Document:

SALE AND PURCHASE AGREEMENT

 

among

 

GRAMERCY INVESTMENT TRUST,

 

GRAMERCY INVESTMENT TRUST II,

 

GKK MANAGER LLC,

 

GRAMERCY LOAN SERVICES LLC,

 

GKK LIQUIDITY LLC,

 

CWCAPITAL INVESTMENTS LLC,

 

and, in each case solely for the purposes
of Articles IX and X hereof,

 

GRAMERCY CAPITAL CORP.,

 

and

 

CW FINANCIAL SERVICES LLC

 

Dated as of January 30, 2013

 

 

 

    	 

    	 

    

 

Table of Contents

 

	 	Page
	 	 
	ARTICLE I
	 
	Transactions at the Closing; Closing
	 	 
	Section 1.01 Transactions at the Closing	2
	Section 1.02 Purchase Price; Deposit	5
	Section 1.03 Closing Date	5
	Section 1.04 Transactions To Be Effected at the Closing	5
	Section 1.05 [RESERVED]	11
	Section 1.06 Related CDO Assets	11
	 	 
	ARTICLE II
	 
	Representations and Warranties Relating to Each Seller
	 	 
	Section 2.01 Organization, Standing and Power	12
	Section 2.02 Authority; Execution and Delivery; Enforceability	12
	Section 2.03 No Conflicts; Consents	12
	Section 2.04 Recitals	13
	 	 
	ARTICLE III
	 
	Representations and Warranties Relating to the Transferred Assets
	 	 
	Section 3.01 CDO Agreements	13
	Section 3.02 REO Holdcos	14
	Section 3.03 No Other Related CDO Assets	15
	Section 3.04 No Employees	15
	Section 3.05 Collateral Management	15
	Section 3.06 Servicing, Advancing and Related Matters	15
	Section 3.07 Taxes	17
	Section 3.08 Compliance with Laws	17
	Section 3.09 Proceedings; Judgments	17
	Section 3.10 Regulatory Matters	18
	Section 3.11 Full Disclosure	18
	Section 3.12 Absence of Certain Changes	18
	 	 
	ARTICLE IV
	 
	Representations and Warranties of Purchaser
	 	 
	Section 4.01 Organization, Standing and Power	19
	Section 4.02 Authority; Execution and Delivery; Enforceability	19
	Section 4.03 No Conflicts; Consents	19

 

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	Section 4.04 Availability of Funds	20
	Section 4.05 Confidentiality Agreement	20
	Section 4.06 Matters Relating to Collateral Management	20
	Section 4.07 Matters Relating to Servicing Arrangements	20
	Section 4.08 No Outstanding Information Requests	20
	 	 
	ARTICLE V
	 
	Covenants
	 	 
	Section 5.01 Covenants Relating to Pre-Closing Activities	20
	Section 5.02 Access to Information	21
	Section 5.03 Confidentiality	22
	Section 5.04 Reasonable Efforts	22
	Section 5.05 Expenses; Transfer Taxes	23
	Section 5.06 Brokers or Finders	23
	Section 5.07 Post-Closing Cooperation	24
	Section 5.08 Publicity	24
	Section 5.09 Records	25
	Section 5.10 Retained CDO Interests	25
	Section 5.11 Collateral Management	26
	Section 5.12 GKKM Employees	27
	Section 5.13 Competing Proposals	27
	Section 5.14 Pre-Closing Disclosure	27
	Section 5.15 Post-Closing Remittances	28
	Section 5.16 Further Assurances	28
	 	 
	ARTICLE VI
	 
	Conditions Precedent
	 	 
	Section 6.01 Conditions to Each Party’s Obligation	29
	Section 6.02 Conditions to Obligation of Purchaser	30
	Section 6.03 Conditions to Obligation of Sellers	30
	Section 6.04 Frustration of Closing Conditions	31
	 	 
	ARTICLE VII
	 
	Termination, Amendment and Waiver
	 	 
	Section 7.01 Termination	31
	Section 7.02 Effect of Termination	33
	Section 7.03 Amendments and Waivers	33
	 	 
	ARTICLE VIII
	 
	[RESERVED]

 

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	ARTICLE IX
	 
	Indemnification
	 	 
	Section 9.01 Indemnification by Seller Indemnifying Parties	33
	Section 9.02 Indemnification by Purchaser Indemnifying Parties	35
	Section 9.03 Calculation of Losses	36
	Section
9.04 Survival of Representations, Warranties, Covenants and Agreements; Termination of Indemnification	36
	Section 9.05 Procedures	36
	Section 9.06 No Additional Representations	38
	Section 9.07 Release from Escrow	39
	Section 9.08 Tax Treatment of Indemnity Payments	39
	 	 
	ARTICLE X
	 
	General Provisions
	 	 
	Section 10.01 Assignment	39
	Section 10.02 No Third-Party Beneficiaries	39
	Section 10.03 [RESERVED]	39
	Section 10.04 Notices	39
	Section 10.05 Interpretation; Exhibits and Schedules; Certain Definitions	41
	Section 10.06 Counterparts	46
	Section 10.07 Entire Agreement	47
	Section 10.08 Severability	47
	Section 10.09 Enforcement	47
	Section 10.10 Consent to Jurisdiction	47
	Section 10.11 GOVERNING LAW	48
	Section 10.12 WAIVER OF JURY TRIAL	48

 

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Schedules

 

	Schedule 1.01(a)	Assigned CDO Agreements
	Schedule 1.01(b)	Advancing Agent Appointment
	Schedule 1.01(h)(i)	CDO REO Holdco Interests
	Schedule 1.01(h)(ii)	Seller Minority REO Holdco Interests
	Schedule 1.04(a)	Sellers’ Closing Deliveries
	Schedule 2.03	Consents and Filings
	Schedule 3.01	CDO Agreements
	Schedule 3.02	REO Holdcos
	Schedule 3.03	Other Related CDO Assets
	Schedule 3.05	Collateral Management
	Schedule 3.06	Servicing, Advancing and Related Matters
	Schedule 3.09	Proceedings; Judgments
	Schedule 3.11	Disclosure of Certain Documents

 

Exhibits

 

	Exhibit A	Form of Sub-Special Servicing Termination Letter
	Exhibit B	Form of Amended and Restated CMA
	Exhibit C	Form of CDO Issuer 2007 First Waiver Letter
	Exhibit D	Form of CDO Issuer 2007 Direction Letter
	Exhibit E	Form of CDO Issuer 2007 First Consent Letter
	Exhibit F	Form of CDO Issuer 2007 Second Consent Letter
	Exhibit G	Form of CDO Issuer 2007 Second Waiver Letter
	Exhibit H	Form of CDO Issuer 2006 Direction Letter
	Exhibit I	Form of CDO Issuer 2006 Consent Letter
	Exhibit J	Form of CDO Issuer 2006 and CDO Issuer 2007 CMA Waiver Letter
	Exhibit K	Form of CDO Issuers Letter Agreement
	Exhibit L	Form of Servicing Subordination Agreement
	Exhibit M	Form of Supplemental Indenture
	Exhibit N	Knowledge

 

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Index of Defined Terms

 

	Accrued Servicing Fees	Section 1.01(c)
	Advancing Agent	Section 10.05(b)
	Advancing Agent Appointment Letter	Section 1.04(a)
	Advisers Act	Section 10.05(b)
	Affiliate	Section 10.05(b)
	Aggregate Threshold	Section 9.01(b)
	Agreement	Preamble
	Alternative REO Transfer Documents	Section 1.04(b)
	Alternative REO Vehicles	Section 1.04(b)
	Ancillary Agreements	Section 10.05(b)
	Amended and Restated CMA	Section 1.04(a)
	Assigned CDO Agreements	Section 1.01(a)
	Assignment and Assumption Agreements	Section 1.04(a)
	Assumed Liabilities	Section 1.01(e)
	Business Day	Section 10.05(b)
	Cap	Section 9.01(b)
	CDO Agreements	Section 3.01(a)
	CDO Co-Issuer 2005	Preamble
	CDO Co-Issuer 2006	Preamble
	CDO Co-Issuer 2007	Preamble
	CDO Co-Issuers	Preamble
	CDO Indentures	Section 3.01(a)
	CDO Issuer 2005	Preamble
	CDO Issuer 2006	Preamble
	CDO Issuer 2006 and CDO Issuer 2007	 
	CMA Waiver Letter	Schedule 1.04(a)
	CDO Issuer 2005 Consent Letter	Schedule 1.04(b)
	CDO Issuer 2006 Consent Letter	Schedule 1.04(a)
	CDO Issuer 2007	Preamble
	CDO Issuer 2007 First Waiver Letter	Schedule 1.04(a)
	CDO Issuer 2007 Second Waiver Letter	Schedule 1.04(a)
	CDO Issuer 2007 Waiver Letters	Schedule 1.04(a)
	CDO Issuer Assets	Section 10.05(b)
	CDO Issuer Consent	Section 1.04(a)
	CDO Issuers Letter Agreement	Schedule 1.04(a)
	CDO Issuers	Preamble
	CDO REO Holdco Interests	Section 1.01(h)
	Claim Threshold	Section 9.01(b)
	Closing	Section 1.03
	Closing Date	Section 1.03
	Code	Section 10.05(b)
	Collateral Management Fees	Section 1.01(a)
	Competing Proposal	Section 10.05(b)
	Confidentiality Agreement	Section 5.03
	Controlling Class Consent	Section 1.04(a)
	Consent	Section 2.03
	Contract	Section 2.03
	CWCAM	Section 1.04(a)
	CWCAM Special Servicing Agreement	Section 1.04(b)
	CWFS	Preamble
	Direct Claim	Section 9.05(c)
	Escrow Agent	Section 1.02(b)
	Escrow Agreement	Section 1.02(b)
	Escrowed Funds	Section 1.02(b)
	Existing Collateral Management Agreements	Section 3.01(a)
	Filing	Section 2.03
	Financing	Section 4.04
	Fundamental Representations	Section 10.05(b)
	GAAP	Section 10.05(b)
	GIT	Preamble
	GIT II	Preamble
	GKKL	Preamble
	GKKM	Premable
	GLS	Preamble
	Governmental Entity	Section 2.03
	GCC	Preamble
	Green Special Servicing Agreement	Section 10.05(b)
	Green Termination Agreement	Section 1.04(a)
	Hedge Counterparties	Section 10.05(b)
	Hedge Counterparty Consents	Section 1.04(a)
	including	Section 10.05(b)
	Indemnified Party	Section 9.05(a)
	Indemnifying Party	Section 9.05(a)
	Interest Advances	Section 10.05(b)
	Jameson Loan	Section 10.05(b)
	Jameson Proceedings	Section 10.05(b)
	Judgment	Section 10.05(b)
	Knowledge	Section 10.05(b)
	Law	Section 10.05(b)
	Lien	Section 10.05(b)
	Losses	Section 9.01(a)
	Majority of the Controlling Class	Section 10.05(b)
	Notes Valuation Report	Section 10.05(b)
	Organizational Documents	Section 10.05(b)
	Outside Date	Section 7.01(a)
	Outstanding GLS	 
	Servicing Advance Amount	Section 10.05(b)
	Outstanding GKKL	 
	Interest Advance Amount	Section 10.05(b)
	Outstanding GKKM Special	 
	Servicing Advance Amount	Section 10.05(b)
	Overall Cap	Section 9.01(b)
	Permitted Lien	Section 10.05(b)
	Person	Section 10.05(b)
	Proceeding	Section 10.05(b)
	Purchase Price	Section 1.02(a)
	Purchaser	Preamble
	Purchaser Indemnifying Parties	Preamble
	Purchaser Indemnitees	Section 9.01(a)
	QRS	Section 10.05(b)
	QRS Corp.	Preamble
	QRS II Corp	Preamble
	QRS S1 Corp	Preamble
	QRS Subsidiaries	Preamble
	Rating Agencies	Section 10.05(b)
	Rating Agency Confirmation	Section 1.04(a)
	Records	Section 5.09
	REIT	Section 3.07

 

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	Related CDO Assets	Section 1.06
	REO Holdcos	Section 3.02
	REO Property	Section 3.02
	Representative	Section 10.05(b)
	Restricted CDO Interests	Section 5.10(a)
	Retained Assets	Section 1.01(f)
	Retained CDO Interests	Section 10.05(b)
	Retained Liabilities	Section 1.01(f)
	Scheduled Advances	Section 3.06
	Scheduled GLS Servicing Advances	Section 3.06
	Scheduled GKKL Interest Advances	Section 3.06
	Scheduled GKKM Special Servicing Advances	Section 3.06
	SEC	Section 10.05(b)
	Secured CDO Notes	Section 10.05(b)
	Seller	Preamble
	Seller Indemnifying Parties	Preamble
	Seller Indemnitees	Section 9.02(a)
	Seller Minority REO Holdco Interests	Section 1.01(h)
	Servicing Advances	Section 10.05(b)
	Servicing Agreement	Section 10.05(b)
	Servicing Documents	Section 3.01(a)
	Servicing Subordination Agreement	Section 1.04(a)
	Situs	Section 1.04(a)
	Situs Special Servicing Termination Letter	Section 10.05(b)
	Special Servicer	Section 10.05(b)
	Special Servicing Agreement	Section 10.05(b)
	Sub-Special Servicing Agreement	Section 10.05(b)
	Sub-Special Servicing Termination Letter	Section 1.04(a)
	Subsidiary	Section 10.05(b)
	Supplemental Indenture	Section 1.04(b)
	Tax	Section 10.05(b)
	Tax Return	Section 10.05(b)
	Taxing Authority	Section 10.05(b)
	Third Party Claim	Section 9.05(a)
	Transactions	Section 1.02(a)
	Transferred Assets	Section 1.01(d)
	Trustee	Section 10.05(b)
	Unassigned Asset	Section 1.06
	Wells Fargo Indemnity Letter	Section 3.11(d)

 

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SALE AND PURCHASE AGREEMENT

 

SALE AND PURCHASE AGREEMENT
dated as of January 30, 2013 (this “Agreement”), among GRAMERCY INVESTMENT TRUST, a Maryland real estate investment
trust (“GIT”), GRAMERCY INVESTMENT TRUST II, a Maryland real estate investment trust (“GIT II”),
GKK MANAGER LLC, a Delaware limited liability company (“GKKM”), GRAMERCY LOAN SERVICES LLC, a Delaware limited
liability company (“GLS”) and GKK LIQUIDITY LLC, a Delaware limited liability company (“GKKL”;
and together with GIT, GIT II, GKKM and GLS, collectively, the “Sellers” and, individually, a “Seller”),
CWCAPITAL INVESTMENTS LLC, a Massachusetts limited liability company (“Purchaser”), and in each case solely
for the purposes of Articles IX and X hereof, Gramercy Capital Corp., a
Maryland corporation (“GCC”; and together with the Sellers, collectively, the “Seller Indemnifying
Parties” and, individually, a “Seller Indemnifying Party”), and CW FINANCIAL SERVICES LLC, a Massachusetts
limited liability company (“CWFS”; and together with Purchaser, collectively, the “Purchaser Indemnifying
Parties” and, individually, a “Purchaser Indemnifying Party”).

 

RECITALS

 

A.           GIT
owns (i) all the capital stock of Gramercy Investment QRS Corp., a Delaware corporation (“QRS Corp.”), and Gramercy
Investment QRS II Corp., a Delaware corporation (“QRS II Corp.”), (ii) all the limited liability company interests
of Gramercy Real Estate CDO 2005-1 LLC, a Delaware limited liability company (“CDO Co-Issuer 2005”), and Gramercy
Real Estate CDO 2006-1 LLC, a Delaware limited liability company (“CDO Co-Issuer 2006”), (iii) all the limited
liability company interests of GKKL, and (iv) directly and indirectly through certain of its Subsidiaries, a minority of the equity
interests in certain of the REO Holdcos (as defined herein).

 

B.           GIT
II owns (i) all the capital stock of Gramercy Investment QRS S1 Corp., a Delaware corporation (“QRS S1 Corp.”;
and together with QRS Corp. and QRS II Corp., the “QRS Subsidiaries”), and (ii) all the limited liability company
interests of Gramercy Real Estate CDO 2007-1 LLC, a Delaware limited liability company (“CDO Co-Issuer 2007”;
and together with CDO Co-Issuer 2005 and CDO Co-Issuer 2006, the “CDO Co-Issuers”).

 

C.           QRS
Corp. owns all the ordinary and preferred shares of Gramercy Real Estate CDO 2005-1 Ltd., a Cayman Islands company (“CDO
Issuer 2005”), QRS II Corp. owns all the ordinary and preferred shares of Gramercy Real Estate CDO 2006-1 Ltd., a Cayman
Islands company (“CDO Issuer 2006”), and QRS S1 Corp. owns all the ordinary and preferred shares of Gramercy
Real Estate CDO 2007-1 Ltd., a Cayman Islands company (“CDO Issuer 2007”; and together with CDO Issuer 2005
and CDO Issuer 2006, the “CDO Issuers”).

 

D.           GIT
and GIT II own all the limited liability company interests of GKKM, which (i) provides collateral management services to the CDO
Issuers, (ii) has certain rights pursuant to the CDO Agreements (as defined herein) to remove or control the removal of the Special
Servicer (as defined herein) and to appoint a new special servicer for certain of the CDO Issuer Assets, and (iii) holds as nominee
on behalf of the CDO Issuers all or a majority of the equity interests in certain of the REO Holdcos.

 

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E.           GLS,
GKKL and GKKM have made the Scheduled Advances (as defined herein), GLS is entitled (i) to repayment or reimbursement of the Outstanding
GLS Servicing Advance Amount (as defined herein) in accordance with the CDO Agreements and (ii) to receive the Accrued Servicing
Fees (as defined herein) pursuant to the Sub-Special Servicing Agreement (as defined herein), GKKL is entitled to repayment or
reimbursement of the Outstanding GKKL Interest Advance Amount (as defined herein) and GKKM is entitled to repayment or reimbursement
of the Outstanding GKKM Special Servicing Advance Amount (as defined herein) in accordance with the CDO Agreements.

 

F.           GIT
and certain of its Affiliates hold the Related CDO Assets (as defined herein) on behalf of the CDO Issuers.

 

G.           The
Sellers desire to sell, transfer and assign to Purchaser, and Purchaser desires to purchase, accept and assume, all the Sellers’
rights and obligations in respect of the Transferred Assets (as defined herein), upon the terms and subject to the conditions set
forth in this Agreement.

 

Accordingly, intending
to be legally bound, the parties hereby agree as follows:

 

ARTICLE I

 

Transactions at the Closing; Closing

 

Section
1.01 Transactions at the Closing. On the terms and subject to the conditions hereof,
at the Closing:

 

(a)          Assigned
CDO Agreements. GKKM shall sell, assign, transfer and deliver to Purchaser, and Purchaser shall purchase, accept and assume
from GKKM, all rights of GKKM as the collateral manager pursuant to each of the Existing Collateral Management Agreements and the
other CDO Agreements identified on Schedule 1.01(a) (collectively, the “Assigned CDO Agreements”) free
and clear of Liens (other than Permitted Liens), including all rights of GKKM, as collateral manager, under the Assigned CDO Agreements
to (i) receive all collateral management fees and other amounts payable to GKKM pursuant to the Assigned CDO Agreements (“Collateral
Management Fees”) and (ii) remove and appoint special servicers for the CDO Issuer Assets; it being understood and agreed
that such assignment and assumption does not transfer any rights to Purchaser to receive the Outstanding GKKM Special Servicing
Advance Amount.

 

(b)          Advancing
Agent Appointment. GKKL shall resign as Advancing Agent (and such resignation shall be effective) under each CDO Indenture
(as defined herein) in accordance with the terms thereof, and the Sellers shall (i) use all reasonable efforts to cause the CDO
Issuers and CDO Co-Issuers to appoint Purchaser as Advancing Agent and (ii) cause the Majority of the Preferred Shares (as defined
under the CDO Indentures) to approve the appointment of Purchaser as Advancing Agent pursuant to the CDO Indentures, and Purchaser
shall accept the appointment of Purchaser, as Advancing Agent pursuant to each of the CDO Indentures, for the purposes of each
of the CDO Agreements identified on Schedule 1.01(b); it being understood and agreed that such resignation of GKKL and appointment
of Purchaser hereunder does not transfer any rights to Purchaser to receive the Outstanding GKKL Interest Advance Amount.

 

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(c)          Accrued
Servicing Fees. GLS shall sell, assign, transfer and deliver to Purchaser, and Purchaser shall purchase, accept and assume
from the GLS, all rights of GLS to receive accrued and unpaid servicing fees and other compensation (including all Special Servicing
Fees, Liquidation Fees and Workout Fees, each term as defined under the Sub-Special Servicing Agreement and the Special Servicing
Agreement) and all other servicing, liquidation and workout fees payable to GLS under the CDO Agreements which GLS or any of its
Affiliates is entitled to receive under the Sub-Special Servicing Agreement and any related Servicing Document, to the extent such
fees and compensation are accrued and unpaid as of the Closing Date (collectively, the “Accrued Servicing Fees”)
free and clear of Liens (other than Permitted Liens); it being understood and agreed that the Accrued Servicing Fees do not include
any rights to receive any Collateral Management Fees or the Outstanding GLS Servicing Advance Amount.

 

(d)          Other
Transferred Assets. Each of GKKM, GKKL and GLS shall assign, transfer and deliver to Purchaser, and Purchaser shall purchase,
accept and assume from each of them, any and all defenses, counterclaims or set-off rights that would have been available to any
of them if any claim had been asserted against any of them to the extent relating solely to any of the Assumed Liabilities. The
foregoing rights described in this Section 1.01(d), together with the Assigned CDO Agreements and the Accrued Servicing
Fees, but excluding the Retained Assets, are referred to in this Agreement as the “Transferred Assets”. Notwithstanding
anything to the contrary contained in this Agreement, none of the Sellers and their respective Affiliates shall sell, assign, transfer
and deliver to Purchaser, and Purchaser shall not purchase or accept, nor shall the Transferred Assets include, any of the Retained
Assets.

 

(e)          Assumed
Liabilities. Purchaser shall assume, and thereafter pay, perform and discharge when due, and the Sellers shall assign and shall
not thereafter have any responsibility for, (i) all the liabilities and obligations of the Sellers arising out of the Transferred
Assets to the extent such liabilities or obligations arise in respect of the management of the CDO Issuers or servicing of the
CDO Issuer Assets under the terms of the Assigned CDO Agreements after the Closing, and (ii) all liabilities and obligations of
the collateral manager arising under the terms of the Assigned CDO Agreements to the extent (and only to the extent) that such
liabilities or obligations arise in respect of the management of the CDO Issuers or servicing of the CDO Issuer Assets after the
Closing; provided, that, for the avoidance of doubt, Assumed Liabilities shall not include (x) any liabilities, obligations
or covenants of the Sellers under this Agreement (including Section 1.04 (Transactions to be Effected at the Closing) and
Section 1.06 (Related CDO Assets)), and (y) any liabilities, obligations or covenants of Sellers in connection with the
Jameson Proceedings, any Wells Fargo Indemnity Letter or the matters disclosed in Schedules 3.01(c) and 3.01(d) whether
arising before, on or after the Closing Date (collectively, the “Assumed Liabilities”).

 

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(f)          Retained
Assets; Retained Liabilities. Notwithstanding anything to the contrary contained in this Agreement, (i) the Sellers shall not
sell, assign or transfer, and Purchaser shall not purchase or acquire, (A) the Retained CDO Interests, (B) the Outstanding GLS
Servicing Advance Amount, (C) the Outstanding GKKL Interest Advance Amount, (D) the Outstanding GKKM Special Servicing Advance
Amount, and (E) any and all defenses, counterclaims or set-off rights of any of the Sellers, any of their respective Affiliates,
or any of their respective officers, directors or Representatives, to the extent relating solely to any of the Retained Liabilities
(the shares, interests and other assets described in clauses (A) through (E), collectively, the “Retained Assets”)
and (ii) the Sellers shall retain responsibility for, and Purchaser shall not assume and shall not be responsible to pay, perform
or discharge, any liabilities or obligations of the Sellers or any of their Affiliates of any kind or nature whatsoever other than
the Assumed Liabilities (collectively, the “Retained Liabilities”). Without limiting the generality of the foregoing,
the Retained Liabilities shall include, but not be limited to, (w) any liability for Taxes relating to or arising out of the Transferred
Assets that are attributable to any taxable period ending on or prior to the Closing Date or, with respect to any taxable period
that begins prior to and ends after the Closing Date, the portion of such period ending on the Closing Date, (x) any liabilities
and obligations of the Sellers or any of their Affiliates arising out of the CDO Agreements, the Transferred Assets or the CDO
Issuer Assets, to the extent such liabilities or obligations arise in respect of or relate to the management of the CDO Issuers
or servicing of the CDO Issuer Assets prior to the Closing Date, (y) any liabilities, obligations or covenants of Sellers in connection
with the Jameson Proceedings, any Wells Fargo Indemnity Letter and the matters disclosed in Schedules 3.01(c) and 3.01(d)
whether arising before, on or after the Closing Date, and (z) any liabilities and obligations of the Sellers or any of their Affiliates
related to or arising out of the Retained Assets whether arising before, on or after the Closing Date.

 

(g)          Supplemental
Indentures. Immediately following the completion of the foregoing transactions contemplated by this Section 1.01, Purchaser
shall in its capacity as the Advancing Agent, and the parties hereto shall use all reasonable efforts to cause the other Persons
that will be parties to each Supplemental Indenture (as defined herein), including the Trustee, to, execute and deliver each Supplemental
Indenture at the Closing.

 

(h)          REO
Holdcos. Immediately following the execution and delivery of the Supplemental Indentures, the Sellers shall assign, transfer
and deliver (or cause the assignment, transfer and delivery) to each of the CDO Issuers or the Alternative REO Vehicles (as defined
herein), as the case may be, and Purchaser shall, in compliance with its applicable obligations under the Amended and Restated
CMAs and CDO Agreements, use reasonable efforts to cause each of the CDO Issuers or the Alternative REO Vehicles, as the case may
be, to accept and assume from the Sellers, for no additional consideration, (i) the outstanding equity interests of each of the
REO Holdcos held of record by GKKM as nominee for the benefit of the applicable CDO Issuer as of the Closing Date (collectively,
the “CDO REO Holdco Interests”), such interests consisting, as of the date hereof, of those equity interests
identified on Schedule 1.01(h)(i) and (ii) if and to the extent required in accordance with Section 5.10(b) (Retained
CDO Interests) and permitted by the relevant CDO Indenture (as amended by the applicable Supplemental Indenture), the outstanding
voting equity interests (excluding, to the extent agreed by the parties hereto, the rights to receive cashflows thereon) of each
of the REO Holdcos held of record by GIT or any of its Affiliates for its own benefit as of the Closing Date (the “Seller
Minority REO Holdco Interests”), such interests consisting, as of the date hereof, of those equity interests identified
on Schedule 1.01(h)(ii).

 

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Section
1.02 Purchase Price; Deposit. (a) The aggregate consideration payable by Purchaser
for the Transferred Assets shall consist of the sum of (i) $9,900,000, less (ii) any Accrued Servicing Fees to which GLS
or any of its Affiliates is entitled to receive under the Sub-Special Servicing Agreement that are paid to GLS or such Affiliate
after November 19, 2012 and prior to the Closing Date (such sum, the “Purchase Price”); it being understood
and agreed that the Sellers will retain all Collateral Management Fees collected by any Seller or its Affiliates prior to Closing.
The Purchase Price shall be payable as set forth below in Section 1.04 (Transactions To Be Effected at the Closing). The
transactions contemplated by this Agreement and the Ancillary Agreements are referred to herein as the “Transactions”.

 

(b)          Concurrently
with the execution and delivery by the parties of this Agreement, Purchaser and the Sellers shall enter into an escrow agreement
(the “Escrow Agreement”) with U.S. Bank National Association, as escrow agent (the “Escrow Agent”).
If U.S. Bank National Association is unwilling to serve as Escrow Agent, Purchaser and the Sellers shall agree on another Person
to serve as Escrow Agent, which Person shall not be an Affiliate of Purchaser or the Sellers. Purchaser shall deliver to the Escrow
Agent concurrently with the execution and delivery of the Escrow Agreement, cash in the amount of $990,000 (the “Escrowed
Funds”), to be held, applied and disbursed by the Escrow Agent in accordance with the Escrow Agreement and the relevant
provisions of this Agreement. At the Closing, the Escrowed Funds shall be applied to the Purchase Price in accordance with the
applicable provisions of this Agreement (including Section 9.07 (Release from Escrow)).

 

Section
1.03 Closing Date. The closing of the Transactions (the “Closing”)
shall take place at the offices of Sidley Austin llp, 787 Seventh Avenue, New York,
New York 10019, at 10:00 a.m. on the second Business Day following the date on which each of the conditions set forth in Article
VI is satisfied or waived by the party entitled to waive such condition (except for any conditions that by their nature can
only be satisfied on the Closing Date, but subject to the satisfaction of such conditions or waiver by the party entitled to waive
such conditions). The date on which the Closing occurs is referred to herein as the “Closing Date”.

 

Section
1.04 Transactions To Be Effected at the Closing. At the Closing:

 

(a)          Sellers’
Closing Deliveries. The Sellers shall deliver (or cause to be delivered) to Purchaser:

 

(i)          with
respect to the Assigned CDO Agreements, one or more Assignment and Assumption Agreements, in a customary form mutually agreeable
to the parties hereto (the “Assignment and Assumption Agreements”), and such other bills of sale, assignment
and other instruments as may be reasonably requested by Purchaser to assign and transfer the Assigned CDO Agreements to Purchaser;

 

(ii)         a
counterpart executed by GLS of a letter agreement terminating, effective as of the Closing Date, the Sub-Special Servicing Agreement,
in substantially the form attached as Exhibit A (the “Sub-Special Servicing Termination Letter”);

 

(iii)        counterparts
executed by each CDO Issuer (each, a “CDO Issuer Consent”) of (A) the applicable Assignment and Assumption Agreement
and (B) each Amended and Restated CMA, in substantially the form attached as Exhibit B, except for any changes requested
by any CDO Issuer and reasonably acceptable to the other parties thereto (each, an “Amended and Restated CMA”);

 

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(iv)        with
respect to each CDO Issuer, (A) a written instrument executed by a Majority of the Controlling Class consenting to the transactions
contemplated by the applicable Assignment and Assumption Agreement, in the form satisfactory to the applicable Trustee, and (B)
either (x) one or more executed written instruments by a Majority of the Controlling Class consenting to the execution and delivery
of each Supplemental Indenture by the parties thereto, in the form satisfactory to the applicable Trustee, which instruments shall
be in full force and effect, or (y) evidence that notice of the applicable Supplemental Indenture as is provided for in each CDO
Indenture has been given to a Majority of the Controlling Class, and that a Majority of the Controlling Class has not objected
in writing or electronically via DTC to such Supplemental Indenture during the applicable notice period specified in the applicable
CDO Indenture (each, a “Controlling Class Consent”);

 

(v)         with
respect to the applicable CDO Issuers, the letters listed on Schedule 1.04(a);

 

(vi)        with
respect to CDO Issuer 2005, one or more written instruments executed by the Holders of the Preferred Shares (as defined under the
CDO Indentures) consenting to the execution and delivery of the applicable Supplemental Indenture;

 

(vii)       with
respect to each CDO Issuer, a confirmation by each Rating Agency in writing (including, without limitation, by press release to
the extent consistent with such Rating Agency’s procedures) to the applicable CDO Issuer, the applicable Trustee, Purchaser,
GKKM and GLS, generally to the effect that no withdrawal, reduction, qualification, downgrade or adverse effect with respect to
any then current rating, if any, by such Rating Agency of any class of notes issued by the applicable CDO Issuer pursuant to the
applicable CDO Agreements will occur as a result of (A) the execution and delivery and performance of each applicable Assignment
and Assumption Agreement, (B) the execution and delivery and performance of each applicable Amended and Restated CMA, (C) the execution
and delivery and performance of the applicable Supplemental Indentures, (D) the appointment by GKKM of CWCapital Asset Management
LLC (“CWCAM”) as the successor special servicer under an appointment letter, the entry into an assumption agreement
by CWCAM, and the execution, delivery and performance of the CWCAM Special Servicing Agreement, (E) the appointment of Purchaser
as the Advancing Agent under each CDO Indenture and (F) the consummation of the other Transactions to the extent requiring Rating
Agency confirmation (each, a “Rating Agency Confirmation”); provided that a failure by any Rating Agency
to address such confirmation to Purchaser or any other Person shall not affect the Seller’s satisfaction of this clause so
long as such confirmation is addressed to each applicable CDO Issuer and reasonably satisfactory evidence of the same is provided
to Purchaser;

 

(viii)      an
opinion of legal counsel to the Sellers addressing such matters relating to the Special Servicing Agreement as are required to
be addressed under the Special Servicing Agreement in respect of the Sellers;

 

(ix)         an
opinion of legal counsel to the Sellers addressing tax matters relating to the Supplemental Indentures or requested by any rating
agency in connection with the Supplemental Indentures, in the form satisfactory to the applicable Trustee and counsel delivering
the opinion referred to in Section 1.04(b)(v) and providing that such counsel may rely thereon;

 

    	- 6 -

    	 

    
 

(x)          an
opinion of legal counsel to the Sellers addressing such other matters relating to the Sellers as may be required to be addressed
under the CDO Agreements by the terms thereof in respect of the Sellers, except to the extent covered by the opinions in Sections
1.04(a)(viii) and (ix);

 

(xi)         an
executed counterpart by the Sellers of the Escrow Agreement;

 

(xii)        executed
counterparts by GKKM, GLS, GIT and Gramercy Capital Corp. of an agreement among GKKM, GLS, Green Loan Services LLC, SL Green Operating
Partnership L.P., GIT and Gramercy Capital Corp. effecting the termination of the Green Special Servicing Agreement, and the assignment
by Green Loan Services LLC and SL Green Operating Partnership L.P. of their surviving rights (including, but not limited to, any
workout fee relating to the 26 Broadway mortgage loan) under the Green Special Servicing Agreement to GKKM for assignment to SitusServ
L.P. (“Situs” in its capacity as special servicer to the CDO Issuers) or such other entity as GKKM may designate
(the “Green Termination Agreement”);

 

(xiii)       executed
counterparts by GKKM, GLS and GKKL of the Servicing, Cure and Interest Advances Subordination Agreement among GKKM, GLS, GKKL,
Purchaser, CWCAM and, if required by Wells Fargo Bank, N.A. or reasonably required by Purchaser to implement conditions of the
financing provided by Wells Fargo Bank, N.A. for servicing and other advances, Wells Fargo Bank, N.A., relating to the reimbursement
and repayment of servicing and other advances under the CDO Indentures, the CDO Issuers’ primary servicing agreements, the
CWCAM Special Servicing Agreement, the Special Servicing Agreement and the Sub-Special Servicing Agreement, in substantially the
form of Exhibit L, except for any changes required by Wells Fargo Bank, N.A. and reasonably acceptable to the other parties
thereto (the “Servicing Subordination Agreement”);

 

(xiv)      a
notice executed by GKKL pursuant to which GKKL resigns, and executed counterparts by each CDO Issuer and CDO Co-Issuer of a letter
agreement pursuant to which Purchaser is appointed, as the Advancing Agent under each of the CDO Indentures (the “Advancing
Agent Appointment Letter”);

 

(xv)       (A)
with respect to CDO Issuer 2007, evidence that (x) such notice as is provided for in each applicable CDO Indenture has been given
by the Sellers to each Hedge Counterparty of the agreement of the parties hereto to execute and deliver each Supplemental Indenture,
and (y) no Hedge Counterparty has objected in writing or electronically via DTC to such execution and delivery during the period
contemplated by the applicable CDO Indenture, (B) with respect to CDO Issuer 2005 and CDO Issuer 2006, an executed consent by each
Hedge Counterparty to the applicable Supplemental Indenture and (C) with respect to each CDO Issuer, a consent executed by each
Hedge Counterparty to the applicable Amended and Restated CMA (the consents described in (B) and (C), collectively, the “Hedge
Counterparty Consents”);

 

    	- 7 -

    	 

    
 

(xvi)      with
respect to each CDO Issuer, a written instrument executed by the Majority of the Preferred Shares (as defined under the CDO Indentures)
approving the appointment of Purchaser as the Advancing Agent under each CDO Indenture;

 

(xvii)     a
copy of each Situs Special Servicing Termination Letter;

 

(xviii)    a
copy of a schedule showing all disposition activities taken since November 19, 2012 by or on behalf of any of the Sellers or their
Affiliates with respect to any REO Property or CDO Issuer Asset held by any of the Sellers or their Affiliates on behalf each CDO
Issuer as of such date;

 

(xix)       a
copy of a schedule showing all special servicing fees, liquidation fees, workout fees related thereto received by any Seller or
their Affiliates after November 19, 2012 and prior to the Closing Date;

 

(xx)        executed
counterparts by the Sellers of the documents referred to in Section 1.04(c) required to be delivered by each Seller, to
be held in escrow;

 

(xxi)       a
certificate of the secretary of each Seller as to corporate and incumbency matters, in form and substance reasonably acceptable
to Purchaser; and

 

(xxii)      the
other documents required to be delivered by each Seller pursuant to Article VI (Conditions Precedent).

 

(b)          Purchaser’s
Closing Deliveries. Upon the items referred to in Section 1.04(a) being available for inspection and ready for delivery,
Purchaser shall deliver (or cause to be delivered) to the Sellers:

 

(i)          payment,
by wire transfer to a bank account or bank accounts designated in writing by the Sellers (such designation to be made at least
two Business Days before the Closing Date), of immediately available funds in an amount equal to the difference between (x) the
Purchase Price and (y) the sum of the Escrowed Funds to be paid to the Sellers at Closing pursuant to Section 9.07 (Release
from Escrow);

 

(ii)         executed
counterparts of each of the following executed by Purchaser (or, to the extent specified, CWCAM):

 

		(A)	each Assignment and Assumption
Agreement, and such other instruments of assumption as may be reasonably requested by the Sellers in connection with the Transferred
Assets;

 

		(B)	each Amended and Restated
CMA;

 

    	- 8 -

    	 

    
 

		(C)	an amended and restated special
servicing agreement (“CWCAM Special Servicing Agreement”) effective as of the Closing Date providing for CWCAM
to be special servicer in respect of the CDO Issuer Assets referred to therein, in a form consistent with obtaining Rating Agency
Confirmation in respect of the appointment of CWCAM as the special servicer as may be reasonably acceptable to the parties to
such agreement and which does not necessitate the obtaining of any consent of the “Secured Parties” pursuant to Section
14 of the Special Servicing Agreement;

 

		(D)	the CDO Issuer 2006 and CDO
Issuer 2007 CMA Waiver Letter;

 

		(E)	the letter listed on Schedule
1.04(b);

 

		(F)	the Escrow Agreement;

 

		(G)	the CDO Issuers Letter Agreement;

 

		(H)	the Servicing Subordination
Agreement; and

 

		(I)	the Advancing Agent Appointment
Letter.

 

(iii)        in
accordance with Section 1.01(g), either (A) executed counterparts of a supplemental indenture in respect of each of the
CDO Indentures executed by Purchaser in substantially the form of Exhibit M except for any changes required by (x) the Rating
Agencies in connection with the provision of Rating Agency Confirmation or (y) any CDO Issuer party thereto and reasonably acceptable
to the other parties thereto, which supplemental indentures shall permit each CDO Issuer to form and own Subsidiaries (each, a
“Supplemental Indenture”) or (B) solely at Purchaser’s discretion, with notice to the Sellers at least
three (3) Business Days prior to Closing, documents evidencing alternative transfer arrangements reasonably satisfactory to Purchaser
(collectively, “Alternative REO Transfer Documents”), which documents shall permit the holding of the CDO REO
Holdco Interests by one or more alternative special purpose vehicles (“Alternative REO Vehicles”) as nominee
for the benefit of the applicable CDO Issuers, in each case, solely for the purpose of holding title to the REO Property (as defined
herein) and any other real property and interests in real property that from time to time may be acquired by the applicable CDO
Issuer;

 

(iv)        an
opinion of legal counsel to CWCAM addressing certain matters relating to the CWCAM Special Servicing Agreement required to be addressed
under Section 5 of the Special Servicing Agreement in respect of CWCAM;

 

(v)         an
opinion of legal counsel to Purchaser addressed to the Trustee, as to such matters that the Trustee reasonably requests and is
entitled to request in such an opinion from the CDO Issuers pursuant to Section 8.3 of each of the CDO Indentures in connection
with the execution by the Trustee of each Supplemental Indenture (excluding any tax matters on which an opinion is required pursuant
to the Supplemental Indenture), in the form satisfactory to the applicable Trustee and the Rating Agencies; provided that
such opinion may expressly rely upon, and is subject to the receipt by Purchaser of, the opinion of legal counsel to the Sellers
described in Sections 1.04(a)(ix) and (x);

 

    	- 9 -

    	 

    
 

(vi)        an
opinion of legal counsel to Purchaser addressing such other matters relating to Purchaser as may be required to be addressed under
the CDO Agreements by the terms thereof in respect of Purchaser, except to the extent covered by the opinions in Sections 1.04(b)(iv)
and (v);

 

(vii)       executed
counterparts by Purchaser of the documents referred to in Section 1.04(d) required to be delivered by Purchaser and its
Affiliates, to be held in escrow;

 

(viii)      a
certificate of the secretary of Purchaser as to corporate and incumbency matters, in form and substance reasonably acceptable to
the Sellers; and

 

(ix)         the
other documents required to be delivered by it pursuant to Article VI (Conditions Precedent).

 

(c)          Sellers’
Additional Closing Deliveries. Immediately following the execution and delivery of the Supplemental Indentures or the Alternative
REO Transfer Documents, the Sellers shall deliver (or cause to be delivered) to the CDO Issuers or the Alternative REO Vehicles,
as the case may be:

 

(i)          the
CDO REO Holdco Interests and, in accordance with Section 5.10(b) (Retained CDO Interests), the Seller Minority REO Holdco
Interests, in each case free and clear of any Liens and in a manner customary for transfers of equity interests of the type of
the CDO REO Holdco Interests or Seller Minority REO Holdco Interests, as applicable, and in compliance with the terms of the governing
documents of such CDO REO Holdco Interests or Seller Minority REO Holdco Interests, as applicable, and the CDO Agreements, as reasonably
agreed to by the parties hereto, together with such customary evidence thereof as Purchaser shall reasonably request; and

 

(ii)         one
or more assignments, endorsements and other instruments of assignment and assumption (in customary form and in compliance with
the terms of the governing documents of such CDO REO Holdco Interests or Seller Minority REO Holdco Interests, as applicable) effecting,
in the aggregate, an assignment and assumption of each agreement relating to the CDO REO Holdco Interests or Seller Minority REO
Holdco Interests, as applicable, to the applicable CDO Issuers or the Alternative REO Vehicles, as the case may be.

 

(d)          Purchaser’s
Additional Closing Deliveries. Immediately following the execution and delivery of the Supplemental Indentures or the Alternative
REO Transfer Documents, Purchaser shall, in compliance with its obligations under the Amended and Restated CMAs, the CDO Indentures
as amended by the Supplemental Indentures and the other CDO Agreements, use reasonable efforts to cause the CDO Issuers or the
Alternative REO Vehicles, as the case may be, to deliver to Purchaser, one or more assignments, endorsements and other instruments
of assignment and assumption (in customary form and in compliance with the terms of the governing documents of such CDO REO Holdco
Interests or Seller Minority REO Holdco Interests, as applicable) effecting, in the aggregate, an assignment and assumption of
each agreement relating to the CDO REO Holdco Interests and, in accordance with Section 5.10(b) (Retained CDO Interests),
Seller Minority REO Holdco Interests from the applicable Sellers (or their Affiliates) to the applicable CDO Issuers or the Alternative
REO Vehicles.

 

    	- 10 -

    	 

    
 

Section
1.05 [RESERVED].

 

Section
1.06 Related CDO Assets. To the extent that legal title to any of the assets identified
on Schedule 3.03 (collectively, the “Related CDO Assets”), shall not have been transferred to the applicable
CDO Issuers or to the applicable Trustees as indenture trustees under the applicable CDO Indentures prior to the Closing, the
Sellers shall assign, transfer and deliver to the applicable CDO Issuers or to the applicable Trustees as indenture trustees under
the applicable CDO Indentures, and, if applicable, shall use reasonable efforts to cause each of the CDO Issuers to accept and
assume from such Sellers, at the Closing and for no additional consideration, all the right, title and interests of such Sellers
in and to the Related CDO Assets. The parties hereto shall use all reasonable efforts to cause the Related CDO Assets to be transferred
to the applicable CDO Issuers or to the applicable Trustees as indenture trustees under the applicable CDO Indentures prior to
the Closing; provided, however, that the Sellers and their respective Affiliates shall be responsible for preparing
all necessary documents relating to the transfer of the Related CDO Assets to the applicable CDO Issuers or the applicable Trustees
as indenture trustees under the applicable CDO Indentures before or after the Closing Date in compliance with applicable Law and
the documents governing such Related CDO Assets and shall be responsible for all expenses and fees related thereto, it being understood
and agreed that the Sellers and their respective Affiliates shall be entitled to seek to obtain reimbursement for such expenses
and fees by the applicable CDO Issuers, to the extent permitted by the applicable CDO Issuer’s Organizational Documents
and CDO Indenture and related agreements, prior to the Closing (it being understood that the Sellers solely shall determine such
permissibility and process any such request prior to the Closing Date and that Purchaser shall have no obligation to process any
such request on or after the Closing Date); provided, however, that to the extent that any Related CDO Asset is
not capable of being assigned or transferred without the Consent (as defined herein) of a third party or if such assignment or
transfer would constitute a breach thereof or a violation of applicable Law, neither this Agreement nor any Ancillary Agreements
shall constitute an actual or attempted assignment, transfer, sublease or sublicense thereof unless and until such consent, approval
or waiver of such third party has been duly obtained or such assignment, transfer, sublease or sublicense has otherwise become
lawful (any such Related CDO Asset not assigned, transferred, subleased or sublicensed as a result of this Section 1.06
is hereinafter referred to as an “Unassigned Asset”). Until the impracticalities of transfer of any Unassigned
Asset are resolved, the Sellers shall have responsibility for, and shall reasonably cooperate with Purchaser, the CDO Issuers
and the applicable Trustees as indenture trustees under the applicable CDO Indentures to (i) obtain such consents, approvals and
waivers (including by preparing the documentation described in the first proviso to the second sentence of this clause), (ii)
provide or cause to be provided to the applicable CDO Issuers, to the extent permitted under the terms thereof, the benefits of
any Unassigned Asset in any arrangement, reasonable and lawful as to both the Sellers, on the one hand, and the applicable CDO
Issuers or the applicable Trustees as indenture trustees under the applicable CDO Indentures, on the other hand, which is designed
to provide such benefits to the applicable CDO Issuers and (iii) enforce for the account of the applicable CDO Issuers any rights
of the Sellers arising from such Unassigned Asset, including all rights to indemnification, insurance and the right to elect to
terminate in accordance with the terms thereof, in each case after consulting with and in a manner consistent with any advice
and direction of Purchaser.

 

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ARTICLE II

 

Representations and Warranties
Relating to Each Seller

 

Except as set forth
in the Schedules, each Seller hereby represents and warrants to Purchaser, as of the date hereof and as of the Closing Date, as
follows:

 

Section
2.01 Organization, Standing and Power. Such Seller is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization and has full corporate power and authority
to own, lease or otherwise hold its properties and assets and to carry on its business as presently conducted, except where the
failure to have such power and authority would not adversely affect in any material respect the ability of the Sellers to consummate
the Transactions. Such Seller is duly qualified and in good standing to do business in each jurisdiction in which the conduct
or nature of its business or the ownership, leasing or holding of its properties and assets makes such qualification necessary,
except such jurisdictions where the failure to be so qualified or in good standing would not adversely affect in any material
respect the ability of the Sellers to consummate the Transactions.

 

Section
2.02 Authority; Execution and Delivery; Enforceability. Such Seller has full corporate
power and authority to execute this Agreement and the Ancillary Agreements to which it is, or is specified to be, a party and
to consummate the Transactions. The execution and delivery by such Seller of this Agreement and the Ancillary Agreements to which
it is, or is specified to be, a party and the consummation by such Seller of the Transactions have been duly authorized by all
necessary corporate action. Such Seller has duly executed and delivered this Agreement and at or before the Closing will have
duly executed and delivered each Ancillary Agreement to which it is, or is specified to be, a party, and this Agreement constitutes,
and each Ancillary Agreement to which it is, or is specified to be, a party will after the Closing constitute, its legal, valid
and binding obligation, enforceable against it in accordance with its terms.

 

Section
2.03 No Conflicts; Consents. The execution and delivery by such Seller hereof
do not, the execution and delivery by such Seller of each Ancillary Agreement to which it is, or is specified to be, a party will
not, and the consummation of the Transactions and compliance by such Seller with the terms hereof and thereof, will not (a) result
in the creation or imposition of any Lien (other than Permitted Liens) against or upon the properties and assets owned by such
Seller or (b) contravene, conflict with, or result in any violation or breach of or default under, or result in the termination,
modification or cancellation of, or the loss of a benefit under or accelerate the performance required by, or result in a right
of termination, modification, cancellation or acceleration under (with or without notice or lapse of time, or both) any provision
of (i) the Organizational Documents of such Seller, (ii) any contract, lease, license, indenture, mortgage, deed of trust, bond,
note, franchise, certificate, option, warrant, right, agreement, commitment or other legally binding arrangement (a “Contract”)
to which such Seller is a party or by which any of its properties or assets is bound, or (iii) any permit, Judgment or Law applicable
to such Seller or its properties or assets, other than, in the case of clauses (ii) and (iii) above, any such items that, individually
or in the aggregate, have not had a material adverse effect on, and would not be expected to adversely affect in any material
respect, the ability of the Sellers to consummate the Transactions. No consent, approval, waiver, license, permit, franchise,
authorization or Judgment (“Consent”) of, or registration, declaration, notice, report, submission or other
filing (“Filing”) with, any government or any arbitrator, tribunal or court of competent jurisdiction, administrative
agency or commission or other governmental authority or instrumentality (in each case whether Federal, state, local, foreign,
international or multinational) (a “Governmental Entity”) or other Person is required to be obtained or made
by or with respect to such Seller in connection with the execution, delivery and performance hereof or the consummation of the
Transactions, except for (A) the Consents and Filings that are set forth in Schedule 2.03 and (B) as may be required pursuant
to the terms of the CDO Agreements.

 

    	- 12 -

    	 

    
 

Section
2.04 Recitals. The statements contained in the Recitals to this Agreement with
respect to the Sellers are true and correct in all material respects.

 

ARTICLE III

 

Representations and Warranties
Relating to the Transferred Assets

 

Except as set forth
in the Schedules, the Sellers, jointly and severally, represent and warrant to Purchaser, as of the date hereof and as of the Closing
Date, as follows:

 

Section
3.01 CDO Agreements. (a) Schedule 3.01(a) sets forth a list as of the date
hereof of (i) each collateral management agreement with a CDO Issuer under which GKKM is the collateral manager and any amendments
or supplements thereto (collectively, the “Existing Collateral Management Agreements”), (ii) each indenture
pursuant to which outstanding securities of the CDO Issuers have been issued and any amendments or supplements thereto (collectively,
the “CDO Indentures”), (iii) each servicing agreement to which GKKM, GLS or any of their respective Affiliates,
a CDO Issuer or a Trustee is a party relating to the servicing of CDO Issuer Assets (including all primary servicing, special
servicing and sub-special servicing agreements, and any letter agreements, termination agreements, supplements or modifications
thereto, but excluding any participation, intercreditor or similar agreements, and any primary servicing agreements with a party
other than a CDO Issuer, a Trustee or an Affiliate of a Seller with respect to individual CDO Issuer Assets, collectively the
“Servicing Documents”), (iv) each hedge agreement relating to the CDO Issuers and the CDO Issuer Assets, (v) each
preference share paying agency agreement and securities account control agreement to which (in each case) a CDO Issuer is a party,
and (vi) each other document to which a CDO Issuer is a party, pursuant to which GKKM has third-party beneficiary rights, direction
rights or rights to receive notices thereunder (such agreements described in these clauses (iv), (v), and (vi), including any
amendments or supplements thereto and together with the Existing Collateral Management Agreements, CDO Indentures and Servicing
Documents, the “CDO Agreements”). The Sellers have made available to Purchaser, prior to the date hereof, true
and complete copies of all CDO Agreements, together with all amendments, supplements, waivers and modifications thereto.

 

    	- 13 -

    	 

    
 

(b)          Except
as set forth in Schedule 3.01(b), (i) each Assigned CDO Agreement to which GKKM is a party is a valid, legally binding obligation
of GKKM and enforceable against GKKM in accordance with its terms, except as limited by Laws affecting the enforcement of creditors’
rights generally and by general equitable principles, (ii) no Seller is in breach or default in any material respect under any
CDO Agreement to which it is a party, and (iii) to the Knowledge of the Sellers, each CDO Agreement is in full force and effect
and constitutes a legal, valid and binding agreement, enforceable against each party thereto (including any Sellers), in accordance
with its terms, except as limited by Laws affecting the enforcement of creditors’ rights generally and by general equitable
principles and the interest of each Seller in each CDO Agreement is free and clear of all Liens (other than Permitted Liens).

 

(c)          Except
as set forth in Schedule 3.01(c), (i) no Seller has, directly or through its Representatives, caused or taken any action
to cause or, to the Knowledge of the Sellers, permitted, or omitted to take any action that causes, any CDO Issuer to violate any
Law or any provision of the CDO Agreements (including any CDO Issuer representations and warranties made therein) in any material
respect and (ii) to the Knowledge of the Sellers, no CDO Issuer is in violation in any material respect of any CDO Agreement
to which it is party.

 

(d)          Except
as set forth in Schedule 3.01(d), (i) no action has been taken, whether by any Seller, any Affiliate of any Seller
or, to the Knowledge of the Sellers, any other Person (x) to, directly or through its Representatives, initiate, assist, solicit,
receive, negotiate, participate in, facilitate, encourage or otherwise seek to procure the redemption of the securities of any
CDO Issuer, whether in connection with a refinancing, an auction, an acceleration or otherwise, or (y) to de-list any class
of securities of any CDO Issuer except in compliance with the terms of the applicable CDO Agreements, and (ii) as of the date
hereof, no notice has been given (in the manner set forth in the CDO Agreements) and, to the Knowledge of the Sellers, no notice
is pending or threatened from any holder of securities of any of the CDO Issuers (or any other party to the CDO Agreement) to redeem
or cause the redemption, in whole or in part, of any securities of any CDO Issuer, whether by refinancing, auction, acceleration
or otherwise.

 

(e)          Except
as set forth in Schedule 3.01(e), to the Knowledge of the Sellers, (i) no “Default” or “Event of Default”
has occurred and is continuing under any of the CDO Indentures, and (ii) no “Event of Default” or “Servicing
Event of Default” has occurred and is continuing under any of the Servicing Documents.

 

Section
3.02 REO Holdcos. Schedule 3.02 sets forth a list as of the date hereof,
of (i) each limited liability company or limited partnership that is owned by a Seller or its Affiliates and holds, directly
or indirectly through one or more of its Subsidiaries real property, and interests in real property for the benefit of the CDO
Issuers (each, an “REO Holdco”), (ii) for each REO Holdco, all real property and interests in real property
owned or held, directly or indirectly, by such REO Holdco (“REO Property”) and (iii) all material disposition
activities undertaken since November 19, 2012 by or on behalf of any of the Sellers or their Affiliates with respect to any REO
Property held on behalf each CDO Issuer as of such date. Each REO Holdco or a Subsidiary thereof has good and valid title to all
REO Property set forth opposite its name on Schedule 3.02, in each case free and clear of all Liens other than Permitted
Liens. Except as set forth on Schedule 3.02, no REO Holdco owns any property or assets other than (x) REO Property
or (y) an interest in a Subsidiary that directly or indirectly owns REO Property.

 

    	- 14 -

    	 

    
 

Section
3.03 No Other Related CDO Assets. Except as set forth on Schedule 3.03,
as of the date hereof, no Seller or any of its Affiliates holds any properties or assets (other than the CDO REO Holdco Interests)
as nominee for the benefit of the CDO Issuers. A Seller or an Affiliate of a Seller holds of record, for the benefit of the applicable
CDO Issuers, all the properties and assets set forth on Schedule 3.03, in each case free and clear of all Liens other than
Permitted Liens.

 

Section
3.04 No Employees. No Seller has any liabilities, whether under benefit plans
or otherwise, to any current or former employee of any Seller or its Affiliates for which Purchaser or its Affiliates would become
liable in connection with the Transactions.

 

Section
3.05 Collateral Management. Except as set forth in Schedule 3.05, (a) as
of the date hereof, GKKM has not (i) received from any Person any written notice (A) alleging that GKKM is in default under any
of the CDO Agreements or that an event constituting cause for removal or termination of GKKM as Collateral Manager has occurred,
(B) directing the termination or removal of GKKM as the “Collateral Manager” under any of the Existing Collateral
Management Agreements, (C) of a “Default” or an “Event of Default” under the CDO Indentures or any other
CDO Agreement, (D) of a “cause” event under the Existing Collateral Management Agreements, or (E) of a Par Value Coverage
Test or Par Value Test (as defined in each CDO Indenture) failure that would adversely affect in any material respect the Transferred
Assets, (ii) received from any Person any written notice challenging the obligation of any of the CDO Issuers to pay fees, reimburse
expenses or cure advances to the “Collateral Manager” under any of the CDO Agreements, or (iii) made any assignment
of fees, expense reimbursements or cure advances due to the “Collateral Manager” under any of the CDO Indentures and/or
the Existing Collateral Management Agreements; (b) GKKM has not (i) released any of the CDO Issuers from any of its material obligations
under any of the CDO Agreements or (ii) given to any CDO Issuer any written notice of an occurrence of “cause” or
termination or resignation under the Existing Collateral Management Agreements, or of a “Default” or “Event
of Default” under any of the CDO Agreements; and (c) as of the date hereof, there are no outstanding and unpaid collateral
management fees or reimbursable expenses or cure advances accrued or otherwise payable by any CDO Issuer to GKKM under the Existing
Collateral Management Agreements and/or the CDO Indentures.

 

Section
3.06 Servicing, Advancing and Related Matters. (a) Schedule 3.06 sets forth:
(A) as of the date hereof, (i) the Servicing Advances funded by GLS in respect of the CDO Issuers and the CDO Issuer Assets (the
“Scheduled GLS Servicing Advances”), (ii) the Interest Advances funded by GKKL in respect of the CDO Issuers
(the “Scheduled GKKL Interest Advances”) and (iii) the Servicing Advances funded by GKKM in respect of the
CDO Issuers and the CDO Issuer Assets (the “Scheduled GKKM Special Servicing Advances”; and together with the
Scheduled GLS Servicing Advances and the Scheduled GKKL Interest Advances, the “Scheduled Advances”); and (B)
a list of Servicing Documents pursuant to which a Seller or a CDO Issuer is entitled to terminate or remove (or control the termination
or removal of) existing servicers or special servicers, and to appoint new servicers or special servicers, with respect to each
CDO Issuer Asset. Except as set forth on Schedule 3.06, (x) as of the date hereof, there are no Servicing Advances or Interest
Advances accrued or otherwise payable to any Seller or any Affiliate of the Sellers (including GIT and GIT II) under the CDO Agreements
(including all Servicing Documents), and (y) no Person (other than a Seller, the Servicer, the Special Servicer and the Sub-Special
Servicer pursuant to the CDO Agreements) is entitled to receive any or all special servicing fees, liquidation fees and workout
fees pursuant to any CDO Agreement (including the Accrued Servicing Fees).

 

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(b)          Except
as set forth on Schedule 3.06: (A) as of the date hereof, no Seller has (i) received from any Person any written notice
(x) alleging that GKKL is in default under any of the CDO Agreements or (y) terminating, or removing GKKL as the “Advancing
Agent” under, any of the CDO Indentures, (ii) received from any Person any written notice challenging the obligation of any
of the CDO Issuers to pay fees or reimburse Interest Advances to the “Advancing Agent” under any of the CDO Agreements,
or (iii) received from any Person any written notice challenging the obligation of any Person (including any lender, creditor or
loan participant) to pay any servicing fees, workout fees and liquidation fees to any Seller (including GKKL and GLS) under any
of the Servicing Documents (including any special servicing termination arrangements related thereto); (B) no Seller has (i) made
any assignment of (x) the fees or reimbursements of Interest Advances due and payable to the “Advancing Agent” under
any of the CDO Indentures or (y) the fees described in sub-clause (iii) in this paragraph due to the Sellers under any of the CDO
Agreements, (ii) released (x) any of the CDO Issuers from any of its material obligations under any of the CDO Agreements or (y)
any Person (including any lender, creditor or loan participant) from any of their payment obligations under any of the Servicing
Documents, (iii) given to any CDO Issuer any written notice of termination or resignation as “Advancing Agent” under
any of the CDO Agreements, or (iv) given to any Person (including any lender, creditor or loan participant) any written notice
of termination or resignation as “servicer” or “special servicer” under any of the Servicing Documents;
(C) as of the date hereof, there are no outstanding and unpaid fees, Interest Advances or expenses accrued or otherwise payable
by any CDO Issuer to GKKL under the CDO Indentures; and (D) there are no outstanding and unpaid servicing fees, liquidation fees
or workout fees accrued or otherwise payable by any Person to any Seller under the Servicing Documents other than the Accrued Servicing
Fees.

 

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Section
3.07 Taxes. Each Seller, the REO Holdcos and their respective Subsidiaries has
timely filed, or caused to be timely filed, all material Tax Returns required to be filed by it (taking into account all available
extensions), and has paid, collected or withheld, or caused to be paid, collected or withheld, all material Taxes required to
be paid, collected or withheld, other than such Taxes for which adequate reserves have been established in accordance with GAAP.
There are no material claims, assessments, audits, examinations, investigations or other proceedings pending against any Seller,
the CDO Issuers, the CDO Co-Issuers, the REO Holdcos or their respective Subsidiaries in respect of any Taxes, and to the Knowledge
of the Sellers, no such claims, assessments, audits, examinations, investigations or other proceedings have been threatened. None
of the Sellers, the CDO Issuers, the CDO Co-Issuers, the REO Holdcos or their respective Subsidiaries, if any, has any outstanding
waivers or extensions of any applicable statute of limitations to assess any material amount of Taxes. Each of GIT, commencing
with its first taxable year ended December 31, 2005, and GIT II, commencing with its first taxable year ended December 31, 2007,
has been organized and has operated in conformity with the requirements for qualification and taxation as a “real estate
investment trust” within the meaning of Section 856(a) of the Code (a “REIT”), and its current and
proposed method of operation will enable each of GIT and GIT II to continue to meet the requirements for qualification and taxation
as a REIT under the Code in future years, and no challenge by the IRS to either Seller’s status as a REIT is pending or
has been threatened in writing and to the Knowledge of the Sellers no basis for any such challenge exists. Each of the QRS Subsidiaries,
the CDO Issuers, and the CDO Co-Issuers has at all times qualified as a QRS or a disregarded entity of GIT or GIT II, as applicable.
The beneficial ownership for U.S. federal income tax purposes of each of the CDO REO Holdco Interests is currently held by the
CDO Issuer to which such CDO REO Holdco Interest will be transferred pursuant to Section 1.01(h) (REO Holdcos). All of
the income that is currently generated by any CDO Issuer is qualifying income for purposes of Section 856(c)(2) of the Code as
of the date hereof. All of the income that is currently generated by any CDO Issuer, other than any dividends from taxable REIT
subsidiaries, is qualifying income for purposes of Section 856(c)(3) of the Code as of the date hereof. All of the assets that
are currently held by any CDO Issuer other than any interest in any taxable REIT subsidiary are qualifying assets for purposes
of Section 856(c)(4)(A) of the Code as of the date hereof. All of the assets that are currently held by any CDO Issuer, other
than property with respect to which a foreclosure property election has been made, is currently held for investment and is not
described in Section 1221(a)(1) of the Code as of the date hereof. GIT or GIT II, as applicable, has timely and properly made
or will timely and properly make an election under Section 856(e) of the Code to treat as foreclosure property for U.S. federal
income tax purposes each property in which any CDO Issuer has acquired a direct or indirect beneficial interest for U.S. federal
income tax purposes as a result of a foreclosure or similar transaction, including without limitation each property in which any
REO Holdco holds an interest, other than (i) any such property that has qualified and will continue to qualify in its entirety
as a real estate asset within the meaning of Section 856(c)(4) of the Code and that has produced and will continue to produce
solely income that qualifies under Section 856(c)(3) of the Code, and (ii) the property known as the “Las Vegas Hilton.”
GIT or GIT II, as applicable, will timely and properly make an election under Section 856(l) of the Code to treat the entity that
holds the property known as the “Las Vegas Hilton” as a taxable REIT subsidiary. The entity that holds the property
known as the “Las Vegas Hilton” has engaged an eligible independent contractor as defined in Section 856(d) of
the Code to operate such property.

 

Section
3.08 Compliance with Laws. To the Knowledge of the Sellers, each of the Sellers,
with respect to the Transferred Assets, (i) is in compliance in all material respects with all applicable Laws and (ii) since
January 1, 2011 has been in compliance in all material respects with all applicable Laws. The Sellers have previously made available
to Purchaser true and complete copies of all material reports, filings, registrations, applications, notices or correspondence
to, from or with any Governmental Entity since January 1, 2011 in connection with or relating to the Transferred Assets.

 

Section
3.09 Proceedings; Judgments. Schedule 3.09 sets forth a list of each pending
Proceeding and, to the Knowledge of the Sellers, each Proceeding that has been threatened, against a Seller relating to any Transferred
Asset or that may result, directly or indirectly, in any material liability to such Seller (with respect to any Transferred Asset)
or that may adversely affect in any material respect the ability of the Sellers to consummate the Transactions. To the Knowledge
of the Sellers, no Seller (with respect to any Transferred Asset) is the subject of, or in default in any material respect under,
any Judgment.

 

    	- 17 -

    	 

    
 

Section
3.10 Regulatory Matters. GKKM (i) is duly registered with the SEC as an investment
adviser under the Advisers Act, and (ii) has filed a Form ADV with the SEC in accordance with the Advisers Act, which Form ADV
at the time of filing (and with respect to Form ADV, Part II, its date) was, and as amended and supplemented is, in effect pursuant
to and in material compliance with the requirements of the Advisers Act. To the Knowledge of the Sellers, there is no investigation,
dispute or proceeding on the part of the SEC concerning any Seller that could have a material adverse effect on any CDO Issuer.

 

Section
3.11 Full Disclosure. To the Knowledge of the Sellers, the representations and warranties
of the Sellers contained in this Article III, together with all information and documents previously made available by
the Sellers to Purchaser, includes all the material information and documents relating to the rights of any Person under the CDO
Agreements to terminate any Assigned CDO Agreement. Schedule 3.11 sets forth, to the Knowledge of the Sellers, a list of
all documents and agreements pursuant to which any Person is entitled to terminate or remove existing servicers or special servicers
and to appoint servicers or special servicers, with respect to each CDO Issuer Asset. Notwithstanding the foregoing, Sellers are
not making any representation pursuant to this Section 3.11 with respect to events, occurrences or developments not within
the reasonable control of the Sellers or their Affiliates that could result in a failure to satisfy any Par Value Coverage Test
or Par Value Test (as defined in each CDO Indenture). The Sellers have disclosed, delivered or provided to Purchaser, as applicable,
true and complete copies of all of the following books and records in respect of each CDO Issuer and the CDO Issuer Assets (including
REO Properties):

 

(a)          all
letters from or on behalf of noteholders related to disagreements with noteholders and all letters in response thereto from or
on behalf of any Seller or its Affiliates;

 

(b)          all
written notices, filings or correspondence with or from Governmental Entities relating to any material investigation, dispute or
proceeding relating to the CDO Issuer Assets or the management thereof;

 

(c)          any
documents relating to the CDO Issuers, the CDO Co-Issuers and the CDO Issuer Assets, including but not limited to, agreements,
side letters, modifications, indemnifications, waivers, dispute resolution agreements, in each case not forming part of each CDO
Issuer’s initial closing transaction documents (other than any supplements or amendments to each CDO Issuer’s initial
closing transaction documents which have been provided to Purchaser) and excluding documents related to the ordinary course management
or servicing of the CDO Issuer Assets;

 

(d)          any
indemnification agreement between GKKM and Wells Fargo Bank, N.A. with regard to note cancellations (each, a “Wells Fargo
Indemnity Letter”); and

 

(e)          any
litigation or dispute related documents that, to the Knowledge of the Sellers, has been filed with a Governmental Entity in respect
of each CDO Issuer.

 

Section
3.12 Absence of Certain Changes. For each CDO Issuer, since the date of the most
recent Notes Valuation Report for such CDO Issuer until the date hereof, there has not occurred any event, occurrence or development
that, individually or in the aggregate, constitutes or could reasonably be expected to constitute cause for removal or termination
of any collateral manager, advancing agent and, to the Knowledge of the Sellers, Situs as the servicer or special servicer under
the CDO Agreements. Notwithstanding the foregoing, Sellers are not making any representation pursuant to this Section 3.12
with respect to events, occurrences or developments not within the reasonable control of the Sellers or their Affiliates that
could result in a failure to satisfy any Par Value Coverage Test or Par Value Test (as defined in each CDO Indenture).

 

    	- 18 -

    	 

    
 

ARTICLE IV

 

Representations and Warranties
of Purchaser

 

Purchaser hereby represents
and warrants to each Seller, as of the date hereof and as of the Closing Date, as follows:

 

Section
4.01 Organization, Standing and Power. Purchaser is duly organized, validly existing
and in good standing under the laws of the jurisdiction in which it is organized and has full corporate power and authority and
possesses all governmental franchises, licenses, permits, authorizations and approvals necessary to enable it to own, lease or
otherwise hold its properties and assets and to carry on its business as presently conducted. Purchaser is duly qualified and
in good standing to do business in each jurisdiction in which the conduct or nature of its business or the ownership, leasing
or holding of its properties and assets makes such qualification necessary, except such jurisdictions where the failure to be
so qualified or in good standing would not adversely affect in any material respect the ability of Purchaser to consummate the
Transactions.

 

Section
4.02 Authority; Execution and Delivery; Enforceability. Purchaser has full power
and authority to execute this Agreement and the Ancillary Agreements to which it is, or is specified to be, a party and to consummate
the Transactions. The execution and delivery by Purchaser hereof and the Ancillary Agreements to which it is, or is specified
to be, a party and the consummation by Purchaser of the Transactions have been duly authorized by all necessary corporate action.
Purchaser has duly executed and delivered this Agreement and at or before the Closing will have duly executed and delivered each
Ancillary Agreement to which it is, or is specified to be, a party, and this Agreement constitutes, and each Ancillary Agreement
to which it is, or is specified to be, a party will after the Closing constitute, its legal, valid and binding obligation, enforceable
against it in accordance with its terms.

 

Section
4.03 No Conflicts; Consents. The execution and delivery by Purchaser hereof do
not, the execution and delivery by Purchaser of each Ancillary Agreement to which it is, or is specified to be, a party will not,
and the consummation of the Transactions and compliance by Purchaser with the terms hereof and thereof will not, contravene, conflict
with, or result in any violation of or default (with or without notice or lapse of time, or both) under any provision of (i) the
Organizational Documents of Purchaser or any of its Subsidiaries, (ii) any Contract to which Purchaser or any of its Subsidiaries
is a party or by which any of their respective properties or assets is bound, or (iii) any permit, Judgment or Law applicable
to Purchaser or any of its Subsidiaries or their respective properties or assets, other than, in the case of clauses (ii) and
(iii) above, any such items that have not had and would not reasonably be expected to adversely affect in any material respect
the ability of Purchaser to consummate the Transactions. No Consent of or Filing with any Governmental Entity is required to be
obtained or made by or with respect to Purchaser or any of its Subsidiaries in connection with the execution, delivery and performance
hereof or the consummation of the Transactions or the ownership by Purchaser of the Transferred Assets following the Closing,
other than such Consents and Filings as may be required by the CDO Agreements or the failure of which to obtain or make would
not reasonably be expected to adversely affect in any material respect the ability of Purchaser to consummate the Transactions.

 

    	- 19 -

    	 

    
 

Section
4.04 Availability of Funds. Purchaser has available cash or has existing borrowing
facilities that together are sufficient to enable it to consummate the Transactions (the “Financing”). As of
the date hereof, Purchaser does not have any reason to believe that the Financing will not be available to Purchaser on a timely
basis to consummate the Transactions.

 

Section
4.05 Confidentiality Agreement. Purchaser has complied in all material respects
with all of its obligations set forth in the Confidentiality Agreement.

 

Section
4.06 Matters Relating to Collateral Management. Purchaser or any entity designated
by Purchaser to act as successor collateral manager (i) is duly registered with the SEC as an investment adviser under the Advisers
Act, (ii) complies with the requirements set forth in Section 12(d)(i)-(v) of each Existing Collateral Management Agreement, and
(iii) by its appointment as collateral manager pursuant to the Existing Collateral Management Agreements will not cause any CDO
Issuer, any CDO Co-Issuer or the assets of the CDO Issuers (x) to become, or result in any CDO Issuer, any CDO Co-Issuer or the
assets of the CDO Issuers becoming, an “investment company” under the Investment Company Act or (y) to become subject
to income or withholding tax that would not have been imposed by for such appointment.

 

Section
4.07 Matters Relating to Servicing Arrangements. CWCAM or any entity designated
by Purchaser to act as successor special servicer under the CWCAM Special Servicing Agreement is listed on Standard & Poor’s
Select Servicer List as a U.S. Commercial Mortgage Special Servicer.

 

Section
4.08 No Outstanding Information Requests. Purchaser and its Representatives have
been afforded with the opportunity to meet with, and to request and receive such information and documents (assuming such information
and documents made available to them are true and complete) from, the Sellers’ officers and employees, in each case as Purchaser
and its Representatives have requested.

 

ARTICLE V

 

Covenants

 

Section
5.01 Covenants Relating to Pre-Closing Activities. Except as otherwise contemplated
hereby, from the date hereof to the Closing, (a) the Sellers shall conduct the Sellers’ business, to the extent relating
to the Transferred Assets, in the ordinary course of business, consistent with current practice and applicable Laws, (b) each
Seller shall perform and, to the extent applicable, cause each of its Subsidiaries to perform, its respective obligations under
each CDO Agreement to which it is a party, and (c) no Seller shall, and, to the extent applicable, each Seller shall not permit
any of its Subsidiaries to, do any of the following, to the extent relating to any of the Transferred Assets, without the prior
written consent of Purchaser (which consent shall not be unreasonably withheld, conditioned or delayed):

 

    	- 20 -

    	 

    
 

(i)          sell,
lease, license or otherwise dispose of any Transferred Assets;

 

(ii)         permit,
allow or suffer any Transferred Assets, or rights under the Transferred Assets, to become subjected to any Liens other than Permitted
Liens;

 

(iii)        compromise,
settle or otherwise adjust any Proceeding involving the Transferred Assets;

 

(iv)        terminate,
amend or modify, or resign as collateral manager, advancing agent or as special servicer, as the case may be, under, any Assigned
CDO Agreements;

 

(v)         enter
into any Contract that would have been required to be set forth in Schedule 3.01(a) if such Contract were in effect on the
date hereof;

 

(vi)        modify,
amend, terminate or grant any Consent or waiver under any Contract that is set forth or required to be set forth in Schedule
3.01(a) or that would have been required to be set forth in Schedule 3.01(a) if it were in effect on the date hereof;
and

 

(vii)       authorize
any of, or commit or agree to take, whether in writing or otherwise, to do any of, the foregoing actions,

 

and provided, however, that
in the case of any action that is contractually required to be taken by a Seller, where the prior written consent of Purchaser
to any of the foregoing actions is requested, but such consent is not either given or refused at least five (5) Business Days prior
to the expiration of any contractual time limit applying to the taking of such action or, if none, within five (5) Business Days
of such request being made, such consent shall be deemed to have been given by Purchaser for purposes of this Agreement. Notwithstanding
the covenants made by the Sellers in this Section 5.01, Purchaser acknowledges that each of the Sellers and its Affiliates
shall be permitted to take or omit to take any and all actions that such Seller or any of such Affiliates determines, in its sole
and absolute discretion, to be required by the provisions of any Contracts to which any of them is a party (including the Existing
Collateral Management Agreements, the Special Servicing Agreement and the Sub-Special Servicing Agreement), or by the Advisers
Act in order to satisfy or otherwise fulfill their respective obligations (including the standard of care required to be exercised
by any of them) pursuant to such Contracts or the Advisers Act.

 

Section
5.02 Access to Information. The Sellers shall afford to Purchaser and its Representatives
reasonable access, upon reasonable notice during normal business hours during the period from the date hereof to and including
the Closing Date, to personnel of the Sellers that are involved in any of the Transferred Assets, books, contracts, commitments,
Tax Returns, records and financial, operating and other data of the Sellers relating to the Transferred Assets, the CDO Agreements
and the CDO Issuer Assets, and, during such period shall furnish promptly to Purchaser and its Representatives any information
concerning the Transferred Assets, the CDO Agreements and the CDO Issuer Assets as Purchaser and its Representatives may reasonably
request; provided, however, that such access does not unreasonably disrupt the normal operations of the Sellers.
This Section 5.02 shall not require the Sellers to permit any inspection, or to disclose any information, that in the reasonable
judgment of the Sellers would reasonably be expected to result in (i) a violation of any of its obligations with respect to confidentiality
or (ii) the loss of attorney-client privilege with respect to such information.

 

    	- 21 -

    	 

    
 

Section
5.03 Confidentiality. (a) Purchaser acknowledges that the information being provided
to it in connection with the Transactions is subject to the terms of a confidentiality agreement dated October 11, 2012 between
Purchaser and Gramercy Capital Corp. (the “Confidentiality Agreement”). Effective upon, and only upon, the
Closing, the Confidentiality Agreement shall terminate with respect to information relating, directly or indirectly, to the Transferred
Assets and all Records being delivered pursuant to Section 5.09 (Records) and pursuant to Section 12(g) of the Existing
Collateral Management Agreements and Purchaser shall be free to use such information and documents after the Closing subject only
to the confidentiality provisions of the applicable CDO Agreements; provided, however, that Purchaser acknowledges
that any and all other confidential information provided to it by the Sellers or their Representatives concerning the Sellers
shall remain subject to the terms and conditions of the Confidentiality Agreement after the Closing Date; provided, further,
that following the Closing the restrictions on use of any information contained in the Confidentiality Agreement shall not apply
to the use of any information relating to the Transferred Assets or the CDO Issuers by Purchaser, its Affiliates or its representatives
that is necessary to be used by it in order to perform its obligations as collateral manager, advancing agent and special servicer
with respect to the CDO Issuers and the CDO Issuer Assets.

 

(b)          Each
Seller shall keep confidential, and cause its controlled Affiliates and instruct its and their Representatives to keep confidential,
all information relating to the Transferred Assets, except (i) as required by Law or administrative process, in which case the
Sellers shall (A) to the extent permitted under applicable Law, provide written notice to Purchaser so as to enable Purchaser to
take action to seek a protective order or other appropriate remedy to ensure confidential treatment of such information, (B) furnish
only that portion of the information as is legally required to be furnished by the Sellers and (C) cooperate with Purchaser,
at Purchaser’s sole expense, in Purchaser’s reasonable efforts to obtain a protective order, (ii) for information that
is available to the public on the Closing Date or thereafter becomes available to the public other than as a result of a breach
of this Section 5.03(b) and (iii) to the extent use of such information is necessary or appropriate in making any Filing
or obtaining any Consent required for the consummation of the Transactions. The covenant set forth in this Section 5.03(b)
shall terminate two (2) years after the Closing Date.

 

Section
5.04 Reasonable Efforts. (a) On the terms and subject to the conditions hereof,
each party hereto shall cooperate with the other and use all reasonable efforts to perform its obligations hereunder in a manner
as will cause the Closing to occur as promptly as practicable after the date hereof, including taking all reasonable actions necessary
to comply promptly with all legal requirements that may be imposed on it or any of its Affiliates with respect to the Closing
(it being understood that the failure of the Closing to occur shall not constitute a breach or default hereunder by any party
acting reasonably and in good faith in this context).

 

(b)          Before
the Closing each party hereto shall, and shall cause its Affiliates to, use all commercially reasonable efforts to obtain or file,
and to cooperate in obtaining or filing, all Consents from and all Filings with, third parties that are necessary or appropriate
to permit the consummation of the Transactions (including all Consents and Filings contemplated by Section 6.01 (Conditions
to Each Party’s Obligations)); provided, however, that no party hereto shall be required to pay or commit
to pay any amount to (or incur any obligation in favor of) any Person from whom any such Consent may be required (other than customary
filing fees payable to Governmental Entities, nominal filing or application fees payable to other third parties, and consent fees
of any third party that are not material in amount).

 

    	- 22 -

    	 

    
 

(c)          The
parties hereto shall use all reasonable efforts to obtain, as promptly as practicable following the date hereof, all Consents required
in connection with the execution and delivery of the Supplemental Indentures by the parties thereto. Without limiting the generality
of the foregoing, if a Trustee reasonably requests an opinion, as to such matters which the Trustee reasonably requests and is
entitled to request in such an opinion from the CDO Issuers pursuant to Section 8.3 of the applicable CDO Indentures in connection
with the execution by the Trustee of each Supplemental Indenture (other than as to any tax matters on which an opinion is required
pursuant to the Supplemental Indentures), Purchaser shall use all reasonable efforts to furnish to the Trustee an opinion of its
outside legal counsel, in form reasonably acceptable to the Trustee; provided that such opinion may expressly rely upon,
and is subject to the receipt by Purchaser of, the opinion of legal counsel to the Sellers described in Section 1.04(a)(xii).

 

(d)          Prior
to the Closing, if any Seller or its Affiliate desires to sell one or more interests in REO Holdcos or REO Property, the Sellers
shall by notice to Purchaser describe all material terms and conditions relating to such sale at least three (3) Business Days
prior to such sale.

 

Section
5.05 Expenses; Transfer Taxes. (a) Whether or not the Closing takes place, and
except as otherwise expressly set forth herein, all costs and expenses incurred in connection with this Agreement and the Transactions
shall be paid by the party incurring such expense. For the avoidance of doubt, the Sellers and their respective Affiliates shall
be responsible for all fees and expenses related to the transfer, assignment and delivery of the CDO REO Holdco Interests to the
applicable CDO Issuers; it being understood and agreed that the Sellers and their respective Affiliates shall be entitled to seek
to obtain reimbursement for such expenses and fees by the applicable CDO Issuers, to the extent permitted by the applicable CDO
Issuer’s Organizational Documents and CDO Indenture, prior to Closing (it being understood that the Sellers solely shall
determine such permissibility and process any such request prior to the Closing Date and that Purchaser shall have no obligation
to process any such request on or after the Closing Date).

 

(b)          All
transfer Taxes and transfer fees applicable to the Transactions (including any stock or asset transfer stamp Tax) shall be paid
by Purchaser. Each party shall use all reasonable efforts to avail itself of any available exemptions from any such Taxes or fees,
and to cooperate with the other parties in providing any information and documentation that may be necessary to obtain such exemptions.

 

Section
5.06 Brokers or Finders. Purchaser shall bear the fees and expenses of any agent,
broker, investment banker or other firm or Person engaged by Purchaser or any of its Affiliates that is entitled to any broker’s
or finder’s fee or any other commission or similar fee in connection with this Agreement, the Ancillary Agreements and any
transaction contemplated hereby and thereby. The Sellers shall bear the fees and expenses of any agent, broker, investment banker
or other firm or Person engaged by the Sellers or any of their Affiliates that is entitled to any broker’s or finder’s
fee or any other commission or similar fee in connection with this Agreement, the Ancillary Agreements and any transaction contemplated
hereby and thereby.

 

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Section
5.07 Post-Closing Cooperation. (a) The Sellers and Purchaser shall cooperate with
each other, and shall cause their Affiliates and their officers, employees, agents, auditors and Representatives to cooperate
with each other, for a period of ninety (90) days after the Closing to ensure the orderly transition of the Transferred Assets
from the Sellers to Purchaser; provided, however, that the employees that remain with the Sellers after such ninety
(90) day period, if any, shall continue to cooperate with Purchaser to ensure the orderly transition of the Transferred Assets
from the Sellers to Purchaser until the earlier of 180 days after the Closing or the termination of such employees by the Sellers.
After the Closing, upon reasonable written notice, each Seller and Purchaser shall furnish or cause to be furnished to each other
and their Affiliates, and their respective auditors and Representatives, access, during normal business hours, to such information
and assistance relating to the Transferred Assets (to the extent within the control of such party) as is reasonably necessary
for financial reporting, accounting and tax return preparation purposes.

 

(b)          Each
party hereto agrees that it shall, and that it will cause its Affiliates to, upon reasonable request by another party hereto, to
the extent (i) required by any subpoena or Judgment of any court or Governmental Entity and (ii) required or permitted under the
CDO Agreements (including Section 12(h) of the Existing Collateral Management Agreements), provide the requesting party with any
information and documents necessary to any Proceeding involving such requesting party and relating to or arising in connection
with any of the Assigned CDO Agreements, the other CDO Agreements, any of the CDO Issuer Assets or the Transactions; provided,
however, that no party is under any obligation to make available any current or former employees of such party or its Affiliates.

 

(c)          To
the extent not reimbursed or reimbursable under the Existing Collateral Management Agreements or the Amended and Restated CMAs,
each party shall reimburse the other for reasonable out-of-pocket costs and expenses incurred in assisting the other pursuant to
this Section 5.07 that have been previously approved by the reimbursing party. Neither party shall be required by this Section
5.07 to take any action that would unreasonably interfere with the conduct of the business of such party or its Affiliates
or unreasonably disrupt the normal operations of such party or its Affiliates. For the avoidance of doubt, any information relating
to the Transferred Assets received by any Seller pursuant to this Section 5.07 shall be subject to Section 5.03(b) (Confidentiality).

 

(d)          Each
Seller shall comply with any applicable post-termination or post-assignment provisions of the Assigned CDO Agreements and the Existing
Collateral Management Agreements, including Sections 12(g) and (h) of the Existing Collateral Management Agreements.

 

Section
5.08 Publicity. No public release or announcement concerning the Transactions
shall be issued by any party hereto without the prior written consent of the other parties hereto (which consent shall not be
unreasonably withheld, conditioned or delayed), except such release or announcement as may be required by Law or the rules or
regulations of any United States or foreign securities exchange, in which case the party required to make the release or announcement
shall allow the other party reasonable time to comment on such release or announcement in advance of such issuance.

 

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Section
5.09 Records. On the Closing Date, each Seller shall deliver or cause to be delivered
to Purchaser all material agreements, documents, books, records and files (collectively, “Records”), if any,
in the possession of such Seller relating to the Transferred Assets, subject to the following exceptions:

 

(a)          Purchaser
recognizes that certain Records may contain incidental information relating to the Transferred Assets or may relate primarily to
a Seller, and that such Seller may retain such Records and shall provide to Purchaser copies of the relevant portions thereof
that are relevant to the Transferred Assets or the Transactions;

 

(b)          any
Seller may retain all Records prepared in connection with the Transactions, including bids received from other parties and analyses
relating to the Transferred Assets, and may retain one copy of all documents made available to Purchaser in any physical or electronic
“data rooms”, management presentations or in any other form in expectation of the Transactions; and

 

(c)          any
Seller may retain any Tax Returns, and Purchaser shall be provided with copies of such Tax Returns that relate to the Transferred
Assets.

 

Section
5.10 Retained CDO Interests. (a) From and after the Closing through the date on
which each CDO Issuer has liquidated all of its assets, without the prior written consent of Purchaser (which consent shall not
be unreasonably withheld, conditioned or delayed), no Seller shall, and each Seller shall cause its Subsidiaries to not, and shall
require their respective successors and assigns to not, in their respective capacities as holders of Retained CDO Interests:

 

(i)          sell
or otherwise transfer or dispose of, or grant any proxy or other voting or consent right with respect to, any Retained CDO Interests
(other than any Secured CDO Notes) (“Restricted CDO Interests”) relating to such CDO Issuer; provided,
however, that, each Seller and its Subsidiaries may sell, transfer or dispose of any Restricted CDO Interests to any Person
in compliance with the applicable CDO Indenture without the prior written consent of Purchaser and without such transferee being
subject to this Section 5.10(a) if, in the case of any transfer that is effective during the period between the date that
is eighteen (18) months following the Closing Date and the three (3) year anniversary of the Closing Date, Sellers pay or cause
to be paid to Purchaser cash in the amount of $500,000 and (B) from time to time following the date that is the three (3) year
anniversary of the Closing Date, without any payment to Purchaser;

 

(ii)         seek
to (A) remove, or vote in favor of or consent to the removal of, Purchaser, CWCAM or its Affiliates as the collateral manager,
advancing agent or special servicer for such CDO Issuer or (B) vote in favor of an optional redemption or a tax redemption under
the CDO Indentures; provided, however, that the foregoing shall not apply to (x) any termination of the collateral
manager for an event of the type in Sections 12(b)(i), (ii), (iii), (iv) or (v) of the Amended and Restated CMAs or any similar
successor provision, or (y) any termination of the advancing agent for fraud, gross negligence or bankruptcy to the extent
permitted under any of the CDO Indentures; or

 

    	- 25 -

    	 

    
 

(iii)        take
any action that will result in any CDO Issuer failing to qualify as a QRS.

 

(b)          Upon
request by Purchaser at any time prior to Closing, the Sellers shall sell, transfer and assign, or cause to be sold, transferred
and assigned, to the applicable CDO Issuers or other Person designated by Purchaser, all the right, title and interest of the Sellers
and their respective Affiliates in and to the Seller Minority REO Holdco Interests upon terms and conditions reasonably satisfactory
to the Sellers; provided, however, that any lawful arrangement that has no adverse economic impact on the Sellers
or their respective Affiliates shall be deemed for the purposes of this Agreement to be reasonably satisfactory to the Sellers.

 

Section
5.11 Collateral Management. From and after the Closing through the date on which
each CDO Issuer has liquidated all of its assets to the extent that it is not prohibited from doing so pursuant to the Assigned
CDO Agreements, Purchaser shall, or shall require any entity designated by Purchaser to act as successor collateral manager, in
each case in compliance with the terms of the applicable Amended and Restated CMAs and CDO Agreements, to:

 

(a)          manage
the properties and assets of each CDO Issuer such that, provided such CDO Issuer continues to be a wholly-owned subsidiary of either
GIT or GIT II that would be treated as a QRS assuming that Purchaser fully complies with this Section 5.11, and provided
that any property with respect to which either GIT or GIT II has made an election to treat such property as foreclosure property
continues to qualify as foreclosure property:

 

(i)          (A)
except for income from assets that as of the Closing Date produce non-qualifying income for purposes of Section 856(c)(2) of the
Code, all of the income produced by each CDO Issuer is qualifying income for purposes of Section 856(c)(2) of the Code, (B) except
for dividends from taxable REIT subsidiaries and income from assets that as of the Closing Date produce non-qualifying income for
purposes of Section 856(c)(3) of the Code, all of the income produced by each CDO Issuer is qualifying income for purposes of Section
856(c)(3) of the Code, and (C) except for ownership interests in taxable REIT subsidiaries and any assets that as of the Closing
Date are non-qualifying assets for purposes of Section 856(c)(4)(A), all of the assets of each CDO Issuer are qualifying assets
for purposes of Section 856(c)(4)(A) of the Code; and

 

(ii)         GIT
or GIT II, as applicable, does not incur the 100% tax imposed on “prohibited transactions” by Section 857(b)(6) of
the Code;

 

(b)          inform
GIT, with respect to CDO 2005 and CDO 2006, or GIT II, with respect to CDO 2007, on a monthly basis of any loans as to which a
foreclosure proceeding has begun or the borrower has agreed to a deed in lieu of foreclosure;

 

(c)          provide
all relevant information reasonably requested by GIT or GIT II for so long as all of the equity of the CDO Issuers is held by GIT
or GIT II, as applicable, to allow GIT or GIT II, as applicable, to determine whether to make a foreclosure property election with
respect to any property acquired upon foreclosure of such loan or a taxable REIT subsidiary election with respect to an entity
formed to hold such a property;

 

    	- 26 -

    	 

    
 

(d)          upon
reasonable requests, cooperate with GIT or GIT II, as applicable, in GIT and GIT II, as the case may be, preserving its REIT status
and in making any foreclosure property election or taxable REIT subsidiary election; and

 

(e)          except
for (i) any property for which a foreclosure property election has been made that does not qualify as “foreclosure property”
of GIT or GIT II as of the date hereof or (ii) any foreclosure property for which the “grace period” of Section 856(e)(2)
of the Code expires, avoid any action that would result in a property for which a foreclosure property election has been made by
GIT or GIT II failing to qualify as “foreclosure property” within the meaning of Section 856(e) of the Code.

 

Section
5.12 GKKM Employees. Purchaser, at its option, may hold discussions with and offer
employment to employees of GKKM involved in the management of the Transferred Assets regarding potential employment opportunities
with Purchaser or its Affiliates. For the avoidance of doubt, Purchaser shall have no obligation whatsoever to hold any such discussions
or hire any employees of GKKM in connection with the Transactions or otherwise.

 

Section
5.13 Competing Proposals. During the period from the date of this Agreement until
the Outside Date, the Sellers shall not take, and nor shall the Sellers permit any of their respective Affiliates (or any Representative
of any of them) to, directly or indirectly, (i) enter into any Competing Proposal or accept any offer relating to or consummate
any Competing Proposal, or (ii) assist or participate in or facilitate in any other manner any effort or attempt by any Person
(other than Purchaser and its Affiliates) to enter into, offer or consummate any Competing Proposal (other than non-substantive
discussions confirming the details set forth in any press release or announcement made in accordance with Section 5.08 (Publicity)
that Sellers or their respective Affiliates (or any Representatives of any of them) may have with Persons that participated
in the process established by the Sellers prior to the date hereof for the sale of, amongst other things, the Transferred Assets).

 

Section
5.14 Pre-Closing Disclosure. Prior to Closing, (a) the Sellers shall promptly
upon having or gaining Knowledge of any event, condition or fact that (i) would cause any of the conditions to Purchaser’s
obligation to consummate the Transactions not to be fulfilled or (ii) if existing or occurring at the date hereof would have been
required to be disclosed in the Schedules, notify Purchaser thereof, and furnish Purchaser with any information it may reasonably
request with respect thereto, and (b) Purchaser shall promptly, upon having or gaining Knowledge of any event, condition or fact
that would cause any of the conditions to the Sellers’ obligation to consummate the Transactions not to be fulfilled, notify
the Sellers thereof, and furnish the Sellers with any information they may reasonably request with respect thereto.

 

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Section
5.15 Post-Closing Remittances. (a) On or after the Closing Date, if Purchaser
or its Affiliates receives any repayment or reimbursement of the Outstanding GLS Servicing Advance Amount, the Outstanding GKKL
Interest Advance Amount or the Outstanding GKKM Special Servicing Advance Amount, Purchaser shall or shall cause (i) all such
repayments or reimbursements of the Outstanding GKKL Interest Advance Amount actually received by Purchaser or its Affiliates
to be promptly paid-over and delivered directly to the Sellers and (ii) all such repayments or reimbursements of the Outstanding
GLS Servicing Advance Amount and the Outstanding GKKM Special Servicing Advance Amount actually received by Purchaser or its Affiliates
to be promptly paid-over and delivered directly to the Sellers, in each case, subject to the provisions of the Servicing Subordination
Agreement, in all cases unconditionally, without reduction, set-off or any other limitation, except as described herein, to a
bank account designated in writing by the Sellers, it being understood and agreed that Purchaser shall have no interest in or
right to any such repayment or reimbursement of the Outstanding GLS Servicing Advance Amount, the Outstanding GKKL Interest Advance
Amount and the Outstanding GKKM Special Servicing Advance Amount.

 

(b)          On
or after the Closing Date, if any Seller or any of their Affiliates receives any (i) collateral management fees or Advancing Agent
Fees (as defined in each CDO Indenture) pursuant to the Assigned CDO Agreements, (ii) reimbursement of Cure Advances (including
any Nonrecoverable Cure Advances and any interest thereon), Interest Advances (including any Nonrecoverable Advance and any interest
thereon) (each as defined in each CDO Indenture) or other amounts payable to Purchaser under the Assigned CDO Agreements, or (iii) Accrued
Servicing Fees or other special servicing fees, workout fees, liquidation fees or compensation due and payable to Purchaser or
Purchaser’s Affiliates or designees under the Servicing Documents, such Seller shall promptly pay-over and deliver or cause
to be paid-over and delivered directly to Purchaser all such fees, amounts and compensation as actually received by such Seller
or its Affiliates, in all cases unconditionally, without reduction, set-off or any other limitation, to a bank account designated
in writing by Purchaser, it being understood and agreed that the Sellers shall have no interest in or right to any such fees, amounts
or compensation.

 

(c)          Absent
manifest error and taking into account both earlier reports and any subsequent revisions to the reports produced pursuant to the
CDO Indentures, the CWCAM Special Servicing Agreement or the Situs Special Servicing Agreement, each party hereto agrees and acknowledges
that all amounts described in this Section 5.15 calculated based on such reports shall be conclusive.

 

Section
5.16 Further Assurances. From time to time, as and when requested by any party,
each party hereto shall execute and deliver, or cause to be executed and delivered, all such documents and instruments and shall
take, or cause to be taken, all such further or other actions (subject to Section 5.04 (Reasonable Efforts)), as the Sellers
(in the case of Purchaser) or Purchaser (in the case of the Sellers) may reasonably deem necessary or desirable to consummate
the Transactions or to carry out the purposes of this Agreement, including, in the case of the Sellers, executing and delivering
to Purchaser such assignments, deeds, bills of sale, consents and other instruments as Purchaser or its counsel may reasonably
request as necessary or desirable for such purpose. The Sellers shall, or shall cause the delivery of the requests for Rating
Agency Confirmation in accordance with the applicable terms of the CDO Agreements no later than two Business Days from the date
of this Agreement, provided that Purchaser shall have provided to the Sellers all information and documents required to be provided
by Purchaser in connection with such requests.

 

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ARTICLE VI

 

Conditions Precedent

 

Section
6.01 Conditions to Each Party’s Obligation. The obligation of Purchaser
and the Sellers to consummate the Transactions is subject to the satisfaction (or waiver by Purchaser and the Sellers) on or before
the Closing Date of the following conditions:

 

(a)          Approvals
and Notices. All Consents of and Filings with any Governmental Entity necessary for the consummation of each of the Transactions
shall have been obtained or filed, as applicable. All notices required to be given to any Person under the CDO Agreements in connection
with the Transactions shall have been given and any waiting periods applicable to such notices shall have expired without objection
and not withdrawn, to any of the Transactions by any Person whose Consent is required to consummate such Transactions.

 

(b)          No
Injunctions, Restraints or Proceedings. No Law or Judgment enacted, entered, promulgated, enforced or issued by any Governmental
Entity or other legal restraint or prohibition preventing the consummation of any of the Transactions shall be in effect. No Proceeding
challenging or seeking to restrain or prohibit the consummation of any of the Transactions shall be pending or threatened.

 

(c)          Consents
of the CDO Issuers. Each CDO Issuer shall have executed and delivered each CDO Issuer Consent.

 

(d)          Consents
of the Majority of the Controlling Class. With respect to each CDO Issuer, a Majority of the Controlling Class shall have provided
each Controlling Class Consent.

 

(e)          Consents
of the Hedge Counterparties. With respect to each CDO Issuer (other than CDO Issuer 2007), each Hedge Counterparty shall have
provided each Hedge Counterparty Consent.

 

(f)          Rating
Agency Confirmation. With respect to each CDO Issuer, each Rating Agency shall have provided each Rating Agency Confirmation.

 

(g)          Other
Deliveries. Each of the Persons (other than the parties to this Agreement and their respective Affiliates) that are or will
be parties or signatories to the agreements, letters, waivers and consents (or counterparts thereto) described in Section 1.04
(Transactions to be Effected at the Closing) shall have executed and delivered such agreements, letters, waivers and consents
(or counterparts thereto) (including, without limitation, the execution and delivery by the Trustee of each Supplemental Indenture).

 

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Section
6.02 Conditions to Obligation of Purchaser. The obligation of Purchaser to consummate
the Transactions is subject to the satisfaction (or waiver by Purchaser) on or before the Closing Date of the following conditions:

 

(a)          Representations
and Warranties. The representations and warranties of the Sellers herein qualified as to materiality or a material adverse
effect shall be true and correct, and those not so qualified shall be true and correct in all material respects (i) on and as of
the date of this Agreement and (ii) on and as of the Closing Date as though made by the Sellers on the Closing Date, except to
the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties
shall be true and correct on and as of such earlier date). Purchaser shall have received a certificate signed by an officer on
behalf of each Seller to the effect that the conditions in the preceding sentence have been complied with.

 

(b)          Performance
of Obligations of Sellers. Each Seller shall have performed or complied in all material respects with all obligations and covenants
required by this Agreement to be performed or complied with by such Seller on or before the Closing Date; provided, that,
with respect to the obligations and covenants required to be performed or complied with by the Sellers pursuant to Section 1.04(a),
the Sellers shall have performed such obligations and covenants as specified therein, and Purchaser shall have received a certificate
signed by an officer on behalf of each such Seller to the effect that the conditions in this Section 6.02(b) have been complied
with.

 

(c)          Waiver
Letters. (i) With respect to CDO Issuer 2007, the CDO Issuer 2007 Waiver Letters shall have been executed and delivered and
(ii) with respect to CDO Issuer 2007 and CDO Issuer 2006, the CDO Issuer 2006 and CDO Issuer 2007 CMA Waiver Letter shall have
been executed and delivered.

 

(d)          Absence
of Certain Changes. Since the date hereof, there has not occurred any event, occurrence or development within the reasonable
control of the Sellers and its Affiliates that, individually or in the aggregate, constitutes or could reasonably be expected to
constitute cause for removal or termination of any collateral manager, advancing agent, servicer, special servicer or sub-special
servicer of any CDO Issuer under the CDO Agreements.

 

Section
6.03 Conditions to Obligation of Sellers. The obligation of the Sellers to consummate
the Transactions is subject to the satisfaction (or waiver by the Sellers) on or before the Closing Date of the following conditions:

 

(a)          Representations
and Warranties. The representations and warranties of Purchaser made herein qualified as to materiality or a material adverse
effect shall be true and correct, and those not so qualified shall be true and correct in all material respects (i) on and as of
the date of this Agreement and (ii) on and as of the Closing Date as though made by Purchaser on the Closing Date, except to the
extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties
shall be true and correct on and as of such earlier date). The Sellers shall have received a certificate signed by an officer on
behalf of Purchaser to the effect that the conditions in the preceding sentence have been complied with.

 

    	- 30 -

    	 

    
 

(b)          Performance
of Obligations of Purchaser. Purchaser shall have performed or complied in all material respects with all obligations and covenants
required by this Agreement to be performed or complied with by Purchaser on or before the Closing Date, and the Sellers shall have
received a certificate signed by an officer on behalf of Purchaser to the effect that the conditions in this Section 6.03(b)
have been complied with.

 

Section
6.04 Frustration of Closing Conditions. Neither Purchaser nor any Seller may rely
on the failure of any condition set forth in this Article VI to be satisfied if such failure was caused by such party’s
failure to act in good faith or reasonably in the context of the Transactions.

 

ARTICLE VII

 

Termination, Amendment and Waiver

 

Section
7.01 Termination. (a) Notwithstanding anything to the contrary herein, this Agreement
may be terminated and the Transactions abandoned at any time before the Closing:

 

(i)          by
mutual written consent of the Sellers and Purchaser;

 

(ii)         by
the Sellers if there have been one or more material breaches by Purchaser of any of its representations, warranties, covenants
or agreements contained herein or in any Ancillary Agreement that have not been waived by the Sellers and would result in the failure
to satisfy any of the conditions set forth in (x) Section 6.01 (Conditions to Each Party’s Obligation) or (y) Section
6.03 (Conditions to Obligations of Sellers) and such breaches have not been cured within thirty (30) days after written notice
thereof has been received by Purchaser; provided, in each case that no Seller is in material breach of any of its representations,
warranties, covenants or agreements contained herein or in any Ancillary Agreement;

 

(iii)        by
Purchaser if there have been one or more material breaches by the Sellers of any of their representations, warranties, covenants
or agreements contained herein or in any Ancillary Agreement that have not been waived by Purchaser and would result in the failure
to satisfy any of the conditions set forth in (x) Section 6.01 (Conditions to Each Party’s Obligation) or (y) Section
6.02 (Conditions to Obligations of Purchaser) and such breaches have not been cured within thirty (30) days after written notice
thereof has been received by the Sellers; provided, in each case that Purchaser is not in material breach of any of its
representations, warranties, covenants or agreements contained herein or in any Ancillary Agreement; and

 

(iv)        by
the Sellers or Purchaser, if the Closing does not occur on or before March 15, 2013 (the “Outside Date”); provided,
however, that the Sellers or Purchaser shall not be permitted to terminate this Agreement pursuant to this Section 7.01(a)(iv)
if the failure to consummate the Closing by such date results solely from material breach by any Seller (in the case of termination
by the Sellers) or Purchaser (in the case of termination by Purchaser) of any of its representations, warranties, covenants or
agreements contained herein or in any Ancillary Agreement.

 

    	- 31 -

    	 

    
 

(b)          In
the event of termination by the Sellers or Purchaser pursuant to this Section 7.01, written notice thereof shall forthwith
be given to the other, setting forth the clause of Section 7.01(a) pursuant to which such party is terminating and the facts
giving rise to such party’s termination right in reasonable detail, and the Transactions shall be terminated, without further
action by any party. If the Transactions are terminated as provided herein:

 

(i)          Purchaser
shall return all documents and other material received from any Seller relating to the Transactions, whether so obtained before
or after the execution hereof, to such Seller; provided, however, that, solely for purposes of asserting or protecting
its rights under this Agreement and complying with any applicable document retention requirements, Purchaser may retain one copy
of all documents made available to Purchaser in any physical or electronic “data rooms”, management presentations or
in any other form in expectation of the Transactions; provided further, however, that Purchaser may retain
such copies of all documents made available to Purchaser in any physical or electronic “data rooms”, management presentations
or in any other form in expectation of the Transactions as is necessary for Purchaser to comply with applicable Law or its internal
compliance rules or procedures;

 

(ii)         all
confidential information made available to Purchaser in connection with the transactions contemplated by this Agreement shall be
treated in accordance with the Confidentiality Agreement, which shall remain in full force and effect notwithstanding the termination
hereof;

 

(iii)        if
termination occurs pursuant to clause (i) of Section 7.01(a), then Purchaser and the Sellers shall jointly instruct the
Escrow Agent to deliver to Purchaser by wire transfer to a bank account designated in writing by Purchaser, immediately available
funds in an amount equal to the Escrowed Funds;

 

(iv)        if
termination occurs pursuant to clause (ii) of Section 7.01(a), then Purchaser and the Sellers shall jointly instruct the
Escrow Agent to deliver to the Sellers, by wire transfer to a bank account designated in writing by the Sellers, immediately available
funds in an amount equal to the Escrowed Funds;

 

(v)         if
termination occurs pursuant to clause (iii) of Section 7.01(a), then (A) Purchaser and the Sellers shall jointly instruct
the Escrow Agent to deliver to Purchaser by wire transfer to a bank account designated in writing by Purchaser, immediately available
funds in an amount equal to the Escrowed Funds, and (B) the Sellers shall promptly pay to Purchaser, by wire transfer to a bank
account designated in writing by Purchaser, immediately available funds in an amount equal to $1,000,000; and

 

(vi)        if
termination occurs pursuant to clause (iv) of Section 7.01(a), then Purchaser and the Sellers shall jointly instruct the
Escrow Agent to deliver to Purchaser, by wire transfer to a bank account designated in writing by Purchaser, immediately available
funds in an amount equal to the Escrowed Funds.

 

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Section
7.02 Effect of Termination. If this Agreement is terminated and the Transactions
are abandoned as described in Section 7.01 (Termination), then, subject to the next succeeding sentence, this Agreement
shall become null and void and of no further force and effect, and all further obligations of the parties under this Agreement
will terminate, except as otherwise set forth in this Section 7.02 and except for Section 5.03 (Confidentiality),
Section 5.05 (Expenses; Transfer Taxes), Section 5.06 (Brokers or Finders), Section 5.08 (Publicity), Section
7.01 (Termination), this Section 7.02 and Article X (General Provisions). Nothing in this Section 7.02
shall be deemed to release any party from any liability for fraud or any breach by such party and of its covenants or agreements
set forth herein, and the rights of the parties to pursue all remedies for any such fraud or breach will survive such termination
unimpaired. Each party’s right of termination under Section 7.01 is in addition to any other rights it may have under
this Agreement or otherwise, and the exercise of a right of termination will not be an election of remedies. Notwithstanding anything
to the contrary contained herein, if Closing does not occur, the sole and exclusive remedy of a party entitled to terminate this
Agreement pursuant to clauses (ii) or (iii) of Section 7.01(a) shall be (i) the termination of this Agreement in accordance
with such provision, and (ii) the payment of the amounts that are due to such terminating party pursuant to clauses (iv) or (v)
of Section 7.01(b), as applicable.

 

Section
7.03 Amendments and Waivers. This Agreement may not be amended except by an instrument
in writing signed on behalf of each of the parties hereto. By an instrument in writing Purchaser, on the one hand, or the Sellers,
on the other hand, may waive compliance by the other with any term or provision hereof that such other party was or is obligated
to comply with or perform. No delay or omission by any party hereto to exercise any right or power under this Agreement or pursuant
to Law shall impair such right or power or be construed as a waiver thereof. A waiver by either party of any representation, warranty,
covenant or condition shall not be construed to be a waiver of any succeeding breach or of any other representation, warranty,
covenant or condition.

 

ARTICLE VIII

 

[RESERVED]

 

ARTICLE IX

 

Indemnification

 

Section
9.01 Indemnification by Seller Indemnifying Parties. (a) From and after the Closing,
the Seller Indemnifying Parties, jointly and severally, shall be liable for, and shall indemnify Purchaser, its Affiliates and
each of their Representatives (the “Purchaser Indemnitees”) against and hold it harmless from, any loss, liability,
claim, damage, cost or expense (but excluding any incidental, special, indirect, consequential or punitive damages, except to
the extent actually paid to a third party), including reasonable legal fees and expenses (collectively, “Losses”),
suffered or incurred by such Purchaser Indemnitee to the extent arising out of, in each case except to the extent waived or deemed
waived by Purchaser in accordance with, this Agreement:

 

    	- 33 -

    	 

    
 

(i)          any
breach of any representation or warranty of any Seller contained herein, in any Ancillary Agreement or any certificate delivered
pursuant hereto or thereto;

 

(ii)         any
breach of any covenant of any Seller contained herein or in any Ancillary Agreement; and

 

(iii)        any
Retained Liabilities.

 

(b)          Notwithstanding
Section 9.01(a), the Seller Indemnifying Parties shall not be required to indemnify any Purchaser Indemnitee, and shall
not have any liability:

 

(i)          under
clause (i) of Section 9.01(a) unless the aggregate of all Losses for which the Seller Indemnifying Parties would, but for
this clause (i), be liable thereunder exceeds on a cumulative basis an amount equal to $200,000 (the “Aggregate Threshold”),
in which event Purchaser Indemnitees shall be entitled to all Losses including those used in calculating the Aggregate Threshold;
provided, however, that the Aggregate Threshold shall not apply to any breach of the Fundamental Representations
of the Sellers;

 

(ii)         under
clause (i) of Section 9.01(a) for any individual items where the Loss relating thereto is less than $15,000 (the “Claim
Threshold”) and such items shall not be aggregated for purposes of clause (i) of this Section 9.01(b);

 

(iii)        under
clause (i) of Section 9.01(a) in excess of $4,950,000 (the “Cap”); provided, however, that
the Cap shall not apply to any breach of the Fundamental Representations of the Sellers; and

 

(iv)        under
clause (i) (including with respect to Fundamental Representations) and, solely in respect of covenants to be performed prior to
Closing, clause (ii) of Section 9.01(a), in excess of $9,900,000 (the “Overall Cap”);

 

provided, however, that the
limitations set forth in this clause (b) shall not apply to any claims of, or causes of action arising out of, fraud.

 

(c)          Except
with respect to claims of, or causes of action arising out of, involving criminal activity or fraud in connection with this Agreement,
and subject to Section 10.09 (Enforcement), (i) Purchaser acknowledges that its sole and exclusive remedy after the Closing
with respect to any and all claims relating to this Agreement, the Ancillary Agreements, and the Transactions shall be pursuant
to the indemnification provisions set forth in this Article IX and (ii) in furtherance of the foregoing, Purchaser hereby
waives, from and after the Closing, to the fullest extent permitted under Law, any and all rights, claims and causes of action
it may have against any Seller Indemnifying Party arising out of this Agreement, any Ancillary Agreement, any certificate delivered
pursuant hereto or thereto, any Law (including any relating to environmental matters) or otherwise (except pursuant to the indemnification
provisions set forth in this Section 9.01).

 

    	- 34 -

    	 

    
 

(d)          For
purposes only of calculating the amount of Losses under this Article IX, but not for purposes of determining whether any
Person is entitled to a claim for Losses arising out of an inaccuracy in or breach of any representation or warranty, such representations
and warranties shall be deemed to have been made without any qualifications as to materiality and, accordingly, for such purpose,
all references to “material”, “materiality”, “material adverse effect” or other similar qualification
as to materiality contained in or otherwise applicable to such representation or warranty shall be deemed to be deleted from such
representations and warranties.

 

Section
9.02 Indemnification by Purchaser Indemnifying Parties. (a) From and after the
Closing, the Purchaser Indemnifying Parties, jointly and severally, shall be liable for and shall indemnify each Seller and its
Affiliates and each of their respective Representatives (the “Seller Indemnitees”) against and hold it harmless
from any Loss suffered or incurred by such Seller Indemnitee to the extent arising out of, in each case except to the extent waived
or deemed waived by the Sellers in accordance with, this Agreement:

 

(i)          any
breach of any representation or warranty of Purchaser contained herein, in any Ancillary Agreement or any certificate delivered
pursuant hereto or thereto;

 

(ii)         any
breach of any covenant of Purchaser contained herein or in any Ancillary Agreement requiring performance after the Closing Date;
and

 

(iii)        any
Assumed Liabilities.

 

(b)          Notwithstanding
Section 9.02(a), the Purchaser Indemnifying Parties shall not be required to indemnify any Seller Indemnitee, and shall
not have any liability:

 

(i)          under
clause (i) of Section 9.02(a) unless the aggregate of all Losses for which the Purchaser Indemnifying Parties would, but
for this clause (i), be liable thereunder exceeds on a cumulative basis an amount equal to the Aggregate Threshold, in which event
Seller Indemnitees shall be entitled to all Losses including those used in calculating the Aggregate Threshold; provided,
however, that the Aggregate Threshold shall not apply to any breach of the Fundamental Representations of Purchaser;

 

(ii)         under
clause (i) of Section 9.02(a) for any individual items where the Loss relating thereto is less than Claim Threshold and
such items shall not be aggregated for purposes of clause (i) of this Section 9.02(a);

 

(iii)        under
clause (i) of Section 9.02(a) in excess of the Cap; provided, however, that the Cap shall not apply to any
breach of the Fundamental Representations of Purchaser; and

 

(iv)        under
clause (i) (including with respect to Fundamental Representations) and, solely in respect of covenants to be performed prior to
Closing, clause (ii) of Section 9.02(a), in excess of the Overall Cap;

 

provided, however, that the
limitations set forth in this clause (b) shall not apply to any claims of, or causes of action arising out of, fraud.

