
         floor) and Tenant will accept whichever space Landlord elects to deliver as the Second Expansion Space. 
 32.3 Personal Option. The options to expand set forth in this Article are personal to Tenant and may not be assigned, transferred or conveyed to any party, except to a sublessee of
the entire Premises or an assignee of Tenant’s entire interest under this Lease (which does not under any circumstances include a party who has become an assignee as the result of Tenant’s bankruptcy). Such options shall not survive any
termination of this Lease. 
 OPTIONAL CLAUSE: 
 33 Rights of First Offer. 
 33.1 First Offer
Space. Subject to the currently existing rights of “first offer” or “first refusal” of other tenants in the Building, Landlord agrees that if any part of the
[        ] floor becomes available during the Term (the “First Offer Space”), the following will apply: 
 (a) Prior to entering into a lease with any third party for all or any portion of the First Offer Space, Landlord shall give Tenant notice (the “Notice”) of its interest in commencing
negotiations to lease such First Offer Space to a prospective tenant. The Notice shall designate the First Offer Space; the Rent Landlord proposes to charge therefor (which Rent shall be at fair market value, as determined by Landlord based on its
then offered Rent for a lease for comparable space, terms and concessions); and any other material business terms, including, without limitation, any proposed tenant improvement allowance. Tenant shall have 10 business days after receipt of the
Notice to lease such First Offer Space on the terms and conditions and at the Rent set forth in the Notice; otherwise, Tenant’s rights with respect to such First Offer Space shall terminate. Tenant’s right of First Offer shall be restored
in the event Landlord does not consummate a lease transaction with a third party or, if Landlord does enter into such a lease transaction, the space subsequently becomes available during the term of this Lease. 
  

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 (b) If Tenant leases the First Offer Space, the First Offer Space shall become part of the
Premises and Tenant agrees to commence paying Rent for such First Offer Space at the rate set forth in the Notice on the date of delivery thereof to Tenant and such First Offer Space shall be leased to Tenant for the remaining unexpired term of this
Lease upon the same terms and conditions as provided herein (with the exception of the Rent therefor, which will be as set forth in the Notice). 
 (c) Notwithstanding anything to the contrary contained herein, Tenant shall only have the right of first offer with respect to the First Offer Space if no Event of Default has occurred and is continuing
on the date of Tenant’s notice of its intention to lease the First Offer Space or on the date of delivery of the First Offer Space to Tenant. 
 (d) Prior to Landlord’s delivery of the First Offer Space to Tenant, Landlord and Tenant shall execute an amendment to this Lease documenting the expansion of the Premises pursuant to this Article.

 (e) Landlord shall have no liability to Tenant for any damages resulting from any delay in delivering possession of the First
Offer Space to Tenant if said delay is caused by the holding over of a previous tenant of the First Offer Space; provided, that Landlord shall take all action reasonably necessary, including required legal proceedings, to secure possession of the
First Offer Space. 
 As used herein, the term “High Rise Group” shall mean the 28th through 41st floors of the
Building. 
 33.2 Personal Option. The rights of first offer set forth above are personal to Tenant and may
not be assigned, transferred or conveyed to any party. Such rights shall not survive any termination of this Lease. 
 OPTIONAL CLAUSE: 

 34 Option to Renew. As of the end of the original Term, Tenant shall have the right to renew this Lease for an additional
period of              years (the “Renewal Term”), subject to the following terms and conditions: 
 (a) All terms and conditions of this Lease shall continue in effect during the Renewal Term except that (i) Rent during the Renewal
Term shall be the fair market Rent for the Premises (as reasonably determined by Landlord as of the date of receipt of Tenant’s notice based on Landlord’s current (or most recent) bona fide written proposals for leases for comparable
space, terms and concessions in the Building); and (ii) Tenant shall have no further option to renew at the end of the Renewal Term; 
 (b) Tenant shall exercise such right to renew by giving written notice thereof to Landlord not less than 12 months before the end of the original Term; 
 (c) Within 60 days after receipt of such notice from Tenant, Landlord shall give written notice to Tenant setting forth the Rent Landlord
will charge for the Premises during the Renewal Term. Within 30 days after receipt of such notice from Landlord, Tenant shall give written notice to Landlord of whether it will accept such Rent. If Tenant rejects the Rent, this Lease shall expire at
the end of the original Term. Failure to respond within the aforesaid 30-day period shall be deemed a rejection of the Rent; 
  

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 (d) Landlord shall have no obligation to make any improvements or alterations to the
Premises or to provide any improvement allowance with respect thereto during the Renewal Term; 
 (e) Notwithstanding anything
to the contrary contained herein, Tenant shall only have the right to renew this Lease if no Event of Default has occurred and is continuing, and/or this Lease has not theretofor been terminated, on the date of Tenant’s notice of its intention
to renew or on the date of commencement of the Renewal Term; and 
 (f) Prior to the commencement of the Renewal Term, Landlord
and Tenant shall execute an amendment to this Lease confirming the renewal of this Lease pursuant to this Section; the commencement and expiration of the Renewal Term; and the Rent payable during the Renewal Term. 
 OPTIONAL CLAUSE: 
 At the
end of the Renewal Term, provided Tenant shall have exercised its right to renew, Tenant shall have the right to renew for a second additional              years (the
“Second Renewal Term”), subject to all of the terms and conditions set forth above, except that the Rent for the Second Renewal Term shall be the fair market value determined as of the date Landlord receives Tenant’s notice of its
intent to exercise its second renewal. 
 35 General Provisions. 
 35.1 No Waiver. The waiver by Landlord of any breach of any provision contained in this Lease, or the failure of
Landlord to insist on strict performance by Tenant, shall not be deemed to be a waiver of such provision as to any subsequent breach thereof or of any other provision contained in this Lease. The acceptance of Rents hereunder by Landlord shall not
be deemed to be a waiver of any breach or default by Tenant regardless of Landlord’s knowledge of such breach or default at the time of acceptance of Rent. 
 35.2 Landlord’s Right to Perform. If Tenant shall fail to perform any act required to be performed by Tenant, Landlord may, after giving any notice and allowing any grace period
required by Article 23 (“Defaults and Remedies”), without obligation, and without waiving or releasing Tenant from any default or obligations of Tenant, make any such payment or perform any other act which Tenant should have performed. All
sums so paid by Landlord and all costs incurred by Landlord in making such payment or performing such other act or obligation and/or in enforcing this Lease, including attorneys’ fees, together with interest thereon at 10% per annum, shall
be payable to Landlord on demand and Tenant agrees to pay any such sums, and Landlord shall have (in addition to any other right or remedy hereunder) the same rights and remedies in the event of the non-payment thereof by Tenant as in the case of
default by Tenant in the payment of Rent. 
  

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 35.3 Terms; Headings. The words “Landlord” and
“Tenant” as used herein shall include the plural, as well as the singular. The words used in neuter gender include the masculine and feminine and words in the masculine or feminine gender include the neuter. If there is more than one
Tenant, the obligations hereunder imposed upon Tenant shall be joint and several. The headings or titles of this Lease shall have no effect upon the construction or interpretation of any part hereof. 
 35.4 Entire Agreement. This instrument along with any exhibits and attachments or other documents attached hereto
constitutes the entire and exclusive agreement between Landlord and Tenant with respect to the Premises. This instrument and said exhibits and attachments and other documents may be altered, amended, modified or revoked only by an instrument in
writing signed by both Landlord and Tenant. Landlord and Tenant hereby agree that all prior or contemporaneous oral and written understandings, agreements or negotiations relative to the leasing of the Premises are merged into and superseded by this
instrument. 
 35.5 Successors and Assigns. Subject to the provisions of Article 15 relating to Assignment
and Sublease, this Lease is intended to and does bind the heirs, executors, administrators, successors and assigns of any and all of the parties hereto. 
 35.6 Notices. All notices, consents, approvals, requests, demands and other communications (collectively “notices”) which Landlord or Tenant are required or desire to serve
upon, or deliver to, the other shall be in writing and shall be sent by certified or registered U.S. mail, return receipt requested, or by personal delivery, or by a reputable commercial overnight courier service (such as, but not limited to,
Federal Express), to the appropriate address indicated below, or at such other place or places as either Landlord or Tenant may, from time to time, designate in a written notice given to the other. If the term “Tenant” in this Lease refers
to more than one person or entity, Landlord shall be required to make service or delivery, as aforesaid, to any one of said persons or entities only. Notices shall be deemed sufficiently served or given at the time of receipt. Any notice, request,
communication or demand by Tenant to Landlord shall be addressed to the Landlord at the management office in the Building, Attention: Vice President-Property Management with a copy to David A. Ebby, Esquire, Hangley Aronchick Segal &
Pudlin, One Logan Square, 27th Floor, Philadelphia, Pennsylvania 19103-6933, and if requested in writing by the Landlord, given or served simultaneously to the Landlord’s mortgagee at the address specified in such request. Any notice from
Landlord to Tenant shall be addressed as follows: 
 Rejection or other refusal to accept a notice or the inability to deliver the same because
of a changed address of which no notice was given, shall be deemed to be receipt of the notice on the date delivery was first attempted. 
 35.7 Severability. If any provision of this Lease, the deletion of which would not adversely affect the receipt of any material benefit by either party hereunder, shall be held
invalid or unenforceable to any extent, the remaining provisions of this Lease shall not be affected thereby and each of said provisions shall be valid and enforceable to the fullest extent permitted by law. 
  

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 35.8 Time of Essence. Time is of the essence of this Lease and each
provision hereof in which time of performance is established. 
 35.9 Governing Law. This Lease shall be
governed by, interpreted and construed in accordance with the laws of the Commonwealth of Pennsylvania applicable to contracts executed and performed entirely within the Commonwealth of Pennsylvania. 
 35.10 Attorneys’ Fees. In the event of any litigation between the parties, the prevailing party shall be entitled
to obtain, as part of the judgment, all reasonable attorneys’ fees, costs and expenses incurred in connection with such litigation, except as may be limited by applicable law. 
 35.11 Light and Air. Any diminution or shutting off of light, air or view by any structure which may be erected on
lands adjacent to the Building or any other portion of the Property shall in no manner affect this Lease or impose any liability whatsoever on Landlord. 
 35.12 Bankruptcy Prior to Commencement. If, at any time prior to the Commencement Date, any action is taken by or against Tenant in any court pursuant to any statute pertaining to
bankruptcy or insolvency or the reorganization of Tenant, Tenant makes any general assignment for the benefit of creditors, a trustee or receiver is appointed to take possession of substantially all of Tenant’s assets or of Tenant’s
interest in this Lease, or there is an attachment, execution or other judicial seizure of substantially all of Tenant’s assets or of Tenant’s interest in this Lease, then this Lease shall ipso facto be canceled and terminated and of no
further force or effect. In such event, neither Tenant nor any person claiming through or under Tenant or by virtue of any statute or of any order of any court shall be entitled to possession of the Premises or any interest in this Lease and
Landlord shall, in addition to any other rights and remedies under this Lease, be entitled to retain any Rent, security deposit or other monies received by Landlord from Tenant as liquidated damages. 
 35.13 Force Majeure. Neither party shall be liable for any failure to comply or delay in complying with its obligations
hereunder (other than the obligation to pay sums of money) if such failure or delay is due to force majeure events. Landlord shall not be obliged to settle any strike to avoid a force majeure event from continuing. 
 35.14 Applicable Laws. At its sole cost and expense, Tenant shall promptly comply with all requirements of Applicable
Laws, other than making structural changes, relating to or arising out of the use, occupancy, repair or alteration of the Premises. 
 35.15 Estoppel Certificates. Either party shall, without charge, at any time and from time to time hereafter, within [10] days after written request of the other, certify by written instrument duly executed and
acknowledged to any mortgagee or purchaser, or proposed mortgagee or proposed purchaser, or any other person, firm or corporation specified in such request: (a) as to whether this Lease has been supplemented or amended, and, if so, the
substance and manner of such supplement or amendment; (b) as to the validity and force and effect of this Lease, in accordance with its tenor as then constituted; (c) as to the existence of any default thereunder; (d) as to the
existence of any offsets, counterclaims or defenses thereto on the part of 
  

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such other party; (e) as to the commencement and expiration dates of the term of this Lease and the date to which Rent has been paid; and (f) as to any other matters as may reasonably
be so requested. Any such certificate may be relied upon by the party requesting it and any other person, firm or corporation to whom the same may be exhibited or delivered and the contents of such certificate shall be binding on the party executing
same. OPTIONAL CLAUSE: [If any such estoppel is not executed within such 10-day period, then, in addition to any other right or remedy which Landlord may have, at Landlord’s option, Landlord may execute any such estoppel on behalf of
Tenant as Tenant’s attorney-in-fact, and Tenant hereby appoints Landlord its attorney-in-fact for such purpose. Such appointment and agency are coupled with an interest and are irrevocable.] 
 35.16 Examination of Lease. The submission of this instrument for examination or signature by Tenant, Tenant’s agents or
attorneys, does not constitute a reservation of, or an option to lease, and this instrument shall not be effective or binding as a lease or otherwise until its execution and delivery by both Landlord and Tenant. 
 35.17 Landlord Liability. Notwithstanding anything in this Lease or any law to the contrary, the liability of Landlord
hereunder (including any successor landlord hereunder) and any recourse by Tenant against Landlord shall be limited solely to the interest of Landlord in the Property, and neither Landlord, nor any of its constituent members, nor any of their
respective affiliates, partners, directors, officers, employees, agents or shareholders shall have any personal liability therefor, and Tenant, for itself and all persons claiming by, through or under Tenant, expressly waives and releases Landlord
and such related persons and entities from any and all personal liability. 
 35.18 Execution by Tenant. The
persons executing this Lease on behalf of Tenant represent and warrant to Landlord that they are duly authorized to execute and deliver this Lease on Tenant’s behalf, and that this Lease is binding upon Tenant in accordance with its terms.

 OPTIONAL CLAUSE: 
 35.19 Landlord’s Waiver. Landlord agrees to execute waivers of Landlord’s inchoate lien for Rent in conjunction with the financing of Tenant’s fixtures, machinery, inventory and/or equipment in form reasonably
satisfactory to Tenant and Tenant’s lender(s), provided no Event of Default has occurred and remains uncured at the time a waiver is requested. 
 OPTIONAL CLAUSE: 
 36 CONFESSION OF JUDGMENT. 
 36.1 CONFESSION OF JUDGMENT FOR RENT. TENANT HEREBY EMPOWERS ANY PROTHONOTARY OR ATTORNEY OF ANY COURT OF RECORD TO APPEAR
FOR TENANT AFTER AN EVENT OF DEFAULT IN ANY AND ALL ACTIONS WHICH MAY BE BROUGHT FOR RENT AND/OR THE CHARGES, PAYMENTS, COSTS AND EXPENSES HEREIN RESERVED AS RENT, OR HEREIN AGREED TO BE PAID BY TENANT AND TO SIGN FOR TENANT AN AGREEMENT FOR
ENTERING IN ANY COMPETENT COURT AN ACTION OR ACTIONS FOR RECOVERY OF SUCH RENT OR OTHER CHARGES OR EXPENSES, 
  

 36 

 
AND IN SAID SUITS OR IN SAID ACTION OR ACTIONS TO CONFESS JUDGMENT AGAINST TENANT FOR ALL OR ANY PART OF THE RENT SPECIFIED IN THIS LEASE THEN DUE AND UNPAID, AND OTHER CHARGES, PAYMENTS, COSTS
AND EXPENSES RESERVED AS RENT, TOGETHER WITH AN ATTORNEY’S COMMISSION OF FIVE PERCENT OF THE AMOUNT DUE (BUT NOT LESS THAN $15,000). SUCH AUTHORITY SHALL NOT BE EXHAUSTED BY ONE EXERCISE THEREOF, BUT JUDGMENT MAY BE CONFESSED AS AFORESAID FROM
TIME TO TIME AFTER SUBSEQUENT EVENTS OF DEFAULT. 
 36.2 CONFESSION OF JUDGMENT FOR POSSESSION. UPON AN
EVENT OF DEFAULT OR THE EXPIRATION OF THE TERM, IT SHALL BE LAWFUL FOR ANY ATTORNEY OF ANY COURT OF RECORD TO APPEAR AS ATTORNEY FOR TENANT AS WELL AS FOR ALL PERSONS CLAIMING BY, THROUGH OR UNDER TENANT AND TO SIGN AN AGREEMENT FOR ENTERING IN ANY
COMPETENT COURT AN ACTION IN EJECTMENT AGAINST TENANT AND ALL PERSONS CLAIMING BY, THROUGH OR UNDER TENANT AND THEREIN CONFESS JUDGMENT FOR THE RECOVERY BY LANDLORD OF POSSESSION OF THE PREMISES, FOR WHICH THIS LEASE SHALL BE ITS SUFFICIENT WARRANT,
WHEREUPON, IF LANDLORD SO DESIRES, A WRIT OF POSSESSION OR OTHER APPROPRIATE WRIT UNDER THE PENNSYLVANIA RULES OF CIVIL PROCEDURE THEN IN EFFECT MAY ISSUE FORTHWITH, WITHOUT ANY PRIOR WRIT OR PROCEEDINGS; PROVIDED, HOWEVER, IF THIS LEASE IS
TERMINATED AND POSSESSION OF THE PREMISES REMAIN IN OR BE RESTORED TO TENANT, LANDLORD SHALL HAVE THE RIGHT FOR THE SAME EVENT OF DEFAULT AND UPON ANY SUBSEQUENT EVENT OF DEFAULT OR EVENTS OF DEFAULT, TO BRING ONE OR MORE FURTHER ACTION OR ACTIONS
AS HEREINBEFORE SET FORTH TO RECOVER POSSESSION OF THE PREMISES AND CONFESS JUDGMENT FOR THE RECOVERY OF POSSESSION OF THE PREMISES AS HEREIN ABOVE PROVIDED. 
 36.3 PROCEEDINGS. IN ANY ACTION OF EJECTMENT, LANDLORD SHALL FIRST CAUSE TO BE FILED IN SUCH ACTION AN AFFIDAVIT MADE BY IT OR SOMEONE ACTING FOR IT, SETTING FORTH THE FACTS NECESSARY TO
AUTHORIZE THE ENTRY OF JUDGMENT, AND, IF A TRUE COPY OF THIS LEASE (AND OF THE TRUTH OF THE COPY SUCH AFFIDAVIT SHALL BE SUFFICIENT EVIDENCE) BE FILED IN SUCH ACTION, IT SHALL NOT BE NECESSARY TO FILE THE ORIGINAL AS A WARRANT OF ATTORNEY, ANY RULE
OF COURT, CUSTOM OR PRACTICE TO THE CONTRARY NOTWITHSTANDING. TENANT RELEASES TO LANDLORD AND TO ANY AND ALL ATTORNEYS WHO MAY APPEAR FOR TENANT, ALL PROCEDURAL ERRORS IN SAID PROCEEDINGS AND ALL LIABILITY THEREOF. IF PROCEEDINGS SHALL BE COMMENCED
BY LANDLORD TO RECOVER POSSESSION UNDER THE PENNSYLVANIA ACTS OF ASSEMBLY AND RULES OF CIVIL PROCEDURE UPON AN EVENT OF DEFAULT, TENANT SPECIFICALLY WAIVES THE RIGHT TO THE THREE MONTHS’ NOTICE AND TO THE 15 OR 30 DAYS NOTICE REQUIRED BY THE
PENNSYLVANIA LANDLORD AND TENANT ACT OF 1951, AND AGREES THAT FIVE DAYS NOTICE SHALL BE SUFFICIENT IN EITHER OR ANY SUCH CASE. 
  

 37 

 36.4 ACKNOWLEDGMENT OF CONFESSION OF JUDGMENT. TENANT CONFIRMS TO LANDLORD
THAT (I) THIS LEASE AND THE FOREGOING WARRANT OF ATTORNEY HAVE BEEN NEGOTIATED AND AGREED UPON IN A COMMERCIAL CONTEXT; (II) TENANT IS A BUSINESS ENTITY AND ITS PRINCIPALS ARE KNOWLEDGEABLE IN COMMERCIAL MATTERS; (III) TENANT HAS CONSULTED WITH
ITS OWN SEPARATE COUNSEL REGARDING THIS LEASE; (IV) ON THE ADVICE OF ITS OWN SEPARATE COUNSEL, TENANT HAS AGREED TO THE AFORESAID WARRANT OF ATTORNEY TO CONFESS JUDGMENT AGAINST TENANT; AND (V) TENANT UNDERSTANDS THAT IT IS WAIVING CERTAIN
RIGHTS WHICH IT WOULD OTHERWISE POSSESS. 
 IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of
the date set forth in the first paragraph above. 
  

			
	LANDLORD:
	
	 PHILADELPHIA PLAZA-PHASE II, LP,
 a Pennsylvania limited partnership

		
	By:	 	  

		 	James A. Thomas, Authorized Signatory
	
	TENANT:
	
	[INSERT TENANT NAME]
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 38 

 EXHIBIT A 
 FLOOR PLAN 
  

 A-1 

 EXHIBIT B 
 GLOSSARY OF DEFINED TERMS 
 1 Applicable Laws. All laws, statutes,
ordinances and other governmental rules, regulations and requirements, now or hereafter in effect, which apply to the Building and/or the Premises and/or Tenant’s operations within the Premises, including, without limitation, those pertaining
to environmental protection. 
 2 Building. The 41-story office building known as Two Commerce Square, located at 2005
Market Street, Philadelphia, Pennsylvania. 
 3 Building Systems. The electrical, mechanical, vertical transportation, sprinkler,
fire and life safety, structural, security, heating, ventilation and air conditioning systems serving the Building, including pipes, ducts and conduits forming an integral part of such systems. 
 4 OPTIONAL (See Articles 4 and 8) Commencement Date.
                    , or such sooner date as Tenant takes occupancy of the Premises. 
 5 Force Majeure Events. Acts of God, terrorism, inability to obtain labor, strikes, lockouts, lack of materials, governmental
restrictions, enemy actions, civil commotion, riots, insurrection, war, fire, earthquake, unavoidable casualty or other similar causes beyond such party’s reasonable control. 
 6 Garage. The subterranean parking garage located below the Building. 
 7
Gross Property Income. All Rent and other income actually collected from operations during each year, except interest income derived from funds on deposit in financial institutions. “Rent” shall mean all amounts
collected from tenants in the Property other than (i) security and other tenant deposits (other than as applied to pay Rent) and (ii) Rents paid in advance by tenants, except the portion of any such advance payment applied to the Rent due
for the current month. Gross Property Income shall include all income from the Property whether or not characterized as Rent, including parking charges, operating expense reimbursements and fees, amounts paid for after-hours or excess utilities, air
conditioning service or other services, amounts paid for special services rendered to tenants of the Building, and vending machine rental charges, but Gross Property Income shall not include any amounts received in settlement of insurance claims by
Landlord, as awards in litigation or other proceedings (other than such amounts which compensate Landlord for income which Landlord otherwise would have received from the Property), as costs and fees recovered in litigation, or from refund or return
of taxes paid or amounts paid under construction or service contracts. 
 8 Lease Year. A period of 12 calendar months
commencing on the Commencement Date or on any anniversary thereof; provided, however, that if the Commencement Date is not the first day of a calendar month, “Lease Year” shall mean a period of 12 calendar months commencing
on the first day of the first calendar month after the Commencement Date or any anniversary thereof and in such case, the first Lease Year shall also include the period from the Commencement Date through the last day of the calendar month in which
the Commencement Date occurs. 
  

 B-1 

 9 Mortgage. All existing and future mortgages, ground leases, and/or other similar security
instruments which may now or hereafter encumber the Property and/or the Building, and all renewals, modifications, consolidations, replacements and extensions thereof. 
 10 Manager. Thomas Development Partners LP, or any successor manager of the Building. 
 11 Normal Working Hours. The periods from 8:00 a.m. to 6:00 p.m., Monday through Friday, and 9:00 a.m. to 2:00 p.m. Saturday, except New Year’s Day, President’s Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, Christmas Day (on the days such holidays are generally observed) and such other holidays as are generally recognized in Philadelphia, Pennsylvania. 
 12 Operating Expenses. The total of all actual costs incurred by Landlord, calculated in accordance with generally accepted accounting principles, in connection with the management,
operation, maintenance, cleaning, protecting, servicing and repair of the Property. Operating Expenses shall include, without limitation, (i) the cost of providing, managing, operating, maintaining and repairing air conditioning, sprinkler,
fire and life safety, electricity, steam, heating, mechanical, ventilation, common area lighting, escalator and elevator systems and all other utilities and the cost of supplies and equipment and maintenance and service contracts in connection
therewith; (ii) the cost of repairs, general maintenance and cleaning, trash removal, telephone service, janitorial service, and supplies, security and parking shuttle and other Property services, if any; (iii) the cost of fire, extended
coverage, boiler, sprinkler, apparatus, commercial general liability, property damage, Rent, earthquake and other insurance; (iv) wages, salaries and other labor costs including taxes, insurance, retirement, medical and other employee benefits,
including, without limitation, such costs for a transportation system manager and/or rideshare coordinator for the Building; (v) fees, charges and other costs, including management fees, consulting fees, legal fees and accounting fees, of all
independent contractors engaged by Landlord or reasonably charged by Landlord if Landlord performs management services in connection with the Property, provided that at no time shall the management fee charged by Landlord or any independent
management company retained by Landlord to manage the Property exceed 3% of Gross Property Income; (vi) the fair market rental value of the Property manager’s offices and storage areas in the Building, provided said offices and storage
areas are devoted solely to the management, operation, maintenance or repair of the Property; (vii) the cost of business taxes and licenses; (viii) fees imposed by any federal, state or local government for fire and police protection,
trash removal or other similar services which do not constitute Real Property Taxes as defined below; (ix) any charges which are payable by Landlord pursuant to a service agreement with the City of Philadelphia, under a special assessment
district or pursuant to any other lawful means; (x) the costs of contesting the validity or applicability of any governmental enactment which would increase Operating Expenses; (xi) capital costs incurred in connection with any equipment,
device or other improvement reasonably anticipated to achieve economies in the operation, maintenance or repair of the Property or portion thereof, or to comply with Applicable Laws not effective with respect to the Property as of the Commencement
Date; provided, however, the same shall be amortized (including interest on the unamortized cost) over the cost recovery period (i.e., the anticipated period to recover the full cost of such capital item from cost savings achieved by
such capital item), of the relevant capital item as reasonably determined by Landlord; and (xii) depreciation of the cost of acquiring, or the rental expense of, personal property used in the maintenance, operation and repair of the Building or
Property. 
  

 B-2 

 Operating Expenses attributable to the items set forth in (iv), (v) and (vi) above
in any calendar year shall not increase more than five percent from the immediately prior calendar year. 
 Operating Expenses
shall be adjusted to reflect 100% occupancy of the Building for any period in which the Building is not 100% occupied. Landlord shall have the right, from time to time, to allocate some or all of the Operating Expenses for the Property among
different portions, such as office, retail or other appropriate portions, of the Property (“Cost Pools”). The Operating Expenses within each such Cost Pool shall be allocated and charged to the tenants within such Cost Pool as an amount
per square foot of Rentable Area, based on the total Rentable Area within such Cost Pool. 
 Operating Expenses shall not
include the following: 
 (a) The cost of repair to the Building including the Premises, to the extent the cost of the repairs
is reimbursed by insurance or condemnation proceeds; 
 (b) Leasing commissions paid to agents of Landlord, other brokers or any
other persons in connection with the leasing of space in the Building or any other portion of the Property; 
 (c) The cost of
improving or renovating space for tenants (including Tenant) or space vacated by any tenant (including Tenant); 
 (d) The cost
of utilities charged to individual tenants (including Tenant) and payroll, material and contract costs of other services charged to tenants (including Tenant); 
 (e) The cost of painting and decorating the Premises or premises of other tenants; 
 (f) Depreciation of the Building and other real property structures in the Property; 
 (g) Interest, points, and fees
on debt or amortization payments on any mortgages on the Property or any part thereof; 
 (h) Legal and other related expenses
associated with the negotiation or enforcement of leases or the defense of (i) Landlord’s title to the Land, the Building or other portions of the Property; or (ii) any action based solely on an alleged breach by Landlord of a lease
pertaining to space within the Building; 
 (i) Advertising costs incurred directly for leasing individual space in the Building
or other portions of the Property; 
 (j) Landlord’s general corporate overhead, including salaries of officers or other
employees of Landlord, and Landlord’s general administrative expenses not directly related to the operation of the Property; 
  

 B-3 

 (k) Any compensation paid to clerks, attendants or other persons in commercial concessions
operated by Landlord; 
 (1) All items and services for which Tenant or any other tenant in the Building reimburses Landlord,
provided that, any item or service supplied selectively to Tenant shall be paid for by Tenant; 
 (m) To the extent reimbursed
by parking fees, the cost of payroll for clerks, attendants and other persons, bookkeeping, garage keepers liability insurance, parking management fees, tickets and uniforms directly incurred in operating the Garage; 
 (n) Costs of capital improvements to the Building and other portions of the Property, except to the extent included in Operating Expenses
pursuant to (xi) above; 
 (o) Amounts paid to any party, including a division or affiliate of Landlord, providing
materials, services (except Building management), labor, or equipment to the extent that such amounts exceed the competitive costs of such materials, services (except Building management), labor or equipment when provided by an independent party in
an arm’s-length transaction; 
 (p) Any costs, fines or penalties imposed due to Landlord’s deliberate or negligent
actions or omissions with respect to any governmental rule or authority; 
 OPTIONAL CLAUSE: 
 (q) Costs of installing any specialty service, such as a conference center or other facility which is made available to tenants on a non-fee
(or nominal fee) basis; however, if any such service or facility, such as an athletic club, is made available on the basis of material payment for use or membership, then the costs of maintenance and operation, as well as the cost of installation,
of such service or facility, will be excluded from Operating Expenses; and 
 OPTIONAL CLAUSE: 
 (r) The cost of any environmental clean-up of the Property ordered by any applicable environmental authority or agency having jurisdiction
over the Property. 
 13 Property. The Building, the Garage, and the land on which they are constructed, which land
consists of approximately 64,608 square feet located at the northwest corner of 20th and Market Streets, Philadelphia, Pennsylvania. 
 14
Pro Rata Share. A percentage calculated by dividing the Rentable Square Feet in the Premises by the total Rentable Square Feet in the Building. For purposes of this Lease, Landlord and Tenant agree that at the inception of this
Lease, Tenant’s Pro Rata Share will be     %. 
 15 Real Property Taxes. All taxes,
assessments (special or otherwise) and charges levied upon or with respect to the Property and any ad valorem taxes on personal property used in connection therewith. Real Property Taxes shall include, without limitation, any tax, fee or excise on
the act of entering into this Lease, on the occupancy of Tenant, the Rent hereunder or 
  

 B-4 

 
in connection with the business of owning and/or renting space in the Property which are now or hereafter levied or assessed against Landlord by the United States of America, the Commonwealth of
Pennsylvania, the City of Philadelphia or any political subdivision, public corporation, district or other political or public entity, and shall also include any other tax, assessment, fee or excise, however described (whether general or special,
ordinary or extraordinary, foreseen or unforeseen), which may be levied or assessed in lieu of, or as a substitute for, any Real Property Taxes. Landlord may pay any such special assessments in installments when allowed by law, in which case Real
Property Taxes shall include any interest charged thereon. Real Property Taxes shall also include any private assessments or the Building’s contribution towards a private or quasi-public cost-sharing agreement for the purpose of augmenting or
improving the quality of service and amenities normally provided by governmental agencies. Real Property Taxes shall also include legal fees, costs and disbursements incurred in connection with proceedings to contest, determine or reduce Real
Property Taxes. Real Property Taxes shall not include income, franchise, transfer, inheritance or capital stock taxes, unless, due to a change in the method of taxation, any of such taxes are levied or assessed against Landlord, in whole or in part,
in lieu of, as a substitute for, any other tax which would otherwise constitute a Real Property Tax. In the event that at any time during the term of this Lease the assessment for the Property is reduced on appeal with a result that Landlord
receives a refund of any real estate taxes, Landlord shall pay to Tenant its Pro Rata Share of any such refund (net of Landlord’s out-of-pocket expenditures in connection with such appeal). 
 16 Rentable Area or Rentable Square Feet. The actual, measurable area (square footage) within the Premises adjusted upward so as to
allocate to the Premises a portion of the common areas and non-usable areas of the Building. The parties agree that at the inception of the Lease the Premises contain             
Rentable Square Feet and that the Building contains 953,276 Rentable Square Feet (including the Premises). 
 17 Service
Facilities. The janitorial, security and building maintenance services used in the Building. 
 18 *[Tenant
Improvements. Physical improvements to the Premises, including, without limitation, partitions, wiring, floor coverings, wall coverings, kitchens, HVAC, lighting, ceilings, outlets and millwork), all as specifically shown or described
in Tenant’s Final Plans (defined in Exhibit D).]* 
  

 B-5 

 EXHIBIT C 
 MEMORANDUM OF LEASE COMMENCEMENT 
 THIS
MEMORANDUM is made and entered into as of             , 200    , by and between PHILADELPHIA PLAZA-PHASE II, LP, a Pennsylvania limited
partnership, (“Landlord”), and                              (“Tenant”) with
respect to that certain Office Lease between Landlord and Tenant dated as of             , 200    , (the “Lease”). 
 The term of the Lease commenced on             ,
200    , defined in the Lease as the Commencement Date. The term of the Lease shall expire on                     
unless sooner terminated or extended pursuant to the terms of the Lease. 
 IN WITNESS WHEREOF, Landlord and Tenant have
executed this Memorandum as of the date set forth in the first paragraph above. 
  

			
	LANDLORD:
	
	PHILADELPHIA PLAZA-PHASE II, LP, a Pennsylvania limited partnership
		
	By:	 	  

		 	James A. Thomas, authorized signatory

			
	
	TENANT:
	
	[INSERT TENANT NAME]
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 C-1 

 EXHIBIT D 
 [ALLOWANCE/TENANT IMPROVEMENT BY TENANT] 
 TENANT
IMPROVEMENT LETTER 
 This Tenant Improvement Letter supplements the Office Lease (the “Lease”) dated
            , 200    , executed concurrently herewith, by and between PHILADELPHIA PLAZA-PHASE II, LP as Landlord, and
                            , as Tenant, covering certain premises described in the Lease. Terms
capitalized, but not otherwise defined herein, shall have the meanings ascribed to them in the Lease. 
 The parties hereby
agree as follows: 
 1. Construction of the Building. 
 1.1 Base Building Definition. Landlord has constructed the Building consisting of the following: (a) the Building
shell and exterior, (b) the core area, including necessary mechanical, electrical, sprinkler, plumbing, life safety, heating, air conditioning, ventilation and structural systems within the Building core, stubbed out to the face of the core
wall at locations determined by Landlord, (c) finished core area toilet rooms including necessary plumbing fixtures, ceramic tile floors, accessories, ceilings and lighting, (d) unpainted exterior dry wall or lath and plaster covering the
exposed side of all exposed core walls, core and perimeter columns and the interior exposed side of all exterior building wall areas except at and under windows, (e) public stairways, (f) passenger and freight elevators, (g) parking
facilities, (h) ground floor lobby, (i) unfinished elevator lobbies (except for dry-wall, taped walls, and prime painted elevator doors), (j) exterior plazas and landscaping, (k) loading dock, (1) sprinkler main loop from
core into the Premises, (m) Building standard window coverings and (n) drinking fountains as required by code (collectively referred to as the “Base Building Improvements”). To the extent that the Base Building Improvements must
be changed or added to in order to accommodate the special needs of Tenant in the Premises, such changes or additions shall be considered Tenant Improvements. Any items provided by Landlord in the Premises in addition to the Base Building
Improvements shall be paid for by Tenant, subject to Section 3 below. 
 1.2 Exclusions From Base Building
Improvements. Base Building Improvements shall include all of the items described in Section 1.1 and shall not include any Tenant Improvements; without limiting the generality of the foregoing, Base Building Improvements shall
exclude the following: 
 (a) Tenant ceilings and lighting; 
 (b) Floor finish in the Premises; 
 (c) Interior finishes of any kind within the Premises (including elevator lobbies); 
 (d) Interior partitions, doors, and hardware within the Premises; 
  

 D-1 

 (e) Terminal boxes and reheat coils or other HVAC or air distribution devices, including
distribution duct work and controls, beyond the core of the Building; 
 (f) Tenant’s furniture, fixtures and equipment,
including telephones, computers and cabling therefor; 
 (g) Distribution of electrical services, plumbing services and
sprinklers from the core, and domestic hot water heater and associated hot water piping; 
 (h) Any and all signs for Tenant and
the power therefor; and 
 (i) Security, fire and life-safety systems throughout the Premises, including exit signs, intercoms
and extinguishers. 
 2 Tenant’s Plans and Specifications. 
 2.1 Submission of Plans and Specifications. 
 (a) Tenant and Landlord, and their engineers and architects, shall coordinate with each other in the design of Tenant’s Plans (defined below) prior to the initial submission of Tenant’s Plans to
Landlord. 
 (b) Tenant shall submit to Landlord for Landlord’s approval, fully completed and engineered working drawings
and specifications suitable for review and permitting by local agencies having jurisdiction (if applicable), for the layout, improvement and finish of the entire Premises consistent with the design and construction of the Base Building Improvements,
including electrical and mechanical drawings, capacity reports, dimensioned partition plans, floor and wall finish plans, reflected ceiling plans, power, telephone communications and data plans, life safety devices, construction detail sheets
including millwork detail plans, showing the location of partitions, light fixtures, electrical outlets, telephone outlets, sprinklers, doors, equipment specifications (including weight specifications and cooling requirements) and power requirements
(including voltage, amps, phase, and special plugs and connections), wall finishes, floor coverings, millwork and other Tenant Improvements required by Tenant (collectively, “Tenant’s Plans”). The Tenant Improvements shall include,
and Tenant’s Plans shall provide for, electricity and BTU meters for measuring electricity and HVAC use within the Premises. 
 (c) For any necessary engineering of Tenant’s Plans, Tenant shall directly employ only mechanical, electrical and structural engineers approved by Landlord, which approval shall not be unreasonably withheld or delayed. Landlord shall
have no responsibility for any of such engineering of Tenant’s Plans, which shall be at Tenant’s expense, subject to Section 3 below. Tenant’s Plans shall be prepared by a licensed architect, shall be sufficient for Tenant to
secure the approval of governmental authorities with jurisdiction over the approval thereof (if applicable) and shall be in a form meeting Landlord’s reasonable requirements. Tenant’s architect and engineers shall coordinate with
Landlord’s architect, engineers and tenant improvement manager to make all of Tenant’s Plans consistent with the plans and specifications for construction of the Building and the Premises. Landlord and Landlord’s engineers shall have
the right to review each phase of Tenant’s design development and Tenant’s Plans to assure their compatibility and coordination with Building Systems. Tenant shall be solely responsible for the design and function of Tenant’s Plans,
including their integration with Building Systems, notwithstanding Landlord’s review and approval thereof. 
  

 D-2 

 2.2 Approval by Landlord. Tenant’s Plans shall be subject to
Landlord’s approval, which approval shall not be unreasonably withheld or delayed. Landlord agrees to approve or disapprove Tenant’s plans within 15 business days after receipt thereof. 
 (a) Tenant’s Substitutions Before Plans Approved. After Landlord’s initial review of Tenant’s Plans,
Landlord shall give Tenant notice of all specified materials and methods of construction required in connection with Tenant Improvements the procurement or construction or the use of which, in Landlord’s opinion, would violate any applicable
codes, rules, laws or regulations. However, notwithstanding the other provisions of this Section 2.2, Landlord shall not be obligated to ascertain the existence of, or notify Tenant of any such violations of applicable codes, rules, laws or
regulations and the parties agree that it is the responsibility of Tenant’s architect and engineers to assure the compliance by Tenant with such codes, rules, laws and regulations. Tenant shall make reasonable substitutions of such materials or
methods of construction, which such substitutions will not themselves cause such violation of applicable codes, rules, laws and regulations, subject to Landlord’s approval, which shall not be unreasonably withheld or delayed (provided that
Landlord’s disapproval based on the fact that the use of such materials or methods of construction would violate such applicable codes, rules, laws or regulations shall be deemed reasonable). 
 (b) Substitutions After Plans Approved. If during the course of construction and after the approval of the Final Plans
(as defined below) Landlord reasonably determines that the procurement of particular materials or construction of portions of the Tenant Improvements specified in the Final Plans will violate any applicable codes, rules, laws or regulations, then
Landlord shall give notice thereof to Tenant and Tenant shall make reasonable substitutions of such materials and construction, which such substitutions will not themselves cause such violation of applicable codes, rules, laws and regulations,
subject to Landlord’s approval. 
 (c) Landlord Disapproval; Tenant Revisions. If Landlord disapproves
Tenant’s Plans, or any portion thereof, Landlord shall promptly notify Tenant thereof and of the revisions which Landlord reasonably requires in order to obtain Landlord’s approval. As promptly as reasonably possible thereafter, Tenant
shall submit to Landlord plans and specifications incorporating the revisions required by Landlord. Said revisions shall be subject to Landlord’s approval, which shall not be unreasonably withheld or delayed. If Landlord disapproves revised
Tenant’s Plans, Landlord shall so notify Tenant thereof and of the further revisions Landlord reasonably requires in order to grant approval. The foregoing process shall be repeated until Landlord finally approves all of Tenant’s Plans
required for the Tenant Improvements in all of the Premises, so that Landlord and Tenant have an agreed upon set of final plans and specifications. The final plans and specifications approved by Landlord shall be referred to as the “Final
Plans.” Approval by Landlord shall not be deemed to be a representation by Landlord as to the adequacy or correctness of the design of the Tenant Improvements. 
  

 D-3 

 (d) Construction of Tenant Improvements. The Tenant Improvements shall
be constructed by contractors approved in advance by Landlord, which approval shall not be unreasonably withheld or delayed. In addition to any amounts for which Tenant may be responsible for under Article 8 of the Lease, Tenant shall be solely
responsible for (a) any delay or increased cost in completing the Tenant Improvements; (b) the design, function and maintenance of all Tenant Improvements; (c) all costs and expenses necessary to increase permitted structural floor
loading in order to accommodate Tenant’s libraries, file rooms, unusual live loads and other such uses; and (d) incidental costs of construction such as hoisting and utility consumption. No construction shall be commenced until Tenant
has delivered to Landlord (i) a certificate evidencing the liability insurance coverages for Tenant’s general contractor consistent with Article 12 of the Lease, in form and content satisfactory to Landlord and its mortgagee, and
(ii) a time-stamped copy of a waiver of liens signed by Tenant’s general contractor and filed with the Prothonotary of Philadelphia, along with a copy of the Prothonotary’s receipt for the filing fee. 
 2.3 Space Planning. Any space planner utilized by Tenant shall have experience in space planning in high-rise office
buildings in the Philadelphia central business district and shall be subject to Landlord’s approval, which shall not be unreasonably withheld or delayed. All design and programming, space planning and interior decorating services such as
selection of wall paint colors and/or wall coverings, furniture, fixtures, carpeting and any or all other decorator selection efforts required by Tenant shall be provided by Tenant at Tenant’s expense, subject to Landlord’s obligations
under Section 3 hereof. 
 2.4 Permits. Tenant, or Tenant’s representative, shall secure the
approval of governmental authorities and all permits required by governmental authorities having jurisdiction over such approvals and permits for the Tenant Improvements, with Landlord’s cooperation to the extent practicable. Tenant shall
commence construction of the Tenant Improvements as soon as practicable after issuance of all such necessary permits. 
 2.5
Construction Management. If Tenant so requests, Landlord agrees to cause Manager to supervise the construction of the Tenant Improvements in consideration of Tenant’s payment to Manager of a construction supervision fee
equal to five percent of the total cost of the Tenant Improvements. Such fee shall be paid to Manager periodically and pro rata with the disbursement of the Tenant Improvement Allowance pursuant to Section 3.1 hereof. 
 2.6 Conformed Plans. Within 60 days after substantial completion of the Tenant Improvements and receipt from the
general contractor of all field changes, if any, Tenant shall submit to Landlord a set of conformed plans (“as-builts”) on mylar incorporating all field changes made and all changes and/or revisions that have been made subsequent to the
submission of the Final Plans specified in Section 2.2. 
 3 Periodic Payments. 
 3.1 Tenant Improvement Allowance. 
 (a) Landlord will make available the sum of $         minus amounts disbursed for relocation and moving expenses pursuant to Article
         of the Lease (the “Tenant Improvement Allowance”) to defray the cost of the Tenant Improvements and certain related expenses, as more fully set forth in Articles
         and          of the Lease. 
  

 D-4 

 (b) Beginning not sooner than 30 days after Tenant is provided access to the Premises and
continuing not more often than once every 30 days thereafter, Tenant shall prepare and submit to Landlord a statement showing in reasonable detail amounts expended or incurred by Tenant pursuant to Articles
             and              of the Lease which have not previously been paid for by Landlord. Each such statement
shall be accompanied by canceled checks or receipted invoices and partial lien releases from any person or entity that has provided supplies or services to the Premises. In addition, each such statement shall include a certification from Tenant that
all sales taxes applicable to the Tenant Improvements have been paid, and that all labor and material for which payment is sought have been furnished and are satisfactory to Tenant. 
 (c) Within 30 days after submission by Tenant of each such statement, Landlord shall reimburse Tenant for the expenses covered by
Tenant’s statement, up to the amount of the Tenant Improvement Allowance. If Landlord fails to make such payment, Tenant shall give Landlord notice of such failure and if such failures continues for 10 days after receipt of such notice,
Tenant’s sole and exclusive remedy shall be to apply the amount of the defaulted payment (or payments, as the case may be) in reduction of Rent next due under the Lease. 
 (d) Notwithstanding the foregoing, Landlord will, as an accommodation to Tenant, pay directly to
                             Construction Company (“the GC”), or any other vendor, amounts
due for labor and/or materials furnished in connection with the Tenant Improvements. In such event, Tenant shall submit invoices in lieu of canceled checks or paid bills as required by paragraph (b) above, accompanied by Tenant’s request
for payment. Each such request shall include Tenant’s statement that it has approved the work for which payment is requested. Any such payments shall be for the account of Tenant and shall not create any contractual relationship between
Landlord and the GC, or any other vendor, or in any way obligate Landlord to the GC or any other vendor or any subcontractor or supplier. 
 4
Changes, Additions or Alterations. If Tenant shall request any change, addition, deletion or alteration in the Final Plans (“Change Order”), Tenant shall prepare and submit to Landlord plans, specifications and permits
with respect to such Change Order for Landlord’s approval. 
 5 Default. Any default by Tenant under the terms of this
Improvement Letter shall constitute an Event of Default under the Lease to which this Improvement Letter is attached, and shall entitle Landlord to exercise all remedies set forth in the Lease. 
 6 Reasonable Diligence. Both Landlord and Tenant agree to use reasonable diligence in performing all of their respective obligations
and duties under this Improvement Letter and in proceeding with the construction and completion of the Tenant Improvements in the Premises. 
 7
Limited Liability. The provisions of Section 35.17 of the Lease (“Landlord Liability”) are incorporated herein as if set forth in their entirety. 
  

 D-5 

 [ALTERNATE: TURNKEY/LANDLORD RESPONSIBLE FOR T.I.] 
 EXHIBIT D 
 TENANT IMPROVEMENT LETTER 
 This Improvement Letter supplements the Office Lease (the “Lease”) dated
            , 200    , executed concurrently herewith, by and between PHILADELPHIA PLAZA-PHASE II, LP as Landlord, and
                                 as Tenant, covering certain premises described in
the Lease. Terms capitalized, but not otherwise defined herein, shall have the meanings ascribed to them in the Lease. 
 The
parties hereby agree as follows: 
 1 Construction of the Building. 
 1.1 Base Building Definition. Landlord has constructed the Building consisting of the following: (a) the Building
shell and exterior, (b) the core area, including necessary mechanical, electrical, sprinkler, plumbing, life safety, heating, air conditioning, ventilation and structural systems within the Building core, stubbed out to the face of the core
wall at locations determined by Landlord, (c) finished core area toilet rooms including necessary plumbing fixtures, ceramic tile floors, accessories, ceilings and lighting, (d) unpainted exterior dry wall or lath and plaster covering the
exposed side of all exposed core walls, core and perimeter columns and the interior exposed side of all exterior building wall areas except at and under windows, (e) public stairways, (f) passenger and freight elevators, (g) parking
facilities, (h) ground floor lobby, (i) unfinished elevator lobbies (except for dry-wall, taped walls, and prime painted elevator doors), (j) exterior plazas and landscaping, (k) loading dock, (1) sprinkler main loop from
core into the Premises, (m) Building standard window coverings and (n) drinking fountains as required by code (collectively referred to as the “Base Building Improvements”). To the extent that the Base Building Improvements must
be changed or added to in order to accommodate the special needs of Tenant in the Premises, such changes or additions shall be considered Tenant Improvements. Any items provided by Landlord in the Premises in addition to the Base Building
Improvements shall be paid for by Tenant, subject to Section 3 below. 
 1.2 Exclusions From Base Building
Improvements. Base Building Improvements shall include all of the items described in Section 1.1 and shall not include any Tenant Improvements; without limiting the generality of the foregoing, base Building Improvements shall
exclude the following: 
 (a) Tenant ceilings and lighting; 
 (b) Floor finish in the Premises; 
 (c) Interior finishes of any kind within the Premises (including elevator lobbies); 
 (d) Interior partitions, doors, and hardware within the Premises; 
  

 D-1 

 (e) Terminal boxes and reheat coils or other HVAC or air distribution devices, including
distribution duct work and controls, beyond the core of the Building; 
 (f) Tenant’s furniture, fixtures and equipment,
including telephones, computers and cabling therefor; 
 (g) Distribution of electrical services, plumbing services and
sprinklers from the core, and domestic hot water heater and associated hot water piping; 
 (h) Any and all signs for Tenant and
the power therefor; and 
 (i) Security, fire and life-safety systems throughout the Premises, including exit signs, intercoms
and extinguishers. 
 2 Tenant’s Plans and Specifications. 
 2.1 Submission of Plans and Specifications. 
 (a) Tenant and Landlord, Landlord’s and Tenant’s engineers and architects shall coordinate with each other in the design of
Tenant’s Plans prior to the initial submission of Tenant’s Plans to Landlord. 
 (b) Promptly after execution of this
Lease, Tenant shall submit to Landlord for Landlord’s approval, fully completed and engineered working drawings and specifications suitable for review and permitting by local agencies having jurisdiction (if applicable), for the layout,
improvement and finish of the entire Premises consistent with the design and construction of the Base Building Improvements, including electrical and mechanical drawings, capacity reports, dimensioned partition plans, floor and wall finish plans,
reflected ceiling plans, power, telephone communications and data plans, life safety devices, construction detail sheets 
 including millwork
detail plans, showing the location of partitions, light fixtures, electrical outlets, telephone outlets, sprinklers, doors, equipment specifications (including weight specifications and cooling requirements) and power requirements (including
voltage, amps, phase, and special plugs and connections), wall finishes, floor coverings, millwork and other Tenant Improvements required by Tenant (collectively, “Tenant’s Plans”). The Tenant Improvements shall include, and
Tenant’s Plans shall provide for electricity and BTU meters for measuring electricity and HVAC use within the Premises. 
 (c) For any necessary engineering of Tenant’s Plans, Tenant shall directly employ only mechanical, electrical and structural engineers approved by Landlord, which approval shall not be unreasonably withheld or delayed. Landlord shall
have no responsibility for any of such engineering of Tenant’s Plans, which shall be at Tenant’s expense, subject to Section 3 below. Tenant’s Plans shall be prepared by a licensed architect, shall be sufficient for Tenant to
secure the approval of governmental authorities with jurisdiction over the approval thereof (if applicable) and shall be in a form meeting Landlord’s reasonable requirements. Tenant’s architect and engineers shall coordinate with
Landlord’s architect, engineers and tenant improvement manager to make all of Tenant’s Plans consistent with the plans and specifications for construction of the Building and the Premises. Landlord and Landlord’s engineers shall have
the right to review each phase of Tenant’s design development and Tenant’s Plans to assure their compatibility and coordination with Building Systems. Tenant shall be solely responsible for the design and function of Tenant’s Plans,
including their integration with Building Systems, notwithstanding Landlord’s review and approval thereof. 
  

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 2.2 Approval by Landlord. Tenant’s Plans shall be subject to
Landlord’s approval, which approval shall not be unreasonably withheld or delayed. 
 (a) Tenant’s Substitutions
Before Plans Approved. After Landlord’s initial review of Tenant’s Plans, Landlord shall give Tenant notice of all specified materials and methods of construction required in connection with Tenant Improvements the
procurement or construction or the use of which would violate any applicable codes, rules, laws or regulations. Notwithstanding the other provisions of this Section 2.2, Landlord shall not be obligated to ascertain the existence of, or notify
Tenant of any such violations of applicable codes, rules, laws or regulations and the parties agree that it is the responsibility of Tenant’s architect and engineers to assure the compliance by Tenant with such codes, rules, laws and
regulations. Tenant shall make reasonable substitutions of such materials or methods of construction, which such substitutions will not themselves cause such violation of applicable codes, rules, laws and regulations, subject to Landlord’s
approval, which shall not be unreasonably withheld or delayed (provided that Landlord’s disapproval based on the fact that the use of such materials or methods of construction would violate such applicable codes, rules, laws or regulations
shall be deemed reasonable). If Tenant fails to promptly make a reasonable substitution, Tenant shall be responsible for any increases in the costs of the materials or construction of the Tenant Improvements incurred by Landlord as a result of such
failure. 
 (b) Substitutions After Plans Approved. If during the course of construction and after the
approval of the Final Plans (as defined below) Landlord reasonably determines that the procurement of particular materials or construction of portions of the Tenant Improvements specified in the Final Plans will exceed the Tenant Improvement
Allowance or violate any applicable codes, rules, laws or regulations, then Landlord shall give notice thereof to Tenant and Tenant shall (i) in the case of materials or construction which will cause the Tenant Improvement Allowance to be
exceeded, either pay such excess or make a reasonable substitution of such materials and construction, and (ii) in all other cases, make reasonable substitutions of such materials and construction, which such substitutions will not themselves
cause such violation of applicable codes, rules, laws and regulations, subject to Landlord’s approval. If Tenant fails to promptly make a reasonable substitution, Tenant shall be responsible for any increases in the costs of the materials or
construction of the Tenant Improvements incurred by Landlord as a result of such failure. 
 (c) Landlord Disapproval;
Tenant Revisions. If Landlord disapproves Tenant’s Plans, or any portion thereof, Landlord shall promptly notify Tenant thereof and of the revisions which Landlord reasonably requires in order to obtain Landlord’s approval.
As promptly as reasonably possible thereafter, Tenant shall submit to Landlord plans and specifications incorporating the revisions required by Landlord. Said revisions shall be subject to Landlord’s approval, which shall not be unreasonably
withheld or delayed. If Landlord disapproves revised Tenant’s Plans, Landlord shall so notify Tenant thereof and of the further revisions Landlord reasonably requires in order to grant approval. The foregoing process shall be repeated until
Landlord finally approves all of Tenant’s Plans required for the Tenant Improvements in all of the Premises, so that Landlord and Tenant have an agreed upon set of final plans and specifications. The final plans and specifications approved by
Landlord shall be referred to as the “Final Plans.” Approval by Landlord shall not be deemed to be a representation by Landlord as to the adequacy or correctness of the design of the Tenant Improvements. 
  

 D-3 

 2.3 Construction of and Payment for Tenant Improvements. The Tenant
Improvements shall be constructed by Landlord’s contractors. In addition to any amounts for which Tenant may be responsible under Article 7 of the Lease, Tenant shall be solely responsible for (a) the design, function and maintenance of
all Tenant Improvements; (b) all costs and expenses necessary to increase permitted structural floor loading in order to accommodate Tenant’s libraries, file rooms, unusual live loads and other such uses; and (c) incidental costs of
construction such as hoisting and utility consumption. In addition to the foregoing, Tenant shall be solely responsible for any delay or increased cost in completing the Tenant Improvements if and to the extent caused by Tenant’s failure to
comply with its obligations under this Exhibit D. 
 2.4 Space Planning. Any space planner utilized by
Tenant shall have experience in space planning in high-rise office buildings in downtown Philadelphia and shall be subject to Landlord’s approval, which shall not be unreasonably withheld or delayed. All design and programming, space planning
and interior decorating services such as selection of wall paint colors and/or wall coverings, furniture, fixtures, carpeting and any or all other decorator selection efforts required by Tenant shall be provided by Tenant at Tenant’s expense,
subject to Landlord’s obligations under Section 3 hereof. 
 2.5 Permits. Landlord shall secure the
approval of governmental authorities and all permits required by governmental authorities having jurisdiction over such approvals and permits for the Tenant Improvements. Landlord’s contractors shall commence construction of the Tenant
Improvements as soon as practicable after issuance of all such necessary permits. 
 2.6 Conformed Plans. Within
60 days after substantial completion of the Tenant Improvements and receipt from the general contractor of all field changes, if any, Landlord shall submit to Tenant a set of conformed plans (“as-builts”) on mylar incorporating all field
changes made and all changes and/or revisions that have been made subsequent to the submission of the Final Plans specified in Section 2.2. 
 3 Tenant Improvement Allowance. 
 3.1 Tenant Improvement Allowance. Tenant shall be
credited with an allowance (the “Tenant Improvement Allowance”) of $         against the cost of the Tenant Improvements. Subject to Section 3.5 hereof, the Tenant Improvement Allowance
shall be used solely for the design, including engineering plans and specifications, purchase, installation and construction of the Tenant Improvements which constitute permanent improvements to the Premises (including, without limitation,
carpeting), and shall not be used for furniture, furnishings or equipment or other personal property. Tenant may not use more than [$1.00] per square foot of Rentable Area in the Premises of the Tenant Improvement Allowance for payment of space
planning, architectural and engineering expenses pursuant to Sections 2.1 and 2.4 above. 
  

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 3.2 Tenant Obligation. Tenant, at its sole expense, shall pay for the
cost of all Tenant Improvements to the extent such cost exceeds the Tenant Improvement Allowance. 
 3.3 Tenant
Improvements General Contractors. Landlord shall enter into contracts (the “Construction Contracts”) for the Tenant Improvements with general contractors selected from Landlord’s list of approved contractors.

 3.4 Total Cost. Prior to commencement of construction of the Tenant Improvements, Landlord shall submit
to Tenant a written estimate (the “Estimate”) of the Total Cost. The Estimate shall include “allowance(s)”, defined as an estimate of cost for an item of work not sufficiently defined in the documents to allow a fixed price to be
obtained by the general contractor for which the Total Cost is to be increased or decreased, respectively, by the precise amount that the actual cost of the allowance item is, either in excess of or less than the amount of the allowance for that
item. Tenant shall approve the Estimate within five days of Tenant’s receipt thereof. If Tenant does not approve or disapprove the Estimate within such period, Tenant shall be deemed to have approved the Estimate. Landlord shall be under no
obligation to construct any of the Tenant Improvements until Tenant has expressly approved the Estimate. The “Total Cost” is defined as the sum of (a) the amounts payable under the Construction Contracts, including the general
contracts, subcontracts, purchase orders and labor and materials cost of the Tenant Improvements, contractors’ fees, overhead and general conditions charges, plus (b) the cost of Change Orders (as defined in Article 4), if any, plus
(c) design costs, including space planning, architectural and engineering expenses pursuant to Sections 2.1 and 2.4 above, plus (d) an amount equal to five percent of the sum of items (a) through (c) above for Landlord’s
construction management fee (“Landlord’s Construction Fee”) as compensation for Landlord’s direction, coordination and supervision of the Tenant Improvements. 
 3.5 Payment. If based on the Estimate, the Total Cost will exceed the Tenant Improvement Allowance, then prior to
commencement of construction of the Tenant Improvements, Tenant shall pay to Landlord a down payment of 25% of such projected excess amount. Landlord shall keep Tenant fully informed with respect to construction progress of the Tenant Improvements,
the occupancy of the Premises by Tenant and costs thereof. Landlord shall submit to Tenant monthly progress statements illustrating the cost to date of the improvements. Within 10 days after submission by Landlord of the foregoing statement, Tenant
shall pay Landlord the amount, pro rata, as set forth in such notice, by which the total cost exceeds the Tenant Improvement Allowance. Landlord shall disburse the Tenant Improvement Allowance directly to the general contractor and to suppliers and
subcontractors as Landlord deems appropriate. As soon as practicable upon completion of the Tenant Improvements, Landlord shall prepare and submit to Tenant a statement showing, in reasonable detail an accounting for the Total Cost and the total
amount payable hereunder by Landlord to Tenant or Tenant to Landlord. Within 10 days after submission by Landlord of the foregoing statement, Tenant shall pay Landlord the amount, as set forth in such notice, by which the Total Cost exceeded the
Tenant Improvement Allowance or, if the Total Cost is less than the Tenant Improvement Allowance, up to $         of the sum of such unused balance and any unused balance of the Moving Allowance may be
used to offset minimum Rent; otherwise, Tenant shall not be entitled to any payment, Rent reduction or offset for any part of the Tenant Improvement Allowance not used by Tenant. 
  

 D-5 

 3.6 Punchlist. Prior to the Commencement Date, Landlord shall cause the
general contractor to inspect the Premises with a representative of Tenant and complete a written punchlist of unfinished items of Tenant Improvements prior to Tenant’s moving into the Premises. Tenant’s representative shall execute said
punchlist to indicate approval thereof, and if Tenant does not disapprove the punchlist within five days after receipt thereof, Tenant shall be deemed to have approved the same. Landlord shall complete such punchlist within a reasonable period of
time. 
 3.7 Changes, Additions or Alterations. If Tenant shall request any change, addition, deletion or
alteration in the Final Plans (“Change Order”), any such Change Order shall be subject to the provisions of Sections 2.2 and shall be authorized only in writing by Tenant. To the extent the cost of such Change Order, when added to the
Estimate referred to in Section 3.4 will cause the Total Cost (based on such Estimate) to exceed the Tenant Improvement Allowance, Tenant shall promptly pay Landlord the additional cost, if any, of the Tenant Improvements attributable to such
Change Order. Landlord shall not be obligated to proceed with such Change Order until Landlord receives said payment. 
 4
Default. Any default by Tenant under the terms of this Improvement Letter shall constitute an Event of Default under the Lease to which this Improvement Letter is attached, and shall entitle Landlord to exercise all remedies set forth
in the Lease. 
 5 Reasonable Diligence. Both Landlord and Tenant agree to use reasonable diligence in performing all of
their respective obligations and duties under this Improvement Letter and in proceeding with the construction and completion of the Tenant Improvements in the Premises. 
 6 Limited Liability. The provisions of Section 35.17 of the Lease are incorporated herein as if set forth in their entirety. 
  

 D-6 

 EXHIBIT E 
 RULES AND REGULATIONS 
 1. Except as otherwise
provided in the Lease or any exhibits thereto, no sign, placard, picture, advertisement, name or notice shall be inscribed, displayed or printed or affixed on or to any part of the outside or inside of the Building without the prior written consent
of Landlord. Landlord shall have the right to remove any such sign, placard, picture, advertisement, name or notice, unless Landlord has given written consent, without notice to and at the expense of Tenant. Landlord shall not be liable in damages
for such removal unless the written consent of Landlord had been obtained. All approved signs or lettering on doors and walls to the Premises shall be printed, painted, affixed or inscribed at the expense of Tenant by Landlord or by a person
approved by Landlord in a manner and style acceptable to Landlord. Tenant shall not use any blinds, shades, awnings, or screens in connection with any window or door of the Premises unless approved in writing by Landlord. Tenant shall use the
Building standard window covering specified by Landlord and Landlord reserves the right to disapprove interior improvements visible from the ground level outside the Building on wholly esthetic grounds. Such improvements must be submitted for
Landlord’s written approval prior to installation, or Landlord may remove or replace such items at Tenant’s expense. 
 2. Except as otherwise provided in the Lease or any exhibits thereto, Tenant shall not obtain for use upon the Premises, food, milk, soft drinks, bottled water, plant maintenance or any other services, except from persons authorized by
Landlord and at the hours and under regulations fixed by Landlord. No vending machines shall be installed, maintained or operated upon the Premises without the prior written consent of Landlord. 
 3. The bulletin board or directory of the Building shall be provided exclusively for the display of the name and location of tenants only
and Landlord reserves the right to exclude any other names therefrom. 
 4. The sidewalks, halls, passages, exits, entrances,
elevators and stairways shall not be obstructed by any tenants nor used by them for any purpose other than for ingress to and egress from their respective premises. The halls, passages, exits, entrances, elevators, stairways, balconies and roof are
not for the use of the general public and Landlord shall in all cases retain the right to control and prevent access thereto by all persons whose presence in the judgment of Landlord shall be prejudicial to the safety, character, reputation and
interests of the Building and its tenants, provided that nothing herein contained shall be construed to prevent such access to persons with whom Tenant normally deals in the ordinary course of Tenant’s business unless such persons are engaged
in illegal activities. No tenant and no employees or invitees of any tenant shall go upon the roof of the Building. 
 5.
Tenant, upon the termination of its tenancy, shall deliver to Landlord the parking and security access cards issued to Tenant and all keys of offices, rooms and toilet rooms which shall have been furnished to Tenant or which Tenant shall have made,
and in the event of loss of any access cards or keys so furnished, shall pay Landlord therefor. Tenant shall not alter any lock or install any new or additional locks or any bolts on any door of the Premises without the written consent of Landlord.

  

 E-1 

 6. The toilet rooms, toilets, urinals, wash bowls and other apparatus shall not be used for
any purpose other than that for which they were constructed and no foreign substance of any kind whatsoever shall be thrown therein and the expense of any breakage, stoppage, or damage resulting from the violation of this rule shall be borne by
Tenant who, or whose employees or invitees, shall have caused it. 
 7. Tenant shall not use the Premises in any manner which
exceeds the floor load capacity of the floor on which the Premises are located or mark, drive nails, screw or drill into the partitions, woodwork or plaster or in any way deface the Premises or any part thereof. 
 8. No furniture, packages, supplies, merchandise, freight or equipment which cannot be hand carried shall be brought into the Building
without the consent of Landlord. All moving of the same into or out of the Building shall be via the Building’s freight handling facilities, unless otherwise directed by Landlord, at such time and in such manner as Landlord shall prescribe. No
hand trucks or vehicles (other than a wheelchair for an individual) shall be used in passenger elevators. Any hand trucks permitted in the Building must be equipped with soft rubber tires and side guards. 
 9. Landlord shall have the right to prescribe the weight, size and position of all safes and other heavy equipment brought into the Building
and also the times and manner of moving the same in and out of the Building. Safes or other heavy objects shall, if considered necessary by Landlord, stand on a platform of such thickness as is necessary to properly distribute the weight. Landlord
will not be responsible for loss of or damage to any such safe or property from any cause, and all damage done to the Building by moving or maintaining any such safe or other property shall be repaired at the expense of Tenant. Tenant’s
business machines and mechanical equipment shall be installed, maintained and used so as to minimize vibration and noise that may be transmitted to the Building structure or beyond the Premises. 
 10. Tenant shall not use the Premises in any manner which would injure or annoy, or obstruct or interfere with the rights of other tenants
or occupants of the Building. 
 11. Tenant shall not employ any person or persons other than the janitor of Landlord for the
purpose of cleaning the Premises unless otherwise agreed to by Landlord. Except with the written consent of Landlord no person or persons other than those approved by Landlord shall be permitted to enter the Building for the purpose of cleaning the
same. Tenant shall not cause any unnecessary labor by reason of Tenant’s carelessness or indifference in the preservation of good order and cleanliness. Landlord shall not be responsible to any Tenant for any loss of property on the Premises,
however occurring, or for any damage done to the effects of any Tenant by the janitor or any other employee or other person. Janitor service shall include ordinary dusting and cleaning by the janitor assigned to such work and shall not include
shampooing of carpets or rugs or moving of furniture or other special services. Janitor service will not be furnished on nights when rooms are occupied after 6:00 p.m. Window cleaning shall be done only by Landlord. 
 12. Tenant shall not use, keep or permit to be used or kept any foul or noxious gas or substance in the Premises, or permit or suffer the
Premises to be occupied or used in any manner offensive or objectionable to Landlord or other occupants of the Building by reason of noise, odors and/or vibrations, or interfere in any way with other tenants or those having business therein, nor
shall any animals (other than as required for handicapped persons) or birds be brought in or kept in or about the Premises or the Building. 
  

 E-2 

 13. Other than heating and reheating in areas designed for such use, no cooking shall be
done or permitted by Tenant on the Premises, nor shall the Premises be used for the manufacture or storage of merchandise, for washing clothes, for lodging, or for any improper, objectionable or immoral purpose. 
 14. Tenant shall not use or keep in the Premises or the Building any kerosene, gasoline or inflammable, explosive or combustible fluid or
material, or use any method of heating or air-conditioning other than that supplied by Landlord. 
 15. Landlord will direct
electricians as to where and how telephone and telegraph wires are to be introduced. No boring or cutting for wires or stringing of wires will be allowed without written consent of Landlord. The location of telephones, call boxes and other office
equipment affixed to the Premises shall be subject to the approval of Landlord. 
 16. Tenant shall not lay linoleum, tile,
carpet or other similar floor covering so that the same shall be affixed to the floor of the Premises in any manner except as approved by Landlord. The expenses of repairing any damage resulting from a violation of this rule or removal of any floor
covering shall be borne by Tenant. 
 17. Landlord reserves the right to close and keep locked all entrance and exit doors and
otherwise regulate access of all persons to the halls, corridors, elevators and stairways in the Building on Saturdays, Sundays and legal holidays and on other days between the hours of 7:00 p.m. and 7:00 a.m., and at such other times as Landlord
may deem advisable for the adequate protection and safety of the Building, its tenants and property in the Building. Access to the Premises may be refused unless the person seeking access is known to the employee of the Building in charge, and has a
pass or is otherwise properly identified. Landlord shall in no case 
 be liable for damages for any error with regard to the admission or
exclusion from the Building of any person. 
 18. Tenant shall see that the doors of the Premises are closed and securely locked
before leaving the Building and must observe strict care and caution that all water apparatus are entirely shut off before Tenant or Tenant’s employees leave the Building, and that all electricity, gas or air shall likewise be carefully shut
off, so as to prevent waste or damage. 
 19. Tenant shall not use the Premises in any manner which would increase the amount of
water typically furnished for office use, nor connect any appliance directly to the water pipes. 
 20. Landlord may refuse
admission to the Building outside of ordinary business hours to any person not known to the watchman in charge or not having a pass issued by Landlord or not properly identified, and may require all persons admitted to or leaving the Building
outside of ordinary business hours to register. Any person whose presence in the Building at any time shall, in the sole judgment of Landlord, be prejudicial to the safety, character, reputation and interests of the Building or its tenants may be
denied access to the Building or may be ejected 
  

 E-3 

 
therefrom. Landlord may require any person leaving the Building with any package or other object to exhibit a pass from the tenant from whose premises the package or object is being removed, but
the establishment and enforcement of such requirement shall not impose any responsibility on Landlord for the protection of any tenant against the removal of property from the premises of any tenant. 
 21. The requirements of Tenant shall be attended to only upon application at the office of the Building. Employees of Landlord shall not
perform any work or do anything outside of their regular duties unless under special instructions from the Landlord. 
 22. No
person shall be allowed to transport or carry (except for individual, personal consumption) beverages, food, food containers, smoking objects, etc., on any passenger elevators. The transportation of such items shall be via the service elevators in
such manner as prescribed by Landlord. 
 23. Tenant shall cooperate with Landlord in obtaining maximum effectiveness of the
cooling system by closing the window coverings when the sun’s rays fall directly on windows of the Premises. Tenant shall not obstruct, alter or in any way impair the efficient operation of Landlord’s heating, ventilating and
air-conditioning system and shall not place bottles, machines, parcels or other articles on the induction unit enclosure, intake or other vents so as to interfere with air flow. Tenant shall not tamper with or change the setting of any thermostats
or temperature control valves. 
 24. Landlord shall have the right to prohibit any advertising by any tenant which, in
Landlord’s opinion, tends to impair the reputation of the Building or its desirability as a location for offices, and upon written notice from Landlord, any tenant shall refrain from or discontinue such advertising. 
 25. Canvassing, soliciting and peddling within the entire Property is prohibited unless specifically approved by Landlord and each tenant
shall cooperate to prevent such activity. 
 26. All parking ramps and areas plus other public areas forming a part of the
Property shall be under the sole and absolute control of Landlord with the exclusive right to regulate and control these areas. Tenant agrees to conform to the reasonable rules and regulations that may be established by Landlord for these areas from
time to time. 
 27. The Premises shall not be used for manufacturing or the storage of merchandise except as such storage may
be incidental to the use of the Premises for general office purposes. No tenant shall occupy nor permit any portion of its premises to be occupied for the manufacture or sale of narcotics, liquor, or tobacco in any form, or as a barber or manicure
shop. No tenant shall engage or pay any employees on its premises except those actually working for such tenant on the premises nor advertise for laborers giving an address at the Premises or Property. The Premises shall not be used for lodging or
sleeping or for any immoral or illegal purposes. 
 28. Tenant shall not conduct any auction, fire, bankruptcy, going out of
business, liquidation or similar sales at the Property. 
  

 E-4 

 29. Tenant shall not place any radio or television antennae on the roof of the Property or
on any exterior part of the Premises or the Property. 
 30. Tenant understands that smoking is prohibited anywhere within the
Building. Landlord will designate certain areas outside the Building where smoking will be permitted and Tenant will require its employees to smoke only in such designated areas. 
  

 E-5 

 EXHIBIT F 
 HVAC SPECIFICATIONS 
 Landlord shall provide a
high-quality air conditioning system on a year-round basis throughout the Premises and the Building. The system shall operate with thermostatically controlled zones. The system shall maintain an average inside temperature of 75 degrees +/-2 degrees
during summer outdoor temperatures of 90 degrees F.D.B., and 74 degrees F.W.B. and 70 degrees F.D.B. at winter outside temperatures of 14 degrees F.D.B., and in accordance with an occupancy of one person per 150 square feet (average per floor) and
an electrical load of 5 watts per square foot (lighting and power). These temperatures are subject to the conditions and requirements of State and Federal energy regulating bodies for non-residential buildings (collectively “regulatory
requirements”). 
 All conditions are ASHRAE Standard 90 A-1980 for energy conservation and building design. 
  

 F-1 

 EXHIBIT G 
 JANITORIAL SPECIFICATIONS 
 OFFICE AREAS: 
 Daily: 
 Five (5) days each week,
including Monday through Friday, and excluding the holidays set forth in Exhibit B (“Normal Working Hours”) of the Lease: 
  

	1.	Empty and clean all waste receptacles; remove waste materials from the Premises. 

  

	2.	Dry-mop all uncarpeted areas. 

  

	3.	Vacuum all rugs and carpet areas in offices, lobbies and corridors. 

  

	4.	Hand-dust all office furniture, fixtures and all other horizontal surfaces (but only to the extent surfaces are cleared of all materials such as papers, documents and
files). 

  

	5.	Sweep all private stairways, vacuum if carpeted. 

  

	6.	Police all stairwells throughout the entire Building and keep in clean condition. 

  

	7.	Spot-clean spill marks on resilient floor tile. 

  

	8.	Spot-clean all water coolers and fountains. 

  

	9.	It is understood that Landlord shall have no obligations to (a) wash or otherwise clean dishes, glasses and other utensils used for preparing food or beverages, or
(b) to remove or store such dishes, glasses and other utensils in order to clean any area, fixture or surface of the Premises. 

 Weekly: 
  

	1.	Hand-dust all door louvers. 

  

	2.	Dust and/or wash directory boards and display glass. 

  

	3.	Wipe clean and polish all metal and bright work. 

  

	4.	Damp-mop and polish all resilient flooring in the Premises, public corridors and elevator lobbies. 

  

	5.	Wash, clean and polish all water coolers and fountains. 

  

	6.	Dust in place all picture frames, charts, graphs and similar wall hangings. 

  

	7.	Clean glass around tenant entrances, including conference rooms and other interior rooms. 

  

 G-1 

 Monthly: 
  

	1.	Dust all paneled walls, doors and other similar surfaces not reached in nightly or weekly cleaning. 

  

	2.	Vacuum high moldings and other areas not reached in nightly or weekly cleaning. 

  

	3.	Remove all finger marks and smudges from doors, door frames, around light switches, private entrance glass and partitions. 

 Quarterly: 
  

	1.	Vacuum all ventilating and air conditioning louvers. 

  

	2.	Dust exterior of lighting fixtures. 

 LAVATORIES: 
 Daily: 
 Five (5) days each week, including Monday through Friday, and excluding the holidays set forth in Exhibit B (“Normal Working Hours”) of the Lease: 
  

	1.	Clean and damp-mop floors. 

  

	2.	Wash and polish all mirrors, bright work and enameled surfaces. 

  

	3.	Wash and sanitize all basins, bowls and urinals. 

  

	4.	Wash and sanitize toilet seats. 

  

	5.	Dust, clean and wash, where necessary, all partitions, tile walls, dispensers and receptacles. 

  

	6.	Empty and sanitize all receptacles and sanitary disposals. 

  

	7.	Provide materials and fill towel, sanitary napkin and soap dispensers. 

 Monthly: 
  

	1.	Machine-scrub lavatory floors, apply floor finishing where applicable. 

  

	2.	Wash and polish all partitions, tile walls and enamel surfaces. 

  

 G-2 

 Quarterly: 
  

	1.	Dust light fixtures. 

  

	2.	Vacuum all louvers and ventilating grills. 

 MISCELLANEOUS SERVICES: 
  

	1.	Maintain building lobby, corridors and other public areas in a clean and orderly condition. 

  

	2.	Damp-mop spillage in office and public areas as required. 

  

	3.	Interior curtain-wall window washing two times per year. 

 These janitorial specifications may be changed or altered from time to time to facilitate the inclusion of the latest methods of maintenance and cleaning technology generally recognized as acceptable for
a first-class office building. 
  

