Document:

Exhibit

Exhibit 10.59

AMENDED AND RESTATED ENVIRONMENTAL 
INDEMNITY AGREEMENT
THIS AMENDED AND RESTATED ENVIRONMENTAL INDEMNITY AGREEMENT (as amended, supplemented or otherwise modified from time to time, this “Agreement”) is made as of the 12th day of December, 2018, by REGO II BORROWER LLC, a Delaware limited liability company having an office c/o Alexander’s, Inc., 210 Route 4 East, Paramus, New Jersey 07652 (“Borrower”) and ALEXANDER’S INC., a Delaware corporation having an office at 210 Route 4 East, Paramus, New Jersey 07652 (“Guarantor”, and together with Borrower, collectively, “Indemnitor”), in favor of BANK OF CHINA, NEW YORK BRANCH having an address at 7 Bryant Park, 1045 Avenue of the Americas, 13th Floor, New York, New York 10018 (“Lender” or “Indemnitee”) and the other Indemnified Parties (as defined below).
RECITALS:
WHEREAS, Borrower is the fee owner of the condominium unit known as the Lower Unit in the condominium unit known as the Rego II Condominium located at 61-01 Junction Boulevard, Queens, New York, together with the undivided interests in the common elements appurtenant to such unit as provided pursuant to the Declaration and all buildings, structures, foundations, fixtures, additions, enlargements, extensions, modifications, repairs, replacements and/or improvements now or hereafter being a part thereof (collectively, the “Premises”);
WHEREAS, Lender has previously made available to Borrower a loan in the maximum principal amount of up to Two Hundred Seventy Five Million and 00/100 Dollars ($275,000,000.00) (the “Original Loan”) evidenced by that certain Consolidated, Amended and Restate Promissory Note executed by Borrower in favor of Lender, dated as of November 30, 2011;
WHEREAS, in connection with the Original Loan, Lender and Indemnitor previously entered into that certain Environmental Indemnity Agreement, dated as of November 30, 2011 (the “Original Indemnity”);
WHEREAS, pursuant to that certain Amended and Restated Loan and Security Agreement, dated of even date herewith, between Borrower and Lender (together with all extensions, renewals, modifications, substitutions and amendments thereof, the “Loan Agreement”), Lender has agreed to make a mortgage loan to Borrower in the original principal amount of Two Hundred Fifty Two Million Five Hundred Forty Three Thousand Six Hundred Six and 53/100 Dollars ($252,543,606.53) (the “Loan”), which Loan is evidenced by that certain Second Amended and Restated Promissory Note, dated of even date herewith, executed by Borrower and payable to the order of Lender (together with all extensions, renewals, modifications, substitutions and amendments thereof, the “Note”);
WHEREAS, the Note is secured by, inter alia, that certain Second Amended and Restated Mortgage, Assignment of Leases and Rents and Security Agreement (the “Mortgage”) dated as of the date hereof and made by Borrower for the benefit of Lender, and the Loan is 

further evidenced, secured or governed by other instruments or documents executed in connection with the Loan (together with the Note, the Loan Agreement and the Mortgage, collectively, the “Loan Documents”);
WHEREAS, Lender and Indemnitor have agreed to amend and restate the terms and provisions of the Original Indemnity;
WHEREAS, Guarantor acknowledges that it has an indirect ownership interest in Borrower and will receive substantial economic and other benefits from Lender making the Loan to Borrower;
WHEREAS, Lender requires as a condition to the making of the Loan that each Indemnitor shall have executed and delivered this Agreement as security for Indemnitor’s obligations under the Loan Documents; and
WHEREAS, Indemnitor desires to further secure the payment of the Indebtedness and the performance of all of its obligations under the Note, the Loan Agreement and the other Loan Documents.
THEREFORE, the Original Indemnity is hereby amended and restated in its entirety so that the terms, conditions, covenants and provisions of the Original Indemnity shall read and be as set forth in this Agreement.
NOW THEREFORE, in consideration of the making of the Loan by the Lender, the covenants, agreements, representations and warranties set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Indemnitor, Indemnitor hereby represents, warrants, covenants and agrees as follows:
ARTICLE 1. 
DEFINITIONS
Capitalized terms used herein and not specifically defined herein shall have the respective meanings ascribed to such terms in the Loan Agreement.  As used in this Agreement, the following terms shall have the following meanings:
The term “Environmental Law” shall mean any federal, state or local statute, regulation or ordinance or any judicial or administrative decree or decision, whether now existing or hereafter enacted, promulgated or issued, with respect to the protection of human health, or the environment, or industrial hygiene, any Hazardous Materials, Microbial Matter, drinking water, stream sediments, vegetation, groundwater, wetlands, landfills, open dumps, storage tanks, underground storage tanks, solid waste, waste water, atmosphere, soil, storm water run‐off, waste emissions or wells, or the generation, manufacture, storage, handling, transportation, disposal, release, emission or discharge of any Hazardous Materials.  Without limiting the generality of the foregoing, the term shall encompass each of the following statutes, and regulations promulgated thereunder, and amendments and successors to such statutes and regulations, as may be enacted and promulgated from time to time: (a) the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (codified in scattered