 

    	- 35 -

    	 

    
 

(c)          Except
with respect to claims of, or causes of action arising out of, involving criminal activity or fraud in connection with this Agreement,
and subject to Section 10.09 (Enforcement), (i) the Sellers acknowledge that their sole and exclusive remedy after the Closing
with respect to any and all claims relating to this Agreement, the Ancillary Agreements, and the Transactions shall be pursuant
to the indemnification provisions set forth in this Article IX and (ii) in furtherance of the foregoing, each Seller hereby
waives, from and after the Closing, to the fullest extent permitted under Law, any and all rights, claims and causes of action
it may have against any Purchaser Indemnifying Party arising out of, involving or otherwise in respect of this Agreement, any Ancillary
Agreement, any certificate delivered pursuant hereto or thereto, any Law (including any relating to environmental matters) or otherwise
(except pursuant to the indemnification provisions set forth in this Section 9.02).

 

Section
9.03 Calculation of Losses. The amount of any Loss for which indemnification is
provided under this Article IX shall be net of any amounts recovered or recoverable by the Indemnified Party under any
insurance policy or against any third party with respect to such Loss.

 

Section
9.04 Survival of Representations, Warranties, Covenants and Agreements; Termination of Indemnification.
(a) The representations, warranties, covenants and agreements contained herein, in any Ancillary Agreement and in any certificate
delivered pursuant hereto or thereto shall survive the Closing solely for purposes of this Article IX as follows: (i) the
Fundamental Representations shall survive indefinitely following the Closing; (ii) all other representations and warranties shall
survive for two (2) years following the Closing; and (iii) all covenants shall survive the Closing and terminate upon the expiration
of the applicable statute of limitations following the time at which such covenants are required to be performed.

 

(b)          The
obligations to indemnify and hold harmless any party (i) pursuant to Section 9.01(a)(i) (Indemnification by Seller Indemnifying
Parties) or 9.02(a)(i) (Indemnification by Purchaser Indemnifying Parties) shall terminate when the applicable representation
or warranty terminates in accordance with this Section 9.04, and (ii) pursuant to Section 9.01(a)(ii) (Indemnification
by Seller Indemnifying Parties) or 9.02(a)(ii) (Indemnification by Purchaser Indemnifying Parties) shall terminate when
the applicable covenant terminates in accordance with this Section 9.04 and (iii) pursuant to the other clauses of Section
9.01(a) (Indemnification by Seller Indemnifying Parties) or Section 9.02(a) (Indemnification by Purchaser Indemnifying Parties)
shall not terminate; provided, however, that such obligations to indemnify and hold harmless shall not terminate
with respect to any item as to which the Indemnified Party shall have, before the expiration of the applicable period, made a claim
by delivering a notice of such claim in accordance with Section 9.05 (Procedures) to the Indemnifying Party.

 

Section
9.05 Procedures. (a) Third Party Claims. In order for a Person (the “Indemnified
Party”) to be entitled to any indemnification provided for under Section 9.01 (Indemnification by Seller Indemnifying
Parties) or Section 9.02 (Indemnification by Purchaser Indemnifying Parties) in respect of, arising out of or involving
a claim made by any Person not a party hereto against the Indemnified Party (a “Third Party Claim”), such Indemnified
Party must notify the indemnifying party (the “Indemnifying Party”) and the Escrow Agent in writing of such
Third Party Claim (setting forth in reasonable detail the facts giving rise to such Third Party Claim (to the extent known by
the Indemnified Party) and the amount or estimated amount (to the extent reasonably estimable) of Losses arising out of such Third
Party Claim) promptly following receipt by such Indemnified Party of notice of such Third Party Claim; provided, however,
that, subject to Section 9.04 (Survival of Representations, Warranties, Covenants and Agreements; Termination of Indemnification),
failure to give such notification promptly shall not affect the indemnification provided hereunder except to the extent that the
Indemnifying Party shall have been prejudiced as a result of such failure. Thereafter, the Indemnified Party shall deliver to
the Indemnifying Party, promptly following the Indemnified Party’s receipt thereof, copies of all notices and documents
(including court papers) received by the Indemnified Party relating to the Third Party Claim.

 

    	- 36 -

    	 

    
 

(b)          Assumption.
If a Third Party Claim is made against an Indemnified Party, the Indemnifying Party shall be entitled to participate in the defense
thereof and, if it so chooses, to assume the defense thereof with counsel selected by the Indemnifying Party; provided,
however, that such counsel is not reasonably objected to by the Indemnified Party. If the Indemnifying Party assumes the
defense of a Third Party Claim in accordance with this Section 9.05(b), the Indemnifying Party shall not be liable to the
Indemnified Party for any legal expenses subsequently incurred by the Indemnified Party in connection with the defense thereof.
If the Indemnifying Party assumes the defense of a Third Party Claim in accordance with this Section 9.05(b), the Indemnified
Party shall have the right to participate in the defense thereof and to employ counsel (not reasonably objected to by the Indemnifying
Party), at its own expense, separate from the counsel employed by the Indemnifying Party, it being understood that the Indemnifying
Party shall control such defense. If the Indemnifying Party chooses to defend or prosecute a Third Party Claim, all the Indemnified
Parties shall cooperate in the defense or prosecution thereof. Such cooperation shall include the retention and (upon the Indemnifying
Party’s request) the provision to the Indemnifying Party of records and information that are reasonably relevant to such
Third Party Claim, and making employees available at such times and places as may be reasonably necessary to defend against such
Third Party Claim for the purpose of providing additional information, explanation or testimony in connection with such Third Party
Claim. Whether or not the Indemnifying Party assumes the defense of a Third Party Claim, the Indemnified Party shall not admit
any liability with respect to, or settle, compromise or discharge, such Third Party Claim without the Indemnifying Party’s
prior written consent. If the Indemnifying Party assumes the defense of a Third Party Claim, the Indemnifying Party shall defend
such Third Party Claim vigorously and diligently to final conclusion or settlement of such Third Party Claim; provided that
the Indemnifying Party shall not settle such Third Party Claim without the consent of the Indemnified Party unless such settlement
(i) does not involve any finding or admission of any violation of Law or any violation of the rights of any Indemnified Party
and (ii) does not involve any relief other than monetary damages that are paid in full by the Indemnifying Party. Notwithstanding
the foregoing, the Indemnifying Party shall not have the right to assume the defense of any Third Party Claim if (i) the Indemnifying
Party is also a party to such Third Party Claim and the Indemnified Party provides the Indemnifying Party with written advice of
outside counsel to the Indemnified Party to the effect that there are or may be one or more legal defenses available to the Indemnified
Party that are different from or additional to those available to the Indemnifying Party that, if the Indemnified Party and the
Indemnifying Party were to be represented by the same counsel, would constitute a conflict of interest for such counsel or prejudice
the prosecution of the defenses available to such Indemnified Party, (ii) such Third Party Claim is reasonably likely to result
in Losses being sustained by the Indemnified Party that are beyond the scope or limits of the indemnification obligation of the
Indemnifying Party or (iii) such Third Party Claim seeks solely injunctive or other equitable relief (and only nominal monetary
damages) against the Indemnified Party.

 

    	- 37 -

    	 

    
 

(c)          Other
Claims. In the event any Indemnified Party has a claim against any Indemnifying Party under Section 9.01 (Indemnification
by Seller Indemnifying Parties) or Section 9.02 (Indemnification by Purchaser Indemnifying Parties) that does not involve
a Third Party Claim (a “Direct Claim”), the Indemnified Party shall deliver notice of such Direct Claim to the
Indemnifying Party and the Escrow Agent (setting forth in reasonable detail the facts giving rise to such claim (to the extent
known by the Indemnified Party) and the amount or estimated amount (to the extent reasonably estimable) of Losses arising out of
such Direct Claim) promptly after becoming aware of such claim. Following receipt of notice from the Indemnified Party of such
Direct Claim, the Indemnifying Party shall have thirty (30) days to make such investigation of the Direct Claim as is considered
necessary or desirable by the Indemnifying Party. For the purpose of such investigation, the Indemnified Party shall promptly make
available to the Indemnifying Party the information relied upon by the Indemnified Party to substantiate the Direct Claim, together
with all such other information as the Indemnifying Party may reasonably request, in each case other than privileged documents
and subject to the Indemnifying Party’s agreement to keep such information confidential. If both parties agree at or prior
to the expiration of such thirty (30) day period (or any mutually agreed upon extension of such period) to the validity of such
Direct Claim and the amount of Losses related thereto, the Indemnifying Party shall, subject to Section 9.07, promptly pay
to the Indemnified Party the full agreed-upon amount of such Losses. If the parties do not reach agreement at or prior to the expiration
of such thirty (30) day period (or any mutually agreed upon extension of such period) as to the validity of such Direct Claim or
the amount of Losses related thereto, either party may initiate an action in accordance with Section 10.10.

 

(d)          Mitigation.
Each Person entitled to indemnification hereunder shall be required to take only such steps as are required by applicable Law to
mitigate any losses, costs, expenses and damages that are indemnifiable or recoverable hereunder or in connection herewith.

 

Section
9.06 No Additional Representations. Purchaser acknowledges that (i) none of the
Seller Indemnifying Parties or any other Person has made any representation or warranty, express or implied, as to the Transferred
Assets and the CDO Issuers, or the accuracy or completeness of any information regarding the Transferred Assets and the CDO Issuers,
furnished or made available to Purchaser and its Representatives, except as expressly set forth in this Agreement and the certificates
delivered pursuant hereto, (ii) Purchaser has not relied on any representation or warranty from any Seller Indemnifying Party
or any other Person in determining to enter into this Agreement or any Ancillary Agreement, except as expressly set forth in this
Agreement and the certificates delivered pursuant hereto, and (iii) except as expressly provided herein, none of the Seller Indemnifying
Parties or any other Person shall have or be subject to any liability to Purchaser or any other Person resulting from the distribution
to Purchaser, or Purchaser’s use of, any such information, including any information, documents or material made available
to Purchaser in any physical or electronic “data rooms”, management presentations or in any other form in expectation
of the Transactions. Purchaser acknowledges that, if the Closing occurs, Purchaser shall acquire the Transferred Assets without
any representation or warranty as to merchantability or fitness for any particular purpose, in an “as is” condition
and on a “where is” basis, except as otherwise expressly set forth in this Agreement, the Ancillary Agreements and
the certificates delivered pursuant hereto and thereto. No Seller Indemnifying Party makes or has made any representation or warranty
regarding the presence or absence of hazardous substances on, under or about any property, the compliance or non-compliance of
any property with any legal requirements regarding hazardous substances or any other environmental matters. Without limiting the
generality of the foregoing, Purchaser acknowledges that none of the Seller Indemnifying Parties or any other Person has made
any representation or warranty, express or implied, as to the financial projections, forecasts, cost estimates and other predictions
delivered or made available to Purchaser and its Representatives, including with respect to the Transferred Assets and the CDO
Issuers.

 

    	- 38 -

    	 

    
 

Section
9.07 Release from Escrow. At the Closing, Purchaser and the Sellers shall jointly
instruct the Escrow Agent to pay to the Sellers, by wire transfer to an account designated in writing by the Sellers, the Escrowed
Funds.

 

Section
9.08 Tax Treatment of Indemnity Payments. All indemnity payments under this Agreement
shall be treated as an adjustment to the Purchase Price for federal income tax purposes.

 

ARTICLE X

 

General Provisions

 

Section
10.01 Assignment. This Agreement and the rights and obligations hereunder shall
not be assignable or transferable by any party without the prior written consent of the other parties hereto. Any attempted assignment
in violation of this Section 10.01 shall be void.

 

Section
10.02 No Third-Party Beneficiaries. This Agreement is for the sole benefit of
the parties hereto and their permitted assigns and nothing herein expressed or implied shall give or be construed to give to any
Person, other than the parties hereto and such assigns, any legal or equitable rights hereunder other than any Person entitled
to indemnity under Article IX (Indemnification).

 

Section
10.03 [RESERVED].

 

Section
10.04 Notices. All notices or other communications required or permitted to be
given hereunder shall be in writing and shall be delivered by hand or sent by facsimile or sent, postage prepaid, by registered,
certified or express mail or overnight courier service and shall be deemed given when so delivered by hand or facsimile, or if
mailed, three days after mailing (one Business Day in the case of express mail or overnight courier service), as follows:

 

		(i)	if to Purchaser:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Charles Spetka

Facsimile: (301) 255-4874

 

    	- 39 -

    	 

    
 

with a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Legal Department

Facsimile: (301) 255-4874

 

and

 

Clifford Chance US LLP

31 West 52nd Street

New York, NY 10019

Attention: Steven T. Kolyer

Facsimile: (212) 878-8375

 

		(ii)	if to CWFS:

 

CW Financial Services LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Charles Spetka

Facsimile: (301) 255-4874

 

with a copy to:

 

CW Financial Services LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Legal Department

Facsimile: (301) 255-4874

 

and

 

Clifford Chance US LLP

31 West 52nd Street

New York, NY 10019

Attention: Steven T. Kolyer

Facsimile: (212) 878-8375

 

    	- 40 -

    	 

    
 

		(iii)	if to any Seller, to such
Seller:

 

c/o Gramercy Capital Corp.

420 Lexington Avenue, 18th Floor

New York, NY 10170

Attention: Michael Kavourias and Edward J. Matey Jr.

Facsimile: (646) 428-0761

 

with a copy to:

 

Sidley Austin llp

787 Seventh Avenue

New York, NY 10019

Attention: Carlos A. Rodriguez

Facsimile: (212) 839-5599

 

		(iv)	if to GCC:

 

Gramercy Capital Corp.

420 Lexington Avenue, 18th Floor

New York, NY 10170

Attention: Michael Kavourias and Edward J. Matey Jr.

Facsimile: (646) 428-0761

 

with a copy to:

 

Sidley Austin llp

787 Seventh Avenue

New York, NY 10019

Attention: Carlos A. Rodriguez

Facsimile: (212) 839-5599

 

Section
10.05 Interpretation; Exhibits and Schedules; Certain Definitions. The headings
contained herein and in any Exhibit or Schedule hereto, the table of contents hereto and the index of defined terms are for reference
purposes only and shall not affect in any way the meaning or interpretation hereof. Any disclosure set forth in any Schedule shall
be deemed set forth for purposes of any other Schedule to which such disclosure is relevant, to the extent that it is readily
apparent that such disclosure is relevant to such other Schedule. All Exhibits and Schedules annexed hereto or referred to herein
are hereby incorporated in and made a part hereof as if set forth in full herein. Any capitalized terms used in any Schedule or
Exhibit, but not otherwise defined therein, shall have the meaning as defined herein. When a reference is made herein to a Section,
Exhibit or Schedule, such reference shall be to a Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated.
Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein
means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of
agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and
references to all attachments thereto and instruments incorporated therein. If any action is to be taken by any party hereto pursuant
to this Agreement on a day that is not a Business Day, such action shall be taken on the next Business Day following such day.
References to a person are also to its permitted successors and assigns. For all purposes of this Agreement, unless otherwise
specified herein, (i) “or” shall be construed in the inclusive sense of “and/or”; (ii) words (including
capitalized terms defined herein) in the singular shall be construed to include the plural and vice versa and words (including
capitalized terms defined herein) of one gender shall be construed to include the other gender as the context requires; (iii)
the terms “hereof” and “herein” and words of similar import shall be construed to refer to this Agreement
as a whole (including all the Exhibits and Schedules) and not to any particular provision of this Agreement; and (iv) all references
herein to “$” or dollars shall refer to United States dollars.

 

    	- 41 -

    	 

    
 

(a)          For
all purposes hereof:

 

“Advancing Agent”
has the meaning specified in the CDO Indentures.

 

“Advisers Act”
means the Investment Advisers Act of 1940, as amended, together with the rules and regulations of the SEC promulgated thereunder.

 

“Affiliate”
of any Person means another Person that directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with, such first Person. For purposes of this definition, the term “control” (including
its correlative meanings “controlled by” and “under common control with”) means possession, directly or
indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership
or other ownership interests, by contract or otherwise). For purposes of this Agreement, the CDO Issuers are not Affiliates of
any of the Sellers.

 

“Ancillary Agreements”
means (i) each Assignment and Assumption Agreement, (ii) the Sub-Special Servicing Termination Letter, (iii) each CDO Issuer Consent,
(iv) each Controlling Class Consent, (v) the CDO Issuer 2007 Waiver Letters, (vi) the CDO Issuer 2006 Consent Letter, (vii) the
CDO Issuer 2006 and CDO Issuer 2007 CMA Waiver Letter, (viii) the CDO Issuer 2005 Consent Letter, (ix) the CDO Issuers Letter Agreement,
(x) the Escrow Agreement, (xi) the Green Termination Agreement, (xii) the Servicing Subordination Agreement, (xiii) the Advancing
Agent Appointment Letter, (xiv) the CWCAM Special Servicing Agreement, (xv) each Amended and Restated CMA, (xvi) each Supplemental
Indenture, and (xvii) the Hedge Counterparty Consents.

 

“Business Day”
means any day, other than a Saturday or a Sunday, that is neither a legal holiday nor a day on which banking institutions are generally
authorized or required by law or regulation to close in The City of New York, New York.

 

“CDO Issuer
Assets” means the Assets of each CDO Issuer as defined in the applicable CDO Indenture.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Competing Proposal”
means any inquiry or proposal or termination of this Agreement relating to a sale or transfer of the Assigned CDO Agreements or
the Accrued Servicing Fees (or any interest therein) that would impede, prevent or be inconsistent with consummation of the Transactions.

 

    	- 42 -

    	 

    
 

“Fundamental
Representations” means (i) the representations and warranties of Sellers set forth in Sections 2.01 (Organization,
Standing and Power), 2.02 (Authority; Execution and Delivery; Enforceability), 3.06(a)(B) (Servicing, Advancing and
Related Matters) and 3.07 (Taxes) and (ii) the representations and warranties of Purchaser set forth in Sections
4.01 (Organization, Standing and Power), and 4.02 (Authority; Execution and Delivery; Enforceability).

 

“GAAP”
means United States generally accepted accounting principles.

 

“Green Special
Servicing Agreement” means the special servicing agreement dated as of April 24, 2009 among GKKM, GLS, Green Loan Services
LLC, as special servicer, SL Green Operating Partnership L.P., GIT and Gramercy Capital Corp., as supplemented by a letter agreement,
dated as of March 29, 2011, among GLS and Green Loan Services LLC, a letter agreement, dated as of August 9, 2011, among GLS, SLG
Gramercy Services LLC and Green Loan Services LLC, and a letter agreement, dated as of November 10, 2011, among GKKM, GLS, GIT,
Gramercy Capital Corp., Green Loan Services LLC and SL Green Operating Partnership L.P.

 

“Hedge Counterparties”
has the meanings specified in the CDO Indentures.

 

“including”
means “including, without limiting the generality of the foregoing”.

 

“Interest Advances”
means, with respect to a CDO Issuer, “Interest Advances” within the meaning of the applicable CDO Agreements.

 

“Jameson Loan”
means the Mezz III Loan evidenced by the Third Mezzanine Loan Agreement, dated as of July 27, 2006, between Wachovia Bank, N.A.
and JER/Jameson Mezz Borrower III LLC, and the Mezz IV Loan evidenced by the Fourth Mezzanine Loan Agreement, dated as of July
27, 2006, between Wachovia Bank, N.A. and JER/Jameson Mezz Borrower IV LLC.

 

“Jameson Proceedings”
means the Proceedings and settlement agreements set forth on Schedule 3.09.

 

“Judgment”
means any judgment, order, writ, decree, award, ruling, decision, verdict, subpoena, injunction or settlement entered, issued,
made or rendered by any Governmental Entity (in each case whether temporary, preliminary or permanent).

 

“Knowledge”
when used with respect to (i) the Sellers, means the actual knowledge of any fact, circumstance or condition of any officer of
the Sellers set forth on Exhibit N hereto, and (ii) Purchaser, means the actual knowledge of any fact, circumstance
or condition of any officer of Purchaser set forth on Exhibit N hereto.

 

“Law”
means any Federal, state, local, foreign, international or multinational treaty, constitution, statute or other law, ordinance,
rule or regulation.

 

    	- 43 -

    	 

    
 

“Lien”
means any mortgage, lien, security interest, pledge, reservation, equitable interest, charge, easement, lease, sublease, conditional
sale or other title retention agreement, right of first refusal, hypothecation, covenant, servitude, right of way, variance, option,
warrant, claim, community property interest, restriction (including any restriction on use, voting, transfer, alienation, receipt
of income or exercise of any other attribute of ownership) or encumbrance of any kind.

 

“Majority of
the Controlling Class” means, with respect to each CDO Issuer, a Majority of the Controlling Class (as such terms are
defined in the applicable CDO Indenture relating to such CDO Issuer) of such CDO Issuer.

 

“Notes Valuation
Report” has the meanings specified in the CDO Indentures.

 

“Organizational
Documents” means, with respect to a Person, (i) if such Person is a corporation, the certificate or articles of incorporation
and the by-laws (or comparable documents) of such Person, (ii) if such Person is a limited liability company, the certificate of
formation and limited liability company agreement (or comparable documents) of such Person and (iii) if such Person is a limited
partnership, the certificate of limited partnership and limited partnership agreement (or comparable documents) of such Person.

 

“Outstanding
GKKL Interest Advance Amount” means all amounts advanced by or on behalf of GKKL as Interests Advances in respect of
the CDO Issuers, to the extent such amounts have not been repaid or reimbursed to GKKL as of the Closing Date.

 

“Outstanding
GKKM Special Servicing Advance Amount” means all amounts advanced by or on behalf of GKKM as Servicing Advances in respect
of the CDO Issuers, to the extent such amounts have not been repaid or reimbursed to GKKM as of the Closing Date.

 

“Outstanding
GLS Servicing Advance Amount” means all amounts advanced by or on behalf of GLS as Servicing Advances in respect of the
CDO Issuers, to the extent such amounts have not been repaid or reimbursed to GLS or any of its Affiliates as of the Closing Date,
including, without limitation, the Servicing Advances made by GLS in connection with the Jameson Loan and the Jameson Proceedings.

 

“Permitted Lien”
means (i) Liens contemplated by the CDO Agreements, (ii) Liens disclosed in any of the Schedules to this Agreement (including
Schedule 3.02 and Schedule 3.03), (iii) mechanics’, carriers’, workmen’s, repairmen’s or
other like Liens arising or incurred in the ordinary course of business, Liens arising under original purchase price conditional
sales contracts and equipment leases with third parties entered into in the ordinary course of business and liens for Taxes that
are not due and payable or that may thereafter be paid without penalty, (iv) Liens that secure obligations reflected on the Financial
Statements or Liens the existence of which is referred to in the notes to the Financial Statements, (v) easements, covenants, rights-of-way
and other similar restrictions of record, (vi) any conditions that may be shown by a current, accurate survey or physical inspection
of any property made before the Closing, (vii) (A) zoning, building and other similar restrictions, (B) Liens that have been placed
by any developer, landlord or other third party on property over which a Seller has easement rights and subordination or similar
agreements relating thereto and (C) unrecorded easements, covenants, rights-of-way and other similar restrictions, (viii) imperfections
of title or encumbrances that, individually or in the aggregate, do not impair materially, and would not reasonably be expected
to impair materially, the continued use and operation of the assets to which they relate, and (ix) any restrictions on the assignment
of collateral management, investment management or other advisory agreements pursuant to applicable Law (including the Advisers
Act).

 

    	- 44 -

    	 

    
 

“Person”
means any individual, firm, corporation, partnership, limited liability company, trust, joint venture, Governmental Entity or other
entity.

 

“Proceeding”
means any suit, claim, action, proceeding, arbitration, audit, hearing, or investigation (in each case, whether civil, criminal,
administrative, investigative, or informal) commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental
Entity.

 

“QRS”
means a “qualified REIT subsidiary” within the meaning of Section 856(i)(2) of the Code.

 

“Rating Agencies”
means (i) with respect to CDO Issuer 2005 and CDO Issuer 2007, Fitch Ratings, Moody’s Investors Service, Inc. and Standard
& Poor’s and (ii) with respect to CDO Issuer 2006, Moody’s Investors Service, Inc. and Standard & Poor’s,
and, in each case, any successor of any such rating agency.

 

“Representative”
means, with respect to any Person, any director, officer, partner, member, stockholder, Affiliate, employee, agent, consultant,
advisor or other representative of such Person, including legal counsel, accountants and financial advisors.

 

“Retained CDO
Interests” means (i) the shares of capital stock issued by the QRS Subsidiaries, (ii) the ordinary and preferred shares
issued by the CDO Issuers, (iii) the limited liability company interests issued by the CDO Co-Issuers, (iv) any Secured CDO Notes,
(v) the limited liability company interests issued by GKKL, (vi) except to the extent transferred pursuant to Section 5.10(b),
the Seller Minority REO Holdco Interests and (vii) the Class J notes or Class K notes issued by the CDO Issuers, in each case of
clauses (i) through (vii), that are held by any of the Sellers and any of their respective Affiliates.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Secured CDO
Notes” means secured floating rate notes issued by any of the CDO Issuers.

 

“Servicing Advances”
means, with respect to a CDO Issuer, “Servicing Advances” within the meaning of the applicable Servicing Agreement
and/or the Special Servicing Agreement, as applicable.

 

“Servicing Agreement”
means, with respect to a CDO Issuer, the Amended and Restated Servicing Agreement dated as of June 1, 2009, as amended by the First
Amendment to the Servicing Agreement dated as of March 1, 2010, by and among such CDO Issuer, the applicable CDO Co-Issuer, GKKM,
Situs, Wells Fargo Bank, N.A., as trustee, and GKKL, as advancing agent.

 

    	- 45 -

    	 

    
 

“Situs Special
Servicing Termination Letter” means, with respect to each CDO Issuer, a letter notice from GKKM to Situs that is effective
to terminate, in accordance with the Special Servicing Agreement, Situs as special servicer with respect to each CDO Issuer as
of the Closing Date.

 

“Special Servicer”
means the special servicer pursuant to the CDO Agreements.

 

“Special Servicing
Agreement” means the agreement of that name dated as of May 8, 2009, as amended by the First Amendment to the Special
Servicing Agreement dated as of March 1, 2010 and the Second Amendment to the Special Servicing Agreement dated as of May 30, 2012,
among GKKM, the CDO Issuers, the CDO Co-Issuers, Situs, Wells Fargo Bank, N.A., as trustee, and GKKL, as advancing agent.

 

“Sub-Special
Servicing Agreement” means the agreement of that name dated as of May 8, 2009, as amended by the First Amendment to the
Sub-Special Servicing Agreement dated as of May 30, 2012, between GLS and Situs.

 

“Subsidiary”
of any Person means another Person, an amount of the voting securities, other voting ownership or voting partnership interests
of which is sufficient to elect at least a majority of its board of directors or other governing body (or, if there are no such
voting interests, 50% or more of the equity interests of which) is owned directly or indirectly by such first Person or by another
Subsidiary of such first Person.

 

“Tax”
or “Taxes” means all Federal, state, county, local, municipal, foreign and other taxes, assessments, duties
or similar charges of any kind whatsoever, including all corporate franchise, income, sales, use, ad valorem, receipts, value added,
profits, license, withholding, payroll, employment, excise, premium, property, customs, net worth, capital gains, transfer, stamp,
documentary, social security, environmental, alternative minimum, occupation, recapture and other taxes, and including all interest,
penalties and additions imposed with respect to such amounts, and all amounts payable pursuant to any agreement or arrangement
with respect to Taxes.

 

“Tax Return”
or “Tax Returns” means all returns, declarations of estimated Tax payments, reports, estimates, information
returns and statements, including any related or supporting information with respect to any of the foregoing, filed or to be filed
with any Taxing Authority in connection with the determination, assessment, collection or administration of any Taxes.

 

“Taxing Authority”
means any domestic, foreign, federal, national, state, county or municipal or other local government, any subdivision, agency,
commission or authority thereof, or any quasi-governmental body exercising tax regulatory authority.

 

“Trustee”
has the meaning specified in the CDO Indentures.

 

Section
10.06 Counterparts. This Agreement may be executed in one or more counterparts,
all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have
been signed by each of the parties and delivered to the other parties.

 

    	- 46 -

    	 

    
 

Section
10.07 Entire Agreement. This Agreement, the Ancillary Agreements and the Confidentiality
Agreement, along with the Schedules and Exhibits hereto and thereto, contain the entire agreement of the parties with respect
to the subject matter hereof and supersede all prior agreements among the parties with respect thereto. The parties hereto have
voluntarily agreed to define their rights, liabilities and obligations with respect to the Transactions exclusively in contract
pursuant to the express terms and provisions of this Agreement, the Ancillary Agreements and the Confidentiality Agreement, along
with the Schedules and Exhibits hereto and thereto; and the parties hereto expressly disclaim that they are owed any duties or
are entitled to any remedies not expressly set forth in this Agreement, the Ancillary Agreements and the Confidentiality Agreement,
along with the Schedules and Exhibits hereto and thereto.

 

Section
10.08 Severability. If any provision hereof (or any portion thereof) or the application
of any such provision (or any portion thereof) to any Person or circumstance shall be held invalid, illegal or unenforceable in
any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision
hereof (or the remaining portion thereof) or the application of such provision to any other Persons or circumstances.

 

Section
10.09 Enforcement. In the event of any breach or threatened breach by any party
hereto of any covenant or agreement of such party contained herein, the other parties hereto shall be entitled, in addition to
any other remedy that may be available at law or in equity, to: (a) a decree or order of specific performance to enforce the observance
and performance of such covenant or agreement; and (b) an injunction restraining such breach or threatened breach.

 

Section
10.10 Consent to Jurisdiction. Each party irrevocably submits to the exclusive
jurisdiction of the Supreme Court of the State of New York, New York County, and the United States District Court for the Southern
District of New York (and the appropriate appellate courts), for the purposes of any suit, action or other proceeding arising
out of this Agreement, any Ancillary Agreement, any certificate delivered pursuant hereto or thereto or any Transaction. Each
party agrees to commence any such action, suit or proceeding either in the United States District Court for the Southern District
of New York or if such suit, action or other proceeding may not be brought in such court for jurisdictional reasons, in the Supreme
Court of the State of New York, New York County. Notwithstanding the foregoing, any party hereto may commence an action, suit
or proceeding with any Governmental Entity anywhere in the world for the sole purpose of seeking recognition and enforcement of
a judgment of any court referred to in the first sentence of this Section 10.10. Each party further agrees that service
of any process, summons, notice or document by U.S. registered mail to such party’s respective address set forth above shall
be effective service of process for any action, suit or proceeding in New York with respect to any matters to which it has submitted
to jurisdiction in this Section 10.10. Each party irrevocably and unconditionally waives any objection to the laying of
venue of any action, suit or proceeding arising out of this Agreement, any Ancillary Agreement or the Transactions in (i) the
Supreme Court of the State of New York, New York County, or (ii) the United States District Court for the Southern District of
New York, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any
such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. In the event of any dispute
or controversy regarding authorship of the Agreement or the Ancillary Agreements, the parties shall be conclusively deemed to
be joint authors of the Agreement and the Ancillary Agreements and no provision hereof or thereof shall be interpreted against
or in favor of a party by reason of authorship.

 

    	- 47 -

    	 

    
 

Section
10.11 GOVERNING LAW. THIS AGREEMENT, AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER
IN CONTRACT OR TORT) THAT MAY BE BASED UPON, ARISE OUT OF OR RELATE TO THIS AGREEMENT, OR THE NEGOTIATION, EXECUTION OR PERFORMANCE
OF THIS AGREEMENT (INCLUDING ANY CLAIM OR CAUSE OF ACTION BASED UPON, ARISING OUT OF OR RELATED TO ANY REPRESENTATION OR WARRANTY
MADE IN OR IN CONNECTION WITH THIS AGREEMENT OR AS AN INDUCEMENT TO ENTER INTO THIS AGREEMENT), SHALL BE GOVERNED BY THE INTERNAL
LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO
THE CONFLICTS OF LAW PRINCIPLES OF SUCH STATE.

 

Section
10.12 WAIVER OF JURY TRIAL. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, INVOLVING
OR OTHERWISE IN RESPECT OF THIS AGREEMENT, ANY ANCILLARY AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. EACH PARTY
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND
THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE ANCILLARY AGREEMENTS, AS APPLICABLE, BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.12.

 

    	- 48 -

    	 

    
 

IN WITNESS WHEREOF, the
parties hereto have duly executed this Agreement as of the date first written above.

 

	 	GRAMERCY INVESTMENT TRUST,
	 	 	 
	 	By	/s/ Gordon F. DuGan
	 	 	 Name: Gordon F. DuGan
	 	 	 Title: Chief Executive Officer
	 	 	 
	 	GRAMERCY INVESTMENT TRUST II,
	 	 	 
	 	By	/s/ Gordon F. DuGan
	 	 	 Name: Gordon F. DuGan
	 	 	 Title: Chief Executive Officer
	 	 	 
	 	GKK MANAGER LLC,
	 	 	 
	 	By	/s/ Gordon F. DuGan
	 	 	 Name: Gordon F. DuGan
	 	 	 Title: Chief Executive Officer
	 	 	 
	 	GRAMERCY LOAN SERVICES LLC,
	 	 	 
	 	By	/s/ Gordon F. DuGan
	 	 	 Name: Gordon F. DuGan
	 	 	 Title: Chief Executive Officer
	 	 	 
	 	GKK LIQUIDITY LLC,
	 	 	 
	 	By	/s/ Gordon F. DuGan
	 	 	 Name: Gordon F. DuGan
	 	 	 Title: Chief Executive Officer
	 	 	 
	 	CWCAPITAL INVESTMENTS LLC,
	 	 	 
	 	By	/s/ Charles E. Spetka
	 	 	 Name: Charles E. Spetka
	 	 	 Title: Chief Executive Officer

 

    	 

    	 

    
 

The undersigned are executing
this Agreement solely to reflect their agreement to be bound by Article IX (Indemnification) and Article X (General Provisions)
and for no other purpose.

 

	 	GRAMERCY CAPITAL CORP.,
	 	 	 
	 	By	/s/ Gordon F. DuGan
	 	 	 Name: Gordon F. DuGan
	 	 	 Title: Chief Executive Officer
	 	 	 
	 	CW FINANCIAL SERVICES LLC
	 	 	 
	 	By	/s/ Charles E. Spetka
	 	 	 Name: Charles E. Spetka
	 	 	 Title: Chief Executive Officer

 

    	 

    	 

    

 

DISCLOSURE SCHEDULE TO

 

SALE AND PURCHASE AGREEMENT

 

among

 

GRAMERCY INVESTMENT TRUST,

GRAMERCY INVESTMENT TRUST II,

GKK MANAGER LLC,

GRAMERCY LOAN SERVICES LLC,

 

GKK LIQUIDITY LLC,

 

CWCAPITAL INVESTMENTS LLC,

 

and, in each case solely for the purposes
of Articles IX and X thereof,

 

GRAMERCY CAPITAL CORP.,

and

CW FINANCIAL SERVICES LLC

 

Dated as of January 30, 2013

 

    	 

    	 

    

 

Introduction

 

Reference is made to the
SALE AND PURCHASE AGREEMENT dated as of January 30, 2013 (the “Agreement”), among GRAMERCY INVESTMENT TRUST,
a Maryland real estate investment trust (“GIT”), GRAMERCY INVESTMENT TRUST II, a Maryland real estate investment
trust (“GIT II”), GKK MANAGER LLC, a Delaware limited liability company (“GKKM”), and GRAMERCY
LOAN SERVICES LLC, a Delaware limited liability company (“GLS”) and GKK LIQUIDITY LLC, a Delaware limited liability
company (“GKKL”; and together with GIT, GIT II, GKKM and GLS, collectively, the “Sellers”
and, individually, a “Seller”), CWCAPITAL INVESTMENTS LLC, a Massachusetts limited liability company (“Purchaser”),
and, in each case solely for the purposes of Articles IX and X of the Agreement, Gramercy
Capital Corp., a Maryland corporation (“GCC”), and CW FINANCIAL SERVICES LLC, a Massachusetts limited
liability company (“CWFS”). Capitalized terms used herein and not otherwise defined shall have the respective
meanings ascribed to such terms in the Agreement.

 

The Schedules are qualified
in their entirety by reference to specific provisions of the Agreement, and are not intended to constitute, and shall not be construed
as constituting, representations or warranties of Sellers except as and to the extent provided in the Agreement. Inclusion of information
herein shall not be construed as an admission that such information is material to the operations or financial condition of the
CDO Issuers or REO Holdcos.

 

Headings have been inserted
on the Schedules for reference purposes only and shall not affect in any way the meaning or interpretation of the Schedules as
set forth in the Agreement. Any disclosure set forth in any Schedule shall be deemed set forth for purposes of any other Schedule
to which such disclosure is relevant, to the extent that it is readily apparent that such disclosure is relevant to such other
Schedule.

 

The information contained
herein is in all events subject to the Confidentiality Agreement.

 

    	 

    	 

    

 

Schedule 1.01(a)

 

Assigned CDO Agreements

 

		1.	Collateral Management Agreement, dated as of July 14, 2005, between CDO Issuer 2005 and GKKM

 

		2.	Indenture, dated as of July 14, 2005, as amended and supplemented by the First Supplemental Indenture,
dated as of August 14, 2007, among CDO Issuer 2005, CDO Co-Issuer 2005, GKKL and Wells Fargo Bank, N.A.

 

		3.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2005, CDO
Co-Issuer 2005, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.

 

		4.	Preferred Shares Paying Agency Agreement, dated as of July 14, 2005, among the CDO Issuer 2005 and
Wells Fargo Bank, N.A.

 

		5.	Securities Accounts Control Agreement, dated as of July 14, 2005, among the CDO Issuer 2005, Wells
Fargo Bank, N.A., as secured party, and Wells Fargo Bank, N.A., as securities intermediary

 

		6.	Collateral Management Agreement, dated as of August 24, 2006, between CDO Issuer 2006 and GKKM

 

		7.	Indenture, dated as of August 24, 2006, as amended and supplemented by the First Supplemental Indenture,
dated as of September 26, 2007, the Second Supplemental Indenture dated as of August 5, 2008, and the Indenture Amendment, dated
as of October 28, 2010, among CDO Issuer 2006, CDO Co-Issuer 2006, GKKL and Wells Fargo Bank, N.A.

 

		8.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2006, CDO
Co-Issuer 2006, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.

 

		9.	Preferred Shares Paying Agency Agreement, dated as of August 24, 2006, among the CDO Issuer 2006 and
Wells Fargo Bank, N.A.

 

		10.	Securities Accounts Control Agreement, dated as of August 24, 2006, among the CDO Issuer 2006, Wells
Fargo Bank, N.A., as secured party, and Wells Fargo Bank, N.A., as securities intermediary

 

		11.	Collateral Management Agreement, dated as of August 8, 2007, between CDO Issuer 2007 and GKKM

 

    	 

    	 

    

 

		12.	Indenture, dated as of August 8, 2007, among CDO Issuer 2007, CDO Co-Issuer 2007, GKKL and Wells Fargo
Bank, N.A.

 

		13.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2007, CDO
Co-Issuer 2007, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.

 

		14.	Preferred Shares Paying Agency Agreement, dated as of August 8, 2007, among the CDO Issuer 2007 and
Wells Fargo Bank, N.A.

 

		15.	Securities Accounts Control Agreement, dated as of August 8, 2007, among the CDO Issuer 2007, Wells
Fargo Bank, N.A., as secured party, and Wells Fargo Bank, N.A., as securities intermediary

 

		16.	Special Servicing Agreement, dated as of May 8, 2009, as amended by the First Amendment to Special
Servicing Agreement and Amended and Restated Servicing Agreements dated as of March 1, 2010 and the Second Amendment to the Special
Servicing Agreement dated as of May 30, 2012, among GKKM, the CDO Issuers, the CDO Co-Issuers, Situs, GKKL and Wells Fargo Bank,
N.A.

 

    	 

    	 

    

 

Schedule 1.01(b)

 

Advancing Agent Appointment

 

		1.	Indenture, dated as of July 14, 2005, as amended and supplemented by the First Supplemental Indenture,
dated as of August 14, 2007, among CDO Issuer 2005, CDO Co-Issuer 2005, GKKL and Wells Fargo Bank, N.A.

 

		2.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2005, CDO
Co-Issuer 2005, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.

 

		3.	Indenture, dated as of August 24, 2006, as amended and supplemented by the First Supplemental Indenture,
dated as of September 26, 2007, the Second Supplemental Indenture dated as of August 5, 2008, and the Indenture Amendment, dated
as of October 28, 2010, among CDO Issuer 2006, CDO Co-Issuer 2006, GKKL and Wells Fargo Bank, N.A.

 

		4.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2006, CDO
Co-Issuer 2006, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.

 

		5.	Indenture, dated as of August 8, 2007, among CDO Issuer 2007, CDO Co-Issuer 2007, GKKL and Wells Fargo
Bank, N.A.

 

		6.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2007, CDO
Co-Issuer 2007, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.

 

		7.	Special Servicing Agreement, dated as of May 8, 2009, as amended by the First Amendment to Special
Servicing Agreement and Amended and Restated Servicing Agreements dated as of March 1, 2010 and the Second Amendment to the Special
Servicing Agreement dated as of May 30, 2012, among GKKM, the CDO Issuers, the CDO Co-Issuers, Situs, GKKL and Wells Fargo Bank,
N.A.

 

    	 

    	 

    

 

Schedule 1.01(h)

 

Schedule 1.01(h)(i)

 

CDO REO Holdco Interests1

 

	Seller	 	REO Holdcos
	 	 	 
	GKKM	 	100% of the membership interests of GKK Roddy Ranch Owner GP LLC2
	 	 	 
	 	 	98.50432% of the membership interests of GKK Roddy Ranch Owner LP2
	 	 	 
	 	 	100% of the membership interests of GKK Fiesta de Vida Owner GP LLC
	 	 	 
	 	 	97.32957% of the membership interests of GKK Fiesta de Vida Owner LP
	 	 	 
	 	 	100% of the membership interests of GKK Arden Member LLC3
	 	 	 
	 	 	100% of the membership interests of GKK Coyote Owner GP LLC
	 	 	 
	 	 	100% of the membership interests of GKK Coyote Owner LP
	 	 	 
	 	 	100% of the membership interests of GWF II SPE LLC (Las Vegas Hotel)
	 	 	 
	 	 	100% of the membership interests of GKK Jewelry Center Owner LLC
	 	 	 
	 	 	100% of the membership interests of AFR Equity Holdings LLC
	 	 	 
	 	 	100% of the membership interests of Whiteface Makalei Equity Holdings LLC

 

 

1 This Schedule lists the equity interests held by
GKKM in REO Holdcos as of the date of this Agreement. These equity interests may change if REO Holdcos are sold prior to Closing
and after providing the notice contemplated by Section 5.04(d) of the Agreement.

2 The property owned by these entities is currently
subject to a Purchase and Sale Agreement and is expected to be sold prior to Closing.

3 The equity interests in this entity are currently
subject to a Purchase and Sale Agreement and are expected to be sold prior to Closing.

 

    	 

    	 

    

 

Schedule 1.01(h)(ii)

 

Seller Minority REO Holdco Interests4

 

	Seller	 	REO Holdcos
	 	 	 
	GIT	 	2.67043% of the membership interests of GKK Fiesta de Vida Owner LP
	 	 	 
	Gramercy Warehouse Funding II LLC	 	1.49568% of the membership interests of GKK Roddy Ranch Owner LP2

 

 

4 This Schedule lists the minority equity interests
held by Sellers in REO Holdcos as of the date of this Agreement. These equity interests may change if REO Holdcos are sold prior
to Closing and after providing the notice contemplated by Section 5.04(d) of the Agreement.

 

    	 

    	 

    

 

Schedule 1.04(a)

 

Sellers’ Closing Deliveries

 

		1.	With respect to CDO Issuer 2007, (A) a waiver letter executed by ******, in substantially
the form of Exhibit C (the “CDO Issuer 2007 First Waiver Letter”), (B) a direction letter executed from
****** to ******, in substantially the form of Exhibit D, (C) a consent letter executed by
******, in substantially the form of Exhibit E, (D) a consent letter executed by ******, in substantially
the form of Exhibit F, and (E) a waiver letter executed by ******, in substantially the form of Exhibit G (the
“CDO Issuer 2007 Second Waiver Letter” and together with the CDO Issuer 2007 First Waiver Letter, the “CDO
Issuer 2007 Waiver Letters”).

 

		2.	With respect to CDO Issuer 2006, (A) an executed direction letter from ******
to ******, in substantially the form of Exhibit H, and (B) an executed
consent letter by ******, in substantially the form of Exhibit I
(the “CDO Issuer 2006 Consent Letter”).

 

		3.	With respect to CDO Issuer 2006 and CDO Issuer 2007, an executed letter agreement between ****** and Purchaser, in substantially the form of Exhibit J (the “CDO Issuer 2006 and CDO Issuer 2007 CMA
Waiver Letter”).

 

		4.	With respect to each CDO Issuer, an executed letter agreement among ******, Purchaser
and GKKM, in substantially the form of Exhibit K (the “CDO Issuers Letter Agreement”).

 

    	 

    	 

    

 

Schedule 1.04(b)

 

Purchaser’s Closing Deliveries

 

		1.	With respect to CDO Issuer 2005, an executed letter agreement between ************ and
                                                                Purchaser,                                                                 in the form reasonably acceptable to the parties
                                                                thereto (the “CDO Issuer 2005 Consent Letter”).

 

    	 

    	 

    

 

Schedule 2.03

 

Consents and Filings

 

None.

 

    	 

    	 

    

 

Schedule 3.01

 

CDO Agreements

 

Schedule 3.01(a)(i)

 

		1.	Collateral Management Agreement, dated as of July 14, 2005, between CDO Issuer 2005 and GKKM

 

		2.	Collateral Management Agreement, dated as of August 24, 2006, between CDO Issuer 2006 and GKKM

 

		3.	Collateral Management Agreement, dated as of August 8, 2007, between CDO Issuer 2007 and GKKM (“2007
CMA”)

 

		4.	Letter from ****** to GKKM, dated as of June 16, 2010, regarding the resolution of certain dispute.

 

		5.	Letter from ****** to ******, dated as of March 15, 2012, regarding CDO Issuer 2007.

 

		6.	Letter from ****** to Wells Fargo Bank, N.A., dated as of March 22, 2012, regarding CDO Issuer 2007.

 

		7.	Letter from ****** to Wells Fargo Bank, N.A. dated as of March 26, 2012, regarding CDO Issuer
2007.

 

		8.	Letter from ****** to ******, dated as of August 23, 2012, regarding CDO Issuer 2007.

 

		9.	Letter from ****** to Wells Fargo Bank, N.A, dated as of August 23, 2012, regarding CDO Issuer 2007.

 

		10.	Letter from ****** to Wells Fargo Bank, N.A., dated as of August 24, 2012, regarding CDO Issuer
2007.

 

Schedule 3.01(a)(ii)

 

		1.	Indenture, dated as of July 14, 2005, as amended and supplemented by the First Supplemental Indenture,
dated as of August 14, 2007, among CDO Issuer 2005, CDO Co-Issuer 2005, GKKL and Wells Fargo Bank, N.A.

 

		2.	Indenture, dated as of August 24, 2006, as amended and supplemented by the First Supplemental Indenture,
dated as of September 26, 2007, the Second Supplemental Indenture dated as of August 5, 2008, and the Indenture Amendment, dated
as of October 28, 2010, among CDO Issuer 2006, CDO Co-Issuer 2006, GKKL and Wells Fargo Bank, N.A.

 

    	 

    	 

    

 

		3.	Indenture, dated as of August 8, 2007, among CDO Issuer 2007, CDO Co-Issuer 2007, GKKL and Wells Fargo
Bank, N.A (“2007 Indenture”).

 

		4.	Letter from ****** to ******, dated as of March 15, 2012, regarding CDO Issuer 2007.

 

		5.	Letter from ****** to Wells Fargo Bank, N.A., dated as of March 22, 2012, regarding CDO Issuer 2007.

 

		6.	Letter from ****** to Wells Fargo Bank, N.A. dated as of March 26, 2012, regarding CDO Issuer
2007.

 

		7.	Letter from ****** to ******, dated as of August 23, 2012, regarding CDO Issuer 2007.

 

		8.	Letter from ****** to Wells Fargo Bank, N.A, dated as of August 23, 2012, regarding CDO Issuer 2007.

 

		9.	Letter from ****** to Wells Fargo Bank, N.A., dated as of August 24, 2012, regarding CDO Issuer
2007.

 

		10.	Letter from Moody’s Investor Services to CDO Issuer 2006 and CDO Co-Issuer 2006, dated as of
March 8, 2010, providing confirmation regarding interest rate cap transaction.

 

		11.	Letter from S&P to Wells Fargo Bank, N.A. and CDO Issuer 2006, dated as of March 1, 2010, providing
confirmation regarding interest rate cap transaction.

 

Schedule 3.01(a)(iii)

 

		1.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2005, CDO
Co-Issuer 2005, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.5

 

		2.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2006, CDO
Co-Issuer 2006, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.5

 

		3.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2007, CDO
Co-Issuer 2007, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.5

 

 

5 Each of these agreements will, on or prior to Closing,
be supplemented by a letter agreement executed between the parties to these agreements regarding revised schedules to each of the
Amended and Restated Servicing Agreements.

 

    	 

    	 

    

 

		4.	Special Servicing Agreement, dated as of May 8, 2009, as amended by the First Amendment to Special
Servicing Agreement and Amended and Restated Servicing Agreements dated as of March 1, 2010 and the Second Amendment to the Special
Servicing Agreement dated as of May 30, 2012, among GKKM, the CDO Issuers, the CDO Co-Issuers, Situs, GKKL and Wells Fargo Bank,
N.A.5

 

		5.	Sub-Special Servicing Agreement, dated as of May 8, 2009, as amended by the First Amendment to the
Sub-Special Servicing Agreement dated as of May 30, 2012, between GLS and Situs6

 

		6.	Special Servicing Agreement, dated as of April 24, 2009 among GKKM, GLS, Green Loan Services LLC,
as special servicer, SL Green Operating Partnership L.P., GIT and Gramercy Capital Corp., as supplemented by a letter agreement,
dated as of March 29, 2011, among GLS and Green Loan Services LLC, a letter agreement, dated as of August 9, 2011, among GLS, SLG
Gramercy Services LLC and Green Loan Services LLC, and a letter agreement, dated as of November 10, 2011, among GKKM, GLS, GIT,
Gramercy Capital Corp., Green Loan Services LLC and SL Green Operating Partnership L.P.7

 

Schedule 3.01(a)(iv)

 

		1.	ISDA Master Agreement, the Schedule thereto, and the Credit Support Annex to the Schedule, each dated
as of July 14, 2005, between Wachovia Bank, N.A. (“Wachovia”) and CDO Issuer 2005, and each Confirmation dated
November 30, 2007, February 11, 2008, August 18, 2008, October 21, 2008 between Wachovia and CDO Issuer 2005

 

		2.	ISDA Master Agreement, the Schedule thereto, and the Credit Support Annex, each dated as of June 14,
2011, between The Bank of New York Mellon (“BNY Mellon”) and CDO Issuer 2005, and the Confirmation dated June
14, 2011, between BNY Mellon and CDO Issuer 2005

 

		3.	ISDA Master Agreement, the Schedule thereto, and the Credit Support Annex to the Schedule, each dated
as of August 24, 2006, between Wachovia and CDO Issuer 2006, and each Confirmation dated February 7, 2008 and October 21, 2008
between Wachovia and CDO Issuer 2006

 

		4.	ISDA Master Agreement and the Schedule thereto, each dated as of March 4, 2010, between BNY Mellon
and CDO Issuer 2006, and each Confirmation dated March 4, 2010, June 17, 2010, October 26, 2010, December 17, 2010, June 14, 2011
and July 14, 2011, between BNY Mellon and CDO Issuer 2006

 

 

6 This agreement will be terminated on or prior to
Closing pursuant to the Sub-Special Servicing Termination Letter.

7 This agreement will be terminated on or prior to
Closing pursuant to the Green Termination Agreement.

 

    	 

    	 

    

 

		5.	ISDA Master Agreement, the Schedule thereto, the Credit Support Annex to the Schedule, each dated
as of August 8, 2007, between Wachovia and CDO Issuer 2007, and three Confirmations dated August 8, 2007, between Wachovia and
CDO Issuer 2007

 

Schedule 3.01(a)(v)

 

		6.	Preferred Shares Paying Agency Agreement, dated as of July 14, 2005, among the CDO Issuer 2005 and
Wells Fargo Bank, N.A.

 

		7.	Securities Accounts Control Agreement, dated as of July 14, 2005, among the CDO Issuer 2005, Wells
Fargo Bank, N.A., as secured party, and Wells Fargo Bank, N.A., as securities intermediary

 

		8.	Preferred Shares Paying Agency Agreement, dated as of August 24, 2006, among the CDO Issuer 2006 and
Wells Fargo Bank, N.A.

 

		9.	Securities Accounts Control Agreement, dated as of August 24, 2006, among the CDO Issuer 2006, Wells
Fargo Bank, N.A., as secured party, and Wells Fargo Bank, N.A., as securities intermediary

 

		10.	Preferred Shares Paying Agency Agreement, dated as of August 8, 2007, among the CDO Issuer 2007 and
Wells Fargo Bank, N.A.

 

		11.	Securities Accounts Control Agreement, dated as of August 8, 2007, among the CDO Issuer 2007, Wells
Fargo Bank, N.A., as secured party, and Wells Fargo Bank, N.A., as securities intermediary

 

Schedule 3.01(a)(vi)

 

None.

 

Schedule 3.01(b)

 

The Par Value Test for the 2007 CDO is below the applicable
threshold set forth in the 2007 CMA and 2007 Indenture; however this is subject to the waiver letters for CDO Issuer 2007, listed
in Schedule 3.01(a)(i).

 

The monthly Trustee Reports for each CDO Issuer enumerate certain
tests, and indicate that certain of those tests have been failed.

 

The Sub-Special Servicing Agreement will be terminated on or
prior to Closing pursuant to the Sub-Special Servicing Termination Letter.

 

The Green Special Servicing Agreement will be terminated on
or prior to Closing pursuant to the Green Termination Agreement.

 

    	 

    	 

    

 

Schedule 3.01(c)

 

Letter from Tricadia to Wells Fargo Bank, N.A. dated as of August
5, 2011, asserting non-compliance with the provisions of the CDO Indenture for CDO Issuer 2007.

 

Letter from Torchlight Investors to Wells Fargo Bank, N.A. and
GKKM, dated as of August 11, 2011 asserting violation of the CDO Indenture for CDO Issuer 2005, and response letter by GKKM to
Torchlight Investors, dated as of August 18, 2011, clarifying misunderstanding.

 

Schedule 3.01(d)

 

2005 CDO redemption pursuant to an Issuer Order dated November
22, 2011, referring to an Abandonment Letter dated November 22, 2011 from GIT as the abandoning holder.

 

2006 CDO redemption pursuant to an Issuer Order dated September
14, 2011, referring to an Abandonment Letter dated September 14, 2011 from GIT as the abandoning holder.

 

Class C, D, E, F and G notes of CDO Issuer 2006 were delisted
from the Irish Stock Exchange on September 28, 2011 in connection with the above 2006 CDO redemption.

 

Schedule 3.01(e)

 

The Par Value Test for the 2007 CDO is below the applicable
threshold set forth in the 2007 CMA and 2007 Indenture; however this is subject to the waiver letters for CDO Issuer 2007, listed
in Schedule 3.01(a)(i).

 

The monthly Trustee Reports for each CDO Issuer enumerate certain
tests, and indicate that certain of those tests have been failed.

 

    	 

    	 

    

 

 

Schedule 3.02

 

REO Holdcos

 

Schedule 3.02(i) and (ii)

 

	REO Holdco	 	REO Property
	 	 	 
	GKK Roddy Ranch Owner GP LLC8	 	Roddy Ranch, Antioch, California
	 	 	 
	GKK Roddy Ranch Owner LP8	 	Roddy Ranch, Antioch, California
	 	 	 
	GKK Fiesta de Vida Owner GP LLC	 	Fiesta de Vida, Indio, California
	 	 	 
	GKK Fiesta de Vida Owner LP	 	Fiesta de Vida, Indio, California
	 	 	 
	
        GKK Arden Member LLC9

         
	 	
        GKK Arden Member LLC owns a non-controlling interest in a joint
        venture entity that indirectly holds the following listed properties:

         

        Carmel Valley Centre, San Diego, California

        Legacy Creekside, San Diego, California

        Three Governor, San Diego, California

        Bernardo Regency, San Diego, California

        Foremost Professional Plaza, San Diego, California

        Fountain Valley Plaza, Fountain Valley, California

        Fountain Valley City Center, Fountain Valley, California

        299 North Euclid Avenue, Pasadena, California

        Center Promenade, Venture, California

        1000 Town Center, Oxnard, California

        Solar Business Center, Oxnard, California

        Camarillo Business Center, Camarillo, California

        Conejo Business Center, Thousand Oaks, California

        Plaza Center, Pasadena, California

        Broadway Plaza, Glendale, California

 

 

8 The property owned by these entities is currently
subject to a Purchase and Sale Agreement and is expected to be sold prior to Closing.

9 The equity interests in this entity are currently
subject to a Purchase and Sale Agreement and are expected to be sold prior to Closing.

 

    	 

    	 

    

 

	 	 	
        Calabasas Tech Center, Calabasas, California

        LA Corporate Center, Monterey Park, California

        Gateway Towers, Los Angeles, California

        Pacific Gateway II, Los Angeles, California

        Skyview Center, Los Angeles, California

        South Bay Center, Los Angeles, California

        Bristol Plaza, Culver City, California

        1950 Sawtelle Boulevard, Los Angeles, California

        11075 Santa Monica Boulevard, Los Angeles, California

        Century Park Center, Los Angeles, California

        Beverley Atrium, Beverly Hills, California

        Wilshire-Harvard Plaza, Santa Monica, California

        2800 28th Street, Santa Monica, California

        Clarendon Crest, Woodland Hills, California

        Noble Professional Center, Sherman Oaks, California

        Sunset Pointe Plaza, Stevenson Ranch, California

	 	 	 
	GKK Coyote Owner GP LLC	 	Coyote Valley Research Park, San Jose, California
	 	 	 
	GKK Coyote Owner LP	 	Coyote Valley Research Park, San Jose, California
	 	 	 
	GWF II SPE LLC	 	
        GWF II SPE LLC owns a non-controlling interest in a joint venture
        entity that indirectly holds the following property:

         

        LVH Hotel & Casino, Las Vegas, Nevada

	 	 	 
	GKK Jewelry Center Owner LLC	 	
        GKK Jewelry Center Owner LLC is a non-controlling member of
        the entity that holds the following property:

         

        International Jewelry Center, Los Angeles, California

	 	 	 
	AFR Equity Holdings LLC	 	
        AFR Equity Holdings LLC indirectly holds the following listed
        properties:

         

        5300 S. US Highway 19-92, Casselberry, Florida

        6445 Massachusetts Avenue, New Port Richey, Florida

        2841 Main Street, Snellville, Georgia

        130 N Ridgewood Ave, Daytona Beach, Florida

        2494 Bayshore Blvd, Dunedin, Florida

 

    	 

    	 

    

 

	 	 	
        50 W 3rd Street, Mount Carmel, Pennsylvania

        43 E Main Street, Norristown, Pennsylvania

        4574 South Amherst Highway, Madison Heights, Virginia

        900 Mall Loop Road, High Point, North Carolina

        676 SW Morgantown Blvd, Lenoir, North Carolina

        220 S Broad St, Woodbury, New Jersey

        1501 Market St, Linwood, Pennsylvania

        445 Main Street, Goodwater, Alabama

        6615 Arlington Expressway, Jacksonville, Florida

        1004 N. Edgewood Avenue, Jacksonville, Florida

        211 Hamilton Avenue, Bremen, Georgia

        13307 Warwick Blvd, Newport News, Virginia

        2921 Airport Thruway, Columbus, Georgia

        81 Main Street, Dobbs Ferry, New York

        3535 US Highway 19 North, New Port Richey, Florida

	 	 	 
	Whiteface Makalei Equity Holdings LLC	 	
        Whiteface Makalei Equity Holdings LLC indirectly holds the following
        listed properties:

         

        The Whiteface Lodge, 7 White Face Inn Lane, Lake Placid, New
        York

         

        Makalei Golf Club, Kailua-Kona, Hawaii

 

Each REO Holdco either owns or, pursuant to an agreement with
a third party, has the right to use, certain furniture, fixtures and equipment related to the above-listed REO Properties.

 

Each REO Holdco has also entered into various agreements with
third parties regarding property used, or services provided, in the operation, management, sale or liquidation of the above-listed
REO Properties.

 

In addition, one or more REO Holdcos either have entered into
or may, prior to Closing and after providing the notice contemplated by Section 5.04(d) of the Agreement, enter into agreements
relating to the sale of some or all of the REO Properties held by such REO Holdco.

 

Schedule 3.02(iii)

 

Refer to document attached at the end of these Schedules titled
“LSAM Tracking Sheet”.

 

    	 

    	 

    

 

Schedule 3.03

 

Other Related CDO Assets

 

Loan Participations

 

	Holder	 	Asset
	 	 	 
	GIT	 	Title to the loan that is evidenced by the AFR Portfolio A Note10
	 	 	 
	GIT	 	Title to the loan that is evidenced by the First States Investors Portfolio Note
	 	 	 
	GIT	 	Title to the loan that is evidenced by the San Mateo Exec Park A Note
	 	 	 
	GIT	 	Title to the loan that is evidenced by the West Shore Plaza Note
	 	 	 
	GIT	 	Title to the loan that is evidenced by the Promenade Shops at Saucon Valley Note
	 	 	 
	GIT	 	Title to Willis Tower Note A-2B, Note A-3B and Note B
	 	 	 
	GIT	 	Title to the loan that is evidenced by the Jemal 7th and L Street Note
	 	 	 
	GIT	 	Class A participation interest under the Participation and Servicing Agreement dated as of April 16, 2010, between GIT and GIT, as assigned, with respect to the Promenade Shops at Saucon Valley Note
	 	 	 
	GIT	 	Class A participation interest under the Participation and Servicing Agreement dated as of July 16, 2009, between GIT and GIT, as assigned and amended, with respect to the Jemal 7th and L Street Note
	 	 	 
	Gramercy Warehouse Funding I LLC	 	Title to the loan that is evidenced by the 26 Broadway A1 Note

 

 

10 Note that the AFR asset is now an REO entity due
to an assignment-in-lieu.

 

    	 

    	 

    

 

	Gramercy Warehouse Funding I LLC	 	Title to the loan that is evidenced by the MF Polo Glen A Note
	 	 	 
	Gramercy Warehouse Funding I LLC	 	Title to the loan that is evidenced by the MF Hamptons A Note
	 	 	 
	Gramercy Warehouse Funding I LLC	 	Title to the loan that is evidenced by the MF Crosswynde A Note
	 	 	 
	Gramercy Warehouse Funding I LLC	 	Class A-1 participation interest under the Participation and Servicing Agreement dated as of March 30, 2007, between Gramercy Warehouse Funding I LLC and Wachovia Bank, N.A., as assigned and amended, with respect to the 26 Broadway A1 Note
	 	 	 
	Gramercy Warehouse Funding I LLC	 	Class A participation interest under the Participation and Servicing Agreement dated as of December 20, 2006, between Gramercy Warehouse Funding I LLC and Gramercy Warehouse Funding I LLC, as assigned, with respect to the MF Polo Glen A Note
	 	 	 
	Gramercy Warehouse Funding I LLC	 	Class A participation interest under the Participation and Servicing Agreement dated as of December 20, 2006, between Gramercy Warehouse Funding I LLC and Gramercy Warehouse Funding I LLC, as assigned, with respect to the MF Hamptons A Note
	 	 	 
	Gramercy Warehouse Funding I LLC	 	Class A participation interest under the Participation and Servicing Agreement dated as of December 20, 2006, between Gramercy Warehouse Funding I LLC and Gramercy Warehouse Funding I LLC, as assigned, with respect to the MF Crosswynde A Note
	 	 	 
	Gramercy Warehouse Funding II LLC	 	Title to the loan that is evidenced by the Bascom A1 Note
	 	 	 
	Gramercy Warehouse Funding II LLC	 	Title to the loan that is evidenced by the Betsy Ross Hotel A Note
	 	 	 
	Gramercy Warehouse Funding II LLC	 	Title to the loan that is evidenced by the 185 Admiral Cochrane A Note

 

    	 

    	 

    

 

	Gramercy Warehouse Funding II LLC	 	Class A-2 participation interest under the Participation Agreement dated as of June 29, 2006, between Gramercy Warehouse Funding II LLC, Gramercy Warehouse Funding II LLC and Redwood Capital Finance Company LLC, as assigned, with respect to the Bascom A1 Note
	 	 	 
	Gramercy Warehouse Funding II LLC	 	Advance participation interest under the Participation and Servicing Agreement dated as of September 22, 2006, between Gramercy Warehouse Funding II LLC and Gramercy Warehouse Funding II LLC, as assigned, with respect to the Betsy Ross Hotel A Note
	 	 	 
	GKK DC Lender LLC	 	Title to the loan that is evidenced by the Jemal Woodies Note
	 	 	 
	GKK DC Lender LLC	 	Class A participation interest under the Participation and Servicing Agreement dated as of April 28, 2009, between GKK DC Lender LLC and GKK DC Lender LLC, as assigned, with respect to the Jemal Woodies Note

 

Money Judgments

 

	Judgment Holder	 	Judgment Details
	 	 	 
	GIT	 	
        Judgment Amount: $12,778,616.11 (plus post judgment interest
        at the annual rate of 14.5% compounded monthly)

         

        Judgment Against: Douglas A. Dragoo and Elizabeth W. Dragoo
        (husband and wife)

         

        Court: Superior Court of Arizona, Maricopa County

         

        Judgment Date: May 24, 2010

	 	 	 
	GIT	 	
        Judgment Amount: $33,537,994.65

         

        Judgment Against: Lakemount Homes Incorporated; Lakemount Homes
        Nevada, Inc.; Lakemount Communities, LLC and Lakemount Communities Nevada LLC (two of the guarantors are domiciled in California
        and two are domiciled in Nevada)

 

    	 

    	 

    

 

	 	 	
        Court: Superior Court of the State of California, County of
        Riverside, Indio Branch (domesticated as a foreign judgment in the Second Judicial Circuit of the State of Nevada in and for the
        County of Washoe)

         

        Judgment Date: Foreign judgment was filed and served (on the
        Nevada defendants) on July 9, 2010 and authorized on August 11, 2010

	 	 	 
	GIT	 	
        Judgment Amount: $77,678,707.23 (as of the petition date). The
        original judgment was for $100,387,281.88. The judgment was reduced by sale of note and property in the amount $22,021,699.44

         

        Judgment Against: Lourdes Zaczac and

        Georgi Zaczac, Sr. (husband and wife)

         

        Court: 11th Judicial Circuit, Miami-Dade County,
        Florida

         

        Judgment Date: August 21, 2008

	 	 	 
	GKK Hotel Niagara Owner LLC	 	
        Judgment Amount: $15,684,311.98

         

        Judgment Against: NS Partners LLC, James W. Henrie and Michael
        B. McBride

         

        Court: Supreme Court of the County of Niagara, New York

         

        Judgment Date: granted on December 22, 2011 and filed with the
        court on January 10, 2012

 

    	 

    	 

    

 

Schedule 3.05

 

Collateral Management

 

Schedule 3.05(a)

 

Letter from Tricadia to Wells Fargo Bank, N.A. dated as of August
5, 2011, asserting non-compliance with the provisions of the CDO Indenture for CDO Issuer 2007.

 

Letter from Torchlight Investors to Wells Fargo Bank, N.A. and
GKKM, dated as of August 11, 2011 asserting violation of the CDO Indenture for CDO Issuer 2005, and response letter by GKKM to
Torchlight Investors, dated as of August 18, 2011, clarifying misunderstanding.

 

The Par Value Test for the 2007 CDO is below the applicable
threshold set forth in the 2007 CMA and 2007 Indenture; however this is subject to the waiver letters for CDO Issuer 2007, listed
in Schedule 3.01(a)(i).

 

If any CDO Issuer fails to pay interest on any of the Secured
CDO Notes, this would constitute an “Event of Default” under the applicable CDO Indenture.

 

The monthly Trustee Reports for each CDO Issuer enumerate certain
tests, and indicate that certain of those tests have been failed.

 

Schedule 3.05(b)

 

None.

 

Schedule 3.05(c)

 

Management fees have accrued to GKKM since the last payment
date under the Existing Collateral Management Agreements (being January 25 for 2005 CDO and 2006 CDO, and November 15 for 2007
CDO).

 

    	 

    	 

    

 

Schedule 3.06

 

Servicing, Advancing and Related Matters

 

Schedule 3.06(a)(A)(i) and (ii)

 

Refer to document attached at the end of these
Schedules titled “Gramercy Capital Corp. – Servicing Advances Schedule”.

 

Situs is currently holding $8.6 million in
escrow from the payoff of the Atlantic Yards loan. Pursuant to a settlement agreement currently under negotiation between GLS and
C-III, dealing with the reimbursement of certain expenses and advances incurred by GLS on behalf of the Jameson Loan participants,
a portion of this amount will be used to reimburse GLS for certain servicing advances made in connection with the Jameson Loan.
GLS is not assigning or otherwise transferring its right to such escrow nor its right to receive such reimbursement under the Agreement.

 

Schedule 3.06(a)(A)(iii)

 

None.

 

Schedule 3.06(a)(B)

 

		1.	Collateral Management Agreement, dated as of July 14, 2005, between CDO Issuer 2005 and GKKM

 

		2.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2005, CDO
Co-Issuer 2005, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.

 

		3.	Collateral Management Agreement, dated as of August 24, 2006, between CDO Issuer 2006 and GKKM

 

		4.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2006, CDO
Co-Issuer 2006, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.

 

		5.	Collateral Management Agreement, dated as of August 8, 2007, between CDO Issuer 2007 and GKKM

 

		6.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2007, CDO
Co-Issuer 2007, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.

 

    	 

    	 

    

 

		7.	Special Servicing Agreement, dated as of May 8, 2009, as amended by the First Amendment to Special
Servicing Agreement and Amended and Restated Servicing Agreements dated as of March 1, 2010 and the Second Amendment to the Special
Servicing Agreement dated as of May 30, 2012, among GKKM, the CDO Issuers, the CDO Co-Issuers, Situs, GKKL and Wells Fargo Bank,
N.A.

 

		8.	Special Servicing Agreement, dated as of April 24, 2009 among GKKM, GLS, Green Loan Services LLC,
as special servicer, SL Green Operating Partnership L.P., GIT and Gramercy Capital Corp., as supplemented by a letter agreement,
dated as of March 29, 2011, among GLS and Green Loan Services LLC, a letter agreement, dated as of August 9, 2011, among GLS, SLG
Gramercy Services LLC and Green Loan Services LLC, and a letter agreement, dated as of November 10, 2011, among GKKM, GLS, GIT,
Gramercy Capital Corp., Green Loan Services LLC and SL Green Operating Partnership L.P.

 

Schedule 3.06(a)(x)

 

Refer to Schedule 3.06(a)(A)(i) and (ii).

 

Schedule 3.06(a)(y)

 

		1.	SL Green Operating Partnership L.P. is currently entitled to receive fees for servicing the assets
owned or held by Broadway 26 Waterview LLC pursuant to the Green Special Servicing Agreement. This arrangement will be terminated
on or prior to Closing pursuant to the Green Termination Agreement.

 

		2.	SL Green Operating Partnership L.P. is entitled to receive fees for servicing the assets owned or
held by GKK Arden Member LLC pursuant to the Amended and Restated Limited Liability Company Agreement of Angels SoCal Office LLC
dated as of September 28, 2012.

 

		3.	Archon Group L.P. is entitled to receive fees for accounting and servicing the assets owned or held
by GWF II SPE LLC (Las Vegas Hotel) pursuant to the Limited Liability Company Agreement of 3000 Paradise Road Holdco LLC dated
as of October 26, 2012.

 

Schedule 3.06(b)(A)

 

None.

 

Schedule 3.06(b)(B)

 

None.

 

    	 

    	 

    

 

Schedule 3.06(b)(C)

 

Refer to document attached at the end of these
Schedules titled “Gramercy Capital Corp. – Servicing Advances Schedule”.

 

Schedule 3.06(b)(D)

 

None.

 

    	 

    	 

    

 

Schedule 3.09

 

Proceedings; Judgments

 

		1.	ColFin JIH Funding, LLC et ano v. Gramercy Warehouse Funding I LLC et ano, Index No. 652252/2011.

 

		2.	ColFin JIH Funding, LLC et ano v. JER/Jameson Mezz Borrower II LLC et al., Index No. 652795/2011.

 

		3.	JER Financial Products III, LLC v. ColFin JIH Funding, LLC et ano, Index No. 652981/2011;

 

		4.	U.S. Bank, N.A., as Trustee for Registered Holders of Wachovia Bank Commercial Mortgage Trust, Commercial
Mortgage Pass-Through Certificates, Series 2006-WHALE 7, by and through its attorney-in-fact, Wells Fargo Bank, N.A. v. JER Financial
Products III, LLC, Index No. 653064/2011.

 

		5.	U.S. Bank National Association, as Trustee for Registered Holders of Wachovia Bank Commercial Mortgage
Trust, Commercial Mortgage Pass-Through Certificates, Series 2006-WHALE 7, by and through its attorneys in fact, Wells Fargo Bank,
N.A. v. Gramercy Warehouse Funding I LLC et ano, Index No. 653650/2011.

 

		6.	Gramercy Warehouse Funding I LLC et ano v. JER Financial Products III, LLC v. James Gregory III et
ano, Index No. 650810/2012.

 

		7.	Gramercy Warehouse Funding I LLC et ano v. ColFin JIH Funding LLC et al., No. 11 Civ. 9715 (S.D.N.Y.).

 

A global settlement agreement has been consummated
by all parties to the above-listed Jameson proceedings, with mutual releases exchanged upon funding, which occurred on January
14, 2013, with stipulations of discontinuance filed on January 15, 2013.

 

A supplemental settlement agreement is currently
under negotiation between GLS and C-III, dealing with the reimbursement of certain expenses and advances incurred by GLS on behalf
of the Jameson Loan participants, and the disbursement of approximately $8.6 million being held in escrow by Situs. Funds due to
GLS from CDO Issuer 2005 and CDO Issuer 2006 in connection with the Jameson Loan were received on January 25, 2013.

 

    	 

    	 

    

 

Schedule 3.11

 

Disclosure of Certain Documents

 

		1.	Collateral Management Agreement, dated as of July 14, 2005, between CDO Issuer 2005 and GKKM

 

		2.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2005, CDO
Co-Issuer 2005, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.

 

		3.	Collateral Management Agreement, dated as of August 24, 2006, between CDO Issuer 2006 and GKKM

 

		4.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2006, CDO
Co-Issuer 2006, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.

 

		5.	Collateral Management Agreement, dated as of August 8, 2007, between CDO Issuer 2007 and GKKM

 

		6.	Amended and Restated Servicing Agreement, dated as of June 1, 2009, among GKKM, CDO Issuer 2007, CDO
Co-Issuer 2007, Situs, GKKL and Wells Fargo Bank, N.A., as amended by the First Amendment to Special Servicing Agreement and Amended
and Restated Servicing Agreements dated as of March 1, 2010, among GKKM, CDO Issuers, CDO Co-Issuers, Situs, GKKL and Wells Fargo
Bank, N.A.

 

		7.	Special Servicing Agreement, dated as of May 8, 2009, as amended by the First Amendment to Special
Servicing Agreement and Amended and Restated Servicing Agreements dated as of March 1, 2010 and the Second Amendment to the Special
Servicing Agreement dated as of May 30, 2012, among GKKM, the CDO Issuers, the CDO Co-Issuers, Situs, GKKL and Wells Fargo Bank,
N.A.

 

		8.	Special Servicing Agreement, dated as of April 24, 2009 among GKKM, GLS, Green Loan Services LLC,
as special servicer, SL Green Operating Partnership L.P., GIT and Gramercy Capital Corp., as supplemented by a letter agreement,
dated as of March 29, 2011, among GLS and Green Loan Services LLC, a letter agreement, dated as of August 9, 2011, among GLS, SLG
Gramercy Services LLC and Green Loan Services LLC, and a letter agreement, dated as of November 10, 2011, among GKKM, GLS, GIT,
Gramercy Capital Corp., Green Loan Services LLC and SL Green Operating Partnership L.P.

 

		9.	Second Amended and Restated Participation and Servicing Agreement, dated as of May 6, 2010, between
GIT, Wells Fargo Bank, N.A. as trustee for CDO 2005, Wells Fargo Bank, N.A. as trustee for CDO 2006 and Gramercy Warehouse Funding
II LLC, with respect to the San Mateo Exec Park loan

 

    	 

    	 

    

 

		10.	Participation and Servicing Agreement, dated as of March 30, 2007, between Gramercy Warehouse Funding
I LLC and Wachovia Bank, N.A., with respect to the 26 Broadway loan

 

		11.	Trust, Participation and Servicing Agreement, dated as of June 29, 2006, between Gramercy Warehouse
Funding II LLC and Redwood Capital Finance Company LLC, with respect to the Church Street Plaza loan

 

		12.	Participation and Servicing Agreement, dated as of September 11, 2008, between GIT and GIT, with respect
to the First States Investors loan

 

		13.	Participation and Servicing Agreement, dated as of April 16, 2010, between GIT and GIT, with respect
to the Promenade Shops at Saucon Valley loan

 

		14.	Participation and Servicing Agreement, dated as of March 28, 2008, between GIT, Wells Fargo Bank,
N.A. as trustee for CDO 2005 and Wells Fargo Bank, N.A. as trustee for CDO 2006, with respect to the AFR Portfolio loan11

 

		15.	Second Amended and Restated Participation and Servicing Agreement, dated as of December 17, 2010,
between GIT, Wells Fargo Bank, N.A. as trustee for CDO 2005 and Wells Fargo Bank, N.A. as trustee for CDO 2006, with respect to
West Shore Plaza

 

		16.	Participation and Servicing Agreement, dated as of July 16, 2009, between GIT and GIT, with respect
to the Jemal 7th and L Street loan

 

		17.	Intercreditor Agreement, dated as of February 28, 2006, between CIBC, Inc. and Gramercy Warehouse
Funding I LLC, with respect to the Metro Corporate Center loan

 

		18.	Pooling and Servicing Agreement, dated as of March 16, 2006, between J.P. Morgan Chase Commercial
Mortgage Securities Corp., GMAC Commercial Mortgage Corporation, Midland Loan Services, Inc. and LaSalle Bank, N.A, with respect
to the Metro Corporate Center loan

 

		19.	Intercreditor Agreement, dated as of August 1, 2006, between Wachovia Bank, N.A. and Gramercy Warehouse
Funding I LLC, with respect to the 500-512 Seventh Avenue loan

 

		20.	Pooling and Servicing Agreement, dated as of August 1, 2006, between Wachovia Commercial Mortgage
Securities, Inc., Wachovia Bank, N.A., LNR Partners, Inc. and Wells Fargo Bank N.A., with respect to the 500-512 Seventh Avenue
loan

 

		21.	Pooling and Servicing Agreement, dated as of October 1, 2006, between Wachovia Commercial Mortgage
Securities, Inc., Wachovia Bank, N.A., CWCapital Asset Management LLC, Wells Fargo Bank N.A. and U.S. Bank N.A., with respect to
the 500-512 Seventh Avenue loan

 

 

11 Note that the AFR asset is now an REO entity due
to an assignment-in-lieu.

 

    	 

    	 

    

		22.	Participation and Servicing Agreement, dated as of December 20, 2006, between Gramercy Warehouse Funding
I LLC and Gramercy Warehouse Funding I LLC, with respect to the MF Polo Glen LLC loan

 

		23.	Participation and Servicing Agreement, dated as of December 20, 2006, between Gramercy Warehouse Funding
I LLC and Gramercy Warehouse Funding I LLC, with respect to the MF Hamptons LLC loan

 

		24.	Participation and Servicing Agreement, dated as of December 20, 2006, between Gramercy Warehouse Funding
I LLC and Gramercy Warehouse Funding I LLC, with respect to the MF Crosswynde LLC loan

 

		25.	Participation and Servicing Agreement, dated as of September 22, 2006, between Gramercy Warehouse
Funding II LLC and Gramercy Warehouse Funding II LLC, with respect to the Betsy Ross loan

 

		26.	Participation and Servicing Agreement, dated as of April 28, 2009, between GKK DC Lender LLC and GKK
DC Lender LLC, with respect to the Jemal Woodies loan

 

		27.	Participation and Servicing Agreement, dated as of August 27, 2007, between Gramercy Warehouse Funding
II LLC and Gramercy Warehouse Funding II LLC, with respect to the 185 Admiral Cochrane loan

 

		28.	Co-Lender Agreement, dated as of April 11, 2007, between UBS Real Estate Investments Inc., UBS Real
Estate Investments Inc. and UBS Real Estate Investments Inc., with respect to the Willis Tower loan

 

		29.	Pooling and Servicing Agreement, dated as of April 11, 2007, between Structured Asset Securities Corporation
II, Wachovia Bank, N.A., LNR Partners, Inc. and LaSalle Bank, N.A., with respect to the Willis Tower loan

 

    	 

    	 

    

	Gramercy Capital Corp.	 	 	 
	Servicing Advances Schedule	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	as of 1/30/2013	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Deal Name	 	CDO1 Advances Outstanding	 	 	CDO 1 Interest on Advances (1)	 	 	CDO2 Advances Outstanding	 	 	CDO 2 Interest on Advances (1)	 	 	CDO3 Advances Outstanding	 	 	CDO3 Interest on Advances (1)	 	 	GRAMERCY REIT Share of Advances	 	 	CDO & GKK Total Advances	 
	Arden REO	 	$	-	 	 	$	-	 	 	$	12,594	 	 	$	55	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	12,649	 
	AFR Portfolio	 	 	-	 	 	 	 	 	 	 	104,845	 	 	 	537	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	105,382	 
	Fiesta De Vida	 	 	-	 	 	 	-	 	 	 	795,455	 	 	 	61,826	 	 	 	-	 	 	 	-	 	 	 	21,825	 	 	 	879,106	 
	Roddy Ranch	 	 	4,282,972	 	 	 	269,663	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	65,032	 	 	 	4,617,667	 
	Coyote	 	 	1,233,105	 	 	 	27,214	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,260,319	 
	LVH	 	 	2,683,533	 	 	 	38,617	 	 	 	4,104,173	 	 	 	58,425	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	6,884,747	 
	CDO 2007-1 Advancing Agent	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	338,645	 	 	 	-	 	 	 	-	 	 	 	338,645	 
	Total	 	$	8,199,610	 	 	$	335,494	 	 	$	5,017,066	 	 	$	120,843	 	 	$	338,645	 	 	$	-	 	 	$	86,857	 	 	$	14,098,515	 

 

(1) Interest on Advances calculated from estimated payment date to 1/30/2013. Interest accrues at Prime Rate per Annum

 

    	 

    	 

    

	LSAM TRACKING SHEET	 	 	 	 	 	 	 
	1/30/2013	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	Leases	Contracts	Loan	Extraordinary Releases	Other
	Asset ID	Name	New	Amendments	New	Amendments	Modifications	 	Documents
	A000070	Sheraton Hotel Orlando	 	 	 	 	 	 	 
	B000014	SunCal 2nd lien	 	 	 	 	 	 	 
	B000035	SunCal 3rd lien	 	 	 	 	 	 	 
	A000064	Niagara Falls Plaza Guaranty	 	 	 	 	 	 	 
	M000008	Jameson Hotel Portfolio- Collection Efforts	 	 	 	 	 	 	 
	M000016	Jameson Hotel Portfolio- Collection Efforts	 	 	 	 	 	 	 
	M000032	JER Longhouse	 	 	 	 	 	 	Stub Interest owed Westmont - wire transfer processed
	M000012	Stuyvesant Town	 	 	 	 	 	 	 
	A000081	Jewelry Center	 	 	 	 	 	 	 
	RAa0013	Coral Cove Florida REO	 	 	 	Contract extended to 12/20/12. Expected to be extended again with a tenative closing date of 12/27/12	 	 	Property Sale Closed on 12/27/12.
	A000072	Fiesta De Vida REO	 	 	 	 	 	 	RE Taxes paid
	A000037	Roddy Ranch REO	 	 	 	 	 	 	RE Taxes paid - Entered into Contract for sale of asset.
	 	 	 	 	 	 	 	 	PSA - Credit Memo - situs approal letter
	A000044	Williams Gateway REO	 	 	 	 	 	 	Sold
	A000017	Coyote REO	 	 	 	 	 	 	RE Taxes paid
	A000014	Bellemead JV	 	1 Independence Way approval of Clive Samuels sub-let to Energy Squared through lease maturity 9/30/2013	 	 	 	 	 
	 	 	 	 	 	Amendment to Purchase and Sale Agreement - Closing date changed from November 30th to December 14th	 	 	 
	 	 	 	 	 	 	 	 	Sale to Normady Closed 12/18/12
	 	 	 	 	 	 	 	 	POST CLOSING FOLLOW-UP: (i) Normandy to calc and deliver 2012 tenant CAM reimbursements (est. $13,000), (ii) 2102 tenant real estate tax reimbursement (est $33,000), and (iii) Mack-Cali to deliver property casualty insurance refund
	A000028	LVH (formerly Las Vegas Hilton)	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Servicing - Termination, Liquidation Fee, Advance Letter Fully Executed
	 	 	 	 	 	 	 	 	2013 Budgets
	 	 	 	 	 	 	 	 	3000 PR Financial Statememts
	 	 	 	 	 	 	 	 	November 2012 capital additions for 3000 Paradise
	 	 	 	 	 	 	 	 	3000 PR cash balance as of 12/13/12
	 	 	 	 	 	 	 	 	LVH Gaming Bond Indemnity 1/4/13
	 	 	 	 	 	 	 	 	3000 PR YE 2012 Financials
	 	 	 	 	 	 	 	 	Crescent Heights MIPA received 1/22/13
	 	 	 	 	 	 	 	 	Casino Operations Lease Amendment Executed 1/24/13
	A000083	Philly Sports Club	 	 	 	 	Loan extended one month to 12/11/12 to facilitate a refinance. Loan matured and was paid off on 12/18/12 with default interest & late fees	 	 
	E000011	Arden- Cabi Portfolio REO	 	 	 	 	 	 	Entered into contract to sell the REO interest.
	A000033	Metro Corporate Center	 	 	 	 	 	 	Loan went into default 9/6/12, the NOD was filed and recorded on 11/16/2012 by Midland - Motion for receiver denied. Midland is continuing foreclosure process. This Loan is subject to an inter-creditor agreement
	S000005A	Makalei	 	 	 	 	 	 	Phase 1 ESA 12/12/12
	 	 	 	 	 	 	 	 	Situs Approval of REO Transaction dated 12/19/12
	 	 	 	 	 	 	 	 	Independent Advisor Approval 1/10/13
	 	 	 	 	 	 	 	 	Assignment in Lieu of Foreclosure completed 1/9/13
	S000005B	Whiteface Lodge Loan	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	2013 Hotel Budget
	 	 	 	 	 	 	 	 	2013 HOA Budget
	 	 	 	 	 	 	 	 	Phase 1 ESA 12/12/12
	 	 	 	 	 	 	 	 	Independent Advisor Information Package on REO Transaction
	 	 	 	 	 	 	 	 	Interval 317/9 Closed 11/7/12
	 	 	 	 	 	 	 	 	Interval 323/2 Closed 10/4/12
	 	 	 	 	 	 	 	 	Interval 214/6 Closed 12/18/12
	 	 	 	 	 	 	 	 	2013 Hotel and HOA Consolidated Budget
	 	 	 	 	 	 	 	 	November STAR Report
	 	 	 	 	 	 	 	 	Liquor License Conditional Letter of Approval dated 12/18/12
	 	 	 	 	 	 	 	 	Situs Approval of REO Transaction dated 12/19/12
	 	 	 	 	 	 	 	 	Sotheby's Termination 1/9/13
	 	 	 	 	 	 	 	 	Independent Advisor Approval 1/10/13
	 	 	 	 	 	 	 	 	Assignment in Lieu of Foreclosure completed 1/9/13
	A000073	Embassy Suites Anaheim	 	 	 	 	 	 	 
	A000100	Doubletree Bloomington	 	 	 	 	 	 	Construction Complete - Hotel fully functional. Gramercy evaluating construction closeout. 2013 budget approved.
	M000039	ten/10 post	 	Approval on 11/7/12 of Capital One lease modification to reduce occupied square footage, extend lease, and reduce rental rate	 	 	 	 	2013 Budget Received and Approved
	 	 	 	Executed Lease amendment for Boston Private Financial Holdings (BPFH) received. 149,940sf expiring 2/29/24	 	 	 	 	 
	A000103	Palm Beach Marriott	10-year lease executed with Cleve Marsh for a 5,935 sf night club space for $120,000 per annum (NNN) w/12-months free-rent	 	 	 	 	 	(a) 2013 Budget Received and Approved (b) November 2012 STR Report Received
	A000084	San Mateo Executive Park	 	Three GoPro lease amendments 9/11/12: (1) leasing 9.483 on a month-to-month until Building F becomes available for occupancy; (2) leasing 16,674sf in building A; (3) accelerating occupancy in building F to Jan 15, 2013	 	 	 	 	2013 Budget Received and Approved 

01/24/2013 GoPro lease expansion LOI for 15,818sf , brings leased space to 100% for the Property
	B000038	San Mateo Executive Park - B Note	 	 	 	 	 	 	 
	A000084a	San Mateo Executive Park - Accrual	 	 	 	 	 	 	12/26/2012 Borrower Equity Contribution schedule revised
	A000015	Betsy Ross Hotel	 	 	 	 	 	 	2013 Budget Approved
	A000013	Bay Communities	 	 	 	 	 	 	Borrower Exercised its Extension Option on Nov. 30th 2012 to extend the loan to 12/31/13. 2013 Budget Approved.
	A000012	Bascom	 	 	 	 	 	 	Working with Borrower to extend loan.
	A000105	aLoft Portfolio	 	 	 	 	 	 	2013 Budget Approved
	A000098	Church Street Plaza	 	 	 	 	 	 	2013 Budget Approved
	M000038	Jemal Woodies	 	 	 	 	 	 	 
	A000096	Jemal 7th and L Street	 	 	 	 	 	 	 
	A000085	Jemal Note (formerly 185 Admiral Cochrane)	 	 	 	 	 	 	 
	M000019	500-512 Seventh Avenue	 	 	 	 	 	 	 
	 	 	7.5-year lease executed with Iconology for 22,806 sf. $35 psf Gross rent w/bumps. Subject to conditions and SNDA	 	 	 	 	 	 
	A000074	FCE Skokie	 	 	 	 	 	 	 
	A000093	Coit Central Tower	10-year & 7 month lease executed with CBS Broadcasting for 20,269 sf (Entire top Floor). $16 psf Gross rent w/bumps. Subject to conditions and SNDA.	 	 	 	 	 	 
	A000104	East Memphis Marriott	 	 	 	 	 	 	 
	A000104b	East Memphis Marriott - Reserve Note	 	 	 	 	 	 	 
	A000101	Willis Tower - Component A	ShopperTrak for the entire 41st Floor (52,450 sf) starting 9/1/13 for 11.5 years subject to conditions and SNDA	 	 	 	 	 	 
	 	 	 	Renewal and extension with Oracle for 45th Floor (53k sf) effective 2/1/13 was approved by Gramercy.	 	 	 	 	 

 

    	 

    	 

    

 Exhibit A

 

Form of Sub-Special Servicing Termination
Letter 

 

 Gramercy Loan Services LLC

420 Lexington Avenue, 18th Floor

New York, New York 10170

 

January 29, 2013

 

SitusServ L.P.

4665 Southwest Freeway

Houston, Texas 77027

Attn:   Commercial Mortgage Servicing

Fax: (713) 328-4497

 

Situs Holdings, LLC

2 Embarcadero Center

Suite 1300

San Francisco, California 94111

Attn: Eric Lindner, Executive Managing Director

Fax: (415) 374-2704

 

Re:  Termination of Sub-Special
Servicing Agreement

 

Ladies and Gentlemen:

 

Reference is made to
the Sub-Special Servicing Agreement, dated as of May 8, 2009, as amended by the First Amendment to the Sub-Special Servicing Agreement
dated as of May 30, 2012 (as amended, the “Sub-Special Servicing Agreement”), each between Gramercy Loan Services
LLC (the “Sub-Special Servicer”) and SitusServ L.P. (“Situs”). Each capitalized term used
but not otherwise defined in this letter has the meaning given to such term in or pursuant to the Sub-Special Servicing Agreement.

 

As you know, GKK Manager
LLC may assign, subject to reaching agreement on certain terms and conditions, certain management duties related to the following
three collateralized debt obligation transactions: Gramercy Real Estate CDO 2005-1, Ltd., Gramercy Real Estate CDO 2006-1, Ltd.
and Gramercy Real Estate CDO 2007-1, Ltd. (the “Transaction”).

 

As part of the Transaction,
the Sub-Special Servicer desires to terminate its obligations, duties and responsibilities with respect to all the Assets in accordance
with Section 6.01(ii) of the Sub-Special Servicing Agreement, and the Sub-Special Servicer hereby provides Situs with written notice
thereof. Section 6.01 of the Sub-Special Servicing Agreement provides for thirty (30) days’ written notice to Situs. We hereby
request Situs to waive such requirement for thirty (30) days’ written notice by countersigning below, and promptly returning
such countersignature to us.

 

The termination of
the Sub-Special Servicer’s obligations, duties and responsibilities under the Sub-Special Servicing Agreement is subject
to, and shall be effective as of, the completion of the Transaction, the targeted effective date of which is no later than the
second Business Day following the date on which all of the conditions to the Transaction have been satisfied or waived (except
for any conditions that by their nature can only be satisfied on the effective date, but subject to the satisfaction or waiver
of such conditions) (the “Target Date”).

 

    	 

    	 

    

 

We remind you that
in accordance with Section 6.02(d) of the Sub-Special Servicing Agreement, the Sub-Special Servicer shall be entitled to all Sub-Special
Servicer compensation accrued through the effective date of termination of its obligations and rights under the Sub-Special Servicing
Agreement (including ongoing Workout Fees), and we reserve our rights in all respects in connection therewith.

 

We also remind you
that in accordance with Section 4.03 of the Sub-Special Servicing Agreement, the indemnification and limitation on liability provisions
set forth thereunder survive the termination of the Sub-Special Servicing Agreement and the termination or resignation of Situs
under the Special Servicing Agreement and the Sub-Special Servicing Agreement or the Sub-Special Servicer under the Sub-Special
Servicing Agreement, and we reserve our rights in all respects in connection therewith. We also reserve our indemnification rights
in all respects to the extent set forth in Section 3.01(b) of the Sub-Special Servicing Agreement.

 

This letter is subject
to revocation by the Sub-Special Servicer at any time and for any reason prior to the Target Date of the Transaction.

 

We look forward to
working with you over the course of the next several weeks in order to effect an orderly termination and transition.

 

	 	Very truly yours,
	 	 
	 	GRAMERCY LOAN SERVICES LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Acknowledged and agreed:

 

SITUSSERV L.P.

 

By:  Situs Holdings, LLC as successor in interest

 

	By:	 
	 	Name:
	 	Title:

 

    	2

    	 

    

 

 

Exhibit B

 

Form of Amended and Restated CMA

 

AMENDED AND RESTATED COLLATERAL MANAGEMENT
AGREEMENT

 

This Amended and Restated
Collateral Management Agreement, dated as of [●], 2013 (the “Agreement”), is entered into by and between
GRAMERCY REAL ESTATE CDO 2005-1, Ltd., an exempted company incorporated with limited liability under the laws of the Cayman Islands
(together with successors and assigns permitted hereunder, the “Issuer”), and CWCAPITAL INVESTMENTS LLC, a limited
liability company organized under the laws of the Commonwealth of Massachusetts (“CWCI” and together with its
successors and assigns, the “Collateral Manager”). Capitalized terms used herein but not otherwise defined herein
shall have the respective meanings ascribed thereto in the Indenture, dated as of July 14, 2005 (as amended to the date hereof,
the “Indenture”), by and among the Issuer, Gramercy Real Estate CDO 2005-1 LLC, as co-issuer (the “Co-Issuer”),
Wells Fargo Bank, National Association, as trustee (in such capacity, the “Trustee”), calculation agent, transfer
agent, custodial securities intermediary, backup advancing agent and notes registrar, and CWCapital Investments LLC, as advancing
agent.

 

WHEREAS, the Issuer appointed
GKK Manager LLC (“GKKM”) as the Collateral Manager pursuant to a Collateral Management Agreement, dated as of
July 14, 2005 (the “Original CMA”), to perform certain duties and services with respect to the Assets;

 

WHEREAS, pursuant to
an Assignment and Assumption Agreement, dated as of the date hereof (the “A&A Agreement”), GKKM has assigned
to CWCI all of its rights and obligations as Collateral Manager under the Original CMA, with effect as of the date hereof, pursuant
to the terms of the A&A Agreement;

 

WHEREAS, the Collateral
Manager and the Issuer desire to amend and restate the Agreement to make certain limited changes;

 

WHEREAS, Rating Agency
Condition with respect to each Rating Agency has been satisfied in connection with CWCI becoming the Collateral Manager;

 

WHEREAS, each of the
Issuer and the Collateral Manager wishes to enter into this Agreement pursuant to which the Collateral Manager agrees to perform,
on behalf of the Issuer, on and after the date hereof, certain duties and services with respect to the Assets in the manner and
on the terms set forth herein, and the Collateral Manager has the capacity to provide the services required hereby and is prepared
to perform such services upon the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements set forth herein, the parties hereto hereby agree to amend and restate the Original CMA
and agree as follows:

 

1.          Management
Services. The Collateral Manager is hereby appointed as the Issuer’s exclusive agent to provide to the Issuer certain
services in relation to the Assets specified herein and in the Indenture. Accordingly, the Collateral Manager accepts such appointment
and shall provide to the Issuer the following services (in accordance with all applicable requirements of the Indenture and this
Agreement including without limitation the Collateral Manager Servicing Standard):

 

    	 

    	 

    

 

 

(a)        determining
specific Collateral Debt Securities to be purchased or Collateral Debt Securities to be sold and the timing of such purchases and
sales, in each case as permitted by the Indenture;

 

(b)        determining
specific Eligible Investments to be purchased or sold and the timing of such purchases and sales, in each case as permitted by
the Indenture;

 

(c)        effecting
or directing the purchase of Collateral Debt Securities and Eligible Investments, effecting or directing the sale of Collateral
Debt Securities and Eligible Investments, and directing the investment or reinvestment of proceeds therefrom, in each case as permitted
by the Indenture;

 

(d)        negotiating
with the issuers of Collateral Debt Securities as to proposed modifications or waivers of the documentation governing such Collateral
Debt Securities;

 

(e)        taking
action, or advising the Trustee with respect to actions to be taken, with respect to the Issuer’s exercise of any rights
(including, without limitation, voting rights, tender rights and rights arising in connection with the bankruptcy or insolvency
of an issuer or the consensual or non-judicial restructuring of the debt or equity of an issuer) or remedies in connection with
the Collateral Debt Securities and Eligible Investments, as provided in the related Underlying Instruments, including in connection
with an Offer or a default, and participating in the committees or other groups formed by creditors of an issuer, or taking any
other action with respect to Collateral Debt Securities and Eligible Investments which the Collateral Manager determines in the
reasonable exercise of the Collateral Manager’s business judgment is in the best interests of the Noteholders in accordance
with and as permitted by the terms of the Indenture;

 

(f)         consulting
with the Rating Agencies at such times as may be reasonably requested by the Rating Agencies and providing to the Rating Agencies
any information reasonably requested in connection with the Rating Agencies’ maintenance of their ratings of the Notes and
their assigning credit indicators to prospective Collateral Debt Securities, if applicable;

 

(g)        determining
whether specific Collateral Debt Securities are Credit Risk Securities, Defaulted Securities or Written Down Securities and determining
whether such Collateral Debt Securities, and any other Collateral Debt Securities that are permitted or required to be sold pursuant
to the Indenture, should be sold, and directing the Trustee to effect a disposition of any such Collateral Debt Securities, subject
to and in accordance with the Indenture;

 

(h)        (i)
monitoring the Assets on an ongoing basis and (ii) providing or causing to be provided to the Issuer and/or the other applicable
parties specified in the Indenture all reports, schedules and certificates which relate to the Assets and which the Issuer is required
to prepare and deliver under the Indenture, which are not prepared and delivered by the Trustee on behalf of the Issuer under the
Indenture, in the form and containing all information required thereby (including, in the case of the Monthly Reports and the Note
Valuation Reports, providing to the Trustee the information as specified in Sections 10.9(c) and 10.9(e) of the Indenture
in sufficient time for the Trustee to prepare the Monthly Reports and the Note Valuation Reports) and, if applicable, in sufficient
time for the Issuer to review such required reports and schedules and to deliver them to the parties entitled thereto under the
Indenture;

 

    	- 2 -

    	 

    

 

(i)         managing
the Issuer’s investments in accordance with the Indenture, including the limitations relating to the Eligibility Criteria,
the Coverage Tests, the Collateral Quality Tests, the Reinvestment Criteria and the other requirements of the Indenture, and taking
any action that the Collateral Manager deems appropriate and consistent with the Indenture, the Collateral Manager Servicing Standard
and the standard of care set forth herein with respect to any portion of the Assets that does not constitute Collateral Debt Securities
or Eligible Investments;

 

(j)         monitoring
all Hedge Agreements and determining whether and when the Issuer should exercise any rights available under any Hedge Agreement,
and causing the Issuer to enter into additional or replacement Hedge Agreements or terminating (in part or in whole) existing Hedge
Agreements, in each case in accordance with the Indenture;

 

(k)        providing
notification promptly, in writing, to the Trustee and the Issuer upon receiving actual notice that a Collateral Debt Security is
subject to an Offer or has become a Defaulted Security, a Written Down Security or a Credit Risk Security;

 

(l)         providing
notification promptly, in writing, to the Trustee and the Issuer upon becoming actually aware of a Default or an Event of Default
under the Indenture;

 

(m)       determining
(subject to the Indenture) whether, in light of the composition of Collateral Debt Securities, general market conditions and other
factors considered pertinent by the Collateral Manager, investments in additional Collateral Debt Securities would, at any time
during the Reinvestment Period, be either impractical or not beneficial to the Holders of the Preferred Shares;

 

(n)        if
the Collateral Manager elects to amortize the Notes pursuant to and in accordance with Section 9.7 of the Indenture, providing
notification, in writing, to the Trustee, the Issuer, the Co-Issuer and each Hedge Counterparty of (A) such election and (B) the
amount of proceeds that will be used to so amortize the Notes;

 

(o)        taking
reasonable action on behalf of the Issuer to effect any Optional Redemption, any Tax Redemption, any Auction Call Redemption or
any Clean-up Call in accordance with the Indenture;

 

(p)        on
the Stated Maturity of the Notes or in connection with any Optional Redemption, any Tax Redemption, any Auction Call Redemption
or any Clean-up Call, liquidating any remaining Hedge Agreements;

 

(q)        monitoring
the ratings of the Collateral Debt Securities and the Issuer’s compliance with the covenants by the Issuer in the Indenture;

 

(r)         assisting
the Issuer in (i) taking any action in order to effect and/or maintain the listing of any of the Notes on the Irish Stock Exchange
or (ii) obtaining any waiver from the Irish Stock Exchange, or (iii) providing other information related to the Issuer that is
reasonably available to the Collateral Manager, in each case, when specifically requested by the Irish Stock Exchange;

 

    	- 3 -

    	 

    

 

(s)        complying
with such other duties and responsibilities as may be specifically required of the Collateral Manager by the Indenture or this
Agreement;

 

(t)         complying
in all material respects with the Investment Advisers Act of 1940, as amended (the “Advisers Act”), with respect
to the Issuer;

 

(u)        in
order to render the Securities eligible for resale pursuant to Rule 144A under the Securities Act, while any of such Securities
remain outstanding, making available, upon request, to any Holder or prospective purchaser of such Securities, additional information
regarding the Issuer and the Assets if such information is reasonably available to the Collateral Manager and constitutes Rule 144A
Information required to be furnished by the Issuer pursuant to Section 7.13 of the Indenture, unless the Issuer furnishes
information to the United States Securities and Exchange Commission pursuant to Section 13 or Section 15(d) of the Exchange
Act;

 

(v)        upon
reasonable request, assisting the Trustee or the Issuer with respect to such actions to be taken after the Closing Date, as is
necessary to maintain the clearing and transfer of the Notes through DTC; and

 

(w)       in
accordance with the Collateral Manager Servicing Standard, enforcing the rights of the Issuer as holder of the Collateral Debt
Securities, including without limitation taking such action as is necessary to enforce the Issuer’s rights with respect to
remedies related to breaches of representations, warranties or covenants in the Underlying Instruments for the benefit of the Issuer.

 

In furtherance of the
foregoing, the Issuer hereby appoints the Collateral Manager the Issuer’s true and lawful agent and attorney-in-fact, with
full power of substitution and full authority in the Issuer’s name, place and stead and without any necessary further approval
of the Issuer, in connection with the performance of the Collateral Manager’s duties provided for in this Agreement, including
the following powers: (i) in accordance with the terms and conditions of the Indenture and this Agreement, to buy, sell, exchange,
convert and otherwise trade Collateral Debt Securities and Eligible Investments, and (ii) to execute (under hand, under seal or
as a deed) and deliver all necessary and appropriate documents and instruments on behalf of the Issuer to the extent necessary
or appropriate to perform the services referred to in (a) through (w) above of this Section 1 and under the Indenture. The
foregoing power of attorney is a continuing power, coupled with an interest, and shall remain in full force and effect until revoked
by the Issuer in writing by virtue of the termination of this Agreement pursuant to Section 12 hereof or an assignment of
this Agreement pursuant to Section 17 hereof; provided that any such revocation shall not affect any transaction initiated
prior to such revocation. Nevertheless, if so requested by the Collateral Manager, a purchaser of a Collateral Debt Security or
Eligible Investment or a Hedge Counterparty, the Issuer shall ratify and confirm any such sale or other disposition by executing
and delivering to the Collateral Manager, such purchaser or such Hedge Counterparty all proper bills of sale, assignments, releases
and other instruments as may be designated in any such request.

 

    	- 4 -

    	 

    

 

The Collateral Manager
does not hereby guarantee that sufficient funds will be available on each Payment Date to satisfy any such payment obligations.
The Collateral Manager shall perform its obligations hereunder and under the Indenture with reasonable care and in good faith,
using a degree of skill and attention no less than that which it (a) exercises with respect to comparable assets that it manages
for itself and (b) exercises with respect to comparable assets that it manages for others, and in a manner consistent with the
practices and procedures then in effect followed by reasonable and prudent institutional managers of national standing relating
to assets of the nature and character of the Assets, except as expressly provided in this Agreement or in the Indenture. In addition,
the Collateral Manager shall use commercially reasonable efforts to ensure that directions to the Trustee with respect to the purchase
of Eligible Investments are made by the Collateral Manager only if, in the Collateral Manager’s commercially reasonable judgment
at the time of such direction, payment at settlement in respect of any such purchase could be made without any breach or violation
of, or default under, the terms of the Indenture or this Agreement. The Collateral Manager shall comply with and perform all the
duties and functions that have been specifically delegated to the Collateral Manager under the Indenture. The Collateral Manager
shall be bound to follow any amendment, supplement or modification to the Indenture of which it has received written notice at
least ten Business Days prior to the execution and delivery thereof by the parties thereto; provided, however, that,
with respect to any amendment, supplement, modification or waiver to the Indenture which may affect the Collateral Manager, the
Collateral Manager shall not be bound thereby (and the Issuer agrees that it will not permit any such amendment, supplement, modification
or waiver to become effective) unless the Collateral Manager has been given prior written notice thereof and gives its written
consent thereto (which consent shall not be unreasonably withheld) to the Trustee and the Issuer prior to the effectiveness thereof.

 

The Collateral Manager
shall take all actions reasonably requested by the Trustee to facilitate the perfection of the Trustee’s security interest
in the Assets pursuant to the Indenture.

 

2.          Delegation
of Duties. The Collateral Manager may delegate to third parties (including its Affiliates), which it shall select with reasonable
care, and employ third parties to execute any or all of the duties assigned to the Collateral Manager hereunder; provided,
however, that (i) the Collateral Manager shall not be relieved of any of its duties hereunder as a result of such delegation
to or employment of third parties, (ii) the Collateral Manager shall be solely responsible for the fees and expenses payable to
any such third party, except as set forth in Section 6 hereof, and (iii) such delegation does not constitute an “assignment”
under the Advisers Act.

 

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3.          Purchase
and Sale Transactions; Brokerage.

 

(a)        The
Collateral Manager shall seek to obtain the best overall terms for all orders placed with respect to the Assets, considering all
reasonable circumstances, including, if applicable, the conditions or terms of early redemption of the Securities, it being understood
that the Collateral Manager has no obligation to obtain the lowest prices available. Subject to the foregoing objective, the Collateral
Manager may take into consideration all factors the Collateral Manager reasonably determines to be relevant, including, without
limitation, timing, general relevant trends and research and other brokerage services and support equipment and services related
thereto furnished to the Collateral Manager or its Affiliates by brokers and dealers in compliance with Section 28(e) of the
Exchange Act or, if Section 28(e) of the Exchange Act is not applicable, in accordance with the provisions set forth herein.
Such services may be used in connection with the other advisory activities or investment operations of the Collateral Manager and/or
its Affiliates. In addition, the Collateral Manager may take into account available prices, rates of brokerage commissions and
size and difficulty of the order, in addition to other relevant factors (such as, without limitation, execution capabilities, reliability
(based on total trading rather than individual trading), integrity, financial condition in general, execution and operational capabilities
of competing brokers and/or dealers, and the value of the ongoing relationship with such brokers and/or dealers), without having
to demonstrate that such factors are of a direct benefit to the Issuer in any specific transaction. The Issuer acknowledges and
agrees that (i) the determination by the Collateral Manager of any benefit to the Issuer is subjective and represents the Collateral
Manager’s evaluation at the time that the Issuer will be benefited by relatively better purchase or sales prices, lower brokerage
commissions and beneficial timing of transactions or a combination of any of these and/or other factors and (ii) the Collateral
Manager shall be fully protected with respect to any such determination to the extent the Collateral Manager acts in good faith,
and in accordance with the Collateral Manager Servicing Standard (to the extent applicable), and without gross negligence, willful
misconduct or reckless disregard of the obligations of the Issuer hereunder or under the terms of the Indenture.

 

The Collateral Manager
may aggregate sales and purchase orders of securities placed with respect to the Assets with similar orders being made simultaneously
for other accounts managed by the Collateral Manager or with accounts of the Affiliates of the Collateral Manager if in the Collateral
Manager’s sole judgment, exercised in good faith, such aggregation will not have an adverse effect on the Issuer. When any
such aggregate sales or purchase orders occur, the objective of the Collateral Manager (and any of its Affiliates involved in such
transactions) shall be to allocate the executions among the accounts in a manner fair and equitable to all such accounts and generally
to seek to allocate securities available for investment to all such accounts pro rata in proportion to the optimum amount
sought by the Collateral Manager for each respective account. In connection with the foregoing, the objective of the Collateral
Manager shall be to allocate investment opportunities and the purchases or sales of instruments in a manner believed by the Collateral
Manager, in good faith, taking into account the Collateral Manager’s Servicing Standard (to the extent applicable), to be
fair and equitable.

 

In connection with any
purchase of a portfolio of assets other than securities, the objective of the Collateral Manager shall be to allocate such assets
(and the aggregate purchase price paid for such assets) among the Collateral Manager’s clients (including the Issuer) in
a manner believed by the Collateral Manager to be fair and equitable. The Issuer acknowledges and agrees that the Collateral Manager
shall be fully protected with respect to any such allocation to the extent the Collateral Manager acts in good faith, taking into
account the Collateral Manager’s Servicing Standard (to the extent applicable), and without gross negligence, willful misconduct
or reckless disregard of the obligations of the Issuer hereunder or under the terms of the Indenture.

 

    	- 6 -

    	 

    

 

All purchases and sales
of Eligible Investments and Collateral Debt Securities by the Collateral Manager on behalf of the Issuer shall be conducted in
compliance with all applicable laws (including, without limitation, Section 206(3) of the Advisers Act) and the terms of the
Indenture. After (and excluding) the Closing Date, the Collateral Manager shall cause any purchase or sale of any Collateral Debt
Security or Eligible Investment to be conducted on an arm’s-length basis or, if applicable, in compliance with Section 3(b)
hereof.

 

(b)          The
Collateral Manager, subject to and in accordance with the Indenture, may effect direct trades between the Issuer and the Collateral
Manager or any of its Affiliates acting as principal or agent (any such transaction, a “Related Party Trade”);
provided, however, that a Related Party Trade after (and excluding) the Closing Date, other than Credit Risk/Defaulted
Security Cash Purchases, sales of property or securities in accordance with the Origination Agreement and sales of Assets pursuant
to an auction in connection with an Auction Call Redemption or in connection with a redemption of the Notes pursuant to Article
9 of the Indenture, may be effected only (i) upon disclosure to and with the prior consent of an advisory committee containing
at least one member independent from the Collateral Manager (whose affirmative vote will be required to grant such consent) acting
as a surrogate for, and in the best interest of, the holders of the Securities that has been appointed from time to time as needed
by the Issuer or by the Collateral Manager following the resignation of any member (the “Advisory Committee”)
and based on the Advisory Committee’s determination that such transaction is on terms substantially as favorable to the Issuer
as would be the case if a such transaction were effected with Persons not so affiliated with the Collateral Manager or any of its
Affiliates and (ii) subject to a requirement that the purchase price in respect of any Collateral Debt Security acquired by the
Issuer from a Seller pursuant to such a direct trade may not exceed the Principal Balance thereof plus accrued and unpaid interest
thereon (or, in the case of a Preferred Equity Security, all accrued and unpaid dividends or other distributions not attributable
to the return of capital by its governing documents). The Advisory Committee, if any, shall be formed subject to the Advisory Committee
Guidelines attached hereto as Exhibit A (the “Advisory Committee Guidelines”). The Issuer consents
and agrees that, if any transaction relating to the Issuer, including any transaction effected between the Issuer and the Collateral
Manager or its Affiliates, shall be subject to the disclosure and consent requirements of Section 206(3) of the Advisers Act,
such requirements shall be satisfied with respect to the Issuer and all Holders of the Securities if disclosure shall be given
to, and consent obtained from, the Advisory Committee. For avoidance of doubt, it is hereby understood and agreed by the parties
hereto that no disclosure to, or consent of, the Advisory Committee shall be required with respect to Credit Risk/Defaulted Security
Cash Purchases, sales of property or securities in accordance with the Origination Agreement and sales of Assets pursuant to an
auction in connection with an Auction Call Redemption or in connection with a redemption of the Notes pursuant to Article 9 of
the Indenture. Notwithstanding the foregoing, to the extent such provisions are determined not to satisfy the requirements of the
Advisers Act, the Collateral Manager shall take such actions in connection with any Related Party Trade as will satisfy the requirements
of Section 206(3) of the Advisers Act.