 G-3 

  
 Morgan Stanley Mortgage Capital Inc. 
 (Lender) 
 - and - 
                                        
                      
 (Tenant) 
  
  
 SUBORDINATION, NON-DISTURBANCE 
 AND ATTORNMENT AGREEMENT 
  
  
 Dated:

 Location: 
 Section: 
 Block: 
 Lot: 
 County:

 PREPARED BY AND UPON 
 RECORDATION RETURN TO: 
 Messrs. Cadwalader, Wickersham & Taft

 100 Maiden Lane 
 New York, New York 10038 
 Attention:
        Annie George 
 File No.: 
 Title No.: 
  
  

 SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT 
 THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (this “Agreement”) is made as of the
     day of         , 2003 by and between MORGAN STANLEY MORTGAGE CAPITAL INC., having an address at 1221 Avenue of the Americas, 27th Floor, New York, NY 10020 (“Lender”) and
                             having an address at
                                        
(“Tenant”). 
 RECITALS: 
 A. Lender has made a loan in the approximate amount of $132,000,000.00 to Landlord (defined below), which Loan is given pursuant to the terms and conditions of that certain Loan Agreement dated as of July
    , 2003, between Lender and Landlord (the “Loan Agreement”). The Loan is evidenced by those certain four Promissory Notes, each dated July     , 20    ,
given by Landlord to Lender (the “Note”) and secured by a certain Mortgage and Security Agreement dated as of July , 2003, given by Landlord to Lender (the “Mortgage”), which encumbers the fee estate of Landlord in certain
premises described in Exhibit A attached hereto (the “Property”); 
 B. Tenant occupies a portion of the
Property under and pursuant to the provisions of a certain lease dated                             ,
             between PHILADELPHIA PLAZA-PHASE II, a Pennsylvania limited partnership, as landlord (“Landlord”) and Tenant, as tenant (the “Lease”); and

 C. Tenant has agreed to subordinate the Lease to the Mortgage and to the lien thereof and Lender has agreed to grant
non-disturbance to Tenant under the Lease on the terms and conditions hereinafter set forth. 
 AGREEMENT: 
 For good and valuable consideration, Tenant and Lender agree as follows: 
 1. Subordination. Tenant agrees that the Lease and all of the terms, covenants and provisions thereof and all rights, remedies and
options of Tenant thereunder are and shall at all times continue to be subject and subordinate in all respects to the Mortgage and to the lien thereof and all terms, covenants and conditions set forth in the Mortgage and the Loan Agreement including
without limitation all renewals, increases, modifications, spreaders, consolidations, replacements and extensions thereof and to all sums secured thereby with the same force and effect as if the Mortgage and Loan Agreement had been executed,
delivered and (in the case of the Mortgage) recorded prior to the execution and delivery of the Lease. 
 2.
Non-Disturbance. Lender agrees that if any action or proceeding is commenced by Lender for the foreclosure of the Mortgage or the sale of the Property, Tenant shall not be named as a party therein unless such joinder shall be required by law,
provided,

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

 -2- 

 4. Notice to Tenant. After notice is given to Tenant by Lender that the Landlord is
in default under the Note and the Mortgage and that the rentals under the Lease should be paid to Lender pursuant to the terms of the assignment of leases and rents executed and delivered by Landlord to Lender in connection therewith, Tenant shall
thereafter pay to Lender or as directed by the Lender, all rentals and all other monies due or to become due to Landlord under the Lease and Landlord hereby expressly authorizes Tenant to make such payments to Lender and hereby releases and
discharges Tenant from any liability to Landlord on account of any such payments made in accordance with Lender’s instructions. 
 5. Lender’s Consent. Tenant shall not, without obtaining the prior written consent of Lender, (a) enter into any agreement amending, modifying or terminating the Lease, (b) prepay any of the rents, additional rents or
other sums due under the Lease for more than one (1) month in advance of the due dates thereof, (c) voluntarily surrender the premises demised under the Lease or terminate the Lease without cause or shorten the term thereof, or (d) assign
the Lease or sublet the premises demised under the Lease or any part thereof other than pursuant to the provisions of the Lease; and any such amendment, modification, termination, prepayment, voluntary surrender, assignment or subletting, without
Lender’s prior consent, shall not be binding upon Lender. 
 6. Lender to Receive Notices. Tenant shall provide
Lender with copies of all written notices sent to Landlord pursuant to the Lease simultaneously with the transmission of such notices to the Landlord. Tenant shall notify Lender of any default by Landlord under the Lease which would entitle Tenant
to cancel the Lease or to an abatement of the rents, additional rents or other sums payable thereunder, and agrees that, notwithstanding any provisions of the Lease to the contrary, no notice of cancellation thereof or of such an abatement shall be
effective unless Lender shall have received notice of default giving rise to such cancellation or abatement and shall have failed within sixty (60) days after receipt of such notice to cure such default, or if such default cannot be cured
within sixty (60) days, shall have failed within sixty (60) days after receipt of such notice to commence and thereafter diligently pursue any action necessary to cure such default. 
 7. Notices. All notices or other written communications hereunder shall be deemed to have been properly given (i) upon delivery,
if delivered in person or by facsimile transmission with receipt acknowledged by the recipient thereof and confirmed by telephone by sender, (ii) one (1) Business Day (hereinafter defined) after having been deposited for overnight delivery
with any reputable overnight courier service, or (iii) three (3) Business Days after having been deposited in any post office or mail depository regularly maintained by the U.S. Postal Service and sent by registered or certified mail,
postage prepaid, return receipt requested, addressed as follows: 
  

					
	If to Tenant:	  	                                       
     	  	
		  	                                       
     	  	
		  	                                       
     	  	
		  	Attention:                           
	  	
		  	Facsimile No.                     	  	

  

 -3- 

			
	If to Lender:	  	Morgan Stanley Mortgage Capital Inc.
		  	 1221 Avenue of the Americas, 27th Floor
 New
York, New York 10020

		  	 Attention: James Flaum and Kevin Swartz
 Facsimile No.: (212) 762-9494

		
	With a copy to:	  	Cadwalader, Wickersham & Taft
		  	100 Maiden Lane
		  	New York, New York 10038
		  	Attention: John M. Zizzo
		  	Facsimile No. (212) 504-6666

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

 8. Joint and Several Liability. If Tenant consists of more than one person, the obligations and liabilities of each
such person hereunder shall be joint and several. This Agreement shall be binding upon and inure to the benefit of Lender and Tenant and their respective successors and assigns. 
 9. Definitions. The term “Lender” as used herein shall include the successors and assigns of Lender and any person, party
or entity which shall become the owner of the Property by reason of a foreclosure of the Mortgage or the acceptance of a deed or assignment in lieu of foreclosure or otherwise. The term “Landlord” as used herein shall mean and include the
present landlord under the Lease and such landlord’s predecessors and successors in interest under the Lease, but shall not mean or include Lender. The term “Property” as used herein shall mean the Property, the improvements now or
hereafter located thereon and the estates therein encumbered by the Mortgage. 
 10. No Oral Modifications. This
Agreement may not be modified in any manner or terminated except by an instrument in writing executed by the parties hereto. 
 11. Governing Law. This Agreement shall be deemed to be a contract entered into pursuant to the laws of the State where the Property is located and shall in all respects be governed, construed, applied and enforced in accordance with
the laws of the State where the Property is located. 
  

 -4- 

 12. Inapplicable Provisions. If any term, covenant or condition of this Agreement is
held to be invalid, illegal or unenforceable in any respect, this Agreement shall be construed without such provision. 
 13.
Duplicate Originals; Counterparts. This Agreement may be executed in any number of duplicate originals and each duplicate original shall be deemed to be an original. This Agreement may be executed in several counterparts, each of which
counterparts shall be deemed an original instrument and all of which together shall constitute a single Agreement. The failure of any party hereto to execute this Agreement, or any counterpart hereof, shall not relieve the other signatories from
their obligations hereunder. 
 14. Number and Gender. Whenever the context may require, any pronouns used herein shall
include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice versa. 
 15. Transfer of Loan. Lender may sell, transfer and deliver the Note and assign the Mortgage, this Agreement and the other documents executed in connection therewith to one or more investors in the
secondary mortgage market (“Investors”). In connection with such sale, Lender may retain or assign responsibility for servicing the loan, including the Note, the Mortgage, this Agreement and the other documents executed in connection
therewith, or may delegate some or all of such responsibility and/or obligations to a servicer including, but not limited to, any subservicer or master servicer, on behalf of the Investors. All references to Lender herein shall refer to and include
any such servicer to the extent applicable. 
 16. Further Acts. Tenant will, at the cost of Tenant, and without expense
to Lender, do, execute, acknowledge and deliver all and every such further acts and assurances as Lender shall, from time to time, require, for the better assuring and confirming unto Lender the property and rights hereby intended now or hereafter
so to be, or for carrying out the intention or facilitating the performance of the terms of this Agreement or for filing, registering or recording this Agreement, or for complying with all applicable laws. 
 17. Limitations on Lender’s Liability. Tenant acknowledges that Lender is obligated only to Landlord to make the Loan upon the
terms and subject to the conditions set forth in the Loan Agreement. In no event shall Lender or any purchaser of the Property at foreclosure sale or any grantee of the Property named in a deed-in-lieu of foreclosure, nor any heir, legal
representative, successor, or assignee of Lender or any such purchaser or grantee (collectively the Lender, such purchaser, grantee, heir, legal representative, successor or assignee, the “Subsequent Landlord”) have any personal liability
for the obligations of Landlord under the Lease and should the Subsequent Landlord succeed to the interests of the Landlord under the Lease, Tenant shall look only to the estate and property of any such Subsequent Landlord in the Property for the
satisfaction of Tenant’s remedies for the collection of a judgment (or other judicial process) requiring the payment of money in the event of any default by any Subsequent Landlord as landlord under the Lease, and no other property or assets of
any Subsequent Landlord shall be subject to levy, execution or other enforcement procedure for the satisfaction of Tenant’s remedies, under or with respect to the Lease; provided, however, that the Tenant may exercise any other right or remedy
provided thereby or by law in the event of any failure by Subsequent Landlord to perform any such material obligation. 
  

 -5- 

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

			
	LENDER:
	
	 MORGAN STANLEY MORTGAGE
 CAPITAL INC.

		
	By:	 	  

	Name:	 	
	Title:	 	
	
	TENANT:
	
	  

	a
                                         
               
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	The undersigned accepts and agrees to the provisions of Section 4 hereof:
	
	LANDLORD:
	
	                                       
                                     , a
	  

		
	By:	 	  

	Name:	 	
	Title:	 	

 ACKNOWLEDGMENTS 
 [INSERT STATE SPECIFIC ACKNOWLEDGMENT] 

 EXHIBIT A 
 LEGAL DESCRIPTION 

 SCHEDULES AND EXHIBITS 
  

			
	Schedules	  	
		
	Schedule I	  	Debt Service
		
	Schedule II	  	Monthly Senior Debt Service Payment
		
	Schedule 3.1.9	  	Compliance
		
	Schedule 3.1.10	  	Liabilities
		
	Schedule 3.1.22	  	Leases
		
	Schedule 3.1.28	  	Organizational Chart
		
	Schedule 3.1.43	  	Environmental Matters
		
	Schedule 9.1	  	Tenants and Subtenants
		
	Exhibits	  	
		
	Exhibit A	  	Cash Management Agreement
		
	Exhibit B	  	Form Lease

 Schedule I 
 Debt Service 
  

							
	 Year
	  	Morgan Stanley
Amount	  	DB Mezz Fund
Amount	  	Total
Amount
	 2003
	  	307,600	  	92,400	  	400,000
	 2004
	  	448,809	  	92 857	  	541 566
	 2005
	  	442,424	  	165,909	  	608,333
	 2006
	  	459,259	  	207,407	  	666,666
	 2007
	  	378,733	  	362,267	  	741,000
	 2008
	  	120,000	  	146,666	  	266,666
	 2009
	  	39,583	  	2,083	  	41,666
	 2010
	  	41,666	  	N/A	  	41,666
	 2011
	  	41,666	  	N/A	  	41,666
	 2012
	  	41,666	  	N/A	  	41,666

 Schedule 3.1.9 
 Compliance 
 Zoning and compliance information disclosed on the Title
Commitment No. PHI-03-16760-HSE issued by LandAmerica, Qualified Survey by Barton & Martin, dated July 18, 2003, and the Zoning Information Systems report dated July 30, 2003. 

 Schedule 3.1.10 
 Liabilities 
 Contingent liabilities and obligations as set forth in
the Conrail Payment Agreement dated as of March 28, 1990 as amended by the Amendment to Payment Agreement dated as of June 23, 1997 

 Disclosure Notes for Related Party Balances 
 The following notes are meant to provide additional information about certain account balances for Philadelphia Plaza Phase 11, LP as of June 30, 2003.
The balances have been prepared on a GAAP basis. 
 ACCOUNTS RECEIVABLE RELATED PARTY – Commerce Square Partners – Philadelphia
Plaza: The balance of $20,597.27 relates to reconciling parking activity from One Commerce Square. Under the Reciprocal Easement Agreement, parking revenue is allocated by tenant use. 
 ACCOUNTS PAYABLE RELATED PARTY – Philadelphia Plaza Phase 3: The balance of $227.00 relates to reconciling parking activity from the Phase 3
surface lot. 
 ACCOUNTS PAYABLE RELATED PARTY – Thomas Development Partners: The balance of $15,120.73 relates to amounts owed for
payroll costs. 
 ACCOUNTS PAYABLE RELATED PARTY – Thomas Investment Partners: The balance of $1,200,000.00 is from the $200,000
earnest deposit from the refinancing and the $1 million rate lock fee. This balance will be reclassified as a capital contribution upon closing of the refinancing. 
 ACCOUNTS PAYABLE RELATED PARTY – TDP Lease Commissions: The balance of $7,722.76 represents the outstanding commission owed on the Cort Furniture least renewal. 

 Schedule 3.1.22 
 Leases 
 See Attached Rent Roll dated as of July 1, 2003.

 One Commerce Square restaurant tenant Commerce Restaurant Corporation has a rent delinquency of more than 90 days. Revenues and expenses for
this tenant are allocated between One and Two Commerce Square according to the REA. The Two Commerce Square allocation of the delinquency is approximately $32,700 as of June 30, 2003, approximately $29,000 of which has been reserved on the
statements of Philadelphia Plaza-Phase 11 as of that date. 

 Page 1 of 5 
 Two Commerce Square 
 Rent Roll 
 July 1, 2003 
  

																												
	 	  	 	  	 	  	Square	  	Lease	 	Term	  	Rent	  	 	  	Recoveries	  	Percentage Rent
	 Tenant Name
	  	Suite	  	Floor	  	Feet	  	Date	 	Start	  	End	  	Steps	  	Rent	  	Charge	  	Base	  	Percent	 	Break
	 ATT/TCG
	  	30	  	1	  	0	  	1/9/03	 	1/1/03	  	MTM	  	1/1/03	  	$	1200	  	N/A	  	 	N/A	  		 		
	 Commerce Restaurant Corporation
	  	100	  	1	  	1,621	  	4/3/01	 	5/20/01	  	5/31/07	  	12/1/01	  	$	24.22	  	Op. Ex.	  	 	Net	  	6.0%	 	 	Annual
	     “Twenty21”
	  		  		  		  		 		  		  	1/1/02	  	$	16.87	  	Taxes	  	 	Net	  	Effective	 	 	Sales >
		  		  		  		  		 		  		  	4/1/02	  	$	24.22	  		  			  		 		
		  		  		  		  		 		  		  	6/1/04	  	$	24.80	  		  			  	12/1/01	 	$	3,750,000
		  		  		  		  		 		  		  	6/1/05	  	$	25.44	  		  			  	1/1/02	 	$	3,465,463
		  		  		  		  	3/18/02:	 		  		  		  			  		  			  	1/1/03	 	$	3,750,000
		  		  		  		  	Option to	 		  		  		  			  		  			  	6/1/04	 	$	3,840,000
		  		  		  		  	Exercise	 		  		  		  			  		  			  	6/1/05	 	$	3,940,000
		  		  		  		  	and Amnd	 		  		  		  			  		  			  		 		
	 Cort Furniture Rental Corp.
	  	110	  	1	  	4,477	  	1/5/93	 	10/1/93	  	9/30/03	  	10/1/93	  	$	8.25	  	Op. Ex.	  	 	Net	  		 		
	     “Coif Furniture Rental”
	  		  		  		  		 		  		  	10/1/94	  	$	15.50	  	Taxes	  	 	Net	  		 		
		  		  		  		  		 		  		  	10/1/95	  	$	16.50	  		  			  		 		
		  		  		  		  		 		  		  	10/1/96	  	$	17.50	  		  			  		 		
		  		  		  		  		 		  		  	10/1/97	  	$	18.50	  		  			  		 		
		  		  		  		  		 		  		  	10/1/98	  	$	19.00	  		  			  		 		
		  		  		  		  		 		  		  	10/1/01	  	$	20.00	  		  			  		 		
		  		  		  		  	1st Amnd.	 	10/01/03	  	9/30/06	  	10/1/03	  	$	23.00	  	Op. Ex.	  	 	Net	  		 		
		  		  		  		  	10/18/02	 		  		  		  			  	Taxes	  	 	Net	  		 		
	 Marathon Grill
	  	120	  	1	  	7,938	  	10/25/00	 	4/1/01	  	3/31/11	  	4/1/01	  	$	8.31	  	Op. Ex.	  	 	Net	  	6.0%	 	 	Annual
		  		  		  		  		 		  		  	4/1/02	  	$	9.15	  	Taxes	  	 	Net	  	Effective	 	 	Sales >
		  		  		  		  	1st Amnd:	 		  		  	4/1/03	  	$	9.98	  		  			  		 		
		  		  		  		  	5/1/01	 		  		  	4/1/04	  	$	11.22	  		  			  	4/1/01	 	$	1,100,000
		  		  		  		  		 		  		  	4/1/06	  	$	14.55	  		  			  	4/1/02	 	$	1,210,000
		  		  		  		  		 		  		  	4/1/07	  	$	15.80	  		  			  	4/1/03	 	$	1,320,000
		  		  		  		  		 		  		  	4/1/09	  	$	17.04	  		  			  	4/1/04	 	$	1,485,000
		  		  		  		  		 		  		  	4/1/10	  	$	17.88	  		  			  	4/1/06	 	$	1,925,000
		  		  		  		  		 		  		  		  			  		  			  	4/1/07	 	$	2,090,000
		  		  		  		  		 		  		  		  			  		  			  	4/1/09	 	$	2,255,000
		  		  		  		  		 		  		  		  			  		  			  	4/1/10	 	$	2,365,000
	 Salad Works, Inc.
	  	130	  	1	  	3,606	  	3/31/97	 	10/1/97	  	9/30/07	  	10/1/97	  	$	20.00	  	Op. Ex.	  	 	Net	  	6.0%	 	 	LY 1-5:
	     “Salad Works”
	  		  		  		  		 		  		  	4/1/00	  	$	22.00	  	Taxes	  	 	Net	  		 	$	1.75mm
		  		  		  		  	1st Amnd:	 		  		  	4/1/02	  	$	24.00	  		  			  		 		
		  		  		  		  	9/30/97	 		  		  	4/1/04	  	$	26.00	  		  			  		 	 	LY 6-10:
		  		  		  		  		 		  		  	4/1/05	  	$	27.00	  		  			  		 	$	1.85mm
	 Kinko’s of Ohio, Inc.
	  	140	  	1	  	4,650	  	12/2/96	 	5/12/97	  	5/11/07	  	5/1/97	  	$	33.79	  	Op. Ex.	  	 	Tot	  		 		
	     “Kinko’s”
	  		  		  		  		 		  		  	5/1/98	  	$	34.79	  	Taxes	  	 	Base	  		 		
		  		  		  		  		 		  		  	5/1/99	  	$	35.79	  		  	$	6.85	  		 		
		  		  		  		  		 		  		  	5/1/00	  	$	38.79	  		  			  		 		
		  		  		  		  		 		  		  	5/1/01	  	$	37.79	  		  			  		 		
		  		  		  		  		 		  		  	5/1/02	  	$	41.29	  		  			  		 		

 Page 2 of 5 
 Two Commerce Square 
 Rent Roll 
 July 1, 2003 
  

																										
	 	  	 	  	 	  	Square	  	Lease	  	Term	  	Rent	  	 	  	Recoveries	  	Percentage Rent
	 Tenant Name
	  	Suite	  	Floor	  	Feet	  	 Date
	  	Start	  	End	  	Steps	  	Rent	  	Charge	  	Base	  	Percent	  	Break
	 Citizens Bank
	  	170	  	1	  	2,896	  	7/12/02	  	12/16/02	  	12/31/12	  	12/16/02	  	$	28.00	  	Op. Ex.	  	Net	  		  	
		  		  		  		  		  		  		  	1/1/06	  	$	29.00	  	Taxes	  	Net	  		  	
		  		  		  		  		  		  		  	1/1/08	  	$	31.00	  		  		  		  	
		  		  		  		  		  		  		  	1/1/11	  	$	32.00	  		  		  		  	
													
	 Shoe Shine Service
	  	180	  	1	  	180	  	N/A	  		  		  		  			  		  		  		  	
													
	 NYCL - (Delaware Mgt.)
	  	060	  	P-1	  	10,198	  	3/28/90	  	5/15/92	  	6/23/07	  	5/15/92	  	$	19.00	  	Op. Ex.	  	Net	  		  	
	 NYCL - (Delaware Mgt.)
	  	200	  	2	  	41,936	  		  		  		  	5/15/93	  	$	20.00	  	Taxes	  	Net	  		  	
	 NYCL - (Delaware Mgt.)
	  	300	  	3	  	31,817	  	1st Amnd:	  		  		  	6/24/97	  	$	25.25	  		  		  		  	
	 NYCL - (Delaware Mgt.)
	  	400	  	4	  	33,572	  	10/1/92	  		  		  	6/24/02	  	$	30.00	  		  		  		  	
	 NYCL - Vacant
	  	500	  	5	  	33,572	  		  		  		  		  			  		  		  		  	
	NYCL - (Citizens Bank)	  	800	  	8	  	33,572	  	2nd Amnd:	  		  		  		  			  		  		  		  	
	NYCL - (Biological Abstr.)	  	700	  	7	  	33,572	  	6/20/99	  		  		  		  			  		  		  		  	
	NYCL - Alliance	  	800	  	8	  	16,186	  		  		  		  		  			  		  		  		  	
	NYCL - (Biological Abstr.)	  	810	  	6	  	7,551	  	3rd Amnd:	  		  		  		  			  		  		  		  	
	NYCL - CSX	  	830	  	8	  	5,640	  	9/30/99	  		  		  		  			  		  		  		  	
	NYCL - (McCormick Teyl.)	  	900	  	9	  	29,392	  		  		  		  		  			  		  		  		  	
	NYCL - (McCormick Tayl.)	  	1000	  	10	  	29,376	  		  		  		  		  			  		  		  		  	
	NYCL - (ADR Options)	  	1100	  	11	  	10,969	  	4th Amnd:	  		  		  		  			  		  		  		  	
	NYCL - (Reliance Stand.)	  	1110	  	11	  	18,761	  	12/10/99	  		  		  		  			  		  		  		  	
	NYCL - (Reliance Stand.)	  	1200	  	12	  	29,730	  		  		  		  		  			  		  		  		  	
	NYCL - (Reliance Stand.)	  	1400	  	14	  	29,724	  	5th Amnd:	  		  		  		  			  		  		  		  	
	NYCL - (Reliance Stand.)	  	1600	  	15	  	29,724	  	1/5/00	  		  		  		  			  		  		  		  	
	NYCL - Conrail	  	1800	  	16	  	29,724	  		  		  		  		  			  		  		  		  	
	NYCL - (PWC)	  	1700	  	17	  	29,773	  	6th Amnd:	  		  		  		  			  		  		  		  	
	NYCL - (PWC)	  	1800	  	18	  	23,440	  	5/17/01	  		  		  		  			  		  		  		  	
	NYCL - (PWC)	  	1900	  	19	  	23,037	  		  		  		  		  			  		  		  		  	
	NYCL - (PWC)	  	2000	  	20	  	23,037	  	Ltr Agmnts:	  		  		  		  			  		  		  		  	
	NYCL - (PWC)	  	2100	  	21	  	22,825	  	3/28/90	  		  		  		  			  		  		  		  	
	NYCL - (PWC)	  	2200	  	22	  	23,037	  	6/3/93	  		  		  		  			  		  		  		  	
	NYCL - (PWC)	  	2300	  	23	  	23,037	  	9/9/94	  		  		  		  			  		  		  		  	
	NYCL - (PWC)	  	2400	  	24	  	23,037	  		  		  		  		  			  		  		  		  	
	NYCL - (PWC)	  	2500	  	25	  	23,037	  		  		  		  		  			  		  		  		  	
	NYCL - Vacant	  	2600	  	26	  	23,037	  		  		  		  		  			  		  		  		  	
	NYCL - (GreenbergTrourig)	  	2700	  	27	  	22,825	  		  		  		  		  			  		  		  		  	
	NYCL - (PP Ph 2/E&Y)	  	2800	  	28	  	22,981	  		  		  		  		  			  		  		  		  	
	NYCL - (Norfolk South.)	  	2900	  	29	  	14,677	  		  		  		  		  			  		  		  		  	
	NYCL - Vacant	  	4110	  	41	  	224	  		  		  		  		  			  		  		  		  	
		  		  		  	 	  		  		  		  		  			  		  		  		  	
		  		  		  	752,999	  		  		  		  		  			  		  		  		  	
													
	Delaware Management	  	000	  	P-1	  	See	  	12/10/99	  	N/A	  		  		  			  		  		  		  	
		  	200	  	2	  	NYCL	  		  		  		  		  			  		  		  		  	
		  	300	  	3	  		  		  		  		  		  			  		  		  		  	
		  	400	  	4	  		  		  		  		  		  			  		  		  		  	
													
	Citizens Bank	  	600	  	6	  	See	  	11/8/01	  	N/A	  		  		  			  		  		  		  	
		  		  		  	NYCL	  		  		  		  		  			  		  		  		  	

 Page 3 of 5 
 Two Commerce Square 
 Rent Roll 
 July 1, 2003 
  

																											
	 	  	 	  	 	  	Square	  	Lease	 	Term	  	Rent	  	 	  	Recoveries	  	Percentage Rent
	 Tenant Name
	  	Suite	  	Floor	  	Feet	  	Date	 	Start	  	End	  	Steps	  	Rent	  	Charge	 	Base	  	Percent	  	Break
	Biological Abstracts	  	700	  	7	  	See	  	4/30/99	 	6/24/09	  	11/30/09	  	6/24/09	  	$	9.55	  	Op. Ex.	 	 	Net	  		  	
		  	810	  	8	  	NYCL	  		 		  		  		  			  	Taxes	 	 	Net	  		  	
		  		  		  		  	1st Amend:	 		  		  		  			  		 			  		  	
		  		  		  		  	2/28/01	 		  		  		  			  		 			  		  	
	 Alliance
	  	800	  	8	  	See	  	2/18/01	 	6/24/08	  	12/31/09	  	6/24/08	  	$	25.90	  	Op. Ex.	 	 	Net	  		  	
		  		  		  	NYCL	  		 		  		  		  			  	Taxes	 	 	Net	  		  	
	 McCormick Taylor
	  	1000	  	10	  	See	  	7/8/99	 	8/24/09	  	1/31/10	  	6/24/09	  	$	20.50	  	Op. Ex*	 	$	5.89	  		  	
		  	900	  	9	  	NYCL	  		 		  		  		  			  	Taxes*	 	$	3.09	  		  	
		  		  		  		  	1st Amend:	 		  		  		  			  		 			  		  	
		  		  		  		  	7/6/99	 		  		  		  			  		 			  		  	
		  		  		  		  	2nd Amend:	 		  		  		  			  		 			  		  	
		  		  		  		  	5/17/00	 		  		  		  			  		 			  		  	
	 ADR Options, Inc.
	  	1100	  	11	  	See	  	8/15/01	 	N/A	  		  		  			  		 			  		  	
		  		  		  	NYCL	  		 		  		  		  			  		 			  		  	
	 Reliance Standard Life
	  	1110	  	11	  	See	  	1/05/00	 	06/24/08	  	06/23/09	  	06/24/08	  	$	24.00	  	Op. Ex*	 	$	5.89	  		  	
	 Reliance Standard Life
	  	1200	  	12	  	NYCL	  		 		  		  		  			  	Taxes*	 	$	3.09	  		  	
	 Reliance Standard Life
	  	1400	  	14	  		  	Amended	 		  		  		  			  		 			  		  	
	 Reliance Standard Life
	  	1500	  	15	  		  	&
Restated	 		  		  		  			  		 			  		  	
		  		  		  		  	Sublease:	 		  		  		  			  		 			  		  	
		  		  		  		  	5/1/00	 		  		  		  			  		 			  		  	
	 PriceWaterhouseCoopers
	  	1700	  	17	  	See	  	8/20/99	 	8/24/09	  	4/24/15	  	8/24/09	  	$	25.00	  	Op. Ex	 	$	5.94	  		  	
		  	1800	  	18	  	NYCL	  		 		  		  	4/24/10	  	$	27.00	  	Taxes	 	$	3.15	  		  	
		  	1900	  	19	  		  		 		  		  		  			  		 			  		  	
		  	2000	  	20	  		  		 		  		  		  			  		 			  		  	
		  	2100	  	21	  		  		 		  		  		  			  		 			  		  	
		  	2200	  	22	  		  		 		  		  		  			  		 			  		  	
		  	2300	  	23	  		  		 		  		  		  			  		 			  		  	
		  	2400	  	24	  		  		 		  		  		  			  		 			  		  	
		  	2500	  	25	  		  		 		  		  		  			  		 			  		  	
	 Greenberg Traurlg
	  	2700	  	27	  	See	  	7/11/00	 	N/A	  		  		  			  		 			  		  	
		  		  		  	NYCL	  		 		  		  		  			  		 			  		  	
	 Norfolk Southern
	  	2900	  	29	  	See	  	10/1/99	 	N/A	  		  		  			  		 			  		  	
		  		  		  	NYCL	  		 		  		  		  			  		 			  		  	
		  		  		  		  	1st Amnd:	 		  		  		  			  		 			  		  	
		  		  		  		  	10/26/99	 		  		  		  			  		 			  		  	

 Page 4 of 5 
 Two Commerce Square 
 Rent Roll 
 July 1, 2003 
  

																										
	 	  	 	  	 	  	Square	  	Lease	 	Term	  	Rent	  	 	  	Recoveries	  	Percentage Rent
	 Tenant Name
	  	Suite	  	Floor	  	Feet	  	Date	 	Start	  	End	  	Steps	  	Rent	  	Charge	  	Base	  	Percent	  	Break
	 Vacant
	  	3020	  	30	  	4,745	  		 		  		  		  			  		  		  		  	
	 Grant Thornton, LLP
	  	3010	  	30	  	9,856	  	7/29/94	 	12/5/94	  	12/4/04	  	9/2/96	  	$	25.00	  	Op. Ex.	  	Net	  		  	
		  		  		  		  		 		  		  	9/2/97	  	$	6.75	  	Taxes	  	Net	  		  	
		  		  		  		  		 		  		  	9/2/98	  	$	7.75	  		  		  		  	
		  		  		  		  		 		  		  	9/2/99	  	$	8.75	  		  		  		  	
		  		  		  		  		 		  		  	9/2/00	  	$	9.75	  		  		  		  	
		  		  		  		  		 		  		  	9/2/01	  	$	10.75	  		  		  		  	
		  		  		  		  		 		  		  	9/2/02	  	$	11,75	  		  		  		  	
		  		  		  		  		 		  		  	9/2/03	  	$	12.75	  		  		  		  	
		  		  		  		  		 		  		  	9/2/04	  	$	13.75	  		  		  		  	
	 Grant Thornton, LLP
	  	3100	  	31	  	14,633	  	1st Amend:	 		  		  	12/5/94	  	$	25.71	  		  		  		  	
		  		  		  	 	  		 		  		  		  			  		  		  		  	
		  		  		  	24,489	  	3/14/88	 		  		  	12/5/95	  	$	4.70	  		  		  		  	
		  		  		  		  		 		  		  	12/5/98	  	$	5.00	  		  		  		  	
		  		  		  		  		 		  		  	12/5/99	  	$	6.00	  		  		  		  	
		  		  		  		  		 		  		  	12/5/00	  	$	7.00	  		  		  		  	
		  		  		  		  		 		  		  	12/5/01	  	$	8.00	  		  		  		  	
		  		  		  		  		 		  		  	12/5/02	  	$	9.00	  		  		  		  	
		  		  		  		  		 		  		  	12/6/03	  	$	10.00	  		  		  		  	
	 Shrager, McDaid, Loftus,
	  	3210	  	32	  	8,989	  	6/15/92	 	12/18/93	  	12/31/03	  	1/1/93	  	$	8.75	  	Op. Ex.	  	Net	  		  	
	     Fium, & Spivey
	  		  		  		  		 		  		  	12/1/94	  	$	9.50	  	Taxes	  	Net	  		  	
		  		  		  		  		 		  		  	12/1/95	  	$	10.25	  		  		  		  	
		  	3209	  	32	  	*972	  	Ltr Agmnt:	 	N/A	  		  	12/1/96	  	$	11.00	  		  		  		  	
		  		  		  	 	  		 		  		  		  			  		  		  		  	
		  		  		  	9,981	  	8/14/92	 		  		  	12/1/97	  	$	14.50	  		  		  		  	
		  		  		  		  		 		  		  	12/1/98	  	$	15.00	  		  		  		  	
		  		  		  		  		 		  		  	12/1/99	  	$	16.00	  		  		  		  	
		  		  		  		  		 		  		  	12/1/00	  	$	17.00	  		  		  		  	
		  		  		  		  		 		  		  	12/1/01	  	$	20.00	  		  		  		  	
		  		  		  		  		 		  		  	12/1/02	  	$	21.00	  		  		  		  	
		  		  		  		  		 		  		  	12/1/03	  	$	22.00	  		  		  		  	
	 Barrack, Rodos & Bacine
	  	3220	  	32	  	4,672	  	2/1/93	 	5/10/93	  	9/30/11	  	5/10/93	  	$	14.57	  	Op. Ex.	  	Net	  		  	
	 Barrack, Rodos & Becine
	  	3300	  	33	  	14,633	  		 		  		  	5/10/96	  	$	15,25	  	Taxes	  	Net	  		  	
		  		  		  	 	  		 		  		  		  			  		  		  		  	
		  		  		  	19,305	  		 		  		  	9/22/01	  	$	15.50	  		  		  		  	
		  		  		  		  		 		  		  	10/1/02	  	$	16.00	  		  		  		  	
													
		  		  		  		  	1st Amend:	 		  		  	10/1/03	  	$	17.00	  		  		  		  	
		  		  		  		  	12/26/00	 		  		  	10/1/04	  	$	18.00	  		  		  		  	
		  		  		  		  		 		  		  	10/1/05	  	$	18.75	  		  		  		  	
		  		  		  		  		 		  		  	10/1/06	  	$	19.00	  		  		  		  	
		  		  		  		  		 		  		  	10/1/07	  	$	18.50	  		  		  		  	
		  		  		  		  		 		  		  	10/1/08	  	$	20.25	  		  		  		  	
		  		  		  		  		 		  		  	10/1/09	  	$	21.00	  		  		  		  	
		  		  		  		  		 		  		  	10/1/10	  	$	21.75	  		  		  		  	

 Page 5 of 5 
 Two Commerce Square 
 Rent Roll 
 July 1, 2003 
  

																										
	 	  	 	  	 	  	Square	 	Lease	 	Term	  	Rent	  	 	  	Recoveries	  	Percentage Rent
	 Tenant Name
	  	Suite	  	Floor	  	Feet	 	Date	 	Start	  	End	  	steps	  	Rent	  	Charge	  	Base	  	Percent	  	Break
	 Eizan, Fineburg & McCarthy
	  	3410	  	34	  	7,183	 	9/14/93	 	11/1/93	  	7/31/05	  	11/1/93	  	$	9.75	  	Op. Ex.	  	Net	  		  	
		  		  		  		 		 		  		  	11/1/94	  	$	13.00	  	Taxes	  	Net	  		  	
		  		  		  	Effective	 	1st Amend:	 		  		  	9/1/96	  	$	13.50	  		  		  		  	
		  		  		  	9/1/99:	 	5/14/98	 		  		  	9/1/99	  	$	10.47	  		  		  		  	
		  		  		  		 		 		  		  	6/1/00	  	$	11.75	  		  		  		  	
		  		  		  	9,506	 	2nd Amend:	 		  		  	8/1/00	  	$	12.00	  		  		  		  	
		  		  		  		 	7/31/99	 		  		  	8/1/01	  	$	12.25	  		  		  		  	
		  		  		  		 		 		  		  	8/1/02	  	$	12.75	  		  		  		  	
		  		  		  		 		 		  		  	8/1/03	  	$	13.00	  		  		  		  	
		  		  		  		 		 		  		  	8/1/04	  	$	13.25	  		  		  		  	
													
	 P. G Corbin & Co., Inc.
	  	3420	  	34	  	5,127	 	3/7/94	 	6/1/94	  	7/31/04	  	6/1/94	  	$	11.26	  	Op. Ex.	  	Net	  		  	
		  		  		  		 		 		  		  	8/1/01	  	$	12.70	  	Taxes	  	Net	  		  	
		  		  		  		 	1st amend:	 		  		  	8/1/02	  	$	13.70	  		  		  		  	
		  		  		  		 	11/30/98	 		  		  	8/1/03	  	$	14.70	  		  		  		  	
		  		  		  		 	2nd Amend:	 		  		  		  			  		  		  		  	
		  		  		  		 	2/28/01	 		  		  		  			  		  		  		  	
													
	 Ernst & Young, LLP
	  	2800	  	28	  	22,961	 	Sublease	 	1/1/00	  	8/22/08	  	1/1/00	  	$	12,02	  	Op. Ex	  	Net	  		  	
		  		  		  		 	7/1/00	 		  		  	1/1/04	  	$	13.05	  	Taxes	  		  		  	
	  
 Ernst & Young,
LLP
	  	3500	  	35	  	14,633	 	  
 12/19/91
	 	9/21/92	  	9/30/07	  	9/21/92	  	$	0	  		  		  		  	
	 Ernst & Young, LLP
	  	3600	  	36	  	14,633	 		 		  		  	9/21/93	  	$	7.00	  	Op. Ex.	  	Net	  		  	
	 Ernst & Young, LLP
	  	3700	  	37	  	14,633	 	1st Amend.	 	7/1/00	  	9/29/07	  	9/21/94	  	$	10.50	  	Taxes	  	Net	  		  	
	 Ernst & Young, LLP
	  	3800	  	38	  	14,633	 	9/30/99	 		  		  	9/21/95	  	$	15.50	  		  		  		  	
	 Ernst & Young, LLP
	  	3900	  	39	  	14,833	 		 		  		  	9/21/96	  	$	16.00	  		  		  		  	
	 Ernst & Young, LLP
	  	4000	  	40	  	14,833	 		 		  		  	9/21/97	  	$	20.00	  		  		  		  	
	 Ernst & Young, LLP**
	  	4100	  	41	  	13,998	 		 		  		  	9/21/99	  	$	21.00	  		  		  		  	
		  		  		  	 	 		 		  		  		  			  		  		  		  	
		  		  		  	124,757	 		 		  		  	9/21/00	  	$	22.00	  		  		  		  	
	 Less: NYCL Sublease
	  		  		  	(22,961)	 		 		  		  	9/21/01	  	$	23.00	  		  		  		  	
		  		  		  	 	 		 		  		  		  			  		  		  		  	
	 Original Direct Lease
	  		  		  	101,796	 		 		  		  	9/21/02	  	$	24.00	  		  		  		  	
		  		  		  		 		 		  		  	9/21/04	  	$	26.00	  		  		  		  	
		  		  		  		 		 		  		  	9/21/05	  	$	27.00	  		  		  		  	
		  		  		  		 		 		  		  	9/21/08	  	$	28.00	  		  		  		  	
													
	 Total Leased Space
	  		  		  	948,531	 	98.3%	 		  		  		  			  		  		  		  	
	 Total Vacant Space
	  		  		  	4,746	 	1.7%	 		  		  		  			  		  		  		  	
	 Total Space
	  		  		  	953,276	 	100%	 		  		  		  			  		  		  		  	

 Schedule 3.1.28 
 Organizational Charts 
 See Attached 

 

 

 Schedule 3.1.43 
 Environmental Matters 
 Matters disclosed in the pre-survey
questionnaire dated June 19, 2003 and transmitted by Borrower on June 23, 2003, and that certain Phase I Environmental Site Assessment dated July 7, 2003 by IVI International, Inc. (Project No. 30611642). 

 Schedule 9.1 
 Tenants and Subtenants 

 Exhibit A 
 Senior Cash Management Agreement 

 Exhibit B 
 Form LeaseLoan Agreement between Flower Associates, LLC and Citigroup Global Markets

 Exhibit 10.30 
 LOAN AGREEMENT 
 Dated as of July 17, 2006 
 by and among 
 515/555 FLOWER ASSOCIATES, LLC 
 as Borrower, 
 CITIGROUP GLOBAL MARKETS REALTY CORP. 
 as Agent, 

LASALLE BANK NATIONAL ASSOCIATION 
 as Collateral Agent 
 and 
 Each Lender Signatory hereto 

 TABLE OF CONTENTS 
  

					
	 	    	 	  	Page
	 ARTICLE I.    CERTAIN DEFINITIONS
	  	1
	 Section 1.1.
	    	Definitions	  	1
		
	 ARTICLE II.    GENERAL TERMS
	  	30
	 Section 2.1.
	    	The Loan	  	30
	 Section 2.2.
	    	Use of Proceeds	  	30
	 Section 2.3.
	    	Security for the Loan	  	30
	 Section 2.4.
	    	Borrower’s Note	  	31
	 Section 2.5.
	    	Principal and Interest; Exit Fee	  	31
	 Section 2.6.
	    	Voluntary Prepayment	  	32
	 Section 2.7.
	    	Mandatory Prepayment; Capital Events; Certain Transfers	  	32
	 Section 2.8.
	    	Application of Payments After Event of Default	  	33
	 Section 2.9.
	    	Method and Place of Payment From the Collection Account to Agent	  	33
	 Section 2.10.
	    	Taxes	  	34
	 Section 2.11.
	    	Release of Collateral	  	34
	 Section 2.12.
	    	Central Cash Management	  	34
	 Section 2.13.
	    	Reserve Account	  	40
	 Section 2.14.
	    	Additional Provisions Relating to the Collection Account and the Reserve Account	  	44
	 Section 2.15.
	    	Security Agreement	  	45
	 Section 2.16.
	    	Mortgage Recording Taxes	  	47
	 Section 2.17.
	    	Extension Option	  	48
	 Section 2.18.
	    	General Collateral Agent Provisions	  	49
		
	 ARTICLE III.    CONDITIONS PRECEDENT
	  	52
	 Section 3.1.
	    	Conditions Precedent to Closing	  	52
	 Section 3.2.
	    	Execution and Delivery of Agreement	  	57
		
	 ARTICLE IV.    REPRESENTATIONS AND WARRANTIES
	  	57
	 Section 4.1.
	    	Representations and Warranties as to Borrower	  	57
	 Section 4.2.
	    	Representations and Warranties as to the Mortgaged Property	  	61
	 Section 4.3.
	    	Survival of Representations	  	65
		
	 ARTICLE V.    AFFIRMATIVE COVENANTS
	  	65
	 Section 5.1.
	    	Affirmative Covenants	  	65
		
	 ARTICLE VI.    NEGATIVE COVENANTS
	  	91
	 Section 6.1.
	    	Negative Covenants	  	91
		
	 ARTICLE VII.    EVENT OF DEFAULT
	  	94
	 Section 7.1.
	    	Event of Default	  	94
	 Section 7.2.
	    	Remedies	  	95
	 Section 7.3.
	    	Remedies Cumulative	  	96
	 Section 7.4.
	    	Default Administration Fee	  	96
	 Section 7.5.
	    	Curative Advances	  	97

  

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	 ARTICLE VIII.    MISCELLANEOUS
	  	97
	 Section 8.1.
	    	Survival	  	97
	 Section 8.2.
	    	Agent’s Discretion	  	97
	 Section 8.3.
	    	Governing Law	  	97
	 Section 8.4.
	    	Modification, Waiver in Writing	  	98
	 Section 8.5.
	    	Delay Not a Waiver	  	98
	 Section 8.6.
	    	Notices	  	98
	 Section 8.7.
	    	TRIAL BY JURY	  	99
	 Section 8.8.
	    	Headings	  	99
	 Section 8.9.
	    	Assignment	  	99
	 Section 8.10.
	    	Severability	  	100
	 Section 8.11.
	    	Preferences	  	100
	 Section 8.12.
	    	Waiver of Notice	  	100
	 Section 8.13.
	    	Failure to Consent	  	100
	 Section 8.14.
	    	Schedules Incorporated	  	101
	 Section 8.15.
	    	Offsets, Counterclaims and Defenses	  	101
	 Section 8.16.
	    	No Joint Venture or Partnership	  	101
	 Section 8.17.
	    	Waiver of Marshalling of Assets Defense	  	101
	 Section 8.18.
	    	Waiver of Counterclaim	  	101
	 Section 8.19.
	    	Conflict; Construction of Documents	  	101
	 Section 8.20.
	    	Brokers and Financial Advisors	  	101
	 Section 8.21.
	    	Counterparts	  	102
	 Section 8.22.
	    	Estoppel Certificates	  	102
	 Section 8.23.
	    	Payment of Expenses	  	102
	 Section 8.24.
	    	Non-Recourse	  	102
		
	 ARTICLE IX.    THE AGENT
	  	105
	 Section 9.1.
	    	Appointment, Powers and Immunities	  	105
	 Section 9.2.
	    	Reliance by Agent	  	105
	 Section 9.3.
	    	Defaults	  	105
	 Section 9.4.
	    	Rights as a Lender	  	106
	 Section 9.5.
	    	Indemnification	  	106
	 Section 9.6.
	    	Non-Reliance on Agent and Other Lenders	  	106
	 Section 9.7.
	    	Failure to Act	  	107
	 Section 9.8.
	    	Resignation of Agent	  	107
	 Section 9.9.
	    	Agency Fee	  	107
	 Section 9.10.
	    	Consents under Loan Documents	  	107
	 Section 9.11.
	    	Notices, Reports and Other Communications	  	107

 SCHEDULES 
 1            –            Affiliate Transactions as of Closing 
 2            –            Operations and Maintenance Plan 
  

 ii 

 LOAN AGREEMENT 
 THIS LOAN AGREEMENT, made as of July 17, 2006, is by and among 515/555 FLOWER ASSOCIATES, LLC, a
Delaware limited liability company, having an address at c/o Thomas Properties Group, LLC, 515 South Flower Street, Sixth Floor, Los Angeles, California 90071 (“Borrower”); each of the financial institutions signatory hereto
that is identified as a “Lender” on the signature pages hereto or that, pursuant to Section 8.9 hereof, shall become a “Lender” here under (individually, a “Lender”, and collectively, the
“Lenders”); CITIGROUP GLOBAL MARKETS REALTY Corp., a New York corporation, having an address at 388 Greenwich Street, 11th Floor, New York, New York 10013 as
agent for the Lenders (in such capacity together with its successors in such capacity, the “Agent”); and LA SALLE BANK NATIONAL
ASSOCIATION, a national banking association, having an address at 135 South LaSalle Street, Suite 1625, Chicago, Illinois 60603, as a “bank” (as defined in Section 9-102(a)(8) of the UCC),
as a “securities intermediary” (as defined in Section 8-102(a)(14) of the UCC) and as collateral agent for the Lenders (as used herein, “Collateral Agent” shall refer to LaSalle Bank National Association in
each such capacity as the context requires together with any successor thereto). 
 RECITALS 
 WHEREAS, Borrower desires to obtain from the initial Lender the Loan in an amount equal to the Loan Amount (each as hereinafter defined) to
refinance the Mortgaged Property (as hereinafter defined) and to pay certain other fees and expenses; 
 WHEREAS, the initial
Lender is unwilling to make the Loan unless Borrower and Guarantor join in the execution and delivery of this Agreement, the Note and the Loan Documents (each as hereinafter defined) to which each of them is a party which shall establish the terms
and conditions of, and provide security for, the Loan; 
 WHEREAS, Borrower has agreed to establish certain accounts and to
grant to the Agent on behalf of, and for the benefit of, the Lenders, a security interest therein upon the terms and conditions of the security agreement set forth in Section 2.15; and 
 WHEREAS, LaSalle Bank National Association, in its capacity as collateral agent, bank and securities intermediary is willing to join in this
Agreement in such capacities. 
 NOW, THEREFORE, in consideration of the making of the Loan by the Lenders and for other good
and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, the parties hereby covenant, agree, represent and warrant as follows: 
 ARTICLE I. 
 CERTAIN DEFINITIONS 
 Section 1.1. Definitions. For all purposes of this Agreement: (1) the capitalized terms defined in this Article 1 have the
meanings assigned to them in this Article 1 and include the plural as well as the singular; (2) all accounting terms have the meanings assigned to them in accordance with GAAP (as hereinafter defined); (3) the words
“herein”, “hereof”, and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section, or other subdivision; and (4) the following terms have the
following meanings: 
  

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 “Accepted Practices” means such customary practices as commercial
mortgage collateral agents or banks would follow in the normal course of their business in performing administrative and custodial duties with respect to collateral which is generally similar to the Account Collateral; provided,
however, that “Accepted Practices” shall not be deemed to include any custodial practices now followed by Collateral Agent for any such collateral held for its own account to the extent that such practices are more stringent
than the practices followed by commercial mortgage collateral agents or banks generally. 
 “Account
Collateral” has the meaning set forth in Section 2.15(a) hereof. 
 “Accounts”
means all accounts (as defined in the relevant UCC), now owned or hereafter acquired by Borrower, and arising out of or in connection with, the operation of the Mortgaged Property and all other accounts described in the Management Agreement and all
present and future accounts receivable, inventory accounts, chattel paper, notes, insurance policies, Instruments, Documents or other rights to payment and all forms of obligations owing at any time to Borrower thereunder, whether now existing or
hereafter created or otherwise acquired by or on behalf of Borrower, and all Proceeds thereof and all liens, security interests, guaranties, remedies, privileges and other rights pertaining thereto, and all rights and remedies of any kind forming
the subject matter of any of the foregoing. 
 “Adjusted Operating Expenses” means, as of any date of
calculation, the Operating Expenses with respect to the Mortgaged Property during the most recent twelve (12) month period for which such information was furnished to the Agent pursuant to Section 2.12(e)(v) hereof, as the same are
adjusted by Agent as necessary to reflect 
 (1) expenses for management fees equal to the greater of actual management fees and
3.00% of Gross Revenues, and 
 (2) material increases in future Operating Expenses and increases in over-all actual Operating
Expenses from amounts set forth in the Operating Budget as reasonably determined by the Agent. 
 “Adjusted Operating
Revenue” means, as of any date of calculation, the sum of (A) the Operating Revenues reasonably projected by Borrower to be received with respect to the Mortgaged Property on a pro forma basis based upon the current annualized rent
roll reflecting the base rent portion of the Rents and recoveries due pursuant to Leases which are currently paying and (B) any other income deemed recurring by Agent (which shall exclude interest income) with respect to the Mortgaged Property
during the most recent twelve (12) month period for which such information was furnished to the Agent pursuant to Section 2.12(e)(v) hereof, as the same are adjusted by the Agent as necessary 
 (i) to reflect a reduction of above market Rents to market as reasonably determined by the Agent, and 
  

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 (ii) to exclude Rents and recoveries attributable to space that the Agent reasonably
believes will become vacant or to space occupied by any tenant that the Agent reasonably believes will suffer a material credit impairment during such period. 
 “Adjusted Property Net Cash Flow” for the Mortgaged Property, as of any date of calculation, shall mean the amount by which Adjusted Operating Revenues at such date exceeds
Adjusted Operating Expenses at such date. 
 “Affiliate” of any specified Person means any other Person
controlling or controlled by or under common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting securities or other beneficial interests, by contract or otherwise; and the terms “controlling” and “controlled” have the meanings correlative to the
foregoing. 
 “Agent” has the meaning provided in the first paragraph of this Agreement. 
 “Agreement” means this Loan Agreement, together with the Schedules and Exhibits hereto, as the same may from time to
time hereafter be modified, supplemented or amended. 
 “Appraisal” means an appraisal with respect to
the Mortgaged Property prepared by an Appraiser in accordance with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation, in compliance with the requirements of Title 11 of the Financial Institution Reform, Recovery
and Enforcement Act and utilizing customary valuation methods such as the income, sales/market or cost approaches. 
 “Appraiser” means a nationally recognized MAI appraiser selected by Borrower and reasonably approved by the Agent. 
 “Assignment of Rents and Leases” means, with respect to the Mortgaged Property, an Assignment of Rents and Leases, dated as of the Closing Date, granted by Borrower to Agent for
the benefit of the Lenders with respect to the Leases, as same may thereafter from time to time be supplemented, amended, modified or extended by one or more agreements supplemental thereto. 
 “Basic Carrying Costs” means the following costs with respect to the Mortgaged Property: (i) Impositions and
(ii) insurance premiums for policies of insurance required to be maintained by Borrower pursuant to this Agreement or the other Loan Documents. 
 “Base CPI” means the Consumer Price Index for the calendar month immediately preceding the calendar month in which the Closing Date occurs. 
 “Borrower” has the meaning provided in the first paragraph of this Agreement. 
 “Borrower’s Operating Account” shall mean an account established by Borrower into which disbursements from the
Other Property Expenses Account are made, at a financial institution selected by Borrower and reasonably acceptable to Lender (initially City National Bank). 
  

 3 

 “Business Day” means any day other than a Saturday, a Sunday or a
day on which commercial banks in the State of New York, California or Illinois are authorized or obligated by law, governmental decree or executive order to be closed. When used with respect to an Interest Determination Date, “Business
Day” shall mean any day other than a Saturday, a Sunday or a day on which banks in London, England are closed for interbank or foreign exchange transactions. 
 “CALSTRS” means the California State Teachers’ Retirement System. 
 “Capital Budget” means Borrower’s $112,795,560 budget of Capital Improvement Costs for the Renovation of the Mortgaged Property (of which $64,912,537 remains to be completed,
subject to confirmation by Construction Consultant), in the form approved by Junior Mezzanine Lender on the Closing Date, together with such amendments to such budget as may be approved by Junior Mezzanine Lender in accordance with the Junior
Mezzanine Loan Agreement. 
 “Capital Event” means any transfer, sale, assignment, conveyance,
liquidation, disposition (other than a Taking) or refinancing of the Mortgaged Property and “Capital Events” shall have a meaning correlative to the foregoing. 
 “Capital Event Proceeds” means any cash proceeds of a Capital Event received by Borrower net of any cash prorations, adjustments and credits with respect to such Capital Event and
net of reasonable third-party expenses paid in connection with such Capital Event. 
 “Capital Improvement
Costs” means costs incurred or to be incurred in connection with replacements and capital repairs made to the Mortgaged Property (including direct and indirect costs as stipulated under the Capital Budget approved by Junior Mezzanine
Lender). 
 “Cash Flow Sweep Account” has the meaning set forth in Section 2.13(c) hereof.

 “Chattel Paper” means all of Borrower’s right, title and interest, whether now owned or
hereafter acquired, in, to and under all “chattel paper” as defined in the UCC (whether tangible chattel paper or electronic chattel paper). 
 “Closing Date” means the date of the funding of the Loan. 
 “Code” means the Internal Revenue Code of 1986, as amended, and as it may be further amended from time to time, any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant
thereto in temporary or final form. 
 “Collateral” means, collectively, the Land, Improvements, Leases,
Rents, Personalty, and all Proceeds, and (to the full extent assignable) Permits, which is or hereafter may become subject to a Lien in favor of the Agent on behalf of the Lenders as security for the Loan (whether pursuant to the Mortgage, any other
Loan Document or otherwise), all whether

  

 4 

 now owned or hereafter acquired and all other property which is or hereafter may become subject to a Lien in
favor of the Agent on behalf of the Lenders as security for the Loan and including all property of any kind described as part of the Mortgaged Property under the Mortgage. 
 “Collateral Agent” has the meaning specified in the introductory paragraph of this Agreement. 
 “Collateral Assignment of Hedge” means the Collateral Assignment of Hedge, dated as of the applicable date and
executed by Borrower, the Agent and the hedge counterparty. 
 “Collateral Security Instrument” means
any right, document or instrument, other than the Mortgage, given as security for the Loan, including, without limitation, the Assignment of Rents and Leases, the Collateral Assignment of Hedge, the Note Pledge Agreement and the Contract Assignment.

 “Collection Account” has the meaning set forth in Section 2.12(a) hereof. 
 “Collection Period” means, with respect to any Payment Date, the period commencing on and including the eleventh
(11th) day in the month preceding the month in which such Payment Date occurs through and including the tenth (10th) day in the month in which such Payment Date occurs; provided, however, that in the case of the first Payment
Date, the “Collection Period” shall commence on the Closing Date. 
 “Condemnation Proceeds”
means, in the event of a Taking with respect to the Mortgaged Property, the proceeds in respect of such Taking less any reasonable third party out-of-pocket expenses incurred in collecting such proceeds. 
 “Construction Consultant” means Inspection and Valuation International, Inc., a New York corporation, or such other
construction consultant as Junior Mezzanine Lender shall select. 
 “Consumer Price Index” means the
Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the United States Department of Labor, in the area where the Mortgaged Property is located, All Items (1982-84 = 100), or any successor index thereto,
appropriately adjusted and if such Consumer Price Index ceases to be published and there is no successor thereto, such other index as Agent and Borrower shall mutually agree upon. 
 “Contingent Obligation” means, as used in the definition of Other Borrowings, without duplication, any obligation of
Borrower guaranteeing any indebtedness, leases, dividends or other obligations (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly. Without
limiting the generality of the foregoing, the term “Contingent Obligation” shall include any obligation of Borrower: 
 (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor; 
  

 5 

 (ii) to advance or supply funds (x) for the purchase or payment of any such primary
obligation or (y) to maintain working capital or equity capital of the primary obligor; 
 (iii) to purchase property,
securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation; or 
 (iv) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof. 
 The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of
which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming Borrower is required to perform thereunder) as determined by Agent in good faith. 
 “Contract Assignment” means, with respect to the Mortgaged Property, the Assignment of Contracts, Licenses, Permits,
Agreements, Warranties and Approvals, dated as of the Closing Date and executed by Borrower. 
 “Contracts” means the Management Agreement and all other agreements to which Borrower is a party or which are assigned to Borrower by the Manager in the Management Agreement and which are executed in connection with
the construction, operation and management of the Mortgaged Property (including, without limitation, agreements for the sale, lease or exchange of goods or other property and/or the performance of services by it, in each case whether now in
existence or hereafter arising or acquired) as any such agreements have been or may be from time to time amended, supplemented or otherwise modified. 
 “Debt Service Coverage Test” means, as of any date of calculation with respect to the Mortgaged Property, a test which shall be satisfied if the Adjusted Property Net Cash Flow at
such date is at least equal to the product of 1.20 and the Loan Debt Service at such date. The Debt Service Coverage Test shall be calculated no less than monthly by the Agent based upon the Adjusted Property Net Cash Flow computed quarterly by the
Agent from the most recent Quarterly Statement delivered by Borrower. If on any given calculation date, (a) the Debt Service Coverage Test has been satisfied and the Debt Service Coverage Test was not satisfied on the immediately preceding
calculation date, or (b) the Debt Service Coverage Test has not been satisfied and the Debt Service Coverage Test was satisfied on the immediately preceding calculation date, then the Agent shall promptly inform Collateral Agent and Borrower of
such satisfaction or non-satisfaction. 
 “Deed of Trust Trustee” means the trustee under the Mortgage
that constitutes a “deed of trust” under applicable law. 
 “Default” means the occurrence of
any event which, but for the giving of notice or the passage of time, or both, would be an Event of Default. 
  

 6 

 “Default Administration Fee” means an amount equal to the product of
(x) 0.5% and (y) the Principal Indebtedness as of the date the Default Administration Fee becomes payable; provided, however, that if prior to the expiration of the Default Refinance Period, Borrower fully repays the
Indebtedness, then the amount of the Default Administration Fee shall be reduced by the amount of the Exit Fee, regardless of whether payment of the Exit Fee is waived by Agent hereunder. 
 “Default Rate” means the per annum interest rate equal to the lesser of (a) 5.0% per annum in excess of
the rate otherwise applicable hereunder and (b) the maximum rate allowable by applicable law. 
 “Default
Refinance Period” means the period that commences as of the date the Default Administration Fee becomes payable hereunder, and ends on the date that is ninety (90) days thereafter; provided, however, that if Borrower has not fully
repaid the Indebtedness on or prior to such ninetieth (90th) day, but Borrower has used commercially reasonable and diligent efforts to obtain a refinance loan, and delivers to Agent, on or before such ninetieth (90th) day, a
fully-executed copy of a binding loan commitment from a bank or other bona fide commercial lender pursuant to which such bank or commercial lender has committed to make a loan to Borrower in an amount that is no less than the then-outstanding
Indebtedness, then the Default Refinance Period shall be extended by thirty (30) days. 
 “Deficient
Amount” has the meaning set forth in Section 5.1(x)(iv)(B). 
 “Demand Note”
shall mean that certain Demand Note, dated of even date herewith, executed by TPG/CALSTRS to Guarantor, in the original principal amount of $15,000,000, payable upon demand from Guarantor to TPG/CALSTRS, in the event that Guarantor defaults in its
payment obligations under the Guaranty of Non-Recourse Obligations. 
 “Deposit Account” means all of
Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under all “deposit accounts” as defined in the UCC. 
 “Disclosure Certificate” has the meaning set forth in Section 5.1(w). 
 “Disclosure Documents” has the meaning set forth in Section 5.1(w). 
 “Documents” means all of Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under all “documents” as defined in the UCC
(whether negotiable or non-negotiable) or other receipts covering, evidencing or representing goods. 
 “Eligible
Account” means a separate and identifiable account from all other funds held by the holding institution that is: (i) an account maintained with a federal or state chartered depository institution or trust company whose
(1) commercial paper, short-term debt obligations or other short-term deposits are rated by the Rating Agencies not less than “A-1”(or the equivalent), if the deposits are to be held in the account for thirty (30) days or less or
(2) long-term unsecured debt obligations are rated at least “AA-” (or the equivalent), if the deposits are to be held in the account more than thirty (30) days or (ii) a segregated trust account maintained with the corporate
trust department of a federal or state chartered depository institution or trust company subject to regulations regarding fiduciary funds on deposit similar to

  

 7 

 
Title 12 of the Code of Federal Regulations Section 9.10(b) which, in either case, has corporate trust powers, acting in its fiduciary capacity. An Eligible Account shall not be
evidenced by a certificate of deposit, passbook, other instrument or any other physical indicia of ownership. Following a downgrade, withdrawal, qualification or suspension of such institution’s rating, each account must promptly (and in any
case within not more than thirty (30) calendar days) be moved to a qualifying institution or to one or more segregated trust accounts in the trust department of such institution, if permitted. Notwithstanding the foregoing, an account
maintained with City National Bank shall be deemed an “Eligible Account” for so long as the following conditions are satisfied: (A) the commercial paper, short-term debt obligations or other short-term deposits of City National Bank
are rated by the Rating Agencies not less than “A-2”(or the equivalent), if the deposits are to be held in the account for thirty (30) days or less, and (B) the long-term unsecured debt obligations of City National Bank are rated
at least “BBB” (or the equivalent), if the deposits are to be held in the account more than thirty (30) days. 
 “Engineer” means an Independent engineer selected by Borrower and reasonably approved by Agent. 
 “Engineering Report” means the structural engineering reports with respect to the Mortgaged Property prepared by an Engineer and delivered to Agent in connection with the Loan and any amendments or supplements
thereto delivered to Agent. 
 “Environmental Auditor” means an Independent environmental auditor
selected by Borrower and reasonably approved by Agent. 
 “Environmental Claim” means any notice,
notification, request for information, claim, administrative, regulatory or judicial action, suit, judgment, demand or other written communication (whether written or oral) by any Person or Governmental Authority alleging or asserting liability with
respect to Borrower or the Mortgaged Property (whether for damages, contribution, indemnification, cost recovery, compensation, injunctive relief, investigatory, response, remedial or cleanup costs, damages to natural resources, personal injuries,
fines or penalties) arising out of, based on or resulting from (i) the presence, Use or Release into the environment of any Hazardous Substance at any location (whether or not owned, managed or operated by Borrower) that affects Borrower or the
Mortgaged Property, (ii) any fact, circumstance, condition or occurrence forming the basis of any violation, or alleged violation, of any Environmental Law or (iii) any alleged injury or threat of injury to human health, safety or the
environment. 
 “Environmental Indemnity Agreement” means the Environmental Indemnity Agreement dated as
of the Closing Date, from Borrower and the Guarantor, as indemnitor, to the Lenders, Agent and Collateral Agent, as indemnitees. 
 “Environmental Laws” means any and all present and future federal, state or local laws, statutes, ordinances, rules or regulations, or any judicial interpretation thereof, any judicial or administrative orders,
decrees or judgments thereunder issued by a Governmental Authority, and any permits, approvals, licenses, registrations, filings and authorizations, in each case as now or hereafter in effect, relating to the environment, human health or safety, or
the Release or threatened Release of Hazardous Substances or otherwise relating to the Use of Hazardous Substances. 
  

 8 

 “Environmental Reports” means a “Phase I Environmental Site
Assessment” (and, if such Phase I Environmental Site Assessment identifies any recognized environmental conditions requiring further investigation, a “Phase II Environment Site Assessment” with respect to such recognized environmental
conditions) as referred to in the ASTM Standards on Environmental Site Assessments for Commercial Real Estate, E1527-2000 and an asbestos inspection report, with respect to the Mortgaged Property, prepared by an Environmental Auditor and delivered
to Agent and any amendments or supplements thereto delivered to Agent. 
 “EO13224” has the meaning set
forth in Section 4.1(v) hereof. 
 “Equipment” means all of Borrower’s right, title and
interest, whether now owned or hereafter acquired, in, to and under (i) all “equipment” as defined in the UCC, and (ii) all of the following (regardless of how classified under the UCC): all building materials, construction
materials, personal property constituting furniture, fittings, appliances, apparatus, leasehold improvements, machinery, devices, interior improvements, appurtenances, equipment, plant, furnishings, fixtures, computers, electronic data processing
equipment, telecommunications equipment and other fixed assets now owned or hereafter acquired by Borrower, and all Proceeds of (i) and (ii) and as well as all additions to, substitutions for, replacements of or accessions to any of the
items recited as aforesaid and all attachments, components, parts (including spare parts) and accessories, whether installed thereon or affixed thereto, all regardless of whether the same are located on such Mortgaged Property or are located
elsewhere (including, without limitation, in warehouses or other storage facilities or in the possession of or on the premises of a bailee, vendor or manufacturer) for purposes of manufacture, storage, fabrication or transportation and all
extensions and replacements to, and proceeds of, any of the foregoing. 
 “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated thereunder. Section references to ERISA are to ERISA, as in effect at the date of this Agreement and, as of the relevant date, any subsequent
provisions of ERISA, amendatory thereof, supplemental thereto or substituted therefor. 
 “ERISA
Affiliate” means any corporation or trade or business that is a member of any group of organizations (i) described in Section 414(b) or (c) of the Code of which Borrower is a member and (ii) solely for purposes of
potential liability under Section 302(c)(11) of ERISA and Section 412(c)(11) of the Code and the lien created under Section 302(f) of ERISA and Section 412(n) of the Code, described in Section 414(m) or (o) of the Code
of which Borrower is a member. 
 “Event of Default” has the meaning set forth in
Section 7.1 hereof. 
 “Exit Fee” means 0.25% of the Loan Amount, which amount shall be due
and payable upon the earlier to occur of full repayment of the Loan and the Maturity Date (whether by acceleration or otherwise); provided, however, that notwithstanding the foregoing, in the event the initial Lender provides the funds
for a refinancing of the Loan in an amount no less than $300,000,000, then the Exit Fee shall be waived. 
  

 9 

 “Expense Deposit” means $100,000. 
 “Extension Conditions,” “Extension Fee,” “Extension Notice,” and
“Extension Option” have the respective meanings set forth in Section 2.17(a) hereof. 
 “Fee Letter” means the letter dated the date hereof entered into between Borrower and the Collateral Agent, with respect to the fees of the Collateral Agent under this Agreement. 
 “Final Maturity Date” and “First Extended Maturity Date” have the respective meanings set
forth in Section 2.17(a) hereof. 
 “Fiscal Year” means the 12-month period ending on
December 31st of each year (or, in the case of the first fiscal year, such shorter period from the Closing Date through such date) or such other fiscal year of Borrower as Borrower may select from time to time with the prior consent of Agent.

 “Fund” has the meaning set forth in the definition of “Permitted Investments”. 

“GAAP” means generally accepted accounting principles as required by the National Council for Real Estate
Fiduciaries in the United States of America as of the date of the applicable financial report. 
 “General
Intangibles” means all of Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under (i) all “general intangibles” as defined in the relevant UCC, now owned or hereafter acquired
by Borrower and (ii) all of the following (regardless of how characterized): all agreements, covenants, restrictions or encumbrances affecting the Mortgaged Property or any part thereof. 
 “Governmental Authority” means any national or federal government, any state, regional, local or other political
subdivision thereof with jurisdiction and any Person with jurisdiction exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
 “Gross Revenue” means, for any period, the total dollar amount of all income and receipts received by, or for the
account of, Borrower in the ordinary course of business with respect to the Mortgaged Property, but excluding Loss Proceeds (other than the proceeds of business interruption insurance or the proceeds of a temporary Taking in lieu of Rents).

 “Guarantor” means 505 Flower Associates, LLC, a Delaware limited liability company. 
 “Guaranty of Non-Recourse Obligations” means, with respect to the Loan, the Guaranty of Non-Recourse Obligations
guaranteeing the exceptions to the nonrecourse provisions of the Loan Documents for which liability is retained as described in Section 8.24 hereof from the Guarantor to the Agent for the benefit of the Lenders. 
  

 10 

 “Hazardous Substance” means, collectively, (i) any petroleum or
petroleum products or waste oils, explosives, radioactive materials, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls (“PCBs”), lead in drinking water, lead-based paint and radon, (ii) any chemicals
or other materials or substances which are now or hereafter become defined as or included in the definitions of “hazardous substances”, “hazardous wastes”, “hazardous materials”, “extremely hazardous wastes”,
“restricted hazardous wastes”, “toxic substances”, “toxic pollutants”, “contaminants”, “pollutants” or words of similar import under any Environmental Law and (iii) any other chemical or any
other hazardous material or substance, exposure to which is now or hereafter prohibited, limited or regulated under any Environmental Law. 
 “Impositions” means all taxes (including, without limitation, all real estate, ad valorem, sales (including those imposed on lease rentals), use, single business, gross receipts,
value added, intangible transaction privilege, privilege or license or similar taxes), assessments (including, without limitation, all assessments for public improvements or benefits, whether or not commenced or completed within the term of the
Loan), ground rents, water, sewer or other rents and charges, excises, levies, governmental fees (including, without limitation, license, permit, inspection, authorization and similar fees), and all other governmental charges, in each case whether
general or special, ordinary or extraordinary, foreseen or unforeseen, in respect of the Mortgaged Property (including all interest and penalties thereon), accruing during or in respect of the term hereof and which may be assessed against or imposed
on or in respect of or be a Lien upon (1) Borrower (including, without limitation, all income, franchise, single business or other taxes imposed on Borrower for the privilege of doing business in the jurisdiction in which the Mortgaged
Property, or any other collateral delivered or pledged to Agent in connection with the Loan, is located) or Lenders, or (2) the Mortgaged Property, or any other collateral delivered or pledged to Lenders in connection with the Loan, or any part
thereof or any Rents therefrom or any estate, right, title or interest therein, or (3) any occupancy, operation, use or possession of, or sales from, or activity conducted on, or in connection with the Mortgaged Property or the leasing or use
of the Mortgaged Property or any part thereof, or the acquisition or financing of the acquisition of the Mortgaged Property by Borrower. 
 “Improvements” means all buildings, structures, fixtures and improvements now or hereafter owned by Borrower of every nature whatsoever situated on any Land constituting part of
the Mortgaged Property (including, without limitation, all gas and electric fixtures, radiators, heaters, engines and machinery, boilers, ranges, elevators and motors, plumbing and heating fixtures, carpeting and other floor coverings, water
heaters, awnings and storm sashes, and cleaning apparatus which are or shall be affixed to the Land or said buildings, structures or improvements and including any additions, enlargements, extensions, modifications, repairs or replacements thereto).

 “Indebtedness” means the Principal Indebtedness, together with all other obligations and liabilities
due or to become due to the Lenders pursuant hereto, under the Note or in accordance with any of the other Loan Documents, and all other amounts, sums and expenses paid by or payable to the Lenders hereunder or pursuant to the Note or any of the
other Loan Documents. 
  

 11 

 “Indemnified Parties” has the meaning set forth in
Section 5.1(i). 
 “Independent” means, when used with respect to any Person, a Person that
(i) does not have any direct financial interest or any material indirect financial interest in Borrower or in any Affiliate of Borrower, and (ii) is not connected with Borrower or any Affiliate of Borrower as an officer, employee, trustee,
partner, director or person performing similar functions. 
 “Index Maturity” has the meaning set forth
in the definition of LIBOR. 
 “Instruments” means all of Borrower’s right, title and interest,
whether now owned or hereafter acquired, in, to and under all “instruments” as defined in the UCC. 
 “Insurance Escrow Account” has the meaning set forth in Section 2.13(b). 
 “Insurance Premiums” has the meaning set forth in Section 5.1(x)(iii). 
 “Insurance Proceeds” means, in the event of a casualty with respect to the Mortgaged Property, the proceeds received under any insurance policy applicable thereto. 
 “Insurance Requirements” means all material terms of any insurance policy required pursuant to this Agreement or the
Mortgage and all material regulations, rules and other requirements of the National Board of Fire Underwriters or such other body exercising similar functions applicable to or affecting the Mortgaged Property or any part thereof or any use or
condition thereof. 
 “Insured Casualty” has the meaning set forth in Section 5.1(x)(iv)(B).

 “Intellectual Property” means all of Borrower’s right, title and interest, whether now owned or
hereafter acquired, in, to and under the trademark licenses, trademarks, rights in intellectual property, trade names, service marks and copyrights, copyright licenses, patents, patent licenses or the license to use intellectual property such as
computer software owned or licensed by Borrower or other proprietary business information relating to Borrower’s policies, procedures, manuals and trade secrets. 
 “Intercreditor Agreement” means the Intercreditor Agreement, dated as of the applicable date, by and among the Agent on behalf of the Lenders, Senior Mezzanine Lender and Junior
Mezzanine Lender and/or the Intercreditor Agreement, dated as of the applicable date, between Senior Mezzanine Lender and Junior Mezzanine Lender. 
 “Interest Accrual Period” means, in connection with the calculation of interest accrued with respect to any Payment Date, the period commencing on and including the eleventh
(11th) day in the month preceding the month in which such Payment Date occurs through and including the tenth (10th) day in the month in which such Payment Date occurs; provided, however, that the first Interest Accrual
Period for the Loan shall commence on the Closing Date. 
  

 12 

 “Interest Determination Date” means, in connection with the
calculation of interest to accrue for any Interest Accrual Period, the second Business Day preceding the fifteenth (15th) day of the month in which such Interest Accrual Period commences; provided, however, that the first Interest
Determination Date for the Loan shall be the second Business Day preceding the Closing Date. 
 “Interested
Parties” has the meaning set forth in Section 5.1(w). 
 “Interest Reserve
Account” has the meaning set forth in Section 2.13(d). 
 “Inventory” means all
of Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under all “inventory” as defined in the UCC and shall include all Documents representing the same. 
 “Investment Property” means all of Borrower’s right, title and interest, whether now owned or hereafter
acquired, in, to and under all “investment property” as defined in the UCC. 
 “Junior Mezzanine
Borrower” means 515/555 Flower Junior Mezzanine Associates, LLC, a Delaware limited liability company. 
 “Junior Mezzanine Lender” means Citigroup Global Markets Realty Corp., a New York corporation, and its successors and assigns. 
 “Junior Mezzanine Loan” means the loan made pursuant to the Junior Mezzanine Loan Agreement. 
 “Junior Mezzanine Loan Account” means such account at such bank as Junior Mezzanine Lender shall notify in writing to Borrower, Collateral Agent and the Agent. 
 “Junior Mezzanine Loan Agreement” means the Loan Agreement, dated as of the date hereof, by and between Junior
Mezzanine Borrower and Junior Mezzanine Lender. 
 “Junior Mezzanine Loan Market Constant” means, at any
date of calculation, the higher of (a) the annual interest rate on the Junior Mezzanine Loan for the Interest Accrual Period in which such date occurs, and (b) 8.0%. 
 “Junior Mezzanine Loan Principal Indebtedness” has the meaning given to the term “Principal Indebtedness”
in the Junior Mezzanine Loan Agreement. 
 “Land” has the meaning provided in the Mortgage. 

“Leases” means all leases, subleases, lettings, occupancy agreements, tenancies and licenses by Borrower as
landlord of the Mortgaged Property or any part thereof now or hereafter entered into, and all amendments, extensions, renewals and guarantees thereof, and all security therefor. 
  