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 Sections of 26 U.S.C.; 33 U.S.C.; 42 U.S.C. and 42 U.S.C. § 9601 et seq.); (b) the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et seq.); (c) the Hazardous Materials Transportation Act (49 U.S.C. § 1801 et seq.); (d) the Toxic Substances Control Act (15 U.S.C. § 2061 et seq.); (e) the Clean Water Act (33 U.S.C. § 1251 et seq.); (f) the Clean Air Act (42 U.S.C. § 7401 et seq.); (g) the Safe Drinking Water Act (21 U.S.C. § 349; 42 U.S.C. § 201 and § 300f et seq.); (h) the National Environmental Policy Act of 1969 (42 U.S.C. § 4321); (i) the Superfund Amendment and Reauthorization Act of 1986 (codified in scattered Sections of 10 U.S.C., 29 U.S.C., 33 U.S.C. and 42 U.S.C.); (j) Title III of the Superfund Amendment and Reauthorization Act (40 U.S.C. § 1101 et seq.); (k)  the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 USCA 6901 et seq.; (l) the Emergency Planning and Community Right-to-Know Act of 1986, 42 USCA 11001 et seq.; (m) the River and Harbor Act of 1899, 33 USCA 401 et seq.; (n) the Endangered Species Act of 1973, 16 USCA 1531 et seq.;  and (o) the Occupational Safety and Health Act of 1970, 29 USCA 651 et seq.  The term “Environmental Law” also includes, but is not limited to, any present and future federal, state and local laws, statutes ordinances, rules, regulations and the like, conditioning transfer of property upon a negative declaration or other approval of a Governmental Authority of the environmental condition of a property; or requiring notification or disclosure of Releases of Hazardous Materials or other environmental conditions of a property to any Governmental Authority or other Person, whether or not in connection with transfer of title to or interest in property.
The term “Hazardous Materials” shall mean each and every element, compound, chemical mixture, contaminant, pollutant, material, waste or other substance which is defined, determined or identified as hazardous or toxic under any Environmental Law.  Without limiting the generality of the foregoing, the term shall mean and include:
(a)    “hazardous substances” as defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Superfund Amendment and Reauthorization Act of 1986, or Title III of the Superfund Amendment and Reauthorization Act, each as amended, and regulations promulgated thereunder; excluding, however, common maintenance and cleaning products regularly found at properties with a standard of operation and maintenance comparable to the Premises;
(b)    “hazardous waste” and “regulated substances” as defined in the Resource Conservation and Recovery Act of 1976, as amended, and regulations promulgated thereunder;
(c)    “hazardous materials” as defined in the Hazardous Materials Transportation Act, as amended, and regulations promulgated thereunder;
(d)    “chemical substance or mixture” as defined in the Toxic Substances Control Act, as amended, and regulations promulgated thereunder; and
(e)    petroleum and petroleum products, asbestos and asbestos-containing materials, polychlorinated biphenyls, lead and radon, and compounds containing them (including gasoline, diesel fuel, oil and lead-based paint), and radioactive materials, flammables and explosives and compounds containing them, excluding, however, products or substances which 

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are generally used in the ordinary course of property operations, work projects and similar activities undertaken by or on behalf of Borrower or any tenants at the Premises, in each case in such quantities and concentrations as are reasonable for the intended application.
The term “Indemnified Parties” means Indemnitee, any Person who is or will have been involved in the servicing of the Loan, any Person in whose name the encumbrance created by the Mortgage is or will have been recorded, Persons who may hold or acquire or will have held a full or partial interest in the Loan, as well as custodians, trustees and other fiduciaries who hold or have held a full or partial interest in the Loan for the benefit of third parties as well as the respective directors, officers, shareholders, partners, members, employees, agents, servants, representatives, contractors, subcontractors, Affiliates, subsidiaries, participants, successors and assigns of any and all of the foregoing (including, but not limited to, any other Person who holds or acquires or will have held a participation or other full or partial interest in the Loan or is an affiliate of any Person who holds or acquires or will have held such a participation or other full or partial interest in the Loan, whether during the term of the Loan or, subject to the provisions of Section 2.10 herein, as a part of or following a foreclosure of the Mortgage and including, but not limited to, any successors by merger, consolidation or acquisition of all or a substantial portion of Indemnitee’s assets and business) (subject however to any provision in any Loan Document relating to who may hold an interest in the Loan).
The term “Legal Action” means any claim, suit or proceeding, whether administrative or judicial in nature.
The term “Losses” shall mean any and all losses, damages, costs, expenses, liabilities, claims or other obligations reasonably incurred by an Indemnified Party (including reasonable attorneys’ fees and disbursements).
The term “Microbial Matter” shall mean fungi or bacterial matter which reproduces through the release of spores or the splitting of cells, including, but not limited to, mold, mildew and viruses, whether or not such microbial matter is living.
The term “Release” with respect to any Hazardous Materials means any release, deposit, discharge, emission, leaking, leaching, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or other similar movement of any Hazardous Materials, but does not include such releases in compliance with applicable permits and applicable law.
The term “Remediation” includes, but is not limited to, any response, remedial, removal, or corrective action; any activity to clean up, detoxify, decontaminate, contain or otherwise remediate any Hazardous Materials; any actions to prevent, cure or mitigate any Release of any Hazardous Materials; any action to comply with any Environmental Laws or with any permits issued pursuant thereto; any inspection, investigation, study, monitoring, assessment, audit, sampling and testing, laboratory or other analysis, or evaluation relating to any Hazardous Materials or to anything referred to herein.

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ARTICLE 2.     
 