 

    	- 7 -

    	 

    

 

4.          Representations
and Warranties of the Issuer. The Issuer represents and warrants to the Collateral Manager that:

 

(a)        the
Issuer (i) has been duly incorporated and registered as an exempted company and is validly existing under the laws of the Cayman
Islands, (ii) has full power and authority to own the Issuer’s assets and the securities proposed to be owned by the Issuer
and included among the Assets and to transact the business for which the Issuer was organized, and (iii) is duly qualified under
the laws of each jurisdiction where the Issuer’s ownership or lease of property or the conduct of the Issuer’s business
requires or the performance of the Issuer’s obligations under this Agreement and the Indenture would require such qualification,
except for failures to be so qualified that would not in the aggregate have a material adverse effect on the business, operations,
assets or financial condition of the Issuer or the ability of the Issuer to perform its obligations under, or on the validity or
enforceability of, this Agreement and the Indenture; the Issuer has full power and authority to execute, deliver and perform the
Issuer’s obligations hereunder and thereunder; this Agreement and the Indenture have been duly authorized, executed and delivered
by the Issuer and constitute legal, valid and binding agreements enforceable against the Issuer in accordance with their terms
except that the enforceability thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium, receivership,
conservatorship or other similar laws now or hereafter in effect relating to creditors’ rights and (ii) general principles
of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law);

 

(b)        no
consent, approval, authorization or order of or declaration or filing with any government, governmental instrumentality or court
or other Person is required for the performance by the Issuer of its duties hereunder or under the Indenture, except those that
may be required under state securities or “blue sky” laws or the applicable laws of any jurisdiction outside of the
United States, and such as have been duly made or obtained;

 

(c)        neither
the execution, delivery and performance of this Agreement or the Indenture nor the performance by the Issuer of its duties hereunder
or thereunder (i) conflicts with or will violate or result in a default under the Issuer’s Governing Documents or any material
contract or agreement to which the Issuer is a party or by which it or its assets may be bound, or any law, decree, order, rule,
or regulation applicable to the Issuer of any court or regulatory, administrative or governmental agency, body or authority or
arbitrator having jurisdiction over the Issuer or its properties, or (other than as contemplated or permitted by the Indenture)
will result in a lien on any of the property of the Issuer and (ii) would have a material adverse effect upon the ability of the
Issuer to perform its duties under this Agreement or the Indenture;

 

(d)        the
Issuer and its Affiliates are not in violation of any Federal, state or Cayman Islands laws or regulations, and there is no charge,
investigation, action, suit or proceeding before or by any court or regulatory agency pending or, to the best knowledge of the
Issuer, threatened that, in any case, would have a material adverse effect upon the ability of the Issuer to perform its duties
under this Agreement or the Indenture;

 

(e)        the
Issuer is not an “investment company” under the Investment Company Act; and

 

(f)         the
assets of the Issuer do not and will not at any time constitute the assets of any plan subject to the fiduciary responsibility
provisions of ERISA or of any plan within the meaning of Section 4975(e)(1) of the Code.

 

    	- 8 -

    	 

    

 

5.          Representations
and Warranties of the Collateral Manager. The Collateral Manager represents and warrants to the Issuer that:

 

(a)        the
Collateral Manager (i) has been duly organized, is validly existing and is in good standing under the laws of the Commonwealth
of Massachusetts, (ii) has full power and authority to own the Collateral Manager’s assets and to transact the business in
which it is currently engaged, and (iii) is duly qualified and in good standing under the laws of each jurisdiction where the Collateral
Manager’s ownership or lease of property or the conduct of the Collateral Manager’s business requires, or the performance
of this Agreement and the Indenture would require, such qualification, except for failures to be so qualified that would not in
the aggregate have a material adverse effect on the business, operations, assets or financial condition of the Collateral Manager
or the ability of the Collateral Manager to perform its obligations under, or on the validity or enforceability of, this Agreement
and the provisions of the Indenture applicable to the Collateral Manager; the Collateral Manager has full power and authority to
execute, deliver and perform this Agreement and the Collateral Manager’s obligations hereunder and the provisions of the
Indenture applicable to the Collateral Manager; this Agreement has been duly authorized, executed and delivered by the Collateral
Manager and constitutes a legal, valid and binding agreement of the Collateral Manager, enforceable against it in accordance with
the terms hereof, except that the enforceability hereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium
or other similar laws now or hereafter in effect relating to creditors’ rights and (ii) general principles of equity
(regardless of whether such enforcement is considered in a proceeding in equity or at law);

 

(b)        neither
the Collateral Manager nor any of its Affiliates is in violation of any Federal or state securities law or regulation promulgated
thereunder that would have a material adverse effect upon the ability of the Collateral Manager to perform its duties under this
Agreement or the Indenture, and there is no charge, investigation, action, suit or proceeding before or by any court or regulatory
agency pending or, to the best knowledge of the Collateral Manager, threatened which could reasonably be expected to have a material
adverse effect upon the ability of the Collateral Manager to perform its duties under this Agreement or the Indenture;

 

(c)        neither
the execution and delivery of this Agreement nor the performance by the Collateral Manager of its duties hereunder or under the
Indenture conflicts with or will violate or result in a breach or violation of any of the terms or provisions of, or constitutes
a default under: (i) the limited liability company agreement of the Collateral Manager, (ii) the terms of any indenture, contract,
lease, mortgage, deed of trust, note agreement or other evidence of indebtedness or other agreement, obligation, condition, covenant
or instrument to which the Collateral Manager is a party or by which the Collateral Manager is bound, (iii) any law, decree, order,
rule or regulation applicable to the Collateral Manager of any court or regulatory, administrative or governmental agency, body
or authority or arbitrator having jurisdiction over the Collateral Manager or its properties, and which would have, in the case
of any of (i), (ii) or (iii) of this subsection (c), either individually or in the aggregate, a material adverse effect on the
business, operations, assets or financial condition of the Collateral Manager or the ability of the Collateral Manager to perform
its obligations under this Agreement or the Indenture;

 

(d)        no
consent, approval, authorization or order of or declaration or filing with any government, governmental instrumentality or court
or other Person is required for the performance by the Collateral Manager of its duties hereunder and under the Indenture, except
such as have been duly made or obtained; and

 

    	- 9 -

    	 

    

 

(e)        the
Collateral Manager is a registered investment adviser under the Advisers Act.

 

6.          Expenses.
Both parties hereto acknowledge and agree that a portion of the gross proceeds received from the issuance and sale of the Securities
will be used to pay certain organizational and structuring fees and expenses of the Co-Issuers, including the legal fees and expenses
of counsel to the Collateral Manager. The Collateral Manager shall pay all expenses and costs incurred by it in the course of performing
its obligations under this Agreement; provided, however, that the Collateral Manager shall not be liable for, and
(subject to the Priority of Payments set forth in the Indenture and to the extent funds are available therefor) the Issuer shall
be responsible for the payment of, reasonable expenses and costs (including, without limitation, reasonable travel expenses) of
(i) independent accountants, consultants and other advisers retained by the Issuer or by the Collateral Manager on behalf of the
Issuer in connection with the services provided by the Collateral Manager hereunder, (ii) legal advisers retained by the Issuer
or by the Collateral Manager on behalf of the Issuer in connection with the services provided by the Collateral Manager hereunder
and (iii) the Collateral Manager (A) to the extent of reasonable expenses disbursed or allocated in valuing the Assets, disbursed
or allocated software and technology expenditures relating to the monitoring and administration of the Assets and any other reasonable
expenses incurred by the Collateral Manager in connection with matters arising in the performance of its duties under this Agreement
and (B) for an allocable share of the cost of certain credit databases used by the Collateral Manager in providing services to
the Issuer under this Agreement.

 

7.          Fees.
As compensation for the performance of its obligations as Collateral Manager hereunder and under the Indenture, the Collateral
Manager will be entitled to receive (i) a fee, payable quarterly in arrears on each Payment Date in accordance with the Priority
of Payments, equal to 0.15% per annum of the Net Outstanding Portfolio Balance (the “Senior Collateral Management Fee”)
and (ii) an additional fee, payable quarterly in arrears on each Payment Date in accordance with the Priority of Payments, equal
to 0.25% per annum of the Net Outstanding Portfolio Balance (the “Subordinate Collateral Management Fee” and,
together with the Senior Collateral Management Fee, the “Collateral Management Fee”). Each Collateral Management
Fee will be calculated for each Interest Accrual Period assuming a 360-day year with 12 thirty-day months. The Collateral Management
Fee will be calculated based on the Net Outstanding Portfolio Balance as of the first day of the applicable Interest Accrual Period.
If on any Payment Date there are insufficient funds to pay such fees (and/or any other amounts due and payable to the Collateral
Manager) in full, in accordance with the Priority of Payments, the amount not so paid shall be deferred and such amounts shall
be payable on such later Payment Date on which funds are available therefor as provided in the Priority of Payments set forth in
the Indenture. Any accrued and unpaid Senior Collateral Management Fee that is deferred due to the operation of the Priority of
Payments shall accrue interest at LIBOR in effect for the applicable Interest Accrual Period computed on an actual 360-day basis.
Any accrued and unpaid Subordinate Collateral Management Fee that is deferred due to the operation of the Priority of Payments
shall accrue interest at LIBOR in effect for the applicable Interest Accrual Period on an actual 360-day basis. Notwithstanding
any other provision hereof, the aggregate amount of all accrued but unpaid Subordinate Collateral Management Fee payable on the
final Payment Date or, if earlier, following the winding up of the Issuer shall be equal to the lesser of (a) the nominal amount
thereof and (b) the amount available for payment under the Priority of Payments. The Collateral Manager hereby agrees not to cause
the filing of a petition in bankruptcy against the Issuer for the nonpayment to the Collateral Manager of any amounts due it hereunder
except in accordance with Section 18 hereof and, subject to the provisions of Section 12, to continue to serve as Collateral
Manager. If this Agreement is terminated pursuant to Section 12 hereof or otherwise, the accrued fees payable to the Collateral
Manager shall be prorated for any partial periods between the Payment Dates during which this Agreement was in effect and shall
be due and payable on the first Payment Date following the date of such termination, together with all expenses payable to the
Collateral Manager in accordance with Section 6 hereof, and subject to the provisions of the Indenture and the Priority of
Payments.

 

    	- 10 -

    	 

    

 

8.          Non-Exclusivity.
Nothing herein shall prevent the Collateral Manager or any of its Affiliates or any of their officers or directors from engaging
in any other businesses or providing investment management, advisory or any other types of services to any Persons, including the
Issuer, the Trustee and the Noteholders, to the fullest extent permitted by applicable law; provided, however, that
the Collateral Manager may not take any of the foregoing actions which the Collateral Manager knows or reasonably should know would
require the Issuer or the pool of Assets to register as an “investment company” under the Investment Company Act.

 

9.          Conflicts
of Interest.

 

(a)        After
(but excluding) the Closing Date and the sales by Affiliates of the Collateral Manager of Collateral Debt Securities to the Issuer
on the Closing Date (and except in the case of Credit Risk/Defaulted Security Cash Purchases, sales of property or securities in
accordance with the Origination Agreement and sales of Assets pursuant to an auction in connection with an Auction Call Redemption
or in connection with a redemption of the Notes pursuant to Article 9 of the Indenture), the Collateral Manager will not cause
the Issuer to enter into any transaction with the Collateral Manager or any of its Affiliates as principal unless the applicable
terms and conditions set forth in Section 3(b) are complied with.

 

(b)        The
Collateral Manager shall perform its obligations hereunder in accordance with the requirements of the Advisers Act and the Indenture.
The Issuer acknowledges that the Collateral Manager, its Affiliates and funds or accounts for which the Collateral Manager or its
Affiliates acts as investment adviser may at times own Notes of one or more Classes. After the Closing Date, the Collateral Manager
agrees to provide to the Trustee written notice upon the acquisition or transfer (after, but excluding, the Closing Date) of any
Securities held by the Collateral Manager, any of its Affiliates or any fund managed or controlled by the Collateral Manager or
any Affiliate thereof.

 

(c)        Nothing
herein shall prevent the Collateral Manager or any of its Affiliates or officers and directors of the Collateral Manager from engaging
in other businesses (including financing, purchasing, owning, holding, originating or disposing of any assets or investments),
or from rendering services of any kind to the Issuer and its Affiliates, the Trustee, the Holders or any other Person or entity,
whether or not any of the foregoing may be competitive with the business of the Issuer or the Co-Issuer. Without prejudice to the
generality of the foregoing, directors, officers, members, partners, employees and agents of the Collateral Manager, Affiliates
of the Collateral Manager, and the Collateral Manager may, among other things:

 

    	- 11 -

    	 

    

 

(i)         serve
as directors (whether supervisory or managing), officers, employees, partners, members, managers, agents, nominees or signatories
for the Issuer or any Affiliate thereof, or for any obligor in respect of any of the Collateral Debt Securities or Eligible Investments,
or any of their respective Affiliates, except to the extent prohibited by their respective Underlying Instruments, as from time
to time amended; provided that (x) in the reasonable judgment of the Collateral Manager, such activity will not have a material
adverse effect on the ability of the Issuer or the Trustee to enforce its respective rights with respect to any Assets and (y)
nothing in this paragraph shall be deemed to limit the duties of the Collateral Manager set forth in Section 1 hereof;

 

(ii)        perform,
and receive fees for the performance of, services of whatever nature rendered to an obligor in respect of any of the Collateral
Debt Securities or Eligible Investments, including acting as master servicer, sub-servicer or special servicer with respect to
any CMBS Securities or with respect to any commercial mortgage loan constituting or underlying any Collateral Debt Security; provided
that, in the reasonable judgment of the Collateral Manager, such activity will not have a material adverse effect on the ability
of the Issuer or the Trustee to enforce its respective rights with respect to any of the Assets; provided, further,
with respect to such services, the Collateral Manager is not acting as an agent for the Issuer;

 

(iii)       be
retained to provide services unrelated to this Agreement to the Issuer or its Affiliates and be paid therefor;

 

(iv)       be
a secured or unsecured creditor of, or hold an equity interest in, the Issuer, its Affiliates or any obligor of any Collateral
Debt Security or Eligible Investment; provided, however, that the Collateral Manager may not be such a creditor or
hold any of such interests if, in the opinion of counsel to the Issuer, the existence of such interest would require registration
of the Issuer or the Assts as an “investment company” under the Investment Company Act or violate any provisions of
Federal or applicable state law or any law, rule or regulation of any governmental body or agency having jurisdiction over the
Issuer;

 

(v)       own
equity in or own or make loans to any issuer of REIT Debt Securities including any issuer of REIT Debt Securities obligated on
any of the Collateral Debt Securities, so long as that doing so will not cause any such Collateral Debt Security to fail to comply
with the Eligibility Criteria;

 

(vi)       make,
hold or sell an investment in an issuer’s securities that may be pari passu, senior or junior in ranking to a Collateral
Debt Security;

 

(vii)      serve
as servicer and serve as special servicer and/or sub-special servicer under any servicing agreement and be paid therefor whether
related to the Issuer or not, and serve as Advancing Agent or back-up Advancing Agent under the Indenture;

 

    	- 12 -

    	 

    

 

(viii)     except
as otherwise provided in this Section 9, sell any Collateral Debt Security or Eligible Investment to, or purchase any Collateral
Debt Security from, the Issuer while acting in the capacity of principal or agent; and

 

(ix)        subject
to its obligations in Section 1 hereof to protect the Holders, serve as a member of any “creditors’ board”
with respect to any Defaulted Security, Eligible Investment or with respect to any commercial mortgage loan underlying or constituting
any Collateral Debt Security or the respective borrower for any such commercial mortgage loan.

 

It is understood that
the Collateral Manager and its Affiliates may engage in any other business, whether or not any of the foregoing may be competitive
with the business of the Issuer or the Co-Issuer (including financing, purchasing, owning, holding, originating or disposing of
any assets or investments), and furnish investment management and advisory services to others, including Persons that may have
investment policies similar to those followed by the Collateral Manager with respect to the Assets and that may own instruments
of the same class, or of the same type, as the Collateral Debt Securities or other instruments of the issuers of Collateral Debt
Securities and may manage portfolios similar to the Assets. The Collateral Manager and its Affiliates shall be free, in their sole
discretion, to make recommendations to others, or effect transactions on behalf of themselves or for others, which may be the same
as or different from those the Collateral Manager causes the Issuer to effect with respect to the Assets.

 

The Collateral Manager
and its Affiliates may, and may cause or advise their respective clients to, invest in assets, investments or instruments that
would be appropriate for the Issuer or the Co-Issuer or as security for the Notes and shall have no duty or obligation to offer
any such asset, investment or instrument to the Issuer or the Co-Issuer. Such investments may be different from those made to or
on behalf of the Issuer. The Collateral Manager, its Affiliates and their respective clients may have ongoing relationships with
Persons whose instruments are pledged to secure the Notes and may own instruments issued by, or loans to, issuers of the Collateral
Debt Securities or to any borrower or Affiliate of any borrower on any commercial mortgage loans underlying or constituting the
Collateral Debt Securities or the Eligible Investments. The Collateral Manager and its Affiliates may cause or advise their respective
clients to invest in instruments that are senior to or have interests different from or adverse to, the instruments that are pledged
to secure the Notes.

 

Nothing contained in
this Agreement shall prevent the Collateral Manager or any of its Affiliates from themselves buying or selling, or from recommending
to or directing any other account to buy or sell, at any time, securities of the same kind or class, or securities of a different
kind or class of the same issuer, as those directed by the Collateral Manager to be purchased or sold hereunder. It is understood
that, to the extent permitted by applicable law, the Collateral Manager, its Affiliates, and any member, manager, officer, director,
stockholder or employee of the Collateral Manager or any such Affiliate or any member of their families or a Person advised by
the Collateral Manager may have an interest in a particular transaction or in securities of the same kind or class, or securities
of a different kind or class of the same issuer, as those purchased or sold by the Collateral Manager hereunder. When the Collateral
Manager is considering purchases or sales for the Issuer and one or more of such other accounts at the same time, the Collateral
Manager shall allocate available investments or opportunities for sales in its discretion and make investment recommendations and
decisions that may be the same as or different from those made with respect to the Issuer’s investments, in accordance with
applicable law and the Collateral Manager Servicing Standard, to the extent applicable.

 

    	- 13 -

    	 

    

 

Subject to the Indenture
and the provisions of this Agreement, the Collateral Manager shall not be obligated to pursue any specific investment strategy
or opportunity that may arise with respect to the Assets.

 

The Issuer hereby acknowledges
and consents to the various potential and actual conflicts of interests that may exist with respect to the Collateral Manager as
described above; provided, however, that nothing contained in this Section 9 shall be construed as altering
the duties of the Collateral Manager set forth in this Agreement or in the Indenture.

 

10.         Records;
Confidentiality. The Collateral Manager shall maintain appropriate books of account and records relating to services performed
hereunder, and such books of account and records shall be accessible for inspection by an authorized representative of the Issuer,
the Trustee and the Independent accountants appointed by the Issuer pursuant to the Indenture at a mutually agreed-upon time during
normal business hours and upon reasonable prior notice; provided that the Collateral Manager shall not be obligated to provide
access to any non-public information if the Collateral Manager in good faith determines that the disclosure of such information
would violate any applicable law, regulation or contractual arrangement. The Collateral Manager shall follow its customary procedures
to keep confidential all information obtained in connection with the services rendered hereunder and shall not disclose any such
information except (i) with the prior written consent of the Issuer (which consent shall not be unreasonably withheld), (ii) such
information as the Rating Agencies shall reasonably request in connection with their rating or evaluation of the Notes and/or the
Collateral Manager, as applicable, and legally permitted to be disclosed by and to the Rating Agencies, (iii) as required by law,
regulation, court order or the rules, regulations, or request of any regulatory or self-regulating organization, body or official
(including any securities exchange on which the Notes may be listed from time to time) having jurisdiction over the Collateral
Manager or as otherwise required by law or judicial process, (iv) such information as shall have been publicly disclosed other
than in violation of this Agreement, (v) to its members, officers, directors, and employees, and to its attorneys, accountants
and other professional advisers in conjunction with the transactions described herein, (vi) such information as may be necessary
or desirable in order for the Collateral Manager to prepare, publish and distribute to any Person any information relating to the
investment performance of the Assets, (vii) in connection with the enforcement of the Collateral Manager’s rights hereunder
or in any dispute or proceeding related hereto, (viii) to the Trustee, (ix) to the extent required pursuant to any Hedge Agreement
of the Issuer and (x) to Holders and potential purchasers of any of the Securities.

 

    	- 14 -

    	 

    

 

Subject to compliance
with the requirements of any law, rule or regulation applicable to the Collateral Manager, nothing contained herein shall prevent
the Collateral Manager from discussing its activities hereunder in a general way in the normal course of its business, including,
without limitation, general discussions with other Persons regarding its ability to act as a collateral manager and its past performance
in such capacity. In addition, subject to compliance with the requirements of any law, rule or regulation applicable to the Collateral
Manager, with respect to information that the Collateral Manager obtains or develops regarding the Collateral Debt Securities or
Eligible Investments (including, without limitation, information regarding ratings, yield, creditworthiness, financial condition
and prospects of any Issuer thereof) in connection with the performance of its services hereunder, nothing in this Section 10
shall prevent the Collateral Manager or its Affiliates, in the conduct of their respective businesses, from using such information
or disclosing such information to others so long as such other use does not, in its reasonable judgment, disadvantage the Issuer.
Notwithstanding anything to the contrary contained in this Agreement, all persons may disclose to any and all persons, without
limitation of any kind, the U.S. Federal, state and local tax treatment of the Securities and the Co-Issuers, any fact that may
be relevant to understanding the U.S. Federal, state and local tax treatment of the Securities and the Issuers, and all materials
of any kind (including opinions or other tax analyses) relating to such U.S. Federal, state and local tax treatment and that may
be relevant to understanding such tax treatment.

 

11.         Term.
This Agreement shall become effective on the date hereof and shall continue in full force and effect until the first to occur of
the following: (a) the payment in full of the Notes and the termination of the Indenture in accordance with its terms, (b) the
liquidation of the Assets and the final distribution of the proceeds of such liquidation to the Holders and the Issuer, or (c)
the termination of this Agreement pursuant to Section 12 hereof.

 

12.         Termination.
(a) The Collateral Manager may be removed upon at least 30 days’ prior written notice if (A) Holders of at least 75% by Aggregate
Outstanding Amount of each Class of Notes (voting as a separate Class) and (B) Holders of at least 75% of the Preferred Shares
give written notice to the Collateral Manager, the Issuer, each Hedge Counterparty and the Trustee of such removal (including in
any such calculation any Securities held by the Collateral Manager, any of its Affiliates or by any fund managed or controlled
by the Collateral Manager or any Affiliate thereof); provided that if the Collateral Manager is removed pursuant to this
clause (a), any successor Collateral Manager will not be permitted to be a Holder of or an Affiliate of any Holder of Securities.
Notice of any such removal shall be delivered by the Trustee on behalf of the Issuer to the Holders of each Class of Notes, the
Holders of the Preferred Shares, each Rating Agency and each Hedge Counterparty.

 

    	- 15 -

    	 

    

 

(b)        This
Agreement may be terminated, and the Collateral Manager may be removed, by the Issuer or the Trustee for cause, upon 30 days’
prior written notice by the Issuer, at the direction of (i) Holders of at least a majority by Aggregate Outstanding Amount of each
Class of Notes (excluding any Notes owned by the Collateral Manager or any of its Affiliates or any fund managed or controlled
by the Collateral Manager or any Affiliate thereof, each voting as a separate Class) and (ii) Holders of at least a Majority of
the Preferred Shares (excluding any Preferred Shares owned by the Collateral Manager or any of its Affiliates or any fund managed
or controlled by the Collateral Manager or any Affiliate thereof); provided, however, upon the occurrence of an event
described in clause (iii) of this Section 12(b), termination of the Collateral Manager will be automatic and without advance
notice required from the Issuer, the Trustee or any other Person. Notice of any such removal for cause shall be delivered by the
Trustee on behalf of the Issuer to each Rating Agency, each Hedge Counterparty and the Holders of the Notes and the Preferred Shares.
In no event will the Trustee be required to determine whether or not cause exists for the removal of the Collateral Manager. As
used in this Section 12, “cause” means any of the following events:

 

(i)         the
Collateral Manager (A) willfully breaches, or takes any action that it knows violates, any provision of this Agreement or any term
of the Indenture applicable to the Collateral Manager (not including a willful breach or knowing violation that results from a
good faith dispute regarding alternative courses of action or interpretation of instructions), which breach or action has (or could
reasonably be expected to have) a material adverse effect on the Noteholders and (B) fails to cure such breach within 30 days after
the first to occur of (1) notice of such failure is given to the Collateral Manager or (2) the Collateral Manager having actual
knowledge of such breach or violation;

 

(ii)        the
Collateral Manager breaches any material provision of this Agreement or any material terms of the Indenture applicable to the Collateral
Manager and fails to cure such breach within 90 days after the first to occur of (A) notice of such failure being given to the
Collateral Manager or (B) the Collateral Manager having actual knowledge of such breach;

 

(iii)       the
Collateral Manager (A) ceases to be able to, or admits in writing the Collateral Manager’s inability to, pay the Collateral
Manager’s debts when and as they become due, (B) files, or consents by answer or otherwise to the filing against the Collateral
Manager of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or takes
advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (C) makes an assignment
for the benefit of the Collateral Manager’s creditors, (D) consents to the appointment of a custodian, receiver, trustee
or other officer with similar powers with respect to the Collateral Manager or with respect to any substantial part of the Collateral
Manager’s property, or (E) is adjudicated as insolvent or to be liquidated;

 

(iv)      the
occurrence of an act by the Collateral Manager or any of its Affiliates that constitutes fraud or criminal activity in the performance
of its obligations under this Agreement or the indictment of the Collateral Manager or any of its respective officers or directors
for a criminal offense involving an investment or investment-related business, fraud, false statements or omissions, wrongful taking
of property, bribery, forgery, counterfeiting or extortion;

 

    	- 16 -

    	 

    

 

(v)       the
failure of any representation, warranty, certificate or statement of the Collateral Manager in or pursuant to this Agreement or
the Indenture to be correct in any material respect and (x) such failure has (or could reasonably be expected to have) a material
adverse effect on the Noteholders, the Issuer or the Co-Issuer and (y) if such failure can be cured, no correction is made for
45 days after the Collateral Manager becomes aware of such failure or receives notice thereof in writing from the Trustee;

 

(vi)      the
occurrence and continuation of any of the Events of Default described in Sections 5.1 (a) or 5.1(b) of the Indenture; or

 

(vii)     the
Collateral Manager consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets to,
another Person and either (A) at the time of such consolidation, amalgamation, merger or transfer, the resulting, surviving or
transferee Person fails to or cannot assume all the obligations of the Collateral Manager under this Agreement, or (B) the resulting,
surviving or transferee Person lacks the legal capacity to perform the obligations of the Collateral Manager hereunder and under
the Indenture.

 

The Collateral Manager shall notify the
Trustee, the Rating Agencies and the Issuer in writing promptly upon becoming aware of any event that constitutes cause under this
Section 12(b).

 

(c)        The
Collateral Manager may resign, upon 30 days prior written notice to the Issuer, the Co-Issuer, the Trustee, each Rating Agency
and each Hedge Counterparty; provided, however, that (i) no such termination or resignation shall be effective until
the date as of which a successor Collateral Manager shall have agreed in writing to assume all of the Collateral Manager’s
duties and obligations pursuant to this Agreement and (ii) the Issuer shall use its best efforts to appoint a successor Collateral
Manager to assume such duties and obligations. Notwithstanding the notice required above, the Collateral Manager shall have the
right to resign without prior notice if, due to a change in any applicable law or regulation or interpretation thereof, the performance
by the Collateral Manager of its duties under the Collateral Management Agreement would (i) adversely affect the Issuer’s
status as a qualified REIT subsidiary (within the meaning of Section 856(i)(2) of the Code) or (ii) constitute a violation
of any applicable law or regulation.

 

(d)        No
removal, termination or resignation of the Collateral Manager or termination of this Agreement shall be effective unless (x) a
successor Collateral Manager (a “Replacement Manager”) has been appointed by the Issuer and has agreed in writing
to assume all of the Collateral Manager’s duties and obligations pursuant to this Agreement and (y) written notification
shall have been provided in accordance with Sections 12(a), (b) or (c), as applicable. The appointment of any Replacement
Manager shall be subject to satisfaction of the Rating Agency Condition and each such Replacement Manager (i) shall have demonstrated
an ability to professionally and competently perform duties similar to those imposed upon the Collateral Manager, (ii) is legally
qualified and has the capacity to act as collateral manager, (iii) by its appointment will not cause the Issuer, the Co-Issuer
or the pool of Assets to, or result in the Issuer, the Co-Issuer or the pool of Assets becoming, an “investment company”
under the Investment Company Act, (iv) has accepted its appointment in writing and (v) by its appointment will not cause the Issuer,
the Co-Issuer or the pool of Assets to become subject to income or withholding tax that would not have been imposed but for such
appointment.

 

    	- 17 -

    	 

    

 

(e)        Upon
any resignation or removal of the Collateral Manager while any of the Notes are Outstanding, the Holders of at least a Majority
of the Preferred Shares shall have the right to instruct the Issuer to appoint an institution identified by such Holders as Replacement
Manager; provided that (i) the Issuer provides to the Noteholders notice of such appointment and a majority by Aggregate
Outstanding Amount of each Class of Notes (excluding any Notes owned by the Collateral Manager or any of its Affiliates or any
fund managed or controlled by the Collateral Manager or any Affiliate thereof, each voting as a separate Class) does not object
to such appointment within thirty (30) days, (ii) the Rating Agency Condition has been satisfied with respect to such appointment
and (iii) the requirements set forth in Section 12(d)(i) through (v) above have been satisfied.

 

(f)         In
the event that the Collateral Manager resigns pursuant to Section 12(c) or is terminated pursuant to Sections 12(a) or
(b) hereof and the Issuer has not appointed a successor prior to the day following the termination (or resignation) date specified
in such notice, the Collateral Manager will be entitled to propose a successor and will so appoint such proposed entity as successor
thirty (30) days thereafter, unless a majority of any Class of Notes objects to such appointment with such thirty (30) day period
in which case the Controlling Class of Notes (excluding any Notes owned by the Collateral Manager or any of its Affiliates or any
fund managed or controlled by the Collateral Manager or any Affiliate thereof, each voting as a separate Class) will be entitled
to propose a successor and will appoint such proposed entity as successor thirty (30) days thereafter unless a majority by Aggregate
Outstanding Amount of any other Class of Notes (excluding any Notes owned by the Collateral Manager or any of its Affiliates or
any fund managed or controlled by the Collateral Manager or any Affiliate thereof, each voting as a separate Class) objects to
such appointment within such thirty (30) day period, in each case subject to the requirements set forth in Section 12(d) above.
In the event a proposed successor Collateral Manager is not appointed pursuant to the foregoing procedures, the resigning or removed
Collateral Manager may petition any court of competent jurisdiction for the appointment of a successor Collateral Manager, which
appointment will not require the consent of, or be subject to the disapproval of, the Issuer, any Noteholder or any Holder of the
Preferred Shares.

 

Notwithstanding any provision
contained in this Agreement, the Indenture or otherwise, so long as the Collateral Manager continues to perform its obligations
hereunder, the Collateral Management Fee shall continue to accrue for the benefit of the Collateral Manager until termination of
this Agreement under this Section 12 shall become effective as set forth herein. In addition, the Collateral Manager shall,
subject to Section 6, be entitled to reimbursement of out-of-pocket expenses incurred in cooperating with the Replacement
Manager, including in connection with the delivery of any documents or property. In the event that the Collateral Manager is removed
or resigns and a Replacement Manager is appointed, such former Collateral Manager nonetheless shall be entitled to receive payment
of all unpaid Collateral Management Fees, including the Senior Collateral Management Fee and the Subordinated Collateral Management
Fee, accrued through the effective date of the removal or resignation, to the extent that funds are available for that purpose
in accordance with the Priority of Payments, and such payments shall rank in the Priority of Payments pari passu with the
Collateral Management Fees due to the Replacement Manager. In addition, following the removal or resignation of the Collateral
Manager hereunder, the removed or resigning Collateral Manager shall be granted access to the books of account and records of the
Issuer and the Trustee to the extent such removed or resigning Collateral Manager deems necessary to confirm the proper payment
of any amounts owing to such removed or resigning Collateral Manager hereunder.

 

    	- 18 -

    	 

    

 

(g)        Upon
the effective date of termination of this Agreement, the Collateral Manager shall as soon as practicable:

 

(i)         deliver
to the Issuer all property and documents of the Trustee or the Issuer or otherwise relating to the Assets then in the custody of
the Collateral Manager (although the Collateral Manager may keep copies of such documents for its records); and

 

(ii)        deliver
to the Trustee an accounting with respect to the books and records delivered to the Issuer or the Replacement Manager appointed
pursuant to this Section 12 hereof.

 

The Collateral Manager
shall reasonably assist and cooperate with the Trustee and the Issuer (as reasonably requested by the Trustee or the Issuer) in
the assumption of the Collateral Manager’s duties by any Replacement Manager as provided for in this Agreement, as applicable.
Notwithstanding such termination, the Collateral Manager shall remain liable to the extent set forth herein (but subject to Section 13
hereof) for the Collateral Manager’s acts or omissions hereunder arising prior to its termination as Collateral Manager hereunder
and for any expenses, losses, damages, liabilities, demands, charges and claims (including reasonable attorneys’ fees) in
respect of or arising out of a breach of the representations and warranties made by it in Section 5 hereof or from any failure
of the Collateral Manager to comply with the provisions of this Section 12(g).

 

(h)        The
Collateral Manager agrees that, notwithstanding any termination, the Collateral Manager shall reasonably cooperate in any Proceeding
arising in connection with this Agreement, the Indenture or any of the Assets (excluding any such Proceeding in which claims are
asserted against the Collateral Manager or any Affiliate of the Collateral Manager) so long as the Collateral Manager shall have
been offered (in its judgment) reasonable security, indemnity or other provision against the cost, expenses and liabilities that
might be incurred in connection therewith, but, in any event, shall not be required to make any admission or to take any action
against the Collateral Manager’s own interests or the interests of other funds and accounts advised by the Collateral Manager.

 

(i)         If
this Agreement is terminated pursuant to Sections 12(a), (b) or (c) hereof, such termination shall be without any further
liability or obligation of the Issuer or the Collateral Manager to the other, except as provided in Sections 6, 7, 12 and
13 and the last sentence of Section 10 hereof.

 

    	- 19 -

    	 

    

 

(j)         Upon
expiration of the applicable notice period with respect to termination specified in Section 12(d) hereof, all authority and
power of the Collateral Manager under this Agreement and the Indenture, whether with respect to the Assets or otherwise, shall
automatically and without further action by any person or entity pass to and be vested in the Replacement Manager.

 

13.        Liability
of Collateral Manager. (a) The Collateral Manager assumes no responsibility under this Agreement other than to render the services
called for from the Collateral Manager hereunder and under the Indenture in the manner prescribed herein and therein. The Collateral
Manager and its Affiliates, and each of their respective partners, shareholders, members, managers, officers, directors, employees,
agents, accountants and attorneys shall have no liability to the Noteholders, the Holders of the Preferred Shares, the Trustee,
the Issuer, the Co-Issuer, any Hedge Counterparty, the Initial Purchaser, or any of their respective Affiliates, partners, shareholders,
officers, directors, employees, agents, accountants and attorneys, or any other Person, for any error of judgment, mistake of law,
or for any claim, loss, liability, damage, settlement, costs, or other expenses (including reasonable attorneys’ fees and
court costs) of any nature whatsoever (collectively “Liabilities”) that arise out of or in connection with any
act or omissions of the Collateral Manager in the performance of its duties under this Agreement or the Indenture or for any decrease
in the value of the Collateral Debt Securities or Eligible Investments, except by reason of acts or omissions constituting bad
faith, willful misconduct or gross negligence in the performance of, or reckless disregard of, the duties of the Collateral Manager
hereunder and under the terms of the Indenture. The Issuer agrees that the Collateral Manager shall not be liable for any consequential,
special, exemplary or punitive damages hereunder. The acts, failure to act or breaches described in this clause (a) are collectively
referred to for purposes of this Section 13 as “Collateral Manager Breaches.”

 

(b)        The
Collateral Manager shall indemnify, defend and hold harmless the Issuer and each of its partners, shareholders, members, managers,
officers, directors, employees, agents, accountants and attorneys (each, an “Issuer Indemnified Party”) from
and against any claims that may be made against an Issuer Indemnified Party by third parties and any damages, losses, claims, liabilities,
costs or expenses (including all reasonable legal and other expenses) which are incurred as a direct consequence of the Collateral
Manager Breaches, except for liability to which such Issuer Indemnified Party would be subject by reason of willful misconduct,
bad faith, gross negligence in the performance of, or reckless disregard of the obligations of the Issuer hereunder and under the
terms of the Indenture.

 

(c)        The
Issuer shall reimburse, indemnify and hold harmless the Collateral Manager, its members, managers, directors, officers, stockholders,
partners, agents and employees and any Affiliate of the Collateral Manager and its directors, officers, stockholders, partners,
members, agents and employees (the Collateral Manager and such other persons collectively, the “Collateral Manager Indemnified
Parties”) from any and all Liabilities, as are incurred in investigating, preparing, pursuing or defending any claim,
action, proceeding or investigation (whether or not such Collateral Manager Indemnified Party is a party) caused by, or arising
out of or in connection with this Agreement, the Indenture and the transactions contemplated hereby and thereby, including the
issuance of the Notes, or any acts or omissions of any Collateral Manager Indemnified Parties except those that are the result
of Collateral Manager Breaches. Any amounts payable by the Issuer under this Section 13(c) shall be payable only subject to
the Priority of Payments set forth in the Indenture and to the extent Assets are available therefor.

 

    	- 20 -

    	 

    

 

(d)        With
respect to any claim made or threatened against an Issuer Indemnified Party or a Collateral Manager Indemnified Party (each an
“Indemnified Party”), or compulsory process or request or other notice of any loss, claim, damage or liability
served upon an Indemnified Party, for which such Indemnified Party is or may be entitled to indemnification under this Section 13,
such Indemnified Party shall (or, with respect to Indemnified Parties that are directors, managers, officers, stockholders, members,
managers, agents or employees of the Issuer or the Collateral Manager, the Issuer or the Collateral Manager, as the case may be,
shall cause such Indemnified Party to):

 

(i)         give
written notice to the indemnifying party of such claim within ten Business Days after such Indemnified Party’s receipt of
actual notice that such claim is made or threatened, which notice to the indemnifying party shall specify in reasonable detail
the nature of the claim and the amount (or an estimate of the amount) of the claim; provided, however, that the failure
of any Indemnified Party to provide such notice to the indemnifying party shall not relieve the indemnifying party of its obligations
under this Section 13 unless the rights or defenses available to the Indemnified Party are materially prejudiced or otherwise
forfeited by reason of such failure;

 

(ii)        at
the indemnifying party’s expense, provide the indemnifying party such information and cooperation with respect to such claim
as the indemnifying party may reasonably require, including making appropriate personnel available to the indemnifying party at
such reasonable times as the indemnifying party may request;

 

(iii)       at
the indemnifying party’s expense, cooperate and take all such steps as the indemnifying party may reasonably request to preserve
and protect any defense to such claim;

 

(iv)       in
the event suit is brought with respect to such claim, upon reasonable prior notice, afford to the indemnifying party the right,
which the indemnifying party may exercise in its sole discretion and at its expense, to participate in the investigation, defense
and settlement of such claim;

 

(v)        neither
incur any material expense to defend against nor release or settle any such claim or make any admission with respect thereto (other
than routine or incontestable admissions or factual admissions the failure to make of which would expose such Indemnified Party
to unindemnified liability) nor permit a default or consent to the entry of any judgment in respect thereof, in each case without
the prior written consent of the indemnifying party; and

 

    	- 21 -

    	 

    

 

(vi)       upon
reasonable prior notice, afford to the indemnifying party the right, in such party’s sole discretion and at such party’s
sole expense, to assume the defense of such claim, including the right to designate counsel reasonably acceptable to the Indemnified
Party and to control all negotiations, litigation, arbitration, settlements, compromises and appeals of such claim; provided
that, if the indemnifying party assumes the defense of such claim, it shall not be liable for any fees and expenses of counsel
for any Indemnified Party incurred thereafter in connection with such claim except that, if such Indemnified Party reasonably determines
that counsel designated by the indemnifying party has a conflict of interest, such indemnifying party shall pay the reasonable
fees and disbursements of one counsel (in addition to any local counsel) separate from such indemnifying party’s own counsel
for all Indemnified Parties in connection with any one action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances; and provided, further, that the indemnifying party
shall not have the right, without the Indemnified Party’s written consent, to settle any such claim if, in a case where the
Issuer is the indemnifying party, the Issuer does not make available (in accordance with the Priority of Payments), in a segregated
account available only for this purpose, the full amount required to pay any amounts due from the Indemnified Party under such
settlement or, in any case, such settlement (A) arises from or is part of any criminal action, suit or proceeding, (B) contains
a stipulation to, confession of judgment with respect to, or admission or acknowledgement of, any liability or wrongdoing on the
part of the Indemnified Party, (C) relates to any Federal, state or local tax matters or (D) provides for injunctive relief, or
other relief other than damages, which is binding on the Indemnified Party.

 

(e)        In
the event that any Indemnified Party waives its right to indemnification hereunder, the indemnifying party shall not be entitled
to appoint counsel to represent such Indemnified Party nor shall the indemnifying party reimburse such Indemnified Party for any
costs of counsel to such Indemnified Party.

 

(f)         Nothing
herein shall in any way constitute a waiver or limitation of any rights that the Issuer or the Collateral Manager may have under
any United States Federal or state securities laws.

 

14.        Obligations
of Collateral Manager. (a) The Collateral Manager to the extent required under the Indenture, and on behalf of the Issuer,
shall: (i) engage the services of an Independent certified accountant to prepare any United States Federal, state or local income
tax or information returns and any non-United States income tax or information returns that the Issuer may from time to time be
required to file under applicable law (each a “Tax Return”), (ii) deliver, at least 30 days before any
applicable due date upon which penalties and interest would accrue, each Tax Return, properly completed, to the Company Administrator
for signature by an Authorized Officer of the Issuer and (iii) file or deliver such Tax Return on behalf of the Issuer within any
applicable time limit with any authority or Person as required under applicable law.

 

    	- 22 -

    	 

    

 

(b)        Unless
otherwise required by any provision of the Indenture or this Agreement or by applicable law, the Collateral Manager shall not take
any action which it knows, or acting with gross negligence, would (a) materially adversely affect the Issuer for purposes of United
States federal or state law or any other law known to the Collateral Manager to be applicable to the Issuer, (b) not be permitted
under the Issuer’s Memorandum and Articles of Association or the Co-Issuer’s limited liability company agreement, (c)
require registration of the Issuer, the Co-Issuer or the Assets as an “investment company” under the Investment Company
Act or (d) cause the Issuer to violate the terms of the Indenture, it being understood that in connection with the foregoing the
Collateral Manager will not be required to make any independent investigation of any facts or laws not otherwise known to it in
connection with its obligations under this Agreement and the Indenture or the conduct of its business generally. The Collateral
Manager will perform its duties under this Agreement and the Indenture in a manner reasonably intended not to subject the Issuer
to U.S. federal or state income taxation, it being understood that, notwithstanding anything to the contrary set forth herein or
in the Indenture, the Collateral Manager shall be deemed to have complied with the requirements of the Indenture and any certifications,
certificates or other related documents required pursuant to the Indenture in connection with not subjecting the Issuer to U.S.
federal or state income taxation, if it satisfies the requirements set forth in this sentence and will not be liable to the Trustee,
the Holders of the Notes, the Co-Issuers, the Co-Issuers’ creditors or any other Person as a result of the Issuer engaging,
or a determination that the Issuer has engaged, in a U.S. trade or business for U.S. federal income tax purposes if it has complied
with this section. The Collateral Manager shall use all commercially reasonable efforts to ensure that no action is taken by it,
and shall not intentionally or with reckless disregard take any action, which the Collateral Manager knows or reasonably should
know would have a materially adverse United States federal or state income tax effect on the Issuer.

 

(c)        Notwithstanding
anything to the contrary herein, the Collateral Manager or any of its Affiliates may take any action that is not specifically prohibited
by the Indenture, this Agreement or applicable law that the Collateral Manager or any Affiliate of the Collateral Managers deems
to be in its (or in its portfolio’s) best interest regardless of its impact on the Collateral Debt Securities.

 

15.        No
Partnership or Joint Venture. The Issuer and the Collateral Manager are not partners or joint venturers with each other, and
nothing herein shall be construed to make them such partners or joint venturers or impose any liability as such on either of them.
The Collateral Manager’s relation to the Issuer shall be that of an independent contractor and not a general agent. Except
as expressly provided in this Agreement and in the Indenture, the Collateral Manager shall not have authority to act for or represent
the Issuer in any way and shall not otherwise be deemed to be the Issuer’s agent.

 

16.        Notices.
Any notice from a party under this Agreement shall be in writing and sent by answer-back facsimile or addressed and delivered or
sent by certified mail, postage prepaid, return receipt requested or sent by overnight courier service guaranteeing next day delivery
to the other party at such address as such other party may designate for the receipt of such notice. Until further notice to the
other party, it is agreed that the address of the Issuer for this purpose shall be:

 

Gramercy Real Estate CDO 2005-1,
Ltd.

c/o MaplesFS Limited

P.O. Box 1093 GT

Queensgate House

South Church Street

George Town

Grand Cayman, Cayman Islands

Attention: The Directors

Fax: +1 345 945 7099

 

Telephone: +1 345 945 7100

 

    	- 23 -

    	 

    

 

with two copies to the Collateral
Manager (as addressed below).

 

the address of the Collateral Manager for
this purpose shall be:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Charles Spetka

Facsimile: (301) 255-4874

 

with a copy to:

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Legal Department

 

Facsimile: (301) 255-4874

 

17.         Succession;
Assignment. (a) This Agreement shall inure to the benefit of and be binding upon the successors to the parties hereto. No assignment
of this Agreement shall be made without the consent of the other party except as set forth below and without satisfaction of the
Rating Agency Condition (except as permitted under clauses (b) and (c) below), provided that the Issuer may collaterally
assign its interest in this Agreement to the Trustee under the Indenture.

 

(b)          Upon
satisfaction of the Rating Agency Condition, this Agreement may be assigned by the Collateral Manager to an Affiliate thereof that
has substantially the same personnel, or personnel with comparable expertise, as the Collateral Manager and that is capable of
performing the obligations of the Collateral Manager under this Agreement; provided that satisfaction of the Rating Agency
Condition shall not be required in connection with any assignment involving an internalization of the Collateral Manager or any
assignment to a successor upon merger or acquisition. Notwithstanding the foregoing, the Collateral Manager shall provide S&P
with prompt notice of any assignment involving an internalization of the Collateral Manager.

 

(c)          This
Agreement may be assigned by the Collateral Manager to any Person other than an Affiliate only upon satisfaction of the Rating
Agency Condition and approval by a Majority of the Controlling Class.

 

(d)          Upon
the execution and delivery of a counterpart by the assignee, the Collateral Manager shall be released from further obligations
pursuant to this Agreement, except with respect to the Collateral Manager’s obligations arising under Section 13 of
this Agreement prior to such assignment and except with respect to the Collateral Manager’s obligations under the last sentence
of Section 10 and Sections 7 and 12 hereof.

 

    	- 24 -

    	 

    

 

18.         No
Bankruptcy Petition/Limited Recourse. The Collateral Manager covenants and agrees that, prior to the date that is one year
and one day (or, if longer, the applicable preference period then in effect) after the payment in full of all Notes issued by the
Issuer under the Indenture, the Collateral Manager will not institute against, or join any other Person in instituting against,
the Issuer or the Co-Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings
under any bankruptcy, insolvency, reorganization or similar law; provided, however, that nothing in this Section 18
shall preclude, or be deemed to stop, the Collateral Manager from taking any action prior to the expiration of the aforementioned
one year and one day period (or, if longer, the applicable preference period then in effect) in (x) any case or proceeding voluntarily
filed or commenced by the Issuer or the Co-Issuer, as the case may be, or (y) any involuntary insolvency proceeding filed or commenced
against the Issuer or the Co-Issuer, as the case may be, by a Person other than the Collateral Manager. The Collateral Manager
hereby acknowledges and agrees that the Issuer’s obligations hereunder will be solely the corporate obligations of the Issuer,
and the Collateral Manager will not have recourse to any of the directors, officers, employees, shareholders or affiliates of the
Issuer, or any members of the Advisory Committee, with respect to any claims, losses, damages, liabilities, indemnities or other
obligations in connection with any transaction contemplated hereby. Notwithstanding any provision hereof, all obligations of the
Issuer and any claims arising from this Agreement or any transactions contemplated by this Agreement shall be limited solely to
the Collateral Debt Securities and the other Assets and payable in accordance with the Priority of Payments. If payments on any
such claims from the Assets are insufficient, no other assets shall be available for payment of the deficiency and, following liquidation
of all the Assets, any claims of the Collateral Manager arising from this Agreement and the obligations of the Issuer to pay such
deficiencies shall be extinguished. The Issuer hereby acknowledges and agrees that the Collateral Manager’s obligations hereunder
shall be solely the limited liability company obligations of the Collateral Manager, and the Issuer shall not have any recourse
to any of the members, managers, directors, officers, employees, shareholders or Affiliates of the Collateral Manager with respect
to any claims, losses, damages, liabilities, indemnities or other obligations in connection with any transactions contemplated
hereby.

 

19.         Miscellaneous.
(a) This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without regard
to the conflict of laws principles thereof. With respect to any suit, action or proceedings relating to this Agreement (“Proceedings”),
each party irrevocably (i) submits to the nonexclusive jurisdiction of the courts of the State of New York and the United States
District Court located in the Borough of Manhattan in New York City and (ii) waives any objection that such party may have at any
time to the laying of venue of any Proceedings brought in any such court, waives any claim that such Proceedings have been brought
in an inconvenient forum and further waives the right to object, with respect to such Proceedings, that such court does not have
any jurisdiction over such party. Nothing in this Agreement precludes either party from bringing Proceedings in any other jurisdiction,
nor shall the bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction.
The Collateral Manager irrevocably consents to the service of any and all process in any action or proceeding by the mailing or
delivery of copies of such process to the Collateral Manager at the office of the Collateral Manager, 7501 Wisconsin Avenue, Suite
500W, Bethesda, Maryland 20814, Attention: Daniel Warcholak or such other address as the Collateral Manager may advise the Issuer
in writing. The Issuer irrevocably consents to the service of any and all process in any action or proceeding by the mailing or
delivery of copies of such process to CT Corporation System at 111 8th Avenue, New York, New York 10011 (and any successor
entity), as its authorized agent to receive and forward on its behalf service of any and all process which may be served in any
such suit, action or proceeding in any such court and agrees that service of process upon CT Corporation System shall be deemed
in every respect effective service of process upon it in any such suit, action or proceeding and shall be taken and held to be
valid personal service upon it. Each party hereto agrees that a final judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

    	- 25 -

    	 

    

 

EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(b)          The
captions in this Agreement are included for convenience only and in no way define or limit any of the provisions hereof or otherwise
affect their construction or effect.

 

(c)          In
the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding
shall not invalidate or render unenforceable any other provision hereof.

 

(d)          This
Agreement (including Exhibit A attached hereto) may not be amended or modified or any provision thereof waived (i)
except by an instrument in writing signed by both of the parties hereto or, in the case of a waiver, by the party waiving compliance
and (ii) in each case, in compliance with Section 15.1(f) of the Indenture, including with respect to satisfaction of the
Rating Agency Condition. This Agreement (including Exhibit A attached hereto) may be modified without the prior written
consent of the Trustee, any Hedge Counterparty or the holders of Notes to correct any inconsistency or cure any ambiguity or mistake.
Any other amendment of this Agreement (including Exhibit A attached hereto) shall require the prior written consent of the
Trustee and each Hedge Counterparty, which consent shall not be unreasonably withheld and is subject to the satisfaction of the
Rating Agency Condition.

 

(e)          This
Agreement constitutes the entire understanding and agreement between the parties hereto and supersedes all other prior and contemporaneous
understandings and agreements, whether written or oral, between the parties hereto concerning this subject matter (other than the
Indenture).

 

(f)          The
Collateral Manager hereby agrees and consents to the terms of Section 15.1(f) of the Indenture applicable to the Collateral
Manager and shall perform any provisions of the Indenture made applicable to the Collateral Manager by the Indenture as required
by Section 15.1 (f) of the Indenture.

 

    	- 26 -

    	 

    

 

(g)          This
Agreement may be executed in any number of counterparts, each of which so executed shall be deemed an original, but all such counterparts
shall together constitute one and the same instrument.

 

(h)          The
words “include,” “includes” and “including” shall be deemed to be followed by the phrase “but
not limited to.”

 

(i)          Subject
to the last sentence of the penultimate paragraph of Section 1 hereof, in the event of a conflict between the terms of this
Agreement and the Indenture, including with respect to the obligations of the Collateral Manager hereunder and thereunder, the
terms of this Agreement shall be controlling.

 

(j)          No
failure or delay on the part of any party hereto to exercise any right or remedy under this Agreement shall operate as a waiver
thereof, and no waiver shall be effective unless it is in writing and signed by the party granting such waiver.

 

(k)          This
Agreement is made solely for the benefit of the Issuer, the Collateral Manager and the Trustee, on behalf of the Noteholders, the
Holders of Preferred Shares and each Hedge Counterparty, their successors and assigns, and no other person shall have any right,
benefit or interest under or because of this Agreement.

 

(l)          The
Collateral Manager hereby irrevocably waives any rights it may have to set off against the Assets.

 

    	- 27 -

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement executed (as a deed in the case of the Issuer) by their respective authorized representative;
the day and year first above written.

 

	 	Executed as a Deed
	 	 
	 	GRAMERCY REAL ESTATE CDO 2005-1,
	 	LTD.,
    as Issuer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	In the presence of:
	 	 
	 	Witness:	 
	 	 	Name:
	 	 	Occupation:
	 	 	Title:

 

	 	CWCAPITAL INVESTMENTS LLC,
	 	as Collateral Manager
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	- 28 -

    	 

    

 

EXHIBIT A

 

Advisory Committee Guidelines

 

1.          General.

 

If the Collateral Manager desires to direct
a trade between the Issuer and the Collateral Manager or any of its Affiliates, acting as principal (other than with respect to
Credit Risk/Defaulted Security Cash Purchases, sales of property or securities in accordance with the Origination Agreement and
sales of Assets pursuant to an auction in connection with an Auction Call Redemption or in connection with a redemption of the
Notes pursuant to Article 9 of the Indenture, none of which shall require the approval of the Advisory Committee) (each such trade,
a “Restricted Transaction”), before effecting such trade, it shall first present such Restricted Transaction
to the Advisory Committee for review and prior approval.

 

2.          Composition
of the Advisory Committee.

 

The Advisory Committee must be comprised
of at least one person (which may be an individual or an entity), who is Independent (as defined in the Indenture) of the Collateral
Manager (each such person, an “Independent Member”), who acts as a surrogate for, and in the best interest of,
the holders of the Securities.

 

The Advisory Committee also may have one
or more members appointed by the Collateral Manager and employed by the Collateral Manager or an Affiliate thereof (each such person,
an “Affiliated Member”).

 

3.          Requisite
Experience.

 

Each member of the Advisory Committee must
at the time of appointment and at all relevant times thereafter have Requisite Experience.

 

The Collateral Manager and the Issuer will
have the right to accept a representation and warranty from a member regarding its Requisite Experience, in the absence of actual
knowledge by a responsible officer of the Collateral Manager to the contrary.

 

“Requisite Experience”
means experience as a sophisticated investor, including, without limitation, in fixed income investing (directly and/or through
investment vehicles) and/or substantial experience and knowledge in and of the commercial real estate loan market and related investment
arenas, such that the relevant Advisory Committee member believes that it is capable of determining whether or not to participate
in Advisory Committee decisions on the basis of the provisions described herein. Such person need not be a professional loan investor
or loan originator.

 

4.          Appointment
of Initial Members of the Advisory Committee.

 

The initial members of the Advisory Committee
will be appointed by the Collateral Manager. Thereafter the Collateral Manager will have the right to appoint a member to replace
any member that resigns. Notwithstanding the foregoing, in the event of a resignation of the Independent Member, a replacement
Independent Member may be appointed by the Issuer if the Collateral Manager does not promptly appoint a replacement Independent
Member.

 

    	- A-1 -

    	 

    

  

5.          Term.

 

Each member of the Advisory Committee will
serve until it resigns, dies or is removed.

 

6.          Approval
Process.

 

If the Collateral Manager wants the Issuer
to consider a Restricted Transaction, the Collateral Manager will give notice of the proposed Restricted Transaction to the members
of the Advisory Committee. The notice will contain the request by the Collateral Manager for the Advisory Committee’s consent
to the Restricted Transaction. The notice will be accompanied by:

 

		·	an investment memorandum; and

 

		·	an underwriting analysis.

 

The investment memorandum will (a) be a
reasonably detailed (anticipated to be approximately two pages) description of the proposed investment, the issuer thereof and
related information and (b) include information about the identity of any Affiliated Person involved in the proposed investment
and the capacity in which it will be acting and a narrative about why, in the judgment of the Collateral Manager, the investment
is appropriate to be purchased or sold by the Issuer, as the case may be. The notice will contain the Collateral Manager’s
offer to provide additional information as requested to the Advisory Committee.

 

7.          Unanimous
Written Consent.

 

Regardless of the composition of the Advisory
Committee, each Restricted Transaction must be approved in writing by each member of the Advisory Committee.

 

The members of the Advisory Committee are
under no obligation to consent to a Restricted Transaction.

 

		·	If all of the members of the Advisory Committee approve a Restricted Transaction in writing, the
Issuer will effect it at the option of the Collateral Manager (subject to the others terms of this Agreement and the Indenture).

 

		·	If the members of the Advisory Committee notify the Collateral Manager that the Advisory Committee
will not approve the Restricted Transaction, the Issuer will not effect the Restricted Transaction.

 

		·	If at any time the Advisory Committee does not have at least one Independent Member or any member
does not have Requisite Experience, the Collateral Manager will not be permitted to use the Advisory Committee to approve any Restricted
Transaction.

 

8.          Compensation.

 

Each Independent Member shall receive arm’s
length compensation by the Issuer for serving on the Advisory Committee as agreed between such member and the Issuer.

 

    	- A-2 -

    	 

    

EXHIBIT B-l

 

Additional Advisory Committee Guidelines

 

Independent Member

 

1.          Independent
Member Duties.

 

As an Independent Member of the Advisory
Committee, the Member shall:

 

(a)          serve
on the Advisory Committee and attend meetings of the Advisory Committee at such times and places (and/or telephonically or by correspondence
or otherwise) as shall be reasonably requested by the Issuer and the Collateral Manager;

 

(b)          promptly
consider certain actions to be taken with respect to certain Restricted Transactions presented by the Collateral Manager (as further
described in the Advisory Committee Guidelines);

 

(c)          in
connection with considering Restricted Transactions, promptly review and consider investment memoranda, underwriting analyses and
other information presented to the Member on behalf of the Issuer to the Advisory Committee in connection with the foregoing; and

 

(d)          take
such other actions as may be reasonably necessary or advisable in connection with the foregoing;

 

provided, however, that (i)
if the Member believes that the Member or an Affiliate thereof, or any of their respective officers, directors, employees, stockholders,
partners, members or managers, has an interest in any Restricted Transaction, the Member shall promptly disclose such interest
to the Issuer and the Collateral Manager and shall recuse himself from any consideration of such Restricted Transaction (in each
case unless the Collateral Manager and each other member of the Advisory Committee (assuming that at least one such member of the
Advisory Committee is an Independent Member and is not affiliated with the Restricted Transaction at issue) shall determine that
such interest does not create a disabling conflict) and (ii) if the Member believes that, because of an actual or potential conflict
of interest relating to a Restricted Transaction, it would be inappropriate or inadvisable for the Member to receive any Confidential
Information (as defined in Paragraph 8 of this Exhibit B-l), the Member shall recuse himself from any consideration of such Restricted
Transaction.

 

2.          Representations
and Warranties.

 

The Member, by its execution of an Advisory
Committee Member Acknowledgement and Agreement (the “Acknowledgment and Agreement”), will be deemed to represent
and warrant that:

 

(a)          the
Member is Independent of the Collateral Manager (including, for this purpose, an employee, partner, member or director thereof);
and

 

    	- B-1-1 -

    	 

    

 

 

(b)          the
Member has the Requisite Experience (as set forth in the Advisory Committee Guidelines).

 

If the representations and warranties set
forth in this Paragraph 2 shall at any time fail to be true and correct, the Member shall promptly notify the Issuer and the Collateral
Manager of that fact and shall immediately resign from the Advisory Committee.

 

3.          Compensation.

 

During the Term (as defined in Paragraph
7 of this Exhibit B-l), the Issuer shall pay the Member a per annum fee (the “Fee”) at a rate to be established
between the Collateral Manager and the Member, payable on each Payment Date (as defined in the Indenture), subject to the Priority
of Payments (as defined in the Indenture). The Fee payable on any specified Payment Date (as defined in the Indenture) shall accrue
during each period from and including the preceding Payment Date (or, with respect to the first payment, from and including the
date hereof) to but excluding such specified Payment Date (or, if earlier, to but excluding the last day of the Term), calculated
on the basis of the actual number of days elapsed over a year of 365 or 366 days, as the case may be. If any Fee is not paid when
due as a result of lack of available funds under the Priority of Payments, such Fee shall be deferred and shall be payable on subsequent
Payment Dates in accordance with the Priority of Payments.

 

The Issuer shall reimburse the Member,
promptly after demand therefor accompanied by reasonable supporting documentation, for any reasonable authorized expenses incurred
in connection with any meetings of or actions by the Advisory Committee.

 

4.          Exculpation
and Indemnification.

 

(a)          The
Member shall not be liable to the Issuer, the Co-Issuer, any holder of the Notes, any holder of the Preferred Shares, any holder
of ordinary shares of the Issuer or the Collateral Manager (i) for any losses incurred as a result of the actions taken or omitted
to be taken by the Member pursuant to the provisions of this Exhibit B-l or the Advisory Committee Guidelines, except that the
Member may be so liable to the extent such losses are the result of acts or omissions constituting willful misconduct, fraud or
gross negligence by the Member in the performance of its obligations hereunder or under the Advisory Committee Guidelines or (ii)
for the acts or omissions of any other member of the Advisory Committee.

 

(b)          The
Issuer shall indemnify the Member for, and hold the Member harmless against, any loss, liability or expense (including without
limitation reasonable attorneys’ fees and expenses) incurred arising out of or in connection with the Member’s service
as a member of the Advisory Committee, including the costs and expenses of defense against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder (collectively, “Losses”); provided,
however, that the Issuer shall not indemnify the Member for any Losses incurred as a result of acts or omissions constituting
willful misconduct, fraud or gross negligence by the Member in the performance of its obligations hereunder or under the Advisory
Committee Guidelines.

 

    	- B-1-2 -

    	 

    

 

 

(c)          If
any action shall be instituted involving the Member for which indemnification hereunder may be applicable, such Member shall promptly
notify the Issuer and the Collateral Manager in writing and the Issuer shall have the right to retain counsel reasonably satisfactory
to the Issuer and the Collateral Manager to represent the Member and any others the Issuer may designate In such proceeding and
shall pay the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, the Member
shall have the right to retain individual counsel, but the fees and expenses of such counsel shall be at the expense of the Member
unless (i) the Issuer and the Member shall have agreed to the retention of such counsel or (ii) the named parties to any such proceeding
(including any impleaded parties) include the Member and the Issuer and representation of all such parties by the same counsel
would be inappropriate due to actual or potential differing interests between them. It is understood that the Issuer shall not,
in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more
than one separate firm (in addition to any local counsel) for the Member and any other members of the Advisory Committee, and that
all such reasonable fees and expenses shall be reimbursed as they are incurred. The Issuer shall not be liable for any settlement
of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the
plaintiff, the Issuer agrees, subject to the limitations noted herein, to indemnify the Member from and against any loss or liability
by reason of such settlement or judgment. The Issuer shall not, without the prior written consent of the Member, effect any settlement
of any pending or threatened proceeding in respect of which the Member is or is likely to have been a party, unless such settlement
includes an unconditional release of the Member from all liability on claims that are the subject matter of such proceeding. Notwithstanding
the foregoing, if any person shall pay the Member any amount of indemnification pursuant to this Paragraph 4, such person shall
succeed to the rights of the Issuer, to the exclusion of the Issuer, set forth in this Paragraph 4(c) (including, but not limited
to, the right of the Issuer to retain counsel to represent the Member in any related proceeding and to effect any settlement of
any related pending or threatened proceeding).

 

5.          Notices.

 

All notices, requests, consents, approvals
and other communications required or permitted to be given or delivered hereunder shall be in writing (which shall include notice
by telecopy or like transmission) and shall be deemed to have been given when delivered personally against receipt, upon receipt
of a transmitted confirmation if sent by telecopy or like transmission, or on the next business day when sent by overnight courier
or similar service, if addressed to the respective parties as follows:

 

If to the Issuer, to:

 

Gramercy Real Estate CDO 2005-1, Ltd.

 

c/o MaplesFS Limited

Queensgate House

P.O. Box 1093 GT

South Church Street

George Town

Grand Cayman, Cayman Islands

    	- B-1-3 -

    	 

    

 

Telephone: + 1 345 945-7100

Fax: + 1 (345) 945-7099

 

Attention: The Directors

 

with a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Charles Spetka

Facsimile: (301) 255-4874

 

with a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Legal Department

 

Facsimile: (301) 255-4874

 

If to the Member, to the address set forth
on the Acknowledgement and Agreement,

 

or to such other address or telephone number
as either party shall have specified by notice in writing to the other party; provided, however, that any such notice
of change of address or facsimile number shall be effective only upon receipt.

 

6.          Monthly
Reports.

 

The Issuer shall provide or cause to be
provided to the Member a copy of each Monthly Report (as defined in the Indenture), substantially and contemporaneously with its
delivery to the Rating Agencies (as defined in the Indenture) under the Indenture.

 

7.          Term;
Termination.

 

(a)          The
Member’s term as an Independent Member of the Advisory Committee (the “Term”) shall commence on the date
of its execution of the Acknowledgement and Agreement and shall continue until the earlier of: (i) the liquidation and winding-up
of the Issuer; (ii) the payment in full of all Notes; (iii) the death of the Member; and (iv) the effective date of any resignation
or removal of the Member as an Independent Member of the Advisory Committee as provided in this Paragraph 7.

 

(b)          The
Member shall have the right to resign as a member of the Advisory Committee at any time upon 10 days’ prior written notice
to the Issuer, except that any resignation pursuant to Paragraph 2 shall be effective immediately. The Collateral Manager shall
have the right to appoint an Independent Member to replace any Independent Member that resigns.

 

    	- B-1-4 -

    	 

    

 

(c)          The
holders of 66 2/3%, by outstanding principal amount, of each Class of Notes voting as a separate Class (excluding any Notes held
by the Collateral Manager, any of its Affiliates or any funds (other than the Issuer) managed by the Collateral Manager or its
Affiliates) shall have the right to remove the Member for “cause.” For this purpose, “cause” shall mean:
(i) the Member’s breach of any material provisions hereof and its failure to cure such breach within ninety (90) days after
the first to occur of (x) notice of such failure is given to the Member and (y) the Member has actual knowledge of such breach;
(ii) an act by the Member that constitutes fraud or criminal activity in the performance of its obligations hereunder or the Member
is indicted of a felony offense or other crime involving an investment or investment-related business, fraud, false statements
or omissions, wrongful taking of property, bribery, forgery, counterfeiting or extortion, in a court of competent jurisdiction
(including the entry of a guilty or nolo contendere plea) or (iii) the Member becomes affiliated with the Collateral Manager or
any affiliate of the Collateral Manager.

 

(d)          The
Member also shall be subject to immediate removal from the Committee for “cause” by the Collateral Manager. For purposes
of this Paragraph 9(d), “cause” shall mean: (i) each of the events listed in clauses (i) through (iii) of the definition
of “cause” in Paragraph 9(c) above; (ii) the Member’s failure to substantially perform its duties hereunder and/or
under the Advisory Committee Guidelines; (iii) any of the Member’s representations and warranties set forth in Paragraph
2 hereof becomes untrue; or (iv) the Member fails to respond to a notice provided by the Collateral Manager with respect to a Restricted
Transaction within five business days after such notice or if the Member is not available to consider a Restricted Transaction
within five business days after such notice.

 

If the Member’s Term is terminated
pursuant to this Paragraph 7, such termination shall be without any further liability or obligation of either party to the other,
except that any liability or obligation of either party under Paragraph 3 or 4 shall survive the termination of such Member.

 

8.          Confidentiality.
The Member may receive certain information from the Collateral Manager and/or the Issuer in connection with its service as a member
of the Advisory Committee. The Member agrees, as set forth in this Paragraph 10, to treat confidentially any Confidential Material
(as defined below).

 

(a)          “Confidential
Material” means any non-public, confidential or proprietary information that is or has been provided by the Collateral
Manager or the Issuer to the Member or the Member’s employees, attorneys, accountants, advisors or other authorized representatives
(collectively, “Representatives”) in connection with the Member’s service on the Advisory Committee, regardless
of the form in which such information is communicated or maintained, and all notes, reports, analyses, compilations, studies, files
or other documents or material, whether prepared by the Member or others, which are based on, contain or otherwise reflect such
information. However, “Confidential Material” does not include any information that (i) at the time of disclosure or
thereafter is generally available to and known by the public (other than as a result of a disclosure in violation of this Paragraph
10 directly or indirectly by the Member or the Member’s Representatives), (ii) was available to the Member on a non-confidential
basis from a source other than the Collateral Manager or the Issuer or its advisors, or (iii) was independently acquired or developed
by the Member without violating any provision of this Paragraph 10.

 

    	- B-1-5 -

    	 

    

 

(b)          The
Member agrees that all Confidential Material shall be kept confidential by the Member and, except with the specific prior written
consent of the Issuer and the Collateral Manager or as expressly otherwise permitted by the terms hereof, will not be disclosed
by the Member to any person, other than any of the Member’s Representatives that need to know such information solely for
the purpose of the Member’s service on the Advisory Committee (it being understood that, before disclosing the Confidential
Material or any portion thereof to such Representatives, the Member shall inform such Representatives of the confidential nature
of the Confidential Material and the restrictions related thereto). The Member agrees to be responsible for any breach of this
Paragraph 10 by the Member’s Representatives. The Member further agrees that the Member shall not use Confidential Material
for any reason or purpose other than in connection with its service on the Advisory Committee. In addition, without the prior written
consent of the Issuer and the Collateral Manager, the Member agrees not to disclose to any person, other than the Member’s
Representatives that need to know such information in connection with the Member’s service on the Advisory Committee, the
fact that Confidential Material has been made available to the Member or that the Member is considering any investment presented
to it by the Collateral Manager on behalf of the Issuer.

 

(c)          If
the Member is requested or required, by oral questions, interrogatories, requests for information or documents, subpoena, civil
investigative demand or similar process, to disclose Confidential Material, the Member shall provide the Issuer and the Collateral
Manager with prompt notice of such event so that the Issuer and/or the Collateral Manager may seek a protective order or other
appropriate remedy or waive compliance with the applicable provisions of this Paragraph 10 by the Member. If the Issuer or the
Collateral Manager determines to seek such protective order or other remedy, the Member shall cooperate with the Issuer or the
Collateral Manager in seeking such protective order or other remedy. If neither the Issuer nor the Collateral Manager is able to
seek such protective order or other remedy, the Member shall seek it as directed by the Issuer or the Collateral Manager. If such
protective order or other remedy is not obtained and disclosure of Confidential Material is required, or the Issuer grants a waiver
hereunder, the Member (i) may furnish that portion (and only that portion) of the Confidential Material which the Member is legally
required to disclose and (ii) will exercise reasonable best efforts to have confidential treatment afforded any Confidential Material
so furnished.

 

(d)          Upon
the termination hereof or upon the written request of the Issuer or the Collateral Manager at any time, the Member shall promptly
deliver or cause to be delivered to the Issuer or the Collateral Manager or to a person designated by the Issuer or the Collateral
Manager (or will destroy, with such destruction to be certified to the Issuer and the Collateral Manager) all documents or other
matter furnished to the Member by or on behalf of the Issuer or the Collateral Manager constituting Confidential Material, together
with all copies thereof in the possession of the Member. In such event, all other documents or other matter constituting Confidential
Material prepared by the Member will be destroyed, with any such destruction certified to the Issuer and the Collateral Manager.

 

    	- B-1-6 -

    	 

    

 

9.          Limited
Recourse.

 

Notwithstanding any other provision hereof,
the Member acknowledges and agrees that he shall have recourse only to the Assets in respect of any claim, action, demand or right
arising in respect of, or against, the Issuer and following realization of the Assets, any claims of the Member against the Issuer
shall be extinguished and shall not thereafter revive. Notwithstanding any other provision hereof or in the Indenture, no member
of the Advisory Committee or any Affiliate thereof shall be personally liable to the Member for any amounts payable, or performance
due, by the Issuer hereunder. This provision shall survive termination of the Term.

 

10.         Non-Petition.

 

The Member agrees that, before the date
that is one year and one day after the payment in full of all Notes, or if longer, the expiration of the then applicable preference
period plus one day, the Member shall not acquiesce, petition, join any other Person in any petition or otherwise invoke or cause
any other Person to invoke the process of any governmental authority for the purpose of commencing or sustaining a case against
the Issuer under any federal or state bankruptcy, insolvency or similar law of any jurisdiction or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the Issuer or any substantial part of its property or ordering
the winding-up or liquidation of the affairs of the Issuer. This provision shall survive termination of the Term.

 

11.         Amendments.

 

The provisions of this Exhibit B-l may
be amended only by an instrument in writing signed by the Issuer and the Member and consented to by the Collateral Manager.

 

12.         Third
Parties.

 

Nothing herein, expressed or implied, shall
give to any person, other than the Issuer, the Member and the Collateral Manager, any benefit or any legal or equitable right,
remedy or claim hereunder.

 

13.         Third
Party Beneficiary.

 

Each of the Issuer and the Member agrees
that the Collateral Manager is, and that it is intended that the Collateral Manager be afforded all the benefits of, an express
third-party beneficiary in respect of the provisions hereof.

 

    	- B-1-7 -

    	 

    

 

EXHIBIT B-2

 

Additional Advisory Committee Guidelines

Affiliated Member

 

1.          Affiliated
Member Duties.

 

As an Affiliated Member of the Advisory
Committee, the Member shall:

 

(a)          serve
on the Advisory Committee and attend meetings of the Advisory Committee at such times and places (and/or telephonically or by correspondence
or otherwise) as shall be reasonably requested by the Issuer and the Collateral Manager;

 

(b)          promptly
consider certain actions to be taken with respect to certain Restricted Transactions presented by the Collateral Manager (as further
described in the Advisory Committee Guidelines);

 

(c)          in
connection with considering Restricted Transactions, promptly review and consider investment memoranda, underwriting analyses and
other information presented to the Member on behalf of the Issuer to the Advisory Committee in connection with the foregoing; and

 

(d)          take
such other actions as may be reasonably necessary or advisable in connection with the foregoing;

 

provided, however, that (i)
if the Member believes that the Member or an Affiliate thereof, or any of their respective officers, directors, employees, stockholders,
partners, members or managers, has an interest in any Restricted Transaction, the Member shall promptly disclose such interest
to the Issuer and the Collateral Manager and shall recuse himself from any consideration of such Restricted Transaction (in each
case unless the Collateral Manager and each other member of the Advisory Committee (assuming that at least one such member of the
Advisory Committee is an Independent Member and is not affiliated with the Restricted Transaction at issue) shall determine that
such interest does not create a disabling conflict) and (ii) if the Member believes that, because of an actual or potential conflict
of interest relating to a Restricted Transaction, it would be inappropriate or inadvisable for the Member to receive any confidential
information related to such Restricted Transaction, the Member shall recuse himself from any consideration of such Restricted Transaction.

 

2.          Representations
and Warranties.

 

The Member, by its execution of an Advisory
Committee Member Acknowledgement and Agreement (the “Acknowledgment and Agreement”), will be deemed to represent
and warrant that the Member has the Requisite Experience (as set forth in the Advisory Committee Guidelines).

 

If the representations and warranties set
forth in this Paragraph 2 shall at any time fail to be true and correct, the Member shall promptly notify the Issuer and the Collateral
Manager of that fact and shall immediately resign from the Advisory Committee.

 

    	- B-2-1 -

    	 

    

 

3.            Exculpation
and Indemnification.

 

(a)          The
Member shall not be liable to the Issuer, the Co-Issuer, any holder of the Notes, any holder of the Preferred Shares, any holder
of ordinary shares of the Issuer or the Collateral Manager (i) for any losses incurred as a result of the actions taken or omitted
to be taken by the Member pursuant to the provisions of this Exhibit B-2 or the Advisory Committee Guidelines, except that the
Member may be so liable to the extent such losses are the result of acts or omissions constituting willful misconduct, fraud or
gross negligence by the Member in the performance of its obligations hereunder or under the Advisory Committee Guidelines or (ii)
for the acts or omissions of any other member of the Advisory Committee.

 

(b)          The
Issuer shall indemnify the Member for, and hold the Member harmless against, any loss, liability or expense (including without
limitation reasonable attorneys’ fees and expenses) incurred arising out of or in connection with the Member’s service
as a member of the Advisory Committee, including the costs and expenses of defense against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder (collectively, “Losses”); provided,
however, that the Issuer shall not indemnify the Member for any Losses incurred as a result of acts or omissions constituting
willful misconduct, fraud or gross negligence by the Member in the performance of its obligations hereunder or under the Advisory
Committee Guidelines.

 

(c)          If
any action shall be instituted involving the Member for which indemnification hereunder may be applicable, such Member shall promptly
notify the Issuer and the Collateral Manager in writing and the Issuer shall have the right to retain counsel reasonably satisfactory
to the Issuer and the Collateral Manager to represent the Member and any others the Issuer may designate in such proceeding and
shall pay the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, the Member
shall have the right to retain individual counsel, but the fees and expenses of such counsel shall be at the expense of the Member
unless (i) the Issuer and the Member shall have agreed to the retention of such counsel or (ii) the named parties to any such proceeding
(including any impleaded parties) include the Member and the Issuer and representation of all such parties by the same counsel
would be inappropriate due to actual or potential differing interests between them. It is understood that the Issuer shall not,
in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more
than one separate firm (in addition to any local counsel) for the Member and any other members of the Advisory Committee, and that
all such reasonable fees and expenses shall be reimbursed as they are incurred. The Issuer shall not be liable for any settlement
of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the
plaintiff, the Issuer agrees, subject to the limitations noted herein, to indemnify the Member from and against any loss or liability
by reason of such settlement or judgment. The Issuer shall not, without the prior written consent of the Member, effect any settlement
of any pending or threatened proceeding in respect of which the Member is or is likely to have been a party, unless such settlement
includes an unconditional release of the Member from all liability on claims that are the subject matter of such proceeding.

 

Notwithstanding the foregoing, if any person
shall pay the Member any amount of indemnification pursuant to this Paragraph 3, such person shall succeed to the rights of the
Issuer, to the exclusion of the Issuer, set forth in this Paragraph 3(c) (including, but not limited to, the right of the Issuer
to retain counsel to represent the Member in any related proceeding and to effect any settlement of any related pending or threatened
proceeding).

 

    	- B-2-2 -

    	 

    

  

4.          Notices.

 

All notices, requests, consents, approvals
and other communications required or permitted to be given or delivered hereunder shall be in writing (which shall include notice
by telecopy or like transmission) and shall be deemed to have been given when delivered personally against receipt, upon receipt
of a transmitted confirmation if sent by telecopy or like transmission, or on the next business day when sent by overnight courier
or similar service, if addressed to the respective parties as follows:

 

If to the Issuer, to:

 

Gramercy Real Estate CDO 2005-1, Ltd.

 

c/o MaplesFS Limited

Queensgate House

P.O. Box 1093 GT

South Church Street

George Town

Telephone: + 1 345 945-7100

Fax: +1 (345)945-7099 

Attention: The Directors

 

with a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Charles Spetka

Facsimile: (301) 255-4874

 

with a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Legal Department 

Facsimile: (301) 255-4874

 

If to the Member, to the address set forth
on the Acknowledgement and Agreement,

 

or to such other address or telephone number
as either party shall have specified by notice in writing to the other party; provided, however, that any such notice
of change of address or facsimile number shall be effective only upon receipt.

 

    	- B-2-3 -

    	 

    

 

5.          Monthly
Reports.

 

The Issuer shall provide or cause to be
provided to the Member a copy of each Monthly Report (as defined in the Indenture), substantially and contemporaneously with its
delivery to the Rating Agencies (as defined in the Indenture) under the Indenture.

 

6.          Term;
Termination.

 

(a)         The
Member’s term as a Member of the Advisory Committee (the “Term”) shall commence on the date of its execution
of the Acknowledgement and Agreement and shall continue until the earlier of: (i) the liquidation and winding-up of the Issuer;
(ii) the payment in full of all Notes; (iii) the death of the Member; and (iv) the effective date of any resignation or removal
of the Member as an Affiliated Member of the Advisory Committee as provided in this Paragraph 6.

 

(b)         The
Member shall have the right to resign as a member of the Advisory Committee at any time upon 10 days’ prior written notice
to the Issuer, except that any resignation pursuant to Paragraph 2 shall be effective immediately. The Collateral Manager shall
have the right to appoint a Member to replace any Member that resigns.

 

(c)         The
holders of 66 2/3%, by outstanding principal amount, of each Class of Notes voting as a separate Class (excluding any Notes held
by the Collateral Manager, any of its Affiliates or any funds (other than the Issuer) managed by the Collateral Manager or its
Affiliates) shall have the right to remove the Member for “cause.” For this purpose, “cause” shall mean:
(i) the Member’s breach of any material provisions hereof and its failure to cure such breach within ninety (90) days after
the first to occur of (x) notice of such failure is given to the Member and (y) the Member has actual knowledge of such breach;
or (ii) an act by the Member that constitutes fraud or criminal activity in the performance of its obligations hereunder or the
Member is convicted of a felony offense or other crime involving an investment or investment-related business, fraud, false statements
or omissions, wrongful taking of property, bribery, forgery, counterfeiting or extortion, in a court of competent jurisdiction
(including the entry of a guilty or nolo contendere plea). Any replacement Affiliated Member shall be appointed by the Collateral
Manager.

 

(d)          The
Collateral Manager will have the right to remove any Affiliated Member at any time in its sole discretion (with or without cause),
and such removal will not be subject to the appointment of any successor Affiliated Member.

 

If the Member’s Term is terminated
pursuant to this Paragraph 6, such termination shall be without any further liability or obligation of either party to the other,
except that any liability or obligation of either party under Paragraph 3 shall survive the termination of such Member.

 

7.          Limited
Recourse.

 

Notwithstanding any other provision hereof,
the Member acknowledges and agrees that he shall have recourse only to the Assets in respect of any claim, action, demand or right
arising in respect of, or against, the Issuer and following realization of the Assets, any claims of the Member against the Issuer
shall be extinguished and shall not thereafter revive. Notwithstanding any other provision hereof or in the Indenture, no member
of the Advisory Committee or any Affiliate thereof shall be personally liable to the Member for any amounts payable, or performance
due, by the Issuer hereunder. This provision shall survive termination of the Term.

 

    	- B-2-4 -

    	 

    

 

8.          Non-Petition.

 

The Member agrees that, before the date
that is one year and one day after the payment in full of all Notes, or if longer, the expiration of the then applicable preference
period plus one day, the Member shall not acquiesce, petition, join any other Person in any petition or otherwise invoke or cause
any other Person to invoke the process of any governmental authority for the purpose of commencing or sustaining a case against
the Issuer under any federal or state bankruptcy, insolvency or similar law of any jurisdiction or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the Issuer or any substantial part of its property or ordering
the winding-up or liquidation of the affairs of the Issuer. This provision shall survive termination of the Term.

 

9.          Amendments.

 

The provisions of this Exhibit B-2 may
be amended only by an instrument in writing signed by the Issuer and the Member and consented to by the Collateral Manager.

 

10.         Third
Parties.

 

Nothing herein, expressed or implied, shall
give to any person, other than the Issuer, the Member and the Collateral Manager, any benefit or any legal or equitable right,
remedy or claim hereunder.

 

11.         Third
Party Beneficiary.

 

Each of the Issuer and the Member agrees
that the Collateral Manager is, and that it is intended that the Collateral Manager be afforded all the benefits of, an express
third-party beneficiary in respect of the provisions hereof.

 

    	- B-2-5 -

    	 

    

 

AMENDED AND RESTATED COLLATERAL
MANAGEMENT AGREEMENT

 

This Amended and Restated
Collateral Management Agreement, dated as of [●], 2013 (this “Agreement”), is entered into by and between
GRAMERCY REAL ESTATE CDO 2006-1, Ltd., an exempted company incorporated with limited liability under the laws of the Cayman Islands
(together with successors and assigns permitted hereunder, the “Issuer”), and CWCAPITAL INVESTMENTS LLC, a limited
liability company organized under the laws of the Commonwealth of Massachusetts (“CWCI” and together with its
successors and assigns, the “Collateral Manager”). Capitalized terms used herein but not otherwise defined herein
shall have the respective meanings ascribed thereto in the indenture, dated as of August 24, 2006 (as amended to the date
hereof, the “Indenture”), by and among the Issuer, Gramercy Real Estate CDO 2006-1 LLC, as co-issuer (the “Co-Issuer”),
Wells Fargo Bank, National Association, as trustee (in such capacity, the “Trustee”), paying agent, calculation
agent, transfer agent, custodial securities intermediary, backup advancing agent and notes registrar, and CWCapital Investments
LLC, as advancing agent.

 

WHEREAS, the Issuer appointed
GKK Manager LLC (“GKKM”) as the Collateral Manager pursuant to a Collateral Management Agreement dated as of
August 24, 2006 (the “Original CMA”), to perform certain duties and services with respect to the Assets;

 

WHEREAS, pursuant to
an Assignment and Assumption Agreement, dated as of the date hereof (the “A&A Agreement”), GKKM has assigned
to CWCI all of its rights and obligations as Collateral Manager under the Original CMA, with effect as of the date hereof, pursuant
to the terms of the A&A Agreement;

 

WHEREAS, the Collateral
Manager and the Issuer desire to amend and restate the Agreement to make certain limited changes;

 

WHEREAS, Rating Agency
Condition with respect to each Rating Agency has been satisfied in connection with CWCI becoming the Collateral Manager;

 

WHEREAS, each of the
Issuer and the Collateral Manager wish to enter into this Agreement pursuant to which the Collateral Manager agrees to perform,
on behalf of the Issuer, on and after the date hereof, certain duties and services with respect to the Assets in the manner and
on the terms set forth herein, and the Collateral Manager has the capacity to provide the services required hereby and is prepared
to perform such services upon the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements set forth herein, the parties hereto hereby agree to amend and restate the Original CMA
and agree as follows:

 

1.            Management
Services. The Collateral Manager is hereby appointed as the Issuer’s exclusive agent to provide the Issuer with certain
services in relation to the Assets specified herein and in the Indenture. Accordingly, the Collateral Manager accepts such appointment
and shall provide the Issuer with the following services (in accordance with all applicable requirements of the Indenture, the
CDO Servicing Agreement and this Agreement, including, without limitation, the Collateral Manager Servicing Standard, as applicable):

 

    	 

    	 

    

 

(a)          determining
specific Collateral Debt Securities to be purchased or Collateral Debt Securities to be sold and the timing of such purchases and
sales, in each case, as permitted by the Indenture;

 

(b)          determining
specific Eligible Investments to be purchased or sold and the timing of such purchases and sales, in each case, as permitted by
the Indenture;

 

(c)          effecting
or directing the purchase of Collateral Debt Securities and Eligible Investments, effecting or directing the sale of Collateral
Debt Securities and Eligible Investments, and directing the investment or reinvestment of proceeds therefrom, in each case as permitted
by the Indenture;

 

(d)          negotiating
with the issuers of Collateral Debt Securities as to proposed modifications or waivers of the documentation governing such Collateral
Debt Securities as permitted under the Indenture;

 

(e)          subject
to the applicable provisions of the Asset Servicing Agreement, taking action, or advising the Trustee with respect to actions to
be taken, with respect to the Issuer’s exercise of any rights (including, without limitation, voting rights, tender rights
and rights arising in connection with the bankruptcy or insolvency of an issuer or the consensual or non-judicial restructuring
of the debt or equity of an issuer) or remedies in connection with the Collateral Debt Securities and Eligible Investments, as
provided in the related Underlying Instruments including in connection with an Offer or a default, and participating in the committees
or other groups formed by creditors of an issuer, or taking any other action with respect to Collateral Debt Securities and Eligible
Investments which the Collateral Manager determines in the reasonable exercise of the Collateral Manager’s business judgment
is in the best interests of the Noteholders in accordance with, and as permitted by, the terms of the Indenture, any servicing
agreement and this Agreement,

 

(f)           consulting
with the Rating Agencies at such times as may be reasonably requested by the Rating Agencies and providing the Rating Agencies
with any information reasonably requested in connection with the Rating Agencies’ maintenance of their ratings of the Notes
and their assigning credit indicators to prospective Collateral Debt Securities, if applicable;

 

(g)          determining
whether specific Collateral Debt Securities are Credit Risk Securities Defaulted Securities or Written Down Securities and determining
whether such Collateral Debt Securities, and any other Collateral Debt Securities that are permitted or required to be sold pursuant
to the Indenture, should be sold, and directing the Trustee to effect a disposition of any such Collateral Debt Securities, subject
to, and in accordance with the terms and conditions of the Indenture;

 

(h)          (i)
monitoring the Assets on an ongoing basis and (ii) providing or causing to be provided to the Issuer and/or the other applicable
parties specified in the Indenture all reports schedules and certificates which relate to the Assets and which the Issuer is required
to prepare and deliver under the Indenture, which are not prepared and delivered by the Trustee, on behalf of the Issuer, under
the Indenture, in the form and containing all information required thereby (including, in the case of the Monthly Reports and the
Notes Valuation Reports, providing the information to the Trustee as specified in Sections 10.9(c) and 10.9(e) of the Indenture
in sufficient time for the Trustee to prepare the Monthly Report and the Notes Valuation Report) and, if applicable, in sufficient
time for the Issuer to review such required reports and schedules and to deliver them to the parties entitled thereto under the
Indenture;

 

    	- 2 -

    	 

    

 

(i)           managing
the Issuer’s Collateral Debt Securities and Eligible Investments in accordance with the Indenture, including the limitations
relating to the Eligibility Criteria, the Coverage Tests, the Collateral Quality Tests, the Reinvestment Criteria and the other
requirements of the Indenture and this Agreement, and, subject to the Asset Servicing Agreement, taking any action that the Collateral
Manager deems appropriate and consistent with the Indenture, the Collateral Manager Servicing Standard and the standard of care
set forth herein with respect to any portion of the Assets that does not constitute Collateral Debt Securities or Eligible Investments
as required or permitted by the Indenture;

 

(j)           monitoring
all Hedge Agreements and determining whether and when the Issuer should exercise any rights available under any Hedge Agreement,
and causing the Issuer to enter into additional or replacement Hedge Agreements or terminating (in part or in whole) existing Hedge
Agreements, in each case, in accordance with the Indenture and the terms of such Hedge Agreements;

 

(k)          providing
notification promptly, in writing, to the Trustee and the Issuer upon receiving actual notice that a Collateral Debt Security is
subject to an Offer or has become a Defaulted Security, a Written Down Security or a Credit Risk Security;

 

(l)           providing
notification promptly, in writing, to the Trustee and the Issuer upon becoming actually aware of a Default or an Event of Default
under the Indenture;

 

(m)         determining
(subject to the Indenture) whether, in light of the composition of Collateral Debt Securities, general market conditions and other
factors considered pertinent by the Collateral Manager, investments in additional Collateral Debt Securities would, at any time
during the Reinvestment Period, either be impractical or not beneficial to the Holders of the Preferred Shares;

 

(n)          if
the Collateral Manager elects to amortize the Notes pursuant to and in accordance with Section 9.7 of the Indenture, providing
notification, in writing, to the Trustee, the Issuer, the Co-Issuer and each Hedge Counterparty of (A) such election and (B) the
amount of such proceeds that will be used to so amortize the Notes;

 

(o)          taking
reasonable action on behalf of the Issuer to effect any Optional Redemption, any Tax Redemption, any Auction Call Redemption or
any Clean-up Call in accordance with the Indenture;

 

(p)          on
the Stated Maturity of the Notes, or in connection with any Optional Redemption, any Tax Redemption, any Auction Call Redemption
or any Clean-up Call, liquidating any remaining Hedge Agreement with the terms thereof and the Indenture;

 

    	- 3 -

    	 

    

 

(q)          monitoring
the ratings of the Collateral Debt Securities and the Issuer’s compliance with the covenants by the Issuer in the Indenture;

 

(r)          assisting
the Issuer in (i) taking any action in order to effect and/or maintain the listing of any of the Notes on the Irish Stock Exchange
or (ii) obtaining any waiver from the Irish Stock Exchange, or (iii) providing other information related to the Issuer that is
reasonably available to the Collateral Manager, in each case, when specifically requested by the Irish Stock Exchange;

 

(s)          complying
with such other duties and responsibilities as may be specifically required of the Collateral Manager by the Indenture or this
Agreement;

 

(t)          complying
in all material respects with the Investment Advisers Act of 1940, as amended (the “Advisers Act”), with respect
to the Issuer;

 

(u)          in
order to render the Securities eligible for resale pursuant to Rule 144A under the Securities Act, while any of such Securities
remain outstanding, making available, upon request, to any Holder or prospective purchaser of such Securities, additional information
regarding the Issuer and the Assets if such information is reasonably available to the Collateral Manager and constitutes Rule
144A Information required to be furnished by the Issuer pursuant to Section 7.13 of the Indenture, unless the Issuer furnishes
information to the United States Securities and Exchange Commission (the “Commission”) pursuant to Section 13
or Section 15(d) of the Exchange Act;

 

(v)         upon
reasonable request, assisting the Trustee or the Issuer with respect to such actions to be taken after the Closing Date, as is
necessary to maintain the clearing and transfer of the Notes through DTC and Euroclear; and

 

(w)         in
accordance with the Collateral Manager Servicing Standard, enforcing the rights of the Issuer as holder of the Collateral Debt
Securities, including, without limitation, taking such action as is necessary to enforce the Issuer’s rights with respect
to remedies related to breaches of representations, warranties or covenants in the Underlying Instruments for the benefit of the
Issuer.

 

In furtherance of the
foregoing, the Issuer hereby appoints the Collateral Manager the Issuer’s true and lawful agent and attorney-in-fact, with
full power of substitution and full authority in the Issuer’s name, place and stead and without any necessary further approval
of the Issuer in connection with the performance of the Collateral Manager’s duties provided for in this Agreement, including
the following powers: (i) in accordance with the terms and conditions of the Indenture and this Agreement, to buy, sell, exchange,
convert and otherwise trade Collateral Debt Securities and Eligible Investments, and (ii) to execute (under hand, under seal or
as a deed) and deliver all necessary and appropriate documents and instruments on behalf of the Issuer to the extent necessary
or appropriate to perform the services referred to in (a) through (w) above of this Section 1 and under the Indenture. The
foregoing power of attorney is a continuing power, coupled with an interest, and shall remain in full force and effect until revoked
by the Issuer in writing by virtue of the termination of this Agreement pursuant to Section 12 hereof or an assignment of
this Agreement pursuant to Section 17 hereof; provided that any such revocation shall not affect any transaction initiated
prior to such revocation. Nevertheless, if so requested by the Collateral Manager, a purchaser of a Collateral Debt Security or
Eligible Investment or a Hedge Counterparty, the Issuer shall ratify and confirm any such sale or other disposition by executing
and delivering to the Collateral Manager, such purchaser or such Hedge Counterparty all proper bills of sale, assignments, releases
and other instruments as may be designated in any such request.

 

    	- 4 -

    	 

    

 

The Collateral Manager
does not hereby guarantee that sufficient funds will be available on each Payment Date to satisfy any such payment obligations.
The Collateral Manager shall perform its obligations hereunder and under the Indenture with reasonable care and in good faith,
using a degree of skill and attention no less than that which it (a) exercises with respect to comparable assets that it manages
for itself and (b) exercises with respect to comparable assets that it manages for others, and in a manner consistent with the
practices and procedures then in effect followed by reasonable and prudent institutional managers of national standing relating
to assets of the nature and character of the Assets, except as expressly provided in this Agreement or in the Indenture. In addition,
the Collateral Manager shall use commercially reasonable efforts to ensure that directions to the Trustee with respect to the purchase
of Eligible Investments are made by the Collateral Manager only if, in the Collateral Manager’s commercially reasonable judgment
at the time of such direction, payment at settlement in respect of any such purchase could be made without any breach or violation
of, or default under, the terms of the Indenture or this Agreement. The Collateral Manager shall comply with and perform all the
duties and functions that have been specifically delegated to the Collateral Manager under the Indenture. The Collateral Manager
shall be bound to follow any amendment, supplement or modification to the Indenture of which it has received written notice at
least ten (10) Business Days prior to the execution and delivery thereof by the parties thereto; provided, however,
that, with respect to any amendment, supplement, modification or waiver to the Indenture which may affect the Collateral Manager,
the Collateral Manager shall not be bound thereby (and the Issuer agrees that it will not permit any such amendment, supplement,
modification or waiver to become effective) unless the Collateral Manager has been given prior written notice thereof and gives
its written consent thereto (which consent shall not be unreasonably withheld) to the Trustee and the Issuer prior to the effectiveness
thereof.

 

The Collateral Manager
shall take all actions reasonably requested by the Trustee to facilitate the perfection of the Trustee’s security interest
in the Assets pursuant to the Indenture.

 

Notwithstanding anything
contained herein to the contrary, (i) any cash advance the Collateral Manager makes with respect to cure payments and actions taken
in connection therewith and (ii) any voting, consent, consultation or control rights exercised by the Collateral Manager with respect
to a Collateral Debt Security that is a B Note, Participation or junior interest in a Mezzanine Loan, in each case, shall be subject
to the applicable provisions of the Asset Servicing Agreement.

 

    	- 5 -

    	 

    

 

2.           Delegation
of Duties. The Collateral Manager may delegate to third parties (including its Affiliates) which it shall select with reasonable
care, and employ third parties to execute any or all of the duties assigned to the Collateral Manager hereunder; provided,
however, that (i) the Collateral Manager shall not be relieved of any of its duties or obligations hereunder as a result
of such delegation to or employment of third parties, (ii) the Collateral Manager shall be solely responsible for the fees and
expenses payable to any such third party, except as set forth in Section 6 hereof, and (iii) such delegation does not constitute
an “assignment” under the Advisers Act.

 

3.            Purchase
and Sale Transactions; Brokerage.

 

(a)          The
Collateral Manager shall seek to obtain the best overall terms for all orders placed with respect to the Assets, considering all
reasonable circumstances, including, if applicable, the conditions or terms of early redemption of the Securities, it being understood
that the Collateral Manager has no obligation to obtain the lowest prices available. Subject to the foregoing objective, the Collateral
Manager may take into consideration all factors the Collateral Manager reasonably determines to be relevant, including, without
limitation, timing, general relevant trends and research and other brokerage services and support equipment and services related
thereto furnished to the Collateral Manager or its Affiliates by brokers and dealers in compliance with Section 28(e) of the
Exchange Act or, if Section 28(e) of the Exchange Act is not applicable, in accordance with the provisions set forth herein.
Such services may be used in connection with the other advisory activities or investment operations of the Collateral Manager and/or
its Affiliates. In addition, the Collateral Manager may take into account available prices, rates of brokerage commissions and
size and difficulty of the order, in addition to other relevant factors (such as, without limitation, execution capabilities, reliability
(based on total trading rather than individual trading), integrity, financial condition in general, execution and operational capabilities
of competing brokers and/or dealers, and the value of the ongoing relationship with such brokers and/or dealers), without having
to demonstrate that such factors are of a direct benefit to the Issuer in any specific transaction. The Issuer acknowledges and
agrees that (i) the determination by the Collateral Manager of any benefit to the Issuer is subjective and represents the Collateral
Manager’s evaluation at the time that the Issuer will be benefited by relatively better purchase or sales prices, lower brokerage
commissions and beneficial timing of transactions or a combination of any of these and/or other factors and (ii) the Collateral
Manager shall be fully protected with respect to any such determination to the extent the Collateral Manager acts in good faith,
and in accordance with the Collateral Manager Servicing Standard and in accordance with the standard of care set forth in Section 1
hereof, and without gross negligence, willful misconduct or reckless disregard of the obligations of the Issuer hereunder or under
the terms of the Indenture.

 

The Collateral Manager
may aggregate sales and purchase orders of securities placed with respect to the Assets with similar orders being made simultaneously
for other accounts managed by the Collateral Manager or with accounts of the Affiliates of the Collateral Manager if, in the Collateral
Manager’s sole judgment, exercised in good faith, such aggregation will not have an adverse effect on the Issuer. When any
such aggregate sales or purchase orders occur, the objective of the Collateral Manager (and any of its Affiliates involved in such
transactions) shall be to allocate the executions among the accounts in a manner fair and equitable to all such accounts and generally
to seek to allocate securities available for investment to all such accounts pro rata in proportion to the optimum amount
sought by the Collateral Manager for each respective account. In connection with the foregoing, the objective of the Collateral
Manager shall be to allocate investment opportunities and the purchases or sales of instruments in a manner believed by the Collateral
Manager, in good faith, taking into account the Collateral Manager’s Servicing Standard and in accordance with the standard
of care set forth in Section 1 hereof, to be fair and equitable.

 

    	- 6 -

    	 

    

 

In connection with any
purchase of a portfolio of assets other than securities, the objective of the Collateral Manager shall be to allocate such assets
(and the aggregate purchase price paid for such assets) among the Collateral Manager’s clients (including the Issuer) in
a manner believed by the Collateral Manager to be fair and equitable. The Issuer acknowledges and agrees that the Collateral Manager
shall be fully protected with respect to any such allocation to the extent the Collateral Manager acts in good faith, taking into
account the Collateral Manager’s Servicing Standard and in accordance with the standard of care set forth in Section 1
hereof, and without gross negligence, willful misconduct or reckless disregard of the obligations of the Issuer hereunder or under
the terms of the Indenture.

 

All purchases and sales
of Eligible Investments and Collateral Debt Securities by the Collateral Manager on behalf of the Issuer shall be conducted in
compliance with all applicable laws (including, without limitation, Section 206(3) of the Advisers Act) and the terms of the
Indenture After (and excluding) the Closing Date, the Collateral Manager shall cause any purchase or sale of any Collateral Debt
Security or Eligible Investment to be conducted on an arm’s-length basis or, if applicable, in compliance with Section 3(b)
hereof.

 

(b)          The
Collateral Manager, subject to and in accordance with the terms and conditions of the Indenture, may effect direct trades between
the Issuer and the Collateral Manager or any of its Affiliates acting as principal or agent (any such transaction, a “Related
Party Trade”); provided, however, that a Related Party Trade after (and excluding) the Closing Date other
than Credit Risk/Defaulted Security Cash Purchases, sales of property or securities in accordance with the Origination Agreement
and sales of Assets pursuant to an auction in connection with an Auction Call Redemption or in connection with a redemption of
the Notes pursuant to Article 9 of the Indenture, may be effected only (i) upon disclosure to and with the prior consent of an
advisory committee containing at least one member independent from the Collateral Manager (whose affirmative vote will be required
to grant such consent) acting as a surrogate for, and in the best interest of, the holders of the Securities that has been appointed
from time to time as needed by the Issuer or by the Collateral Manager following the resignation of any member (the “Advisory
Committee”) and based on the Advisory Committee’s determination that such transaction is on terms substantially
as favorable to the Issuer as would be the case if a such transaction were effected with Persons not so affiliated with the Collateral
Manager or any of its Affiliates, (ii) subject to a requirement that the purchase price in respect of any Collateral Debt Security
acquired by the Issuer from a Seller pursuant to such a direct trade may not exceed the Principal Balance thereof, plus accrued
and unpaid interest thereon (or, in the case of a Preferred Equity Security, all accrued and unpaid dividends or other distributions
not attributable to the return of capital by its governing documents) and (iii) if such purchase or sale, as the case may be, is
in accordance with the terms of the Indenture. The Advisory Committee, if any, shall be formed subject to the Advisory Committee
Guidelines attached hereto as Exhibit A (the “Advisory Committee Guidelines”). The Issuer consents
and agrees that, if any transaction relating to the Issuer, including any transaction effected between the Issuer and the Collateral
Manager or its Affiliates, shall be subject to the disclosure and consent requirements of Section 206(3) of the Advisers Act,
such requirements shall be satisfied with respect to the Issuer and all Holders of the Securities if disclosure shall be given
to, and consent obtained from, the Advisory Committee. For avoidance of doubt, it is hereby understood and agreed by the parties
hereto that no disclosure to, or consent of, the Advisory Committee shall be required with respect to Credit Risk/Defaulted Security
Cash Purchases, sales of property or securities in accordance with the Origination Agreement and sales of Assets pursuant to an
auction in connection with an Auction Call Redemption or in connection with a redemption of the Notes pursuant to Article 9 of
the Indenture. Notwithstanding the foregoing, to the extent such provisions are determined not to satisfy the requirements of the
Advisers Act, the Collateral Manager shall take such actions in connection with any Related Party Trade as will satisfy the requirements
of Section 206(3) of the Advisers Act.

 

    	- 7 -

    	 

    

 

4.           Representations
and Warranties of the Issuer. The Issuer represents and warrants to the Collateral Manager that:

 

(a)          the
Issuer (i) has been duly incorporated and registered as an exempted company and is validly existing under the laws of the Cayman
Islands, (ii) has full power and authority to own the Issuer’s assets and the securities proposed to be owned by the Issuer
and included among the Assets and to transact the business for which the Issuer was organized, and (iii) is duly qualified under
the laws of each jurisdiction where the Issuer’s ownership or lease of property or the conduct of the Issuer’s business
requires or the performance of the Issuer’s obligations under this Agreement and the Indenture would require such qualification,
except for failures to be so qualified that would not in the aggregate have a material adverse effect on the business, operations,
assets or financial condition of the Issuer or the ability of the Issuer to perform its obligations under, or on the validity or
enforceability of, this Agreement and the Indenture; the Issuer has full power and authority to execute, deliver and perform the
Issuer’s obligations hereunder and thereunder; this Agreement and the Indenture have been duly authorized, executed and delivered
by the Issuer and constitute legal, valid and binding agreements enforceable against the Issuer in accordance with their terms
except that the enforceability thereof may be subject to (a) bankruptcy, insolvency, reorganization, moratorium, receivership,
conservatorship or other similar laws now or hereafter in effect relating to creditors’ rights and (b) general principles
of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law);

 

(b)          no
consent, approval, authorization or order of or declaration or filing with any government, governmental instrumentality or court
or other Person is required for the performance by the Issuer of its duties hereunder or under the Indenture, except those that
may be required under state securities or “blue sky” laws or the applicable laws of any jurisdiction outside of the
United States, and such as have been duly made or obtained;

 

(c)          neither
the execution, delivery and performance of this Agreement or the Indenture nor the performance by the Issuer of its duties hereunder
or under the Indenture (i) conflicts with or will violate or result in a default under the Issuer’s Governing Documents
or any material contract or agreement to which the Issuer is a party or by which it or its assets may be bound, or any law, decree,
order, rule, or regulation applicable to the Issuer of any court or regulatory, administrative or governmental agency, body or
authority or arbitrator having jurisdiction over the Issuer or its properties, or (other than as contemplated or permitted by the
Indenture) will result in a lien on any of the property of the Issuer and (ii) would have a material adverse effect upon the ability
of the Issuer to perform its duties under this Agreement or the Indenture;

 

    	- 8 -

    	 

    

 

(d)          the
Issuer and its Affiliates are not in violation of any federal, state or Cayman Islands laws or regulations, and there is no charge,
investigation, action, suit or proceeding before or by any court or regulatory agency pending or, to the best knowledge of the
Issuer threatened that, in any case, would have a material adverse effect upon the ability of the Issuer to perform its duties
under this Agreement or the Indenture;

 

(e)          the
Issuer is not an “investment company” under the Investment Company Act; and

 

(f)          the
assets of the Issuer do not and will not at any time constitute the assets of any plan subject to the fiduciary responsibility
provisions of ERISA or of any plan within the meaning of Section 4975(e)(1) of the Code.

 

5.          Representations
and Warranties of the Collateral Manager. The Collateral Manager represents and warrants to the Issuer that:

 

(a)          the
Collateral Manager (i) has been duly organized, is validly existing and is in good standing under the laws of the Commonwealth
of Massachusetts, (ii) has full power and authority to own the Collateral Manager’s assets and to transact the business in
which it is currently engaged and (iii) is duly qualified and in good standing under the laws of each jurisdiction where the Collateral
Manager’s ownership or lease of property or the conduct of the Collateral Manager’s business requires, or the performance
of this Agreement and the Indenture would require, such qualification, except for failures to be so qualified that would not in
the aggregate have a material adverse effect on the business, operations, assets or financial condition of the Collateral Manager
or the ability of the Collateral Manager to perform its obligations under, or on the validity or enforceability of, this Agreement
and the provisions of the Indenture applicable to the Collateral Manager; the Collateral Manager has full power and authority to
execute, deliver and perform this Agreement and the Collateral Manager’s obligations hereunder and the provisions of the
Indenture applicable to the Collateral Manager; this Agreement has been duly authorized, executed and delivered by the Collateral
Manager and constitutes a legal, valid and binding agreement of the Collateral Manager, enforceable against it in accordance with
the terms hereof, except that the enforceability hereof may be subject to (a) bankruptcy, insolvency, reorganization, moratorium
or other similar laws now or hereafter in effect relating to creditors’ rights and (b) general principles of equity (regardless
of whether such enforcement is considered in a proceeding in equity or at law);

 

(b)          neither
the Collateral Manager nor any of its Affiliates is in violation of any federal or state securities law or regulation promulgated
thereunder that would have a material adverse effect upon the ability of the Collateral Manager to perform its duties under this
Agreement or the Indenture, and there is no charge, investigation, action, suit or proceeding before or by any court or regulatory
agency pending or, to the best knowledge of the Collateral Manager, threatened which could reasonably be expected to have a material
adverse effect upon the ability of the Collateral Manager to perform its duties under this Agreement or the Indenture;

 

    	- 9 -

    	 

    

 

(c)          neither
the execution and delivery of this Agreement nor the performance by the Collateral Manager of its duties hereunder or under the
Indenture conflicts with or will violate or result in a breach or violation of any of the terms or provisions of, or constitutes
a default under: (i) the limited liability company agreement of the Collateral Manager, (ii) the terms of any indenture, contract,
operating agreement, lease, mortgage, deed of trust, note agreement or other evidence of indebtedness or other agreement, obligation,
condition, covenant or instrument to which the Collateral Manager is a party or by which the Collateral Manager is bound, (iii)
any law, decree, order, rule or regulation applicable to the Collateral Manager of any court or regulatory, administrative or governmental
agency, body or authority or arbitrator having jurisdiction over the Collateral Manager or its properties, and which would have,
in the case of any of (i), (ii) or (iii) of this subsection (c), either individually or in the aggregate, a material adverse effect
on the business, operations, assets or financial condition of the Collateral Manager or the ability of the Collateral Manager to
perform its obligations under this Agreement or the Indenture;

 

(d)          no
consent, approval, authorization or order of or declaration or filing with any government, governmental instrumentality or court
or other Person is required for the performance by the Collateral Manager of its duties hereunder and under the Indenture, except
such as have been duly made or obtained; and

 

(e)          the
Collateral Manager is a registered investment adviser under the Advisers Act.

 

6.           Expenses.
Both parties hereto acknowledge and agree that a portion of the gross proceeds received from the issuance and sale of the Securities
will be used to pay certain organizational and structuring fees and expenses of the Co-Issuers, including the legal fees and expenses
of counsel to the Collateral Manager. The Collateral Manager shall pay all expenses and costs incurred by it in the course of performing
its obligations under this Agreement; provided, however, that the Collateral Manager shall not be liable for, and
(subject to the Priority of Payments set forth in the Indenture and to the extent funds are available therefor) the Issuer shall
be responsible for the payment of, reasonable expenses and costs (including, without limitation reasonable travel expenses) of
(i) independent accountants, consultants and other advisers retained by the Issuer or by the Collateral Manager on behalf of the
Issuer in connection with the services provided by the Collateral Manager hereunder, (ii) legal advisers retained by the Issuer
or by the Collateral Manager on behalf of the Issuer in connection with the services provided by the Collateral Manager hereunder
and (iii) the Collateral Manager (A) to the extent of reasonable expenses disbursed or allocated in valuing the Assets, disbursed
or allocated software and technology expenditures relating to the monitoring and administration of the Assets and any other reasonable
expenses incurred by the Collateral Manager in connection with matters arising in the performance by the Collateral Manager of
its duties under this Agreement and (B) for an allocable share of the cost of certain credit databases used by the Collateral
Manager in providing services to the Issuer under this Agreement.

 

    	- 10 -

    	 

    

 

7.           Fees.
As compensation for the performance of its obligations as Collateral Manager hereunder and under the Indenture, the Collateral
Manager will be entitled to receive (i) a fee, payable quarterly in arrears on each Payment Date in accordance with the Priority
of Payments, equal to 0.15% per annum of the Net Outstanding Portfolio Balance (the “Senior Collateral Management Fee”)
and (ii) an additional fee, payable quarterly in arrears on each Payment Date in accordance with the Priority of Payments, equal
to 0.25% per annum of the Net Outstanding Portfolio Balance (the “Subordinate Collateral Management Fee” and,
together with the Senior Collateral Management Fee, the “Collateral Management Fee”). Each Collateral Management
Fee will be calculated for each Interest Accrual Period assuming a 360-day year with twelve (12) thirty-day months. The Collateral
Management Fee will be calculated based on the Net Outstanding Portfolio Balance as of the first day of the applicable Interest
Accrual Period. If on any Payment Date there are insufficient funds to pay such fees (and/or any other amounts due and payable
to the Collateral Manager) in full, in accordance with the Priority of Payments, the amount not so paid shall be deferred and such
amounts shall be payable on such later Payment Date on which funds are available therefor as provided in the Priority of Payments
set forth in the Indenture. Any accrued and unpaid Senior Collateral Management Fee that is deferred due to the operation of the
Priority of Payments shall accrue interest at a per annum rate equal to LIBOR in effect for the applicable Interest Accrual Period
computed on an actual 360-day basis. Any accrued and unpaid Subordinate Collateral Management Fee that is deferred due to the operation
of the Priority of Payments shall accrue interest at a per annum rate equal to LIBOR in effect for the applicable Interest Accrual
Period on an actual 360-day basis. Notwithstanding any other provision hereof, the aggregate amount of all accrued but unpaid Subordinate
Collateral Management Fee payable on the final Payment Date or, if earlier, following the winding up of the Issuer shall be equal
to the lesser of (a) the nominal amount thereof and (b) the amount available for payment under the Priority of Payments. The Collateral
Manager hereby agrees not to cause the filing of a petition in bankruptcy against the Issuer for the nonpayment to the Collateral
Manager of any amounts due it hereunder except in accordance with Section 18 hereof and, subject to the provisions of Section 12,
to continue to serve as Collateral Manager. If this Agreement is terminated pursuant to Section 12 hereof or otherwise, the
accrued fees payable to the Collateral Manager shall be prorated for any partial periods between the Payment Dates during which
this Agreement was in effect and shall be due and payable on the first Payment Date following the date of such termination, together
with all expenses payable to the Collateral Manager in accordance with Section 6 hereof, and subject to the provisions of
the Indenture and the Priority of Payments.

 

8.          Non-Exclusivity.
Nothing herein shall prevent the Collateral Manager or any of its Affiliates or any of their officers or directors from engaging
in any other businesses or providing investment management, advisory or any other types of services to any Persons, including the
Issuer, the Trustee and the Noteholders, to the fullest extent permitted by applicable law; provided, however, that
the Collateral Manager may not take any of the foregoing actions which the Collateral Manager knows or reasonably should know would
require the Issuer or the pool of Assets to register as an “investment company” under the Investment Company Act.