 13 

 “Leasing Budget” means Borrower’s $146,720,081 budget of
Leasing Commissions and TI Costs for the Renovation of the Mortgaged Property (of which $84,724,348 remains to be completed, subject to confirmation by Construction Consultant), in the form approved by Junior Mezzanine Lender on the Closing Date,
together with such amendments to such budget as may be approved by Junior Mezzanine Lender in accordance with the Junior Mezzanine Loan Agreement. 
 “Leasing Commissions” means leasing commissions incurred by Borrower in connection with leasing the Mortgaged Property or any portion thereof (including renewals of existing
Leases). 
 “Legal Requirements” means all governmental statutes, laws, rules, orders, regulations,
ordinances, judgments, decrees and injunctions of Governmental Authorities (including, without limitation, Environmental Laws) affecting Borrower or the Mortgaged Property or any part thereof or the construction, use, alteration or operation
thereof, or any part thereof (whether now or hereafter enacted and in force), and all permits, licenses and authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments,
at any time in force affecting the Mortgaged Property or any part thereof (including, without limitation, any which may (i) require repairs, modifications or alterations in or to the Mortgaged Property or any part thereof, or (ii) in any
way limit the use and enjoyment thereof). 
 “Lender” has the meaning provided in the first paragraph of
this Agreement. 
 “Letter of Credit Rights” means all of Borrower’s right, title and interest,
whether now owned or hereafter acquired, in, to and under all “letter of credit rights” as defined in the UCC. 
 “LIBOR” means the rate per annum calculated as set forth below: 
 (i) On each Interest
Determination Date, LIBOR will be determined on the basis of the offered rate for deposits of not less than U.S. $1,000,000 for a period of one month (the “Index Maturity”), commencing on such Interest Determination Date,
which appears on Dow Jones Market Service (formerly Telerate) Page 3750 as of 11:00 a.m., London time (or such other page as may replace the Dow Jones Market Service (formerly Telerate) Page on that service for the purposes of displaying London
interbank offered rates of major banks). If no such offered rate appears, LIBOR with respect to the relevant Interest Accrual Period will be determined as described in (ii) below. 
 (ii) With respect to an Interest Determination Date on which no such offered rate appears on Dow Jones Market Service (formerly Telerate)
Page 3750 as described in (i) above, LIBOR shall be the arithmetic mean, expressed as a percentage, of the offered rates for deposits in U.S. dollars for the Index Maturity which appears on the Reuters Screen LIBO Page as of 11:00 a.m., London
time, on such date. If, in turn, such rate is not displayed on the Reuters Screen LIBO Page at such time, then LIBOR for such date will be obtained from the preceding Business Day for which the Reuters Screen LIBO Page displayed a rate for the Index
Maturity. 
  

 14 

 (iii) If on any Interest Determination Date, Agent is required but unable to determine LIBOR
in the manner provided in paragraphs (i) and (ii) above, LIBOR for the next Interest Accrual Period shall be determined from such financial reporting service as Agent shall reasonably determine and use with respect to its other loan
facilities on which interest is determined based on LIBOR. 
 All percentages resulting from any calculations of LIBOR referred to in this
Agreement will be carried out to five decimal places and all U.S. dollar amounts used in or resulting from such calculations will be rounded upwards to the nearest cent. 
 “Lien” means any mortgage, deed of trust, lien (statutory or other), pledge, hypothecation, assignment, security interest, or any other encumbrance or charge on or affecting
Borrower or the Mortgaged Property or any portion thereof, or any interest therein (including, without limitation, any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of
the foregoing, and mechanic’s, materialmen’s and other similar liens and encumbrances). 
 “Loan” means the loan made by Agent to Borrower pursuant to the terms of this Agreement. 
 “Loan Amount” means an amount equal to $420,000,000. 
 “Loan Debt
Service” means, at any date of calculation, the sum of (i) the product of the Market Constant at such date and the Principal Indebtedness at such date, plus (ii) the product of the Senior Mezzanine Loan Market Constant at such
date and the Senior Mezzanine Loan Principal Indebtedness at such date, plus (iii) the product of the Junior Mezzanine Loan Market Constant at such date and the Junior Mezzanine Loan Principal Indebtedness at such date. 
 “Loan Documents” means this Agreement, the Note, the Contract Assignment, the Manager’s Subordination, the
Mortgage, the Assignment of Rents and Leases, the Environmental Indemnity Agreement, the Guaranty of Non-Recourse Obligations, the Collateral Assignment of Hedge, the Note Pledge Agreement, the Local Deposit Bank Agreements and all other agreements,
instruments, certificates and documents delivered by or on behalf of Borrower or an Affiliate of Borrower to evidence or secure the Loan as same may be amended or modified from time to time. 
 “Loan to Value Test” means a test that shall be satisfied if (a) the sum of (i) the outstanding Principal
Indebtedness plus (ii) the outstanding Senior Mezzanine Loan Principal Indebtedness is less than 75% of the value of the Mortgaged Property as determined by the Lender in its sole discretion; and (b) the sum of (i) the outstanding
Principal Indebtedness plus (ii) the outstanding Senior Mezzanine Loan Principal Indebtedness plus (iii) the outstanding Junior Mezzanine Loan Principal Indebtedness is less than 80% of the value of the Mortgaged Property as determined by
the Lender in its sole discretion. 
 “Local Collection Account” has the meaning set forth in
Section 2.12(a). 
 “Local Deposit Bank” has the meaning set forth in
Section 2.12(a). 
  

 15 

 “Local Deposit Bank Agreements” means the various account
agreements, executed by Borrower, Agent and the Local Deposit Bank, governing the control and disposition of funds held in the Local Collection Account, the Parking Collection Account, the Security Deposit Account and Borrower’s Operating
Account. 
 “Loss Proceeds” means Condemnation Proceeds and/or Insurance Proceeds. 
 “Losses” has the meaning set forth in Section 5.1(j). 
 “Management Agreement” means with respect to the Mortgaged Property, the Management Agreement entered into between
Borrower and the Manager, or in such other form as may be reasonably approved by the Agent, as such agreement may be amended, modified or supplemented and in effect from time to time. 
 “Manager” means Thomas Development Partners, L.P., a California limited partnership. 
 “Manager’s Subordination” means, with respect to the Mortgaged Property, the
Manager’s Consent and Subordination of Management Agreement, executed by the Manager, Borrower and the Agent, dated as of the Closing Date. 
 “Market Constant” means, at any date of calculation, the higher of (a) the annual interest rate on the Loan for the Interest Accrual Period in which such date occurs, and
(b) 8.0%. 
 “Material Adverse Effect” means a material adverse effect upon (i) the business
operations, properties, assets or condition (financial or otherwise) of Borrower, (ii) the ability of Borrower to perform, or of Agent to enforce, any of the Loan Documents or (iii) the aggregate value of the Mortgaged Property.

 “Maturity Date” means the earlier of (a) the Original Maturity Date, or if Borrower exercises
the Extension Option pursuant to Section 2.17, the First Extended Maturity Date or the Final Maturity Date, as applicable, or (b) such earlier date on which the entire Loan is required to be paid in full, by acceleration or
otherwise under this Agreement or any of the other Loan Documents. 
 “Minimum CALSTRS Ownership
Percentage” means 30%. 
 “Money” means all of Borrower’s right, title and interest,
whether now owned or hereafter acquired, in, to and under (i) all “money” as defined in the UCC and (ii) all moneys, cash, or other items of legal tender generated from the use or operation of the Mortgaged Property. 

“Monthly Property Expenses” means, with respect to any Payment Date, an amount equal to not less than 100% and up
to 125% of the monthly Property Expenses projected by Borrower to be incurred during the applicable period commencing on such Payment Date and ending on the next Payment Date as set forth in the Operating Budget for the applicable Fiscal Year;
provided, however, that the Agent’s prior written consent shall be required for any amount greater than 125% of the projected monthly amount in such Operating Budget for Property Expenses. 
  

 16 

 “Monthly Statement” has the meaning provided in
Section 2.12(d). 
 “Mortgage” means, with respect to the Mortgaged Property, a first
priority Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated as of the Closing Date, granted by Borrower to or for the benefit of Deed of Trust Trustee for the benefit of Agent with respect to the Mortgaged
Property as security for the Loan, as same may thereafter from time to time be supplemented, amended, modified or extended by one or more agreements supplemental thereto. 
 “Mortgaged Property” means, at any time, the Land, the Improvements, the Personalty, the Leases and the Rents, and all rights, titles, interests and estates appurtenant thereto,
encumbered by, and more particularly described in, the Mortgage. 
 “Multiemployer Plan” means a
multiemployer plan defined as such in Section 3(37) of ERISA and which is covered by Title IV of ERISA (i) to which contributions have been, or were required to have been made by Borrower or any ERISA Affiliate or (ii) with respect to
which Borrower could reasonably be expected to incur liability. 
 “Net Proceeds” means either
(x) the purchase price (at foreclosure or otherwise) actually received by Agent from a third party purchaser with respect to the Mortgaged Property, as a result of the exercise by Agent of its rights, powers, privileges and other remedies after
the occurrence of an Event of Default or (y) in the event that Agent (or its nominee) or a Lender is the purchaser at foreclosure of the Mortgaged Property, the higher of (i) the amount of Agent’s or such Lender’s credit bid or
(ii) such amount as shall be determined in accordance with applicable law, and in either case minus all reasonable third party, out of pocket costs and expenses (including, without limitation, all attorneys’ fees and disbursements and any
brokerage fees, if applicable) incurred by Agent (and its nominee, if applicable) or such Lender in connection with the exercise of such remedies; provided, however, that such costs and expenses shall not be deducted to the extent such
amounts previously have been added to the Indebtedness in accordance with the terms of the Loan Documents or applicable law. 
 “Note” means the promissory note made by Borrower to initial Lender pursuant to this Agreement, as such note may be modified, amended, supplemented or extended. 
 “Note Pledge Agreement” means the Note Pledge Agreement, dated as of the date hereof, executed by Guarantor, Agent,
Senior Mezzanine Lender and Junior Mezzanine Lender. 
 “OFAC” has the meaning set forth in
Section 4.1(v) hereof. 
 “Officer’s Certificate” means a certificate delivered to
Agent by Borrower which is signed by an authorized officer of Borrower. 
 “On-going Leasing Costs/TI Costs
Account” has the meaning set forth in Section 2.13(a). 
  

 17 

 “Operating Budget” means, with respect to any Fiscal Year, the
operating budget for the Mortgaged Property reflecting Borrower’s projections of Gross Revenues and Property Expenses for the Mortgaged Property for such Fiscal Year on an annual and monthly basis and submitted by Borrower to Agent in
accordance with the provisions of Section 5.1(r)(vi). 
 “Operating Expenses” means, for any
period of calculation, all expenditures incurred and required to be expensed under GAAP during such period in connection with the ownership, operation, maintenance, repair and/or leasing of the Mortgaged Property. Notwithstanding the foregoing,
Operating Expenses shall not include (a) Capital Improvement Costs, (b) any extraordinary items (unless Agent and Borrower approve of the inclusion of such items as Operating Expenses), (c) depreciation, amortization and other
non-cash charges or (d) any payments of principal or interest on the Indebtedness or otherwise payable to the holder of the Indebtedness. Operating Expenses shall be calculated on the accrual basis of accounting. 
 “Operating Revenues” means, for any period, all regular ongoing income during such period from the operation of the
Mortgaged Property that, in accordance with GAAP, is included in annual financial statements as operating income. Notwithstanding the foregoing, Operating Revenues shall not include (a) any Loss Proceeds (other than business interruption
proceeds or Condemnation Proceeds in connection with a temporary Taking and, in either case, only to the extent allocable to such period or other applicable reporting period), (b) any proceeds resulting from the sale, exchange, transfer,
financing or refinancing of the Mortgaged Property, (c) any Rent attributable to a Lease either more than one month prior to the date on which the actual payment of Rent is required to be made thereunder, (d) any interest income from any
source, or (e) any other extraordinary items as reasonably determined by Agent. Operating Revenues shall be calculated on the accrual basis of accounting. 
 “Organizational Agreements” means the Certificate of Formation of Borrower, dated as of April 12, 2004, and the Amended and Restated Limited Liability Company Agreement of
Borrower, dated as of July 17, 2006, in each case, as amended or restated from time to time. 
 “Original
Maturity Date” means July 17, 2008. 
 “Origination Fee” means a fee in the amount of
$2,100,000 (representing 0.50% of the Loan Amount) payable to Agent on the Closing Date. 
 “Other
Borrowings” means, with respect to Borrower, without duplication (but not including the Indebtedness or any interest rate protection agreement entered into pursuant hereto) (i) all indebtedness of Borrower for borrowed money,
(ii) all indebtedness of Borrower evidenced by a note, bond, debenture or similar instrument, (iii) the face amount of all letters of credit issued for the account of Borrower and, without duplication, all unreimbursed amounts drawn
thereunder, and obligations evidenced by bankers’ acceptances, (iv) all indebtedness of Borrower secured by a Lien on any property owned by Borrower (whether or not such indebtedness has been assumed), (v) all Contingent Obligations
of Borrower, (vi) liabilities and obligations for the payment of money relating to a capitalized lease obligation or sale/leaseback obligation, (vii) liabilities and obligations representing the balance deferred and unpaid of the

  

 18 

 purchase price of any property or services, except those incurred in the ordinary course of Borrower’s
business that would constitute ordinarily a trade payable to trade creditors, and (viii) all payment obligations of Borrower under any interest rate protection agreement (including, without limitation, any interest rate swaps, caps, floors,
collars or similar agreements) and similar agreements. 
 “Other Property Expenses Account” has the
meaning provided in Section 2.13(b). 
 “Parking Collection Account” has the meaning set
forth in Section 2.12(a). 
 “Payment Date” has the meaning provided in
Section 2.5(a). 
 “Payment Date Statement” has the meaning provided in
Section 2.12(d). 
 “Payment Intangibles” means all of Borrower’s right, title and
interest, whether now owned or hereafter acquired, in, to and under all “payment intangibles” as defined in the UCC. 
 “PBGC” means the Pension Benefit Guaranty Corporation established under ERISA, or any successor thereto. 
 “Permits” means all licenses, permits, variances and certificates required by Legal Requirements to be obtained by Borrower and used in connection with the ownership, operation,
use or occupancy of the Mortgaged Property (including, without limitation, business licenses, state health department licenses, licenses to conduct business and all such other permits, licenses and rights, obtained from any Governmental Authority or
private Person concerning ownership, operation, use or occupancy of the Mortgaged Property). 
 “Permitted
Encumbrances” means, with respect to the Mortgaged Property, collectively, (i) the Lien created by the Mortgage, or any other Loan Documents of record, (ii) all Liens and other matters disclosed on the Title Insurance Policy
concerning the Mortgaged Property, (iii) Liens, if any, for Impositions imposed by any Governmental Authority not yet delinquent or being contested in good faith and by appropriate proceedings in accordance with the Mortgage,
(iv) mechanic’s or materialmen’s Liens, if any, being contested in good faith and by appropriate proceedings in accordance with the Mortgage, provided that no foreclosure has been commenced by the lien claimant, (v) rights of
existing and future tenants and residents as tenants only pursuant to Leases, and (vi) Liens for public utilities, which Liens and encumbrances referred to in clauses (i)-(vi) above do not materially and adversely affect (1) the
ability of Borrower to pay in full the Principal Indebtedness and interest thereon in a timely manner or (2) the use of the Mortgaged Property for the use currently being made thereof, the operation of the Mortgaged Property as currently being
operated or the value of the Mortgaged Property. 
 “Permitted Intercreditor Transfer” means
(x) the encumbrance, pledging, and hypothecation of and granting of a security interest in the ownership interests (including, but not limited to, equity, voting and/or beneficial ownership interests) in Borrower to Senior Mezzanine Lender in
connection with the Senior Mezzanine Loan, or in Senior Mezzanine Borrower to

  

 19 

 
Junior Mezzanine Lender in connection with the Junior Mezzanine Loan, or (y) any conveyance, assignment, sale or other disposition (directly or indirectly) of such ownership interests in
Borrower or Senior Mezzanine Borrower effectuated in connection with a foreclosure on such pledge and hypothecation referred to in clause (x) (or sale in lieu thereof) or other exercise of remedies by Senior Mezzanine Lender or Junior Mezzanine
Lender carried out pursuant to and in accordance with the Intercreditor Agreement and any subsequent conveyance, assignment, sale or other disposition (directly or indirectly) of such ownership interests in Borrower or Senior Mezzanine Borrower
which conforms to the requirements of the Intercreditor Agreement. 
 “Permitted Investments” shall mean
to the extent available from Agent or Agent’s servicer for deposits in the Collection Account or Reserve Account, any one or more of the following obligations or securities acquired at a purchase price of not greater than par, including those
issued by a servicer of the Loan, the trustee under any securitization or any of their respective Affiliates, payable on demand or having a maturity date not later than the Business Day immediately prior to the date on which the funds used to
acquire such investment are required to be used under this Agreement and meeting one of the appropriate standards set forth below: 
 (a) obligations of, or obligations fully guaranteed as to payment of principal and interest by, the United States or any agency or instrumentality thereof provided such obligations are backed by the full faith and credit of the United
States of America including, without limitation, obligations of: the U.S. Treasury (all direct or fully guaranteed obligations), the Farmers Home Administration (certificates of beneficial ownership), the General Services Administration
(participation certificates), the U.S. Maritime Administration (guaranteed Title XI financing), the Small Business Administration (guaranteed participation certificates and guaranteed pool certificates), the U.S. Department of Housing and Urban
Development (local authority bonds) and the Washington Metropolitan Area Transit Authority (guaranteed transit bonds); provided, however, that the investments described in this clause must (i) have a predetermined fixed dollar of
principal due at maturity that cannot vary or change, (ii) be rated “AAA” or the equivalent by each of the Rating Agencies, (iii) if rated by S&P, must not have an “r” highlighter affixed to their
rating, (iv) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (v) such investments must
not be subject to liquidation prior to their maturity; 
 (b) Federal Housing Administration debentures; 
 (c) obligations of the following United States government sponsored agencies: Federal Home Loan Mortgage Corp. (debt obligations), the
Farm Credit System (consolidated systemwide bonds and notes), the Federal Home Loan Banks (consolidated debt obligations), the Federal National Mortgage Association (debt obligations), the Financing Corp. (debt obligations), and the Resolution
Funding Corp. (debt obligations); provided, however, that the investments described in this clause must (i) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (ii) if rated by S&P,
must not have an “r” highlighter affixed to their rating, (iii) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move
proportionately with that index, and (iv) such investments must not be subject to liquidation prior to their maturity; 
  

 20 

 (d) federal funds, unsecured certificates of deposit, time deposits, bankers’
acceptances and repurchase agreements with maturities of not more than 365 days of any bank, the short term obligations of which at all times are rated in the highest short term rating category by each Rating Agency (or, if not rated by all Rating
Agencies, rated by at least one Rating Agency in the highest short term rating category and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade,
qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the Securities); provided, however, that the investments described in this clause must (i) have a predetermined fixed dollar of principal
due at maturity that cannot vary or change, (ii) if rated by S&P, must not have an “r” highlighter affixed to their rating, (iii) if such investments have a variable rate of interest, such interest rate must be tied to
a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (iv) such investments must not be subject to liquidation prior to their maturity; 
 (e) fully Federal Deposit Insurance Corporation-insured demand and time deposits in, or certificates of deposit of, or bankers’
acceptances with maturities of not more than 365 days and issued by, any bank or trust company, savings and loan association or savings bank, the short term obligations of which at all times are rated in the highest short term rating category by
each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency in the highest short term rating category and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not,
in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the Securities); provided, however, that the investments described in this clause must (i) have a
predetermined fixed dollar of principal due at maturity that cannot vary or change, (ii) if rated by S&P, must not have an “r” highlighter affixed to their rating, (iii) if such investments have a variable rate of
interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (iv) such investments must not be subject to liquidation prior to their maturity;

 (f) debt obligations with maturities of not more than 365 days and at all times rated by each Rating Agency (or, if not
rated by all Rating Agencies, rated by at least one Rating Agency and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification or withdrawal of
the initial, or, if higher, then current ratings assigned to the Securities) in its highest long-term unsecured rating category; provided, however, that the investments described in this clause must (i) have a predetermined fixed
dollar of principal due at maturity that cannot vary or change, (ii) if rated by S&P, must not have an “r” highlighter affixed to their rating, (iii) if such investments have a variable rate of interest, such interest
rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (iv) such investments must not be subject to liquidation prior to their maturity; 
  

 21 

 (g) commercial paper (including both non-interest-bearing discount obligations and
interest-bearing obligations payable on demand or on a specified date not more than one year after the date of issuance thereof) with maturities of not more than 365 days and that at all times is rated by each Rating Agency (or, if not rated by all
Rating Agencies, rated by at least one Rating Agency and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the initial,
or, if higher, then current ratings assigned to the Securities) in its highest short-term unsecured debt rating; provided, however, that the investments described in this clause must (i) have a predetermined fixed dollar of
principal due at maturity that cannot vary or change, (ii) if rated by S&P, must not have an “r” highlighter affixed to their rating, (iii) if such investments have a variable rate of interest, such interest rate must
be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (iv) such investments must not be subject to liquidation prior to their maturity; 
 (h) units of taxable money market funds, with maturities of not more than 365 days and which funds are regulated investment companies,
seek to maintain a constant net asset value per share and invest solely in obligations backed by the full faith and credit of the United States, which funds have the highest rating available from each Rating Agency (or, if not rated by all Rating
Agencies, rated by at least one Rating Agency and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if
higher, then current ratings assigned to the Securities) for money market funds; and 
 (i) any other security, obligation
or investment which has been approved as a Permitted Investment in writing by (i) Agent and (ii) each Rating Agency, as evidenced by a written confirmation that the designation of such security, obligation or investment as a Permitted
Investment will not, in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the Securities by such Rating Agency; 
 provided, however, that no obligation or security shall be a Permitted Investment if (A) such obligation or security evidences a right to
receive only interest payments, (B) the right to receive principal and interest payments on such obligation or security are derived from an underlying investment that provides a yield to maturity in excess of one hundred twenty percent
(120%) of the yield to maturity at par of such underlying investment or (C) such obligation or security has a remaining term to maturity in excess of one (1) year. 
 “Permitted Transfer” means (a) any Permitted Intercreditor Transfer or (b) any conveyance, assignment or
sale or other disposition (and not a mortgaging, encumbrance, pledging, hypothecation, or granting of a security interest)(directly or indirectly) of the voting and beneficial ownership interests in Borrower following which (1) CALSTRS owns
(directly or indirectly) the Minimum CALSTRS Ownership Percentage or more of such voting and beneficial ownership interests in Borrower and (2) Thomas Properties Group, Inc. controls the operations and management of Borrower; provided,
that if any such Transfer referred to above which takes the form of a Transfer of the equity ownership interests in Borrower either (i) is to a

  

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transferee which (collectively amongst itself and its Affiliates that own such equity ownership interests) acquires (directly or indirectly) a greater than 49% ownership interest in Borrower, or
which acquires control over the operations and management of Borrower, or (ii) results in CALSTRS owning (directly or indirectly) less than 60% of the voting and beneficial ownership interests in Borrower, Senior Mezzanine Borrower or Junior
Mezzanine Borrower, then such Transfer shall not be permitted unless Borrower delivers to the Agent (1) a substantive non-consolidation opinion in form and substance acceptable to the Agent and the Rating Agencies and (2) if the Loan has
been included in a Secondary Market Transaction in which Securities are issued, a Rating Confirmation. Notwithstanding anything herein to the contrary, other than a Permitted Intercreditor Transfer, a Transfer of the direct equity ownership interest
of Senior Mezzanine Borrower in Borrower shall not be a Permitted Transfer, and a Transfer of the direct equity ownership interest of Junior Mezzanine Borrower in Senior Mezzanine Borrower shall not be a Permitted Transfer. 
 “Person” means any individual, corporation, limited liability company, partnership, joint venture, estate, trust,
unincorporated association, any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such capacity on behalf of any of the foregoing. 
 “Personality” means all right, title and interest of Borrower in and to all Equipment, Inventory, Accounts, General
Intangibles, Instruments, Investment Property, Receivables, Pledged Accounts, Deposit Accounts, Contracts and Intellectual Property and all other personal property as defined in the relevant UCC, now owned or hereafter acquired by Borrower and now
or hereafter affixed to, placed upon, used in connection with, arising from or otherwise related to the Mortgaged Property or which may be used in or relating to the planning, development, financing or operation of such Mortgaged Property,
including, without limitation, furniture, furnishings, equipment, machinery, money, insurance proceeds, accounts, contract rights, trademarks, goodwill, chattel paper, documents, trade names, licenses and/or franchise agreements, rights of Borrower
under leases of fixtures or other personal property or equipment, inventory, all refundable, returnable or reimbursable fees, deposits or other funds or evidences of credit or indebtedness deposited by or on behalf of Borrower with any governmental
authorities, boards, corporations, providers of utility services, public or private, including specifically, but without limitation, all refundable, returnable or reimbursable tap fees, utility deposits, commitment fees and development costs.

 “Plan” means an employee benefit or other plan, other than a Multiemployer Plan, that is covered by
Title IV of ERISA or Section 302 of ERISA or Section 412 of the Code, and (i) was established or maintained by Borrower or any ERISA Affiliate during the five year period ended prior to the date of this Agreement or to which Borrower
or any ERISA Affiliate makes, is obligated to make or has, within the five year period ended prior to the date of this Agreement, been required to make contributions or (ii) with respect to which Borrower could reasonably be expected to incur
liability. 
 “Pledged Accounts” means the Collection Account and the Reserve Account and any successor
accounts thereto. 
 “Policies” has the meaning provided in Section 5.1(x)(iii). 

 

 23 

 “Principal Indebtedness” means the principal amount of the Loan
outstanding as adjusted by each increase (including for advances made by Lenders to protect the Collateral), or decrease in such principal amount of the Loan outstanding, whether as a result of prepayment or otherwise, from time to time. 

“Proceeds” shall have the meaning given in the UCC and, in any event, shall include, without limitation, all of
Borrower’s right, title and interest in and to proceeds, product, offspring, rents, profits or receipts, in whatever form, arising from the Collateral. 
 “Prohibited Person” has the meaning provided in Section 4.1(v). 
 “Property Expenses” means, with respect to the Mortgaged Property, the following costs and expenses but only, in the case of costs and expenses in respect of goods and services, to
the extent that they (x) are paid to Persons who are generally in the business of providing such goods and services, (y) are customary for the types of goods or services provided in the geographical area in which such goods or services are
provided and (z) do not constitute Capital Improvement Costs: 
 (i) Impositions; 
 (ii) insurance premiums for policies of insurance required to be maintained by Borrower with respect to the Mortgaged Property pursuant to
this Agreement or the other Loan Documents; 
 (iii) the cost of all electricity, oil, gas, water, steam, heat, ventilation, air
conditioning and any other energy, utility or similar item and overtime services with respect to the Mortgaged Property; 
 (iv)
payments required under service contracts (including, without limitation, service contracts for heating, ventilation and air conditioning systems, elevators, landscape maintenance, pest extermination, security, furniture, trash removal, answering
service and credit checks); 
 (v) wages, benefits, payroll taxes, uniforms, the cost of cleaning supplies, insurance costs and
all related expenses for on-site maintenance personnel (including, without limitation, housekeeping employees, porters and general repair, maintenance and security employees), whether hired by Borrower, Manager, Collateral Agent or any other Person;

 (vi) costs required in connection with the enforcement of any Lease (including, without limitation, reasonable attorneys’
fees, charges for lock changes and storage and moving expenses for furniture, fixtures and equipment); 
 (vii) advertising and
rent-up expenses (including, without limitation, leasing services, tenant rent concessions, promotions for existing and prospective tenants, banners and signs); 
 (viii) out-of-pocket cleaning, maintenance and repair expenses; 
  

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 (ix) any expense the total cost of which is passed through to tenants pursuant to executed
Leases; 
 (x) legal, accounting, auditing and other professional fees and expenses incurred in connection with the ownership,
leasing and operation of the Mortgaged Property (including, without limitation, collection costs and expenses); 
 (xi) permits,
licenses and registration fees and costs; 
 (xii) any expense necessary in order to prevent a breach under a Lease; 

(xiii) any expense necessary in order to prevent or cure a violation of any Legal Requirement (including Environmental Law), regulation,
code or ordinance; 
 (xiv) costs and expenses of any appraisals, valuations, surveys, inspections, environmental assessments or
market studies; 
 (xv) costs and expenses of security and security systems provided to and/or installed and maintained with
respect to the Mortgaged Property; 
 (xvi) costs of title, UCC, litigation and other searches and costs of maintaining the Lien
of the Mortgage thereon and the security interest in any related Collateral; 
 (xvii) fees and expenses of property managers
contracted with by Borrower to perform management, administrative, payroll or other services in connection with the operation of the Mortgaged Property (including, without limitation, the fees and expenses owed to Manager under the Management
Agreement); 
 (xviii) any other costs and expenses contemplated by the Operating Budget and customarily incurred in connection
with operating properties similar in type and character to the Mortgaged Property; and 
 (xix) any other category of property
expense that is customary for a property of the type and size as the Mortgaged Property and is reasonably approved by Agent on behalf of the Lenders. 
 “Qualified Interest Rate Cap Provider” means an interest rate cap counterparty whose long-term debt obligations or counterparty rating are rated by the Rating Agencies not lower
than “A+” (or the equivalent). 
 “Quarterly Statement” has the meaning provided in
Section 2.12(e). 
 “Rating Agencies” means at least two of Fitch, Inc., Moody’s
Investors Service, Inc. and Standard & Poor’s Ratings Services (or, if a Secondary Market Transaction has occurred in which Securities have been issued, each of the foregoing that rated such Securities). 
 “Rating Confirmation” means the written confirmation of the Rating Agencies that a proposed action shall not, in and
of itself, result in the downgrading, withdrawal or qualification of the then-current ratings assigned to any of the Securities issued in connection with a Secondary Market Transaction. 
  

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 “Real Estate Taxes Escrow Account” has the meaning provided in
Section 2.13(b). 
 “Receivables” means all of Borrower’s right, title and interest,
whether now owned or hereafter acquired, in, to and under (i) any Accounts, Chattel Paper, Instruments, Payment Intangibles, Letter of Credit Rights, Documents, insurance policies, drafts, bills of exchange, trade acceptances, notes or other
indebtedness owing to Borrower from whatever source arising, (ii) to the extent not otherwise included above, (a) all income, Rents, issues, profits, revenues, deposits and other benefits from the Mortgaged Property and (b) all
receivables and other obligations now existing or hereafter arising, or created out of the sale, lease, sublease, license, concession or other grant of the right of the use and occupancy of property or rendering of services by Borrower or any
operator or manager of the Mortgaged Property or other commercial space located at the Mortgaged Property or acquired from others (including, without limiting the generality of the foregoing, from rental of space, halls, stores, and offices, and
deposits securing reservations of such space, exhibit or sales space of every kind, license, lease, sublease and concession fees and rentals, health club membership fees, food and beverage wholesale and retail sales of merchandise, service charges,
vending machine sales and proceeds, if any, from business interruption or other loss of income insurance, (iii) all of the books and records (whether in tangible, electronic or other form) now or hereafter maintained by or on behalf of
Mortgagor in connection with the operation of the Mortgaged Property or in connection with any of the foregoing and (iv) all Supporting Obligations and all liens and security interests securing any of the foregoing and all other rights,
privileges and remedies relating to any of the foregoing. 
 “Release” means any active or passive
release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration into the indoor or outdoor environment (including, without limitation, the movement of Hazardous Substances through ambient air,
soil, surface water, ground water, wetlands, land or subsurface strata). 
 “Remedial Work” has the
meaning set forth in Section 5.1(d)(i). 
 “Renovation” means the general upgrade of the
Mortgaged Property, the upgrades of the plaza level at the Mortgaged Property (including level A-lobby and level B-retail), and the conversion of plaza level C to parking. 
 “Rentable Square Footage” means 2,648,920 square feet (or such other amount of square feet as to which Borrower and
the Agent shall mutually agree). 
 “Rents” means all income, rents, issues, profits, revenues
(including all oil and gas or other mineral royalties and bonuses), deposits (other than utility and security deposits) and other benefits from the Mortgaged Property. 
 “Replacement Reserve Account” has the meaning set forth in Section 2.13(a). 
  

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 “Reserve Account” means the Replacement Reserve Account, the
On-going Leasing Costs/TI Costs Account, the Real Estate Taxes Escrow Account, the Insurance Escrow Account, the Other Property Expenses Account, the Interest Reserve Account and the Cash Flow Sweep Account, collectively, and any successor accounts
to any of the foregoing. 
 “Resizing Event” has the meaning set forth in Section 5.1(w).

 “Secondary Market Transaction” has the meaning set forth in Section 5.1(w). 

“Securities” means mortgage pass-through certificates or other securities issued in a Secondary Market
Transaction and evidencing a beneficial interest in or secured in whole or in part by the Loan in a rated or unrated public offering or private placement. 
 “Security Deposit Account” has the meaning set forth in Section 2.12(a)(i). 
 “Seismic Study” means a study of the degree of seismic activity in the area in which the Mortgaged Property is located (including the probable maximum loss in the event an
earthquake were to occur) prepared by an Engineer and delivered to Agent in connection with the Loan and any amendments or supplements thereto delivered to Agent. 
 “Senior Mezzanine Borrower” means 515/555 Flower Mezzanine Associates, LLC, a Delaware limited liability company, or its successor in interest. 
 “Senior Mezzanine Lender” means Citigroup Global Markets Realty Corp., a New York corporation, and its permitted
assigns. 
 “Senior Mezzanine Loan” means the loan made pursuant to the Senior Mezzanine Loan Agreement.

 “Senior Mezzanine Loan Account” means such account at such bank as Senior Mezzanine Lender shall
notify in writing to Borrower, Collateral Agent and the Agent. 
 “Senior Mezzanine Loan Agreement”
means the Loan Agreement, dated as of the date hereof, by and between Senior Mezzanine Borrower and Senior Mezzanine Lender. 
 “Senior Mezzanine Loan Market Constant” means, at any date of calculation, the higher of (a) the annual interest rate on the Senior Mezzanine Loan for the Interest Accrual Period in which such date occurs, and
(b) 8.0%. 
 “Senior Mezzanine Loan Principal Indebtedness” has the meaning given to the term
“Principal Indebtedness” in the Senior Mezzanine Loan Agreement. 
 “Senior Mezzanine Note”
means the Promissory Note, dated as of the date hereof, made by Senior Mezzanine Borrower to the order of Senior Mezzanine Lender, evidencing the Senior Mezzanine Loan. 
 “Single-Purpose Entity” means a Person, other than an individual, which (i) is formed or organized under the laws of a state of the United States or the District of Columbia

  

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solely for the purpose of acquiring and directly holding an ownership interest in the Mortgaged Property, (ii) does not engage in any business unrelated to the Mortgaged Property,
(iii) does not have any assets other than those related to its interest in the Mortgaged Property or any indebtedness other than as permitted by this Agreement, the Mortgage or the other Loan Documents, (iv) has its own separate books and
records and has its own accounts, in each case which are separate and apart from the books and records and accounts of any other Person, (v) is subject to all of the limitations on powers set forth in the Organizational Agreement of Borrower as
of the Closing Date, (vi) holds itself out as being a Person separate and apart from any other Person and (vii) has, or is controlled, directly or indirectly, by a Person that has, at least one independent director that is not an employee,
officer, director, or paid consultant of any Affiliate of such Person or of any principal or officer of such Person. 
 “Supporting Obligations” means all of Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under (i) all “supporting obligations” as defined in the UCC and
(ii) any other guarantee, letter of credit, secondary obligation, right or privilege that supports or pertains to any of the Mortgaged Property. 
 “Survey” means a certified ALTA/ACSM survey of the Mortgaged Property prepared by a registered Independent surveyor, containing the form of survey or certification provided to
Borrower by the Agent and in form and content satisfactory to the Agent and the company issuing the Title Insurance Policy for the Mortgaged Property. 
 “Taking” means a taking or voluntary conveyance during the term hereof of all or part of the Mortgaged Property, or any interest therein or right accruing thereto or use thereof,
as the result of, or in settlement of, any condemnation or other eminent domain proceeding by any Governmental Authority affecting the Mortgaged Property or any portion thereof whether or not the same shall have actually been commenced. 

“Terrorism Premium Cap” means, during any given calendar month, the product of $1,400,000, multiplied by a
fraction, the numerator of which is the Consumer Price Index for the immediately preceding calendar month, and the denominator of which is the Base CPI. 
 “TI Costs” means tenant improvement costs and allowances incurred by Borrower in connection with renewing existing Leases or executing new Leases for space located in the Mortgaged
Property. 
 “Title Insurance Policy” means a mortgagee’s title insurance policy or policies
(i) issued by one or more title companies reasonably satisfactory to Agent which policy or policies shall be in form ALTA 1992 (with waiver of arbitration provisions) (with co-insurance or reinsurance as Agent may require reasonably
satisfactory to Agent), naming Agent as the insured party for benefit of the Lenders, (ii) insuring the Mortgage as being a first and prior lien upon the Mortgaged Property, (iii) showing no encumbrances against the Mortgaged Property
(whether junior or superior to the Mortgage) which are not acceptable to Agent other than Permitted Encumbrances, (iv) in an amount acceptable to Agent (but not more than the Loan Amount), and (v) otherwise in form and content reasonably
acceptable to Agent. Such Title Insurance Policy shall include the following endorsements or affirmative coverages in form and 
  

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 substance reasonably acceptable to Agent, to the extent available in the jurisdiction in which the Land is
located: variable rate endorsement; survey endorsement; comprehensive endorsement; zoning (ALTA 3.1 with parking added) endorsement; first loss, last dollar and tie-in endorsement; access coverage; separate tax parcel coverage; contiguity (if
applicable) coverage; and such other endorsements as Agent shall reasonably require in order to provide insurance against specific risks identified by Agent in connection with the Mortgaged Property. 
 “TPG/CALSTRS” means TPG/CALSTRS, LLC, a Delaware limited liability company. 
 “Transaction” means the transactions contemplated by the Loan Documents. 
 “Transaction Costs” means all costs and expenses paid or payable by Borrower relating to the Transaction (including,
without limitation, appraisal fees, legal fees and accounting fees and the costs and expenses described in Section 8.23). 
 “Transfer” means the conveyance, assignment, sale, mortgaging, encumbrance (other than a Permitted Encumbrance), pledging, hypothecation, granting of a security interest in, granting of options with respect to, or
other disposition of (directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) all or any portion of any legal or beneficial interest (a) in all or any portion of
the Mortgaged Property; or (b) in the stock, partnership interests, membership interests or other ownership interests in Borrower, and shall also include, without limitation to the foregoing, the following: an installment sales agreement
wherein Borrower agrees to sell the Mortgaged Property or any part thereof or any interest therein for a price to be paid in installments; an agreement by Borrower leasing all or a substantial part of the Mortgaged Property to one or more Persons
pursuant to a single or related transactions, or a sale, assignment or other transfer of, or the grant of a security interest in, Borrower’s right, title and interest in and to any Leases or any Rent; and any instrument subjecting the Mortgaged
Property to a condominium regime or transferring ownership to a cooperative corporation. 
 “TRIA” means
the Terrorism Risk Insurance Act of 2002. 
 “Treasury Rate” means the yield on the U.S. Treasury issue
(primary issue) with a maturity date closest to, but not later than, the tenth anniversary of the date on which such rate is calculated with such yield being based on the bid price for such issue as reasonably determined by the Agent. 
 “UCC” means with respect to any Collateral, the Uniform Commercial Code as in effect from time to time in the State
of New York; provided, that if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection or priority of the security interest in any item or portion of the Collateral is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than the State of New York, “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or
effect of perfection or non-perfection or priority. Wherever this agreement refers to terms as defined in the UCC, if such term is defined in more than one Article of the UCC, the definition in Article 9 of the UCC shall control. 
  

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 “UCC Searches” has the meaning set forth in
Section 3.1(v) hereof. 
 “Use” means, with respect to any Hazardous Substance, the
generation, manufacture, processing, distribution, handling, use, treatment, recycling or storage of such Hazardous Substance or transportation of such Hazardous Substance in connection with or affecting Borrower or the Mortgaged Property.

 “Welfare Plan” means an employee welfare benefit plan as defined in Section 3(1) of ERISA
established or maintained by Borrower or any ERISA Affiliate or with respect to which Borrower or any ERISA Affiliate has an obligation to make contributions and covers any current or former employee of Borrower or any ERISA Affiliate. 

ARTICLE II. 
 GENERAL TERMS 
 Section 2.1. The Loan. 
 (a) Subject to the terms and conditions of this Agreement, the Lenders shall lend to Borrower on the Closing Date the Loan Amount. The proceeds of the Loan shall be used solely for the purposes identified
in Section 2.2 hereof. On the Closing Date, upon the satisfaction of the conditions set forth in Section 3.1, the Agent shall wire immediately available funds to an account designated by Borrower in an amount equal to
(x) the Loan Amount, less (y) the sum of (i) the Origination Fee, (ii) the deposits to the Interest Reserve Account, the Real Estate Taxes Escrow Account and the Insurance Escrow Account required to be funded from Loan proceeds
pursuant to Section 2.13, and (iii) the out-of-pocket expenses incurred by Agent in connection with the origination and funding of the Loan in excess of the Expense Deposit (including, but not limited to the reasonable fees and
expenses of Agent’s and Collateral Agent’s counsel). 
 (b) The Loan shall constitute one general obligation of
Borrower to Lenders and shall be secured by the security interest in and Liens granted upon all of the Collateral, and by all other security interests and Liens at any time or times hereafter granted by Borrower to Agent or to Collateral Agent on
behalf of Lenders as security for the Loan. 
 Section 2.2. Use of Proceeds. Proceeds of the Loan shall be used only for the
following purposes: (a) to refinance the Mortgaged Property, (b) to pay to Agent the Origination Fee, (c) to make the required deposits to the Interest Reserve Account, the Real Estate Taxes Escrow Account and the Insurance Escrow
Account, (d) to pay Transaction Costs (including the reasonable out of pocket expenses incurred by Lenders in connection with the origination and funding of the Loan) and (e) to pay to counsel to each of Collateral Agent and the Agent
their respective reasonable fees, expenses and disbursements. If any Loan proceeds remain after application thereof as set forth in the preceding sentence, such excess proceeds may be used for the general corporate purposes of Borrower (including an
equity cash out to the Borrower’s principals). 
 Section 2.3. Security for the Loan. The Note and Borrower’s obligations
hereunder and under all other Loan Documents shall be secured by (a) Liens upon the Mortgaged Property pursuant to the Mortgage, (b) the Contract Assignment, (c) the Manager’s Subordination, (d) the Assignment of Leases and
Rents, (e) the Collateral Assignment of Hedge, (f) the Note Pledge Agreement, and (g) all other security interests and Liens granted in this Agreement and in the other Loan Documents. 
  

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 Section 2.4. Borrower’s Note. Borrower’s obligation to pay the principal of and
interest on the Loan and all other amounts due under the Loan Documents shall be evidenced initially by the Note, duly executed and delivered by Borrower on the Closing Date. The Note shall be payable as to principal, interest and all other amounts
due under the Loan Documents, as specified in this Agreement, with a final maturity on the Maturity Date. The initial Lender shall have the right to have the Note subdivided, by exchange for promissory notes of lesser denominations in the form of
the initial Note, upon written request to Borrower and, in such event, Borrower shall promptly execute additional or replacement Notes. At no time shall the aggregate original principal amount of the Note (or of such replacement Notes) exceed the
Loan Amount. 
 Section 2.5. Principal and Interest; Exit Fee. 
 (a) Borrower shall pay to Agent interest on the Principal Indebtedness of the Loan from the Closing Date through the end of the Interest
Accrual Period following or during which the Loan is paid in full at the interest rate provided below in this Section 2.5. Interest on the Loan shall accrue on the Principal Indebtedness commencing on the Closing Date and shall be
payable in arrears on the eleventh (11th) day of the month following the month in which the Closing Date occurs and on the eleventh (11th) day of each and every month thereafter until such time as the Loan shall be repaid in full, unless,
in any such case, such day is not a Business Day, in which event such interest shall be payable on the first Business Day following such date (such date for any particular month, the “Payment Date”). The Agent and the
Collateral Agent shall calculate LIBOR on each Interest Determination Date for the related Interest Accrual Period and promptly communicate to Borrower such rate for such period. The entire outstanding Principal Indebtedness of the Loan and the
Note, together with all accrued but unpaid interest thereon and all other amounts due under the Loan Documents (including, without limitation, the Exit Fee), shall be due and payable by Borrower to the Lenders on the Maturity Date. In addition, in
the event that the Maturity Date occurs on a day other than a Payment Date, then on the Maturity Date, Borrower shall be required to pay to Lenders the amount of interest that would have accrued on the Principal Indebtedness from the day after the
Maturity Date through and including the last day of the Interest Accrual Period in which the Maturity Date occurred, as if the Principal Indebtedness was not repaid on the Maturity Date. Interest shall be computed on the basis of a 360 day year and
the actual number of days elapsed. 
 (b) For the initial Interest Accrual Period, the Principal Indebtedness shall bear
interest at a rate per annum equal to 6.71875%. For each Interest Accrual Period thereafter, the Principal Indebtedness shall bear interest at a rate per annum equal to the sum of (x) LIBOR determined as of the Interest Determination Date for
such Interest Accrual Period plus (y) 1.35%. 
 (c) Borrower shall make principal payments on the Loan on each Payment Date
in an amount equal to the amount, if any, required to be paid pursuant to clause fourth of Section 2.12(b). 
  

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 (d) While an Event of Default has occurred and is continuing, Borrower shall pay to Agent
interest at the Default Rate on any amount owing to the Lenders not paid when due until such amount is paid in full. 
 (e) On
the Payment Date on which the Borrower pays the outstanding Principal Indebtedness in whole, the Borrower shall pay to the Lender the Exit Fee. 
 Section 2.6. Voluntary Prepayment. 
 (a) Borrower may not voluntarily prepay the Loan on or before
July 17, 2007. Thereafter, Borrower may voluntarily prepay the Loan in whole or in part on any Payment Date; provided, however, that, any such prepayment shall be accompanied by an amount representing all accrued interest on the
portion of the Loan being prepaid and other amounts then due under the Loan Documents (including, without limitation, the Exit Fee); and provided further that any such prepayment shall be paid concurrently with a prepayment by Senior Mezzanine
Borrower in reduction of the Senior Mezzanine Loan in a pro rata amount based upon the face amounts of the Note and the Senior Mezzanine Note. 
 (b) In the event of any such voluntary prepayment, Borrower shall give Agent written notice (or telephonic notice promptly confirmed in writing) of its intent to prepay, which notice shall be given at
least thirty (30) days’ prior to the date upon which prepayment is to be made and shall specify the Payment Date on which such prepayment is to be made and the amount of such prepayment (which shall not be less than $1,000,000). If any
such notice is given, the amount specified in such notice shall be due and payable on the Payment Date specified therein (unless such notice is revoked by Borrower prior to the date specified therein in which event Borrower shall immediately
reimburse Agent for any out-of-pocket costs incurred in connection with the giving of such notice and its revocation). 
 Section 2.7.
Mandatory Prepayment; Capital Events; Certain Transfers. 
 (a) Borrower shall not effect a Capital Event with respect to
the Mortgaged Property on or before July 17, 2007. Thereafter, Borrower may effect a Capital Event with respect to the Mortgaged Property on any Business Day on the condition that the Capital Event Proceeds, or such portion thereof required to
fully repay the Indebtedness (and, if necessary, any contributions from the principals of Borrower necessary to make the payments required hereunder), are deposited in the Collection Account and applied on the date of deposit in the Collection
Account to repay the Indebtedness in full (including (1) all accrued interest on the Principal Indebtedness through the end of the Interest Accrual Period during which such deposit occurs, (2) the Exit Fee and (3) other amounts then
due under the Loan Documents). Notwithstanding, the foregoing, Borrower may effect a Transfer (other than a Capital Event of a Mortgaged Property as provided in this Section 2.7(a) or a Permitted Transfer), provided (1) if the Loan
has not been included in a Secondary Market Transaction in which Securities are issued, Borrower obtains the prior written consent of the Agent or (2) if the Loan has been included in a Secondary Market Transaction in which Securities were
issued, Borrower shall have delivered to the Agent a Rating Confirmation and (3) Borrower pays all reasonable out-of-pocket expenses incurred by the Agent in connection with the transaction. 
  

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 (b) Except as otherwise provided in Section 2.12(f) in the event Loss Proceeds
are required to be made available for restoration pursuant to Section 5.1(x) of this Agreement and excluding Loss Proceeds which Borrower is obligated to turn over to tenants or other third persons pursuant to applicable law, in the
event of a casualty or a Taking of the Mortgaged Property, in whole or in part, Borrower shall cause all such Loss Proceeds otherwise payable with respect to the Mortgaged Property to be deposited directly into the Collection Account in accordance
with Section 2.12(a)(iii) and shall on the Payment Date occurring immediately following the receipt of such Loss Proceeds, apply such portion of Loss Proceeds solely to make the payments required pursuant to clause fourth of
Section 2.12(b) of this Agreement. 
 (c) Upon payment or prepayment of the Loan in full, Borrower shall pay to the
Lenders, in addition to the amounts specified in Section 2.6, Section 2.7 and Section 2.12, as applicable, all other amounts then due and payable to the Lenders pursuant to the Loan Documents. 
 Section 2.8. Application of Payments After Event of Default. All proceeds relating to any repayments of the Loan after the Collateral Agent
shall have received written notice of the occurrence of an Event of Default shall be applied by Agent, in Agent’s sole discretion, to amounts then outstanding under this Agreement (including, without limitation, any unpaid fees of the
Collateral Agent payable pursuant to the Fee Letter and any reasonable out-of-pocket costs and expenses of Collateral Agent and the Lenders, in that order, reimbursable pursuant to the terms of this Agreement arising as a result of such repayment;
any accrued and unpaid interest then payable with respect to the Loan or the portion thereof being repaid; any accrued and unpaid Exit Fee in respect of any such Principal Indebtedness being repaid; the Principal Indebtedness or the portion thereof
being repaid; and any other sums then due and payable to or for the benefit of Agent pursuant to this Agreement or any other Loan Document(s)). 
 Section 2.9. Method and Place of Payment From the Collection Account to Agent. 
 (a) Except as otherwise
specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Agent not later than 2:00 p.m., New York City time, on the date when due and shall be made in lawful money of the United States of America
by wire transfer in federal or other immediately available funds to its account at J.P. Morgan Chase Bank, New York, New York (ABA No. 021-000-021, Account No. 066-612-187, Reference: City National Bank Plaza) and Agent shall disburse such
payments to the Person entitled thereto on the Business Day of receipt of such payments (or the next Business Day if the payments are received after 2:00 p.m., New York City time on such Business Day) to the account designated by such Person in
writing to Agent from time to time. Any funds received by Agent after such time shall, for all purposes hereof, be deemed to have been paid on the next succeeding Business Day. Agent shall notify Borrower in writing of any changes in the account to
which payments are to be made. All payments made by Borrower hereunder, or by Borrower under the other Loan Documents, shall be made irrespective of, and without any deduction for, any set-offs or counterclaims. 
 (b) Except to the extent otherwise provided herein, (i) each payment or prepayment of principal of the Loan by Borrower shall be made
to Agent for the account of the Lenders pro rata in accordance with the respective unpaid portion of the Loan held by such Lenders and (ii)

  

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each payment of interest on the Loan by Borrower shall be made to Agent for the account of the Lenders pro rata in accordance with the amounts of interest on the portion of the Loan held by such
Lenders then due and payable to the respective Lenders. 
 Section 2.10. Taxes. All payments made by Borrower under the Note and
this Agreement to or for the benefit of Lenders 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 (other than taxes imposed on the income of the Lenders). 
 Section 2.11. Release of Collateral. 
 (a) Notwithstanding any other
provision of this Agreement or any other Loan Document, upon the occurrence of a Capital Event with respect to the Mortgaged Property as described in Section 2.7(a) hereof, Agent, on behalf of the Lenders, shall, simultaneously with such
Capital Event, release of record the Lien of the Mortgage and UCC-1 financing statements and any other Liens in favor of the Lenders relating to the Mortgaged Property or the portion thereof affected by such Capital Event provided, however, that the
Agent shall not be required to release its Lien unless the Proceeds (or the requisite portion thereof) of such Capital Event are paid to Agent in full satisfaction of the Indebtedness as required hereunder. 
 (b) In the event Borrower satisfies the outstanding Indebtedness in full, Agent and, at the written direction of Agent, Collateral Agent
shall withdraw and hold uninvested for Borrower in an Eligible Account at LaSalle Bank National Association from the Business Day immediately preceding the date upon which the release of funds is to be made to Borrower and release on the date on
which the outstanding Indebtedness is repaid in full any and all amounts then on deposit in the Reserve Account and/or the Collection Account to Borrower. Upon repayment of the Loan and all other amounts due hereunder and under the Loan Documents in
full in accordance with the terms hereof and thereof, the Lenders shall, promptly after such payment, release or cause to be released all Liens with respect to all Collateral (including, without limitation, terminating the tenant direction letters
delivered pursuant to Section 2.12(a)) or, to the extent necessary to facilitate future savings of mortgage tax in states that impose mortgage taxes, assign such Liens to Borrower’s new lender(s), provided that any such assignments
shall be without recourse, representation, or warranty of any kind, except that Agent and each Lender shall represent and warrant (1) the then outstanding amount of the Principal Indebtedness and (2) that such Liens have not been
previously assigned by Agent or any Lender. 
 Section 2.12. Central Cash Management. 
 (a) Collection Account, Local Collection Account, Parking Collection Account and Security Deposit Account; Deposits to and Withdrawals
from Collection Account, Local Collection Account, Parking Collection Account and Security Deposit Account. 
 (i) On or
before the Closing Date, Borrower shall have established and shall maintain with a financial institution acceptable to the Agent in its sole reasonable discretion (a “Local Deposit Bank”), a local collection account for the Mortgaged
Property (a “Local

  

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 Collection Account”), a Parking Collection Account for the Mortgaged Property (a
“Parking Collection Account”), and a security deposit account for the Mortgaged Property (the “Security Deposit Account”). Each such Account shall be an Eligible Account with a separate and unique
identification number and entitled “Citigroup Global Markets Realty Corp., as agent for 515/555 Flower Associates, LLC.” On or before the Closing Date, Borrower shall have caused the Local Deposit Bank to deliver to Agent on behalf of the
Lenders the Local Deposit Bank Agreements in form and substance acceptable to Agent (A) acknowledging Agent’s security interest in and sole dominion and control over the Local Collection Account and the Parking Collection Account, and
(B) acknowledging Agent’s security interest in the Security Deposit Account and Borrower’s Operating Account, and right, upon the occurrence and during the continuance of an Event of Default, to assert sole dominion and control over
the Security Deposit Account and Borrower’s Operating Account. If any Lease requires that Borrower not commingle the security deposit given by the tenant thereunder with any other funds, then Borrower shall establish and maintain a separate
security deposit account for each such Lease in accordance with the foregoing account requirements, all of which security deposit accounts shall be referred to herein, collectively, as the “Security Deposit Account.” On or
before the Closing Date, Borrower shall establish and maintain with the Collateral Agent a collection account (the “Collection Account”), which shall be an Eligible Account with a separate and unique identification number and
entitled “Citigroup Global Markets Realty Corp. as Agent, as secured party from 515/555 Flower Associates, LLC pursuant to a Loan Agreement dated as of July 17, 2006 among 515/555 Flower Associates, LLC, Citigroup Global Markets Realty
Corp. as Agent and LaSalle Bank National Association as Collateral Agent.” On or before the Closing Date, Borrower shall have delivered to each tenant under a Lease an irrevocable direction letter in a form approved by Agent requiring the
tenant to pay all Rents and Money received from Accounts or under Leases and derived from the Mortgaged Property and Proceeds thereof owed to Borrower directly to the Local Collection Account. Borrower shall provide to Agent proof of such delivery.
In addition, Borrower shall deliver an irrevocable direction letter in such form to each tenant under a new Lease entered into after the date hereof prior to the commencement of such Lease. If a tenant under a Lease forwards such Rents, Money or
Proceeds to Borrower rather than directly to the Local Collection Account, Borrower shall (i) deliver an additional irrevocable direction letter to the tenant and make other commercially reasonable efforts to cause the tenant to forward such
Rents, Money or Proceeds directly to the Local Collateral Account and (ii) immediately deposit or cause the Manager to deposit in the Local Collection Account such Rents, Money or Proceeds. At all times during this Agreement, Borrower shall
deposit or cause Manager to deposit in the Security Deposit Account all security deposits received from tenants at the applicable Mortgaged Property, by no later than the Business Day following the collection and receipt thereof. At all times during
this Agreement, Borrower shall deposit or cause Manager or Borrower’s parking operator to deposit in the Parking Collection Account all Gross Revenues from the Mortgaged Property allocable to parking fees and expenses. The Local Deposit Bank
shall perform clearing house services with respect to the Local Collection Account and the Parking Collection Account. Subject to Section 2.12(a)(ii), Borrower shall sweep or cause to be swept on each Business Day during a calendar month
all Money on deposit in the Local Collection Account and the Parking Collection Account to the Collection Account. So long as no Event of Default shall have occurred and be continuing, Borrower and Manager shall be permitted on a monthly basis with
the prior written approval of the Agent to make withdrawals from the Security Deposit Account for the payment, application or return of security

  

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deposits in accordance with the Leases. Borrower shall not have any right to withdraw Money from the Local Collection Account, the Parking Collection Account, the Collection Account or the
Security Deposit Account (except for security deposits as described above), which shall be under the sole dominion and control and the “control” within the meaning of Sections 9-104 and 9-106 of the UCC, of the Agent. Any such Rents,
Money or Proceeds held by Borrower or the Manager prior to deposit into the Collection Account shall be held in trust for the benefit of the Agent and the Lenders. 
 (ii) In the event that Agent has notified the Collateral Agent and Borrower that an Event of Default has occurred and is continuing, 
 (A) all Rents and Money received from Accounts or under Leases and derived from the Mortgaged Property and all Proceeds thereof shall be
payable to Agent for the account of Lenders or as otherwise directed by Agent on behalf of Lenders (provided that such direction shall not result in the nonpayment of any outstanding fees payable to the Collateral Agent pursuant to the Fee Letter),

 (B) Agent on behalf of the Lenders shall make deposits, or cause deposits to be made, of such Rents, Money and Proceeds
directly to the Collection Account, and Borrower shall cooperate (and shall cause the Manager to cooperate) with Agent on behalf of the Lenders in the making of such deposits or causing such deposits to be made, 
 (C) Borrower shall not have any right to make or direct any withdrawals from the Collection Account or the Reserve Account without the prior
written consent of Agent on behalf of the Lenders, and 
 (D) proceeds on deposit in the Collection Account and the Reserve
Account may be applied by Collateral Agent on behalf of the Lenders for the payment of the Indebtedness pursuant to Section 2.8 of this Agreement. 
 (iii) So long as no Event of Default shall have occurred and be continuing, Borrower shall deposit in the Collection Account: (a) as and when required by Section 2.7(b), Loss Proceeds
received by Borrower and (b) simultaneously with the consummation of any Capital Event, the Capital Event Proceeds resulting from such Capital Event and any contributions from Borrower’s principals required by Section 2.7(a) in
connection with such Capital Event. 
 (b) Distribution of Cash. So long as the Collateral Agent shall not have received
written notice from Agent on behalf of the Lenders that an Event of Default has occurred and is continuing, the Collateral Agent shall hold uninvested for Borrower or the Lenders in an Eligible Account at LaSalle Bank National Association, the funds
on deposit in the Collection Account as of the close of business on the Business Day immediately preceding each Payment Date to such Payment Date and shall apply such funds on such Payment Date, in each case to the extent of the amounts set forth in
the related Payment Date Statement delivered by the Collateral Agent, as follows: 
 first, to the Real Estate Taxes
Escrow Account and the Insurance Escrow Account, in that order, in the respective amounts required to be deposited therein as described in Section 2.13(b); 
  

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 second, to Agent for the payment of the interest then due and payable on the Note
with respect to the related Interest Accrual Period; 
 third, to Agent for the payment of the Exit Fee and the Extension
Fee, if any, then due and payable; 
 fourth, to Agent for the payment of the Principal Indebtedness in an amount equal to
any amount to which the Agent is then entitled pursuant to Sections 2.7(a) or 2.7(b) of this Agreement; 
 fifth, to the payment to the Collateral Agent of its fees then due and payable pursuant to the Fee Letter; 
 sixth, to the Other Property Expenses Account in the amount, if any, required (or permitted) to be deposited therein as described in Section 2.13(b); 
 seventh, to the Replacement Reserve Account and the On-going Leasing Costs/TI Costs Account in that order, in the respective amounts,
if any, required to be deposited therein as described in Section 2.13(a); 
 eighth, to the payment of any
outstanding indemnification payment to which an Indemnified Party is then entitled pursuant to Sections 5.1(i) and 5.1(j), and any other amounts then due and payable to Agent pursuant to this Agreement and the other Loan Documents
which are not paid from applications under clauses first through seventh above; 
 ninth, to the Senior
Mezzanine Loan Account, in the amount of interest payments and any other amounts required to be paid pursuant to the Senior Mezzanine Loan Agreement (including, without limitation, the fees incurred by Senior Mezzanine Lender in connection with
amendments or endorsements to Senior Mezzanine Lender’s Eagle 9 insurance policy) on such Payment Date; 
 tenth, to
the Junior Mezzanine Loan Account, in the amount of interest payments and any other amounts required to be paid pursuant to the Junior Mezzanine Loan Agreement (including, without limitation, the fees and expenses of the Construction Consultant, and
fees incurred by Junior Mezzanine Lender in connection with amendments or endorsements to Junior Mezzanine Lender’s Eagle 9 insurance policy) on such Payment Date; 
 eleventh, if the Agent shall have notified Borrower in writing that the Debt Service Coverage Test has not been satisfied, then all remaining available funds, if any, shall be distributed to the
Cash Flow Sweep Account until the date that the Debt Service Coverage Test has been satisfied; and 
  

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 twelfth, if all remaining available funds are not on such Payment Date being
distributed to the Cash Flow Sweep Account pursuant to clause eleventh above, then all remaining available funds, if any, shall be distributed to Borrower. 
 Any payment made to Senior Mezzanine Lender or to the Senior Mezzanine Loan Account above shall be deemed to be a distribution in such amount by Borrower to Senior Mezzanine Borrower. Any payment made to
Junior Mezzanine Lender or to the Junior Mezzanine Loan Account above shall be deemed to be a distribution in such amount by Borrower to Senior Mezzanine Borrower and a distribution in such amount by Senior Mezzanine Borrower to Junior Mezzanine
Borrower. 
 (c) Permitted Investments. Borrower shall, or shall direct Collateral Agent in writing to, invest and
reinvest any balance in the Collection Account, from time to time in Permitted Investments; provided, however, that 
 (i) maturity of the Permitted Investments on deposit therein shall be at the discretion of Borrower, but in any event no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn therefrom
pursuant to Section 2.12(a) or 2.12(b) of this Agreement, 
 (ii) Collateral Agent has received written notice
from Agent that an Event of Default has occurred and is continuing Borrower shall not have any right to direct investment of the balance in the Collection Account, 
 (iii) such Permitted Investments shall be held in the name of Collateral Agent and shall be credited to the Collection Account, and 
 (iv) no written investment direction is provided to Collateral Agent by Borrower, Collateral Agent shall invest any balance in the Collection
Account in an investment of the type described in clause (vii) of the definition of Permitted Investments. 
 Agent, the Lenders and
Collateral Agent shall have no liability for any loss in investments of funds in the Collection Account that are invested in Permitted Investments (unless, in the case of Collateral Agent, invested contrary to Borrower’s or Agent’s written
direction) and no such loss shall affect Borrower’s obligation to fund, or liability for funding, the Collection Account. All interest paid or other earnings on the Permitted Investments of funds deposited into the Collection Account made
hereunder shall be deposited into the Collection Account. Borrower shall include all earnings on the Collection Account as income of Borrower for federal and applicable state tax purposes. 
 (d) Monthly and Payment Date Statements. With respect to each Collection Period, Collateral Agent shall prepare and deliver, or shall
cause to be prepared and delivered, to Agent a statement no later than ten (10) Business Days after the end of such Collection Period setting forth the aggregate deposits to and withdrawals from the Collection Account and each account of the
Reserve Account and the opening and closing balances in such accounts (collectively, the “Monthly Statement”). With respect to each Payment Date and the related Collection Period and Interest Accrual Period, Collateral Agent
shall prepare and deliver, or shall cause to be prepared and delivered to Borrower and Agent, a statement (each, a “Payment Date Statement”) no later than the Business Day prior to such Payment Date with respect
to each of the items below, setting forth the following: 
  

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 (i) the aggregate deposits to the Collection Account during the related Collection Period
for each type of deposit under this Agreement and the opening and closing balances in the Collection Account; 
 (ii) the amount
of interest then due and payable on the Note with respect to the Interest Accrual Period (including the applicable number of days and interest rate which were applied in determining such amount); 
 (iii) the amount of the Exit Fee and Extension Fee, if any, then due and payable; 
 (iv) the amount of the fees of the Collateral Agent and any expenses payable to the Collateral Agent and any outstanding indemnification
payment to which an Indemnified Party is then entitled under this Agreement, in each case, at a reasonable and market rate; 
 (v) the following information with respect to the Principal Indebtedness in a format reasonably acceptable to Agent: (1) the Principal Indebtedness as of the preceding Payment Date, (2) any principal payable to the Lenders
pursuant to Sections 2.6, 2.7 or 2.12 on such Payment Date, and (3) the Principal Indebtedness on the current Payment Date (taking into account such payments); and 
 (vi) the amount withdrawn from or remitted to each account of the Reserve Account in accordance with Sections 2.12 and
2.13 and the amount remitted to Borrower. 
 (e) Quarterly Statements. No later than thirty (30) days
following the end of each of the months of December, March, June, and September, beginning with the month ending at June 30, 2006, Borrower shall prepare and deliver to the Agent and the Collateral Agent a statement (each a
“Quarterly Statement”) in hard copy and on diskette and/or a copy through electronic mail, in form and substance reasonably satisfactory to Agent, setting forth with respect to the Mortgaged Property, 
 (i) a cash flow report detailing the Operating Revenues and the Operating Expenses, in each case on a trailing twelve month basis,

 (ii) a rent roll dated as of the last day of such quarter identifying each of the Leases by the term, suite number, rentable
square feet, rental and other charges required to be paid, any rental concessions or base stops, any defaults thereunder and any other information reasonably required by Lender; 
 (iii) a management report (including leasing updates and leasing prospects and Renovation progress) and an actual vacancy level for the
Mortgaged Property (expressing the level as a percentage) for the most recent date available, 
 (iv) year-to-date operating
statements and capital expense reports prepared for each calendar month during each such quarter, each of which shall include an itemization of actual (not pro forma) operating expenses and capital expenditures during the applicable period; and

  

 39 

 (v) a comparison of the budgeted income and expenses with the actual income and expenses for
such month and year to date, together with a detailed explanation of any variances between budgeted and actual amounts that are in excess of the greater of: (1) $10,000, and (2) ten percent (10%) or more for each line item therein.

 (f) Loss Proceeds. In the event of a casualty or Taking with respect to the Mortgaged Property, unless pursuant to
Section 5.1(x) of this Agreement or applicable law, the Loss Proceeds are to be made available to Borrower for restoration or to the tenants, all of Borrower’s interest in Loss Proceeds shall be paid directly to the Collection
Account to satisfy the requirements of Section 2.7(b). If the Loss Proceeds are to be made available for restoration pursuant to this Agreement or to the tenants pursuant to applicable law, such Loss Proceeds shall be held by the
Collateral Agent in a segregated interest-bearing Eligible Account in the name of the Collateral Agent on behalf of the Lenders to be opened by the Collateral Agent within three (3) Business Days after the Collateral Agent receives written
notice of the necessity therefor from the Agent, to be withdrawn by the Collateral Agent and held uninvested in a LaSalle Bank National Association account from the Business Day immediately preceding the date upon which payment to Borrower or to the
tenants is to be made to such payment date for delivery to Borrower or to the tenants from time to time to pay restoration costs pursuant to a schedule reasonably acceptable to Agent and Borrower. Funds on deposit in any such account opened by the
Collateral Agent shall be invested in Permitted Investments in the same manner and subject to the same restrictions as set forth in Section 2.12(c) with respect to the Collection Account (except that the maturity shall be not later than
as necessary to satisfy the schedule referred to in the preceding sentence). If any Loss Proceeds are received by Borrower, such Loss Proceeds shall be received in trust for the Lenders, shall be segregated from other funds of Borrower, and shall be
forthwith paid to Collateral Agent to the extent necessary to comply with this Agreement. 
 (g) Collateral Agent’s
Reliance. Collateral Agent may rely and shall be protected in acting or refraining from acting upon any written notice, instruction or request furnished to it hereunder and reasonably believed by it to be genuine and to have been signed or
presented by the proper party or parties. Collateral Agent may rely on written notice from Agent as to the occurrence and continuance of an Event of Default, without further written notice by the Lenders to the contrary. 
 Section 2.13. Reserve Account. 
 (a) Replacement Reserve Account and On-going Leasing Costs/TI Costs Account. 
 (i) On or before the Closing Date, Borrower shall establish and maintain with the Collateral Agent two separate accounts for Capital Improvement Costs, replacement reserves, Leasing Commissions and TI Costs, each of which shall be an
Eligible Account and shall have the same title as the Collection Account, for the benefit of the Lenders until the Loan is paid in full. The two accounts shall be designated the Replacement Reserve Account (the “Replacement Reserve
Account”) and the On-going Leasing Costs/TI Costs Account (the “On-going

  

 40 

 
Leasing Costs/TI Costs Account”). On each Payment Date after the initial Payment Date as of which Borrower shall have satisfied the Debt Service Coverage Test, the Agent shall have
the right to instruct the Collateral Agent in writing to deposit from the Collection Account (or if the Agent has so instructed the Collateral Agent but the funds for such deposit are not available pursuant to Section 2.12(b), Borrower
shall make a deposit of Borrower’s funds sourced from equity capital contributions) in the Replacement Reserve Account, an amount acceptable to the Agent (which shall not exceed one-twelfth (1/12th) of the product of $0.25 and the Rentable Square Footage of the Mortgaged Property) and in the
On-Going Leasing Costs/TI Costs Account, an amount acceptable to the Agent (which shall not exceed one-twelfth (1/12
th) of the product of $1.50 and the Rentable Square Footage of the Mortgaged Property.) 
 (ii) Any and all Moneys remitted to the Replacement Reserve Account, together with any Permitted Investments in which such Moneys are or will be invested or reinvested during the term of this Agreement,
shall be held in the Replacement Reserve Account (A) to be withdrawn by Collateral Agent upon written request by Borrower made not more than once each month in an amount not less than $50,000 and held uninvested for Borrower or the Lenders in
an Eligible Account at LaSalle Bank National Association from the close of business on the Business Day immediately preceding the date upon which payment is to be made to Borrower to such date, and either applied to pay directly, or deposited into
Borrower’s Operating Account to pay or to reimburse Borrower for, replacement reserve costs reasonably determined by Borrower or (B) for purposes otherwise requested by Borrower and reasonably approved by the Agent in writing. 