INDEMNIFICATION
2.1    Environmental Representations and Warranties.  Except as otherwise disclosed by that certain Phase I Environmental Site Assessment dated November 27, 2018, prepared by EBI Consulting with EBI Project No. 1118006631 (or by any prior Phase I environmental reports referenced therein) and any other environmental report with respect to the Premises delivered to Indemnitee in connection with the origination of the Loan (collectively, the “Environmental Report”), to Indemnitor’s knowledge after due inquiry: (a) there are no Hazardous Materials or underground storage tanks in, on, or under the Premises, except those that are both (i) in compliance with all Environmental Laws and with permits issued pursuant thereto and (ii) fully disclosed to Indemnitee in writing pursuant to the Environmental Report; (b) there are no past, present or threatened Releases of Hazardous Materials in, on, under or from the Premises that have not been fully remediated in accordance with Environmental Law; (c) there is no threat of any Release of Hazardous Materials migrating to the Premises; (d) there is no past or present material non-compliance with Environmental Laws, or with permits issued pursuant thereto, in connection with the Premises that has not been fully remediated in accordance with Environmental Law; (e) Indemnitor does not know of, and has not received, any written notice or other written communication from any Governmental Authority relating to the Release or Remediation of Hazardous Materials, of possible liability of Indemnitor pursuant to any Environmental Law, or any actual or potential administrative or judicial proceedings in connection with any of the foregoing; and (f) Indemnitor has truthfully and fully provided to Indemnitee, in writing, any and all information relating to conditions in, on, under or from the Premises that is known to Indemnitor and all information that is contained in files and records of Indemnitor, including but not limited to any reports relating to Hazardous Materials in, on, under or from the Premises and/or to the environmental condition of the Premises.
2.2    Environmental Covenants.  Indemnitor covenants and agrees that for so long as the Loan is outstanding, or, if earlier, until such time as Lender or any other Person takes title to, or possession or control of, the Premises by foreclosure, deed-in-lieu of foreclosure, a proceeding in bankruptcy or any other means:  (a) all uses and operations on or of the Premises by Indemnitor shall be in compliance with all Environmental Laws and permits issued pursuant thereto and Indemnitor shall use all commercially reasonable efforts to cause all other Persons to comply in their uses and operations at the Premises with all Environmental Laws; (b) Indemnitor shall not cause or permit any Releases of Hazardous Materials in, on, under or from the Premises; (c) except for those set forth in the Environmental Report, Indemnitor shall not use or permit the use of and shall cause the Premises to be free of Hazardous Materials in, on, or under the Premises, except those that are in compliance with all Environmental Laws and with permits issued pursuant thereto and except for negligible amounts used in the ordinary course of business; (d)  subject to Indemnitor’s right to contest in accordance with Section 7.3 of the Loan Agreement, Indemnitor shall keep the Premises free and clear of all liens and other encumbrances imposed pursuant to any Environmental Law, whether due to any act or omission of Indemnitor or any other Person (the “Environmental Liens”); (e) Indemnitor shall, at its sole cost and expense, fully and expeditiously cooperate in all activities pursuant to Section 2.3 herein, including, but not limited to, providing all relevant information and making knowledgeable persons available for interviews with environmental consultants to the extent 

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reasonably available; (f) Indemnitor shall, at its sole cost and expense, perform any environmental site assessment or other investigation of environmental conditions in connection with the Premises, pursuant to any reasonable written request of Indemnitee made in consideration of any environmental event or condition reasonably believed to have occurred or exist at the Premises (such assessment or investigation to be in scope and nature appropriate to the suspected event or condition), share with Indemnitee the reports and other results thereof, and Indemnitee and the other Indemnified Parties shall be entitled to rely on such reports and other results thereof; (g) Indemnitor shall, at its sole cost and expense, comply with all reasonable written requests of Indemnitee to (i) effectuate Remediation of any condition (including but not limited to a Release of a Hazardous Material) in, on, under or from the Premises required by any Environmental Law; (ii) subject to Indemnitor’s right to contest under Section 7.3 of the Loan Agreement, comply with any directive from any Governmental Authority having jurisdiction over the Premises requiring any action relating to any environmental condition in, on, under or originating from the Premises; and (h) Indemnitor shall, promptly upon becoming aware of such condition (to the extent not previously disclosed to Indemnitee), notify Indemnitee in writing of (i) any Releases of Hazardous Materials in, on, under, from or migrating towards the Premises; (ii) any material non-compliance with any Environmental Laws related in any way to the Premises; (iii) any Environmental Lien; and (iv) any required or proposed Remediation of environmental conditions relating to the Premises.  Notwithstanding the foregoing, no default shall occur under the Loan in the event that a Tenant violates the foregoing provisions as long as Indemnitor takes commercially reasonable actions in connection therewith.
2.3    Indemnified Rights/Cooperation and Access.  In the event the Indemnified Parties have reason to believe that Hazardous Materials exist in, on, or under the Premises that do not, in the reasonable discretion of the Indemnified Parties, endanger any tenants or other occupants of the Premises or their guests or the general public or materially and adversely affect the value of the Premises, upon reasonable notice from the Indemnitee, Indemnitor shall, at Indemnitor’s sole cost and expense, promptly cause an engineer or consultant satisfactory to the Indemnified Parties to conduct any environmental assessment or audit (the scope of which shall be determined in the reasonable discretion of the Indemnified Parties) and take any samples of soil, groundwater or other water, air, or building materials or any other invasive testing requested by Indemnitee and promptly deliver to Indemnitee the results of any such assessment, audit, sampling or other testing; provided, however, if such results are not delivered to the Indemnified Parties within a reasonable period or if the Indemnified Parties have reason to believe that any Hazardous Materials exist in, on, or under the Premises that, in the reasonable judgment of the Indemnified Parties, endanger any tenant or other occupant of the Premises or their guests or the general public or may materially and adversely affect the value of the Premises, upon reasonable notice to Indemnitor, the Indemnified Parties and any other Person designated by the Indemnified Parties, including but not limited to any receiver, any representative of a governmental entity, and any environmental consultant, shall have the right, but not the obligation, to enter upon the Premises following written notice at all reasonable times to assess any and all aspects of the environmental condition of the Premises and its use, including but not limited to conducting any environmental assessment or audit (the scope of which shall be determined in the reasonable discretion of the Indemnified Parties) and taking samples of soil, groundwater or other water, air, or building materials, and reasonably conducting other invasive testing.  Indemnitor shall cooperate with and provide the Indemnified Parties and any such Person designated by the Indemnified Parties with access to the Premises.  