 

9.           Conflicts
of Interest.

 

(a)         After
(but excluding) the Closing Date and the sales by Affiliates of the Collateral Manager of Collateral Debt Securities to the Issuer
on the Closing Date (and except in the case of Credit Risk/Defaulted Security Cash Purchases, sales of property or securities in
accordance with the Origination Agreement and sales of Assets pursuant to an auction in connection with an Auction Call Redemption
or in connection with a redemption of the Notes pursuant to Article 9 of the Indenture), the Collateral Manager will not cause
the Issuer to enter into any transaction with the Collateral Manager or any of its Affiliates as principal, unless the applicable
terms and conditions set forth in Section 1 and Section 3(b) are complied with.

 

    	- 11 -

    	 

    

 

(b)          The
Collateral Manager shall perform its obligations hereunder in accordance with the requirements of the Advisers Act and the Indenture.
The Issuer acknowledges that the Collateral Manager, its Affiliates and funds or accounts for which the Collateral Manager or its
Affiliates acts as investment adviser may at times own Notes of one or more Classes. After the Closing Date, the Collateral Manager
agrees to provide the Trustee with written notice upon the acquisition or transfer (after, but excluding, the Closing Date) of
any Securities held by the Collateral Manager, any of its Affiliates or any fund managed or controlled by the Collateral Manager
or any Affiliate thereof.

 

(c)          Nothing
herein shall prevent the Collateral Manager or any of its Affiliates or officers and directors of the Collateral Manager from engaging
in other businesses (including financing, purchasing, owning, holding, originating or disposing of any assets or investments),
or from rendering services of any kind to the Issuer and its Affiliates, the Trustee, the Holders or any other Person or entity,
whether or not any of the foregoing may be competitive with the business of the Issuer or the Co-Issuer so long as the Collateral
Manager complies with the standard of care set forth in Section 1 hereof. Without prejudice to the generality of the foregoing,
directors, officers, members, partners, employees and agents of the Collateral Manager, Affiliates of the Collateral Manager, and
the Collateral Manager may so long as the Collateral Manager complies with the standard of care set forth in Section 1 hereof,
subject to the terms and conditions of the Indenture, among other things:

 

(i)          serve
as directors (whether supervisory or managing), officers, employees, partners, members, managers, agents, nominees or signatories
for the Issuer or any Affiliate thereof, or for any obligor in respect of any of the Collateral Debt Securities or Eligible Investments,
or any of their respective Affiliates, except to the extent prohibited by their respective Underlying Instruments, as from time
to time amended; provided that (x) in the reasonable judgment of the Collateral Manager, such activity will not have a material
adverse effect on the ability of the Issuer or the Trustee to enforce its respective rights with respect to any Assets and (y)
nothing in this paragraph shall be deemed to limit the duties of the Collateral Manager set forth in Section 1 hereof;

 

(ii)         perform,
and receive fees for the performance of, services of whatever nature rendered to an obligor in respect of any of the Collateral
Debt Securities or Eligible Investments, including acting as master servicer, sub-servicer or special servicer with respect to
any CMBS Securities or with respect to any commercial mortgage loan constituting or underlying any Collateral Debt Security; provided
that, in the reasonable judgment of the Collateral Manager, such activity will not have a material adverse effect on the ability
of the Issuer or the Trustee to enforce its respective rights with respect to any of the Assets; provided, further,
with respect to such services, the Collateral Manager is not acting as an agent for the Issuer;

 

(iii)        be
retained to provide services unrelated to this Agreement to the Issuer or its Affiliates and be paid therefor;

 

    	- 12 -

    	 

    

 

(iv)        be
a secured or unsecured creditor of, or hold an equity interest in, the Issuer, its Affiliates or any obligor of any Collateral
Debt Security or Eligible Investment; provided, however, that the Collateral Manager may not be such a creditor or
hold any of such interests if, in the opinion of counsel to the Issuer, the existence of such interest would require registration
of the Issuer or the Assts as an “investment company” under the Investment Company Act or violate any provisions of
federal or applicable state law or any law, rule or regulation of any governmental body or agency having jurisdiction over the
Issuer;

 

(v)         own
equity in or own or make loans to any issuer of REIT Debt Securities including any issuer of REIT Debt Securities obligated on
any of the Collateral Debt Securities, so long as that doing so will not cause any such Collateral Debt Security to fail to comply
with the Eligibility Criteria;

 

(vi)        make,
hold or sell an investment in an issuer’s securities that may be pari passu, senior or junior in ranking to a Collateral
Debt Security;

 

(vii)       serve
as servicer and serve as special servicer and/or sub-special servicer under any servicing agreement and be paid therefor whether
related to the Issuer or not, and serve as Advancing Agent or back-up Advancing Agent under the Indenture;

 

(viii)      except
as otherwise provided in this Section 9, sell any Collateral Debt Security or Eligible Investment to, or purchase any Collateral
Debt Security from, the Issuer while acting in the capacity of principal or agent; and

 

(ix)         subject
to its obligations in Section 1 hereof to protect the Holders, serve as a member of any “creditors’ board”
with respect to any Defaulted Security, Eligible Investment or with respect to any commercial mortgage loan underlying or constituting
any Collateral Debt Security or the respective borrower for any such commercial mortgage loan.

 

It is understood that
the Collateral Manager and any of its Affiliates may engage in any other business, whether or not any of the foregoing may be competitive
with the business of the Issuer or the Co-Issuer (including financing, purchasing, owning, holding, originating or disposing of
any assets or investments), and furnish investment management and advisory services to others, including Persons that may have
investment policies similar to those followed by the Collateral Manager with respect to the Assets and that may own instruments
of the same class, or of the same type, as the Collateral Debt Securities or other instruments of the issuers of Collateral Debt
Securities and may manage portfolios similar to the Assets. The Collateral Manager and its Affiliates shall be free, in their sole
discretion, to make recommendations to others, or effect transactions on behalf of themselves or for others, which may be the same
as or different from those the Collateral Manager causes the Issuer to effect with respect to the Assets.

 

    	- 13 -

    	 

    

 

The Collateral Manager
and its Affiliates may, and may cause or advise their respective clients to, invest in assets, investments or instruments that
would be appropriate for the Issuer or the Co-Issuer or as security for the Notes and shall have no duty or obligation to offer
any such asset, investment or instrument to the Issuer or the Co-Issuer. Such investments may be different from those made to or
on behalf of the Issuer. The Collateral Manager, its Affiliates and their respective clients may have ongoing relationships with
Persons whose instruments are pledged to secure the Notes and may own instruments issued by, or loans to, issuers of the Collateral
Debt Securities or to any borrower or Affiliate of any borrower on any commercial mortgage loans underlying or constituting the
Collateral Debt Securities or the Eligible Investments. The Collateral Manager and its Affiliates may cause or advise their respective
clients to invest in instruments that are senior to, or have interests different from or adverse to, the instruments that are pledged
to secure the Notes.

 

Nothing contained in
this Agreement shall prevent the Collateral Manager or any of its Affiliates from themselves buying or selling, or from recommending
to or directing any other account to buy or sell, at any time, securities of the same kind or class, or securities of a different
kind or class of the same issuer, as those directed by the Collateral Manager to be purchased or sold hereunder. It is understood
that, to the extent permitted by applicable law, the Collateral Manager, its Affiliates, and any member, manager, officer, director,
stockholder or employee of the Collateral Manager or any such Affiliate or any member of their families or a Person advised by
the Collateral Manager may have an interest in a particular transaction or in securities of the same kind or class, or securities
of a different kind or class of the same issuer, as those purchased or sold by the Collateral Manager hereunder. Subject to applicable
law, the requirements of the Indenture and this Agreement, when the Collateral Manager is considering purchases or sales for the
Issuer and one or more of such other accounts at the same time, the Collateral Manager shall allocate available investments or
opportunities for sales in its discretion and make investment recommendations and decisions that may be the same as or different
from those made with respect to the Issuer’s investments, in accordance with applicable law and the Collateral Manager Servicing
Standard, to the extent applicable.

 

Subject to the Indenture
and the provisions of this Agreement, the Collateral Manager shall not be obligated to pursue any specific investment strategy
or opportunity that may arise with respect to the Assets.

 

The Issuer hereby acknowledges
and consents to the various potential and actual conflicts of interests that may exist with respect to the Collateral Manager as
described above; provided, however, that nothing contained in this Section 9 shall be construed as altering
the duties of the Collateral Manager set forth in this Agreement or in the Indenture.

 

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10.         Records;
Confidentiality. The Collateral Manager shall maintain appropriate books of account and records relating to services performed
hereunder, and such books of account and records shall be accessible for inspection by an authorized representative of the Issuer,
the Trustee and the Independent accountants appointed by the Issuer pursuant to the Indenture at a mutually agreed-upon time during
normal business hours and upon reasonable prior notice; provided that the Collateral Manager shall not be obligated to provide
access to any non-public information if the Collateral Manager in good faith determines that the disclosure of such information
would violate any applicable law, regulation or contractual arrangement. The Collateral Manager shall follow its customary procedures
to keep confidential all information obtained in connection with the services rendered hereunder and shall not disclose any such
information except (i) with the prior written consent of the Issuer (which consent shall not be unreasonably withheld), (ii) such
information as the Rating Agencies shall reasonably request in connection with their rating or evaluation of the Notes and/or the
Collateral Manager, as applicable, and legally permitted to be disclosed by and to the Rating Agencies, (iii) as required by law,
regulation, court order or the rules, regulations, or request of any regulatory or self-regulating organization, body or official
(including any securities exchange on which the Notes may be listed from time to time) having jurisdiction over the Collateral
Manager or as otherwise required by law or judicial process, (iv) such information as shall have been publicly disclosed other
than in violation of this Agreement, (v) to its members, officers, directors and employees, and to its attorneys, accountants and
other professional advisers in conjunction with the transactions described herein, (vi) such information as may be necessary or
desirable in order for the Collateral Manager to prepare, publish and distribute to any Person any information relating to the
investment performance of the Assets, (vii) in connection with the enforcement of the Collateral Manager’s rights hereunder
or in any dispute or proceeding related hereto, (viii) to the Trustee, (ix) to the extent required pursuant to any Hedge Agreement
of the Issuer and (x) to Holders and potential purchasers of any of the Securities.

 

Subject to compliance
with the requirements of any law, rule or regulation applicable to the Collateral Manager, nothing contained herein shall prevent
the Collateral Manager from discussing its activities hereunder in a general way in the normal course of its business, including,
without limitation, general discussions with other Persons regarding its ability to act as a collateral manager and its past performance
in such capacity. In addition, subject to compliance with the requirements of any law, rule or regulation applicable to the Collateral
Manager, with respect to information that the Collateral Manager obtains or develops regarding the Collateral Debt Securities or
Eligible Investments (including, without limitation, information regarding ratings, yield, creditworthiness, financial condition
and prospects of any issuer thereof) in connection with the performance of its services hereunder, nothing in this Section 10
shall prevent the Collateral Manager or its Affiliates, in the conduct of their respective businesses, from using such information
or disclosing such information to others so long as such other use does not, in its reasonable judgment, disadvantage the Issuer.
Notwithstanding anything to the contrary contained in this Agreement, all Persons may disclose to any and all Persons without limitation
of any kind, the U.S. federal, state and local tax treatment of the Securities and the Co-Issuers, any fact that may be relevant
to understanding the U.S. federal, state and local tax treatment of the Securities and the Issuers, and all materials of any kind
(including opinions or other tax analyses) relating to such U.S. federal, state and local tax treatment and that may be relevant
to understanding such tax treatment.

 

11.         Term.
This Agreement shall become effective on the date hereof and shall continue in full force and effect until the first to occur of
the following: (a) the payment in full of the Notes and the termination of the Indenture in accordance with its terms, (b) the
liquidation of the Assets and the final distribution of the proceeds of such liquidation to the Holders and the Issuer or (c) the
termination of this Agreement pursuant to Section 12 hereof.

 

    	- 15 -

    	 

    

 

12.         Termination.
(a) The Collateral Manager may be removed upon at least thirty (30) days prior written notice if (A) Holders of at least 75% by
Aggregate Outstanding Amount of each Class of Notes (voting as a separate Class) and (B) Holders of at least 75% of the Preferred
Shares give written notice to the Collateral Manager, the Issuer, each Hedge Counterparty and the Trustee of such removal (including
in any such calculation any Securities held by the Collateral Manager, any of its Affiliates or by any fund managed or controlled
by the Collateral Manager or any Affiliate thereof); provided that if the Collateral Manager is removed pursuant to this
clause (a), any successor Collateral Manager will not be permitted to be a Holder of or an Affiliate of any Holder of Securities.
Notice of any such removal shall be delivered by the Trustee on behalf of the Issuer, to the Holders of each Class of Notes, the
Holders of the Preferred Shares, each Rating Agency and each Hedge Counterparty.

 

(b)          This
Agreement may be terminated, and the Collateral Manager may be removed by the Issuer or the Trustee for cause, upon thirty (30)
days prior written notice by the Issuer, at the direction of (A) so long as the Class A-l Notes are the Controlling Class,
the Holders of at least a majority of the outstanding principal amount of the Class A-l Notes and (B) at any other time
(i) the Holders of at least a majority by Aggregate Outstanding Amount of each Class of Notes (excluding any Notes owned by the
Collateral Manager or any of its Affiliates or any fund managed or controlled by the Collateral Manager or any Affiliate thereof,
each voting as a separate Class) and (ii) the Holders of at least a Majority of the Preferred Shares (excluding any Preferred Shares
owned by the Collateral Manager or any of its Affiliates or any fund managed or controlled by the Collateral Manager or any Affiliate
thereof); provided, however, upon the occurrence of an event described in clause (iii) of this Section 12(b),
termination of the Collateral Manager will be automatic and without advance notice required from the Issuer, the Trustee or any
other Person. Notice of any such removal for cause shall be delivered by the Trustee, on behalf of the Issuer, to each Rating Agency,
each Hedge Counterparty and the Holders of the Notes and the Preferred Shares. In no event will the Trustee be required to determine
whether or not cause exists for the removal of the Collateral Manager. As used in this Section 12, “cause” means
any of the following events:

 

(i)          the
Collateral Manager (A) willfully breaches, or takes any action that it knows violates, any provision of this Agreement or any term
of the Indenture applicable to the Collateral Manager (not including a willful breach or knowing violation that results from a
good faith dispute regarding alternative courses of action or interpretation of instructions), which breach or action has (or could
reasonably be expected to have) a material adverse effect on the Noteholders and (B) fails to cure such breach within thirty (30)
days after the first to occur of (1) notice of such failure is given to the Collateral Manager or (2) the Collateral Manager having
actual knowledge of such breach or violation;

 

(ii)         the
Collateral Manager breaches in any material respect any provision of this Agreement or any material terms of the Indenture applicable
to the Collateral Manager and fails to cure such breach within ninety (90) days after the first to occur of (A) notice of such
failure is given to the Collateral Manager or (B) the Collateral Manager having actual knowledge of such breach;

 

(iii)        the
Collateral Manager (A) ceases to be able to, or admits in writing the Collateral Manager’s inability to, pay the Collateral
Manager’s debts when and as they become due (B) files, or consents by answer or otherwise to the filing against the Collateral
Manager of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or takes
advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (C) makes an assignment
for the benefit of the Collateral Manager’s creditors, (D) consents to the appointment of a custodian, receiver, trustee
or other officer with similar powers with respect to the Collateral Manager or with respect to any substantial part of the Collateral
Manager’s property or (E) is adjudicated as insolvent or to be liquidated;

 

    	- 16 -

    	 

    

 

(iv)        the
occurrence of an act by the Collateral Manager or any of its Affiliates that constitutes fraud or criminal activity in the performance
of its obligations under this Agreement or the indictment of the Collateral Manager or any of its respective officers or directors
for a criminal offense involving an investment or investment-related business, fraud false statements or omissions, wrongful taking
of property, bribery, forgery, counterfeiting or extortion;

 

(v)         the
failure of any representation, warranty, certificate or statement of the Collateral Manager in or pursuant to this Agreement or
the Indenture to be correct in any material respect and (x) such failure has (or could reasonably be expected to have) a material
adverse effect on the Noteholders, the Issuer or the Co-Issuer and (y) if such failure can be cured, no correction is made for
forty-five (45) days after the Collateral Manager becomes aware of such failure or receives notice thereof in writing from the
Trustee;

 

(vi)        the
occurrence and continuation of any of the Events of Default described in Sections 5.1(a) or 5.1(b) of the Indenture;

 

(vii)       so
long as the Class A-l Notes are the Controlling Class, the Class A/B Par Value is less than 101.87% on any Measurement
Date; or

 

(viii)      the
Collateral Manager consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets to,
another Person and either (A) at the time of such consolidation, amalgamation, merger or transfer, the resulting, surviving or
transferee Person fails to or cannot assume all the obligations of the Collateral Manager under this Agreement or (B) the resulting,
surviving or transferee Person lacks the legal capacity to perform the obligations of the Collateral Manager hereunder and under
the Indenture.

 

The Collateral Manager shall notify the
Trustee, the Rating Agencies and the Issuer in writing promptly upon becoming aware of any event that constitutes cause under this
Section 12(b).

 

(c)          The
Collateral Manager may resign, upon thirty (30) days prior written notice to the Issuer, the Co-Issuer, the Trustee, each Rating
Agency and each Hedge Counterparty; provided, however, that (i) no such termination or resignation shall be effective
until the date as of which a successor collateral manager shall have agreed in writing to assume all of the Collateral Manager’s
duties and obligations pursuant to this Agreement and (ii) the Issuer shall use its best efforts to appoint a successor collateral
manager to assume such duties and obligations. Notwithstanding the notice required above, the Collateral Manager shall have the
right to resign without prior notice if, due to a change in any applicable law or regulation or interpretation thereof, the performance
by the Collateral Manager of its duties under the Collateral Management Agreement would (i) adversely affect the Issuer’s
status as a qualified REIT subsidiary (within the meaning of Section 856(i)(2) of the Code) or (ii) constitute a violation
of any applicable law or regulation.

 

    	- 17 -

    	 

    

 

(d)          No
removal, termination or resignation of the Collateral Manager or termination of this Agreement shall be effective unless (x) a
successor collateral manager (a “Replacement Manager”) has been appointed by the Issuer and has agreed in writing
to assume all of the Collateral Manager’s duties and obligations pursuant to this Agreement and (y) written notification
shall have been provided in accordance with Sections 12(a), (b) or (c), as applicable. The appointment of any Replacement
Manager shall be subject to satisfaction of the Rating Agency Condition and each such Replacement Manager (i) shall have demonstrated
an ability to professionally and competently perform duties similar to those imposed upon the Collateral Manager, (ii) is legally
qualified and has the capacity to act as collateral manager, (iii) by its appointment will not cause the Issuer, the Co-Issuer
or the pool of Assets to, or result in the Issuer, the Co-Issuer or the pool of Assets becoming, an “investment company”
under the Investment Company Act, (iv) has accepted its appointment in writing and (v) by its appointment will not cause the Issuer,
the Co-Issuer or the pool of Assets to become subject to income or withholding tax that would not have been imposed but for such
appointment.

 

(e)          Upon
any resignation or removal of the Collateral Manager while any of the Notes are Outstanding, (A) so long as the Class A-l
Notes are the Controlling Class, the Holders of at least a majority of the outstanding principal amount of the Class A-l Notes
and (B) at any other time, the Holders of at least a Majority of the Preferred Shares shall have the right to instruct the
Issuer to appoint an institution identified by such Holders as Replacement Manager; provided that (i) the Issuer provides
to the Noteholders notice of such appointment and a majority by Aggregate Outstanding Amount of each Class of Notes (excluding
any Notes owned by the Collateral Manager or any of its Affiliates or any fund managed or controlled by the Collateral Manager
or any Affiliate thereof, each voting as a separate Class) does not object to such appointment within thirty (30) days, (ii) the
Rating Agency Condition has been satisfied with respect to such appointment and (iii) the requirements set forth in Section 12(d)(i)
through (v) above have been satisfied. If the Holders of the Class A-l Notes or the Preferred Shares, as the case may
be, identify two (2) institutions for appointment as described in Section 12(d)(i) or Section 12(d)(ii) above and both
are objected to as described in this clause (B)(i) above, a majority of the outstanding principal amount or notional amount,
as the case may be, of such Holders shall have the right to appoint any institution not previously identified by such holders as
Replacement Manager (subject to compliance with the conditions described in Section 12(d)(i) and Section 12(d)(ii) above).

 

(f)          In
the event that the Collateral Manager resigns pursuant to Section 12(c) or is terminated pursuant to Sections 12(a) or
(b) hereof and the Issuer has not appointed a successor prior to the day following the termination (or resignation) date specified
in such notice, the Collateral Manager will be entitled to propose a successor and will so appoint such proposed entity as successor
thirty (30) days thereafter, unless a majority of any Class of Notes objects to such appointment with such thirty (30) day period
in which case the Controlling Class of Notes (excluding any Notes owned by the Collateral Manager or any of its Affiliates or any
fund managed or controlled by the Collateral Manager or any Affiliate thereof, each voting as a separate Class) will be entitled
to propose a successor and will appoint such proposed entity as successor thirty (30) days thereafter unless a majority by Aggregate
Outstanding Amount of any other Class of Notes (excluding any Notes owned by the Collateral Manager or any of its Affiliates or
any fund managed or controlled by the Collateral Manager or any Affiliate thereof, each voting as a separate Class) objects to
such appointment within such thirty (30) day period, in each case subject to the requirements set forth in Section 12(d) above.
In the event a proposed successor Collateral Manager is not appointed pursuant to the foregoing procedures, the resigning or removed
Collateral Manager may petition any court of competent jurisdiction for the appointment of a successor collateral manager, which
appointment will not require the consent of, or be subject to the disapproval of, the Issuer, any Noteholder or any Holder of the
Preferred Shares.

 

    	- 18 -

    	 

    

 

Notwithstanding any provision
contained in this Agreement, the Indenture or otherwise, so long as the Collateral Manager continues to perform its obligations
hereunder, the Collateral Management Fee shall continue to accrue for the benefit of the Collateral Manager until termination of
this Agreement under this Section 12 shall become effective as set forth herein. In addition, the Collateral Manager shall,
subject to Section 6, be entitled to reimbursement of out-of-pocket expenses incurred in cooperating with the Replacement
Manager, including in connection with the delivery of any documents or property. In the event that the Collateral Manager is removed
or resigns and a Replacement Manager is appointed, such former Collateral Manager nonetheless shall be entitled to receive payment
of all unpaid Collateral Management Fees, including the Senior Collateral Management Fee and the Subordinated Collateral Management
Fee, accrued through the effective date of the removal or resignation, to the extent that funds are available for that purpose
in accordance with the Priority of Payments, and such payments shall rank in the Priority of Payments pari passu with the
Collateral Management Fees due to the Replacement Manager. In addition, following the removal or resignation of the Collateral
Manager hereunder, the removed or resigning Collateral Manager shall be granted access to the books of account and records of the
Issuer and the Trustee to the extent such removed or resigning Collateral Manager deems necessary to confirm the proper payment
of any amounts owing to such removed or resigning Collateral Manager hereunder.

 

(g)          Upon
the effective date of termination of this Agreement, the Collateral Manager shall as soon as practicable:

 

(i)          deliver
to the Issuer (or as the Issuer may reasonably request) all property and documents of the Trustee or the Issuer or otherwise relating
to the Assets then in the custody of the Collateral Manager (although the Collateral Manager may keep copies of such documents
for its records); and

 

(ii)         deliver
to the Trustee an accounting with respect to the books and records delivered to the Issuer or the Replacement Manager appointed
pursuant to this Section 12 hereof.

 

    	- 19 -

    	 

    

 

The Collateral Manager
shall reasonably assist and cooperate with the Trustee and the Issuer (as reasonably requested by the Trustee or the Issuer) in
the assumption of the Collateral Manager’s duties by any Replacement Manager as provided for in this Agreement, as applicable.
Notwithstanding such termination, the Collateral Manager shall remain liable to the extent set forth herein (but subject to Section 13
hereof) for the Collateral Manager’s acts or omissions hereunder arising prior to its termination as Collateral Manager hereunder
and for any expenses, losses, damages, liabilities, demands, charges and claims (including reasonable attorneys’ fees) in
respect of or arising out of a breach of the representations and warranties made by it in Section 5 hereof or from any failure
of the Collateral Manager to comply with the provisions of this Section 12(g).

 

(h)          The
Collateral Manager agrees that, notwithstanding any termination, the Collateral Manager shall reasonably cooperate in any Proceeding
arising in connection with this Agreement, the Indenture or any of the Assets (excluding any such Proceeding in which claims are
asserted against the Collateral Manager or any Affiliate of the Collateral Manager) so long as the Collateral Manager shall have
been offered (in its judgment) reasonable security, indemnity or other provision against the cost, expenses and liabilities that
might be incurred in connection therewith, but, in any event, shall not be required to make any admission or to take any action
against the Collateral Manager’s own interests or the interests of other funds and accounts advised by the Collateral Manager.

 

(i)          If
this Agreement is terminated pursuant to Section 12(a), (b) or (c) hereof, such termination shall be without any further liability
or obligation of the Issuer or the Collateral Manager to the other, except as provided in Sections 6, 7, 12 and 13 and the
last sentence of Section 10 hereof.

 

(j)          Upon
expiration of the applicable notice period with respect to termination specified in Section 12(d) hereof, all authority and
power of the Collateral Manager under this Agreement and the Indenture, whether with respect to the Assets or otherwise, shall
automatically and without further action by any person or entity pass to and be vested in the Replacement Manager.

 

13.         Liability
of Collateral Manager. (a) The Collateral Manager assumes no responsibility under this Agreement other than to render the services
called for from the Collateral Manager hereunder and under the Indenture in the manner prescribed herein and therein. The Collateral
Manager and its Affiliates, and each of their respective partners, shareholders, members, managers, officers, directors, employees,
agents, accountants and attorneys shall have no liability to the Noteholders, the Holders of the Preferred Shares, the Trustee,
the Issuer, the Co-Issuer, any Hedge Counterparty, the Initial Purchaser, or any of their respective Affiliates, partners, shareholders,
officers, directors, employees, agents, accountants and attorneys, or any other Person, for any error of judgment, mistake of law,
or for any claim, loss, liability, damage, settlement, costs, or other expenses (including reasonable attorneys’ fees and
court costs) of any nature whatsoever (collectively “Liabilities”) that arise out of or in connection with any
act or omissions of the Collateral Manager in the performance of its duties under this Agreement or the Indenture or for any decrease
in the value of the Collateral Debt Securities or Eligible Investments, except by reason of acts or omissions constituting bad
faith, willful misconduct or gross negligence in the performance of, or reckless disregard of, the duties of the Collateral Manager
hereunder and under the terms of the Indenture. The Issuer agrees that the Collateral Manager shall not be liable for any consequential,
special, exemplary or punitive damages hereunder. The acts, failure to act or breaches described in this clause (a) are collectively
referred to for purposes of this Section 13 as “Collateral Manager Breaches.”

 

    	- 20 -

    	 

    

 

(b)          The
Collateral Manager shall indemnify, defend and hold harmless the Issuer and each of its partners, shareholders, members, managers,
officers, directors, employees, agents, accountants and attorneys (each, an “Issuer Indemnified Party”) from
and against any claims that may be made against an Issuer Indemnified Party by third parties and any damages, losses, claims, liabilities,
costs or expenses (including all reasonable legal and other expenses) which are incurred as a direct consequence of the Collateral
Manager Breaches, except for liability to which such Issuer Indemnified Party would be subject by reason of willful misconduct,
bad faith, gross negligence in the performance of, or reckless disregard of the obligations of the Issuer hereunder and under the
terms of the Indenture.

 

(c)          The
Issuer shall reimburse, indemnify and hold harmless the Collateral Manager, its members, managers, directors, officers, stockholders,
partners, agents and employees and any Affiliate of the Collateral Manager and its directors, officers, stockholders, partners,
members, agents, employees, accountants and attorneys (the Collateral Manager and such other persons collectively, the “Collateral
Manager Indemnified Parties”) from any and all Liabilities, as are incurred in investigating, preparing, pursuing or
defending any claim, action, proceeding or investigation (whether or not such Collateral Manager Indemnified Party is a party)
caused by, or arising out of or in connection with this Agreement, the Indenture and the transactions contemplated hereby and thereby,
including the issuance of the Notes, or any acts or omissions of any Collateral Manager Indemnified Parties except those that are
the result of Collateral Manager Breaches. Any amounts payable by the Issuer under this Section 13(c) shall be payable only
subject to the Priority of Payments set forth in the Indenture and to the extent Assets are available therefor.

 

(d)          With
respect to any claim made or threatened against an Issuer Indemnified Party or a Collateral Manager Indemnified Party (each an
“Indemnified Party”), or compulsory process or request or other notice of any loss, claim, damage or liability
served upon an Indemnified Party, for which such Indemnified Party is or may be entitled to indemnification under this Section 13,
such Indemnified Party shall (or, with respect to Indemnified Parties that are directors, managers, officers, stockholders, members,
managers, agents or employees of the Issuer or the Collateral Manager, the Issuer or the Collateral Manager, as the case may be,
shall cause such Indemnified Party to):

 

(i)          give
written notice to the indemnifying party of such claim within ten (10) Business Days after such Indemnified Party’s receipt
of actual notice that such claim is made or threatened, which notice to the indemnifying party shall specify in reasonable detail
the nature of the claim and the amount (or an estimate of the amount) of the claim; provided, however, that the failure
of any Indemnified Party to provide such notice to the indemnifying party shall not relieve the indemnifying party of its obligations
under this Section 13 unless the rights or defenses available to the Indemnified Party are materially prejudiced or otherwise
forfeited by reason of such failure;

 

(ii)         at
the indemnifying party’s expense, provide the indemnifying party such information and cooperation with respect to such claim
as the indemnifying party may reasonably require, including making appropriate personnel available to the indemnifying party at
such reasonable times as the indemnifying party may request;

 

    	- 21 -

    	 

    

 

(iii)        at
the indemnifying party’s expense, cooperate and take all such steps as the indemnifying party may reasonably request to preserve
and protect any defense to such claim;

 

(iv)        in
the event suit is brought with respect to such claim, upon reasonable prior notice, afford to the indemnifying party the right,
which the indemnifying party may exercise in its sole discretion and at its expense, to participate in the investigation, defense
and settlement of such claim;

 

(v)         neither
incur any material expense to defend against nor release or settle any such claim or make any admission with respect thereto (other
than routine or incontestable admissions or factual admissions the failure to make of which would expose such Indemnified Party
to unindemnified liability) nor permit a default or consent to the entry of any judgment in respect thereof, in each case without
the prior written consent of the indemnifying party; and

 

(vi)        upon
reasonable prior notice, afford to the indemnifying party the right, in such party’s sole discretion and at such party’s
sole expense, to assume the defense of such claim, including the right to designate counsel reasonably acceptable to the Indemnified
Party and to control all negotiations, litigation, arbitration, settlements, compromises and appeals of such claim; provided
that, if the indemnifying party assumes the defense of such claim, it shall not be liable for any fees and expenses of counsel
for any Indemnified Party incurred thereafter in connection with such claim except that, if such Indemnified Party reasonably determines
that counsel designated by the indemnifying party has a conflict of interest, such indemnifying party shall pay the reasonable
fees and disbursements of one counsel (in addition to any local counsel) separate from such indemnifying party’s own counsel
for all Indemnified Parties in connection with any one action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances; and provided, further, that the indemnifying party
shall not have the right, without the Indemnified Party’s written consent, to settle any such claim if, in a case where the
Issuer is the indemnifying party, the Issuer does not make available (in accordance with the Priority of Payments), in a segregated
account available only for this purpose, the full amount required to pay any amounts due from the Indemnified Party under such
settlement or, in any case, such settlement (A) arises from or is part of any criminal action, suit or proceeding, (B) contains
a stipulation to, confession of judgment with respect to, or admission or acknowledgement of, any liability or wrongdoing on the
part of the Indemnified Party, (C) relates to any federal, state or local tax matters or (D) provides for injunctive relief, or
other relief other than damages, which is binding on the Indemnified Party.

 

(e)          In
the event that any Indemnified Party waives its right to indemnification hereunder, the indemnifying party shall not be entitled
to appoint counsel to represent such Indemnified Party nor shall the indemnifying party reimburse such Indemnified Party for any
costs of counsel to such Indemnified Party.

 

    	- 22 -

    	 

    

 

(f)          Nothing
herein shall in any way constitute a waiver or limitation of any rights that the Issuer or the Collateral Manager may have under
any United States federal or state securities laws.

 

14.         Obligations
of Collateral Manager. (a) The Collateral Manager to the extent required under the Indenture, and on behalf of the Issuer,
shall: (i) engage the services of an Independent certified accountant to prepare any United States federal, state or local income
tax or information returns and any non-United States income tax or information returns that the Issuer may from time to time be
required to file under applicable law (each a “Tax Return”), (ii) deliver, at least thirty (30) days before
any applicable due date upon which penalties and interest would accrue, each Tax Return, properly completed, to the Company Administrator
for signature by an Authorized Officer of the Issuer and (iii) file or deliver such Tax Return on behalf of the Issuer within any
applicable time limit with any authority or Person as required under applicable law.

 

(b)          Unless
otherwise required by any provision of the Indenture or this Agreement or by applicable law, the Collateral Manager shall not take
any action which it knows, or acting with gross negligence, would (a) materially adversely affect the Issuer for purposes of United
States federal or state law or any other law known to the Collateral Manager to be applicable to the Issuer, (b) not be permitted
under the Issuer’s Memorandum and Articles of Association or the Co-Issuer’s limited liability company agreement, (c)
require registration of the Issuer, the Co-Issuer or the Assets as an “investment company” under the Investment Company
Act or (d) cause the Issuer to violate the terms of the Indenture, including any representation or certification to be given by
the Issuer thereunder or pursuant thereto, it being understood that in connection with the foregoing the Collateral Manager will
not be required to make any independent investigation of any facts or laws not otherwise known to it in connection with its obligations
under this Agreement and the Indenture or the conduct of its business generally. The Collateral Manager will perform its duties
under this Agreement and the Indenture in a manner reasonably intended not to subject the Issuer to U.S. federal or state income
taxation, it being understood that, notwithstanding anything to the contrary set forth herein or in the Indenture, the Collateral
Manager shall be deemed to have complied with the requirements of the Indenture and any certifications, certificates or other related
documents required pursuant to the Indenture in connection with not subjecting the Issuer to U.S. federal or state income taxation,
if it satisfies the requirements set forth in this sentence and will not be liable to the Trustee, the Holders of the Notes, the
Co-Issuers, the Co-Issuers’ creditors or any other Person as a result of the Issuer engaging, or a determination that the
Issuer has engaged, in a U.S. trade or business for U.S. federal income tax purposes if it has complied with this section. The
Collateral Manager shall use all commercially reasonable efforts to ensure that no action is taken by it, and shall not intentionally
or with reckless disregard take any action, which the Collateral Manager knows or reasonably should know would have a materially
adverse United States federal or state income tax effect on the Issuer.

 

(c)          Notwithstanding
anything to the contrary herein, but subject to the standard set forth in Section 1 hereof, the Collateral Manager or any
of its Affiliates may take any action that is not specifically prohibited by the Indenture, this Agreement or applicable law that
the Collateral Manager or any Affiliate of the Collateral Managers deems to be in its (or in its portfolio’s) best interest
regardless of its impact on the Collateral Debt Securities.

 

    	- 23 -

    	 

    

 

15.         No
Partnership or Joint Venture. The Issuer and the Collateral Manager are not partners or joint venturers with each other, and
nothing herein shall be construed to make them such partners or joint venturers or impose any liability as such on either of them.
The Collateral Manager’s relation to the Issuer shall be that of an independent contractor and not a general agent. Except
as expressly provided in this Agreement and in the Indenture, the Collateral Manager shall not have authority to act for or represent
the Issuer in any way and shall not otherwise be deemed to be the Issuer’s agent.

 

16.         Notices.
Any notice from a party under this Agreement shall be in writing and sent by answer-back facsimile or addressed and delivered or
sent by certified mail, postage prepaid, return receipt requested or sent by overnight courier service guaranteeing next day delivery
to the other party at such address as such other party may designate for the receipt of such notice. Until further notice to the
other party, it is agreed that the address of the Issuer for this purpose shall be:

 

Gramercy Real Estate CDO 2006-1,
Ltd.

c/o MaplesFS Limited

P.O. Box 1093GT

Queensgate House

South Church Street

George Town

Grand Cayman, Cayman Islands

Attention: The Directors

Fax: +1 345 945 7099 

Telephone: +1 345 945 7100

 

with two copies to the Collateral
Manager (as addressed below).

 

the address of the Collateral Manager for
this purpose shall be:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Charles Spetka

Facsimile: (301) 255-4874

 

with a copy to: 

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Legal Department

Facsimile: (301) 255-4874

 

    	- 24 -

    	 

    

 

17.         Succession;
Assignment. (a) This Agreement shall inure to the benefit of and be binding upon the successors to the parties hereto. No assignment
of this Agreement shall be made without the consent of the other party except as set forth below and without satisfaction of the
Rating Agency Condition (except as permitted under clauses (b) and (c) below), provided that the Issuer may collaterally
assign its interest in this Agreement to the Trustee under the Indenture.

 

(b)          Upon
satisfaction of the Rating Agency Condition, this Agreement may be assigned by the Collateral Manager to an Affiliate thereof that
has substantially the same personnel, or personnel with comparable expertise, as the Collateral Manager and that is capable of
performing the obligations of the Collateral Manager under this Agreement; provided that satisfaction of the Rating Agency
Condition shall not be required in connection with any assignment involving an internalization of the Collateral Manager or any
assignment to a successor upon merger or acquisition. Notwithstanding the foregoing, the Collateral Manager shall provide S&P
with prompt notice of any assignment involving an internalization of the Collateral Manager.

 

(c)          This
Agreement may be assigned by the Collateral Manager to any Person other than an Affiliate only upon satisfaction of the Rating
Agency Condition and approval by a Majority of the Controlling Class.

 

(d)          Upon
the execution and delivery of such a counterpart by the assignee, the Collateral Manager shall be released from further obligations
pursuant to this Agreement, except with respect to the Collateral Manager’s obligations arising under Section 13 of
this Agreement prior to such assignment and except with respect to the Collateral Manager’s obligations under the last sentence
of Section 10 and Sections 7 and 12 hereof.

 

18.         No
Bankruptcy Petition/Limited Recourse. The Collateral Manager covenants and agrees that, prior to the date that is one year
and one day (or, if longer, the applicable preference period then in effect) after the payment in full of all Notes issued by the
Issuer under the Indenture, the Collateral Manager will not institute against, or join any other Person in instituting against,
the Issuer or the Co-Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings
under any bankruptcy, insolvency, reorganization or similar law of any jurisdiction; provided, however, that nothing
in this Section 18 shall preclude, or be deemed to stop, the Collateral Manager from taking any action prior to the expiration
of the aforementioned one year and one day period (or, if longer, the applicable preference period then in effect) in (x) any case
or proceeding voluntarily filed or commenced by the Issuer or the Co-Issuer, as the case may be or (y) any involuntary insolvency
proceeding filed or commenced against the Issuer or the Co-Issuer, as the case may be, by a Person other than the Collateral Manager.
The Collateral Manager hereby acknowledges and agrees that the Issuer’s obligations hereunder will be solely the corporate
obligations of the Issuer, and the Collateral Manager will not have recourse to any of the directors, officers, employees, shareholders
or affiliates of the Issuer, or any members of the Advisory Committee, with respect to any claims, losses, damages, liabilities,
indemnities or other obligations in connection with any transaction contemplated hereby. Notwithstanding any provision hereof,
all obligations of the Issuer and any claims arising from this Agreement or any transactions contemplated by this Agreement shall
be limited solely to the Collateral Debt Securities and the other Assets and payable in accordance with the Priority of Payments.
If payments on any such claims from the Assets are insufficient, no other assets shall be available for payment of the deficiency
and, following liquidation of all the Assets, any claims of the Collateral Manager arising from this Agreement and the obligations
of the Issuer to pay such deficiencies shall be extinguished. The Issuer hereby acknowledges and agrees that the Collateral Manager’s
obligations hereunder shall be solely the limited liability company obligations of the Collateral Manager and the Issuer shall
not have any recourse to any of the members, managers, directors, officers, employees, shareholders or Affiliates of the Collateral
Manager with respect to any claims losses damages liabilities indemnities or other obligations in connection with any transactions
contemplated hereby. The provisions of this Section 18 shall survive the termination of this Agreement for any reason whatsoever.

 

    	- 25 -

    	 

    

 

19.         Miscellaneous.
(a) This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without regard
to the conflict of laws principles thereof other than Sections 5-1401 and 5-1402 of the General Obligations Law of the State
of New York. With respect to any suit, action or proceedings relating to this Agreement (“Proceedings”), each
party irrevocably (i) submits to the nonexclusive jurisdiction of the courts of the State of New York and the United States District
Court located in the Borough of Manhattan in New York City and (ii) waives any objection that such party may have at any time to
the laying of venue of any Proceedings brought in any such court, waives any claim that such Proceedings have been brought in an
inconvenient forum and further waives the right to object, with respect to such Proceedings, that such court does not have any
jurisdiction over such party. Nothing in this Agreement precludes either party from bringing Proceedings in any other jurisdiction,
nor shall the bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction.
The Collateral Manager irrevocably consents to the service of any and all process in any action or proceeding by the mailing or
delivery of copies of such process to the Collateral Manager at the office of the Collateral Manager, 7501 Wisconsin Avenue, Suite
500W, Bethesda, Maryland 20814, Attention: Daniel Warcholak, or such other address as the Collateral Manager may advise the Issuer
in writing. The Issuer irrevocably consents to the service of any and all process in any action or proceeding by the mailing or
delivery of copies of such process to CT Corporation System, 111 8th Avenue, 13th Floor, New York,
New York 10011 (and any successor entity), as its authorized agent to receive and forward on its behalf service of any and all
process which may be served in any such suit, action or proceeding in any such court and agrees that service of process upon CT
Corporation System shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding
and shall be taken and held to be valid personal service upon it. Each party hereto agrees that a final judgment in any such action
or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided
by law.

 

EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

    	- 26 -

    	 

    

 

(b)          The
captions in this Agreement are included for convenience only and in no way define or limit any of the provisions hereof or otherwise
affect their construction or effect.

 

(c)          In
the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding
shall not invalidate or render unenforceable any other provision hereof.

 

(d)          This
Agreement (including Exhibit A attached hereto) may not be amended or modified or any provision thereof waived (i)
except by an instrument in writing signed by both of the parties hereto or, in the case of a waiver, by the party waiving compliance
and (ii) in each case, in compliance with Section 15.1(f) of the Indenture, including with respect to satisfaction of the
Rating Agency Condition. This Agreement (including Exhibit A attached hereto) may be modified without the prior written
consent of the Trustee, any Hedge Counterparty or the holders of Notes to correct any inconsistency or cure any ambiguity or mistake.
Any other amendment of this Agreement (including Exhibit A attached hereto) shall require the prior written consent of the
Trustee and each Hedge Counterparty, which consent shall not be unreasonably withheld and is subject to the satisfaction of the
Rating Agency Condition.

 

(e)          This
Agreement constitutes the entire understanding and agreement between the parties hereto and supersedes all other prior and contemporaneous
understandings and agreements, whether written or oral, between the parties hereto concerning this subject matter (other than the
Indenture).

 

(f)          The
Collateral Manager hereby agrees and consents to the terms of Section 15.1(f) of the Indenture applicable to the Collateral
Manager and shall perform any provisions of the Indenture made applicable to the Collateral Manager by the Indenture as required
by Section 15.1(f) of the Indenture.

 

(g)          This
Agreement may be executed in any number of counterparts, each of which so executed shall be deemed an original, but all such counterparts
shall together constitute one and the same instrument.

 

(h)          The
words “include,” “includes” and “including” shall be deemed to be followed by the phrase “but
not limited to.”

 

(i)          Subject
to the last sentence of the penultimate paragraph of Section 1 hereof in the event of a conflict between the terms of this
Agreement and the Indenture, including with respect to the obligations of the Collateral Manager hereunder and thereunder, the
terms of this Agreement shall be controlling.

 

(j)          No
failure or delay on the part of any party hereto to exercise any right or remedy under this Agreement shall operate as a waiver
thereof, and no waiver shall be effective unless it is in writing and signed by the party granting such waiver.

 

(k)          This
Agreement is made solely for the benefit of the Issuer, the Collateral Manager and the Trustee, on behalf of the Noteholders, the
Holders of Preferred Shares and each Hedge Counterparty, their successors and assigns, and no other person shall have any right,
benefit or interest under or because of this Agreement.

 

(l)          The
Collateral Manager hereby irrevocably waives any rights it may have to set off against the Assets.

 

    	- 27 -

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed (as a deed in the case of the Issuer) by their respective authorized representatives
as of the day and year first above written.

 

	 	Executed as a Deed
	 	 
	 	GRAMERCY REAL ESTATE CDO 2006-1,
	 	LTD.,
    as Issuer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	In the presence of:
	 	 
	 	Witness:	 
	 	 	Name:
	 	 	Occupation:
	 	 	Title:

 

	 	CWCAPITAL INVESTMENTS LLC,
	 	as Collateral Manager
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	- 28 -

    	 

    

 

EXHIBIT A

 

Advisory Committee Guidelines

 

1.          General.

 

If the Collateral Manager desires to direct
a trade between the Issuer and the Collateral Manager or any of its Affiliates, acting as principal (other than with respect to
Credit Risk/Defaulted Security Cash Purchases, sales of property or securities in accordance with the Origination Agreement and
sales of Assets pursuant to an auction in connection with an Auction Call Redemption or in connection with a redemption of the
Notes pursuant to Article 9 of the Indenture, none of which shall require the approval of the Advisory Committee) (each such trade,
a “Restricted Transaction”), before effecting such trade, it shall first present such Restricted Transaction
to the Advisory Committee for review and prior approval.

 

2.          Composition
of the Advisory Committee.

 

The Advisory Committee must be comprised
of at least one person (which may be an individual or an entity), who is Independent (as defined in the Indenture) of the Collateral
Manager (each such person, an “Independent Member”), who acts as a surrogate for, and in the best interest of,
the holders of the Securities.

 

The Advisory Committee also may have one
or more members appointed by the Collateral Manager and employed by the Collateral Manager or an Affiliate thereof (each such person,
an “Affiliated Member”).

 

3.          Requisite
Experience.

 

Each member of the Advisory Committee must
at the time of appointment and at all relevant times thereafter have Requisite Experience.

 

The Collateral Manager and the Issuer will
have the right to accept a representation and warranty from a member regarding its Requisite Experience, in the absence of actual
knowledge by a responsible officer of the Collateral Manager to the contrary.

 

“Requisite Experience”
means experience as a sophisticated investor, including, without limitation, in fixed income investing (directly and/or through
investment vehicles) and/or substantial experience and knowledge in and of the commercial real estate loan market and related investment
arenas, such that the relevant Advisory Committee member believes that it is capable of determining whether or not to participate
in Advisory Committee decisions on the basis of the provisions described herein. Such person need not be a professional loan investor
or loan originator.

 

4.          Appointment
of Initial Members of the Advisory Committee.

 

The initial members of the Advisory Committee
will be appointed by the Collateral Manager. Thereafter the Collateral Manager will have the right to appoint a member to replace
any member that resigns. Notwithstanding the foregoing, in the event of a resignation of the Independent Member, a replacement
Independent Member may be appointed by the Issuer if the Collateral Manager does not promptly appoint a replacement Independent
Member.

 

    	A-1

    	 

    

 

5.          Term.

 

Each member of the Advisory Committee will
serve until he or she resigns, dies or is removed.

 

6.          Approval
Process.

 

If the Collateral Manager wants the Issuer
to consider a Restricted Transaction, the Collateral Manager will give notice of the proposed Restricted Transaction to the members
of the Advisory Committee. The notice will contain the request by the Collateral Manager for the Advisory Committee’s consent
to the Restricted Transaction. The notice will be accompanied by:

 

		·	an investment memorandum; and

 

		·	an underwriting analysis.

 

The investment memorandum will (a) be a
reasonably detailed (anticipated to be approximately two pages) description of the proposed investment, the issuer thereof and
related information and (b) include information about the identity of any Affiliated Person involved in the proposed investment
and the capacity in which it will be acting and a narrative about why, in the judgment of the Collateral Manager, the investment
is appropriate to be purchased or sold by the Issuer, as the case may be. The notice will contain the Collateral Manager’s
offer to provide additional information as requested to the Advisory Committee.

 

7.          Unanimous
Written Consent.

 

Regardless of the composition of the Advisory
Committee, each Restricted Transaction must be approved in writing by each member of the Advisory Committee.

 

The members of the Advisory Committee are
under no obligation to consent to a Restricted Transaction.

 

		·	If all of the members of the Advisory Committee approve a Restricted Transaction in writing, the
Issuer will effect it at the option of the Collateral Manager (subject to the others terms of this Agreement and the Indenture).

 

		·	If the members of the Advisory Committee notify the Collateral Manager that the Advisory Committee
will not approve the Restricted Transaction, the Issuer will not effect the Restricted Transaction.

 

If at any time the Advisory Committee does
not have at least one Independent Member or any member does not have Requisite Experience, the Collateral Manager will not be permitted
to use the Advisory Committee to approve any Restricted Transaction.

 

8.          Compensation.

 

Each Independent Member shall receive arm’s
length compensation by the Issuer for serving on the Advisory Committee as agreed between such member and the Issuer.

 

    	A-2

    	 

    

 

EXHIBIT B-l

 

Additional Advisory Committee Guidelines

 

Independent Member

 

1.          Independent
Member Duties.

 

As an Independent Member of the Advisory
Committee, the Member shall:

 

(a)          serve
on the Advisory Committee and attend meetings of the Advisory Committee at such times and places (and/or telephonically or by correspondence
or otherwise) as shall be reasonably requested by the Issuer and the Collateral Manager;

 

(b)          promptly
consider certain actions to be taken with respect to certain Restricted Transactions presented by the Collateral Manager (as further
described in the Advisory Committee Guidelines);

 

(c)          in
connection with considering Restricted Transactions, promptly review and consider investment memoranda, underwriting analyses and
other information presented to the Member on behalf of the Issuer to the Advisory Committee in connection with the foregoing; and

 

(d)          take
such other actions as may be reasonably necessary or advisable in connection with the foregoing;

 

provided, however, that (i)
if the Member believes that the Member or an Affiliate thereof, or any of their respective officers, directors, employees, stockholders,
partners, members or managers, has an interest in any Restricted Transaction, the Member shall promptly disclose such interest
to the Issuer and the Collateral Manager and shall recuse himself from any consideration of such Restricted Transaction (in each
case unless the Collateral Manager and each other member of the Advisory Committee (assuming that at least one such member of the
Advisory Committee is an Independent Member and is not affiliated with the Restricted Transaction at issue) shall determine that
such interest does not create a disabling conflict) and (ii) if the Member believes that, because of an actual or potential conflict
of interest relating to a Restricted Transaction, it would be inappropriate or inadvisable for the Member to receive any Confidential
Information (as defined in Paragraph 8 of this Exhibit B-l), the Member shall recuse himself from any consideration of such Restricted
Transaction.

 

2.          Representations
and Warranties.

 

The Member, by its execution of an Advisory
Committee Member Acknowledgement and Agreement (the “Acknowledgment and Agreement”), will be deemed to represent
and warrant that:

 

(a)          the
Member is Independent of the Collateral Manager (including, for this purpose, an employee, partner, member or director thereof);
and

 

    	B-1-1

    	 

    

 

(b)          the
Member has the Requisite Experience (as set forth in the Advisory Committee Guidelines).

 

If the representations and warranties set
forth in this Paragraph 2 shall at any time fail to be true and correct, the Member shall promptly notify the Issuer and the Collateral
Manager of that fact and shall immediately resign from the Advisory Committee.

 

3.          Compensation.

 

During the Term (as defined in Paragraph
7 of this Exhibit B-l), the Issuer shall pay the Member a per annum fee (the “Fee”) at a rate to be established
between the Collateral Manager and the Member, payable on each Payment Date (as defined in the Indenture), subject to the Priority
of Payments (as defined in the Indenture). The Fee payable on any specified Payment Date (as defined in the Indenture) shall accrue
during each period from and including the preceding Payment Date (or, with respect to the first payment, from and including the
date hereof) to but excluding such specified Payment Date (or, if earlier, to but excluding the last day of the Term), calculated
on the basis of the actual number of days elapsed over a year of 365 or 366 days, as the case may be. If any Fee is not paid when
due as a result of lack of available funds under the Priority of Payments, such Fee shall be deferred and shall be payable on subsequent
Payment Dates in accordance with the Priority of Payments.

 

The Issuer shall reimburse the Member,
promptly after demand therefor accompanied by reasonable supporting documentation, for any reasonable authorized expenses incurred
in connection with any meetings of or actions by the Advisory Committee.

 

4.          Exculpation
and Indemnification.

 

(a)          The
Member shall not be liable to the Issuer, the Co-Issuer, any holder of the Notes, any holder of the Preferred Shares, any holder
of ordinary shares of the Issuer or the Collateral Manager (i) for any losses incurred as a result of the actions taken or omitted
to be taken by the Member pursuant to the provisions of this Exhibit B-l or the Advisory Committee Guidelines, except that the
Member may be so liable to the extent such losses are the result of acts or omissions constituting willful misconduct, fraud or
gross negligence by the Member in the performance of its obligations hereunder or under the Advisory Committee Guidelines or (ii)
for the acts or omissions of any other member of the Advisory Committee.

 

(b)          The
Issuer shall indemnify the Member for, and hold the Member harmless against, any loss, liability or expense (including without
limitation reasonable attorneys’ fees and expenses) incurred arising out of or in connection with the Member’s service
as a member of the Advisory Committee, including the costs and expenses of defense against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder (collectively, “Losses”); provided,
however, that the Issuer shall not indemnify the Member for any Losses incurred as a result of acts or omissions constituting
willful misconduct, fraud or gross negligence by the Member in the performance of its obligations hereunder or under the Advisory
Committee Guidelines.

 

    	B-1-2

    	 

    

 

(c)          If
any action shall be instituted involving the Member for which indemnification hereunder may be applicable, such Member shall promptly
notify the Issuer and the Collateral Manager in writing and the Issuer shall have the right to retain counsel reasonably satisfactory
to the Issuer and the Collateral Manager to represent the Member and any others the Issuer may designate in such proceeding and
shall pay the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, the Member
shall have the right to retain individual counsel but the fees and expenses of such counsel shall be at the expense of the Member
unless (i) the Issuer and the Member shall have agreed to the retention of such counsel or (ii) the named parties to any such proceeding
(including any impleaded parties) include the Member and the Issuer and representation of all such parties by the same counsel
would be inappropriate due to actual or potential differing interests between them. It is understood that the Issuer shall not,
in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more
than one separate firm (in addition to any local counsel) for the Member and any other members of the Advisory Committee, and that
all such reasonable fees and expenses shall be reimbursed as they are incurred. The Issuer shall not be liable for any settlement
of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the
plaintiff, the Issuer agrees, subject to the limitations noted herein, to indemnify the Member from and against any loss or liability
by reason of such settlement or judgment. The Issuer shall not, without the prior written consent of the Member, effect any settlement
of any pending or threatened proceeding in respect of which the Member is or is likely to have been a party, unless such settlement
includes an unconditional release of the Member from all liability on claims that are the subject matter of such proceeding. Notwithstanding
the foregoing, if any person shall pay the Member any amount of indemnification pursuant to this Paragraph 4, such person shall
succeed to the rights of the Issuer, to the exclusion of the Issuer, set forth in this Paragraph 4(c) (including, but not limited
to, the right of the Issuer to retain counsel to represent the Member in any related proceeding and to effect any settlement of
any related pending or threatened proceeding).

 

5.          Notices.

 

All notices, requests, consents, approvals
and other communications required or permitted to be given or delivered hereunder shall be in writing (which shall include notice
by telecopy or like transmission) and shall be deemed to have been given when delivered personally against receipt, upon receipt
of a transmitted confirmation if sent by telecopy or like transmission, or on the next business day when sent by overnight courier
or similar service, if addressed to the respective parties as follows:

 

If to the Issuer, to:

 

Gramercy Real Estate CDO 2006-1, Ltd.

 

c/o Maples Finance Limited

Queensgate House

P.O. Box 1093GT

South Church Street

George Town

Grand Cayman, Cayman Islands

Telephone:  +1 (345)
945-7099

Fax:            + 1 (345) 945-7100

Attention:   The Directors

 

    	B-1-3

    	 

    

 

with a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Charles Spetka

Facsimile: (301) 255-4874

 

with a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Legal Department

Facsimile: (301) 255-4874

 

If to the Member, to the address set
forth on the Acknowledgement and Agreement, or to such other address or telephone number as either party shall have specified
by notice in writing to the other party; provided, however, that any such notice of change of address or
facsimile number shall be effective only upon receipt.

 

6.          Monthly
Reports.

 

The Issuer shall provide or cause to be
provided to the Member a copy of each Monthly Report (as defined in the Indenture), substantially and contemporaneously with its
delivery to the Rating Agencies (as defined in the Indenture) under the Indenture.

 

7.          Term;
Termination.

 

(a)          The
Member’s term as an Independent Member of the Advisory Committee (the “Term”) shall commence on the date
of its execution of the Acknowledgement and Agreement and shall continue until the earlier of: (i) the liquidation and winding-up
of the Issuer; (ii) the payment in full of all Notes; (iii) the death of the Member; and (iv) the effective date of any resignation
or removal of the Member as an Independent Member of the Advisory Committee as provided in this Paragraph 7.

 

(b)          The
Member shall have the right to resign as a member of the Advisory Committee at any time upon 10 days’ prior written notice
to the Issuer, except that any resignation pursuant to Paragraph 2 shall be effective immediately. The Collateral Manager shall
have the right to appoint an Independent Member to replace any Independent Member that resigns.

 

    	B-1-4

    	 

    

 

(c)          The
holders of 662⁄3%, by outstanding principal amount, of each Class of Notes voting as a separate Class (excluding any Notes
held by the Collateral Manager, any of its Affiliates or any funds (other than the Issuer) managed by the Collateral Manager or
its Affiliates) shall have the right to remove the Member for “cause.” For this purpose, “cause” shall
mean: (i) the Member’s breach of any material provisions hereof and its failure to cure such breach within ninety (90) days
after the first to occur of (x) notice of such failure is given to the Member and (y) the Member has actual knowledge of such breach;
(ii) an act by the Member that constitutes fraud or criminal activity in the performance of its obligations hereunder or the Member
is indicted of a felony offense or other crime involving an investment or investment-related business, fraud, false statements
or omissions, wrongful taking of property, bribery, forgery, counterfeiting or extortion, in a court of competent jurisdiction
(including the entry of a guilty or nolo contendere plea) or (iii) the Member becomes affiliated with the Collateral Manager or
any affiliate of the Collateral Manager.

 

(d)          The
Member also shall be subject to immediate removal from the Committee for “cause” by the Collateral Manager. For purposes
of this Paragraph 9(d), “cause” shall mean: (i) each of the events listed in clauses (i) through (iii) of the definition
of “cause” in Paragraph 9(c) above; (ii) the Member’s failure to substantially perform its duties hereunder and/or
under the Advisory Committee Guidelines; (iii) any of the Member’s representations and warranties set forth in Paragraph
2 hereof becomes untrue; or (iv) the Member fails to respond to a notice provided by the Collateral Manager with respect to a Restricted
Transaction within five business days after such notice or if the Member is not available to consider a Restricted Transaction
within five business days after such notice.

 

If the Member’s Term is terminated
pursuant to this Paragraph 7, such termination shall be without any further liability or obligation of either party to the other,
except that any liability or obligation of either party under Paragraph 3 or 4 shall survive the termination of such Member.

 

8.          Confidentiality.
The Member may receive certain information from the Collateral Manager and/or the Issuer in connection with its service as a member
of the Advisory Committee. The Member agrees, as set forth in this Paragraph 10, to treat confidentially any Confidential Material
(as defined below).

 

(a)          “Confidential
Material” means any non-public, confidential or proprietary information that is or has been provided by the Collateral
Manager or the Issuer to the Member or the Member’s employees, attorneys, accountants, advisors or other authorized representatives
(collectively, “Representatives”) in connection with the Member’s service on the Advisory Committee, regardless
of the form in which such information is communicated or maintained, and all notes, reports, analyses, compilations, studies, files
or other documents or material, whether prepared by the Member or others, which are based on, contain or otherwise reflect such
information. However, “Confidential Material” does not include any information that (i) at the time of disclosure or
thereafter is generally available to and known by the public (other than as a result of a disclosure in violation of this Paragraph
10 directly or indirectly by the Member or the Member’s Representatives), (ii) was available to the Member on a non-confidential
basis from a source other than the Collateral Manager or the Issuer or its advisors, or (iii) was independently acquired or developed
by the Member without violating any provision of this Paragraph 10.

 

    	B-1-5

    	 

    

 

(b)          The
Member agrees that all Confidential Material shall be kept confidential by the Member and, except with the specific prior written
consent of the Issuer and the Collateral Manager or as expressly otherwise permitted by the terms hereof, will not be disclosed
by the Member to any person, other than any of the Member’s Representatives that need to know such information solely for
the purpose of the Member’s service on the Advisory Committee (it being understood that, before disclosing the Confidential
Material or any portion thereof to such Representatives, the Member shall inform such Representatives of the confidential nature
of the Confidential Material and the restrictions related thereto). The Member agrees to be responsible for any breach of this
Paragraph 10 by the Member’s Representatives. The Member further agrees that the Member shall not use Confidential Material
for any reason or purpose other than in connection with its service on the Advisory Committee. In addition, without the prior written
consent of the Issuer and the Collateral Manager, the Member agrees not to disclose to any person, other than the Member’s
Representatives that need to know such information in connection with the Member’s service on the Advisory Committee, the
fact that Confidential Material has been made available to the Member or that the Member is considering any investment presented
to it by the Collateral Manager on behalf of the Issuer.

 

(c)          If
the Member is requested or required, by oral questions, interrogatories, requests for information or documents, subpoena, civil
investigative demand or similar process, to disclose Confidential Material the Member shall provide the Issuer and the Collateral
Manager with prompt notice of such event so that the Issuer and/or the Collateral Manager may seek a protective order or other
appropriate remedy or waive compliance with the applicable provisions of this Paragraph 10 by the Member. If the Issuer or the
Collateral Manager determines to seek such protective order or other remedy, the Member shall cooperate with the Issuer or the
Collateral Manager in seeking such protective order or other remedy. If neither the Issuer nor the Collateral Manager is able to
seek such protective order or other remedy, the Member shall seek it as directed by the Issuer or the Collateral Manager. If such
protective order or other remedy is not obtained and disclosure of Confidential Material is required, or the Issuer grants a waiver
hereunder, the Member (i) may furnish that portion (and only that portion) of the Confidential Material which the Member is legally
required to disclose and (ii) will exercise reasonable best efforts to have confidential treatment afforded any Confidential Material
so furnished.

 

(d)          Upon
the termination hereof or upon the written request of the Issuer or the Collateral Manager at any time, the Member shall promptly
deliver or cause to be delivered to the Issuer or the Collateral Manager or to a person designated by the Issuer or the Collateral
Manager (or will destroy, with such destruction to be certified to the Issuer and the Collateral Manager) all documents or other
matter furnished to the Member by or on behalf of the Issuer or the Collateral Manager constituting Confidential Material, together
with all copies thereof in the possession of the Member. In such event, all other documents or other matter constituting Confidential
Material prepared by the Member will be destroyed, with any such destruction certified to the Issuer and the Collateral Manager.

 

    	B-1-6

    	 

    

 

9.          Limited
Recourse.

 

Notwithstanding any other provision hereof,
the Member acknowledges and agrees that he shall have recourse only to the Assets in respect of any claim, action, demand or right
arising in respect of, or against, the Issuer and following realization of the Assets, any claims of the Member against the Issuer
shall be extinguished and shall not thereafter revive. Notwithstanding any other provision hereof or in the Indenture, no member
of the Advisory Committee or any Affiliate thereof shall be personally liable to the Member for any amounts payable, or performance
due, by the Issuer hereunder. The Member agrees that the obligations of the Issuer to the Member are solely the corporate obligations
of the Issuer and that the Member will not have recourse to any of the directors, officers, employees, shareholders or affiliates
of the Issuer with respect to any claims, losses, damages, liabilities, indemnities or other obligations in connection with any
transaction contemplated hereby or in connection herewith. This provision shall survive termination of the Term.

 

10.         Non-Petition.

 

The Member agrees that, before the date
that is one year and one day or if longer, the expiration of the then applicable preference period plus one day, after the payment
in full of all Notes the Member shall not acquiesce, petition, join any other Person in any petition or otherwise invoke or cause
any other Person to invoke the process of any governmental authority for the purpose of commencing or sustaining a case against
the Issuer under any federal or state bankruptcy, insolvency or similar law of any jurisdiction or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the Issuer or any substantial part of its property or ordering
the winding-up or liquidation of the affairs of the Issuer. This provision shall survive termination of the Term.

 

11.         Amendments.

 

The provisions of this Exhibit B-l may
be amended only by an instrument in writing signed by the Issuer and the Member and consented to by the Collateral Manager.

 

12.         Third
Parties.

 

Nothing herein, expressed or implied, shall
give to any person, other than the Issuer, the Member and the Collateral Manager, any benefit or any legal or equitable right,
remedy or claim hereunder.

 

13.         Third-Party
Beneficiary.

 

Each of the Issuer and the Member agrees
that the Collateral Manager is, and that it is intended that the Collateral Manager be afforded all the benefits of, an express
third-party beneficiary in respect of the provisions hereof.

 

    	B-1-7

    	 

    

 

EXHIBIT B-2

 

Additional Advisory Committee Guidelines

 

Affiliated Member

 

1.          Affiliated
Member Duties.

 

As an Affiliated Member of the Advisory
Committee, the Member shall:

 

(a)          serve
on the Advisory Committee and attend meetings of the Advisory Committee at such times and places (and/or telephonically or by correspondence
or otherwise) as shall be reasonably requested by the Issuer and the Collateral Manager;

 

(b)          promptly
consider certain actions to be taken with respect to certain Restricted Transactions presented by the Collateral Manager (as further
described in the Advisory Committee Guidelines);

 

(c)          in
connection with considering Restricted Transactions, promptly review and consider investment memoranda, underwriting analyses and
other information presented to the Member on behalf of the Issuer to the Advisory Committee in connection with the foregoing; and

 

(d)          take
such other actions as may be reasonably necessary or advisable in connection with the foregoing;

 

provided, however, that (i)
if the Member believes that the Member or an Affiliate thereof, or any of their respective officers, directors, employees, stockholders,
partners, members or managers, has an interest in any Restricted Transaction, the Member shall promptly disclose such interest
to the Issuer and the Collateral Manager and shall recuse himself from any consideration of such Restricted Transaction (in each
case unless the Collateral Manager and each other member of the Advisory Committee (assuming that at least one such member of the
Advisory Committee is an Independent Member and is not affiliated with the Restricted Transaction at issue) shall determine that
such interest does not create a disabling conflict) and (ii) if the Member believes that, because of an actual or potential conflict
of interest relating to a Restricted Transaction, it would be inappropriate or inadvisable for the Member to receive any confidential
information related to such Restricted Transaction, the Member shall recuse himself from any consideration of such Restricted Transaction.

 

2.          Representations
and Warranties.

 

The Member, by its execution of an Advisory
Committee Member Acknowledgement and Agreement (the “Acknowledgment and Agreement”), will be deemed to represent
and warrant that the Member has the Requisite Experience (as set forth in the Advisory Committee Guidelines).

 

If the representations and warranties set
forth in this Paragraph 2 shall at any time fail to be true and correct, the Member shall promptly notify the Issuer and the Collateral
Manager of that fact and shall immediately resign from the Advisory Committee.

 

    	B-2-1

    	 

    

 

3.          Exculpation
and Indemnification.

 

(a)          The
Member shall not be liable to the Issuer, the Co-Issuer, any holder of the Notes, any holder of the Preferred Shares any holder
of ordinary shares of the Issuer or the Collateral Manager (i) for any losses incurred as a result of the actions taken or omitted
to be taken by the Member pursuant to the provisions of this Exhibit B-2 or the Advisory Committee Guidelines, except that the
Member may be so liable to the extent such losses are the result of acts or omissions constituting willful misconduct, fraud or
gross negligence by the Member in the performance of its obligations hereunder or under the Advisory Committee Guidelines or (ii)
for the acts or omissions of any other member of the Advisory Committee.

 

(b)          The
Issuer shall indemnify the Member for, and hold the Member harmless against, any loss, liability or expense (including without
limitation reasonable attorneys’ fees and expenses) incurred arising out of or in connection with the Member’s service
as a member of the Advisory Committee, including the costs and expenses of defense against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder (collectively, “Losses”); provided,
however, that the Issuer shall not indemnify the Member for any Losses incurred as a result of acts or omissions constituting
willful misconduct, fraud or gross negligence by the Member in the performance of its obligations hereunder or under the Advisory
Committee Guidelines.

 

(c)          If
any action shall be instituted involving the Member for which indemnification hereunder may be applicable, such Member shall promptly
notify the Issuer and the Collateral Manager in writing and the Issuer shall have the right to retain counsel reasonably satisfactory
to the Issuer and the Collateral Manager to represent the Member and any others the Issuer may designate in such proceeding and
shall pay the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, the Member
shall have the right to retain individual counsel, but the fees and expenses of such counsel shall be at the expense of the Member
unless (i) the Issuer and the Member shall have agreed to the retention of such counsel or (ii) the named parties to any such proceeding
(including any impleaded parties) include the Member and the Issuer and representation of all such parties by the same counsel
would be inappropriate due to actual or potential differing interests between them. It is understood that the Issuer shall not,
in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more
than one separate firm (in addition to any local counsel) for the Member and any other members of the Advisory Committee, and that
all such reasonable fees and expenses shall be reimbursed as they are incurred. The Issuer shall not be liable for any settlement
of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the
plaintiff, the Issuer agrees, subject to the limitations noted herein, to indemnify the Member from and against any loss or liability
by reason of such settlement or judgment. The Issuer shall not, without the prior written consent of the Member, effect any settlement
of any pending or threatened proceeding in respect of which the Member is or is likely to have been a party, unless such settlement
includes an unconditional release of the Member from all liability on claims that are the subject matter of such proceeding. Notwithstanding
the foregoing, if any person shall pay the Member any amount of indemnification pursuant to this Paragraph 3, such person shall
succeed to the rights of the Issuer, to the exclusion of the Issuer, set forth in this Paragraph 3(c) (including, but not limited
to, the right of the Issuer to retain counsel to represent the Member in any related proceeding and to effect any settlement of
any related pending or threatened proceeding).

 

    	B-2-2

    	 

    

 

4.          Notices.

 

All notices, requests, consents, approvals
and other communications required or permitted to be given or delivered hereunder shall be in writing (which shall include notice
by telecopy or like transmission) and shall be deemed to have been given when delivered personally against receipt, upon receipt
of a transmitted confirmation if sent by telecopy or like transmission, or on the next business day when sent by overnight courier
or similar service, if addressed to the respective parties as follows:

 

If to the Issuer, to:

 

Gramercy Real Estate CDO 2006-1, Ltd.

 

c/o Maples Finance Limited

Queensgate House

P.O. Box 1093 GT

South Church Street

George Town

Grand Cayman, Cayman Islands

Telephone:  +1 (345) 945-7099

Fax:             +1 (345) 945-7100

Attention:    The Directors

 

with a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Charles Spetka

Facsimile: (301) 255-4874

 

with
a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Legal Department

Facsimile: (301) 255-4874

 

    	B-2-3

    	 

    

 

If to the Member, to the address set forth
on the Acknowledgement and Agreement, or to such other address or telephone number as either party shall have specified by
notice in writing to the other party; provided, however, that any such notice of change of address or facsimile number shall be
effective only upon receipt.

 

5.          Monthly
Reports.

 

The Issuer shall provide or cause to be
provided to the Member a copy of each Monthly Report (as defined in the Indenture), substantially and contemporaneously with its
delivery to the Rating Agencies (as defined in the Indenture) under the Indenture.

 

6.          Term;
Termination.

 

(a)          The
Member’s term as a Member of the Advisory Committee (the “Term”) shall commence on the date of its execution
of the Acknowledgement and Agreement and shall continue until the earlier of: (i) the liquidation and winding-up of the Issuer;
(ii) the payment in full of all Notes; (iii) the death of the Member; and (iv) the effective date of any resignation or removal
of the Member as an Affiliated Member of the Advisory Committee as provided in this Paragraph 6.

 

(b)          The
Member shall have the right to resign as a member of the Advisory Committee at any time upon 10 days’ prior written notice
to the Issuer, except that any resignation pursuant to Paragraph 2 shall be effective immediately. The Collateral Manager shall
have the right to appoint a Member to replace any Member that resigns.

 

(c)          The
holders of 662⁄3%, by outstanding principal amount, of each Class of Notes voting as a separate Class (excluding any Notes
held by the Collateral Manager, any of its Affiliates or any funds (other than the Issuer) managed by the Collateral Manager or
its Affiliates) shall have the right to remove the Member for “cause.” For this purpose, “cause” shall
mean: (i) the Member’s breach of any material provisions hereof and its failure to cure such breach within ninety (90) days
after the first to occur of (x) notice of such failure is given to the Member and (y) the Member has actual knowledge of such breach;
or (ii) an act by the Member that constitutes fraud or criminal activity in the performance of its obligations hereunder or the
Member is convicted of a felony offense or other crime involving an investment or investment-related business, fraud, false statements
or omissions, wrongful taking of property, bribery, forgery, counterfeiting or extortion, in a court of competent jurisdiction
(including the entry of a guilty or nolo contendere plea). Any replacement Affiliated Member shall be appointed by the Collateral
Manager.

 

(d)          The
Collateral Manager will have the right to remove any Affiliated Member at any time in its sole discretion (with or without cause),
and such removal will not be subject to the appointment of any successor Affiliated Member.

 

If the Member’s Term is terminated
pursuant to this Paragraph 6, such termination shall be without any further liability or obligation of either party to the other,
except that any liability or obligation of either party under Paragraph 3 shall survive the termination of such Member.

 

    	B-2-4

    	 

    

 

7.          Limited
Recourse.

 

Notwithstanding any other provision hereof,
the Member acknowledges and agrees that he shall have recourse only to the Assets in respect of any claim, action, demand or right
arising in respect of, or against, the Issuer and following realization of the Assets, any claims of the Member against the Issuer
shall be extinguished and shall not thereafter revive. Notwithstanding any other provision hereof or in the Indenture, no member
of the Advisory Committee or any Affiliate thereof shall be personally liable to the Member for any amounts payable, or performance
due, by the Issuer hereunder. This provision shall survive termination of the Term.

 

8.          Non-Petition.

 

The Member agrees that, before the date
that is one year and one day, or if longer, the expiration of the then applicable preference period plus one day, after the payment
in full of all Notes the Member shall not acquiesce, petition, join any other Person in any petition or otherwise invoke or cause
any other Person to invoke the process of any governmental authority for the purpose of commencing or sustaining a case against
the Issuer under any federal or state bankruptcy, insolvency or similar law of any jurisdiction or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the Issuer or any substantial part of its property or ordering
the winding-up or liquidation of the affairs of the Issuer. The Member agrees that the obligations of the Issuer to the Member
are solely the corporate obligations of the Issuer and that the Member will not have recourse to any of the directors, officers,
employees, shareholders or affiliates of the Issuer with respect to any claims, losses, damages, liabilities, indemnities or other
obligations in connection with any transaction contemplated hereby or in connection herewith. This provision shall survive termination
of the Term.

 

9.          Amendments.

 

The provisions of this Exhibit B-2 may
be amended only by an instrument in writing signed by the Issuer and the Member and consented to by the Collateral Manager.

 

10.         Third-Parties.

 

Nothing herein, expressed or implied, shall
give to any person, other than the Issuer, the Member and the Collateral Manager, any benefit or any legal or equitable right,
remedy or claim hereunder.

 

11.         Third
Party Beneficiary.

 

Each of the Issuer and the Member agrees
that the Collateral Manager is, and that it is intended that the Collateral Manager be afforded all the benefits of, an express
third-party beneficiary in respect of the provisions hereof.

 

    	B-2-5

    	 

    

 

 

AMENDED AND RESTATED COLLATERAL MANAGEMENT
AGREEMENT

 

This Amended and Restated
Collateral Management Agreement, dated as of [●], 2013 (this “Agreement”), is entered into by and between
GRAMERCY REAL ESTATE CDO 2007-1, LTD., an exempted company incorporated with limited liability under the laws of the Cayman Islands
(together with successors and assigns permitted hereunder, the “Issuer”), and CWCAPITAL INVESTMENTS LLC, a limited
liability company organized under the laws of the Commonwealth of Massachusetts (“CWCI” and together with its
successors and assigns, the “Collateral Manager”). Capitalized terms used herein but not otherwise defined herein
shall have the respective meanings ascribed thereto in the Indenture, dated as of August 8, 2007 (as amended to the date hereof,
the “Indenture”), by and among the Issuer, Gramercy Real Estate CDO 2007-1 LLC, as co-issuer (the “Co-Issuer”),
Wells Fargo Bank, National Association, as trustee (in such capacity, the “Trustee”), paying agent, calculation
agent, transfer agent, custodial securities intermediary, backup advancing agent and notes registrar, and CWCapital Investments
LLC, as advancing agent.

 

WHEREAS, the Issuer appointed
GKK Manager LLC (“GKKM”) as the Collateral Manager pursuant to a Collateral Management Agreement dated as of
August 8, 2007 (the “Original CMA”) to perform certain duties and services with respect to the Assets;

 

WHEREAS, pursuant to
an Assignment and Assumption Agreement, dated as of the date hereof (the “A&A Agreement”), GKKM has assigned
to CWCI all of its rights and obligations as Collateral Manager under the Original CMA, with effect as of the date hereof, pursuant
to the terms of the A&A Agreement;

 

WHEREAS, the Collateral
Manager and the Issuer desire to amend and restate the Agreement to make certain limited changes;

 

WHEREAS, Rating Agency
Condition with respect to each Rating Agency has been satisfied in connection with CWCI becoming the Collateral Manager;

 

WHEREAS, each of the
Issuer and the Collateral Manager wishes to enter into this Agreement pursuant to which the Collateral Manager agrees to perform,
on behalf of the Issuer, on and after the date hereof, certain duties and services with respect to the Assets in the manner and
on the terms set forth herein, and the Collateral Manager has the capacity to provide the services required hereby and is prepared
to perform such services upon the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements set forth herein, the parties hereto hereby agree to amend and restate the Original CMA
and agree as follows:

 

1.          Management
Services. The Collateral Manager is hereby appointed as the Issuer’s exclusive agent to provide the Issuer with certain
services in relation to the Assets specified herein and in the Indenture. Accordingly, the Collateral Manager accepts such appointment
and shall provide the Issuer with the following services (in accordance with all applicable requirements of the Indenture, the
CDO Servicing Agreement and this Agreement, including, without limitation, the Collateral Manager Servicing Standard, as applicable,
and without regard to any conflicts of interest):

 

    	 

    	 

    

 

(a)         determining
specific Collateral Debt Securities to be purchased or Collateral Debt Securities to be sold and the timing of such purchases and
sales, in each case, as permitted by the Indenture;

 

(b)         determining
specific Eligible Investments to be purchased or sold and the timing of such purchases and sales, in each case, as permitted by
the Indenture;

 

(c)         effecting
or directing the purchase of Collateral Debt Securities and Eligible Investments, effecting or directing the sale of Collateral
Debt Securities and Eligible Investments, and directing the investment or reinvestment of proceeds therefrom, in each case as permitted
by the Indenture;

 

(d)         negotiating
with the issuers of Collateral Debt Securities as to proposed modifications or waivers of the documentation governing such Collateral
Debt Securities as permitted under the Indenture;

 

(e)         subject
to the applicable provisions of the Asset Servicing Agreement, taking action, or advising the Trustee with respect to actions to
be taken, with respect to the Issuer’s exercise of any rights (including, without limitation, voting rights, tender rights
and rights arising in connection with the bankruptcy or insolvency of an issuer or the consensual or non-judicial restructuring
of the debt or equity of an issuer) or remedies in connection with the Collateral Debt Securities and Eligible Investments, as
provided in the related Underlying Instruments, including in connection with an Offer or a default, and participating in the committees
or other groups formed by creditors of an issuer, or taking any other action with respect to Collateral Debt Securities and Eligible
Investments which the Collateral Manager determines in the reasonable exercise of the Collateral Manager’s business judgment
is in the best interests of the Noteholders in accordance with, and as permitted by, the terms of the Indenture, any servicing
agreement and this Agreement;

 

(f)          consulting
with the Rating Agencies at such times as may be reasonably requested by the Rating Agencies and providing the Rating Agencies
with any information reasonably requested in connection with the Rating Agencies’ maintenance of their ratings of the Notes
and their assigning credit indicators to prospective Collateral Debt Securities, if applicable;

 

(g)         determining
whether specific Collateral Debt Securities are Credit Risk Securities, Defaulted Securities, Written Down Securities or Spread
Appreciated Securities and determining whether such Collateral Debt Securities, and any other Collateral Debt Securities that are
permitted or required to be sold pursuant to the Indenture, should be sold, and directing the Trustee to effect a disposition of
any such Collateral Debt Securities, subject to, and in accordance with the terms and conditions of the Indenture;

 

    	- 2 -

    	 

    

 

(h)         (i)
monitoring the Assets on an ongoing basis and (ii) providing or causing to be provided to the Issuer and/or the other applicable
parties specified in the Indenture all reports, schedules and certificates which relate to the Assets and which the Issuer is required
to prepare and deliver under the Indenture, which are not prepared and delivered by the Trustee, on behalf of the Issuer, under
the Indenture, in the form and containing all information required thereby (including, in the case of the Monthly Reports and the
Notes Valuation Reports, providing the information to the Trustee as specified in Sections 10.9(c) and 10.9(e) of the Indenture
in sufficient time for the Trustee to prepare the Monthly Report and the Notes Valuation Report) and, if applicable, in sufficient
time for the Issuer to review such required reports and schedules and to deliver them to the parties entitled thereto under the
Indenture;

 

(i)          managing
the Issuer’s Collateral Debt Securities and Eligible Investments in accordance with the Indenture, including the limitations
relating to the Eligibility Criteria, the Coverage Tests, the Collateral Quality Tests, the Replenishment Criteria and the other
requirements of the Indenture and this Agreement, and, subject to the Asset Servicing Agreement, taking any action that the Collateral
Manager deems appropriate and consistent with the Indenture, the Collateral Manager Servicing Standard and the standard of care
set forth herein with respect to any portion of the Assets that does not constitute Collateral Debt Securities or Eligible Investments
as required or permitted by the Indenture;

 

(j)          monitoring
all Hedge Agreements and determining whether and when the Issuer should exercise any rights available under any Hedge Agreement,
and causing the Issuer to enter into additional or replacement Hedge Agreements or terminating (in part or in whole) existing Hedge
Agreements, in each case, in accordance with the Indenture and the terms of such Hedge Agreements;

 

(k)         providing
notification promptly, in writing, to the Trustee and the Issuer upon receiving actual notice that a Collateral Debt Security is
subject to an Offer or has become a Defaulted Security, a Written Down Security or a Credit Risk Security;

 

(l)          providing
notification promptly, in writing, to the Trustee and the Issuer upon becoming actually aware of a Default or an Event of Default
under the Indenture;

 

(m)        determining
(subject to the Indenture) whether, in light of the composition of Collateral Debt Securities, general market conditions and other
factors considered pertinent by the Collateral Manager, investments of Replenishment Proceeds in additional Collateral Debt Securities
in the foreseeable future would, at any time during the Replenishment Period, either be impractical or not beneficial to the Issuer
and the Holders of the Preferred Shares;

 

(n)         if
the Collateral Manager elects to amortize the Notes pursuant to and in accordance with Section 9.7 of the Indenture, providing
notification, in writing, to the Trustee, the Issuer, the Co-Issuer, the Class A-2 Note Insurer and each Hedge Counterparty
of (A) such election and (B) the amount of such proceeds that will be used to so amortize the Notes;

 

(o)         taking
reasonable action on behalf of the Issuer to effect any Optional Redemption, any Tax Redemption, any Auction Call Redemption or
any Clean-up Call in accordance with the Indenture;

 

(p)         on
the Stated Maturity of the Notes, or in connection with any Optional Redemption, any Tax Redemption, any Auction Call Redemption
or any Clean-up Call, liquidating any remaining Hedge Agreements in accordance with the terms thereof and the Indenture;

 

    	- 3 -

    	 

    

 

(q)         monitoring
the ratings of the Collateral Debt Securities and the Issuer’s compliance with the covenants by the Issuer in the Indenture;

 

(r)          assisting
the Issuer in (i) taking any action in order to effect and/or maintain the listing of any of the Notes on the Irish Stock Exchange,
(ii) obtaining any waiver from the Irish Stock Exchange or (iii) providing other information related to the Issuer that is reasonably
available to the Collateral Manager, in each case, when specifically requested by the Irish Stock Exchange;

 

(s)         complying
with such other duties and responsibilities as may be specifically required of the Collateral Manager by the Indenture or this
Agreement;

 

(t)          complying
in all material respects with the Investment Advisers Act of 1940, as amended (the “Advisers Act”), with respect
to the Issuer;

 

(u)         in
order to render the Securities eligible for resale pursuant to Rule 144A under the Securities Act, while any of such Securities
remain outstanding, making available, upon request, to any Holder or prospective purchaser of such Securities, additional information
regarding the Issuer and the Assets if such information is reasonably available to the Collateral Manager and constitutes Rule 144A
Information required to be furnished by the Issuer pursuant to Section 7.13 of the Indenture, unless the Issuer furnishes
information to the United States Securities and Exchange Commission (the “Commission”) pursuant to Section 13
or Section 15(d) of the Exchange Act;

 

(v)         upon
reasonable request, assisting the Trustee or the Issuer with respect to such actions to be taken after the Closing Date, as is
necessary to maintain the clearing and transfer of the Notes through DTC and Euroclear;

 

(w)        in
accordance with the Collateral Manager Servicing Standard, enforcing the rights of the Issuer as holder of the Collateral Debt
Securities, including, without limitation, taking such action as is necessary to enforce the Issuer’s rights with respect
to remedies related to breaches of representations, warranties or covenants in the Underlying Instruments for the benefit of the
Issuer;

 

(x)         determining
(for purposes of the Collateral Quality Tests) whether Underlying Mortgaged Properties located in the State of California are located
in the “southern region” or the “northern region” of the State of California;

 

(y)        designating
Eligible Investments for sale at auction in connection with an Auction Call Redemption; and

 

(z)         electing
the applicable scenario to use in connection with the Moody’s Test Matrix, the S&P Test Matrix and the Fitch Test Matrix.

 

    	- 4 -

    	 

    

 

In furtherance of the
foregoing, the Issuer hereby appoints the Collateral Manager the Issuer’s true and lawful agent and attorney-in-fact, with
full power of substitution and full authority in the Issuer’s name, place and stead and without any necessary further approval
of the Issuer, in connection with the performance of the Collateral Manager’s duties provided for in this Agreement, including
the following powers: (i) in accordance with the terms and conditions of the Indenture and this Agreement, to buy, sell, exchange,
convert and otherwise trade Collateral Debt Securities and Eligible Investments and (ii) to execute (under hand, under seal or
as a deed) and deliver all necessary and appropriate documents and instruments on behalf of the Issuer to the extent necessary
or appropriate to perform the services referred to in (a) through (y) above of this Section ‎1 and under the Indenture.
The foregoing power of attorney is a continuing power, coupled with an interest, and shall remain in full force and effect until
revoked by the Issuer in writing by virtue of the termination of this Agreement pursuant to Section ‎12 hereof or an assignment
of this Agreement pursuant to Section ‎17 hereof; provided that any such revocation shall not affect any transaction
initiated prior to such revocation. Nevertheless, if so requested by the Collateral Manager, a purchaser of a Collateral Debt Security
or Eligible Investment or a Hedge Counterparty, the Issuer shall ratify and confirm any such sale or other disposition by executing
and delivering to the Collateral Manager, such purchaser or such Hedge Counterparty all proper bills of sale, assignments, releases
and other instruments as may be designated in any such request.

 

The Collateral Manager
does not hereby guarantee that sufficient funds will be available on each Payment Date to satisfy any such payment obligations.
The Collateral Manager shall perform its obligations hereunder and under the Indenture with reasonable care and in good faith,
using a degree of skill and attention no less than that which it (a) exercises with respect to comparable assets that it manages
for itself and (b) exercises with respect to comparable assets that it manages for others, and in a manner consistent with the
practices and procedures then in effect followed by reasonable and prudent institutional managers of national standing relating
to assets of the nature and character of the Assets, except as expressly provided in this Agreement or in the Indenture. In addition,
the Collateral Manager shall use commercially reasonable efforts to ensure that directions to the Trustee with respect to the purchase
of Eligible Investments are made by the Collateral Manager only if, in the Collateral Manager’s commercially reasonable judgment
at the time of such direction, payment at settlement in respect of any such purchase could be made without any breach or violation
of, or default under, the terms of the Indenture or this Agreement. The Collateral Manager shall comply with and perform all the
duties and functions that have been specifically delegated to the Collateral Manager under the Indenture. The Collateral Manager
shall be bound to follow any amendment, supplement or modification to the Indenture of which it has received written notice at
least ten (10) Business Days prior to the execution and delivery thereof by the parties thereto; provided, however,
that, with respect to any amendment, supplement, modification or waiver to the Indenture which may affect the Collateral Manager,
the Collateral Manager shall not be bound thereby (and the Issuer agrees that it shall not permit any such amendment, supplement,
modification or waiver to become effective) unless the Collateral Manager has been given prior written notice thereof and gives
its written consent thereto (which consent shall not be unreasonably withheld) to the Trustee and the Issuer prior to the effectiveness
thereof.

 

The Collateral Manager
shall take all actions reasonably requested by the Trustee to facilitate the perfection of the Trustee’s security interest
in the Assets pursuant to the Indenture.

 

    	- 5 -

    	 

    

 

Notwithstanding anything
contained herein to the contrary, (i) any cash advance the Collateral Manager makes with respect to cure payments and actions taken
in connection therewith and (ii) any voting, consent, consultation or control rights exercised by the Collateral Manager with respect
to a Collateral Debt Security that is a B Note, Participation or junior interest in a Mezzanine Loan, in each case, shall be subject
to the applicable provisions of the Asset Servicing Agreement.

 

2.          Delegation
of Duties. The Collateral Manager may delegate to third parties (including its Affiliates), which it shall select with reasonable
care, and employ third parties to execute any or all of the duties assigned to the Collateral Manager hereunder; provided,
however, that (i) the Collateral Manager shall not be relieved of any of its duties or obligations hereunder as a result
of such delegation to or employment of third parties, (ii) the Collateral Manager shall be solely responsible for the fees and
expenses payable to any such third party, except as set forth in Section ‎6 hereof and (iii) such delegation does
not constitute an “assignment” under the Advisers Act.

 

3.          Purchase
and Sale Transactions; Brokerage.

 

(a)        The
Collateral Manager shall seek to obtain the best overall terms for all orders placed with respect to the Assets, considering all
reasonable circumstances, including, if applicable, the conditions or terms of early redemption of the Securities, it being understood
that the Collateral Manager has no obligation to obtain the lowest prices available. Subject to the foregoing objective, the Collateral
Manager may take into consideration all factors the Collateral Manager reasonably determines to be relevant, including, without
limitation, timing, general relevant trends and research and other brokerage services and support equipment and services related
thereto furnished to the Collateral Manager or its Affiliates by brokers and dealers in compliance with Section 28(e) of the
Exchange Act or, if Section 28(e) of the Exchange Act is not applicable, in accordance with the provisions set forth herein.
Such services may be used in connection with the other advisory activities or investment operations of the Collateral Manager and/or
its Affiliates. In addition, the Collateral Manager may take into account available prices, rates of brokerage commissions and
size and difficulty of the order, in addition to other relevant factors (such as, without limitation, execution capabilities, reliability
(based on total trading rather than individual trading), integrity, financial condition in general, execution and operational capabilities
of competing brokers and/or dealers, and the value of the ongoing relationship with such brokers and/or dealers), without having
to demonstrate that such factors are of a direct benefit to the Issuer in any specific transaction. The Issuer acknowledges and
agrees that (i) the determination by the Collateral Manager of any benefit to the Issuer is subjective and represents the Collateral
Manager’s evaluation at the time that the Issuer will be benefited by relatively better purchase or sales prices, lower brokerage
commissions and beneficial timing of transactions or a combination of any of these and/or other factors and (ii) the Collateral
Manager shall be fully protected with respect to any such determination to the extent the Collateral Manager acts in good faith,
and in accordance with the Collateral Manager Servicing Standard and in accordance with the standard of care set forth in Section ‎1
hereof, and without gross negligence, willful misconduct or reckless disregard of the obligations of the Issuer hereunder or under
the terms of the Indenture.

 

    	- 6 -

    	 

    

 

The Collateral Manager
may aggregate sales and purchase orders of securities placed with respect to the Assets with similar orders being made simultaneously
for other accounts managed by the Collateral Manager or with accounts of the Affiliates of the Collateral Manager if, in the Collateral
Manager’s sole judgment, exercised in good faith, such aggregation will not have an adverse effect on the Issuer. When any
such aggregate sales or purchase orders occur, the objective of the Collateral Manager (and any of its Affiliates involved in such
transactions) shall be to allocate the executions among the accounts in a manner fair and equitable to all such accounts and generally
to seek to allocate securities available for investment to all such accounts pro rata in proportion to the optimum amount
sought by the Collateral Manager for each respective account. In connection with the foregoing, the objective of the Collateral
Manager shall be to allocate investment opportunities and the purchases or sales of instruments in a manner believed by the Collateral
Manager, in good faith, taking into account the Collateral Manager’s Servicing Standard and in accordance with the standard
of care set forth in Section ‎1 hereof, to be fair and equitable.

 

In connection with any
purchase of a portfolio of assets other than securities, the objective of the Collateral Manager shall be to allocate such assets
(and the aggregate purchase price paid for such assets) among the Collateral Manager’s clients (including the Issuer) in
a manner believed by the Collateral Manager to be fair and equitable. The Issuer acknowledges and agrees that the Collateral Manager
shall be fully protected with respect to any such allocation to the extent the Collateral Manager acts in good faith, taking into
account the Collateral Manager’s Servicing Standard and in accordance with the standard of care set forth in Section ‎1
hereof, and without gross negligence, willful misconduct or reckless disregard of the obligations of the Issuer hereunder or under
the terms of the Indenture.

 

All purchases and sales
of Eligible Investments and Collateral Debt Securities by the Collateral Manager on behalf of the Issuer shall be conducted in
compliance with all applicable laws (including, without limitation, Section 206(3) of the Advisers Act) and the terms of the
Indenture. After (and excluding) the Closing Date, the Collateral Manager shall cause any purchase or sale of any Collateral Debt
Security or Eligible Investment to be conducted on an arm’s-length basis or, if applicable, in compliance with Section ‎3(b)
hereof.

 

(b)          The
Collateral Manager, subject to and in accordance with the terms and conditions of the Indenture, may effect direct trades between
the Issuer and the Collateral Manager or any of its Affiliates acting as principal or agent (any such transaction, a “Related
Party Trade”): provided, however, that a Related Party Trade after (and excluding) the Closing Date, other
than Permitted Cash Purchases, sales of property or securities in accordance with the Origination Agreement and sales of Assets
pursuant to an auction in connection with an Auction Call Redemption or in connection with a redemption of the Notes pursuant to
Article 9 of the Indenture, may be effected only (i) upon disclosure to and with the prior consent of an advisory committee
containing at least one member independent from the Collateral Manager (whose affirmative vote shall be required to grant such
consent) acting as a surrogate for, and in the best interest of, the holders of the Securities that has been appointed from time
to time as needed by the Issuer or by the Collateral Manager following the resignation of any member (the “Advisory Committee”)
and based on the Advisory Committee’s determination that such transaction is on terms substantially as favorable to the Issuer
as would be the case if a such transaction were effected with Persons not so affiliated with the Collateral Manager or any of its
Affiliates, (ii) subject to a requirement that the purchase price in respect of any Collateral Debt Security acquired by the
Issuer from a Seller pursuant to such a direct trade may not exceed the Principal Balance thereof, plus accrued and unpaid interest
thereon (or, in the case of a Preferred Equity Security, all accrued and unpaid dividends or other distributions not attributable
to the return of capital by its governing documents) and (iii) if such purchase or sale, as the case may be, is in accordance with
the terms of the Indenture. The Advisory Committee, if any, shall be formed subject to the Advisory Committee Guidelines attached
hereto as Exhibit A (the “Advisory Committee Guidelines”). The Issuer consents and agrees that, if any
transaction relating to the Issuer, including any transaction effected between the Issuer and the Collateral Manager or its Affiliates,
shall be subject to the disclosure and consent requirements of Section 206(3) of the Advisers Act, such requirements shall
be satisfied with respect to the Issuer and all Holders of the Securities if disclosure shall be given to, and consent obtained
from, the Advisory Committee. For avoidance of doubt, it is hereby understood and agreed by the parties hereto that no disclosure
to, or consent of, the Advisory Committee shall be required with respect to Permitted Cash Purchases, sales of property or securities
in accordance with the Origination Agreement and sales of Assets pursuant to an auction in connection with an Auction Call Redemption
or in connection with a redemption of the Notes pursuant to Article 9 of the Indenture. Notwithstanding the foregoing, to
the extent such provisions are determined not to satisfy the requirements of the Advisers Act, the Collateral Manager shall take
such actions in connection with any Related Party Trade as will satisfy the requirements of Section 206(3) of the Advisers
Act.

 

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4.          Representations
and Warranties of the Issuer. The Issuer represents and warrants to the Collateral Manager that:

 

(a)        the
Issuer (i) has been duly incorporated and registered as an exempted company and is validly existing under the laws of the Cayman
Islands, (ii) has full power and authority to own the Issuer’s assets and the securities proposed to be owned by the Issuer
and included among the Assets and to transact the business for which the Issuer was incorporated and (iii) is duly qualified under
the laws of each jurisdiction where the Issuer’s ownership or lease of property or the conduct of the Issuer’s business
requires or the performance of the Issuer’s obligations under this Agreement and the Indenture would require such qualification,
except for failures to be so qualified that would not in the aggregate have a material adverse effect on the business, operations,
assets or financial condition of the Issuer or the ability of the Issuer to perform its obligations under, or on the validity or
enforceability of, this Agreement and the Indenture; the Issuer has full power and authority to execute, deliver and perform the
Issuer’s obligations hereunder and thereunder; this Agreement and the Indenture have been duly authorized, executed and delivered
by the Issuer and constitute legal, valid and binding agreements enforceable against the Issuer in accordance with their terms
except that the enforceability thereof may be subject to (a) bankruptcy, insolvency, reorganization, moratorium, receivership,
conservatorship or other similar laws now or hereafter in effect relating to creditors’ rights and (b) general principles
of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law);

 

(b)        no
consent, approval, authorization or order of or declaration or filing with any government, governmental instrumentality or court
or other Person is required for the performance by the Issuer of its duties hereunder or under the Indenture, except those that
may be required under state securities or “blue sky” laws or the applicable laws of any jurisdiction outside of the
United States, and such as have been duly made or obtained;

 

    	- 8 -

    	 

    

 

(c)        neither
the execution, delivery and performance of this Agreement or the Indenture nor the performance by the Issuer of its duties hereunder
or under the Indenture (i) conflicts with or will violate or result in a default under the Issuer’s Governing Documents
or any material contract or agreement to which the Issuer is a party or by which it or its assets may be bound, or any law, decree,
order, rule, or regulation applicable to the Issuer of any court or regulatory, administrative or governmental agency, body or
authority or arbitrator having jurisdiction over the Issuer or its properties, or (other than as contemplated or permitted by the
Indenture) will result in a lien on any of the property of the Issuer and (ii) would have a material adverse effect upon the ability
of the Issuer to perform its duties under this Agreement or the Indenture;

 

(d)        the
Issuer and its Affiliates are not in violation of any federal, state or Cayman Islands laws or regulations, and there is no charge,
investigation, action, suit or proceeding before or by any court or regulatory agency pending or, to the best knowledge of the
Issuer, threatened that, in any case, would have a material adverse effect upon the ability of the Issuer to perform its duties
under this Agreement or the Indenture;

 

(e)        the
Issuer is not an “investment company” under the Investment Company Act; and

 

(f)         the
assets of the Issuer do not and will not at any time constitute the assets of any plan subject to the fiduciary responsibility
provisions of ERISA or of any plan within the meaning of Section 4975(e)(1) of the Code.

 

5.          Representations
and Warranties of the Collateral Manager. The Collateral Manager represents and warrants to the Issuer that:

 

(a)        the
Collateral Manager (i) has been duly organized, is validly existing and is in good standing under the laws of the Commonwealth
of Massachusetts, (ii) has full power and authority to own the Collateral Manager’s assets and to transact the business in
which it is currently engaged and (iii) is duly qualified and in good standing under the laws of each jurisdiction where the Collateral
Manager’s ownership or lease of property or the conduct of the Collateral Manager’s business requires, or the performance
of this Agreement and the Indenture would require, such qualification, except for failures to be so qualified that would not in
the aggregate have a material adverse effect on the business, operations, assets or financial condition of the Collateral Manager
or the ability of the Collateral Manager to perform its obligations under, or on the validity or enforceability of, this Agreement
and the provisions of the Indenture applicable to the Collateral Manager; the Collateral Manager has full power and authority to
execute, deliver and perform this Agreement and the Collateral Manager’s obligations hereunder and the provisions of the
Indenture applicable to the Collateral Manager; this Agreement has been duly authorized, executed and delivered by the Collateral
Manager and constitutes a legal, valid and binding agreement of the Collateral Manager, enforceable against it in accordance with
the terms hereof, except that the enforceability hereof may be subject to (a) bankruptcy, insolvency, reorganization, moratorium
or other similar laws now or hereafter in effect relating to creditors’ rights and (b) general principles of equity
(regardless of whether such enforcement is considered in a proceeding in equity or at law);

 

    	- 9 -

    	 

    

 

(b)        neither
the Collateral Manager nor any of its Affiliates is in violation of any federal or state securities law or regulation promulgated
thereunder that would have a material adverse effect upon the ability of the Collateral Manager to perform its duties under this
Agreement or the Indenture, and there is no charge, investigation, action, suit or proceeding before or by any court or regulatory
agency pending or, to the best knowledge of the Collateral Manager, threatened which could reasonably be expected to have a material
adverse effect upon the ability of the Collateral Manager to perform its duties under this Agreement or the Indenture;

 

(c)        neither
the execution and delivery of this Agreement nor the performance by the Collateral Manager of its duties hereunder or under the
Indenture conflicts with or will violate or result in a breach or violation of any of the terms or provisions of, or constitutes
a default under: (i) the limited liability company agreement of the Collateral Manager, (ii) the terms of any indenture, contract,
operating agreement, lease, mortgage, deed of trust, note agreement or other evidence of indebtedness or other agreement, obligation,
condition, covenant or instrument to which the Collateral Manager is a party or by which the Collateral Manager is bound, (iii)
any law, decree, order, rule or regulation applicable to the Collateral Manager of any court or regulatory, administrative or governmental
agency, body or authority or arbitrator having jurisdiction over the Collateral Manager or its properties, and which would have,
in the case of any of (i), (ii) or (iii) of this subsection (c), either individually or in the aggregate, a material adverse effect
on the business, operations, assets or financial condition of the Collateral Manager or the ability of the Collateral Manager to
perform its obligations under this Agreement or the Indenture;

 

(d)        no
consent, approval, authorization or order of or declaration or filing with any government, governmental instrumentality or court
or other Person is required for the performance by the Collateral Manager of its duties hereunder and under the Indenture, except
such as have been duly made or obtained; and

 

(e)        the
Collateral Manager is a registered investment adviser under the Advisers Act.

 

6.          Expenses.
Both parties hereto acknowledge and agree that a portion of the gross proceeds received from the issuance and sale of the Securities
will be used to pay certain organizational and structuring fees and expenses of the Co-Issuers, including the legal fees and expenses
of counsel to the Collateral Manager. The Collateral Manager shall pay all expenses and costs incurred by it in the course of performing
its obligations under this Agreement; provided, however, that the Collateral Manager shall not be liable for, and
(subject to the Priority of Payments set forth in the Indenture and to the extent funds are available therefor) the Issuer shall
be responsible for the payment of, reasonable expenses and costs (including, without limitation, reasonable travel expenses) of
(i) independent accountants, consultants and other advisers retained by the Issuer or by the Collateral Manager on behalf of the
Issuer in connection with the services provided by the Collateral Manager hereunder, (ii) legal advisers retained by the Issuer
or by the Collateral Manager on behalf of the Issuer in connection with the services provided by the Collateral Manager hereunder
and (iii) the Collateral Manager (A) to the extent of reasonable expenses disbursed or allocated in valuing the Assets, disbursed
or allocated software and technology expenditures relating to the monitoring and administration of the Assets and any other reasonable
expenses incurred by the Collateral Manager in connection with matters arising in the performance by the Collateral Manager of
its duties under this Agreement and (B) for an allocable share of the cost of certain credit databases used by the Collateral Manager
in providing services to the Issuer under this Agreement.

 

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7.          Fees.
As compensation for the performance of its obligations as Collateral Manager hereunder and under the Indenture, the Collateral
Manager shall be entitled to receive (i) a fee, payable quarterly in arrears on each Payment Date in accordance with the Priority
of Payments, equal to (a) 0.05% per annum of the amount described in clause (i) of the definition of Net Outstanding Portfolio
Balance plus (b) 0.10% per annum of the sum of the amounts described in clauses (ii) through (iv) of the definition of Net Outstanding
Portfolio Balance (the “Senior Collateral Management Fee”) and (ii) an additional fee, payable quarterly in
arrears on each Payment Date in accordance with the Priority of Payments, equal to 0.15% per annum of the sum of the amounts described
in clauses (ii) through (iv) of the definition of Net Outstanding Portfolio Balance (the “Subordinate Collateral Management
Fee” and, together with the Senior Collateral Management Fee, the “Collateral Management Fee”). Each
Collateral Management Fee shall be calculated for each Interest Accrual Period assuming a 360-day year with twelve (12) thirty-day
months. The Collateral Management Fee shall be calculated based on the Net Outstanding Portfolio Balance as of the first day of
the applicable Interest Accrual Period. If on any Payment Date there are insufficient funds to pay such fees (and/or any other
amounts due and payable to the Collateral Manager) in full, in accordance with the Priority of Payments, the amount not so paid
shall be deferred and such amounts shall be payable on such later Payment Date on which funds are available therefor as provided
in the Priority of Payments set forth in the Indenture. Any accrued and unpaid Senior Collateral Management Fee that is deferred
due to the operation of the Priority of Payments shall accrue interest at a per annum rate equal to LIBOR in effect for
the applicable Interest Accrual Period computed on an actual 360-day basis. Any accrued and unpaid Subordinate Collateral Management
Fee that is deferred due to the operation of the Priority of Payments shall accrue interest at a per annum rate equal to
LIBOR in effect for the applicable Interest Accrual Period on an actual 360-day basis. Notwithstanding any other provision hereof,
the aggregate amount of all accrued but unpaid Subordinate Collateral Management Fee payable on the final Payment Date or, if earlier,
following the winding up of the Issuer shall be equal to the lesser of (a) the nominal amount thereof and (b) the amount available
for payment under the Priority of Payments. The Collateral Manager hereby agrees not to cause the filing of a petition in bankruptcy
against the Issuer for the nonpayment to the Collateral Manager of any amounts due it hereunder except in accordance with Section ‎18
hereof and, subject to the provisions of Section ‎12, to continue to serve as Collateral Manager. If this Agreement
is terminated pursuant to Section ‎12 hereof or otherwise, the accrued fees payable to the Collateral Manager shall
be prorated for any partial periods between the Payment Dates during which this Agreement was in effect and shall be due and payable
on the first Payment Date following the date of such termination, together with all expenses payable to the Collateral Manager
in accordance with Section ‎6 hereof, and subject to the provisions of the Indenture and the Priority of Payments.

 

8.          Non-Exclusivity.
Nothing herein shall prevent the Collateral Manager or any of its Affiliates or any of their officers or directors from engaging
in any other businesses or providing investment management, advisory or any other types of services to any Persons, including the
Issuer, the Trustee and the Noteholders, to the fullest extent permitted by applicable law; provided, however, that
the Collateral Manager may not take any of the foregoing actions which the Collateral Manager knows or reasonably should know would
require the Issuer or the pool of Assets to register as an “investment company” under the Investment Company Act.

 

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9.          Conflicts
of Interest.

 

(a)        After
(but excluding) the Closing Date and the sales by Affiliates of the Collateral Manager of Collateral Debt Securities to the Issuer
on the Closing Date (and except in the case of Permitted Cash Purchases, sales of property or securities in accordance with the
Origination Agreement and sales of Assets pursuant to an auction in connection with an Auction Call Redemption or in connection
with a redemption of the Notes pursuant to Article 9 of the Indenture), the Collateral Manager shall not cause the Issuer
to enter into any transaction with the Collateral Manager or any of its Affiliates as principal, unless the applicable terms and
conditions set forth in Section ‎1 and Section ‎3(b) are complied with.

 

(b)        The
Collateral Manager shall perform its obligations hereunder in accordance with the requirements of the Advisers Act and the Indenture.
The Issuer acknowledges that the Collateral Manager, its Affiliates and funds or accounts for which the Collateral Manager or its
Affiliates acts as investment adviser may at times own Notes of one or more Classes. After the Closing Date, the Collateral Manager
agrees to provide the Trustee with written notice upon the acquisition or transfer (after, but excluding, the Closing Date) of
any Collateral Manager Securities.

 

(c)        Nothing
herein shall prevent the Collateral Manager or any of its Affiliates or officers and directors of the Collateral Manager from engaging
in other businesses (including financing, purchasing, owning, holding, originating or disposing of any assets or investments),
or from rendering services of any kind to the Issuer and its Affiliates, the Trustee, the Holders or any other Person or entity,
whether or not any of the foregoing may be competitive with the business of the Issuer or the Co-Issuer so long as the Collateral
Manager complies with the standard of care set forth in Section ‎1 hereof. Without prejudice to the generality
of the foregoing, directors, officers, members, partners, employees and agents of the Collateral Manager, Affiliates of the Collateral
Manager, and the Collateral Manager may so long as the Collateral Manager complies with the standard of care set forth in Section ‎1
hereof, subject to the terms and conditions of the Indenture, among other things:

 

(i)         serve
as directors (whether supervisory or managing), officers, employees, partners, members, managers, agents, nominees or signatories
for the Issuer or any Affiliate thereof, or for any obligor in respect of any of the Collateral Debt Securities or Eligible Investments,
or any of their respective Affiliates, except to the extent prohibited by their respective Underlying Instruments, as from time
to time amended; provided that (x) in the reasonable judgment of the Collateral Manager, such activity will not have a material
adverse effect on the ability of the Issuer or the Trustee to enforce its respective rights with respect to any Assets and (y)
nothing in this paragraph shall be deemed to limit the duties of the Collateral Manager set forth in Section ‎1
hereof;

 

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(ii)         perform,
and receive fees for the performance of, services of whatever nature rendered to an obligor in respect of any of the Collateral
Debt Securities or Eligible Investments, including acting as master servicer, sub-servicer or special servicer with respect to
any CMBS Securities or with respect to any commercial mortgage loan constituting or underlying any Collateral Debt Security; provided
that, in the reasonable judgment of the Collateral Manager, such activity will not have a material adverse effect on the ability
of the Issuer or the Trustee to enforce its respective rights with respect to any of the Assets; provided, further,
with respect to such services, the Collateral Manager is not acting as an agent for the Issuer;

 

(iii)        be
retained to provide services unrelated to this Agreement to the Issuer or its Affiliates and be paid therefor;

 

(iv)        be
a secured or unsecured creditor of, or hold an equity interest in, the Issuer, its Affiliates or any obligor of any Collateral
Debt Security or Eligible Investment; provided, however, that the Collateral Manager may not be such a creditor or
hold any of such interests if, in the opinion of counsel to the Issuer, the existence of such interest would require registration
of the Issuer or the Assts as an “investment company” under the Investment Company Act or violate any provisions of
federal or applicable state law or any law, rule or regulation of any governmental body or agency having jurisdiction over the
Issuer;

 

(v)        own
equity in or own or make loans to any issuer of debt securities issued by a real estate investment trust (as defined in Section 856
of the Code or any successor provision) so long as doing so would not cause the Collateral Manager to be in violation of its obligations
under this Agreement or the Indenture;

 

(vi)       make,
hold or sell an investment in an issuer’s securities that may be pari passu, senior or junior in ranking to a Collateral
Debt Security;

 

(vii)      serve
as servicer and serve as special servicer and/or sub-special servicer under any servicing agreement and be paid therefor whether
related to the Issuer or not, and serve as Advancing Agent or back-up Advancing Agent under the Indenture;

 

(viii)     except
as otherwise provided in this Section ‎9, sell any Collateral Debt Security or Eligible Investment to, or purchase
any Collateral Debt Security from, the Issuer while acting in the capacity of principal or agent; and

 

(ix)        subject
to its obligations in Section ‎1 hereof to protect the Holders, serve as a member of any “creditors’
board” with respect to any Defaulted Security, Eligible Investment or with respect to any commercial mortgage loan underlying
or constituting any Collateral Debt Security or the respective borrower for any such commercial mortgage loan.

 

It is understood that
the Collateral Manager and any of its Affiliates may engage in any other business, whether or not any of the foregoing may be competitive
with the business of the Issuer or the Co-Issuer (including financing, purchasing, owning, holding, originating or disposing of
any assets or investments), and furnish investment management and advisory services to others, including Persons that may have
investment policies similar to those followed by the Collateral Manager with respect to the Assets and that may own instruments
of the same class, or of the same type, as the Collateral Debt Securities or other instruments of the issuers of Collateral Debt
Securities and may manage portfolios similar to the Assets. The Collateral Manager and its Affiliates shall be free, in their sole
discretion, to make recommendations to others, or effect transactions on behalf of themselves or for others, which may be the same
as or different from those the Collateral Manager causes the Issuer to effect with respect to the Assets.

 

    	- 13 -

    	 

    

 

The Collateral Manager
and its Affiliates may, and may cause or advise their respective clients to, invest in assets, investments or instruments that
would be appropriate for the Issuer or the Co-Issuer or as security for the Notes and shall have no duty or obligation to offer
any such asset, investment or instrument to the Issuer or the Co-Issuer. Such investments may be different from those made to or
on behalf of the Issuer. The Collateral Manager, its Affiliates and their respective clients may have ongoing relationships with
Persons whose instruments are pledged to secure the Notes and may own instruments issued by, or loans to, issuers of the Collateral
Debt Securities or to any borrower or Affiliate of any borrower on any commercial mortgage loans underlying or constituting the
Collateral Debt Securities or the Eligible Investments. The Collateral Manager and its Affiliates may cause or advise their respective
clients to invest in instruments that are senior to, or have interests different from or adverse to, the instruments that are pledged
to secure the Notes.

 

Nothing contained in
this Agreement shall prevent the Collateral Manager or any of its Affiliates from themselves buying or selling, or from recommending
to or directing any other account to buy or sell, at any time, securities of the same kind or class, or securities of a different
kind or class of the same issuer, as those directed by the Collateral Manager to be purchased or sold hereunder. It is understood
that, to the extent permitted by applicable law, the Collateral Manager, its Affiliates, and any member, manager, officer, director,
stockholder or employee of the Collateral Manager or any such Affiliate or any member of their families or a Person advised by
the Collateral Manager may have an interest in a particular transaction or in securities of the same kind or class, or securities
of a different kind or class of the same issuer, as those purchased or sold by the Collateral Manager hereunder. Subject to applicable
law, the requirements of the Indenture and this Agreement, when the Collateral Manager is considering purchases or sales for the
Issuer and one or more of such other accounts at the same time, the Collateral Manager shall allocate available investments or
opportunities for sales in its discretion and make investment recommendations and decisions that may be the same as or different
from those made with respect to the Issuer’s investments, in accordance with applicable law and the Collateral Manager Servicing
Standard, to the extent applicable.