(iii) Any and all Moneys remitted to the On-going Leasing Costs/TI Costs Account, together with any Permitted Investments in which such
Moneys are or will be invested or reinvested during the term of this Agreement, shall be held in the On-going Leasing Costs/TI Costs Account (A) to be withdrawn by Collateral Agent upon written request by Borrower made not more than once each
month in an amount not less than $50,000 and held uninvested for Borrower or the Lenders in an Eligible Account at LaSalle Bank National Association from the close of business on the Business Day immediately preceding the date upon which payment is
to be made to Borrower to such date, and either applied to pay directly, or deposited into Borrower’s Operating Account to pay or to reimburse Borrower for, Leasing Commissions and TI Costs incurred in connection with leasing activities
relating to the Mortgaged Property after the Closing Date specified by Borrower in a written request delivered to Collateral Agent and the Agent or (B) for purposes otherwise requested by Borrower and reasonably approved by the Agent in
writing. 
 (iv) Not less than three (3) Business Days prior to the date on which Borrower desires to withdraw funds on
deposit in the Replacement Reserve Account or On-going Leasing Costs/TI Costs Account, in whole or in part, Borrower shall provide the Agent with written notice (with a copy to Collateral Agent) of such request (including therein a statement of the
purpose for the withdrawal and in the case of a reimbursement of Borrower, evidence that the related costs have been paid). 
 (b) Real Estate Taxes Escrow Account, Insurance Escrow Account, Other Property Expenses Account and Borrower’s Operating Account. On or before the Closing Date, Borrower shall establish and maintain with the Collateral Agent
three separate accounts for Property

  

 41 

 
Expenses, each of which shall be an Eligible Account and shall have the same title as the Collection Account for the benefit of the Lenders until the Loan is paid in full. The three accounts
shall be designated the Real Estate Taxes Escrow Account (the “Real Estate Taxes Escrow Account”), the Insurance Escrow Account (the “Insurance Escrow Account”) and the Other Property Expenses Account
(the “Other Property Expenses Account”). On or before the Closing Date, Borrower shall establish and maintain the Borrower’s Operating Account with a separate and unique identification number and entitled in the same
name as the Collection Account. On the Closing Date, the initial Lender shall deposit out of the Loan proceeds $3,044,680 in the Real Estate Taxes Escrow Account and $2,302,574 in the Insurance Escrow Account. Collateral Agent shall deposit from the
Collection Account (or, if the funds for such deposit are not available pursuant to Section 2.12(b), Borrower shall make a deposit of Borrower’s funds sourced from equity capital contributions), 
 (1) with respect to each Payment Date, an amount equal to the Impositions portion of Monthly Property Expenses in the Real Estate Taxes
Escrow Account, 
 (2) with respect to each Payment Date, an amount equal to the portion of Monthly Property Expenses equal to
insurance premiums for policies of insurance required to be maintained by Borrower with respect to the Mortgaged Property pursuant to this Agreement or the other Loan Documents in the Insurance Escrow Account and 
 (3) with respect to any Payment Date as of which remaining available funds are not being remitted to Borrower pursuant to
clausetwelfth of Section 2.12(b), the remainder of the Monthly Property Expenses in the Other Property Expenses Account. 
 Any and all Moneys remitted to the Real Estate Taxes Escrow Account, Insurance Escrow Account or Other Property Expenses Account together with any Permitted Investments in which such Moneys are or will be invested or reinvested during the
terms of this Agreement, shall be held in the Real Estate Taxes Escrow Account, Insurance Escrow Account or Other Property Expenses Account, to be withdrawn and disbursed as provided below. 
 On each Payment Date on which funds are deposited in the Other Property Expenses Account as described above, Collateral Agent shall disburse into
Borrower’s Operating Account funds from the Other Property Expenses Account in an amount equal to the Property Expenses set forth in the Operating Budget that are currently due to be paid and not previously paid or reimbursed; provided that
such disbursement shall be conditioned upon the receipt by Collateral Agent, prior to such Payment Date, of an Officer’s Certificate certifying that the most recent disbursement from the Other Property Expenses Account to Borrower’s
Operating Account has been used by Borrower in accordance with this Agreement and the other Loan Documents, together with a copy of Borrower’s check register supporting such Officer’s Certificate. If there are any Property Expenses that
are not set forth on the Operating Budget but that have been approved by the Agent in writing, such approval not to be unreasonably withheld, Borrower may, prior to the Payment Date, make a written request to Collateral Agent and Agent to increase
the disbursement being made from the Other Property Expenses Account on the ensuing Payment Date to cover such unbudgeted items. In the event Borrower is entitled to the release of funds from the Other Property Expenses Account following the
delivery of written confirmation from the Agent that the Debt Service Coverage Test has been satisfied, Lenders and the Collateral

  

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Agent (upon receipt of written notice thereof from the Agent) shall release any and all amounts on deposit in the Other Property Expenses Account to Borrower’s Operating Account on the
Business Day on which Borrower satisfies such test. 
 Funds from the Real Estate Taxes Escrow Account and Insurance Escrow Account shall be
withdrawn by the Collateral Agent upon written request of Borrower delivered to Agent and Collateral Agent. Such written request by Borrower shall include copies of bills or invoices for Impositions and insurance premiums toward which such funds are
to be applied. The funds shall be withdrawn and held uninvested for Borrower or the Lenders in an Eligible Account at LaSalle Bank National Association from the close of business on the Business Day immediately preceding the date upon which direct
payment is to be made to such date, and applied directly by Collateral Agent to pay (x) any Impositions (in the case of the Real Estate Taxes Escrow Account), or (y) any insurance premiums for policies of insurance required to be
maintained by Borrower with respect to the Mortgaged Property pursuant to this Agreement or the other Loan Documents (in the case of the Insurance Escrow Account). 
 (c) Cash Flow Sweep Account. On or before the Closing Date, Borrower shall establish and maintain with the Collateral Agent an account designated the Cash Flow Sweep Account (the “Cash
Flow Sweep Account”) which shall be an Eligible Account and shall have the same title as the Collection Account for the benefit of the Lenders until the Loan is paid in full. On any Payment Date as of which the Debt Service Coverage
Test has not been satisfied, Agent shall deposit or cause to be deposited in the Cash Flow Sweep Account the remaining available funds pursuant to clause eleventh of Section 2.12(b). Any and all Moneys remitted to the Cash Flow
Sweep Account, together with any Permitted Investments in which such Moneys are or will be invested or reinvested during the term of this Agreement, shall be held in the Cash Flow Sweep Account, to be withdrawn by Collateral Agent and held
uninvested for Borrower or the Lenders in an Eligible Account at LaSalle Bank National Association from the Business Day immediately preceding the date upon which payment is to be made to such date, and applied to pay interest on the Loan, the
Senior Mezzanine Loan or the Junior Mezzanine Loan then due and payable in the event sufficient funds are not available in the Collection Account and the Interest Reserve Account to make such payment. Upon Agent’s receipt of evidence
satisfactory to Agent that the Debt Service Coverage Test has been satisfied, and provided that no Default or Event of Default has occurred and is continuing, Agent shall disburse all funds held in the Cash Flow Sweep Account to Borrower’s
Operating Account. 
 (d) Interest Reserve Account. On or before the Closing Date, Borrower shall establish and maintain
with the Collateral Agent an account designated the Interest Reserve Account (the “Interest Reserve Account”), which shall be an Eligible Account and shall have the same title as the Collection Account for the benefit of the
Lenders until the Loan is paid in full. On the Closing Date, the initial Lender shall deposit out of the Loan proceeds $30,000,000 in the Interest Reserve Account. Any and all Moneys remitted to the Interest Reserve Account, together with any
Permitted Investments in which such Moneys are or will be invested or reinvested during the term of this Agreement, shall be held in the Interest Reserve Account, to be withdrawn by Collateral Agent upon written request of Borrower, Senior Mezzanine
Borrower or Junior Mezzanine Borrower, as applicable, and held uninvested for Borrower or the Lenders in an Eligible Account at LaSalle Bank National Association from the close of business on the Business Day immediately preceding the date upon
which payment is to be made to such date,

  

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and applied on a Payment Date to pay interest then due and payable on the Loan in the event sufficient funds are not available in the Collection Account on such Payment Date to make such payment,
or to pay interest then due and payable on the Senior Mezzanine Loan in the event sufficient funds are not available in the Senior Mezzanine Loan Account on such Payment Date to make such payment, or to pay interest then due and payable on the
Junior Mezzanine Loan in the event sufficient funds are not available in the Junior Mezzanine Loan Account on such Payment Date to make such payment. 
 (e) Investment of Funds. All or a portion of any Moneys in the Reserve Account shall be invested and reinvested, so long as Collateral Agent has not received written notice from Agent that an Event
of Default has occurred and is continuing, by Collateral Agent in accordance with written instructions delivered by Borrower, or after Collateral Agent has received written notice from Agent that an Event of Default has occurred and is continuing,
by Agent, in one or more Permitted Investments. If no written investment direction is provided to Collateral Agent by Borrower, Collateral Agent shall invest such Moneys in an investment of the type described in clause (vii) of the definition
of Permitted Investments. Agent, the Lenders and Collateral Agent shall have no liability for any loss in investments of funds in the Reserve Account that are invested in Permitted Investments (unless, in the case of Collateral Agent, invested
contrary to Borrower’s or Agent’s written direction) and no such loss shall affect Borrower’s obligation to fund, or liability for funding, the Reserve Account. So long as an Event of Default has not occurred and is not continuing,
all such Permitted Investments shall be made in the name of Collateral Agent on behalf of the Lenders or as otherwise directed by Agent. Agent shall cause all income or other gain from investments of Money held in the Reserve Account to be deposited
in such respective account of the Reserve Account immediately upon receipt and any loss resulting from such investments shall be charged to such respective account of the Reserve Account. Unless and until title to the funds therein shall have vested
in any Person other than Borrower, Borrower shall include all such income or gain on any account of the Reserve Account as income of Borrower for federal and applicable state tax purposes. 
 (f) Event of Default. After Collateral Agent has received written notice from Agent that an Event of Default has occurred and is
continuing, Borrower shall not be permitted to make any withdrawal(s) from the Reserve Account and Collateral Agent at the written direction of Agent may liquidate any Permitted Investments of the amount on deposit in such account, withdraw and hold
the proceeds of such liquidation uninvested for Lenders in a LaSalle Bank National Association account from the Business Day immediately preceding the date such funds are to be used and use such amount on deposit in the Reserve Account on the
succeeding Business Day to make payments on account of the Loan in accordance with the priorities set forth in Section 2.8. 
 Section 2.14. Additional Provisions Relating to the Collection Account and the Reserve Account. 
 (a) The
Collateral Agent covenants and agrees that: (i) all securities or other property underlying any financial assets credited to any Pledged Account shall be registered in the name of the Collateral Agent, indorsed to the Collateral Agent or
indorsed in blank or credited to another securities account maintained in the name of the Collateral Agent and in no case will any financial asset credited to any Pledged Account be registered in the name of Borrower, payable

  

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to the order of Borrower or specially indorsed to Borrower except to the extent the foregoing have been specially indorsed to the Collateral Agent or in blank; and (ii) all Permitted
Investments and all other property delivered to the Collateral Agent pursuant to this Agreement will be promptly credited to one of the Pledged Accounts. 
 (b) The Collateral Agent hereby agrees that each item of property (whether investment property, financial asset, security, instrument, cash or otherwise) credited to any Pledged Account shall be treated
as a “financial asset” within the meaning of Section 8-102(a)(9) of the UCC. 
 (c) If at any time the Collateral
Agent shall receive from the Agent an entitlement order (i.e. an order directing transfer or redemption of any financial asset relating to a Pledged Account) or any instruction (within the meaning of Section 9-104 of the UCC) originated by the
Agent (i.e. an instruction directing the disposition of funds in a Pledged Account), the Collateral Agent shall comply with such entitlement order or instruction without further consent by Borrower or any other Person. 
 (d) Regardless of any provision in any other agreement, for purposes of the UCC, with respect to each Pledged Account, New York shall be
deemed to be the bank’s jurisdiction (within the meaning of Section 9-304 of the UCC) and the securities intermediary’s jurisdiction (within the meaning of Section 8-110 of the UCC). The Pledged Accounts shall be governed by the
laws of the State of New York. 
 (e) Except for the claims and interest of the Agent and of Borrower in the Pledged Accounts,
the Collateral Agent represents and warrants that it does not know of any Lien on or claim to, or interest in, any Pledged Account or in any “financial asset” (as defined in Section 8-102(a) of the UCC) credited thereto. If any Person
asserts any Lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against the Pledged Accounts or in any financial asset carried therein, the Collateral Agent will
promptly notify the Agent and Borrower thereof. 
 Section 2.15. Security Agreement. 
 (a) Pledge of Account. To secure the full and punctual payment and performance of all of the Indebtedness, Borrower hereby assigns,
conveys, pledges and transfers to the Agent on behalf of the Lenders as secured party, and grants Agent on behalf of the Lenders a first and continuing security interest in and to, the following property, whether now owned or existing or hereafter
acquired or arising and regardless of where located (collectively, the “Account Collateral”): 
 (i) all
of Borrower’s right, title and interest in Borrower’s Operating Account, the Local Collection Account, the Parking Collection Account, the Security Deposit Account, and the Pledged Accounts and all Money and Permitted Investments, if any,
from time to time deposited or held in Borrower’s Operating Account, the Local Collection Account, the Parking Collection Account, the Security Deposit Account, and the Pledged Accounts or purchased with funds or assets on deposit in
Borrower’s Operating Account, the Local Collection Account, the Parking Collection Account, the Security Deposit Account, and the Pledged Accounts; 
  

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 (ii) all of Borrower’s right, title and interest in interest, dividends, Money,
Instruments and other property from time to time received, receivable or otherwise payable in respect of, or in exchange for, any of the foregoing until such time as such items are disbursed from Borrower’s Operating Account, the Local
Collection Account, the Parking Collection Account, the Security Deposit Account, and the Pledged Accounts; and 
 (iii) to the
extent not covered by clause (i) or (ii) above, all Borrower’s right, title and interest in Proceeds of any or all of the foregoing until such time as such items are disbursed from Borrower’s Operating Account, the
Local Collection Account, the Parking Collection Account, the Security Deposit Account and the Pledged Accounts. 
 (b)
Covenants. So long as any portion of the Indebtedness is outstanding, Borrower shall not open (or permit Collateral Agent to open) any account other than the Local Collection Account, the Parking Collection Account or the Collection Account
for the deposit of Rents or Money received from Accounts or under Leases and derived from the Mortgaged Property and all Proceeds to pay amounts owing hereunder, other than any account for amounts required by law to be segregated by Borrower.
Borrower shall not have any right to withdraw Money from any Reserve Account, which shall be under the sole dominion and control, and the “control” within the meaning of Sections 9-104 and 9-106 of the UCC, of the Agent. Agent, Borrower
and Collateral Agent agree that Collateral Agent will comply with instructions originated by Agent directing disposition of the funds in each Reserve Account and the Collection Account without further consent by Borrower. The Account Collateral
shall be subject to such applicable laws, and such applicable regulations of the Board of Governors of the Federal Reserve System and of any other banking authority or Governmental Authority, as may now or hereafter be in effect, and to the rules,
regulations and procedures of Collateral Agent relating to demand deposit accounts generally from time to time in effect. 
 (c)
Financing Statements; Further Assurances. Borrower hereby authorizes the filing of any financing statements or continuation statements, and amendments to financing statements, in any jurisdictions and with any filing offices as the Agent may
determine, in its sole discretion, are necessary or advisable to perfect the security interest granted to the Agent in connection herewith. Such financing statements may describe the collateral in the same manner as described in any security
agreement or pledge agreement entered into by the parties in connection herewith or may contain an indication or description of collateral that describes such property in any other manner as the Agent may determine, in its sole discretion, is
necessary, advisable or prudent to ensure the perfection of the security interest in the collateral granted to the Agent in connection herewith, including, without limitation, describing such property as “all assets” or “all personal
property” whether now owned or hereafter acquired. From time to time, at the expense of Borrower, Borrower shall promptly execute and deliver all further instruments, and take all further action, that Agent may reasonably request, in order to
continue the perfection and protection of the pledge and security interest granted or purported to be granted hereby. 
 (d)
Transfers and Other Liens. Borrower shall not sell or otherwise dispose of any of the Account Collateral other than pursuant to the terms of this Agreement and the other Loan Documents, or create or permit to exist any Lien upon or with
respect to all or any of the Account Collateral, except for the Lien granted to Agent, and the rights of the institution acting as Agent, under or as contemplated by this Agreement. 
  

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 (e) No Waiver. Every right and remedy granted to Agent under this Agreement or by law
may be exercised by Agent at any time and from time to time, and as often as Agent may deem it expedient. Any and all of Agent’s rights with respect to the pledge of and security interest in the Account Collateral granted hereunder shall
continue unimpaired, and to the extent permitted by law, Borrower shall be and remain obligated in accordance with the terms hereof, notwithstanding (i) any proceeding of Borrower under the United States Bankruptcy Code or any bankruptcy,
insolvency or reorganization laws or statutes of any state, (ii) the release or substitution of Account Collateral at any time, or of any rights or interests therein or (iii) any delay, extension of time, renewal, compromise or other
indulgence granted by Agent in the event of any Default with respect to the Account Collateral or otherwise hereunder. No delay or extension of time by Agent in exercising any power of sale, option or other right or remedy hereunder, and no notice
or demand which may be given to or made upon Borrower by Agent, shall constitute a waiver thereof, or limit, impair or prejudice Agent’s right, without notice or demand, to take any action against Borrower or to exercise any other power of
sale, option or any other right or remedy. 
 (f) Agent Appointed Attorney-In-Fact. Borrower hereby irrevocably
constitutes and appoints Agent as Borrower’s true and lawful attorney-in-fact, with full power of substitution, at any time after the occurrence and during the continuation of an Event of Default, to execute, acknowledge and deliver any
instruments and to exercise and enforce every right, power, remedy, option and privilege of Borrower with respect to the Account Collateral, and do in the name, place and stead of Borrower, all such acts, things and deeds for and on behalf of and in
the name of Borrower with respect to the Account Collateral, which Borrower could or might do or which Agent may deem necessary or desirable to more fully vest in Agent the rights and remedies provided for herein with respect to the Account
Collateral and to accomplish the purposes of this Agreement. The foregoing powers of attorney are irrevocable and coupled with an interest and shall terminate upon repayment of the Indebtedness in full. 
 (g) Continuing Security Interest; Termination. This Section 2.15 shall create a continuing pledge of and security
interest in the Account Collateral and shall remain in full force and effect until payment in full by Borrower of the Indebtedness. Upon payment in full by Borrower of the Indebtedness, Agent shall return to Borrower such of the Account Collateral
as shall not have been applied pursuant to the terms hereof, and shall execute such instruments and documents as may be reasonably requested by Borrower to evidence such termination and the release of the pledge and lien hereof. 
 (h) Right of Set-off. Collateral Agent waives any and all rights it may have at law or otherwise to set off or make any claim against
the Account Collateral, except, with respect to any checks returned for insufficient funds, and the payment of Collateral Agent’s fees and expenses due under this Agreement (including reasonable attorney fees and disbursements) for the
maintenance of the Account Collateral. 
 Section 2.16. Mortgage Recording Taxes. The Lien to be created by the Mortgage is intended
to encumber the Mortgaged Property to the full extent of the Loan Amount. On the Closing Date, Borrower shall have paid all state, county and municipal recording and all other taxes imposed upon the execution and recordation of the Mortgage, if any.

  

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 Section 2.17. Extension Option. 
 (a) Borrower shall have the option (each, an “Extension Option”), to extend the Maturity Date of the Note from the
Original Maturity Date to the Payment Date in July, 2009 (the “First Extended Maturity Date”), and from the First Extended Maturity Date to the Payment Date in July, 2010 (the “Final Maturity Date”),
upon satisfaction of each of the following conditions (the “Extension Conditions”): 
 (i) Borrower shall
have given written notice (each, an “Extension Notice”) to the Agent and Collateral Agent not less than sixty (60) days prior to the Original Maturity Date or the First Extended Maturity Date, as applicable, of its
election to exercise the first or the second Extension Option, as the case may be; 
 (ii) no Default or Event of Default shall
have occurred and be continuing on the Original Maturity Date or the First Extended Maturity Date, as applicable; 
 (iii) Agent
shall have determined that the Loan to Value Test is satisfied; 
 (iv) Borrower shall have paid to the Agent for the benefit of
the Lenders on the First Extended Maturity Date a fee in connection with an extension to the Final Maturity Date equal to the product of 0.125% and the Principal Indebtedness as of the First Extended Maturity Date (taking into account any principal
payments made on the First Extended Maturity Date) (such fee, an “Extension Fee”) (i.e., no Extension Fee shall be due and payable on the Original Maturity Date in connection with an extension to the First Extended Maturity
Date); and 
 (v) Borrower shall have purchased an interest rate cap for the term of the extension (or renewed the existing
interest rate cap for such period) in each case from or with a Qualified Interest Rate Cap Provider, with a notional amount equal to the outstanding Principal Indebtedness and a strike rate equal to 5.50% and pursuant to documentation acceptable to
the Agent and delivered to the Agent a fully executed Collateral Assignment of Hedge. 
 (b) In the event Borrower has timely
given the Extension Notice for the first or second Extension Option to Agent, Agent shall be required to notify Borrower by not later than the penultimate Payment Date prior to the Original Maturity Date or the First Extended Maturity Date, as
applicable, of Borrower’s compliance or non-compliance with the Loan to Value Test. Borrower may make a voluntary prepayment of the Loan on the Original Maturity Date or the First Extended Maturity Date, as applicable, in order to be in
compliance with the Loan to Value Test on such date (including from equity capital contributions from its principals). 
 If Agent notifies
Borrower that the Loan to Value Test has not been satisfied, and Borrower believes that Agent’s determination of the value of the Property in connection with such calculation is incorrect, then within five (5) Business Days after Agent
notifies Borrower that the Loan to Value Test has not been satisfied, Borrower may notify Agent in writing (a “Dispute Notice”). If Borrower does not send a Dispute Notice within said five (5) Business Day period,
Borrower shall be deemed to have agreed that Agent’s valuation of the Property for purposes of the Loan to Value Test is correct. If Borrower does send a Dispute Notice within said five (5) Business Day period, then such dispute shall be
resolved as set forth in this paragraph. Within three (3) Business Days following Agent’s receipt of such Dispute Notice from Borrower, each

  

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of Agent and Borrower shall retain, at Borrower’s sole cost and expense, an independent MAI appraiser with at least five (5) years experience in appraising properties similar to such
Property in Los Angeles, California (the “Initial Appraisers”), to appraise the Property, which appraisals shall be completed within twenty (20) days after each such Initial Appraisers’ retention. If the two
appraisals vary by less than five percent (5%), the value of such Property for purposes of the Loan to Value Test shall be deemed to be the average of the two appraisals. If the two appraisals vary by more than five percent (5%), then the Initial
Appraisers shall choose a third independent MAI appraiser with at least five (5) years experience in appraising properties similar to the Property in Los Angeles, California, within three (3) Business Days of either party’s request to
do so, which third appraiser shall render its opinion of the value of the Property within fifteen (15) days of being retained. The cost of such third appraiser shall be borne by Borrower. If a third appraiser is so retained, the value of the
Property for purposes of the Loan to Value Test shall be deemed to be the average of the two appraisals closest in value. If Borrower fails to retain an Initial Appraiser within three (3) Business Days following Agent’s receipt of the
Dispute Notice, then the value of the Property for purposes of the Loan to Value Test shall be deemed to be the value initially determined by Lender. In any of the foregoing cases, the determination of the value of such Property for purposes of the
Loan to Value Test so made shall be conclusive and binding on Agent and Borrower. 
 (c) Borrower may revoke any Extension
Notice by written notice (or telephonic notice promptly confirmed in writing) to the Agent on behalf of the Lenders and to the Collateral Agent on or prior to the tenth (10th) Business Day prior to the Original Maturity Date or the First
Extended Maturity Date, as applicable; provided, however, that Borrower shall pay the reasonable out-of-pocket costs incurred by the Agent and Collateral Agent in connection with the giving of any Extension Notice and its revocation.
If the term of the Loan is extended pursuant to the provisions of this Section 2.17, then all the other terms and conditions of the Loan Documents shall remain in full force and effect and unmodified. 
 Section 2.18. General Collateral Agent Provisions. 
 (a) Appointment. The Lenders hereby designate and appoint LaSalle Bank National Association as Collateral Agent on behalf of the Lenders under this Agreement, and authorize LaSalle Bank National
Association, as Collateral Agent for the Lenders, to take such actions on their behalf under the provisions of this Agreement and to exercise such powers and perform such duties as are expressly delegated to Collateral Agent by the terms of this
Agreement, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, Collateral Agent shall not have any duties or responsibilities, except those expressly set
forth herein, or any fiduciary relationship with the Lenders, 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
Collateral Agent. 
 (b) Collateral Agent’s Right to Perform. If an Event of Default shall have occurred and be
continuing, then Collateral Agent may, but shall have no obligation to, itself perform, or cause performance of, such covenant or obligation giving rise to such Event of Default. The reasonable fees and expenses of Collateral Agent incurred in
connection therewith shall be payable by Borrower to Collateral Agent upon demand, which obligation shall be secured by all Collateral. 
  

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 (c) Standard of Care. Beyond the observance of Accepted Practices and the exercise of
reasonable care in the custody or disbursements thereof, Collateral Agent shall not have any duty as to any Account Collateral or any income thereon in its possession or control or in the possession or control of any agents for, or of Collateral
Agent, or the preservation of rights against any Person or otherwise with respect thereto. Collateral Agent shall be deemed to have exercised reasonable care in the custody of the Account Collateral in its possession if the Account Collateral is
accorded treatment in accordance with the Accepted Practices. 
 (d) Exculpatory Provisions. Neither Collateral Agent nor
any of its officers, directors, employees, agents, attorneys, attorneys-in-fact or Affiliates shall be responsible in any manner to the Lenders for any recitals, statements, representations or warranties made by Borrower or any officer thereof
contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by Collateral Agent under or in connection with, this Agreement or any other Loan Document
or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement, the Note or any other Loan Document or for any failure of Borrower to perform its obligations hereunder or thereunder. Collateral Agent shall
not be under any obligation to the Lenders to ascertain or to inquire as to the agreements contained in, or conditions of, this Loan Agreement or any other Loan Document, or to inspect the properties, books or records of Borrower. Collateral Agent
shall not be required to take any discretionary actions hereunder except at the written direction of Borrower or Agent, it being understood and agreed that Collateral Agent’s duties hereunder shall be wholly ministerial in nature and that
Collateral Agent shall not be responsible for calculating any financial ratios or generating any reports (other than the Monthly Statement) for the Lenders or Borrower. In connection with any discretionary action which Borrower is permitted
hereunder to direct Collateral Agent to take, if Collateral Agent shall follow Agent’s directions and not Borrower’s directions, it shall have no liability to Borrower (or to any other Person) for following any such directions of Agent and
for not following such directions of Borrower (if expressly permitted herein). Collateral Agent shall not be under any obligation or duty to perform any act which, in Collateral Agent’s sole reasonable judgment, could involve it in expense or
liability or to institute or defend any suit in respect hereof, or to advance any of its own monies, unless Agent or Borrower, as the case may be, shall have offered to Collateral Agent reasonable security or indemnity against such expense,
liability, suit or advance. 
 (e) Indemnification. Borrower shall indemnify and hold Collateral Agent, and its agents,
attorneys, employees and officers harmless from and against any loss, cost or damage (including, without limitation, reasonable attorneys’ fees and disbursements) incurred by Collateral Agent in connection with the transactions contemplated
hereby, but excluding any such loss, cost or damage arising as a result of Collateral Agent’s failure to adopt and follow Accepted Practices, gross negligence, bad faith, willful misconduct or violation of applicable law. The indemnification
set forth in this paragraph shall survive the satisfaction and payment of the Indebtedness and the termination of this Agreement. 
  

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 (f) Collateral Agent’s Reliance. Collateral Agent shall be entitled to rely, and
shall be fully protected in relying, upon any note, writing, resolution, notice, consent, certificate, affidavit, letter, cablegram, fax, electronic mail message, telex or teletype message, statement, order or other document reasonably believed by
it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel and other experts selected in good faith by Collateral Agent. Collateral Agent may deem and treat the
payee of the Note as the owner thereof for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been filed with Collateral Agent. Collateral 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 Agent as it deems appropriate or it shall first be indemnified to its satisfaction by 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. Provided that Collateral Agent acts in accordance with Accepted Practices, Collateral Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement in accordance with a request of Agent, and such request and any action taken or failure to act pursuant thereto shall be binding upon Agent and all future holders of the Note. All requests to Collateral Agent for wire
transfers of funds, for transfers between accounts established pursuant to this Agreement or any other transfer not specifically described in this Agreement shall be in writing. 
 (g) Notice of Default. Collateral Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of
Default hereunder unless Collateral Agent has received written notice from Agent referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default”. Collateral Agent shall take
such action with respect to such Default or Event of Default as shall be directed by Agent, including any action under this Agreement. 
 (h) Non-Reliance on Collateral Agent. Neither Collateral Agent nor any of its officers, directors, employees, agents, attorneys, attorneys-in-fact or Affiliates has made any representations or warranties to the Lenders and no act by
Collateral Agent hereinafter taken (including any review of the affairs of Borrower) shall be deemed to constitute any representation or warranty by Collateral Agent to the Lenders. Except for notices, reports and other documents expressly required
to be furnished to Agent by Collateral Agent hereunder, Collateral Agent shall not have any duty or responsibility to provide the Lenders with any credit or other information concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of Borrower which may come into the possession of Collateral Agent or any of its officers, directors, employees, agents, attorneys, attorneys-in-fact or Affiliates. 
 (i) Removal and Resignation. Collateral Agent shall have the right to resign as collateral agent hereunder and Agent shall have the
right to remove Collateral Agent as collateral agent hereunder, in each case upon thirty (30) days’ written notice to the other parties to this Agreement. In the event of such resignation or removal, Agent shall appoint a successor
Collateral Agent with the consent of Borrower (such consent not to be unreasonably withheld or delayed), or at Agent’s option in Agent’s sole and absolute discretion Agent may assume and perform the rights and obligations of Collateral
Agent. No such removal of or resignation by Collateral Agent shall become effective until a successor Collateral Agent shall have accepted

  

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such appointment (or Agent shall have determined to designate itself as Collateral Agent) and executed an instrument by which it shall have assumed all of the rights and obligations of Collateral
Agent hereunder. If no such successor Collateral Agent is appointed within sixty (60) days (or, if fees payable under the Fee Letter have not been paid, thirty (30) days) after receipt of the resigning Collateral Agent’s notice of
resignation or removal, the resigning Collateral Agent may petition a court for the appointment of a successor Collateral Agent unless Agent elects, in its sole and absolute discretion, to assume the rights and obligations of Collateral Agent
itself. In connection with any removal of or resignation by Collateral Agent, (A) the removed or resigning Collateral Agent shall (1) duly assign, transfer and deliver to the successor Collateral Agent this Agreement and all Money and
Permitted Investments held by it hereunder, (2) execute such financing statements and other instruments as may be necessary to assign to the successor Collateral Agent the security interest existing in favor of the retiring Collateral Agent
hereunder, and to otherwise give effect to such succession and (3) take such other actions as may be reasonably required by Borrower, Agent or the successor Collateral Agent in connection with the foregoing and (B) the successor Collateral
Agent shall establish in its name, as agent for the Lenders, as secured party, the Collection Account and Reserve Account as Borrower is required to maintain pursuant to the terms of this Agreement. 
 (j) Individual Capacity. Collateral Agent and its Affiliates may make loans to, accept deposits from and generally engage in any kind
of business with Borrower or any Affiliate, as though Collateral Agent were not Collateral Agent hereunder, or under the other Loan Documents. 
 ARTICLE III. 
 CONDITIONS PRECEDENT 
 Section 3.1. Conditions Precedent to Closing. The obligation of the initial Lender to make the Loan is subject to the satisfaction by Borrower
(and Guarantor, where applicable) or waiver by Agent and initial Lender of the following conditions no later than the Closing Date: 
 (a) Loan Agreement. Borrower, Collateral Agent, Agent and initial Lender shall have executed and delivered this Agreement. Agent shall have received the fully-executed Local Deposit Bank Agreements. 
 (b) Note. Borrower shall have executed and delivered to initial Lender the Note. 
 (c) Environmental Indemnity Agreement; Guaranty of Non-Recourse Obligations; Interest Rate Cap. Borrower and Guarantor shall have
executed and delivered the Environmental Indemnity Agreement to the Agent for benefit of the Lenders. Guarantor shall have executed and delivered the Guaranty of Non-Recourse Obligations. Borrower shall have delivered to the Agent the interest rate
cap in a form acceptable to the Agent from a Qualified Interest Rate Cap Provider with a notional amount equal to the Loan Amount and a strike rate equal to 5.50% and the fully executed Collateral Assignment of Hedge. 
 (d) Opinions of Counsel. The initial Lender and Collateral Agent shall have received from counsel to Borrower and Guarantor legal
opinions in form and substance acceptable to Agent, with respect to corporate matters and with respect to substantive non-consolidation of

  

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Senior Mezzanine Borrower, Junior Mezzanine Borrower, Manager and TPG/CALSTRS, on the one hand, and Borrower on the other, in the event of the bankruptcy of Senior Mezzanine Borrower, Junior
Mezzanine Borrower, Manager or TPG/CALSTRS. Such legal opinions shall be addressed to Agent and its successors and assigns, dated the Closing Date, and in form and substance reasonably satisfactory to Agent and its counsel. 
 (e) Organizational Documents. The initial Lender shall have received with respect to each of Borrower and the Guarantor its
certificate of formation or certificate of incorporation, as applicable, as amended, modified or supplemented to the Closing Date, as filed with the Secretary of State in the jurisdiction of organization and in effect on the Closing Date and
certified to be true, correct and complete by the appropriate Secretary of State as of a date not more than ten (10) days prior to the Closing Date, together with, if available, a good standing certificate from such Secretary of State and, for
Borrower only, a good standing certificate from the Secretaries of State (or the equivalent thereof) of each other State in which Borrower is required to be qualified to transact business. 
 (f) Certified Resolutions, etc. The initial Lender shall have received a certificate of each of Borrower and the Guarantor dated the
Closing Date, certifying (i) the names and true signatures of its incumbent officers authorized to sign the Loan Documents to which Borrower or Guarantor is a party, (ii) the Organizational Agreements of Borrower as in effect on the
Closing Date, (iii) the resolutions of Borrower and the Guarantor, approving and authorizing the execution, delivery and performance of the Loan Documents to which it is a party, and (iv) that there have been no changes in any
Organizational Agreement since the date of execution or preparation thereof. 
 (g) Additional Matters. The Agent shall
have received such other certificates, opinions, documents and instruments relating to the Loan as may have been reasonably requested by Agent. All corporate and other organizational proceedings, all other documents (including, without limitation,
all documents referred to herein and not appearing as exhibits hereto) and all legal matters in connection with the Loan shall be reasonably satisfactory in form and substance to Agent. 
 (h) Transaction Costs. Borrower shall have paid all Transaction Costs for which bills have been submitted in accordance with the
provisions of Section 8.23. 
 (i) No Default or Event of Default. No Default or Event of Default shall have
occurred and be continuing on the Closing Date. 
 (j) No Injunction. No law or regulation shall have been adopted, no
order, judgment or decree of any Governmental Authority shall have been issued, and no litigation shall be pending or threatened, which in the good faith judgment of the initial Lender would enjoin, prohibit or restrain, or impose or result in the
imposition of any material adverse condition upon, the making or repayment of the Loan or the consummation of the Transaction. 
 (k) Representations and Warranties. The representations and warranties herein and in the other Loan Documents shall be true and correct in all material respects on the Closing Date. 
  

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 (l) Survey; Appraisal. Agent shall have received the Survey and the Appraisal with
respect to the Mortgaged Property, which shall be in form and substance reasonably satisfactory to Agent. 
 (m) Engineering
Report; Seismic Study; Operations and Maintenance Plan. Agent shall have received each of the Engineering Report, the Seismic Study and an asbestos “operations and maintenance” plan with respect to the Mortgaged Property prepared by an
Engineer, which Engineering Report shall be reasonably acceptable to Agent. 
 (n) Environmental Matters. Agent shall
have received an Environmental Report prepared by an Environmental Auditor with respect to the Mortgaged Property, which Environmental Report shall be reasonably acceptable to Agent. 
 (o) Financial Information. Agent shall have received reasonably acceptable financial information relating to the Mortgaged Property.
Such information shall include the following, to the extent reasonably available: 
 (i) operating statements for the current
year (including actual to date information, an annual budget and trailing twelve month data in hard copy and on diskette) and for not less than the three preceding years (including tenant improvements costs, leasing commissions, capital reserves,
major repairs, replacement items and occupancy rates in hard copy and on diskette); 
 (ii) copies of Leases with respect to the
tenants of the Mortgaged Property, a copy of the standard lease form, if any, and tenant lease abstracts, if available; 
 (iii)
current property rent roll data on a tenant by tenant basis in hard copy (including name, square footage, lease term, expiration date, renewal options, base rent per square foot, sales volume psf (if applicable), percentage rent terms (if
applicable), additional rent clauses (including stops, offsets, and other special provisions), escalation clauses for increase in operating expense, maintenance, insurance, real estate taxes and utilities, assignment, sublet and cancellation
provisions and purchase options); 
 (iv) current real estate tax bills and historical real estate tax bills of record for the
Mortgaged Property for not less than the three preceding years; 
 (v) insurance certificates indicating the type and amount of
coverage; and 
 (vi) the most recent annual financial statements and unaudited quarterly financial statements. 
 The annual financial statements relating to the Mortgaged Property shall be either (x) audited by a “Big Four” accounting firm or another
firm of certified public accountants reasonably acceptable to Agent or (y) done in accordance with agreed upon procedures reasonably acceptable to Agent to be performed by a “Big Four” accounting firm or another firm of certified
public accountants reasonably acceptable to Agent to create similar information. 
  

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 (p) Capital Budget; Leasing Budget; Operating Budget; Personal Financial Statement.
Agent shall have received the Capital Budget and the Leasing Budget which shall have been approved by Junior Mezzanine Lender. Agent shall have received Operating Budget for the Mortgaged Property for the following twelve months which is acceptable
to the Agent. The Agent shall have received the financial statements of Guarantor, which shall be acceptable to the Agent. 
 (q) Site Inspection. Borrower shall have provided to Agent the opportunity to perform, or cause to be performed on its behalf, an on-site due diligence review of the Mortgaged Property to be refinanced with the Loan which inspection
is satisfactory to Agent in its sole discretion. 
 (r) Mortgaged Property Documents. 
 (i) Mortgage; Assignment of Rents and Leases. Borrower shall have executed and delivered to Agent the Mortgage and the Assignment of
Rents and Leases with respect to the Mortgaged Property and such Mortgage and Assignment of Rents and Leases shall have been filed of record in the appropriate filing office in the jurisdiction in which the Mortgaged Property is located or
irrevocably delivered to a title agent for such recordation. 
 (ii) Financing Statements. Borrower shall have executed
and delivered to Agent all financing statements required by Agent pursuant hereto and such financing statements shall have been filed of record in the appropriate filing offices in each of the appropriate jurisdictions or irrevocably delivered to a
title agent for such recordation. 
 (iii) Management Agreement and Manager’s Subordination. With respect to the
Mortgaged Property, Agent shall have received the executed Management Agreement and the Manager shall have executed and delivered the Manager’s Subordination to Agent. 
 (iv) Contract Assignment. With respect to the Mortgaged Property, Borrower shall have executed and delivered to Agent a Contract
Assignment with respect to the Mortgaged Property. 
 (s) Opinions of Counsel. Agent shall have received from counsel to
Borrower its legal opinion in form and substance satisfactory to Agent, as to the enforceability of the Mortgage and Assignment of Rents and Leases, perfection of Liens and security interests and other matters referred to therein. The legal opinions
will be addressed to Agent and Lenders and their successors and assigns, dated the Closing Date, and in form and substance reasonably satisfactory to Agent and its counsel. 
 (t) Insurance. Agent shall have received certificates of insurance demonstrating insurance coverage in respect of the Mortgaged
Property of types, in amounts, with insurers and otherwise in compliance with the terms, provisions and conditions set forth in this Agreement. Such certificates shall indicate that Agent is a named additional insured and shall contain a loss payee
endorsement in favor of Agent with respect to the property policies required to be maintained under this Agreement. 
  

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 (u) Title Insurance Policy. Agent shall have received an unconditional commitment (in
form and substance reasonably satisfactory to Agent) to issue the Title Insurance Policy covering the Mortgaged Property with an amount of insurance reasonably acceptable to Agent up to maximum coverage equal to the Loan Amount. 
 (v) Lien Search Reports. Agent shall have received satisfactory reports of UCC (collectively, the “UCC
Searches”), tax lien, judgment and litigation searches and title updates conducted by the companies issuing the Title Insurance Policy with respect to the Collateral, Borrower and each member of Borrower, such searches to be conducted
in each of the locations required by Agent. 
 (w) Consents, Licenses, Approvals, etc. Agent shall have received copies
of all consents, licenses and approvals, if any, required in connection with the execution, delivery and performance by Borrower and Collateral Agent, and the validity and enforceability, of the Loan Documents, and such consents, licenses and
approvals shall be in full force and effect. 
 (x) Additional Real Estate Matters. Agent shall have received such other
real estate related certificates and documentation relating to the Mortgaged Property as Agent may have reasonably requested. Such documentation shall include the following as requested by Agent and to the extent reasonably available: 
 (i) certificates of occupancy issued by the appropriate Governmental Authority of the jurisdiction in which the Mortgaged Property is located
reflecting, and consistent with, the use of the Mortgaged Property as of the Closing Date; 
 (ii) letters from the appropriate
local Governmental Authority of the jurisdiction in which the Mortgaged Property is located, certifying that the Mortgaged Property is in compliance with all applicable zoning laws, rules and regulations, or a zoning endorsement to the applicable
Title Insurance Policy with respect to the Mortgaged Property or an opinion of zoning counsel to such effect or a report from The Planning and Zoning Resources Corporation acceptable to the Agent; 
 (iii) abstracts of all Leases in effect at the Mortgaged Property and copies of such of the Leases as Agent may request (in addition to the
copies delivered above); 
 (iv) estoppel certificates in form and substance acceptable to Agent in respect of all major tenants,
representing no less than 75% of all currently leased space at the Mortgaged Property; and 
 (v) graphics (including interior
and exterior photographs, rental brochures and a competitive properties map) as required by Agent. 
 (y) Closing
Statement. The Agent and Borrower shall have agreed upon a detailed closing statement from Borrower in a form reasonably acceptable to the Agent, which includes a complete description of Borrower’s sources and uses of funds on the Closing
Date. 
 (z) Loan to Value Test. The Agent shall have determined that the Loan to Value Test is satisfied. 
  

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 Section 3.2. Execution and Delivery of Agreement. The execution and delivery of this Agreement
by each party to this Agreement shall be deemed to constitute the satisfaction or waiver of the conditions set forth in Section 3.1. 
 ARTICLE IV. 
 REPRESENTATIONS AND WARRANTIES 
 Section 4.1. Representations and Warranties as to Borrower. Borrower represents and warrants that, as of the Closing Date: 
 (a) Organization. Borrower (i) is a duly organized and validly existing limited liability company in good standing under the
laws of the State of Delaware, (ii) has the requisite power and authority to own its properties (including, without limitation, the Mortgaged Property) and to carry on its business as now being conducted and is qualified to do business in the
jurisdiction in which the Mortgaged Property is located, and (iii) has the requisite power to execute and deliver, and perform its obligations under, this Agreement, the Note and all of the other Loan Documents to which it is a party.

 (b) Authorization; No Conflict; Consents and Approvals. The execution and delivery by Borrower of this Agreement, the
Note and each of the other Loan Documents, Borrower’s performance of its obligations hereunder and thereunder and the creation of the security interests and liens provided for in this Agreement and the other Loan Documents to which it is a
party (i) have been duly authorized by all requisite limited liability company action on the part of Borrower, (ii) will not violate any provision of any Legal Requirements, any order of any court or other Governmental Authority, the
Organizational Agreement or any indenture or agreement or other instrument to which Borrower is a party or by which Borrower is bound, and (iii) will not be in conflict with, result in a breach of, or constitute (with due notice or lapse of
time or both) a default under, or result in the creation or imposition of any Lien of any nature whatsoever upon the Mortgaged Property pursuant to, any such indenture or material agreement or instrument other than the Loan Documents. Other than
those obtained or filed on or prior to the Closing Date, Borrower is not required to obtain any consent, approval or authorization from, or to file any declaration or statement with, any Governmental Authority or other agency in connection with or
as a condition to the execution, delivery or performance of this Agreement, the Note or the other Loan Documents executed and delivered by Borrower. 
 (c) Enforceability. This Agreement, the Note and each other Loan Document executed by Borrower in connection with the Loan (including, without limitation, any Collateral Security Instrument), is
the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with its terms, subject to bankruptcy, insolvency, and other limitations on creditors’ rights generally and to equitable principles. This Agreement,
the Note and such other Loan Documents are not subject to any right of rescission, set-off, counterclaim or defense by Borrower (including the defense of usury), and Borrower has not asserted any right of rescission, set-off, counterclaim or defense
with respect thereto. 
 (d) Litigation. There are no actions, suits or proceedings at law or in equity by or before any
Governmental Authority or other agency now pending and served or, to the best knowledge of Borrower, threatened against Borrower or any Collateral, which actions, suits or proceedings, if determined against Borrower or such Collateral, are
reasonably likely to result in a Material Adverse Effect. 
  

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 (e) Agreements. Borrower is not in default in the performance, observance or
fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument to which it is a party or by which Borrower or any Collateral is bound which is reasonably likely to have a Material Adverse Effect. Borrower is
not a party to any agreement or instrument or subject to any restriction that is reasonably likely to have a Material Adverse Effect. 
 (f) No Bankruptcy Filing. Borrower is not contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of its assets or property. To the
best knowledge of Borrower, no Person is contemplating the filing of any such petition against it. 
 (g) Solvency.
Giving effect to the transactions contemplated hereby, the fair saleable value of Borrower’s assets exceeds and will, immediately following the making of the Loan, exceed Borrower’s total liabilities (including, without limitation,
subordinated, unliquidated, disputed and contingent liabilities). The fair saleable value of Borrower’s assets is and will, immediately following the making of the Loan, be greater than Borrower’s probable liabilities (including the
maximum amount of its contingent liabilities on its debts as such debts become absolute and matured). Borrower’s assets do not and, immediately following the making of the Loan will not, constitute unreasonably small capital to carry out its
business as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe that it will, incur debts and liabilities (including, without limitation, contingent liabilities and other commitments) beyond its ability to pay
such debts as they mature (taking into account the timing and amounts to be payable on or in respect of obligations of Borrower). 
 (h) Other Debt. Borrower has not borrowed or received other debt financing whether unsecured or secured by the Mortgaged Property or any part thereof. 
 (i) Full and Accurate Disclosure. No statement of fact made by or on behalf of Borrower in this Agreement or in any of the other Loan Documents contains any untrue statement of material fact or
omits to state any material fact necessary to make statements contained herein or therein not misleading. To the best knowledge of Borrower, there is no fact that has not been disclosed to Agent that is likely to result in a Material Adverse Effect,
including without limitation, the terms and conditions of the purchase and sale agreement pursuant to which Borrower acquired the Mortgaged Property. 
 (j) Financial Information. All financial statements and other data concerning Borrower and the Mortgaged Property that has been delivered by or on behalf of Borrower to Agent is true, complete and
correct in all material respects and has been prepared in accordance with GAAP. Since the delivery of such data, except as otherwise disclosed in writing to Agent, there has been no change in the financial position of Borrower or the Mortgaged
Property, or in the results of operations of Borrower, which change results or is reasonably likely to result in a Material Adverse Effect. Borrower has not incurred any obligation or liability, contingent or otherwise, not reflected in such
financial data, which is likely to have a Material Adverse Effect upon its business operations or the Mortgaged Property. 
  

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 (k) Investment Company Act; Public Utility Holding Company Act. Borrower is not
(i) an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended, (ii) a “holding company” or a “subsidiary
company” of a “holding company” or an “affiliate” of either a “holding company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as amended, or
(iii) subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money in accordance with this Agreement. 
 (l) Compliance. Borrower is in compliance with all applicable Legal Requirements, except for noncompliance that is not reasonably likely to have a Material Adverse Effect. Borrower is not in
default or violation of any order, writ, injunction, decree or demand of any Governmental Authority except for defaults or violations which are not reasonably likely to have a Material Adverse Effect. 
 (m) Use of Proceeds; Margin Regulations. Borrower will use the proceeds of the Loan for the purposes described in
Section 2.2. No part of the proceeds of the Loan will be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any
other purpose which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors, or for any purposes prohibited by Legal Requirements. 
 (n) Single-Purpose Entity. 
 (i) Borrower at all times since its formation has been a duly formed and existing limited liability company under the laws of the State of its formation and a Single-Purpose Entity. 
 (ii) Borrower at all times since its formation has complied with the provisions of its Organizational Agreement since such agreement was
executed and delivered and the laws of the State of Delaware relating to limited liability companies. 
 (iii) All customary
formalities regarding the limited liability company existence of Borrower have been observed at all times since the Organizational Agreement was executed and delivered. 
 (iv) Borrower has at all times since it began maintaining such items accurately maintained its financial statements, accounting records and other limited liability company documents separate from those of
its members, Affiliates of its members and any other Person. Borrower has not at any time since its formation commingled its assets with those of its members, any Affiliates of its members, or any other Person. Borrower has at all times since
establishing its own bank accounts accurately maintained its own bank accounts and separate books of account. 
 (v) Borrower has
at all times since receiving funds paid its own liabilities from its own separate assets. 
  

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 (vi) Borrower has at all times since its formation identified itself in all dealings with
the public, under its own name and as a separate and distinct entity. Borrower has not at any time since its formation identified itself as being a division or a part of any other entity. Borrower has not at any time since its formation identified
its members or any Affiliates of its members as being a division or part of Borrower. 
 (vii) Borrower is as of the date hereof
adequately capitalized in light of the nature of its business. 
 (viii) Borrower has not at any time since its formation
assumed or guaranteed the liabilities of its members (or any predecessor entity), any Affiliates of its members, or any other Persons, except for liabilities relating to the Collateral. Borrower has not at any time since its formation
acquired obligations or securities of its members (or any predecessor entity), or any Affiliates of its members or any other Person. Borrower has not at any time since its formation pledged its assets for the benefit of any other entity
(other than the Agent) or made loans or advances to its members (or any predecessor entity), or any Affiliates of its members or any other Person. 
 (ix) Borrower has not at any time since its formation entered into and was not a party to any transaction with its members (or any predecessor entity) or any Affiliates of its members, except for in the
ordinary course of business of Borrower on terms which are no less favorable to Borrower than would be obtained in a comparable arm’s length transaction with an unrelated third party (other than in connection with the execution by Borrower and
Manager of the Management Agreement). 
 (o) No Defaults. No Default or Event of Default exists under or with respect to
any Loan Document. 
 (p) Plans and Welfare Plans. The assets of Borrower are not treated as “plan assets”
under regulations currently promulgated under ERISA. Each Plan, and, to the best knowledge of Borrower, each Multiemployer Plan, is in compliance in all material respects with, and has been administered in all material respects in compliance with,
its terms and the applicable provisions of ERISA, the Code and any other federal or state law, and no event or condition has occurred and is continuing as to which Borrower would be under an obligation to furnish a report to Lender under
Section 5.1(u)(i). Other than an application for a favorable determination letter with respect to a Plan, there are no pending issues or claims before the Internal Revenue Service, the United States Department of Labor or any court of
competent jurisdiction related to any Plan or Welfare Plan. No event has occurred, and there exists no condition or set of circumstances, in connection with any Plan or Welfare Plan under which Borrower or, to the best knowledge of Borrower, any
ERISA Affiliate, directly or indirectly (through an indemnification agreement or otherwise), is reasonably likely to be subject to any material risk of liability under Section 409 or 502(i) of ERISA or Section 4975 of the Code. No Welfare
Plan provides or will provide benefits, including, without limitation, death or medical benefits (whether or not insured) with respect to any current or former employee of Borrower, or, to the best knowledge of Borrower, any ERISA Affiliate beyond
his or her retirement or other termination of service other than (i) coverage mandated by applicable law, (ii) death or disability benefits that have been fully provided for by fully paid up insurance or (iii) severance benefits.

  

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 (q) Additional Borrower UCC Information. Borrower’s organizational
identification number is 3789285 and the full legal name of Borrower is as set forth on the signature pages hereof and Borrower has not done in the last five (5) years, and does not do, business under any other name (including any trade-name or
fictitious business name). 
 (r) Not Foreign Person. Borrower is not a “foreign person” within the meaning of
§ 1445(f)(3) of the Code. 
 (s) Labor Matters. Borrower is not a party to any collective bargaining
agreements. 
 (t) Pre-Closing Date Activities. Borrower has not conducted any business or other activity on or prior to
the Closing Date, other than in connection with the acquisition, management and ownership of the Mortgaged Property. 
 (u)
No Bankruptcies or Criminal Proceedings Involving Borrower or Related Parties. No bankruptcy, insolvency, reorganization or comparable proceedings have ever been instituted by or against Borrower, any Affiliate of Borrower, Guarantor or any
individual or entity owning, with his, her or its family members, 20% or more of the direct, or indirect beneficial ownership interests in Borrower (each such Guarantor, individual, or entity being herein referred to as a
“Principal”), and no such proceeding is now pending or contemplated. None of Borrower, any Principal, or to Borrower’s knowledge, any other individual or entity directly or indirectly owning or controlling, or the family
members of which own or control, any direct or indirect beneficial ownership interest in Borrower or in the Manager or asset manager for the Mortgaged Property, have been charged, indicted or convicted, or are currently under the threat of charge,
indictment or conviction, for any felony or crime punishable by imprisonment. 
 (v) No Prohibited Persons. Neither
Borrower, nor Guarantor nor any of their respective officers, directors, shareholders, partners, members or Affiliates, if applicable (including, without limitation, the indirect holders of equity interests in Borrower) is or will be an entity or
person: (i) that is listed in the Annex to, or is otherwise subject to the provisions of Executive Order 13224 issued on September 24, 2001 (“EO13224”); (ii) whose name appears on the United States Treasury
Department’s Office of Foreign Assets Control (“OFAC”) most current list of “Specifically Designated National and Blocked Persons” (which list may be published from time to time in various mediums including,
but not limited to, the OFAC website, http:www.treas.gov/ofac/t11sdn.pdf); (iii) who commits, threatens to commit or supports “terrorism”, as that term is defined in EO13224; or (iv) who is otherwise affiliated with any entity or
person listed above (any and all parties or persons described in clauses (i) through (iv) above are herein referred to as a “Prohibited Person”). 
 Section 4.2. Representations and Warranties as to the Mortgaged Property. Borrower hereby represents and warrants to the Agent that, as to the Mortgaged Property and the Mortgage, as of the
Closing Date: 
 (a) Title to the Mortgaged Property. Borrower owns good, marketable and insurable fee simple title to
the applicable Land, free and clear of all Liens, other than the Permitted Encumbrances applicable to the Land. Borrower owns the other Mortgaged Property free and clear of any and all Liens, other than Permitted Encumbrances. There are no
outstanding options to purchase or rights of first refusal or restrictions on transferability affecting such Mortgaged Property. 
  

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 (b) Utilities and Public Access. The Mortgaged Property has adequate rights of access
to public ways and is served by water, electric, sewer, sanitary sewer and storm drain facilities. All public utilities necessary to the continued use and enjoyment of the Mortgaged Property as presently used and enjoyed are located in the public
right-of-way abutting the premises, and all such utilities are connected so as to serve the Mortgaged Property without passing over other property except for land or easement areas of or available to the utility company providing such utility
service. All roads necessary for the full utilization of the Mortgaged Property for its current purpose have been completed and dedicated to public use and accepted by all Governmental Authorities or are the subject of access easements for the
benefit of the Mortgaged Property. 
 (c) Condemnation. No Taking has been commenced or, to the best of Borrower’s
knowledge, is contemplated with respect to all or any portion of the Mortgaged Property or for the relocation of roadways providing access to the Mortgaged Property. 
 (d) Compliance. The Mortgaged Property is in compliance with all applicable Legal Requirements (including, without limitation, building and zoning ordinances and codes) and all applicable Insurance
Requirements, except for noncompliance which is not reasonably likely to have a Material Adverse Effect. 
 (e) Environmental
Compliance. Except for matters set forth in the Environmental Reports delivered to Agent in connection with the Loan (true, correct and complete copies of which have been provided to Agent by Borrower): 
 (i) Borrower is in full compliance with all applicable Environmental Laws (which compliance includes, but is not limited to, the possession
by Borrower or the Manager of all environmental, health and safety permits, licenses and other governmental authorizations required in connection with the ownership and operation of the Mortgaged Property under all Environmental Laws), except for
noncompliance which is not reasonably likely to have a Material Adverse Effect. 
 (ii) There is no Environmental Claim pending
or, to the actual knowledge of Borrower, threatened, and no penalties arising under Environmental Laws have been assessed, against Borrower or the Manager or, to the actual knowledge of Borrower, against any Person whose liability for any
Environmental Claim Borrower or the Manager has or may have retained or assumed either contractually or by operation of law, and no investigation or review is pending or, to the actual knowledge of Borrower, threatened by any Governmental Authority,
citizens group, employee or other Person with respect to any alleged failure by Borrower or the Manager or the Mortgaged Property to have any environmental, health or safety permit, license or other authorization required under, or to otherwise
comply with, any Environmental Law or with respect to any alleged liability of Borrower or the Manager for any Use or Release of any Hazardous Substances. 
  

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 (iii) There are no present and, to the best of Borrower’s knowledge, there have been no
past Releases of any Hazardous Substance that are reasonably likely to form the basis of any Environmental Claim against Borrower, the Manager or against any Person whose liability for any Environmental Claim Borrower or the Manager has or may have
retained or assumed either contractually or by operation of law. 
 (iv) Without limiting the generality of the foregoing, there
is not present at, on, in or under the Mortgaged Property, PCB-containing equipment, asbestos or asbestos containing materials, underground storage tanks or surface impoundments for Hazardous Substances, lead in drinking water (except in
concentrations that comply with all Environmental Laws), or lead based paint, the presence of which is reasonably likely to result in a Material Adverse Effect. 
 (v) No liens are presently recorded with the appropriate land records under or pursuant to any Environmental Law with respect to the Mortgaged Property and no Governmental Authority has been taking or, to
the actual knowledge of Borrower, is in the process of taking any action that could subject the Mortgaged Property to Liens under any Environmental Law. 
 (vi) There have been no environmental investigations, studies, audits, reviews or other analyses conducted by or that are in the possession of Borrower in relation to the Mortgaged Property which have not
been made available to the Agent. 
 (f) Mortgage and Other Liens. The Mortgage creates a valid and enforceable first
priority Lien on the Mortgaged Property described therein, as security for the repayment of the Indebtedness, subject only to the Permitted Encumbrances applicable to the Mortgaged Property. This Agreement creates a valid and enforceable first
priority Lien on all Account Collateral. Each Collateral Security Instrument establishes and creates a valid, subsisting and enforceable Lien on and a security interest in, or claim to, the rights and property described therein. All property covered
by any Collateral Security Instrument in which a security interest can be perfected by the filing of a financing statement is subject to a UCC financing statement filed and/or recorded, as appropriate (or irrevocably delivered to an agent for such
recordation or filing) in all places necessary to perfect a valid first priority Lien with respect to the rights and property that are the subject of such Collateral Security Instrument to the extent governed by the UCC. 
 (g) Assessments. There are no pending nor, to the best knowledge of Borrower, proposed special or other assessments for public
improvements or otherwise affecting the Mortgaged Property, nor are there any contemplated improvements to the Mortgaged Property that may result in such special or other assessments. 
 (h) No Joint Assessment; Separate Lots. Borrower has not suffered, permitted or initiated the joint assessment of the Mortgaged
Property (i) with any other real property constituting a separate tax lot, and (ii) with any portion of the Mortgaged Property which may be deemed to constitute personal property, or any other procedure whereby the lien of any taxes which
may be levied against such personal property shall be assessed or levied or charged to the Mortgaged Property as a single lien. The Mortgaged Property is comprised of one or more parcels, each of which constitutes a separate tax lot and none of
which constitutes a portion of any other tax lot. 
  

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 (i) No Prior Assignment. The Agent is the collateral assignee of Borrower’s
interest under the Leases. There are no prior assignments of the Leases or any portion of the Rent due and payable or to become due and payable which are presently outstanding. 
 (j) Permits; Certificate of Occupancy. Borrower has obtained all Permits necessary to the use and operation of the Mortgaged Property
except where the failure to obtain such Permits is not reasonably likely to have a Material Adverse Effect. The use being made of the Mortgaged Property is in conformity with the certificate of occupancy and/or such Permits for the Mortgaged
Property and any other restrictions, covenants or conditions affecting the Mortgaged Property. 
 (k) Flood Zone. Except
as shown on the Survey, the Mortgaged Property described therein is not located in a flood hazard area as defined by the Federal Insurance Administration. 
 (l) Physical Condition. Except as set forth in the Engineering Report, to the best knowledge of Borrower, the Mortgaged Property is free of structural defects and all building systems contained
therein are in good working order subject to ordinary wear and tear. 
 (m) Security Deposits. Borrower and the Manager
are in compliance with all Legal Requirements relating to all security deposits with respect to the Mortgaged Property, except where the failure to comply is not reasonably likely to result in a Material Adverse Effect. 
 (n) Intellectual Property. All material Intellectual Property that Borrower owns or has pending, or under which it is licensed, are
in good standing and uncontested. There is no right under any Intellectual Property necessary to the business of Borrower as presently conducted or as Borrower contemplates conducting its business. Borrower has not infringed, is not infringing, and
has not received notice of infringement with respect to asserted Intellectual Property of others. There is no infringement by others of material Intellectual Property of Borrower. 
 (o) No Encroachments. Except as shown on the Survey, to the best knowledge of Borrower, (i) all of the Improvements which were
included in determining the appraised value of the Mortgaged Property lie wholly within the boundaries and building restriction lines of the Mortgaged Property, (ii) no improvements on adjoining properties encroach upon the Mortgaged Property,
(iii) no easements or other encumbrances upon the Mortgaged Property encroach upon any of the Improvements, so as to materially and adversely affect the value or marketability of the Mortgaged Property and (iv) all of the Improvements
comply with all material requirements of any applicable zoning and subdivision laws and ordinances. 
 (p) Management
Agreement. The Management Agreement is in full force and effect. There is no default, breach or violation existing thereunder by Borrower or, to the best knowledge of Borrower, any other party thereto and no event (other than payments due but
not yet delinquent) which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach or violation by Borrower or, to the best knowledge of Borrower, any other party thereunder or
entitle Borrower or, to the best knowledge of Borrower, any other party thereto to terminate any such agreement. 
  

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 (q) Leases. The Mortgaged Property is not subject to any Leases other than the Leases
described in the rent roll delivered to Agent in connection with the making of the Loan. No person has any possessory interest in the Mortgaged Property or right to occupy the same except under and pursuant to the provisions of the Leases. The
current Leases are in full force and effect and there are no defaults thereunder by either party and no conditions which with the passage of time and/or notice would constitute defaults thereunder, except for such defaults as are not reasonably
likely to result in a Material Adverse Effect. 
 Section 4.3. Survival of Representations. Borrower agrees that (i) all of the
representations and warranties of Borrower set forth in Section 4.1 and 4.2 and in the other Loan Documents delivered on the Closing Date are made as of the Closing Date, and (ii) all representations and warranties made by
Borrower shall survive the delivery of the Note and making of the Loan and continue for so long as any amount remains owing to the Lenders under this Agreement, the Note or any of the other Loan Documents; provided, however, that the
representations set forth in Section 4.2(e) shall survive in perpetuity. All representations, warranties, covenants and agreements made in this Agreement or in the other Loan Documents shall be deemed to have been relied upon by the Lenders
and Collateral Agent notwithstanding any investigation heretofore or hereafter made by the Lenders and Collateral Agent or on their behalf. 
 ARTICLE V. 
 AFFIRMATIVE COVENANTS 
 Section 5.1. Affirmative Covenants. Borrower covenants and agrees that, from the date hereof and until payment in full of the Indebtedness:

 (a) Existence; Compliance with Legal Requirements: Insurance. Borrower shall do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its existence as a limited liability company, rights, licenses, Permits and franchises necessary for the conduct of its business and comply with all Legal Requirements and Insurance
Requirements applicable to it and the Mortgaged Property, except for such non-compliance which is not reasonably likely to result in a Material Adverse Effect. Borrower shall at all times maintain, preserve and protect all franchises and trade names
and preserve all the remainder of its property necessary for the continued conduct of its business and keep the Mortgaged Property in good repair, working order and condition, except for reasonable wear and use (and except for casualty losses as to
which other provisions hereof shall govern), and from time to time make, or cause to be made, all reasonably necessary repairs, renewals, replacements, betterments and improvements thereto. Borrower shall or shall cause its tenants to keep the
Mortgaged Property insured at all times, by financially sound and reputable insurers, to such extent and against such risks, and maintain liability and such other insurance, as more fully provided in this Agreement, and otherwise perform and comply
with all obligations of Borrower under the Mortgage. 
 (b) Basic Carrying Costs and Other Claims. Borrower shall pay and
discharge all Impositions, as well as all lawful claims for labor, materials and supplies or otherwise when due and payable all as more fully provided in, and subject to any rights to contest contained in, the

  

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Mortgage. Borrower shall pay all Basic Carrying Costs with respect to Borrower and the Mortgaged Property in accordance with the provisions of the Mortgage and this Agreement, subject, however,
to Borrower’s rights to contest payment of Impositions in accordance with the Mortgage. Borrower’s obligation to pay Basic Carrying Costs pursuant to this Agreement shall include, to the extent permitted by applicable law, Impositions
resulting from future changes in law which impose upon a Lender an obligation to pay any property taxes on the Mortgaged Property or other Impositions. Borrower shall (x) pay its trade payables within forty-five (45) days from the date
such trade payables are incurred and (y) not permit its trade payables to exceed 2% of the Principal Indebtedness. 
 (c)
Litigation. Borrower shall give prompt written notice to Agent of any litigation or governmental proceedings pending or threatened (in writing) against Borrower, or the Mortgaged Property which is reasonably likely to have a Material Adverse
Effect. 
 (d) Environmental Remediation. 
 (i) If any investigation, site monitoring, cleanup, removal, restoration or other remedial work of any kind or nature is required pursuant to an order or directive of any Governmental Authority or under
any applicable Environmental Law, because of or in connection with the current or future presence, suspected presence, Release or suspected Release of a Hazardous Substance on, under or from the Mortgaged Property or any portion thereof
(collectively, the “Remedial Work”), Borrower shall promptly commence and diligently prosecute to completion all such Remedial Work, and shall conduct such Remedial Work in accordance with the National Contingency Plan
promulgated under the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq., if applicable, and in accordance with other applicable Environmental Laws. In all events, such Remedial Work shall be
commenced within such period of time as required under any applicable Environmental Law; provided, however, that Borrower shall not be required to commence such Remedial Work within the above specified time periods: (x) if
prevented from doing so by any Governmental Authority, (y) if commencing such Remedial Work within such time periods would result in Borrower or such Remedial Work violating any Environmental Law or (z) if Borrower, at its expense and
after prior notice to Agent, is contesting by appropriate legal, administrative or other proceedings conducted in good faith and with due diligence the need to perform Remedial Work, as long as (1) Borrower is permitted by the applicable
Environmental Laws to delay performance of the Remedial Work pending such proceedings, (2) neither the Mortgaged Property nor any part thereof or interest therein shall be sold, forfeited or lost if Borrower does not perform the Remedial Work
being contested, and Borrower would have the opportunity to do so, in the event of Borrower’s failure to prevail in the contest, (3) the Lenders would not, by virtue of such permitted contest, be exposed to any risk of any civil liability
for which Borrower has not furnished additional security as provided in clause (4) below, or to any risk of criminal liability, and neither the Mortgaged Property nor any interest therein would be subject to the imposition of any lien
for which Borrower has not furnished additional security as provided in clause (4) below, as a result of the failure to perform such Remedial Work and (4) Borrower shall have furnished to the Agent additional security in respect of
the Remedial Work being contested and the loss or damage that may result from Borrower’s failure to prevail in such contest in such amount as may be reasonably requested by the Agent. 
  

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 (ii) If requested by the Agent, all Remedial Work under clause (i) above shall
be performed by contractors, and under the supervision of a consulting Engineer, each approved in advance by the Agent which approval shall not be unreasonably withheld or delayed. Borrower shall pay all costs and expenses reasonably incurred in
connection with such Remedial Work. If Borrower does not timely commence and diligently prosecute to completion the Remedial Work, the Agent may (but shall not be obligated to), upon 30 days prior written notice to Borrower of its intention to do
so, cause such Remedial Work to be performed. Borrower shall pay or reimburse the Agent on demand for all expenses (including reasonable attorneys’ fees and disbursements, but excluding internal overhead, administrative and similar costs of the
Lenders) reasonably relating to or incurred by the Agent in connection with monitoring, reviewing or performing any Remedial Work in accordance herewith. 
 (iii) Borrower shall not commence any Remedial Work under clause (i) above, nor enter into any settlement agreement, consent decree or other compromise relating to any Hazardous Substances or
Environmental Laws without providing notice to the Agent as provided in Section 5.1(f). Notwithstanding the foregoing, if the presence or threatened presence of Hazardous Substances on, under, about or emanating from the Mortgaged
Property poses an immediate threat to the health, safety or welfare of any Person or the environment, or is of such a nature that an immediate response is necessary or required under applicable Environmental Law, Borrower may complete all necessary
Remedial Work. In such events, Borrower shall notify Agent as soon as practicable and, in any event, within three Business Days, of any action taken. 
 (e) Environmental Matters: Inspection. 
 (i) Borrower shall not permit a
Hazardous Substance to be present on, under or to emanate from the Mortgaged Property, or migrate from adjoining property controlled by Borrower onto or into the Mortgaged Property, except under conditions permitted by applicable Environmental Laws
and, in the event that such Hazardous Substances are present on, under or emanate from the Mortgaged Property, or migrate onto or into the Mortgaged Property, Borrower shall cause the removal or remediation of such Hazardous Substances, in
accordance with this Agreement and Environmental Laws (including, where applicable, the National Contingency Plan promulgated pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42, U.S.C. § 9601 et seq.),
either on its own behalf or by causing a tenant or other party primarily at fault to perform such removal and remediation. Borrower shall use commercially reasonable efforts to prevent, and to seek the remediation of, any migration of Hazardous
Substances onto or into the Mortgaged Property from any adjoining property. 
 (ii) Upon reasonable prior written notice, the
Agent shall have the right, except as otherwise provided under Leases, at all reasonable times during normal business hours to enter upon and inspect all or any portion of the Mortgaged Property, provided that such inspections shall not
unreasonably interfere with the operation or the tenants, residents or occupants of the Mortgaged Property. If the Agent has reasonable grounds to suspect that Remedial Work may be required, the Agent shall notify Borrower and, thereafter, may
select a consulting Engineer to conduct and prepare reports of such inspections (with notice to Borrower prior to the commencement of such inspection). Borrower shall be given a reasonable opportunity to review any reports, data and other documents
or materials reviewed or prepared

  

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by the Engineer, and to submit comments and suggested revisions or rebuttals to same. The inspection rights granted to the Agent in this Section 5.1(e) shall be in addition to, and
not in limitation of, any other inspection rights granted to the Agent in this Agreement, and shall expressly include the right (if the Agent reasonably suspects that Remedial Work may be required) to conduct soil borings, establish ground water
monitoring wells and conduct other customary environmental tests, assessments and audits. 
 (iii) Borrower agrees to bear and
shall pay or reimburse the Lenders on demand for all sums advanced and reasonable expenses incurred (including reasonable attorneys’ fees and disbursements, but excluding internal overhead, administrative and similar costs of the Lenders)
reasonably relating to, or incurred by Lenders in connection with, the inspections and reports described in this Section 5.1(e) (to the extent such inspections and reports relate to the Mortgaged Property) in the following situations:

 (x) If the Agent has reasonable grounds to believe, at the time any such inspection is ordered, that there exists an
occurrence or condition that could lead to an Environmental Claim; 
 (y) If any such inspection reveals an occurrence or
condition that is reasonably likely to lead to an Environmental Claim; or 
 (z) If an Event of Default with respect to the
Mortgaged Property exists at the time any such inspection is ordered, and such Event of Default relates to any representation, covenant or other obligation pertaining to Hazardous Substances, Environmental Laws or any other environmental matter.

 (iv) Attached hereto as Schedule 2 is a true, correct and complete copy of the operations and maintenance plan to
operate and maintain the Mortgaged Property in compliance with Environmental Laws and in such a manner as to minimize the risks posed by such Hazardous Substances (including asbestos) as may exist at the Mortgaged Property (the “O&M
Plan”). Borrower shall at all times diligently implement the O&M Plan. The O&M Plan and its implementation shall be in all respects satisfactory to Agent in its reasonable discretion. 
 (f) Environmental Notices. Borrower shall promptly provide notice to Agent of: 
 (i) any Environmental Claim asserted by any Governmental Authority with respect to any Hazardous Substance on, in, under or emanating from
the Mortgaged Property, which might involve remediation cost or liability greater than $25,000; 
 (ii) any proceeding,
investigation or inquiry commenced or threatened in writing by any Governmental Authority, against Borrower, with respect to the presence, suspected presence, Release or threatened Release of Hazardous Substances from or onto, in or under any
property not owned by Borrower (including, without limitation, proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, 42 U.S.C. §9601, et seq.), which might involve remediation cost or
liability greater than $25,000; 
 (iii) all Environmental Claims asserted or threatened against Borrower, against any other
party occupying the Mortgaged Property or any portion thereof which become known to Borrower or against the Mortgaged Property, which might involve remediation cost or liability greater than $25,000; 
  

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 (iv) the discovery by Borrower of any occurrence or condition on the Mortgaged Property or
on any real property adjoining or in the vicinity of the Mortgaged Property which could involve remediation cost or liability greater than $25,000; 
 (v) the commencement or completion of any Remedial Work; and 
 (vi) any of the
foregoing clauses (i) – (v) that a tenant notifies to Borrower under a Lease with respect to such tenant. 
 (g)
Copies of Notices. Borrower shall transmit to the Agent copies of any citations, orders, notices or other written communications received from any Person and any notices, reports or other written communications submitted to any Governmental
Authority with respect to the matters described in Section 5.1(f). 
 (h) Environmental Claims. The Agent may join
and participate in, as a party if the Agent so determines, any legal or administrative proceeding or action concerning the Mortgaged Property or any portion thereof under any Environmental Law, if, in the Agent’s reasonable judgment, the
interests of the Lenders shall not be adequately protected by Borrower; provided, however, that the Lenders shall not participate in day-to-day decision making with respect to environmental compliance. Borrower shall pay or reimburse
the Lenders on demand for all reasonable sums advanced and reasonable expenses incurred (including reasonable attorneys’ fees and disbursements, but excluding internal overhead, administrative and similar costs of the Lenders) by the Lenders in
connection with any such action or proceeding. 
 (i) Environmental Indemnification. Borrower shall indemnify, reimburse,
defend, and hold harmless the Agent, each Lender, the Collateral Agent and each of its respective parents, subsidiaries, Affiliates, shareholders, directors, officers, employees, representatives, agents, successors, assigns and attorneys
(collectively, the “Indemnified Parties”) for, from, and against all demands, claims, actions or causes of action, assessments, losses, damages, liabilities, costs and expenses (including, without limitation, interest,
penalties, reasonable attorneys’ fees, disbursements and expenses, and reasonable consultants’ fees, disbursements and expenses (but excluding internal overhead, administrative, lost opportunity and similar costs of the Lenders and the
Collateral Agent)), asserted against, resulting to, imposed on, or incurred by any Indemnified Party, directly or indirectly, in connection with any of the following (except to the extent same are directly and solely caused by the gross negligence
or willful misconduct of any Indemnified Party and except that any Indemnified Party shall not be indemnified against claims resulting from actions taken or events occurring with respect to the Mortgaged Property after the Agent forecloses its Lien
or security interest upon the Mortgaged Property or accepts a deed in lieu of foreclosure or is a so-called “mortgagee-in-possession” unless and to the extent such indemnification relates to any of the following which occurred while
Borrower owned the Mortgaged Property): 
 (i) events, circumstances, or conditions which form the reasonable basis for an
Environmental Claim; 
  

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 (ii) any pollution or threat to human health or the environment that is related in any way
to Borrower’s or any previous owner’s or operator’s management, use, control, ownership or operation of the Mortgaged Property (including, without limitation, all on-site and off-site activities involving Hazardous Substances), and
whether occurring, existing or arising prior to or from and after the date hereof, and whether or not the pollution or threat to human health or the environment is described in the Environmental Reports; 
 (iii) any Environmental Claim against any Person whose liability for such Environmental Claim Borrower has or may have assumed or retained
either contractually or by operation of law; or 
 (iv) the breach of any representation, warranty or covenant set forth in
Section 4.2(e) and Sections 5.1(d) through 5.1(i), inclusive. 
 The provisions of and undertakings and
indemnification set forth in this Section 5.1(i) shall survive the satisfaction and payment of the Indebtedness and termination of this Agreement. 
 (j) General Indemnity. 
 (i) Borrower shall, at its sole cost and expense,
protect, defend, indemnify, release and hold harmless the Indemnified Parties for, from and against any and all claims, suits, liabilities (including, without limitation, strict liabilities), administrative and judicial actions and proceedings,
obligations, debts, damages, losses, costs, expenses, fines, penalties, charges, fees, expenses, judgments, awards, amounts paid in settlement, and litigation costs, of whatever kind or nature and whether or not incurred in connection with any
judicial or administrative proceedings (including, but not limited to, reasonable attorneys’ fees and other reasonable costs of defense) (the “Losses”) imposed upon or incurred by or asserted against any Indemnified
Parties (except to the extent same are directly and solely caused by the gross negligence or willful misconduct of any Indemnified Party) and directly or indirectly arising out of or in any way relating to any one or more of the following:

 (A) ownership of the Note, any of the other Loan Documents or the Mortgaged Property or any interest therein or receipt of any
Rents or Accounts; 
 (B) any untrue statement of any material fact contained in any information concerning Borrower, the
Mortgaged Property or the Loan or the omission to state therein a material fact required to be stated in such information or necessary in order to make the statements in such information or in light of the circumstances under which they were made
not misleading; 
 (C) any and all lawful action that may be taken and is taken by the Lender in connection with the enforcement
of the provisions of this Agreement, the Note or any of the other Loan Documents, whether or not suit is filed in connection with same, or in connection with Borrower or any Affiliate of Borrower becoming a party to a voluntary or involuntary
federal or state bankruptcy, insolvency or similar proceeding; 
  

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 (D) any accident, injury to or death of persons or loss of or damage to property occurring
in, on or about the Mortgaged Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; 
 (E) any use, nonuse or condition in, on or about the Mortgaged Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; 

(F) any failure on the part of Borrower to perform or be in compliance with any of the terms of this Agreement or any of the other Loan
Documents; 
 (G) performance of any labor or services or the furnishing of any materials or other property in respect of the
Mortgaged Property or any part thereof pursuant to provisions of this Agreement; 
 (H) the failure of Borrower to file timely
with the Internal Revenue Service an accurate Form 1099-B, Statement for Recipients of Proceeds from Real Estate, Broker and Barter Exchange Transactions, which may be required in connection with this Agreement; 
 (I) any failure of the Mortgaged Property to be in compliance with any Legal Requirement; 
 (J) the enforcement by any Indemnified Party of the provisions of this Section 5.1(j); and 
 (K) any and all claims and demands whatsoever which may be asserted against the Lenders by reason of any alleged obligations or undertakings
on its part to perform or discharge any of the terms, covenants, or agreements contained in any Lease. 
 Any amounts payable to an Indemnified
Party by reason of the application of this Section 5.1(j)(i) shall become due and payable ten (10) days after written demand and shall bear interest at the Default Rate from the tenth (10th) day after demand until paid. 

(ii) Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties from and
against any and all Losses imposed upon or incurred by or asserted against any of the Indemnified Parties and directly or indirectly arising out of or in any way relating to any tax on the making and/or recording of this Agreement, the Note or any
of the other Loan Documents. 
 (iii) Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold
harmless the Indemnified Parties from and against any and all Losses (including, without limitation, reasonable attorneys’ fees and costs incurred in the investigation, defense, and settlement of Losses incurred in correcting any prohibited
transaction or in the sale of a prohibited loan, and in obtaining any individual prohibited transaction exemption under ERISA that may be required, in the Lender’s reasonable discretion) that the Indemnified Parties may incur, directly or
indirectly, as a result of a default under Borrower’s covenants with respect to ERISA and employee benefits plans contained herein. 
  

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 (iv) Promptly after receipt by an Indemnified Party under this Section 5.1(j) of
notice of the making of any claim or the commencement of any action, such Indemnified Party shall, if a claim in respect thereof is to be made by such Indemnified Party against Borrower under this Section 5.1(j), notify Borrower in
writing, but the omission so to notify Borrower will not relieve Borrower from any liability which it may have to any Indemnified Party under this Section 5.1(j) or otherwise unless and to the extent that Borrower did not otherwise
possess knowledge of such claim or action and such failure resulted in the forfeiture by Borrower of substantial rights and defenses. In case any such claim is made or action is brought against any Indemnified Party and such Indemnified Party seeks
or intends to seek indemnity from Borrower, Borrower will be entitled to participate in, and, to the extent that it may wish, to assume the defense thereof with counsel reasonably satisfactory to the Indemnified Party; and, upon receipt of notice
from Borrower to such Indemnified Party of its election so to assume the defense of such claim or action and only upon approval by the Indemnified Party of such counsel (such approval not to be unreasonably withheld or delayed), Borrower will not be
liable to such Indemnified Party under this Section 5.1(j) for any legal or other expenses subsequently incurred by such Indemnified Party in connection with the defense thereof. Notwithstanding the preceding sentence, each Indemnified
Party will be entitled to employ counsel separate from such counsel for Borrower and from any other party in such action if such Indemnified Party reasonably determines that a conflict of interest exists which makes representation by counsel chosen
by Borrower not advisable. In such event, Borrower shall pay the reasonable fees and disbursements of such separate counsel, subject to reimbursement of such costs if the Indemnified Party requiring such separate counsel is found not to be entitled
to the indemnity protection of this Section 5.1(j). Borrower shall not, without the prior written consent of an Indemnified Party, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened
claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not such Indemnified Party is an actual or potential party to such claim or action) unless such settlement, compromise or consent includes an
unconditional release of each Indemnified Party from all liability arising out of such claim, action, suit or proceeding. Each Indemnified Party shall not enter into a settlement of or consent to the entry of any judgment with respect to any action,
claim, suit or proceeding as to which an Indemnified Party would be entitled to indemnification hereunder without the prior written consent of Borrower. 
 The provisions of and undertakings and indemnification set forth in this Section 5.1(j) shall survive the satisfaction and payment of the Indebtedness and termination of this Agreement.

 (k) Access to Mortgaged Property. Borrower shall permit agents, representatives and employees of the Agent to inspect
the Mortgaged Property or any part thereof at such reasonable times as may be requested by Agent upon reasonable advance written notice, subject, however, to the rights of Borrower and of the tenants of the Mortgaged Property. 
 (l) Notice of Default. Borrower shall promptly advise Agent in writing of any change in Borrower’s condition, financial or
otherwise, that is reasonably likely to have a Material Adverse Effect, or of the occurrence of any Default or Event of Default. 
 (m) Cooperate in Legal Proceedings. Except with respect to any claim by Borrower, Senior Mezzanine Borrower, Junior Mezzanine Borrower, the Guarantor or any of their

  

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Affiliates against the Agent or any Lender, Borrower shall reasonably cooperate with Agent with respect to any proceedings before any Governmental Authority that are reasonably likely to in any
way materially affect the rights of the Lenders hereunder or any rights obtained by the Lenders under any of the Loan Documents and, in connection therewith, shall not prohibit Agent, at its election, from participating in any such proceedings.