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Notwithstanding the foregoing, no such entry shall be made by Indemnified Parties or any designated Person so long as Indemnitor conducts appropriate environmental assessments of the Premises and takes such further action reasonably required to cure or mitigate any Release of any Hazardous Materials, all as reasonably determined by the Indemnified Parties.
2.4    Indemnification.  Indemnitor covenants and agrees at Indemnitor’s sole cost and expense, to protect, defend, indemnify and hold Indemnified Parties harmless from and against any and all Losses imposed upon or incurred by or asserted against any Indemnified Parties as a result of a Legal Action by any third party against an Indemnified Party attributable to any one or more of the following:  (a) any presence of any Hazardous Materials in, on, above, or under the Premises; (b) any past, present or threatened Release of any Hazardous Materials in, on, above, under or from the Premises; (c) any activity by Indemnitor, any Person affiliated with Indemnitor (other than Indemnified Parties), and any Tenant or other user of the Premises in connection with any use, treatment, storage, holding, existence, disposition or other Release, generation, production, manufacturing, processing, refining, control, management, abatement, removal, handling, transfer or transportation to or from the Premises of any Hazardous Materials at any time located in, under, on or above the Premises, or any actual or proposed Remediation of any Hazardous Materials at any time located in, under, on or above the Premises, whether or not such remediation is voluntary or pursuant to court or administrative order, including but not limited to any removal, remedial or corrective action; (d) any past, present or threatened non-compliance or violations of any Environmental Law (or permits issued pursuant to any Environmental Law) in connection with the Premises or operations thereon, including but not limited to any failure by Indemnitor, any Person affiliated with Indemnitor (other than Indemnified Parties), and any Tenant or other user of the Premises to comply with any order of any Governmental Authority in connection with any Environmental Law other than any Losses; (e) the imposition, recording or filing of any lien with regard to any Hazardous Materials or pursuant to any Environmental Law encumbering the Premises; (f) any acts of Indemnitor, any Person affiliated with Indemnitor (other than Indemnified Parties), and any Tenant or other user of the Premises in (i) arranging for disposal or treatment, or arranging with a transporter for transport for disposal or treatment, of any Hazardous Materials at any facility or incineration vessel containing any such or similar Hazardous Materials or (ii) accepting any Hazardous Materials for transport to disposal or treatment facilities, incineration vessels or sites from which there is a Release, or a threatened Release of any Hazardous Materials that causes the incurrence of costs for remediation; and (g) any material misrepresentation or inaccuracy in any representation or warranty or material breach or failure to perform any covenants or other obligations pursuant to this Agreement or the Loan Documents relating to environmental matters. Notwithstanding the foregoing, Indemnitor shall not have any obligations or liabilities under this Agreement with respect to Losses that Indemnitor can prove (by a preponderance of the evidence) arose from (i) any conditions that arise at such time as Indemnitor is no longer in possession or control of the Premises as a result of Indemnitee’s exercise of its remedies under the Loan Documents, (ii) Hazardous Materials that were not present on the Premises prior to the date that Indemnitee or its nominee acquired title to the Premises, whether by foreclosure, exercise of a power of sale, acceptance of a deed-in-lieu of foreclosure, pursuant to a proceeding in bankruptcy or otherwise, or (iii) the gross negligence or willful misconduct of any Indemnified Party or any Affiliate thereof.

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2.5    Duty to Defend and Attorneys’ and Other Fees and Expenses.  Any Indemnified Party must give Indemnitor prompt written notice of any claim.  Upon written request by any Indemnified Party, or upon request by Indemnitor (provided no Event of Default shall have occurred and be continuing), Indemnitor shall defend said Indemnified Party (if requested by any Indemnified Party, in the name of the Indemnified Party) with attorneys and other professionals reasonably approved by the Indemnified Parties (such approval not to be unreasonably withheld or delayed).  If Indemnitor assumes such defense, Indemnitor shall not be liable for the payment of any separate legal fees and expenses, or any other defense or investigative costs, of the Indemnified Party, except that if the positions of Indemnitor and any Indemnified Party are in conflict, or if such Indemnified Party reasonably believes that its interests are not being adequately protected, any Indemnified Party may elect to conduct its own defense at Indemnitor’s reasonable expense.  Subject to the foregoing, upon demand, Indemnitor shall pay or reimburse Indemnified Parties for the payment of reasonable fees and disbursements of attorneys, engineers, environmental consultants, laboratories and other professionals in connection therewith.
2.6    Subrogation.  Indemnitor shall take any and all reasonable actions, including institution of legal action against third parties, necessary or appropriate to obtain reimbursement, payment or compensation from such Persons responsible for the presence of any Hazardous Materials at, in, on, under or near the Premises or otherwise obligated by law to bear the cost.  Indemnified Parties shall be and hereby are subrogated to all of Indemnitor’s rights now or hereafter in such claims.  Upon payment to the Indemnified Parties of all due and unpaid amounts under this Agreement, Indemnitor shall be subrogated to all of Indemnified Party’s rights in respect of any such claim.
2.7    Interest.  Any amounts payable to any Indemnified Parties under this Agreement shall become immediately due and payable on demand and, if not paid within thirty (30) days of such demand therefor, shall bear interest at a per annum rate equal to the lesser of (a) the Default Rate or (b) the Maximum Legal Rate that Indemnitor may by law pay or Indemnified Parties may charge and collect, from the date payment was due.
2.8    Survival.  The obligations and liabilities of Indemnitor under this Agreement shall, unless expressly provided otherwise herein, fully survive indefinitely, notwithstanding any termination, satisfaction, assignment, entry of a judgment of foreclosure, exercise of any power of sale, or delivery of a deed-in-lieu of foreclosure of the Mortgage; provided, however, that the obligation of Indemnitor to indemnify the Indemnified Parties under this Agreement shall terminate and be of no further force or effect on the later of two (2) years following the date (a) on which Indemnitor delivers to Indemnitee a Phase I Environmental Report with respect to the Premises and (b) which is the earlier to occur of (1) the date of the repayment in full of all amounts due and owing by Indemnitor under the Loan Agreement and (2) the date on which Indemnitee (or its nominee or designee) or a purchaser at a foreclosure sale actually takes title to the Premises, whether through a foreclosure sale, a deed-in-lieu thereof or otherwise pursuant to an exercise of remedies under the Loan Documents; provided, further that Indemnitor shall remain liable to the extent otherwise provided hereunder in respect of any Hazardous Materials located on the Premises as reflected in such Phase I Environmental Report and not previously reflected in the Environmental Report delivered in connection with the closing of the Loan; and provided, further however, that the indemnification obligations of