 

Subject to the Indenture
and the provisions of this Agreement, the Collateral Manager shall not be obligated to pursue any specific investment strategy
or opportunity that may arise with respect to the Assets.

 

The Issuer hereby acknowledges
and consents to the various potential and actual conflicts of interests that may exist with respect to the Collateral Manager as
described above; provided, however, that nothing contained in this Section ‎9 shall be construed as altering
the duties of the Collateral Manager set forth in this Agreement or in the Indenture.

 

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10.         Records;
Requests for Information; Confidentiality. The Collateral Manager shall maintain appropriate books of account and records relating
to services performed hereunder, and such books of account and records shall be accessible for inspection by an authorized representative
of the Issuer, the Trustee and the Independent accountants appointed by the Issuer pursuant to the Indenture at a mutually agreed-upon
time during normal business hours and upon reasonable prior notice; provided that the Collateral Manager shall not be obligated
to provide access to any non-public information if the Collateral Manager in good faith determines that the disclosure of such
information would violate any applicable law, regulation or contractual arrangement. The Collateral Manager shall promptly forward
to the Trustee any information in its possession or reasonably available to it concerning any Collateral Debt Security, Eligible
Investment or Hedge Agreement that the Trustee reasonably may request as necessary to enable the Trustee to calculate the Weighted
Average Coupon and/or the Weighted Average Spread (and, to the extent reasonably requested by the Trustee, shall cooperate with
the Trustee in connection with any the making of any such calculations). The Collateral Manager shall follow its customary procedures
to keep confidential all information obtained in connection with the services rendered hereunder and shall not disclose any such
information except (i) with the prior written consent of the Issuer (which consent shall not be unreasonably withheld), (ii) such
information as the Rating Agencies shall reasonably request in connection with their rating or evaluation of the Notes and/or the
Collateral Manager, as applicable, and legally permitted to be disclosed by and to the Rating Agencies, (iii) as required by law,
regulation, court order or the rules, regulations, or request of any regulatory or self-regulating organization, body or official
(including any securities exchange on which the Notes may be listed from time to time) having jurisdiction over the Collateral
Manager or as otherwise required by law or judicial process, (iv) such information as shall have been publicly disclosed other
than in violation of this Agreement, (v) to its members, officers, directors, and employees, and to its attorneys, accountants
and other professional advisers in conjunction with the transactions described herein, (vi) such information as may be necessary
or desirable in order for the Collateral Manager to prepare, publish and distribute to any Person any information relating to the
investment performance of the Assets, (vii) in connection with the enforcement of the Collateral Manager’s rights hereunder
or in any dispute or proceeding related hereto, (viii) to the Trustee, (ix) to the extent required pursuant to any Hedge Agreement
of the Issuer and (x) to Holders and potential purchasers of any of the Securities.

 

Subject to compliance
with the requirements of any law, rule or regulation applicable to the Collateral Manager, nothing contained herein shall prevent
the Collateral Manager from discussing its activities hereunder in a general way in the normal course of its business, including,
without limitation, general discussions with other Persons regarding its ability to act as a collateral manager and its past performance
in such capacity. In addition, subject to compliance with the requirements of any law, rule or regulation applicable to the Collateral
Manager, with respect to information that the Collateral Manager obtains or develops regarding the Collateral Debt Securities or
Eligible Investments (including, without limitation, information regarding ratings, yield, creditworthiness, financial condition
and prospects of any issuer thereof) in connection with the performance of its services hereunder, nothing in this Section ‎10
shall prevent the Collateral Manager or its Affiliates, in the conduct of their respective businesses, from using such information
or disclosing such information to others so long as such other use does not, in its reasonable judgment, disadvantage the Issuer.
Notwithstanding anything to the contrary contained in this Agreement, all Persons may disclose to any and all Persons, without
limitation of any kind, the U.S. federal, state and local tax treatment of the Securities and the Co-Issuers, any fact that may
be relevant to understanding the U.S. federal, state and local tax treatment of the Securities and the Issuers, and all materials
of any kind (including opinions or other tax analyses) relating to such U.S. federal, state and local tax treatment and that may
be relevant to understanding such tax treatment.

 

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11.         Term.
This Agreement shall become effective on the date hereof and shall continue in full force and effect until the first to occur of
the following: (a) the payment in full of the Notes and the termination of the Indenture in accordance with its terms, (b) the
liquidation of the Assets and the final distribution of the proceeds of such liquidation to the Holders and the Issuer or (c) the
termination of this Agreement pursuant to Section ‎12 hereof.

 

12.         Termination.

 

(a)          The
Collateral Manager may be removed upon at least thirty (30) days (or upon an occurrence of any act or indictment described in clause (iv)
of the definition of “cause” set forth in Section ‎12(b) below, ten (10) days) prior written notice
if (A) Holders of at least 75% by Aggregate Outstanding Amount of each Class of Notes (voting as a separate Class) and (B) Holders
of at least 75% of the Preferred Shares in issue which have not been redeemed give written notice to the Collateral Manager, the
Issuer, each Hedge Counterparty and the Trustee of such removal (including in any such calculation any Collateral Manager Securities);
provided that if the Collateral Manager is removed pursuant to this clause (a), any successor Collateral Manager will
not be permitted to be a Holder of or an Affiliate of any Holder of Securities. Notice of any such removal shall be delivered by
the Trustee, on behalf of the Issuer, to the Holders of each Class of Notes, the Holders of the Preferred Shares, each Rating Agency
and each Hedge Counterparty.

 

(b)          This
Agreement may be terminated, and the Collateral Manager may be removed, by the Issuer or the Trustee for cause, upon thirty (30)
days (or upon an occurrence of any act or indictment described in clause (iv) of the definition of “cause” set
forth in this Section ‎12(b) below, ten (10) days) prior written notice by the Issuer, at the direction of (A)
so long as the Class A-1 Notes and/or the Class A-2 Notes are the Controlling Class, the Holders of at least a majority
of the outstanding principal amount of the Controlling Class and (B) at any other time (i) the Holders of at least a majority by
Aggregate Outstanding Amount of each Class of Notes (excluding any Collateral Manager Securities), each voting as a separate Class
and (ii) the Holders of at least a Majority of the Preferred Shares (excluding any Collateral Manager Securities); provided,
however, upon the occurrence of an event described in clause (iii) of this Section ‎12(b), termination
of the Collateral Manager will be automatic and without advance notice required from the Issuer, the Trustee or any other Person.
Notice of any such removal for cause shall be delivered by the Trustee, on behalf of the Issuer, to each Rating Agency, each Hedge
Counterparty and the Holders of the Notes and the Preferred Shares. In no event will the Trustee be required to determine whether
or not cause exists for the removal of the Collateral Manager. As used in this Section ‎12, “cause”
means any of the following events:

 

(i)          the
Collateral Manager (A) willfully breaches, or takes any action that it knows violates, any provision of this Agreement or any term
of the Indenture applicable to the Collateral Manager (not including a willful breach or knowing violation that results from a
good faith dispute regarding alternative courses of action or interpretation of instructions), which breach or action has (or could
reasonably be expected to have) a material adverse effect on the Noteholders and (B) fails to cure such breach within thirty (30)
days after the first to occur of (1) notice of such failure is given to the Collateral Manager or (2) the Collateral Manager having
actual knowledge of such breach or violation;

 

    	- 16 -

    	 

    

 

(ii)         the
Collateral Manager breaches in any material respect any provision of this Agreement or any material terms of the Indenture applicable
to the Collateral Manager and fails to cure such breach within ninety (90) days after the first to occur of (A) notice of such
failure is given to the Collateral Manager or (B) the Collateral Manager having actual knowledge of such breach;

 

(iii)        the
Collateral Manager (A) ceases to be able to, or admits in writing the Collateral Manager’s inability to, pay the Collateral
Manager’s debts when and as they become due, (B) files, or consents by answer or otherwise to the filing against the Collateral
Manager of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or takes
advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (C) makes an assignment
for the benefit of the Collateral Manager’s creditors, (D) consents to the appointment of a custodian, receiver, trustee
or other officer with similar powers with respect to the Collateral Manager or with respect to any substantial part of the Collateral
Manager’s property or (E) is adjudicated as insolvent or to be liquidated;

 

(iv)        the
occurrence of an act by the Collateral Manager or any of its Affiliates that constitutes fraud or criminal activity in the performance
of its obligations under this Agreement or the indictment of the Collateral Manager or any of its respective officers or directors
for a criminal offense involving an investment or investment-related business, fraud, false statements or omissions, wrongful taking
of property, bribery, forgery, counterfeiting or extortion;

 

(v)         the
failure of any representation, warranty, certificate or statement of the Collateral Manager in or pursuant to this Agreement or
the Indenture to be correct in any material respect and (x) such failure has (or could reasonably be expected to have) a material
adverse effect on the Noteholders, the Issuer or the Co-Issuer and (y) if such failure can be cured, no correction is made for
forty-five (45) days after the Collateral Manager becomes aware of such failure or receives notice thereof in writing from the
Trustee;

 

(vi)        the
occurrence and continuation of any of the Events of Default described in Sections 5.1(a) or 5.1(b) of the Indenture;

 

(vii)       so
long as the Class A-1 Notes and/or the Class A-2 Notes are the Controlling Class, the Class A/B Par Value Ratio
is less than 92.00% on any Measurement Date; or

 

(viii)      the
Collateral Manager consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets to,
another Person and either (A) at the time of such consolidation, amalgamation, merger or transfer, the resulting, surviving or
transferee Person fails to or cannot assume all the obligations of the Collateral Manager under this Agreement or (B) the resulting,
surviving or transferee Person lacks the legal capacity to perform the obligations of the Collateral Manager hereunder and under
the Indenture.

 

    	- 17 -

    	 

    

 

The Collateral Manager shall notify the
Trustee, the Rating Agencies and the Issuer in writing promptly upon becoming aware of any event that constitutes cause under this
Section ‎12(b). In no event shall the Trustee be obligated to determine if “cause” exists.

 

(c)          The
Collateral Manager may resign, upon thirty (30) days prior written notice to the Issuer, the Co-Issuer, the Trustee, each Rating
Agency and each Hedge Counterparty; provided, however, that (i) no such termination or resignation shall be effective
until the date as of which a successor collateral manager shall have agreed in writing to assume all of the Collateral Manager’s
duties and obligations pursuant to this Agreement and (ii) the Issuer shall use its best efforts to appoint a successor collateral
manager to assume such duties and obligations. Notwithstanding the notice required above, the Collateral Manager shall have the
right to resign without prior notice if, due to a change in any applicable law or regulation or interpretation thereof, the performance
by the Collateral Manager of its duties under the Collateral Management Agreement would (i) adversely affect the Issuer’s
status as a qualified REIT subsidiary (within the meaning of Section 856(i)(2) of the Code) or (ii) constitute a violation
of any applicable law or regulation.

 

(d)          No
removal, termination or resignation of the Collateral Manager or termination of this Agreement shall be effective unless (x) a
successor collateral manager (a “Replacement Manager”) has been appointed by the Issuer and has agreed in writing
to assume all of the Collateral Manager’s duties and obligations pursuant to this Agreement and (y) written notification
shall have been provided in accordance with Sections ‎12(a), ‎(b) or ‎(c), as applicable.
The appointment of any Replacement Manager shall be subject to satisfaction of the Rating Agency Condition and each such Replacement
Manager (i) shall have demonstrated an ability to professionally and competently perform duties similar to those imposed upon the
Collateral Manager, (ii) is legally qualified and has the capacity to act as collateral manager, (iii) by its appointment will
not cause the Issuer, the Co-Issuer or the pool of Assets to, or result in the Issuer, the Co-Issuer or the pool of Assets becoming,
an “investment company” under the Investment Company Act, (iv) has accepted its appointment in writing and (v) by its
appointment will not cause the Issuer, the Co-Issuer or the pool of Assets to become subject to income or withholding tax that
would not have been imposed but for such appointment.

 

(e)          Upon
any resignation or removal of the Collateral Manager while any of the Notes are Outstanding, (A) so long as the Class A-1
Notes and/or the Class A-2 Notes are the Controlling Class, the Holders of at least a majority of the outstanding principal
amount of the Controlling Class and (B) at any other time, the Holders of at least a Majority of the Preferred Shares shall have
the right to instruct the Issuer to appoint an institution identified by such Holders as Replacement Manager; provided that
(i) the Issuer provides to the Noteholders notice of such appointment and a majority by Aggregate Outstanding Amount of each Class
of Notes (excluding any Collateral Manager Securities), each voting as a separate Class, does not object to such appointment within
thirty (30) days, (ii) the Rating Agency Condition has been satisfied with respect to such appointment and (iii) the requirements
set forth in Section ‎12(d)(i) through (v) above have been satisfied. If at least a majority of the Holders of
the outstanding principal or notional amount of the Controlling Class or the Preferred Shares, as the case may be, identify two
(2) institutions for appointment as described in Section ‎12(d)(i) or Section ‎12(d)(ii) above
and both are objected to as described in clause (i) above, a majority of the outstanding principal amount or notional amount,
as the case may be, of such Holders shall have the right to appoint any institution not previously identified by such holders as
Replacement Manager (subject to compliance with the conditions described in Section ‎12(d)(i) and Section ‎12(d)(ii)
above).

 

    	- 18 -

    	 

    

 

(f)          In
the event that the Collateral Manager resigns pursuant to Section ‎12(c) or is terminated pursuant to Sections ‎12(a)
or ‎(b) hereof and the Issuer has not appointed a successor prior to the day following the termination (or resignation)
date specified in such notice, the Collateral Manager will be entitled to propose a successor and will so appoint such proposed
entity as successor thirty (30) days thereafter, unless the Rating Agency Condition with respect to such successor has not been
satisfied or a majority of any Class of Notes (excluding any Collateral Manager Securities), each voting as a separate Class, objects
to such appointment within such thirty (30) day period, in which case the Controlling Class will be entitled to propose a successor
and will appoint such proposed entity as successor thirty (30) days thereafter unless a majority by Aggregate Outstanding Amount
of any other Class of Notes (excluding any Collateral Manager Securities), each voting as a separate Class, objects to such appointment
within such thirty (30) day period, in each case subject to the requirements set forth in Section ‎12(d) above.
In the event a proposed successor Collateral Manager is not appointed pursuant to the foregoing procedures, the resigning or removed
Collateral Manager may petition any court of competent jurisdiction for the appointment of a successor collateral manager, which
appointment will not require the consent of, or be subject to the disapproval of, the Issuer, any Noteholder or any Holder of the
Preferred Shares.

 

Notwithstanding any provision
contained in this Agreement, the Indenture or otherwise, so long as the Collateral Manager continues to perform its obligations
hereunder, the Collateral Management Fee shall continue to accrue for the benefit of the Collateral Manager until termination of
this Agreement under this Section ‎12 shall become effective as set forth herein. In addition, the Collateral Manager
shall, subject to Section ‎6, be entitled to reimbursement of out-of-pocket expenses incurred in cooperating with the
Replacement Manager, including in connection with the delivery of any documents or property. In the event that the Collateral Manager
is removed or resigns and a Replacement Manager is appointed, such former Collateral Manager nonetheless shall be entitled to receive
payment of all unpaid Collateral Management Fees, including the Senior Collateral Management Fee and the Subordinated Collateral
Management Fee, accrued through the effective date of the removal or resignation, to the extent that funds are available for that
purpose in accordance with the Priority of Payments, and such payments shall rank in the Priority of Payments pari passu with
the Collateral Management Fees due to the Replacement Manager. In addition, following the removal or resignation of the Collateral
Manager hereunder, the removed or resigning Collateral Manager shall be granted access to the books of account and records of the
Issuer and the Trustee to the extent such removed or resigning Collateral Manager deems necessary to confirm the proper payment
of any amounts owing to such removed or resigning Collateral Manager hereunder.

 

    	- 19 -

    	 

    

 

(g)          Upon
the effective date of termination of this Agreement, the Collateral Manager shall as soon as practicable:

 

(i)          deliver
to the Issuer (or as the Issuer may reasonably request) all property and documents of the Trustee or the Issuer or otherwise relating
to the Assets then in the custody of the Collateral Manager (although the Collateral Manager may keep copies of such documents
for its records); and

 

(ii)         deliver
to the Trustee an accounting with respect to the books and records delivered to the Issuer or the Replacement Manager appointed
pursuant to this Section ‎12 hereof.

 

The Collateral Manager
shall reasonably assist and cooperate with the Trustee and the Issuer (as reasonably requested by the Trustee or the Issuer) in
the assumption of the Collateral Manager’s duties by any Replacement Manager as provided for in this Agreement, as applicable.
Notwithstanding such termination, the Collateral Manager shall remain liable to the extent set forth herein (but subject to Section ‎13
hereof) for the Collateral Manager’s acts or omissions hereunder arising prior to its termination as Collateral Manager hereunder
and for any expenses, losses, damages, liabilities, demands, charges and claims (including reasonable attorneys’ fees) in
respect of or arising out of a breach of the representations and warranties made by it in Section ‎5 hereof or from any
failure of the Collateral Manager to comply with the provisions of this Section ‎12(g).

 

(h)          The
Collateral Manager agrees that, notwithstanding any termination, the Collateral Manager shall reasonably cooperate in any Proceeding
arising in connection with this Agreement, the Indenture or any of the Assets (excluding any such Proceeding in which claims are
asserted against the Collateral Manager or any Affiliate of the Collateral Manager) so long as the Collateral Manager shall have
been offered (in its judgment) reasonable security, indemnity or other provision against the cost, expenses and liabilities that
might be incurred in connection therewith, but, in any event, shall not be required to make any admission or to take any action
against the Collateral Manager’s own interests or the interests of other funds and accounts advised by the Collateral Manager.

 

(i)          If
this Agreement is terminated pursuant to Section ‎12(a), ‎(b) or ‎(c) hereof, such termination
shall be without any further liability or obligation of the Issuer or the Collateral Manager to the other, except as provided in
Sections ‎6, ‎7, ‎12 and ‎13 and the last sentence of Section ‎10
hereof.

 

(j)          Upon
expiration of the applicable notice period with respect to termination specified in Section ‎12(e) hereof, all
authority and power of the Collateral Manager under this Agreement and the Indenture, whether with respect to the Assets or otherwise,
shall automatically and without further action by any person or entity pass to and be vested in the Replacement Manager.

 

    	- 20 -

    	 

    

 

13.         Liability
of Collateral Manager.

 

(a)          The
Collateral Manager assumes no responsibility under this Agreement other than to render the services called for from the Collateral
Manager hereunder and under the Indenture in the manner prescribed herein and therein. The Collateral Manager and its Affiliates,
and each of their respective partners, shareholders, members, managers, officers, directors, employees, agents, accountants and
attorneys shall have no liability to the Noteholders, the Holders of the Preferred Shares, the Trustee, the Issuer, the Co-Issuer,
any Hedge Counterparty, the Initial Purchaser, or any of their respective Affiliates, partners, shareholders, officers, directors,
employees, agents, accountants and attorneys, or any other Person, for any error of judgment, mistake of law, or for any claim,
loss, liability, damage, settlement, costs, or other expenses (including reasonable attorneys’ fees and court costs) of any
nature whatsoever (collectively, “Liabilities”) that arise out of or in connection with any act or omissions
of the Collateral Manager in the performance of its duties under this Agreement or the Indenture or for any decrease in the value
of the Collateral Debt Securities or Eligible Investments, except by reason of acts or omissions constituting bad faith, willful
misconduct or gross negligence in the performance of, or reckless disregard of, the duties of the Collateral Manager hereunder
and under the terms of the Indenture. The Issuer agrees that the Collateral Manager shall not be liable for any consequential,
special, exemplary or punitive damages hereunder. The acts, failure to act or breaches described in this clause (a) are collectively
referred to for purposes of this Section ‎13 as “Collateral Manager Breaches.”

 

(b)          The
Collateral Manager shall indemnify, defend and hold harmless the Issuer and each of its partners, shareholders, members, managers,
officers, directors, employees, agents, accountants and attorneys (each, an “Issuer Indemnified Party”) from
and against any claims that may be made against an Issuer Indemnified Party by third parties and any damages, losses, claims, liabilities,
costs or expenses (including all reasonable legal and other expenses) which are incurred as a direct consequence of the Collateral
Manager Breaches, except for liability to which such Issuer Indemnified Party would be subject by reason of willful misconduct,
bad faith, gross negligence in the performance of, or reckless disregard of the obligations of the Issuer hereunder and under the
terms of the Indenture.

 

(c)          The
Issuer shall reimburse, indemnify and hold harmless the Collateral Manager, its members, managers, directors, officers, stockholders,
partners, agents and employees and any Affiliate of the Collateral Manager and its directors, officers, stockholders, partners,
members, agents, employees, accountants and attorneys (the Collateral Manager and such other persons collectively, the “Collateral
Manager Indemnified Parties”) from any and all Liabilities, as are incurred in investigating, preparing, pursuing or
defending any claim, action, proceeding or investigation (whether or not such Collateral Manager Indemnified Party is a party)
caused by, or arising out of or in connection with this Agreement, the Indenture and the transactions contemplated hereby and thereby,
including the issuance of the Notes, or any acts or omissions of any Collateral Manager Indemnified Parties except those that are
the result of Collateral Manager Breaches. Any amounts payable by the Issuer under this Section ‎13(c) shall be
payable only subject to the Priority of Payments set forth in the Indenture and to the extent Assets are available therefor.

 

(d)          With
respect to any claim made or threatened against an Issuer Indemnified Party or a Collateral Manager Indemnified Party (each an
“Indemnified Party”), or compulsory process or request or other notice of any loss, claim, damage or liability
served upon an Indemnified Party, for which such Indemnified Party is or may be entitled to indemnification under this Section ‎13,
such Indemnified Party shall (or, with respect to Indemnified Parties that are directors, managers, officers, stockholders, members,
managers, agents or employees of the Issuer or the Collateral Manager, the Issuer or the Collateral Manager, as the case may be,
shall cause such Indemnified Party to):

 

    	- 21 -

    	 

    

 

(i)          give
written notice to the indemnifying party of such claim within ten (10) Business Days after such Indemnified Party’s receipt
of actual notice that such claim is made or threatened, which notice to the indemnifying party shall specify in reasonable detail
the nature of the claim and the amount (or an estimate of the amount) of the claim; provided, however, that the failure
of any Indemnified Party to provide such notice to the indemnifying party shall not relieve the indemnifying party of its obligations
under this Section ‎13 unless the rights or defenses available to the Indemnified Party are materially prejudiced
or otherwise forfeited by reason of such failure;

 

(ii)         at
the indemnifying party’s expense, provide the indemnifying party such information and cooperation with respect to such claim
as the indemnifying party may reasonably require, including making appropriate personnel available to the indemnifying party at
such reasonable times as the indemnifying party may request;

 

(iii)        at
the indemnifying party’s expense, cooperate and take all such steps as the indemnifying party may reasonably request to preserve
and protect any defense to such claim;

 

(iv)        in
the event suit is brought with respect to such claim, upon reasonable prior notice, afford to the indemnifying party the right,
which the indemnifying party may exercise in its sole discretion and at its expense, to participate in the investigation, defense
and settlement of such claim;

 

(v)         neither
incur any material expense to defend against nor release or settle any such claim or make any admission with respect thereto (other
than routine or incontestable admissions or factual admissions the failure to make of which would expose such Indemnified Party
to unindemnified liability) nor permit a default or consent to the entry of any judgment in respect thereof, in each case without
the prior written consent of the indemnifying party; and

 

(vi)        upon
reasonable prior notice, afford to the indemnifying party the right, in such party’s sole discretion and at such party’s
sole expense, to assume the defense of such claim, including the right to designate counsel reasonably acceptable to the Indemnified
Party and to control all negotiations, litigation, arbitration, settlements, compromises and appeals of such claim; provided
that, if the indemnifying party assumes the defense of such claim, it shall not be liable for any fees and expenses of counsel
for any Indemnified Party incurred thereafter in connection with such claim except that, if such Indemnified Party reasonably determines
that counsel designated by the indemnifying party has a conflict of interest, such indemnifying party shall pay the reasonable
fees and disbursements of one counsel (in addition to any local counsel) separate from such indemnifying party’s own counsel
for all Indemnified Parties in connection with any one action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances; and provided, further, that the indemnifying party
shall not have the right, without the Indemnified Party’s written consent, to settle any such claim if, in a case where the
Issuer is the indemnifying party, the Issuer does not make available (in accordance with the Priority of Payments), in a segregated
account available only for this purpose, the full amount required to pay any amounts due from the Indemnified Party under such
settlement or, in any case, such settlement (A) arises from or is part of any criminal action, suit or proceeding, (B) contains
a stipulation to, confession of judgment with respect to, or admission or acknowledgement of, any liability or wrongdoing on the
part of the Indemnified Party, (C) relates to any federal, state or local tax matters or (D) provides for injunctive relief, or
other relief other than damages, which is binding on the Indemnified Party.

 

    	- 22 -

    	 

    

 

(e)          In
the event that any Indemnified Party waives its right to indemnification hereunder, the indemnifying party shall not be entitled
to appoint counsel to represent such Indemnified Party nor shall the indemnifying party reimburse such Indemnified Party for any
costs of counsel to such Indemnified Party.

 

(f)          Nothing
herein shall in any way constitute a waiver or limitation of any rights that the Issuer or the Collateral Manager may have under
any United States federal or state securities laws.

 

14.         Obligations
of Collateral Manager.

 

(a)          The
Collateral Manager to the extent required under the Indenture, and on behalf of the Issuer, shall (i) engage the services of an
Independent certified accountant to prepare any United States federal, state or local income tax or information returns and any
non-United States income tax or information returns that the Issuer may from time to time be required to file under applicable
law (each, a “Tax Return”), (ii) deliver, at least thirty (30) days before any applicable due date upon
which penalties and interest would accrue, each Tax Return, properly completed, to the Company Administrator for signature by an
Authorized Officer of the Issuer and (iii) file or deliver such Tax Return on behalf of the Issuer within any applicable time limit
with any authority or Person as required under applicable law.

 

(b)          Unless
otherwise required by any provision of the Indenture or this Agreement or by applicable law, the Collateral Manager shall not take
any action which it knows, or acting with gross negligence, would (a) materially adversely affect the Issuer for purposes of United
States federal or state law or any other law known to the Collateral Manager to be applicable to the Issuer, (b) not be permitted
under the Issuer’s Memorandum and Articles of Association or the Co-Issuer’s limited liability company agreement, (c)
require registration of the Issuer, the Co-Issuer or the Assets as an “investment company” under the Investment Company
Act or (d) cause the Issuer to violate the terms of the Indenture, including any representation or certification to be given by
the Issuer thereunder or pursuant thereto, it being understood that in connection with the foregoing the Collateral Manager will
not be required to make any independent investigation of any facts or laws not otherwise known to it in connection with its obligations
under this Agreement and the Indenture or the conduct of its business generally. The Collateral Manager will perform its duties
under this Agreement and the Indenture in a manner reasonably intended not to subject the Issuer to U.S. federal or state income
taxation, it being understood that, notwithstanding anything to the contrary set forth herein or in the Indenture, the Collateral
Manager shall be deemed to have complied with the requirements of the Indenture and any certifications, certificates or other related
documents required pursuant to the Indenture in connection with not subjecting the Issuer to U.S. federal or state income taxation,
if it satisfies the requirements set forth in this sentence and will not be liable to the Trustee, the Holders of the Notes, the
Co-Issuers, the Co-Issuers’ creditors or any other Person as a result of the Issuer engaging, or a determination that the
Issuer has engaged, in a U.S. trade or business for U.S. federal income tax purposes if it has complied with this section. The
Collateral Manager shall use all commercially reasonable efforts to ensure that no action is taken by it, and shall not intentionally
or with reckless disregard take any action, which the Collateral Manager knows or reasonably should know would have a materially
adverse United States federal or state income tax effect on the Issuer.

 

    	- 23 -

    	 

    

 

(c)          Notwithstanding
anything to the contrary herein, but subject to the standard set forth in Section ‎1 hereof, the Collateral Manager
or any of its Affiliates may take any action that is not specifically prohibited by the Indenture, this Agreement or applicable
law that the Collateral Manager or any Affiliate of the Collateral Managers deems to be in its (or in its portfolio’s) best
interest regardless of its impact on the Collateral Debt Securities.

 

15.         No
Partnership or Joint Venture. The Issuer and the Collateral Manager are not partners or joint venturers with each other, and
nothing herein shall be construed to make them such partners or joint venturers or impose any liability as such on either of them.
The Collateral Manager’s relation to the Issuer shall be that of an independent contractor and not a general agent. Except
as expressly provided in this Agreement and in the Indenture, the Collateral Manager shall not have authority to act for or represent
the Issuer in any way and shall not otherwise be deemed to be the Issuer’s agent.

 

The Collateral Manager
shall not have any duties or obligations except those expressly set forth herein and in the Indenture. Without limiting the generality
of the foregoing, (i) the Collateral Manager shall not be subject to any fiduciary or other implied duty and (ii) the Collateral
Manager shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights
and powers expressly contemplated hereby.

 

16.         Notices.
Any notice from a party under this Agreement shall be in writing and sent by answer-back facsimile or addressed and delivered or
sent by certified mail, postage prepaid, return receipt requested or sent by overnight courier service guaranteeing next day delivery
to the other party at such address as such other party may designate for the receipt of such notice. Until further notice to the
other party, it is agreed that the address of the Issuer for this purpose shall be:

 

    	- 24 -

    	 

    

 

Gramercy Real Estate CDO 2007-1,
Ltd.

c/o MaplesFS Limited

P.O. Box 1093GT

Boundary Hall

Cricket Square

George Town

Grand Cayman, Cayman Islands

Attention: The Directors

Fax: +1 345 945 7100

 

Telephone: +1 345 945 7099

 

with two copies to the Collateral
Manager (as addressed below).

 

the address of the Collateral Manager for
this purpose shall be:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Charles Spetka

Facsimile: (301) 255-4874

 

with a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Legal Department

Facsimile: (301) 255-4874

 

17.         Succession;
Assignment.

 

(a)          This
Agreement shall inure to the benefit of and be binding upon the successors to the parties hereto. No assignment of this Agreement
shall be made without the consent of the other party except as set forth below and without satisfaction of the Rating Agency Condition
(except as permitted under clauses (b) and (c) below), provided that the Issuer may collaterally assign its interest in
this Agreement to the Trustee under the Indenture.

 

(b)          Upon
satisfaction of the Rating Agency Condition, this Agreement may be assigned by the Collateral Manager to an Affiliate thereof that
has substantially the same personnel, or personnel with comparable expertise, as the Collateral Manager and that is capable of
performing the obligations of the Collateral Manager under this Agreement; provided that satisfaction of the Rating Agency
Condition shall not be required in connection with any assignment involving an internalization of the Collateral Manager or any
assignment to a successor upon merger or acquisition. Notwithstanding the foregoing, the Collateral Manager shall provide S&P
and Moody’s with prompt notice of any assignment involving an internalization of the Collateral Manager.

 

    	- 25 -

    	 

    

 

(c)          This
Agreement may be assigned by the Collateral Manager to any Person other than an Affiliate only upon satisfaction of the Rating
Agency Condition and approval by a Majority of the Controlling Class.

 

(d)          Upon
the execution and delivery of such a counterpart by the assignee, the Collateral Manager shall be released from further obligations
pursuant to this Agreement, except with respect to the Collateral Manager’s obligations arising under Section ‎13
of this Agreement prior to such assignment and except with respect to the Collateral Manager’s obligations under the last
sentence of Section ‎10 and Sections ‎7 and ‎12 hereof.

 

18.         No
Bankruptcy Petition/Limited Recourse. The Collateral Manager covenants and agrees that, prior to the date that is one year
and one day (or, if longer, the applicable preference period then in effect) after the payment in full of all Notes issued by the
Issuer under the Indenture, the Collateral Manager will not institute against, or join any other Person in instituting against,
the Issuer or the Co-Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings
under any bankruptcy, insolvency, reorganization or similar law of any jurisdiction; provided, however, that nothing
in this Section ‎18 shall preclude, or be deemed to stop, the Collateral Manager from taking any action prior to
the expiration of the aforementioned one year and one day period (or, if longer, the applicable preference period then in effect)
in (x) any case or proceeding voluntarily filed or commenced by the Issuer or the Co-Issuer, as the case may be or (y) any involuntary
insolvency proceeding filed or commenced against the Issuer or the Co-Issuer, as the case may be, by a Person other than the Collateral
Manager. The Collateral Manager hereby acknowledges and agrees that the Issuer’s obligations hereunder will be solely the
corporate obligations of the Issuer, and the Collateral Manager will not have recourse to any of the directors, officers, employees,
shareholders or affiliates of the Issuer, or any members of the Advisory Committee, with respect to any claims, losses, damages,
liabilities, indemnities or other obligations in connection with any transaction contemplated hereby. Notwithstanding any provision
hereof, all obligations of the Issuer and any claims arising from this Agreement or any transactions contemplated by this Agreement
shall be limited solely to the Collateral Debt Securities and the other Assets and payable in accordance with the Priority of Payments.
If payments on any such claims from the Assets are insufficient, no other assets shall be available for payment of the deficiency
and, following liquidation of all the Assets, any claims of the Collateral Manager arising from this Agreement and the obligations
of the Issuer to pay such deficiencies shall be extinguished. The Issuer hereby acknowledges and agrees that the Collateral Manager’s
obligations hereunder shall be solely the limited liability company obligations of the Collateral Manager, and the Issuer shall
not have any recourse to any of the members, managers, directors, officers, employees, shareholders or Affiliates of the Collateral
Manager with respect to any claims, losses, damages, liabilities, indemnities or other obligations in connection with any transactions
contemplated hereby. The provisions of this Section ‎18 shall survive the termination of this Agreement for any
reason whatsoever.

 

    	- 26 -

    	 

    

 

19.         Miscellaneous.

 

(a)          This
Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without regard to the
conflict of laws principles thereof other than Sections 5-1401 and 5-1402 of the General Obligations Law of the State of New
York. With respect to any suit, action or proceedings relating to this Agreement (“Proceedings”), each party
irrevocably (i) submits to the nonexclusive jurisdiction of the courts of the State of New York and the United States District
Court located in the Borough of Manhattan in New York City and (ii) waives any objection that such party may have at any time to
the laying of venue of any Proceedings brought in any such court, waives any claim that such Proceedings have been brought in an
inconvenient forum and further waives the right to object, with respect to such Proceedings, that such court does not have any
jurisdiction over such party. Nothing in this Agreement precludes either party from bringing Proceedings in any other jurisdiction,
nor shall the bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction.
The Collateral Manager irrevocably consents to the service of any and all process in any action or proceeding by the mailing or
delivery of copies of such process to the Collateral Manager at the office of the Collateral Manager, 7501 Wisconsin Avenue, Suite
500W, Bethesda, Maryland 20814, Attention: Daniel Warcholak, or such other address as the Collateral Manager may advise the Issuer
in writing. The Issuer irrevocably consents to the service of any and all process in any action or proceeding by the mailing or
delivery of copies of such process to CT Corporation System, 111 8th Avenue, 13th Floor, New York, New York
10011 (and any successor entity), as its authorized agent to receive and forward on its behalf service of any and all process which
may be served in any such suit, action or proceeding in any such court and agrees that service of process upon CT Corporation
System shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and shall be
taken and held to be valid personal service upon it. Each party hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(b)          The
captions in this Agreement are included for convenience only and in no way define or limit any of the provisions hereof or otherwise
affect their construction or effect.

 

(c)          In
the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding
shall not invalidate or render unenforceable any other provision hereof.

 

(d)          This
Agreement (including all Exhibits attached hereto) may not be amended or modified or any provision thereof waived (i) except by
an instrument in writing signed by both of the parties hereto or, in the case of a waiver, by the party waiving compliance and
(ii) in each case, in compliance with Section 15.1(f) of the Indenture, including with respect to satisfaction of the Rating
Agency Condition. This Agreement (including all Exhibits attached hereto) may be modified without the prior written consent of
the Trustee, any Hedge Counterparty or the holders of Notes to correct any inconsistency or cure any ambiguity or mistake. Any
other amendment of this Agreement (including all Exhibits attached hereto) shall require the prior written consent of the Trustee
and each Hedge Counterparty, which consent shall not be unreasonably withheld and is subject to the satisfaction of the Rating
Agency Condition.

 

    	- 27 -

    	 

    

 

(e)          This
Agreement constitutes the entire understanding and agreement between the parties hereto and supersedes all other prior and contemporaneous
understandings and agreements, whether written or oral, between the parties hereto concerning this subject matter (other than the
Indenture).

 

(f)          The
Collateral Manager hereby agrees and consents to the terms of Section 15.1(f) of the Indenture applicable to the Collateral
Manager and shall perform any provisions of the Indenture made applicable to the Collateral Manager by the Indenture as required
by Section 15.1(f) of the Indenture.

 

(g)          This
Agreement may be executed in any number of counterparts, each of which so executed shall be deemed an original, but all such counterparts
shall together constitute one and the same instrument.

 

(h)          The
words “include,” “includes” and “including” shall be deemed to be followed by the phrase “but
not limited to.”

 

(i)          Subject
to the last sentence of the third to last paragraph of Section ‎1 hereof, in the event of a conflict between the
terms of this Agreement and the Indenture, including with respect to the obligations of the Collateral Manager hereunder and thereunder,
the terms of this Agreement shall be controlling.

 

(j)          No
failure or delay on the part of any party hereto to exercise any right or remedy under this Agreement shall operate as a waiver
thereof, and no waiver shall be effective unless it is in writing and signed by the party granting such waiver.

 

(k)          This
Agreement is made solely for the benefit of the Issuer, the Collateral Manager and the Trustee, on behalf of the Noteholders, the
Holders of Preferred Shares and each Hedge Counterparty, their successors and assigns, and no other person shall have any right,
benefit or interest under or because of this Agreement.

 

(l)          The
Collateral Manager hereby irrevocably waives any rights it may have to set off against the Assets.

 

    	- 28 -

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed (as a deed in the case of the Issuer) by their respective authorized representatives
as of the day and year first above written.

 

 

	 	Executed as a Deed
	 	 
	 	GRAMERCY
    REAL ESTATE CDO 2007-1, LTD., as Issuer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title

 

	 	In the presence of:
	 	 	 
	 	Witness:	 
	 	 	Name:
	 	 	Occupation:
	 	 	Title:

 

	 	CWCAPITAL INVESTMENTS LLC,
	 	as Collateral Manager
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title

  

    	- 29 -

    	 

    

 

EXHIBIT A

 

Advisory Committee Guidelines

 

1.          General.

 

If the Collateral Manager desires to direct
a trade between the Issuer and the Collateral Manager or any of its Affiliates, acting as principal (other than with respect to
Permitted Cash Purchases, sales of property or securities in accordance with the Origination Agreement and sales of Assets pursuant
to an auction in connection with an Auction Call Redemption or in connection with a redemption of the Notes pursuant to Article
9 of the Indenture, none of which shall require the approval of the Advisory Committee) (each such trade, a “Restricted
Transaction”), before effecting such trade, it shall first present such Restricted Transaction to the Advisory Committee
for review and prior approval.

 

2.          Composition
of the Advisory Committee.

 

The Advisory Committee must be comprised
of at least one person (which may be an individual or an entity), who is Independent (as defined in the Indenture) of the Collateral
Manager (each such person, an “Independent Member”), who acts as a surrogate for, and in the best interest of,
the holders of the Securities, and is subject to the Additional Advisory Committee Guidelines attached hereto as Exhibit B-l
(the “Independent Member Guidelines”).

 

The Advisory Committee also may have one
or more members appointed by the Collateral Manager and employed by the Collateral Manager or an Affiliate thereof (each such person,
an “Affiliated Member”), which members are subject to the Additional Advisory Committee Guidelines attached
hereto as Exhibit B-2 (the “Affiliated Member Guidelines”).

 

3.          Requisite
Experience.

 

Each member of the Advisory Committee must
at the time of appointment and at all relevant times thereafter have Requisite Experience.

 

The Collateral Manager and the Issuer will
have the right to accept a representation and warranty from a member regarding its Requisite Experience, in the absence of actual
knowledge by a responsible officer of the Collateral Manager to the contrary.

 

“Requisite Experience”
means experience as a sophisticated investor, including, without limitation, in fixed income investing (directly and/or through
investment vehicles) and/or substantial experience and knowledge in and of the commercial real estate loan market and related investment
arenas, such that the relevant Advisory Committee member believes that it is capable of determining whether or not to participate
in Advisory Committee decisions on the basis of the provisions described herein. Such person need not be a professional loan investor
or loan originator.

 

    	A-1

    	 

    

 

4.          Appointment
of Initial Members of the Advisory Committee.

 

The initial members of the Advisory Committee
will be appointed by the Collateral Manager. Thereafter the Collateral Manager will have the right to appoint a member to replace
any member that resigns. Notwithstanding the foregoing, in the event of a resignation of the Independent Member, a replacement
Independent Member may be appointed by the Issuer if the Collateral Manager does not promptly appoint a replacement Independent
Member.

 

5.          Term.

 

Each member of the Advisory Committee will
serve until he or she resigns, dies or is removed.

 

6.          Approval
Process.

 

If the Collateral Manager wants the Issuer
to consider a Restricted Transaction, the Collateral Manager will give notice of the proposed Restricted Transaction to the members
of the Advisory Committee. The notice will contain the request by the Collateral Manager for the Advisory Committee’s consent
to the Restricted Transaction. The notice will be accompanied by:

 

		·	an investment memorandum; and

 

		·	an underwriting analysis.

 

The investment memorandum will (a) be a
reasonably detailed (anticipated to be approximately two pages) description of the proposed investment, the issuer thereof and
related information and (b) include information about the identity of any Affiliated Person involved in the proposed investment
and the capacity in which it will be acting and a narrative about why, in the judgment of the Collateral Manager, the investment
is appropriate to be purchased or sold by the Issuer, as the case may be. The notice will contain the Collateral Manager’s
offer to provide additional information as requested to the Advisory Committee.

 

7.          Unanimous
Written Consent.

 

Regardless of the composition of the Advisory
Committee, each Restricted Transaction must be approved in writing by each member of the Advisory Committee.

 

The members of the Advisory Committee are
under no obligation to consent to a Restricted Transaction.

 

		·	If all of the members of the Advisory Committee approve a Restricted Transaction in writing, the
Issuer will effect it at the option of the Collateral Manager (subject to the others terms of this Agreement and the Indenture).

 

		·	If the members of the Advisory Committee notify the Collateral Manager that the Advisory Committee
will not approve the Restricted Transaction, the Issuer will not effect the Restricted Transaction.

 

    	A-2

    	 

    

 

If at any time the Advisory Committee does
not have at least one Independent Member or any member does not have Requisite Experience, the Collateral Manager will not be permitted
to use the Advisory Committee to approve any Restricted Transaction.

 

8.          Compensation.

 

Each Independent Member shall receive arm’s
length compensation by the Issuer for serving on the Advisory Committee as agreed between such member and the Issuer.

 

    	A-3

    	 

    

 

EXHIBIT B-l

 

Additional Advisory Committee Guidelines

 

Independent Member

 

1.          Independent
Member Duties.

 

As an Independent Member of the Advisory
Committee, the Member shall:

 

(a)          serve
on the Advisory Committee and attend meetings of the Advisory Committee at such times and places (and/or telephonically or by correspondence
or otherwise) as shall be reasonably requested by the Issuer and the Collateral Manager;

 

(b)          promptly
consider certain actions to be taken with respect to certain Restricted Transactions presented by the Collateral Manager (as further
described in the Advisory Committee Guidelines);

 

(c)          in
connection with considering Restricted Transactions, promptly review and consider investment memoranda, underwriting analyses and
other information presented to the Member on behalf of the Issuer to the Advisory Committee in connection with the foregoing; and

 

(d)          take
such other actions as may be reasonably necessary or advisable in connection with the foregoing;

 

provided, however, that (i)
if the Member believes that the Member or an Affiliate thereof, or any of their respective officers, directors, employees, stockholders,
partners, members or managers, has an interest in any Restricted Transaction, the Member shall promptly disclose such interest
to the Issuer and the Collateral Manager and shall recuse himself from any consideration of such Restricted Transaction (in each
case unless the Collateral Manager and each other member of the Advisory Committee (assuming that at least one such member of the
Advisory Committee is an Independent Member and is not affiliated with the Restricted Transaction at issue) shall determine that
such interest does not create a disabling conflict) and (ii) if the Member believes that, because of an actual or potential conflict
of interest relating to a Restricted Transaction, it would be inappropriate or inadvisable for the Member to receive any Confidential
Information (as defined in Paragraph 8 of this Exhibit B-l), the Member shall recuse himself from any consideration of such
Restricted Transaction.

 

2.          Representations
and Warranties.

 

The Member, by its execution of an Advisory
Committee Member Acknowledgement and Agreement (the “Acknowledgment and Agreement”), will be deemed to represent
and warrant that:

 

(a)          the
Member is Independent of the Collateral Manager (including, for this purpose, an employee, partner, member or director thereof);
and

 

    	B-1-1

    	 

    

 

(b)          the
Member has the Requisite Experience (as set forth in the Advisory Committee Guidelines).

 

If the representations and warranties set
forth in this Paragraph 2 shall at any time fail to be true and correct, the Member shall promptly notify the Issuer and the Collateral
Manager of that fact and shall immediately resign from the Advisory Committee.

 

3.          Compensation.

 

During the Term (as defined in Paragraph
7 of this Exhibit B-l), the Issuer shall pay the Member a per annum fee (the “Fee”) at a rate
to be established between the Collateral Manager and the Member, payable on each Payment Date (as defined in the Indenture), subject
to the Priority of Payments (as defined in the Indenture). The Fee payable on any specified Payment Date (as defined in the Indenture)
shall accrue during each period from and including the preceding Payment Date (or, with respect to the first payment, from and
including the date hereof) to but excluding such specified Payment Date (or, if earlier, to but excluding the last day of the Term),
calculated on the basis of the actual number of days elapsed over a year of 365 or 366 days, as the case may be. If any Fee is
not paid when due as a result of lack of available funds under the Priority of Payments, such Fee shall be deferred and shall be
payable on subsequent Payment Dates in accordance with the Priority of Payments.

 

The Issuer shall reimburse the Member,
promptly after demand therefor accompanied by reasonable supporting documentation, for any reasonable authorized expenses incurred
in connection with any meetings of or actions by the Advisory Committee.

 

4.          Exculpation
and Indemnification.

 

(a)          The
Member shall not be liable to the Issuer, the Co-Issuer, any holder of the Notes, any holder of the Preferred Shares, any holder
of ordinary shares of the Issuer or the Collateral Manager (i) for any losses incurred as a result of the actions taken or omitted
to be taken by the Member pursuant to the provisions of this Exhibit B-l or the Advisory Committee Guidelines, except that
the Member may be so liable to the extent such losses are the result of acts or omissions constituting willful misconduct, fraud
or gross negligence by the Member in the performance of its obligations hereunder or under the Advisory Committee Guidelines or
(ii) for the acts or omissions of any other member of the Advisory Committee.

 

(b)          The
Issuer shall indemnify the Member for, and hold the Member harmless against, any loss, liability or expense (including without
limitation reasonable attorneys’ fees and expenses) incurred arising out of or in connection with the Member’s service
as a member of the Advisory Committee, including the costs and expenses of defense against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder (collectively, “Losses”); provided,
however, that the Issuer shall not indemnify the Member for any Losses incurred as a result of acts or omissions constituting
willful misconduct, fraud or gross negligence by the Member in the performance of its obligations hereunder or under the Advisory
Committee Guidelines.

 

    	B-1-2

    	 

    

 

(c)          If
any action shall be instituted involving the Member for which indemnification hereunder may be applicable, such Member shall promptly
notify the Issuer and the Collateral Manager in writing and the Issuer shall have the right to retain counsel reasonably satisfactory
to the Issuer and the Collateral Manager to represent the Member and any others the Issuer may designate in such proceeding and
shall pay the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, the Member
shall have the right to retain individual counsel, but the fees and expenses of such counsel shall be at the expense of the Member
unless (i) the Issuer and the Member shall have agreed to the retention of such counsel or (ii) the named parties to any such proceeding
(including any impleaded parties) include the Member and the Issuer and representation of all such parties by the same counsel
would be inappropriate due to actual or potential differing interests between them. It is understood that the Issuer shall not,
in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more
than one separate firm (in addition to any local counsel) for the Member and any other members of the Advisory Committee, and that
all such reasonable fees and expenses shall be reimbursed as they are incurred. The Issuer shall not be liable for any settlement
of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the
plaintiff, the Issuer agrees, subject to the limitations noted herein, to indemnify the Member from and against any loss or liability
by reason of such settlement or judgment. The Issuer shall not, without the prior written consent of the Member, effect any settlement
of any pending or threatened proceeding in respect of which the Member is or is likely to have been a party, unless such settlement
includes an unconditional release of the Member from all liability on claims that are the subject matter of such proceeding. Notwithstanding
the foregoing, if any person shall pay the Member any amount of indemnification pursuant to this Paragraph 4, such person shall
succeed to the rights of the Issuer, to the exclusion of the Issuer, set forth in this Paragraph 4(c) (including, but not limited
to, the right of the Issuer to retain counsel to represent the Member in any related proceeding and to effect any settlement of
any related pending or threatened proceeding).

 

5.          Notices.

 

All notices, requests, consents, approvals
and other communications required or permitted to be given or delivered hereunder shall be in writing (which shall include notice
by telecopy or like transmission) and shall be deemed to have been given when delivered personally against receipt, upon receipt
of a transmitted confirmation if sent by telecopy or like transmission, or on the next business day when sent by overnight courier
or similar service, if addressed to the respective parties as follows:

 

If to the Issuer, to:

 

Gramercy Real Estate CDO 2007-1, Ltd.

 

c/o Maples Finance Limited

P.O. Box 1093 GT

Boundary Hall

Cricket Square

George Town

Grand Cayman, Cayman Islands

Telephone: +1 (345) 945-7099

Fax:
            +1 (345) 945-7100

Attention:  The Directors

 

    	B-1-3

    	 

    

 

with a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Charles Spetka

Facsimile: (301) 255-4874

 

with a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention: Legal Department

Facsimile: (301) 255-4874

 

If to the Member, to the address set forth
on the Acknowledgement and Agreement,

 

or to such other address or telephone number
as either party shall have specified by notice in writing to the other party; provided, however, that any such notice
of change of address or facsimile number shall be effective only upon receipt.

 

6.          Monthly
Reports.

 

The Issuer shall provide or cause to be
provided to the Member a copy of each Monthly Report (as defined in the Indenture), substantially and contemporaneously with its
delivery to the Rating Agencies (as defined in the Indenture) under the Indenture.

 

7.          Term;
Termination.

 

(a)          The
Member’s term as an Independent Member of the Advisory Committee (the “Term”) shall commence on the date
of its execution of the Acknowledgement and Agreement and shall continue until the earlier of: (i) the liquidation and winding-up
of the Issuer; (ii) the payment in full of all Notes; (iii) the death of the Member; and (iv) the effective date of any resignation
or removal of the Member as an Independent Member of the Advisory Committee as provided in this Paragraph 7.

 

(b)          The
Member shall have the right to resign as a member of the Advisory Committee at any time upon 10 days’ prior written notice
to the Issuer, except that any resignation pursuant to Paragraph 2 shall be effective immediately. The Collateral Manager shall
have the right to appoint an Independent Member to replace any Independent Member that resigns.

 

    	B-1-4

    	 

    

 

(c)          The
holders of 662⁄3%, by outstanding principal amount, of each Class of Notes voting as a separate Class (excluding any Notes
held by the Collateral Manager, any of its Affiliates or any funds (other than the Issuer) managed by the Collateral Manager or
its Affiliates) shall have the right to remove the Member for “cause.” For this purpose, “cause” shall
mean: (i) the Member’s breach of any material provisions hereof and its failure to cure such breach within ninety (90) days
after the first to occur of (x) notice of such failure is given to the Member and (y) the Member has actual knowledge of such breach;
(ii) an act by the Member that constitutes fraud or criminal activity in the performance of its obligations hereunder or the Member
is indicted of a felony offense or other crime involving an investment or investment-related business, fraud, false statements
or omissions, wrongful taking of property, bribery, forgery, counterfeiting or extortion, in a court of competent jurisdiction
(including the entry of a guilty or nolo contendere plea) or (iii) the Member becomes affiliated with the Collateral Manager or
any affiliate of the Collateral Manager.

 

(d)          The
Member also shall be subject to immediate removal from the Committee for “cause” by the Collateral Manager. For purposes
of this Paragraph 9(d), “cause” shall mean: (i) each of the events listed in clauses (i) through (iii) of the definition
of “cause” in Paragraph 9(c) above; (ii) the Member’s failure to substantially perform its duties hereunder and/or
under the Advisory Committee Guidelines; (iii) any of the Member’s representations and warranties set forth in Paragraph
2 hereof becomes untrue; or (iv) the Member fails to respond to a notice provided by the Collateral Manager with respect to a Restricted
Transaction within five business days after such notice or if the Member is not available to consider a Restricted Transaction
within five business days after such notice.

 

If the Member’s Term is terminated
pursuant to this Paragraph 7, such termination shall be without any further liability or obligation of either party to the other,
except that any liability or obligation of either party under Paragraph 3 or 4 shall survive the termination of such Member.

 

8.          Confidentiality.
The Member may receive certain information from the Collateral Manager and/or the Issuer in connection with its service as a member
of the Advisory Committee. The Member agrees, as set forth in this Paragraph 10, to treat confidentially any Confidential Material
(as defined below).

 

(a)          “Confidential
Material” means any non-public, confidential or proprietary information that is or has been provided by the Collateral
Manager or the Issuer to the Member or the Member’s employees, attorneys, accountants, advisors or other authorized representatives
(collectively, “Representatives”) in connection with the Member’s service on the Advisory Committee, regardless
of the form in which such information is communicated or maintained, and all notes, reports, analyses, compilations, studies, files
or other documents or material, whether prepared by the Member or others, which are based on, contain or otherwise reflect such
information. However, “Confidential Material” does not include any information that (i) at the time of disclosure or
thereafter is generally available to and known by the public (other than as a result of a disclosure in violation of this Paragraph
10 directly or indirectly by the Member or the Member’s Representatives), (ii) was available to the Member on a non-confidential
basis from a source other than the Collateral Manager or the Issuer or its advisors, or (iii) was independently acquired or developed
by the Member without violating any provision of this Paragraph 10.

 

    	B-1-5

    	 

    

 

(b)          The
Member agrees that all Confidential Material shall be kept confidential by the Member and, except with the specific prior written
consent of the Issuer and the Collateral Manager or as expressly otherwise permitted by the terms hereof, will not be disclosed
by the Member to any person, other than any of the Member’s Representatives that need to know such information solely for
the purpose of the Member’s service on the Advisory Committee (it being understood that, before disclosing the Confidential
Material or any portion thereof to such Representatives, the Member shall inform such Representatives of the confidential nature
of the Confidential Material and the restrictions related thereto). The Member agrees to be responsible for any breach of this
Paragraph 10 by the Member’s Representatives. The Member further agrees that the Member shall not use Confidential Material
for any reason or purpose other than in connection with its service on the Advisory Committee. In addition, without the prior written
consent of the Issuer and the Collateral Manager, the Member agrees not to disclose to any person, other than the Member’s
Representatives that need to know such information in connection with the Member’s service on the Advisory Committee, the
fact that Confidential Material has been made available to the Member or that the Member is considering any investment presented
to it by the Collateral Manager on behalf of the Issuer.

 

(c)          If
the Member is requested or required, by oral questions, interrogatories, requests for information or documents, subpoena, civil
investigative demand or similar process, to disclose Confidential Material, the Member shall provide the Issuer and the Collateral
Manager with prompt notice of such event so that the Issuer and/or the Collateral Manager may seek a protective order or other
appropriate remedy or waive compliance with the applicable provisions of this Paragraph 10 by the Member. If the Issuer or the
Collateral Manager determines to seek such protective order or other remedy, the Member shall cooperate with the Issuer or the
Collateral Manager in seeking such protective order or other remedy. If neither the Issuer nor the Collateral Manager is able to
seek such protective order or other remedy, the Member shall seek it as directed by the Issuer or the Collateral Manager. If such
protective order or other remedy is not obtained and disclosure of Confidential Material is required, or the Issuer grants a waiver
hereunder, the Member (i) may furnish that portion (and only that portion) of the Confidential Material which the Member is legally
required to disclose and (ii) will exercise reasonable best efforts to have confidential treatment afforded any Confidential Material
so furnished.

 

(d)          Upon
the termination hereof or upon the written request of the Issuer or the Collateral Manager at any time, the Member shall promptly
deliver or cause to be delivered to the Issuer or the Collateral Manager or to a person designated by the Issuer or the Collateral
Manager (or will destroy, with such destruction to be certified to the Issuer and the Collateral Manager) all documents or other
matter furnished to the Member by or on behalf of the Issuer or the Collateral Manager constituting Confidential Material, together
with all copies thereof in the possession of the Member. In such event, all other documents or other matter constituting Confidential
Material prepared by the Member will be destroyed, with any such destruction certified to the Issuer and the Collateral Manager.

 

    	B-1-6

    	 

    

 

9.          Limited
Recourse.

 

Notwithstanding any other provision hereof,
the Member acknowledges and agrees that he shall have recourse only to the Assets in respect of any claim, action, demand or right
arising in respect of, or against, the Issuer and following realization of the Assets, any claims of the Member against the Issuer
shall be extinguished and shall not thereafter revive. Notwithstanding any other provision hereof or in the Indenture, no member
of the Advisory Committee or any Affiliate thereof shall be personally liable to the Member for any amounts payable, or performance
due, by the Issuer hereunder. The Member agrees that the obligations of the Issuer to the Member are solely the corporate obligations
of the Issuer and that the Member will not have recourse to any of the directors, officers, employees, shareholders or affiliates
of the Issuer with respect to any claims, losses, damages, liabilities, indemnities or other obligations in connection with any
transaction contemplated hereby or in connection herewith. This provision shall survive termination of the Term.

 

10.         Non-Petition.

 

The Member agrees that, before the date
that is one year and one day or if longer, the expiration of the then applicable preference period plus one day, after the payment
in full of all Notes the Member shall not acquiesce, petition, join any other Person in any petition or otherwise invoke or cause
any other Person to invoke the process of any governmental authority for the purpose of commencing or sustaining a case against
the Issuer under any federal or state bankruptcy, insolvency or similar law of any jurisdiction or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the Issuer or any substantial part of its property or ordering
the winding-up or liquidation of the affairs of the Issuer. This provision shall survive termination of the Term.

 

11.         Amendments.

 

The provisions of this Exhibit B-l
may be amended only by an instrument in writing signed by the Issuer and the Member and consented to by the Collateral Manager.

 

12.         Third
Parties.

 

Nothing herein, expressed or implied, shall
give to any person, other than the Issuer, the Member and the Collateral Manager, any benefit or any legal or equitable right,
remedy or claim hereunder.

 

13.         Third
Party Beneficiary.

 

Each of the Issuer and the Member agrees
that the Collateral Manager is, and that it is intended that the Collateral Manager be afforded all the benefits of, an express
third-party beneficiary in respect of the provisions hereof.

 

    	B-1-7

    	 

    

 

EXHIBIT B-2

 

Additional Advisory Committee Guidelines

 

Affiliated Member

 

1.          Affiliated
Member Duties.

 

As an Affiliated Member of the Advisory
Committee, the Member shall:

 

(a)          serve
on the Advisory Committee and attend meetings of the Advisory Committee at such times and places (and/or telephonically or by correspondence
or otherwise) as shall be reasonably requested by the Issuer and the Collateral Manager;

 

(b)          promptly
consider certain actions to be taken with respect to certain Restricted Transactions presented by the Collateral Manager (as further
described in the Advisory Committee Guidelines);

 

(c)          in
connection with considering Restricted Transactions, promptly review and consider investment memoranda, underwriting analyses and
other information presented to the Member on behalf of the Issuer to the Advisory Committee in connection with the foregoing; and

 

(d)          take
such other actions as may be reasonably necessary or advisable in connection with the foregoing;

 

provided, however, that (i)
if the Member believes that the Member or an Affiliate thereof, or any of their respective officers, directors, employees, stockholders,
partners, members or managers, has an interest in any Restricted Transaction, the Member shall promptly disclose such interest
to the Issuer and the Collateral Manager and shall recuse himself from any consideration of such Restricted Transaction (in each
case unless the Collateral Manager and each other member of the Advisory Committee (assuming that at least one such member of the
Advisory Committee is an Independent Member and is not affiliated with the Restricted Transaction at issue) shall determine that
such interest does not create a disabling conflict) and (ii) if the Member believes that, because of an actual or potential conflict
of interest relating to a Restricted Transaction, it would be inappropriate or inadvisable for the Member to receive any confidential
information related to such Restricted Transaction, the Member shall recuse himself from any consideration of such Restricted Transaction.

 

2.          Representations
and Warranties.

 

The Member, by its execution of an Advisory
Committee Member Acknowledgement and Agreement (the “Acknowledgment and Agreement”), will be deemed to represent
and warrant that the Member has the Requisite Experience (as set forth in the Advisory Committee Guidelines).

 

If the representations and warranties set
forth in this Paragraph 2 shall at any time fail to be true and correct, the Member shall promptly notify the Issuer and the Collateral
Manager of that fact and shall immediately resign from the Advisory Committee.

 

    	B-2-1

    	 

    

 

3.          Exculpation
and Indemnification.

 

(a)          The
Member shall not be liable to the Issuer, the Co-Issuer, any holder of the Notes, any holder of the Preferred Shares, any holder
of ordinary shares of the Issuer or the Collateral Manager (i) for any losses incurred as a result of the actions taken or omitted
to be taken by the Member pursuant to the provisions of this Exhibit B-2 or the Advisory Committee Guidelines, except that
the Member may be so liable to the extent such losses are the result of acts or omissions constituting willful misconduct, fraud
or gross negligence by the Member in the performance of its obligations hereunder or under the Advisory Committee Guidelines or
(ii) for the acts or omissions of any other member of the Advisory Committee.

 

(b)          The
Issuer shall indemnify the Member for, and hold the Member harmless against, any loss, liability or expense (including without
limitation reasonable attorneys’ fees and expenses) incurred arising out of or in connection with the Member’s service
as a member of the Advisory Committee, including the costs and expenses of defense against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder (collectively, “Losses”); provided,
however, that the Issuer shall not indemnify the Member for any Losses incurred as a result of acts or omissions constituting
willful misconduct, fraud or gross negligence by the Member in the performance of its obligations hereunder or under the Advisory
Committee Guidelines.

 

(c)          If
any action shall be instituted involving the Member for which indemnification hereunder may be applicable, such Member shall promptly
notify the Issuer and the Collateral Manager in writing and the Issuer shall have the right to retain counsel reasonably satisfactory
to the Issuer and the Collateral Manager to represent the Member and any others the Issuer may designate in such proceeding and
shall pay the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, the Member
shall have the right to retain individual counsel, but the fees and expenses of such counsel shall be at the expense of the Member
unless (i) the Issuer and the Member shall have agreed to the retention of such counsel or (ii) the named parties to any such proceeding
(including any impleaded parties) include the Member and the Issuer and representation of all such parties by the same counsel
would be inappropriate due to actual or potential differing interests between them. It is understood that the Issuer shall not,
in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more
than one separate firm (in addition to any local counsel) for the Member and any other members of the Advisory Committee, and that
all such reasonable fees and expenses shall be reimbursed as they are incurred. The Issuer shall not be liable for any settlement
of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the
plaintiff, the Issuer agrees, subject to the limitations noted herein, to indemnify the Member from and against any loss or liability
by reason of such settlement or judgment. The Issuer shall not, without the prior written consent of the Member, effect any settlement
of any pending or threatened proceeding in respect of which the Member is or is likely to have been a party, unless such settlement
includes an unconditional release of the Member from all liability on claims that are the subject matter of such proceeding. Notwithstanding
the foregoing, if any person shall pay the Member any amount of indemnification pursuant to this Paragraph 3, such person shall
succeed to the rights of the Issuer, to the exclusion of the Issuer, set forth in this Paragraph 3(c) (including, but not limited
to, the right of the Issuer to retain counsel to represent the Member in any related proceeding and to effect any settlement of
any related pending or threatened proceeding).

 

    	B-2-2

    	 

    

 

4.          Notices.

 

All notices, requests, consents, approvals
and other communications required or permitted to be given or delivered hereunder shall be in writing (which shall include notice
by telecopy or like transmission) and shall be deemed to have been given when delivered personally against receipt, upon receipt
of a transmitted confirmation if sent by telecopy or like transmission, or on the next business day when sent by overnight courier
or similar service, if addressed to the respective parties as follows:

 

If to the Issuer, to:

 

Gramercy Real Estate CDO 2007-1, Ltd.

 

c/o Maples Finance Limited

P.O. Box 1093 GT

Boundary Hall

Cricket Square

George Town

Grand Cayman, Cayman Islands

Telephone:+1 (345) 945-7099

Fax:             +1 (345)
945-7100 

Attention: The
Directors

 

with a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention:  Charles Spetka 

Facsimile:   (301) 255-4874

 

with a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, MD 20814

Attention:  Legal Department 

Facsimile:   (301) 255-4874

 

    	B-2-3

    	 

    

 

If to the Member, to the address set forth
on the Acknowledgement and Agreement,or to such other address or telephone number as either party shall have specified by notice
in writing to the other party; provided, however, that any such notice of change of address or facsimile number shall be effective
only upon receipt.

 

5.          Monthly
Reports.

 

The Issuer shall provide or cause to be
provided to the Member a copy of each Monthly Report (as defined in the Indenture), substantially and contemporaneously with its
delivery to the Rating Agencies (as defined in the Indenture) under the Indenture.

 

6.          Term;
Termination.

 

(a)          The
Member’s term as a Member of the Advisory Committee (the “Term”) shall commence on the date of its execution
of the Acknowledgement and Agreement and shall continue until the earlier of: (i) the liquidation and winding-up of the Issuer;
(ii) the payment in full of all Notes; (iii) the death of the Member; and (iv) the effective date of any resignation or removal
of the Member as an Affiliated Member of the Advisory Committee as provided in this Paragraph 6.

 

(b)          The
Member shall have the right to resign as a member of the Advisory Committee at any time upon 10 days’ prior written notice
to the Issuer, except that any resignation pursuant to Paragraph 2 shall be effective immediately. The Collateral Manager shall
have the right to appoint a Member to replace any Member that resigns.

 

(c)          The
holders of 662⁄3%, by outstanding principal amount, of each Class of Notes voting as a separate Class (excluding any Notes
held by the Collateral Manager, any of its Affiliates or any funds (other than the Issuer) managed by the Collateral Manager or
its Affiliates) shall have the right to remove the Member for “cause.” For this purpose, “cause” shall
mean: (i) the Member’s breach of any material provisions hereof and its failure to cure such breach within ninety (90) days
after the first to occur of (x) notice of such failure is given to the Member and (y) the Member has actual knowledge of such breach;
or (ii) an act by the Member that constitutes fraud or criminal activity in the performance of its obligations hereunder or the
Member is convicted of a felony offense or other crime involving an investment or investment-related business, fraud, false statements
or omissions, wrongful taking of property, bribery, forgery, counterfeiting or extortion, in a court of competent jurisdiction
(including the entry of a guilty or nolo contendere plea). Any replacement Affiliated Member shall be appointed by the Collateral
Manager.

 

(d)          The
Collateral Manager will have the right to remove any Affiliated Member at any time in its sole discretion (with or without cause),
and such removal will not be subject to the appointment of any successor Affiliated Member.

 

If the Member’s Term is terminated
pursuant to this Paragraph 6, such termination shall be without any further liability or obligation of either party to the other,
except that any liability or obligation of either party under Paragraph 3 shall survive the termination of such Member.

 

    	B-2-4

    	 

    

 

7.          Limited
Recourse.

 

Notwithstanding any other provision hereof,
the Member acknowledges and agrees that he shall have recourse only to the Assets in respect of any claim, action, demand or right
arising in respect of, or against, the Issuer and following realization of the Assets, any claims of the Member against the Issuer
shall be extinguished and shall not thereafter revive. Notwithstanding any other provision hereof or in the Indenture, no member
of the Advisory Committee or any Affiliate thereof shall be personally liable to the Member for any amounts payable, or performance
due, by the Issuer hereunder. This provision shall survive termination of the Term.

 

8.          Non-Petition.

 

The Member agrees that, before the date
that is one year and one day, or if longer, the expiration of the then applicable preference period plus one day, after the payment
in full of all Notes the Member shall not acquiesce, petition, join any other Person in any petition or otherwise invoke or cause
any other Person to invoke the process of any governmental authority for the purpose of commencing or sustaining a case against
the Issuer under any federal or state bankruptcy, insolvency or similar law of any jurisdiction or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the Issuer or any substantial part of its property or ordering
the winding-up or liquidation of the affairs of the Issuer. The Member agrees that the obligations of the Issuer to the Member
are solely the corporate obligations of the Issuer and that the Member will not have recourse to any of the directors, officers,
employees, shareholders or affiliates of the Issuer with respect to any claims, losses, damages, liabilities, indemnities or other
obligations in connection with any transaction contemplated hereby or in connection herewith. This provision shall survive termination
of the Term.

 

9.          Amendments.

 

The provisions of this Exhibit B-2
may be amended only by an instrument in writing signed by the Issuer and the Member and consented to by the Collateral Manager.

 

10.         Third
Parties.

 

Nothing herein, expressed or implied, shall
give to any person, other than the Issuer, the Member and the Collateral Manager, any benefit or any legal or equitable right,
remedy or claim hereunder.

 

11.         Third-Party
Beneficiary.

 

Each of the Issuer and the Member agrees
that the Collateral Manager is, and that it is intended that the Collateral Manager be afforded all the benefits of, an express
third-party beneficiary in respect of the provisions hereof.

 

    	B-2-5

    	 

    

Exhibit C

 

 

 

Form of CDO Issuer 2007 First Waiver
Letter

 

 

************

 

[DATE]

 

VIA ELECTRONIC AND OVERNIGHT MAIL 

Wells Fargo Bank, National Association

9062 Old Annapolis Road

Columbia, Maryland 21045

Attention: CDO Trust Services — Gramercy
Real Estate CDO 2007-1, Ltd.

 

Re: Gramercy Real Estate CDO
2007-1, Ltd.

 

Dear Sir or Madam:

 

Reference is made to
the indenture, dated as of August 8, 2007 (as amended, modified or supplemented from time to time, the “Indenture”)
by and among Gramercy Real Estate CDO 2007-1, Ltd. (the “Issuer”), Gramercy Real Estate CDO 2007-1, LLC (the
“Co-Issuer”), GKK Liquidity LLC (including its successors and assigns, the “Advancing Agent”)
and Wells Fargo Bank, National Association (the “Trustee”). Capitalized terms used herein but not defined will
have the meanings ascribed to such terms in the Indenture.

 

************ (“************
hereby represents and warrants to the Trustee that (i) as of the date of this letter, no Surety Event was continuing and
(ii) as of the date hereof, no Surety Event has occurred and is continuing. To ************ knowledge, ************ London
Branch is the beneficial owner of approximately USD [335,371,941.22] in aggregate principal amount of the Class A-1 Notes (such
Class A-1 Notes, the “************ Notes”). The ************ Notes, together with ************ as Class A-2
Note Insurer, constitute a Majority of the Controlling Class. ************ hereby agrees to provide written notice to the Trustee
of the occurrence and continuance of a Surety Event promptly upon obtaining knowledge thereof.

 

GKK Manager LLC (including
its successors and assigns, the “Collateral Manager”) has advised us that one or more Events of Default may
occur under Section 5.1(j) of the Indenture due to the Class A/B Par Value Ratio being less than 89.0% on future Measurement
Dates (each such Event of Default, an “Applicable Event of Default”). Pursuant to Section 5.14 of the Indenture,
a Majority of the Controlling Class has the right to waive any Applicable Event of Default.

 

    	- 6 -

    	 

    

 

Page 2

 

************
(“************ is the Class A-2 Note Insurer. This letter is to advise you that ************ as the Class A-2 Note Insurer,
hereby waives (x) each Applicable Event of Default that may have occurred prior to the date of this letter and (y) immediately
upon the occurrence thereof, each Applicable Event of Default that may occur from (and including) the date of this letter until
the earlier of (1) January 30, 2014 and (2) the date, if any, on which written direction expressly revoking such waiver is provided
to the Trustee by ************ provided that any such direction to revoke shall not be made unreasonably or without good faith
on its part. ************ will continue to consider each subsequent Applicable Event of Default and determine whether or not to waive such
Applicable Event of Default or whether to exercise any other rights or remedies it has with respect to such Applicable Event of
Default. ************ reserves the right to revoke, subject to the requirement that it act reasonably and in good faith, or extend any
waiver at any time.

 

Upon the Trustee’s
execution and delivery of the attached acceptance of this letter agreement, this letter agreement will be the legal, valid and
binding agreement of ************ enforceable in accordance with its terms against ************ by the Trustee, except as such enforceability may
be limited by (i) bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and (ii) general
principles of equity. The foregoing agreement shall be governed by and construed in accordance with the laws of the State of New
York without regard to conflict of laws principles. ************ and the Trustee (the “Parties”) consent to the jurisdiction
of a state or federal court situated in New York City, New York in connection with any dispute hereunder. The Parties irrevocably
waive any objection each may now or hereafter have to venue in such court and any claim that a proceeding brought in such court
has been brought in an inconvenient forum. The Parties hereby expressly waive, to the full extent permitted by applicable law,
any right to trial by jury with respect to any judicial proceeding arising from or related to this letter agreement.

 

Should you have any
questions concerning this letter agreement, please contact Caroline Platt at (914) 765-3989.

 

Very truly yours,

 

Caroline Platt

Managing Director

******

 

Accepted
And Agreed as of the Date Hereof:

Wells Fargo Bank, National Association, as
Trustee

 

	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

 

    	- 7 -

    	 

    

 

Exhibit D

 

Form of CDO Issuer 2007 Direction Letter

 

************

 

[DATE]

 

Via Electronic Mail and Overnight Courier

 

To: The Parties Listed on Schedule A Hereto

 

		Re:	CREDIT DEFAULT SWAP TRANSACTION Reference #102 56 279 

relating to Gramercy Real Estate CDO 2007-1, Ltd. and Gramercy 

Real Estate CDO 2007-1 LLC

 

Ladies and Gentlemen:

 

Reference is made herein to the ISDA Master
Agreement, dated as of August 8, 2007 (the “ISDA Master”), between LaCrosse Financial Products, LLC (“LaCrosse”)
and ************ (“************ the Schedule thereto (the “ISDA Schedule”), dated as of August 8,
2007, and that certain confirmation thereunder titled Re: CREDIT DEFAULT SWAP TRANSACTION Reference #102 56 279 relating to Gramercy
Real Estate CDO 2007-1, Ltd. and Gramercy Real Estate CDO 2007-1 (the “Confirmation” and, together with the
ISDA Master and ISDA Schedule, the “ISDA Agreement”).

 

Pursuant to Section 9 of the Confirmation,
************ (“************ hereby directs ************ to:

 

(A) complete, and cause
a signatory with proper authority (and any other required authorization and approvals) to execute, the letter attached as Exhibit
I hereto, and (i) promptly (and, in any event, no later than 4:30p.m. EST on February 22, 2013) return three original copies
of such completed and executed letter to ************ at the address set forth on the signature line hereof and an executed copy to the
parties listed on Schedule A attached thereto and (ii) immediately (and, in any event, no later than 4:30p.m. EST on February 22,
2013) return an electronic copy of such completed and executed letter to ************ at the email address set forth on the signature line
hereof;

 

(B) complete, and cause
a signatory with proper authority (and any other required authorization and approvals) to execute, the ballot attached as Exhibit
II hereto, and (i) promptly (and, in any event, no later than 4:30p.m. EST on February [●], 2013) return such completed
and executed ballot to Wells Fargo Bank, National Association, as the trustee in accordance with the instructions set forth therein
and (ii) immediately (and, in any event, no later than 4:30p.m. EST on February [●], 2013) return an electronic copy of such
completed and executed ballot to ************ at the email address set forth on the signature line hereof; and

 

************

 

    	 

    	 

    

 

(C) either (i) deliver
(or cause to be delivered) to Wells Fargo Bank, National Association, as the trustee, no later than 4:30 pm (Eastern Standard Time)
on February [●], 2013 (or such later date and time provided by GKK Manager LLC), its consent to the proposed supplemental
indenture relating to Gramercy Real Estate CDO 2007-1, Ltd. or (ii) not deliver (or cause to be delivered) an objection to such
proposed supplemental indenture.

 

This letter shall be construed in accordance
with the laws of the State of New York (excluding provisions regarding conflicts of laws).

 

The sending of this letter should not be
construed to limit in any manner ************ or LaCrosse’s rights to exercise any and all other rights and remedies provided
for under the ISDA Agreement, any documents related thereto or applicable law.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	- 2 -

    	 

    

Very truly yours,

 

************

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

Address for notices:

 

    	- 3 -

    	 

    

 

Schedule A

 

    	- 4 -

    	 

    

 

Exhibit I

 

[DATE]

 

VIA FACSIMILE AND OVERNIGHT MAIL

 

To the Parties Listed on

Schedule A Attached Hereto

 

Re:     Gramercy Real Estate CDO 2007-1,
Ltd.

 

Dear Sir or Madam:

 

Reference is made to
the indenture, dated as of August 8, 2007 (as amended, modified or supplemented from time to time, the “Indenture”),
by and among Gramercy Real Estate CDO 2007-1, Ltd. (the “Issuer”), Gramercy Real Estate CDO 2007-1, LLC (the
“Co-Issuer”), GKK Liquidity LLC (including its successors and assigns, the “Advancing Agent”)
and Wells Fargo Bank, National Association (the “Trustee”). Capitalized terms used herein but not defined will
have the meanings ascribed to such terms in the Indenture.

 

************ London
Branch (“************ hereby represents and warrants to the Trustee that (i) as of the date of this letter, it was
the beneficial owner of Class A-1 Notes in an aggregate principal amount of approximately USD [335,730,542.31] (such Class A-1
Notes, the “************ Owned Notes”) and (ii) as of the date hereof, it is the beneficial owner of the ************ Owned Notes. Together,
the ************ Owned Notes and ************ as the Class A-2 Note Insurer constitute a Majority of the Controlling Class.
************ hereby agrees to provide prompt notice to the Trustee in the event that ************ ceases to be the beneficial owner of any ************ Owned
Notes.

 

We have been informed
that GKK Manager LLC (including its successors and assigns, the “Collateral Manager”) believes that one or more
Events of Default may occur under Section 5.1(j) of the Indenture due to the Class A/B Par Value Ratio being less than 89.0% on
future Measurement Dates (each such Event of Default, an “Applicable Event of Default”). Pursuant to Section
5.14 of the Indenture, a Majority of the Controlling Class has the right to waive any Applicable Event of Default.

 

This letter is to advise
you that ************ hereby waives (x) each Applicable Event of Default that may have occurred prior to the date of this letter and (y)
immediately upon the occurrence thereof, each Applicable Event of Default that may occur from (and including) the date of this
letter until the earlier of (1) January 30, 2014 and (2) the date, if any, on which written direction expressly revoking such waiver
is provided to the Trustee by ************ will continue to consider each subsequent Applicable Event of Default and determine whether
or not to waive such Applicable Event of Default or whether to exercise any other rights or remedies it has with respect to such
Applicable Event of Default. ************ reserves the right to revoke or extend any waiver at any time.

 

    	- 1 -

    	 

    

 

Upon the Trustee’s
execution and delivery of the attached acceptance of this letter agreement, this letter agreement will be the legal, valid and
binding agreement of ************ enforceable in accordance with its terms against ************ by the Trustee, except as such enforceability may
be limited by (i) bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and (ii) general
principles of equity. The foregoing agreement shall be governed by and construed in accordance with the laws of the State of New
York without regard to conflict of laws principles. ************ and the Trustee (the “Parties”) consent to the jurisdiction
of a state or federal court situated in New York City, New York in connection with any dispute hereunder. The Parties irrevocably
waive any objection each may now or hereafter have to venue in such court and any claim that a proceeding brought in such court
has been brought in an inconvenient forum. The Parties hereby expressly waive, to the full extent permitted by applicable law,
any right to trial by jury with respect to any judicial proceeding arising from or related to this letter agreement.

 

Should you have any questions regarding
this letter, please feel free to contact [        ] at [(    ) ____-_____].

 

Very truly yours,

 

[                   ]

 

Accepted
And Agreed as of the Date Hereof:

Wells Fargo Bank, National Association, as Trustee

 

	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

 

    	- 2 -

    	 

    

 

Schedule A

 

Wells Fargo Bank, National Association

9062 Old Annapolis Road, Columbia, Maryland 21045

Attention: CDO Trust Services — Gramercy Real Estate CDO 2007-1, Ltd.

 

GKK Manager LLC

c/o Gramercy Capital Corp.

420 Lexington Avenue, 18th Floor

New York, NY 10170

Attention: General Counsel

 

CWCapital Investments LLC

7501 Wisconsin Avenue, Suite 500West

Bethesda, MD 20814

Facsimile: (301) 255-4874

Attention: Charles Spetka

 

With a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue, Suite 500West

Bethesda, MD 20814

Attention: Daniel Warcholak

 

and

 

Clifford Chance US LLP

31 West 52nd Street

New York, NY 10019

Facsimile: (212) 878-8375

Attention: Steven T. Kolyer

 

Gramercy Real Estate CDO 2007-1, Ltd.

c/o MaplesFS Limited

P.O. Box 1093GT, Boundary Hall

Cricket Square, George Town

Grand Cayman

Cayman Islands

Attention: The Directors

Fax No.: (345) 945-7100

 

    	- 1 -

    	 

    

 

Gramercy Real Estate CDO 2007-1 LLC

c/o Gramercy Capital Corp.

420 Lexington Avenue, 18th Floor

New York, NY 10170

Attention: General Counsel

 

    	- 2 -

    	 

    

 

Exhibit II

 

BALLOT 

 

(for Class A-1 Noteholders only)

______________, 201__

 

Please
complete and sign the Ballot stating that you either approve or object to the Assignment and Assumption and send it by overnight
delivery and by fax to the Trustee by 4:30 pm (Eastern Standard Time) on February 28, 2013 at the following address:

 

Wells Fargo
Bank, National Association,

as Trustee

9062 Old
Annapolis Road

Columbia,
Maryland 21045

Attn.:
Maire Farrell

Phone:
410-884-6439

Fax: 1-866-373-0261

 

		Re:	(i) Collateral Management Agreement, dated as of August 8, 2007 (the “Existing
Collateral Management Agreement”), between Gramercy Real Estate CDO 2007-1, Ltd. (the “Issuer”)
and GKK Manager LLC (“GKKM”), as existing Collateral Manager (the “Existing Collateral Manager”),
and (ii) the Indenture, dated as of August 8, 2007, among the Issuer, Gramercy Real Estate CDO 2007-1 LLC (the “Co-Issuer”
and, together with the Issuer, the “Co-Issuers”), GKK Liquidity LLC, as advancing agent (the “Advancing
Agent”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), paying agent, calculation
agent, transfer agent, custodial securities intermediary, backup advancing agent and notes registrar (“Wells Fargo Bank”)
(as amended and supplemented, the “Indenture”)

 

Ladies and
Gentlemen:

 

Reference is made to
the Notice of Proposed Assignment and Assumption of Collateral Management Agreement and Request for Approval From Class A-1 Noteholders
and Class A-2 Note Insurer dated February [ ], 2013 from GKK Manager LLC, as Existing Collateral Manager (the “Notice”).
Capitalized terms used in this Ballot without definition are used as defined in the Notice or the Existing Collateral Management
Agreement or, if not defined therein, in the Indenture. The undersigned, the Holder (or such Holder’s proxyholder) of one
or more Class A-1 Notes as specified below as of February [ ], 2013 (the “Notice Record Date”), hereby acknowledges
that the undersigned has received a copy of the Notice.

 

If the undersigned
is a beneficial owner rather than a Holder, references herein to “Holder” shall be construed accordingly.

 

This is to certify
that the Person identified below is the beneficial owner (in the case of Global Securities) or the Holder of the aggregate face
amount of the Class A-1 Notes as specified below.

 

    	- 3 -

    	 

    

 

IN ADDITION TO SIGNING AND COMPLETING THIS
BALLOT, PLEASE CLEARLY INSERT THE AGGREGATE FACE AMOUNT OF THE CLASS A-1 NOTES AND CORRESPONDING CUSIP NUMBER THAT YOU HOLD
AND COMPLETE AND RETURN AN EXECUTED COPY OF THE “BENEFICIAL HOLDER INFORMATION FORM” ATTACHED HERETO.

 

	Note	
        Aggregate Face 

        Amount
	CUSIP*	 
	 	 	 	 
	Class  A-1 Notes	 	 	 
	
         

        Class  A-1 Rule 144A Global Securities
	$__________________	38500XAA0	 
	Class  A-1 Regulation S Global Securities	
         

        $__________________
	G40439AA2	 

 

 

* The Collateral
Manager shall not be responsible for the use of the CUSIP numbers selected, nor is any representation made herein as to their correctness
indicated in this Approval, the Notice or as printed on any Note. The numbers are included solely for the convenience of the Holders.

 

    	- 4 -

    	 

    

 

The undersigned
Beneficial Owner or Holder of the Class A-1 Notes, as of the Notice Record Date in connection with the Notice, hereby [please check
one]:

 

_____ approves the Assignment
and Assumption as referred to in the Notice.

 

_____ objects to the Assignment
and Assumption as referred to in the Notice.

 

	 	 	 
	 	Name of Holder*	 
	 	 	 
	 	 	 
	 	Name of Beneficial Owner	 
	 	 	 
	 	 	 
	 	Signature of Beneficial Owner or Holder	 
	 	or duly authorized signatory of Beneficial	 
	 	Owner or Holder	 

 

Medallion Guarantee Required:

  (U.S. Persons should affix stamp & signature; Non-U.S. Persons should provide notarization)

 

 

* In the
case of book entry Notes held through The Depository Trust Company (“DTC”), please insert the name submitted to DTC
for purposes of the securities listing position. In the case of Notes held in physical definitive form, please insert the name
as appears on such Notes.

 

    	- 5 -

    	 

    

 

BENEFICIAL HOLDER INFORMATION FORM

 

For Class A-1 Noteholders of:

Gramercy
real estate cdo 2007-1, ltd.

 

	Please complete the following and return to:
	Maire Farrell, Wells Fargo Bank, N.A., Specialized Asset Services, 9062 Old Annapolis Road, Columbia, MD 21045, Attn: Maire Farrell
	Fax: (866) 373-0261, Phone: (410) 884-6439, Email: maire.farrell@wellsfargo.com

 

Please check one.

 

		___	Beneficial Owner. The undersigned hereby represents and warrants that it is a beneficial
owner of the Notes, that the undersigned is authorized to provide direction for their pro rata portion owned and that such power
has not been granted nor assigned to any other party or person.

 

		___	Nominee or Advisor. The undersigned hereby represents and warrants that it is a nominee
or advisor for the beneficial owner, that the undersigned is authorized to provide direction for their pro rata portion owned and
that such power has not been granted nor assigned to any other party or person.

 

CLASS: _______________ 

 

CUSIP: ________________

 

ORIGINAL FACE AMOUNT: $_________________

 

NOMINEE NAME: _______________________

 

NOMINEE BANK (DTC Participant # if Applicable): _________________________

 

(The following information is important to facilitate
conference calls, if needed)

 

Beneficiary Company Name: ____________________________

Contact Name:

 

	Address:	 	 
	 	 	 
	 	 	 

 

	Phone:	 	 	Facsimile:	 
	E-mail:	 	 	 	 

 

	Signature:	 	 	Date: ______________

 

    	- 6 -

    	 

    

 

Exhibit E

 

Form of CDO Issuer 2007 First Consent
Letter

 

 

BALLOT 

 

(for Class A-1 Noteholders only)

______________, 201__

 

Please
complete and sign the Ballot stating that you either approve or object to the Assignment and Assumption and send it by overnight
delivery and by fax to the Trustee by 4:30 pm (Eastern Standard Time) on February 28, 2013 at the following address:

 

Wells Fargo
Bank, National Association,

as Trustee

9062 Old
Annapolis Road

Columbia,
Maryland 21045

Attn.:
Maire Farrell

Phone:
410-884-6439

Fax: 1-866-373-0261

 

		Re:	(i) Collateral Management Agreement, dated as of August 8, 2007 (the “Existing
Collateral Management Agreement”), between Gramercy Real Estate CDO 2007-1, Ltd. (the “Issuer”)
and GKK Manager LLC (“GKKM”), as existing Collateral Manager (the “Existing Collateral Manager”),
and (ii) the Indenture, dated as of August 8, 2007, among the Issuer, Gramercy Real Estate CDO 2007-1 LLC (the “Co-Issuer”
and, together with the Issuer, the “Co-Issuers”), GKK Liquidity LLC, as advancing agent (the “Advancing
Agent”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), paying agent, calculation
agent, transfer agent, custodial securities intermediary, backup advancing agent and notes registrar (“Wells Fargo Bank”)
(as amended and supplemented, the “Indenture”)

 

Ladies and
Gentlemen:

 

Reference is made to
the Notice of Proposed Assignment and Assumption of Collateral Management Agreement and Request for Approval From Class A-1 Noteholders
and Class A-2 Note Insurer dated February [ ], 2012 from GKK Manager LLC, as Existing Collateral Manager (the “Notice”).
Capitalized terms used in this Ballot without definition are used as defined in the Notice or the Existing Collateral Management
Agreement or, if not defined therein, in the Indenture. The undersigned, the Holder (or such Holder’s proxyholder) of one
or more Class A-1 Notes as specified below as of February [ ], 2012 (the “Notice Record Date”), hereby acknowledges
that the undersigned has received a copy of the Notice.

 

If the undersigned
is a beneficial owner rather than a Holder, references herein to “Holder” shall be construed accordingly.

 

This is to certify
that the Person identified below is the beneficial owner (in the case of Global Securities) or the Holder of the aggregate face
amount of the Class A-1 Notes as specified below.

 

    	- 1 -

    	 

    

 

IN ADDITION TO SIGNING AND COMPLETING THIS
BALLOT, PLEASE CLEARLY INSERT THE AGGREGATE FACE AMOUNT OF THE CLASS A-1 NOTES AND CORRESPONDING CUSIP NUMBER THAT YOU HOLD
AND COMPLETE AND RETURN AN EXECUTED COPY OF THE “BENEFICIAL HOLDER INFORMATION FORM” ATTACHED HERETO.

 

	Note	Aggregate Face 

Amount	CUSIP*	 
	Class  A-1 Notes	 	 	 
	 	 	 	 
	Class  A-1 Rule 144A Global Securities	$__________________	38500XAA0	 
	Class  A-1 Regulation S Global Securities	$__________________	G40439AA2	 

 

 

* The Collateral Manager shall not be responsible
for the use of the CUSIP numbers selected, nor is any representation made herein as to their correctness indicated in this Approval,
the Notice or as printed on any Note. The numbers are included solely for the convenience of the Holders.

  

    	- 2 -

    	 

    

 

The undersigned
Beneficial Owner or Holder of the Class A-1 Notes, as of the Notice Record Date in connection with the Notice, hereby [please check
one]:

 

_____ approves the Assignment
and Assumption as referred to in the Notice.

 

_____ objects to the Assignment
and Assumption as referred to in the Notice.

 

	 	 	 
	 	Name of Holder*	 
	 	 	 
	 	 	 
	 	Name of Beneficial Owner	 
	 	 	 
	 	 	 
	 	Signature of Beneficial Owner or Holder	 
	 	or duly authorized signatory of Beneficial 	 
	 	Owner or Holder	 

 

Medallion Guarantee Required:

(U.S. Persons should affix stamp & signature; Non-U.S. Persons should provide notarization)

 

 

* In the case of book entry Notes held
through The Depository Trust Company (“DTC”), please insert the name submitted to DTC for purposes of the securities
listing position. In the case of Notes held in physical definitive form, please insert the name as appears on such Notes.

  

    	- 3 -

    	 

    

  

BENEFICIAL HOLDER INFORMATION FORM

 

For Class A-1 Noteholders of:

Gramercy
real estate cdo 2007-1, ltd.

 

	Please complete the following and return to:
	Maire Farrell, Wells Fargo Bank, N.A., Specialized Asset Services, 9062 Old Annapolis Road, Columbia, MD 21045, Attn: Maire Farrell
	Fax: (866) 373-0261, Phone: (410) 884-6439, Email: maire.farrell@wellsfargo.com

 

Please check one.

 

		___	Beneficial Owner. The undersigned hereby represents and warrants that it is a beneficial
owner of the Notes, that the undersigned is authorized to provide direction for their pro rata portion owned and that such power
has not been granted nor assigned to any other party or person.

 

		___	Nominee or Advisor. The undersigned hereby represents and warrants that it is a nominee
or advisor for the beneficial owner, that the undersigned is authorized to provide direction for their pro rata portion owned and
that such power has not been granted nor assigned to any other party or person.

 

CLASS: _______________ 

 

CUSIP: _______________

 

ORIGINAL FACE AMOUNT: $ __________________

 

NOMINEE NAME: __________________

 

NOMINEE BANK (DTC Participant # if Applicable): __________________

 

(The following information is important to facilitate
conference calls, if needed)

 

Beneficiary Company Name: ___________________

Contact Name:

 

	Address:	 	 
	 	 	 
	 	 	 

 

	Phone: 	 	 	Facsimile: 	 
	E-mail: 	 	 	 	 

 

	Signature: 	 	 	Date: 	 	 

 

    	- 4 -

    	 

    

 

Exhibit F

 

Form of CDO Issuer 2007 Second Consent
Letter

 

 

************ BALLOT 

 

(for Class A-2 Note Insurer only)

______________, 201__

 

Please
complete and sign the Ballot stating that you either approve or object to the Assignment and Assumption and send it by overnight
delivery and by fax to the Trustee by 4:30 pm (Eastern Standard Time) on February 28, 2013 at the following address:

 

Wells Fargo
Bank, National Association,

as Trustee

9062 Old
Annapolis Road

Columbia,
Maryland 21045

Attn.:
Maire Farrell

Phone:
410-884-6439

Fax: 1-866-373-0261

 

		Re:	(i) Collateral Management Agreement, dated as of August 8, 2007 (the “Existing
Collateral Management Agreement”), between Gramercy Real Estate CDO 2007-1, Ltd. (the “Issuer”)
and GKK Manager LLC (“GKKM”), as existing Collateral Manager (the “Existing Collateral Manager”),
and (ii) the Indenture, dated as of August 8, 2007, among the Issuer, Gramercy Real Estate CDO 2007-1 LLC (the “Co-Issuer”
and, together with the Issuer, the “Co-Issuers”), GKK Liquidity LLC, as advancing agent (the “Advancing
Agent”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), paying agent, calculation
agent, transfer agent, custodial securities intermediary, backup advancing agent and notes registrar (“Wells Fargo Bank”)
(as amended and supplemented, the “Indenture”)

 

Ladies and
Gentlemen:

 

Reference is made to
the Notice of Proposed Assignment and Assumption of Collateral Management Agreement and Request for Approval From Class A-1 Noteholders
and Class A-2 Note Insurer dated February [ ], 2012 from GKK Manager LLC, as Existing Collateral Manager (the “Notice”).
Capitalized terms used in this ************ Ballot without definition are used as defined in the Notice or the Existing Collateral Management
Agreement or, if not defined therein, in the Indenture. The undersigned, the Class A-2 Note Insurer, hereby acknowledges that the
undersigned has received a copy of the Notice.

 

    	- 1 -

    	 

    

 

The undersigned
Class A-2 Note Insurer hereby [please check one]:

 

_____ approves the Assignment
and Assumption as referred to in the Notice.

 

_____ objects to the Assignment
and Assumption as referred to in the Notice.

 

	 	 	 
	 	************

	 

 

    	- 2 -

    	 

    

 

Exhibit G

 

Form of CDO Issuer 2007 Second Waiver
Letter

 

 

************

 

[DATE]

 

VIA FACSIMILE AND OVERNIGHT MAIL

 

To the Parties
Listed on Schedule A Attached Hereto

 

Re:   Gramercy
Real Estate CDO 2007-1, Ltd.

 

Dear Sir or Madam:

 

Reference is made to
the indenture, dated as of August 8, 2007 (as amended, modified or supplemented from time to time, the “Indenture”),
by and among Gramercy Real Estate CDO 2007-1, Ltd. (the “Issuer”), Gramercy Real Estate CDO 2007-1, LLC (the
“Co-Issuer”), GKK Liquidity LLC (including its successors and assigns, the “Advancing Agent”)
and Wells Fargo Bank, National Association (the “Trustee”). Capitalized terms used herein but not defined will
have the meanings ascribed to such terms in the Indenture.

 

************, London
Branch (“************”) hereby represents and warrants to the Trustee that (i) as of the date of this letter, it was
the beneficial owner of Class A-1 Notes in an aggregate principal amount of approximately USD [335,730,542.31] (such Class A-1
Notes, the “************ Owned Notes”) and (ii) as of the date hereof, it is the beneficial owner of the ************ Owned Notes. Together,
the ************ Owned Notes and ************ as the Class A-2 Note Insurer constitute a Majority of the Controlling Class.
************ hereby agrees to provide prompt notice to the Trustee in the event that ************ ceases to be the beneficial owner of any ************ Owned
Notes.

 

We have been informed
that GKK Manager LLC (including its successors and assigns, the “Collateral Manager”) believes that one or more
Events of Default may occur under Section 5.1(j) of the Indenture due to the Class A/B Par Value Ratio being less than 89.0% on
future Measurement Dates (each such Event of Default, an “Applicable Event of Default”). Pursuant to Section
5.14 of the Indenture, a Majority of the Controlling Class has the right to waive any Applicable Event of Default.

 

This letter is to advise
you that ************ hereby waives (x) each Applicable Event of Default that may have occurred prior to the date of this letter and (y)
immediately upon the occurrence thereof, each Applicable Event of Default that may occur from (and including) the date of this
letter until the earlier of (1) January 30, 2014 and (2) the date, if any, on which written direction expressly revoking such waiver
is provided to the Trustee by ************. ************ will continue to consider each subsequent Applicable Event of Default and determine whether
or not to waive such Applicable Event of Default or whether to exercise any other rights or remedies it has with respect to such
Applicable Event of Default. ************ reserves the right to revoke or extend any waiver at any time.

 

    	- 1 -

    	 

    

 

Upon the Trustee’s
execution and delivery of the attached acceptance of this letter agreement, this letter agreement will be the legal, valid and
binding agreement of ************ enforceable in accordance with its terms against ************ by the Trustee, except as such enforceability may
be limited by (i) bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and (ii) general
principles of equity. The foregoing agreement shall be governed by and construed in accordance with the laws of the State of New
York without regard to conflict of laws principles. ************ and the Trustee (the “Parties”) consent to the jurisdiction
of a state or federal court situated in New York City, New York in connection with any dispute hereunder. The Parties irrevocably
waive any objection each may now or hereafter have to venue in such court and any claim that a proceeding brought in such court
has been brought in an inconvenient forum. The Parties hereby expressly waive, to the full extent permitted by applicable law,
any right to trial by jury with respect to any judicial proceeding arising from or related to this letter agreement.

 

Should you have any questions regarding
this letter, please feel free to contact [        ] at [(    ) ____-_____].

 

Very truly yours,

 

[                   ]

 

Accepted
And Agreed as of the Date Hereof:

Wells Fargo Bank, National Association, as
Trustee

 

	By: 	 	 
	 	 	 
	Name: 	 	 
	 	 	 
	Title: 	 	 

 

    	- 2 -

    	 

    

 

Schedule A

 

Wells Fargo Bank, National Association

9062 Old Annapolis Road, Columbia, Maryland 21045

Attention: CDO Trust Services — Gramercy Real Estate CDO 2007-1, Ltd.

 

GKK Manager LLC

c/o Gramercy Capital Corp.

420 Lexington Avenue, 18th Floor

New York, NY 10170

Attention: General Counsel

 

CWCapital Investments LLC

7501 Wisconsin Avenue, Suite 500West

Bethesda, MD 20814

Facsimile: (301) 255-4874

Attention: Charles Spetka

 

With a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue, Suite 500West

Bethesda, MD 20814

Attention: Daniel Warcholak

 

and

 

Clifford Chance US LLP

31 West 52nd Street

New York, NY 10019

Facsimile: (212) 878-8375

Attention: Steven T. Kolyer

 

Gramercy Real Estate CDO 2007-1, Ltd.

c/o MaplesFS Limited

P.O. Box 1093GT, Boundary Hall

Cricket Square, George Town

Grand Cayman

Cayman Islands

Attention: The Directors

Fax No.: (345) 945-7100

 

    	- 3 -

    	 

    

 

Gramercy Real Estate CDO 2007-1 LLC

c/o Gramercy Capital Corp.

420 Lexington Avenue, 18th Floor

New York, NY 10170

Attention: General Counsel

 

    	- 4 -

    	 

    

 

Exhibit H

 

Form of CDO Issuer 2006 Direction Letter

 

 

************

 

[DATE]

 

Via Electronic Mail and Overnight Courier

 

To: ************, New York Branch

[______________________]

 

		Re:	CREDIT DEFAULT SWAP TRANSACTION Reference #[_____________] 

relating to Gramercy Real Estate CDO 2006-1, Ltd. and Gramercy 

Real Estate CDO 2006-1 LLC

 

Ladies and Gentlemen:

 

Reference is made herein to the ISDA Master
Agreement, dated as of [____________], 2006 (the “ISDA Master”), between LaCrosse Financial Products, LLC (“LaCrosse”)
and ************ New York Branch (“************ the Schedule thereto (the “ISDA Schedule”), dated as
of [____________], 2006, and that certain confirmation thereunder titled Re: CREDIT DEFAULT SWAP TRANSACTION Reference #[____________]
relating to Gramercy Real Estate CDO 2006-1, Ltd. and Gramercy Real Estate CDO 2006-1 (the “Confirmation” and,
together with the ISDA Master and ISDA Schedule, the “ISDA Agreement”).

 

Pursuant to Section [9] of the Confirmation,
************ (“************ hereby directs ************ to:

 

(A) complete, and cause
a signatory with proper authority (and any other required authorization and approvals) to execute, the ballot attached as Exhibit
I hereto, and (i) promptly (and, in any event, no later than 4:30p.m. EST on February [●], 2013) return such original ballot
to Wells Fargo Bank, National Association, as the trustee in accordance with the instructions set forth therein and (ii) immediately
(and, in any event, no later than 4:30p.m. EST on February [●], 2013) return an electronic copy of such completed and executed
ballot to ************ at the email address set forth on the signature line hereof; and

 

(B) either (i) deliver
(or cause to be delivered) to Wells Fargo Bank, National Association, as the trustee, no later than 4:30 pm (Eastern Standard Time)
on February [●], 2013 (or such later date and time provided by GKK Manager LLC), the consent of the Holders of U.S.$[_______________]
of Class A-1 Notes to the proposed supplemental indenture relating to Gramercy Real Estate CDO 2006-1, Ltd. or (ii) not deliver
(or cause to be delivered) an objection to such proposed supplemental indenture.

 

 

************  • 113 King Street •
Armonk, NY 10504 • +1 914 273 4545 • www.************.com

 

 

    	- 1 -

    	 

    

 

This letter shall be construed in accordance
with the laws of the State of New York (excluding provisions regarding conflicts of laws).

 

The sending of this letter should not be
construed to limit in any manner ************ or LaCrosse’s rights to exercise any and all other rights and remedies provided
for under the ISDA Agreement, any documents related thereto or applicable law.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	- 2 -

    	 

    

Very truly yours,

 

************

	By: 	 	 
	Name: 	 	 
	Title: 	 	 

 

Address for notices:

 

    	- 3 -

    	 

    

 

Exhibit I

 

BALLOT 

 

(for Class A-1 Noteholders only)

______________, 201__

 

Please
complete and sign the Ballot stating that you either approve or object to the Assignment and Assumption and send it by overnight
delivery and by fax to the Trustee by 4:30 pm (Eastern Standard Time) on February 28, 2013 at the following address:

 

Wells Fargo
Bank, National Association,

as Trustee

9062 Old
Annapolis Road

Columbia,
Maryland 21045

Attn.:
Maire Farrell

Phone:
410-884-6439

Fax: 1-866-373-0261

 

		Re:	(i) Collateral Management Agreement, dated as of August 24, 2006 (the “Existing
Collateral Management Agreement”), between Gramercy Real Estate CDO 2006-1, Ltd. (the “Issuer”)
and GKK Manager LLC (“GKKM”), as existing Collateral Manager (the “Existing Collateral Manager”),
and (ii) the Indenture, dated as of August 24, 2006, among the Issuer, Gramercy Real Estate CDO 2006-1 LLC (the “Co-Issuer”
and, together with the Issuer, the “Co-Issuers”), GKK Liquidity LLC, as advancing agent (the “Advancing
Agent”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), paying agent, calculation
agent, transfer agent, custodial securities intermediary, backup advancing agent and notes registrar (“Wells Fargo Bank”),
as amended and supplemented by the First Supplemental Indenture thereto, dated as of September 26, 2007, and the Second Supplemental
Indenture thereto, dated as of August 5, 2008, each among the Co-Issuers, the Advancing Agent and Wells Fargo Bank, and the Indenture
Amendment, dated as of October 28, 2010, among the Co-Issuers and the Existing Collateral Manager and acknowledged by Wells Fargo
Bank (as amended and supplemented, the “Indenture”)

 

Ladies and
Gentlemen:

 

Reference is made to
the Notice of Proposed Assignment and Assumption of Collateral Management Agreement and Request for Approval From Class A-1 Noteholders
dated February [● ], 2013 from GKK Manager LLC, as Existing Collateral Manager (the “Notice”). Capitalized
terms used in this Ballot without definition are used as defined in the Notice or the Existing Collateral Management Agreement
or, if not defined therein, in the Indenture. The undersigned, the Holder (or such Holder’s proxyholder) of one or more Class
A-1 Notes as specified below as of February [●], 2013 (the “Notice Record Date”), hereby acknowledges
that the undersigned has received a copy of the Notice.

 

    	- 4 -

    	 

    

 

If the undersigned
is a beneficial owner rather than a Holder, references herein to “Holder” shall be construed accordingly.

 

This is to certify
that the Person identified below is the beneficial owner (in the case of Global Securities) or the Holder of the aggregate face
amount of the Class A-1 Notes as specified below.

 

IN ADDITION TO SIGNING AND COMPLETING THIS
BALLOT, PLEASE CLEARLY INSERT THE AGGREGATE FACE AMOUNT OF THE CLASS A-1 NOTES AND CORRESPONDING CUSIP NUMBER THAT YOU HOLD
AND COMPLETE AND RETURN AN EXECUTED COPY OF THE “BENEFICIAL HOLDER INFORMATION FORM” ATTACHED HERETO.

 

	Note	Aggregate Face 

Amount	CUSIP*	 
	Class  A-1 Notes	 	 	 
	 	 	 	 
	Class  A-1 Rule 144A Global Securities	$__________________	38500VAA4	 

	Class  A-1 Regulation S Global Securities	$__________________	G40438AA4	 

 

 

* The Collateral Manager shall not be responsible for the use of the CUSIP numbers selected, nor is any representation made herein as to their correctness indicated in this Approval, the Notice or as printed on any Note. The numbers are included solely for the convenience of the Holders.

 

    	- 5 -

    	 

    

 

The undersigned
Beneficial Owner or Holder of the Class A-1 Notes, as of the Notice Record Date in connection with the Notice, hereby [please check
one]:

 

_____ approves the Assignment
and Assumption as referred to in the Notice.

 

_____ objects to the Assignment
and Assumption as referred to in the Notice.

 

	 	 	 
	 	Name of Holder*	 
	 	 	 
	 	 	 
	 	Name of Beneficial Owner	 
	 	 	 
	 	 	 
	 	Signature of Beneficial Owner or Holder	 
	 	or duly authorized signatory of Beneficial	 
	 	Owner or Holder	 

 

Medallion Guarantee Required:

(U.S. Persons should affix stamp & signature; Non-U.S. Persons should provide notarization)

 

 

 * In the case of book entry Notes held through The Depository Trust Company (“DTC”), please insert the name submitted to DTC for purposes of the securities listing position. In the case of Notes held in physical definitive form, please insert the name as appears on such Notes.

  

    	- 6 -

    	 

    

 

BENEFICIAL HOLDER INFORMATION FORM

 

For Class A-1 Noteholders of:

Gramercy
real estate cdo 2006-1, ltd.

 

	Please complete the following and return to:
	Maire Farrell, Wells Fargo Bank, N.A., Specialized Asset Services, 9062 Old Annapolis Road, Columbia, MD 21045, Attn: Maire Farrell
	Fax: (866) 373-0261, Phone: (410) 884-6439, Email: maire.farrell@wellsfargo.com

  

Please check one.

 

		___	Beneficial Owner. The undersigned hereby represents and warrants that it is a beneficial
owner of the Notes, that the undersigned is authorized to provide direction for their pro rata portion owned and that such power
has not been granted nor assigned to any other party or person.

 

		___	Nominee or Advisor. The undersigned hereby represents and warrants that it is a nominee
or advisor for the beneficial owner, that the undersigned is authorized to provide direction for their pro rata portion owned and
that such power has not been granted nor assigned to any other party or person.

 

CLASS: _______________ 

 

CUSIP: _______________

 

ORIGINAL FACE AMOUNT: $ _______________

 

NOMINEE NAME: _________________

 

NOMINEE BANK (DTC Participant # if Applicable): ___________________

 

(The following information is important to facilitate
conference calls, if needed)

 

Beneficiary Company Name: _____________________

Contact Name:

 

	Address:	 	 
	 	 	 
	 	 	 

 

	Phone: 	 	 	Facsimile: 	 
	E-mail: 	 	 	 	 

 

	Signature:	 	 	Date:	 	 

 

    	- 7 -

    	 

    

 

Exhibit I

 

Form of CDO Issuer 2006 Consent Letter

 

 

BALLOT 

 

(for Class A-1 Noteholders only)

______________, 201__

 

Please
complete and sign the Ballot stating that you either approve or object to the Assignment and Assumption and send it by overnight
delivery and by fax to the Trustee by 4:30 pm (Eastern Standard Time) on February 28, 2013 at the following address:

 

Wells Fargo
Bank, National Association,

as Trustee

9062 Old
Annapolis Road

Columbia,
Maryland 21045

Attn.:
Maire Farrell

Phone:
410-884-6439

Fax: 1-866-373-0261

 

		Re:	(i) Collateral Management Agreement, dated as of August 24, 2006 (the “Existing
Collateral Management Agreement”), between Gramercy Real Estate CDO 2006-1, Ltd. (the “Issuer”)
and GKK Manager LLC (“GKKM”), as existing Collateral Manager (the “Existing Collateral Manager”),
and (ii) the Indenture, dated as of August 24, 2006, among the Issuer, Gramercy Real Estate CDO 2006-1 LLC (the “Co-Issuer”
and, together with the Issuer, the “Co-Issuers”), GKK Liquidity LLC, as advancing agent (the “Advancing
Agent”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), paying agent, calculation
agent, transfer agent, custodial securities intermediary, backup advancing agent and notes registrar (“Wells Fargo Bank”),
as amended and supplemented by the First Supplemental Indenture thereto, dated as of September 26, 2007, and the Second Supplemental
Indenture thereto, dated as of August 5, 2008, each among the Co-Issuers, the Advancing Agent and Wells Fargo Bank, and the Indenture
Amendment, dated as of October 28, 2010, among the Co-Issuers and the Existing Collateral Manager and acknowledged by Wells Fargo
Bank (as amended and supplemented, the “Indenture”)

 

Ladies and
Gentlemen:

 

Reference is made to
the Notice of Proposed Assignment and Assumption of Collateral Management Agreement and Request for Approval From Class A-1 Noteholders
dated February [ ], 2012 from GKK Manager LLC, as Existing Collateral Manager (the “Notice”). Capitalized terms
used in this Ballot without definition are used as defined in the Notice or the Existing Collateral Management Agreement or, if
not defined therein, in the Indenture. The undersigned, the Holder (or such Holder’s proxyholder) of one or more Class A-1
Notes as specified below as of February [ ], 2012 (the “Notice Record Date”), hereby acknowledges that the undersigned
has received a copy of the Notice.

 

    	- 1 -

    	 

    

 

If the undersigned
is a beneficial owner rather than a Holder, references herein to “Holder” shall be construed accordingly.

 

This is to certify
that the Person identified below is the beneficial owner (in the case of Global Securities) or the Holder of the aggregate face
amount of the Class A-1 Notes as specified below.

 

IN ADDITION TO SIGNING AND COMPLETING THIS
BALLOT, PLEASE CLEARLY INSERT THE AGGREGATE FACE AMOUNT OF THE CLASS A-1 NOTES AND CORRESPONDING CUSIP NUMBER THAT YOU HOLD
AND COMPLETE AND RETURN AN EXECUTED COPY OF THE “BENEFICIAL HOLDER INFORMATION FORM” ATTACHED HERETO.

 

	Note	Aggregate Face 

Amount	CUSIP*	 
	Class  A-1 Notes	 	 	 
	 	 	 	 
	Class  A-1 Rule 144A Global Securities	$__________________	38500VAA4	 
	Class  A-1 Regulation S Global Securities	$__________________	G40438AA4	 

 

 

* The Collateral Manager shall not be
responsible for the use of the CUSIP numbers selected, nor is any representation made herein as to their correctness
indicated in this Approval, the Notice or as printed on any Note. The numbers are included solely for the convenience of the
Holders.

   

    	- 2 -

    	 

    

 

The undersigned
Beneficial Owner or Holder of the Class A-1 Notes, as of the Notice Record Date in connection with the Notice, hereby [please check
one]:

 

_____ approves the Assignment
and Assumption as referred to in the Notice.

 

_____ objects to the Assignment
and Assumption as referred to in the Notice.

 

	 	 	 
	 	Name of Holder*	 
	 	 	 
	 	 	 
	 	Name of Beneficial Owner	 
	 	 	 
	 	 	 
	 	Signature of Beneficial Owner or Holder	 
	 	or duly authorized signatory of Beneficial 	 
	 	Owner or Holder	 

 

Medallion Guarantee Required:

(U.S. Persons should affix stamp & signature; Non-U.S. Persons should provide notarization)

 

 

* In the case of book entry Notes held
through The Depository Trust Company (“DTC”), please insert the name submitted to DTC for purposes of the securities
listing position. In the case of Notes held in physical definitive form, please insert the name as appears on such Notes.

  

    	- 3 -

    	 

    

 

BENEFICIAL HOLDER INFORMATION FORM

 

For Class A-1 Noteholders of:

Gramercy
real estate cdo 2006-1, ltd.

 

	Please complete the following and return to:
	Maire Farrell, Wells Fargo Bank, N.A., Specialized Asset Services, 9062 Old Annapolis Road, Columbia, MD 21045, Attn: Maire Farrell
	Fax: (866) 373-0261, Phone: (410) 884-6439, Email: maire.farrell@wellsfargo.com

 

Please check one.

 

		___	Beneficial Owner. The undersigned hereby represents and warrants that it is a beneficial
owner of the Notes, that the undersigned is authorized to provide direction for their pro rata portion owned and that such power
has not been granted nor assigned to any other party or person.