 (n) Perform Loan Documents. Borrower shall observe, perform and satisfy all the terms, provisions, covenants and
conditions required to be observed, performed or satisfied by it, and shall pay when due all costs, fees and expenses required to be paid by it, under the Loan Documents. 
 (o) Insurance Benefits. Borrower shall reasonably cooperate with Agent in obtaining for the Lenders the benefits of any Insurance Proceeds lawfully or equitably payable to Borrower or Lenders in
connection with the Mortgaged Property. Agent shall be reimbursed for any expenses reasonably incurred in connection therewith (including reasonable attorneys’ fees and disbursements, but excluding internal overhead, administrative and similar
costs of Agent) out of such Insurance Proceeds, all as more specifically provided in this Agreement. 
 (p) Further
Assurances. Borrower shall, at Borrower’s sole cost and expense: 
 (i) upon Agent’s reasonable request therefor
given from time to time, pay for (a) reports of UCC, tax lien, judgment and litigation searches with respect to Borrower, and (b) searches of title to the Mortgaged Property, each such search to be conducted by search firms designated by
Agent in each of the locations designated by Agent; 
 (ii) furnish to Agent all instruments, documents, certificates, title and
other insurance reports and agreements, and each and every other document, certificate, agreement and instrument required to be furnished pursuant to the terms of the Loan Documents; 
 (iii) execute and deliver to Agent such documents, instruments, certificates, assignments and other writings, and do such other acts
necessary, to evidence, preserve and/or protect the Collateral at any time securing or intended to secure the Note, as Agent may reasonably require (including, without limitation, tenant estoppel certificates, an amended or replacement Mortgage, UCC
financing statements or Collateral Security Instruments); and 
 (iv) do and execute all and such further lawful and reasonable
acts, conveyances and assurances for the better and more effective carrying out of the intents and purposes of this Agreement and the other Loan Documents, as Agent shall reasonably require from time to time. 
 (q) Management of Mortgaged Property. 
 (i) The Mortgaged Property shall be managed at all times by the Manager or another manager reasonably satisfactory to Agent, pursuant to a Management Agreement. Any such manager may be an Affiliate of
Borrower, provided that: (a) the terms and conditions of such manager’s engagement are at arm’s length, reasonable, competitive and customary in the applicable marketplace; and (b) Agent has approved such manager and such terms,
which approval shall not be unreasonably withheld or delayed. Borrower shall cause the manager of 
  

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the Mortgaged Property to agree that such manager’s management agreement is subject and subordinate in all respects to the Lien of the Mortgage. A Management Agreement may be terminated
(1) by Borrower at any time in accordance with the provisions of such Management Agreement so long as a successor manager as specified below shall have been appointed and such successor manager has (i) entered into a Management Agreement,
subject to any modifications approved by Agent, which approval shall not be unreasonably denied, conditioned or delayed, and (ii) has executed and delivered the Manager’s Subordination to Agent, and (2) by Agent upon thirty (30)
days’ prior written notice to Borrower and the Manager (a) upon the occurrence and continuation of an Event of Default or (b) if the Manager commits any act which would permit termination under the Management Agreement (subject to any
applicable notice, grace and cure periods provided in the Management Agreement) or (c) if a change of majority control occurs with respect to the Manager. Borrower may from time to time appoint a successor manager to manage the Mortgaged
Property with Agent’s prior written consent, such consent not to be unreasonably withheld. Notwithstanding the foregoing, any successor manager selected hereunder by Agent or Borrower to manage the Mortgaged Property shall be a reputable
management company having substantial experience in the management of real property of a similar type, size and quality in the state in which the Mortgaged Property is located. Notwithstanding anything herein to the contrary, if the Loan has been
included in a Secondary Market Transaction in which Securities are issued, neither the Agent or Borrower shall appoint a successor or replacement manager, without first having obtained a Rating Confirmation. Borrower further covenants and agrees
that any manager of Mortgaged Property shall at all times while any Indebtedness is outstanding maintain worker’s compensation insurance as required by Governmental Authorities. 
 (ii) Borrower further covenants and agrees that the Mortgaged Property shall be operated pursuant to the Management Agreement and that
Borrower shall: (w) promptly perform and/or observe all of the material covenants and agreements required to be performed and observed by it under the Management Agreement and do all things reasonably necessary to preserve and to keep
unimpaired its material rights thereunder; (x) promptly notify the Agent of any material default under the Management Agreement of which it is aware; (y) promptly deliver to the Agent a copy of each financial statement, business plan,
capital expenditures plan, notice and report received by it under the Management Agreement, including, but not limited to, financial statements; and (z) promptly enforce the performance and observance of the covenants and agreements required to
be performed and/or observed by the Manager under the Management Agreement. 
 (r) Financial Reporting. 
 (i) Borrower shall keep and maintain or shall cause to be kept and maintained on a Fiscal Year basis in accordance with GAAP consistently
applied, books, records and accounts reflecting in reasonable detail all of the financial affairs of Borrower and all items of income and expense in connection with the operation of the Mortgaged Property and ownership of the Mortgaged Property and
in connection with any services, equipment or furnishings provided in connection with the operation of the Mortgaged Property, whether such income or expense may be realized by Borrower or by any other Person whatsoever. Agent shall have the right
from time to time at all times during normal business hours upon reasonable prior written notice to Borrower to examine such books, records and accounts at the office of Borrower or

  

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other Person maintaining such books, records and accounts and to make such copies or extracts thereof as Agent shall desire. During the continuation of an Event of Default (including, without
limitation, an Event of Default resulting from the failure of the Borrower to deliver any of the financial information required to be delivered pursuant to this Section 5.1(r)), Borrower shall pay any reasonable costs and expenses
incurred by Agent to examine Borrower’s accounting records, as Agent shall reasonably determine to be necessary or appropriate in the protection of the Lenders’ interest. 
 (ii) Borrower shall furnish to Agent annually, within ninety (90) days following the end of each Fiscal Year, a complete copy of
TPG/CALSTRS’ financial statements audited by a “Big Four” accounting firm or such other Independent certified public accountant acceptable to Agent in accordance with GAAP consistently applied covering TPG/CALSTRS’ financial
position and results of operations, for such Fiscal Year and containing a statement of revenues and expenses, a statement of assets and liabilities and a statement of TPG/CALSTRS’ equity, all of which shall be in form and substance reasonably
acceptable to Agent. Such audited financial statements shall include a supplementary schedule presenting a condensed consolidating statement of revenues and expenses and a statement of assets and liabilities of TPG/CALSTRS, and shall include the
statement of revenues and expenses and statement of assets and liabilities of Borrower. Agent shall have the right from time to time to review and consult with respect to the auditing procedures used in the preparation of such annual financial
statements. Together with TPG/CALSTRS’ annual financial statements, Borrower shall furnish to Agent an Officer’s Certificate certifying as of the date thereof (x) that the annual financial statements present fairly in all material
respects the results of operations and financial condition of TPG/CALSTRS all in accordance with GAAP consistently applied, and (y) whether there exists an Event of Default or Default, and if such Event of Default or Default exists, the nature
thereof, the period of time it has existed and the action then being taken to remedy same. 
 (iii) Borrower shall furnish to
Agent, within sixty (60) days following the end of each Fiscal Year quarter true, complete and correct quarterly unaudited financial statements prepared with respect to Borrower for the fiscal quarter then ended, accompanied by an
Officer’s Certificate certifying that such financial statements are true, complete and correct. 
 (iv) Borrower shall
furnish to Agent, within fifteen (15) Business Days after request, such further information with respect to the operation of the Mortgaged Property and the financial affairs of Borrower as may be reasonably requested by Agent, including all
business plans prepared for Borrower. 
 (v) Borrower shall furnish to Agent, within fifteen (15) Business Days after
request, such further information regarding any Plan or Multiemployer Plan and any reports or other information required to be filed under ERISA as may be reasonably requested by Agent in writing. 
 (vi) At least thirty (30) days prior to the end of each of Borrower’s Fiscal Years, Borrower shall submit or cause to be submitted
to Agent for its approval, such approval not to be unreasonably withheld or delayed, an Operating Budget for the next Fiscal Year for the Mortgaged Property. Until so approved by Agent for the subsequent Fiscal Year, the Operating Budget approved by
Agent for the preceding Fiscal Year shall remain in effect for purposes of

  

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 Section 2.12; provided, that for so long as such prior Operating Budget remains in
effect, amounts set forth in the prior Operating Budget with respect to Property Expenses shall be deemed increased on a percentage basis by an amount equal to the greater of (x) actual increases then known to Borrower and (y) the increase
in the Consumer Price Index (expressed as a percentage) as measured over the calendar year that the prior Operating Budget was in effect. No more often that once per fiscal quarter, Borrower may submit an amendment to an Operating Budget during the
Fiscal Year covered by such Operating Budget. If Agent does not respond to Borrower’s request for approval of a new or amended Operating Budget within ten (10) days after Agent’s receipt of such request, Borrower may send a second
request for approval. Such second request shall contain on the face thereof, in large, bold and otherwise conspicuous font, the following notice: “TIME SENSITIVE BUDGET APPROVAL REQUEST. AGENT’S FAILURE TO RESPOND TO THIS REQUEST WITHIN
TEN (10) DAYS AFTER AGENT’S RECEIPT OF THE SAME SHALL BE DEEMED AN APPROVAL BY AGENT.” Provided that Borrower’s second request contains the above notice, Agent’s failure to respond to such request within ten
(10) days after receipt of such second notice shall be deemed an approval by Agent. 
 (s) Operation of Mortgaged
Property. Borrower shall cause the operation of the Mortgaged Property to be conducted at all times in a manner consistent with at least the level of operation of the Mortgaged Property as of the Closing Date, including, without limitation, the
following: 
 (i) to maintain or cause to be maintained the standard of the Mortgaged Property at all times at a level not lower
than that maintained by prudent managers of similar facilities or land in the region where the Mortgaged Property is located; 
 (ii) to operate or cause to be operated the Mortgaged Property in a prudent manner in compliance in all material respects with applicable Legal Requirements and Insurance Requirements relating thereto and maintain or cause to be maintained
all licenses, Permits and any other agreements necessary for the continued use and operation of the Mortgaged Property; and 
 (iii) to maintain or cause to be maintained sufficient Inventory and Equipment of types and quantities at the Mortgaged Property to enable Borrower to operate the Mortgaged Property and to comply in all material respects with all Leases
affecting the Mortgaged Property. 
 (t) Single-Purpose Entity. 
 (i) Borrower at all times will continue to be a duly formed and validly existing limited liability company under the laws of the State of its
formation and a Single-Purpose Entity. 
 (ii) Borrower shall at all times comply with the provisions of its Organizational
Agreement and the laws of the State of its formation relating to limited liability companies. 
 (iii) Borrower shall observe all
customary formalities regarding its existence. 
  

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 (iv) Borrower shall accurately maintain its financial statements, accounting records and
other limited liability company documents separate from those of its members, Affiliates of its members and any other Person. Borrower shall not commingle its assets with those of its members, any Affiliates of its members, or any other Person.
Borrower shall continue to accurately maintain its own bank accounts and separate books of account. 
 (v) Borrower shall
continue to pay its own liabilities from its own separate assets. 
 (vi) Borrower shall continue to identify itself in all
dealings with the public, under its own name or trade names and as a separate and distinct entity. Borrower shall not identify itself as being a division or a part of any other entity. Borrower shall not identify its members or any Affiliates of its
members as being a division or part of Borrower. 
 (vii) Borrower shall continue to be adequately capitalized in light of the
nature of its business. 
 (viii) Borrower shall not assume or guarantee the liabilities of its members (or any predecessor
entity), any Affiliates of its members or any other Persons, except for liabilities relating to the Mortgaged Property. Borrower shall not acquire obligations or securities of its members (or any predecessor entity), or any Affiliates of its members
or any other Persons. Except for the Liens granted pursuant to the Loan Documents, Borrower shall not pledge its assets for the benefit of any other Person (other than the Agent) or make loans or advances to its members (or any predecessor entity),
or any Affiliates of its members or any other Persons. 
 (ix) Borrower shall not enter into or be a party to any transaction
with its members (or any predecessor corporation, partnership or limited liability company) or any Affiliates of its members, except for in the ordinary course of business on terms which are no less favorable to Borrower than would be obtained in a
comparable arm’s length transaction with an unrelated third party (other than in connection with the execution by Borrower and the Manager of the Management Agreement). 
 (u) ERISA. Borrower shall deliver to Agent as soon as possible, and in any event within ten days after Borrower knows or has reason
to believe that any of the events or conditions specified below with respect to any Plan or Multiemployer Plan has occurred or exists, an Officer’s Certificate setting forth details respecting such event or condition and the action, if any,
that Borrower or its ERISA Affiliate proposes to take with respect thereto (and a copy of any report or notice required to be filed with or given to PBGC by Borrower or an ERISA Affiliate with respect to such event or condition): 
 (i) any reportable event, as defined in Section 4043(b) of ERISA and the regulations issued thereunder, with respect to a Plan, as to
which PBGC has not by regulation waived the requirement of Section 4043(a) of ERISA that it be notified within thirty (30) days of the occurrence of such event (provided that a failure to meet the minimum funding standard of
Section 412 of the Code or Section 302 of ERISA, including, without limitation, the failure to make on or before its due date a required installment under Section 412(m) of the Code or Section 302(e) of ERISA, shall be a
reportable event regardless of the issuance of any waivers in accordance with Section 412(d) of the Code); and any request for a waiver under Section 412(d) of the Code for any Plan; 
  

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 (ii) the distribution under Section 4041(c) of ERISA of a notice of intent to terminate
any Plan or any action taken by Borrower or an ERISA Affiliate to terminate any Plan; 
 (iii) the institution by PBGC of
proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by Borrower or any ERISA Affiliate of Borrower of a notice from a Multiemployer Plan that such action has
been taken by PBGC with respect to such Multiemployer Plan; 
 (iv) the complete or partial withdrawal from a Multiemployer Plan
by Borrower or any ERISA Affiliate of Borrower that results in material liability under Section 4201 or 4204 of ERISA (including the obligation to satisfy secondary liability as a result of a purchaser default) or the receipt by Borrower or any
ERISA Affiliate of Borrower of notice from a Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA or that it intends to terminate or has terminated under Section 4041A of ERISA;

 (v) the institution of a proceeding by a fiduciary of any Multiemployer Plan against Borrower or any ERISA Affiliate of
Borrower to enforce Section 515 of ERISA, which proceeding is not dismissed within thirty (30) days; 
 (vi) the
adoption of an amendment to any Plan that, pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA, would result in the loss of tax-exempt status of the trust of which such Plan is a part if Borrower or an ERISA Affiliate of
Borrower fails to timely provide security to the Plan in accordance with the provisions of said Sections; and 
 (vii) the
imposition of a lien or a security interest in connection with a Plan. 
 (v) Reserved. 
 (w) Secondary Market Transaction. 
 (i) Borrower acknowledges that Agent and its successors and assigns may (A) sell the Loan to one or more investors as a whole loan, (B) participate the Loan to one or more investors,
(C) deposit the Loan with a trust, which trust may sell certificates to investors evidencing an ownership interest in the trust assets, or (D) otherwise sell the Loan or interest therein to investors (the transactions referred to in
clauses (A) through (D) above are hereinafter each referred to as a “Secondary Market Transaction”). Borrower shall cooperate with Agent in attempting to effect or effecting any such Secondary Market
Transaction and shall cooperate in attempting to implement or implementing all requirements imposed by any Rating Agency involved in any Secondary Market Transaction, including but not limited to, 
 (A) providing Agent an estoppel certificate and such information, legal opinions and documents (including updated non-consolidation opinions)
relating to Borrower, the Guarantor, Senior Mezzanine Borrower, Junior Mezzanine Borrower, the Mortgaged Property and any tenants of the Mortgaged Property as Agent or the Rating Agencies or other Interested Parties (as defined below), may
reasonably request in connection with such Secondary

  

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Market Transaction, including, without limitation, updated financial information, appraisals, market studies, environmental reviews (Phase I’s and, if appropriate, Phase II’s),
Mortgaged Property condition reports and other due diligence investigations together with appropriate verification of such updated information and reports through letters of auditors and consultants, as of the closing date of the Secondary Market
Transaction, 
 (B) amending the Loan Documents and Organizational Agreement of Borrower, updating and/or restating
officer’s certificates, title insurance and other closing items, and providing updated representations and warranties in Loan Documents and such additional representations and warranties as may be required by Agent or the Rating Agencies,
(including, without limitation, amending Section 5.1(z)(ii) of this Agreement to establish the size of proposed Lease which requires the prior written consent of the Agent, provided such threshold shall not be more restrictive to
Borrower than the standard set forth in the Senior Mezzanine Loan Agreement or the Junior Mezzanine Loan Agreement), 
 (C)
participating in bank, investors and Rating Agencies’ meetings if requested by Agent, 
 (D) upon Agent’s request,
amending the Loan Documents (and updating and/or restating officer’s certificates, title insurance and other closing items in connection therewith) to divide the Loan into a first and a second mortgage loan, or into a one or more loans secured
by mortgages and by ownership interests in Borrower in whatever proportion Agent determines, which separated loans may have different interest rates and amortization schedules (but with aggregated financial terms which are equivalent to that of the
Loan prior to such separation, including, so long as an Event of Default has not occurred and is not continuing, a ratable allocation of prepayments among the Loan components) and thereafter to engage in separate Secondary Market Transactions with
respect to all or any part of the indebtedness and loan documentation, and 
 (E) reviewing the offering documents relating to
any Secondary Market Transaction to ensure that all information concerning Borrower, the Guarantor, the Mortgaged Property, and the Loan is correct, and certifying to the accuracy thereof. 
 (ii) Borrower covenants and agrees that in connection with any Secondary Market Transaction, upon Agent’s request, Borrower shall
deliver one or more new component notes to replace the original note or modify the original note to reflect multiple components of the Loan or create one or more mezzanine loans (including amending Borrower’s organizational structure to provide
for one or more mezzanine borrowers) (each a “Resizing Event”). Agent agrees that such new notes or modified note or mezzanine notes shall immediately after the Resizing Event have the same initial weighted average coupon as
the original note prior to such Resizing Event, notwithstanding that such new notes or modified note or mezzanine notes or may, in connection with the application of principal to such new notes or modified note or mezzanine notes, subsequently cause
the weighted average spread of such new notes or modified note or mezzanine notes to change and apply principal, interest rates and amortization of the Loan between such new components and/or mezzanine loans in a manner specified by Agent in its
sole discretion such that the pricing and marketability of the Securities and the size of each class of Securities and the rating assigned to each such class by the Rating Agencies shall

  

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provide the most favorable rating levels and achieve the optimum bond execution for the Loan. In connection with any Resizing Event, Borrower covenants and agrees to modify the cash management
provisions of this Agreement and/or resize the interest rate cap agreement with respect to the newly created components and/or mezzanine loans. 
 (iii) Agent shall be permitted to share all such information with the investment banking firms, Rating Agencies, accounting firms, law firms and other third-party advisory firms and trustees, purchasers,
transferees, assignees, trustees, servicers and actual or potential investors involved with the Loan and the Loan Documents or the applicable Secondary Market Transaction (collectively, “Interested Parties”). Lender and all
of the aforesaid Interested Parties shall be entitled to rely on the information supplied by, or on behalf of, Borrower. Lender may publicize the existence of the Loan in connection with its marketing for a Secondary Market Transaction or otherwise
as part of its business development. Borrower shall provide such reasonable access to the Mortgaged Property and personnel of the Manager and of Borrower’s constituent members and the business and operations of all of the foregoing as Lender or
other Interested Parties may request in connection with any such Secondary Market Transaction. Borrower understands that any such information may be incorporated into any offering circular, prospectus, prospectus supplement, private placement
memorandum or other offering documents for any Secondary Market Transaction. Without limiting the foregoing, Borrower and Guarantor shall provide in connection with each of (A) a preliminary and a final private placement memorandum or
(B) a preliminary and final prospectus or prospectus supplement, as applicable (the documents referred to in the foregoing clauses (A) and (B), collectively, the “Disclosure Documents”), an agreement certifying that
Borrower and Guarantor have examined such Disclosure Documents specified by Agent and that each such Disclosure Document, as it relates to Borrower, Guarantor, any Affiliates, the Mortgaged Property and Manager, does not contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading (a “Disclosure Certificate”). Borrower and
Guarantor shall indemnify, defend, protect and hold harmless Agent, each Lender, its Affiliates, directors, employees, agents and each Person, if any, who controls Agent, such Lender or any such Affiliate within the meaning of Section 15 of the
Securities Act of 1933 or Section 20 of the Securities Exchange Act of 1934, and any other placement agent or underwriter with respect to any Secondary Market Transaction from and against any losses, claims, damages, liabilities, costs and
expenses (including, without limitation, reasonable attorneys’ fees and disbursements) that arise out of or are based upon any untrue statement of any material fact contained in any Disclosure Certificate or other information or documents
furnished by Borrower, Guarantor or their Affiliates or in any representation or warranty of any Borrower contained herein or in the other Loan Documents or arise out of or are based upon the omission or alleged omission to state therein a material
fact required to be stated in such information or necessary in order to make the statements in such information not materially misleading. In any Secondary Market Transaction, Agent may transfer its obligations under this Loan Agreement and under
the other Loan Documents (or may transfer the portion thereof corresponding to the transferred portion of the Indebtedness), and thereafter Agent shall be relieved of any obligations hereunder and under the other Loan Documents arising after the
date of said transfer with respect to the transferred interest. Each transferee investor shall become a “Lender” hereunder. The holders from time to time of the Loan and/or any other interest of the “Lender” under this Loan
Agreement and the other Loan Documents may from time to time enter into one or more co-lender or similar

  

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agreements in their discretion. Borrower acknowledges and agrees that such agreements, as the same may from time to time be amended, modified or restated, may govern the exercise of the powers
and discretionary authority of the Agent hereunder and under the other Loan Documents, but Borrower shall be entitled to rely upon any actions taken by Agent or the designated servicer(s) or agent(s) for Agent, whether or not within the scope of its
power and authority under such other agreements. The Agent shall be responsible for the payment of the reasonable out-of-pocket expenses incurred by the Borrower in complying with this Section 5.1(w). 
 (x) Insurance. 
 (i) Borrower, at its sole cost and expense, shall keep the Improvements and Equipment insured (including, but not limited to, any period of renovation, alteration and/or construction) during the term of the Loan with the coverage and in the
amounts required under this Agreement for the mutual benefit of Borrower and Agent against loss or damage by fire, lightning, wind and such other perils as are customarily included in a standard “all-risk” form and against loss or damage
by other risks and hazards covered by a standard extended coverage insurance policy (including, without limitation, riot and civil commotion, vandalism, malicious mischief and such other coverages as may be reasonably required by Agent on the
special form (also known as an all risk form)). Such insurance shall be in an amount (i) equal to at least the greater of then full replacement cost of the Improvements and Equipment (exclusive of the cost of foundations and footings), without
deduction for physical depreciation and the outstanding Principal Indebtedness, and (ii) such that the insurer would not deem Borrower a co-insurer under said policies. The policies of insurance carried in accordance with this
Section 5.1(x) shall contain the “Replacement Cost Endorsement” with a no co-insurance provision. If terrorism coverage is excluded on an “all-risk” basis, then Borrower shall obtain coverage for “certified acts
of terrorism” (as defined in TRIA) and “fire following” by endorsement to such policy or by a separate policy in the standalone terrorism market. Such terrorism coverage shall be in an amount equal to the lesser of (A) the sum of
the Principal Indebtedness, the Senior Mezzanine Loan Principal Indebtedness and the Junior Mezzanine Loan Principal Indebtedness, and (B) the amount of terrorism insurance coverage that Borrower can purchase (using reasonably diligent efforts)
for an annual premium equal to the Terrorism Premium Cap. If terrorism coverage is obtained, in whole or in part, through a blanket policy, then, with respect to the blanket policy, the premium to be used in determining the amount of coverage that
is required under clause (B) above shall be the portion of such blanket policy premium allocable to the Mortgaged Property as reasonably determined by Borrower (and reasonably approved by Lender). By way of example, if Borrower has $250
million of terrorism insurance coverage on the Mortgaged Property carried under a blanket insurance policy with an insurance premium equal to $750,000 per year (of which $350,000 is allocable to the Mortgaged Property as reasonably determined by
Borrower (and reasonably approved by Lender)), then although it may cost Borrower an additional $450,000 to purchase the full amount of terrorism insurance required under clause (A) above, because of the limitation under clause
(B) above, Borrower would only be required to expend an additional $425,000 to obtain whatever additional terrorism insurance is available for that premium. Notwithstanding the foregoing, Agent shall not unreasonably withhold its consent to
reductions in the stated amounts and types of coverage required to be maintained by Borrower hereunder if such levels of coverage or types of insurance (A) are not available at commercially reasonable rates (except for terrorism coverage, for
which Borrower agrees that premiums for terrorism coverage not in excess of the Terrorism Premium Cap are commercially reasonable), and (B) are not at the time commonly maintained for properties similar to the Mortgaged Property and located in
or around the region in which the Mortgaged Property is located. 
  

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 (ii) Borrower, at its sole cost and expense, for the mutual benefit of Borrower and Agent,
shall also obtain and maintain or cause to be obtained and maintained during the entire term of the Loan the following policies of insurance: 
 (A) flood insurance, if any part of the Mortgaged Property is located in an area identified by the Federal Emergency Management Agency as an area having special flood hazards and in which flood insurance
has been made available under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994 (and any amendment or successor act thereto) in an amount at least equal to the
maximum limit of coverage available with respect to the Improvements and Equipment under said Act; 
 (B) Comprehensive General
Liability or Commercial General Liability insurance, including a broad form comprehensive general liability endorsement and coverage for broad form property damage, contractual damages, personal injuries (including death resulting therefrom) and a
liquor liability endorsement if liquor is sold by Borrower on the Mortgaged Property, containing minimum limits of liability of $1 million for both injury to or death of a person and for property damage per occurrence and $2 million in the aggregate
for the Mortgaged Property, and such other liability insurance reasonably requested by Agent; in addition, at least $75 million excess and/or umbrella liability insurance shall be obtained and maintained for any and all claims, including all legal
liability imposed upon Borrower and all court costs and attorneys’ fees incurred in connection with the ownership, operation and maintenance of the Mortgaged Property; 
 (C) business interruption insurance (including rental value) in an annual aggregate amount equal to the estimated gross revenues from the
Leases of the Mortgaged Property (including, without limitation, the loss of all Rents and additional Rents payable by all of the lessees under the Leases (whether or not such Leases are terminable in the event of a fire or casualty)), such
insurance to cover losses for a period of the longer of (x) one year (or, if the Loan has been included in a Secondary Market Transaction in which Securities are issued and the Rating Agencies so require, eighteen (18) months) after
the date of the fire or casualty in question or (y) the period from the time of loss until all repairs are fully completed with reasonable diligence and dispatch, plus an extended period of indemnity commencing at the time repairs are completed
for a period of not less than 180 days and to be increased or decreased, as applicable, from time to time during the term of the Loan if, and when, the gross revenues from the Leases of the Mortgaged Property materially increase or decrease, as
applicable (including, without limitation, increases from new Leases and renewal Leases entered into in accordance with the terms of this Agreement), to reflect all increased Rent and increased additional Rent payable by all of the lessees under
such renewal Leases and all Rent and additional Rent payable by all of the lessees under such new Leases; 
 (D) insurance
against loss or damage from (x) leakage of sprinkler systems and (y) explosion of steam boilers, air conditioning equipment, high pressure piping, machinery and equipment, pressure vessels or similar apparatus now or hereafter installed in
the

  

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Improvements (without exclusion for explosions), covering all boilers or other pressure vessels, machinery and equipment located in, on, or about the Improvements; coverage is required in an
amount at least equal to the full replacement cost of such equipment and the building or buildings housing same and shall extend to electrical equipment, sprinkler systems, heating and air conditioning equipment, refrigeration equipment and piping;

 (E) worker’s compensation insurance coverage (in amounts not less than the statutory minimums for all persons employed by
Borrower or its tenants at the Mortgaged Property and in compliance with all other requirements of applicable local, state and federal law) and “Employers Liability” insurance in an amount not less than $1,000,000; 
 (F) during any period of repair or restoration, builder’s “all risk” insurance in an amount equal to not less than the full
insurable value of the Mortgaged Property against such risks (including, without limitation, fire and extended coverage and collapse of the Improvements to agreed limits) as Agent may request, in form and substance acceptable to Agent; 

(G) ordinance or law coverage to compensate for the cost of demolition, increased cost of construction, and loss to any undamaged portions
of the Improvements, if the current use of the Mortgaged Property or the Improvements themselves are or become “nonconforming” pursuant to the applicable zoning regulations, or full rebuildability following casualty is otherwise not
permitted under such zoning regulations; 
 (H) if required by Agent as a result of the Mortgaged Property being located in an
area with a high degree of seismic activity, earthquake damage insurance; and 
 (I) such other insurance as may from time to
time be reasonably required by Agent in order to protect its interests with respect to the Loan and the Mortgaged Property and to conform such requirements to then current standards for a Secondary Market Transaction in which Securities are issued.

 (iii) All policies of insurance (the “Policies”) required pursuant to this Section 5.1(x):

 (A) shall be issued by an insurer approved by Agent which has a claims paying ability rating of not less than “A-”
(or the equivalent) by Rating Agencies satisfactory to Agent (one of which shall be Standard & Poor’s Ratings Group) and A-:VII or better as to claims paying ability by AM Best; provided, however, that as respects the
Property insurance program, a minimum of 60% of the policy limits will be provided by carriers rated not less than “A-” (with no rating less then “BBB” unless an exception is consented to by Lender with such consent not to be
unreasonably withheld, 
 (B) shall name Agent as an additional insured and contain a standard noncontributory mortgagee clause
and a Agent’s Loss Payable Endorsement, or their equivalents, naming Agent (and/or such other party as may be designated by Agent) as the party to which all payments made by such insurance company shall be paid,

  

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 (C) shall be maintained throughout the term of the Loan without cost to Agent, 

(D) shall contain such provisions as Agent deems reasonably necessary or desirable to protect its interest (including, without limitation,
endorsements providing that neither Borrower, Agent nor any other party shall be a co-insurer under said Policies and that Borrower shall endeavor to provide at least thirty (30) days prior written notice of any modification, reduction or
cancellation), 
 (E) shall contain a waiver of subrogation against Agent, 
 (F) shall be for a term of not less than one year, 
 (G) shall be issued by an insurer licensed in the state in which the Mortgaged Property is located, 
 (H) shall provide that Agent may, but shall not be obligated to, make premium payments to prevent any cancellation, endorsement, alteration or reissuance, and such payments shall be accepted by the
insurer to prevent same, and 
 (I) shall be reasonably satisfactory in form and substance to Agent and reasonably approved by
Agent as to amounts, form, risk coverage, deductibles, loss payees and insureds to the extent not otherwise specified in this Section 5.1(x). 
 Copies of said Policies, certified as true and correct by Borrower, or insurance certificates thereof, shall be delivered to Agent. At the expiration of each of the Policies, Borrower shall deliver to
Agent satisfactory evidence of the renewal of each Policy as soon as possible. The insurance coverage required under this Section 5.1(x) may be effected under a blanket policy or policies covering the Mortgaged Property and other
property and assets not constituting a part of the Collateral; provided that any such blanket policy shall provide at least the same amount and form of protection as would a separate policy insuring the Mortgaged Property individually, which
amount shall not be less than the amount required pursuant to this Section 5.1(x) and which shall in any case comply in all other respects with the requirements of this Section 5.1(x). Upon demand therefor, Borrower shall
reimburse Agent for all of Agent’s or its designee’s reasonable costs and expenses incurred in obtaining any or all of the Policies or otherwise causing the compliance with the terms and provisions of this Section 5.1(x),
including (without limitation) obtaining updated flood hazard certificates and replacement of any so-called “forced placed” insurance coverages to the extent Borrower was required to obtain and maintain any such Policy or Policies
hereunder and failed to do so. Borrower shall pay the premiums for such Policies (the “Insurance Premiums”) as the same become due and payable and shall furnish to Agent evidence of the renewal of each of the Policies with
receipts for the payment of the Insurance Premiums or other evidence of such payment reasonably satisfactory to Agent (provided, however, that Borrower is not required to furnish such evidence of payment to Agent in the event that such
Insurance Premiums have been paid by Agent or the Collateral Agent). If Borrower does not furnish such evidence and receipts, then Agent may procure, but shall not be obligated to

  

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procure, such insurance and pay the Insurance Premiums therefor, and Borrower agrees to reimburse Agent for the cost of such Insurance Premiums promptly on demand. Within thirty (30) days
after request by Agent, Borrower shall obtain such increases in the amounts of coverage required hereunder as may be reasonably requested by Agent, based on then industry-standard amounts of coverage then being obtained by prudent owners of
properties similar to the Mortgaged Property in the same applicable market region as the Mortgaged Property. Borrower shall give Agent prompt written notice if Borrower receives from any insurer any written notification or threat of any actions or
proceedings regarding the non-compliance or non-conformity of the Mortgaged Property with any insurance requirements. 
 (iv) If
the Mortgaged Property shall be damaged or destroyed, in whole or in part, by fire or other casualty, Borrower shall give prompt notice thereof to Agent. 
 (A) In case of loss covered by Policies, Agent may either (a) jointly with a Borrower settle and adjust any claim and agree with the insurance company or companies on the amount to be paid on the
loss or (b) allow Borrower to agree with the insurance company or companies on the amount to be paid upon the loss; provided, that Borrower may settle and adjust losses aggregating not in excess of $50,000, agree with the insurance
company or companies on the amount to be paid upon the loss and collect and receipt for any such Insurance Proceeds; provided, further, that if (x) at the time of the settlement of such claim an Event of Default has occurred and
is continuing or (y) the Agent and Borrower are unable to agree upon a joint settlement or (z) the Agent disapproves of Borrower’s proposed settlement with the insurance company, then Agent shall settle and adjust such claim without
the consent of Borrower. In any such case Agent shall and is hereby authorized to collect and receipt for any such Insurance Proceeds subject to and to the extent provided for in this Agreement. The reasonable out-of-pocket expenses incurred by
Agent in the adjustment and collection of Insurance Proceeds shall become part of the Indebtedness and be secured by the Mortgage and shall be reimbursed by Borrower to Agent upon demand therefor. 
 (B) In the event of any insured damage to or destruction of the Mortgaged Property or any part thereof (herein called an “Insured
Casualty”) where the aggregate amount of the loss, as reasonably determined by an Independent insurance adjuster, is less than ten percent (10%) of the Principal Indebtedness, and if, in the reasonable judgment of Agent, the
Mortgaged Property can be restored by not later than the first to occur of (a) twelve (12) months of settlement of the claim and (b) the expiration of the business interruption insurance and, in any case, not later than six
(6) months prior to the Maturity Date to an economic unit not less materially valuable (including an assessment of the impact of the termination of any Leases due to such Insured Casualty) and not less useful than the same was prior to the
Insured Casualty, or if Agent otherwise elects to allow a Borrower to restore the Mortgaged Property, then, if no Event of Default shall have occurred and be continuing, the Insurance Proceeds (after reimbursement of any reasonable out-of-pocket
expenses incurred by Agent in connection with the collection of any applicable Insurance Proceeds) shall be made available to reimburse Borrower for the cost of restoring, repairing, replacing or rebuilding the Mortgaged Property or part thereof
subject to the Insured Casualty, as provided for below. Borrower hereby covenants and agrees to commence and diligently to prosecute such restoring, repairing, replacing or rebuilding. Borrower shall pay all out-of-pocket costs (and if required by
Agent, Borrower shall deposit the total thereof with Agent in advance) of such restoring, repairing, replacing or rebuilding in excess of the Insurance Proceeds made available pursuant to the terms hereof (the “Deficient
Amount”). 
  

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 (C) Except as provided above, the Insurance Proceeds collected upon any Insured Casualty
shall, at the option of Agent in its sole discretion, be applied to the payment of the Indebtedness as provided in Section 2.7(b) of this Agreement or applied to the cost of restoring, repairing, replacing or rebuilding the affected
Mortgaged Property or part thereof subject to the Insured Casualty, in the manner set forth below. 
 (D) In the event that
Insurance Proceeds (after reimbursement of any reasonable expenses incurred by Agent in connection with the collection of any applicable Insurance Proceeds), if any, shall be made available to Borrower for the restoring, repairing, replacing or
rebuilding of any portion of the affected Mortgaged Property, Borrower covenants to restore, repair, replace or rebuild the same to be of at least comparable value as prior to such damage or destruction, all to be effected in accordance with Legal
Requirements and plans and specifications approved in advance by Agent, such approval not to be unreasonably withheld or delayed. 
 (E) In the event Borrower is entitled to reimbursement out of Insurance Proceeds, such proceeds shall be held in an Eligible Account as provided in Section 2.12(f) and disbursed from time to time as the restoration progresses
upon Agent being furnished with (1) evidence reasonably satisfactory to it (which evidence may include inspection(s) of the work performed) that the restoration, repair, replacement and rebuilding covered by the disbursement has been completed
in accordance with plans and specifications approved by Agent, (2) evidence reasonably satisfactory to it of the estimated cost of completion of the restoration, repair, replacement and rebuilding, (3) funds, or, at Agent’s option,
assurances reasonably satisfactory to Agent that such funds are available and sufficient in addition to the Insurance Proceeds to complete the proposed restoration, repair, replacement and rebuilding, and (4) such architect’s certificates,
waivers of lien, contractor’s sworn statements, title insurance endorsements, bonds and other evidences of cost, payment and performance of the foregoing repair, restoration, replacement or rebuilding as Agent may reasonably require and
approve. Agent may, in any event, require that all plans and specifications for such restoration, repair, replacement and rebuilding be submitted to and reasonably approved by Agent prior to commencement of work. Agent may retain a construction
consultant to inspect such work and review Borrower’s request for payments and Borrower shall, on demand by Agent, reimburse Agent for the reasonable fees and disbursements of such consultant. No payment made prior to the final completion of
the restoration, repair, replacement and rebuilding shall exceed ninety percent (90%) of the hard construction costs value of the work performed from time to time (except for restoration work on a trade by trade basis or on an hourly basis for
professional services in which event, payment may be made in full upon the completion of such work); funds other than Insurance Proceeds shall be disbursed prior to disbursement of such proceeds; and, at all times, the undisbursed balance of such
proceeds remaining in the accounts of Agent, together with funds deposited for that purpose or irrevocably committed to the repayment of Agent by or on behalf of Borrower for that purpose, shall be at least sufficient in the reasonable judgment of
Agent to pay for the cost of completion of the restoration, repair, replacement or rebuilding, free and clear of all liens or claims for lien, except for Permitted Encumbrances. Any surplus which may remain out of Insurance Proceeds held by Agent
after payment of such costs of restoration, repair, replacement or rebuilding shall be paid to Borrower so long as no Event of Default has occurred and is continuing. 
  

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 (v) Borrower shall not carry separate insurance, concurrent in kind or form or contributing
in the event of loss, with any insurance required under this Agreement that would be considered “co-insurance” or adversely affect the ability to collect under a policy of insurance required hereunder. 
 (y) Condemnation. 
 (i) Borrower shall promptly give Agent written notice of the actual or threatened commencement of any proceeding for a Taking and shall deliver to Agent copies of any and all papers served in connection with such proceedings. Agent is
hereby irrevocably appointed as Borrower’s attorney-in-fact, coupled with an interest, with exclusive power to collect, receive and retain any Condemnation Proceeds for said Taking. With respect to any compromise or settlement in connection
with such proceeding, Agent shall jointly with Borrower compromise and reach settlement unless at the time of such Taking an Event of Default has occurred and is continuing and the Indebtedness has been accelerated, in which event Agent shall
compromise and reach settlement without the consent of Borrower. Notwithstanding the foregoing provisions of this Section 5.1(y), Borrower is authorized to negotiate, compromise and settle, without participation by Agent, Condemnation
Proceeds of up to $1,000,000 in connection with any Taking. Notwithstanding any Taking, Borrower shall continue to pay the Indebtedness at the time and in the manner provided for in this Agreement and the other Loan Documents and the Indebtedness
shall not be reduced except in accordance therewith. 
 (ii) Borrower shall cause the Condemnation Proceeds to be paid directly
to the Collection Account as provided in Section 2.7(b) of this Agreement. Agent may, in its sole discretion, apply any such Condemnation Proceeds to the reduction or discharge of the Indebtedness (whether or not then due and payable).

 (iii) With respect to a Taking in part, which shall mean any Taking which does not render the affected Mortgaged Property
physically or economically unsuitable in the reasonable judgment of Agent for the use to which it was devoted prior to the Taking, Borrower shall cause the Condemnation Proceeds to be paid to Agent as described above or deposited into the applicable
account pursuant to the provisions of this Agreement, to be applied to the cost of repairing, replacing, restoring or rebuilding the affected Mortgaged Property as follows: 
 (A) Provided that Condemnation Proceeds shall be made available to Borrower for the restoring, repairing, replacing or rebuilding of the
affected Mortgaged Property, Borrower hereby covenants to restore, repair, replace or rebuild the same to be of at least comparable value and, to the extent commercially practicable, of substantially the same character as prior to the Taking, all to
be effected in accordance with applicable law and plans and specifications reasonably approved in advance by Agent. Borrower shall pay all costs (and if required by Agent, Borrower shall deposit the total thereof with Agent in advance) of such
restoring, repairing, replacing or rebuilding in excess of the Condemnation Proceeds made available pursuant to the terms hereof. 
  

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 (B) The Condemnation Proceeds held by Agent shall be held in an Eligible Account as provided
in Section 2.12(f) and disbursed from time to time as the restoration progresses upon Agent being furnished with (1) evidence reasonably satisfactory to it (which evidence may include inspection(s) of the work performed) that the
restoration, repair, replacement and rebuilding covered by the disbursement has been completed in accordance with plans and specifications approved by Agent, (2) evidence reasonably satisfactory to it of the estimated cost of completion of the
restoration, repair, replacement and rebuilding, (3) funds, or, at Agent’s option, assurances satisfactory to Agent that such funds are available and sufficient in addition to the Condemnation Proceeds to complete the proposed restoration,
repair, replacement and rebuilding, and (4) such architect’s certificates, waivers of lien, contractor’s sworn statements, title insurance endorsements, bonds and other evidences of cost, payment and performance of the foregoing
repair, restoration, replacement or rebuilding as Agent may reasonably require and approve. Agent may, in any event, require that all plans and specifications for such restoration, repair, replacement and rebuilding be submitted to and reasonably
approved by Agent prior to commencement of work. Agent may retain a construction consultant to inspect such work and review any request by Borrower for payments and Borrower shall, on demand by Agent, reimburse Agent for the reasonable fees and
disbursements of such consultant. No payment made prior to the final completion of the restoration, repair, replacement and rebuilding shall exceed ninety percent (90%) of the hard construction costs value of the construction work performed
from time to time (except for restoration work on a trade by trade basis or on an hourly basis for professional services in which event, payment may be made in full upon the completion of such work); funds other than Condemnation Proceeds shall be
disbursed prior to disbursement of such proceeds; and at all times, the undisbursed balance of such proceeds remaining in the hands of Agent, together with funds deposited for that purpose or irrevocably committed to the repayment of Agent by or on
behalf of Borrower for that purpose, shall be at least sufficient in the reasonable judgment of Agent to pay for the cost of completion of the restoration, repair, replacement or rebuilding, free and clear of all liens or claims for lien. Any
surplus which may remain out of Condemnation Proceeds held by Agent after payment of such costs of restoration, repair, replacement or rebuilding shall be paid to Borrower so long as no Event of Default has occurred and is continuing. 
 (C) If the affected Mortgaged Property is sold, through foreclosure or otherwise, prior to the receipt by Agent of any such Condemnation
Proceeds to which it is entitled hereunder, Agent shall have the right, whether or not a deficiency judgment on the Note shall have been sought, recovered or denied, to have reserved in any foreclosure decree a right to receive said award or
payment, or a portion thereof sufficient to pay the Indebtedness. In no case shall any such application reduce or postpone any payments otherwise required pursuant to this Agreement, other than the final payment on the Note. 
 (z) Leases and Rents. 
 (i) Borrower absolutely and unconditionally assigns to Agent, Borrower’s right, title and interest in all current and future Leases and Rents as collateral for the Loan, it being intended by Borrower
that this assignment constitutes a present, absolute assignment and not an assignment for additional security only. Such assignment to Agent shall not be construed to bind Agent to the performance of any of the covenants, conditions or provisions
contained in

  

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 any such Lease or otherwise impose any obligation upon Agent. Borrower shall execute and deliver to Agent
such additional instruments, in form and substance reasonably satisfactory to Agent, as may hereafter be reasonably requested in writing by Agent to further evidence and confirm such assignment. Nevertheless, subject to the terms of this Section
5.1(z), Agent grants to Borrower a license to lease, own, maintain, operate and manage the Mortgaged Property and to collect, use and apply the Rent, which license is revocable only upon the occurrence and during the continuance of an Event of
Default under this Agreement. Any portion of the Rents held by Borrower shall be held in trust for the benefit of Agent for use in the payment of the Indebtedness. Upon the occurrence of an Event of Default and during the continuance thereof, the
license granted to Borrower herein shall automatically be revoked, and Agent shall immediately be entitled to possession of all Rents, whether or not Agent enters upon or takes control of the Mortgaged Property. Agent is hereby granted and assigned
by Borrower the right, at its option, upon revocation of the license granted herein, to enter upon the Mortgaged Property in person, by agent or by court-appointed receiver to collect the Rents. Any Rents collected after the revocation of the
license shall be applied toward payment of the Indebtedness as set forth in Section 2.8 hereof. 
 (ii) All Leases entered
into by Borrower shall provide for rental rates comparable to then-existing local market rates and terms and conditions commercially reasonable and consistent with then-prevailing local market terms and conditions for similar type properties. With
respect to any Lease for more than 100,000 square feet of the Mortgaged Property, Borrower shall not enter into such Lease, unless Borrower shall have obtained the prior written consent of the Agent and, if the Loan has been included in a Secondary
Market Transaction in which Securities were issued, a Rating Confirmation. Borrower shall furnish Agent with (1) detailed term sheets in advance in the case of any Leases, modifications, amendments or renewals for which Agent’s consent is
required and (2) in the case of any other Leases, executed copies of such Leases upon written request. All renewals or amendments or modifications of Leases that do not satisfy the requirements of the first sentence of this Section
5.1(z)(ii) shall be subject to the prior approval of Agent. All Leases shall be written on the standard lease form previously approved by Agent which form shall not be materially changed without Agent’s prior written consent which consent
shall not be unreasonably withheld. All Leases executed after the date hereof shall provide that they are subordinate to the Mortgage, and that the lessee agrees to attorn to Agent. Borrower, 
 (A) shall observe and perform all of the material obligations imposed upon the lessor under the Leases and shall not do or permit to be done
anything to materially impair the value of the Leases as security for the Indebtedness; 
 (B) shall promptly send copies to
Agent of all written notices of default which Borrower shall send or receive thereunder; 
 (C) shall enforce all of the material
terms, covenants and conditions contained in the Leases upon the part of the lessee thereunder to be observed or performed and shall effect a termination or diminution of the obligations of tenants under leases, only in a manner that a prudent owner
of a similar property to the Mortgaged Property would enforce such terms covenants and conditions or effect such termination or diminution in the ordinary course of business; 
  

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 (D) shall not collect any of the Rents more than one (1) month in advance; 

(E) shall not execute any other assignment of lessor’s interest in the Leases or Rents; and 
 (F) shall not convey or transfer or suffer or permit a conveyance or transfer of the Mortgaged Property or of any interest therein so as to
effect a merger of the estates and rights of, or a termination or diminution of the obligations of, lessees thereunder. 
 (iii)
Borrower shall deposit security deposits of lessees which are turned over to or for the benefit of Borrower or otherwise collected by or on behalf of Borrower, into an Eligible Account with the same name as the Collection Account and shall not
commingle such funds with any other funds of Borrower. Any bond or other instrument which Borrower is permitted to hold in lieu of cash security deposits under any applicable Legal Requirements shall be maintained in full force and effect unless
replaced by cash deposits as hereinabove described, shall, if permitted pursuant to Legal Requirements, name Agent as payee or mortgagee thereunder (or at Agent’s option, be fully assignable to Agent) and shall, in all respects, comply with any
applicable Legal Requirements and otherwise be reasonably satisfactory to Agent. Borrower shall, upon request, provide Agent with evidence reasonably satisfactory to Agent of Borrower’s compliance with the foregoing. Upon the occurrence and
during the continuance of any Event of Default, Borrower shall, upon Agent’s request, if permitted by any applicable Legal Requirements, turn over to Agent the security deposits (and any interest theretofore earned thereon) with respect to all
or any portion of the Mortgaged Property, to be held by Agent subject to the terms of the Leases. 
 (aa) Maintenance of
Mortgaged Property. Borrower shall cause the Mortgaged Property to be maintained in a good and safe condition and repair, subject to wear and tear and damage caused by casualty or condemnation. The Improvements and the Equipment shall not be
removed, demolished or altered (except for normal replacement of the Equipment, Improvements contemplated in an approved Operating Budget or pursuant to Leases in effect from time to time or for removals, demolition or alterations that cost up to
$1,000,000) without the consent of the Agent which consent shall not be unreasonably withheld. Except with respect to an Insured Casualty which shall be governed by the terms and conditions provided herein, Borrower shall, or shall cause any tenants
obligated under their respective Leases to, promptly repair, replace or rebuild any part of the Mortgaged Property that becomes damaged, worn or dilapidated except where the failure to do so is not reasonably likely to have a Material Adverse
Effect. Borrower shall complete and pay for any structure at any time in the process of construction or repair on the Land. Borrower shall not initiate, join in, or consent to any change in any private restrictive covenant, zoning law or other
public or private restriction, limiting or defining the uses which may be made of the Mortgaged Property or any part thereof which can be reasonably likely to result in a Material Adverse Effect without consent of the Agent. If under applicable
zoning provisions the use of all or any portion of the Mortgaged Property is or shall become a nonconforming use, Borrower will not cause or permit such nonconforming use to be discontinued or abandoned if such discontinuance of abandonment would
cause such nonconforming use to no longer be permitted without the express written consent of the Agent. Borrower shall not (i) change the use of the Land in any material respect, (ii) permit or suffer to occur any waste on or to the
Mortgaged Property or to any portion thereof or (iii) take any steps whatsoever to convert the Mortgaged Property, or any portion thereof, to a condominium or cooperative form of management. 
  

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 (bb) Taxes on Security. Borrower shall pay all taxes, charges, filing, registration
and recording fees, excises and levies payable with respect to the Note or the Lien created or secured by the Loan Documents, other than income, franchise and doing business taxes imposed on Agent or any Lender or Collateral Agent. If there shall be
enacted any law (1) deducting the Loan from the value of the Collateral for the purpose of taxation, (2) affecting Agent’s Lien on the Collateral or (3) changing existing laws of taxation of mortgages, deeds of trust, security
deeds, or debts secured by realty, or changing the manner of collecting any such taxes, Borrower shall promptly pay to Agent, on demand, all taxes, costs and charges for which Agent is or may be liable as a result thereof; provided,
however, if such payment would be prohibited by law or would render the Loan usurious, then instead of collecting such payment, Agent may declare all amounts owing under the Loan Documents to be immediately due and payable. 
 (cc) Qualified Interest Rate Cap Provider. If the rating of a Qualified Interest Rate Cap Provider that has provided an interest rate
cap which Borrower pledges to the Agent pursuant to the Collateral Assignment of Hedge falls below the rating criteria specified in the definition of a Qualified Interest Rate Cap Provider, then within ten (10) Business Days following written
request from Agent, the Borrower shall deliver to Agent a replacement interest rate cap satisfying all of the criteria set forth in Section 3.1 (as of the Closing Date) or Section 2.17 (as of any date the maturity of the Loan
is extended), as applicable. 
 ARTICLE VI. 
 NEGATIVE COVENANTS 
 Section 6.1. Negative Covenants. Borrower covenants and
agrees that, until payment in full of the Indebtedness, it will not do, directly or indirectly, any of the following unless Agent consents thereto in writing: 
 (a) Liens on the Mortgaged Property. Incur, create, assume, become or be liable in any manner with respect to, or permit to exist, except as permitted by the Mortgage, any Lien with respect to the
Mortgaged Property, except: (i) Liens in favor of the Lenders and (ii) the Permitted Encumbrances. 
 (b) Ownership
and Transfer. Except as expressly permitted by or pursuant to this Agreement or the other Loan Documents, own any property of any kind other than the Mortgaged Property, or Transfer the Mortgaged Property or any portion thereof. 
 (c) Other Borrowings. Incur, create, assume, become or be liable in any manner with respect to Other Borrowings. 
 (d) Dissolution; Merger or Consolidation. Dissolve, terminate, liquidate, merge with or consolidate into another Person. 

 

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 (e) Change In Business. Cease to be a Single-Purpose Entity, or make any material
change in the scope or nature of its business objectives, purposes or operations, or undertake or participate in activities other than the continuance of its present business. 
 (f) Debt Cancellation. Cancel or otherwise forgive or release any material claim or debt owed to Borrower by any Person, except for
adequate consideration or in the ordinary course of Borrower’s business. 
 (g) Affiliate Transactions. Except as
listed on Schedule 1, enter into, or be a party to, any transaction with an Affiliate of Borrower, except in the ordinary course of business and on terms which are fully disclosed to Agent in advance and which are no less favorable to
Borrower or such Affiliate than would be obtained in a comparable arm’s length transaction with an unrelated third party (other than the Management Agreement). 
 (h) Creation of Easements. Except as expressly permitted by or pursuant to the Mortgage or this Agreement, create, or permit the Mortgaged Property or any part thereof to become subject to, any
easement, license or restrictive covenant, other than a Permitted Encumbrance, provided, that the consent of Agent shall not be unreasonably withheld or delayed to the extent that any such easement, license or restrictive covenant is reasonably
necessary for the continued use, enjoyment, access to or operation of the applicable Mortgaged Property. 
 (i)
Misapplication of Funds. Distribute any Rents or Moneys received from Accounts in violation of the provisions of Section 2.12, or fail to pledge any security deposit to Agent, or misappropriate any security deposit or portion
thereof. 
 (j) Certain Restrictions. Enter into any agreement that expressly restricts the ability of Borrower to enter
into amendments, modifications or waivers of any of the Loan Documents. 
 (k) Assignment of Licenses and Permits. Assign
or transfer any of its interest in any Permits pertaining to the Mortgaged Property, or assign, transfer or remove or permit any other Person to assign, transfer or remove any records pertaining to the Mortgaged Property. 
 (l) Place of Organization. Change its jurisdiction of organization, creation or formation, as applicable, without giving Agent at
least fifteen (15) days’ prior written notice thereof and promptly providing Agent such information as Agent may reasonably request in connection therewith. 
 (m) Leases. Enter into, amend or cancel Leases, except as permitted by or pursuant to or would not result in a violation of this Agreement. 
 (n) Management Agreement. Except in accordance with this Agreement, (i) terminate or cancel the Management Agreement,
(ii) consent to either the reduction of the term of or the assignment of the Management Agreement, (iii) increase or consent to the increase of the amount of any charges under the Management Agreement, or (iv) otherwise modify,
change, supplement, alter or amend, or waive or release any of its rights and remedies under, the Management Agreement in any material respect. 
  

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 (o) Plans and Welfare Plans. Knowingly engage in or permit any transaction in
connection with which Borrower or any ERISA Affiliate could be subject to either a material civil penalty or tax assessed pursuant to Section 502(i) or 502(1) of ERISA or Section 4975 of the Code, permit any Welfare Plan to provide
benefits, including without limitation, medical benefits (whether or not insured), with respect to any current or former employee of Borrower beyond his or her retirement or other termination of service other than (i) coverage mandated by
applicable law, (ii) death or disability benefits that have been fully provided for by paid up insurance or otherwise or (iii) severance benefits (unless such coverage is provided after notification of and with the reasonable approval of
Agent), permit the assets of Borrower to become “plan assets”, whether by operation of law or under regulations promulgated under ERISA or adopt, amend (except as may be required by applicable law) or increase the amount of any benefit or
amount payable under, or permit any ERISA Affiliate to adopt, amend (except as may be required by applicable law) or increase the amount of any benefit or amount payable under, any Plan or Welfare Plan, except for normal increases in the ordinary
course of business consistent with past practice that, in the aggregate, do not result in a material increase in benefits expense to Borrower or any ERISA Affiliate. 
 (p) Transfer of Ownership Interests. Permit any Transfer of a direct or indirect ownership interest or voting right in Borrower (other than a Permitted Transfer). 
 (q) Equipment and Inventory. Except pursuant to the Management Agreement, permit any Equipment owned by Borrower to be removed at any
time from the Mortgaged Property unless the removed item is consumed or sold in the usual and customary course of business, removed temporarily for maintenance and repair or, if removed permanently, replaced by an article of equivalent suitability
and not materially less value, owned by Borrower free and clear of any Lien. 
 (r) [Intentionally Omitted] 
 (s) Management Fees. Pay Borrower or any Affiliate of Borrower any management fees with respect to the Mortgaged Property except as
contemplated by the Management Agreement. 
 (t) Modification of Interest Rate Cap Agreement. Amend, modify, cancel or
terminate any interest rate cap entered into by Borrower pursuant to this Agreement or permit same to be amended, modified, cancelled or terminated; provided, however, that Borrower shall have the right to extend the term of any such interest rate
cap. 
 (u) Prohibited Persons. With respect to Borrower, Guarantor and any of their respective officers, directors,
shareholders, partners, members or Affiliates, if applicable (including, without limitation, the indirect holders of equity interests in Borrower): (i) conduct any business, nor engage in any transaction or dealing, with any Prohibited Person,
including, but not limited to, the making or receiving of any contribution of funds, goods, or services, to or for the benefit of a Prohibited Person; or (ii) engage in or conspire to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in EO13224. 
  

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 ARTICLE VII. 
 EVENT OF DEFAULT 
 Section 7.1. Event of Default. The
occurrence of one or more of the following events shall be an “Event of Default” hereunder: 
 (a) if on
any Payment Date Borrower fails to pay any accrued and unpaid interest on the Loan then due and payable in accordance with the provisions hereof; 
 (b) if Borrower fails (a) to pay (1) the outstanding Indebtedness on the Maturity Date or (2) the fees and expenses then due and payable to Collateral Agent pursuant to the Fee Letter on
any Payment Date or (b) to deposit into the Collection Account, the amount required pursuant to Sections 2.7(a) or 2.7(b), respectively; 
 (c) if Borrower fails to make any required deposit to a Reserve Account or to pay any other amount payable pursuant to this Agreement or any other Loan Document when due and payable in accordance with the
provisions hereof or thereof, as the case may be, and such failure continues for ten (10) days after Agent delivers written notice thereof to Borrower; 
 (d) if any representation or warranty made herein or in any other Loan Document, or in any report, certificate, financial statement or other Instrument, agreement or document furnished by Borrower in
connection with this Agreement, the Note or any other Loan Document executed and delivered by any Borrower shall be false as of the date such representation or warranty was made (or if such representation or warranty relates to an earlier date, then
as of such earlier date); 
 (e) if Borrower or Guarantor makes an assignment for the benefit of creditors; 
 (f) if a receiver, liquidator or trustee shall be appointed for Borrower or Guarantor or if Borrower or Guarantor shall be adjudicated a
bankrupt or insolvent, or if any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by or against, consented to, or acquiesced in by, Borrower or Guarantor,
or if any proceeding for the dissolution or liquidation of Borrower or Guarantor shall be instituted; provided, however, that if such appointment, adjudication, petition or proceeding was involuntary and not consented to by Borrower or
Guarantor, upon the same not being discharged, stayed or dismissed within ninety (90) days, or if Borrower or Guarantor shall generally not be paying its debts as they become due; 
 (g) if Borrower attempts to delegate its obligations or assign its rights under this Agreement, any of the other Loan Documents or any
interest herein or therein, or if any Transfer occurs other than in accordance with or as permitted under this Agreement, and such delegation or assignment of rights or impermissible Transfer continues or is not corrected for five (5) Business
Days after Lender delivers written notice thereof to Borrower; 
 (h) if any provision of the Organizational Agreement affecting
the purpose for which Borrower is formed is amended or modified in any material respect which is reasonably likely to adversely affect the Lenders, Agent or Collateral Agent, or if Borrower fails to perform or enforce the provisions of the
Organizational Agreement and such failure has a Material Adverse Effect or attempts to dissolve Borrower without Agent’s consent; 
  

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 (i) if an Event of Default as defined or described in the Note or any other Loan Document
occurs, whether as to Borrower or the Mortgaged Property or any portion thereof; 
 (j) if any of the assumptions made with
respect to Borrower and its Affiliates in that certain substantive non-consolidation opinion letter of even date herewith delivered by Fulbright & Jaworski L.L.P. in connection with the Loan is not true and correct in all material respects;

 (k) if Borrower fails to maintain any insurance required to be maintained pursuant to Section 5.1(x) hereof;

 (l) if, without the prior written consent of Agent, the Demand Note shall be terminated or cancelled, or otherwise modified,
changed, supplemented, altered or amended, or if Guarantor shall waive or release any of its rights or remedies under the Demand Note; or 
 (m) if Borrower shall fail to perform any of the terms, covenants or conditions of this Agreement, the Note, the Mortgage or the other Loan Documents, other than as specifically otherwise referred to
above in this definition of “Event of Default,” for ten (10) days after notice to Borrower from Agent or its successors or assigns, in the case of any Default which can be cured by the payment of a sum of money (other than Events of
Default pursuant to Sections 7.1(a) and 7.1(b) above as to which the grace period, if any, set forth therein is applicable), or for thirty (30) days after notice from Agent or its successors or assigns, in the case of any
other Default (unless a longer notice period is otherwise provided herein or in such other Loan Document); provided, however, that if such non-monetary Default is susceptible of cure but cannot reasonably be cured within such
thirty (30) day period and Borrower shall have commenced to cure such Default within such thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for
an additional sixty (60) days; then, upon the occurrence of any such Event of Default and at any time thereafter, Agent or Collateral Agent or its successors or assigns, may, in addition to any other rights or remedies available to it pursuant
to this Agreement and the other Loan Documents, or at law or in equity, take such action, without further notice or demand, as Agent on behalf of the Lenders or its successors or assigns, deems advisable to protect and enforce its rights against
Borrower and in and to all or any portion of the Collateral (including, without limitation, declaring the entire Indebtedness to be immediately due and payable) and may enforce or avail itself of any or all rights or remedies provided in the Loan
Documents against Borrower and/or the Collateral (including, without limitation, all rights or remedies available at law or in equity). 
 Section 7.2. Remedies. 
 (a) Upon the occurrence of an Event of Default, all or any one or more of the
rights, powers, or other remedies available to Agent or Collateral Agent or the Lenders against Borrower under this Agreement or any of the other Loan Documents executed by or with respect to Borrower, or at law or in equity may be exercised by
Lenders at any time and from time to time, whether or not all or any portion of the Indebtedness shall be declared due and payable, and

  

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whether or not Agent shall have commenced any foreclosure proceeding or other action for the enforcement of its rights and remedies under any of the Loan Documents with respect to all or any
portion of the Collateral. Any such actions taken by Agent or Collateral Agent shall be cumulative and concurrent and may be pursued independently, singly, successively, together or otherwise, at such time and in such order as Agent may determine in
its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and remedies of Agent and the Lenders permitted by law, equity or contract or as set forth herein or in the other Loan Documents.

 (b) In the event of the foreclosure or other action by Agent or Collateral Agent to enforce Agent’s remedies in
connection with all or any portion of the Collateral, Agent shall apply all Net Proceeds received to repay the Indebtedness in accordance with Section 2.8, the Indebtedness shall be reduced to the extent of such Net Proceeds and the
remaining portion of the Indebtedness shall remain outstanding and secured by the Loan Documents, it being understood and agreed by Borrower that Borrower is liable for the repayment of all the Indebtedness; provided, however, that the
Note shall be deemed to have been accelerated only to the extent of the Net Proceeds actually received by Agent with respect to the Collateral and applied in reduction of the Indebtedness evidenced by the Note in accordance with the provisions of
this Agreement, after payment by Borrower of all Transaction Costs and costs of enforcement. 
 (c) Upon and during the
continuation of an Event of Default, the Agent shall have the right, but not the obligation, with respect to any and all bankruptcy proceedings that are now or hereafter commenced in connection with the Mortgaged Property, to (i) vote to accept
or reject any plans of reorganization, (ii) vote in any election of a trustee, (iii) elect the treatment of secured claims as specified in Section 1111(b) of the Bankruptcy Code, and (iv) make any other decisions requested
of holders of claims or interests that Borrower would have had the right to do in such bankruptcy proceedings in the absence of an Event of Default. 
 Section 7.3. Remedies Cumulative. The rights, powers and remedies of Agent, Collateral Agent, or any Lender under this Agreement shall be cumulative and not exclusive of any other right, power or remedy which Agent, Collateral
Agent or any Lender may have against Borrower pursuant to this Agreement or the other Loan Documents executed by or with respect to Borrower, or existing at law or in equity or otherwise. Agent or any Lender’s rights, powers and remedies may be
pursued singly, concurrently or otherwise, at such time and in such order as Agent may determine in Agent’s sole discretion. No delay or omission to exercise any remedy, right or power accruing upon an Event of Default shall impair any such
remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient. A waiver of any Default or Event of Default shall not be construed to
be a waiver of any subsequent Default or Event of Default or to impair any remedy, right or power consequent thereon. Notwithstanding any other provision of this Agreement, Agent for the benefit of the Lenders reserves the right to seek a deficiency
judgment or preserve a deficiency claim, in connection with the foreclosure of the Mortgage on the Mortgaged Property, to the extent necessary to foreclose on other parts of the Collateral. 
 Section 7.4. Default Administration Fee. At any time after the occurrence of an Event of Default and the acceleration of the Indebtedness, as
reimbursement and compensation for the additional internal expenditures, administrative expenses, fees and other costs associated with actions to be taken in connection with such Event of Default, and regardless of whether Agent shall have commenced
the exercise of any remedies pursuant to Section 7.2, the Default Administration Fee shall be payable by Borrower to Agent upon demand. 
  

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 Section 7.5. Curative Advances. If any Event of Default occurs and is not cured by Borrower
after notice from the Agent, then Agent or Collateral Agent may expend such sums as either shall reasonably deem appropriate to cure or attempt to cure such Event of Default. Borrower shall immediately repay all such sums so advanced, which sums
shall immediately become part of the Indebtedness, bear interest at the Default Rate from the date advanced until the date repaid, and be secured by all Collateral. 
 ARTICLE VIII. 
 MISCELLANEOUS 
 Section 8.1. Survival. This Agreement and all covenants, agreements, representations and warranties made herein and in the certificates
delivered pursuant hereto shall survive the execution and delivery of this Agreement, the making by the initial Lender of the Loan hereunder and the execution and delivery by Borrower to the initial Lender of the Loan Documents, and shall continue
in full force and effect so long as any portion of the Indebtedness is outstanding and unpaid. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party.
All covenants, promises and agreements in this Agreement contained, by or on behalf of Borrower, shall inure to the benefit of the respective successors and assigns of Agent and each Lender. Nothing in this Agreement or in any other Loan Document,
express or implied, shall give to any Person other than the parties and the holder of the Note and the other Loan Documents, and their legal representatives, successors and assigns, any benefit or any legal or equitable right, remedy or claim
hereunder. 
 Section 8.2. Agent’s Discretion. Whenever pursuant to this Agreement, Agent exercises any right given to it to
approve or disapprove, or any arrangement or term is to be satisfactory to Agent, the decision of Agent to approve or disapprove or to decide whether arrangements or terms are satisfactory or not satisfactory shall (except as is otherwise
specifically herein provided) be in the sole discretion of Agent and shall be final and conclusive. 
 Section 8.3. Governing Law.

 (a) This Agreement was negotiated in New York and made by the initial Lender and accepted by Borrower in the State of New
York, and the proceeds of the Note delivered pursuant hereto were disbursed from New York, which State the parties agree has a substantial relationship to the parties and to the underlying transaction embodied hereby, and in all respects (including,
without limitation, matters of construction, validity, performance, and maximum permissible rates of interest), this Agreement and the obligations arising hereunder shall be governed by, and construed in accordance with, the laws of the State of New
York applicable to contracts made and performed in such State and any applicable law of the United States of America. 
  

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 (b) Any legal suit, action or proceeding against the Lenders or Borrower arising out of or
relating to this Agreement may be instituted in any federal or state court in New York, New York. Borrower hereby (i) irrevocably waives, to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to the
laying of venue of any such suit, action or proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum, and (ii) irrevocably submits to the jurisdiction of any
such court in any such suit, action or proceeding. Borrower does hereby designate and appoint Corporation Services Company, whose address is 80 State Street, Albany, New York 12207-2543, as Borrower’s authorized agent to accept and acknowledge
on its behalf service of any and all process which may be served in any such suit, action or proceeding in any federal or state court in New York, New York, and agrees that service of process upon said agent at said address (or at such other office
in the State of New York as may be designated by Borrower from time to time in accordance with the terms hereof) with a copy to Borrower at its principal executive offices, and written notice of said service of Borrower mailed or delivered to
Borrower in the manner provided herein shall be deemed in every respect effective service of process upon Borrower, in any such suit, action or proceeding in the State of New York. Borrower (i) shall give prompt notice to Agent of any change in
address of its authorized agent hereunder, (ii) may at any time and from time to time designate a substitute authorized agent with an office in New York, New York (which office shall be designated as the address for service of process), and
(iii) shall promptly designate such a substitute if its authorized agent ceases to have an office in New York, New York or is dissolved without leaving a successor. 
 Section 8.4. Modification, Waiver in Writing. No modification, amendment, extension, discharge, termination or waiver of any provision of this Agreement or any other Loan Document, or consent
or waiver referred to in any Loan Document or consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in a writing signed by the party against whom enforcement is sought, and then such waiver or
consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to or demand on Borrower shall entitle Borrower to any other or future notice or demand in the
same, similar or other circumstances. 
 Section 8.5. Delay Not a Waiver. Neither any failure nor any delay on the part of Agent or
any Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under any other Loan Document, or any other instrument given as security therefor, shall
operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by way of limitation, by accepting
payment after the due date of any amount payable under this Agreement, the Note or any other Loan Document, Agent and each Lender shall not be deemed to have waived any right either to require prompt payment when due of all other amounts due under
this Agreement, the Note or the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount. 
 Section 8.6. Notices. All notices, consents, approvals and requests required or permitted hereunder or under any other Loan Document shall be given in writing and shall be effective for all purposes if hand delivered or sent by
(a) certified or registered United States mail, postage prepaid, or (b) expedited prepaid delivery service, either commercial or United States Postal

  

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Service, with proof of attempted delivery, and by facsimile transmission, addressed if to Lender at its address set forth on the first page hereof, Attention: Christopher J. Albano, if to
Collateral Agent at its address set forth on the first page hereof, Attention: Thomas F. Quinlan, Jr., and if to Borrower at its addresses set forth on the first page hereof, Attention: John R. Sischo, or at such other address and Person as shall be
designated from time to time by any party hereto, as the case may be, in a written notice to the other parties hereto in the manner provided for in this Section 8.6. A notice shall be deemed to have been given: in the case of hand delivery, at
the time of delivery; in the case of registered or certified mail, when delivered or three Business Days after mailing; or in the case of expedited prepaid delivery and facsimile transmission, on the Business Day after the same was sent. A party
receiving a notice which does not comply with the technical requirements for notice under this Section 8.6 may elect to waive any deficiencies and treat the notice as having been properly given. 
 Section 8.7. TRIAL BY JURY. BORROWER, TO THE FULLEST EXTENT THAT IT MAY LAWFULLY DO SO, WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING,
INCLUDING, WITHOUT LIMITATION, ANY TORT ACTION, BROUGHT BY ANY PARTY HERETO WITH RESPECT TO THIS AGREEMENT, THE NOTE OR THE OTHER LOAN DOCUMENTS. 
 Section 8.8. Headings. The Article and Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
 Section 8.9. Assignment. 
 (a) Borrower may not sell, assign or transfer any interest in the Loan Documents, or any portion of the foregoing (including, without limitation, Borrower’s rights, title, interests, remedies, powers and duties hereunder and
thereunder) without Agent’s prior written consent. Each Lender shall have the right to assign or participate this Agreement and/or its interest in any of the other Loan Documents and the obligations hereunder to any Person. In the event of an
assignment by any Lender, (a) the assignee shall have, to the extent of such assignment, the same rights, benefits and obligations as it would have if it were an original “Lender” hereunder; (b) the assignee shall be deemed for
all purposes to be a “Lender” hereunder; and (c) upon any such substitution of Lender, a replacement or addition “Lender signature page” shall be executed by the new Lender and attached to this Agreement and thereupon become
a part of this Agreement. After the effectiveness of any assignment, the new Lender shall provide notice to Borrower of the identity, address and other pertinent information pertaining to the new Lender. Notwithstanding anything in this Agreement to
the contrary, after an assignment by any Lender, the “Lender” (prior to such assignment) shall continue to have the benefits of any rights or indemnifications and shall continue to have the obligations contained herein which such Lender
had during the period such party was a “Lender” hereunder. 
 (b) The Agent may from time to time elect to enter into
a servicing agreement with a servicer, pursuant to which the servicer shall be appointed to service and administer the Loan and the Account Collateral in accordance with the terms hereof and to exercise any and all other rights of the Lenders with
respect to the Loan as set forth in such servicing agreement. The Agent shall promptly notify the Borrower if the Agent shall elect to appoint or change the

  

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servicer, and all notices and other communications from the Borrower to the Agent shall be delivered to the servicer with a copy concurrently delivered to the Agent, and any notice, direction or
other communication from the servicer to the Borrower shall have the same force and effect as a notice, direction or communication from the Agent. The parties hereto acknowledge and agree that the servicer shall be a third party beneficiary to this
Agreement and the other Loan Documents. 
 Section 8.10. Severability. Wherever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
 Section 8.11.
Preferences. Agent and the Lenders shall have no obligation to marshal any assets in favor of Borrower or any other party or against or in payment of any or all of the obligations of Borrower pursuant to this Agreement, the Note or any other
Loan Document. The Lenders shall have the continuing and exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the obligations of Borrower hereunder, provided that such application or reapplication is
performed by the Lenders in accordance with the terms of this Agreement or any other applicable Loan Document. To the extent Borrower makes a payment or payments to Agent or any Lender for Borrower’s benefit, which payment or proceeds or any
part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then,
to the extent of such payment or proceeds received, the obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Agent or such
Lender. 
 Section 8.12. Waiver of Notice. Borrower shall not be entitled to any notices of any nature whatsoever from Agent, any
Lender or Collateral Agent except with respect to matters for which this Agreement or another Loan Document specifically and expressly provides for the giving of notice by Agent, such Lender and/or Collateral Agent to Borrower and except with
respect to matters for which Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. Except for notices required by applicable Legal Requirements that are not waivable by Borrower under such applicable
Legal Requirements, Borrower hereby expressly waives the right to receive any notice from Agent, any Lender and Collateral Agent with respect to any matter for which this Agreement or the other Loan Documents does not specifically and expressly
provide for the giving of notice by Agent or such Lender or Collateral Agent to Borrower. 
 Section 8.13. Failure to Consent. If
Borrower shall seek the approval by or consent of Agent or the Lenders hereunder or under the Note, or any of the other Loan Documents, and Agent or the Lenders shall fail or refuse to give such consent or approval, then Borrower shall not be
entitled to any damages for any withholding or delay of such approval or consent by Agent or the Lenders, it being intended that Borrower’s sole remedy shall be to bring an action for an injunction or specific performance. 
  