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 Indemnitor under this Agreement shall nonetheless survive as to any claims, actions, litigation, or other proceedings that are then pending or subject to further appeal as of the second (2nd) anniversary of such repayment in full or taking of title.  Furthermore, except as expressly limited by the immediately preceding sentence, such indemnification obligations shall in no way be impaired by any exercise of any Indemnified Party’s rights and remedies pursuant hereto, including, but not limited to, foreclosure, acceptance of a deed-in-lieu of foreclosure, any exercise of any rights under the Note or Mortgage or any act or omission that might otherwise be construed as a release or discharge of Indemnitor from its obligations pursuant thereto.  Notwithstanding anything to the contrary contained herein, Indemnitor shall not be deemed liable and shall not be required to indemnify Indemnitee or any Indemnified Party for any Losses to the extent such Losses arise from (i) any events or conditions that first arise after the date on which (A) Indemnitee (or its nominee or designee) or a purchaser at a foreclosure sale actually took title to the Premises, whether through a foreclosure sale, a deed-in-lieu thereof or otherwise pursuant to an exercise of remedies under the Loan Documents or (B) Borrower Transfers the Premises in accordance with the Loan Agreement so long as, (1) in connection with such Transfer, a replacement indemnitor reasonably acceptable to Indemnitee delivers an environmental indemnity agreement to Indemnitee, which is in form and substance reasonably acceptable to Indemnitee or, alternatively, (2) Borrower delivers to Indemnitee a Phase I Environmental Report that indicates that the Premises is clear of any Hazardous Materials as to which remedial action is recommended in such report and that the Premises are in compliance with all Environmental Laws or (ii) the gross negligence or willful misconduct of Indemnitee or any Indemnified Party.
2.9    Notice of Legal Actions.  Each party hereto shall, within three (3) Business Days of receipt thereof, give written notice to the other party hereto of (a) any written notice, advice or other written communication from any governmental entity or any source whatsoever with respect to any Hazardous Materials on, from or affecting the Premises that has or is reasonably likely to result in a material liability or loss, or that is alleged to violate any Environmental Law, and (b) any Legal Action brought against such party or related to the Premises, with respect to which Indemnitor may have liability under this Agreement.  Such notice shall comply with the provisions of Section 5.1 hereof.
2.10    Transfer of Loan.  Subject to the terms of the Loan Agreement, Indemnitee may, at any time, sell, transfer or assign the Note, the Loan Agreement, the Mortgage, this Agreement and the other Loan Documents, and any or all servicing rights with respect thereto, or grant participations therein.  Indemnitee may forward to each purchaser, transferee, assignee, servicer or participant (the foregoing entities hereinafter collectively referred to as the “Investor”) and each prospective Investor, all documents and information that Indemnitee now has or may hereafter acquire relating to Indemnitor and the Premises, whether furnished by Indemnitor, any guarantor or otherwise, as Indemnitee determines necessary or desirable.  Indemnitor and any guarantor agree to cooperate with Indemnitee in connection with any transfer made pursuant to this Section, including, without limitation, the delivery of an estoppel certificate and such other documents as may be reasonably requested by Indemnitee.  Indemnitor shall also furnish, and Indemnitor hereby consents to Indemnitee furnishing to such Investors or such prospective Investors, information concerning the financial condition of the Indemnitor as Indemnitee may reasonably request and is reasonably available to Indemnitor; provided, however, that Indemnitee and assignee or participant or proposed assignee or 

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participant, as the case may be, shall each maintain as confidential any and all information obtained about Indemnitor and shall not disclose such information to any third party, except such party’s consultants, lenders, and attorneys, except as otherwise required by law and except in connection with Indemnitee’s exercise of its remedies under this Agreement.
 
ARTICLE 3. 
REPRESENTATIONS AND WARRANTIES AND COVENANTS
3.1    General Representations and Warranties.  Indemnitor represents and warrants that:
(a)    (i) it has the full power and authority to execute and deliver this Agreement and to perform its obligations hereunder; the execution, delivery and performance of this Agreement by Indemnitor has been duly and validly authorized by all requisite organizational action and (ii) this Agreement will not result in the breach of any term or provision of the operating agreement or other governing instrument of Indemnitor;
(b)    intentionally deleted;
(c)    compliance with this Agreement will not result in the breach of any term or provision of, or conflict with or constitute a default under or result in the acceleration of, any obligation under any agreement, indenture or loan or credit agreement or other instrument to which Indemnitor or the Premises is subject, or result in the violation of any law, rule, regulation, order, judgment or decree to which Indemnitor or the Premises is subject;
(d)    there is no action, suit, proceeding or investigation pending or to Indemnitor’s knowledge, threatened against it that, either in any one instance or in the aggregate, would draw into question the validity of this Agreement or of any action taken or to be taken in connection with the obligations of Indemnitor described herein, or that would be likely to impair materially the ability of Indemnitor to perform under the terms of this Agreement or have a Material Adverse Effect;
(e)    no approval, authorization, order, license or consent of, or registration or filing with, any Governmental Authority or other Person, and no approval, authorization or consent of any other party is required in connection with the execution and delivery of and performance of this Agreement (except for Governmental Authorities in connection with the performance hereof); and
(f)    this Agreement constitutes a valid, legal and binding obligation of Indemnitor, enforceable against it in accordance with the terms hereof, subject to bankruptcy, insolvency and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles.
ARTICLE 4.     
 