 

		___	Nominee or Advisor. The undersigned hereby represents and warrants that it is a nominee
or advisor for the beneficial owner, that the undersigned is authorized to provide direction for their pro rata portion owned and
that such power has not been granted nor assigned to any other party or person.

 

CLASS: _______________ 

 

CUSIP: _______________

 

ORIGINAL FACE AMOUNT: $ _________________

 

NOMINEE NAME: _________________

 

NOMINEE BANK (DTC Participant # if Applicable): ___________________

 

(The following information is important to facilitate
conference calls, if needed)

 

Beneficiary Company Name: __________________

Contact Name:

 

	Address:	 	 
	 	 	 
	 	 	 

 

	Phone: 	 	 	Facsimile: 	 
	E-mail: 	 	 	 	 

 

	Signature:	 	 	Date:	 	 

 

    	- 4 -

    	 

    

 

Exhibit J

 

Form of CDO Issuer 2006 and CDO Issuer
2007 CMA Waiver Letter

  

************

 

[DATE]

 

CWCapital Investments LLC

7501 Wisconsin Avenue, Suite 500 West

Bethesda, MD 20814

Attention: Charles Spetka

 

With a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue, Suite 500 West

Bethesda, MD 20814

Attention: Legal Department

 

and

 

Clifford Chance US LLP

31 West 52nd Street

New York, NY 10019

Attention: Steven T. Kolyer

 

		Re:	Gramercy Real Estate CDO 2006-1 (the “Gramercy 2006 CDO”) and Gramercy Real Estate
CDO 2007-1 (the “Gramercy 2007 CDO” and, together with the Gramercy 2006 CDO, the “Transactions”)

 

Dear Charles:

 

We understand that pursuant
to certain proposed assignment and assumption agreements (the “Assumption and Assignment Agreements”) (i) GKK
Manager LLC (“GKKM”) proposes to assign the Gramercy 2006 CDO CMA and the Gramercy 2007 CDO CMA (each as defined
herein) to CWCapital Investments LLC (“CWCapital”) as successor collateral manager and (ii) CWCapital proposes
to assume, in each case, after the effective date of the Assignment and Assumption Agreements, GKKM’s rights and obligations
(to the extent set forth in the Assignment and Assumption Agreements) under each of the Gramercy 2006 CDO CMA, the Gramercy 2007
CDO CMA, the Gramercy 2006 Indenture (as defined herein), the Gramercy 2007 Indenture (as defined herein) and certain servicing
agreements, preferred shares paying agency agreements and securities account control agreements relating to the Transactions as
successor collateral manager (clauses (i) and (ii), the “Assignment and Assumption”).

 

    	 

    	 

    

 

In connection with the
Assignment and Assumption and in consideration of the terms and conditions set forth below, and in acknowledgement by ****** (“******”) and CWCapital that such terms and conditions constitute good and valuable consideration,
****** and CWCapital hereby agree as follows (the “Agreement”):

 

1.         Limited Agreement
to Resign as Collateral Manager of the Gramercy 2006 CDO and the Gramercy 2007 CDO. If (i) CW Financial Services LLC and its
direct and indirect wholly owned subsidiaries and affiliates, including CWCapital, have less than ten full-time employees, or
(ii) any direct or indirect parent company of CWCapital, or any other person who directly or indirectly is in control of CWCapital
(a) ceases to be able to, or admits in writing its inability to pay its debts when and as they become due, (b) files, or consents
by answer or otherwise to the filing against it of a petition for relief or reorganization or arrangement or any other petition
in bankruptcy, for liquidation or takes advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law
of any jurisdiction, (c) makes an assignment for the benefit of its creditors, (d) consents to the appointment of a custodian,
receiver, trustee or other officer with similar powers with respect to it or any substantial part of its property or (e) is adjudicated
as insolvent or to be liquidated (each of the events described in (i) or (ii) above, a “Resignation Event”)
– CWCapital shall, if directed to do so in writing by ******, resign as the collateral manager of the Gramercy 2006 CDO and/or
the Gramercy 2007 CDO; provided that, on and after June 16, 2016, this section shall cease to be of any further force
or effect and CWCapital shall have no further obligations under this Section 1.

 

2.         Limited Agreement
Not to Cause Removal of CWCapital as Collateral Manager of the Gramercy 2006 CDO. So long as (i) “cause” (as defined
in any of Sections 12(b)(i)-(v) or (viii) of the Collateral Management Agreement, dated as of August 24, 2006 (as amended, supplemented
or modified from time to time, the “Gramercy 2006 CDO CMA”), by and between CWCapital (successor-by-assignment
from GKKM) and Gramercy Real Estate 2006-1, Ltd.) does not exist, and (ii) there has not been a default in the payment of
principal on the Class A Notes (as defined in the Indenture, dated August 24, 2006 (as amended, supplemented or modified from time
to time, the “Gramercy 2006 CDO Indenture”, by and among Gramercy Real Estate CDO 2006-1, Ltd., Gramercy Real
Estate CDO 2006-1 LLC, GKK Liquidity LLC (including its successors and assigns) and Wells Fargo Bank, N.A.) when the same becomes
due and payable, and (iii) the Class A/B Par Value (as defined in the Gramercy 2006 CDO Indenture) is greater than 75% on
any Measurement Date (as defined in the Gramercy 2006 CDO Indenture), and (iv) no Resignation Event has occurred, ****** shall
NOT and shall cause its Affiliates, if applicable, to NOT (i) direct any counterparty to a swap agreement pursuant
to which ****** or any of its Affiliates provides credit protection on a note issued as part of the Gramercy 2006 CDO to take any
action that would cause or support the removal of CWCapital as the collateral manager of the Gramercy 2006 CDO or (ii) directly
or indirectly, vote in favor of or take any other action that would cause or support the removal of CWCapital as the collateral
manager of the Gramercy 2006 CDO; provided that, on and after June 16, 2016, this section shall cease to be of any further
force or effect and ****** shall have no further obligations under this Section 2.

 

    	- 2 -

    	 

    

 

3.           Limited Agreement
Not to Cause Removal of Gramercy as Collateral Manager of the Gramercy 2007 CDO. So long as (i) “cause” (as defined
in any of Sections 12(b)(i)-(v) or (viii) of the Collateral Management Agreement, dated as of August 8, 2007 (the “Gramercy
2007 CDO CMA”), by and between CWCapital (as successor-by-assignment from GKKM) and Gramercy Real Estate 2007-1, Ltd.)
does not exist, and (ii) there has not been a default in the payment of principal on the Class A Notes (as defined in the
Indenture, dated August 8, 2007 (the “Gramercy 2007 CDO Indenture”), by and among Gramercy Real Estate CDO 2007-1,
Ltd., Gramercy Real Estate CDO 2007-1 LLC, GKK Liquidity LLC (including its successors and assigns) and Wells Fargo Bank, N.A.)
when the same becomes due and payable, and (iii) the Class A/B Par Value Ratio (as defined in the Gramercy 2007 CDO Indenture)
is greater than 75% on any Measurement Date (as defined in the Gramercy 2007 CDO Indenture), and (iv) no Resignation Event
has occurred, ************ shall NOT and shall cause its Affiliates to NOT (i) direct any counterparty to a swap agreement
pursuant to which ************ or any of its Affiliates provides credit protection on a note issued as part of the Gramercy 2007 CDO to
take any action that would cause or support the removal of CWCapital as the collateral manager of the Gramercy 2007 CDO or (ii)
directly or indirectly, vote in favor of or take any other action that would cause or support the removal of CWCapital as the collateral
manager of the Gramercy 2007 CDO; provided that, on and after June 16, 2016, this section shall cease to be of any
further force and effect and ************ shall have no further obligations under this Section 3.

 

4.           Direction Letters.

 

(A)         So
long as (i) “cause” (as defined in any of Sections 12(b)(i)-(v) or (viii) of the Gramercy 2006 CDO CMA) does not exist,
and (ii) there has not been a default in the payment of principal on the Class A Notes (as defined in the Gramercy 2006
CDO Indenture) when the same becomes due and payable, and (iii) the Class A/B Par Value (as defined in the Gramercy 2006
CDO Indenture) is greater than 75% on any Measurement Date (as defined in the Gramercy 2006 CDO Indenture), and (iv) no Resignation
Event has occurred, following the occurrence of an event described in Section 12(b)(vi) and/or 12(b)(vii) of the Gramercy 2006
CDO CMA and if directed to do so in writing by CWCapital, ************ shall, and shall cause its Affiliates, if applicable, to (i) send
a letter in the form attached hereto as Exhibit A to any counterparty to a swap agreement (collectively, the “Gramercy
2006 CDO Swaps”) pursuant to which ************ or any of its Affiliates provides credit protection on a note issued as part of the
Gramercy 2006 CDO and (ii) subject to any and all confidentiality obligations of ************ notify Wells Fargo Bank, N.A. that
************ has not directed the counterparties to the Gramercy 2006 CDO Swaps to remove CWCapital as the collateral manager of the Gramercy
2006 CDO; provided that, on and after June 16, 2016, this section shall cease to be of any further force and effect and
************ shall have no further obligations under this Section 4(A).

 

    	- 3 -

    	 

    

 

 

(B)         So
long as (i) “cause” (as defined in any of Sections 12(b)(i)-(v) or (viii) of the Gramercy 2007 CDO CMA) does not exist,
and (ii) there has not been a default in the payment of principal on the Class A Notes (as defined in the Gramercy 2007
CDO Indenture) when the same becomes due and payable, and (iii) the Class A/B Par Value Ratio (as defined in the Gramercy
2007 CDO Indenture) is greater than 75% on any Measurement Date (as defined in the Gramercy 2007 CDO Indenture), and (iv)
no Resignation Event has occurred, following the occurrence of an event described in Section 12(b)(vi) and/or 12(b)(vii) of the
Gramercy 2007 CDO CMA and if directed to do so in writing by CWCapital, ************ shall and shall cause its Affiliates, if applicable,
to (i) send a letter in the form attached hereto as Exhibit A, to any counterparty to a swap agreement (collectively, the
“Gramercy 2007 CDO Swaps”) pursuant to which ************ or any of its Affiliates provides credit protection on a note issued
as part of the Gramercy 2007 CDO and (ii) subject to any and all confidentiality obligations of ************ notify Wells Fargo
Bank, N.A., that ************ has not directed the counterparties to the Gramercy 2007 CDO Swaps to remove CWCapital as the collateral
manager of the Gramercy 2007 CDO; provided that, on and after June 16, 2016, this section shall cease to be of any further
force and effect and ***** shall have no further obligations under this Section 4(B).

 

5.           Remedies.

 

(A)         It
is understood and agreed by ************ that CWCapital would be irreparably injured by a breach of the foregoing Sections 2 and/or 3 of
this Agreement by ************ that money damages would not be sufficient remedy for any such breach and that CWCapital shall be entitled
to equitable relief, including injunctive relief and specific performance, as a remedy for any such breach (which shall be in addition
to all other remedies available at law and equity to CWCapital).

 

(B)         It
is understood and agreed by CWCapital that ************ would be irreparably injured by a breach of the foregoing Section 1 of this Agreement
by CWCapital, that money damages would not be sufficient remedy for any such breach and that the ************ Parties shall be entitled
to equitable relief, including injunctive relief and specific performance, as a remedy for any such breach (which shall be in addition
to all other remedies available at law and equity to ************

 

6.          Confidentiality.
Notwithstanding anything in this Agreement to the contrary, each party hereto acknowledges and agrees that it shall hold in confidence,
and shall use its commercially reasonable efforts to safeguard, the terms of, and the existence of, this Agreement from disclosure
to anyone; provided that, each party may disclose any of the terms of, or the existence of, this Agreement as is necessary or advisable
to its directors, officers, trustees, managers, employees, agents, attorneys and affiliates on a need to know basis, its financial
advisors and other professional advisors who agree to hold confidential such information substantially in accordance with the terms
of this Section 6, in communications or filings made with auditors retained by either party, any regulators (whether domestic or
foreign), as may be necessary or advisable under applicable law, or to rating agencies, bondholders, trustee(s) and hedge counterparties
on a need to know basis.

 

7.          Voluntary Agreement.
Each party hereto acknowledges that it has read this Agreement and understands its contents. Each party hereto further acknowledges
and agrees that it is signing this Agreement voluntarily, after good-faith, arm’s-length negotiations, after having had a
full and fair opportunity to consult with counsel and/or other professional advisors of its choice ̧ and with the intent to
be legally bound by all the terms contained in this Agreement. In the event that any provision of this Agreement is determined
to be ambiguous, it shall not be construed against any party hereto.

 

    	- 4 -

    	 

    

 

8.           Authority.
Each party executing this Agreement, including any individual executing this Agreement on behalf of any party, expressly warrants
and represents that such party has all necessary power and authority to do so.

 

9.           No Assurances
as to Credit Protection. For the avoidance of doubt, ************ cannot (and expressly does not) provide any assurances whatsoever
that: (i) ************ will continue to provide any credit protection on notes issued as part of the Gramercy 2006 CDO or the Gramercy
2007 CDO; or (ii) any party to which ************ provides credit protection will comply with any instruction given by ************

 

10.         Integration.
This Agreement represents, contains and constitutes the entire understanding and agreement between the parties hereto relating
to its subject matter and supersedes all previous discussions, negotiations, representations, agreements or commitments, whether
written or oral, relating to its subject matter. Except as expressly stated herein, this Agreement does not in any way alter or
affect the rights and obligations of any party hereto under any other agreement.

 

11.         No Oral Modifications.
This Agreement may not be modified, supplemented or amended in any way except in a writing specifically referring to this Agreement
and executed by the parties hereto. No right of any party under this Agreement may be waived except through a writing signed by
the party waiving that right.

 

12.         No Waiver.
No course of dealing, failure or delay by any party hereto in exercising, in whole or in part, any right under this Agreement or
any other agreement shall waive or impair such or any other right under this Agreement, or in any manner preclude its additional
or future exercise.

 

13.         Headings.
Headings herein are inserted for convenience and do not constitute a part of this Agreement. No heading shall be admissible for
the purpose of proving the intent of the parties.

 

14.         Choice of Law.
This Agreement and all matters arising out of or relating to this Agreement (whether in contract, tort or otherwise) shall be governed
by and construed in accordance with the laws of the State of New York, without regard to conflict-of-law principles,

 

15.         Forum Selection.
If any party hereto commences a suit, action or proceeding arising out of or relating to this Agreement, each of the parties irrevocably
agrees that the United States District Court for the Southern District of New York shall have exclusive jurisdiction to hear and
determine any such suit, action or proceeding and, for such purposes, irrevocably submits to the jurisdiction of such court. If
the United States District Court for the Southern District of New York lacks federal subject matter jurisdiction with respect to
any such suit, action or proceeding, each of the parties hereto irrevocably agrees that any state court sitting in the City of
New York shall have exclusive jurisdiction to hear and determine any such suit, action or proceeding and, for such purposes, irrevocably
submits to the jurisdiction of such courts. Each of the parties hereto irrevocably and unconditionally waives any objection to
the laying of venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or
proceeding has been brought in an inconvenient forum.

 

    	- 5 -

    	 

    

 

16.         Waiver of Jury
Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

17.         No Third Party
Beneficiaries. This Agreement is solely for the benefit of the parties hereto, and their successors and assigns, and no other
person shall acquire or have any rights under or by virtue of this Agreement.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	- 6 -

    	 

    

 

If you agree with the
foregoing, please sign where indicated below.

 

	 	Very truly yours,	 
	 	 	 
	 	 	 
	 	************	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title:	 

 

Agreed to by:

 

CWCapital Investments LLC

 

	 	 
	Name:	 
	 	 
	Title:	 

 

    	- 7 -

    	 

    

 

Exhibit A

Form of Letter from ***** to Controlling Class Note Holders

[***** LETTERHEAD]

 

Via Overnight Delivery

 

Date

 

[Name of Counterparty (“________”)]

[Notice Address of Counterparty]

Attention: [Name of Counterparty Notice Party]

 

		Re:	Swap Agreement relating to the Gramercy Real Estate CDO 200[7][6]-1

 

[Name of Holder Notice Party]:

 

Reference is made to (i) that certain ISDA
Master Agreement, the Schedule thereto and the Confirmation thereunder, each between LaCrosse Financial Products, LLC (the “Seller”)
and [COUNTERPARTY] (the “Buyer”) and dated [DATE] (collectively, the “Swap Agreement”), and
(ii) that certain collateral management agreement (as amended, supplemented or modified from time to time, the “Collateral
Management Agreement”) between CWCapital Investments LLC (successor-by-assignment to GKK Manager LLC), as Collateral
Manager (the “Collateral Manager”), and Gramercy Real Estate CDO 200[7][6]-1, Ltd. (the “Issuer”),
dated [DATE]. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Swap Agreement
or the Collateral Management Agreement, as applicable.

 

As you may be aware, an event has occurred
that constitutes “cause” for the removal of the Collateral Manager under Section 12(b)[(vi) / (vii)] of the Collateral
Management Agreement. Pursuant to Section 9 of the Swap Agreement, the Buyer must abstain, or procure that the holders of the relevant
principal amount of the Reference Obligation abstain, from exercising any rights under the Reference Obligation that would cause
the removal of the Collateral Manager unless the Seller directs otherwise. At this time, the Seller is not
directing the Buyer to take any action that would cause the removal of the Collateral Manager. An Additional Termination Event
will occur under the Swap Agreement if the Buyer fails to comply with Section 9 thereof.

 

For the avoidance of doubt, the Seller
hereby reserves all of its rights, privileges and remedies with respect of the Swap Agreement.

 

	 	Sincerely yours,
	 	 
	 	LaCrosse Financial Products, LLC
	 	 
	 	BY:	 
	 	 	Name:
	 	 	Title:

 

    	- 8 -

    	 

    

 

 

Exhibit K

 

 

 

Form of CDO Issuers Letter Agreement

 

 

AGREEMENT

 

Reference is made to
(i) Gramercy Real Estate CDO 2006-1 (the “Gramercy 2006 CDO”) and Gramercy Real Estate CDO 2007-1 (the “Gramercy
2007 CDO” and, together with the Gramercy 2006 CDO, the “Gramercy CDO Transactions”); (ii) the Collateral
Management Agreement, dated as of August 24, 2006 (the “Existing Gramercy 2006 CDO CMA”), between Gramercy Real
Estate CDO 2006-1, Ltd. (the “CDO Issuer 2006”) and GKK Manager LLC (“GKKM”), as existing
Collateral Manager, (iii) the Indenture, dated as of August 24, 2006, among the CDO Issuer 2006, Gramercy Real Estate CDO 2006-1
LLC (together with the CDO Issuer 2006, the “CDO Co-Issuers 2006”), GKK Liquidity LLC, as advancing agent (the
“Advancing Agent”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”),
paying agent, calculation agent, transfer agent, custodial securities intermediary, backup advancing agent and notes registrar
(“Wells Fargo Bank”), as amended and supplemented by the First Supplemental Indenture thereto, dated as of September
26, 2007, and the Second Supplemental Indenture thereto, dated as of August 5, 2008, each among the CDO Co-Issuers 2006, the Advancing
Agent and Wells Fargo Bank, and the Indenture Amendment, dated as of October 28, 2010, among the CDO Co-Issuers 2006 and GKKM and
acknowledged by the Trustee (as amended and supplemented, the “Gramercy 2006 CDO Indenture”), (iv) the Collateral
Management Agreement, dated as of August 8, 2007 (the “Existing Gramercy 2007 CDO CMA” and, together with the
Existing Gramercy 2006 CDO CMA, the “Existing CMAs”) between Gramercy Real Estate CDO 2007-1, Ltd. (the “CDO
Issuer 2007” and, together with CDO Issuer 2006, the “Issuers”) and GKKM and (v) the Indenture, dated
as of August 8, 2007, among the CDO Issuer 2007, Gramercy Real Estate CDO 2007-1 LLC (together with the CDO Issuer 2007, the “CDO
Co-Issuers 2007”), the Advancing Agent and Wells Fargo Bank (as amended and supplemented, the “Gramercy 2007
CDO Indenture” and, together with the Gramercy 2006 Indenture, the “Indentures”). All terms not defined
herein shall have the same meaning ascribed to such terms in the Existing CMAs for each of the Gramercy CDO Transactions, as applicable,
or, if not defined therein, in the Indentures for each of the Gramercy CDO Transactions, as applicable.

 

WHEREAS, pursuant to
certain proposed assignment and assumption agreements substantially in the form attached hereto as Exhibit A (the “Assignment
and Assumption Agreements”), (i) GKKM proposes to assign the Existing CMAs to CWCapital Investments LLC (“CWCapital”)
as successor collateral manager (together with its successors and assigns, the “Successor Collateral Manager”)
and (ii) CWCapital proposes to assume, after the effective date of such assignment and to the extent set forth in the Assignment
and Assumption Agreements, GKKM’s rights and obligations under each of the Existing CMAs, the Indentures and certain servicing
agreements relating to the Gramercy CDO Transactions as Successor Collateral Manager (clauses (i) and (ii) hereinafter referred
to as the “Assignment and Assumption”);

 

WHEREAS, GKKM also proposes
to cause the Issuers to enter into supplemental indentures (such supplemental indentures substantially in the form attached hereto
as Exhibit B), in order to permit the Issuers to have one or more special purpose subsidiaries solely for the purpose of
holding title to any property obtained in connection with any foreclosure or other similar proceeding on, or any transfer in lieu
thereof of, any property securing any Collateral Debt Security, or by transfer of any property held by any Person on behalf of
the Issuers which previously secured any Collateral Debt Security whether or not then outstanding (each such supplemental indenture
hereinafter referred to as an “Indenture Amendment”, and, the Indenture Amendments together with the Assignment
and Assumption, the “Transaction”); and

 

    	- 9 -

    	 

    

 

WHEREAS, the targeted
effective date for the Transaction is on or before March 15, 2013 but no later than the second Business Day following the date
on which all of the conditions to the Transaction have been satisfied or waived (except for any conditions that by their nature
can only be satisfied on the effective date, but subject to the satisfaction or waiver of such conditions) (the “Target
Date”).

 

In connection with the
Transaction and in consideration of the terms and conditions set forth below, and in acknowledgment by ***** (“*****”),
GKKM and CWCapital that such terms and conditions constitute good and valuable consideration, *****, GKKM and CWCapital hereby
agree as follows (the “Agreement”):

 

1.          *****
Directions Related to the Gramercy 2006 CDO. So long as ***** provides ***** (“*****”) with credit protection
on Class A-1 Notes issued as part of the Gramercy 2006 CDO (the outstanding principal amount of such Class A-1 Notes subject to
*****’s credit protection, the “2006 Insured Amount”), ***** shall deliver (or cause to be delivered)
one or more direction letters to *****, substantially in the form attached hereto as Exhibit C, instructing it to:

 

(i)          deliver
(or cause to be delivered) to Wells Fargo Bank, National Association, as Trustee, no later than 4:30 pm (Eastern Standard Time)
on February [●], 2013 (or such later date and time provided by GKKM), the consent of the Holders of the 2006 Insured Amount
to the Assignment and Assumption relating to the CDO Issuer 2006 as evidenced on the ballot attached hereto as Exhibit D
(the “CDO Issuer 2006 Class A-1 Assignment Consent”); and

 

(ii)         either
(x) deliver (or cause to be delivered) to Wells Fargo Bank, National Association, as Trustee, no later than 4:30 pm (Eastern Standard
Time) on February [●], 2013 (or such later date and time provided by GKKM), the consent of the Holders of the 2006 Insured
Amount to the Indenture Amendment relating to the Gramercy 2006 CDO Indenture (the “CDO Issuer 2006 Class A-1 Indenture
Consent”) or (y) not deliver (or cause to be delivered) an objection to such Indenture Amendment.

 

2.          *****
Directions Related to the Gramercy 2007 CDO. So long as ***** provides ***** (“*****”) with credit protection on
Class A-1 Notes issued as part of the Gramercy 2007 CDO (the outstanding principal amount of such Class A-1 Notes subject to *****’s
credit protection, the “2007 Insured Amount”), ***** shall deliver (or cause to be delivered) one or more direction
letters to *****, substantially in the form attached hereto as Exhibit E, instructing it to: 

 

(i)          deliver
(or cause to be delivered) to Wells Fargo Bank, National Association, as Trustee, no later than 4:30 pm (Eastern Standard Time)
on February [●], 2013 (or such later date and time provided by GKKM) the consent of the Holders of the 2007 Insured Amount
to the Assignment and Assumption relating to the CDO Issuer 2007 as evidenced on the ballot attached hereto as Exhibit F
(the “CDO Issuer 2007 Class A-1 Assignment Consent”);

 

    	- 10 -

    	 

    

 

(ii)         
either (x) deliver (or cause to be delivered) to Wells Fargo Bank, National Association, as Trustee, no later than 4:30 pm (Eastern
Standard Time) on February [●], 2013 (or such later date and time provided by GKKM), the consent of the Holders of the
2007 Insured Amount to the Indenture Amendment relating to the Gramercy 2007 CDO Indenture (the “CDO Issuer 2007 Class
A-1 Indenture Consent”) or (y) not deliver (or cause to be delivered) an objection to such Indenture Amendment; and

 

(iii)        deliver
(or cause to be delivered) to Wells Fargo Bank, National Association, as Trustee, the CDO Co-Issuers 2007, GKKM and CWCapital,
no later than 4:30 pm (Eastern Standard Time) on February 22, 2013 (or such later date and time provided by GKKM) a letter executed
by *****, in substantially the form attached hereto as Exhibit G (the “CDO Issuer 2007 ***** Waiver Letter”),
waiving one or more Events of Default under the Gramercy 2007 CDO Indenture until the earlier of (1) January 30, 2014 and (2) the
date, if any, on which written direction expressly revoking such waiver is provided to the Trustee by *****.

 

3.          *****
Consents Related to the Gramercy 2007 CDO. *****, as the Class A-2 Note Insurer under the Gramercy 2007 CDO Indenture, shall:

 

(i)          (A)
deliver (or cause to be delivered) to Wells Fargo Bank, National Association, as Trustee, no later than 4:30 pm (Eastern Standard
Time) on February [●], 2013 (or such later date and time provided by GKKM) *****’s consent to the Assignment and Assumption
relating to the CDO Issuer 2007 as evidenced on the ballot attached hereto as Exhibit H (the “CDO Issuer 2007 *****
Assignment Consent”), and (B) not deliver (or cause to be delivered) an objection to the Indenture Amendment relating
to the Gramercy 2007 CDO Indenture (the “CDO Issuer 2007 ***** Indenture Consent”); and

 

(ii)         deliver
(or cause to be delivered) to GKKM and CWCapital, no later than 4:30 pm (Eastern Standard Time) on February 22, 2013 (or such later
date and time provided by GKKM) a letter executed by *****, substantially in the form attached hereto as Exhibit I (the “CDO
Issuer 2007 ***** Waiver Letter”), waiving one or more Events of Default under the Gramercy 2007 CDO Indenture until the
earlier of (A) January 30, 2014 or and (B) the date, if any, on which written direction expressly revoking such waiver is provided
to the Trustee by *****.

 

4.          CMA
Waiver Letter. ***** and CWCapital shall execute and deliver (or cause to be delivered), no later than 4:30 pm (Eastern Standard
Time) on February [●], 2013 (or such later date and time provided by GKKM), a letter agreement, substantially in the form
attached hereto as Exhibit J (the “CDO Issuer 2006 and CDO Issuer 2007 CMA Waiver Letter”).

 

5.          *****
Consent Fee. In consideration for *****’s performance of its obligations hereunder, GKKM shall pay ***** an aggregate consent
fee of $500,000 (the “Consent Fee”) for both Gramercy CDO Transactions, payable upon the completion of the Transaction;
provided, however, that payment of the Consent Fee is conditioned upon the completion of the Transaction and *****’s
execution and delivery of the waiver and direction letters described in sections 1 to 4 above no later than the date specified
herein. The Consent Fee will be paid by GKKM directly to ***** and will not be borne by the Gramercy CDO Transactions.

 

    	- 11 -

    	 

    

 

6.          Voluntary
Agreement. Each party hereto acknowledges that it has read this Agreement and understands its contents. Each party hereto further
acknowledges and agrees that it is signing this Agreement voluntarily, after good-faith, arms-length negotiations, after having
had a full and fair opportunity to consult with counsel and/or other professional advisors of its choice, and with the intent to
be legally bound by all the terms contained in this Agreement. In the event that any provision of this Agreement is determined
to be ambiguous, it shall not be construed against any party hereto.

 

7.          Authority.
Each party executing this Agreement, including any individual executing this Agreement on behalf of any party, expressly warrants
and represents that such party has all necessary power and authority to do so.

 

8.          No
Assurances as to Credit Protection. For the avoidance of doubt, ***** cannot (and expressly does not) provide any assurances
whatsoever that (i) ***** will continue to provide (A) ***** with credit protection on Class A-1 Notes issued as part of the Gramercy
2006 CDO or (B) ***** with credit protection on Class A-1 Notes issued as part of the Gramercy 2007 CDO; or (ii) ***** or *****
will comply with any instruction given by *****. 

 

9.          Integration.
This Agreement represents, contains and constitutes the entire understanding and agreement between the parties hereto with respect
to its subject matter and supersedes all previous discussions, negotiations, representations, agreements or commitments, whether
written or oral, relating to its subject matter. Except as expressly stated herein, this Agreement does not in any way alter or
affect the rights and obligations of any party hereto under any other agreement. 

 

10.         No
Oral Modifications. This Agreement may not be modified, supplemented or amended in any way except in a writing specifically
referring to this Agreement and executed by the parties hereto. No right of any party under this Agreement may be waived except
through a writing signed by the party waiving that right.

 

11.         No
Waiver. No course of dealing, failure or delay by any party hereto in exercising, in whole or in part, any right under this
Agreement or any other agreement shall waive or impair such or any other right under this Agreement, or in any manner preclude
its additional or future exercise.

 

12.         Headings.
Headings herein are inserted for convenience and do not constitute a part of this Agreement. No heading shall be admissible for
the purpose of proving the intent of the parties.

 

13.         Choice
of Law. This Agreement and all matters arising out of or relating to this Agreement (whether in contract, tort or otherwise)
shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict-of-law principles.

 

14.         Forum
Selection. If any party hereto commences a suit, action or proceeding arising out of or relating to this Agreement, each of
the parties irrevocably agrees that the United States District Court for the Southern District of New York shall have exclusive
jurisdiction to hear and determine any such suit, action or proceeding and, for such purposes, irrevocably submits to the jurisdiction
of such court. If the United States District Court for the Southern District of New York lacks federal subject matter jurisdiction
with respect to any such suit, action or proceeding, each of the parties hereto irrevocably agrees that any state court sitting
in the City of New York shall have exclusive jurisdiction to hear and determine any such suit, action or proceeding and, for such
purposes, irrevocably submits to the jurisdiction of such courts. Each of the parties hereto irrevocably and unconditionally waives
any objection to the laying of venue of any such suit, action or proceeding brought in any such court and any claim that any such
suit, action or proceeding has been brought in an inconvenient forum. 

 

    	- 12 -

    	 

    

 

15.         Waiver
of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

16.         No
Third Party Beneficiaries. This Agreement is solely for the benefit of the parties hereto, and their successors and assigns,
and no other person shall acquire or have any rights under or by virtue of this Agreement.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

    	- 13 -

    	 

    

 

If you agree with the
foregoing, please sign where indicated below.

 

	 	 	 	 
	 	 	*****	 
	 	 	 	 
	 	 	Name: 	 
	 	 	 	 
	 	 	Title:	 
	 	 	 	 
	 	Acknowledged and agreed by:	 	 
	 	 	 	 
	 	 	 	 
	 	 	GKK Manager LLC	 
	 	 	 	 
	 	 	Name: 	 
	 	 	 	 
	 	 	Title:	 
	 	 	 	 
	 	 	 	 
	 	 	CWCapital Investments LLC	 
	 	 	 	 
	 	 	Name: 	 
	 	 	 	 
	 	 	Title:	 

 

    	- 14 -

    	 

    

 

Exhibit A

Form of Assignment and Assumption Agreements

 

    	- 15 -

    	 

    
 

Assignment And Assumption
Agreement

 

among

 

GKK Manager LLC,

as Existing Collateral Manager,

 

CWCapital
Investments LLC,

as Successor Collateral Manager,

 

And

 

Gramercy Real Estate CDO
2006-1, LTD.,

as Issuer

 

Dated as of [●],
2013

 

    	- 16 -

    	 

    

 

Assignment And Assumption
Agreement

 

This Assignment
And Assumption Agreement, dated as of [●], 2013 (this “Agreement”), by and among GKK Manager LLC,
a Delaware limited liability company (the “Existing Collateral Manager”), CWCapital Investments LLC, a Massachusetts
limited liability company (together with its successors and assigns, the “Successor Collateral Manager” or “CWCapital”),
and Gramercy Real Estate CDO 2006-1, Ltd., an exempted Cayman Islands company (together with its successors and assigns, the “Issuer”).

 

RECITALS:

 

WHEREAS, the Existing
Collateral Manager has certain rights as the collateral manager pursuant to the CDO Agreements (as defined herein), including rights
to receive collateral management fees and other amounts payable to the Existing Collateral Manager and rights to remove and appoint
special servicers for the CDO Issuer Assets (as defined herein) pursuant to the CDO Agreements (all such rights, the “Existing
Collateral Manager Rights”);

 

WHEREAS, the Existing
Collateral Manager has (i) certain liabilities and obligations arising out of the Transferred Assets (as defined in the Sale and
Purchase Agreement defined below) to the extent such liabilities or obligations arise in respect of the management of the Issuer
or servicing of the CDO Issuer Assets under the terms of the CDO Agreements after the Closing (as defined herein) and (ii) certain
liabilities and obligations arising under the terms of the CDO Agreements (such liabilities and obligations, to the extent, and
only to the extent, that they arise in respect of the management of the Issuer or servicing of the CDO Issuer Assets after the
Closing; provided, that for the avoidance of doubt, such liabilities and obligations shall not include (x) any liabilities,
obligations or covenants of the Sellers (including the Existing Collateral Manager) under the Sale and Purchase Agreement (including
with respect to transactions to be effected at the Closing under Section 1.04 thereof and in respect of the Related CDO Assets
(as defined therein under Section 1.06 thereof)) and (y) any liabilities, obligations or covenants of the Sellers (including the
Existing Collateral Manager) in connection with the Jameson Proceedings as defined in the Sale and Purchase Agreement, the Wells
Fargo Indemnity Letter (as defined herein), or the matters disclosed in Schedules 3.01(c) and 3.01(d) of the Sale and Purchase
Agreement as applicable, whether arising before, on or after the Closing Date (as defined herein) (collectively, the “Assumed
Liabilities”);

 

WHEREAS, in accordance
with the terms and subject to the conditions of this Agreement and the Sale and Purchase Agreement, dated as of January 30, 2013,
among the Existing Collateral Manager, Gramercy Investment Trust, Gramercy Investment Trust II, Gramercy Loan Services LLC, GKK
Liquidity LLC, CWCapital and solely for the purposes of Articles IX and X thereof, Gramercy Capital Corp., and solely for the purposes
of Articles IX and X thereof, CW Financial Services LLC (the “Sale and Purchase Agreement”), the Existing Collateral
Manager desires to (i) sell, assign, transfer and deliver to the Successor Collateral Manager (A) free and clear of Liens (other
than Permitted Liens as defined in the Sale and Purchase Agreement) all of the Existing Collateral Manager Rights, excluding any
rights to receive the Outstanding GKKM Special Servicing Advance Amount (as defined herein), and (B) all defenses, counterclaims
and set-off rights that would have been available to the Existing Collateral Manager if any claim had been asserted against the
Existing Collateral Manager to the extent relating solely to any of the Assumed Liabilities, excluding any and all defenses, counterclaims
or set-off rights of the Existing Collateral Manager or any of its Affiliates (as defined herein) or any of their respective officers,
directors or Representatives (as defined herein), to the extent relating solely to any of the Retained Liabilities (as defined
herein), and (ii) assign to the Successor Collateral Manager, and not thereafter have any responsibility for, the Assumed Liabilities,
excluding the Retained Liabilities; and

 

    	- 17 -

    	 

    

 

WHEREAS, in accordance
with the terms and subject to the conditions of this Agreement and the Sale and Purchase Agreement, the Successor Collateral Manager
desires to (i) purchase, accept and assume from the Existing Collateral Manager (A) free and clear of Liens (other than Permitted
Liens) all of the Existing Collateral Manager Rights, excluding any rights to receive the Outstanding GKKM Special Servicing Advance
Amount, and (B) all defenses, counterclaims and set-off rights that would have been available to the Existing Collateral Manager
if any claim had been asserted against the Existing Collateral Manager to the extent relating solely to any of the Assumed Liabilities,
excluding any and all defenses, counterclaims or set-off rights of the Existing Collateral Manager or any of its Affiliates or
any of their respective officers, directors or Representatives, to the extent relating solely to any of the Retained Liabilities,
and (ii) assume from the Existing Collateral Manager, and thereafter pay, perform and discharge when due, the Assumed Liabilities,
excluding the Retained Liabilities.

 

NOW, THEREFORE, with
the foregoing recitals incorporated herein by this reference, and in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.          Defined
Terms. For purposes of this Agreement, the following terms shall have the meanings specified in this Section 1:

 

“Advancing Agent”
means GKK Liquidity LLC.

 

“Affiliate”
of any Person means another Person that directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with, such first Person. For purposes of this definition, the term “control” (including
its correlative meanings “controlled by” and “under common control with”) means possession, directly or
indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership
or other ownership interests, by contract or otherwise). For purposes of this Agreement, the Issuer is not an Affiliate of the
Existing Collateral Manager.

 

“CDO
Agreements” means the Existing Collateral Management Agreement, the Indenture, the Servicing Agreement, the Existing
Special Servicing Agreement, the Preferred Shares Paying Agency Agreement and the Securities Accounts Control Agreement.

 

“CDO Issuer
Assets” means the Assets of the Issuer as defined in the Indenture.

 

“Closing”
means the closing of the transactions contemplated by the Sale and Purchase Agreement, including, without limitation, the transactions
contemplated by this Agreement.

 

“Closing Date”
means [●].

 

    	- 18 -

    	 

    

 

“Co-Issuers”
means the Issuer and Gramercy Real Estate CDO 2006-1 LLC.

 

“Existing Collateral
Management Agreement” means the Collateral Management Agreement, dated as of August 24, 2006, between the Issuer and
the Existing Collateral Manager.

 

“Existing
Special Servicing Agreement” means the Special Servicing Agreement, dated as of May 8, 2009, as amended by the First
Amendment to the Special Servicing Agreement and Amended and Restated Servicing Agreements, dated as of March 1, 2010, among the
Existing Collateral Manager, the Co-Issuers, the Gramercy 2005 Issuer, the Gramercy 2007 Issuer, the Gramercy 2005 Co-Issuer, the
Gramercy 2007 Co-Issuer, Situs, Wells Fargo Bank and the Advancing Agent, as amended by the Second Amendment to the Special Servicing
Agreement, dated as of May 30, 2012, among the Existing Collateral Manager, the Co-Issuers, the Gramercy 2005 Issuer, the Gramercy
2007 Issuer, the Gramercy 2005 Co-Issuer, the Gramercy 2007 Co-Issuer, Situs, the Trustee and the Advancing Agent.

 

“Governmental
Entity” means any government or any arbitrator, tribunal or court of competent jurisdiction, administrative agency or
commission or other governmental authority or instrumentality (in each case whether Federal, state, local, foreign, international
or multinational).

 

“Gramercy 2005
Co-Issuer” means Gramercy Real Estate CDO 2005-1 LLC.

 

“Gramercy 2007
Co-Issuer” means Gramercy Real Estate CDO 2007-1 LLC.

 

“Gramercy 2005
Issuer” means Gramercy Real Estate CDO 2005-1, Ltd.

 

“Gramercy 2007
Issuer” means Gramercy Real Estate CDO 2007-1, Ltd.

 

“Indenture”
means the Indenture, dated as of August 24, 2006, as amended and supplemented by the First Supplemental Indenture thereto,
dated as of September 26, 2007 and the Second Supplemental Indenture thereto, dated as of August 5, 2008, among the Co-Issuers,
Wells Fargo Bank and the Advancing Agent, as further amended and supplemented by the Indenture Amendment dated as of October 28,
2010, among the Co-Issuers and the Existing Collateral Manager and acknowledged by Wells Fargo Bank.

 

“Lien”
means any mortgage, lien, security interest, pledge, reservation, equitable interest, charge, easement, lease, sublease, conditional
sale or other title retention agreement, right of first refusal, hypothecation, covenant, servitude, right of way, variance, option,
warrant, claim, community property interest, restriction (including any restriction on use, voting, transfer, alienation, receipt
of income or exercise of any other attribute of ownership) or encumbrance of any kind.

 

“Outstanding
GKKM Special Servicing Advance Amount” means all amounts advanced by or on behalf of the Existing Collateral Manager
as Servicing Advances in respect of the Issuer, to the extent such amounts have not been repaid or reimbursed to the Existing Collateral
Manager as of the Closing Date.

 

    	- 19 -

    	 

    

 

“Person”
means any individual, firm, corporation, partnership, limited liability company, trust, joint venture, Governmental Entity or other
entity.

 

“Preferred Shares
Paying Agency Agreement” means the Preferred Shares Paying Agency Agreement dated as of August 24, 2006 between the Issuer
and Wells Fargo Bank, National Association, as preferred shares paying agent.

 

“Representative”
means, with respect to any Person, any director, officer, partner, member, stockholder, Affiliate, employee, agent, consultant,
advisor or other representative of such Person, including legal counsel, accountants and financial advisors.

 

“Retained Liabilities”
means (i) any liabilities or obligations of the Existing Collateral Manager or any of its Affiliates of any kind or nature whatsoever
other than the Assumed Liabilities including, but not limited to, (w) any liability for Taxes relating to or arising out of the
Transferred Assets (as defined in the Sale and Purchase Agreement) that are attributable to any taxable period ending on or prior
to the Closing Date or, with respect to any taxable period that begins prior to and ends after the Closing Date, the portion of
such period ending on the Closing Date, (x) any liabilities and obligations of the Sellers (including the Existing Collateral Manager)
or any of their Affiliates arising out of the CDO Agreements, the Transferred Assets or the CDO Issuer Assets, to the extent such
liabilities or obligations arise in respect of or relate to the management of the Issuer or servicing of the CDO Issuer Assets
prior to the Closing Date, (y) any liabilities, obligations or covenants of the Sellers (including the Existing Collateral Manager)
in connection with the Jameson Proceedings as defined in the Sale and Purchase Agreement, the Wells Fargo Indemnity Letter, and
the matters disclosed in Schedules 3.01(c) and 3.01(d) of the Sale and Purchase Agreement as applicable whether arising before,
on or after the Closing Date and (z) any liabilities and obligations of the Existing Collateral Manager or any of its Affiliates
related to or arising out of the Retained Assets (as defined in the Sale and Purchase Agreement) whether arising before, on or
after the Closing Date.

 

“Securities
Accounts Control Agreement” means the Securities Accounts Control Agreement, dated as of August 24, 2006, among the Issuer,
Wells Fargo Bank, National Association, as secured party, and Wells Fargo Bank, as securities intermediary.

 

“Sellers”
means Gramercy Investment Trust, Gramercy Investment Trust II, the Existing Collateral Manager, Gramercy Loan Services LLC and
GKK Liquidity LLC.

 

“Servicing Advances”
means, with respect to the Issuer, “Servicing Advances” within the meaning of the Servicing Agreement and/or the Existing
Special Servicing Agreement, as applicable.

 

“Servicing Agreement”
means the Amended and Restated Servicing Agreement, dated as of June 1, 2009, among the Co-Issuers, the Existing Collateral Manager,
Situs, Wells Fargo Bank and the Advancing Agent, as amended by the First Amendment to Special Servicing Agreement and Amended and
Restated Servicing Agreements, dated as of March 1, 2010, among the Co-Issuers, the Gramercy 2005 Issuer, the Gramercy 2007 Issuer,
the Gramercy 2005 Co-Issuer, the Gramercy 2007 Co-Issuer, the Existing Collateral Manager, Wells Fargo Bank, the Advancing Agent
and Situs.

 

    	- 20 -

    	 

    

 

 

“Situs”
means SitusServ L.P.

 

“Tax”
or “Taxes” means all Federal, state, county, local, municipal, foreign and other taxes, assessments, duties
or similar charges of any kind whatsoever, including all corporate franchise, income, sales, use, ad valorem, receipts, value added,
profits, license, withholding, payroll, employment, excise, premium, property, customs, net worth, capital gains, transfer, stamp,
documentary, social security, environmental, alternative minimum, occupation, recapture and other taxes, and including all interest,
penalties and additions imposed with respect to such amounts, and all amounts payable pursuant to any agreement or arrangement
with respect to Taxes.

 

“Trustee”
means Wells Fargo Bank, National Association, in its capacity as trustee.

 

“Wells Fargo
Bank” means Wells Fargo Bank, National Association, in its capacities as Trustee, paying agent, calculation agent, transfer
agent, custodial securities intermediary, backup advancing agent and notes registrar.

 

“Wells Fargo
Indemnity Letter” means the indemnification letter by the Existing Collateral Manager in favor of Wells Fargo Bank, National
Association dated September 14, 2011 with regard to Note cancellations.

 

2.          Other
Definitional Provisions. Unless otherwise defined herein, each capitalized term shall have the meaning ascribed thereto in
the Existing Collateral Management Agreement or, if not defined therein, in the Indenture. The words “hereof”, “herein”,
“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; Section references in this Agreement are references to Sections in this Agreement
unless otherwise specified; and the term “including” shall mean “including without limitation”.

 

(a)          The
definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms.

 

(b)          Any
agreement, instrument or other document defined or referred to herein or in any instrument or certificate delivered in connection
herewith means such agreement, instrument or other document as from time to time amended, modified, supplemented or restated and
refers to any successor agreement, instrument or other document and includes references to all attachments thereto and instruments
and documents incorporated therein.

 

(c)          References
to a statute, regulation or other governmental rule are to it as amended from time to time and, as applicable, are to corresponding
provisions of successor governmental rules.

 

(d)          References
to a Person are also to its successors and permitted assigns.

 

    	- 21 -

    	 

    

  

3.          Assignment
and Assumption of Existing Collateral Manager Rights (Excluding Outstanding GKKM Special Servicing Advance Amount) and Assumed
Liabilities.

 

(a)          Effective
as of the date hereof and in accordance with the terms and subject to the conditions of this Agreement and the Sale and Purchase
Agreement, the Existing Collateral Manager does hereby (i) sell, assign, transfer and deliver to the Successor Collateral Manager
(A) free and clear of Liens (other than Permitted Liens as defined in the Sale and Purchase Agreement) all of the Existing Collateral
Manager Rights, excluding any rights to receive the Outstanding GKKM Special Servicing Advance Amount, and (B) all defenses, counterclaims
and set-off rights that would have been available to the Existing Collateral Manager if any claim had been asserted against the
Existing Collateral Manager to the extent relating solely to any of the Assumed Liabilities, excluding any and all defenses, counterclaims
or set-off rights of the Existing Collateral Manager or any of its Affiliates or any of their respective officers, directors or
Representatives, to the extent relating solely to any of the Retained Liabilities, and (ii) assign to the Successor Collateral
Manager, and not thereafter have any responsibility for, the Assumed Liabilities, excluding the Retained Liabilities. In accordance
with the terms and subject to the conditions of this Agreement and the Sale and Purchase Agreement, effective as of the date hereof,
the Successor Collateral Manager does hereby (i) purchase, accept and assume from the Existing Collateral Manager (A) free and
clear of Liens (other than Permitted Liens) all of the Existing Collateral Manager Rights, excluding any rights to receive the
Outstanding GKKM Special Servicing Advance Amount, and (B) all defenses, counterclaims and set-off rights that would have been
available to the Existing Collateral Manager if any claim had been asserted against the Existing Collateral Manager to the extent
relating solely to any of the Assumed Liabilities, excluding any and all defenses, counterclaims or set-off rights of the Existing
Collateral Manager or any of its Affiliates or any of their respective officers, directors or Representatives, to the extent relating
solely to any of the Retained Liabilities, and (ii) assume from the Existing Collateral Manager, and thereafter pay, perform and
discharge when due, the Assumed Liabilities, excluding the Retained Liabilities.

 

(b)          In
connection with the assignment evidenced hereby and in accordance with the terms and subject to the conditions of this Agreement
and the Sale and Purchase Agreement, the Successor Collateral Manager confirms that it shall be deemed a party to the Existing
Collateral Management Agreement, the Existing Special Servicing Agreement and the Servicing Agreement, and irrevocably agrees to
be bound by all of the terms of, and to undertake, assume and perform all duties, obligations and liabilities of the Existing Collateral
Manager as contained in the CDO Agreements from and after the date hereof; provided, that for the avoidance of doubt,
such duties, obligations and liabilities shall not include (x) any liabilities, obligations or covenants of the Sellers (including
the Existing Collateral Manager) under the Sale and Purchase Agreement (including with respect to transactions to be effected at
the Closing under Section 1.04 thereof and in respect of the Related CDO Assets (as defined therein under Section 1.06 thereof))
and (y) any liabilities, obligations or covenants of the Sellers (including the Existing Collateral Manager) in connection with
the Jameson Proceedings as defined in the Sale and Purchase Agreement, the Wells Fargo Indemnity Letter, or the matters disclosed
in Schedules 3.01(c) and 3.01(d) of the Sale and Purchase Agreement as applicable, whether arising before, on or after the Closing
Date. The Successor Collateral Manager hereby represents and warrants that it (i) has received copies of the CDO Agreements, (ii)
has the ability to professionally and competently perform the duties imposed upon the Collateral Manager under the CDO Agreements,
(iii) is legally qualified and has the capacity to act as Collateral Manager under the CDO Agreements and (iv) complies with the
requirements set forth in Section 12(d)(i)-(v) of the Existing Collateral Management Agreement.

 

    	- 22 -

    	 

    

 

(c)          The
Existing Collateral Manager, the Successor Collateral Manager, and the Issuer agree that all references in the CDO Agreements to
the “Collateral Manager” or any such similar term and all references in any other documents necessary or incidental
to carrying out the terms of the foregoing documents to the Existing Collateral Manager shall, from and after the date hereof,
refer to the Successor Collateral Manager. CWCapital’s signature hereto shall be deemed to be an executed counterpart to
the Existing Collateral Management Agreement, the Servicing Agreement and the Existing Special Servicing Agreement duly delivered
to the Issuer and to Trustee.

 

(d)          Notwithstanding
anything to the contrary in this Agreement, the Existing Collateral Manager reserves in all respects any and all rights it has
with respect to the Issuer under the CDO Agreements to the extent such rights survive the assignment and assumption pursuant to
this Agreement, including, without limitation, pursuant to Section 13 of the Existing Collateral Management Agreement.

 

4.          Consent
and Acknowledgement. The Issuer hereby (i) consents to the assignment by the Existing Collateral Manager to, and assumption
by, the Successor Collateral Manager of, (a) all of the Existing Collateral Manager Rights, excluding any rights to receive the
Outstanding GKKM Special Servicing Advance Amount, (b) all defenses, counterclaims and set-off rights that would have been available
to the Existing Collateral Manager if any claim had been asserted against the Existing Collateral Manager to the extent relating
solely to any of the Assumed Liabilities, excluding any and all defenses, counterclaims or set-off rights of the Existing Collateral
Manager or any of its Affiliates or any of their respective officers, directors or Representatives, to the extent relating solely
to any of the Retained Liabilities and (c) the Assumed Liabilities, excluding the Retained Liabilities, (ii) consents to the Successor
Collateral Manager becoming the Collateral Manager under the Existing Collateral Management Agreement and, in connection therewith,
consents to the amendment and restatement of the Existing Collateral Management Agreement to be entered into by the Issuer and
the Successor Collateral Manager on the date hereof substantially in the form attached hereto as Exhibit A (the “Amended
and Restated Collateral Management Agreement”), and (iii) acknowledges that the Existing Collateral Manager reserves
in all respects any and all rights it has with respect to the Issuer under the CDO Agreements to the extent such rights survive
the assignment and assumption pursuant to this Agreement, including, without limitation, pursuant to Section 13 of the Existing
Collateral Management Agreement.

 

5.          Further
Assurances. The parties hereto shall, at any time and from time to time, promptly and duly execute and deliver any and all
such further instruments and documents and take such further action as may reasonably be requested by any other party to obtain
the full benefits of this Agreement, and of the rights and powers herein granted.

 

    	- 23 -

    	 

    

 

6.          Notices;
Agent for Service of Process. (a) The Successor Collateral Manager agrees that on the date hereof, it shall notify all parties
to the CDO Agreements, as required under the terms thereof, that, on and after the date hereof, the address for notice for the
Collateral Manager as set forth in any of the CDO Agreements shall be:

  

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, Maryland 20814

Telephone: (202) 715-9500

Facsimile: (301) 255-4874

Attention: Charles Spetka

 

With a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, Maryland 20814

Facsimile: (301) 255-4874

Attention: Legal Department

 

7.          Successors
and Assigns. This Agreement is binding upon and shall inure to the benefit of the heirs, successors and assigns of the parties.

 

8.          Governing
Law. THIS AGREEMENT, AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT) THAT MAY BE BASED UPON, ARISE OUT OF
OR RELATE TO THIS AGREEMENT, OR THE NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS AGREEMENT (INCLUDING ANY CLAIM OR CAUSE OF ACTION
BASED UPON, ARISING OUT OF OR RELATED TO ANY REPRESENTATION OR WARRANTY MADE IN CONNECTION WITH THIS AGREEMENT OR AS AN INDUCEMENT
TO ENTER INTO THIS AGREEMENT), SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES OF SUCH STATE.

 

9.          Submission
to Jurisdiction. Each party irrevocably and unconditionally submits to the exclusive jurisdiction of the Supreme Court of the
State of New York, New York County, and the United States District Court for the Southern District of New York (and the appropriate
appellate courts), for the purposes of any suit, action or other proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby. Each party agrees to commence any such action, suit or proceeding either in the United States
District Court for the Southern District of New York or if such suit, action or other proceeding may not be brought in such court
for jurisdictional reasons, in the Supreme Court of the State of New York, New York County. Notwithstanding the foregoing, any
party hereto may commence an action, suit or proceeding with any Governmental Entity anywhere in the world for the sole purpose
of seeking recognition and enforcement of a judgment of any court referred to in the first sentence of this Section 9. Each
party further agrees that service of any process, summons, notice or document by U.S. registered mail to such party’s respective
address set forth above, with respect to the Successor Collateral Manager, as set forth in Section 7.2 of the Indenture, with respect
to the Issuer, and to the following address with respect to the Existing Collateral Manager: GKK Manager LLC, c/o Gramercy Capital
Corp., 420 Lexington Avenue, 18th Floor, New York, NY 10170, Fax: (212) 216-1785, Attention: Michael Kavourias, Jerry Hirschkorn,
shall be effective service of process for any action, suit or proceeding in New York with respect to any matters to which it has
submitted to jurisdiction in this Section 9. Each party irrevocably and unconditionally waives any objection to the laying
of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby in (i) the
Supreme Court of the State of New York, New York County, or (ii) the United States District Court for the Southern District
of New York, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that
any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

 

    	- 24 -

    	 

    

 

 

10.         Waiver
of Jury Trial. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, INVOLVING OR OTHERWISE IN RESPECT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY. EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION 10.

 

11.         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.

 

12.         Counterparts.
This Agreement may be executed in one or more counterparts (including by facsimile or portable document format (PDF)), all of which
shall be considered an original copy of one and the same agreement, and shall become effective when one or more such counterparts
have been signed by each of the parties hereto and delivered to the other parties.

 

13.         Entire
Agreement. This Agreement, together with the Sale and Purchase Agreement, constitutes the entire agreement among the parties
hereto with respect to the subject matter contained in this Agreement. The parties hereto agree that this Agreement is subject
in all respects to the provisions of the Sale and Purchase Agreement and is not intended to, and does not, expand, limit, alter
or modify the rights and obligations of the parties thereunder. To the extent any provision of this Agreement is inconsistent with
the Sale and Purchase Agreement, the provisions of the Sale and Purchase Agreement shall control.

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

    	- 25 -

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Assignment and Assumption Agreement as of the day and year first above written.

 

	 	GKK Manager LLC, as Existing Collateral 

Manager
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	CWCapital Investments LLC, as Successor 
 Collateral
    Manager
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	Gramercy
    Real Estate CDO 2006-1, LTD., as 

    the Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	- 26 -

    	 

    

 

EXHIBIT A

 

FORM OF AMENDED AND RESTATED COLLATERAL
MANAGEMENT AGREEMENT

 

    	- 27 -

    	 

    

 

Assignment And Assumption
Agreement

 

among

 

GKK Manager LLC,

as Existing Collateral Manager,

 

CWCapital
Investments LLC,

as Successor Collateral
Manager,

 

And

 

Gramercy Real Estate CDO
2007-1, LTD.,

as Issuer

 

Dated as of [●],
2013

 

    	- 28 -

    	 

    

 

Assignment And Assumption
Agreement

 

This Assignment
And Assumption Agreement, dated as of [●], 2013 (this “Agreement”), by and among GKK Manager LLC,
a Delaware limited liability company (the “Existing Collateral Manager”), CWCapital Investments LLC, a Massachusetts
limited liability company (together with its successors and assigns, the “Successor Collateral Manager” or “CWCapital”),
and Gramercy Real Estate CDO 2007-1, Ltd., an exempted Cayman Islands company (together with its successors and assigns, the “Issuer”).

 

RECITALS:

 

WHEREAS, the Existing
Collateral Manager has certain rights as the collateral manager pursuant to the CDO Agreements (as defined herein), including rights
to receive collateral management fees and other amounts payable to the Existing Collateral Manager and rights to remove and appoint
special servicers for the CDO Issuer Assets (as defined herein) pursuant to the CDO Agreements (all such rights, the “Existing
Collateral Manager Rights”);

 

WHEREAS, the Existing
Collateral Manager has (i) certain liabilities and obligations arising out of the Transferred Assets (as defined in the Sale and
Purchase Agreement defined below) to the extent such liabilities or obligations arise in respect of the management of the Issuer
or servicing of the CDO Issuer Assets under the terms of the CDO Agreements after the Closing (as defined herein) and (ii) certain
liabilities and obligations arising under the terms of the CDO Agreements (such liabilities and obligations, to the extent, and
only to the extent, that they arise in respect of the management of the Issuer or servicing of the CDO Issuer Assets after the
Closing; provided, that for the avoidance of doubt, such liabilities and obligations shall not include (x) any liabilities,
obligations or covenants of the Sellers (including the Existing Collateral Manager) under the Sale and Purchase Agreement (including
with respect to transactions to be effected at the Closing under Section 1.04 thereof and in respect of the Related CDO Assets
(as defined therein under Section 1.06 thereof)) and (y) any liabilities, obligations or covenants of the Sellers (including the
Existing Collateral Manager) in connection with the Jameson Proceedings as defined in the Sale and Purchase Agreement or the matters
disclosed in Schedules 3.01(c) and 3.01(d) of the Sale and Purchase Agreement as applicable, whether arising before, on or after
the Closing Date (as defined herein) (collectively, the “Assumed Liabilities”);

 

WHEREAS, in accordance
with the terms and subject to the conditions of this Agreement and the Sale and Purchase Agreement, dated as of January 30, 2013,
among the Existing Collateral Manager, Gramercy Investment Trust, Gramercy Investment Trust II, Gramercy Loan Services LLC, GKK
Liquidity LLC, CWCapital and solely for the purposes of Articles IX and X thereof, Gramercy Capital Corp., and solely for the purposes
of Articles IX and X thereof, CW Financial Services LLC (the “Sale and Purchase Agreement”), the Existing Collateral
Manager desires to (i) sell, assign, transfer and deliver to the Successor Collateral Manager (A) free and clear of Liens (other
than Permitted Liens as defined in the Sale and Purchase Agreement) all of the Existing Collateral Manager Rights, excluding any
rights to receive the Outstanding GKKM Special Servicing Advance Amount (as defined herein), and (B) all defenses, counterclaims
and set-off rights that would have been available to the Existing Collateral Manager if any claim had been asserted against the
Existing Collateral Manager to the extent relating solely to any of the Assumed Liabilities, excluding any and all defenses, counterclaims
or set-off rights of the Existing Collateral Manager or any of its Affiliates (as defined herein) or any of their respective officers,
directors or Representatives (as defined herein), to the extent relating solely to any of the Retained Liabilities (as defined
herein), and (ii) assign to the Successor Collateral Manager, and not thereafter have any responsibility for, the Assumed Liabilities,
excluding the Retained Liabilities; and

 

    	- 29 -

    	 

    

 

WHEREAS, in accordance
with the terms and subject to the conditions of this Agreement and the Sale and Purchase Agreement, the Successor Collateral Manager
desires to (i) purchase, accept and assume from the Existing Collateral Manager (A) free and clear of Liens (other than Permitted
Liens) all of the Existing Collateral Manager Rights, excluding any rights to receive the Outstanding GKKM Special Servicing Advance
Amount, and (B) all defenses, counterclaims and set-off rights that would have been available to the Existing Collateral Manager
if any claim had been asserted against the Existing Collateral Manager to the extent relating solely to any of the Assumed Liabilities,
excluding any and all defenses, counterclaims or set-off rights of the Existing Collateral Manager or any of its Affiliates or
any of their respective officers, directors or Representatives, to the extent relating solely to any of the Retained Liabilities,
and (ii) assume from the Existing Collateral Manager, and thereafter pay, perform and discharge when due, the Assumed Liabilities,
excluding the Retained Liabilities.

 

NOW, THEREFORE, with
the foregoing recitals incorporated herein by this reference, and in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.          Defined
Terms. For purposes of this Agreement, the following terms shall have the meanings specified in this Section 1:

 

“Advancing Agent”
means GKK Liquidity LLC.

 

“Affiliate”
of any Person means another Person that directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with, such first Person. For purposes of this definition, the term “control” (including
its correlative meanings “controlled by” and “under common control with”) means possession, directly or
indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership
or other ownership interests, by contract or otherwise). For purposes of this Agreement, the Issuer is not an Affiliate of the
Existing Collateral Manager.

 

“CDO
Agreements” means the Existing Collateral Management Agreement, the Indenture, the Servicing Agreement, the Existing
Special Servicing Agreement, the Preferred Shares Paying Agency Agreement and the Securities Accounts Control Agreement.

 

“CDO Issuer
Assets” means the Assets of the Issuer as defined in the Indenture.

 

“Closing”
means the closing of the transactions contemplated by the Sale and Purchase Agreement, including, without limitation, the transactions
contemplated by this Agreement.

 

“Closing Date”
means [●].

 

    	- 30 -

    	 

    

 

“Co-Issuers”
means the Issuer and Gramercy Real Estate CDO 2007-1 LLC.

 

“Existing Collateral
Management Agreement” means the Collateral Management Agreement, dated as of August 8, 2007, between the Issuer and the
Existing Collateral Manager.

 

“Existing
Special Servicing Agreement” means the Special Servicing Agreement, dated as of May 8, 2009, as amended by the First
Amendment to the Special Servicing Agreement and Amended and Restated Servicing Agreements, dated as of March 1, 2010, among the
Existing Collateral Manager, the Co-Issuers, the Gramercy 2005 Issuer, the Gramercy 2006 Issuer, the Gramercy 2005 Co-Issuer, the
Gramercy 2006 Co-Issuer, Situs, Wells Fargo Bank and the Advancing Agent, as amended by the Second Amendment to the Special Servicing
Agreement, dated as of May 30, 2012, among the Existing Collateral Manager, the Co-Issuers, the Gramercy 2005 Issuer, the Gramercy
2006 Issuer, the Gramercy 2005 Co-Issuer, the Gramercy 2006 Co-Issuer, Situs, the Trustee and the Advancing Agent.

 

“Governmental
Entity” means any government or any arbitrator, tribunal or court of competent jurisdiction, administrative agency or
commission or other governmental authority or instrumentality (in each case whether Federal, state, local, foreign, international
or multinational).

 

“Gramercy 2005
Co-Issuer” means Gramercy Real Estate CDO 2005-1 LLC.

 

“Gramercy 2006
Co-Issuer” means Gramercy Real Estate CDO 2006-1 LLC.

 

“Gramercy 2005
Issuer” means Gramercy Real Estate CDO 2005-1, Ltd.

 

“Gramercy 2006
Issuer” means Gramercy Real Estate CDO 2006-1, Ltd.

 

“Indenture”
means the Indenture, dated as of August 8, 2007, among the Co-Issuers, the Advancing Agent and Wells Fargo Bank.

 

“Lien”
means any mortgage, lien, security interest, pledge, reservation, equitable interest, charge, easement, lease, sublease, conditional
sale or other title retention agreement, right of first refusal, hypothecation, covenant, servitude, right of way, variance, option,
warrant, claim, community property interest, restriction (including any restriction on use, voting, transfer, alienation, receipt
of income or exercise of any other attribute of ownership) or encumbrance of any kind.

 

“Outstanding
GKKM Special Servicing Advance Amount” means all amounts advanced by or on behalf of the Existing Collateral Manager
as Servicing Advances in respect of the Issuer, to the extent such amounts have not been repaid or reimbursed to the Existing Collateral
Manager as of the Closing Date.

 

“Person”
means any individual, firm, corporation, partnership, limited liability company, trust, joint venture, Governmental Entity or other
entity.

 

    	- 31 -

    	 

    

 

“Preferred Shares
Paying Agency Agreement” means the Preferred Shares Paying Agency Agreement dated as of August 8, 2007 between the Issuer
and Wells Fargo Bank, National Association, as preferred shares paying agent.

 

“Representative”
means, with respect to any Person, any director, officer, partner, member, stockholder, Affiliate, employee, agent, consultant,
advisor or other representative of such Person, including legal counsel, accountants and financial advisors.

 

“Retained Liabilities”
means (i) any liabilities or obligations of the Existing Collateral Manager or any of its Affiliates of any kind or nature whatsoever
other than the Assumed Liabilities including, but not limited to, (w) any liability for Taxes relating to or arising out of the
Transferred Assets (as defined in the Sale and Purchase Agreement) that are attributable to any taxable period ending on or prior
to the Closing Date or, with respect to any taxable period that begins prior to and ends after the Closing Date, the portion of
such period ending on the Closing Date, (x) any liabilities and obligations of the Sellers (including the Existing Collateral Manager)
or any of their Affiliates arising out of the CDO Agreements, the Transferred Assets or the CDO Issuer Assets, to the extent such
liabilities or obligations arise in respect of or relate to the management of the Issuer or servicing of the CDO Issuer Assets
prior to the Closing Date, (y) any liabilities, obligations or covenants of the Sellers (including the Existing Collateral Manager)
in connection with the Jameson Proceedings as defined in the Sale and Purchase Agreement and the matters disclosed in Schedules
3.01(c) and 3.01(d) of the Sale and Purchase Agreement as applicable whether arising before, on or after the Closing Date and (z)
any liabilities and obligations of the Existing Collateral Manager or any of its Affiliates related to or arising out of the Retained
Assets (as defined in the Sale and Purchase Agreement) whether arising before, on or after the Closing Date.

 

“Securities
Accounts Control Agreement” means the Securities Accounts Control Agreement, dated as of August 8, 2007, among the Issuer,
Wells Fargo Bank, National Association, as secured party, and Wells Fargo Bank, as securities intermediary.

 

“Sellers”
means Gramercy Investment Trust, Gramercy Investment Trust II, the Existing Collateral Manager, Gramercy Loan Services LLC and
GKK Liquidity LLC.

 

“Servicing Advances”
means, with respect to the Issuer, “Servicing Advances” within the meaning of the Servicing Agreement and/or the Existing
Special Servicing Agreement, as applicable.

 

“Servicing Agreement”
means the Amended and Restated Servicing Agreement, dated as of June 1, 2009, among the Co-Issuers, the Existing Collateral Manager,
Situs, Wells Fargo Bank and the Advancing Agent, as amended by the First Amendment to Special Servicing Agreement and Amended and
Restated Servicing Agreements, dated as of March 1, 2010, among the Co-Issuers, the Gramercy 2005 Issuer, the Gramercy 2006 Issuer,
the Gramercy 2005 Co-Issuer, the Gramercy 2006 Co-Issuer, the Existing Collateral Manager, Wells Fargo Bank, the Advancing Agent
and Situs.

 

    	- 32 -

    	 

    

 

“Situs”
means SitusServ L.P.

 

“Tax”
or “Taxes” means all Federal, state, county, local, municipal, foreign and other taxes, assessments, duties
or similar charges of any kind whatsoever, including all corporate franchise, income, sales, use, ad valorem, receipts, value added,
profits, license, withholding, payroll, employment, excise, premium, property, customs, net worth, capital gains, transfer, stamp,
documentary, social security, environmental, alternative minimum, occupation, recapture and other taxes, and including all interest,
penalties and additions imposed with respect to such amounts, and all amounts payable pursuant to any agreement or arrangement
with respect to Taxes.

 

“Trustee”
means Wells Fargo Bank, National Association, in its capacity as trustee.

 

“Wells Fargo
Bank” means Wells Fargo Bank, National Association, in its capacities as Trustee, paying agent, calculation agent, transfer
agent, custodial securities intermediary, backup advancing agent and notes registrar.

 

2.           Other
Definitional Provisions. Unless otherwise defined herein, each capitalized term shall have the meaning ascribed thereto in
the Existing Collateral Management Agreement or, if not defined therein, in the Indenture. The words “hereof”, “herein”,
“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; Section references in this Agreement are references to Sections in this Agreement
unless otherwise specified; and the term “including” shall mean “including without limitation”.

 

(a)          The
definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms.

 

(b)          Any
agreement, instrument or other document defined or referred to herein or in any instrument or certificate delivered in connection
herewith means such agreement, instrument or other document as from time to time amended, modified, supplemented or restated and
refers to any successor agreement, instrument or other document and includes references to all attachments thereto and instruments
and documents incorporated therein.

 

(c)          References
to a statute, regulation or other governmental rule are to it as amended from time to time and, as applicable, are to corresponding
provisions of successor governmental rules.

 

(d)          References
to a Person are also to its successors and permitted assigns.

 

    	- 33 -

    	 

    

 

3.            Assignment
and Assumption of Existing Collateral Manager Rights (Excluding Outstanding GKKM Special Servicing Advance Amount) and Assumed
Liabilities.

 

(a)          Effective
as of the date hereof and in accordance with the terms and subject to the conditions of this Agreement and the Sale and Purchase
Agreement, the Existing Collateral Manager does hereby (i) sell, assign, transfer and deliver to the Successor Collateral Manager
(A) free and clear of Liens (other than Permitted Liens as defined in the Sale and Purchase Agreement) all of the Existing Collateral
Manager Rights, excluding any rights to receive the Outstanding GKKM Special Servicing Advance Amount, and (B) all defenses, counterclaims
and set-off rights that would have been available to the Existing Collateral Manager if any claim had been asserted against the
Existing Collateral Manager to the extent relating solely to any of the Assumed Liabilities, excluding any and all defenses, counterclaims
or set-off rights of the Existing Collateral Manager or any of its Affiliates or any of their respective officers, directors or
Representatives, to the extent relating solely to any of the Retained Liabilities, and (ii) assign to the Successor Collateral
Manager, and not thereafter have any responsibility for, the Assumed Liabilities, excluding the Retained Liabilities. In accordance
with the terms and subject to the conditions of this Agreement and the Sale and Purchase Agreement, effective as of the date hereof,
the Successor Collateral Manager does hereby (i) purchase, accept and assume from the Existing Collateral Manager (A) free and
clear of Liens (other than Permitted Liens) all of the Existing Collateral Manager Rights, excluding any rights to receive the
Outstanding GKKM Special Servicing Advance Amount, and (B) all defenses, counterclaims and set-off rights that would have been
available to the Existing Collateral Manager if any claim had been asserted against the Existing Collateral Manager to the extent
relating solely to any of the Assumed Liabilities, excluding any and all defenses, counterclaims or set-off rights of the Existing
Collateral Manager or any of its Affiliates or any of their respective officers, directors or Representatives, to the extent relating
solely to any of the Retained Liabilities, and (ii) assume from the Existing Collateral Manager, and thereafter pay, perform and
discharge when due, the Assumed Liabilities, excluding the Retained Liabilities.

 

(b)          In
connection with the assignment evidenced hereby and in accordance with the terms and subject to the conditions of this Agreement
and the Sale and Purchase Agreement, the Successor Collateral Manager confirms that it shall be deemed a party to the Existing
Collateral Management Agreement, the Existing Special Servicing Agreement and the Servicing Agreement, and irrevocably agrees to
be bound by all of the terms of, and to undertake, assume and perform all duties, obligations and liabilities of the Existing Collateral
Manager as contained in the CDO Agreements from and after the date hereof; provided, that for the avoidance of doubt, such
duties, obligations and liabilities shall not include (x) any liabilities, obligations or covenants of the Sellers (including the
Existing Collateral Manager) under the Sale and Purchase Agreement (including with respect to transactions to be effected at the
Closing under Section 1.04 thereof and in respect of the Related CDO Assets (as defined therein under Section 1.06 thereof)) and
(y) any liabilities, obligations or covenants of the Sellers (including the Existing Collateral Manager) in connection with the
Jameson Proceedings as defined in the Sale and Purchase Agreement or the matters disclosed in Schedules 3.01(c) and 3.01(d) of
the Sale and Purchase Agreement as applicable, whether arising before, on or after the Closing Date. The Successor Collateral Manager
hereby represents and warrants that it (i) has received copies of the CDO Agreements, (ii) has the ability to professionally and
competently perform the duties imposed upon the Collateral Manager under the CDO Agreements, (iii) is legally qualified and has
the capacity to act as Collateral Manager under the CDO Agreements and (iv) complies with the requirements set forth in Section
12(d)(i)-(v) of the Existing Collateral Management Agreement.

 

    	- 34 -

    	 

    

 

(c)          The
Existing Collateral Manager, the Successor Collateral Manager, and the Issuer agree that all references in the CDO Agreements to
the “Collateral Manager” or any such similar term and all references in any other documents necessary or incidental
to carrying out the terms of the foregoing documents to the Existing Collateral Manager shall, from and after the date hereof,
refer to the Successor Collateral Manager. CWCapital’s signature hereto shall be deemed to be an executed counterpart to
the Existing Collateral Management Agreement, the Servicing Agreement and the Existing Special Servicing Agreement duly delivered
to the Issuer and to Trustee.

 

(d)          Notwithstanding
anything to the contrary in this Agreement, the Existing Collateral Manager reserves in all respects any and all rights it has
with respect to the Issuer under the CDO Agreements to the extent such rights survive the assignment and assumption pursuant to
this Agreement, including, without limitation, pursuant to Section 13 of the Existing Collateral Management Agreement.

 

4.            Consent
and Acknowledgement. The Issuer hereby (i) consents to the assignment by the Existing Collateral Manager to, and assumption
by, the Successor Collateral Manager of, (a) all of the Existing Collateral Manager Rights, excluding any rights to receive the
Outstanding GKKM Special Servicing Advance Amount, (b) all defenses, counterclaims and set-off rights that would have been available
to the Existing Collateral Manager if any claim had been asserted against the Existing Collateral Manager to the extent relating
solely to any of the Assumed Liabilities, excluding any and all defenses, counterclaims or set-off rights of the Existing Collateral
Manager or any of its Affiliates or any of their respective officers, directors or Representatives, to the extent relating solely
to any of the Retained Liabilities and (c) the Assumed Liabilities, excluding the Retained Liabilities, (ii) consents to the Successor
Collateral Manager becoming the Collateral Manager under the Existing Collateral Management Agreement and, in connection therewith,
consents to the amendment and restatement of the Existing Collateral Management Agreement to be entered into by the Issuer and
the Successor Collateral Manager on the date hereof substantially in the form attached hereto as Exhibit A (the “Amended
and Restated Collateral Management Agreement”), and (iii) acknowledges that the Existing Collateral Manager reserves
in all respects any and all rights it has with respect to the Issuer under the CDO Agreements to the extent such rights survive
the assignment and assumption pursuant to this Agreement, including, without limitation, pursuant to Section 13 of the Existing
Collateral Management Agreement.

 

5.            Further
Assurances. The parties hereto shall, at any time and from time to time, promptly and duly execute and deliver any and all
such further instruments and documents and take such further action as may reasonably be requested by any other party to obtain
the full benefits of this Agreement, and of the rights and powers herein granted.

 

6.            Notices;
Agent for Service of Process. (a) The Successor Collateral Manager agrees that on the date hereof, it shall notify all parties
to the CDO Agreements, as required under the terms thereof, that, on and after the date hereof, the address for notice for the
Collateral Manager as set forth in any of the CDO Agreements shall be:

 

    	- 35 -

    	 

    

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, Maryland 20814

Telephone: (202) 715-9500

Facsimile: (301) 255-4874

Attention: Charles Spetka

 

With a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue

Suite 500

Bethesda, Maryland 20814

Facsimile: (301) 255-4874

Attention: Legal Department

 

7.            Successors
and Assigns. This Agreement is binding upon and shall inure to the benefit of the heirs, successors and assigns of the parties.

 

8.            Governing
Law. THIS AGREEMENT, AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT) THAT MAY BE BASED UPON, ARISE OUT OF
OR RELATE TO THIS AGREEMENT, OR THE NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS AGREEMENT (INCLUDING ANY CLAIM OR CAUSE OF ACTION
BASED UPON, ARISING OUT OF OR RELATED TO ANY REPRESENTATION OR WARRANTY MADE IN CONNECTION WITH THIS AGREEMENT OR AS AN INDUCEMENT
TO ENTER INTO THIS AGREEMENT), SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES OF SUCH STATE.

 

9.            Submission
to Jurisdiction. Each party irrevocably and unconditionally submits to the exclusive jurisdiction of the Supreme Court of the
State of New York, New York County, and the United States District Court for the Southern District of New York (and the appropriate
appellate courts), for the purposes of any suit, action or other proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby. Each party agrees to commence any such action, suit or proceeding either in the United States
District Court for the Southern District of New York or if such suit, action or other proceeding may not be brought in such court
for jurisdictional reasons, in the Supreme Court of the State of New York, New York County. Notwithstanding the foregoing, any
party hereto may commence an action, suit or proceeding with any Governmental Entity anywhere in the world for the sole purpose
of seeking recognition and enforcement of a judgment of any court referred to in the first sentence of this Section 9. Each
party further agrees that service of any process, summons, notice or document by U.S. registered mail to such party’s respective
address set forth above, with respect to the Successor Collateral Manager, as set forth in Section 7.2 of the Indenture, with respect
to the Issuer, and to the following address with respect to the Existing Collateral Manager: GKK Manager LLC, c/o Gramercy Capital
Corp., 420 Lexington Avenue, 18th Floor, New York, NY 10170, Fax: (212) 216-1785, Attention: Michael Kavourias, Jerry Hirschkorn,
shall be effective service of process for any action, suit or proceeding in New York with respect to any matters to which it has
submitted to jurisdiction in this Section 9. Each party irrevocably and unconditionally waives any objection to the laying
of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby in (i) the
Supreme Court of the State of New York, New York County, or (ii) the United States District Court for the Southern District
of New York, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that
any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

 

    	- 36 -

    	 

    

 

10.          Waiver
of Jury Trial. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, INVOLVING OR OTHERWISE IN RESPECT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY. EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION 10.

 

11.          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.

 

12.          Counterparts.
This Agreement may be executed in one or more counterparts (including by facsimile or portable document format (PDF)), all of which
shall be considered an original copy of one and the same agreement, and shall become effective when one or more such counterparts
have been signed by each of the parties hereto and delivered to the other parties.

 

13.          Entire
Agreement. This Agreement, together with the Sale and Purchase Agreement, constitutes the entire agreement among the parties
hereto with respect to the subject matter contained in this Agreement. The parties hereto agree that this Agreement is subject
in all respects to the provisions of the Sale and Purchase Agreement and is not intended to, and does not, expand, limit, alter
or modify the rights and obligations of the parties thereunder. To the extent any provision of this Agreement is inconsistent with
the Sale and Purchase Agreement, the provisions of the Sale and Purchase Agreement shall control.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	- 37 -

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Assignment and Assumption Agreement as of the day and year first above written.

 

	 	GKK Manager LLC, as Existing Collateral
	 	Manager
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	CWCapital Investments LLC, as Successor
	 	Collateral Manager
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	Gramercy Real Estate CDO 2007-1, LTD., as
	 	the Issuer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	- 38 -

    	 

    

 

EXHIBIT A

 

FORM OF AMENDED AND RESTATED COLLATERAL
MANAGEMENT AGREEMENT

 

    	- 39 -

    	 

    

 

Exhibit B

Form of Supplemental Indentures

 

    	- 40 -

    	 

    
 

FOURTH SUPPLEMENTAL INDENTURE
dated as of [●], 2013 (this “Supplemental Indenture”) among GRAMERCY REAL ESTATE CDO 2006-1, LTD., a Cayman Islands
exempted company with limited liability (together with its permitted successors and assigns, the “Issuer”), GRAMERCY
REAL ESTATE CDO 2006-1 LLC, a limited liability company formed under the laws of
Delaware (together with its permitted successors and assigns, the “Co-Issuer” and, together with the Issuer, the “Co-Issuers”),
WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as trustee, paying agent, calculation agent, transfer agent,
custodial securities intermediary, backup advancing agent and notes registrar under the Current Indenture referred to below (together
with its permitted successors and assigns in the trusts under the Current Indenture, the “Trustee”), and CWCAPITAL
INVESTMENTS LLC, a Massachusetts limited liability company, as successor advancing agent to GKK Liquidity LLC (together with its
permitted successors and assigns in the trusts under the Current Indenture, the “Advancing Agent”), to the Indenture
dated as of August 24, 2006 among the Issuer, the Co-Issuer, the Trustee and GKK Liquidity LLC, as the advancing agent, as previously
supplemented by the First Supplemental Indenture dated as of September 26, 2007 and by the Second Supplemental Indenture dated
as of August 5, 2008, in each case among the Co-Issuers, the Trustee and the Advancing Agent, and by the Indenture Amendment dated
as of October 28, 2010, among the Co-Issuers and the Collateral Manager and acknowledged by the Trustee (as so previously supplemented,
the “Current Indenture”). For all purposes of this Supplemental Indenture, all capitalized terms used herein without
definition shall have the respective meanings set forth or referred to in the Current Indenture. Except as otherwise specified
herein, each reference herein to a “Section” is to such Section of the Current Indenture.

 

RECITALS

 

The Co-Issuers, the Trustee
and the Advancing Agent are parties to the Current Indenture.

 

Pursuant to the first
paragraph of Section 8.2, except with respect to certain enumerated modifications, with the written consent of (a) the Holders
of not less than a Majority in Aggregate Outstanding Amount (excluding any Notes owned by the Collateral Manager or any of its
Affiliates, or by any accounts managed by them) of the Notes of each class materially and adversely affected thereby and all of
the Holders of Preferred Shares if materially and adversely affected thereby by Act of said Securityholders delivered to the Trustee
and the Co-Issuers and (b) the consent of each Hedge Counterparty that is materially and adversely affected thereby, and subject
to satisfaction of the Rating Agency Condition, the Trustee and the Co-Issuers may enter into one or more indentures supplemental
to the Current Indenture to add any provisions to, or change in any manner or eliminate any of the provisions of, the Current Indenture
or modify in any manner the rights of the Holders of the Notes of such Class or the Preferred Shares, as the case may be, under
the Current Indenture.

 

    	- 41 -

    	 

    

 

Pursuant to Section 8.2,
if any Class of Notes is Outstanding and rated by a Rating Agency, the Trustee shall not enter into any supplemental indenture
if, as a result of such supplemental indenture, such Rating Agency would cause the rating of any such Notes to be immediately reduced
or withdrawn. At the cost of the Issuer, for so long as any Class of Notes shall remain Outstanding and is rated by a Rating Agency,
the Trustee shall provide to such Rating Agency a copy of any proposed supplemental indenture at least fifteen (15) days prior
to the execution thereof by the Trustee, and, for so long as such Notes are Outstanding and so rated, request written confirmation
that such Rating Agency will not, as a result of such supplemental indenture, cause the rating of any such Class of Notes to be
reduced or withdrawn.

 

Pursuant to Section 8.6,
notwithstanding anything in Article 8 to the contrary, so long as the Class A-1 Notes are the Controlling Class, the Issuer, the
Co-Issuer and the Trustee shall not enter into any supplemental indenture without obtaining the consent of the Holders of a Majority
of the Class A-1 Notes (such consent not to be unreasonably withheld); provided that, if the Holders of the Class A-1 Notes
do not object to such supplemental indenture within seven (7) days after notice is given, such Holders shall be deemed to have
consented to such supplemental indenture.

 

The Co-Issuers wish to
enter into this Supplemental Indenture in order to permit the Issuer to have one or more special purpose subsidiaries solely for
the purpose of holding title to any property obtained in connection with any foreclosure or other similar proceeding on, or any
transfer in lieu thereof of, any property securing any Collateral Debt Security, or by transfer of any property held by any Person
on behalf of the Issuer which previously secured any Collateral Debt Security whether or not then outstanding.

 

In connection with this
Supplemental Indenture, the following events have occurred:

 

		(i)	In connection with the first paragraph of Section 8.2, the Trustee has given fifteen (15) Business
Days’ notice of this Supplemental Indenture (along with a description of the substance of such supplement provided by GKK
Manager LLC in its capacity as the prior collateral manager (“GKKM”)) to the Holders of each Class of Notes,
the Holders of the Preferred Shares and each Hedge Counterparty and the Trustee has not received notice by the Holders of a Majority
in Aggregate Outstanding Amount (excluding any Notes owned by the Collateral Manager or any of its Affiliates, or by an accounts
managed by them) of the Notes of any Class or the Holders of Preferred Shares that such Class of Notes or the Preferred Shares
would be materially and adversely affected by this Supplemental Indenture.

 

		(ii)	In connection with the third paragraph of Section 8.2, the Trustee, at the cost of the Issuer and
prior to the execution of this Supplemental Indenture, has provided to each of the Rating Agencies a copy of this Supplemental
Indenture in proposed form.  In connection with the execution of this Supplemental Indenture, one or more of the Rating Agencies
have consented to, accepted or otherwise agreed to a shorter notice period.

 

    	- 42 -

    	 

    

 

		(iii)	As required by Section 8.2, the Trustee has received confirmation in writing from each of S&P
and Moody’s that the current ratings on the Notes will not be immediately reduced, qualified or withdrawn as a result of
this Supplemental Indenture and, as a result, the Rating Agency Condition and the condition of Section 8.2 with respect to S&P
and Moody’s has been satisfied with respect to this Supplemental Indenture.

 

		(iv)	As provided in Section 8.3, the Collateral Manager has received written notice of this Supplemental
Indenture prior to the execution and delivery of this Supplemental Indenture and has consented to, accepted or otherwise agreed
to a shorter notice period. In connection with Section 8.3, the Trustee and the Issuer have received the written consent of the
Collateral Manager to this Supplemental Indenture.

 

		(v)	Pursuant to Section 8.3, the Trustee has received an Opinion of Counsel of Clifford Chance US LLP
regarding this Supplemental Indenture, which Opinion of Counsel is subject to the assumptions, limitations, qualifications and
exceptions set forth therein.

 

		(vi)	The Trustee has received an Opinion of Counsel from a nationally recognized U.S. tax counsel experienced
in such matters, to the effect that this Supplemental Indenture will not cause the Issuer to fail to be treated as a qualified
REIT subsidiary (within the meaning of Section 856(i)(2) of the Code) or otherwise be treated as a foreign corporation subject
to U.S. federal income tax on a net income tax basis, which Opinion of Counsel is subject to the assumptions, limitations, qualifications
and exceptions set forth therein.

 

		(vii)	In connection with Section 8.6, the Trustee has given seven (7) days’ notice of this Supplemental
Indenture (along with a description of the substance of such supplement provided by GKKM) to the Holders of the Class A-1 Notes
and the Trustee has either received the written consent of the Holders of a Majority of the Class A-1 Notes, or has not received
notice of an objection to this Supplemental Indenture by the Holders of the Class A-1 Notes.

 

Accordingly, in consideration
of the premises contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

SECTION 1. Amendments.
The Current Indenture is hereby amended as follows:

 

(a)          The
Granting Clauses is amended to add a new clause (f) which shall read “equity interests in any Permitted REO Subsidiary”.

 

(b)          The
Granting Clauses is amended to change current clauses (f), (g) and (h), and references thereto, to clauses (g), (h) and (i), respectively.

 

    	- 43 -

    	 

    

 

(c)          The
Granting Clauses is amended to change the reference from clauses “(a)-(f)” to clauses “(a)-(h)” and the
reference from clauses “(a)-(h)” to clauses “(a)-(i)”.

 

 (d)          Section 1.1 is amended to add the following three new definitions:

 

“Permitted REO Equity
Interest”: Equity interests in any Permitted REO Subsidiary.

 

“Permitted REO Subsidiary”: 
A wholly-owned subsidiary of the Issuer, generally formed for the purpose of holding and operating REO Property and for any other
necessary or desirable activities in connection therewith.

 

“REO Property”:
With respect to any Loan (including without limitation, any Mezzanine Loan), any and all right, title or interest in any assets
acquired through foreclosure, acceptance of a deed-in-lieu of foreclosure, bankruptcy or similar insolvency proceeding or otherwise
in accordance with applicable law or by enforcement of any guarantees related to such Loan, in each case in connection with the
default or imminent default of such Loan (or the underlying commercial mortgage loan or mezzanine loan), including without limitation,
real property and improvements thereon, personal property included therein or incidental thereto or equity, partnership, membership
or beneficial ownership interests in the related borrower or other Person constituting collateral for such Loan.

 

(e)          The
definition of “Company Administrative Expenses” in Section 1.1 is hereby amended by adding the following immediately
after “and any amounts due in respect of the listing of any Notes on the Irish Stock Exchange” in clause (xii) of such
definition:

 

“and any
fees, costs and expenses of, or relating to, a Permitted REO Subsidiary (including relating to the acquisition, transfer or disposition
of a Permitted REO Equity Interest)”.

 

(f)           Section
7.4(c)(ii) is amended to read as follows: “the Issuer shall not have any subsidiaries other than Permitted REO Subsidiaries,
and”.

 

(g)          Section
1.1 is amended by replacing the definition of “Specified Type” with the following definition:

 

“Specified
Type”: Each of a Loan, CMBS Security, CRE CDO Security, REIT Debt Security, Preferred Equity Security and any Permitted
REO Equity Interest.

 

(h)          New
Section 7.20 is inserted after the end of Section 7.19 to read in full as follows:

 

    	- 44 -

    	 

    

 

Section 7.20.    Permitted
REO Subsidiaries.

 

(a)          The Issuer
has entered into or will enter into certain limited liability company agreements and limited partnership agreements attached hereto
as Exhibit A pursuant to certain assignment and assumption or transfer agreements on or about the date hereof in connection
with the acquisition of the Permitted REO Subsidiaries identified on Schedule A hereto.  The Issuer may from time to
time, as directed by the Collateral Manager, form one or more Permitted REO Subsidiaries by entering into one or more limited liability
company agreements or limited partnership agreements subject to the following criteria and requirements:

 

(1) the Issuer
shall only form a Permitted REO Subsidiary for the purpose of holding, operating, realizing and/or disposing of any REO Property
in connection with a foreclosure, workout or restructuring and for any other necessary or desirable activities in connection therewith;

 

(2)          as long
as any Notes are Outstanding, the Issuer shall not sell, transfer, or otherwise dispose of its interests in any Permitted REO Subsidiary
unless the assets constituting any REO Property (or the proceeds thereof) in such Permitted REO Subsidiary have been distributed
to the Issuer or have been sold, transferred or otherwise disposed of;

 

(3)          as long
as a Permitted REO Subsidiary has not ceased to be owned by the Issuer in accordance with clause (2) above, the Issuer shall adhere
to such procedures as are specified in such Permitted REO Subsidiary's organizational documents for maintaining its existence;

 

(4)          in the
event that a Permitted REO Subsidiary owns any asset upon the Stated Maturity or other latest permitted maturity under this Indenture
of any Notes, the Issuer shall dissolve such Permitted REO Subsidiary and liquidate its assets in accordance with the applicable
terms of the Permitted REO Subsidiary's organizational documents at the direction of the Collateral Manager and promptly deliver
the proceeds thereof to the Trustee for deposit into the Payment Account and distribution in accordance with Section 11.1;

 

(5) each Permitted
REO Subsidiary shall agree to be subject to and bound by each obligation or covenant of the Issuer under any Transaction Document
to which the Issuer is a party or by which the Issuer is bound with the same effect as if such Permitted REO Subsidiary had been
named as the Issuer thereunder;

 

(6) each Permitted
REO Subsidiary shall agree not to cause the Issuer to default in the performance of, or breach, any covenant, representation or
warranty of the Issuer under any Transaction Document to which the Issuer is a party or by which the Issuer is bound;

 

    	- 45 -

    	 

    

 

(7) each Permitted
REO Subsidiary shall grant all right, title and interest in, to and under any REO Property held by the related Permitted REO Subsidiary
to the Trustee, for the benefit and security of the Secured Parties;

 

(8) subject
to applicable law, the organizational documents for each Permitted REO Subsidiary shall require the related Permitted REO Subsidiary
to promptly distribute 100% of any distributions on, and proceeds of, any REO Property held by such Permitted REO Subsidiary, net
of any taxes, fees or assessments, to the Issuer as holder of the equity interest in such Permitted REO Subsidiary; and

 

(9) the organizational
documents for each Permitted REO Subsidiary shall require that the related Permitted REO Subsidiary have, at all times, at least
one independent director duly appointed to, and serving on, its board of directors or have a special member whose vote will be
required on specified separateness matters.

 

(b)         With respect
to any REO Property held by a Permitted REO Subsidiary for reporting purposes by the Trustee for characterization of proceeds as
either Interest Proceeds or Principal Proceeds and for purposes of the Collateral Quality Tests or Par Value Coverage Tests, the
Issuer will be deemed to directly own any REO Property held by a Permitted REO Subsidiary rather than the related Permitted REO
Equity Interest; provided that, for the avoidance of doubt, any distributions of Cash by the Permitted REO Subsidiary to
the Issuer shall be categorized as either Interest Proceeds or Principal Proceeds in accordance with the provisions of this Indenture
governing Cash received by the Issuer in respect of a Defaulted Security. With respect to any Permitted REO Subsidiary, the parties
hereto agree that any reports prepared by the Trustee with respect to any Permitted REO Equity Interest shall refer to any related
REO Property held by such Permitted REO Subsidiary instead of the related Permitted REO Equity Interests.

 

(c)         The Issuer
shall not, without the affirmative vote or written consent of 100% of its directors, exercise any voting rights with respect to
any Permitted REO Equity Interests seeking (i) any institution of any action to have such Permitted REO Subsidiary adjudicated
as bankrupt or insolvent, any consent to the institution of bankruptcy or insolvency proceedings against it, any request or consent
to the entry of any order for relief or the appointment of a receiver, liquidator, assignee, trustee, sequestrator or other similar
official for it or for any substantial part of its property, any liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief
of debtors, any making of any general assignment for the benefit of creditors, or any admission in writing that it is unable to
pay its debts generally as they become due or (ii) to take any corporate action in furtherance of any action set forth in this
Section 7.20. Each of the Co-Issuer and the Trustee agrees that it shall not seek, or join in, the institution of any action or
proceeding to have a Permitted REO Subsidiary adjudicated as bankrupt or insolvent.

 

    	- 46 -

    	 

    

 

(d)         Upon each
future formation of a Permitted REO Subsidiary, prompt written notice thereof shall be provided by the Issuer to each Rating Agency.

 

SECTION 2. Effective
Date. The effective date of this Supplemental Indenture shall be the date first written above.

 

SECTION 3. Reference
to “Indenture”; Effect of this Supplemental Indenture. Pursuant to Section 8.4, upon the effectiveness of this
Supplemental Indenture, the Current Indenture shall be modified in accordance with this Supplemental Indenture, and this Supplemental
Indenture shall form a part of the Current Indenture for all purposes; and every Holder of Securities theretofore and thereafter
authenticated and delivered under the Current Indenture and each Hedge Counterparty shall be bound thereby. All references in the
Indenture and the Securities to the “Indenture” (including correlative references such as “hereof”) shall
be deemed to refer to the Current Indenture as supplemented and amended by this Supplemental Indenture. Except as otherwise specified
in this Supplemental Indenture, the Current Indenture shall remain in all respects unchanged and in full force and effect.

 

SECTION 4. Counterparts.
This Supplemental Indenture may be executed by the parties hereto in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

SECTION 5. Governing
Law. THIS SUPPLEMENTAL INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE
TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

 

SECTION 6. Execution,
Delivery and Validity. Each of the Issuer, the Co-Issuer and the Advancing Agent represents and warrants to the Trustee that
this Supplemental Indenture has been duly and validly executed and delivered by such Person and constitutes its legal, valid and
binding obligation, enforceable against such Person in accordance with its terms. The Trustee accepts the amendment to the Current
Indenture as set forth in this Supplemental Indenture and agrees to perform the duties of the Trustee upon the terms and conditions
set forth herein and in the Current Indenture set forth therein. Without limiting the generality of the foregoing, the Trustee
assumes no responsibility for the correctness of the recitals contained herein, which shall be taken as the statements of the Co-Issuers.
In entering into the Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of this Indenture
relating to the conduct of or affecting the liability of or affording protection to the Trustee, including but not limited to the
provisions of Sections 6.1 and 6.3.

 

SECTION 7. Successors
and Assigns. All covenants and agreements in this Supplemental Indenture by the Issuer and Co-Issuer shall bind their respective
successors and assigns, whether so expressed or not.

 

[remainder of this page intentionally left
blank]

 

    	- 47 -

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have caused this Supplemental Indenture to be executed as of the date first written above.

 

	 	Executed as a Deed
	 	 
	 	GRAMERCY REAL ESTATE CDO 2006-1, LTD., as Issuer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	In the presence of:
	 	 
	 	Witness:	 

 

	 	 	Name:
	 	 	Occupation:
	 	 	Title: 

 

	 	GRAMERCY REAL ESTATE CDO 2006-1 LLC, as Co-Issuer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	- 48 -

    	 

    

 

	 	CWCAPITAL INVESTMENTS LLC,
	 	as Advancing Agent
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	- 49 -

    	 

    

 

Exhibit A

 

Limited Liability Company
Agreements and Limited Partnership Agreements

 

    	- 50 -

    	 

    

 

Schedule A

 

Permitted REO Subsidiaries

 

[To come]

 

    	- 51 -

    	 

    

 

FIRST SUPPLEMENTAL INDENTURE
dated as of [●], 2013 (this “Supplemental Indenture”) among GRAMERCY REAL ESTATE CDO 2007-1, LTD., a Cayman Islands
exempted company with limited liability (together with its permitted successors and assigns, the “Issuer”), GRAMERCY
REAL ESTATE CDO 2007-1 LLC, a limited liability company formed under the laws of
Delaware (together with its permitted successors and assigns, the “Co-Issuer” and, together with the Issuer, the “Co-Issuers”),
WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as trustee, paying agent, calculation agent, transfer agent,
custodial securities intermediary, backup advancing agent and notes registrar under the Current Indenture referred to below (together
with its permitted successors and assigns in the trusts under the Current Indenture, the “Trustee”), and CWCAPITAL
INVESTMENTS LLC, a Massachusetts limited liability company, as successor advancing agent to GKK Liquidity LLC (together with its
permitted successors and assigns in the trusts under the Current Indenture, the “Advancing Agent”), to the Indenture
dated as of August 8, 2007 among the Issuer, the Co-Issuer, the Trustee and GKK Liquidity LLC, as the advancing agent (the “Current
Indenture”). For all purposes of this Supplemental Indenture, all capitalized terms used herein without definition shall
have the respective meanings set forth or referred to in the Current Indenture. Except as otherwise specified herein, each reference
herein to a “Section” is to such Section of the Current Indenture.

 

RECITALS

 

The Co-Issuers, the Trustee
and the Advancing Agent are parties to the Current Indenture.

 

Pursuant to the first
paragraph of Section 8.2, except with respect to certain enumerated modifications, with the written consent of the Holders of not
less than a Majority in Aggregate Outstanding Amount (excluding any Collateral Manager Securities) of the Notes of each class materially
and adversely affected thereby, all of the Holders of Preferred Shares if materially and adversely affected thereby and the Controlling
Class (but only for so long as the Class A-1 Notes and/or the Class A-2 Notes are the Controlling Class), by Act of said Securityholders
delivered to the Trustee and the Co-Issuers and subject to satisfaction of the Rating Agency Condition, the Trustee and the Co-Issuers
may enter into one or more indentures supplemental to the Current Indenture to add any provisions to, or change in any manner or
eliminate any of the provisions of, the Current Indenture or modify in any manner the rights of the Holders of the Notes of such
Class or the Preferred Shares, as the case may be, under the Current Indenture.

 

Pursuant to Section 8.2,
if any Class of Notes is Outstanding and rated by a Rating Agency, the Trustee shall not enter into any supplemental indenture
if, as a result of such supplemental indenture, such Rating Agency would cause the rating of any such Notes to be immediately reduced
or withdrawn. At the cost of the Issuer, for so long as any Class of Notes shall remain Outstanding and is rated by a Rating Agency,
the Trustee shall provide to such Rating Agency a copy of any proposed supplemental indenture at least 15 days prior to the
execution thereof by the Trustee, and, for so long as such Notes are Outstanding and so rated, request written confirmation that
such Rating Agency will not, as a result of such supplemental indenture, cause the rating of any such Class of Notes to be reduced
or withdrawn.

 

    	- 52 -

    	 

    

 

Pursuant to Section 8.6,
notwithstanding anything in Article 8 to the contrary, (a) so long as the Class A-1 Notes and/or the Class A-2 Notes or the Class
A-2 Note Insurer, as applicable, are the Controlling Class, the Issuer, the Co-Issuer and the Trustee shall not enter into any
supplemental indenture without obtaining the consent of the Holders of a Majority of the Controlling Class (such consent not to
be unreasonably withheld); provided that, if the Holders of the Controlling Class or the Class A-2 Note Insurer, as applicable,
do not object to such supplemental indenture within 15 Business Days after notice is given, such Holders shall be deemed to have
consented to such supplemental indenture; and (b) the Issuer shall not enter into any supplemental indenture without the consent
of each Hedge Counterparty (such consent not to be unreasonably withheld), and each Hedge Counterparty shall not be bound by any
supplemental indenture unless such Hedge Counterparty shall have given its prior written consent or shall have failed to respond
within 15 Business Days after the Issuer or the Trustee has provided it with prior written notice thereof.

 

The Co-Issuers wish to
enter into this Supplemental Indenture in order to permit the Issuer to have one or more special purpose subsidiaries solely for
the purpose of holding title to any property obtained in connection with any foreclosure or other similar proceeding on, or any
transfer in lieu thereof of, any property securing any Collateral Debt Security, or by transfer of any property held by any Person
on behalf of the Issuer which previously secured any Collateral Debt Security whether or not then outstanding.

 

In connection with this
Supplemental Indenture, the following events have occurred:

 

		(i)	In connection with the first paragraph of Section 8.2, the Trustee has given fifteen (15) Business
Days’ notice of this Supplemental Indenture (along with a description of the substance of such supplement provided by GKK
Manager LLC in its capacity as the prior collateral manager (“GKKM”)) to the Holders of each Class of Notes
and the Holders of the Preferred Shares and the Trustee has not received notice by the Holders of a Majority in Aggregate Outstanding
Amount (excluding any Collateral Manager Securities) of the Notes of any Class or the Holders of Preferred Shares that such Holders
would be materially and adversely affected by this Supplemental Indenture.

 

		(ii)	In connection with the third paragraph of Section 8.2, the Trustee, at the cost of the Issuer and
prior to the execution of this Supplemental Indenture, has provided to each of the Rating Agencies a copy of this Supplemental
Indenture in proposed form.  In connection with the execution of this Supplemental Indenture, one or more of the Rating Agencies
have consented to, accepted or otherwise agreed to a shorter notice period.

 

    	- 53 -

    	 

    

 

		(iii)	As required by Section 8.2, the Trustee has received confirmation in writing from each of S&P,
Moody’s and Fitch that the current ratings on the Notes will not be immediately reduced, qualified or withdrawn as a result
of this Supplemental Indenture and, as a result, the Rating Agency Condition and the condition of Section 8.2 with respect to S&P,
Moody’s and Fitch has been satisfied with respect to this Supplemental Indenture.

 

		(iv)	As provided in Section 8.3, the Collateral Manager has received written notice of this Supplemental
Indenture prior to the execution and delivery of this Supplemental Indenture, and has consented to, accepted or otherwise agreed
to a shorter notice period. In connection with Section 8.3, the Trustee and the Issuer have received the written consent of the
Collateral Manager to this Supplemental Indenture.

 

		(v)	Pursuant to Section 8.3, the Trustee has received an Opinion of Counsel of Clifford Chance US LLP
regarding this Supplemental Indenture, which Opinion of Counsel is subject to the assumptions, limitations, qualifications and
exceptions set forth therein.

 

		(vi)	The Trustee has received an Opinion of Counsel from a nationally recognized U.S. tax counsel experienced
in such matters, to the effect that this Supplemental Indenture will not cause the Issuer to fail to be treated as a Qualified
REIT Subsidiary or otherwise be treated as a foreign corporation subject to U.S. federal income tax on a net income tax basis,
which Opinion of Counsel is subject to the assumptions, limitations, qualifications and exceptions set forth therein.

 

		(vii)	In connection with the first paragraph of Section 8.6, the Trustee has given fifteen (15) Business
Days’ notice of this Supplemental Indenture (along with a description of the substance of such supplement provided by GKKM)
to the Holders of the Controlling Class and the Trustee has either received the written consent of the Holders of a Majority of
the Controlling Class, or has not received notice of an objection to this Supplemental Indenture by the Holders of the Controlling
Class, including the Class A-2 Note Insurer.

 

		(viii)	In connection with the second paragraph of Section 8.6, the Trustee has given fifteen (15) Business
Days’ notice of this Supplemental Indenture (along with a description of the substance of such supplement provided by GKKM)
to the Hedge Counterparty and the Trustee has either received the written consent of the Hedge Counterparty, or has not received
notice of an objection to this Supplemental Indenture by the Hedge Counterparty.

 

Accordingly, in consideration
of the premises contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

    	- 54 -

    	 

    

 

SECTION 1. Amendments.
The Current Indenture is hereby amended as follows:

 

(a)        The
Granting Clauses is amended to add a new clause (f) which shall read “equity interests in any Permitted REO Subsidiary”.

 

(b)        The
Granting Clauses is amended to change current clauses (f) and (g), and references thereto, to clauses (g) and (h), respectively.

 

(c)        The
Granting Clauses is amended to change the reference from clauses “(a)-(f)” to clauses “(a)-(g)” and the
reference from clauses “(a)-(g)” to clauses “(a)-(h)”.

 

 (d)        Section 1.1 is amended to add the following three new definitions:

 

“Permitted REO Equity
Interest”: Equity interests in any Permitted REO Subsidiary.

 

“Permitted REO Subsidiary”: 
A wholly-owned subsidiary of the Issuer, generally formed for the purpose of holding and operating REO Property and for any other
necessary or desirable activities in connection therewith.

 

“REO Property”:
With respect to any Loan (including without limitation, any Mezzanine Loan), any and all right, title or interest in any assets
acquired through foreclosure, acceptance of a deed-in-lieu of foreclosure, bankruptcy or similar insolvency proceeding or otherwise
in accordance with applicable law or by enforcement of any guarantees related to such Loan, in each case in connection with the
default or imminent default of such Loan (or the underlying commercial mortgage loan or mezzanine loan), including without limitation,
real property and improvements thereon, personal property included therein or incidental thereto or equity, partnership, membership
or beneficial ownership interests in the related borrower or other Person constituting collateral for such Loan.

 

(e)        The
definition of “Company Administrative Expenses” in Section 1.1 is hereby amended by adding the following immediately
after “and any amounts due in respect of the listing of any Notes on the Irish Stock Exchange” in clause (xii) of such
definition:

 

“and any
fees, costs and expenses of, or relating to, a Permitted REO Subsidiary (including relating to the acquisition, transfer or disposition
of a Permitted REO Equity Interest)”.

 

(f)
        Section 7.4(c)(ii) is amended to read as follows: “the Issuer shall not
have any subsidiaries other than Permitted REO Subsidiaries, and”.

 

(g)        Section
1.1 is amended by replacing the definition of “Specified Type” with the following definition:

 

    	- 55 -

    	 

    

 

“Specified
Type”: Each of a Loan, CMBS Security, Preferred Equity Security and any Permitted REO Equity Interest.

 

(h)        New
Section 7.20 is inserted after the end of Section 7.19 to read in full as follows:

 

Section 7.20.       Permitted
REO Subsidiaries.

 

(a)          The Issuer
may from time to time, as directed by the Collateral Manager, form one or more Permitted REO Subsidiaries by entering into one
or more limited liability company agreements or limited partnership agreements subject to the following criteria and requirements:

 

(1) the Issuer
shall only form a Permitted REO Subsidiary for the purpose of holding, operating, realizing and/or disposing of any REO Property
in connection with a foreclosure, workout or restructuring and for any other necessary or desirable activities in connection therewith;

 

(2)        as long
as any Notes are Outstanding, the Issuer shall not sell, transfer, or otherwise dispose of its interests in any Permitted REO Subsidiary
unless the assets constituting any REO Property (or the proceeds thereof) in such Permitted REO Subsidiary have been distributed
to the Issuer or have been sold, transferred or otherwise disposed of;

 

(3)        as long
as a Permitted REO Subsidiary has not ceased to be owned by the Issuer in accordance with clause (2) above, the Issuer shall adhere
to such procedures as are specified in such Permitted REO Subsidiary's organizational documents for maintaining its existence;

 

(4)        in the
event that a Permitted REO Subsidiary owns any asset upon the Stated Maturity or other latest permitted maturity under this Indenture
of any Notes, the Issuer shall dissolve such Permitted REO Subsidiary and liquidate its assets in accordance with the applicable
terms of the Permitted REO Subsidiary's organizational documents at the direction of the Collateral Manager and promptly deliver
the proceeds thereof to the Trustee for deposit into the Payment Account and distribution in accordance with Section 11.1;

 

(5) each Permitted
REO Subsidiary shall agree to be subject to and bound by each obligation or covenant of the Issuer under any Transaction Document
to which the Issuer is a party or by which the Issuer is bound with the same effect as if such Permitted REO Subsidiary had been
named as the Issuer thereunder;

 

(6) each Permitted
REO Subsidiary shall agree not to cause the Issuer to default in the performance of, or breach, any covenant, representation or
warranty of the Issuer under any Transaction Document to which the Issuer is a party or by which the Issuer is bound;

 

    	- 56 -

    	 

    

 

(7) each Permitted
REO Subsidiary shall grant all right, title and interest in, to and under any REO Property held by the related Permitted REO Subsidiary
to the Trustee, for the benefit and security of the Secured Parties;

 

(8) subject
to applicable law, the organizational documents for each Permitted REO Subsidiary shall require the related Permitted REO Subsidiary
to promptly distribute 100% of any distributions on, and proceeds of, any REO Property held by such Permitted REO Subsidiary, net
of any taxes, fees or assessments, to the Issuer as holder of the equity interest in such Permitted REO Subsidiary; and

 

(9) the organizational
documents for each Permitted REO Subsidiary shall require that the related Permitted REO Subsidiary have, at all times, at least
one independent director duly appointed to, and serving on, its board of directors or have a special member whose vote will be
required on specified separateness matters.

 

(b)        With respect
to any REO Property held by a Permitted REO Subsidiary for reporting purposes by the Trustee for characterization of proceeds as
either Interest Proceeds or Principal Proceeds and for purposes of the Collateral Quality Tests or Par Value Coverage Tests, the
Issuer will be deemed to directly own any REO Property held by a Permitted REO Subsidiary rather than the related Permitted REO
Equity Interest; provided that, for the avoidance of doubt, any distributions of Cash by the Permitted REO Subsidiary to
the Issuer shall be categorized as either Interest Proceeds or Principal Proceeds in accordance with the provisions of this Indenture
governing Cash received by the Issuer in respect of a Defaulted Security. With respect to any Permitted REO Subsidiary, the parties
hereto agree that any reports prepared by the Trustee with respect to any Permitted REO Equity Interest shall refer to any related
REO Property held by such Permitted REO Subsidiary instead of the related Permitted REO Equity Interests.

 

(c)        The Issuer
shall not, without the affirmative vote or written consent of 100% of its directors, exercise any voting rights with respect to
any Permitted REO Equity Interests seeking (i) any institution of any action to have such Permitted REO Subsidiary adjudicated
as bankrupt or insolvent, any consent to the institution of bankruptcy or insolvency proceedings against it, any request or consent
to the entry of any order for relief or the appointment of a receiver, liquidator, assignee, trustee, sequestrator or other similar
official for it or for any substantial part of its property, any liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief
of debtors, any making of any general assignment for the benefit of creditors, or any admission in writing that it is unable to
pay its debts generally as they become due or (ii) to take any corporate action in furtherance of any action set forth in this
Section 7.20. Each of the Co-Issuer and the Trustee agrees that it shall not seek, or join in, the institution of any action or
proceeding to have a Permitted REO Subsidiary adjudicated as bankrupt or insolvent.

 

    	- 57 -

    	 

    

 

(d)        Upon each
future formation of a Permitted REO Subsidiary, prompt written notice thereof shall be provided by the Issuer to each Rating Agency.

 

SECTION 2. Effective
Date. The effective date of this Supplemental Indenture shall be the date first written above.

 

SECTION 3. Reference
to “Indenture”; Effect of this Supplemental Indenture. Pursuant to Section 8.4, upon the effectiveness of this
Supplemental Indenture, the Current Indenture shall be modified in accordance with this Supplemental Indenture, and this Supplemental
Indenture shall form a part of the Current Indenture for all purposes; and every Holder of Securities theretofore and thereafter
authenticated and delivered under the Current Indenture and each Hedge Counterparty shall be bound thereby. All references in the
Indenture and the Securities to the “Indenture” (including correlative references such as “hereof”) shall
be deemed to refer to the Current Indenture as supplemented and amended by this Supplemental Indenture. Except as otherwise specified
in this Supplemental Indenture, the Current Indenture shall remain in all respects unchanged and in full force and effect.

 

SECTION 4. Counterparts.
This Supplemental Indenture may be executed by the parties hereto in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

SECTION 5. Governing
Law. THIS SUPPLEMENTAL INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE
TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

 

SECTION 6. Execution,
Delivery and Validity. Each of the Issuer, the Co-Issuer and the Advancing Agent represents and warrants to the Trustee that
this Supplemental Indenture has been duly and validly executed and delivered by such Person and constitutes its legal, valid and
binding obligation, enforceable against such Person in accordance with its terms. The Trustee accepts the amendment to the Current
Indenture as set forth in this Supplemental Indenture and agrees to perform the duties of the Trustee upon the terms and conditions
set forth herein and in the Current Indenture set forth therein. Without limiting the generality of the foregoing, the Trustee
assumes no responsibility for the correctness of the recitals contained herein, which shall be taken as the statements of the Co-Issuers.
In entering into this Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of the Indenture
relating to the conduct of or affecting the liability of or affording protection to the Trustee, including but not limited to the
provisions of Sections 6.1 and 6.3.

 

    	- 58 -

    	 

    

 

SECTION 7. Successors
and Assigns. All covenants and agreements in this Supplemental Indenture by the Issuer and Co-Issuer shall bind their respective
successors and assigns, whether so expressed or not.

 

[remainder of this page intentionally left
blank]

 

    	- 59 -

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Supplemental Indenture to be executed as of the date first written above.