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 Section 8.14. Schedules Incorporated. The information set forth on the cover, heading and
recitals hereof, and the Schedules attached hereto, are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof. 
 Section 8.15. Offsets, Counterclaims and Defenses. Any assignee of any Lender’s interest in and to this Agreement and the other Loan Documents shall take the same free and clear of all
offsets, counterclaims or defenses which are unrelated to this Agreement and the other Loan Documents which Borrower may otherwise have against any assignor or this Agreement and the other Loan Documents. No such unrelated counterclaim or defense
shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon this Agreement or upon any other Loan Document. Any such right to interpose or assert any such unrelated offset, counterclaim or defense in any
such action or proceeding is hereby expressly waived by Borrower. 
 Section 8.16. No Joint Venture or Partnership. Borrower, Agent
and each Lender intend that the relationship created hereunder be solely that of borrower and lender. Nothing herein is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and any Lender
nor to grant any Lender any interest in the Collateral other than that of secured party, mortgagee or lender. 
 Section 8.17. Waiver of
Marshalling of Assets Defense. To the fullest extent Borrower may legally do so, Borrower waives all rights to a marshalling of the assets of Borrower, and others with interests in Borrower, and of the Collateral, or to a sale in inverse order
of alienation in the event of foreclosure of the interests hereby created, and agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of
estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of any Lender under the Loan Documents to a sale of any Collateral for the collection of the Indebtedness without any prior or different resort for
collection, or the right of any Lender to the payment of the Indebtedness out of the Net Proceeds of the Collateral in preference to every other claimant whatsoever. 
 Section 8.18. Waiver of Counterclaim. To the extent permitted by applicable law, Borrower hereby waives the right to assert a counterclaim, other than compulsory counterclaim, in any action or
proceeding brought against it by Agent or its agents. 
 Section 8.19. Conflict; Construction of Documents. In the event of any
conflict between the provisions of this Agreement and the provisions of any of the other Loan Documents, the provisions of this Agreement shall prevail. The parties hereto acknowledge that they were represented by counsel in connection with the
negotiation and drafting of the Loan Documents and that the Loan Documents shall not be subject to the principle of construing their meaning against the party that drafted same. 
 Section 8.20. Brokers and Financial Advisors. Borrower and the initial Lender hereby represent that they have dealt with no financial advisors, brokers, underwriters, placement agents, agents
or finders in connection with the transactions contemplated by this Agreement (other than Secured Capital Corp, whose fees and expenses shall be paid exclusively by Borrower). Borrower and initial Lender hereby agree to indemnify and hold the other
and Collateral Agent

  

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harmless from and against any and all claims, liabilities, costs and expenses of any kind in any way relating to or arising from a claim by any other Person that such Person acted on behalf of
the indemnifying party in connection with the transactions contemplated herein. The provisions of this Section 8.20 shall survive the expiration and termination of this Agreement and the repayment of the Indebtedness. 
 Section 8.21. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be
an original, but all of which shall together constitute one and the same instrument. 
 Section 8.22. Estoppel Certificates. Agent,
Borrower and each Lender hereby agree at any time and from time to time upon not less than fifteen (15) days prior written notice by Borrower or such Lender to execute, acknowledge and deliver to the party specified in such notice, a statement,
in writing, certifying that this Agreement is unmodified and in full force and effect (or if there have been modifications, that the same, as modified, is in full force and effect and stating the modifications hereto), and stating whether or not, to
the knowledge of such certifying party, any Default or Event of Default has occurred and is then continuing, and, if so, specifying each such Default or Event of Default; provided, however, that it shall be a condition precedent to any
Lender’s obligation to deliver the statement pursuant to this Section 8.22, that such Lender shall have received, together with Borrower’s request for such statement, an Officer’s Certificate stating that, to the knowledge
of Borrower, no Default or Event of Default exists as of the date of such certificate (or specifying such Default or Event of Default). 
 Section 8.23. Payment of Expenses. Borrower shall pay all Transaction Costs, which shall include, without limitation, (a) reasonable out-of-pocket costs and expenses of Agent in connection with (i) the negotiation,
preparation, execution and delivery of the Loan Documents and the documents and instruments referred to therein; (ii) the creation, perfection or protection of Lenders’ Liens in the Collateral (including, without limitation, fees and
expenses for title and lien searches or amended or replacement Mortgages, UCC financing statements or Collateral Security Instruments, title insurance premiums and filing and recording fees, third party due diligence expenses for the Mortgaged
Property plus travel expenses, accounting firm fees, costs of the Appraisals, Environmental Reports (and an environmental consultant), and the Engineering Reports and costs and fees incurred in connection with arranging, setting up, servicing and
maintaining the Account Collateral); (iii) the negotiation, preparation, execution and delivery of any amendment, waiver, restructuring or consent relating to any of the Loan Documents, and (iv) the preservation of rights under and
enforcement of the Loan Documents and the documents and instruments referred to therein, including any communications or discussions relating to any action that Borrower shall from time to time request Agent to take, as well as any restructuring or
rescheduling of the Indebtedness, (b) the reasonable fees, expenses and other charges of counsel to Agent in connection with all of the foregoing, (c) all reasonable fees and expenses of each of the servicer appointed pursuant to
Section 8.9(b) and Collateral Agent and its respective counsel and (d) Agent’s (or, where reasonably deemed necessary by Agent, any other Lender’s) reasonable out-of-pocket travel expenses in connection with site visits to
the Mortgaged Property. 
 Section 8.24. Non-Recourse. Anything contained herein, in the Note or in any other Loan Document to the
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principal or interest on the Loan or for any other Indebtedness, obligation or liability hereunder or under any other Loan Document or for any claim based hereon or thereon or otherwise in
respect hereof or thereof against (i) any agent, contractor, director, officer, member, consultant, manager, stockholder, subscriber to capital stock, incorporator, beneficiary, participant, trustee or advisor of Borrower, or any partner or
member therein; (ii) any legal representative, heir, estate, successor or assign of any thereof; (iii) any corporation (or any officer, director, employee or shareholder thereof), limited liability company (or member thereof), partnership
(or any partner thereof), individual or entity to which any ownership interest in Borrower shall have been directly or indirectly transferred; (iv) any purchaser of any asset of Borrower; or (v) any other Person (except Borrower), for any
deficiency or other sum owing with respect to the Note or any other Indebtedness, obligation or liability or arising under this Agreement or any Loan Document. It is understood that neither the Note nor any other Indebtedness, obligation or
liability under or with respect to this Agreement and any other Loan Document may be enforced against any Person described in clauses (i) through (v) above; provided, however, that the foregoing provisions of
this paragraph shall not: 
 (A) prevent recourse to Borrower, the assets of Borrower, the Mortgaged Property or any other
instrument or document which is pledged by Borrower to the Lenders pursuant to the Loan Documents, including all Collateral; 
 (B) have any applicability whatsoever to the collateral pledged pursuant to the Collateral Security Instruments, or limit the liability of Guarantor under the Guaranty of Non-Recourse Obligations; or 
 (C) constitute a waiver, release or discharge of any indebtedness or obligation evidenced by the Note or secured by the Loan Documents, and
the same shall continue until paid or discharged in full; or 
 (D) prevent recourse to Borrower and, to the extent provided in
the Guaranty of Non-Recourse Obligations, Guarantor and their respective assets for repayment of the Indebtedness, and the Indebtedness shall be fully recourse to Borrower and, to the extent provided in the Guaranty of Non-Recourse Obligations, the
Guarantor, in the event that any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed (A) by Borrower or (B) against Borrower with the consent or
acquiescence of Borrower or Guarantor or their respective Affiliates; or 
 (E) prevent recourse to Borrower and, to the extent
provided in the Guaranty of Non-Recourse Obligations, Guarantor and their respective assets, and Borrower and, to the extent provided in the Guaranty of Non-Recourse Obligations, Guarantor shall be fully and personally liable, for any loss, costs,
liability, damage or expense suffered or incurred by Agent or any Indemnified Party related to or arising from: 
 (1) any fraud,
misappropriation or misapplication of funds (including Loss Proceeds or Rents) committed by or on behalf of Borrower in contravention of the Loan Documents, or intentional misrepresentation contained in any Loan Documents or report furnished
pursuant to any Loan Document; 
  

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 (2) any Transfer in violation of the terms of the Loan Documents; 
 (3) violation of any of the terms, covenants and conditions to maintain Borrower as a Single Purpose Entity; 
 (4) additional financing obtained by Borrower (whether secured or unsecured) in violation of the terms of the Loan Documents; 
 (5) actual physical waste to the Mortgaged Property; 
 (6) breach of any representation, warranty or covenant in this Agreement or the Environmental Indemnity Agreement, concerning Environmental Laws and Hazardous Substances; 
 (7) any security deposits received by Borrower or Manager from tenants not being properly applied, returned to tenants when due or delivered
to Agent, a receiver or a purchaser of the Mortgaged Property in the event of a foreclosure sale upon such Person taking possession of the Mortgaged Property; 
 (8) any Legal Requirement mandating the forfeiture by Borrower of the Collateral or any portion thereof because of the conduct or purported conduct of criminal activity by Borrower or any Affiliate in
connection therewith; 
 (9) if any Lien is voluntarily placed on the Collateral or any portion thereof in contravention of the
Loan Documents and such Lien is not discharged and removed within ten (10) days after notice; 
 (10) Borrower or any
Affiliate contesting or in any way interfering with, directly or indirectly (collectively, a “Contest”), any foreclosure action or sale commenced by Agent or with any other enforcement of Agent’s rights, powers or
remedies under any of the Loan Documents or under any document evidencing, securing or otherwise relating to any of the Collateral (whether by making any motion, bringing any counterclaim, claiming any defense, seeking any injunction or other
restraint, commencing any action seeking to consolidate any such foreclosure or other enforcement with any other action, or otherwise) (except this clause (10) shall not apply if Borrower or such Affiliate successfully asserts a Contest and
obtains a final non-appealable order as to same); 
 (11) the cost of enforcement of any of Agent’s rights or remedies
hereunder or under any of the other Loan Documents, or costs incurred in any bankruptcy or similar proceeding which may be brought by or against Borrower, or any pledgor or Guarantor; or 
 (12) the failure to pay Impositions assessed against the Mortgaged Property to the extent there was sufficient funds available to pay the
same, or the failure to maintain insurance as required under the Loan Documents, or the failure to pay any deductible amount in respect of any insurance maintained in respect of the Mortgaged Property, or the failure to pay and discharge any
mechanic’s or materialmen’s Liens against the Mortgaged Property to the extent there was sufficient funds available to pay and discharge the same or the work relating to such Liens was not approved by Agent in writing or permitted by the
Loan Documents or the failure to pay brokerage commissions. 
  

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 ARTICLE IX. 
 THE AGENT 
 Section 9.1. Appointment, Powers and
Immunities. Each Lender hereby irrevocably appoints and authorizes Agent to act as its agent hereunder and under the other Loan Documents with such powers as are specifically delegated to Agent by the terms of this Agreement and of the other
Loan Documents, together with such other powers as are reasonably incidental thereto. Agent (which term as used in this sentence and in Section 9.5 and the first sentence of Section 9.6 hereof shall include reference to its
Affiliates and its own and its Affiliates’ officers, directors, employees and agents): (a) shall have no duties or responsibilities to the Lenders except those expressly set forth in this Agreement and in the other Loan Documents, and
shall not by reason of this Agreement or any other Loan Document be a trustee for any Lender; (b) shall not be responsible to the Lenders for any recitals, statements, representations or warranties contained in this Agreement or in any other
Loan Document, or in any certificate or other document referred to or provided for in, or received by any of them under, this Agreement or any other Loan Document, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency
of this Agreement or any other Loan Document or any other document referred to or provided for herein or therein or for any failure by Borrower, or any other Person to perform any of their obligations hereunder or thereunder; (c) shall not be
required to initiate or conduct any litigation or collection proceedings hereunder or under any other Loan Document; and (d) shall not be responsible to the Lenders for any action taken or omitted to be taken by it hereunder or under any other
Loan Document or under any other document or instrument referred to or provided for herein or therein or in connection herewith or therewith, except for its own gross negligence or willful misconduct. Agent may employ agents and attorneys-in-fact
and shall not be responsible to the Lenders for the negligence or misconduct of any such agents or attorneys-in-fact selected by it in good faith. 
 Section 9.2. Reliance by Agent. Agent shall be entitled to rely upon any certification, notice or other communication (including, without limitation, any thereof by telephone, facsimile transmission, telex, electronic mail, or
cable) believed by it to be genuine and correct and to have been signed or sent by or on behalf of the proper Person or Persons, and upon advice and statements of legal counsel, independent accountants and other experts selected by Agent in good
faith. As to any matters not expressly provided for by this Agreement or any other Loan Document, Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder or thereunder in accordance with the instructions given
by all of the Lenders, and such instructions of such Lenders and any action taken or failure to act pursuant thereto shall be binding on all of the Lenders. 
 Section 9.3. Defaults. Agent shall not be deemed to have knowledge or notice of the occurrence of a Default or Event of Default unless Agent has received written notice from a Lender or
Borrower specifying such Default and stating that such notice is a “Notice of Default”. In the event that Agent receives such a notice of the occurrence of a Default or Event of Default, Agent shall give prompt notice thereof to the
Lenders. Agent shall (subject to Section 9.7 hereof) take such action with respect to such Default or Event of Default as shall be directed by

  

 105 

 
all Lenders, provided that, unless and until Agent shall have received such directions, Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in the best interest of the Lenders except to the extent that this Agreement expressly requires that such action be taken, or not be taken, only with the consent or upon the
authorization of all of the Lenders. 
 Section 9.4. Rights as a Lender. With respect to the Loan made by it, Agent in its capacity
as a Lender hereunder shall have the same rights and powers hereunder as any other Lender and may exercise the same as though it were not acting as Agent, and the term “Lender” or “Lenders” shall, unless the context otherwise
indicates, include Agent in its individual capacity. Agent and its affiliates may (without having to account therefor to any Lender) lend money to, make investments in and generally engage in any kind of business with Borrower or any of their
Affiliates as if it were not acting as Agent, and Agent and its Affiliates may accept fees and other consideration from Borrower or such Affiliate for services in connection with this Agreement or otherwise without having to account for the same to
the Lenders. 
 Section 9.5. Indemnification. The Lenders agree to indemnify Agent (to the extent not reimbursed by Borrower, but
without limiting the obligations of Borrower under the Loan Documents) ratably in accordance with their respective interests in the Loan, for any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind and nature whatsoever that may be imposed on, incurred by or asserted against Agent (including by any Lender) arising out of or by reason of any investigation in or in any way relating to or arising out of this
Agreement or any other Loan Document or any other documents contemplated by or referred to herein or therein or the Transaction (including, without limitation, the costs and expenses that Borrower is obligated to pay under the Loan Documents, but
excluding, unless a Default or Event of Default has occurred and is continuing, normal administrative costs and expenses incident to the performance of its agency duties hereunder) or the enforcement of any of the terms hereof or thereof or of any
such other documents, provided that no Lender shall be liable for any of the foregoing to the extent they arise from the gross negligence or willful misconduct of the party to be indemnified. 
 Section 9.6. Non-Reliance on Agent and Other Lenders. Each Lender agrees and acknowledges that it has, independently and without reliance on
Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own credit analysis of Borrower and its own decision to enter into this Agreement and that it will, independently and without reliance upon
Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own analysis and decisions in taking or not taking action under this Agreement or under any other Loan Document.
Agent shall not be required to keep itself informed as to the performance or observance by Borrower of this Agreement or any of the other Loan Documents or to inspect the properties or books of Borrower or any of their Affiliates. Except for
notices, reports and other documents and information expressly required to be furnished to the Lenders by Agent hereunder, Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the
affairs, financial condition or business of Borrower or any of their Affiliates that may come into the possession of Agent or any of its Affiliates. 
  

 106 

 Section 9.7. Failure to Act. Except for action expressly required of Agent hereunder and under
the other Loan Documents, Agent shall in all cases be fully justified in failing or refusing to act hereunder and thereunder unless it shall receive further assurances to its satisfaction from the Lenders of their indemnification obligations under
Section 9.5 hereof against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. 
 Section 9.8. Resignation of Agent. Subject to the appointment and acceptance of a successor Agent as provided below, Agent may resign upon giving notice thereof to the Lenders;
provided, however, that such resignation shall not be effective until such time as the successor Agent is in place and shall deliver written notice of such appointment to Borrower. Upon any such resignation, the Lenders shall have the
right to appoint a successor Agent. If no successor Agent shall have been so appointed by the Lenders and shall have accepted such appointment within 30 days after the retiring Agent’s giving of notice of resignation, then the retiring Agent
may, on behalf of the Lenders appoint a successor Agent, that shall be a sophisticated financial institution. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations hereunder. After any retiring Agent’s resignation hereunder as Agent, the provisions of
this Article 9 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as Agent. 
 Section 9.9. Agency Fee. Each Lender will pay to Agent an agency fee as may be agreed upon between such Lender and Agent. Borrower shall not be liable for the payment of such fee. 

Section 9.10. Consents under Loan Documents. Agent may consent to any modification, supplement or waiver under any of the Loan Documents,
provided that, without the prior consent of each Lender, Agent shall not release any Collateral or otherwise terminate any Lien under any Loan Document providing for collateral security, or agree to additional obligations being secured by
such collateral security (unless the Lien for such additional obligations shall be junior to the Lien in favor of the Obligations), except that no such consent shall be required, and Agent is hereby authorized, to release any Lien covering
Collateral that is the subject of a disposition permitted hereunder. 
 Section 9.11. Notices, Reports and Other Communications.
Agent shall provide, at its expense, copies of each notice, report, document, correspondence or other written communication delivered to Agent by Borrower or any Affiliate of Borrower pursuant to any Loan Document, to each Lender identified in such
notice, report, document, correspondence or other written communication or reasonably determined by Agent to be entitled thereto or affected thereby, as soon as practicable after Agent’s receipt thereof. 
 [SIGNATURES FOLLOW ON NEXT PAGE] 
  

 107 

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

			
	AGENT AND INITIAL LENDER:
	
	 CITIGROUP GLOBAL MARKETS REALTY CORP.,

 a New York corporation

		
	By:	 	 
		
	Name:	 	 
		
	Title:	 	 
	
	 BORROWER:

	
	 515/555 FLOWER ASSOCIATES, LLC,
 a Delaware limited liability company

		
	By:	 	 
		 	                John R. Sischo
		 	                Vice President
	
	 COLLATERAL AGENT:

	
	 LASALLE BANK NATIONAL ASSOCIATION,

 a national banking association (as Collateral Agent for the Lenders only)

		
	By:	 	 
		 	                Rachel M. Kahsen
		 	                Assistant Vice President

 Signature Page 1 

 SCHEDULE 1 
 Affiliate Transactions as of Closing 
 Schedule 1

  

	(i)	Management and Leasing Agreement by and between TPG Plaza Investments, LLC and Thomas Development Partners, L.P.* 

	(ii)	First Amendment to Management and Leasing Agreement by and between 515/555 FLOWER ASSOCIATES, LLC and Thomas Properties Group, L.P. 

	(iii)	Development Agreement by and between TPG Plaza Investments, LLC and Thomas Development Partners, L.P. * 

	(iv)	Office Lease Agreement by and between TPG Plaza Investments, LLC as Landlord and Thomas Development Partners, L.P. as Tenant (TPG Corporate Lease)*

	(v)	Office Lease Agreement by and between TPG Plaza Investments, LLC as Landlord and Thomas Development Partners, L.P. as Tenant (Property Management Office Lease)*

	(vi)	 Office Lease Agreement by and between TPG Plaza Investments, LLC as Landlord and Tenant (6th Floor Showcase Lease)* 

  

	*	As of July 15, 2004 these agreements have been assigned by TPG Plaza Investments, LLC to 515/555 Flower Associates, LLC. 

 SCHEDULE 2 
 Operations and Maintenance Plan 
 Schedule 2

 OPERATIONS AND MAINTENANCE PROGRAM 
 FOR 
 ASBESTOS-CONTAINING MATERIALS 
 ARCO Plaza 
 515-555
South Flower Street 
 Los Angeles, California 90071 
 Prepared for: 
 Thomas Properties Group LLC 
 515 South Flower Street, 12th Floor 
 Los Angeles, California 90071 
 Prepared by: 
 CTL Environmental Services 
 24404 South Vermont Avenue,
Suite 307 
 Harbor City, California 90710 
 (310) 530-5006 
  
  
 February 2004

 CTL Project No. 104-0019 

 OPERATIONS AND MAINTENANCE MANUAL 
 FOR 
 ARCO
PLAZA 
 515 – 555 SOUTH FLOWER STREET 
 LOS ANGELES, CALIFORNIA 90071 
 INTENDED USE 

 This document has been prepared by CTL Environmental Services under the direction of Marie Tullai, Cal-OSHA Certified Asbestos Consultant.
The manual has been prepared using the degree of care and skill customarily exercised under similar circumstances by reputable environmental consultants practicing in equivalent localities. 
 No other warranty, expressed or implied, is made as to the information or professional advice included in this manual. This document has been prepared
expressly for Thomas Properties Group LLC and is intended to serve as a guidance document for the above named facility. 
 Any other use,
interpretation or emphasis, other than that contained herein is done at the reader’s own risk. CTL Environmental Services cannot be held responsible for implementation or ongoing management of this Operations and Maintenance Plan. 

ref:disclaim.o&m 
  

					
		  		  	

 Operations and Maintenance Program 
 for Asbestos-Containing Materials 
 Table of Contents 
  

					
	 	  	 	  	Page
	1.	  	ASBESTOS MAINTENANCE PROGRAM SUMMARY	  	1
		  	 Operations and Maintenance
	  	
		  	 Record Keeping
	  	
		  	 Long Term Management
	  	
			
	2.	  	 RESPONSIBILITIES AND ROLE DEFINITION
	  	5
		  	 Role Definitions
	  	
		  	 Responsibilities
	  	
			
	3.	  	 BUILDING SURVEILLANCE
	  	10
		  	 Visual Inspection
	  	
		  	 Periodic Air Sampling
	  	
			
	4.	  	 HEALTH EFFECTS ASSOCIATED WITH ASBESTOS EXPOSURE
	  	13
		  	 The Respiratory System
	  	
		  	 Asbestos Related Diseases
	  	
		  	 Exposure Control
	  	
			
	5.	  	 ASBESTOS CONTAINING MATERIALS (ACM)
	  	17
		  	 Definition
	  	
		  	 ACM Classifications
	  	
		  	 ACM Applications
	  	
		  	 Regulatory Controls
	  	
			
	6.	  	 REGULATIONS GOVERNING ASBESTOS
	  	25
		  	 Federal
	  	
		  	 State
	  	
		  	 Local
	  	
		  	 Notifications and Registrations
	  	
		  	 Overview of Regulations
	  	
		  	 Emergency Notification Requirements
	  	
			
	7.	  	 MAINTENANCE WORK PERMIT SYSTEM
	  	41
		  	 Minor Asbestos-Related Work
	  	
		  	 Major Asbestos-Related Work
	  	

  

					
		  	i	  	

					
	8.	  	 RECORD KEEPING
	  	43
			
	9.	  	 MEDICAL SURVEILLANCE PROGRAM
	  	44
		  	 Requirements
	  	
		  	 Regulations
	  	
		  	 Record Keeping
	  	
			
	10.	  	 RESPIRATORY PROTECTION PROGRAM
	  	50
		  	 Respiratory Protection Program Manager
	  	
		  	 Employee Training Requirements
	  	
		  	 Respiratory Hazards
	  	
		  	 Types and Selections of Respiratory Protection
	  	
		  	 Medical Surveillance Summary
	  	
		  	 Fit-Testing Procedures
	  	
		  	 Protection Factors
	  	
		  	 Routine Maintenance
	  	
			
	11.	  	 ASBESTOS WORK PRACTICES
	  	71
		  	 Small Scale, Short Duration Operations
	  	
		  	 Work Practice Controls
	  	
		  	 Enclosure and Encapsulation
	  	
		  	 O & M Cleaning Practices
	  	
			
	12.	  	 EMERGENCY RESPONSE ACTION
	  	86
		  	 Minor Release Episodes
	  	
		  	 Major Release Episodes
	  	
			
	13.	  	 ASBESTOS ABATEMENT CONTRACTORS
	  	93
			
	14.	  	 ASBESTOS WASTE HANDLING, TRANSPORT AND DISPOSAL
	  	95
		  	 Packaging
	  	
		  	 Transporting
	  	
		  	 Disposal
	  	
		  	 Fees and Taxes
	  	
			
		  	 Appendices
	  	
			
	A.	  	 GLOSSARY
	  	
			
	B.	  	 EQUIPMENT LIST
	  	
			
	C.	  	 FORMS
	  	
			
	D.	  	 SURVEY REPORT
	  	

  

					
		  	ii	  	

 1 
 Asbestos Maintenance Program Summary 
  

					
		  		  	

 ASBESTOS MAINTENANCE PROGRAM SUMMARY 
 Operations and Maintenance Program 
 This asbestos Operations and Maintenance (O&M) program is designed to guide you on how to properly manage asbestos within your building. In conjunction with appropriate training, this manual will be used to inform building occupants and
employees about asbestos and its health effects and to formulate plans for cleaning, work practices, surveillance and record keeping. 
 The
O&M procedures described in this program are designed to accomplish the following: 
  

	 	A.	Minimize the exposure of your tenants and staff to airborne asbestos. 

  

	 	B.	Prevent the uncontrolled disturbance of asbestos-containing material (ACM) by your staff and by outside contractors you hire. 

  

	 	C.	Safely remove asbestos which has been released from the respective sources over time. 

  

	 	D.	Allow your trained maintenance staff to safely perform routine maintenance tasks in the areas containing ACM. 

 The O&M program can be divided into three (3) types of projects: 
  

	 	A.	Projects which are unlikely to involve any direct contact with ACM. An example of this type of work may include routine maintenance in an area where nonfriable ACM is
present, but not being handled (i.e., work in a room where nonfriable pipe elbows are present). 

  

	 	B.	Projects which may cause accidental disturbance of ACM. This type of project may include maintenance work in an area where friable ACM is present (i.e., work above a
suspended ceiling where friable asbestos fireproofing is present). 

  

	 	C.	Projects which involve small disturbances of ACM. This type of project will include small scale, short duration maintenance, repair or installation projects.

 In addition to an O&M program, ACM may be enclosed, encapsulated or removed. 
 The decision to use one of these options will be determined by the Asbestos Coordinator and the Environmental Consultant. 
  

					
		  		  	

 PROGRAM SUMMARY 
 ARCO Plaza, Los Angeles, California 
  
 Enclosure of a material involves isolating the material in an airtight encasement that will reduce the chance of the ACM being disturbed. 
 Encapsulation of a material involves spraying the material with an approved binder that will reduce the chance of asbestos fibers becoming airborne. The encapsulant can reduce the life of the ACM by
adding weight to this material and possibly causing it to break away or delaminate from the underlying surface. Both enclosure and encapsulation allows ACM to remain in the building where it must be monitored according to an operations and
maintenance program. 
 Removal eliminates the source of asbestos and ends the threat of future exposure. However, removal of ACM, is very
expensive and time-consuming, and it may be necessary to replace the removed material. 
 Record Keeping 
 The Asbestos Maintenance Program shall include record keeping, documentation and tracking reports of the following: 
  

	 	A.	Procedures for inventory of all identified ACM. 

  

	 	B.	Procedure for periodic examination of all ACM to detect deterioration. 

  

	 	C.	Procedures for establishing the Maintenance Activity Permit System. 

  

	 	D.	Written procedures for handling ACM during the performance of small scale, short duration maintenance and renovation activities. 

  

	 	E.	Written procedures for disposal of asbestos and ACM. 

  

	 	F.	Procedures for dealing with asbestos related emergencies. 

 All members of the building’s maintenance staff (custodians, electricians, heating/air conditioning engineers, plumbers, etc.) who are likely to be required to handle ACM must be trained in
accordance with asbestos regulation requirements, the O&M Program and emergency response procedures. 
  

					
		  	2	  	

 PROGRAM SUMMARY 
 ARCO Plaza, Los Angeles, California 
  
 The Asbestos Coordinator shall ensure all survey reports for the property are kept in an area easily referenced (in the case of an emergency) by maintenance personnel. 
 Inspection of the property will be conducted annually to allow the Environmental Consultant and the Asbestos Coordinator to report any deterioration or
change in condition of the ACM. Evaluation of the material(s) will be conducted at that time to assign Risk Assessments Factors. Air monitoring will be conducted at this time, if required. 
 Asbestos related disease is correlated with airborne asbestos fibers. If ACM is properly managed, the airborne asbestos levels in the building can be
kept very low. 
 Long Term Management 
 The primary reason for establishing an O&M Program is to implement a satisfactory long-term management approach for controlling exposure to asbestos which is retained in the building. This long term
approach encompasses all ACM which is in good condition, not damaged, and not likely to be disturbed. 
 Maintaining the good physical condition
of the ACM identified in the building is the primary task until a decision is reached to remove the material completely due to necessity (i.e. forecasted major renovation or demolition projects). 
 Major points of this Operations and Management Program are: 
  

	 	A.	Instruct and train building occupants and employees regarding the areas identified as containing ACM and the hazards associated with the exposures to asbestos.

  

	 	B.	Restrict access to the material(s) by implementing a permit system to prevent the accidental access or disturbance of the ACM during routine maintenance operations
conducted on the property. 

  

	 	C.	Implement and train employees on the Fiber Release Episode Response Plan. 

  

	 	D.	Implement procedures to limit exposure to asbestos during small scale, short duration asbestos removal activities. 

  

					
		  	3	  	

 PROGRAM SUMMARY 
 ARCO Plaza, Los Angeles, California 
  

	 	E.	Implement a Respiratory Protection Program for those employees who are to be trained in small scale, short duration work activities. 

  

	 	F.	Establish a Medical Surveillance Program for those employees who are identified for placement on the Respiratory Protection Program. 

  

	 	G.	Conduct a continuing Environmental Monitoring and Surveillance Program. 

  

					
		  	4	  	

 2 
 Responsibilities and Role Definitions 
  

					
		  		  	

 RESPONSIBILITIES AND ROLE DEFINITION 
 Role Definitions 
 The success of the
O&M Program depends on the active participation and interaction of the building management, maintenance staff and outside contractors. Each party must clearly understand their role in the O&M Program. Participation and role definition are as
follows: 
  

	A.	Asbestos Coordinator - Provides the overall responsibility for implementation of the O&M Program and serves as the coordinator of all activities related to
asbestos-containing material control. Assures that all maintenance personnel are aware of the location of identified asbestos-containing material, educated in the potential hazards of asbestos, and trained in the proper use of personal protective
equipment and safe work practices. Perform periodic evaluations of the asbestos-containing material for damage or deterioration. Implement the Maintenance Activity Work Permit System and the Medical and Respiratory Protection Programs. The asbestos
coordinator should be trained (at minimal) by 16 hours of specialized O&M training. 

  

	B.	Respiratory Program Manager - This person is responsible for implementation of and adherence to the provisions of the Respiratory Protection Program. This
individual should have supervision of maintenance staff assignments and duties. 

  

	C.	Maintenance Staff - shall be trained in the recognition of asbestos-containing material, potential health hazards associated with ACM, and trained to use
appropriate techniques and procedures to work around ACM. Responsible for notifying the Asbestos Coordinator if asbestos-containing materials are to be disturbed. 

  

	D.	Building Occupants/Tenants - Be notified of identified ACM within the building, aware of the potential hazards of asbestos-containing material. Report to the
Asbestos Coordinator any incidents where damage to ACM have been observed. Building occupants shall not disturb identified ACM. 

  

	E.	Environmental Consultant - Advises the Asbestos Coordinator in recommended techniques and procedures. Performs material sampling, visual inspections, risk
assessment and air monitoring. Provides Asbestos Awareness training and conducts training for maintenance personnel for Asbestos Work Activities involving small scale, short duration projects. Performs semi-annual Respiratory Fit-Tests and assists
in the annual program review. 

  

	F.	Asbestos Abatement Contractor - Perform asbestos abatement activities in areas deemed necessary. Demonstrate ability to perform asbestos abatement activities by
submitting evidence of the successful completion of training courses covering asbestos abatement. 

  

					
		  		  	

 RESPONSIBILITIES AND ROLES 
 ARCO Plaza, Los Angeles, California 
  
 Specific Responsibilities 
  

	A.	Asbestos Coordinator: 

 Coordinates Notifications and Activities involving ACM with: 
  

	 	•	 	 Building Occupants 

  

	 	•	 	 Maintenance Staff 

  

	 	•	 	 Asbestos Abatement Contractors 

  

	 	•	 	 Environmental Consultant 

 Maintain O&M Program Records to include the following: 
  

	 	•	 	 Survey Inspection Reports 

  

	 	•	 	 Notification Records 

  

	 	•	 	 Training Records 

  

	 	•	 	 Maintenance Staff Work Records 

  

	 	•	 	 Maintenance Activity Work Permit 

  

	 	•	 	 Asbestos Abatement Contractor Documentation 

  

	 	•	 	 Air Monitoring Results 

  

	 	•	 	 Waste Disposal Manifests 

  

	 	•	 	 Implements Standard Operating Procedures 

  

					
		  	6	  	

 RESPONSIBILITIES AND ROLES 
 ARCO Plaza, Los Angeles, California 
  

	B.	Respiratory Protection Manager: 

 Ensures Maintenance Personnel are adequately trained and fit-tested for Respiratory protection for small scale, short duration projects as specified. Maintains records of the following: 
  

	 	•	 	 Medical Surveillance 

  

	 	•	 	 Respiratory Training 

  

	 	•	 	 Respiratory Fit-Tests 

  

	 	•	 	 Asbestos Work Activities Training 

  

	 	•	 	 Maintenance Activities Work Permit 

  

	C.	Maintenance Staff Responsibilities: 

 Performs activities in the vicinity of asbestos-containing materials following appropriate procedures including: 
  

	 	•	 	 Obtaining prior approval for the work activity to commence using the Permit System 

  

	 	•	 	 Avoiding disturbance to the asbestos-containing material during the work task. 

  

	 	•	 	 Observing material deterioration or damage and reporting to the Asbestos Coordinator. 

  

	 	•	 	 Reporting of the presence of debris from damaged or deteriorated asbestos-containing materials to the Asbestos Coordinator for immediate clean-up.

  

	 	•	 	 Adhering to work practices and control specified in the O&M Program (Standard Operating Procedures). 

  

					
		  	7	  	

 RESPONSIBILITIES AND ROLES 
 ARCO Plaza, Los Angeles, California 
  

	 	•	 	 Ensuring compliance in the Respiratory Protection Program. 

  

	D.	Building Occupants/Tenants: 

 Be aware of the hazards associated with asbestos-containing material fiber release by: 
  

	 	•	 	 Attending an Asbestos Awareness Briefing. 

  

	 	•	 	 Signing and returning Notification Letters. 

  

	 	•	 	 Reporting any potential ACM fiber release episodes. 

  

	E.	Environmental Consultants: 

 Provide analytical laboratory, assist the in the initial building inspection, develop contract specifications for abatement projects, and provide training to include: 
  

	 	•	 	 Advise on the appropriate asbestos related practices and procedures. 

  

	 	•	 	 Conducts Asbestos Awareness Training 

  

	 	•	 	 Trains necessary maintenance personnel on Asbestos Work Activities 

  

	 	•	 	 Conducts Respiratory and Personal Protection Program and Semi-annual Fit-Testing. 

  

	 	•	 	 Conducts Air monitoring as necessary 

  

	 	•	 	 Conducts annual re-inspection of ACM conditions including air monitoring surveillance. 

  

					
		  	8	  	

 RESPONSIBILITIES AND ROLES 
 ARCO Plaza, Los Angeles, California 
  

	F.	Asbestos Abatement Contractor: 

 Performs the removal of asbestos-containing material in areas assessed by the Environmental Consultant and the Asbestos Coordinator. 
  

	 	•	 	 Perform all work according to current EPA and OSHA Regulations. 

  

	 	•	 	 Reports to the Asbestos Coordinator 

  

					
		  	 9
	  	

 3 
 Building Surveillance 
  

					
		  		  	

 BUILDING SURVEILLANCE 
 Building Surveillance, including visual inspection of material and periodic air sampling, is an important part of the O&M program. 
 Visual Inspection 
 Periodic Building Surveillance will ensure that the condition of
ACM present within a building is monitored and documented. Inspections to evaluate ACM condition will be conducted by the maintenance staff on an annual basis. The Asbestos Coordinator will initiate and organize these inspections. All findings will
be reported to the Asbestos Coordinator for historical record keeping. 
 All areas containing ACM will be checked. Those areas not accessible
will be checked to ensure that the status of inaccessibility has not changed. All pipe insulation in all areas must also be inspected. Inspection of the pipe elbows accessible through the temporary removal of ceiling tiles or access panels will also
be performed as part of the pipe insulation inspections to check for water damage. 
 Inspection records shall be maintained to document the
location and condition of the ACM. The record will include information on the type of material inspected, general material condition, movement in the area or the presence of a ventilation plenum or other air disturbance in the area. The inspection
will also include an investigation of any previously unidentified debris or damage and report all findings to the Asbestos Coordinator. 
 An
annual visual inspection of all areas of the building known to contain ACM will be conducted by the Environmental Consultant. The purpose of the inspection will be to check for any damage, deterioration or change in the condition of the ACM (i.e.
delamination, water damage, vandalism). Air sampling will be conducted during this time to document compliance with the Permissible Exposure Limits (PELs) during Asbestos Work Activities. 
 Results of the first year inspections will be evaluated by the Environmental Consultant. After the initial year of implementing the Operations and
Maintenance Program (O&M), the frequency of inspections conducted by the Environmental Consultant will be decided. 
 Additional inspections
shall be conducted prior to any renovation or other major activity that could lead to the disturbance of ACM. 
 Quarterly building inspection
forms used for the assessment of ACM are provided in Appendix E. 
  

					
		  		  	

 BUILDING SURVEILLANCE 
 ARCO Plaza, Los Angeles, California 
  
 Periodic Air Sampling 
 Air monitoring, a significant part of a complete O&M
program, is used to detect airborne asbestos fibers. Air monitoring may provide useful supplemental information when conducted along with a comprehensive visual ACM inspection and reinspection program. If the ACM is currently in good condition,
increases in airborne asbestos fiber levels at some later time may provide an early warning of deterioration or disturbance of the material. 
 To use air monitoring in an “early warning” context, a baseline asbestos level should be established soon after the O&M program is initiated. Multiple air samples should be collected throughout the building over a long enough
period of time to be representative of “normal” conditions, in order to adequately determine prevailing fiber levels in the building. 
 The most accurate analysis of air samples would require the use of transmission electron microscopy (TEM). Phase contrast microscopy (PCM), which has been typically used in the past and is required by OSHA for personal monitoring, cannot
distinguish between asbestos fibers and other types of fibers. 
 Building owners should note that some of the exposure of persons to airborne
asbestos fibers in buildings may result from episodic events, such as repair work, the accidental jarring of the ACM or the disturbance of ACM debris by maintenance activities inside the building. Air monitoring may not be done frequently enough or
in the appropriate area to include such episodic events. 
 Examining settled dust for accumulations of asbestos fibers is another assessment
method currently being experimented with as part of an O&M program. Although building owners may gain additional information through this analysis, no standard protocols currently exist for sampling and analysis. 
 An environmental monitoring plan shall be established by the Environmental Consultant to characterize airborne asbestos levels for all operations. Sampling
of all areas where repetitious asbestos-related work is performed shall be conducted at intervals of one year or less to verify that the work site/operations have remained stable or if deterioration has occurred. Repetitious asbestos related work is
defined here as any continued work in an area previously identified as containing airborne asbestos at a level of one-half the Permissible Exposure Limit (PEL) listed in the document, or where a high possibility of further material damage is
evident. Each non-repetitious asbestos removal operation will be sampled at least once to determine the maximum potential exposure. Each asbestos removal operation in a closed space will require at least one air sample to be taken upon completion of
the operation to verify that clean-up operations were effected and the area is safe for personnel to enter without protective equipment. 
  

					
		  	11	  	

 BUILDING SURVEILLANCE 
 ARCO Plaza, Los Angeles, California 
  
 Environmental air monitoring documentation, which represents the maximum potential exposure to workers involved with asbestos removal operations, shall be retained for a period of 30 years. 
  

					
		  	12	  	

 4 
 Health Effects Associated with Asbestos Exposure 
  

					
		  		  	

 HEALTH EFFECTS ASSOCIATED WITH ASBESTOS EXPOSURE 
 The adverse health effects associated with asbestos exposure have been extensively studied for many years. Results of these studies and epidemiologic
investigations have demonstrated that inhalation of asbestos fibers may lead to an increased risk of developing one or more diseases. The respiratory system and the diseases associated with airborne asbestos exposure will be examined in the
following section. The risk factor and how that risk may be minimized will additionally be examined. 
 It is important to recognize that the
majority of people who have developed a disease as a result of asbestos exposure were asbestos workers. Typically, these workers were involved in the direct manufacturing or applications of the products and were therefore frequently exposed to high
concentrations of asbestos fibers each working day with little or no protection. Today’s asbestos abatement worker follows specific work practices and wears appropriate protection, including respirators, to minimize the risk of exposure.

 The Respiratory System 
 The primary health effects of asbestos are due to inhalation of asbestos fibers. A brief discussion of the respiratory system will help in understanding these effects. As air is breathed into the body, it passes through the mouth and nose
into the windpipe or trachea. The trachea splits into two smaller airways called the bronchi. Each bronchus divides into smaller and smaller tubes which terminate into air sacs called alveoli. In these air sacks, oxygen is absorbed into small blood
vessels and waste gases such as carbon dioxide pass out of the blood. 
 The lung itself is divided into two halves and sits in the pleural
cavity. Lung linings are in contact with each other and are very moist. Just like two panes of glass with a drop of water between them, these linings slide easily across each other, but are very difficult to pull apart. Accordingly, as the chest
cavity expands, the lungs expand and the air rushes in. If these linings (mesothelia) were to become damaged, inhalation would be impaired. 
 The body has several mechanisms by which it filters the air it breathes. First, very large particles are removed in the nose and the mouth. Many smaller particles impact on the mucous-coated walls of the airways and are caught. These
airways have a hair-like lining (ciliated cells) which constantly beats upward. Accordingly, particles caught in the mucous are swept up into the back of the mouth. From here they are swallowed or expelled. 
 Cigarette smoking temporarily paralyzes these ciliated cells, inhibiting one of the body’s natural defenses against unwanted dust. As the smoker
sleeps, the hair-like cells start working again and carry large amounts of mucous into the back of the mouth, thus producing the so-called “smoker’s 
  

					
		  		  	

 HEALTH EFFECTS 
 ARCO Plaza, Los Angeles, California 
  
 hack” in the morning. After the first cigarette or two, the cleansing mechanism is paralyzed again and the coughing stops. It should now be evident why cigarette smokers who are exposed to asbestos
appear to be at greater risk. Other reasons will also be discussed later in this section. 
 Some dust particles may inevitably reach the tiny
air sacs even with the above mentioned cleansing mechanisms. Macrophages (large immune cells) attempt to engulf these particles and digest them. As a secondary defense mechanism, these cells deposit a coating on the trapped fibers that are inhaled
and scar tissue is formed. In some instances, the likelihood of getting an asbestos related disease is associated to the time one is exposed. This is called a dose-response relationship. It should be noted, however, that no safe level has been
determined. 
 Asbestos Related Diseases 
 Asbestosis 
 Asbestosis is a disease characterized by fibrotic scarring of the lung tissue
around inhaled asbestos fibers trapped in the lungs. It is a restrictive lung disease which reduces the capacity of the lung, the most common symptom of which is shortness of breath. Asbestosis is prevalent among workers who have been exposed to
large doses of asbestos fibers over a long period of time. The dose-response relationship between asbestos exposure and the development of this disease has been indicated. This means that the greater the asbestos exposure, the more likely asbestosis
will develop. All forms of asbestos have demonstrated the ability of developing the disease. Usually there is a period of time between the initial exposure and the first appearance of symptoms. This is known as a latency period. A latency period for
developing asbestosis is typically fifteen to thirty years from the time of exposure. 
 Lung Cancer 
 Asbestos exposure is only one of many causes of lung cancer. Industrial exposures to asbestos in past years have increased the risks of persons developing
the disease, however, their risk is not as great as those who smoke. (The risk factor for those exposed to asbestos is five times the national average, while the risk factor to those who smoke is ten times the national average). These two factors
are synergistic. The cigarette smoker who works with asbestos is more than fifty times more likely to contract lung cancer than the normal population. 
 There exists a lag time between exposure and occurrence of lung cancer, typically 20-30 years. There appears to be a dose response relationship between asbestos exposure and lung cancer. 
  

					
		  	14	  	

 HEALTH EFFECTS 
 ARCO Plaza, Los Angeles, California 
  
 These figures relate to past industrial situations where workers wore little or no protective equipment. Proper protection and work practices will substantially lessen the risk. 
 Mesothelioma 
 Mesothelioma is the rarest
asbestos related disease. Although exposure to asbestos has been strongly associated with most cases of mesothelioma, some cases may occur without asbestos exposure. Mesothelioma is a cancer of the chest cavity lining (mesothelium). This disease can
also occur in the lining of the abdominal cavity, it is known as peritoneal mesothelioma. This type of cancer spreads very rapidly and is always fatal. The exact cause remains unknown. 
 There does not appear to be any increased risk of mesothelioma for smokers and there does not appear to be a dose relationship between asbestos exposure and mesothelioma. Cases have been recorded where
the person’s asbestos exposure has been limited. If the disease is to occur it will take 30 to 40 years to develop after the initial exposure. 
 Pleural Plaques 
 Pleural plaques are a thickening of the pleura—the covering of the chest wall and lining. While not a
disease, these plaques are actually composed of scar tissue due to the body’s reaction to asbestos; it is easily recognized on medical x-rays. When present, pleural plaques indicate past exposure to asbestos but they are not cancerous and do
not necessarily indicate that asbestos diseases will develop. 
 Other Diseases 
 Several other diseases are found more often among persons exposed to asbestos than in the normal population. These include cancer of the esophagus, stomach,
colon, and pancreas, pleural thickening, and pleural effusion. The incidence of these health effects is much less than lung cancer. Again, the importance of using the proper work practices and protective equipment cannot be overemphasized to
minimize the occurrence of these diseases due to unnecessary asbestos exposure. 
 The National Institute for Occupational Safety and Health
(NIOSH) and the Environmental Protection Agency (EPA) have concluded that there is no known threshold of exposure to asbestos below which there is no risk. 
 Underestimating the hazards associated with asbestos exposure will lead to an inadequate level of personal protection. 
  

					
		  	15	  	

 5 
 Asbestos Containing Materials (ACM) 
  

					
		  		  	

 HEALTH EFFECTS 
 ARCO Plaza, Los Angeles, California 
  
 Many employers and workers underestimate or ignore the health risks associated with exposure to asbestos because: (1) most asbestos fibers are invisible to the human eye; (2) breathing or
swallowing asbestos fibers does not produce an immediate effect, such as pain or bleeding; and (3) the development of diseases caused by asbestos exposure usually takes many years. 
 It should be noted that studies reveal a statistically excessive number of cases of pleural abnormalities have been observed among the dependents (household contacts) of asbestos workers. Presumably,
nonoccupational exposures would result in qualitatively similar effects. 
 Exposure Control 
 Asbestos related diseases are associated with inhalation of airborne asbestos fibers. Conditions that make asbestos a hazard are controlled through a
successful Operations and Maintenance Program. The following points will be assessed through surveys and reoccurring inspections of the property: 
  

	 	A.	Friability of the asbestos containing material (ACM), friability is defined here as being easily crumbled or reduced to a powder by hand or through mechanical means.

  

	 	B.	Condition of the ACM 

  

	 	C.	Location of the ACM 

  

	 	D.	Physical damage - material deterioration due to water, steam, drilling, vibration, sanding, air currents, abuse. 

  

	 	E.	Periodic air monitoring surveillance will be performed to assess the levels of ambient airborne asbestos fibers. 

  

					
		  	16	  	

 ASBESTOS-CONTAINING MATERIAL (ACM) 
 Definition 
 Asbestos is the generic
name applied to a group of six fibrous silicate minerals which occur naturally in the earth’s crust. Within the definition of asbestos are included two mineralogical classifications: serpentine and amphibole. 
 Each of these classifications is again sub-divided into specific mineralogical species. Some of these species are “non-fibrous” and therefore, are
not “asbestos”. The other species are fibrous and therefore, are included in the definition of asbestos. The breakdown of species is as follows: 
 Serpentine Minerals 
 Asbestos Species - Chrysotile * 
 Non-Asbestos Species - Lizardite, Antigonite 
  

	*	Chrysotile comprises 90% of all asbestos in the United States in use. 

 Amphibole Minerals 
 Asbestos Species - Amosite (comprises 9% of all U.S. usage),
crocidolite (comprises 1% of all U.S. usage), fibrous tremolite, fibrous anthophyllite, fibrous actinolite 
 Non-Asbestos Species -
Cummingtonite-grunerite, riebeckite, non-fibrous tremolite, non-fibrous anthophyllite, non-fibrous actinolite 
 The corresponding asbestos and
non-asbestos species can be chemically identical to each other. However, in the asbestos form, the molecules arrange themselves in very long, thin fibers which are flexible and very strong. The non-asbestos species form plates or other shapes rather
than fibers. Unfortunately, sometimes the non-asbestos plates break into long thin needles which resemble asbestos but actually are not asbestos. Analysis by polarized light microscopy methods must be performed to determine the species. 

Note: The industrial use and supply of fibrous tremolite, fibrous anthophyllite and fibrous actinolite are extremely rare. It is highly unlikely that
these three types of asbestos will be discovered on a property within the United States. 
  

					
		  		  	

 ACM 
 ARCO Plaza, Los Angeles, California 
  
 Asbestos
fibers have been used in two to three thousand different applications in our society. The most common uses of asbestos have been: 
  

	 	•	 	 Thermal and acoustic insulation 

  

	 	•	 	 Fireproofing 

  

	 	•	 	 Textiles 

  

	 	•	 	 Asbestos concrete 

  

	 	•	 	 Plastic products (vinyl floor tile) 

  

	 	•	 	 Paper products 

  

	 	•	 	 Gaskets, packaging 

  

	 	•	 	 Roofing felts, papers 

  

	 	•	 	 Electrical insulation 

 ACM Classifications 
 ACM is categorized according to its ability to be crushed and release fibers into the air. The
categories are as follows: 
 Friable - Any ACM which can be crumbled, pulverized or reduced to powder by hand pressure.
This may include previously nonfriable material which has become broken or damaged. 
 Nonfriable - Any ACM which, in its
current state, cannot be crumbled, pulverized or reduced to powder by hand pressure. 
 Class I Nonfriable -
Nonfriable ACM which may be broken or reduced to powder in the course of demolition or renovation activities (i.e., mechanical force, sanding, blasting, scraping, etc.). 
 Class II Nonfriable - ACM that is neither friable or Class I nonfriable. 
 ACM Applications 
 Surfacing Fireproofing 
 Many office buildings and schools are constructed with non-fireproof structural steel frames. The exposed metal beams, decking and supports could melt or loose their strength if exposed to the excessive
heat of a building fire. Therefore, the steel components in many of these buildings were sprayed with a mineral fireproofing which often contained asbestos. 
  

					
		  	18	  	

 ACM 
 ARCO Plaza, Los Angeles, California 
  
 Asbestos
content varies from a few percent up to forty to fifty percent. Usually, structural fireproofing can vary from fairly hard to very soft (friable). The thickness of this material can vary from one to six inches. The use of asbestos containing
fireproofing was banned in 1972. 
 Acoustical Insulation 
 Asbestos was very commonly included in the formulation of spray or trowel applied acoustic insulation on buildings ceilings and walls. The asbestos concentration can vary from less than 1% to
approximately 25%. Chrysotile is by far the most common variety of asbestos found in acoustic applications but amosite occurs occasionally. Spray applied products are almost always friable. Trowelled-on insulation can be somewhat friable but is
often very hard and cement-like. The use of this material was banned in 1978, including decorative material. 
 Textured Paints and Plasters

 Various textured paints and plasters have been found to contain asbestos. Textured paints and plasters run the range from fairly friable
and soft to very hard and non-friable. In 1975, there was a voluntary removal from the market of textured paint containing asbestos. 
 Ceiling Tiles 
 A very small percent of acoustic ceiling tiles contain asbestos. Usually, these tiles are made of pressed
cellulose, wood pulp, fiberglass, or other mineral wools, alone or in combination. When present, the concentration of asbestos is usually in the range of five to twenty percent. Most ceiling tiles are considered slightly to moderately friable.

 HVAC Insulation and Thermal System Insulation 
 Pipe Insulation - Hot steam and water pipes were very commonly insulated with ACM. The use of insulating mechanical systems with ACM was banned in 1976. The asbestos was used in several forms: 

Aircell - A corrugated asbestos paper product which looks like grey cardboard. Usually, several layers of aircell are found around
a pipe and covered with canvas or asbestos lagging cloth. Aircell is almost always chrysotile, usually containing very high concentrations ranging from 50% to 90%. Aircell can be very friable if damaged. Covered aircell, while intact, is not very
friable. 
  

					
		  	19	  	

 ACM 
 ARCO Plaza, Los Angeles, California 
  
 Block Insulation - Asbestos may be mixed with other binders and cast into rigid forms to create block pipe insulation. Designed to be wrapped around pipe, the forms are held in place with metal bands, ties or cloth. Block insulation
is usually covered with lagging cloth made of canvas, tar paper, metal jackets or woven asbestos. 
 In some instances, block
insulation may be designed to be used without any surface covering. Asbestos contents range from 10% to 80%. Friability of this material largely depends on the condition of the outside covering. Moderately soft and easily gouged with a minimal
pressure, block insulation can be highly friable if the lagging cloth or outer surface has decayed. This insulation often contains amosite asbestos. 
 Elbow/Joint Mud - Insulation mud can be found at pipe elbows, valves and joints. Elbow mud while intact and undamaged, is usually non-friable. Decayed or damaged, elbow mud can be extremely
friable. Percentages of asbestos content range from five to thirty. This mud can also be hidden from sight by fiberglass insulation surrounding pipes. This insulation often contains amosite asbestos. 
 Air Supply Duct Wrap 
 The hot air supply
ducts common to forced air and gravity heaters in homes, small apartments and school buildings were very often wrapped with one or more varieties of asbestos containing products. The most common application is air cell, similar to the corrugated,
cardboard-like product found around pipes. 
 Sometimes the exterior surface of the aircell is coated with a thin metal foil (foil-faced).
Another common product is asbestos taping, a thick, textured asbestos paper tape (similar to paper mache) used on registers and duct work seams or return air ducts. Asbestos tape was often applied inside air return registers. In large buildings
asbestos tape was very commonly applied at the edges of fiberglass sheets installed over air ducts for acoustic insulation purposes. Asbestos paper products manufactured contain concentrations of asbestos ranging from 30-90%. Well adhered, thin
products usually have low friability while poorly adhered or deteriorated applications can be highly friable. 
 Boiler Insulation

 Boilers are commonly insulated with asbestos block and mud products similar to those formed on pipes. Pre-formed blocks, sheets and bricks
of asbestos plus binders were wrapped around the exterior metal surface of the boiler and held in place with asbestos mud and covering cloth of canvas or asbestos. As in block pipe insulation, asbestos concentration can vary widely, in this instance
from 10% to 80%. 
  

					
		  	20	  	

 ACM 
 ARCO Plaza, Los Angeles, California 
  
 Chrysotile is
the most common asbestos variety. Amosite is often found, especially in the muddying compounds. Intact boiler insulation is non-friable. However, damaged or decaying insulation can be extremely friable. 
 Furnace Insulation 
 Hot air furnaces and
plenums were often wrapped with asbestos paper products identical to those used on pipe insulation. Occasionally, some internal components all have been insulated with asbestos products. Characteristics of these products are described above under
pipe and duct insulation. 
 Exhaust Systems 
 Many exhaust ventilation ducts running off water heaters, small furnaces and some laboratory fume hoods are made of asbestos cement, commonly referred to by the trade name transite. Asbestos cement
contains ten to fifty percent chrysolite, amosite or crocidolite. Intact transite ductwork is non-friable. However, any activity which disturbs the ACM integrity such as drilling or sawing, will release asbestos fibers into the air. Portions of
these exhaust ducts are often made of copper or sheet metal and the seams are commonly wrapped with 4” (four inch) wide asbestos taping. 
 Fabric Vibration Isolation Joints 
 Large HVAC fans are often isolated from their associated ductwork with a flexible cloth made
of asbestos. This cloth is fifty to ninety percent chrysotile asbestos and is usually friable. 
 Structural Products 
 These are comprised of the following materials: 
 Walls - Building walls were constructed with a number of products which might contain asbestos. Asbestos was very common in joint or taping compounds used to fill the cracks in drywall barriers.
Drywall itself rarely contains asbestos. Plaster can contain asbestos but it is fairly rare. 
 Walls made of asbestos cement
(transite) sheets may contain ten to fifty percent asbestos. All of these wall applications for asbestos are non-friable unless they are cut into, subject to abrasion or decaying. 
  

					
		  	21	  	

 ACM 
 ARCO Plaza, Los Angeles, California 
  
 Roofing - Asbestos was and continues to be used extensively in roofing products. Asbestos containing roofing products include asphalt shingles, roofing felt, roofing paint and roof patching compounds. 
 All of these products are considered non-friable when they are new. Heat, water and time can cause these products to become moderately
friable. Asbestos content varies widely, although chrysotile is by far the most common type. 
 Flooring 
 Flooring can be divided into two main categories: 
 Vinyl or Asphalt Floor Tiles - Asbestos was very commonly used to reinforce vinyl or asphalt floor tiles. Many nine by nine inch square tiles and some larger twelve inch square tiles were produced
with five to twenty-five percent asbestos. Vinyl asbestos floor tiles are generally considered non-friable unless severely disturbed or subjected to abrasion. However, the compounds used to adhere these tiles to the sub-floor often contains
asbestos. Old adhesive (mastic) can be quite friable and may release fibers if the overlying tile is removed. 
 Vinyl Sheet
Floor Covering (Linoleum) - Old linoleum can possess a semi-friable backing of twenty to sixty percent chrysotile asbestos. This backing is not very friable on the non-installed product; however, tearing up old linoleum which was glued down can
severely disrupt this backing material and release asbestos fibers. 
 NOTE: Other building materials, in addition to these, may be found
to contain asbestos. 
 Regulatory Controls 
 Overwhelming scientific evidence regarding the adverse health effects of asbestos on public health initiated governmental agencies to take a series of actions since 1972 to reduce public exposure to
asbestos. These actions include a ban on most sprayed-on and trowelled-on products of asbestos; a ban on the use of asbestos to wrap pipes, regulations on the removal, transport, and the disposal of asbestos, and the establishment of a program
requiring every primary and secondary school in the country to inspect for asbestos. 
  

					
		  	22	  	

 ACM 
 ARCO Plaza, Los Angeles, California 
  
 The following
is a historical schedule of imposed bans of ACM: 
  

			
	 Year of Imposed Ban
	  	 Material

	 1972
	  	Sprayed-on Insulation
		
	 1975
	  	Textured Paint (voluntary removal)
		
	 1976
	  	Mechanical Systems Applications
		
	 1977
	  	Patching Compounds/Emberizing Materials
		
	 1978
	  	Acoustical and Decorative Materials
		
	 1980
	  	Hand-held Dryers (voluntary removal)
		
	 1986
	  	Proposed Ban by the Environmental Protection Agency for a Ten Year Phase-out of all other ACM.

 The Ten Year Phase-out plan by the Environmental Protection Agency to control all other ACM under a staged ban rule prohibits the future manufacture, importation, processing and distribution of most
asbestos products. 
 First Stage Ban (1991): 
  

	 	•	 	 Felt Products - pipeline wrap, roofing felt, and flooring wrap 

  

	 	•	 	 Asbestos Cement and asbestos containing (A/C) products 

  

					
		  	23	  	

 ACM 
 ARCO Plaza, Los Angeles, California 
  

	 	•	 	 A/C Sheet - corrugated, A/C Sheet - flat 

  

	 	•	 	 Vinyl asbestos floor tile 

  

	 	•	 	 Asbestos clothing 

 Second Stage Ban (1993): 
  

	 	•	 	 Friction Products - drum brake linings, disc products for light, medium-weight and heavy vehicles, clutch facings, automatic transmission components,
industrial and commercial friction products, and gaskets 

 Third Stage Ban (1997): 
  

	 	•	 	 Coatings, roofing and non-roofing 

  

	 	•	 	 Paper Products - Commercial, rollboard, millboard, corrugated paper, specialty paper 

 Products Outside the Ban 
 The following
asbestos products are not banned by the rule. They constitute a relatively small percentage of asbestos use. These products are not only costly to ban because of the unavailability of reasonable-cost, suitable substitutes. In most cases the release
of asbestos over the products life cycle does not result in a particularly high exposure concern. Relative to the products that are banned by this rule examples of asbestos products which are not scheduled for regulation are acetylene cylinders, arc
chutes, asbestos diaphragms, battery separators, high-grade electrical paper, missile liners, reinforced plastic, sealant tape, asbestos thread, packing, certain industrial uses of both sheet gaskets and beater-add gaskets. 
  

					
		  	24	  	

 6 
 Regulations Governing Asbestos 
  

					
		  		  	

 REGULATIONS GOVERNING ASBESTOS 
 The following is an overview of federal, state, and local regulations which govern asbestos. 
 Federal 
 Occupational Safety and Health (OSHA) 
 29 Code of Federal Regulations (CFR) 
 Part 1910.1001 - general industry standards for asbestos 
 Part 1910.134 - use of respirators 
 Part 1926.1101- construction industry standards 
 Environmental Protection Agency (EPA) 
 40 CFR part 61, subpart M - National Emissions Standard for Hazardous Air Pollutants (NESHAP) 
 40 CFR part 763 
 Subpart D - Commercial and industrial uses of
asbestos 
 Subpart E - AHERA, ACM in school 
 Subpart F - AHERA, friable ACM in schools 
 Subpart G - asbestos abatement, worker protection 
 Subpart I - ban and phase-out 
 State 
 California Occupational Safety and Health (Cal OSHA)

 Title 8, Section 5208 
 Department of Health Services (DOHS) 
 Title 22 Division 4,
chapter 30, section 66699 
 Regulates asbestos waste in California 
  

					
		  		  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  
 Other State Regulations 
 Prop. 65 
 AB3713 and Amendment 1564 - Connelly Bill 
 Notification rule 
 Local 
 San Diego Air Pollution Control District (SDAPCD) 
 Rule 361.145 Standard for Demolition and Renovation 
 Notifications and Registrations 
 State 
 SDAPCD - Rule 361.145 - Standard for Demolition and Renovation 
 AB 3713 - Connelly Bill - Notification to building occupants 
 Cal OSHA -
Contractors notify for all asbestos work Carcinogen user registration (one time for contractor) 
 DOHS - Hazardous waste
manifests for asbestos disposal 
 CSLB (Contractors State Licensing Board) 
 Federal 
 EPA / NESHAPS - Contractor notify for asbestos work over 100 square feet 
 AHERA - AHERA training
required to work in schools 
  

					
		  	26	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  
 Overview of Asbestos Regulations 
 Occupational Safety and Health Administration
(Federal OSHA) 
 29 CFR Part 1910.1001 Asbestos Standard (General Industry) 
 29 CFR Part 1926.1101 Asbestos Standard (Construction Industry) 
 OSHA is concerned with worker protection and procedures used to control Asbestos Containing Materials (ACM). 
 In general, OSHA coverage extends to all private sector employers and employees in the 50 states and all territories under federal jurisdiction. Those not covered under the standard include: certain state
and local government employees, and federal employees covered under other federal statutes. Persons engaged in inspection, management planning, and other asbestos-related work in schools fall under OSHA’s construction industry standard.

 To enforce its standards, OSHA is authorized to conduct workplace inspections. In addition, employees have the right to file an OSHA
complaint without fear of punishment from the employer. In tum, employees have the responsibility to follow all safety and health rules. OSHA may not conduct warrantless inspection without the employer’s consent. Citations are issued by OSHA
during an inspection if the compliance officer finds a standard being violated. The citation informs the employer and employees of the regulations or standards alleged to have been violated and of the proposed length of time for correction. Monetary
penalties may also be imposed. 
 29 CFR 1910.1001 is the general industry standard which applies to all workplaces in all industries and
obligates all commercial employers to maintain a workplace free of hazards. 
 29 CFR 1926.1101 is the construction industry standard which
covers employees engaged in demolition, construction, and the following related activities likely to involve asbestos exposure: removal, encapsulation, alteration, repair, maintenance, insulation, spill/emergency clean-up, transportation, disposal
and storage of asbestos-containing material. 
 Both 29 CFR 1910.1001 and 29 CFR 1926.1101 include similar requirements. A basic summary of all
major points in these federal OSHA regulations is as follows: 
  

	 	A.	Permissible exposure to airborne concentration of asbestos 

 Permissible Exposure Limit (PEL) at 0.1 f/cc or an 8-hour time weighted average - Currently, the OSHA PEL for asbestos is 0.1 fibers per cubic centimeter of air, (0.1 f/cc) as an eight-hour time-

  

					
		  	27	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  
 weighted average (TWA). the building owner shall ensure that no employee is exposed to this level without proper respiratory protection. A PEL of 0.1 f/cc is currently proposed by OSHA and should become
effective shortly. 
 Short term exposure limit (STEL) at 1.0 f/cc over a 30 minute period - for worker exposure to
asbestos of one fiber/cc averaged over 30 minutes. Check daily. 
 For the purposes of an effective O&M Program, these limits
will be used and enforced as law. The employer shall ensure that no employee is exposed to an airborne concentration of asbestos in excess of 0.1 f/cc over an eight hour TWA or 1.0 fiber per cubic centimeter of air (1.0 f/cc) as averaged over a
sampling period of thirty (30) minutes. 
  

	 	B.	Respirators 

 This section
describes procedures for respirator selection, fit testing, and care. 
  

	 	•	 	 Where a respirator is required, it shall be selected from those approved by the Bureau of Mines, Safety and Health Administration (MSHA) and the
National Institute for Occupational Safety and Health (NIOSH) under the provisions of 30 CFR Part 11, Number II. Respirators that are altered in any way voids the approval (check daily). 

  

	 	•	 	 The employer shall establish a respirator program in accordance with the requirements of the OSHA regulation 29 CFR 1910.134

  

	 	•	 	 Qualitative and/or Quantitative fit testing shall be repeated every six months (test shall not be conducted if there is any hair growth between skin
and the face piece) check initially and periodically. 

  

	 	•	 	 Where unknown concentrations of airborne asbestos dust are expected contractor must show documentation of past work experience to utilize respiratory
protection other than supplied air (Type C) systems. 

  

					
		  	28	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  

	 	C.	Medical Surveillance 

 All
employees who are to wear respirators must receive medical surveillance and must receive a written opinion from a physician stating that they are fit to wear a respirator. 
  

	 	•	 	 To be administered within 30 calendar days of first employment and then annually (check initially). 

  

	 	•	 	 Within 30 calendar days before or after termination (suggested). 

  

	 	•	 	 Maintain records for at least 30 years. 

  

	 	•	 	 Medical questionnaires must be administered to all employees who are exposed. 

  

	 	D.	Method of Measurement 

  

	 	•	 	 OSHA reference method at 400-450 X magnifications with phase contrast (check daily). 

  

	 	E.	Monitoring 

  

	 	•	 	 Initial monitoring to establish exposure level (check initially) 

  

	 	•	 	 Personal monitoring is required by any employer. 

  

	 	•	 	 Daily monitoring may be dispensed with when Type C respiratory protection is being used. 

  

	 	F.	Training 

 The employer shall
institute a training program for all employees who are exposed to airborne concentrations of asbestos. The components of the training program are described. 
  

	 	•	 	 Asbestos abatement workers must be “worker trained” and there must be a trained supervisor on-site. 

  

	 	•	 	 Individuals performing asbestos analysis must have taken the NIOSH course. 

  

					
		  	29	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  

	 	G.	Method of Compliance (check daily) 

  

	 	•	 	 Engineering controls shall be used to meet the exposure limits. 

  

	 	•	 	 Work practices only to include wet method unless variance is obtained. 

  

	 	•	 	 Establish regulated area with decontamination facility when fiber levels are expected to exceed the (PEL). 

  

	 	•	 	 Seal work area. 

  

	 	•	 	 Provide protective clothing. 

  

	 	•	 	 Low pressure supply lines can not exceed 300 feet. 

  

	 	•	 	 No visible residue requirement (for visual clearance). 

  

	 	•	 	 Small scale jobs, which include roofing jobs, total isolation not required by OSHA if alternative techniques can prevent worker exposure in excess of
action level of 0.1 f/cc. 

  

	 	•	 	 Employer shall ensure that employees do not eat, drink, smoke, chew tobacco or gum in regulated areas 

  

	 	•	 	 Except for small scale removal, demolition employer shall establish a decontamination unit that is adjacent and connected to the regulated area for
purpose of decontamination; shall consist of equipment, shower and clean room. 

 29 CPR 1910.134
Respiratory Protection Standard 
 This regulation describes the requirements to be included in a respiratory protection
program. 
 Respiratory Selection 
  

	 	•	 	 Not in excess of 2 f/cc; 10 X PEL; use 1/2 mask air purifying respirator 

  

					
		  	30	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  

	 	•	 	 Not in excess of 10 f/cc; 50 X PEL; use full face air purifying respirator 

  

	 	•	 	 Not in excess of 20 f/cc; 100 X PEL; use PAPR 

  

	 	•	 	 Not in excess of 200 f/cc; 1000 X PEL; use supplied air pressure demand mode (not NIOSH approved). 

  

	 	•	 	 Greater than 200 f/cc; 1000 X PEL; use supplied air equipped with an auxiliary positive pressure self-contained breathing apparatus

  

	 	•	 	 Requirements for a respiratory protection program 

 OSHA Notifications 
 Contractors must notify OSHA of all asbestos related
work. In addition a one time carcinogen user registration is required. 
 Environmental Protection Agency (EPA) 
 The Federal EPA is responsible for taking direct action to abate environmental problems. Additionally, the agency is divided into a number of state wide and
local agencies. The agency with the strictest role will enforce its regulations, some of the state and local regulations include the Air Quality Management District and the Department of Health Services. The federal EPA enforces several regulations
regarding asbestos including 40 CFR part 61, subpart M and 40 CFR part 763. 
 40 CFR part 61, subpart M - National Emissions Standards for
Hazardous Air Pollutants (NESHAP) 
 EPA’s rules concerning the application, removal and disposal of asbestos containing materials were
issued under NESHAP. 
  

	 	•	 	 Regulates environmental exposure of asbestos 

  

	 	•	 	 Friable asbestos and asbestos addressed under NESHAPS -Friable asbestos means any material containing greater than 1% asbestos by weight, that hand
pressure can crumble, pulverize, or reduce the powder when dry 

  

					
		  	31	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  

	 	•	 	 <80 linear meter (260 feet) or 15 square meters (160 square feet of friable asbestos) require notification 10 days before demolition. If more than
above quantified requires 20 days of notification. 

  

	 	•	 	 Use wet methods for removal. 

  

	 	•	 	 Discharge no visible emissions to the outside air: meaning any emissions containing particulate asbestos material that are visually detectable without
the aid of instruments. 

  

	 	•	 	 Transport material to the ground via dust-tight chutes or containers if they have been removed more than 50 feet above ground level and were not
removed as units. 

  

	 	•	 	 Material disposed of in specifically designated disposal sites. 

 Also included in NESHAP are rules concerning manufacturing, spraying and fabrication of asbestos containing materials. 
 NESHAP Asbestos Notifications 
 Effective January 1, 1990, the owner of any renovation
or demolition activity shall notify the District, Office of Operations of the intent to demolish or renovate any facility involving more than 100 square feet of asbestos-containing surface material, within (10) working days prior to the
commencement of the demolition or renovation work. 
 The exemptions from this rule include the owner occupant of a residential single-unit
dwelling or the owner or operator of any renovation activity or any demolition activity in which less than 100 square feet of surface area of asbestos-containing material on any facility components are removed or stripped. 
 Telephone notification is restricted to emergency demolition or emergency renovation only. The following guidelines apply: 
  

	 	•	 	 Emergency Renovation - notify as soon as possible before the asbestos stripping or removal work begins. 

  

					
		  	32	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  

	 	•	 	 Emergency Demolition - notify as soon a possible before the demolition begins. Include the information required and identify the agency, name, title
and telephone number and authority of the representative who ordered the emergency demolition. 

  

	 	•	 	 Confirm the telephone notification with a follow-up type written notification of the District, Office of Operations, postmarked within 48 hours of the
telephone notification or the following business day. 

 It is important when notifying to distinguish between renovation and
demolition because the notification requirements are different. 
 Demolition - as defined by NESHAP, means the wrecking
or taking out of any load-supporting structure member of a facility along with any related handling operation. 
 Renovation - as defined by NESHAP, means altering in any way one or more facility components. Operations in which load supporting members are wrecked or taken out are excluded. Some examples of renovation are remodeling projects
where asbestos must be removed because the remodeling work would break up the material, industrial system repairs where asbestos must be removed to reach the affected parts, removal of damaged asbestos materials from areas of public exposure or
removal of undamaged asbestos because of its potential hazard. 
 Toxic Substance Control Act (TSCA) 
 The Toxic Substance Control Act (TSCA) was enacted to deal with gaps in federal law relating to regulating toxic substances, EPA asbestos abatement and
worker protection (40CFR Part 763 subpart G), the ban and phase out of asbestos products (40 CFR part 763 subpart I), and AHERA Regulations are included in TSCA. 
 40 CFR Part 763 subpart E. 
 Asbestos Hazard Emergency Response Act (AHERA)

 AHERA covers extensive regulations governing the inspection, maintenance, and disposal of asbestos in schools. 
  

					
		  	33	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  

	 	•	 	 All public and private schools have inspections and management plans conducted by accredited inspectors 

  

	 	•	 	 Local education authority (LEA) to conduct air testing 

  

	 	•	 	 Routine visual inspections by LEA to conduct air testing 

  

	 	•	 	 T.E.M. - Clearance sampling; a minimum of 13 samples is required; five samples collected outside the abatement area and five inside the work area, two
field blanks and one sealed blank. 

 Existing EPA Guidelines for each step that a building Owner may take to control ACM

 The following is a summary of EPA written documents that may be referred to when containing ACM within your building. 
  

	 	A.	Inspect the facility to determine if ACM is present. 

  

	 	•	 	 “Guidance for Controlling Asbestos Containing Materials in Buildings” (Purple Book) EPA publication number 560/5-85-024

  

	 	B.	Appoint Asbestos Program Manager and Develop an Organizational Policy 

  

	 	•	 	 “Guidance for Controlling Asbestos Containing Materials in Buildings” (Purple Book) EPA publication number 560/5-85-024

  

	 	•	 	 “Simplified Sampling Scheme for Surfacing materials” (Pink Book) EPA publication number 560/5-85-030A 

  

	 	•	 	 Final regulations of the Asbestos Hazard Emergency Response Act (AHERA). Federal Register - October 30, 1987 sections 763.85 to 763.88

  

	 	•	 	 Model training course materials for accrediting asbestos building inspectors in accordance with AHERA (inspection/assessment materials).

  

					
		  	34	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  

	 	C.	Establish an O&M Program 

  

	 	•	 	 “Purple Book”, chapter 3 

  

	 	•	 	 This document 

  

	 	•	 	 AHERA regulations, section 763.91 and 763.92 

  

	 	•	 	 EPA Guidance for Service and Maintenance Personnel (EPA publication number 560/5-85-018) 

  

	 	D.	Implement and Conscientiously Manage the O&M Program; Assess the Potential for Exposure to Asbestos and Select Response Actions. 

  

	 	•	 	 “Purple Book”, chapter 4 

  

	 	•	 	 Model training course materials for accrediting asbestos management planners in accordance with AHERA (assessment materials).

  

	 	•	 	 AHERA regulations, section 763.88 and 793.92 

  

	 	E.	Select and Implement Abatement Actions other than O&M when necessary. 

  

	 	•	 	 “Purple Book”, chapter 6 

  

	 	•	 	 AHERA regulations, section 763.93 (including 763.85 through 763.92) 

  

	 	•	 	 AHERA regulations Appendix A “Determining Completion of Response Actions” 

  

	 	•	 	 “Abatement of Asbestos-Containing Pipe Insulation” (U.S. EPA) 

  

	 	•	 	 U.S. EPA Nations Emissions Standards for Hazardous Air Pollutants (NESHAPS) Regulations 

  

					
		  	35	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  

	 	•	 	 Model training course materials for accrediting asbestos management planners in accordance with AHERA (assessment materials).

 CAL/OSHA General Industry Safety Orders, Title 8, Sect. 5208 
  

	 	•	 	 Regulates occupational exposure to asbestos for employees of California State and Local Government employers only (as of July 1, 1987).

  

	 	•	 	 California initiative Proposition 92 passed that CAL/OSHA will be in effect starting May, 1989 

  

	 	•	 	 Title 8 CAC (5208) requires asbestos spills to be cleaned up promptly 

  

	 	•	 	 Report job to CAL/OSHA (public employers only) 

  

	 	•	 	 Register as carcinogen use (public employers only) 

  

	 	•	 	 Title 26 involving toxics, incorporated all California laws 

 California Department of Health Services (DOHS) Title 22 
   (see Waste Handling
and Disposal Section) 
  

	 	•	 	 Regulates asbestos waste in California 

  

	 	•	 	 friable asbestos more than 1% by weight asbestos as hazardous waste 

  

	 	•	 	 Any hazardous asbestos waste (>50 lbs) which are transported to a disposal site must be accompanied by a properly completed Uniform Hazardous Waste
Manifest 

  

	 	•	 	 Generator must obtain EPA number to qualify 

  

	 	•	 	 Asbestos removals or more than 50 lbs must be transported by a registered waste hauler 

  

					
		  	36	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  
 Proposition 65 
  

	 	•	 	 Safe Drinking Water and Toxic Enforcement Act 

  

	 	•	 	 The original unmeasurable significant risk level of 100 f/day above ambient air has been modified. According to current regulations, if asbestos fibers
are not detectable, there is no significant risk. 

  

	 	•	 	 In California the voter-passed initiative Proposition 65 forbids the discharge of asbestos. This required that the contaminated water be filtered down
to technologically feasible minimum (0.2 microns). 

  

	 	•	 	 Required warning before exposure to chemicals known to cause cancer or reproductive toxicity (12 months after this chemical is listed in the original
Proposition 65 or the annual update). 

 Connelly Bill AB 3713, AB 1564 
 California division of health and safety (assembly bill no.3713) Requires building owners constructed prior to 1979, who are knowledgeable that the building
contains asbestos-containing material (ACM) provide a specified written notice to all employees working within the building. 
 The building
owner provides that any owner required by this provision to give notice to their employees also deliver a copy of that notice to other persons with whom the owner has privity of contract. This will include any contracted maintenance personnel, or
repair personnel. 
 The notification shall include the following information: 
  

	 	A.	survey information conducted to determine the existence and location of ACM within the building. 

  

	 	B.	specific locations within the building identified by the survey where ACM is present in any quantity. 

  

	 	C.	procedures and handling restrictions necessary to prevent, and, if appropriate; minimize disturbance of that material and the release of asbestos fibers. (If intricate
procedures are required, the notice can indicate where those instructions are available). 

  

					
		  	37	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  

	 	D.	results of bulk sampling analysis, air monitoring or monitoring conducted prior to the implementation of this bill. This information shall include the sampling and
laboratory procedures utilized. 

  

	 	E.	health risks or impacts that may result from exposure to the asbestos in the building as identified in survey or tests referenced, or otherwise known to the owner.

 Time Requirements 
 Notifications will be provided in writing to each employee (or shall be mailed to be received within 15 days) of the receipt by the owner of the information identifying the presence or location of asbestos-containing material in the
building. This notice shall also include new employees. 
 New employees shall be notified within 15 days after the commencement of work in the
building. 
 Information identifying the presence or location of asbestos-containing material in the building shall be provided annually
thereafter. 
 Amendments to the Connelly Act 
 On August 26, 1989, Assembly Bill 1564 was approved and thereafter signed by the Governor on September 26, 1989 becoming effective immediately. This bill changed the Connelly Act (AB 3713) in
several ways. 
 New notice requirements apply to building owners who elect to prepare an Asbestos Management Plan. Owners who prepare such a
plan are subject to different notice provisions which are specified in the new Section 24915.1 (California Health and Safety code section 24915 (a). 
 This new provision provides that an owner may elect to prepare an Asbestos Management Plan, and in that case, on the implementation of the plan, may comply with the Act by providing notice to other owners
and all employees of that owner working within the building of these aspects of the plan: 
  

	 	•	 	 Specific locations in the building where the ACM is present 

  

	 	•	 	 Potential health risks or impacts that may result from exposure 

  

					
		  	38	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  

	 	•	 	 Convey the information that disturbing the material (moving, drilling, boring, sanding) may present a health risk, and 

  

	 	•	 	 Only trained and qualified individuals are to handle the asbestos-containing material. 