GENERAL

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4.1    Unimpaired Liability.  The liability of Indemnitor under this Agreement shall in no way be limited or impaired by, and Indemnitor hereby consents to and agrees to be bound by, any amendment or modification of the provisions of the Loan Agreement, the Note, the Mortgage or any other document that evidences, secures or guarantees all or any portion of the Loan, or is executed and delivered in connection with the Loan (the “Other Security Documents”) to or with Indemnitee by Indemnitor or any Person who succeeds Indemnitor or any Person as owner of the Premises (subject to any restrictions on transfer under the Loan Agreement).  In addition, the liability of Indemnitor under this Agreement shall in no way be limited or impaired by (a) any extensions of time for performance required by the Loan Agreement, the Note, the Mortgage or any of the Other Security Documents, (b) any sale or transfer of all or part of the Premises, (c) except as provided herein, any exculpatory provision in the Loan Agreement, the Note, the Mortgage, or any of the Other Security Documents limiting Indemnitee’s recourse to the Premises or to any other security for the Note, or limiting Indemnitee’s rights to a deficiency judgment against Indemnitor, (d) the accuracy or inaccuracy of the representations and warranties made by Indemnitor under the Loan Agreement, the Note, the Mortgage or any of the Other Security Documents, or herein, (e) the release of Indemnitor or any other person from performance or observance of any of the agreements, covenants, terms or condition contained in any of the Other Security Documents by operation of law, Indemnitee’s voluntary act, or otherwise, (f) the release or substitution in whole or in part of any security for the Note, or (g) Indemnitee’s failure to record the Mortgage or file any UCC financing statements (or Indemnitee’s improper recording or filing of any thereof) or to otherwise perfect, protect, secure or insure any security interest or lien given as security for the Note; and, in any such case, whether with or without notice to Indemnitor and with or without consideration.
4.2    Enforcement.  Indemnified Parties may enforce the obligations of the Indemnitor without first resorting to or exhausting any security or collateral, or without first having recourse to the Loan Agreement, the Note, the Mortgage, or any other Security Documents or any of the Premises, through foreclosure proceedings or otherwise; provided, however, that nothing herein shall inhibit or prevent Indemnitee as permitted by applicable law, from suing on the Note, foreclosing, or exercising any power of sale under the Mortgage, or exercising any other rights and remedies thereunder.  This Agreement is not collateral or security for the debt of Indemnitor pursuant to the Loan, unless Indemnitee expressly elects in writing to make this Agreement additional collateral or security for the debt of Indemnitor pursuant to the Loan, which Indemnitee is entitled to do in its sole discretion.  It is not necessary for an Event of Default to have occurred for the Indemnified Parties to exercise their rights pursuant to this Agreement applicable to Indemnitor.  Notwithstanding any provision of the Loan Agreement, the obligations pursuant to this Agreement are exceptions to any non-recourse or exculpation provision of the Loan Agreement; Indemnitor is fully and personally liable for its obligations set forth herein.
4.3    Waivers.
(a)    Indemnitor hereby (i) waives any right or claim of right to cause a marshaling of the Indemnitor’s assets or to cause Indemnitee or other Indemnified Parties to proceed against any of the security for the Loan before proceeding under this Agreement against Indemnitor; (ii) relinquishes all rights and remedies accorded by applicable law to indemnitors or guarantors, except any rights of subrogation that Indemnitor may have, provided that the 

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indemnity provided for hereunder shall neither be contingent upon the existence of any such rights of subrogation nor subject to any claims or defenses whatsoever that may be asserted in connection with the enforcement or attempted enforcement of such subrogation rights, including, without limitation, any claim that such subrogation rights were abrogated by any acts of Indemnitee or other Indemnified Parties; (iii) waives the right to assert a counterclaim, except when such counterclaim is against a third party, other than a mandatory or compulsory counterclaim, in any action or proceeding brought against or by Indemnitee or other Indemnified Parties; (iv) waives notice of acceptance hereof and of any action taken or omitted in reliance hereon; (v) waives presentment for payment, demand of payment, protest or notice of nonpayment or failure to perform or observe, or other proof, or notice or demand; and (vi) waives all homestead exemption rights against the obligations hereunder and the benefits of any statutes of limitations or repose.  No delay by any Indemnified Party in exercising any right, power or privilege under this Agreement shall operate as a waiver of any such privilege, power or right.
(b)    INDEMNITEE AND INDEMNITOR EACH AND ALL PERSONS CLAIMING BY, THROUGH OR UNDER IT HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF THIS AGREEMENT.  THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY INDEMNITEE AND INDEMNITOR, AND INDEMNITEE AND INDEMNITOR ACKNOWLEDGE THAT NO PERSON ACTING ON BEHALF OF THE OTHER PARTY TO THIS AGREEMENT HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT.  INDEMNITEE AND INDEMNITOR FURTHER ACKNOWLEDGE THAT THEY HAVE BEEN REPRESENTED (OR HAVE HAD THE OPPORTUNITY TO BE REPRESENTED) IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF THEIR OWN FREE WILL, AND THAT THEY HAVE HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.
ARTICLE 5.     
 
MISCELLANEOUS
5.1    Notices.  All notices or other written communications hereunder shall be delivered in accordance with Section 15.6 of the Loan Agreement (except that notices to Guarantor shall be delivered to the address provided therein for Borrower).
5.2    No Third-Party Beneficiary.  The terms of this Agreement are for the sole and exclusive protection and benefit of Indemnified Parties.  No party shall be a third-party beneficiary hereunder, and no provision hereof shall operate or inure to the use and benefit of any such third party.  It is agreed that those Persons included in the definition of Indemnified Parties are not such excluded third-party beneficiaries.