 

	 	Executed as a Deed
	 	 
	 	GRAMERCY REAL ESTATE CDO 2007-1, LTD., as Issuer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	In the presence of:
	 	 
	 	Witness:	 

	 	Name:	 
	 	Occupation:	 

 

	 	GRAMERCY REAL ESTATE CDO 2007-1 LLC, as Co-Issuer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	- 60 -

    	 

    
 

	 	CWCAPITAL INVESTMENTS LLC,
	 	as Advancing Agent
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	- 61 -

    	 

    

 

Exhibit C

***** Direction Letter to ***** relating to Gramercy 2006 CDO

 

    	- 62 -

    	 

    
 

EXHIBIT C

 

************

 

[DATE]

 

Via Electronic Mail and Overnight Courier

 

To: ************ 

[______________________]

 

		Re:	CREDIT DEFAULT SWAP TRANSACTION Reference #[_____________] 

			relating to Gramercy Real Estate CDO 2006-1, Ltd. and Gramercy 

			Real Estate CDO 2006-1 LLC

 

Ladies and Gentlemen:

 

Reference is made herein to the ISDA Master
Agreement, dated as of [____________], 2006 (the “ISDA Master”), between LaCrosse Financial Products, LLC (“LaCrosse”)
and ************ (“************ the Schedule thereto (the “ISDA
Schedule”), dated as of [____________], 2006, and that certain confirmation thereunder titled Re: CREDIT DEFAULT SWAP
TRANSACTION Reference #[____________] relating to Gramercy Real Estate CDO 2006-1, Ltd. and Gramercy Real Estate CDO 2006-1 (the
“Confirmation” and, together with the ISDA Master and ISDA Schedule, the “ISDA Agreement”).

 

Pursuant to Section [9] of the Confirmation,
************ (“************ hereby directs ************ to:

 

(A) complete, and cause
a signatory with proper authority (and any other required authorization and approvals) to execute, the ballot attached as Exhibit
I hereto, and (i) promptly (and, in any event, no later than 4:30p.m. EST on February [●], 2013) return such original ballot
to Wells Fargo Bank, National Association, as the trustee in accordance with the instructions set forth therein and (ii) immediately
(and, in any event, no later than 4:30p.m. EST on February [●], 2013) return an electronic copy of such completed and executed
ballot to ************ at the email address set forth on the signature line hereof; and

 

(B) either (i) deliver
(or cause to be delivered) to Wells Fargo Bank, National Association, as the trustee, no later than 4:30 pm (Eastern Standard Time)
on February [●], 2013 (or such later date and time provided by GKK Manager LLC), the consent of the Holders of U.S.$[_______________]
of Class A-1 Notes to the proposed supplemental indenture relating to Gramercy Real Estate CDO 2006-1, Ltd. or (ii) not deliver
(or cause to be delivered) an objection to such proposed supplemental indenture.

 

************

 

    	- 63 -

    	 

    

 

This letter shall be construed in accordance
with the laws of the State of New York (excluding provisions regarding conflicts of laws).

 

The sending of this letter should not be
construed to limit in any manner ***** or LaCrosse’s rights to exercise any and all other rights and remedies provided
for under the ISDA Agreement, any documents related thereto or applicable law.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	- 64 -

    	 

    

 

	Very truly yours,
	 
	************
	 
	By:	 
	Name:   	 
	Title: 	 

 

Address for notices:

 

    	- 65 -

    	 

    

 

Exhibit I

 

BALLOT 

 

(for Class A-1 Noteholders only)

 

______________, 201__

 

Please
complete and sign the Ballot stating that you either approve or object to the Assignment and Assumption and send it by overnight
delivery and by fax to the Trustee by 4:30 pm (Eastern Standard Time) on February 28, 2013 at the following address:

 

Wells Fargo
Bank, National Association,

as Trustee

9062 Old
Annapolis Road

Columbia,
Maryland 21045

Attn.:
Maire Farrell

Phone:
410-884-6439

Fax: 1-866-373-0261

 

		Re:	(i) Collateral Management Agreement, dated as of August 24, 2006 (the “Existing
Collateral Management Agreement”), between Gramercy Real Estate CDO 2006-1, Ltd. (the “Issuer”)
and GKK Manager LLC (“GKKM”), as existing Collateral Manager (the “Existing Collateral Manager”),
and (ii) the Indenture, dated as of August 24, 2006, among the Issuer, Gramercy Real Estate CDO 2006-1 LLC (the “Co-Issuer”
and, together with the Issuer, the “Co-Issuers”), GKK Liquidity LLC, as advancing agent (the “Advancing
Agent”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), paying agent, calculation
agent, transfer agent, custodial securities intermediary, backup advancing agent and notes registrar (“Wells Fargo Bank”),
as amended and supplemented by the First Supplemental Indenture thereto, dated as of September 26, 2007, and the Second Supplemental
Indenture thereto, dated as of August 5, 2008, each among the Co-Issuers, the Advancing Agent and Wells Fargo Bank, and the Indenture
Amendment, dated as of October 28, 2010, among the Co-Issuers and the Existing Collateral Manager and acknowledged by Wells Fargo
Bank (as amended and supplemented, the “Indenture”)

 

Ladies and
Gentlemen:

 

Reference is made to
the Notice of Proposed Assignment and Assumption of Collateral Management Agreement and Request for Approval From Class A-1 Noteholders
dated February [●], 2013 from GKK Manager LLC, as Existing Collateral Manager (the “Notice”). Capitalized
terms used in this Ballot without definition are used as defined in the Notice or the Existing Collateral Management Agreement
or, if not defined therein, in the Indenture. The undersigned, the Holder (or such Holder’s proxyholder) of one or more Class
A-1 Notes as specified below as of February [●], 2013 (the “Notice Record Date”), hereby acknowledges
that the undersigned has received a copy of the Notice.

 

    	- 66 -

    	 

    

 

If the undersigned
is a beneficial owner rather than a Holder, references herein to “Holder” shall be construed accordingly.

 

This is to certify
that the Person identified below is the beneficial owner (in the case of Global Securities) or the Holder of the aggregate face
amount of the Class A-1 Notes as specified below.

 

IN ADDITION TO SIGNING AND COMPLETING THIS
BALLOT, PLEASE CLEARLY INSERT THE AGGREGATE FACE AMOUNT OF THE CLASS A-1 NOTES AND CORRESPONDING CUSIP NUMBER THAT YOU HOLD
AND COMPLETE AND RETURN AN EXECUTED COPY OF THE “BENEFICIAL HOLDER INFORMATION FORM” ATTACHED HERETO.

 

	Note	  Aggregate Face
   Amount	CUSIP*	 	 
	Class  A-1 Notes	 	 	 	 
	 	 	 	 	 
	Class  A-1 Rule 144A Global Securities	  $__________________	38500VAA4	 	 
	Class  A-1 Regulation S Global Securities	  $__________________	G40438AA4	 	 

 

 

*
The Collateral Manager shall not be responsible for the use of the CUSIP numbers selected, nor is any representation made
herein as to their correctness indicated in this Approval, the Notice or as printed on any Note. The numbers are included solely
for the convenience of the Holders.

 

    	- 67 -

    	 

    

 

The undersigned
Beneficial Owner or Holder of the Class A-1 Notes, as of the Notice Record Date in connection with the Notice, hereby [please check
one]:

 

_____ approves the Assignment
and Assumption as referred to in the Notice.

 

_____ objects to the Assignment
and Assumption as referred to in the Notice.

 

	 	 
	 	Name of Holder*
	 	 
	 	 
	 	Name of Beneficial Owner
	 	 
	 	 
	 	Signature of Beneficial Owner or Holder
	 	or duly authorized signatory of Beneficial
	 	Owner or Holder

 

Medallion Guarantee Required:

(U.S. Persons should affix stamp & signature; Non-U.S.
Persons should provide notarization)

 

 

*
In the case of book entry Notes held through The Depository Trust Company (“DTC”), please insert the name submitted
to DTC for purposes of the securities listing position. In the case of Notes held in physical definitive form, please insert the
name as appears on such Notes.

 

    	- 68 -

    	 

    

 

BENEFICIAL HOLDER INFORMATION FORM

 

For Class A-1 Noteholders of:

Gramercy
real estate cdo 2006-1, ltd.

 

	
        Please complete the following and return to:

        Maire Farrell, Wells Fargo Bank, N.A., Specialized Asset Services,
        9062 Old Annapolis Road, Columbia, MD

        21045, Attn: Maire Farrell

        Fax: (866) 373-0261, Phone: (410) 884-6439, Email: maire.farrell@wellsfargo.com

 

Please check one.

 

		___	Beneficial Owner. The undersigned hereby represents and warrants that it is a beneficial
owner of the Notes, that the undersigned is authorized to provide direction for their pro rata portion owned and that such power
has not been granted nor assigned to any other party or person.

 

		___	Nominee or Advisor. The undersigned hereby represents and warrants that it is a nominee
or advisor for the beneficial owner, that the undersigned is authorized to provide direction for their pro rata portion owned and
that such power has not been granted nor assigned to any other party or person.

 

CLASS: _______________

 

CUSIP:  _______________

 

ORIGINAL FACE AMOUNT: $__________________

 

NOMINEE NAME: _____________________

 

NOMINEE BANK (DTC Participant # if Applicable): ___________________________

 

(The following information is important to facilitate
conference calls, if needed)

 

Beneficiary Company Name: _____________________________

Contact Name:

 

	Address:	 
	 	 
	 	 

 

	Phone: 	 	 	Facsimile:	 
	E-mail:	 	 	 	 

 

	Signature:	 	 	Date:	 

 

    	- 69 -

    	 

    

 

 Exhibit D

CDO Issuer 2006 Class A-1 Assignment Consent

 

    	- 70 -

    	 

    
 

Exhibit D

 

BALLOT 

 

(for Class A-1 Noteholders only)

 

______________, 201__

 

Please
complete and sign the Ballot stating that you either approve or object to the Assignment and Assumption and send it by overnight
delivery and by fax to the Trustee by 4:30 pm (Eastern Standard Time) on February 28, 2013 at the following address:

 

Wells Fargo
Bank, National Association,

as Trustee

9062 Old
Annapolis Road

Columbia,
Maryland 21045

Attn.:
Maire Farrell

Phone:
410-884-6439

Fax: 1-866-373-0261

 

		Re:	(i) Collateral Management Agreement, dated as of August 24, 2006 (the “Existing
Collateral Management Agreement”), between Gramercy Real Estate CDO 2006-1, Ltd. (the “Issuer”)
and GKK Manager LLC (“GKKM”), as existing Collateral Manager (the “Existing Collateral Manager”),
and (ii) the Indenture, dated as of August 24, 2006, among the Issuer, Gramercy Real Estate CDO 2006-1 LLC (the “Co-Issuer”
and, together with the Issuer, the “Co-Issuers”), GKK Liquidity LLC, as advancing agent (the “Advancing
Agent”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), paying agent, calculation
agent, transfer agent, custodial securities intermediary, backup advancing agent and notes registrar (“Wells Fargo Bank”),
as amended and supplemented by the First Supplemental Indenture thereto, dated as of September 26, 2007, and the Second Supplemental
Indenture thereto, dated as of August 5, 2008, each among the Co-Issuers, the Advancing Agent and Wells Fargo Bank, and the Indenture
Amendment, dated as of October 28, 2010, among the Co-Issuers and the Existing Collateral Manager and acknowledged by Wells Fargo
Bank (as amended and supplemented, the “Indenture”)

 

Ladies and
Gentlemen:

 

Reference is made to
the Notice of Proposed Assignment and Assumption of Collateral Management Agreement and Request for Approval From Class A-1 Noteholders
dated February [ ], 2012 from GKK Manager LLC, as Existing Collateral Manager (the “Notice”). Capitalized terms
used in this Ballot without definition are used as defined in the Notice or the Existing Collateral Management Agreement or, if
not defined therein, in the Indenture. The undersigned, the Holder (or such Holder’s proxyholder) of one or more Class A-1
Notes as specified below as of February [ ], 2012 (the “Notice Record Date”), hereby acknowledges that the undersigned
has received a copy of the Notice.

 

    	- 71 -

    	 

    

 

If the undersigned
is a beneficial owner rather than a Holder, references herein to “Holder” shall be construed accordingly.

 

This is to certify
that the Person identified below is the beneficial owner (in the case of Global Securities) or the Holder of the aggregate face
amount of the Class A-1 Notes as specified below.

 

IN ADDITION TO SIGNING AND COMPLETING THIS
BALLOT, PLEASE CLEARLY INSERT THE AGGREGATE FACE AMOUNT OF THE CLASS A-1 NOTES AND CORRESPONDING CUSIP NUMBER THAT YOU HOLD
AND COMPLETE AND RETURN AN EXECUTED COPY OF THE “BENEFICIAL HOLDER INFORMATION FORM” ATTACHED HERETO.

 

	Note	  Aggregate Face

  Amount	CUSIP*	 	 
	Class  A-1 Notes	 	 	 	 
	Class  A-1 Rule 144A Global Securities	  $ __________________	38500VAA4	 	 
	Class  A-1 Regulation S Global Securities	  $ __________________	G40438AA4	 	 

 

 

* The Collateral Manager shall
not be responsible for the use of the CUSIP numbers selected, nor is any representation made herein as to their correctness indicated
in this Approval, the Notice or as printed on any Note. The numbers are included solely for the convenience of the Holders.

 

    	- 72 -

    	 

    

 

The undersigned
Beneficial Owner or Holder of the Class A-1 Notes, as of the Notice Record Date in connection with the Notice, hereby [please check
one]:

 

_____ approves the Assignment
and Assumption as referred to in the Notice.

 

_____ objects to the Assignment
and Assumption as referred to in the Notice.

 

	 	 
	 	Name of Holder*
	 	 
	 	 
	 	Name of Beneficial Owner
	 	 
	 	 
	 	Signature of Beneficial Owner or Holder
	 	or duly authorized signatory of Beneficial
	 	Owner or Holder

 

Medallion Guarantee Required:

(U.S. Persons should affix stamp & signature;
Non-U.S. Persons should provide notarization)

 

 

* In the case of book entry
Notes held through The Depository Trust Company (“DTC”), please insert the name submitted to DTC for purposes of the
securities listing position. In the case of Notes held in physical definitive form, please insert the name as appears on such
Notes.

 

    	- 73 -

    	 

    

 

BENEFICIAL HOLDER INFORMATION FORM

 

For Class A-1 Noteholders of:

Gramercy
real estate cdo 2006-1, ltd.

 

	
        Please complete the following and return to:

        Maire Farrell, Wells Fargo Bank, N.A., Specialized Asset Services,
        9062 Old Annapolis Road, Columbia, MD

        21045, Attn: Maire Farrell

        Fax: (866) 373-0261, Phone: (410) 884-6439, Email: maire.farrell@wellsfargo.com

 

Please check one.

 

		___	Beneficial Owner. The undersigned hereby represents and warrants that it is a beneficial
owner of the Notes, that the undersigned is authorized to provide direction for their pro rata portion owned and that such power
has not been granted nor assigned to any other party or person.

 

		___	Nominee or Advisor. The undersigned hereby represents and warrants that it is a nominee
or advisor for the beneficial owner, that the undersigned is authorized to provide direction for their pro rata portion owned and
that such power has not been granted nor assigned to any other party or person.

 

CLASS: _______________

 

CUSIP:  _______________

 

ORIGINAL FACE AMOUNT: $__________________

 

NOMINEE NAME: _____________________

 

NOMINEE BANK (DTC Participant # if Applicable): ___________________________

 

(The following information is important to facilitate
conference calls, if needed)

 

Beneficiary Company Name: _____________________________

Contact Name:

 

	Address:	 
	 	 
	 	 

 

	Phone: 	 	 	Facsimile:	 
	E-mail:	 	 	 	 

 

	Signature:	 	 	Date:	 

 

    	- 74 -

    	 

    

 

Exhibit E

***** Direction Letter to ***** relating to Gramercy 2007 CDO

 

    	- 75 -

    	 

    
 

EXHIBIT E

 

************

 

[DATE]

 

Via Electronic Mail and Overnight Courier

 

To: The Parties Listed on Schedule A Hereto

 

		Re:	CREDIT DEFAULT SWAP TRANSACTION Reference #102 56 279 

			relating to Gramercy Real Estate CDO 2007-1, Ltd. and Gramercy 

			Real Estate CDO 2007-1 LLC

 

Ladies and Gentlemen:

 

Reference is made herein to the ISDA Master
Agreement, dated as of August 8, 2007 (the “ISDA Master”), between LaCrosse Financial Products, LLC (“LaCrosse”)
and ************ (“************ the Schedule thereto (the “ISDA Schedule”), dated as of August 8,
2007, and that certain confirmation thereunder titled Re: CREDIT DEFAULT SWAP TRANSACTION Reference #102 56 279 relating to Gramercy
Real Estate CDO 2007-1, Ltd. and Gramercy Real Estate CDO 2007-1 (the “Confirmation” and, together with the
ISDA Master and ISDA Schedule, the “ISDA Agreement”).

 

Pursuant to Section 9 of the Confirmation,
************ (“************ hereby directs ************ to:

 

(A) complete, and cause
a signatory with proper authority (and any other required authorization and approvals) to execute, the letter attached as Exhibit
I hereto, and (i) promptly (and, in any event, no later than 4:30p.m. EST on February 22, 2013) return three original copies
of such completed and executed letter to ************ at the address set forth on the signature line hereof and an executed copy to the
parties listed on Schedule A attached thereto and (ii) immediately (and, in any event, no later than 4:30p.m. EST on February 22,
2013) return an electronic copy of such completed and executed letter to ************ at the email address set forth on the signature line
hereof;

 

(B) complete, and cause
a signatory with proper authority (and any other required authorization and approvals) to execute, the ballot attached as Exhibit
II hereto, and (i) promptly (and, in any event, no later than 4:30p.m. EST on February [●], 2013) return such completed
and executed ballot to Wells Fargo Bank, National Association, as the trustee in accordance with the instructions set forth therein
and (ii) immediately (and, in any event, no later than 4:30p.m. EST on February [●], 2013) return an electronic copy of such
completed and executed ballot to ************ at the email address set forth on the signature line hereof; and

 

    	- 76 -

    	 

    

 

(C) either (i) deliver
(or cause to be delivered) to Wells Fargo Bank, National Association, as the trustee, no later than 4:30 pm (Eastern Standard Time)
on February [●], 2013 (or such later date and time provided by GKK Manager LLC), its consent to the proposed supplemental
indenture relating to Gramercy Real Estate CDO 2007-1, Ltd. or (ii) not deliver (or cause to be delivered) an objection to such
proposed supplemental indenture.

 

This letter shall be construed in accordance
with the laws of the State of New York (excluding provisions regarding conflicts of laws).

 

The sending of this letter should not be
construed to limit in any manner ***** or LaCrosse’s rights to exercise any and all other rights and remedies provided
for under the ISDA Agreement, any documents related thereto or applicable law.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	- 77 -

    	 

    

 

	Very truly yours,
	 
	***** 
	 
	By:	 
	Name: 	 
	Title: 	 

 

Address for notices:

*****

 

    	- 78 -

    	 

    

 

Schedule A

 

*****

 

    	- 79 -

    	 

    

 

Exhibit I

 

[DATE]

 

VIA FACSIMILE AND OVERNIGHT MAIL

 

To the Parties Listed on

Schedule A Attached Hereto

 

		Re:	Gramercy Real Estate CDO 2007-1, Ltd.

 

Dear Sir or Madam:

 

Reference is made to
the indenture, dated as of August 8, 2007 (as amended, modified or supplemented from time to time, the “Indenture”),
by and among Gramercy Real Estate CDO 2007-1, Ltd. (the “Issuer”), Gramercy Real Estate CDO 2007-1, LLC (the
“Co-Issuer”), GKK Liquidity LLC (including its successors and assigns, the “Advancing Agent”)
and Wells Fargo Bank, National Association (the “Trustee”). Capitalized terms used herein but not defined will
have the meanings ascribed to such terms in the Indenture.

 

***** (“*****”) hereby represents and warrants to the Trustee that (i) as of the date of this letter, it was the
beneficial owner of Class A-1 Notes in an aggregate principal amount of approximately USD [335,730,542.31] (such Class A-1 Notes,
the “***** Owned Notes”) and (ii) as of the date hereof, it is the beneficial owner of the ***** Owned Notes. Together,
the ***** Owned Notes and ***** as the Class A-2 Note Insurer constitute a Majority of the Controlling Class.
***** hereby agrees to provide prompt notice to the Trustee in the event that ***** ceases to be the beneficial owner of any *****
Owned Notes.

 

We have been informed
that GKK Manager LLC (including its successors and assigns, the “Collateral Manager”) believes that one or more
Events of Default may occur under Section 5.1(j) of the Indenture due to the Class A/B Par Value Ratio being less than 89.0% on
future Measurement Dates (each such Event of Default, an “Applicable Event of Default”). Pursuant to Section
5.14 of the Indenture, a Majority of the Controlling Class has the right to waive any Applicable Event of Default.

 

This letter is to advise
you that ***** hereby waives (x) each Applicable Event of Default that may have occurred prior to the date of this letter and (y)
immediately upon the occurrence thereof, each Applicable Event of Default that may occur from (and including) the date of this
letter until the earlier of (1) January 30, 2014 and (2) the date, if any, on which written direction expressly revoking such waiver
is provided to the Trustee by *****. ***** will continue to consider each subsequent Applicable Event of Default and determine whether
or not to waive such Applicable Event of Default or whether to exercise any other rights or remedies it has with respect to such
Applicable Event of Default. ***** reserves the right to revoke or extend any waiver at any time.

 

    	- 80 -

    	 

    

 

Upon the Trustee’s
execution and delivery of the attached acceptance of this letter agreement, this letter agreement will be the legal, valid and
binding agreement of ************ enforceable in accordance with its terms against ************ by the Trustee, except as such enforceability may
be limited by (i) bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and (ii) general
principles of equity. The foregoing agreement shall be governed by and construed in accordance with the laws of the State of New
York without regard to conflict of laws principles. ************ and the Trustee (the “Parties”) consent to the jurisdiction
of a state or federal court situated in New York City, New York in connection with any dispute hereunder. The Parties irrevocably
waive any objection each may now or hereafter have to venue in such court and any claim that a proceeding brought in such court
has been brought in an inconvenient forum. The Parties hereby expressly waive, to the full extent permitted by applicable law,
any right to trial by jury with respect to any judicial proceeding arising from or related to this letter agreement.

 

Should you have any questions regarding
this letter, please feel free to contact [        ] at [(    ) ____-_____].

 

Very truly yours,

 

[                   ]

 

	Accepted And Agreed as of the Date Hereof:
	Wells Fargo Bank, National Association, as Trustee
	 
	By: 	 
	 	 
	Name: 	 
	 	 
	Title: 	 

 

    	- 81 -

    	 

    

 

Schedule A

 

Wells Fargo Bank, National Association

9062 Old Annapolis Road, Columbia, Maryland 21045

Attention: CDO Trust Services — Gramercy Real Estate CDO
2007-1, Ltd.

 

GKK Manager LLC

c/o Gramercy Capital Corp.

420 Lexington Avenue, 18th Floor

New York, NY 10170

Attention: General Counsel

 

CWCapital Investments LLC

7501 Wisconsin Avenue, Suite 500West

Bethesda, MD 20814

Facsimile: (301) 255-4874

Attention: Charles Spetka

 

With a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue, Suite 500West

Bethesda, MD 20814

Attention: Daniel Warcholak

 

and

 

Clifford Chance US LLP

31 West 52nd Street

New York, NY 10019

Facsimile: (212) 878-8375

Attention: Steven T. Kolyer

 

Gramercy Real Estate CDO 2007-1, Ltd.

c/o MaplesFS Limited

P.O. Box 1093GT, Boundary Hall

Cricket Square, George Town

Grand Cayman

Cayman Islands

Attention: The Directors

Fax No.: (345) 945-7100

 

    	- 82 -

    	 

    

 

Gramercy Real Estate CDO 2007-1 LLC

c/o Gramercy Capital Corp.

420 Lexington Avenue, 18th Floor

New York, NY 10170

Attention: General Counsel

 

    	- 83 -

    	 

    

 

Exhibit II

 

BALLOT 

 

(for Class A-1 Noteholders only)

 

______________, 201__

 

Please
complete and sign the Ballot stating that you either approve or object to the Assignment and Assumption and send it by overnight
delivery and by fax to the Trustee by 4:30 pm (Eastern Standard Time) on February 28, 2013 at the following address:

 

Wells Fargo
Bank, National Association,

as Trustee

9062 Old
Annapolis Road

Columbia,
Maryland 21045

Attn.:
Maire Farrell

Phone:
410-884-6439

Fax: 1-866-373-0261

 

		Re:	(i) Collateral Management Agreement, dated as of August 8, 2007 (the “Existing
Collateral Management Agreement”), between Gramercy Real Estate CDO 2007-1, Ltd. (the “Issuer”)
and GKK Manager LLC (“GKKM”), as existing Collateral Manager (the “Existing Collateral Manager”),
and (ii) the Indenture, dated as of August 8, 2007, among the Issuer, Gramercy Real Estate CDO 2007-1 LLC (the “Co-Issuer”
and, together with the Issuer, the “Co-Issuers”), GKK Liquidity LLC, as advancing agent (the “Advancing
Agent”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), paying agent, calculation
agent, transfer agent, custodial securities intermediary, backup advancing agent and notes registrar (“Wells Fargo Bank”)
(as amended and supplemented, the “Indenture”)

 

Ladies and
Gentlemen:

 

Reference is made to
the Notice of Proposed Assignment and Assumption of Collateral Management Agreement and Request for Approval From Class A-1 Noteholders
and Class A-2 Note Insurer dated February [ ], 2013 from GKK Manager LLC, as Existing Collateral Manager (the “Notice”).
Capitalized terms used in this Ballot without definition are used as defined in the Notice or the Existing Collateral Management
Agreement or, if not defined therein, in the Indenture. The undersigned, the Holder (or such Holder’s proxyholder) of one
or more Class A-1 Notes as specified below as of February [ ], 2013 (the “Notice Record Date”), hereby acknowledges
that the undersigned has received a copy of the Notice.

 

If the undersigned
is a beneficial owner rather than a Holder, references herein to “Holder” shall be construed accordingly.

 

This is to certify
that the Person identified below is the beneficial owner (in the case of Global Securities) or the Holder of the aggregate face
amount of the Class A-1 Notes as specified below.

 

    	- 84 -

    	 

    

 

IN ADDITION TO SIGNING AND COMPLETING THIS
BALLOT, PLEASE CLEARLY INSERT THE AGGREGATE FACE AMOUNT OF THE CLASS A-1 NOTES AND CORRESPONDING CUSIP NUMBER THAT YOU HOLD
AND COMPLETE AND RETURN AN EXECUTED COPY OF THE “BENEFICIAL HOLDER INFORMATION FORM” ATTACHED HERETO.

 

	Note	
          Aggregate Face

          Amount
	CUSIP*	 	 
	Class  A-1 Notes	 	 	 	 
	Class  A-1 Rule 144A Global Securities	  $ __________________	38500XAA0	 	 
	Class  A-1 Regulation S Global Securities	  $ __________________	G40439AA2	 	 

 

 

*
The Collateral Manager shall not be responsible for the use of the CUSIP numbers selected, nor is any representation made
herein as to their correctness indicated in this Approval, the Notice or as printed on any Note. The numbers are included solely
for the convenience of the Holders.

 

    	- 85 -

    	 

    

 

The undersigned
Beneficial Owner or Holder of the Class A-1 Notes, as of the Notice Record Date in connection with the Notice, hereby [please check
one]:

 

_____ approves the Assignment
and Assumption as referred to in the Notice.

 

_____ objects to the Assignment
and Assumption as referred to in the Notice.

 

	 	 
	 	Name of Holder*
	 	 
	 	 
	 	Name of Beneficial Owner
	 	 
	 	 
	 	Signature of Beneficial Owner or Holder
	 	or duly authorized signatory of Beneficial
	 	Owner or Holder

 

Medallion Guarantee Required:

(U.S. Persons should affix stamp & signature;
Non-U.S. Persons should provide notarization)

 

 

* In the case of book entry Notes held through The Depository
Trust Company (“DTC”), please insert the name submitted to DTC for purposes of the securities listing position. In
the case of Notes held in physical definitive form, please insert the name as appears on such Notes.

 

    	- 86 -

    	 

    

 

BENEFICIAL HOLDER INFORMATION FORM

 

For Class A-1 Noteholders of:

Gramercy
real estate cdo 2007-1, ltd.

 

	
        Please complete the following and return to:

        Maire Farrell, Wells Fargo Bank, N.A., Specialized Asset Services,
        9062 Old Annapolis Road, Columbia, MD

        21045, Attn: Maire Farrell

        Fax: (866) 373-0261, Phone: (410) 884-6439, Email: maire.farrell@wellsfargo.com

 

Please check one.

 

		___	Beneficial Owner. The undersigned hereby represents and warrants that it is a beneficial
owner of the Notes, that the undersigned is authorized to provide direction for their pro rata portion owned and that such power
has not been granted nor assigned to any other party or person.

 

		___	Nominee or Advisor. The undersigned hereby represents and warrants that it is a nominee
or advisor for the beneficial owner, that the undersigned is authorized to provide direction for their pro rata portion owned and
that such power has not been granted nor assigned to any other party or person.

 

CLASS: _______________

 

CUSIP:  _______________

 

ORIGINAL FACE AMOUNT: $__________________

 

NOMINEE NAME: _____________________

 

NOMINEE BANK (DTC Participant # if Applicable): ___________________________

 

(The following information is important to facilitate
conference calls, if needed)

 

Beneficiary Company Name: _____________________________

Contact Name:

 

	Address:	 
	 	 
	 	 

 

	Phone: 	 	 	Facsimile:	 
	E-mail:	 	 	 	 

 

	Signature:	 	 	Date:	 

 

    	- 87 -

    	 

    

 

Exhibit F

CDO Issuer 2007 Class A-1 Assignment Consent

 

    	- 88 -

    	 

    
 

EXHIBIT F

 

BALLOT 

 

(for Class A-1 Noteholders only)

 

______________, 201__

 

Please
complete and sign the Ballot stating that you either approve or object to the Assignment and Assumption and send it by overnight
delivery and by fax to the Trustee by 4:30 pm (Eastern Standard Time) on February 28, 2013 at the following address:

 

Wells Fargo
Bank, National Association,

as Trustee

9062 Old
Annapolis Road

Columbia,
Maryland 21045

Attn.:
Maire Farrell

Phone:
410-884-6439

Fax: 1-866-373-0261

 

		Re:	(i) Collateral Management Agreement, dated as of August 8, 2007 (the “Existing
Collateral Management Agreement”), between Gramercy Real Estate CDO 2007-1, Ltd. (the “Issuer”)
and GKK Manager LLC (“GKKM”), as existing Collateral Manager (the “Existing Collateral Manager”),
and (ii) the Indenture, dated as of August 8, 2007, among the Issuer, Gramercy Real Estate CDO 2007-1 LLC (the “Co-Issuer”
and, together with the Issuer, the “Co-Issuers”), GKK Liquidity LLC, as advancing agent (the “Advancing
Agent”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), paying agent, calculation
agent, transfer agent, custodial securities intermediary, backup advancing agent and notes registrar (“Wells Fargo Bank”)
(as amended and supplemented, the “Indenture”)

 

Ladies and
Gentlemen:

 

Reference is made to
the Notice of Proposed Assignment and Assumption of Collateral Management Agreement and Request for Approval From Class A-1 Noteholders
and Class A-2 Note Insurer dated February [ ], 2012 from GKK Manager LLC, as Existing Collateral Manager (the “Notice”).
Capitalized terms used in this Ballot without definition are used as defined in the Notice or the Existing Collateral Management
Agreement or, if not defined therein, in the Indenture. The undersigned, the Holder (or such Holder’s proxyholder) of one
or more Class A-1 Notes as specified below as of February [ ], 2012 (the “Notice Record Date”), hereby acknowledges
that the undersigned has received a copy of the Notice.

 

If the undersigned
is a beneficial owner rather than a Holder, references herein to “Holder” shall be construed accordingly.

 

This is to certify
that the Person identified below is the beneficial owner (in the case of Global Securities) or the Holder of the aggregate face
amount of the Class A-1 Notes as specified below.

 

    	- 89 -

    	 

    

 

IN ADDITION TO SIGNING AND COMPLETING THIS
BALLOT, PLEASE CLEARLY INSERT THE AGGREGATE FACE AMOUNT OF THE CLASS A-1 NOTES AND CORRESPONDING CUSIP NUMBER THAT YOU HOLD
AND COMPLETE AND RETURN AN EXECUTED COPY OF THE “BENEFICIAL HOLDER INFORMATION FORM” ATTACHED HERETO.

 

	Note	
          Aggregate Face

          Amount
	CUSIP*	 	 
	Class  A-1 Notes	 	 	 	 
	Class  A-1 Rule 144A Global Securities	  $__________________	38500XAA0	 	 
	Class  A-1 Regulation S Global Securities	  $__________________	G40439AA2	 	 

 

 

* The Collateral Manager shall
not be responsible for the use of the CUSIP numbers selected, nor is any representation made herein as to their correctness indicated
in this Approval, the Notice or as printed on any Note. The numbers are included solely for the convenience of the Holders.

 

    	- 90 -

    	 

    

 

The undersigned
Beneficial Owner or Holder of the Class A-1 Notes, as of the Notice Record Date in connection with the Notice, hereby [please check
one]:

 

_____ approves the Assignment
and Assumption as referred to in the Notice.

 

_____ objects to the Assignment
and Assumption as referred to in the Notice.

 

	 	 
	 	Name of Holder*
	 	 
	 	 
	 	Name of Beneficial Owner
	 	 
	 	 
	 	Signature of Beneficial Owner or Holder
	 	or duly authorized signatory of Beneficial
	 	Owner or Holder

 

Medallion Guarantee Required:

(U.S. Persons should affix stamp & signature;
Non-U.S. Persons should provide notarization)

 

 

* In the case of book entry
Notes held through The Depository Trust Company (“DTC”), please insert the name submitted to DTC for purposes of the
securities listing position. In the case of Notes held in physical definitive form, please insert the name as appears on such
Notes.

 

    	- 91 -

    	 

    

 

BENEFICIAL HOLDER INFORMATION FORM

 

For Class A-1 Noteholders of:

Gramercy
real estate cdo 2007-1, ltd.

 

	
        Please complete the following and return to:

        Maire Farrell, Wells Fargo Bank, N.A., Specialized Asset Services,
        9062 Old Annapolis Road, Columbia, MD

        21045, Attn: Maire Farrell

        Fax: (866) 373-0261, Phone: (410) 884-6439, Email: maire.farrell@wellsfargo.com

 

Please check one.

 

		___	Beneficial Owner. The undersigned hereby represents and warrants that it is a beneficial
owner of the Notes, that the undersigned is authorized to provide direction for their pro rata portion owned and that such power
has not been granted nor assigned to any other party or person.

 

		___	Nominee or Advisor. The undersigned hereby represents and warrants that it is a nominee
or advisor for the beneficial owner, that the undersigned is authorized to provide direction for their pro rata portion owned and
that such power has not been granted nor assigned to any other party or person.

 

CLASS: _______________

 

CUSIP:  _______________

 

ORIGINAL FACE AMOUNT: $__________________

 

NOMINEE NAME: _____________________

 

NOMINEE BANK (DTC Participant # if Applicable): ___________________________

 

(The following information is important to facilitate
conference calls, if needed)

 

Beneficiary Company Name: _____________________________

Contact Name:

 

	Address:	 
	 	 
	 	 

 

	Phone: 	 	 	Facsimile:	 
	E-mail:	 	 	 	 

 

	Signature:	 	 	Date:	 

 

    	- 92 -

    	 

    

 

Exhibit G

CDO Issuer 2007 ************ Waiver Letter

 

    	- 93 -

    	 

    
 

************

 

EXHIBIT G

 

[DATE]

 

VIA FACSIMILE AND OVERNIGHT MAIL

 

To the Parties
Listed on Schedule A Attached Hereto

 

		Re:	Gramercy Real Estate CDO 2007-1, Ltd.

 

Dear Sir or Madam:

 

Reference is made to
the indenture, dated as of August 8, 2007 (as amended, modified or supplemented from time to time, the “Indenture”),
by and among Gramercy Real Estate CDO 2007-1, Ltd. (the “Issuer”), Gramercy Real Estate CDO 2007-1, LLC (the
“Co-Issuer”), GKK Liquidity LLC (including its successors and assigns, the “Advancing Agent”)
and Wells Fargo Bank, National Association (the “Trustee”). Capitalized terms used herein but not defined will
have the meanings ascribed to such terms in the Indenture.

 

****** (“******”) hereby represents and warrants to the Trustee that (i) as of the date of this letter, it was the
beneficial owner of Class A-1 Notes in an aggregate principal amount of approximately USD [335,730,542.31] (such Class A-1 Notes,
the “****** Owned Notes”) and (ii) as of the date hereof, it is the beneficial owner of the ****** Owned Notes. Together,
the ****** Owned Notes and ****** as the Class A-2 Note Insurer constitute a Majority of the Controlling Class.
****** hereby agrees to provide prompt notice to the Trustee in the event that ****** ceases to be the beneficial owner of any ******
Owned Notes.

 

We have been informed
that GKK Manager LLC (including its successors and assigns, the “Collateral Manager”) believes that one or more
Events of Default may occur under Section 5.1(j) of the Indenture due to the Class A/B Par Value Ratio being less than 89.0% on
future Measurement Dates (each such Event of Default, an “Applicable Event of Default”). Pursuant to Section
5.14 of the Indenture, a Majority of the Controlling Class has the right to waive any Applicable Event of Default.

 

This letter is to advise
you that ****** hereby waives (x) each Applicable Event of Default that may have occurred prior to the date of this letter and (y)
immediately upon the occurrence thereof, each Applicable Event of Default that may occur from (and including) the date of this
letter until the earlier of (1) January 30, 2014 and (2) the date, if any, on which written direction expressly revoking such waiver
is provided to the Trustee by ******. ****** will continue to consider each subsequent Applicable Event of Default and determine whether
or not to waive such Applicable Event of Default or whether to exercise any other rights or remedies it has with respect to such
Applicable Event of Default. ****** reserves the right to revoke or extend any waiver at any time.

 

    	- 94 -

    	 

    

 

Upon the Trustee’s
execution and delivery of the attached acceptance of this letter agreement, this letter agreement will be the legal, valid and
binding agreement of ************ enforceable in accordance with its terms against ************ by the Trustee, except as such enforceability may
be limited by (i) bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and (ii) general
principles of equity. The foregoing agreement shall be governed by and construed in accordance with the laws of the State of New
York without regard to conflict of laws principles. ************ and the Trustee (the “Parties”) consent to the jurisdiction
of a state or federal court situated in New York City, New York in connection with any dispute hereunder. The Parties irrevocably
waive any objection each may now or hereafter have to venue in such court and any claim that a proceeding brought in such court
has been brought in an inconvenient forum. The Parties hereby expressly waive, to the full extent permitted by applicable law,
any right to trial by jury with respect to any judicial proceeding arising from or related to this letter agreement.

 

Should you have any questions regarding
this letter, please feel free to contact [        ] at [(    ) ____-_____].

 

Very truly yours,

 

[                   ]

 

	Accepted And Agreed as of the Date Hereof:
	Wells Fargo Bank, National Association, as Trustee
	 
	By: 	 
	 	 
	Name: 	 
	 	 
	Title: 	 

 

    	- 95 -

    	 

    

 

Schedule A

 

Wells Fargo Bank, National Association

9062 Old Annapolis Road, Columbia, Maryland
21045

Attention: CDO Trust Services — Gramercy
Real Estate CDO 2007-1, Ltd.

 

GKK Manager LLC

c/o Gramercy Capital Corp.

420 Lexington Avenue, 18th Floor

New York, NY 10170

Attention: General Counsel

 

CWCapital Investments LLC

7501 Wisconsin Avenue, Suite 500West

Bethesda, MD 20814

Facsimile: (301) 255-4874

Attention: Charles Spetka

 

With a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue, Suite 500West

Bethesda, MD 20814

Attention: Daniel Warcholak

 

and

 

Clifford Chance US LLP

31 West 52nd Street

New York, NY 10019

Facsimile: (212) 878-8375

Attention: Steven T. Kolyer

 

Gramercy Real Estate CDO 2007-1, Ltd.

c/o MaplesFS Limited

P.O. Box 1093GT, Boundary Hall

Cricket Square, George Town

Grand Cayman

Cayman Islands

Attention: The Directors

Fax No.: (345) 945-7100

 

    	- 96 -

    	 

    

 

Gramercy Real Estate CDO 2007-1 LLC

c/o Gramercy Capital Corp.

420 Lexington Avenue, 18th Floor

New York, NY 10170

Attention: General Counsel

 

    	- 97 -

    	 

    

 

 

Exhibit H

CDO Issuer 2007 ************ Assignment Consent

 

    	- 98 -

    	 

    
 

EXHIBIT H

 

************ BALLOT 

 

(for Class A-2 Note Insurer only)

 

______________, 201__

 

Please
complete and sign the Ballot stating that you either approve or object to the Assignment and Assumption and send it by overnight
delivery and by fax to the Trustee by 4:30 pm (Eastern Standard Time) on February 28, 2013 at the following address:

 

Wells Fargo
Bank, National Association,

as Trustee

9062 Old
Annapolis Road

Columbia,
Maryland 21045

Attn.:
Maire Farrell

Phone:
410-884-6439

Fax: 1-866-373-0261

 

		Re:	(i) Collateral Management Agreement, dated as of August 8, 2007 (the “Existing
Collateral Management Agreement”), between Gramercy Real Estate CDO 2007-1, Ltd. (the “Issuer”)
and GKK Manager LLC (“GKKM”), as existing Collateral Manager (the “Existing Collateral Manager”),
and (ii) the Indenture, dated as of August 8, 2007, among the Issuer, Gramercy Real Estate CDO 2007-1 LLC (the “Co-Issuer”
and, together with the Issuer, the “Co-Issuers”), GKK Liquidity LLC, as advancing agent (the “Advancing
Agent”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), paying agent, calculation
agent, transfer agent, custodial securities intermediary, backup advancing agent and notes registrar (“Wells Fargo Bank”)
(as amended and supplemented, the “Indenture”)

  

Ladies and
Gentlemen:

 

Reference is made to
the Notice of Proposed Assignment and Assumption of Collateral Management Agreement and Request for Approval From Class A-1 Noteholders
and Class A-2 Note Insurer dated February [ ], 2012 from GKK Manager LLC, as Existing Collateral Manager (the “Notice”).
Capitalized terms used in this ************ Ballot without definition are used as defined in the Notice or the Existing Collateral Management
Agreement or, if not defined therein, in the Indenture. The undersigned, the Class A-2 Note Insurer, hereby acknowledges that the
undersigned has received a copy of the Notice.

 

    	- 99 -

    	 

    

  

The undersigned
Class A-2 Note Insurer hereby [please check one]:

  

_____ approves the Assignment
and Assumption as referred to in the Notice.

 

_____ objects to the Assignment
and Assumption as referred to in the Notice.

 

	 	 	 
	 	************

	 

  

    	- 100 -

    	 

    

 

EXHIBIT I

CDO Issuer 2007 ************
Waiver Letter

 

    	- 101 -

    	 

    
 

EXHIBIT I

 

************

 

	 	[DATE]

 

VIA ELECTRONIC AND OVERNIGHT MAIL 

Wells Fargo Bank, National Association

9062 Old Annapolis Road

Columbia, Maryland 21045

Attention: CDO Trust Services — Gramercy Real Estate CDO 2007-1, Ltd.

 

Re: Gramercy Real Estate CDO
2007-1, Ltd.

 

Dear Sir or Madam:

 

Reference is made to
the indenture, dated as of August 8, 2007 (as amended, modified or supplemented from time to time, the “Indenture”)
by and among Gramercy Real Estate CDO 2007-1, Ltd. (the “Issuer”), Gramercy Real Estate CDO 2007-1, LLC (the
“Co-Issuer”), GKK Liquidity LLC (including its successors and assigns, the “Advancing Agent”)
and Wells Fargo Bank, National Association (the “Trustee”). Capitalized terms used herein but not defined will
have the meanings ascribed to such terms in the Indenture.

 

*****
(“*****”) hereby represents and warrants to the Trustee that (i) as of the date of this letter, no Surety
Event was continuing and (ii) as of the date hereof, no Surety Event has occurred and is continuing. To *****’s knowledge,
***** is the beneficial owner of approximately USD [335,371,941.22] in aggregate principal amount of the Class
A-1 Notes (such Class A-1 Notes, the “***** Notes”). The ***** Notes, together with *****, as Class A-2 Note Insurer,
constitute a Majority of the Controlling Class. ***** hereby agrees to provide written notice to the Trustee of the occurrence and
continuance of a Surety Event promptly upon obtaining knowledge thereof.

 

GKK Manager LLC (including
its successors and assigns, the “Collateral Manager”) has advised us that one or more Events of Default may
occur under Section 5.1(j) of the Indenture due to the Class A/B Par Value Ratio being less than 89.0% on future Measurement
Dates (each such Event of Default, an “Applicable Event of Default”). Pursuant to Section 5.14 of the Indenture,
a Majority of the Controlling Class has the right to waive any Applicable Event of Default.

 

    	- 102 -

    	 

    

 

*****
(“*****”) is the Class A-2 Note Insurer. This letter is to advise you that *****, as the Class A-2 Note Insurer,
hereby waives (x) each Applicable Event of Default that may have occurred prior to the date of this letter and (y) immediately
upon the occurrence thereof, each Applicable Event of Default that may occur from (and including) the date of this letter until
the earlier of (1) January 30, 2014 and (2) the date, if any, on which written direction expressly revoking such waiver is provided
to the Trustee by *****; provided that any such direction to revoke shall not be made unreasonably or without good faith
on its part. ***** will continue to consider each subsequent Applicable Event of Default and determine whether or not to waive such
Applicable Event of Default or whether to exercise any other rights or remedies it has with respect to such Applicable Event of
Default. ***** reserves the right to revoke, subject to the requirement that it act reasonably and in good faith, or extend any
waiver at any time.

 

Upon the Trustee’s
execution and delivery of the attached acceptance of this letter agreement, this letter agreement will be the legal, valid and
binding agreement of ***** enforceable in accordance with its terms against ***** by the Trustee, except as such enforceability may
be limited by (i) bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and (ii) general
principles of equity. The foregoing agreement shall be governed by and construed in accordance with the laws of the State of New
York without regard to conflict of laws principles. ***** and the Trustee (the “Parties”) consent to the jurisdiction
of a state or federal court situated in New York City, New York in connection with any dispute hereunder. The Parties irrevocably
waive any objection each may now or hereafter have to venue in such court and any claim that a proceeding brought in such court
has been brought in an inconvenient forum. The Parties hereby expressly waive, to the full extent permitted by applicable law,
any right to trial by jury with respect to any judicial proceeding arising from or related to this letter agreement.

 

Should you have any
questions concerning this letter agreement, please contact Caroline Platt at (914) 765-3989.

 

Very truly yours,

 

Caroline Platt

Managing Director

*****

 

Accepted
And Agreed as of the Date Hereof:

Wells Fargo Bank, National Association, as Trustee

 

	By: 	 	 
	 	 	 
	Name: 	 	 
	 	 	 
	Title: 	 	 

 

    	- 103 -

    	 

    

 

EXHIBIT J

CDO Issuer 2006 and
CDO Issuer 2007 CMA Waiver Letter

 

    	- 104 -

    	 

    
 

EXHIBIT J

 

************

 

[DATE]

 

CWCapital Investments LLC

7501 Wisconsin Avenue, Suite 500 West

Bethesda, MD 20814

Attention: Charles Spetka

 

With a copy to:

 

CWCapital Investments LLC

7501 Wisconsin Avenue, Suite 500 West

Bethesda, MD 20814

Attention: Legal Department

 

and

 

Clifford Chance US LLP

31 West 52nd Street

New York, NY 10019

Attention: Steven T. Kolyer

 

		Re:	Gramercy Real Estate CDO 2006-1 (the “Gramercy 2006 CDO”) and Gramercy Real Estate
CDO 2007-1 (the “Gramercy 2007 CDO” and, together with the Gramercy 2006 CDO, the “Transactions”)

 

Dear Charles:

 

We understand that pursuant
to certain proposed assignment and assumption agreements (the “Assumption and Assignment Agreements”) (i) GKK
Manager LLC (“GKKM”) proposes to assign the Gramercy 2006 CDO CMA and the Gramercy 2007 CDO CMA (each as defined
herein) to CWCapital Investments LLC (“CWCapital”) as successor collateral manager and (ii) CWCapital proposes
to assume, in each case, after the effective date of the Assignment and Assumption Agreements, GKKM’s rights and obligations
(to the extent set forth in the Assignment and Assumption Agreements) under each of the Gramercy 2006 CDO CMA, the Gramercy 2007
CDO CMA, the Gramercy 2006 Indenture (as defined herein), the Gramercy 2007 Indenture (as defined herein) and certain servicing
agreements, preferred shares paying agency agreements and securities account control agreements relating to the Transactions as
successor collateral manager (clauses (i) and (ii), the “Assignment and Assumption”).

 

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In connection with the
Assignment and Assumption and in consideration of the terms and conditions set forth below, and in acknowledgement by ***** (“*****”)
and CWCapital that such terms and conditions constitute good and valuable consideration, ***** and CWCapital hereby agree as follows
(the “Agreement”):

 

1.          Limited Agreement
to Resign as Collateral Manager of the Gramercy 2006 CDO and the Gramercy 2007 CDO. If (i) CW Financial Services LLC and its
direct and indirect wholly owned subsidiaries and affiliates, including CWCapital, have less than ten full-time employees, or
(ii) any direct or indirect parent company of CWCapital, or any other person who directly or indirectly is in control of CWCapital
(a) ceases to be able to, or admits in writing its inability to pay its debts when and as they become due, (b) files, or consents
by answer or otherwise to the filing against it of a petition for relief or reorganization or arrangement or any other petition
in bankruptcy, for liquidation or takes advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law
of any jurisdiction, (c) makes an assignment for the benefit of its creditors, (d) consents to the appointment of a custodian,
receiver, trustee or other officer with similar powers with respect to it or any substantial part of its property or (e) is adjudicated
as insolvent or to be liquidated (each of the events described in (i) or (ii) above, a “Resignation Event”)
– CWCapital shall, if directed to do so in writing by *****, resign as the collateral manager of the Gramercy 2006 CDO and/or
the Gramercy 2007 CDO; provided that, on and after June 16, 2016, this section shall cease to be of any further force
or effect and CWCapital shall have no further obligations under this Section 1.

 

2.          Limited Agreement
Not to Cause Removal of CWCapital as Collateral Manager of the Gramercy 2006 CDO. So long as (i) “cause” (as defined
in any of Sections 12(b)(i)-(v) or (viii) of the Collateral Management Agreement, dated as of August 24, 2006 (as amended, supplemented
or modified from time to time, the “Gramercy 2006 CDO CMA”), by and between CWCapital (successor-by-assignment
from GKKM) and Gramercy Real Estate 2006-1, Ltd.) does not exist, and (ii) there has not been a default in the payment of
principal on the Class A Notes (as defined in the Indenture, dated August 24, 2006 (as amended, supplemented or modified from time
to time, the “Gramercy 2006 CDO Indenture”, by and among Gramercy Real Estate CDO 2006-1, Ltd., Gramercy Real
Estate CDO 2006-1 LLC, GKK Liquidity LLC (including its successors and assigns) and Wells Fargo Bank, N.A.) when the same becomes
due and payable, and (iii) the Class A/B Par Value (as defined in the Gramercy 2006 CDO Indenture) is greater than 75% on
any Measurement Date (as defined in the Gramercy 2006 CDO Indenture), and (iv) no Resignation Event has occurred, ***** shall
NOT and shall cause its Affiliates, if applicable, to NOT (i) direct any counterparty to a swap agreement pursuant
to which ***** or any of its Affiliates provides credit protection on a note issued as part of the Gramercy 2006 CDO to take any
action that would cause or support the removal of CWCapital as the collateral manager of the Gramercy 2006 CDO or (ii) directly
or indirectly, vote in favor of or take any other action that would cause or support the removal of CWCapital as the collateral
manager of the Gramercy 2006 CDO; provided that, on and after June 16, 2016, this section shall cease to be of any further
force or effect and ***** shall have no further obligations under this Section 2.

 

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3.          Limited Agreement
Not to Cause Removal of Gramercy as Collateral Manager of the Gramercy 2007 CDO. So long as (i) “cause” (as defined
in any of Sections 12(b)(i)-(v) or (viii) of the Collateral Management Agreement, dated as of August 8, 2007 (the “Gramercy
2007 CDO CMA”), by and between CWCapital (as successor-by-assignment from GKKM) and Gramercy Real Estate 2007-1, Ltd.)
does not exist, and (ii) there has not been a default in the payment of principal on the Class A Notes (as defined in the
Indenture, dated August 8, 2007 (the “Gramercy 2007 CDO Indenture”), by and among Gramercy Real Estate CDO 2007-1,
Ltd., Gramercy Real Estate CDO 2007-1 LLC, GKK Liquidity LLC (including its successors and assigns) and Wells Fargo Bank, N.A.)
when the same becomes due and payable, and (iii) the Class A/B Par Value Ratio (as defined in the Gramercy 2007 CDO Indenture)
is greater than 75% on any Measurement Date (as defined in the Gramercy 2007 CDO Indenture), and (iv) no Resignation Event
has occurred, ************ shall NOT and shall cause its Affiliates to NOT (i) direct any counterparty to a swap agreement
pursuant to which ************ or any of its Affiliates provides credit protection on a note issued as part of the Gramercy 2007 CDO to
take any action that would cause or support the removal of CWCapital as the collateral manager of the Gramercy 2007 CDO or (ii)
directly or indirectly, vote in favor of or take any other action that would cause or support the removal of CWCapital as the collateral
manager of the Gramercy 2007 CDO; provided that, on and after June 16, 2016, this section shall cease to be of any
further force and effect and ************ shall have no further obligations under this Section 3.

 

4.          Direction Letters.

 

(A)          So
long as (i) “cause” (as defined in any of Sections 12(b)(i)-(v) or (viii) of the Gramercy 2006 CDO CMA) does not exist,
and (ii) there has not been a default in the payment of principal on the Class A Notes (as defined in the Gramercy 2006
CDO Indenture) when the same becomes due and payable, and (iii) the Class A/B Par Value (as defined in the Gramercy 2006
CDO Indenture) is greater than 75% on any Measurement Date (as defined in the Gramercy 2006 CDO Indenture), and (iv) no Resignation
Event has occurred, following the occurrence of an event described in Section 12(b)(vi) and/or 12(b)(vii) of the Gramercy 2006
CDO CMA and if directed to do so in writing by CWCapital, ************ shall, and shall cause its Affiliates, if applicable, to (i) send
a letter in the form attached hereto as Exhibit A to any counterparty to a swap agreement (collectively, the “Gramercy
2006 CDO Swaps”) pursuant to which ************ or any of its Affiliates provides credit protection on a note issued as part of the
Gramercy 2006 CDO and (ii) subject to any and all confidentiality obligations of ************, notify Wells Fargo Bank, N.A. that
************ has not directed the counterparties to the Gramercy 2006 CDO Swaps to remove CWCapital as the collateral manager of the Gramercy
2006 CDO; provided that, on and after June 16, 2016, this section shall cease to be of any further force and effect and
************ shall have no further obligations under this Section 4(A).

 

    	- 107 -

    	 

    

 

(B)          So
long as (i) “cause” (as defined in any of Sections 12(b)(i)-(v) or (viii) of the Gramercy 2007 CDO CMA) does not exist,
and (ii) there has not been a default in the payment of principal on the Class A Notes (as defined in the Gramercy 2007
CDO Indenture) when the same becomes due and payable, and (iii) the Class A/B Par Value Ratio (as defined in the Gramercy
2007 CDO Indenture) is greater than 75% on any Measurement Date (as defined in the Gramercy 2007 CDO Indenture), and (iv)
no Resignation Event has occurred, following the occurrence of an event described in Section 12(b)(vi) and/or 12(b)(vii) of the
Gramercy 2007 CDO CMA and if directed to do so in writing by CWCapital, ************ shall and shall cause its Affiliates, if applicable,
to (i) send a letter in the form attached hereto as Exhibit A, to any counterparty to a swap agreement (collectively, the
“Gramercy 2007 CDO Swaps”) pursuant to which ************ or any of its Affiliates provides credit protection on a note issued
as part of the Gramercy 2007 CDO and (ii) subject to any and all confidentiality obligations of ************, notify Wells Fargo
Bank, N.A., that ************ has not directed the counterparties to the Gramercy 2007 CDO Swaps to remove CWCapital as the collateral
manager of the Gramercy 2007 CDO; provided that, on and after June 16, 2016, this section shall cease to be of any further
force and effect and ************ shall have no further obligations under this Section 4(B).

 

5.          Remedies.

 

(A)          It
is understood and agreed by ************ that CWCapital would be irreparably injured by a breach of the foregoing Sections 2 and/or 3 of
this Agreement by ************, that money damages would not be sufficient remedy for any such breach and that CWCapital shall be entitled
to equitable relief, including injunctive relief and specific performance, as a remedy for any such breach (which shall be in addition
to all other remedies available at law and equity to CWCapital).

 

(B)          It
is understood and agreed by CWCapital that ************ would be irreparably injured by a breach of the foregoing Section 1 of this Agreement
by CWCapital, that money damages would not be sufficient remedy for any such breach and that the ************ Parties shall be entitled
to equitable relief, including injunctive relief and specific performance, as a remedy for any such breach (which shall be in addition
to all other remedies available at law and equity to ************

 

6.          Confidentiality.
Notwithstanding anything in this Agreement to the contrary, each party hereto acknowledges and agrees that it shall hold in confidence,
and shall use its commercially reasonable efforts to safeguard, the terms of, and the existence of, this Agreement from disclosure
to anyone; provided that, each party may disclose any of the terms of, or the existence of, this Agreement as is necessary or advisable
to its directors, officers, trustees, managers, employees, agents, attorneys and affiliates on a need to know basis, its financial
advisors and other professional advisors who agree to hold confidential such information substantially in accordance with the terms
of this Section 6, in communications or filings made with auditors retained by either party, any regulators (whether domestic or
foreign), as may be necessary or advisable under applicable law, or to rating agencies, bondholders, trustee(s) and hedge counterparties
on a need to know basis.

 

7.          Voluntary Agreement.
Each party hereto acknowledges that it has read this Agreement and understands its contents. Each party hereto further acknowledges
and agrees that it is signing this Agreement voluntarily, after good-faith, arm’s-length negotiations, after having had a
full and fair opportunity to consult with counsel and/or other professional advisors of its choice ̧ and with the intent to
be legally bound by all the terms contained in this Agreement. In the event that any provision of this Agreement is determined
to be ambiguous, it shall not be construed against any party hereto.

 

    	- 108 -

    	 

    

 

8.           Authority.
Each party executing this Agreement, including any individual executing this Agreement on behalf of any party, expressly warrants
and represents that such party has all necessary power and authority to do so.

 

9.           No Assurances
as to Credit Protection. For the avoidance of doubt, ************ cannot (and expressly does not) provide any assurances whatsoever
that: (i) ************ will continue to provide any credit protection on notes issued as part of the Gramercy 2006 CDO or the Gramercy
2007 CDO; or (ii) any party to which ************ provides credit protection will comply with any instruction given by ************.

 

10.          Integration.
This Agreement represents, contains and constitutes the entire understanding and agreement between the parties hereto relating
to its subject matter and supersedes all previous discussions, negotiations, representations, agreements or commitments, whether
written or oral, relating to its subject matter. Except as expressly stated herein, this Agreement does not in any way alter or
affect the rights and obligations of any party hereto under any other agreement.

 

11.          No Oral Modifications.
This Agreement may not be modified, supplemented or amended in any way except in a writing specifically referring to this Agreement
and executed by the parties hereto. No right of any party under this Agreement may be waived except through a writing signed by
the party waiving that right.

 

12.          No Waiver.
No course of dealing, failure or delay by any party hereto in exercising, in whole or in part, any right under this Agreement or
any other agreement shall waive or impair such or any other right under this Agreement, or in any manner preclude its additional
or future exercise.

 

13.          Headings.
Headings herein are inserted for convenience and do not constitute a part of this Agreement. No heading shall be admissible for
the purpose of proving the intent of the parties.

 

14.          Choice of Law.
This Agreement and all matters arising out of or relating to this Agreement (whether in contract, tort or otherwise) shall be governed
by and construed in accordance with the laws of the State of New York, without regard to conflict-of-law principles,

 

15.          Forum Selection.
If any party hereto commences a suit, action or proceeding arising out of or relating to this Agreement, each of the parties irrevocably
agrees that the United States District Court for the Southern District of New York shall have exclusive jurisdiction to hear and
determine any such suit, action or proceeding and, for such purposes, irrevocably submits to the jurisdiction of such court. If
the United States District Court for the Southern District of New York lacks federal subject matter jurisdiction with respect to
any such suit, action or proceeding, each of the parties hereto irrevocably agrees that any state court sitting in the City of
New York shall have exclusive jurisdiction to hear and determine any such suit, action or proceeding and, for such purposes, irrevocably
submits to the jurisdiction of such courts. Each of the parties hereto irrevocably and unconditionally waives any objection to
the laying of venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or
proceeding has been brought in an inconvenient forum.

 

    	- 109 -

    	 

    

 

16.          Waiver of Jury
Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

17.          No Third Party
Beneficiaries. This Agreement is solely for the benefit of the parties hereto, and their successors and assigns, and no other
person shall acquire or have any rights under or by virtue of this Agreement.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	- 110 -

    	 

    

 

If you agree with the
foregoing, please sign where indicated below.

 

	 	Very truly yours,	 
	 	 	 
	 	 	 
	 	************

	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title:	 

 

Agreed to by:

 

CWCapital Investments LLC

	 	 
	Name:	 
	 	 
	Title:	 

 

    	- 111 -

    	 

    

 

Exhibit A

Form of Letter from ***** to Controlling Class Note Holders

[***** LETTERHEAD]

 

Via Overnight Delivery

 

Date

 

[Name of Counterparty (“________”)]

[Notice Address of Counterparty]

Attention: [Name of Counterparty Notice Party]

 

		Re:	Swap Agreement relating to the Gramercy Real Estate CDO 200[7][6]-1

 

[Name of Holder Notice Party]:

 

Reference is made to (i) that certain ISDA
Master Agreement, the Schedule thereto and the Confirmation thereunder, each between LaCrosse Financial Products, LLC (the “Seller”)
and [COUNTERPARTY] (the “Buyer”) and dated [DATE] (collectively, the “Swap Agreement”), and
(ii) that certain collateral management agreement (as amended, supplemented or modified from time to time, the “Collateral
Management Agreement”) between CWCapital Investments LLC (successor-by-assignment to GKK Manager LLC), as Collateral
Manager (the “Collateral Manager”), and Gramercy Real Estate CDO 200[7][6]-1, Ltd. (the “Issuer”),
dated [DATE]. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Swap Agreement
or the Collateral Management Agreement, as applicable.

 

As you may be aware, an event has occurred
that constitutes “cause” for the removal of the Collateral Manager under Section 12(b)[(vi) / (vii)] of the Collateral
Management Agreement. Pursuant to Section 9 of the Swap Agreement, the Buyer must abstain, or procure that the holders of the relevant
principal amount of the Reference Obligation abstain, from exercising any rights under the Reference Obligation that would cause
the removal of the Collateral Manager unless the Seller directs otherwise. At this time, the Seller is not
directing the Buyer to take any action that would cause the removal of the Collateral Manager. An Additional Termination Event
will occur under the Swap Agreement if the Buyer fails to comply with Section 9 thereof.

 

For the avoidance of doubt, the Seller
hereby reserves all of its rights, privileges and remedies with respect of the Swap Agreement.

 

	 	Sincerely yours,
	 	 
	 	LaCrosse Financial Products, LLC
	 	 
	 	BY:	 
	 	 	Name:
	 	 	Title:

 

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Exhibit L

 

Form of Servicing Subordination Agreement

 

 

SERVICING, CURE AND INTEREST ADVANCES
SUBORDINATION AGREEMENT

 

This Servicing, Cure
and Interest Advances Subordination Agreement (this "Agreement") is dated as of [●], 2013 by and among GKK
MANAGER LLC, a Delaware limited liability company, as the resigning collateral manager ("GKKM" or the "Former
Collateral Manager"), GKK LIQUIDITY LLC, as the resigning advancing agent ("GKKL" or the "Former
Advancing Agent"), GRAMERCY LOAN SERVICES LLC, a Delaware limited liability company, as the former sub-special servicer
("GLS" or the "Former Sub-Special Servicer", and together with GKKM and GKKL, the "Subordinated
Gramercy Parties"), CWCAPITAL INVESTMENTS LLC, a limited liability company organized under the laws of the Commonwealth
of Massachusetts ("CWCI" and together with its successors and assigns, the "Collateral Manager")
and CWCAPITAL ASSET MANAGEMENT LLC ("CWCAM" and together with its successors and assigns, the "Special
Servicer" and together with CWCI, the "Senior Advancing Parties").

 

RECITALS

 

		A.	WHEREAS, SitusServ. L.P. ("Situs") has entered into (i) an Amended and Restated
Servicing Agreement (the "2005 CDO Servicing Agreement"), dated as of June 1, 2009, among GKKM, Gramercy Real
Estate CDO 2005-1, Ltd. (the "2005 CDO Issuer"), Gramercy Real Estate CDO 2005-1 LLC (the "2005 CDO Co-Issuer"),
Situs, GKKL and Wells Fargo Bank, N.A. ("Wells Fargo"), as trustee to the 2005 CDO Issuer (the "2005 CDO
Trustee"), as amended by the First Amendment to Special Servicing Agreement and Amended and Restated Servicing Agreements
dated as of March 1, 2010 (the "First Amendment"), among GKKM, the 2005 CDO Issuer, Gramercy Real Estate CDO 2006-1,
Ltd. (the "2006 CDO Issuer"), Gramercy Real Estate CDO 2007-1, Ltd. (the "2007 CDO Issuer" and
together with the 2005 CDO Issuer and the 2006 CDO Issuer, the "CDO Issuers"), the 2005 CDO Co-Issuer, Gramercy
Real Estate CDO 2006-1 LLC (the "2006 CDO Co-Issuer"), Gramercy Real Estate CDO 2007-1 LLC (the "2007
CDO Co-Issuer" and together with the 2005 CDO Co-Issuer and the 2006 CDO Co-Issuer, the "CDO Co-Issuers"),
Situs, GKKL and Wells Fargo as trustee to each CDO Issuer; (ii) an Amended and Restated Servicing Agreement (the "2006
CDO Servicing Agreement"), dated as of June 1, 2009, among GKKM, 2006 CDO Issuer, 2006 CDO Co-Issuer, Situs, GKKL and
Wells Fargo, as amended by the First Amendment; and (iii) an Amended and Restated Servicing Agreement (the "2007 CDO
Servicing Agreement" and collectively with the 2005 CDO Servicing Agreement and the 2006 CDO Servicing Agreement, the
"Primary Servicing Agreements" and each, a "Primary Servicing Agreement"), dated as of June 1,
2009, among GKKM, 2007 CDO Issuer, 2007 CDO Co-Issuer, Situs, GKKL and Wells Fargo, as amended by the First Amendment;

 

		B.	WHEREAS, Situs has executed and delivered a Special Servicing Agreement (the "Situs Special
Servicing Agreement") dated as of May 8, 2009, by and among the CDO Issuers, the CDO Co-Issuers, GKKM, Wells Fargo, GKKL
and Situs, as amended by the First Amendment and the Second Amendment to the Special Servicing Agreement dated as of May 30, 2012,
among GKKM, the CDO Issuers, the CDO Co-Issuers, Situs, GKKL and Wells Fargo, whereby Situs provided certain special servicing
functions with respect to certain Assets (as defined in the Situs Special Servicing Agreement) of the CDO Issuers;

 

		C.	WHEREAS, Situs has executed a Sub-Special Servicing Agreement (the "GLS Sub-Special Servicing
Agreement") dated as of May 8, 2009, between Situs as special servicer and GLS as sub-special servicer, as amended by
the First Amendment;

 

    	- 1 -

    	 

    

 

		D.	WHEREAS, (i) the 2005 CDO Issuer has entered into an Indenture dated as of July 14, 2005, among
the 2005 CDO Issuer, 2005 CDO Co-Issuer, GKKL, as advancing agent and the 2005 CDO Trustee, as amended and supplemented by the
First Supplemental Indenture thereto, dated as of August 14, 2007 (as amended and supplemented, the "2005 CDO Indenture"),
among the 2005 CDO Issuer, the 2005 CDO Co-Issuer, GKKL and the 2005 CDO Trustee, (ii) the 2006 CDO Issuer has entered into an
Indenture dated as of August 24, 2006, among the 2006 CDO Issuer, the 2006 CDO Co-Issuer, GKKL, as advancing agent and Wells Fargo,
as trustee, paying agent, calculation agent, transfer agent, custodial securities intermediary, backup advancing agent and notes
registrar, as amended and supplemented by the First Supplemental Indenture thereto, dated as of September 26, 2007, and the Second
Supplemental Indenture thereto, dated as of August 5, 2008, each among the 2006 CDO Issuer, the 2006 CDO Co-Issuer, GKKL and Wells
Fargo, and the Indenture Amendment, dated as of October 28, 2010, among the 2006 CDO Issuer, the 2006 CDO Co-Issuer and GKKM and
acknowledged by Wells Fargo (as amended and supplemented, the "2006 CDO Indenture") and (iii) the 2007 CDO Issuer
has entered into an Indenture dated as of August 8, 2007, among the 2007 CDO Issuer, the 2007 CDO Co-Issuers, GKKL, and Wells Fargo,
as trustee, paying agent, calculation agent, transfer agent, custodial securities intermediary, backup advancing agent and notes
registrar (as amended and supplemented, the "2007 CDO Indenture" and together with the 2006 CDO Indenture and
the 2005 CDO Indenture, the "CDO Indentures" and each, a "CDO Indenture");

 

		E.	WHEREAS, pursuant to certain proposed assignment and assumption agreements, (i)(a) GKKM proposes
to assign the existing collateral management agreements between GKKM and each CDO Issuer (collectively, the "Existing CMAs")
to CWCI as successor collateral manager and (b) CWCI proposes to assume, after the effective date of such assignment and to
the extent set forth in such assignment and assumption agreements, GKKM’s rights and obligations under each of the Existing
CMAs and the CDO Indentures, and (ii)(a) GKKL proposes to resign as the advancing agent under the CDO Indentures and (b) CWCI will
be appointed by the Co-Issuers as the advancing agent under the CDO Indentures, after the effective date of such assignment and
to the extent set forth in such assignment and assumption agreements;

 

		F.	WHEREAS, (i) pursuant to a notice dated as of January [●], 2013, GKKM has notified Situs
of its intention to terminate and remove Situs as special servicer under the Situs Special Servicing Agreement, (ii) GKKM
is replacing Situs with CWCAM as special servicer under the Situs Special Servicing Agreement, and (iii) CWCAM is assuming
Situs' obligations as special servicer to certain Assets of the CDO Issuers pursuant to an assumption agreement and entering into
an amendment and restatement of the Situs Special Servicing Agreement (the "CWCAM Special Servicing Agreement")
as of the date hereof (the "Effective Date") among CWCAM as special servicer with back-up advancing responsibility
thereunder, the CDO Issuers, the CDO Co-Issuers, Wells Fargo, and CWCI;

 

		G.	WHEREAS, CWFS Holdings LLC (the "Borrower"), on behalf of the Senior Advancing
Parties, has entered into a facility agreement dated as of [●], 2013 (the "Wells Facility") with Wells Fargo
as facility provider (the "Facility Provider"), with respect to the financing of (i) the Senior Advancing Parties'
respective obligations to fund Servicing Advances under the CWCAM Special Servicing Agreement, (ii) CWCI's obligation as advancing
agent to fund Interest Advances under the CDO Indentures and (iii) CWCI's obligation as collateral manager to fund Cure Advances
under the CDO Indentures;

 

    	- 2 -

    	 

    

 

		H.	WHEREAS, the parties hereto desire to enter into this agreement to set forth certain agreements
with respect to the recovery and reimbursement of:

 

(i) the amounts set forth
on Schedule I hereto which have been advanced by or on behalf of GKKM as "Servicing Advances" (and any applicable
interest payable thereon) in respect of the CDO Issuers pursuant to the Situs Special Servicing Agreement, to the extent such amounts
have not been repaid or reimbursed to GKKM pursuant to the Situs Special Servicing Agreement as of the date hereof (collectively,
the "Outstanding GKKM Special Servicing Advance Amounts");

 

(ii) the amounts set forth
on Schedule II hereto which have been advanced by or on behalf of GLS as "Servicing Advances" (and any applicable
interest payable thereon) in respect of the CDO Issuers pursuant to the GLS Sub-Special Servicing Agreement, to the extent such
amounts have not been repaid or reimbursed to GLS or any of its Affiliates as of the date hereof (collectively, the "Outstanding
GLS Servicing Advance Amounts" and together with the Outstanding GKKM Special Servicing Advance Amounts, the "Subordinated
Servicing Advances");

 

(iii) the amounts set
forth on Schedule III hereto which have been advanced by or on behalf of GKKL as "Interest Advances" (and any
related Nonrecoverable Advances (as defined in the CDO Indentures), applicable interest payable thereon, any previously due but
unpaid Advancing Agent Fee (as defined in the CDO Indentures) due and payable to GKKL) in respect of the CDO Issuers pursuant to
the CDO Indentures, to the extent such amounts have not been repaid or reimbursed to GKKL pursuant to the CDO Indentures as of
the date hereof (collectively, the "Subordinated Interest Advance Amounts");

 

(iv) the amounts set forth
on Schedule IV hereto which have been advanced by or on behalf of GKKM as "Cure Advances" (and any related Nonrecoverable
Cure Advances and applicable interest payable thereon) in respect of the CDO Issuers pursuant to the CDO Indentures, to the extent
such amounts have not been repaid or reimbursed to GKKM pursuant to the CDO Indentures as of the date hereof (collectively, the
"Subordinated Cure Advance Amounts" and together with the Subordinated Interest Advance Amounts and the Subordinated
Servicing Advances, the "Subordinated Advances");

 

(v)  the amounts expected
to be advanced by or on behalf of CWCI or CWCAM from time to time as "Servicing Advances" (and any Nonrecoverable Advances
(as defined in the CWCAM Special Servicing Agreement)) and applicable interest payable thereon in respect of the CDO Issuers and
reimbursable to CWCI or CWCAM, as applicable, in each case, pursuant to the Primary Servicing Agreements and the CWCAM Special
Servicing Agreement (collectively, the "Senior Servicing Advances");

 

(vi)  the amounts expected
to be advanced by or on behalf of CWCI as collateral manager from time to time as "Cure Advances" (and any Nonrecoverable
Cure Advances) and applicable interest payable thereon in respect of the CDO Issuers and reimbursable to CWCI pursuant to the CDO
Indentures (collectively, the "Senior Cure Advance Amounts"); and

 

(vii) the amounts expected
to be advanced by or on behalf of CWCI as advancing agent from time to time as "Interest Advances" (and any Nonrecoverable
Advances (as defined in the CDO Indentures)), applicable interest payable thereon, any Advancing Agent Fee and any previously due
but unpaid Advancing Agent Fee (as defined in the CDO Indentures) due and payable to CWCI in respect of the CDO Issuers and reimbursable
to CWCI pursuant to the CDO Indentures (collectively, the "Senior Interest Advance Amounts"), all as more fully
set forth herein.

 

    	- 3 -

    	 

    

 

AGREEMENTS

 

NOW, THEREFORE, in
consideration of the mutual agreements hereinafter set forth, and for other good and reasonable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties agree as follows:

 

Section 1.         Defined
Terms. Capitalized terms not defined herein shall have the meanings set forth in the Situs Special Servicing Agreement, the
CWCAM Special Servicing Agreement, the GLS Sub-Special Servicing Agreement, the Primary Servicing Agreements or the CDO Indentures,
as applicable.

 

Section 2.         Subordination
of Reimbursements. (a) Each of the Subordinated Gramercy Parties hereby agrees that (i) all Subordinated Servicing
Advances that the Subordinated Gramercy Parties are entitled to receive or recover under the Situs Special Servicing Agreement
or the GLS Sub-Special Servicing Agreement, as the case may be, are subordinated to the extent provided in Section 3(a) herein,
to all Senior Servicing Advances that the Senior Advancing Parties are entitled to receive or recover under the Primary Servicing
Agreements or the CWCAM Special Servicing Agreement, and (ii) no Subordinated Gramercy Party will accept, demand, sue for,
take or receive any cash or distributions from any obligor of any Assets of the CDO Issuers or any CDO Issuer in violation of the
provisions of this Agreement, unless and until any outstanding Senior Servicing Advances senior thereto pursuant to Section 3(a)
shall have been fully and finally paid in full to the Senior Advancing Parties.

 

(b) Each of the Subordinated
Gramercy Parties hereby agrees that (i) all Subordinated Cure Advance Amounts that the Subordinated Gramercy Parties are entitled
to receive or recover under the CDO Indentures are subordinated to the extent provided in Section 3(b) herein, to all Senior
Cure Advance Amounts that CWCI is entitled to receive or recover under the CDO Indentures, and (ii) no Subordinated Gramercy
Party will accept, demand, sue for, take or receive any cash or distributions from any obligor of any Assets of the CDO Issuers
or any CDO Issuer in violation of the provisions of this Agreement, unless and until any outstanding Senior Cure Advance Amounts
senior thereto pursuant to Section 3(b) shall have been fully and finally paid in full to CWCI.

 

(c) Each of the Subordinated
Gramercy Parties hereby agrees that (i) all Subordinated Interest Advance Amounts that the Subordinated Gramercy Parties are
entitled to receive or recover under the CDO Indentures are subordinated to the extent provided in Section 3(c) herein, to
all Senior Interest Advance Amounts that CWCI is entitled to receive or recover under the CDO Indentures, and (ii) no Subordinated
Gramercy Party will accept, demand, sue for, take or receive any cash or distributions from any obligor of any Assets of the CDO
Issuers or any CDO Issuer in violation of the provisions of this Agreement, unless and until any outstanding Senior Interest Advance
Amounts senior thereto pursuant to Section 3(c) shall have been fully and finally paid in full to CWCI.

 

(d) Each party hereto
acknowledges and accepts that all rights, title and interest of the Senior Advancing Parties into and under this Agreement are
being collaterally assigned and pledged to the Facility Provider as collateral to secure payments due and owing to the Facility
Provider by the Borrower in connection with loans made from time to time by the Facility Provider to the Borrower under the Wells
Facility and that the Facility Provider shall be an intended third party beneficiary of the Senior Advancing Parties' respective
rights herein.

 

    	- 4 -

    	 

    

 

Section 3.         Post-Effective
Date Application of Reimbursement Amounts.

 

(a) Servicing Advances.
On or after the Effective Date, if any Senior Advancing Party or its Affiliates receives any repayment or reimbursement of
"Servicing Advances" under the CWCAM Special Servicing Agreement, including, but not limited to, amounts received from
collections, recoveries, income, proceeds, judgments, sales or operating income, such amounts shall be distributed in the following
order of priority:

 

(i) first, to
the extent not previously reimbursed, to CWCAM in its capacity as the special servicer with back-up advancing responsibility under
the CWCAM Special Servicing Agreement, the aggregate amount of any Servicing Advances due and payable to CWCAM, until all such
outstanding Servicing Advances (including any previously due but unpaid amounts and any Nonrecoverable Advances (as defined in
the CWCAM Special Servicing Agreement) and applicable interest payable thereon) have been paid in full to CWCAM;

 

(ii) second,
to the extent not previously reimbursed, to CWCI in its capacity as the advancing party under the CWCAM Special Servicing Agreement,
the aggregate amount of any Servicing Advances due and payable to CWCI, until all such outstanding Servicing Advances (including
any previously due but unpaid amounts and any Nonrecoverable Advances (as defined in the CWCAM Special Servicing Agreement) and
applicable interest payable thereon) have been paid in full to CWCI; and

 

(iii) third,
on a pro rata basis, to the extent not previously reimbursed, to GLS and GKKM under the GLS Sub-Special Servicing Agreement
or the Situs Special Servicing Agreement, as applicable, the aggregate amount of any Servicing Advances due and payable to GLS
and GKKM, as applicable, until all such outstanding Servicing Advances (including any previously due but unpaid amounts and any
Nonrecoverable Advances (as defined in the CWCAM Special Servicing Agreement) and applicable interest payable thereon) have been
paid in full to GLS and GKKM;

 

provided, however,
that any proceeds, collections or recoveries related to a particular Serviced Asset available to reimburse the related Servicing
Advances (including interest on such Servicing Advances at the Advance Interest Rate) pursuant to Section 3.03(b)(iii) of
the Primary Servicing Agreements will be allocated to reimburse the Senior Advancing Parties and the Subordinated Gramercy Parties
with respect to such Servicing Advances (including interest on such Servicing Advances at the Advance Interest Rate) in accordance
with clauses (i)–(iii) above on an asset-by-asset basis, first, and then, once such proceeds, collections and recoveries
have been fully distributed in the order set forth in such clauses, all remaining proceeds, collections and recoveries will be
allocated to reimburse the Senior Advancing Parties and the Subordinated Gramercy Parties with respect to Nonrecoverable Advances
(including interest on such Servicing Advances at the Advance Interest Rate) pursuant to Section 3.03(b)(iv) of the Primary
Servicing Agreements in accordance with clauses (i)–(iii) above. For the avoidance of doubt, no proceeds, collections or
recoveries on a Serviced Asset will be applied to reimburse Servicing Advances on any asset other than such Serviced Asset until
all Servicing Advances on such Serviced Asset have been reimbursed in full.

 

    	- 5 -

    	 

    

 

(b) Cure Advances.
On or after the Effective Date, if any Senior Advancing Party or its Affiliates receives any repayment or reimbursement of
"Cure Advances" under the CDO Indentures, including, but not limited to, amounts received from collections, recoveries,
income, proceeds, judgments, sales or operating income, such amounts shall be distributed in the following order of priority:

 

(i) first, to
the extent not previously reimbursed, to CWCI in its capacity as the Collateral Manager, the aggregate amount of any Cure Advances
due and payable to CWCI in accordance with the applicable Priority of Payments, until all such outstanding Cure Advances (including
any previously due but unpaid amounts and any Nonrecoverable Cure Advances and applicable interest payable thereon) have been paid
in full to CWCI; and

 

(ii) second,
to the extent not previously reimbursed, to GKKM under the CDO Indentures, the aggregate amount of any Cure Advances due and
payable to GKKM in accordance with the applicable Priority of Payments, until all such outstanding Cure Advances (including any
previously due but unpaid amounts and any Nonrecoverable Cure Advances and applicable interest payable thereon) have been paid
in full to GKKM;

 

provided, however, that any proceeds, collections
or recoveries related to a particular Collateral Debt Security available to reimburse the related Nonrecoverable Cure Advances
(including any applicable interest thereon) pursuant to the applicable CDO Indenture (including the applicable Priority of Payments)
will be allocated to reimburse CWCI and GKKM with respect to such Nonrecoverable Cure Advances (including any applicable interest
thereon) in accordance with clauses (i)–(ii) above on an asset-by-asset basis, first, and then, once such proceeds,
collections and recoveries have been fully distributed in the order set forth in such clauses, all remaining proceeds, collections
and recoveries will be allocated to reimburse CWCI and GKKM with respect to Cure Advances (including any applicable interest thereon)
pursuant to the applicable CDO Indenture (including the applicable Priority of Payments) in accordance with clauses (i)–(ii)
above. For the avoidance of doubt, no proceeds, collections or recoveries on a Collateral Debt Security will be applied to reimburse
Cure Advances on any asset other than such Collateral Debt Security until all Cure Advances on such Collateral Debt Security have
been reimbursed in full.

 

(c) Interest Advances.
On or after the Effective Date, if any Senior Advancing Party or its Affiliates receives any repayment or reimbursement of
"Interest Advances" under the CDO Indentures and any payment of Advancing Agent Fee (as defined in the CDO Indentures),
including, but not limited to, amounts received from collections, recoveries, income, proceeds, judgments, sales or operating
income, such amounts shall be distributed in the following order of priority:

 

(i) first, to
the extent not previously reimbursed or paid, to CWCI in its capacity as the advancing agent, the aggregate amount of any Interest
Advances and Advancing Agent Fee due and payable to CWCI, in each case in accordance with the applicable CDO Indenture (including
the applicable Priority of Payment), until all such outstanding Interest Advances and Advancing Agent Fee (including any previously
due but unpaid amounts and any Nonrecoverable Advances and applicable interest payable thereon) have been paid in full to CWCI;
and

 

(ii) second,
to the extent not previously reimbursed or paid, to GKKL under the CDO Indentures, the aggregate amount of any Interest Advances
and Advancing Agent Fee due and payable to GKKL, in each case in accordance with the applicable CDO Indenture (including the applicable
Priority of Payment), until all such outstanding Interest Advances and Advancing Agent Fee (including any previously due but unpaid
amounts and any Nonrecoverable Advances and applicable interest payable thereon) have been paid in full to GKKL.

 

    	- 6 -

    	 

    

 

(d) Subject to the
applicable payment priorities set forth in Sections 3(a), 3(b) and 3(c) and to actual receipt by the applicable Senior Advancing
Party, if any, any amounts reimbursable to a Subordinated Gramercy Party shall be paid over to such Subordinated Gramercy Party
as soon as reasonably possible after such receipt by the applicable Senior Advancing Party, if any, pursuant to the terms of the
Primary Servicing Agreement, the CWCAM Special Servicing Agreement or the CDO Indentures, as applicable.

 

(e) On or after the
Effective Date, if any Subordinated Gramercy Party or its Affiliates receives any repayment or reimbursement of (i) "Servicing
Advances" (including any Nonrecoverable Advances and any applicable interest thereon) under the GLS Sub-Special Servicing
Agreement or the Situs Special Servicing Agreement, (ii) "Cure Advances" (including any Nonrecoverable Cure Advances
and any applicable interest thereon) under the CDO Indentures, or (iii) "Interest Advances" (including any Advancing
Agent Fee, Nonrecoverable Advances (as defined in the CDO Indentures) and any applicable interest thereon) under the CDO Indentures,
such party shall receive and hold the same in trust, as trustee, for the benefit of the applicable Senior Advancing Party or Senior
Advancing Parties and shall promptly pay over and deliver, or shall cause to be promptly paid-over and delivered, all such amounts
directly to the applicable Senior Advancing Party in accordance with Sections 3(a), 3(b) and 3(c), in all cases unconditionally,
without reduction, set-off or any other limitation, to a bank account designated in writing by the applicable Senior Advancing
Party, it being understood and agreed that the Subordinated Gramercy Party shall have no interest in or right to any such amounts
other than as provided in this Agreement. The Subordinated Gramercy Parties agree not to initiate or prosecute any claim, action
or other proceeding challenging the enforceability of any of the Senior Advancing Parties' claims hereunder.

 

(f) On or after the
Effective Date and subject to the applicable payment priorities set forth in Sections 3(a), 3(b) and 3(c), the applicable
Senior Advancing Party will hold any repayment or reimbursement of:

 

(i) "Servicing
Advances" (including any Nonrecoverable Advances and any applicable interest thereon) relating to the Subordinated Servicing
Advances received under the CWCAM Special Servicing Agreement (but only to the extent the Senior Advancing Parties are not entitled
to such repayments and reimbursements under the payment priorities set forth in Section 3(a)), in trust, as trustee, for the
benefit of each Subordinated Gramercy Party, subject to Section 3(a) and the terms hereof;

 

(ii) "Cure Advances"
(including any Nonrecoverable Cure Advances and any applicable interest thereon) relating to the Subordinated Cure Advance Amounts
received under the CDO Indentures (but only to the extent CWCI is not entitled to such repayments and reimbursements under the
payment priorities set forth in Section 3(b)), in trust, as trustee, for the benefit of GKKM, subject to Section 3(b)
and the terms hereof; and

 

(iii) "Interest
Advances" (including any Advancing Agent Fee, Nonrecoverable Advances (as defined in the CDO Indentures) and any applicable
interest thereon) relating to the Subordinated Interest Advance Amounts received under the CDO Indentures (but only to the extent
CWCI is not entitled to such repayments and reimbursements under the payment priorities set forth in Section 3(c)), in trust,
as trustee, for the benefit of GKKL, subject to Section 3(c) and the terms hereof;

 

    	- 7 -

    	 

    

 

and, in each case,
to the extent required hereunder, shall promptly pay over and deliver, or shall cause to be promptly paid-over and delivered, all
such amounts, directly to the applicable Subordinated Gramercy Parties in all cases unconditionally, without reduction, set-off
or any other limitation, to a bank account designated in writing by the Subordinated Gramercy Parties, it being understood and
agreed that the Senior Advancing Parties shall have no interest in or right to any such amounts other than as provided in this
Agreement. The Senior Advancing Parties agree not to initiate or prosecute any claim, action or other proceeding challenging the
enforceability of any of the Subordinated Gramercy Parties’ claims hereunder.

 

Section 4.         Reports.
(a) Absent manifest error and taking into account any subsequent revisions to the Remittance Reports produced pursuant to the CWCAM
Special Servicing Agreement or the Situs Special Servicing Agreement, each Subordinated Gramercy Party agrees and acknowledges
that all reimbursements of the Subordinated Servicing Advances calculated based on the accounting of expenses and Servicing Advances
set forth in the Remittance Reports shall be conclusive. To the extent permitted by the Primary Servicing Agreements and the CWCAM
Special Servicing Agreement and upon reasonable request by any Subordinated Gramercy Party, the Senior Advancing Parties agree
to provide such requesting party with a copy of such Remittance Reports or other reports received by the Senior Advancing Parties
under the CWCAM Special Servicing Agreement which are reasonably necessary to enable the Subordinated Gramercy Parties to ascertain
recoveries of Servicing Advances with respect to Serviced Assets from collections thereon.

 

(b) Absent manifest
error and taking into account any subsequent revisions to the Monthly Reports and the Note Valuation Reports produced pursuant
to the CDO Indentures, each Subordinated Gramercy Party agrees and acknowledges that all reimbursements of the Subordinated Cure
Advance Amounts and the Subordinated Interest Advance Amounts calculated based on such reports shall be conclusive.

 

Section 5.         Representations
and Warranties. Each party hereto represents and warrants to each other party hereto that this Agreement has been duly and
validly executed and delivered by such Person and constitutes its legal, valid and binding obligation, enforceable against such
Person in accordance with its terms. Each Subordinated Gramercy Party represents and warrants to each Senior Advancing Party that
the statements contained in the Schedules to this Agreement with respect to the Subordinated Advances are true and correct in all
material respects.

 

Section 6.         Miscellaneous.

 

(a) This Agreement
may be executed by one or more of the parties to this Agreement in any number of separate counterparts, each of which, when so
executed, shall be deemed an original, and all of said counterparts taken together shall be deemed to constitute but one and the
same instrument.

 

(b) This Agreement
shall be binding upon each of the undersigned and upon each of the undersigned’s respective heirs, legal representatives,
successors and assigns.

 

(c) No delay on the
part of any Senior Advancing Party in the exercise of any right or remedy shall operate as a waiver thereof, and no single or partial
exercise by any Senior Advancing Party of any right or remedy shall preclude other or further exercise thereof or the exercise
of any other right or remedy; nor shall any modification or waiver of any of the provisions of this Agreement be binding upon any
Senior Advancing Party except as expressly set forth in writing duly signed and delivered on behalf of such Senior Advancing Party.

 

    	- 8 -

    	 

    

 

(d) This Agreement
shall be governed by and construed in accordance with the laws of the State of New York. 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 such law, such provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions of this Agreement. The terms defined in this Agreement
include the plural as well as the singular, and the use of any gender herein shall be deemed to include the other gender. All notices,
demands, instructions and other communications required or permitted to be given to or made upon any person or entity relating
to this Agreement shall be made in accordance with the provisions of Section 6(h).

 

(e) This Agreement
embodies the entire agreement and understanding among the parties hereto, and supersedes all prior or contemporaneous agreements
and understandings of such Persons, verbal or written, relating to the subject matter hereof and thereof. The parties hereto agree
that this Agreement is subject to the provisions of the CDO Indentures, the Primary Servicing Agreements and the CWCAM Special
Servicing Agreement and is not intended to, and does not, expand, limit, alter or modify the rights and obligations of the parties
thereunder. The parties agree that the provisions of Section 2 or 3 of this Agreement are not inconsistent with the CDO Indentures,
the Primary Servicing Agreements and the CWCAM Special Servicing Agreement.

 

(f) This Agreement
is made and entered into for the sole protection and legal benefit of the parties hereto and their respective successors and assigns,
and no other Person shall be a direct or indirect legal beneficiary of, or have any direct or indirect cause of action or claim
in connection with, this Agreement, provided that the Facility Provider shall be a third party beneficiary of the Senior Advancing
Parties' respective rights hereunder.

 

(g) Upon reasonable
request by any of the Parties, the other Party shall, at any time and from time to time, execute and deliver any such further instruments
and documents, and take such further actions, as may reasonably be requested by such other party to effectuate the benefits to
such Party hereunder.

 

(h) All notices or
other communications required or permitted to be given hereunder shall be in writing and shall be delivered by hand or sent by
facsimile or sent, postage prepaid, by registered, certified or express mail or overnight courier service and shall be deemed given
when so delivered by hand or facsimile, or if mailed, three days after mailing (one Business Day in the case of express mail or
overnight courier service), as follows:

 

(i) if to CWCI:

 

CWCapital Investments LLC

7501 Wisconsin Avenue, Suite 500

Bethesda, Maryland 20814

Attention: Charles Spetka

Facsimile: (646) 253-8849

 

(ii) if to CWCAM:

 

CWCapital Asset Management LLC

7501 Wisconsin Avenue, Suite 500 West

Bethesda, Maryland 20814

Attention: Brian Hanson, Managing Director

Facsimile: (212) 715-9699

 

    	- 9 -

    	 

    

 

(iii) if to GKKM , GKKL and GLS:

 

c/o Gramercy Capital Corp.

420 Lexington Avenue, 18th Floor

New York, NY 10170

Attention: Michael Kavourias and Edward J. Matey Jr.

Facsimile: (646) 428-0761

 

(h) EACH PARTY HERETO CONSENTS TO JURISDICTION
IN THE STATE OF NEW YORK AND VENUE IN ANY STATE OR FEDERAL COURT IN NEW YORK COUNTY, STATE OF NEW YORK FOR SUCH PURPOSES AND WAIVES
ANY AND ALL RIGHTS TO CONTEST SAID JURISDICTION AND VENUE AND ANY OBJECTION THAT SAID COUNTY IS NOT CONVENIENT. EACH PARTY HERETO
WAIVES ANY RIGHTS TO COMMENCE ANY ACTION IN ANY JURISDICTION EXCEPT THE AFORESAID COUNTY AND STATE. EACH PARTY HERETO HEREBY EACH
EXPRESSLY WAIVES ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY WITH RESPECT
TO ANY MATTER WHATSOEVER RELATING TO, ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT.

 

[Signature Pages Follow]

 

    	- 10 -

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have duly executed this Agreement as of the day and year first written above.

 

	 	GKK MANAGER LLC 
	 	 
	 	By: 	 
	 	Name: 
	 	Title: 
	 	 
	 	GRAMERCY LOAN SERVICES LLC 
	 	 
	 	By:	 
	 	Name: 
	 	Title: 
	 	 
	 	GKK LIQUIDITY LLC 
	 	 
	 	By:	 
	 	Name: 
	 	Title: 

 

    	- 11 -

    	 

    

 

	 	CWCAPITAL INVESTMENTS LLC 
	 	 
	 	By: 	 
	 	Name: 
	 	Title: 
	 	 
	 	CWCAPITAL ASSETS MANAGEMENT LLC 
	 	 
	 	By: 	 
	 	Name: 
	 	Title: 

  

    	- 12 -

    	 

    

Schedule I

 

Outstanding GKKM Special Servicing Advance
Amount

 

    	- 13 -

    	 

    

Schedule II

 

Outstanding GLS Servicing Advance Amount

 

    	- 14 -

    	 

    

Schedule III

 

Subordinated Interest Advance Amounts

 

    	- 15 -

    	 

    

Schedule IV

 

Subordinated Cure Advance Amounts

 

    	- 16 -

    	 

    

 

Exhibit M

 

Form of Supplemental Indenture

 

 

 

SECOND SUPPLEMENTAL INDENTURE
dated as of [●], 2013 (this “Supplemental Indenture”) among GRAMERCY REAL ESTATE CDO 2005-1, LTD., a Cayman Islands
exempted company with limited liability (together with its permitted successors and assigns, the “Issuer”), GRAMERCY
REAL ESTATE CDO 2005-1 LLC, a limited liability company formed under the laws of
Delaware (together with its permitted successors and assigns, the “Co-Issuer” and, together with the Issuer, the “Co-Issuers”),
WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as trustee, paying agent, calculation agent, transfer agent,
custodial securities intermediary, backup advancing agent and notes registrar under the Current Indenture referred to below (together
with its permitted successors and assigns in the trusts under the Current Indenture, the “Trustee”), and CWCAPITAL
INVESTMENTS LLC, a Massachusetts limited liability company, as successor advancing agent to GKK Liquidity LLC (together with its
permitted successors and assigns in the trusts under the Current Indenture, the “Advancing Agent”), to the Indenture
dated as of July 14, 2005 among the Issuer, the Co-Issuer, the Trustee and GKK Liquidity LLC, as the advancing agent as previously
supplemented by the First Supplemental Indenture dated as of August 14, 2007 to the Indenture among the Co-Issuers, the Trustee
and the Advancing Agent (as so previously supplemented, the “Current Indenture”). For all purposes of this Supplemental
Indenture, all capitalized terms used herein without definition shall have the respective meanings set forth or referred to in
the Current Indenture. Except as otherwise specified herein, each reference herein to a “Section” is to such Section
of the Current Indenture.

 

RECITALS

 

The Co-Issuers, the Trustee
and the Advancing Agent are parties to the Current Indenture.

 

Pursuant to the first
paragraph of Section 8.2, except with respect to certain enumerated modifications, with the written consent of (a) the Holders
of not less than a Majority in Aggregate Outstanding Amount (excluding any Notes owned by the Collateral Manager or any of its
Affiliates, or by any accounts managed by them) of the Notes of each class materially and adversely affected thereby and all of
the Holders of Preferred Shares if materially and adversely affected thereby by Act of said Securityholders delivered to the Trustee
and the Co-Issuers and (b) the consent of each Hedge Counterparty that is materially and adversely affected thereby, the Trustee
and the Co-Issuers may enter into one or more indentures supplemental to the Current Indenture to add any provisions to, or change
in any manner or eliminate any of the provisions of, the Current Indenture or modify in any manner the rights of the Holders of
the Notes of such Class or the Preferred Shares, as the case may be, under the Current Indenture.

 

Pursuant to Section 8.2,
if any Class of Notes is Outstanding and rated by a Rating Agency, the Trustee shall not enter into any supplemental indenture
if, as a result of such supplemental indenture, such Rating Agency would cause the rating of any such Notes to be immediately reduced
or withdrawn. At the cost of the Issuer, for so long as any Class of Notes shall remain Outstanding and is rated by a Rating Agency,
the Trustee shall provide to such Rating Agency a copy of any proposed supplemental indenture at least 15 days prior to the
execution thereof by the Trustee, and, for so long as such Notes are Outstanding and so rated, request written confirmation that
such Rating Agency will not, as a result of such supplemental indenture, cause the rating of any such Class of Notes to be reduced
or withdrawn.

 

    	- 1 -

    	 

    

 

The Co-Issuers wish to
enter into this Supplemental Indenture in order to permit the Issuer to have one or more special purpose subsidiaries solely for
the purpose of holding title to any property obtained in connection with any foreclosure or other similar proceeding on, or any
transfer in lieu thereof of, any property securing any Collateral Debt Security, or by transfer of any property held by any Person
on behalf of the Issuer which previously secured any Collateral Debt Security whether or not then outstanding.

 

In connection with this
Supplemental Indenture, the following events have occurred:

 

		(i)	In connection with the first paragraph of Section 8.2, the Trustee has given fifteen (15) Business
Days’ notice of this Supplemental Indenture (along with a description of the substance of such supplement provided by GKK
Manager LLC in its capacity as the prior collateral manager (“GKKM”)) to the Holders of each Class of Notes,
the Holders of the Preferred Shares and each Hedge Counterparty and the Trustee has not received notice by the Holders of a Majority
in Aggregate Outstanding Amount (excluding any Notes owned by the Collateral Manager or any of its Affiliates, or by any accounts
managed by them) of the Notes of any Class or the Holders of Preferred Shares that such Holders would be materially and adversely
affected by this Supplemental Indenture.

 

		(ii)	In connection with the third paragraph of Section 8.2, the Trustee, at the cost of the Issuer and
prior to the execution of this Supplemental Indenture, has provided to each of the Rating Agencies a copy of this Supplemental
Indenture in proposed form.  In connection with the execution of this Supplemental Indenture, one or more of the Rating Agencies
have consented to, accepted or otherwise agreed to a shorter notice period.

 

		(iii)	As required by Section 8.2, the Trustee has received confirmation in writing from each of S&P,
Moody’s and Fitch that the current ratings on the Notes will not be immediately reduced, qualified or withdrawn as a result
of this Supplemental Indenture and, as a result, the Rating Agency Condition and the condition of Section 8.2 with respect to S&P,
Moody’s and Fitch has been satisfied with respect to this Supplemental Indenture.

 

		(iv)	As provided in Section 8.3, the Collateral Manager has received written notice of this Supplemental
Indenture prior to the execution and delivery of this Supplemental Indenture, and has consented to, accepted or otherwise agreed
to a shorter notice period. In connection with Section 8.3, the Trustee and the Issuer have received the written consent of the
Collateral Manager to this Supplemental Indenture.

 

    	- 2 -

    	 

    

 

		(v)	Pursuant to Section 8.3, the Trustee has received an Opinion of Counsel of Clifford Chance US LLP
regarding this Supplemental Indenture, which Opinion of Counsel is subject to the assumptions, limitations, qualifications and
exceptions set forth therein.

 

		(vi)	The Trustee has received an Opinion of Counsel from a nationally recognized U.S. tax counsel experienced
in such matters, to the effect that this Supplemental Indenture will not cause the Issuer to fail to be treated as a qualified
REIT subsidiary (within the meaning of Section 856(i)(2) of the Code) or otherwise be treated as a foreign corporation subject
to U.S. federal income tax on a net income tax basis, which Opinion of Counsel is subject to the assumptions, limitations, qualifications
and exceptions set forth therein.

 

Accordingly, in consideration
of the premises contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

SECTION 1. Amendments.
The Current Indenture is hereby amended as follows:

 

(a)          The
Granting Clauses is amended to add a new clause (f) which shall read “equity interests in any Permitted REO Subsidiary”.

 

(b)          The
Granting Clauses is amended to change current clauses (f) and (g), and references thereto, to clauses (g) and (h), respectively.

 

(c)          The
Granting Clauses is amended to change the reference from clauses “(a)-(f)” to clauses “(a)-(g)” and the
reference from clauses “(a)-(g)” to clauses “(a)-(h)”.

 

(d)          Section 1.1 is amended to add the following three new definitions:

 

“Permitted REO Equity
Interest”: Equity interests in any Permitted REO Subsidiary.

 

“Permitted REO Subsidiary”: 
A wholly-owned subsidiary of the Issuer, generally formed for the purpose of holding and operating REO Property and for any other
necessary or desirable activities in connection therewith.

 

“REO Property”:
With respect to any Loan (including without limitation, any Mezzanine Loan), any and all right, title or interest in any assets
acquired through foreclosure, acceptance of a deed-in-lieu of foreclosure, bankruptcy or similar insolvency proceeding or otherwise
in accordance with applicable law or by enforcement of any guarantees related to such Loan, in each case in connection with the
default or imminent default of such Loan (or the underlying commercial mortgage loan or mezzanine loan), including without limitation,
real property and improvements thereon, personal property included therein or incidental thereto or equity, partnership, membership
or beneficial ownership interests in the related borrower or other Person constituting collateral for such Loan.

 

    	- 3 -

    	 

    

 

(e)          The
definition of “Company Administrative Expenses” in Section 1.1 is hereby amended by adding the following immediately
after “and any amounts due in respect of the listing of any Notes on the Irish Stock Exchange” in clause (xii) of such
definition:

 

“and any
fees, costs and expenses of, or relating to, a Permitted REO Subsidiary (including relating to the acquisition, transfer or disposition
of a Permitted REO Equity Interest)”.

 

(f)          Section
7.4(c)(ii) is amended to read as follows: “the Issuer shall not have any subsidiaries other than Permitted REO Subsidiaries,
and”.

 

(g)          Section
1.1 is amended by replacing the definition of “Specified Type” with the following definition:

 

“Specified
Type”: Each of a Loan, CMBS Security, CRE CDO Security, REIT Debt Security, Preferred Equity Security and any Permitted
REO Equity Interest.

 

(h)          New
Section 7.19 is inserted after the end of Section 7.18 to read in full as follows:

 

Section 7.19.     Permitted
REO Subsidiaries.

 

(a)          The Issuer
has entered into or will enter into certain limited liability company agreements and limited partnership agreements attached hereto
as Exhibit A pursuant to certain assignment and assumption or transfer agreements on or about the date hereof in connection
with the acquisition of the Permitted REO Subsidiaries identified on Schedule A hereto.  The Issuer may from time to
time, as directed by the Collateral Manager, form one or more Permitted REO Subsidiaries by entering into one or more limited liability
company agreements or limited partnership agreements subject to the following criteria and requirements:

 

(1) the Issuer
shall only form a Permitted REO Subsidiary for the purpose of holding, operating, realizing and/or disposing of any REO Property
in connection with a foreclosure, workout or restructuring and for any other necessary or desirable activities in connection therewith;

 

(2) as
long as any Notes are Outstanding, the Issuer shall not sell, transfer, or otherwise dispose of its interests in any
Permitted REO Subsidiary unless the assets constituting any REO Property (or the proceeds thereof) in such Permitted REO
Subsidiary have been distributed to the Issuer or have been sold, transferred or otherwise disposed of;

 

    	- 4 -

    	 

    

 

(3) as
long as a Permitted REO Subsidiary has not ceased to be owned by the Issuer in accordance with clause (2) above, the Issuer
shall adhere to such procedures as are specified in such Permitted REO Subsidiary's organizational documents for maintaining
its existence;

 

(4) in
the event that a Permitted REO Subsidiary owns any asset upon the Stated Maturity or other latest permitted maturity under
this Indenture of any Notes, the Issuer shall dissolve such Permitted REO Subsidiary and liquidate its assets in accordance
with the applicable terms of the Permitted REO Subsidiary's organizational documents at the direction of the Collateral
Manager and promptly deliver the proceeds thereof to the Trustee for deposit into the Payment Account and distribution in
accordance with Section 11.1;

 

(5) each Permitted
REO Subsidiary shall agree to be subject to and bound by each obligation or covenant of the Issuer under any Transaction Document
to which the Issuer is a party or by which the Issuer is bound with the same effect as if such Permitted REO Subsidiary had been
named as the Issuer thereunder;

 

(6) each Permitted
REO Subsidiary shall agree not to cause the Issuer to default in the performance of, or breach, any covenant, representation or
warranty of the Issuer under any Transaction Document to which the Issuer is a party or by which the Issuer is bound;

 

(7) each Permitted
REO Subsidiary shall grant all right, title and interest in, to and under any REO Property held by the related Permitted REO Subsidiary
to the Trustee, for the benefit and security of the Secured Parties;

 

(8) subject
to applicable law, the organizational documents for each Permitted REO Subsidiary shall require the related Permitted REO Subsidiary
to promptly distribute 100% of any distributions on, and proceeds of, any REO Property held by such Permitted REO Subsidiary, net
of any taxes, fees or assessments, to the Issuer as holder of the equity interest in such Permitted REO Subsidiary; and

 

(9) the organizational
documents for each Permitted REO Subsidiary shall require that the related Permitted REO Subsidiary have, at all times, at least
one independent director duly appointed to, and serving on, its board of directors or have a special member whose vote will be
required on specified separateness matters.

 

    	- 5 -

    	 

    

 

(b)          With
respect to any REO Property held by a Permitted REO Subsidiary for reporting purposes by the Trustee for characterization of
proceeds as either Interest Proceeds or Principal Proceeds and for purposes of the Collateral Quality Tests or Par Value
Coverage Tests, the Issuer will be deemed to directly own any REO Property held by a Permitted REO Subsidiary rather than the
related Permitted REO Equity Interest; provided that, for the avoidance of doubt, any distributions of Cash by the
Permitted REO Subsidiary to the Issuer shall be categorized as either Interest Proceeds or Principal Proceeds in accordance
with the provisions of this Indenture governing Cash received by the Issuer in respect of a Defaulted Security. With respect
to any Permitted REO Subsidiary, the parties hereto agree that any reports prepared by the Trustee with respect to any
Permitted REO Equity Interest shall refer to any related REO Property held by such Permitted REO Subsidiary instead of the
related Permitted REO Equity Interests.

 

(c)          The
Issuer shall not, without the affirmative vote or written consent of 100% of its directors, exercise any voting rights with
respect to any Permitted REO Equity Interests seeking (i) any institution of any action to have such Permitted REO Subsidiary
adjudicated as bankrupt or insolvent, any consent to the institution of bankruptcy or insolvency proceedings against it, any
request or consent to the entry of any order for relief or the appointment of a receiver, liquidator, assignee, trustee,
sequestrator or other similar official for it or for any substantial part of its property, any liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors, any making of any general assignment for the benefit of
creditors, or any admission in writing that it is unable to pay its debts generally as they become due or (ii) to take any
corporate action in furtherance of any action set forth in this Section 7.19. Each of the Co-Issuer and the Trustee agrees
that it shall not seek, or join in, the institution of any action or proceeding to have a Permitted REO Subsidiary
adjudicated as bankrupt or insolvent.

 

(d)          Upon each
future formation of a Permitted REO Subsidiary, prompt written notice thereof shall be provided by the Issuer to each Rating Agency.

 

SECTION 2. Effective
Date. The effective date of this Supplemental Indenture shall be the date first written above.

 

SECTION 3. Reference
to “Indenture”; Effect of this Supplemental Indenture. Pursuant to Section 8.4, upon the effectiveness of this
Supplemental Indenture, the Current Indenture shall be modified in accordance with this Supplemental Indenture, and this Supplemental
Indenture shall form a part of the Current Indenture for all purposes; and every Holder of Securities theretofore and thereafter
authenticated and delivered under the Current Indenture and each Hedge Counterparty shall be bound thereby. All references in the
Indenture and the Securities to the “Indenture” (including correlative references such as “hereof”) shall
be deemed to refer to the Current Indenture as supplemented and amended by this Supplemental Indenture. Except as otherwise specified
in this Supplemental Indenture, the Current Indenture shall remain in all respects unchanged and in full force and effect.

 

    	- 6 -

    	 

    

 

SECTION 4. Counterparts.
This Supplemental Indenture may be executed by the parties hereto in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

SECTION 5. Governing
Law. THIS SUPPLEMENTAL INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE
TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

 

SECTION 6. Execution,
Delivery and Validity. Each of the Issuer, the Co-Issuer and the Advancing Agent represents and warrants to the Trustee that
this Supplemental Indenture has been duly and validly executed and delivered by such Person and constitutes its legal, valid and
binding obligation, enforceable against such Person in accordance with its terms. The Trustee accepts the amendment to the Current
Indenture as set forth in this Supplemental Indenture and agrees to perform the duties of the Trustee upon the terms and conditions
set forth herein and in the Current Indenture set forth therein. Without limiting the generality of the foregoing, the Trustee
assumes no responsibility for the correctness of the recitals contained herein, which shall be taken as the statements of the Co-Issuers.
In entering into the Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of this Indenture
relating to the conduct of or affecting the liability of or affording protection to the Trustee, including but not limited to the
provisions of Sections 6.1 and 6.3.

 

SECTION 7. Successors
and Assigns. All covenants and agreements in this Supplemental Indenture by the Issuer and Co-Issuer shall bind their respective
successors and assigns, whether so expressed or not.

 

[remainder of this page
intentionally left blank]

 

    	- 7 -

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Supplemental Indenture to be executed as of the date first written above.

 

	 	Executed as a Deed
	 	 	 
	 	GRAMERCY REAL ESTATE CDO 2005-1, 

LTD., as Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	In the presence of:
	 	 	 
	 	Witness:	 
	 	 	 
	 	 	Name:
	 	 	Occupation:
	 	 	Title:
	 	 	 
	 	GRAMERCY REAL ESTATE CDO 2005-1 

LLC, as Co-Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	WELLS FARGO BANK, NATIONAL 

ASSOCIATION, as Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    
 

	 	CWCAPITAL INVESTMENTS LLC,
	 	as Advancing Agent
	 	 	 
	 	By:   	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

Exhibit A

 

Limited Liability Company
Agreements and Limited Partnership Agreements

 

    	- Exh. A -

    	 

    

 

Schedule A

 

Permitted REO Subsidiaries

 

[To come]

 

    	- Sch. A -

    	 

    
 

 

 

FOURTH SUPPLEMENTAL INDENTURE
dated as of [●], 2013 (this “Supplemental Indenture”) among GRAMERCY REAL ESTATE CDO 2006-1, LTD., a Cayman Islands
exempted company with limited liability (together with its permitted successors and assigns, the “Issuer”), GRAMERCY
REAL ESTATE CDO 2006-1 LLC, a limited liability company formed under the laws of
Delaware (together with its permitted successors and assigns, the “Co-Issuer” and, together with the Issuer, the “Co-Issuers”),
WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as trustee, paying agent, calculation agent, transfer agent,
custodial securities intermediary, backup advancing agent and notes registrar under the Current Indenture referred to below (together
with its permitted successors and assigns in the trusts under the Current Indenture, the “Trustee”), and CWCAPITAL
INVESTMENTS LLC, a Massachusetts limited liability company, as successor advancing agent to GKK Liquidity LLC (together with its
permitted successors and assigns in the trusts under the Current Indenture, the “Advancing Agent”), to the Indenture
dated as of August 24, 2006 among the Issuer, the Co-Issuer, the Trustee and GKK Liquidity LLC, as the advancing agent, as previously
supplemented by the First Supplemental Indenture dated as of September 26, 2007 and by the Second Supplemental Indenture dated
as of August 5, 2008, in each case among the Co-Issuers, the Trustee and the Advancing Agent, and by the Indenture Amendment dated
as of October 28, 2010, among the Co-Issuers and the Collateral Manager and acknowledged by the Trustee (as so previously supplemented,
the “Current Indenture”). For all purposes of this Supplemental Indenture, all capitalized terms used herein without
definition shall have the respective meanings set forth or referred to in the Current Indenture. Except as otherwise specified
herein, each reference herein to a “Section” is to such Section of the Current Indenture.

 

RECITALS

 

The Co-Issuers, the Trustee
and the Advancing Agent are parties to the Current Indenture.

 

Pursuant to the first
paragraph of Section 8.2, except with respect to certain enumerated modifications, with the written consent of (a) the Holders
of not less than a Majority in Aggregate Outstanding Amount (excluding any Notes owned by the Collateral Manager or any of its
Affiliates, or by any accounts managed by them) of the Notes of each class materially and adversely affected thereby and all of
the Holders of Preferred Shares if materially and adversely affected thereby by Act of said Securityholders delivered to the Trustee
and the Co-Issuers and (b) the consent of each Hedge Counterparty that is materially and adversely affected thereby, and subject
to satisfaction of the Rating Agency Condition, the Trustee and the Co-Issuers may enter into one or more indentures supplemental
to the Current Indenture to add any provisions to, or change in any manner or eliminate any of the provisions of, the Current Indenture
or modify in any manner the rights of the Holders of the Notes of such Class or the Preferred Shares, as the case may be, under
the Current Indenture.