 Requirements of the Asbestos Management Plans 
  

	 	•	 	 Periodic reinspection and surveillance of the material 

  

	 	•	 	 Fiber Release Episodes Procedures 

  

	 	•	 	 Training and record-keeping procedures, and 

  

	 	•	 	 The preparation of this plan by a person accredited under federal law to prepare such plans for schools. 

 Notification requirements to new discoveries of ACM 
 Notification of employees identifying the presence of and the location of the ACM must be given within 15 days of the first receipt of the information. New discoveries of asbestos-containing material can be on a 90 day period (quarterly).
In these cases supplemental notifications must be given. 
 Warning Signs 
 This act now provides for two alternatives for the content of the warning signs. 
 Designated
Owner to provide notices: 
  

	 	•	 	 If the building is owned by more than one owner, the owners may agree in writing as to designated owner who will be responsible for complying the
notifications according to the Act. 

 Survey and monitoring data availability: 
  

	 	•	 	 This Act now requires that any management plan, as well as survey and monitoring data be made available (within the building) to other owners or
employees. 

  

					
		  	39	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  
 Criminal Penalty Added: 
 Criminal sanctions are added for any owner who knowingly or intentionally
presents any false or misleading information to any other owner. 
 SDAPCD Rule 361.145 (Standard for Demolition and Renovation)

 EPA has promulgated an emission standard for asbestos under NESHAP, 40 CFR Part 61 Subpart (M), pursuant to Section 112 of the Clean Air
Act, 42 U.S.C. & 7412. EPA has delegated authority to SDAPCD to enforce the asbestos NESHAP rules. 
 Rule 361 expands the definition
of ACM to include both friable ACM and a new classification, “Category I nonfriable” ACM. Friable ACM is defined as material which when dry can be broken, crumbled, pulverized or reduced to powder by hand pressure and contains more than
one percent (1%) asbestos by area or by weight. 
 “Category I nonfriable” ACM is defined by Rule 361 as non-friable material
containing more than one percent (1%) asbestos by area or by weight and that can potentially be broken, crumbled, pulverized, or reduced to powder in the course of demolition or renovation activities. Non-friable ACM may become friable when
physically worn, disturbed by mechanical force, such as by sanding, sandblasting, cutting or scraping, improper handling or removal, disposal or leaching of matrix binders. 
 The “Owner or Operator” of any “demolitions or renovation activity” shall notify SDAPCD’s Control Officer of the intent to “demolish” or “renovate” any
“facility”, Rule 361.145(c). 
 The owner or operator of any demolition or renovation activity shall provide the required notification
in typewritten form and postmarked or delivered to SDAPCD’s Control Officer not later than ten (10) calendar days prior to commencement of demolition or renovation work, Rule 361.145(c). SDAPCD has prepared notification forms. 

The owner or operator must notify the SDAPCD Control Officer by telephone prior to any emergency demolition or emergency renovation, then confirm the
telephone notification with a follow-up typewritten notification, postmarked within forty-eight hours (48) of the telephone notification or the following business day, Rule 361.145 (c). 
  

					
		  	40	  	

 REGULATIONS 
 ARCO Plaza, Los Angeles, California 
  
 The notification requirements and worker training requirements do not apply where renovation of the facility or part of the facility will involve removal or stripping of less than 260 linear feet
on pipes and less than 160 square feet of surface area of RACM on facility components, and less than 35 cubic feet off facility components where length or area could not be measured previously, Rule 361.145(b). 
 Rule 361.145 requires that at least one onsite representative be trained as a Competent Person as described in Rule 361.145 (d)(8). 
  

					
		  	41	  	

 7 
 Maintenance Work Permit System 
  

					
		  		  	

 MAINTENANCE WORK PERMIT SYSTEM 
 All requests for maintenance/renovation activities to be performed in the building must have prior approval before the commencement of work. 
 The permit is assessed by the Asbestos Coordinator to control any disruption of asbestos containing material (ACM). Work assignments will be coordinated
through the Maintenance Supervisor and assigned only to individuals that are properly trained to perform small scale, short duration activities. The Asbestos Coordinator will assess the Permit Request using the following criteria: 
  

	 	A.	Review the Permit for the possibility of disturbing ACM. 

  

	 	1.	Review the Survey Report for the presence and location of ACM. 

  

	 	2.	Review the Inspection Report for the Risk Factor assigned to the area. 

  

	 	B.	Issue Permit to Proceed if NO ASBESTOS is present. 

  

	 	C.	If ACM is present in a quantity of possible disturbance of less than 100 square feet per year, issue appropriate Asbestos Work Activity Procedure to trained personnel.

  

	 	D.	If ACM is present in a quantity of possible disturbance of greater than 100 square feet per year, contact the Environmental Consultant for individual assessment of the
project. In this case, the work will be performed by a certified Asbestos Abatement Contractor. 

 If an outside Contractor is to
perform work within your building and there is a possibility that this work will disturb ACM, then the Contractor should complete a form acknowledging the existence of ACM in the work area. 
 Suggested forms for the above stated purposes are included in the appendix. 
 For the purposes of the Permit System, all maintenance, renovation, and repair work is classified as either major or minor by the Asbestos Coordinator. 
  

					
		  		  	

 PERMIT SYSTEM 
 ARCO Plaza, Los Angeles, California 
  
 Minor Asbestos-Related Work 
  

	 	A.	May be employed by an in-house response team 

  

	 	B.	Employs small scale, short duration, O&M work practices 

  

	 	C.	Does not require an accredited Project Design (uses O&M Program prescriptions) 

  

	 	D.	Usually presents minimal potential for significant fiber release 

  

	 	E.	Can be performed by in-house personnel (see Worker Training Section) using the techniques prescribed in the Special Practices Section of this O&M Program.

  

	 	F.	Involves less than 100 square feet of ACM per year 

 Major Asbestos-Related Work 
  

	 	A.	Involves more than 100 square feet of ACM per year 

  

	 	B.	Requires more elaborate asbestos control techniques 

  

	 	C.	Requires that an accredited Management Planner prescribe response action options and an accredited Project Designer design specification for performing the work

  

	 	D.	Presents a serious potential for fiber release 

  

	 	E.	May only be performed by accredited Asbestos Workers under the supervision of an accredited Contractor/Supervisor 

  

	 	F.	Requires clearance air monitoring 

 Suspect ACM
may exist in areas which were inaccessible to the original inspector but which may be disturbed by the proposed activity. Such materials require confirmation through sampling and analysis (e.g. - mastic underneath floor tiles). Prior to any activity
which may disturb inaccessible building materials, perform a new round of material sampling using destructive techniques. 
  

					
		  	42	  	

 8 
 Record Keeping 
  

					
		  		  	

 RECORDKEEPING 
 All the written documentation discussed in this Manual should be stored in permanent files. OSHA and EPA also require that employers retain: 
  

	 	•	 	 Personal air sampling records for at least thirty (30) years. Personal air samples are those collected near the worker’s face during the
performance of a job. 

  

	 	•	 	 Records for each employee subject to the medical surveillance program for the duration of employment plus thirty (30) years.

 All written records discussed in this program shall be maintained as part of a thorough record keeping process. Records
should be kept for thirty (30) years. These include: 
  

	 	•	 	 The written O&M Program itself, including work practices 

  

	 	•	 	 Building plans and drawings 

  

	 	•	 	 Survey data 

  

	 	•	 	 Copies of notifications and warning programs 

  

	 	•	 	 Descriptions, times, dates, and attendants of training programs 

  

	 	•	 	 Written respiratory protection program 

  

	 	•	 	 Training and fit testing records 

  

	 	•	 	 Records of fiber release episodes 

  

	 	•	 	 Copies of all permits and documentation of custodial, maintenance, renovation and emergency response actions performed 

  

	 	•	 	 Periodic asbestos containing materials (ACM) surveillance records - including physical condition of ACM and periodic air surveillance

  

	 	•	 	 Application for maintenance work 

  

	 	•	 	 Approval forms for work 

  

					
		  		  	

 9 
 Medical Surveillance Program 
  

					
		  		  	

 MEDICAL SURVEILLANCE PROGRAM 
 Through the implementation of a sound medical surveillance program the Asbestos Coordinator will be able to track the worker’s medical status and
comply with OSHA standards on medical surveillance and respiratory protection. The three principle areas of concern addressed by this program are: 
  

	 	•	 	 Safety and Health of Workers 

  

	 	•	 	 Regulatory Requirements 

  

	 	•	 	 Other Legal Liability 

 Requirements 
 Because of the increased public awareness concerning the hazards associated with exposure to airborne
asbestos fibers, and because of the recent requirements of worker and tenant notification, employers and building owners are finding that they must provide regular and periodic medical surveillance for their employees. Asbestos Coordinators are
required to provide a medical surveillance program for their employees because they are regularly exposed to airborne asbestos fibers and because they are required to wear negative pressure air purifying respirators. 
 There are three objectives of a medical surveillance program: 
  

	 	•	 	 Establish the individual’s baseline health status. 

  

	 	•	 	 Monitor their health during the duration of their employment. 

  

	 	•	 	 Provide documentation of the worker’s health status along with their work history upon completion of their employment.

 Employees who wear a respirator as a routine part of their job, must always be medically evaluated prior to receiving the
respirator and on an annual basis thereafter. This is to ensure that the employee is sufficiently healthy so that continued use of the respirator will not affect his or her health. 
 The following regulations concerning medical surveillance are summarized from OSHA, Title 29 CFR 1926.1101. 
  

					
		  		  	

 MEDICAL SURVEILLANCE 
 ARCO Plaza, Los Angeles, California 
  
 Pre-Placement Physical 
 Pre-placement medical examinations must be made available prior to
assignment of the employee to an area where negative pressure respirators are worn. 
 Annual Exams 
 Medical exams shall be made available at least annually. If a new employee can document that they received the necessary exam within the last twelve months,
they are not required to have a pre-placement exam. The physician has the option of scheduling exams more frequently, if necessary, and the employer must provide these exams at the specified frequency. Exams are required within 10 days following the
30th day of exposure at or above the permissible exposure level of 0.1 f/cc. 
 Termination of Employment Physical 
 The employer shall make available, a termination of employment medical examination for any employee who has been exposed to airborne concentrations of
asbestos fibers. The medical examination shall be in accordance with the requirements of the periodic examinations and shall be given within 30 calendar days before or after the date of termination of employment. 
 No medical examination is required of any employee if adequate records show that the employee has been examined in accordance with the above requirements
(i.e. Annual Examinations) within the past one year period. 
 Initial Examinations 
 As a Minimum, a comprehensive medical evaluation must be performed. This should include the following: 
  

	 	A.	A complete physical examination of all systems with an emphasis on the respiratory system, the cardiovascular system and digestive tract 

  

	 	B.	A chest X-ray (posterior-anterior roentrogram, 14 by 17 inches) to be administered at the discretion of the examining physician 

  

	 	C.	A pulmonary function test including Forced Vital Capacity (FVC), (the maximum amount of air that can be expired from the lung after full inhalation) and Forced
Expiratory Volume after one second (FEV 1.0) (the amount of air forcibly expired in one second after full inhalation) 

  

					
		  	45	  	

 MEDICAL SURVEILLANCE 
 ARCO Plaza, Los Angeles, California 
  
 The FVC (Forced Vital Capacity) and FEV 1.0 (Forced Expiratory Volume) are conducted through the use of a spirometer. If the FEV 1.0 is reduced, this may signify a possible obstruction or other problems
with the employee’s lungs. If the FVC or the ratio of FEV 1.0 to FVC is reduced, this may signify restrictive changes in the employee’s lungs. 
 Pulmonary History 
 This part of the examination is a standardized questionnaire that is
completed by the employee. Examples of questionnaires used for initial and periodic medical exams are at the end of this section. It is used to identify the potential for respiratory diseases. Several questions relate to chronic lung diseases, while
others address the employee’s personal habits, such as smoking. There is often particular concern for the health of a person who smokes and is also exposed to asbestos. Smoking is known to have a synergistic effect with asbestos exposure. That
is, it compounds or intensifies the effects. Recent studies indicate that an asbestos worker who smokes is 50-90 times more likely to develop lung cancer than non-smokers who do not work with asbestos. 
 The OSHA medical questionnaire, part one, is to be filled out during the initial exam. The following information will be requested (the OSHA medical
questionnaire is enclosed in this section). 
 Any History of Respiratory Disease - identifies workers with a history of asthma,
emphysema, or chronic lung disease. These people may be at risk when wearing a respirator. 
 A Past Work History - identifies workers
who have been exposed to asbestos, silica, cotton dust, beryllium, radioisotopes, etc., within the past 10 years, or workers who have worked in occupations or industries where such exposure is probable. If past exposures are identified, medical
tests can be obtained for comparison. These specific items of information shall be obtained: a) Previous occupations, b) Problems associated with breathing during normal work activities and c) Past problems with respirator use. Other medical
information which might offer evidence of the worker’s ability or inability to wear and use respirators should also be required such as: a) Psychological problems or symptoms including claustrophobia, b) Any known physical deformities or
abnormalities, including those which may interfere with respirator use and c) Tolerance to increased heart rate, which can be produced by the extra weight, increased work load, and heat stress associated with wearing respirators and protective
clothing. 
  

					
		  	46	  	

 MEDICAL SURVEILLANCE 
 ARCO Plaza, Los Angeles, California 
  
 Regulations 
 Regulations specifically require the employer to provide the examining
physician with the following information: 
  

	 	A.	A copy of the standard (20 CFR 1926.1101) including the questionnaires and appendices requirements for chest X-ray interpretation and the non-mandatory medical
surveillance guidelines. 

  

	 	B.	A description of the employee duties as they relate to the employees exposure. 

  

	 	C.	The employee’s representative exposure levels or anticipated exposure level. 

  

	 	D.	A description of any personal protective and respiratory equipment used or that is to be used. 

  

	 	E.	Information from previous medical examinations of the affected employee that is not otherwise available to the examining physician. 

 The results of the pre-placement examination will be used to establish the employee’s baseline health status and also to determine whether or not they
are capable of wearing respirators. A physicians’s written opinion (approved to wear a respirator, detected medical conditions that place the employee at increased risk of developing asbestos-related disease, and a statement that the employee
has been informed by the physician of the exam results and of any medial conditions that may result from asbestos exposure) will then be furnished to the employer, (Asbestos Coordinator) for their files. 
 The Asbestos Coordinator must provide a copy of the written opinion for the affected employee within thirty days of its receipt. Individual test results are
normally kept by the physician or clinic to maintain confidentiality. The employer shall instruct the physician not to reveal any findings or diagnoses unrelated to the exposure to asbestos in the written opinion. 
  

					
		  	47	  	

 MEDICAL SURVEILLANCE 
 ARCO Plaza, Los Angeles, California 
  
 Record Keeping 
 It is required by regulation (29 CFR 1926.1101) that the medical
records be kept for 30 years subsequent to the date of the last employment of the individual. The employer shall keep an accurate record of all measurements taken to monitor employee exposure to asbestos. These records shall be kept for at least
thirty years subsequent to the date of the testing. 
 The following information should be maintained either on file or at the clinic where the
examinations are conducted: 
  

	 	A.	The name and social security number of the employee 

  

	 	B.	A copy of the employee’s medical examination results, including medical history questionnaire responses, results of any tests and physicians recommendations

  

	 	C.	A physicians written opinion 

  

	 	D.	Any employee medical complaints related to exposure to asbestos 

  

	 	E.	A copy of the information provided to the physician as required by 29 CFR 1926.1101 

 Justification for the Individual Tests: 
 Chest X-Rays: (posterior and anterior 14 by 17
inches, and oblique projections from right and left side required only by CAL-OSHA). These are performed primarily to detect irregularities in the lungs or the heart, including any fibrosis or pleural plaques induced by exposure to asbestos. Chest
X-Rays may also be used as a baseline for comparing future X-Rays. 
 Chest X-Rays must be interpreted and classified in accordance with a
professionally accepted classification system and recorded on a Roentrographic Interpretation Form. Chest X-Rays must be interpreted by either a certified “B Reader”, a boarded eligible certified radiologist or an experienced physician
with known expertise in pnyenonconsises (pulmonary function related diseases). 
  

					
		  	48	  	

 MEDICAL SURVEILLANCE 
 ARCO Plaza, Los Angeles, California 
  
 A “B Reader” is a physician (often a radiologist or pulmonologist) who has received specialized training in the interpretation of chest X-rays specifically relating to occupational lung
diseases. “B” readers are require to pass a proficiency test administered by the centers for disease control (NlOSH) in Morgantown, West Virginia. 
 Pulmonary Function Tests 
 These tests are conducted to determine if a person’s lungs
are expanding normally and if there is adequate air movement in and out of the lungs. Remember that as the lungs fill up with scar tissue, they become leathery and inflexible, which restricts the afflicted worker’s ability to inhale.

  

					
		  	49	  	

 10 
 Respiratory Protection Program 
  

					
		  		  	

 RESPIRATORY PROTECTION PROGRAM 
 To provide employees with adequate respiratory protection in compliance with OSHA 1910.134. A program to monitor and define the use of respiratory
protection equipment is required. 
 This Respiratory Protection Program will consist of the following sections: 
  

	 	•	 	 Respiratory Protection Program Manager 

  

	 	•	 	 Employee Training Requirements 

  

	 	•	 	 Respiratory Hazards 

  

	 	•	 	 Types and Selection of Respiratory Protection 

  

	 	•	 	 Medical Surveillance Summary 

  

	 	•	 	 Fit-Testing Procedures 

  

	 	•	 	 Protection Factors 

  

	 	•	 	 Routine Maintenance 

 Respiratory Protection Program Manager 
 This person is responsible for the implementation of and adherence to the
provisions of the Respiratory Protection Program. As part of the Respiratory Protection Program the following records must be maintained by the Respiratory Protection Program Manager: 
  

	 	•	 	 Medical Examinations 

  

	 	•	 	 Respiratory Fit Tests 

  

	 	•	 	 Training Records 

  

	 	•	 	 Routine Maintenance and Periodic Inspections 

  

					
		  		  	

 RESPIRATORY PROTECTION 
 ARCO Plaza, Los Angeles, California 
  
 Employee Training Requirements 
 Individuals recognized as working with materials
that could lead to exposures to hazardous substances must be fitted with proper respiratory protection. The method for selecting the proper respiratory protection required for the each is explained in the Respiratory Protection Program. 

Maintenance personnel who perform small scale, short duration tasks or tasks in which asbestos containing materials, (ACM) may be disturbed, and who are
medically fit to wear respiratory protection, will be trained and issued proper respiratory protection. 
 Respiratory Training will be
conducted initially by the Environmental Consultant to include initial respiratory fit testing for identified employees. Fit testing is required to be up dated every 6 months by the Environmental Consultant. 
 Each worker assigned a respirator will be required to attend a Personal Protection and Work Activities briefing. Upon completion of this training, the
worker will attend the Respiratory Protection Program briefing. Re-training and Fit testing will be performed every 6 months. 
 Workers
assigned respirators must understand the selection, limitations, proper use, care and maintenance of respiratory protection equipment. 
 Respiratory Hazards 
 The control of respiratory hazards involves three steps: 
  

	 	•	 	 assessing the hazard 

  

	 	•	 	 reducing or eliminating the hazards 

  

	 	•	 	 providing respiratory protective equipment 

 The asbestos abatement industry relies primarily on the first two steps. Buildings and structures are surveyed to assess potential asbestos hazards. When a potential asbestos hazard exists, a consultant
or contractor is called upon to reduce or eliminate the hazard through removal, encapsulation or enclosure. Thus the third step, respirators, is generally avoided for the building occupants. 
  

					
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 Several hazard reduction techniques can be used when working with asbestos including wetting with amended water, using negative pressure machines, prompt bagging of removed materials, wet cleaning and
HEPA vacuuming. 
 These techniques reduce the airborne fiber concentrations during asbestos projects but they often cannot get fiber
concentrations down to the 0.01 f/cc level which is specified. Since it cannot be assured that the airborne fiber level is acceptable before it is measured, the employer (contractor) must provide proper respirators and an adequate respiratory
program for the workers. The respirators must be selected and the respiratory program established based on OSHA Standards, the actual or anticipated air sampling results and other guidelines, e.g., recommendations from respirator manufacturers.

 Types and Selection of Respiratory Protection 
 As required by the OSHA Respirator Standard (29 CFR 1910.134) only approved respirators should be considered during the selection process and the respirators must be approved for protection against the
specific hazard, e.g. asbestos. 
 The National Institute for Occupational Safety and Health (NIOSH) is the testing agency which decides if a
respirator model can receive approval. If the entire respirator assembly including cartridges and filters, meets their standards, then NIOSH and the Mine Safety Health Administration (MSHA) issue a joint NIOSH/MSHA approval number for the respirator
assembly. 
 HEPA Filters 
 High
Efficiency Particulate Air (HEPA) filters must be used for work with asbestos. HEPA filters specific for asbestos are purple. Filters must be periodically replaced according to work conditions and contract specifications. Change the filter if: 1)
The filter gets wet, 2) It becomes difficult to breath through your respirator. 
 The approval number assigned by NIOSH for any specific
manufacturer and model is TC-xxC-xxx (see label). The TC indicates Tested and Certified; the -xxC indicates what style/category or respirator it is, and the -xxx is a unique number assigned to this specific manufacturer and model. 
 When fumes will be present, i.e. when mastic is being removed, special chemical filters will be worn in addition to HEPA filters. 
  

					
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 Respirators 
 The types of respirators worn for jobs involving asbestos depends upon the
level of exposure (fibers/cc) and individual preference. There are 3 major categories of respirators used for asbestos work. 
  

	 	•	 	 Air-Purifying (APR) 

  

	 	•	 	 Air-Supplied (Type C) 

  

	 	•	 	 Self-Contained (SCBA) 

 Air Purifying Respirators 
 APRs remove limited concentrations of air contaminants from the breathing air, but do nothing to
improve or change the oxygen content. Thus they can only be used in atmospheres where there is enough oxygen and where air contaminants do not exceed the specified range of the respirator and cartridges. 
 These respirators generally consist of a soft, rubber facepiece and some kind of replacement filter or cartridge. Two major sub- categories of air purifying
respirators are the (1) mechanical filter type, and (2) the chemical cartridge type. 
 The mechanical filter is designed to protect
against particulate matter such as dust and asbestos fibers. 
 The chemical cartridge is used to protect against light concentrations of
chemicals such as solvent vapors. There are even combination models approved for both types of protection. Respirator face pieces (including those for the air-purifying category) are used to further describe specific subcategories based on the
construction and face coverage. 
 The major subcategories are: 
  

	 	•	 	 Half Mask (APR) 

  

	 	•	 	 Full Face (APR) 

  

	 	•	 	 Powered air purifying respirator (PAPR) 

  

					
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 Half Mask respirators cover half of the face, from under the chin to the bridge of the nose. Most, but not all, half-mask respirators are NIOSH/MSHA approved. It is still necessary to choose the correct
approved model for the identified air contaminant. 
 Full Face type respirators cover the face from the chin up to the forehead. This broader
coverage provides a better face fit, a higher degree of protection, and gives some eye protection. Many full-face respirators have four or more straps. Regardless of the number of straps, the respirator should be put on by first placing the chin
into the chin cup, and then tightening the straps, going from the bottom to the top. 
 The Powered Air Purifying (PAPR) type of air-purifying
respirator has received considerable use on asbestos abatement projects. Half and Full Face APR units depend on breathing energy to draw the air in through the respirator cartridge or filter. However, PAPR units use a battery-powered blower that
passes the contaminated air through the cartridge or filter where the air is cleaned and forced through a hose to the facepiece. The face covering can be a half-mask, full-face mask, helmet (hat) or hood. 
 An advantage of using a Powered Air Purifying Respirator is that it supplies air at a positive pressure within the facepiece, helmet or hood so that any
leak is drawn outward. They provide a higher degree of protection than do half-mask or full-face air purifying respirators. 
 Powered
respirators must deliver at least four cubic feet of air per minute (4 cfm) to a tight-fitting facepiece and at least 7 cfm to a loose-fitting helmet or hood. They are reportedly designed to operate a full 8-hour work shift. This is usually possible
if the battery is allowed to run down completely and re-charged for a shift prior to using the battery. Employees have the option of selecting a PAPR from their employer as specified in OSHA 1926.1101. 
 Air Supplied Respirators (Type C Respirators) 
 The second major category of respirators, Air Supplied Respirators or airline respirators, deliver breathing air through a supply hose connected to the face piece (half or full-mask). They cannot be used in atmospheres immediately dangerous
to life or health (IDLH). If the air supply fails, the worker will be without the outside air supply and will be operating on the respirator’s backup system. Since the worker is connected to an outside air source by a hose there is some
restriction in movement. Since air must meet certain quality specifications, either a tank system or a compressor is used. There are regulations on the use of air line respirators: 
  

	 	•	 	 The length of the air line cannot exceed 300 feet 

  

	 	•	 	 The maximum inlet pressure cannot exceed 125 psi 

  

					
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 Type C, continuous flow, positive pressure respirators are used with half or full face masks. The air is supplied at a constant flow rate of at least 4 cfm. In this respect, they are similar to a PAPR.
They are not commonly used on abatement activities because of the high air usage compared to the type C PPPD systems described below. The Type C continuous flow respirator is approved up to 20 f/cc. 
 Type C, positive pressure, pressure demand (PPPD), respirators are usually used with a full face mask. An air regulator on the mask insures that there is
always a slightly positive pressure inside the mask, no matter how much the worker is breathing. 
  

	 	•	 	 With a HEPA filter back-up cartridge, it may be used for concentrations of up to 200 f/cc. 

  

	 	•	 	 With a compressed air tank back-up, it may be used for higher concentrations. 

 Good practices generally require the use of type C PPPD respirators at the beginning of any asbestos removal project. 
 The OSHA regulations require that type C PPPD respirators be used until it has been conclusively proven by personal air monitoring that a lesser respirator
will be adequate. 
 As a rule of thumb, cartridge filter respirators are usually adequate protection for the worker during work area
preparation and final wipe-down following gross clean-up. 
 Some removals require the use of type C PPPD respirators once gross removal begins
through gross clean-up of the work area. 
 A type C PPPD demand system normally consists of a compressor, air delivery lines, air cleaning
apparatus, a reserve air supply, and NIOSH approved masks. At a minimum, a type C system should provide the following: 
  

	 	•	 	 A sufficient supply of air 

  

	 	•	 	 Supplied air which meets Grade D requirements 

  

	 	•	 	 Adequate escape time and back-up cartridges for escape 

  

	 	•	 	 Worker comfort and protection 

  

	 	•	 	 NIOSH-approved respirators and supply hose 

  

					
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 Self-Contained Respirators (SCBA) 
 Self-contained respirators (also known as self-contained
breathing apparatus or SCBA) provide a separate air supply, thus allowing the worker to be independent of his/her surrounding atmosphere. 
  

	 	A.	The SCBA can be used in atmospheres that are immediately dangerous to life or health (IDLH) such as an oxygen deficient atmosphere, provided a PPPD regulator is used.

  

	 	B.	The quality of air must meet certain specifications and the unit can be used in combination with an air-line respirator. 

  

	 	C.	The amount of air provided and the use time depends on the air pressure and tank size as well as on the breathing demands of the user. A typical air supply lasts 30-60
minutes. 

  

	 	D.	The self-contained units provide increased freedom of movement to the worker but they are heavy and awkward to wear and require extensive training to use.

  

	 	E.	The self-contained respirator can be used initially in an asbestos abatement job until air sampling can prove lower exposure levels. 

 Types and Selection of Respiratory Protection 
 The respirators used shall be selected from those approved by the Mine Safety and Health Administration (MSHA) or National Institute for Occupational Safety and Health (NIOSH) for use in atmospheres
containing asbestos fibers. A NlOSH approved respirator contains the following: 
  

	 	•	 	 An Assigned Identification Number 

  

					
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	 	•	 	 A Label identifying the hazard the respirator is designed to protect against. 

  

	 	•	 	 Information on the label which indicates limitations and identifies the component parts approved for use with the basic unit.

 Selected respirators shall be provided at no cost to the employee as specified for protection for asbestos as follows:

  

			
	 Airborne Asbestos Concentration
	  	 Required Respirator

	 Below 2.0 f/cc
 Factor (PF)=10
	  	Reusable Half-Mask, Air Purifying Protection Respirator with HEPA filters.
		
	 Below 5.0 f/cc
 PF=25
	  	Helmet or Hood Powered Air Purifying Respirator with HEPA filters.
		
	 Below 10.0 f/cc
 PF=50
	  	 1. Full-Facepiece Air-Purifying Respirator with HEPA filters.
  
 2. Half-Mask, Powered Air-Purifying Respirator with HEPA filters.

		
	 Below 20.0 f/cc
 PF= 100
	  	 1. A Full Facepiece Powered Air Purifying Respirator with HEPA filters.
  
 2. Any Supplied-Air Respirator Operated in Continuous Flow Mode.

		
	 Below 200.0 f/cc
 PF= 1000
	  	Full Facepiece Supplied-Air Respirator Operated in Pressure Demand Mode.
		
	 Greater Than 200.0 f/cc
 PF= >1000
	  	 1. Full Facepiece Supplied-Air Respirator Operated in Pressure Demand Mode Equipped with an Auxiliary Positive Pressure Self-Contained
Breathing Apparatus.
  
 2. Full Facepiece Self-Contained Breathing Apparatus
Operated in Pressure Demand Mode.

  

					
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 Medical Surveillance Summary 
 Only those individuals who are deemed medically fit to
wear respiratory protective equipment shall be issued a respirator. Before being issued a respirator, an employee will undergo testing to evaluate his/her medical and physical condition. Medical tests to be considered by a physician include:

  

	 	•	 	 Pulmonary Function Tests (FVC and FEV) 

  

	 	•	 	 Chest X-Ray 

  

	 	•	 	 Electrocardiogram 

 Other
tests may be deemed necessary by the examining physician. Medical factors to be considered by the physician include emphysema, asthma, chronic bronchitis, heart disease, anemia, hemophilia, poor eyesight, poor hearing, hernia, lack of use of fingers
or hands, epileptic seizures or factors which might inhibit the ability of an employee to wear respiratory equipment. The establishment of a Medical Surveillance Program is also needed as a control measure. 
 Fit Testing Procedures 
 Respiratory
fit testing of workers who are assigned to wear negative-pressure respirators for the purpose of compliance with the permissible exposure limit (PEL) for asbestos is required to consist of one of the following qualitative or quantitative protocols.

 One of the following fit tests will be conducted for use in atmospheres in which the concentration of asbestos will not exceed 10 times the
PEL. 
 Procedures 
 Respirator Selection 
  

	A.	The test subject shall be allowed to pick the most comfortable respirator from a selection including respirators of various sizes manufacturers. The selection shall
include at least five sizes of elastomeric (elastic band) half face pieces and at least two manufacturers. Full facepiece respirators may be fitted by qualitative fit testing for use in atmospheres where the concentration of asbestos does not exceed
10 times the PEL. Full facepiece respirators for use in atmospheres which may reasonably be expected to exceed 10 times the PEL are required to be fit tested using the quantitative fit test protocol. 

  

					
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	B.	Prior to the selection process, the test subject shall be shown how to put on a respirator, how it should be positioned on the face, how to set strap tension and how to
determine a comfortable fit. A mirror shall be available to assist the subject in evaluating the fit and positioning of the respirator. Respirators shall be cleaned and sterilized between trials by test subjects. 

 Over-tightening the straps will sometimes reduce facepiece leakage, but the wearer may be unable to tolerate the respirator for a sufficient
period of time to complete the task. The facepiece should not press into the face, shut off blood circulation or cause major discomfort. 
  

	C.	The most comfortable mask is donned and worn at least five minutes to assess comfort. All don ning and adjustments of the facepiece shall be performed by the test
subject without assistance from the test conductor or other person. Assessing comfort shall include reviewing the following points with the test subject fitting with half-mask respirators: 

  

	 	•	 	 Positioning of mask on the nose 

  

	 	•	 	 Room for eye protection 

  

	 	•	 	 Room to talk 

  

	 	•	 	 Positioning mask on face and cheeks 

  

	D.	The following criteria shall be used to help determine the adequacy of the respirator fit: 

  

	 	•	 	 Chin properly placed 

  

	 	•	 	 Strap tension 

  

	 	•	 	 Fit across nose bridge 

  

	 	•	 	 Distance from nose to chin 

  

	 	•	 	 Tendency to slip 

  

					
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	 	•	 	 Self-observation in a mirror 

 Fit Test Exercises 
 Prior to entering the test chamber, the test subject shall be given complete instructions as to his/her or
her part in the test procedures. The test subject shall perform the following exercises, in the order given for each independent test. 
  

	 	A.	Normal Breathing. The test subject shall breathe normally for the least one minute, without talking. 

  

	 	B.	Deep Breathing. The test subject shall do deep breathing for at least one minute, pausing so as not to hyperventilate. 

  

	 	C.	Turning the Head Side-to-Side. The test subject shall slowly turn his or her head from side to side. The head shall be held at each extreme side position for at least 5
seconds. The test subject shall be instructed to perform at least three complete cycles, and to avoid bumping the respirator against their shoulders. 

  

	 	D.	Nodding the Head Up and Down. The test subject shall slowly nod his or her head up and down between the extreme position straight up and the extreme position straight
down and inhale when the head is at a full-up position (looking toward the ceiling). The subject’s head shall be held at each extreme position for at least 5 seconds. The test subject shall be instructed to perform at least three complete
cycles and to avoid bumping the respirator against the chest. 

  

	 	E.	Reading. The test subject shall talk for a minute so as to be heard clearly by the test conductor or monitor. 

  

	 	F.	Grimace. The test subject shall grimace, smile, frown, and generally contort the face using the facial muscles. Continue for at least 15 seconds.

  

	 	G.	Bend Over and Touch the Toes. The test subject shall bend at the waist and touch toes and return to the upright position. Repeat for at least 30 seconds.

  

					
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	 	H.	Jogging in Place. The test subject shall perform jogging in place for at least 30 seconds. 

  

	 	I.	Resume Normal Breathing. (Same as initial exercise.) 

 Additional Requirements 
  

	A.	The test shall not be conducted if there is any hair growth between the skin and the facepiece sealing surface. 

  

	B.	If hair growth or apparel interfere with a satisfactory fit, then they shall be altered or removed so as to eliminate interference and allow a satisfactory fit.

  

	C.	If a satisfactory fit is still not attained, the test subject must use a positive-pressure respirator such as a powered air-purifying respirator, supplied air
respirator, or self-contained breathing apparatus. 

  

	D.	If a test subject exhibits difficulty in breathing during the tests, they shall be referred to a physician trained in respiratory diseases or pulmonary medicine to
determine whether the test subject can wear a respirator while performing their duties. 

  

	E.	Fit testing shall be repeated at least every six months. 

  

	F.	In addition, because the sealing of the respirator may be affected, fit testing shall be repeated immediately when the test subject has one of the following:

  

	 	•	 	 Weight change of 20 pounds or more 

  

	 	•	 	 Significant facial scarring in the areas of the face 

  

	 	•	 	 Significant dental changes 

  

	 	•	 	 Reconstructive or cosmetic surgery 

  

	 	•	 	 Any other condition that may interfere with sealing 

  

					
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 Qualitative and Quantitative Fit Checks 
 The test subject is now ready to conduct the
qualitative positive pressure and negative pressure fit checks. There are two major categories of fit testing, Qualitative (pass/fail basis) and Quantitative (scientific measure basis). 
  

	A.	Qualitative (Pass/Fail) 

 These tests
require the wearer’s response, is not complicated and is easy to perform. It is performed in three sequences, a negative pressure check, a positive pressure check, and an irritant smoke test. 
 Negative Pressure Test 
 Start by closing
off the inlet of the cartridges or filters by covering them with the palms or squeezing the breathing tube so it does not allow air to pass. Inhale gently so the facepiece collapses slightly. Hold your breath for approximately 10 seconds. It is
possible to use a piece of foam to cover the inlet port sufficiently. If the seal of the respirator is appropriate to the shape of the face, the facepiece will remain collapsed, while the still holding your breath. If the seal is incorrect, the
facepiece will fill with air drawn from a break in the seal surrounding the face. If this should occur, look for damage to the facepiece or choose another respirator from a different manufacturer. 
 Positive Pressure Test 
 Start by closing
off the exhalation valve and exhaling gently into the facepiece. The respirator fit is considered good if slight positive pressure can be built up inside the facepiece without any evidence of outward leakage around the facepiece. 
 For some respirators, it is necessary to remove the exhalation valve cover. This removal often disturbs the respirator fit if not done before the respirator
is put on. The test is easy with respirators whose valve cover has a single small port that can be closed by the palm or a finger. 
 Irritant Smoke Test 
 If the worker passes the visual, negative pressure and positive pressure tests, they are ready to be
tested with irritant smoke. This test can be used for both air-purifying and air-supplied respirators. An air-purifying respirator however, must have high-efficiency filters. The test substance is an irritant smoke (stannic chloride or titanium
tetrachloride). Sealed glass and plastic tubes with substances to generate this smoke are available from safety supply companies. When the tube ends are broken and air passes through them with a squeeze tube, a dense irritation smoke is emitted.

  

	1.	The test subject shall be exposed to a weak concentration of the irritant smoke to familiarize the subject with the characteristic odor. 

 If the subject cannot detect the irritant smoke then another qualitative fit testing protocol or quantitative fit testing shall be used.

  

					
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	 	2.	Advise the test subject that the smoke can be irritating to the eyes and instruct the subject to keep the eyes closed while the test is being performed.

  

	 	3.	The test conductor will review this protocol with the test subject before testing. 

  

	 	4.	The test subject shall enter the test chamber and be advised that the irritant smoke can be irritating to the eyes and should keep his/her eyes closed while the test is
being conducted. 

  

	 	5.	The test conductor shall direct the stream of irritant smoke from the tube towards the face seal area of the test subject. The person conducting the test shall begin
with the tube at least 12 inches from the facepiece and gradually move to within one inch, moving around the entire perimeter of the facepiece. 

  

	 	6.	The test subject shall be instructed to perform exercises prior to entering the test chamber. If the irritant smoke can not be detected, the respirator seal is
considered to maintain a proper fit. 

  

	 	7.	Respirators successfully tested by this protocol may be used in atmospheric concentrations of up to ten times the PEL for asbestos. 

 This test has a distinct advantage in that the wearer usually reacts involuntarily to leakage by coughing or sneezing. The likelihood of merely pretending
to pass the fit test is very low. 
 NOTE: The irritant smoke test must be performed with caution because the aerosol in highly irritating to
the eyes, skin and mucous membranes. With half-mask facepieces, the eyes must be kept closed. 
 B. Quantitative Fit Testing

 This type of test requires a test substance which can be generated into the air, specialized equipment to measure the airborne
concentration of the substance and a trained tester. 
 The test subject wearing a respirator is placed into the chamber which contains the test
substance in the air. The airborne concentration of the substance is measured outside the respirator and inside the respirator while the wearer performs several work related activities. 
  

					
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 The specific degree of protection (protection factor) can be determined for that wearer/respirator combination by performing calculations with a measured concentrations. 
 Quantitative fit testing is usually performed in a laboratory under research conditions. However, portable fit-testing units are now available and some
organizations will come to the job site and perform quantitative fit tests on workers. 
 Protection Factors 
 Respirators offer varying degrees of protection against asbestos fibers. The key to understanding the differences between types of respirators
(air-purifying, powered-air purifying, air supplies, etc), is the amount of protection afforded to the wearer. To compare these, one must understand the concept of a protection factor (PF). 
 A protection factor is a number obtained when the concentration of a contaminant outside the mask is divided by the concentration found inside the mask.
This formula is illustrated below. 
  

			
	Protection Factor (PF) =	 	Concentration Outside the Mask
	 	Concentration Inside the Mask

 The protection factor
depends on the fit of the mask to the wearer’s face. The protection offered by any one respirator will therefore be different for each individual persons. Further, the protection constantly changes depending on the worker’s activities and
even shaving habits. When a worker laughs or coughs inside a respirator, the protection factor will decrease since the mask will not fit as well during laughing or coughing. Similarly, a worker who forgot to shave one morning will not receive as
much protection that day since the mask will not fit as well to the face. The importance of properly fitting the mask should now be obvious. 
 It is virtually impossible to measure the concentration inside the mask (where the worker is breathing) for each worker, all the time, during all the various activities he or she may be conducting. Accordingly, protection factors, based on
extensive research, have been developed for different categories of respirators. Using these protection factors, it is easy to determine what type of respirator is appropriate to maintain the concentration of asbestos inside the mask below a certain
level. Using established protection factors, one may select for the type task required. (Reference Section 2). 
 It should be noted that
protection factors should only be used when the respirator is properly fitted and maintained, and used as intended. 
  

					
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 Routine Maintenance 
 Individuals assigned to wear respiratory protection must be
knowledgeable in the following basic services for respiratory protection care and maintenance are outlined and discussed: 
  

	 	•	 	 Inspection for Defects (including leak checks) 

  

	 	•	 	 Cleaning and Disinfection 

  

	 	•	 	 Proper Storage 

 Inspection for Defects 
 All respirators shall be inspected routinely before and after each use and kept ready for emergency
use, if required. Any respirator that is not used routinely but kept for emergency use shall be inspected at least monthly to assure that it is in satisfactory working condition. 
 A respirator inspection shall include a check of the tightness of connections and the condition of the headbands and filters. The rubber of elastomer parts shall be inspected for pliability and signs of
deterioration. Stretching and manipulation of rubber or elastomer parts with a massaging action will keep them pliable and flexible and prevent them from taking a set during storage. 
 Records of such inspections will be kept by the Respiratory Program Manager. 
 Cleaning and
Disinfecting 
 Routinely used respirators will be cleaned and disinfected whenever they are to leave the work site. In areas where work is
performed using a HEPA vacuum, the facepiece should be HEPA vacuumed and then wet wiped with a Sanicom pad to remove soot or dirt. 
 Wipe the
inside sealing surfaces with clean Sanicom pads. Alcohol or alcohol pads should not be used for wipe cleaning. 
 Thorough cleaning will be
performed by each individual to include disassembly, washing, disinfection inspection, re-assembly and storage. 
 Respirators will not be taken
home and must remain in a designated area for storage. 
 Disinfecting will consist of a thorough cleaning at least once a week. Alcohol should
not be used as a disinfectant. Alcohol tends to dry-out most rubber products. Use a solution specifically designed to clean rubber that is odorless and non drying. MSA Cleaner-Sanitizer II is one solution that could be used. 
  

					
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 First remove the HEPA filters from the facepiece. Then rinse the outside of the facepiece in warm water. Rinse the inside of the facepiece, ensuring the rubber valve covers have been removed and properly
cleaned. 
 Do not attempt to force dry the facepiece with a blow dryer, heater or in direct sunlight. Lay the facepiece on a flat surface to
air dry. 
 Storage 
 After
cleaning and sufficient drying time has elapsed, each assembled facepiece should be stored in a clean plastic bag that is sealed by a twist tie or zip lick with the date of the cleaning marked on the outside of the bag. 
 Bagged respirators should be stored lying flat in a secured drawer or shelf of a storage locker. Each should be marked identifying the owner. Use only the
respirator that is assigned to you. 
 Appendix 
 Working and breathing in some environments can pose a hazard to worker’s health. Inhalation of some substances can cause immediate or quick injury to the respiratory system or other major organ
systems of the body. 
 Carbon monoxide and some paint solvents are examples of relatively quick acting substances. The injuries/illnesses
caused by other contaminants may not be obvious for years or even decades. Asbestos and other cancer causing agents fall into this category of long latency (developing) periods. Respirators are commonly used to help protect against inhalation
hazards, especially on asbestos abatement projects. However, the protection program is not limited to choosing a respirator, giving it to an employee, and expecting it to provide adequate protection. 
 There is a need to have and apply knowledge about lung structure and function, hazard recognition, and evaluation and control. Governmental regulations and
human characteristics also play a role. 
 There are three ways through which hazardous materials can enter the body: 
  

	 	•	 	 The Gastrointestinal (GI) Tract 

  

	 	•	 	 The Skin (or cause harmful effects to the skin) 

  

	 	•	 	 The Respiratory System 

  

					
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 The most prevalent disease causing entry way is through the respiratory tract. The respiratory system is a gaseous air pump with a series of airways leading from the nose and mouth down into air sacks
(alveoli) where there is an exchange of oxygen and carbon dioxide. At the air sacs, oxygen enters the blood and carbon dioxide exits the blood. The main components of the respiratory system going from top to bottom are: nose, mouth, throat, larynx
(voice box), trachea (windpipe), bronchi (main branches), alveoli (air sacs), diaphragm and chest muscles. 
 Air ways of the upper respiratory
tract (trachea through bronchi) are lined with “cilia”. Cilia are hairlike protrusions covered with a sheet of mucous. These cilia are constantly sweeping upward quickly then down slowly, and thus moving mucous and trapped materials up at
a rate of approximately one inch per minute. This is an important clearance mechanism which serves to remove large particles of matter from the lungs. Particles are brought back up to the throat where they are swallowed or expectorated. 

Unfortunately, smoking retards this cleansing mechanism of the lungs by causing paralysis of the cilia. Just a few puffs on a cigarette drastically
reduces the cilia motion. Smoking several cigarettes retards the cilia for several hours, often taking and overnight period for them to recover. This paralyzing effect may be one of the main reasons the combination of smoking and asbestos exposure
is so hazardous. 
 Past the bronchi are the alveoli. These air sacs are ultimately surrounded by a vast network of blood capillaries through
which gas exchange occurs: oxygen in and carbon dioxide out. Oxygenated blood is then delivered to the heart where it is pumped to millions of tissue cells throughout the body. 
 The heart and lungs are highly dependent upon each other in the process of getting oxygen into the body. When the lungs become restricted, damaged or ineffective the heart must work harder. Bad cases of
asbestosis often result in death by heart attack. Also, the wearing of respirators can be too much of a strain for some people (very few), and thus it is necessary to check this possibility before assigning or wearing a respirator. 
 A body’s need for oxygen varies, so the breathing rate varies as does the heart rate, respiratory rates tend to fall into ranges according to the level
of activity: 
  

			
	Resting:	  	5-7 liters per minute (5000-7000 cc per minute*)
	Working:	  	25-30 liters per minute (25,000 - 30,000 cc*)
	Exercising:	  	100-150 liters per minute (100,000 - 150,000 cc*)

  

	*NOTE:	CC = cubic centimeters. The same cc as when referring to fibers per cc. 

 These breathing rates are useful in determining how many asbestos fibers workers breathe in during different periods and exposure conditions. For example, a worker without respiratory protection,

  

					
		  	67	  	

 RESPIRATORY PROTECTION 
 ARCO Plaza, Los Angeles, California 
  
 breathing at a rate of 25,000 cubic centimeters (cc) per minute, in an area for 480 minutes (8-hours) where the fiber levels are two fibers per cubic centimeter (2f/cc), would breath in 24 million
fibers. The calculation is as follows: 
 25,000 cc/min x 480 min x 2f/cc = 24,000,000 fibers. 
 Inhalation Hazards 
 The same method of
calculation can be used for other breathing rates, exposure periods and fibers counts. It is also important to recognize that most of these fibers will be breathed out again, as part of the natural immune system and will not be retained inside the
body. 
 Respiratory hazards are generally divided into two categories: toxic contaminants and oxygen deficiency. The potential for either or
both must be considered when addressing respiratory protection. Normal air contains about 21% percent (20.9%) oxygen. For breathing purposes, air should not contain less than 19.5% or more than 23.5 percent oxygen. Oxygen deficiency generates a
variety of symptoms ranging from increased breathing and pulse rate to unconsciousness and death. 
 Asbestos abatement projects generally do
not pose oxygen deficiency hazards; however, since there are abatement projects and circumstances where it can be a problem, it must always be considered. For example, there could be an oxygen deficiency problem while working in steam tunnels
mechanical chases or boilers. It is also a consideration during the use of Type C supplied-air respirators (discussed later in this section). 
 Failing to consider oxygen deficiency could result in a quick fatality on an asbestos abatement project. Toxic contaminants are the more common category of respiratory hazards on asbestos abatement jobs. Those toxic contaminants are
generally subdivided into three categories, particles and gaseous materials or a combination of the two. Asbestos fibers are an example of the particles subcategory. It is possible to have both these hazardous substances, plus others (such as
encapsulant solvents) in a work area at the same time. 
 As mentioned earlier, the effects of these contaminants can develop quickly or slowly,
and they can be mild or fatal. For example, mesothelioma (special cancer of lung or abdomen linings) may take 20 to 45 years to develop. Once detected, it causes death within a few months or may leave no residual damage if promptly detected and
treated. 
 Acceptable limits of exposure for respiratory hazards are based on concentrations documented through research by such organizations
as the American Conference of Governmental Industrial Hygienists (ACGIH), the National Institute for Occupational Health and Safety (NIOSH), the Occupational Safety and Health Administration (OSHA) and others. 
  

					
		  	68	  	

 RESPIRATORY PROTECTION 
 ARCO Plaza, Los Angeles, California 
  
 These organizations publish allowable exposures limits and standards for a variety of substances. The ACGIH limits are called Threshold Limit Values (TLVs). 
 NIOSH publishes Recommended Standards, and the OSHA limits are called Permissible Exposure Limits (PELs). Only the OSHA PELs are legally enforceable, the
others should be considered standards to be attained in good work practices. 
 Limits are expressed as time weighted averages or exposure
durations, usually over a full work shift. For example the current OSHA limits for exposure to carbon monoxide is 50 parts per million (PPM) in the work place air and 20 ppm in air supplied to type C respirators. The current limits and recommended
guidelines for asbestos exposures range from 0.2 f/cc (OSHA) down to 0.01 f/cc, the lower, generally accepted “clearance level” in the asbestos abatement industry. 
  

					
		  	69	  	

 RESPIRATORY PROTECTION 
 ARCO Plaza, Los Angeles, California 
  
 insert “Respirator Selection” chart here 
  

					
		  	70	  	

 11 
 Asbestos Work Practices 
  

					
		  		  	

 ASBESTOS WORK PRACTICES 
 The decision of whether Asbestos Containing Material (ACM) should be removed and the determination of whether it should be removed by trained building employees or a certified asbestos abatement
contractor, shall be decided by both the Asbestos Coordinator and the Environmental Consultant. 
 A Maintenance Work Activity Permit must be
authorized prior to the start of all maintenance work. 
 PROHIBITED ACTIVITIES 
 The following activities are prohibited without proper training, personal protection and proper work procedures: 
  

	 	1)	Removing ceiling tiles located below asbestos containing fireproofing. 

  

	 	2)	Drilling holes in materials suspected of containing asbestos. 

  

	 	3)	Hanging plants or pictures on walls or ceilings covered with ACM or composed of ACM. 

  

	 	4)	Sanding asbestos containing floor tile. 

  

	 	5)	Dry sweeping or dusting of asbestos containing floors, ceiling, moldings or other asbestos-containing surfaces. 

  

	 	6)	Installing curtains, drapes or dividers in such a way as to disturb ACM. 

  

	 	7)	Using an ordinary vacuum to clean up asbestos containing debris. 

  

	 	8)	Disturbing ventilation system filters. 

  

	 	9)	Entry to areas where ACM debris has accumulated. 

 This portion of your manual is intended to describe methods of handling some of the situations listed above. 
  

					
		  		  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  
 Small Scale, Short Duration Operations 
 Small scale, short duration operations
(SS,SD) are not specifically described in current regulations. A definition of SS,SD is proposed in amendments to 29 CFR 1910 & 1926. 
 The SS,SD is described as a demolition, repair, renovation, maintenance or removal which is non-repetitive, effects small surfaces of ACM, will be completed in one work day and is not expected to expose bystanders to asbestos fibers.

 Although amendments to this rule are pending, there are currently no quantities of ACM, which will define a SS,SD operation. Determination
of a SS,SD operation will be at the discretion of the Asbestos Coordinator and the Environmental Consultant. Removal other than SS,SD should be performed by a qualified abatement contractor. Removal of more than 100 square feet must be
removed by a certified asbestos abatement contractor (according to SCAQMD). 
 Employers who are to implement SS,SD operations should be
appropriately trained in removal procedure. Training should include set-up glove bag and mini enclosures, wet method removals, regulations, standards, and health effects. Employees should have hands-on practice and respirator training before
performing SS,SD removals. The following are examples of small scale operations: 
  

	 	A.	Removal of small quantities of asbestos insulation on pipe 

  

	 	B.	Removal of small quantities of asbestos insulation on beams or above ceilings, 

  

	 	C.	Removal of small quantities of floor tile, 

  

	 	D.	Replacement of an asbestos gasket on a valve, 

  

	 	E.	Installation or removal of a small section of drywall, 

  

	 	F.	Installation of electrical conduits through or adjacent to ACM. 

  

					
		  	72	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  
 Work Practice Controls 
 Several controls and work practices, used either singly or
in combination, should be employed effectively to reduce asbestos exposures during small maintenance and renovation operations. These include: 
  

	 	•	 	 A Maintenance Work Permit Program 

  

	 	•	 	 Overall Work Practice 

  

	 	•	 	 Glove Bagging 

  

	 	•	 	 Mini-Enclosures 

  

	 	•	 	 Specific Removal Procedures 

  

	 	•	 	 Enclosure or Encapsuation of Asbestos Materials 

  

	 	•	 	 Operations and Maintenance Cleaning Practices 

 Maintenance Work Permit System 
 (see maintenance work permit section) 
 The Maintenance Work Permit system is a necessary fundamental aspect of the O&M Program. 
 Through the Permit System, all work orders or requests which may involve ACM are brought to the attention of the Asbestos Coordinator. Applicable asbestos survey reports are then accessed to determine if
ACM is present in the area where the work is to be performed. The area shall also be physically inspected to ensure records reflect actual present conditions. If there is any doubt, a second sample should be taken. 
 If ACM is found to be present in the area, the Asbestos Coordinator will advise on the proper methods to be used. Confirmational testing and subsequent
recommendations by the Environmental Consultant is advised. 
 The Asbestos Coordinator shall ensure only those maintenance workers specially
trained in these special work activities and who are currently in compliance with the Medical Surveillance and Respirator Protection Program are to perform the asbestos-related work. 
  

					
		  	73	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  
 WORK PROCEDURES 
 General Preparation of the Area 

Remove from the immediate work area all movable objects to protect them from potential asbestos contamination. Objects that cannot be moved should be
covered and sealed with 6-mil polyethylene sheeting before the task begins. 
 NOTE: The following step is to be performed with the proper
HEPA filtered respirator and impermeable full-body covering. 
 Clean any contaminated objects with a HEPA filtered vacuum and/or wet wipe
prior to sealing covering or removing from the work area. 
 Wet methods shall be used during small scale, short duration maintenance and
renovation activities that involve disturbing ACM. 
 Handling asbestos materials wet is one of the most reliable methods of ensuring that
airborne asbestos fibers are kept at a minimum. 
 Dry removal of ACM is strictly PROHIBITED without prior written approval from the South
Coast Air Quality Management District Office, and should be considered only when wetting procedures in renovation work would unavoidably damage electrical equipment or present a significant safety hazard. Contact an qualified environmental
consultant before undergoing a procedure which may require dry removal. 
 Amended water is water in which a surfactant has been added which
enables the water to more adequately penetrate the material. Common laundry soap powders are the most common example of a surfactant. The amended water shall be applied by means of an airless sprayer or manual pump sprayer to minimize the extent to
which the materials containing asbestos are disturbed. 
 Keep materials wet throughout the maintenance or renovation operation. 
  

					
		  	74	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  
 GLOVE BAGS 
 Glove bags are approximately 40” x 64” bags fitted with arms through
which the work can be performed. When properly installed and used, they permit workers to remain completely isolated from the asbestos material being removed or replaced inside the bag. Glove bags can thus provide a flexible, easily installed and
quickly dismantled temporary small work area enclosure that is ideal for small scale asbestos renovation and maintenance jobs. The bags are single-use control devices that are disposed of at the end of each job. 
 The bags are made of transparent, 6-mil thick polyethylene plastic. The bags must say: 
 DANGER 
 CONTAINS ASBESTOS FIBERS 
 Avoid Creating Dust 
 Cancer and Lung Disease 
 PIPE WRAP REPAIR OR REMOVAL 
 This procedure shall be performed with two trained persons. 
 Equipment Required

  

	 	*	6-mil thick polyethylene sheeting 

  

	 	*	Glove bag 

  

	 	*	Disposable cloths 

  

	 	*	Duct tape 

  

	 	*	Spray adhesive 

  

	 	*	Bone Saw, razor knife, or scissors 

  

	 	*	Portable pump sprayer with amended water 

  

	 	*	Portable pump sprayer with encapsulant 

  

	 	*	Nylon brush, disposable 

  

	 	*	HEPA vacuum 

  

	 	*	Asbestos disposal bags 

  

	 	*	Impermeable disposable full body suit 

  

	 	*	Negative pressure half-mask respirator equipped with HEPA filters 

  

					
		  	75	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  
 Set-Up 
  

	A.	Prepare the work area according to the procedure described earlier in this section. 

  

	B.	Post Asbestos DANGER signs at the entrances and exits to the work area. 

  

	C.	Cover the work floor area under the pipe to be repaired with a ten foot by ten foot square layer of at least 6-mil thick polyethylene plastic sheeting.

  

	D.	Don a disposable full body suit. 

  

	E.	Don respirator and perform positive and negative pressure checks. 

  

	F.	Place all necessary equipment inside the glove bag. 

  

	G.	Attach the glove bag to the section of pipe to be repaired: 

  

	 	1)	Glove bags must be installed so that they completely cover the pipe. Cut the sides of the glove bag to fit the size of the pipe from which asbestos is to be removed.
Attach the bag by folding the open edges together and sealing them securely with tape. All openings in the glove bag must be sealed. The bottom seam of the glove bag must also be sealed with duct tape or an equivalent as a strengthening measure.

  

	 	2)	Ensure that the glove bag is secured and sealed so it will be sufficient to hold the material being removed. 

  

	H.	Cut a small slit that will be large enough for the insertion of a vacuum hose in the upper half of the bag. Make another slit for the insertion of the airless sprayer
nozzle. 

  

	I.	Insert the HEPA vacuum hose and seal the area with duct tape. Insert the portable pump sprayer nozzle and seal the slit with duct tape. 

  

	J.	Perform the smoke test described at the end of this section. 

  

	K.	Note: It is suggested that a mini-enclosure is constructed around the area to be glovebagged (see mini-enclosure section). 

  

					
		  	76	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  
 Removal/Repair 
  

	A.	Thoroughly wet the section of the pipe to be removed using the portable pump sprayer filled with amended water. 

  

	B.	Remove the ACM from the pipe using the tools sealed inside the glove bag. Keep the material wet while performing the removal, including the debris that may fall to the
bottom of the glove bag. Throughout the removal of the ACM check the integrity of the bag. Ensure that no punctures, cuts or holes of the bag occur. Use duct tape to re-enforce weakened areas if necessary. 

  

	C.	After the removal of the ACM from the pipe, thoroughly clean the fresh surface with a nylon brush and wipe with a moistened cloth. 

  

	D.	Drop all the wet disposable cloths into the debris at the bottom of the glove bag. 

  

	E.	Thoroughly clean all tools with amended water and place them in the glove bag pouch. 

  

	F.	Use encapsulant in the portable pump sprayer to seal the cleaned surface, remaining pipe ends, and the interior surfaces of the glove bag. 

  

	G.	Twist the glove bag just below the attached area to seal the debris in the bottom of the bag. Secure with duct tape. 

  

	H.	Using the HEPA vacuum, collapse the glove bag. Remove the portable pump sprayer nozzles. Reseal the bag. 

  

	I.	Remove the HEPA vacuum hose from the bag. Re-enforce the seal. 

 Clean-Up 
  

	A.	Remove the tools from the glove bag pouch, put tools in arm, reverse arm, seal and tape shut. 

  

	B.	Dispose of the glove bag in a properly labeled asbestos disposal bag. 

  

	C.	Clean, with a HEPA vacuum, your full body suit while standing on the poly covering the floor. 

  

	D.	Remove the full body suit and place it on the plastic floor covering. 

  

					
		  	77	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  

	E.	Mist and roll up, in an inwardly fashion, the plastic floor covering and place it in a labeled asbestos disposal bag. 

  

	F.	Remove your respirator and wipe it with a wet cloth. Place the respirator in a bag, sealed for future use. 

  

	G.	Double bag all waste materials in a properly labeled asbestos disposal bag. 

  

	H.	Dispose of all waste according to directions outlined in the Hazardous Waste section of this manual. 

 Glove Bag Smoke Test Procedures 
 To insure complete containment within the glove bag, a smoke test may be performed, prior to initiation of work, using the following procedure. 
  

	A.	After the glove bag is securely attached, break both ends of the ventilation smoke tube. Suggested smoke tube: stannic oxychloride commonly used for irritant smoke
respirator fit-tests (qualitative). 

  

	B.	Attach a short length of tubing to one end of the smoke tube. 

  

	C.	Using a squeeze pump or other device, aspirate the smoke into the bag through the water port access sleeve. 

  

	D.	After twist sealing the access sleeve, squeeze the bag gently to check for leakage. 

  

	E.	Repair if necessary and repeat steps 1-4 until no leakage is detected. 

 MINI-ENCLOSURES 
 In some instances, such as removal of asbestos from a small ventilation
system or from a short length of duct, a glove bag may not be large enough or of the proper shape to enclose the work area. In such cases, a mini-enclosure can be built around the area where small scale, short duration asbestos maintenance or
renovation work is to be performed. Such an enclosure should be constructed of 6-mil thick polyethylene plastic sheeting. It can be small enough to restrict entry to the asbestos work area to only one worker. 
  

					
		  	78	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  
 For example, a mini-enclosure can be built in a small utility closet when asbestos containing duct covering is to be removed. 
 Equipment Required 
  

	 	*	6-mil-thick polyethylene plastic 

  

	 	*	2-inch by 4-inch lumber, or PVC piping 

  

	 	*	Wood staples 

  

	 	*	Spray adhesive 

  

	 	*	Duct tape 

  

	 	*	Razor Knife 

 Mini Enclosure Construction

  

	A.	Affix 6-mil thick plastic sheeting to the walls with spray adhesive and tape. 

  

	B.	Cover the floor with plastic and seal the plastic covering the floor to the plastic on the walls. To aid in the sealing of the enclosure, both ends of the plastic
should overlap at least six inches. 

  

	C.	Seal any penetration such as pipes, electrical conduits, or ventilation ducts with duct tape. 

  

	D.	Construct a small change room (approximately 3 feet square) made of six-mil-thick polyethylene plastic supported by 2-inch by 4-inch lumber or PVC piping. The plastic
should be attached to the supports with staples. After attaching the plastic sheeting to the supports, the holes made in the sheeting by the staples can be sealed using spray glue and duct tape. 

 The change room must of course be attached to the mini-enclosure. This room is necessary to allow the worker to vacuum off protective full body suit(s) and
remove them before leaving the work area. While inside the enclosure the worker should wear disposable full body suit and use appropriate respiratory protection. 
 CEILING TILE REMOVAL 
 This procedure should be performed with two trained persons.

  

					
		  	79	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  
 Equipment Required 
  

	 	*	6-mil thick polyethylene sheeting 

  

	 	*	Disposable cloths 

  

	 	*	Duct tape 

  

	 	*	Spray adhesive 

  

	 	*	Razor knife 

  

	 	*	Portable pump sprayer with amended water 

  

	 	*	Portable pump sprayer with encapsulant 

  

	 	*	HEPA vacuum 

  

	 	*	Asbestos disposal bags 

  

	 	*	Impermeable full-body suit (Klean-Guard) 

  

	 	*	Negative Pressure half-mask respirator equipped with HEPA filters 

  

	 	*	Ladder 

 Set-Up

  

	A.	Prepare the area to be worked in according to the procedure described for a glove bag operation. 

  

	B.	Build the mini enclosure described earlier. 

  

	C.	Post Asbestos DANGER signs at the entrances and exits to the work area. 

  

	D.	Double suit with two disposable full body suits. 

  

	E.	Don a respirator and perform positive and negative pressure checks. 

  

	F.	Place the equipment inside the mini-enclosure that will be used to remove the ceiling tile. This is to include both portable pump sprayers. (DO NOT place the body of
the HEPA vacuum inside the mini-enclosure, only the hose.) 

  

	G.	Make a hole in the enclosure large enough to insert the HEPA vacuum hose and insert enough hose to reach the subceiling and suspended ceiling. Seal the hole with duct
tape. 

  

					
		  	80	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  

	H.	Ensure that the HEPA vacuum hose is secured to an area in the mini-enclosure, and turn the vacuum on. The HEPA vacuum is to remain on throughout the entire work
procedure. 

  

	I.	Have enough asbestos disposal bags ready both inside and outside the mini-enclosure to accept waste as it is generated. 

 Removal 
  

	A.	Remove the ceiling tile carefully by sliding it atop an adjacent tile. 

  

	B.	If any ACM is found on the ceiling tile, remove it by spraying it lightly with amended water. Then place it in an asbestos disposal bag. 

  

	C.	Clean all tracks where ceiling tiles have been removed using disposable wet rags. 

  

	D.	Use extreme care in handling the tiles. Many brands are fragile and break easily. Vacuum the ceiling tile on all sides. 

  

	E.	Spray encapsulant on all area surfaces. 

  

	F.	Replace the tile. If the ceiling tile is to be replaced with a new tile, dispose of the tile in an asbestos disposal bag. 

 Clean-up 
  

	A.	Using the portable pump sprayer, spray encapsulant inside the mini-enclosure, covering all sides. 

  

	B.	Collapse the waste disposal bag by using the HEPA vacuum. Twist and tape asbestos disposal bags for removal from the area. 

  

	C.	Thoroughly clean and wet wipe all equipment to be removed from the mini-enclosure, and position it next to the entrance to the change room. 

  

	D.	Wet wipe face, hands and respirator with a dampened cloth prior to entering the change room of the mini-enclosure. The cloth should be disposed of as hazardous waste.

  

					
		  	81	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  

	E.	HEPA vacuum your outside protective suit. 

  

	F.	Enter the Change Room and remove all equipment from the mini-enclosure; remove remaining full body suit. 

  

	G.	After ensuring adequate time for the encapsulant to dry, dismantle the mini-enclosure. 

  

	H.	Dispose of all used polyethylene plastic sheeting as contaminated waste by sealing it in two 6-mil labeled asbestos waste bags. 

  

					
		  	82	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  
 FLOOR TILE REMOVAL 
 Small amounts of floor tile may be removed, using the mini-enclosure
described earlier. 
 Equipment Required 
  

	 	*	6-mil thick polyethylene sheeting 

  

	 	*	Disposable cloths 

  

	 	*	Duct tape 

  

	 	*	Spray adhesive 

  

	 	*	Razor knife 

  

	 	*	Portable pump sprayer with amended water 

  

	 	*	Portable pump sprayer with encapsulant 

  

	 	*	HEPA vacuum 

  

	 	*	Asbestos disposal bags 

  

	 	*	Impermeable full-body suit (Klean-Guard) 

  

	 	*	Negative Pressure half-mask respirator equipped with HEPA filters 

 Set-Up 
  

	A.	Build the mini-enclosure described earlier without a poly lined floor. 

  

	B.	Post Asbestos DANGER signs at the entrances and exits to the work area. 

  

	C.	Double suit with two disposable full body suits. 

  

	D.	Don a respirator and perform positive and negative pressure checks. 

  

	E.	Place the equipment inside the mini-enclosure that will be used to remove the floor tile. This is to include both portable pump sprayers. (DO NOT place the body of the
HEPA vacuum inside the mini-enclosure, only the hose.) 

  

	F.	Make a hole in the enclosure large enough to insert the HEPA vacuum hose and insert enough hose to reach the subceiling and suspended ceiling. Seal the hole with duct
tape. 

  

					
		  	83	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  

	H.	Ensure that the HEPA vacuum hose is secured to an area in the mini-enclosure, and turn the vacuum on. The HEPA vacuum is to remain on throughout the entire work
procedure. 

  

	I.	Have enough asbestos disposal bags ready both inside and outside the mini-enclosure to accept waste as it is generated. 

 Removal 
  

	A.	Insure that the tile is adequately wetted prior to removing. 

  

	B.	Using an ice chipper, carefully lift the tiles one tile at a time, trying not to break the tiles. If mastic is to be removed, a citric terpene degreaser works well. Big
Orange, manufactured by ZEP Industries (or equivalent), does not release any hazardous vapors and aids in the removal of mastic. In every case, proper ventilation is necessary. 

  

	C.	Place removed material in properly labeled bags as the work progresses. 

 Clean-Up 
  

	A.	Using the portable pump sprayer, spray encapsulant inside the mini-enclosure, covering all sides. 

  

	B.	Collapse the waste disposal bag by using the HEPA vacuum. Twist and tape asbestos disposal bags for removal from the area. 

  

	C.	Thoroughly clean and wet wipe all equipment to be removed from the mini-enclosure, and position it next to the entrance to the change room. 

  

	D.	Wet wipe face, hands and respirator with a dampened cloth prior to entering the change room of the mini-enclosure. 

  

	E.	HEPA vacuum your outside protective suit. 

  

	F.	Enter the Change Room and remove all equipment from the mini-enclosure; remove remaining full body suit. 

  

					
		  	84	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  

	G.	After ensuring adequate time for the encapsulant to dry, dismantle the mini-enclosure. 

  

	H.	Dispose of all used polyethylene plastic sheeting as contaminated waste, sealing it in two 6-mil labeled asbestos waste bags. 

 DRYWALL/DRYWALL MUD REMOVAL 
 Small amounts
of drywall may be removed, using the mini-enclosure described earlier. 
 Equipment Required 
  

	 	*	6-mil thick polyethylene sheeting 

  

	 	*	Disposable cloths 

  

	 	*	Duct tape 

  

	 	*	Spray adhesive 

  

	 	*	Razor knife 

  

	 	*	Portable pump sprayer with amended water 

  

	 	*	Portable pump sprayer with encapsulant 

  

	 	*	HEPA vacuum 

  

	 	*	Asbestos disposal bags 

  

	 	*	Impermeable full-body suit (Klean-Guard) 

  

	 	*	Negative Pressure half-mask respirator equipped with HEPA filters 

 Set-Up 
  

	A.	Build the mini-enclosure described earlier without a poly lined floor. 

  

	B.	Post Asbestos DANGER signs at the entrances and exits to the work area. 

  

	C.	Double suit with two disposable full body suits. 

  

	D.	Don a respirator and perform positive and negative pressure checks. 

  

	E.	Place the equipment inside the mini-enclosure that will be used to remove the drywall. This is to include both portable pump sprayers. (DO NOT place the body of the
HEPA vacuum inside the mini-enclosure, only the hose.) 

  

					
		  	85	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  

	F.	Make a hole in the enclosure large enough to insert the HEPA vacuum hose and insert enough hose to reach the subceiling and suspended ceiling. Seal the hole with duct
tape. 

  

	H.	Ensure that the HEPA vacuum hose is secured to an area in the mini-enclosure, and turn the vacuum on. The HEPA vacuum is to remain on throughout the entire work
procedure. 

  

	I.	Have enough asbestos disposal bags ready both inside and outside the mini-enclosure to accept waste as it is generated. 

 Removal 
  

	A.	Insure that the drywall is adequately wetted prior to removing. 

  

	B.	Remove drywall by use of hand tools. Keep material wet during removal. 

  

	C.	Place removed material in disposal bags as the work progresses. If a composite sample of drywall and drywall mud is <1% asbestos by weight, the material may be
disposed of as construction debris. 

 Clean-Up 
  

	A.	Using the portable pump sprayer, spray encapsulant inside the mini-enclosure, covering all sides. 

  

	B.	Collapse the waste disposal bag by using the HEPA vacuum. Twist and tape asbestos disposal bags for removal from the area. 

  

	C.	Thoroughly clean and wet wipe all equipment to be removed from the mini-enclosure, and position it next to the entrance to the change room. 

  

	D.	Wet wipe face, hands and respirator with a dampened cloth prior to entering the change room of the mini-enclosure. 

  

	E.	HEPA vacuum your outside protective suit. 

  

	F.	Enter the Change Room and remove all equipment from the mini-enclosure; remove remaining full body suit. 

  

					
		  	86	  	

 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  

	G.	After ensuring adequate time for the encapsulant to dry, dismantle the mini-enclosure. 

  

	H.	Dispose of all used polyethylene plastic sheeting as contaminated waste, sealing it in two 6-mil labeled asbestos waste bags. 

 LIMITED ABATEMENT OF SPRAY APPLIED ACOUSTIC CEILING MATERIAL 
 Equipment Required 
  

	 	*	6-mil thick polyethylene sheeting 

  

	 	*	Disposable cloths 

  

	 	*	Duct tape 

  

	 	*	Spray adhesive 

  

	 	*	Razor knife 

  

	 	*	Portable pump sprayer with amended water 

  

	 	*	Portable pump sprayer with encapsulant 

  

	 	*	HEPA vacuum 

  

	 	*	Asbestos disposal bags 

  

	 	*	Disposable full body suit (Klean-Guard) 

  

	 	*	Nonpermeable (rubber) gloves 

  

	 	*	Negative pressure, half-mask respirator equipped with HEPA filters, or Powered Air purifying respirator equipped with HEPA filters 

  

	 	*	Ladder 

  

	 	*	C-Clamps to extend the wood structures 

 Set-Up 
  

	A.	Prepare the work area and mini enclosure according to the procedure described earlier in this section. 

  

	B.	Make a hole in the enclosure large enough to insert the HEPA vacuum hose and seal the hole with tape. Turn on the vacuum to create a negative pressure effect inside the
penetrated work space. Avoid positioning the hose intake at or near the breathing zone. 

  

	C.	Have an asbestos disposal bag ready both inside and outside the mini-enclosure to accept waste as it is generated. 

  

					
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 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  

	D.	Enter the mini-enclosure and set up the ladder. Ensure all flaps are properly closed after entry to prohibit the escape of asbestos fibers that might become airborne
during the work procedures. 

 Removal 
  

	A.	The enclosure must be as close to the ceiling as possible without impacting or disturbing the sprayed-on material. 

  

	B.	Remove less than a three (3) square feet section of sprayed-on acoustic ceiling material from the desired on the ceiling. Ensure area is well wetted with amended
water. Use a paint scraping tool while holding an asbestos waste disposal bag directly under the work surface. 

  

	C.	Spray encapsulant on all sides of where the material was removed and including the ceiling tile to be positioned back into place. If the ceiling tile is to be replaced
with a new tile, dispose of the tile in a properly labeled asbestos disposal bag. 

 Clean-up 
  

	A.	Clean any fixtures inside the enclosure and the interior of the extension with wet rags and the HEPA vacuum. 

  

	B.	Using the portable pump sprayer filled with encapsulant, encapsulate all surfaces within the mini-enclosure. 

  

	C.	Roll up the polyethylene plastic sheeting cloth used inside the mini-enclosure and place it in an asbestos disposal bag. 

  

	D.	Collapse the waste disposal bags by using the HEPA vacuum. Twist and tape asbestos disposal bags for removal from the area. 

  

	E.	Thoroughly clean and wet wipe all equipment to be removed from the mini-enclosure, and position it next to the entrance to the change room. 

  

	F.	HEPA vacuum the first layer of the disposable full body suit. 

  

					
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 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  

	G.	Wet wipe face, hands and respirator with a dampened cloth prior to entering the change room of the mini-enclosure. 

  

	H.	Enter the Change Room and remove all equipment from the mini-enclosure. 

  

	I.	Remove last disposable full body suit. Dispose of full body suit as asbestos contaminated waste. 

  

	J.	After ensuring adequate time for the encapsulant to dry, usually at least 2 hours, dismantle the mini-enclosure. 

  

	K.	Dispose of all used poly as contaminated waste by sealing it in two 6-mil thick properly labeled asbestos waste bags. 

 ELECTRICAL AND TELEPHONE WIRE INSTALLATION 
 Equipment Required 
  

	 	*	6-mil thick polyethylene sheeting 

  

	 	*	Disposable cloths 

  

	 	*	Duct tape 

  

	 	*	Spray adhesive 

  

	 	*	Razor knife 

  

	 	*	Portable pump sprayer with amended water 

  

	 	*	Portable pump sprayer with encapsulant 

  

	 	*	HEPA vacuum 

  

	 	*	Asbestos disposal bags 

  

	 	*	Disposable full body suit (Klean-Guard) 

  

	 	*	Negative Pressure half-mask respirator equipped with HEPA filters 

  

	 	*	Ladder 

 Set-Up

 Prepare the area and mini-enclosure according to the procedure described earlier. 
 Performing the Work 
  

	A.	Remove the ceiling tile carefully by sliding it atop of an adjacent tile. 

  

					
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 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  

	B.	If any gross ACM is present remove it by spraying it lightly with amended water, then removing it with the HEPA vacuum hose. 

  

	C.	Clean all tracks where ceiling tiles have been removed using the disposable wet rags and the HEPA vacuum. 

  

	D.	Carefully run wire an arms length at a time. To avoid disturbing sprayed-on fireproofing material on deck, the wire being installed shall not be tossed, but
placed into the next area. 

  

	E.	The wire should be secured wherever possible without impacting the sprayed-on fireproofing. If the material must be disturbed, follow the deck penetration procedures
outlined in the previous section (Deck Penetration Procedures) to remove any small areas of sprayed-on fireproofing. 

  

	F.	Any section of the wire penetrating through the ceiling must be wet wiped clean and encapsulated prior to penetrating the ceiling tile or wall board.

  

	G.	Spray encapsulant on all sides of the enclosure including the ceiling tile to be positioned back into place. If the ceiling tile is to be replaced with a new tile,
dispose of the tile in an asbestos disposal bag. 

 Clean-up 
  

	A.	Collapse the disposal bags by inserting the HEPA vacuum hose. Twist and tape the collapsed asbestos disposal bags for removal from the area. 

 

	B.	Thoroughly clean and wet wipe all equipment to be removed from the mini-enclosure, and position it next to the entrance to the change room. 