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5.3    Duplicate Originals; Counterparts.  This Agreement may be executed in any number of duplicate originals and each duplicate original shall be deemed to be an original.  This Agreement may be executed in several counterparts, each of which counterparts shall be deemed an original instrument and all of which together shall constitute a single Agreement.  The failure of any party hereto to execute this Agreement, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.  Manually executed counterparts of this Agreement shall be delivered to all parties hereto; provided, that delivery of a signature of this Agreement by facsimile transmission or by .pdf, .jpeg, .TIFF or other form of electronic mail attachment shall be effective as delivery of a manually executed counterpart hereof prior to and in the absence of manual delivery.
5.4    No Oral Change.  This Agreement, and any provisions hereof, may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of Indemnitor or any Indemnified Party, but only by an agreement in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension, change, discharge or termination is sought.
5.5    Headings, etc.  The headings and captions of various paragraphs of this Agreement are for convenience of reference only and are not to be construed as defining or limiting, in any way, the scope or intent of the provisions hereof.
5.6    Number and Gender/Successors and Assigns.  All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the person or persons referred to may require.  Without limiting the effect of specific references in any provision of this Agreement, the term “Indemnitor” shall be deemed to refer to each and every party stated in the first paragraph hereof to be an Indemnitor from time to time, as the sense of a particular provision may require, and to include the heirs, executors, administrators, legal representatives, successors and assigns of Indemnitor, all of whom shall be bound by the provisions of this Agreement, provided that no obligation of Indemnitor may be assigned except with the prior written consent of Indemnitee.  Each reference herein to Indemnitee shall be deemed to include its successors and assigns.  This Agreement shall inure to the benefit of Indemnified Parties and their respective successors and permitted assigns. The Indemnified Parties shall have the right to assign or transfer their rights under this Agreement in connection with any assignment of the Loan and the Loan Documents in accordance with the Loan Agreement.  Any assignee or transferee of Indemnitee (and the other Indemnified Parties) shall be entitled to all the benefits afforded to Indemnitee (and the other Indemnified Parties) under this Agreement.  Except as specifically permitted in the Loan Agreement, Indemnitor shall not have the right to assign or transfer its rights or obligations under this Agreement without the prior written consent of Indemnitee and any attempted assignment without such consent shall be null and void.
5.7    Release of Liability.  Any one or more parties liable upon or in respect of this Agreement may be released without affecting the liability of any party not so released.
5.8    Rights Cumulative.  The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies that Indemnitee has under the Loan 

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Agreement, the Note, the Mortgage, or the Other Security Documents or would otherwise have at law or in equity.
5.9    Inapplicable Provisions.  If any term, condition or covenant of this Agreement shall be held to be invalid, illegal or unenforceable in any respect, this Agreement shall be construed without such provision.
5.10    Governing Law.  THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA.  TO THE FULLEST EXTENT PERMITTED BY LAW, INDEMNITOR, AND BY ACCEPTANCE OF THIS AGREEMENT, INDEMNITEE, EACH HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT AND THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.
ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST INDEMNITEE OR INDEMNITOR ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND INDEMNITOR, AND BY ITS ACCEPTANCE OF THIS AGREEMENT, INDEMNITEE, EACH WAIVES ANY OBJECTIONS THAT IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND INDEMNITOR AND INDEMNITEE HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING.
5.11    Approvals.  Wherever pursuant to this Agreement (a) Indemnified Parties exercise any right given to it to approve or disapprove, (b) any arrangement or term is to be satisfactory to Indemnified Parties, or (c) any other decision or determination is to be made by Indemnified Parties, the decision of Indemnified Parties to approve or disapprove, all decisions that arrangements or terms are satisfactory or not satisfactory and all other decisions and determinations made by Indemnified Parties, shall be in the sole discretion of Indemnified Parties, except as may be otherwise expressly and specifically provided herein.

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5.12    Legal Fees.  Wherever pursuant to this Agreement it is provided that Indemnitor pay any costs and expenses, such costs and expenses shall mean reasonable, out-of-pocket, third-party costs and expenses and shall include, but not be limited to, reasonable actual legal fees and disbursements of Indemnified Parties.
5.13    Expenses of Lender.  In the event this Agreement is put into the hands of any attorney for collection, suit or action as against Indemnitor, or Lender shall attempt to remedy any default hereunder, Indemnitor, its successors or assigns, shall be chargeable with and agrees to pay all reasonable costs incurred by Lender as a result thereof, including costs of collection and defense, including reasonable attorneys’ fees (and experts’, consultants’ and witnesses’ fees) in connection therewith and in connection with any appellate proceeding or post-judgment action involved therein, which shall be due and payable together with all required service or use taxes.
5.14    Joint and Several Liability.  The obligations and liabilities of Indemnitor hereunder shall be joint and several.
5.15    Exculpation.  The provisions of Article 14 of the Loan Agreement regarding exculpation are hereby incorporated by reference with the full force and effect as though such provisions were fully set forth herein.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF the undersigned have executed this Agreement as of the date and year first written above.
INDEMNITOR:
REGO II BORROWER LLC, 
a Delaware limited liability company
By:    ALEXANDER’S OF REGO PARK II, INC., 
a Delaware corporation, its sole member
By:    /s/Alan J. Rice     
    Name: Alan J. Rice 
    Title: Authorized Signatory

S-1    Amended and Restated Environmental Indemnity

ALEXANDER’S, INC., 
a Delaware corporation
By:    /s/Alan J. Rice     
    Name: Alan J. Rice
    Title: Authorized Signatory

ACCEPTED AND AGREED BY: 
INDEMNITEE:
BANK OF CHINA, NEW YORK BRANCH

By:       /s/ Raymond L. Qiao                
 
Name: Raymond L. Qiao                        Title: Authorized Signatory, Bank of China   New York Branch 
    

S-2    Amended and Restated Environmental IndemnityExhibit

Exhibit 10.60

Execution Copy

AMENDED AND RESTATED 
PARTICIPATION AND SERVICING AGREEMENT
for
AMENDED AND RESTATED 
LOAN AND SECURITY AGREEMENT  
Between
BANK OF CHINA, NEW YORK BRANCH  
individually as Lender, Initial A-1 Holder  
and as the Agent for the Holders
-and -
ALEXANDER’S OF REGO PARK II PARTICIPATING LENDER LLC  
individually as Initial A-2 Holder
Dated: December 12, 2018