 

    	 

    	 

    

 

Pursuant to Section 8.2,
if any Class of Notes is Outstanding and rated by a Rating Agency, the Trustee shall not enter into any supplemental indenture
if, as a result of such supplemental indenture, such Rating Agency would cause the rating of any such Notes to be immediately reduced
or withdrawn. At the cost of the Issuer, for so long as any Class of Notes shall remain Outstanding and is rated by a Rating Agency,
the Trustee shall provide to such Rating Agency a copy of any proposed supplemental indenture at least fifteen (15) days prior
to the execution thereof by the Trustee, and, for so long as such Notes are Outstanding and so rated, request written confirmation
that such Rating Agency will not, as a result of such supplemental indenture, cause the rating of any such Class of Notes to be
reduced or withdrawn.

 

Pursuant to Section 8.6,
notwithstanding anything in Article 8 to the contrary, so long as the Class A-1 Notes are the Controlling Class, the Issuer, the
Co-Issuer and the Trustee shall not enter into any supplemental indenture without obtaining the consent of the Holders of a Majority
of the Class A-1 Notes (such consent not to be unreasonably withheld); provided that, if the Holders of the Class A-1 Notes
do not object to such supplemental indenture within seven (7) days after notice is given, such Holders shall be deemed to have
consented to such supplemental indenture.

 

The Co-Issuers wish to
enter into this Supplemental Indenture in order to permit the Issuer to have one or more special purpose subsidiaries solely for
the purpose of holding title to any property obtained in connection with any foreclosure or other similar proceeding on, or any
transfer in lieu thereof of, any property securing any Collateral Debt Security, or by transfer of any property held by any Person
on behalf of the Issuer which previously secured any Collateral Debt Security whether or not then outstanding.

 

In connection with this
Supplemental Indenture, the following events have occurred:

 

	 	(i)	In connection with the first paragraph of Section 8.2, the Trustee has given fifteen (15) Business Days’ notice of this Supplemental Indenture (along with a description of the substance of such supplement provided by GKK Manager LLC in its capacity as the prior collateral manager (“GKKM”)) to the Holders of each Class of Notes, the Holders of the Preferred Shares and each Hedge Counterparty and the Trustee has not received notice by the Holders of a Majority in Aggregate Outstanding Amount (excluding any Notes owned by the Collateral Manager or any of its Affiliates, or by an accounts managed by them) of the Notes of any Class or the Holders of Preferred Shares that such Class of Notes or the Preferred Shares would be materially and adversely affected by this Supplemental Indenture.
	 	 	 
	 	(ii)	In connection with the third paragraph of Section 8.2, the Trustee, at the cost of the Issuer and prior to the execution of this Supplemental Indenture, has provided to each of the Rating Agencies a copy of this Supplemental Indenture in proposed form. In connection with the execution of this Supplemental Indenture, one or more of the Rating Agencies have consented to, accepted or otherwise agreed to a shorter notice period.

 

    	- 2 -

    	 

    

 

	 	(iii)	As required by Section 8.2, the Trustee has received confirmation in writing from each of S&P and Moody’s that the current ratings on the Notes will not be immediately reduced, qualified or withdrawn as a result of this Supplemental Indenture and, as a result, the Rating Agency Condition and the condition of Section 8.2 with respect to S&P and Moody’s has been satisfied with respect to this Supplemental Indenture.
	 	 	 
	 	(iv)	As provided in Section 8.3, the Collateral Manager has received written notice of this Supplemental Indenture prior to the execution and delivery of this Supplemental Indenture and has consented to, accepted or otherwise agreed to a shorter notice period. In connection with Section 8.3, the Trustee and the Issuer have received the written consent of the Collateral Manager to this Supplemental Indenture.
	 	 	 
	 	(v)	Pursuant to Section 8.3, the Trustee has received an Opinion of Counsel of Clifford Chance US LLP regarding this Supplemental Indenture, which Opinion of Counsel is subject to the assumptions, limitations, qualifications and exceptions set forth therein.
	 	 	 
	 	(vi)	The Trustee has received an Opinion of Counsel from a nationally recognized U.S. tax counsel experienced in such matters, to the effect that this Supplemental Indenture will not cause the Issuer to fail to be treated as a qualified REIT subsidiary (within the meaning of Section 856(i)(2) of the Code) or otherwise be treated as a foreign corporation subject to U.S. federal income tax on a net income tax basis, which Opinion of Counsel is subject to the assumptions, limitations, qualifications and exceptions set forth therein.
	 	 	 
	 	(vii)	In connection with Section 8.6, the Trustee has given seven (7) days’ notice of this Supplemental Indenture (along with a description of the substance of such supplement provided by GKKM) to the Holders of the Class A-1 Notes and the Trustee has either received the written consent of the Holders of a Majority of the Class A-1 Notes, or has not received notice of an objection to this Supplemental Indenture by the Holders of the Class A-1 Notes.

 

Accordingly, in consideration
of the premises contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

SECTION 1. Amendments.
The Current Indenture is hereby amended as follows:

 

(a)          The
Granting Clauses is amended to add a new clause (f) which shall read “equity interests in any Permitted REO Subsidiary”.

 

(b)          The
Granting Clauses is amended to change current clauses (f), (g) and (h), and references thereto, to clauses (g), (h) and (i), respectively.

 

    	- 3 -

    	 

    

 

(c)          The
Granting Clauses is amended to change the reference from clauses “(a)-(f)” to clauses “(a)-(h)” and the
reference from clauses “(a)-(h)” to clauses “(a)-(i)”.

 

(d)          Section
1.1 is amended to add the following three new definitions:

 

“Permitted REO Equity
Interest”: Equity interests in any Permitted REO Subsidiary.

 

“Permitted REO Subsidiary”: 
A wholly-owned subsidiary of the Issuer, generally formed for the purpose of holding and operating REO Property and for any other
necessary or desirable activities in connection therewith.

 

“REO Property”:
With respect to any Loan (including without limitation, any Mezzanine Loan), any and all right, title or interest in any assets
acquired through foreclosure, acceptance of a deed-in-lieu of foreclosure, bankruptcy or similar insolvency proceeding or otherwise
in accordance with applicable law or by enforcement of any guarantees related to such Loan, in each case in connection with the
default or imminent default of such Loan (or the underlying commercial mortgage loan or mezzanine loan), including without limitation,
real property and improvements thereon, personal property included therein or incidental thereto or equity, partnership, membership
or beneficial ownership interests in the related borrower or other Person constituting collateral for such Loan.

 

(e)          The
definition of “Company Administrative Expenses” in Section 1.1 is hereby amended by adding the following immediately
after “and any amounts due in respect of the listing of any Notes on the Irish Stock Exchange” in clause (xii) of such
definition:

 

“and any
fees, costs and expenses of, or relating to, a Permitted REO Subsidiary (including relating to the acquisition, transfer or disposition
of a Permitted REO Equity Interest)”.

 

(f)          Section
7.4(c)(ii) is amended to read as follows: “the Issuer shall not have any subsidiaries other than Permitted REO Subsidiaries,
and”.

 

(g)          Section
1.1 is amended by replacing the definition of “Specified Type” with the following definition:

 

“Specified
Type”: Each of a Loan, CMBS Security, CRE CDO Security, REIT Debt Security, Preferred Equity Security and any Permitted
REO Equity Interest.

 

(h)          New
Section 7.20 is inserted after the end of Section 7.19 to read in full as follows:

 

    	- 4 -

    	 

    

 

Section 7.20.              Permitted
REO Subsidiaries.

 

(a)         The Issuer
has entered into or will enter into certain limited liability company agreements and limited partnership agreements attached hereto
as Exhibit A pursuant to certain assignment and assumption or transfer agreements on or about the date hereof in connection
with the acquisition of the Permitted REO Subsidiaries identified on Schedule A hereto.  The Issuer may from time to
time, as directed by the Collateral Manager, form one or more Permitted REO Subsidiaries by entering into one or more limited liability
company agreements or limited partnership agreements subject to the following criteria and requirements:

 

(1) the Issuer
shall only form a Permitted REO Subsidiary for the purpose of holding, operating, realizing and/or disposing of any REO Property
in connection with a foreclosure, workout or restructuring and for any other necessary or desirable activities in connection therewith;

 

(2)         as
long as any Notes are Outstanding, the Issuer shall not sell, transfer, or otherwise dispose of its interests in any Permitted
REO Subsidiary unless the assets constituting any REO Property (or the proceeds thereof) in such Permitted REO Subsidiary have
been distributed to the Issuer or have been sold, transferred or otherwise disposed of;

 

(3)         as
long as a Permitted REO Subsidiary has not ceased to be owned by the Issuer in accordance with clause (2) above, the Issuer shall
adhere to such procedures as are specified in such Permitted REO Subsidiary's organizational documents for maintaining its existence;

 

(4)         in
the event that a Permitted REO Subsidiary owns any asset upon the Stated Maturity or other latest permitted maturity under this
Indenture of any Notes, the Issuer shall dissolve such Permitted REO Subsidiary and liquidate its assets in accordance with the
applicable terms of the Permitted REO Subsidiary's organizational documents at the direction of the Collateral Manager and promptly
deliver the proceeds thereof to the Trustee for deposit into the Payment Account and distribution in accordance with Section 11.1;

 

(5) each Permitted
REO Subsidiary shall agree to be subject to and bound by each obligation or covenant of the Issuer under any Transaction Document
to which the Issuer is a party or by which the Issuer is bound with the same effect as if such Permitted REO Subsidiary had been
named as the Issuer thereunder;

 

(6) each Permitted
REO Subsidiary shall agree not to cause the Issuer to default in the performance of, or breach, any covenant, representation or
warranty of the Issuer under any Transaction Document to which the Issuer is a party or by which the Issuer is bound;

 

    	- 5 -

    	 

    

 

(7) each Permitted
REO Subsidiary shall grant all right, title and interest in, to and under any REO Property held by the related Permitted REO Subsidiary
to the Trustee, for the benefit and security of the Secured Parties;

 

(8) subject
to applicable law, the organizational documents for each Permitted REO Subsidiary shall require the related Permitted REO Subsidiary
to promptly distribute 100% of any distributions on, and proceeds of, any REO Property held by such Permitted REO Subsidiary, net
of any taxes, fees or assessments, to the Issuer as holder of the equity interest in such Permitted REO Subsidiary; and

 

(9) the organizational
documents for each Permitted REO Subsidiary shall require that the related Permitted REO Subsidiary have, at all times, at least
one independent director duly appointed to, and serving on, its board of directors or have a special member whose vote will be
required on specified separateness matters.

 

(b)          With
respect to any REO Property held by a Permitted REO Subsidiary for reporting purposes by the Trustee for characterization of proceeds
as either Interest Proceeds or Principal Proceeds and for purposes of the Collateral Quality Tests or Par Value Coverage Tests,
the Issuer will be deemed to directly own any REO Property held by a Permitted REO Subsidiary rather than the related Permitted
REO Equity Interest; provided that, for the avoidance of doubt, any distributions of Cash by the Permitted REO Subsidiary
to the Issuer shall be categorized as either Interest Proceeds or Principal Proceeds in accordance with the provisions of this
Indenture governing Cash received by the Issuer in respect of a Defaulted Security. With respect to any Permitted REO Subsidiary,
the parties hereto agree that any reports prepared by the Trustee with respect to any Permitted REO Equity Interest shall refer
to any related REO Property held by such Permitted REO Subsidiary instead of the related Permitted REO Equity Interests.

 

(c)          The
Issuer shall not, without the affirmative vote or written consent of 100% of its directors, exercise any voting rights with respect
to any Permitted REO Equity Interests seeking (i) any institution of any action to have such Permitted REO Subsidiary adjudicated
as bankrupt or insolvent, any consent to the institution of bankruptcy or insolvency proceedings against it, any request or consent
to the entry of any order for relief or the appointment of a receiver, liquidator, assignee, trustee, sequestrator or other similar
official for it or for any substantial part of its property, any liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief
of debtors, any making of any general assignment for the benefit of creditors, or any admission in writing that it is unable to
pay its debts generally as they become due or (ii) to take any corporate action in furtherance of any action set forth in this
Section 7.20. Each of the Co-Issuer and the Trustee agrees that it shall not seek, or join in, the institution of any action or
proceeding to have a Permitted REO Subsidiary adjudicated as bankrupt or insolvent.

 

    	- 6 -

    	 

    

 

(d)          Upon
each future formation of a Permitted REO Subsidiary, prompt written notice thereof shall be provided by the Issuer to each Rating
Agency.

 

SECTION 2. Effective
Date. The effective date of this Supplemental Indenture shall be the date first written above.

 

SECTION 3. Reference
to “Indenture”; Effect of this Supplemental Indenture. Pursuant to Section 8.4, upon the effectiveness of this
Supplemental Indenture, the Current Indenture shall be modified in accordance with this Supplemental Indenture, and this Supplemental
Indenture shall form a part of the Current Indenture for all purposes; and every Holder of Securities theretofore and thereafter
authenticated and delivered under the Current Indenture and each Hedge Counterparty shall be bound thereby. All references in the
Indenture and the Securities to the “Indenture” (including correlative references such as “hereof”) shall
be deemed to refer to the Current Indenture as supplemented and amended by this Supplemental Indenture. Except as otherwise specified
in this Supplemental Indenture, the Current Indenture shall remain in all respects unchanged and in full force and effect.

 

SECTION 4. Counterparts.
This Supplemental Indenture may be executed by the parties hereto in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

SECTION 5. Governing
Law. THIS SUPPLEMENTAL INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE
TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

 

SECTION 6. Execution,
Delivery and Validity. Each of the Issuer, the Co-Issuer and the Advancing Agent represents and warrants to the Trustee that
this Supplemental Indenture has been duly and validly executed and delivered by such Person and constitutes its legal, valid and
binding obligation, enforceable against such Person in accordance with its terms. The Trustee accepts the amendment to the Current
Indenture as set forth in this Supplemental Indenture and agrees to perform the duties of the Trustee upon the terms and conditions
set forth herein and in the Current Indenture set forth therein. Without limiting the generality of the foregoing, the Trustee
assumes no responsibility for the correctness of the recitals contained herein, which shall be taken as the statements of the Co-Issuers.
In entering into the Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of this Indenture
relating to the conduct of or affecting the liability of or affording protection to the Trustee, including but not limited to the
provisions of Sections 6.1 and 6.3.

 

SECTION 7. Successors
and Assigns. All covenants and agreements in this Supplemental Indenture by the Issuer and Co-Issuer shall bind their respective
successors and assigns, whether so expressed or not.

 

[remainder of this page
intentionally left blank]

 

    	- 7 -

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Supplemental Indenture to be executed as of the date first written above.

 

	 	Executed as a Deed
	 	 
	 	GRAMERCY REAL ESTATE CDO 2006-1,

LTD., as Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	In the presence of:
	 	 
	 	Witness:	 
	 	 	 
	 	 	Name:
	 	 	Occupation:
	 	 	Title: 
	 	 
	 	GRAMERCY REAL ESTATE CDO 2006-1

LLC, as Co-Issuer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	WELLS FARGO BANK, NATIONAL

ASSOCIATION, as Trustee
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

	 	CWCAPITAL INVESTMENTS LLC,
	 	as Advancing Agent
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

Exhibit A

 

Limited Liability Company
Agreements and Limited Partnership Agreements

 

    	 

    	 

    

 

Schedule A

 

Permitted REO Subsidiaries

 

[To come]

 

    	 

    	 

    

 

 

 

FIRST SUPPLEMENTAL INDENTURE
dated as of [●], 2013 (this “Supplemental Indenture”) among GRAMERCY REAL ESTATE CDO 2007-1, LTD., a Cayman Islands
exempted company with limited liability (together with its permitted successors and assigns, the “Issuer”), GRAMERCY
REAL ESTATE CDO 2007-1 LLC, a limited liability company formed under the laws of
Delaware (together with its permitted successors and assigns, the “Co-Issuer” and, together with the Issuer, the “Co-Issuers”),
WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as trustee, paying agent, calculation agent, transfer agent,
custodial securities intermediary, backup advancing agent and notes registrar under the Current Indenture referred to below (together
with its permitted successors and assigns in the trusts under the Current Indenture, the “Trustee”), and CWCAPITAL
INVESTMENTS LLC, a Massachusetts limited liability company, as successor advancing agent to GKK Liquidity LLC (together with its
permitted successors and assigns in the trusts under the Current Indenture, the “Advancing Agent”), to the Indenture
dated as of August 8, 2007 among the Issuer, the Co-Issuer, the Trustee and GKK Liquidity LLC, as the advancing agent (the “Current
Indenture”). For all purposes of this Supplemental Indenture, all capitalized terms used herein without definition shall
have the respective meanings set forth or referred to in the Current Indenture. Except as otherwise specified herein, each reference
herein to a “Section” is to such Section of the Current Indenture.

 

RECITALS

 

The Co-Issuers, the Trustee
and the Advancing Agent are parties to the Current Indenture.

 

Pursuant to the first
paragraph of Section 8.2, except with respect to certain enumerated modifications, with the written consent of the Holders of not
less than a Majority in Aggregate Outstanding Amount (excluding any Collateral Manager Securities) of the Notes of each class materially
and adversely affected thereby, all of the Holders of Preferred Shares if materially and adversely affected thereby and the Controlling
Class (but only for so long as the Class A-1 Notes and/or the Class A-2 Notes are the Controlling Class), by Act of said Securityholders
delivered to the Trustee and the Co-Issuers and subject to satisfaction of the Rating Agency Condition, the Trustee and the Co-Issuers
may enter into one or more indentures supplemental to the Current Indenture to add any provisions to, or change in any manner or
eliminate any of the provisions of, the Current Indenture or modify in any manner the rights of the Holders of the Notes of such
Class or the Preferred Shares, as the case may be, under the Current Indenture.

 

Pursuant to Section 8.2,
if any Class of Notes is Outstanding and rated by a Rating Agency, the Trustee shall not enter into any supplemental indenture
if, as a result of such supplemental indenture, such Rating Agency would cause the rating of any such Notes to be immediately reduced
or withdrawn. At the cost of the Issuer, for so long as any Class of Notes shall remain Outstanding and is rated by a Rating Agency,
the Trustee shall provide to such Rating Agency a copy of any proposed supplemental indenture at least 15 days prior to the
execution thereof by the Trustee, and, for so long as such Notes are Outstanding and so rated, request written confirmation that
such Rating Agency will not, as a result of such supplemental indenture, cause the rating of any such Class of Notes to be reduced
or withdrawn.

 

    	 

    	 

    

 

Pursuant to Section 8.6,
notwithstanding anything in Article 8 to the contrary, (a) so long as the Class A-1 Notes and/or the Class A-2 Notes or the Class
A-2 Note Insurer, as applicable, are the Controlling Class, the Issuer, the Co-Issuer and the Trustee shall not enter into any
supplemental indenture without obtaining the consent of the Holders of a Majority of the Controlling Class (such consent not to
be unreasonably withheld); provided that, if the Holders of the Controlling Class or the Class A-2 Note Insurer, as applicable,
do not object to such supplemental indenture within 15 Business Days after notice is given, such Holders shall be deemed to have
consented to such supplemental indenture; and (b) the Issuer shall not enter into any supplemental indenture without the consent
of each Hedge Counterparty (such consent not to be unreasonably withheld), and each Hedge Counterparty shall not be bound by any
supplemental indenture unless such Hedge Counterparty shall have given its prior written consent or shall have failed to respond
within 15 Business Days after the Issuer or the Trustee has provided it with prior written notice thereof.

 

The Co-Issuers wish to
enter into this Supplemental Indenture in order to permit the Issuer to have one or more special purpose subsidiaries solely for
the purpose of holding title to any property obtained in connection with any foreclosure or other similar proceeding on, or any
transfer in lieu thereof of, any property securing any Collateral Debt Security, or by transfer of any property held by any Person
on behalf of the Issuer which previously secured any Collateral Debt Security whether or not then outstanding.

 

In connection with this
Supplemental Indenture, the following events have occurred:

 

(i)           In
connection with the first paragraph of Section 8.2, the Trustee has given fifteen (15) Business Days’ notice of this Supplemental
Indenture (along with a description of the substance of such supplement provided by GKK Manager LLC in its capacity as the prior
collateral manager (“GKKM”)) to the Holders of each Class of Notes and the Holders of the Preferred Shares and
the Trustee has not received notice by the Holders of a Majority in Aggregate Outstanding Amount (excluding any Collateral Manager
Securities) of the Notes of any Class or the Holders of Preferred Shares that such Holders would be materially and adversely affected
by this Supplemental Indenture.

 

(ii)          In
connection with the third paragraph of Section 8.2, the Trustee, at the cost of the Issuer and prior to the execution of this Supplemental
Indenture, has provided to each of the Rating Agencies a copy of this Supplemental Indenture in proposed form.  In connection
with the execution of this Supplemental Indenture, one or more of the Rating Agencies have consented to, accepted or otherwise
agreed to a shorter notice period.

 

    	- 2 -

    	 

    

 

(iii)         As
required by Section 8.2, the Trustee has received confirmation in writing from each of S&P, Moody’s and Fitch that the
current ratings on the Notes will not be immediately reduced, qualified or withdrawn as a result of this Supplemental Indenture
and, as a result, the Rating Agency Condition and the condition of Section 8.2 with respect to S&P, Moody’s and Fitch
has been satisfied with respect to this Supplemental Indenture.

 

(iv)         As
provided in Section 8.3, the Collateral Manager has received written notice of this Supplemental Indenture prior to the execution
and delivery of this Supplemental Indenture, and has consented to, accepted or otherwise agreed to a shorter notice period. In
connection with Section 8.3, the Trustee and the Issuer have received the written consent of the Collateral Manager to this Supplemental
Indenture.

 

(v)          Pursuant
to Section 8.3, the Trustee has received an Opinion of Counsel of Clifford Chance US LLP regarding this Supplemental Indenture,
which Opinion of Counsel is subject to the assumptions, limitations, qualifications and exceptions set forth therein.

 

(vi)         The
Trustee has received an Opinion of Counsel from a nationally recognized U.S. tax counsel experienced in such matters, to the effect
that this Supplemental Indenture will not cause the Issuer to fail to be treated as a Qualified REIT Subsidiary or otherwise be
treated as a foreign corporation subject to U.S. federal income tax on a net income tax basis, which Opinion of Counsel is subject
to the assumptions, limitations, qualifications and exceptions set forth therein.

 

(vii)        In
connection with the first paragraph of Section 8.6, the Trustee has given fifteen (15) Business Days’ notice of this Supplemental
Indenture (along with a description of the substance of such supplement provided by GKKM) to the Holders of the Controlling Class
and the Trustee has either received the written consent of the Holders of a Majority of the Controlling Class, or has not received
notice of an objection to this Supplemental Indenture by the Holders of the Controlling Class, including the Class A-2 Note Insurer.

 

(viii)       In
connection with the second paragraph of Section 8.6, the Trustee has given fifteen (15) Business Days’ notice of this Supplemental
Indenture (along with a description of the substance of such supplement provided by GKKM) to the Hedge Counterparty and the Trustee
has either received the written consent of the Hedge Counterparty, or has not received notice of an objection to this Supplemental
Indenture by the Hedge Counterparty.

 

Accordingly, in consideration
of the premises contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

    	- 3 -

    	 

    

 

SECTION 1. Amendments.
The Current Indenture is hereby amended as follows:

 

(a)          The
Granting Clauses is amended to add a new clause (f) which shall read “equity interests in any Permitted REO Subsidiary”.

 

(b)          The
Granting Clauses is amended to change current clauses (f) and (g), and references thereto, to clauses (g) and (h), respectively.

 

(c)          The
Granting Clauses is amended to change the reference from clauses “(a)-(f)” to clauses “(a)-(g)” and the
reference from clauses “(a)-(g)” to clauses “(a)-(h)”.

 

(d)          Section
1.1 is amended to add the following three new definitions:

“Permitted REO Equity
Interest”: Equity interests in any Permitted REO Subsidiary.

 

“Permitted REO Subsidiary”: 
A wholly-owned subsidiary of the Issuer, generally formed for the purpose of holding and operating REO Property and for any other
necessary or desirable activities in connection therewith.

 

“REO Property”:
With respect to any Loan (including without limitation, any Mezzanine Loan), any and all right, title or interest in any assets
acquired through foreclosure, acceptance of a deed-in-lieu of foreclosure, bankruptcy or similar insolvency proceeding or otherwise
in accordance with applicable law or by enforcement of any guarantees related to such Loan, in each case in connection with the
default or imminent default of such Loan (or the underlying commercial mortgage loan or mezzanine loan), including without limitation,
real property and improvements thereon, personal property included therein or incidental thereto or equity, partnership, membership
or beneficial ownership interests in the related borrower or other Person constituting collateral for such Loan.

 

(e)          The
definition of “Company Administrative Expenses” in Section 1.1 is hereby amended by adding the following immediately
after “and any amounts due in respect of the listing of any Notes on the Irish Stock Exchange” in clause (xii) of such
definition:

 

“and any
fees, costs and expenses of, or relating to, a Permitted REO Subsidiary (including relating to the acquisition, transfer or disposition
of a Permitted REO Equity Interest)”.

 

(f)          Section
7.4(c)(ii) is amended to read as follows: “the Issuer shall not have any subsidiaries other than Permitted REO Subsidiaries,
and”.

 

(g)          Section
1.1 is amended by replacing the definition of “Specified Type” with the following definition:

 

    	- 4 -

    	 

    

 

“Specified
Type”: Each of a Loan, CMBS Security, Preferred Equity Security and any Permitted REO Equity Interest.

 

(h)          New
Section 7.20 is inserted after the end of Section 7.19 to read in full as follows:

 

Section 7.20.          Permitted
REO Subsidiaries.

 

(a)          The
Issuer may from time to time, as directed by the Collateral Manager, form one or more Permitted REO Subsidiaries by entering into
one or more limited liability company agreements or limited partnership agreements subject to the following criteria and requirements:

 

(1)         the Issuer
shall only form a Permitted REO Subsidiary for the purpose of holding, operating, realizing and/or disposing of any REO Property
in connection with a foreclosure, workout or restructuring and for any other necessary or desirable activities in connection therewith;

 

(2)         as
long as any Notes are Outstanding, the Issuer shall not sell, transfer, or otherwise dispose of its interests in any Permitted
REO Subsidiary unless the assets constituting any REO Property (or the proceeds thereof) in such Permitted REO Subsidiary have
been distributed to the Issuer or have been sold, transferred or otherwise disposed of;

 

(3)         as
long as a Permitted REO Subsidiary has not ceased to be owned by the Issuer in accordance with clause (2) above, the Issuer shall
adhere to such procedures as are specified in such Permitted REO Subsidiary's organizational documents for maintaining its existence;

 

(4)         in
the event that a Permitted REO Subsidiary owns any asset upon the Stated Maturity or other latest permitted maturity under this
Indenture of any Notes, the Issuer shall dissolve such Permitted REO Subsidiary and liquidate its assets in accordance with the
applicable terms of the Permitted REO Subsidiary's organizational documents at the direction of the Collateral Manager and promptly
deliver the proceeds thereof to the Trustee for deposit into the Payment Account and distribution in accordance with Section 11.1;

 

(5)         each Permitted
REO Subsidiary shall agree to be subject to and bound by each obligation or covenant of the Issuer under any Transaction Document
to which the Issuer is a party or by which the Issuer is bound with the same effect as if such Permitted REO Subsidiary had been
named as the Issuer thereunder;

 

(6)         each Permitted
REO Subsidiary shall agree not to cause the Issuer to default in the performance of, or breach, any covenant, representation or
warranty of the Issuer under any Transaction Document to which the Issuer is a party or by which the Issuer is bound;

 

    	- 5 -

    	 

    

 

(7)         each Permitted
REO Subsidiary shall grant all right, title and interest in, to and under any REO Property held by the related Permitted REO Subsidiary
to the Trustee, for the benefit and security of the Secured Parties;

 

(8)         subject
to applicable law, the organizational documents for each Permitted REO Subsidiary shall require the related Permitted REO Subsidiary
to promptly distribute 100% of any distributions on, and proceeds of, any REO Property held by such Permitted REO Subsidiary, net
of any taxes, fees or assessments, to the Issuer as holder of the equity interest in such Permitted REO Subsidiary; and

 

(9)         the organizational
documents for each Permitted REO Subsidiary shall require that the related Permitted REO Subsidiary have, at all times, at least
one independent director duly appointed to, and serving on, its board of directors or have a special member whose vote will be
required on specified separateness matters.

 

(b)          With
respect to any REO Property held by a Permitted REO Subsidiary for reporting purposes by the Trustee for characterization of proceeds
as either Interest Proceeds or Principal Proceeds and for purposes of the Collateral Quality Tests or Par Value Coverage Tests,
the Issuer will be deemed to directly own any REO Property held by a Permitted REO Subsidiary rather than the related Permitted
REO Equity Interest; provided that, for the avoidance of doubt, any distributions of Cash by the Permitted REO Subsidiary
to the Issuer shall be categorized as either Interest Proceeds or Principal Proceeds in accordance with the provisions of this
Indenture governing Cash received by the Issuer in respect of a Defaulted Security. With respect to any Permitted REO Subsidiary,
the parties hereto agree that any reports prepared by the Trustee with respect to any Permitted REO Equity Interest shall refer
to any related REO Property held by such Permitted REO Subsidiary instead of the related Permitted REO Equity Interests.

 

(c)          The
Issuer shall not, without the affirmative vote or written consent of 100% of its directors, exercise any voting rights with respect
to any Permitted REO Equity Interests seeking (i) any institution of any action to have such Permitted REO Subsidiary adjudicated
as bankrupt or insolvent, any consent to the institution of bankruptcy or insolvency proceedings against it, any request or consent
to the entry of any order for relief or the appointment of a receiver, liquidator, assignee, trustee, sequestrator or other similar
official for it or for any substantial part of its property, any liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief
of debtors, any making of any general assignment for the benefit of creditors, or any admission in writing that it is unable to
pay its debts generally as they become due or (ii) to take any corporate action in furtherance of any action set forth in this
Section 7.20. Each of the Co-Issuer and the Trustee agrees that it shall not seek, or join in, the institution of any action or
proceeding to have a Permitted REO Subsidiary adjudicated as bankrupt or insolvent.

 

    	- 6 -

    	 

    

 

(d)          Upon
each future formation of a Permitted REO Subsidiary, prompt written notice thereof shall be provided by the Issuer to each Rating
Agency.

 

SECTION 2. Effective
Date. The effective date of this Supplemental Indenture shall be the date first written above.

 

SECTION 3. Reference
to “Indenture”; Effect of this Supplemental Indenture. Pursuant to Section 8.4, upon the effectiveness of this
Supplemental Indenture, the Current Indenture shall be modified in accordance with this Supplemental Indenture, and this Supplemental
Indenture shall form a part of the Current Indenture for all purposes; and every Holder of Securities theretofore and thereafter
authenticated and delivered under the Current Indenture and each Hedge Counterparty shall be bound thereby. All references in the
Indenture and the Securities to the “Indenture” (including correlative references such as “hereof”) shall
be deemed to refer to the Current Indenture as supplemented and amended by this Supplemental Indenture. Except as otherwise specified
in this Supplemental Indenture, the Current Indenture shall remain in all respects unchanged and in full force and effect.

 

SECTION 4. Counterparts.
This Supplemental Indenture may be executed by the parties hereto in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

SECTION 5. Governing
Law. THIS SUPPLEMENTAL INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE
TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

 

SECTION 6. Execution,
Delivery and Validity. Each of the Issuer, the Co-Issuer and the Advancing Agent represents and warrants to the Trustee that
this Supplemental Indenture has been duly and validly executed and delivered by such Person and constitutes its legal, valid and
binding obligation, enforceable against such Person in accordance with its terms. The Trustee accepts the amendment to the Current
Indenture as set forth in this Supplemental Indenture and agrees to perform the duties of the Trustee upon the terms and conditions
set forth herein and in the Current Indenture set forth therein. Without limiting the generality of the foregoing, the Trustee
assumes no responsibility for the correctness of the recitals contained herein, which shall be taken as the statements of the Co-Issuers.
In entering into this Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of the Indenture
relating to the conduct of or affecting the liability of or affording protection to the Trustee, including but not limited to the
provisions of Sections 6.1 and 6.3.

 

    	- 7 -

    	 

    

 

SECTION 7. Successors
and Assigns. All covenants and agreements in this Supplemental Indenture by the Issuer and Co-Issuer shall bind their respective
successors and assigns, whether so expressed or not.

 

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IN WITNESS WHEREOF, the
parties hereto have caused this Supplemental Indenture to be executed as of the date first written above.

 

	 	Executed as a Deed
	 	 	 
	 	GRAMERCY REAL ESTATE CDO 2007-1, 

LTD., as Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	In the presence of:
	 	 	 
	 	Witness:	 
	 	 	Name:
	 	 	Occupation:
	 	 	 
	 	GRAMERCY REAL ESTATE CDO 2007-1 

LLC, as Co-Issuer
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	WELLS FARGO BANK, NATIONAL 

ASSOCIATION, as Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    
 

	 	CWCAPITAL INVESTMENTS LLC,
	 	as Advancing Agent
	 	 	 
	 	By:  	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

Exhibit N

 

Knowledge

 

	Sellers	Officers
	Each of GIT, GIT II, GKKM, GLS and GKKL	
        Michael Kavourias

         

        Jerry Hirschkorn

         

        Jared Marcus

         

        Bryce Webster

         

        Bob Wirth

         

	Purchaser	 
	CWCapital Investments LLC	
        Charles Spetka

         

        Jill Hyde

         

        Daniel Warcholak</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PURCHASE AND SALE AGREEMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">THIS PURCHASE AND SALE
AGREEMENT (&ldquo;<U>Agreement</U>&rdquo;) is made and entered into as of this 1st day of November, 2012 (the &ldquo;<U>Effective
Date</U>&rdquo;), by and among IP-WINSTON SALEM HEALTH HOLDINGS, LLC a North Carolina limited liability company (&ldquo;<U>Seller</U>&rdquo;)
and CORNERSTONE HEALTHCARE REAL ESTATE FUND, INC., a Maryland corporation, or its assignee (&ldquo;<U>Buyer</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Purchase
and Sale</U>. On the terms and conditions set forth herein, Seller shall sell, assign, transfer, convey and deliver to Buyer and
Buyer shall purchase from Seller its interest in the following, which are hereinafter referred to collectively as the &ldquo;<U>Property</U>&rdquo;:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
improvements located on the Real Property, consisting of one (1) assisted living facility as described in <U>Schedule&nbsp;1(a)</U>
attached hereto (&ldquo;<U>Facility</U>&rdquo;), owned by Seller, and all right, title and interest of Seller in and to the items
described in (a) through (f) herein;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the real estate on which the Facility is situated, together with all tenements, easements, appurtenances, privileges, rights
of way, and other rights incident thereto, all building and improvements and any parking lot to the Facility located thereon situated
in the State of North Carolina (the &ldquo;<U>State</U>&rdquo;), which is described in <U>Exhibit&nbsp;A</U> attached hereto and
made a part hereof by this reference (collectively, the &ldquo;<U>Real Property</U>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the tangible personal property, inventory, equipment, machinery, supplies including drugs and other supplies, spare parts, furniture,
furnishings, warranty claims, contracts, including but not limited to supply contracts, contracts rights, intellectual property,
including but not limited to patents, trade secrets, and all rights and title to the names under which the Facility operate, mailing
lists, customer lists, vendor lists, resident files, books and records owned by the Seller, who may retain copies of same, and
shall have reasonable access to such books and records after the Closing as required for paying taxes and responding to legal inquiry,
as such personal property is described in <U>Schedule&nbsp;1(c)</U> attached hereto (collectively, the &ldquo;<U>Personal Property</U>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
transferable licenses, permits, certifications, assignable guaranties and warranties in favor of Seller, approvals or authorizations
and all assignable intangible property not enumerated herein which is used by the Seller in connection with the Facility, and all
other assets whether tangible or intangible; provided, that Seller shall retain all licenses required to be retained by Seller
in order to operate the current business within the Facility;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
trade names or other names commonly used to identify the Facility and all goodwill associated therewith. The intent of the parties
is to transfer to Buyer only such names and goodwill associated with the Facility itself and not with Seller or any affiliate of
Seller, so as to avoid any interference with the unrelated business activities of Seller; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
telephone numbers used in connection with the operation of the Facility, and to the extent not described above, all goodwill of
Seller associated with the Facility (the items described in clauses (e) and (f) above are collectively referred to as &ldquo;<U>Intangibles</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Excluded
Assets</U>. Seller&rsquo;s cash, investment securities, bank account(s) and accounts receivable, and deposits attributable and
relating to the operation of Seller&rsquo;s Facility, and Seller&rsquo;s corporate minute books and corporate tax returns, partnership
records, and other corporate and partnership records shall be excluded from the Facility sold by Seller to Buyer hereunder as well
as Seller&rsquo;s real property not identified in <U>Schedule&nbsp;1(a)</U> (the &ldquo;<U>Excluded Assets</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Purchase
Price; Deposits</U>. The following shall apply with respect to the Purchase Price of the Property:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
purchase price (the &ldquo;<U>Purchase Price</U>&rdquo;) payable by Buyer to Seller for the Facility is Nine Million Seven Hundred
Thousand and 00/100 Dollars ($9,700,000.00).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Purchase Price as allocated to the Facility by Seller is set forth on <U>Schedule&nbsp;3</U> attached hereto and made a part hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
three (3) business days after this Agreement is fully executed by the parties, Buyer shall deposit the sum of Twenty-Five Thousand
and 00/100 Dollars ($25,000.00) as an earnest money deposit (&ldquo;<U>Initial Deposit</U>&rdquo;) with Chicago Title Insurance
Company at its offices at 200 W. Second Street, Suite 1800, Winston-Salem, North Carolina&nbsp; 27101, Attn: Kit Anderson, (&ldquo;<U>Title
Company</U>&rdquo; or &ldquo;<U>Escrow Agent</U>&rdquo;) and Escrow Agent will deposit it into an interest-bearing account with
the interest for the benefit of Buyer. In addition, if Buyer has not terminated this Agreement on or before the expiration of the
Due Diligence Period (defined below), then Buyer shall deposit with Escrow Agent an additional Twenty-Five Thousand and 00/100
Dollars ($25,000.00) (&ldquo;<U>Additional Deposit</U>&rdquo;) within three (3) business days following the expiration of the Due
Diligence Period (the Initial Deposit and the Additional Deposit are collectively referred to as the &ldquo;<U>Deposits</U>&rdquo;).
Interest earned on the Deposit shall be paid to the party entitled to such amount as provided in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
Closing, the Deposit shall be credited against the Purchase Price and Buyer shall deposit the balance of the Purchase Price in
Cash to the Escrow Agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer
shall not assume or pay, and Seller shall continue to be responsible for, any and all debts, obligations and liabilities of any
kind or nature, fixed or contingent, known or unknown, of Seller not expressly assumed by Buyer in this Agreement. Specifically,
without limiting the foregoing, Buyer shall not assume any obligation, liability, cost, expense, claim, action, suit or proceeding
pending as of the Closing, nor shall Buyer assume or be responsible for any subsequent claim, action, suit or proceeding arising
out of or relating to any such other event occurring, with respect to the manner in which Seller conducted its business at the
Facility, on or prior to the date of the Closing Date. In addition, Buyer shall not assume successor liability obligations to Medicaid,
HMO or any other third party payer programs or be responsible for recoupment&rsquo;s, fines, or penalties required to be paid to
such parties as a result of the operation of the Facility prior to the Closing Date by Seller or Seller&rsquo;s operating entity,
Danby House, LLC (&ldquo;<U>Operator</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing</U>.
The closing of the purchase and sale transactions pursuant to this Agreement (&ldquo;<U>Closing</U>&rdquo;) shall occur on the
date that is thirty (30) days after the expiration of the Due Diligence Period (&ldquo;<U>Closing Date</U>&rdquo;). The Closing
shall take place through Seller&rsquo;s delivery of a special warranty deed and Buyer&rsquo;s delivery of cash or immediately available
funds through an escrow agreement (the &ldquo;<U>Escrow</U>&rdquo;) to be established with the Escrow Agent pursuant to form escrow
instructions which shall be modified to be consistent with the terms and provisions of this Agreement, and which shall be mutually
agreed upon by the parties hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conveyance</U>.
Title to the Facility shall be conveyed to Buyer by a special warranty deed and bill of sale in form agreed to by the parties prior
to the end of the Due Diligence Period, as defined herein. Fee simple indefeasible title to the Real Property and title to the
Personal Property, shall be conveyed from Seller to Buyer or Buyer&rsquo;s nominee in &ldquo;AS-IS, WHERE-IS&rdquo; condition,
free and clear of all liens, charges, easements and encumbrances of any kind, other than:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liens
for real estate taxes or assessments not yet due and payable;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
standard printed exceptions included in the PTR, as defined in <U>Section&nbsp;14(a)</U> herein; unless objected to in writing
by Buyer during the Due Diligence Period;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such
exceptions that appear in the PTR and that are either waived or approved by Buyer in writing pursuant to <U>Section&nbsp;14(b)
</U>herein;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liens
or encumbrances caused by the actions of Buyer but not those caused by the actions of Seller; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Those
matters identified as Permitted Exceptions on the attached <U>Exhibit&nbsp;B</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The items described
in this <U>Section&nbsp;5</U> are sometimes collectively referred to as the &ldquo;<U>Permitted Exceptions</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Buyer&rsquo;s
Due Diligence</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer
shall have sixty (60) days from the Effective Date to complete Buyers Due Diligence (the &ldquo;<U>Due Diligence Period</U>&rdquo;);
provided, however, that if Seller does not deliver the Due Diligence Items in the time frames set forth in Section 10(a)(v) below,
the Due Diligence Period shall be extended on a day-by-day basis for each day of delay in delivery of the Due Diligence Items beyond
the time periods set forth in Section 10(a)(v) below. During the Due Diligence Period, Seller shall permit the officers, employees,
directors, agents, consultants, attorneys, accountants, lenders, appraisers, architects, investors and engineers designated by
Buyer and representatives of Buyer (collectively, the &ldquo;<U>Buyer&rsquo;s Consultants</U>&rdquo;) access to, and entry upon
the Real Property and the Facility to perform its normal and customary due diligence, including, without limitation, the following
(collectively, the &ldquo;<U>Due Diligence Items</U>&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Review
of vendor contracts (&ldquo;<U>Contracts</U>&rdquo;) and leases (&ldquo;<U>Leases</U>&rdquo;) to which the Facility (or the Seller,
on behalf of the Facility) are a party, as set forth on <U>Schedule&nbsp;8.6</U> attached hereto;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conduct
environmental investigations (including a Phase 1 Environmental Audit);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inspection
of the physical structure of the Facility;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Review
of current PTR, as defined in <U>Section&nbsp;14</U> herein, and underlying documents referenced therein;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Review
of ALTA Surveys, as defined in <U>Section&nbsp;14</U> herein, for the Facility;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inspection
of the books and records of the Facility and that portion of the Seller&rsquo;s books and records which pertain to the Facility;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Review
of the Due Diligence Items, as described in <U>Schedule&nbsp;6(a)(vii)</U> attached hereto, to be provided by Seller within five
(5) business days following the Effective Date;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conduct
such other inspections or investigations as Buyer may reasonably require relating to the ownership, operation or maintenance of
the Facility;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Review
of resident files, agreements, and any other documentation regarding the residents of the Facility, which review shall in all events
be subject to all applicable laws, rules and regulations concerning the review of medical records and other types of patient records;
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Review
of files maintained by the State relating to the Facility; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(xi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Review
of all drawings, plans and specifications and all engineering reports for the Facility in the possession of or readily available
to Seller; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(xii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
will furnish copies of all environmental reports, property condition reports, appraisals, title reports and ALTA Surveys (or surveys)
that it currently has in its possession.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(xiii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Review
copies of currently effective written employment manuals or written employment policies and/or procedures have been provided to
or for employees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Notwithstanding the
foregoing provisions of this Subsection, in the event Seller fails to deliver all Due Diligence Items listed in <U>Schedule&nbsp;6(a)(vii)</U>
on or before the time set forth in <U>Subsection&nbsp;(a)(vii)</U> above, then the Due Diligence Period shall be deemed extended
on a day-to-day basis until Seller completes such delivery of the Due Diligence Items to Buyer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer
agrees and acknowledges that: (i) Buyer will not disclose the Due Diligence Items or any other materials received from Seller pursuant
to this Agreement (the &ldquo;<U>Property Information</U>&rdquo;) or any of the provisions, terms or conditions thereof, or any
information disclosed therein or thereby, to any party outside of Buyer&rsquo;s organization, other than Buyer&rsquo;s Consultants
whom shall also not disclose the Property Information to third parties; (ii) the Property Information is delivered to Buyer solely
as an accommodation to Buyer; (iii) Seller has not undertaken any independent investigation as to the truth, accuracy or completeness
of any matters set out in or disclosed by the Property Information; and(iv) except as expressly contained in this Agreement, Seller
has not made and does not make any warranties or representations of any kind or nature regarding the truth, accuracy or completeness
of the information set out in or disclosed by the Property Information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
due diligence activities of Buyer at the Facility shall be scheduled with Seller upon two (2) business days prior notice. Reviews,
inspections and investigations at the Facility shall be conducted by Buyer in such manner so as not to disrupt the operation of
the Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer
may, at its sole cost, obtain third party engineering and physical condition reports and Phase I Environmental Audits covering
the Facility, certified to Buyer, prepared by an engineering and/or environmental consultants acceptable to Buyer; provided, no
inspection by Buyer&rsquo;s Consultants shall involve the taking of samples or other physically invasive procedures (such as a
Phase II environmental audit) without the prior written consent of Seller, which consent shall not be unreasonably withheld or
delayed. Notwithstanding anything to the contrary contained in this Agreement, Buyer shall indemnify, defend (with counsel acceptable
to Seller) and hold Seller and its employees and agents, and each of them, harmless from and against any and all losses, claims,
damages and liabilities, without limitation, attorneys&rsquo; fees incurred in connection therewith) arising out of or resulting
from Buyer&rsquo; or Buyer&rsquo;s Consultant&rsquo;s exercise of its right of inspection as provided for in this <U>Section&nbsp;6</U>;
provided, however, such indemnification shall not extend to matters merely discovered by Buyer and/ or the acts or omissions of
Seller or any third party. The indemnification obligation of Buyer under this <U>Section&nbsp;6</U> shall survive the termination
of this Agreement indefinitely. Following any audit or inspection as provided for herein, Buyer shall return the Real Property
and Facility to the condition in which they existed immediately prior to such audit or inspection.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the results of the foregoing inspections and audits are not acceptable to Buyer in its sole and absolute discretion, Buyer may,
upon notice to Seller given on or before 5:00 p.m. (Pacific Time) on the last day of the Due Diligence Period, terminate this Agreement,
and in such event, neither party shall have any further rights and obligations under this Agreement, except for obligations which
expressly survive the termination of this Agreement. Failure of Buyer to deliver written notice of approval prior to 5:00 p.m.
(Pacific Time) on the last day of the Due Diligence Period shall be deemed to constitute Buyer&rsquo;s disapproval of the matters
described in this <U>Section&nbsp;6(a)</U>. If this Agreement shall be terminated prior to Closing, upon Seller&rsquo;s request,
Buyer shall promptly return or destroy all copies of the Due Diligence Items.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the Due Diligence Period, Buyer shall obtain, at Buyer&rsquo;s election, a third party inspection report with respect to the Facility
(the &ldquo;<U>Inspection Report</U>&rdquo;). If the Inspection Report recommends any critical repairs (the &ldquo;<U>Critical
Repairs</U>&rdquo;) be made to the Facility, Buyer shall provide Seller with written notice of the same prior to the expiration
of the Due Diligence Period, and the Critical Repairs shall be listed on a new <U>Schedule 6(f)</U> to be attached to the Agreement.
Seller shall make all Critical Repairs listed in the Inspection Report to the Facility at least ten (10) business days prior to
the Closing, at Seller&rsquo;s sole cost and expense (not to exceed One Hundred Thousand Dollars ($100,000) (&ldquo;Seller&rsquo;s
Critical Repair Cap&rdquo;)). Buyer shall be responsible for any Critical Repair costs over the Seller&rsquo;s Critical Repair
Cap. Seller shall deliver to Buyer a completion letter or similar notice documenting the completion of the repairs (the &ldquo;<U>Repair
Completion Notice</U>&rdquo;) executed by Seller and Seller&rsquo;s contractor and/or architect who performed and/or supervised
the construction of the repairs. The Critical Repairs shall be constructed in a workmanlike manner and in accordance with all applicable
laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Prorations;
Closing Costs; Possession; Post Closing Assistance</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
will be no prorations at the Closing and Operator, its successors or assigns shall remain responsible for all taxes, costs and
expenses relating to the Facility following the Closing pursuant to the Post Closing Lease (as defined in <U>Section&nbsp;12(a)(v)</U>).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall pay any state, county and local transfer taxes arising out of the transfer of the Real Property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer
shall pay the cost of the standard owner&rsquo;s title insurance policy, as described in this Agreement. Buyer shall also pay the
cost of any lender&rsquo;s policy for Buyer&rsquo;s lender, any title endorsements requested by Buyer and its lender and the cost
of updating or obtaining new Surveys. Seller and Buyer shall equally share the fees of Escrow Agent. All other costs associated
with title and survey matters shall be paid in accordance with Forsyth County (and local) custom and practice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer
and Seller shall each pay their own attorney&rsquo;s fees. Buyer shall pay for all costs of review of the Due Diligence Items and
its additional due diligence inspection costs including, without limitation, the cost of any environmental reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
the Closing Date, Operator shall retain possession of the Facility pursuant to the Post Closing Lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties of Seller</U>. Seller hereby represents and warrants to Buyer that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Legality</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization,
Corporate Powers, Etc</U>. Seller is duly organized, validly existing and in good standing under the laws of the State of North
Carolina. Seller has full power, authority and legal right (A) to execute and deliver, and perform and observe the provisions of
this Agreement and each Transaction Document, as defined herein, to which it is a party, (B) to transfer good, indefeasible title
to the Property to Buyer free and clear of all liens, claims and encumbrances except for Permitted Exceptions (as defined in <U>Section&nbsp;5</U>
hereof), and (C) to carry out the transactions contemplated hereby and by such other instruments to be carried out by such party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Due
Authorization, Etc</U>. This Agreement and the Closing Documents (collectively the &ldquo;<U>Transaction Documents</U>&rdquo;)
have been, and each instrument provided for herein or therein to which Seller is a party will be, when executed and delivered as
contemplated hereby authorized, executed and delivered by Seller and the Transaction Documents constitute, and each such instrument
will constitute, when executed and delivered as contemplated hereby, legal, valid and binding obligations of Seller and enforceable
in accordance with their terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governmental
Approvals</U>. To the best of Seller&rsquo;s knowledge, no consent, approval or other authorization (other than corporate or other
organizational consents which have been obtained), or registration, declaration or filing with, any court or governmental agency
or commission is required for the due execution and delivery of any of the Transaction Documents to which Seller is a party or
for the validity or enforceability thereof against such party other than the recording or filing for recordation of the North Carolina<B>
</B>form Special Warranty Deed (the &ldquo;<U>Deed</U>&rdquo;) which recordings shall be accomplished at Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Other
Rights</U>. No right of first refusal, option or preferential purchase or other similar rights are held by any person with respect
to any portion of the Property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Litigation</U>. Except as set forth on <U>Schedule&nbsp;8(a)(v)</U> attached hereto, neither Seller nor its registered agent for
service of process has been served with summons with respect to any actions or proceedings pending or, to Seller&rsquo;s actual
knowledge, no such actions or proceedings are threatened, against Seller before or by any court, arbitrator, administrative agency
or other governmental authority, which (A) individually or in the aggregate, are expected, in the reasonable judgment of Seller,
to materially and adversely affect Seller&rsquo;s ability to carry out any of the transactions contemplated by any of the Transaction
Documents or (B) otherwise involve any portion of the Property including, without limitation, the Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Conflicts</U>. Neither the execution and delivery of the Transaction Documents to which Seller is a party, compliance with the
provisions thereof, nor the carrying out of the transactions contemplated thereby to be carried out by such party will result in
(A) a breach or violation of (1) any material law or governmental rule or regulation applicable to Seller now in effect, (2) any
provision of any of Seller&rsquo;s organizational documents, (3) any material judgment, settlement agreement, order or decree of
any court, arbitrator, administrative agency or other governmental authority binding upon Seller, or (4) any material agreement
or instrument to which Seller is a party or by which Seller or its respective properties are bound; (B) the acceleration of any
obligations of Seller; or (C) the creation of any lien, claim or encumbrance upon any properties or assets of Seller.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Property</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of the Effective
Date and the Closing Date, except as set forth on <U>Schedule&nbsp;8(b)</U>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
has no actual knowledge of and has not received any notice of outstanding deficiencies or work orders of any authority having jurisdiction
over any portion of the Property;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
has no actual knowledge of and has not received any notice of any claim, requirement or demand of any licensing or certifying agency
supervising or having authority over the Facility to rework or redesign it in any material respect or to provide additional furniture,
fixtures, equipment or inventory so as to conform to or comply with any law which has not been fully satisfied;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
has not received any notice from any governmental authority of any material violation of any law applicable to any portion of the
Real Property or to the Facility;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Condemnation</U>.
There is no pending or, to the actual knowledge of Seller, threatened condemnation or similar proceeding or assessment affecting
the Real Property, nor, to the actual knowledge of Seller, is any such proceeding or assessment contemplated by any governmental
authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Hazardous
Substances</U>. Except as disclosed on <U>Schedule&nbsp;8(d)</U>, which includes a list of all environmental reports provided by
Seller to Buyer in connection with this Agreement (the &ldquo;<U>Seller Environmental Reports</U>&rdquo;), to Seller&rsquo;s actual
knowledge, there has been no production, storage, manufacture, voluntary or involuntary transmission, use, generation, treatment,
handling, transport, release, dumping, discharge, spillage, leakage or disposal at, on, in, under or about the Real Property of
any Hazardous Substances by Seller, or any affiliate or agent thereof, except in strict compliance with all applicable Laws. To
Seller&rsquo;s actual knowledge and except as disclosed on Schedule 8(d), there are no Hazardous Substances at, on, in, under or
about the Real Property in violation of any Law, and to Seller&rsquo;s actual knowledge, there is no proceeding or inquiry by any
federal, state or local governmental agency with respect thereto. Buyer and Seller acknowledge that a portion of the property is
encumbered by an access easement of public record (the &ldquo;<U>Access Easement</U>&rdquo;), and Seller does not have exclusive
control and/or use over such area, and therefore Seller makes no representation or warranty regarding Hazardous Substances on or
under the Access Easement, provided, however, Seller represents and warrants that Seller has not produced, stored, used, generated,
released, spilled or disposed of any Hazardous Substances on or under the Access Easement. For purposes of this Agreement, &ldquo;<U>Hazardous
Substances</U>&rdquo; shall mean any hazardous or toxic substances, materials or wastes, including, without limitation, those substances,
materials and wastes listed in the United States Department of Transportation Table (49 CFR 172.1 01) or by the Environmental Protection
Agency as hazardous substances (40 CFR Part 302 and amendments thereto) or such substances, materials and wastes which are or become
regulated under any applicable local, state or federal law (collectively, &ldquo;<U>Laws</U>&rdquo;), including, without limitation,
any material, waste or substance which is (i)&nbsp;a hazardous waste as defined in the Resource Conservation and Recovery Act of
1976, as amended (42 U.S.C. &sect; 6901 et seq.); (ii) a pollutant or contaminant or hazardous substance as defined in the Comprehensive
Environmental Response. Compensation and Liability Act of 1980, as amended (42 U.S.C. &sect; 9601 et seq.); (iii) a hazardous substance
pursuant to &sect; 311 of the Clean Water Act (33 U.S.C. &sect; 1251, et seq., 33 U.S.C. &sect; 1321) or otherwise listed pursuant
to &sect; 307 of the Clean Water Act (33 U.S.C. &sect; 1317); (iv) a hazardous waste pursuant to &sect; 1004 of the Resource Conservation
and Recovery Act (42 U.S.C. &sect; 6901 et seq.); (v) polychlorinated biphenyls (PCBs) as defined in the Federal Toxic Substance
Control Act, as amended (15 U.S.C. &sect; 2501 et seq.); (vi) hydrocarbons, petroleum and petroleum products; (vii) asbestos; (viii)
formaldehyde or medical or biohazardous waste; (ix) radioactive substances; (x) flammables and explosives; (xi) any state statutory
counterparts to those federal statutes listed herein; or (vii) any other substance, waste or material which could presently or
at any time in the future require remediation at the behest of any governmental agency. Any reference in this definition to Laws
shall include all rules and regulations which have been promulgated with respect to such Laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Brokers</U>.
Neither Seller nor Buyer has dealt with any broker or finder in connection with the transactions contemplated hereby. Each party
represents and warrants to the other party that it has not dealt with any broker, salesman, finder or consultant with respect to
this Agreement or the transactions contemplated hereby. Each party agrees to indemnify, protect, defend, protect and hold the other
party harmless from and against all claims, losses, damages, liabilities, costs, expenses (including reasonable attorneys&rsquo;
fees and disbursements) and charges resulting from such indemnifying party&rsquo;s breach of the foregoing representation. The
provisions of this <U>Section&nbsp;8(e)</U> shall survive the Closing or earlier termination of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Leases
and Contracts</U>. <U>Schedule&nbsp;8(f)</U> is a list of all Leases and Contracts relating to the Facility to which Seller is
a party or by which Seller may be bound. Seller has made or will promptly make available to Buyer true, complete and accurate copies
of all Leases and Contracts including, without limitation, any modifications thereto. All of the Leases and Contracts are in full
force and effect without claim of material default there under, and, except as may be set forth on <U>Schedule&nbsp;8(f)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financial
Statements</U>. <U>Schedule&nbsp;8(g)</U> contains (i) the balance sheets of the Operator for the last three (3) fiscal years ending
prior to the date of this Agreement (audited if available and unaudited to the extent audited statements are not available) and
the unaudited balance sheets for each of the past three (3) fiscal quarters completed prior to the date of this Agreement and (ii)
the related consolidated statements of income, results of operations, changes in members&rsquo; equity and changes in financial
position with respect to each such period as compared with the immediately prior period (collectively, the &ldquo;<U>Financial
Statements</U>&rdquo;). The Financial Statements taken as a whole (A) fairly present the financial condition and results of operation
of the Operators for the periods indicated, (B) are true, accurate, correct and complete in all material respects, and (C) except
as stated in <U>Schedule&nbsp;8(g)</U> (or in the notes to the Financial Statements) have been prepared in accordance with the
Operator&rsquo;s tax basis reporting, as consistently applied. Except as disclosed in <U>Schedule&nbsp;8(g)</U>, or otherwise disclosed
in writing to Buyer, to Seller&rsquo;s actual knowledge neither Seller, as to the Facility, nor the Facility is obligated for or
subject to any material liabilities, contingent or absolute, and whether or not such liabilities would be disclosed in accordance
with tax basis reporting, and <U>Schedule&nbsp;8(g)</U> sets forth all notes payable, other long term indebtedness and, to Seller&rsquo;s
actual knowledge, all other liabilities to which the Facility and the Real Property are or at Closing (and following Closing) will
be subject, other than new indebtedness obtained by Buyer in connection with its purchase of the Property. Seller has received
no notice of default under any such instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interests
in Competitors, Suppliers and Customers</U>. Other than the Operator entities and except as set forth on <U>Schedule&nbsp;8(h)</U>,
or in <U>Schedule&nbsp;1(a)</U> as constituting a part of the Facility, Seller does not have any interest in any property used
in the operation of, or holds an interest in, any competitor, supplier or customer of Seller or the Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Foreign Persons</U>. Neither Seller nor its members is a foreign person within the meaning of Sections 897 or 1445 of the Code,
nor is Seller a U.S. Real Property Holding Company within the meaning of Section&nbsp;897 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Licensure</U>.
As of the date hereof, except as set forth on <U>Schedule&nbsp;8(j)</U> attached hereto, there is no action pending or, to the
actual knowledge of Seller, recommended by the appropriate state agency to revoke, withdraw or suspend any license to operate the
Facility, or certification of the Facility, or any material action of any other type with regard to licensure or certification.
The Facility is operating and functioning as an assisted living and memory care facility without any waivers from a governmental
agency affecting the Facility except as set forth in <U>Schedule&nbsp;8(j)</U>, and is fully licensed for an assisted living and
memory care facility, as applicable, by the State for the number of beds and licensure category set forth in <U>Schedule&nbsp;1(a)</U>
hereto. <U>Schedule&nbsp;8(j)</U> attached hereto contains a complete and accurate list of all life safety code waivers or other
waivers affecting the Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Regulatory
Compliance</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
or the Operator has duly and timely filed all reports and other items required to be filed (collectively, the &ldquo;<U>Reports</U>&rdquo;)
with respect to any cost based or other form of reimbursement program or any other third party payor (including without limitation,
Medicaid, medically indigent assistance, Blue Cross, Blue Shield, any health maintenance, preferred provider, independent practice
or other healthcare related organizations, peer review organizations, or other healthcare providers or payors) (collectively, &ldquo;<U>Payors</U>&rdquo;)
and have timely paid all amounts shown to be due thereon. At the time of filing, to Seller&rsquo;s actual knowledge, each Report
was true, accurate and complete. To Seller&rsquo;s actual knowledge, all rights and obligations of the Facility or Seller under
such Reports are accurately reflected or provided for in the Financial Statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in <U>Schedule&nbsp;8(k)</U> attached hereto, (A) neither Seller nor, to Seller&rsquo;s actual knowledge, the Operator
is delinquent in the payment of any amount due under any of the Reports for the Facility, (B) there are no written or threatened
proposals by any Payors for collection of amounts for which Seller or the Facility could be liable, (D) there are no current or
pending claims, assessments, notice, proposal to assess or audits of Seller or Operator or the Facility with respect to any of
the Reports, and, to Seller&rsquo;s actual knowledge, no such claims, assessments, notices, or proposals to assess or audit are
threatened, and (D) neither Seller nor Operator has executed any presently effective waiver or extension of the statute of limitations
for the collection or assessment of any amount due under or in connection with any of the Reports with respect to the Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in <U>Schedule&nbsp;8(k)</U> attached hereto, neither Seller nor the Operator has received notice of failure to comply
with all applicable Laws, settlement agreements, and other agreements with any state or federal governmental body relating to or
regarding the Facility (including all applicable environmental, health and safety requirements), and Seller or the Operator has
and maintains all permits, licenses, authorizations, registrations, approvals and consents of governmental authorities and all
health facility licenses, accreditations, Medicaid, and other Payor certifications necessary for its activities and business including
the operation of the Facility as currently conducted. Each health facility license, Medicaid and other Payor certifications, Medicaid
provider agreement and other agreements with any Payors is in full force and effect without any waivers of any kind (except as
disclosed in <U>Schedule&nbsp;8(k)</U>) and has not been amended or otherwise modified, rescinded or revoked or assigned nor, to
Seller&rsquo;s actual knowledge, (A) is there any threatened termination, modification, recession, revocation or assignment thereof,
(B) no condition exists nor has any event occurred which, in itself or with the giving of notice, lapse of time or both would result
in the suspension, revocation, termination, impairment, forfeiture, or non-renewal of any governmental consent applicable to Seller
or to the Facility or of any participation or eligibility to participate in any Medicaid, or other Payor program and (C) there
is no claim that any such governmental consent, participation or contract is not in full force and effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Regulatory
Surveys</U>. Seller shall deliver to Buyer, in the manner required pursuant to the terms of this Agreement, complete and accurate
copies of the survey or inspection reports made by any governmental authority with respect to the Facility during the calendar
years 2009, 2010, 2011 and year-to-date 2012. To the best of Seller&rsquo;s knowledge, after diligent investigation, and except
as shown on <U>Schedule&nbsp;8(l)</U>, all exceptions, deficiencies, violations, plans of correction or other indications of lack
of compliance in such reports have been fully corrected and there are no bans or limitations in effect, pending or threatened with
respect to admissions to the Facility nor any licensure curtailments in effect, pending or threatened with respect to the Facility.
Seller shall continue to deliver all such surveys, inspection reports as and when same are received and/or filed as the case may
be prior to the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Licensed
Bed/Current Rate Schedule</U>. As of the Effective Date, <U>Schedule&nbsp;8(m)</U> sets forth (i)&nbsp;the number of licensed beds
and the number of operating beds in the Facility, (ii)&nbsp;the current standard private rates charged by the Facility to all of
its residents, and (iii)&nbsp;the number of beds or units presently occupied in, and the occupancy percentage at, the Facility,
including the current rates charged by the Facility for each such occupied bed or unit. Neither Seller nor any Operator has any
life care arrangement in effect with any current or future resident.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Operations</U>.
The Facility is adequately equipped and the Facility includes sufficient and adequate numbers of furniture, furnishings, equipment,
consumable inventory, and supplies to operate such Facility as each is presently operated by Seller. Personal Property used to
operate Facility and to be conveyed to Buyer is free and clear of liens, security interests, encumbrances, leases and restrictions
of every kind and description, except for Permitted Encumbrances and any liens, security interests and encumbrances to be released
at Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Misstatements, Etc</U>. To the best of Seller&rsquo;s knowledge, neither the representations and warranties of Seller stated in
this Agreement, including the Exhibits and the Schedules attached hereto, nor the Due Diligence Items or any certificate or instrument
furnished or to be furnished to Buyer by Seller in connection with the transactions contemplated hereby, contains or will contain
any untrue or misleading statement of a material fact.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Supplementation
of Schedules; Change in Representations and Warranties</U>. Seller shall have the continuing right and obligation to supplement
and amend the Schedules herein on a regular basis including, without limitation, <U>Schedule&nbsp;8(g)</U>, and Seller&rsquo;s
warranties and representations required hereunder, as necessary or appropriate (i) in order to make any representation or warranty
not misleading due to events, circumstances or the passage of time or (ii) with respect to any matter hereafter arising or discovered
up to and including the Closing Date, but Buyer shall not be deemed to have approved such supplemental Schedules unless Buyer expressly
acknowledges approval of same in writing. In the event Seller amends any such Schedules, or Buyer or Seller gains actual knowledge
prior to the Closing that any representation or warranty made by the other party contained in this <U>Section&nbsp;8</U> is otherwise
untrue or inaccurate, such party shall, within five (5) days after gaining such actual knowledge but in any event prior to the
Closing, provide the other party with written notice of such inaccuracy, whereupon the noticed party shall promptly commence, and
use its best efforts to prosecute to completion, the cure of such matter, to the extent any such matter is curable. If any such
matter is not curable within reason and is material, in Buyer&rsquo;s reasonable business judgment, Buyer shall have the right
to terminate this Agreement upon written notice to Seller within five (5) business days of receipt or delivery of such notice,
as applicable, on the same basis as set forth in <U>Section&nbsp;13(a)</U> if during the Due Diligence Period and in <U>Section&nbsp;13(b)(i)(i)</U>
herein if after expiration of the Due Diligence Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival
of Representations and Warranties; Updates</U>. The representations and warranties of Seller in this Agreement shall not be merged
with the Deeds at the Closing and shall survive the Closing for the period of one (1) year provided such warranties shall be deemed
made as of the date provided; provided, Seller understands and agrees that the Post Closing Lease, shall provide for a lengthier
period of survival with respect to certain matters referenced therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of this
Agreement, the phrase &ldquo;to Seller&rsquo;s actual knowledge&rdquo; or words of similar import shall mean the actual knowledge
of the general partner or President, as applicable, of the entity comprising Seller.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties of Buyer</U>. Buyer hereby warrants and represents to Seller that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization,
Corporate Powers, Etc</U>. Buyer is a limited liability company, validly existing and in good standing under the laws of the State
of Delaware and is duly qualified and in good standing in each other state or jurisdiction in which the nature of its business
requires the same except where a failure to be so qualified does not have a material adverse effect on the business, properties,
condition (financial or otherwise) or operations of that person. Buyer has full power, authority and legal right (i) to execute
and deliver, and perform and observe the provisions of this Agreement and each Transaction Document to which it is a party, and
(ii) to carry out the transactions contemplated hereby and by such other instruments to be carried out by Buyer pursuant to the
Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Due
Authorization, Etc</U>. The Transaction Documents have been, and each instrument provided for herein or therein to which Buyer
is a party will be, when executed and delivered as contemplated hereby, duly authorized, executed and delivered by Buyer and the
Transaction Documents constitute, and each such instrument will constitute, when executed and delivered as contemplated hereby,
legal, valid and binding obligations of the Buyer enforceable in accordance with their terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governmental
Approvals</U>. To Buyer&rsquo;s actual knowledge, no consent, approval or other authorization (other than corporate or other organizational
consents which have been obtained), or registration, declaration or filing with, any court or governmental agency or commission
is required for the due execution and delivery of any of the Transaction Documents to which Buyer is a party or for the validity
or enforceability thereof against such party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Litigation</U>. Except as set forth on <U>Schedule&nbsp;9(a)(iv)</U> attached hereto, neither Buyer nor its registered agent for
service of process has been served with summons with respect to any actions or proceedings pending or, to Buyer&rsquo;s actual
knowledge, no such actions or proceedings are threatened, against Buyer before or by any court, arbitrator, administrative agency
or other governmental authority, which individually or in the aggregate, are expected, in the reasonable judgment of Buyer, to
materially and adversely affect Buyer&rsquo;s ability to carry out any of the transactions contemplated by any of the Transaction
Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Conflicts</U>. Neither the execution and delivery of the Transaction Documents to which Buyer is a party, compliance with the provisions
thereof, nor the carrying out of the transactions contemplated thereby to be carried out by such party will result in (i)&nbsp;a
breach or violation of (A)&nbsp;any material law or governmental rule or regulation applicable to Buyer now in effect, (B)&nbsp;any
provision of any Buyer&rsquo;s organizational documents, (C)&nbsp;any material judgment, settlement agreement, order or decree
of any court, arbitrator, administrative agency or other governmental authority binding upon Buyer, or (D)&nbsp;any material agreement
or instrument to which Buyer is a party or by which Buyer or its respective properties are bound; (ii)&nbsp;the acceleration of
any obligations of Buyer; or (iii)&nbsp;the creation of any lien, claim or encumbrance upon any properties or assets of Buyer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Misstatements, Etc</U>. To the best of Buyer&rsquo;s knowledge, neither the representations and warranties of Buyer stated in this
Agreement, including the Exhibits and the Schedules attached hereto, nor any certificate or instrument furnished or to be furnished
to Seller by Buyer in connection with the transactions contemplated hereby, contains or will contain any untrue or misleading statement
of a material fact.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival
of Representations and Warranties; Updates</U>. The representations and warranties of Buyer in this Agreement shall not be merged
with the Deeds at the Closing and shall survive the Closing for the period of one (1) year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Covenants
of Seller</U>. Seller covenants with respect to the Facility as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Pre-Closing</U>.
Between the date of this Agreement and the Closing Date, except as contemplated by this Agreement or with the prior written consent
of Buyer, which shall not be unreasonably withheld, conditioned or delayed:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall use its best efforts to cause the Operator to operate the Facility diligently, in accordance with the Operator&rsquo;s obligations
under its lease or other arrangement with Seller, and only in the ordinary course of business and consistent with past practice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall use its best efforts to prevent the Operator from making any material change in the operation of the Facility, and shall
prevent the Operator from selling or agreeing to sell any items of machinery, equipment or other assets of the Facility, or otherwise
entering into any agreement affecting the Facility, except in the ordinary course of business;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall use its best efforts to prevent the Operator from entering into any Lease or Contract or commitment affecting the Facility,
except for Leases or Contracts entered into in the ordinary course of business;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
normal business hours and consistent with <U>Section&nbsp;6(c)</U> herein, Seller shall provide Buyer or its designated representative
with access to the Facility upon prior notification and coordination with Seller and the Operator; provided, Buyer shall not materially
interfere with the operation of the Facility. At such times Seller and the Operator shall permit Buyer to inspect the books and
records of the Facility;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
five (5) business days following the execution of this Agreement by the parties, Seller shall deliver to Buyer the due diligence
items described on the Due Diligence List attached hereto as <U>Schedule&nbsp;6(a)(vii)</U> (the &ldquo;<U>Due Diligence Items</U>&rdquo;);
provided, in the event certain Due Diligence Items (&ldquo;<U>Unavailable Items</U>&rdquo;) are not readily accessible to Seller,
Seller may identify the Unavailable Items by written notice to Buyer within such five&nbsp;(5) business day period and shall use
its best efforts to deliver all Unavailable Items to Buyer as promptly as possible, but in no event more than ten (10) business
days following the execution of this Agreement. If Buyer requests additional items not included on <U>Schedule&nbsp;6(a)(vii)</U>,
it will do so by written request delivered by Seller and Seller will use its best efforts to provide such information within five
(5) business days within receipt of the request; and, provided further, Seller shall continue to cause Operator to deliver to Buyer,
following the expiration of the Due Diligence Period, financial reports showing, among other things, the EBITDAR (defined below)
for the Facility for the trailing twelve (12) month annualized operations for any given period. The term &ldquo;<U>EBITDAR</U>&rdquo;
means &ldquo;earnings before interest, taxes, depreciation, amortization and rent and reserves (reserves meaning additions to capital
reserves).&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall use its best efforts to prevent the Operator from moving residents from the Facility, except (a) to any other Facility which
is owned by Seller and constitutes part of the Property as defined herein, (b) for health treatment purposes or otherwise at the
request of the resident, family member or other guardian or (c) upon court order or the request of any governmental authority having
jurisdiction over the Facility;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall use commercially reasonable efforts to cause the Operator to retain the services and goodwill of the employees of the Operator
until the Closing;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall maintain in force, or shall cause the Operator to maintain in force, the existing hazard and liability insurance policies,
or comparable coverage, for the Facility as are in effect as of the date of this Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall, and shall cause the Operator, to file all returns, reports and filings of any kind or nature, including but not limited
to, cost reports referred to in this Agreement, required to be filed by Seller or the Operator on a timely basis and shall timely
pay all taxes or other obligations and liabilities or recoupments which are due and payable with respect to the Facility in the
ordinary course of business with respect to the periods Seller or Operator operated the Facility;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall cause the Operator (a) to maintain all required operating licenses in good standing, (b) to operate the Facility in accordance
with its current business practices and (c) to promptly notify Buyer in writing of any notices of material violations or investigations
received from any applicable governmental authority;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(xi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall use commercially reasonable efforts to cause the Operator to make all customary repairs, maintenance and replacements required
to maintain the Facility in substantially the same condition as on the date of Buyer&rsquo;s inspection thereof, ordinary wear
and tear excepted;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(xii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall promptly notify Buyer in writing of any Material Adverse Change, as defined herein, of which Seller becomes aware in the
condition or prospects of the Facility including, without limitation, sending Buyer copies of all surveys and inspection reports
of all governmental agencies received after the date hereof and prior to Closing, promptly following receipt thereof by the Operator.
For purposes of this Agreement, a &ldquo;<U>Material Adverse Change</U>&rdquo; shall mean: (i) a decrease in the adjusted rolling
twelve (12) month EBITDAR to less than Nine Hundred Seventy Thousand and 00/100 Dollars ($970,000.00), or (ii) loss of licensure,
or (iii) loss of Medicaid participation, or (iv) any adverse action by a governmental agency which, with the passage of time, would
reasonably be expected to materially affect in a negative manner licensure at the Facility, or any adverse action in the Facility
which would reasonably be expected to materially affect in a negative manner such Facility&rsquo;s participation or eligibility
to participate in any Medicaid, or other Payor program, unless appropriate corrective action has been taken by the Operator, in
the ordinary course of business, or (v) failure to settle with the appropriate governmental authority, or to satisfy on or before
the Closing (either directly with such governmental authority or by funds escrowed by Seller for such purposes) all claims for
reimbursements, recoupments, taxes, fines or penalties which may be due to any governmental authority having jurisdiction over
the Facility, or (vi) the occurrence of a title or survey defect occurring after the date of this Agreement which would reasonably
be expected to adversely affect the ability of Buyer to operate the assisted living facility at its respective Facility or to obtain
financing for such Facility, or (vii) the commencement of any third party litigation which interferes with Seller&rsquo;s ability
to close the transactions contemplated by this Agreement, or (viii) any damage, destruction or condemnation affecting the Facility
in which the estimate of damage exceeds $100,000 per Facility and such damage or destruction has not been repaired, or Buyer as
not otherwise waived such condition prior to Closing. In the event of any occurrence described in clause (iv) above, Operator shall
deliver a copy of the Plan of Correction or otherwise notify Buyer in writing of the planned action, and such Plan of Correction
or other corrective action which has been approved by the applicable regulatory agency or agencies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(xiii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
agrees to cause the Operator to remedy any compliance deficiency cited in any written notice from, or in any settlement agreement
or other Plan of Correction or other agreement with, any state governmental body, or in the event of state proceedings against
Operator or the Facility, or receipt by the Operator of such notice prior to the Closing Date, of any condition which would affect
the truth or accuracy of any representations or warranties set forth in this Agreement by Seller; provided, however, in the event
a physical plant deficiency is cited which Seller has insufficient time to remedy before the Closing Date, in accordance with the
approval of the appropriate state agency, then the same shall be deemed remedied when the costs of correcting said deficiency (based
upon reasonable estimates from established vendors selected by Seller and Buyer and approved by Seller and by Buyer, in its sole
and absolute discretion) shall be held back in the Escrow at the Closing and not released to Seller until such deficiency is corrected
by Seller; and, provided further, a non-physical plant deficiency which cannot be remedied prior to the Closing, in accordance
with the approval of the appropriate state agency, will be deemed to be remedied for purposes of this Section if Operator develops
a Plan of Correction addressing the deficiency(ies) and such Plan of Correction is approved by the applicable State agency. Seller
shall use its best efforts to remedy any such deficiency subsequent to the Closing which is to be remedied as a result of a Plan
of Correction filed by Seller or Operator prior to the Closing, and Buyer shall cooperate with such efforts by Seller; provided,
Seller shall bear all costs associated with such remedy. In the event any such Plan of Correction agreed to by Seller and Operator
prior to the Closing is not approved by the applicable State agency subsequent to Closing, Seller shall promptly use its best efforts,
and shall cause Operator to use its best efforts, to amend the Plan of Correction in such a manner that is necessary to obtain
acceptance by the State of the amended Plan of Correction as soon as practicable after submittal. Notwithstanding any other provision
of this Agreement, the obligation of Seller pursuant to this <U>Subsection&nbsp;10(a)(xiii)</U> shall survive the Closing for such
period of time as is necessary to remedy such deficiency.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(xiv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall, at its cost and on or before Closing, obtain releases of financing statements and tax and judgment liens affecting or relating
to the Facility which have been filed or recorded in the State with the Office of the Secretary of State and the appropriate County
Recorder&rsquo;s Office.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(xv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall promptly comply with any notices of violations received relating to the Facility and shall deliver to Buyer a copy of any
such notice received and evidence of compliance with such notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(xvi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall complete the Critical Repairs in accordance with Section 6(f) of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing</U>.
On or before the Closing Date, Seller shall deliver the following documents to Escrow Agent relating to the Facility (&ldquo;<U>Closing
Documents</U>&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One
(1) original executed Deed for the Facility, in recordable form;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two
(2) original executed counterparts of the Post Closing Lease;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two
(2) original executed counterparts of the bill of sale for the Personal Property (&ldquo;<U>Bill of Sale</U>&rdquo;), an assignment
of Seller&rsquo;s interest in the Contracts and Leases (&ldquo;<U>Assignment of Contracts and Leases</U>&rdquo;), and other instruments
of transfer and conveyance in form and substance to be agreed upon prior to the expiration of the Due Diligence Period transferring
and assigning to Buyer the Real Property, Personal Property and the Intangibles to be transferred as provided herein with respect
to the Facility (&ldquo;<U>Instruments of Assignment</U>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One
(1) original of the executed Repair Completion Notice, to the extent not previously delivered to Buyer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One
(1) original executed certificate executed by Seller confirming that Seller&rsquo;s representations and warranties continue to
be true and correct in all material respects, or stating how such representations and warranties are no longer true and correct
(&ldquo;<U>Seller&rsquo;s Confirmation</U>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
contractor&rsquo;s and manufacturer&rsquo;s guaranties and warranties, if any, in Seller&rsquo;s possession relating to the Facility
(collectively, the &ldquo;<U>Warranties</U>&rdquo;), which delivery will be made by leaving such materials at the Facility; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two
(2) original executed counterparts of each of the FIRPTA Certificate, escrow agreements and other documents required by the Title
Company in connection with the transactions contemplated by this Agreement (collectively, the &ldquo;<U>Title Company Documents</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Covenants
of Buyer</U>. Buyer hereby covenants as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Pre-Closing</U>.
Between the date hereof and the Closing Date, except as contemplated by this Agreement or with the consent of Seller, Buyer agrees
that Buyer shall not take any action inconsistent with its obligations under this Agreement or which could hinder or delay the
consummation of the transaction contemplated by this Agreement. Between the date hereof and the Closing Date, Buyer agrees that
Buyer shall not (i) make any commitments to any governmental authority, (ii) enter into any agreement or contract with any governmental
authority or third parties, or (iii) alter, amend, terminate or purport to terminate in any way any governmental approval or permit
affecting the Real Property, Personal Property or Facility, which would be binding upon Seller, any Real Property Owner, the Facility
or Personal Property after any termination of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing</U>.
On or before the Closing Date, Buyer shall deposit the following with Escrow Agent:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Purchase Price in accordance with the requirements of this Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two
(2) original executed counterparts of the Post Closing Lease;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two
(2) original executed counterparts of each of the Instruments of Assignment requiring Buyer&rsquo;s signature;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One
(1) original executed certificate executed by Buyer confirming that Buyer&rsquo;s representations and warranties continue to be
true and correct in all material respects, or stating how such representations and warranties are no longer true and correct (&ldquo;<U>Buyer&rsquo;s
Confirmation</U>&rdquo;); and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two
(2) original executed counterparts of each of the Title Company Documents requiring Buyer&rsquo;s signature.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
to Closing</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
to Buyer&rsquo;s Obligations</U>. All obligations of Buyer under this Agreement are subject to the reasonable satisfaction and
fulfillment, prior to the Closing Date, of each of the following conditions. Anyone or more of such conditions may be waived in
writing by Buyer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Seller&rsquo;s
Representations, Warranties and Covenants</U>.&nbsp;Seller&rsquo;s representations, warranties and covenants contained in this
Agreement or in any certificate or document delivered in connection with this Agreement or the transactions contemplated herein,
shall be true at the date hereof and as of the Closing Date as though such representations, warranties and covenants were then
again made, except to the extent that Buyer has discovered, or Seller has provided Buyer with written notice (the &ldquo;<B>Supplemental
Notice</B>&rdquo;) prior to Closing that Seller has just become aware, that a representation is untrue or inaccurate, and Buyer
nevertheless elects not to terminate this Agreement at the expiration of the Due Diligence Period, or, if the Supplemental Notice
is delivered after the Due Diligence Period, Buyer elects to proceed with closing the transaction despite such inaccuracy, whereupon
Buyer will be deemed to have waived any right of recourse or damages against Seller resulting from such inaccuracy disclosed in
the Supplemental Notice. Upon receipt of a Supplemental Notice from Seller after the expiration of the Due Diligence Period, Buyer
shall have the right to (a) terminate this Agreement upon written notice to Seller within five (5) days after receipt of the Supplemental
Notice, or (b) elect to proceed with closing the transaction as set forth in this Agreement. If Seller provides Buyer with a Supplemental
Notice within ten (10) business days of Closing, then Buyer shall have the right, at its option and upon written notice to Seller,
to extend the Closing Date for up to ten (10) business days in order to analyze and review the issues disclosed in the Supplemental
Notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Seller&rsquo;s
Performance</U>. Seller shall have performed all of its obligations and covenants under this Agreement that are to be performed
prior to or at Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Damage
and Condemnation</U>. Prior to the Closing Date, no portion of the Facility shall have been damaged or destroyed by fire or other
casualty where the estimate of damage to such Facility exceeds 10% of the Purchase Price allocated to such Facility, or proceedings
be commenced or threatened to take or condemn any material part of the Real Property or improvements comprising a Facility by any
public or quasi-public authority under the power of eminent domain. A proceeding shall be deemed to be &ldquo;material&rdquo; if
such condemnation or taking (i) relates to the material taking or closing of any right of access to any Real Property or Facility,
(ii) cause the Real Property or Facility to become non-conforming with then current legal requirements governing such Real Property
or Facility, (iii) results in the loss of parking that is material to the operation of such Facility, or (iv) result in the loss
of value in excess of 10% of the Purchase Price allocated to such Facility, in Buyer&rsquo;s reasonable judgment. If such Facility
shall have been so damaged or destroyed, Seller shall deliver prompt written notice of such condemnation, damage or destruction
to Buyer. In the event Buyer waives this condition, by written notice to Seller within fifteen (15) business days of receipt of
notice of such proceeding, and the Closing occurs, Seller shall assign to Buyer all its right to any insurance proceeds in connection
therewith. If proceedings shall be so commenced or threatened to take or condemn the Real Property or the Facility or portion thereof
prior to Closing, and if Buyer waives this condition and the Closing occurs, Seller shall pay or assign to Buyer all Seller&rsquo;s
right to the proceeds of any condemnation award in connection thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Absence
of Litigation</U>. <U></U>No action or proceeding shall have been instituted,
threatened or, in the reasonable opinion of Buyer, is likely to be instituted before any court or governmental body or authority
the result of which could prevent or make illegal the acquisition by Buyer of the Facility, or the consummation of the transaction
contemplated hereby, or which could materially and adversely affect the Facility or the business or prospects of the Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Form
of Post Closing Lease</U>. Prior to the expiration of the Due Diligence Period, Operator and Buyer shall have agreed upon the form
of the post closing lease (the &ldquo;<U>Post Closing Lease</U>&rdquo;) between Buyer, as landlord, and Operator, as tenant. The
Post Closing Lease shall be in the form attached hereto and incorporated herein by reference as <U>Exhibit D</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Material Adverse Change</U>. No Material Adverse Change shall have occurred in the Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Removal
of Personal Property Liens</U>. Seller shall have removed (or shall have sufficient payoff or other documents to remove such liens
at Closing) all personal property liens which are related to the Facility and the Facility at Closing shall be free and clear of
all liens, claims and encumbrances other than Permitted Exceptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Title
Insurance Policies</U>. Title Company shall be prepared to issue the (i) Owners Title Insurance Policy for the Facility as of the
Closing Date, with coverage in the amount of the allocable portion of the Purchase Price for the Facility, insuring Buyer as owner
of the Facility subject only to the Permitted Exceptions, and (ii) ALTA Title Insurance Policy for each of the Facility as of the
Closing Date, with coverage in the amount of the allocable portion of Buyer&rsquo;s loan from Buyer&rsquo;s lender (&ldquo;<U>Lender</U>&rdquo;),
insuring Lender&rsquo;s lien against the Facility subject only to such exceptions as may be approved by Lender, and with such endorsements
as may be required by Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
to Seller&rsquo;s Obligations</U>. All obligations of Seller under this Agreement are subject to the fulfillment, prior to the
Closing Date, of each of the following conditions. Anyone or more of such conditions may be waived by Seller in writing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Buyer&rsquo;s
Representations, Warranties and Covenants</U>. Buyer&rsquo;s representations, warranties and covenants contained in this Agreement
or in any certificate or document delivered in connection with this Agreement or the transactions contemplated herein shall be
true at the date hereof and as of the Closing Date as though such representations, warranties and covenants were then again made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Buyer&rsquo;s
Performance</U>. Buyer shall have performed its obligations and covenants under this Agreement that are to be performed prior to
or at Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Absence
of Litigation</U>. No action or proceeding shall have been instituted, threatened or, in the reasonable opinion of Seller, is likely
to be instituted before any court or governmental body or authority the result of which could prevent or make illegal the acquisition
by Buyer of the Facility, or the consummation of the transaction contemplated hereby, or which could materially and adversely affect
the Facility or the business or prospects of the Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Actions</U>. There shall be no action pending or recommended by the appropriate state agency to revoke, withdraw or suspend any
license to operate the Facility or the certification of the Facility, or any action of any other type with regard to licensure
or certification or with respect to Medicaid provider billing agreements necessary to operate the Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Execution
of Post Closing Lease and Form of Post Closing Lease</U>. Prior to the expiration of the Due Diligence Period, Operator and Buyer
shall have agreed upon the form of the Post Closing Lease. Further, it shall be a condition to Closing that Operator and Buyer
execute the Post Closing Lease simultaneously with Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination;
Defaults</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination
For Failure of Condition</U>. Either party may terminate this Agreement for non-satisfaction or failure of a condition to the obligation
of either party to consummate the transaction contemplated by this Agreement (including, without limitation, Buyer&rsquo;s election
to disapprove the condition of the title or Surveys pursuant to <U>Section&nbsp;14</U> herein), unless such matter has been satisfied
or waived by the date specified in this Agreement or by the Closing Date (as same may be extended by the parties to allow the parties
to satisfy or waive conditions to close in the manner provided in this Agreement). In the event of such a termination, Escrow Agent
shall promptly return (i) to Buyer, all funds of Buyer in its possession, including the Deposit and all interest accrued thereon,
and (ii) to Seller and Buyer, all documents deposited by them respectively, which are then held by Escrow Agent. Thereafter, neither
party shall have any continuing obligation or liability to the other party except for any such matters that expressly survive the
Closing or termination of this Agreement, as provided herein. The provisions of this <U>Section&nbsp;13(a)</U> are intended to
apply only in the event of a failure of condition, as set forth herein, which is not the result of a default by either party, but
which shall not apply in the event the non-terminating party is in default of its obligations under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination
For Cause</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Agreement is terminated by Seller because Buyer fails to consummate the Closing as a result of a default by Buyer under this
Agreement, Seller&rsquo;s sole and exclusive remedy prior to the Closing Date shall be to terminate this Agreement by giving written
notice of termination to Buyer and Escrow Agent, whereupon (A) Escrow Agent shall promptly release to Seller the Deposit, and all
interest accrued thereon, (B) Escrow Agent shall return to Buyer and Seller all documents deposited by them respectively, which
are then held by Escrow Agent, (C) the parties shall be released and relieved of all obligations to each other under this Agreement,
except for provisions that expressly survive termination as provided herein (including without limitation, indemnification provisions),
(D) Buyer shall return to Seller all documents received by it during the course of its Due Diligence and (E) Buyer shall have no
further right to purchase the Property or legal or equitable claims against Seller (except for any breach by Seller of provisions
that survive termination) and/or the Property. Buyer shall have no liability to Seller under any circumstances for any speculative,
consequential or punitive damages. Without limiting the other provisions of this Agreement, Buyer acknowledges that the provisions
of this Subsection are a material part of the consideration being given to Seller for entering into this Agreement and that Seller
would be unwilling to enter into this Agreement in the absence of the provisions of this Subsection. The provisions of this Subsection
shall survive any termination of this Agreement. With respect to any action by Seller against Buyer or by Buyer against Seller
commenced after the Closing Date, Seller and Buyer expressly waive any right to any speculative, consequential, or punitive damages.
The parties acknowledge and agree that Seller&rsquo;s actual damages as a result of Buyer&rsquo;s default would be difficult or
impossible to ascertain and that the deliveries and payments provided for in this paragraph constitute reasonable compensation
for its actual damages. Seller and Buyer acknowledge that they have read and understand the provisions of this <U>Section&nbsp;13(b)(i)</U>
and by their initials below agree to be bound by its terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 57%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; border-bottom: windowtext 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 30%; border-bottom: windowtext 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in">Seller&rsquo;s Initials</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.125in">Buyer&rsquo;s Initials</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
this Agreement is terminated by Buyer because Seller has defaulted in the performance of its obligations under this Agreement,
Buyer&rsquo;s sole and exclusive remedies prior to the Closing Date shall be either: (A) to terminate this Agreement by giving
written notice of termination to Seller and Escrow Agent and pursue any and all remedies for Buyer&rsquo;s out-of-pocket costs
(including attorneys&rsquo; fees and court costs), attributable to the termination of this Agreement, excluding any speculative
or punitive damages, whereupon (i)&nbsp;Escrow Agent shall promptly return to Buyer the Deposit, and all interest accrued thereon,
and (ii)&nbsp;Escrow Agent shall return to Seller and Buyer all documents deposited by them respectively, which are then held by
Escrow Agent, or (B) to pursue the remedy of specific performance of Seller&rsquo;s obligation to perform its obligations under
this Agreement. Seller shall have no liability to Buyer under any circumstances for any speculative, consequential or punitive
damages. Without limiting the other provisions of this Agreement, Seller acknowledges that the provisions of this Subsection are
a material part of the consideration being given to Buyer for entering into this Agreement and that Buyer would be unwilling to
enter into this Agreement in the absence of the provisions of this Subsection. The provisions of this Subsection shall survive
any termination of this Agreement. With respect to any action by Buyer against Seller or by Seller against Buyer commenced after
the Closing Date, Buyer and Seller expressly waive any right to any speculative, consequential, punitive or special damages including,
without limitation, lost profits. Seller and Buyer acknowledge that they have read and understand the provisions of this <U>Section&nbsp;13.2(b)</U>
and by their initials below agree to be bound by its terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 57%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; border-bottom: windowtext 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 30%; border-bottom: windowtext 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in">Seller&rsquo;s Initials</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.125in">Buyer&rsquo;s Initials</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>General</U>.
In the event a party elects to terminate this Agreement such party shall deliver a notice of termination to the other party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Surveys
and PTR.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer
has previously obtained a preliminary title report (the &ldquo;<U>PTR</U>&rdquo;) covering the Real Property and the Facility dated
prior to the date of this Agreement, together with legible copies of any and all instruments referred to in the PTR as constituting
exceptions to title of the Real Property (the &ldquo;<U>Title Documents</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall have delivered to Buyer a copy of the existing surveys, if any, in Seller&rsquo;s possession for the Facility (&ldquo;<U>Surveys</U>&rdquo;)
in accordance with Section&nbsp;10(a)(v) herein. Buyer shall be responsible for obtaining an update of the Surveys or new Surveys,
at Buyer&rsquo;s sole cost (&ldquo;<U>New Surveys</U>&rdquo;). On or before ten (10) business days prior to the expiration of the
Due Diligence Period, Buyer shall notify Seller and the Title Company (&ldquo;<U>Buyer&rsquo;s Title Notice</U>&rdquo;) of any
objections which Buyer may have to the PTR and/or Surveys. If Buyer objects to any matters (other than the Permitted Exceptions,
as defined herein) which, in Buyer&rsquo;s determination, might adversely affect the ability of Buyer to operate any of the Facility,
Seller shall use its reasonable business efforts to cure same, but shall not be obligated to cure matters other than to obtain
the release (at Closing) of the existing mortgage and other monetary liens caused by Seller which may be released by payment of
the mortgage payoff or lien amount from Seller&rsquo;s Closing proceeds (collectively, &ldquo;<U>Monetary Liens</U>&rdquo;). If
Seller delivers written notice to Buyer (&ldquo;<U>Seller&rsquo;s Title Notice</U>&rdquo;), on or before the expiration of the
Due Diligence Period that Seller is willing to remove any exceptions objected to by Buyer, then Seller shall be obligated to remove
such exceptions on or prior to the Closing and such exceptions shall not be Permitted Exceptions. If Seller does not provide Buyer
with Seller&rsquo;s Title Notice or Seller&rsquo;s Title Notice does not provide for Seller&rsquo;s agreement to remove all exceptions
objected to by Buyer, then Buyer shall have the right to terminate this Agreement prior to the expiration of the Due Diligence
Period or waive Buyer&rsquo;s objection to any exceptions Seller has not agreed to remove with such exceptions becoming Permitted
Exceptions upon Buyer waiving its due diligence contingency. Buyer shall, promptly following the execution of this Agreement, commence
to use its best efforts to obtain the New Surveys as soon as practicable. Notwithstanding the foregoing provisions of this <U>Subsection&nbsp;(b)</U>,
Buyer shall have the right to object, promptly upon learning of any such new matters during the Due Diligence Period, to any matters
raised in the New Surveys which were not addressed in the Surveys, and the parties shall cooperate with the Title Company, during
the Due Diligence Period and as promptly as possible following the delivery of Buyer&rsquo;s objections to such new matters in
the New Surveys, to resolve any such matters to Buyer&rsquo;s satisfaction. The Due Diligence Period shall not be extended for
resolution of any such matters in the New Surveys.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Cooperation</U>.
Following the execution of this Agreement, Buyer and Seller agree that if any event should occur, either within or without the
knowledge or control of Buyer or Seller, which would prevent fulfillment of the conditions to the obligations of any party hereto
to consummate the transaction contemplated by this Agreement, each such party shall use reasonably commercial efforts to cure or
to cause the cure of the same as expeditiously as possible. In addition, each party shall cooperate fully with each other in preparing,
filing, prosecuting, and taking any other actions with respect to, any applications, requests, or actions which are or may be reasonable
and necessary to obtain the consent of any governmental instrumentality or any third party or to accomplish the transaction contemplated
by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification
Provisions</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the limitation on damages contained in <U>Section&nbsp;13(b)(ii)</U> hereof, Seller hereby agrees to indemnify, protect, defend
and hold harmless Buyer and its officers, directors members shareholders tenants, successors and assigns harmless from and against
any and all claims, demands, obligations, losses, liabilities, damages, recoveries and deficiencies (including interest, penalties
and reasonable attorneys&rsquo; fees, costs and expenses) which any of them may suffer as a result of: (A) any material breach
of or material inaccuracy in the representations and warranties, or breach, non-fulfillment or default in the performance of any
of the conditions, covenants and agreements, of Seller contained in this Agreement or in any certificate or document delivered
by Seller pursuant to any of the provisions of this Agreement, unless Seller cures such matter in the manner provided in <U>Section&nbsp;8(p)</U>
herein or (B) the failure to discharge any federal, state or local tax liability, or to pay any other assessments, recoupments,
claims, fines, penalties or other amounts or liabilities accrued or payable with respect to any activities of Seller prior to the
Closing Date (whether brought before or after the Closing Date), or (C) any obligation which is expressly the responsibility of
Seller under this Agreement, or (D) any amounts required to cure citation violations issued by any state health or human services
authority on the Facility relating to any period prior to the Closing Date (whether brought before or after the Closing Dates),
or (E) any claim by any employee of Seller relating to any period of employment prior to the Closing Date (whether brought before
or after the Closing Date), or (F) the existence against the Real Property of any mechanic&rsquo;s or materialmen&rsquo;s claims
resulting from the action or inaction of Seller or anyone acting under authority of Seller, or (G)&nbsp;any other cost, claim or
liability arising out of or relating to events (other than as a result of the actions of Buyer or Buyer&rsquo;s Consultants) or
Seller&rsquo;s ownership, operation or use of the Facility prior to the Closing Date. Any amount due under the aforesaid indemnity
shall be due and payable by Seller within 30 days after demand thereof. Seller shall have the right to contest any such claims,
liabilities or obligations as provided herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the limitation on damages contained in <U>Section&nbsp;13(b)(i)</U> hereof, Buyer hereby agrees to indemnify, protect, defend
and hold harmless Seller and its officers, directors, members, shareholders and tenants harmless from and against any and all claims,
demands, obligations, losses, liabilities, damages, recoveries and deficiencies (including interest, penalties and reasonable attorneys&rsquo;
fees, costs and expenses) which any of them may suffer as a result of: (A) any material breach of or material inaccuracy in the
representations and warranties, or breach, non-fulfillment or default in the performance of any of the conditions, covenants and
agreements, of Buyer contained in this Agreement or in any certificate or document delivered by Buyer pursuant to any of the provisions
of this Agreement, unless Buyer cures such matter in the manner provided in <U>Section&nbsp;8(p)</U> herein, or (B) the existence
against the Real Property of any mechanic&rsquo;s or materialmen&rsquo;s claims arising from actions of Buyer or Buyer&rsquo;s
Consultants prior to the Closing, or (C) any obligation which is expressly the responsibility of Buyer under this Agreement. Any
amount due under the aforesaid indemnity shall be due and payable by Buyer within thirty (30) days after demand therefor. Buyer
shall have the right to contest any such claims, liabilities or obligations as provided herein or any other cost, claim or liability
arising out of or relating to events or Buyer&rsquo;s ownership, operation or use of the Facility after the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
parties intend that all indemnification claims be made as promptly as practicable by the party seeking indemnification (the &ldquo;<U>Indemnified
Party</U>&rdquo;). Whenever any claim shall arise for indemnification hereunder, the Indemnifying Party shall promptly notify the
party from whom indemnification is sought (the &ldquo;<U>Indemnitor</U>&rdquo;) of the claim, and the facts constituting the basis
for such claim (the &ldquo;<U>Indemnification Claim</U>&rdquo;). Failure to notify the Indemnitor will not relieve the Indemnitor
of any liability that it may have to the Indemnified Party, except to the extent the defense of such action is materially and irrevocably
prejudiced by the Indemnified Party&rsquo;s failure to give such notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
Indemnitor shall have the right to defend against an Indemnification Claim, with counsel of its choice reasonably satisfactory
to the Indemnified Party, if (a) within fifteen (15) days following the receipt of notice of the Indemnification Claim the Indemnitor
notifies the Indemnified Party in writing that the Indemnitor will indemnify the Indemnified Party from and against the entirety
of any damages the Indemnified Party may suffer resulting from, relating to, arising out of, or attributable to the Indemnification
Claim, (b) the Indemnitor provides the Indemnified Party with evidence reasonably acceptable to the Indemnified Party that the
Indemnitor will have the financial resources to defend against the Indemnification Claim and pay, in cash, all damages the Indemnified
Party may suffer resulting from, relating to, arising out of, or attributable to the Indemnification Claim, (c) the Indemnification
Claim involves only money damages and does not seek an injunction or other equitable relief, (d) settlement of, or an adverse judgment
with respect to, the Indemnification Claim is not in the good faith judgment of the Indemnified Party likely to establish a precedential
custom or practice materially adverse to the continuing business interests of the Indemnified Party, and (e) the Indemnitor continuously
conducts the defense of the Indemnification Claim actively and diligently.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So
long as the Indemnitor is conducting the defense of the Indemnification Claim in accordance with <U>Section&nbsp;16(a)(iv)</U>,
then (A) the Indemnified Party may retain separate co-counsel at its sole cost and expense and participate in the defense of the
Indemnification Claim, (B) the Indemnified Party shall not consent to the entry of any order or finalization of any tentative settlement,
the only condition of which is the consent of the Indemnified Party thereto, with respect to the Indemnification Claim without
the prior written consent of the Indemnitor (not to be withheld unreasonably), and (C) the Indemnitor will not consent to the entry
of any order or finalization of any tentative settlement, the only condition of which is the consent of the Indemnified Party thereto,
with respect to the Indemnification Claim without the prior written consent of the Indemnified Party (not to be unreasonably withheld
or delayed, provided that it will not be deemed to be unreasonable for an Indemnified Party to withhold its consent with respect
to (i) any breach of any law, order or permit, (ii) any violation of the rights of any person, or (iii) any matter which Indemnified
Party believes could have a material adverse effect on any other actions to which the Indemnified Party or its Affiliates are party
or to which Indemnified Party has a good faith belief it may become party. Notwithstanding the foregoing provisions of this <U>Subsection&nbsp;(v)</U>,
if Indemnified Party refuses its consent to any of the matters set forth in clauses (i) through (iii) above, the indemnity amount
shall be determined as if such consent had been given and Indemnitor shall pay over to the Indemnified Party such amount and be
absolved from any further obligation as to that particular claim; Indemnified Party may then resolve the claim in the manner it
sees fit without further recourse against Indemnitor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
party hereby consents to the non-exclusive jurisdiction of any governmental body, arbitrator, or mediator in which an action is
brought against any Indemnified Party for purposes of any Indemnification Claim that an Indemnified Party may have under this Agreement
with respect to such action or the matters alleged therein, and agrees that process may be served on such party with respect to
such claim anywhere in the world, provided however, that any venue relating to any claim or proceeding arising out of this Agreement
or any other agreement between Seller and Buyer shall be the State and the laws of the State shall apply.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Insurance
Proceeds</U>. In determining the amount of damages for which either party is entitled to assert an Indemnification Claim, the amount
of any such claims or damages shall be determined after deducting therefrom the amount of any insurance coverage or proceeds or
other third party recoveries received by such other party in respect of such damages. If an indemnification payment is received
by the Indemnified Party in respect of any damages and the Indemnified Party later receives insurance proceeds or other third party
recoveries in respect of such damages, the Indemnified Party shall immediately pay to the Indemnifying Party a sum equal to the
lesser of the actual amount of net insurance proceeds or other third party recoveries (remaining after recovery costs and expenses)
or the actual amount of the indemnification payment previously paid by or on behalf of the Indemnified Party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Incidental, Consequential and Certain Other Damages</U>. An Indemnitor shall not be liable to an Indemnified Party for incidental,
consequential, enhanced, punitive or special damages unless such damages are included in a third-party claim and such Indemnified
Party is liable to the third party claimant for such damages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification
if Negligence of Indemnity; No Waiver of Rights or Remedies</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Indemnified Party&rsquo;s
rights and remedies set forth in this Agreement shall survive the Closing or other termination of this Agreement, shall not be
deemed waived by such Indemnified Party&rsquo;s consummation of the Closing of the sale transactions (unless the Indemnified Party
has knowledge of the existence of an Indemnification Claim at Closing and decides to proceed with Closing)and will be effective
regardless of any inspection or investigation conducted by or on behalf of such Indemnified Party or by its directors, officers,
employees, or representatives or at any time (unless such inspection or investigation reveals the existence of an Indemnified Claim
and such party proceeds with Closing), whether before or after the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Other
Indemnification Provisions</U>. A claim for any matter not involving a third party may be asserted by notice to the Party from
whom indemnification is sought.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Dispute
Resolution</U>. Any dispute arising out of or relating to claims for indemnification pursuant to this Article 16 or any other dispute
hereunder, shall be resolved in accordance with the procedures specified herein, which shall be the sole and exclusive procedure
for the resolution of any such disputes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
Any notice, request for consent or approval, election or other communication provided for or required by this Agreement shall be
in writing and shall be delivered by hand, by air courier service, postage prepaid (certified with return receipt requested), fax
transmission or electronic transmission followed by delivery of the hard copy of such communication by air courier service or mail
as aforesaid, addressed to the person to whom such notice is intended to be given at such address as such person may have previously
furnished in writing to the such party&rsquo;s last known address. Until receipt of written notice to the contrary, the parties&rsquo;
addresses for notices shall be:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right; width: 30%">To Buyer:</TD>
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 62%">Cornerstone Healthcare Real Estate Fund, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>c/o Cornerstone Healthcare Properties</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>1920 Main Street, Suite 400</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Irvine, CA 92614</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Attention: Kent Eikanas</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Phone: (949) 812-4335</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Email: KEikanas@crefunds.com</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">With a Copy to:</TD>
    <TD>&nbsp;</TD>
    <TD>DLA Piper LLP (US)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>2000 University Avenue</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>East Palo Alto, CA 94303</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Attention: James E. Anderson, Esq.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Phone: (650) 833-2078</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Email: Jim.Anderson@dlapiper.com</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">To Seller:</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>IP-Winston Salem Health Holdings, LLC</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>1270 25<SUP>th</SUP> Street Place, SE (for courier packages only)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>P.O. Box 2568 (28603)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Hickory, NC 28602</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Phone: (828) 322-5535</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Email: cet@meridiansenior.com</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">With a Copy to:</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>John A. Cocklereece, Jr.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>100 North Cherry Street, Suite 600</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>P.O. Box 21029 (27120)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Winston-Salem, NC 27101</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Phone: (336) 714-4123</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>E-mail:jcocklereece@belldavispitt.com</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sole
Agreement</U>. This Agreement constitutes the entire understanding between the parties with respect to the transactions contemplated
herein, and all prior or contemporaneous oral agreements, understandings representations and statement, and all prior written agreements,
understandings, letters of intent and proposals are merged into this Agreement. Neither this Agreement nor any provisions hereof
may be waived, modified, amended, discharged or terminated except by an instrument in writing signed by the party against which
the enforcement of such waiver, modification, amendment, discharge or termination is sought, and then only to the extent set forth
in such instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment;
Successors</U>. Neither party shall assign this Agreement without the prior written consent of the other; provided, however, Buyer
may assign all of its rights, title, liability, interest and obligation pursuant to this Agreement to one or more entities owned,
controlled by or under common control with Buyer. Subject to the limitations on assignment set forth above, all the terms of this
Agreement shall be binding upon and inure to the benefit of and be enforceable by and against the heirs, successors and assigns
of the parties hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
Should any one or more of the provisions of this Agreement be determined to be invalid, unlawful or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby
and each such provision shall be valid and remain in full force and effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Risk
of Loss</U>. Until the Closing Date, Seller shall bear the risk of loss for the Facility and after the Closing Date, the risk of
loss of the Facility shall be governed by the Post Closing Lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Holidays</U>.
If any date herein set forth for the performance of any obligations by Seller or Buyer or for the delivery of any instrument or
notice as herein provided should be on a Saturday, Sunday or legal holiday, the compliance with such obligations or delivery shall
be deemed acceptable on the next business day following such Saturday, Sunday or legal holiday. As used herein, the term &ldquo;legal
holiday&rdquo; means any state or federal holiday for which financial institutions or post offices are generally closed in the
State for observance thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.
This Agreement may be executed in any number of counterparts, each of which shall be an original, and all of which together shall
be deemed to constitute one and the same instrument. Facsimile signature pages or electronically transmitted signature pages shall
constitute original counterparts for all purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Covenant
Not to Compete; Non-Solicitation of Employees</U>. For a period of three (3) years following the Closing Date, Seller, individually,
agrees (i) not to own, manage, lease or operate a long term assisted living facility which is located within a ten (10) mile radius
of the Facility and (ii) not to solicit the transfer of patients or residents of any of the Facility to any long term assisted
living facility which is managed, leased or operated by any entity owned and/or controlled by any of Seller or such individual
within a ten (10) mile radius of the Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exhibits
and Schedules</U>. To the extent that one or more Exhibits or Schedules are not attached to this Agreement at the time this Agreement
is executed, Seller and Buyer agree that this Agreement is not rendered unenforceable by reason of such fact. Seller shall provide
such exhibits to Buyer during the Due Diligence Period as promptly as possible in order to allow the parties to agree upon such
Exhibits and Schedules and to afford Buyer adequate time in which to complete its due diligence review prior to the expiration
of the Due Diligence Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Prevailing
Party</U>. Subject to the limitations as otherwise set forth in this Agreement, if an action shall be brought on account of any
breach of or to enforce or interpret any of the terms, covenants or conditions of this Agreement, the prevailing party shall be
entitled to recover from the other party, as part of the prevailing party&rsquo;s costs, reasonable attorney&rsquo;s fees, the
amount of which shall be fixed by the court and shall be made a part of any judgment rendered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Time
is of the Essence</U>. Time is of the essence of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law</U>. This Agreement shall be governed by and construed in accordance with the laws of the State.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[Signatures on Following Pages]</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the undersigned have duly executed this Agreement by parties legally entitled to do so as of the day and year first set forth above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&ldquo;SELLER&rdquo;:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">IP-WINSTON SALEM HEALTH HOLDINGS, a North Carolina limited liability company</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 4%">By:</TD>
    <TD STYLE="width: 46%; border-bottom: Black 1pt solid"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>Its:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&ldquo;BUYER&rdquo;:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">CORNERSTONE HEALTHCARE REAL ESTATE FUND, INC., a Maryland corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>Its:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>LIST OF EXHIBITS</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal
Descriptions of Real Property</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Permitted
Exceptions</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intentionally
Deleted</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease
Terms of Post Closing Lease</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>LIST OF SCHEDULES</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27%; text-decoration: underline; text-indent: 0in">Schedule l(a)</TD>
    <TD STYLE="width: 73%; text-indent: 0in">List of Facility, Operator(s)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 1(c)</TD>
    <TD STYLE="text-indent: 0in">Personal Property</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 1(g)</TD>
    <TD STYLE="text-indent: 0in">Capital Improvements</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 3</TD>
    <TD STYLE="text-indent: 0in">Allocation of Purchase Price</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 8(a)(v)</TD>
    <TD STYLE="text-indent: 0in">Claims, Litigation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 8(b)</TD>
    <TD STYLE="text-indent: 0in">Violations</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 8(d)</TD>
    <TD STYLE="text-indent: 0in">Hazardous Substances</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 8(f)</TD>
    <TD STYLE="text-indent: 0in">Leases and Contracts</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 8(g)</TD>
    <TD STYLE="text-indent: 0in">Financial Reports</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 8(h)</TD>
    <TD STYLE="text-indent: 0in">Interests in Suppliers, etc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 8(j)</TD>
    <TD STYLE="text-indent: 0in">Matters relating to Licensure</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 8(k)</TD>
    <TD STYLE="text-indent: 0in">Matters relating to Reports and Reimbursements</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 8(l)</TD>
    <TD STYLE="text-indent: 0in">Surveys, Cost Reports, Private Rates, Census and Licensed Beds</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 8(m)</TD>
    <TD STYLE="text-indent: 0in">Occupied Beds; Rates</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline; text-indent: 0in">Schedule 10(a)(v)</TD>
    <TD STYLE="text-indent: 0in">Due Diligence Items</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><img src="tex10-1pg32.jpg"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>EXHIBIT B</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PERMITTED EXCEPTIONS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[To be Determined]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>EXHIBIT C</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Intentionally Deleted</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>EXHIBIT D</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">LEASE TERMS OF POST CLOSING LEASE</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[See attached]</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><img src="tex10-1pg36.jpg"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><img src="tex10-1pg37.jpg"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><img src="tex10-1pg38.jpg"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>SCHEDULE&nbsp;1 (a)</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>FACILITY; LICENSED BEDS</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 47%; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Facility</B></P></TD>
    <TD STYLE="width: 7%; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 46%; font-weight: bold; text-decoration: none; text-align: center; border-bottom: Black 1pt solid">Licensed Nursing Beds</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-decoration: none; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Danby House</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3150 Burke Mill Road</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Winston-Salem, NC 27103&nbsp;</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">98</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 27%; text-align: left">Current Operating Company:</TD><TD STYLE="text-align: justify; width: 73%">Danby House, LLC</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27%">Management Company:</TD>
    <TD STYLE="width: 73%">Meridian Senior Living, LLC pursuant to management contract dated March 1, 2011</TD></TR>
</TABLE>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>SCHEDULE 1(c)</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Personal Property</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U><BR>
</U><FONT STYLE="text-underline-style: none">[See Attached]</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>SCHEDULE 1(g)</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Capital Improvements</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[See Attached]</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>SCHEDULE 3</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Allocation of Purchase Price</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[To be Determined]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>SCHEDULE 8(a)(v)</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Claims, Litigation</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">None.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>SCHEDULE 8(b)</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Violations</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[See Attached]</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>SCHEDULE&nbsp;8(d)</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ENVIRONMENTAL DISCLOSURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>There are no known Hazardous Substances on the Property.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Notwithstanding anything to the contrary in the Agreement,
Seller makes no representation or warranty whatsoever with respect to Hazardous Substances on that portion of the Property burdened
by the certain access easement which appears of public record.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>SCHEDULE 8(f)</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Leases and Contracts</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[See Attached]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>SCHEDULE 8(g)</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Financial Reports</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[See Attached]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>SCHEDULE 8(h)</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Interest in Suppliers, etc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>None.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>SCHEDULE 8(j</U>)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Matters Relating to Licensure</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[See Attached]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>SCHEDULE 8(k)</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Matters Relating to Reports and Reimbursements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Not Applicable.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>SCHEDULE 8(l)</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Surveys, Private Rates, Census and Licensed
Beds</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[See Attached]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>SCHEDULE 8(m)</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Occupied Beds; Rates</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[See Attached]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>SCHEDULE&nbsp;10(a)(v)</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Due Diligence Materials</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[See Attached]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="margin: 0">

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