  

	C.	Wet wipe face, hands and respirator with a dampened cloth prior to entering the change room of the mini-enclosure. 

  

	D.	Enter the Change Room and remove all equipment from the mini-enclosure. 

  

	E.	After ensuring adequate time for the encapsulant to dry, dismantle the mini-enclosure. 

  

					
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 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  

	F.	Dispose of all used poly as contaminated waste by sealing it in two 6-mil thick properly labeled asbestos waste bags. 

 REMOVAL OF ENTIRE STRUCTURES 
 NOTE:
The following method shall only be considered in consultation with the Environmental Consultant. 
 When pipes are insulated with materials
containing asbestos, removal of the entire pipe may be more protective, easier, and more cost-effective than stripping the asbestos insulation from the pipe. 
 Before such a pipe is cut, the asbestos insulation must be wrapped with 6-mil thick polyethylene plastic and securely sealed with duct tape or an equivalent. 
 This plastic covering will prevent asbestos fibers from becoming airborne as a result of the vibration created by the power saws used to cut the pipe. If
possible, the pipes should be cut at locations that are not insulated to avoid disturbing the asbestos. 
 If a pipe is completely insulated
with ACM, small sections should be stripped using the glove-bag method described above before the pipe is cut at the stripped sections. Follow the glove bag procedures as given in the appropriate section or the mini-enclosure procedures if
necessary. The entire removed pipe should be disposed of as asbestos hazardous waste. 
 Enclosure and encapsulation are two options that may be
employed to confine ACM. 
 Enclosure and Encapsulation of Asbestos Materials 
 NOTE: The following method should only be considered after consulting with the Environmental Consultant. 
 Encapsulation 
 Encapsulation may be used to
“lock down” fibers in small areas of ACM. Encapsulation is a temporary solution. Encapsulation of ACM will add weight to the material which may cause the ACM to delaminate. If encapsulation of a large area is being considered, the work
should be performed by a certified asbestos abatement contractor. 
  

					
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 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  
 Generally, encapsulants are applied with airless spray equipment. Brushes or rollers applied to friable ACM will lead to dangerous fiber releases and, as such, are not recommended. Air spray equipment can
cause excessive fiber release due to the air blast against the ACM which accompanies the propelled encapsulant when this type of equipment is used. 
 The encapsulation method does not negate the isolation and restricted area provisions called for in normal removal procedures. The same provisions for protective equipment, clothing, respirators, and air monitoring are required. 

Enclosure 
 Enclosure is an EPA approved
abatement process that is rarely used in practical application. Enclosure refers to the construction of an airtight structure around the ACM. Enclosures often require skills not normally required in the abatement field. 
 While each area to be enclosed must be evaluated on a case by case basis, the following recommendations should be considered: 
  

	A.	The underlying support structure must be capable of withstanding any additional loads imposed by the enclosure. 

  

	B.	Power tools used during installation of the enclosure should be equipped with HEPA filtered vacuums. 

  

	C.	The enclosure should be constructed in such a manner that will absolutely minimize air movement. While no enclosure will be totally airtight, the use of gypsum board
panels with taped seams or tongue-and-groove boards will be sufficient for enclosure purposes. All joints and seams must be caulked. Do not use suspended ceilings with dropping tile (e.g., “T-Bar” design). 

  

	D.	If lights are recessed into ACM, they must be removed carefully to minimize fiber release. Lights should be cleaned using HEPA filtered vacuums and wet method sand
reinstalled beneath the new ceiling. 

  

	E.	Rerouting of plumbing, electrical, computer and phone cables may be required for later access. 

  

					
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 WORK PRACTICES 
 ARCO Plaza, Los Angeles, California 
  

	F.	Building records must note the presence of asbestos behind the enclosure to prevent accidental fiber release during remodeling or demolition. Signs should be posted,
noting that ACM is present behind the enclosure. 

 Operations & Maintenance Cleaning Practices 

Special cleaning practices should be employed in areas where ACM is present. This section refers to routine cleaning in areas where ACM is present, but
has not been disturbed. When ACM has been disturbed, it is considered a fiber release episode. In this case, procedures in the emergency response action section should be employed. 
 Wet Wiping is the key to proper routine cleaning in areas where ACM is present, but not disturbed. Dry sweeping or dusting may re-suspend asbestos fibers into the buildings air. Wet cloths, rags,
and mops may be used for general cleaning. These materials should be discarded as asbestos waste. 
 HEPA vacuums may be used in carpeted areas.

 Special O&M cleaning will not need to be employed in areas where non-friable ACM is present. As long as the ACM is not itself cleaned,
special practices can be employed for cleaning of nonfriable materials, e.g. floor tile. 
  

					
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 12 
 Emergency Response Action 
  

					
		  		  	

 EMERGENCY RESPONSE ACTIONS 
 The previous sections of the Operations and Maintenance Program (O&M) are designed to minimize the potential for fiber release from asbestos-containing
materials (ACM). Custodial and maintenance workers are required to report the presence of debris on the floor, water or physical damage of confirmed ACM. As long as ACM remains in the building, the potential for fiber release episodes is a
possibility. Categories for the potential fiber release episodes are: A) Minor Release Episodes and, B) Major Release Episodes. 
 Minor
Release Episodes 
 Limited to three square or linear feet or less of ACM that has been disturbed, accidentally, without proper
Work Controls having been implemented (according to guidelines used in AHERA). 
 Contamination Control 
 The accidental release of ACM debris caused by sudden unexpected events which include, but are not limited to: non routine failures of equipment, earth quake
or fire damage. 
 Maintenance personnel should report the presence of debris on the floor, water or physical damage to ACM, or any other
evidence of possible fiber release immediately to the Asbestos Coordinator. 
 Fiber release episodes can also occur during small scale, short
duration maintenance projects. The Asbestos Coordinator should call the Environmental Consultant for an evaluation of the potential for fiber release in such emergencies. 
 In the event of such an emergency the following procedures must be initiated: 
  

	 	1.	Trained maintenance staff will restrict access to the area, with posted warning signs and barriers until deemed clear by the Environmental Consultant

  

	 	2.	Notify the Asbestos Coordinator immediately to commence with Emergency Response Procedures 

  

	 	3.	Decontamination procedures will commence immediately 

  

	 	4.	Documentation of the Episode will be processed using the attached form 

  

					
		  		  	

 EMERGENCY RESPONSE 
 ARCO Plaza, Los Angeles, California 
  
 Emergency Response Equipment 
 The following items will be kept accessible to appropriately
trained maintenance personnel in the event of an emergency. 
 EMERGENCY RESPONSE KIT (ERIK) 
 As a minimum the following equipment will be secured and kept in an accessible area in the event of an emergency: 
  

					
	 1.
	  	One (1)	    	2-gallon hand pump sprayer containing amended water
			
	 2.
	  	One (1)	    	I-gallon of encapsulant, undiluted
			
	 3.
	  	One (1)	    	HEPA Vacuum
			
	 4.
	  	Ten (10)	    	Glove Bags
			
	 5.
	  	One (1)	    	Utility Knife
			
	 6.
	  	One (1-roll)	    	6-mil-thick polyethylene sheeting
			
	 7.
	  	One (1-roll)	    	6-mil-thick asbestos waste disposal bags
			
	 8.
	  	One (1-box)	    	disposable towels or cotton cloth
			
	 9.
	  	One (1-box)	    	disposable non-permeable full body coveralls
			
	 10.
	  	One (1-box)	    	impermeable disposable gloves
			
	 11.
	  	Three (3)	    	negative pressure half-face respirators complete with two (2) changes of HEPA filters
			
	 12.
	  	One (1-roll)	    	Barrier flagging with Asbestos DANGER printed in red and white lettering
			
	 13.
	  	Ten (10)	    	Asbestos DANGER Signs
			
	 14.
	  	One (1)	    	case duct tape
			
	 15.
	  	One (1)	    	case spray adhesive
			
	 16.
	  	Three (3)	    	pairs safety goggles

 Emergency Decontamination
Procedures 
  

	 	1.	The HVAC systems serving the area will be shut down to prohibit the contamination of surrounding areas 

  

					
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 EMERGENCY RESPONSE 
 ARCO Plaza, Los Angeles, California 
  

	 	2.	Workmen trained for such responses will don personal protection equipment appropriate for the incident consisting of: 

  

	 	A)	Full body covering disposable clothing (Tyvek suits) 

  

	 	B)	Powered, Air Purifying Respirators or Negative Pressure, Half-Face Respirators 

  

	 	C)	Nonpermeable gloves and boots 

 *NOTE:
The determination for using either of the two forms of respiratory protection will be made by the Environmental Consultant in coordination with the assigned Asbestos Coordinator. 
  

	 	3.	Any large pieces of fallen debris shall be immediately wetted with amended water and placed in a 6-mil-thick, properly labeled asbestos waste disposal bag. A second bag
will be placed over the first before being transported to the designated hazardous storage area. 

  

	 	4.	All contaminated surfaces must be thoroughly cleaned with a HEPA vacuum, followed by wet wiping of all surfaces. 

  

	 	5.	Permeable materials (e.g., curtains, rugs, fabric chairs or sofas) must be dampened, contained and sealed in plastic until decontamination evaluations will be made by
the Environmental Consultant. Evaluations of each contaminated surface material will be conducted by evaluating the contamination source, the permeability of the surface exposed and the adequacy of the decontamination procedures to be used.

  

	 	6.	After the initial clean-up of all contaminated surfaces, the maintenance staff will place the disposal rags used and the full body disposable suits in proper waste
disposal bags. 

  

	 	7.	The Environmental Consultant will evaluate the adequacy of the clean-up procedures. If necessary, encapsulant will be applied to the appropriate surfaces. Air sampling
will commence after the area is deemed clean and if encapsulant has had sufficient drying time. 

  

					
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 EMERGENCY RESPONSE 
 ARCO Plaza, Los Angeles, California 
  

	 	8.	The contaminated area will remain a Restricted Area until the area is accessed by the Environmental Consultant. 

 Major Release Episodes 
 Large
amounts of ACM (greater than 3 square or linear feet). Major fiber release episodes are serious events. Large amounts of ACM falling from heights of several feet may contaminate an entire building with asbestos fibers. 
 The following Emergency response procedures shall be used: 
  

	 	1.	The Asbestos Coordinator and the Environmental Consultant shall be contacted immediately to initiate Emergency Response actions. 

  

	 	2.	The entire functional area will be isolated as soon as possible. Where areas can be sealed by doors, they shall be locked from the inside (escape corridors must remain
in operation) and Asbestos Warning Signs will be posted to prevent unauthorized personnel from entering the contaminated area. 

  

	 	3.	The air handling system will be shut off. 

  

	 	4.	Doors, windows, and air registers must be sealed with 6-mil thick polyethylene sheets and duct tape. 

 NOTE: The following procedures are restricted to CERTIFIED ASBESTOS ABATEMENT WORKERS only. The Environmental Consultant will evaluate each Major Episode
Release incident individually. 
  

	 	5.	Appropriately trained workers don Powered Air Purifying Respirators (PAPR) or “type C” Self-contained breathing apparatus (SCBA) respirators operated in
pressure demand mode, protective clothing including a full body suit, hood, boots and gloves. Exposure air monitoring must be conducted on representative workers when PAPR’s are utilized. Air monitoring is not required if SCBA equipment is
utilized. 

  

					
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 EMERGENCY RESPONSE 
 ARCO Plaza, Los Angeles, California 
  

	 	6.	Fallen debris shall be saturated with amended water and placed in properly labelled polyethylene (double layered) bags designed for disposal. 

 

	 	7.	All contaminated surfaces must be thoroughly cleaned with a HEPA vacuum, followed by wet wiping of all surfaces. 

  

	 	8.	Permeable materials (e.g., curtains, rugs, fabric chairs or sofas) must be dampened, and contained and sealed in plastic until decontamination evaluations are made by
the Environmental Consultant. Evaluations of each contaminated surface material will be conducted by evaluating the contamination source, the permeability of the surface exposed and the adequacy of the decontamination procedures to be used.

  

	 	9.	After the initial clean-up of all contaminated surfaces, the maintenance staff will place the used disposal rags and the full body disposable suits in 6 mil properly
labeled asbestos bags. 

  

	 	10.	The Environmental Consultant will evaluate the adequacy of the clean-up procedures. If necessary, encapsulant will be applied to the appropriate surfaces. Air sampling
will commence after the area is deemed clean and the encapsulant has had sufficient drying time. 

  

	 	11.	The contaminated area will remain a Restricted Area until the area is accessed by the Environmental Consultant and air monitoring is conducted in two phases:

 PHASE 1 
 Non-aggressive sampling method to establish non-residency ambient level. If this first phase of air sampling results with an adequate area clearance level, the next phase of air monitoring will proceed.

  

					
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 EMERGENCY RESPONSE 
 ARCO Plaza, Los Angeles, California 
  
 PHASE 2 
 Aggressive sampling will be conducted to simulate normal occupancy levels. If
this phase of air sampling results with an adequate area clearance level, the area will be deemed decontaminated and ready for reoccupancy. 
 After the barriers have been taken down, a decontamination of the entire building and HVAC system will involve disassembling and cleaning (HEPA-vacuuming and wet wiping) ducts, ventilators, registers, and other system parts. System filters
shall also be removed and replaced. Contaminated filters will be considered as contaminated waste and disposed of according to state requirements (See O&M Section entitled: Asbestos Containing Material Waste Handling, Transport and Disposal).

  

					
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 13 
 Asbestos Abatement Contractors 
  

					
		  		  	

 RESPIRATORY PROTECTION 69 
 ARCO Plaza, Los Angeles, California 
  
 ASBESTOS ABATEMENT CONTRACTORS 
 In some cases it may be necessary to remove the ACM from
an area. These instances may include renovation, demolition or extensive damage of material. If a project involves the removal or clean-up of over 100 square feet of asbestos containing material (ACM), a skilled certified asbestos abatement
contractor must be hired to perform the task. This removal should be performed according to written guidelines (i.e., project specifications). The Environmental Consultant can provide abatement project specifications for such projects. 

Choosing an Asbestos Abatement Contractor 
 Identification of a responsible abatement contractor requires careful scrutiny of various kinds of documentation that can reflect their experience and reliability. Documents required as a minimum submittal package from the Abatement
contractor are listed below. 
 The Environmental Consultant can assist you in the choice of a qualified abatement contractor. 
 REQUIRED: 
  

	1.	Evidence of certification by the Contractors State License Board. (916) 366-5153 or 557-2037 for verification. 

  

	2.	Evidence of Cal/OSHA (Division of Safety and Health) registration to handle asbestos (916) 557-2037. 

  

	3.	Certifications of liability insurance. An abatement contractor should be covered by general liability insurance. The amount of insurance should be specified. Evidence
of EPA approved training for workers and specific asbestos liability insurance. Occurrence liability policies are more difficult to obtain than claims made and reflect the perceived reliability of the firm. 

  

	4.	Certification of workers compensation insurance. 

  

	5.	Evidence that a certified Competent Person or Accredited Supervisor trained in an EPA approved training center (or OSHA approved equivalent) will be responsible for
daily on-site supervision of the project. 

 RECOMMENDED: 
  

	1.	A list of professional references: consultants, regulators and laboratories with whom the contractor has worked with in the past. 

  

	2.	A list of personal references from previous jobs of similar size and scope. 

  

					
		  		  	

 ABATEMENT CONTRACTORS 
 ARCO Plaza, Los Angeles, California 
  

	3.	A list of citations and violations (attempt to verify this independently through Cal/OSHA: (415) 557-1677; 557-2851) or call Federal OSHA for violations:
(415) 943-1973. 

  

	4.	Evidence of EPA approved training for workers. 

  

	5.	Material, product and equipment information. 

  

	6.	Hauler and disposal information. 

  

	7.	Detailed work plan. 

  

	8.	Standard work procedures. 

  

	9.	Air monitoring procedures. 

  

	10.	Scaffolding permit. 

  

	11.	DOHS waste hauler certificate - (if applicable). 

 During removal it is recommended that the abatement contractor have the following items posted near or on the site: 
  

	1.	Notifications from: SCAQMD, NESHAPS, OSHA, workers compensation insurance. 

  

	2.	Medicals, physicals and training records. 

  

	3.	Certificates from: DOHS Waste Hauler, CAL OSHA Asbestos Regulation, CAL OSHA Carcinogen Registration, Contractors State License #. 

  

	4.	Signs: Asbestos warning signs, Emergency exits and phone #’s, OSHA workers rights and workers compensation poster. 

  

	5.	On-site records: Hercord communication, emergency action and fire prevention plan, respiratory protection program. 

  

	6.	Medical and training documentation of workers. 

  

					
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 14 
 Asbestos Waste Handling, Transport and Disposal 
  

					
		  		  	

 ASBESTOS WASTE HANDLING, TRANSPORT AND DISPOSAL 
 The California Department of Health Services (DOHS) has classified friable material greater than one percent asbestos as hazardous waste. Asbestos, as
defined, includes chrysolite, amosite, crocidolite, tremolite, anthophyllite and actinolite. 
 The management of such wastes is subjected to
regulatory agencies operating under separate approved authority. The classification standard can be referenced in the California Code of Regulation Section 66699 of Title 22. 
 Packaging 
 Asbestos wastes must be sealed in non-reusable containers such as two
layered properly labeled plastic bags of 6-mil-thick polyethylene, cartons, drums or cans. 
 Wastes within the container should be wetted to
prevent blowing of fibers in case the container is broken. If waste will not fit into a container without additional containers it may be transported in closed vehicles (e.g. covered drop boxes or canvas covered truck boxes) provided the wastes are
wetted to prevent blowing dust, and are sealed in leak tight wrapping. Material should not be overly wetted; to much water is worse than no water, because it causes breaks/tears in the bags. 
 Labeling Requirements: 
 Caution labels are
required on containers or drop boxes and must be in conspicuous legible lettering which spells out the following warning: 
 DANGER 
 Contains Asbestos Fibers 
 Avoid Creating Dust 
 Cancer and Lung Disease Hazard

 The Department of Transportation does not require placarding on transportation vehicles. 
  

					
		  		  	

 WASTE HANDLING 
 ARCO Plaza, Los Angeles, California 
  
 Transportation 
 Manifest 
 In accordance with Title 22 Section 25163 (c) of the Health and Safety Code, asbestos hazardous wastes which are transported to a disposal site
must be accompanied by a properly completed Uniform Hazardous Waste Manifest. 
 The generator must obtain an EPA Identification number by
calling the Department of Health Services at (916) 324-1781. A new EPA-ID number is required for each job site (i.e., a floor address). A TAX-ID number from the Board of Regulations is required, (916) 739-2582. This number is the same for
all jobs performed by one generator. 
 The generator and disposal site operator must, on a monthly basis, return a copy of each manifest used
or received to the DOHS. 
  

	 Disposal Site Operators: 
	Department of Health Services 

 Toxic Substances Control
Division 
 P.O. Box 3000 
 Sacramento, CA 95802 
  

	 Generators 
	Department of Health Services 

 Toxic Substances Control
Division 
 Attn: Manifest Processing Unit 
 714/744 P Street 
 P.O. Box 942732 
 Sacramento, CA 94234-7320 
 The
manifest consists of six identical pages. The documentation of each page is marked on the bottom right hand side. The generator sends the blue copy to DOHS and retains the gold copy for his or her records. Instructions for completing the Hazardous
Waste Manifest are on the back of the first page. The manifest must be signed by the generator or a representative of the generator. 
 Effective on July 1, 1987, the proper U.S. Department of Transportation description for waste asbestos is: 
     Hazardous Waste, Solid, N.O.S., ORM-E, NA9189 (Asbestos)(RQ). 
  

					
		  	96	  	

 WASTE HANDLING 
 ARCO Plaza, Los Angeles, California 
  
 Weight Restrictions 
 Over Fifty Pounds (>50 lbs.) - must be transported by a
registered hazardous waste hauler to an approved treatment, storage, and disposal facility. 
 Under Fifty Pounds (<50 lbs.) - A
hazardous waste manifest is not required when transporting is less than 50 lbs. of a hazardous waste to a hazardous waste facility provided each of the following provisions are met: 
  

	 	A.	Hazardous wastes are transported in closed containers and packed in a manner that prevents the containers from tipping, spilling, or breaking during the transporting.

  

	 	B.	Different hazardous waste materials are not mixed within a container during the transporting. 

  

	 	C.	The person transporting the hazardous waste is the producer of that hazardous waste, and the person produces no more than 100 kilograms (220 lbs.) of hazardous waste in
any one month. 

 Disposal 
 Pursuant to Section 25143.7 of the Health and Safety Code, wastes containing asbestos may be disposed of in any landfill which meets the waste discharge requirements issued by the Regional Water
Quality Control Board. Disposal of such waste, is allowed provided that the sites are handled and disposed of in accordance with the Toxic Substances Control Act (Public Law 94-469) and all applicable laws and regulations. Provisions of the Toxic
Substances Control Act (TSCA) are found in Title 40, Code of Federal Regulations, Part 763. Other applicable laws and regulations include the Clean Air Act’s National Emission Standards for Hazardous Regulations, Division 4, Chapter 30 (Minimum
Standards for the Management of Hazardous and Extremely Hazardous Wastes). The National Emission Standard for Asbestos is found in Title 40, Code of Federal Regulations, Part 61, Subpart M. Non-friable material may be disposed of as non-hazardous
waste providing a landfill will accept the material. It must be accompanied by a non-hazardous waste manifest. 
  

					
		  	97	  	

 WASTE HANDLING 
 ARCO Plaza, Los Angeles, California 
  
 Disposal Site Operators 
 The owner or operator of any storage facility shall adhere to the
following requirements: 
  

	 	A.	Maintain the integrity of leak-tight containers at all times. 

  

	 	B.	Display warning signs at all entrances and at intervals of 330 feet or less along the property line of the site or along the perimeter of the sections of the site where
the asbestos containing waste material is being deposited. 

  

	 	C.	Deter access to the general public by maintaining a fence along the perimeter of the site or by the use of a natural barrier. 

  

	 	D.	Maintain a separate disposal section for all ACM. 

  

	 	E.	Cover asbestos containing waste with at least six (6) inches of non-ACM at the end of normal business hours. Compact the waste only after it has been completely
covered with the non-ACM. Use a low pressure water spray or a nontoxic dust suppressing chemical for any surface wetting after compaction. 

  

	 	F.	Prior to final closure of the asbestos waste site, cover asbestos containing waste with a minimum of an additional thirty (30) inches of compacted non-ACM, and
maintain it to prevent exposure of the asbestos containing waste. 

 Fees and Taxes 
 State Law 
 State law imposes a fee and tax
on the land disposal of hazardous waste. Additionally, a fee is imposed on generators of more than five tons/site/year of hazardous waste (regardless of disposition). Fees and taxes apply to asbestos removal and are generally payable directly by the
generator of the asbestos waste. In this context, the generator is the person who has arranged for the asbestos removal. 
  

					
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 WASTE HANDLING 
 ARCO Plaza, Los Angeles, California 
  
 Federal Law 
 The annual Hazardous Substance Account (HSA) tax is payable July 1 of
each year. The HSA tax is calculated after the Board of Equalization receives disposal returns due March 1 of each year. Persons who disposed of more than 500 pounds per year of asbestos waste will be contacted directly by the Board for
verification of the amounts disposed. 
 The Hazardous Waste Control Account (HWCA) fees are payable quarterly or semi-annually directly by
generators who have disposed of more than 500 pounds per year of wastes to land sites. 
 If the asbestos removal involved is less than 500
pounds, the disposal fee is payable by the facility which accepted the waste. 
 If the asbestos removal involves amounts over 500 pounds, the
manifest should include the generator’s Board of Equalization taxpayer number (listed in Section 2 of the manifest). A Board of Equalization taxpayer number can be obtained from the Board by calling (916) 322-9070, or the Department
of Health Services at (916) 324-1781. 
 Aditional Information 
 For additional information on regulations governing the management of asbestos wastes in California, write or call the Department of Health Services Toxic Substances Control Division nearest you:

  

	 	1.	Northern California Section 

 4250 Power Inn Road 
 Sacramento, CA 95826 
 (916) 739-3145 
 or:

  

	 	2.	Fresno District Office 

 5545
East Shields Avenue 
 Fresno, CA 93727 
 (209) 445-5938 
 or: 
  

	 	3.	North Coast California Section 

 5850 Shellmound Street, Suite 390 
 Emeryville, CA 94608 
 (415) 540-2043 
  

					
		  	 99
	  	

 WASTE HANDLING 
 ARCO Plaza, Los Angeles, California 
  
 (415) 540-2043 
 or: 
  

	 	4.	Southern California Section 

 107
South Broadway, Room 7011 
 Los Angeles, CA 90012 
 (213) 620-2380 
  

					
		  	100	  	

 Appendix A 
 Glossary 

 

 

 GLOSSARY/DEFINITIONS 
 Accessible - Asbestos-containing material that is subject to disturbance by occupants or custodial or maintenance personnel in the course of their normal activities. 
 Accredited or Accreditation - when referring to a person or laboratory means that such person or laboratory is accredited in accordance with
section 206 of Title II of Act. 
 ACM - asbestos-containing material (see definition below) 
 ACBM - asbestos-containing building material 
 Adequate Wetting - is the prevention of fiber emissions by sufficient mixing or coating of asbestos containing material with amended water. Wetting shall be performed using a dispenser or water hose with a nozzle that permits the use
of a fine, low pressure spray or mist. 
 Amended Water - is water to which a chemical wetting agent or surfactant has been added.

 Aerosol - A system consisting of particles, solid or liquid, suspended in air. 
 Air Cell - Insulation normally used on pipes and duct work that is comprised of corrugated cardboard which is frequently comprised of asbestos
combined with cellulose or refractory binders. 
 Air Erosion - means the passage of air over friable ACM which may result in the release
of asbestos fibers. 
 Air Monitoring - The process of measuring the fiber content of a specific volume of air. 
 Amended Water - Water to which a surfactant has been added. 
 Asbestos - means asbestiform varieties of - Chrysotile (serpentine); Crocidolite (reibeckite); Amosite (cummingtonite-grunerite); Anthophyllite; Tremolite; and Actinolite. 
 Asbestos-Containing Material - (ACM) means any construction material or product which contains more than 1 percent asbestos. Classifications fall
under Friable and Class I Nonfriable asbestos-containing material. 
 Asbestos-Containing Building Material - (ACBM) means surfacing ACM,
thermal system insulation ACM, or miscellaneous ACM that is found in or on interior structural members or other parts of a building. 
 Asbestos-Containing Waste Material - Any material which is or is suspected of being or any material contaminated with an asbestos-containing material which is to be removed or has been removed from a work area for disposal.

 Asbestos debris - means pieces of ACM that can be identified by color, texture, or fiber content as originating from adjacent ACM.

 

 

			
	GLOSSARY	 	APPENDIX A - 2
	ARCO Plaza, Los Angeles, California	 	

  

 Authorized Visitor - The Owner, the Owner’s Representative, testing lab personnel, the
Architect/Engineer or a representative of any federal, state and local regulatory or other agency having authority over a project. 
 Barrier - Any surface that seals off the work area to inhibit the movement of fibers. 
 Breathing Zone - A hemisphere
forward of the shoulders with a radius of approximately 6 to 9 inches. 
 Ceiling Concentration - The concentration of an airborne
substance that shall not be exceeded (see also PEL). 
 Certified Industrial Hygienist (C.I.H.) - An industrial hygienist certified in
Comprehensive Practice by the American Board of Industrial Hygiene. 
 Class I Nonfriable Asbestos-Containing Material - is non-friable
material containing more than one (1) percent asbestos by weight and that can potentially be broken, crumbled, pulverized or reduced to powder in the course of demolition or renovation activities. Non-friable asbestos-containing material may
become friable when physically worn, disturbed by mechanical force, such as, but not limited to; sanding, sandblasting, cutting or scraping, improper handling or removal, disposal or leaching of matrix binders. Nonfriable asbestos-containing
material that may be rendered friable include, but are not limited to; fractured or crushed asbestos cement products, transite siding, mastic, roofing felts, roofing tiles, cement water pipes, and vinyl floor tile. 
 Class II Nonfriable Asbestos-Containing Material Damaged (Friable ACM) - means friable miscellaneous ACM which has deteriorated or sustained physical
injury such that the internal structure (cohesion) of the material is inadequate or, if applicable, which has delaminated such that its bond to the substrate (adhesion) is inadequate or which for any other reason lacks fiber cohesion or adhesion
qualities. Such damage or deterioration may be illustrated by the separation of ACM into layers; separation of ACM from the substrate; flaking, blistering, or crumbling of the ACM surface; water damage; significant or repeated water stains, scrapes,
gouges, marks or other signs of physical injury on the ACM debris originating from the ACM in question may also indicate damage. 
 Damaged
Friable Surfacing ACM - means friable surfacing ACM which has deteriorated or sustained physical injury such that the internal structure (cohesion) of the material is inadequate or which has delaminated such that its bond to the substrate
(adhesion) is inadequate, or which, for any other reason, lacks fiber cohesion or adhesion qualities. Such damage or deterioration may be illustrated by the separation of ACM into layers; separation of ACM from the substrate; flaking, blistering, or
crumbling of the ACM surface; water damage; significant or repeated water stains, scrapes, gouges, mars or other signs of physical injury on the ACM. Asbestos debris originating form the ACBM in question may also indicate damage. 
 Damaged or Significantly Damaged Thermal System Insulation ACM - means thermal system insulation ACM on pipes, boilers, tanks, ducts, and other
thermal system insulation equipment where the insulation has lost its structural integrity, or its covering, in whole or in part, is crushed, water-stained,

  

 

 

			
	GLOSSARY	 	APPENDIX A - 3
	ARCO Plaza, Los Angeles, California	 	

  

 
gouged, punctured, missing, or not intact, such that it is not able to contain fibers. Damage may be further illustrated by occasional punctures, gouges or other signs of physical injury to ACM;
occasional water damage on the protective covering/jackets; or exposed ACM ends or joints. Asbestos debris originating from the ACM in question may also indicate damage. 
 Decontamination Area - a term under Federal OSHA standards meaning an enclosed area adjacent and connected to the regulated area and consisting of an equipment room, shower area, and clean room,
which is used for the decontamination of workers, materials, and equipment contaminated with asbestos. 
 Demolition - a term under
Federal OSHA standard meaning the wrecking or taking out of any load-supporting structural member and any related handling operations or the intentional burning of any facility. 
 Disposal Bag - 6 mil thick leak-tight plastic bags used for transporting asbestos waste from work and to disposal site. Each is labeled appropriately. 
 Emergency Demolition - is any demolition or remedial action under order of a state or local governmental agency. Such an order is generally issued
for a structurally unsound facility in danger of imminent collapse. 
 Emergency Renovation - is any renovation that was not planned and
results form a sudden unexpected event that results in unsafe conditions. Such events include, but are not limited to, renovations necessitated by non-routine failures of equipment, earthquake or fire damage. 
 Encapsulant - A material that surrounds or embeds asbestos fibers in an adhesive matrix, to prevent release of fibers. 
 Bridging Encapsulant: an encapsulant that forms a discrete layer on the surface of an in situ asbestos matrix. 
 Penetrating Encapsulant: an encapsulant that is absorbed by the in situ asbestos matrix without leaving a discrete surface layer.

 Removal Encapsulant: a penetrating encapsulant specifically designed for removal of asbestos-containing materials
rather that for in situ encapsulation. 
 Encapsulation - means the treatment of ACBM with a material that surrounds or embeds asbestos
fibers in an adhesive matrix to prevent the release of fibers, as the encapsulant creates a membrane over the surface (bridging encapsulant) or penetrates the material and binds its components together (penetrating encapsulant). 
 Enclosure - means the construction of an airtight, impermeable, permanent barrier around ACM to control the release of fibers into the air.

  

 

 

			
	 GLOSSARY
	 	APPENDIX A - 4
	 ARCO Plaza, Los Angeles, California
	 	

  

 Fiber release episode - means any uncontrolled or unintentional disturbance of ACM resulting in
visible emission. The two categories for the purpose of this Operations and Maintenance Manual are: 
 Major Release
Episode: large amounts of asbestos-containing material (greater than 3 linear or square feet) that has been disturbed accidentally with out proper work controls having been implemented. 
 Minor Release Episode: limited to three square for linear feet or less of asbestos-containing material that has been disturbed
accidentally without the use of proper Work Control Practices being implemented. 
 Filter - A media component used in respirators or air
handling machinery to remove solid or liquid particles from the air or water. 
 Friable Asbestos Material - Material that contains more
than 1.0% asbestos by weight or by area as determined by the procedure detailed in the Laboratory Methods of Analysis for Enforcement Samples manual or equivalent as approved; and that can be crumbled, pulverized, or reduced to powder by hand
pressure when dry. (See Definitions for Classifications of nonfriable material) 
 Functional Space - means a room, group of rooms,
buildings, or homogeneous area (including crawl spaces or space between a dropped ceiling and the floor or roof deck above), such as a cafeteria, gymnasium, hallway(s), designated by a person accredited to prepare management plans, design abatement
projects, or conduct response actions. 
 Glovebag - A sack (typically constructed of 6 mil transparent polyethylene or polyvinylchloride
plastic) with two inward projecting long sleeve gloves, which are designed to enclose an object from which an asbestos-containing material is to be removed. 
 HEPA Filter - is a High Efficiency Particulate Air (HEPA) filter capable of trapping and retaining at least 99.97 percent of monodispersed particles of 0.3 micrometer in diameter or larger.

 HEPA Filter Vacuum Collection Equipment (or vacuum cleaner) - High efficiency particulate air (absolute) filtered vacuum collection
equipment with a filter system capable of collecting and retaining monodispersed particles of 0.3 micrometers in diameter or larger. 
 Isolated Work Area - is the immediate enclosed containment area in which the asbestos abatement activity takes place. 
 Leak-Tight Container - is a dust-tight container, which encloses the asbestos-containing waste material and prevents solids or liquids from escaping or spilling out. Containers may include, but are not limited to, plastic bags, metal
drums, plastic-lined cardboard, sealed plastic sheeting around asbestos-containing waste material. 
  

 

 

			
	GLOSSARY	 	APPENDIX A - 5
	ARCO Plaza, Los Angeles, California	 	

  

 Homogeneous Area - an area of surfacing material thermal system insulation or miscellaneous
material that is uniform in color and texture. 
 Miscellaneous Material - means interior building material on structural components,
structural members or fixtures, such as floor and ceiling tiles, and does not include surfacing material or thermal system insulation. 
 Negative Pressure Respirator - A respirator in which the air pressure inside the respiratory-inlet covering is positive during exhalation in relation to the air pressure of the outside atmosphere and negative during inhalation in
relation to the air pressure of the outside atmosphere. 
 Negative Pressure Ventilation System - A local exhaust system, utilizing HEPA
filtration capable of maintaining a negative pressure inside the work area and a constant air flow from adjacent areas into the work area and exhausting that air outside the work area. 
 Negative Pressure - Air pressure lower than surrounding areas, generally caused by exhausting air from a sealed space (work area). 
 Operations and Maintenance Program - a program of work practices to maintain ACM in good condition, ensure clean up of asbestos fibers previously released, and prevent further release by minimizing
and controlling ACM disturbance or damage. 
 PCM - Phase Contrast Microscopy; this method is utilized for daily air monitoring or
personnel air monitoring due to its availability and quick turnaround time. The standard method is the NIOSH 7400 Method. PCM can not distinguish between asbestos fibers and non-asbestos fibers. The result is a total fiber count and not a total
asbestos fiber count. 
 Personal Monitoring - Sampling of the asbestos fiber concentrations within the breathing zone of an employee.
Usually performed with a PCM cassette. 
 Permissible Exposure Limit (PEL) - an term used in Federal OSHA standards to specify the
concentration of airborne asbestos to which an employee may be exposed; currently this standard is 0.10 fibers per cubic centimeter of air as an eight (8)-hour time-weighted average (TWA). 
 Planned Renovation - is a renovation operation, or a number of such operations, in which the amount of asbestos-containing material that will be
removed or stripped within a given period of time that can be predicted. Individual nonscheduled operations are included if a number of such operations involve routine maintenance work at an installation and can be predicted to occur during a given
period of time based on operating experience. 
 Potential Damage - means circumstances in which: 
  

	 	(1)	Friable ACM is in an area regularly used by building occupants, including maintenance personnel, in the course of their normal activities, and 

 

 

 

			
	GLOSSARY	 	APPENDIX A - 6
	ARCO Plaza, Los Angeles, California	 	

  

	 	(2)	There are indications that there is a reasonable likelihood that the material or its covering will become damaged, deteriorated, or delaminated due to factors such as
changes in building use, changes in operations and maintenance practices, changes in occupancy, or recurrent damage. 

 Potential Significant Damage - means circumstances in which: 
  

	 	(1)	Friable ACM - is in an area regularly used by building occupants, including maintenance personnel, in the course of their normal activities, 

 

	 	(2)	There are indications that there is a reasonable likelihood that the material or its covering will become significantly damaged, deteriorated, or delaminated due to
factors such as changes in building use, changes in operations and maintenance practices, changes in occupancy, or recurrent damage, and 

  

	 	(3)	The material is subject to major or continuing disturbance, due to factors including, but not limited to, accessibility. 

 Preventative Measures - means actions taken to reduce disturbance of ACM or otherwise eliminate the reasonable likelihood of the materials’s
becoming damaged or significantly damaged. 
 Project Site - The term “project site” is defined as the space available to
Contractor for performance of the work, either exclusively or in conjunction with others performing other work as part of the project. The extent of project site is shown on drawings, and may or may not be identical with the description of land upon
which the project is to be performed. 
 Protection Factor - The ratio of the ambient concentration of an airborne substance to the
concentration of the substance inside the respirator at the breathing zone of the wearer. The protection factor is a measure of the degree of protection provided by a respirator to the wearer. 
 Regulated Area - is an area established by the building owner to isolate areas where airborne concentrations of asbestos exceed, or can reasonably be
expected to exceed, the permissible exposure limit (PEL). The regulated area may take the form of: 1) a temporary enclosure, or 2) an area segregated in any manner that minimized the number of accessible to the hazard. 
 Removal - is the taking out of asbestos-containing material or asbestos covered facility components from any facility. 
 Renovation - is the altering, removing or stripping of one or more facility component, including, but not limited to the stripping or removal of
asbestos-containing material from facility components, retrofitting for fire protection, the installation or the removal of heating ventilation, air conditioning (HAC) system. Activity involving the wrecking of load-supporting members are excluded.

  

 

 

			
	GLOSSARY	 	APPENDIX A - 7
	ARCO Plaza, Los Angeles, California	 	

  

 Repair - means returning damaged ACM to an undamaged condition or to an intact state so as to
prevent fiber release. 
 Response Action - means a method including removal, encapsulation, enclosure, repair, operations and
maintenance, that protects human health and the environment from friable ACM. 
 Respirator - A device designed to protect the wearer
from the inhalation of harmful atmospheres. 
 Routine maintenance area - means an area, such as a boiler room or mechanical room, that
is not normally frequented by students and in which maintenance employees or contract workers regularly conduct maintenance activities. 
 Significantly damaged friable miscellaneous ACM - means damaged friable miscellaneous ACM where the damage is extensive and severe. 
 Significantly Damaged friable surfacing ACM - means damaged friable surfacing ACM in a functional space where the damage is extensive and severe. 
 Structural member - means any load-supporting member of a school building such as beams, and load- supporting walls, or any nonload-supporting member, such as ceilings and nonload-supporting walls.

 Surfacing ACM - means material in a building that is sprayed-on, troweled-on, or otherwise applied to surfaces, such as acoustical
plaster on ceilings and fireproofing materials on structural member, or other materials on surfaces for acoustical, fireproofing, or other purposes. 
 Surfactant - A chemical wetting agent added to water to improve penetration, thus reducing the quantity of water required for a given operation or area. 
 TEM - Transmission Electron Microscopy, this is the choice for all clearance (final) sampling. This method distinguishes asbestos fibers from other fibers. 
 Testing Laboratory - The term “testing laboratory” is defined as an independent entity engaged to perform specific inspections or tests of
the work, either at project site or elsewhere; and to report and (if required) interpret results of those inspections or tests. 
 Thermal
System Insulation - means material in a school building applied to pipes, fittings, boilers, breaching, tanks, ducts, or other interior structure components to prevent heat loss or gain, or water condensation, or for other purposes. 

Thermal System Insulation ACM - means thermal system insulation that is ACM. 
  

 

 

			
	GLOSSARY	 	APPENDIX A - 8
	ARCO Plaza, Los Angeles, California	 	

  

 Time Weighted Average (TWA) - The average concentration of a contaminant in air during a specific
time period. 
 Vibration - means the periodic motion of friable ACM which may result in the release of asbestos fibers. 
 Visible Emissions - Any emissions containing particulate asbestos material that are visually detectable without the aid of instruments. This does not
include condensed uncombined water vapor. 
 Wet Cleaning - The process of eliminating asbestos contamination from building surfaces and
objects by using cloths, mops, or other cleaning utensils which have been dampened with amended water or diluted removal encapsulant and afterwards thoroughly decontaminated or disposed of as asbestos contaminated waste. 
 Work Area - The area where asbestos related work or removal operations are performed which is defined and/or isolated to prevent the spread of
asbestos dust, fibers or debris, and entry by unauthorized personnel. Work area is a Regulated Area as defined by 29 CFR 1926.1101 
  

 

 

 Appendix B 
 Equipment List 

 

 

 EQUIPMENT FOR PERFORMING O&M ACTIVITIES 
 The following equipment is suggested to successfully implement the O&M Program. Though not all-inclusive, the list is sufficiently comprehensive to
achieve any reasonable goal of the program. 
 Obtaining all of these materials is not necessarily essential to the program’s success and
is certainly not a mandatory part of the O&M Program. Qualified Asbestos Coordinators can reference this section to determine the types of asbestos control equipment that are currently available on the market. Most asbestos equipment and
materials suppliers can provide catalogs on these items. 
 Materials 
 Air monitoring kit, sample cassettes 
 Airless encapsulant sprayer 
 Black polyethylene sheeting 
 DANGER labels/stickers 
 DANGER tape 
 Disposable clothing 
 Duct tape 
 Electrical extension cords 
 Encapsulant 
 Fiberglass disposal drum(s) - labelled 
 Fire extinguisher(s) 
 Glovebags 
 Gloves

 Half-mask negative pressure respirators and HEPA filters 
 HEPA-filtered vacuum bags 
 HEPA vacuum(s) 
 Labelled asbestos disposal bags 
 Ladders (folding and/or extension - 4’ to 28’) 
 Low and/or high volume pump(s) 
 Mop buckets, handles, wringers 
 Notification forms (EPA, OSHA) 
 Nylon brushes 
 OSHA asbestos DANGER signs 
 Polyethylene sheeting (6-mil / 16’ x 100’ or 20’ x 100’) 
 Polyvinyl chloride (PVC) piping 

 

 

			
	EQUIPMENT LIST	 	APPENDIX B - 2
	ARCO Plaza, Los Angeles, California	 	

  

 Materials cont... 
 Portable pump sprayers (for wetting ACM) 
 Powered air-purifying respirators and
filters 
 Rags 
 Rewettable towels 
 Shower towels 
 Spray adhesive glue 
 Surfactant (wetting agent) 
 ref:equiplst.b 
  

 

 

  
 Appendix C 

 Forms 
  

 

 

 SUBJECT: 
 PROJECT: Any and all work that involves asbestos containing material (ACM) in the 
 Dear
Contractor/Subcontractor: 
 This is notice to all trades who perform work in the subject building that this building has asbestos containing
                                         
                                       . The
                                         
                                       , being
asbestos-containing material (ACM), requires certain minimum protective practices and equipment be utilized anytime anyone is to work in the above stated area. 
 This document is meant only as notification and guidance for work that may impact the ACM. For a more definitive understanding of what is required, the contractor/subcontractor needs to review the
appropriate specification available from the building manager. 
 For any questions, please fee free to contact our office. 
 Respectfully, 
 I/we have read and understand the
above: 
 this                  day of
                            , 19        . 

For: 
 Contractor/Subcontractor
Signature 

 STATEMENT BY MEDICAL DOCTOR 
 I have performed a comprehensive medical examination of
                                , on
                                 which included, as a minimum, completion of the
OSHA Medical questionnaire, a chest roentgenogram (Posterior-Anterior 14 x 17 inches) classified according to the ILO-U/C Interpretation Form CSD/NIOSH (m) 2.8, a history to elicit symptomatology of respiratory disease, and pulmonary expiratory
volume at 1 second (FEV1.0). 
                                  is physically able to perform the work
and use the equipment (such as respiratory equipment) required in performing his/her work with no limitation. 
 The employer has provided
me with the following: 
  

	 	*	A copy of OSHA regulation standard 29 CFR, 1926.1101 and Appendices D, E, and F. 

  

	 	*	A description of the affected employee’s duties as they relate to the employer’s exposure. 

  

	 	*	The employee’s representative exposure level or anticipated exposure level. 

  

	 	*	A description of any personal protective and respiratory equipment used or to be used; and 

  

	 	*	Information from previous medical examinations of the affected employee that is not otherwise available to me. 

                                  has been informed of the examination and
of any medical conditions that may result from asbestos exposure. 
  

			
	
                                	  	
	  
   Signature of M.D.  
	  	                    Date

 O&M EMPLOYEE TRAINING RECORD 
 The following inventory of employees trained in accordance with Subpart E, section 763.92 to Title II of the Toxic Substances Control Act (TSCA) is provided
to document the ongoing employee training program. As required under the Operations and Maintenance Program, all new custodial and maintenance employees must receive “Awareness Training” (2 hours), “Additional Training” (14
hours) must be provided for employees who will disturb asbestos containing materials. 
 Asbestos Coordinator: Maintain this record under
Worker Training Records of the Operations and Maintenance Program. 
  

									
	 Employee Name
  
	 	 S.S. Number
  
	 	 Date Employed
  
	 	 2 hour trained
  
	 	 14 hour trained
  

	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 Maintain separate
copies of each individuals training record(s). This form is mean only as an inventory of trained personnel and does not constitute evidence of training. 

 FIBER RELEASE EPISODE REPORT 
 Building Location:
                                         
                Date: 
 Occurred On:
                                         
                        Reported On: 
 Measurement of Area Affected: 
 Description Of the Episode:

 Clean-up Procedures: 

 As reported, this episode is classified as a [    ] Major
[    ] Minor fiber release episode 
 Signature of Asbestos Coordinator: 
 Date: 

 VISUAL INSPECTION 
 The following schedule is provided to document the performance of visual inspections annually. Contract the Environmental Coordinator for each
re-inspection. 
  

					
	Re-Inspection Deadline	  	Date Executed	  	Verifying
Signature
	1
        /        / 2004	  	  	  	  
	2
        /        / 2005	  	  	  	  
	3
        /        / 2006	  	  	  	  
	4
        /        / 2007	  	  	  	  
	5
        /        / 2008	  	  	  	  
	6
        /        / 2009	  	  	  	  
	7
        /        / 2010	  	  	  	  

 This form is not a guarantee of successful completion of the re-inspection of the property and is only intended as a tool in achieving that goal
within the time frame allocated. All Survey Reports shall be maintained. 

 JOB REQUEST FORM FOR MAINTENANCE WORK 
 WHICH MAY AFFECT ASBESTOS-CONTAINING MATERIAL 
 NAME:
                                         
                                         
                                         
  DATE: 
 PHONE NO.:
                                         
                                         
          JOB REQUEST NO: 
  

	1.	Exact Location of Area Involved: 

 Building No: 
 Floor No:
                                         
                            Room No.: 
 Location within room: 
 Other: 
  

	2.	Requested starting date:
                                         
        Anticipated finish date: 

  

	3.	Description of Work: 

  

	4.	Description of any asbestos-containing material that might be affected, if know (include location and type: 

  

	5.	Name and telephone number of requestor: 

  

	6.	Name and telephone number of supervisor: 

 SUBMIT THIS APPLICATION TO: 
 (Asbestos Program
Manager) 
  

			
	 NOTE:      
	 	An application must be submitted for all maintenance work
whether or not asbestos-containing material might be affected. An authorization must then be received before any work can proceed.

 [    ] Granted (Job Req. #:                     ) [    ] With Conditions*
[    ] Denied 
 *Conditions: 

 MEDICAL EXAMINATION AWARENESS RECORD 
 This is to inform you that according to the U.S. Department of Labor - Occupational Safety and Health Administration (OSHA) regulations (Title 29 CFR
1910.1001, J; Title 29 CFR 1926.58, Appendix D), your employer is required to provide or make available at no cost to you medical examinations relevant to your occupational exposure to asbestos any time you may be expose to concentrations at or
above the “action level” (0.01 f/cc) for more than thirty (30) days per year. This examination is offered for pre-placement, annual, or termination of employment. If you have had a medical examination within the past one (1) year
period, no examination is required. 
 Arrangements for the above referenced medical examination is available at no cost to you through your
employer. All examinations must be scheduled during your time, not during company hours. Please contact the physician listed below: 
 Please
complete the forms 29 CFR 1926.58, Appendix D which are attached and return these to your organization’s Respiratory Protection Manager: 
  

			
	 	  	  
 I,
                        , will accept to take the medical exam provided by my employer, at not cost to me.
  

	 	  	  
 I,
                        , decline the medical exam.
  

	 	  	  
 I,
                        , will make other arrangements at my own expense.
  

 Check appropriate box 
 Signature & Date: 
 Printed
Name:                                        
                                         
                                         
           S.S.#: 

 Work Approval Form # 
 PERMIT APPLICATION FOR 
 PERFORMING
ASBESTOS MAINTENANCE/RENOVATION WORK 
 1. Exact Location of Area Involved: 
 Building No: 
 Floor No:
                                         
    Room No. 
 Location within room: 
 Other: 
 2. Description
of Work Involved: 

			
	     [    ]    Routine	 	[    ]    Small scale, short duration
	     [    ]    Routine maintenance	 	[    ]    Emergency response
	     [    ]    Glove Bagging	 	
	     [    ]    Other	 	
	     [    ]    Mini-enclosure	 	
	     [    ]    Other enclosure	 	
	     [    ]    Encapsulation	 	
	     [    ]    Specific removal	 	
	     [    ]    Other	 	

 3. Starting
Date:                             Anticipated Comp. Date: 
 4. Approximate Amount of Asbestos Present: 

					
	     Linear
feet                    	 	Square Feet                    	 	Size of tank:

 5. Airborne Asbestos Control
Methods To Be Used 

					
	     [    ] Glove Bag	 	[    ] HEPA vacuum	 	[    ] Wet Methods
	     [    ] Other	 		 	

 6. Protective Equipment To Be Used 

							
	     [    ] Respirator	 	[    ] Coveralls	 	[    ] Negative Air	 	[    ] Polyethylene
	     [    ] Other	 		 		 	

 7. Supervisor: Name: 
                     Telephone Number/Extension: 
  

			
	 To Be Filled Out By Asbestos Program Manager

	Permit	 	[    ] Accepted
             [    ] Rejected
	Signed:	 	Print:
	Permit No.:	 	Emergency Contact
	Please Return This Form To:	 	 

 PERIODIC MEDICAL QUESTIONNAIRE 
  

	1.	Name: 

  

	2.	Social Security No:
                                        
                                        
 -                          -            
                  

  

	3.	Home Address: 

  

	4.	Present Occupation: 

  

	5.	Department: 

  

	6.	Work Address: 

  

	7.	                                       
                                         
                                  Zip Code: 

  

	8.	Telephone No.: 

  

	9.	Interviewer: 

  

	10.	Date: 

  

	11.	What is your marital status? 

	    	[    ] Single        [    ]
Married        [    ] Widowed        [    ] Separated/Divorced 

  

	12A.	In the past year, did you work full time (30 hours per week or more for 6 months or more)?    [    ]
Yes        [    ] No 

  

	  	lf Yes to 12A: 

  

	12B.	In the past year did you work in any dusty job?    [    ]
Yes        [    ] No 

  

	12C.	Was the dust exposure:    [    ] Mild        [    ]
Moderate        [    ] Severe 

  

	12D.	In the past year, were you exposed to any hazardous substances in your work?    [    ]
Yes        [    ] No 

  

	12E.	Was the exposure:    [    ] Mild         [    ]
Moderate        [    ] Severe 

	12F.	In the past year, what was your 

 Job Occupation: 
 Position/Job Title: 
  

	13.	RECENT MEDICAL HISTORY 

  

	13A.	Do you consider yourself to be in good medical health?    [    ]
Yes        [    ] No 

 If No,
please state reason: 
  

	13B.	In the past year, have you developed: 

							
	 	 	  Yes  	 	  No  	 	Further Comments
	 Epilepsy
	 	 	 	 	 	 
	 Rheumatic Fever
	 		 		 	 
	 Kidney
disease
	 	 	 	 	 	 
	 Bladder
disease
	 	 	 	 	 	 
	 Diabetes
	 	 	 	 	 	 
	 Jaundice
	 	 	 	 	 	 
	 Cancer
	 	 	 	 	 	 

  

	14.	CHEST COLD AND ILLNESSES 

  

	14A.	If you get a cold, does it usually go into your chest? 

	    	        [    ] Yes        [    ]
No        [    ] I don’t get colds 

  

	15A.	During the past 3 years, have you had any chest illnesses that have kept you off work, indoors at home or in bed? 

	              [    ]	Yes        [    ] No 

  

	    	If Yes to 15A 

  

	15B.	Did you produce phlegm with any of these chest illnesses? 

	            [    ]	Yes        [    ] No         [    ] Does not
apply 

  

	15C.	In the past year, how many such illnesses with increased phlegm did you have which lasted a week or more? 

	    	[    ] Yes (Number of
illnesses                )        [    ] No such illnesses 

	16.	RESPIRATORY SYSTEM  

  

	16A.	In the past year, have you had: 

							
	 	 	  Yes  	 	  No  	 	Further Comments
	 Asthma
	 	 	 	 	 	 
	 Bronchitis
	 		 		 	 
	 Hay fever

	 	 	 	 	 	 
	 Other
allergies
	 	 	 	 	 	 
	 Pneumonia

	 	 	 	 	 	 
	 Tuberculosis
	 	 	 	 	 	 
	 Chest
surgery
	 	 	 	 	 	 
	 Other lung
problems
	 	 	 	 	 	 
	 Heart disease
	 	 	 	 	 	 

  

	16B.	Do you have: 

							
	 	 	  Yes  	 	  No  	 	Further Comments
	 Frequent colds
	 	 	 	 	 	 
	 Chronic cough
	 		 		 	 
	 Shortness of breath when climbing one flight of stairs
	 	 	 	 	 	 

  

	16C.	Do you: 

							
	 	 	  Yes  	 	  No  	 	Further Comments
	 Wheeze
	 	 	 	 	 	 
	 Cough up phlegm
	 		 		 	 
	 Smoke cigarettes
	 	 	 	 	 	 

	16D.	If you smoke cigarettes, please indicate how many packs per day: 

  

	  	                     Number of packs

  

	  	                     How many years

 Signature: 
 Date: 
 Note: Authority cited: Sections 142.3, 9020, 9030 and 9040, Labor code. Reference: Sections 142.3, 9004.(b), 9006,
9009, 9020, 9030, and 9040, Labor Code 

 INITIAL MEDICAL QUESTIONNAIRE 
  

	1.	Name:  

  

	2.	Social Security No.:
                             -        
            - 

  

	3.	Home Address:  

  

	4.	Present Occupation:  

  

	5.	Department: 

  

	6.	Work Address:  

  

	7.	                                       
                              Zip Code:  

  

	8.	Telephone Number:  

  

	9.	Interviewer: 

  

	10.	Date: 

  

	11.	Date of Birth:  

  

	12.	Place of Birth:  

  

	13.	Sex:                [    ]    Male              
      [    ]    Female 

  

	14.	What is your marital status? 

	  	[    ] Single                 [    ]
Married              [    ] Widowed                [    ]
Separated/Divorced 

  

									
	 15.         Race:
	 	[    ] White	 	[    ] Black	 	[    ] Asian	 	
		 	[    ] Hispanic	 	[    ] Indian	 	[    ] Other	 	

  

	16.	What is the highest grade completed in school? 

	 	(For example: 12 years for the completion of high school) 

	17A.	Have you ever worked full time (30 hours per week or more for 6 months or more)? 

	    	[    ]
Yes                    [    ] No 

  

	17B.	Have you ever worked for a year or more in any dusty job? 

 [    ] Yes            [    ]
No            [    ] Doesn’t apply 
 Specific job/industry: 
 Total years worked: 
 Was dust exposure: [    ]
Mild            [    ] Moderate            [    ] Severe 
  

	17C.	Have you ever been exposed to any hazardous substances in your work? 

	    	[    ]
Yes                    [    ] No 

  

	17D.	What has been your usual occupation or job; the one you have worked the longest? 

 Job Occupation: 
 Number of years employed in this occupation: 
 Position/Job Title: 
 Business, field or industry: 
 (Record on lines the years in which you have worked in any of these industries. e.g. 1960-1969). 
  

	17E.	In a mine                     [    ]
Yes                    [    ] No 

  

	17F.	In a quarry?                    [    ]
Yes                  [    ] No 

  

	17G.	In a foundry?                    [    ]
Yes                    [    ] No 

  

	17H.	In a pottery?                    [    ]
Yes                    [    ] No 

  

	17I.	In a cotton, flax or hemp
mill?                    [    ]
Yes                    [    ] No 

  

	17J.	With asbestos?                    [    ]
Yes                    [    ] No 

	18.	PAST MEDICAL HISTORY 

  

	 	A.	Do you consider yourself to be in good medical health?    [ ] Yes    [ ] No 

 If No, please state reason 
  

	 	B.	Have you any defect of Vision?    [ ] Yes        [ ] No 

 If Yes, state nature of defect 
  

	 	C.	Have you a hearing defect?    [ ] Yes        [ ] No 

 If Yes, state nature of defect 

	 	D.	Are you suffering from or have you ever suffered from: 

 i)          Epilepsy (or fits, seizures, convulsions)?
                    [    ] Yes               
      [    ] No 
 ii)        Rheumatic fever?                     [    ]
Yes                     [    ] No 
 iii)        Kidney disease?
                    [    ]
Yes                     [    ] No 
 iv)        Bladder disease?
                  [    ]
Yes                     [    ] No 
 v)        Diabetes?
                              [    ]
Yes                     [    ] No 
 vi)        Jaundice?
                            [    ]
Yes                     [    ] No 
  

	19.	CHEST COLDS AND ILLNESSES 

  

	 	A.	If you get a cold, does it usually go into your chest? 

 [    ] Yes         [    ] No
        [    ] I don’t get colds 
  

	 	B.	During the past 3 years, have you had any chest illnesses that have kept you off work, indoors at home or in bed? 

 [    ]
Yes            [    ] No 
  

	 	C.	If Yes to B: 

 i)     Did you produce phlegm with any of these chest illnesses?     
         [    ]Yes                [    ] No 
 ii)    In the past 3 years, how many such illnesses with increase phlegm did you have which lasted a week
or more? 
         Number of
illnesses                     [    ] No such illnesses 
  

	20.	Did you have any lung trouble before the age of 16?     [    ] Yes    [    ] No

  

	21.	Have you ever had any of the following? 

  

	 	1A.	Attacks of bronchitis?     [    ] Yes    [    ] No 

  

	 	1B.	If Yes to 1A: Was it confirmed by a doctor?     [    ]
Yes    [    ] No 

  

	 	1C.	At what age was your first attack? Age in
years                     [    ] Does not apply 

  

	 	2A.	Pneumonia (include bronco-pneumonia)?     [    ] Yes    [    ] No

  

	 	2B.	If Yes to 2A: Was it confirmed by a doctor?     [    ]
Yes    [    ] No 

	 	2C.	At what age did it start?    Age in years                 
[    ] Does not apply 

  

	 	3A.	Hayfever?    [    ] Yes        [    ] No

  

	 	3B.	If Yes to 3A: Was it confirmed by a doctor?    [    ]
Yes        [    ] No 

  

	 	3C.	At what age did it start?    Age in years                 
[    ] Does not apply 

  

	22A.	Have you ever had chronic bronchitis?    [    ] Yes        [    ]
No 

 If Yes to 22A: 
  

	 	B.	Do you still have it?    [    ] Yes        [    ]
No        [    ] Does not apply 

  

	 	C.	Was it confirmed by a doctor?    [    ] Yes        [    ] No 

  

	 	D.	At what age did it start?    Age in years                 
[    ] Does not apply 

  

	23A.	Have you ever had emphysema?    [    ] Yes        [    ] No

 If Yes to 23A: 
  

	 	B.	Do you still have it?    [    ] Yes        [    ]
No        [    ] Does not apply 

  

	 	C.	Was it confirmed by a doctor?    [    ] Yes        [    ] No

  

	 	D.	At what age did it start?    Age in years                 
[    ] Does not apply 

  

	24A.	Have you ever had asthma?    [    ] Yes        [    ] No

 If Yes to 24A: 
  

	 	B.	Do you still have it?    [    ] Yes        [    ]
No        [    ] Does not apply 

  

	 	C.	Was it confirmed by a doctor?    [    ] Yes        [    ] No

  

	 	D.	At what age did it start?    Age in years                 
[    ] Does not apply 

  

	 	E.	If you no longer have it, at what age did it stop? 

 Age stopped                  [    ] Does not apply 
  

	25.	Have you ever had: 

  

	 	A.	Any other chest illness?    [    ] Yes        [    ] No

 If Yes, please specify 
  

	 	B.	Any chest operations?    [    ] Yes        [    ] No

 If Yes, please specify 
  

	 	C.	Any chest injuries?    [    ] Yes        [    ] No

 If Yes, please specify 
  

	26A.	Has a doctor ever told you that you have heart trouble?    [    ]
Yes        [    ] No 

 lf
Yes to 26A: 
  

	 	B.	Have you ever had treatment for heart trouble in the past 10 years?    [    ]
Yes        [    ] No 

  

	27A.	Has a doctor ever told you that you have high blood pressure?    [    ]
Yes        [    ] No 

  

	27B.	Have you had any treatment for high blood pressure (hypertension) in the past 10 years? 

  

	  	[    ] Yes        [    ]
No        [    ] Does not apply 

  

	28.	When did you last have your chest X-rayed?    Year 

  

	29.	Where did you have your chest X-rayed (if known)? 

  

	  	What was the outcome? 

 FAMILY
HISTORY 
  

	30.	Were either of your natural parents ever told by a doctor that they had a chronic lung condition such as: 

  

													
	  	  	Father	  	Mother
	  	  	Yes	  	No	  	Unknown	  	Yes	  	No	  	Unknown
	A. Chronic bronchitis	  	  	  	  	  	  	  	  	  	  	  	  
	B. Emphysema	  	  	  	  	  	  	  	  	  	  	  	  
	C. Asthma	  	  	  	  	  	  	  	  	  	  	  	  
	D. Lung Cancer	  	  	  	  	  	  	  	  	  	  	  	  
	E. Other chest conditions	  	  	  	  	  	  	  	  	  	  	  	  
	F. Is parent currently alive	  	  	  	  	  	  	  	  	  	  	  	  

	30G.	Please specify
(parents)            Father            Mother 

 Age if
living:                             
 Age at
death:                             
 Unknown:                                  
  

	30H.	Please specify cause of death: 

  

	    	Father 

	    	Mother 

 COUGH 

 

	31A.	Do you usually have a cough?     [    ] Yes     [    ] No

	    	(Count a cough with first smoke or on first going out of doors. Exclude clearing of throat). 

	    	If not, skip to question 31C. 

  

	31B.	Do you usually cough as much as 4 to 6 times a day or more days out of the week? 

	    	[    ]
Yes                        [    ] No 

  

	31C.	Do you usually cough at all on getting up or first thing in the morning? 

	    	[    ]
Yes                        [    ] No 

  

	31D.	Do you usually cough at all during the rest of the day or night? 

	    	[    ]
Yes                        [    ] No 

 If Yes to any of the above (31A, B, C, or D), please answer the following. If no to all, check “Does not apply”, and skip to the next page
(WHEEZING). 
  

	31E.	Do you usually cough like this on most days for 3 consecutive months or more during the year? 

	    	[    ] Yes        [    ]
No            [    ] Does not apply 

  

	31F.	For how many years have you had the cough?
                                        
years 

  

	32A.	Do you usually bring up phlegm from your chest?     [    ] Yes     [    ] No

	    	(Count phlegm with the first smoke or on first going out of doors. Exclude phlegm from the nose. Count swallowed phlegm.) (If No, skip to 32C)

  

	32B.	Do you usually bring up phlegm like this as much as twice a day, 4 of more days out of the week? 

	    	[    ] Yes        [    ] No 

  

	32C.	Do you usually bring up phlegm at all on getting up or first thing in the morning? 

	    	[    ] Yes        [    ] No 

	32D.	Do you usually bring up phlegm at all during the rest of the day or at night? 

	    	[    ] Yes        [    ] No 

 If Yes to any of the above (32A, B, C or D), answer 32 E and 32F. If no to all, check “Does not apply” and skip to 33A. 

 

	32E.	Do you bring up phlegm like this on most days for 3 consecutive months or more during the year? 

	    	[    ] Yes        [    ]
No        [    ] Does not apply 

  

	32F.	For how many years have you had trouble with phlegm?                 
years. 

 EPISODES OF COUGH AND PHLEGM 
  

	33A.	Have you had episodes of (increased*) cough and phlegm lasting for 3 weeks or more each year? 

  

	    	* For persons who usually have cough and/or phlegm 

	    	[    ] Yes        [    ] No 

  

	    	lf Yes to 33A: 

  

	33B.	For how long have you had at least 1 such episode per year? 

	    	             Number of episodes 

 WHEEZING 
  

	34A.	Does your chest ever sound wheezy or whistling? 

  

	    	When you have a cold?                 [    ]
Yes         [    ] No 

  

	    	Occasionally apart from colds?    [    ] Yes         [    ]
No 

  

	    	Most days or
nights?                                [    ]
Yes            [    ] No 

  

	    	If Yes to 34A: 

  

	34B.	For how many years has this been present? 

	    	             Number of
years                [    ] Does not apply 

  

	35A.	Have you ever had an attack of wheezing that has made you feel short of breath? 

	    	[    ] Yes        [    ] No 

  

	    	If Yes to 35A: 

  

	35B.	How old were you when you had your first such attack?              Years

  

	35C.	Have you had two or more of such episodes?    [    ]
Yes        [    ] No 

	35D.	Have you ever required medicine or treatment for the(se) attack(s)? 

	    	[    ] Yes        [    ] No 

 BREATHLESSNESS 
  

	36.	If disabled from walking by any condition other than heart or lung disease, please describe and proceed to question 38A. 

  

	    	Nature of conditions: 

  

	37A.	Are you troubled by shortness of breath when hurrying on the level or walking up a slight hill?    [    ]
Yes        [    ] No 

  

	    	In Yes to 37A: 

  

	37B.	Do you have to walk slower than people of your age on the level because of breathlessness?    [    ]
Yes        [    ] No 

  

	37C.	Do you ever have to stop for breath when walking at your own pace on the level?    [    ]
Yes        [    ] No 

  

	37D.	Do you ever have to stop for breath after walking about 100 yards (or after a few minutes) on the level? 

	    	[    ] Yes        [    ] No 

  

	37E.	Are you too breathless to leave the house or breathless on dressing or climbing one flight of stairs?    [    ]
Yes        [    ] No 

 TOBACCO SMOKING 

 

	38A.	Have you ever smoked cigarettes? (No means less than 20 packs of cigarettes or 12 oz. of tobacco in a lifetime or less than 1 cigarette a day for one
year).    [    ] Yes        [    ] No 

  

	    	lf Yes to 38A: 

  

	38B.	Do you now smoke cigarettes (as of one month ago)?    [    ]
Yes        [    ] No 

  

	38C.	How old were you when you first started regular cigarette smoking?              Age in
years                [    ] Does not apply 

  

	38D.	If you have stopped smoking cigarettes completely, how old were you when you stopped? 

	    	             Age stopped        [    ]
Check if still smoking    [    ] Does not apply 

	38E.	How many cigarettes do you smoke per day now?                  Cigarettes per
day 

  

	38F.	On the average of the entire time you smoked, how many cigarettes did you smoke per day? 

	    	                     Cigarettes per day
                 [    ] Does not apply 

  

	38G.	Do you or did you inhale the cigarette smoke? 

	    	[    ] Does not apply                     
[    ] Not at all                     [    ] Slightly 

	    	[    ]
Moderately                           [    ] Deeply 

  

	39A.	Have you ever smoked a pipe regularly? (Yes means more than 12 oz. of tobacco in a lifetime). [    ] Yes
             [    ] No 

  

	    	If yes to 39A: 

 FOR PERSONS
WHO HAVE EVER SMOKED A PIPE 
  

	39B.	How old were you when you started to smoke a pipe regularly? 

	    	                     Age 

  

	    	If you stopped smoking a pipe completely, how old were you when you stopped? 

	    	                     Age stopped
                 [    ] Check if still smoking pipe                 
[    ] Does not apply 

  

	39C.	On the average over the entire time you smoked a pipe, how much pipe tobacco did you smoke per week? 

	    	                     oz. per week. (a standard pouch of
tobacco contains 1.5 oz.) 

	    	[    ] Does not apply 

  

	39D.	How much pipe tobacco are you smoking now? 

	    	                     oz. per
week.                [    ] Not currently smoking a pipe 

  

	39E.	Do you or did you inhale the pipe smoke? 

	    	[    ] Does not apply                  [    ]
Not at all                  [    ] Slightly 

	    	[    ] Moderately                  [    ]
Deeply 

  

	40A.	Have you ever smoked cigars regularly? (Yes means more than 1 cigar per week for a year). 

	    	[    ] Yes                  [    ] No

 If Yes to 40A: 
 FOR PERSONS WHO HAVE EVER SMOKED CIGARS 
  

	40B.	How old were you when you started smoking cigars regularly?              Age

 If you have stopped smoking cigars completely, how old were you when you stopped? 
              Age
stopped        [    ] Check if still smoking cigars    [    ] Does not apply 
  

	40C.	On the average over the entire time you smoked cigars, how many cigars did you smoke per week? 

              Cigars per week [    ] Does not apply

  

	40D.	How many cigars are you smoking per week now? 

              Cigars per week [    ] Not currently smoking cigars 
  

	40E.	Do you or did you inhale the cigar smoke? 

 [    ] Never smoked        [    ] Not at
all            [    ] Slightly 
 [    ] Moderately            [    ] Deeply 
 Signature: 
 Date: 
 Note: Authority cited: Sections 142.3, 9020, and 9040, Labor Code. Reference: Sections 142.3, 9004(b), 9006, 9009, 9020, 9030, Labor Code. 

 REASSESSMENT OF ASBESTOS CONTAINING MATERIAL 
 Type of asbestos-containing material(s): 
 [    ]    Sprayed or troweled-on ceiling or walls 
 [    ]    Sprayed or troweled-on structural members 
 [    ]    Insulation on pipes, tanks or boilers 
 [    ]    Other - Describe: 
 Location of asbestos containing
materials: 
 Address                                      
                               Building No: 
                                        
                                         
Room No. (s):  
 General Description: 
 Abatement Status 
 [    ]    Encapsulated            [    ]    Enclosed       
     [    ]    Neither 
 Assessment

			
	Observation	 	Comments
	 Evidence of physical damage
	 	 
	 Evidence of water damage
	 	 
	 Evidence of delamination or other deterioration
	 	 
	 Degree
of accessibility of the material
	 	 
	 Location in an air plenum, air shaft, or air stream
	 	 
	 Other
observations (including the condition of the encapsulant or enclosure, if any)
	 	 

 ____________________________________                                 
                        
         (Evaluator)                             
                                         
  (Date) 

 PERIODIC AIR SAMPLING 
 The following schedule is provided to document the performance of periodic air sampling annually. Contact the Environmental Coordinator for each
re-inspection. 
  

					
	Re-Inspection Deadline	  	Date Executed	  	Verifying
Signature
	1
        /        / 2004	  	  	  	  
	2
        /        / 2005	  	  	  	  
	3
        /        / 2006	  	  	  	  
	4
        /        / 2007	  	  	  	  
	5
        /        / 2008	  	  	  	  
	6
        /        / 2009	  	  	  	  
	7
        /        / 2010	  	  	  	  

 This form is not a guarantee of successful completion of the re-inspection of the property and is only intended as a tool in achieving that goal
within the time frame allocated. All Survey Reports shall be maintained. 

 RESPIRATORY PROTECTION PROGRAM FORM 
 Building Name/Number: 
 Building Address/Location:

 This certification must be completed prior to initiating asbestos-related work in the above referenced building. 
 Based on Airborne fiber counts encountered on previous projects working on similar materials under similar conditions to those found on the above referenced
property, the following level of respiratory protection is proposed for the indicated operations to maintain an airborne fiber count (as measured by P&CAM 239 Method) below the specified permissible exposure limit (PEL) inside the respirator
facepiece. The recommended level of protection by EPA is at the statistical limit of detection using polarized light microscopy (0.01 fibers/cc). The OSHA “action level” is ten times higher (0.10 fibers/cc) using the same method.

 The accredited contractor’s qualified representative certifies that to the best of his knowledge and belief the above represents a true
and accurate representation of Airborne Fiber Counts to be expected for the operations indicated, and are based on verifiable fiber count data from past projects of similar scope. 
 Accredited Contractor: 
                          By:
                                         
                                         
                      Date: 
 Print Name and Title: 

 RESPIRATOR TRAINING RECORD 
  
 Project Name:
                                         
                                         
                                         
                                         
Job Number: 
 Employee’s Name:
                                         
                                         
                                         
                                  S. S. Number: 
 Your signature on this Respirator Training Record will attest to your having received and understood the basic respiratory training program which both CTL
Environmental services and the occupational Safety and Health Administration (OSHA) require as part of their Respiratory Protection Standard. 
 The basic respirator training program consists of the following items: 
  

	*	An explanation of the problems involved in misusing the respirator. 

  

	*	A discussion of why engineering controls could not be used effectively and as a result, respiratory protection equipment is required.

  

	*	How and why this particular respirator was chosen for this specific job. 

  

	*	The limitations of the respirator that has been selected. 

  

	*	How to put on the respirator and properly adjust the facepiece and tension straps. 

  

	*	How to wear the respirator 

  

	*	What the essential points of the care and maintenance program are. 

  

	*	How to recognize and handle emergencies. 

  

	*	How to inspect the respirator 

  

	*	When to use an Air Purifying Respirator. 

  

	*	When a Type C supplied-air respirator is required. 

  

	*	The purpose of the medical evaluation. 

  

	*	How CTL Environmental Services conducts a proper fit-test. 

  

	*	A Powered Air Purifying Respirator (PAPR) is available to you upon request, provided it meets the protection factor for the hazard involved.

 Employee’s Signature:
                                        
Date: 

 RESPIRATOR TEST SUMMARY 
 Name of Employee: 
 Social Security Number:
                                 
                 -                 
                 - 
 Test Date: 
 Conducted by: 
 Respirator selected:

 Manufacturer:
                                         
                                         
                               Model: 
 Respirator size:
                                     MSHA/NIOSH Approval No.:
TC-                  - 
 Type(s) of Test Conducted:

 Testing Agent(s) Used: 
 Signature
of Person Conducting Test: 

 Asbestos Work Activities Checklist 
 MINI-ENCLOSURE 
 Floor
No.:                                        
                                         
                        Date: 
 Location: 
 Personnel performing the work:  
 Project Authorization: 
 [                    ]        Signs posted: 
 [                    ]        Fixtures removed or covered: 
 [                    ]        Glove bag sealed: 
 [                    ]        Floor covering: 
 [                    ]        Smoke test performed: 
 [                    ]        Respirators: 
 [                    ]        Full body coveralls: 
 [                    ]        HEPA vacuums: 
 [                    ]        Disposal
bags:                    [    ]
Labeled:                    [    ] Sealed: 
 [                    ]        Waste Storage: 

[                    ]        Final clean-up: 
 Comments: 

 CERTIFICATE OF WORKER’S ACKNOWLEDGEMENT AND TRAINING 
 PROJECT
NAME:                                        
                              DATE: 
 PROJECT ADDRESS: 
 CONTRACTOR’S NAME:

 WORKING WITH ASBESTOS CAN BE DANGEROUS, INHALING ASBESTOS FIBERS HAS BEEN LINKED WITH VARIOUS TYPES OF CANCER. IF YOU SMOKE AND INHALE
ASBESTOS FIBERS, THE CHANCE THAT YOU WILL DEVELOP LUNG CANCER IS GREATER THAN THAT OF THE NON-SMOKING PUBLIC. 
 Your employer’s
contract with the Owner for the above project requires that: You be supplied with the proper respirator and be trained in it’s use; you be trained in safe work practices and in the use of the equipment found on the job; and you receive a
medical examination. These things are to have been done at no cost to you. By signing this certification, you are assuring the Owner that your employer has bet these obligations to you. 
 RESPIRATORY PROTECTION: I have been trained in the proper use of respirators and informed of the type of respirator to be used on the above referenced project. I have been equipped at no cost with
the respiratory equipment to be used on the above project. 
 TRAINING COURSE: I have been trained in the dangers inherent in handling
asbestos and breathing asbestos dust and in proper work practices. Information covered in the course included the following: 
 PHYSICAL CHARACTERISTICS OF ASBESTOS 
 HEALTH HAZARDS ASSOCIATED WITH ASBESTOS 
 RESPIRATORY PROTECTION 
 USE OF PROTECTIVE EQUIPMENT 
 NEGATIVE PRESSURE SYSTEMS 

WORK PRACTICES INCLUDING HANDS ON OR ON-JOB TRAINING 
 PERSONAL DECONTAMINATION PROCEDURES 
 AIR MONITORING, PERSONAL AND AREA

 MEDICAL EXAMINATION: I have had a medical examination within the past 12 months which was paid for by my employer. This
examination included: health history, pulmonary function tests and may have included an evaluation of a chest x-ray. 
 SIGNATURE:

 PRINTED NAME: 
 SOCIAL SECURITY NUMBER: 
 WITNESS: 

  
 Appendix D 

 Survey Report

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