AMENDED AND RESTATED 
PARTICIPATION AND SERVICING AGREEMENT
THIS AMENDED AND RESTATED PARTICIPATION AND SERVICING AGREEMENT (this “Agreement”) is dated as of December 12, 2018, by and between BANK OF CHINA, NEW YORK BRANCH, having an address at 7 Bryant Park, 1045 Avenue of the Americas, 13th Floor, New York, New York 10018 (together with its successors and assigns, (“Lender,” “Agent,” or “Initial A-1 Holder”) and ALEXANDER’S OF REGO PARK II PARTICIPATING LENDER LLC, having an address at c/o Alexander’s, Inc., 210 Route 4 East, Paramus, New Jersey 07652 (“Initial A2 Holder;” the Initial A-2 Holder, together with any assignee of any portion of Participation A-2 (as defined below) that is an Affiliate of Initial A-2 Holder, each a “Related A-2 Holder,” and together with its non-Affiliated successors and assigns, “A-2 Holder,” and Lender and A-2 Holder collectively as holders of interests in the Loan, the “Holders”).  All terms as used in this Agreement shall, unless otherwise defined in the main body of this Agreement, have the meanings given to such terms in the section herein titled “Definitions”.
RECITALS
1.REGO II BORROWER LLC, a Delaware limited liability company (the “Borrower”) is the owner of certain real property located at 61-35 Junction Boulevard, Queens, New York, (the “Mortgaged Property”).
2.Borrower and Lender have heretofore entered into that certain Loan and Security Agreement dated as of November 30, 2011, as amended by that certain First Amendment and Modification of Loan and Security Agreement and Other Loan Documents, dated as of June 20, 2012, that certain Second Amendment and Modification of Loan Agreement and Other Loan Documents and Ratification of Guarantor, dated as of November 15, 2013 and that certain Third Amendment to Loan and Security Agreement, dated as of November 21, 2018 (as so amended, the “Original Loan Agreement”), with respect to a loan in the amount of $275,000,000.00 (the “Original Loan”) secured by, amongst other things, a mortgage on the Mortgaged Property.
3.Lender and Initial A-2 Holder have heretofore entered into that certain Participation Agreement dated as of July 28, 2017 (the “Original Participation Agreement”), with respect to a participation interest in the Loan in the amount of $200,000,000.00 (the “Original A-2 Participation Interest”).
4.Pursuant to that certain Amended and Restated Loan and Security Agreement dated as of the date hereof (the “Loan Agreement”), Borrower and Lender have agreed to, inter alia, amend and restate the terms of the Original Loan Agreement in the reduced original 

principal amount of Two Hundred Fifty-Two Million Five Hundred Forty-Three Thousand, Six Hundred and Six and 53/100 Dollars ($252,543,606.53) the “Mortgage Loan”).
5.To evidence the Mortgage Loan, the Borrower is concurrently herewith executing and delivering in favor of Lender a Second Amended and Restated Promissory Note, dated as of the date hereof in the original principal amount of Two Hundred Fifty-Two Million Five Hundred Forty-Three Thousand, Six Hundred and Six and 53/100 Dollars ($252,543,606.53), as same may be amended, supplemented, restated, increased, extended and consolidated, substituted or replaced from time to time, the “Note”).  To secure the Note, the Borrower granted for the benefit of the Lender, inter alia, a Second Amended and Restated Mortgage, Assignment of Leases and Rents and Security Agreement encumbering the Mortgaged Property (the “Mortgage”).
6.    To evidence the Mortgage Loan, the Borrower has concurrently herewith additionally executed and delivered in favor of Lender the documents listed on Exhibit A attached hereto and made a part hereof, each dated as of the date hereof (such documents, together with the Loan Agreement, the Note, and the Mortgage, collectively, the “Loan Documents”).
7.    As of the date hereof, the outstanding principal amount of the Mortgage Loan is Two Hundred Fifty-Two Million Five Hundred Forty-Three Thousand, Six Hundred and Six and 53/100 Dollars ($252,543,606.53).
8.    On the date hereof, Lender and Initial A-2 Holder have agreed to renew and recast the Original A-2 Participation Interest in the Mortgage Loan in the original principal amount of $200,000,000.
9.    Capitalized terms used but not otherwise defined herein shall have the meanings assigned to them in the Loan Agreement.
10.    It is the intention and desire of the Holders to amend and restate the terms and conditions contained in the Original Participation Agreement as set forth herein and to enter into this Agreement in order to set forth the rights, benefits, priorities, and obligations of the Holders with respect to the Mortgage Loan and the other mutual understandings of the Holders.
NOW, THEREFORE, in consideration of the mutual promises herein contained and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto hereby agree, with respect to the Loan, as follows:

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SECTION 1 
 
DEFINITIONS; PRINCIPLES OF CONSTRUCTION
1.01    Definitions.  References to a “Section” or the “recitals” are, unless otherwise specified, to a Section or the recitals of this Agreement.  Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Loan Agreement in effect as of the date hereof, as the same may be amended in accordance with the Loan Documents and this Agreement. Whenever used in this Agreement, the following terms shall have the respective meanings set forth below unless the context clearly requires otherwise.
“A-1 Holder” means the Holder of Participation A-1.
“A-2 Holder” means the Holder of Participation A-2.
“A-2 Purchase Price” means $200,000,000.
“Accepted Servicing Practices” those practices and procedures that Agent utilizes for loans that Agent owns for its own account and with a view to the maximization of timely recovery of principal and interest on a net present value basis on the Mortgage Loan.
“Affiliate” shall mean with respect to any specified Person, (a) any other Person controlling or controlled by or under common control with such specified Person (each a “Common Control Party”).  For the purposes of this definition, “Control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract, relation to individuals or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing.
“Agent” shall mean Bank of China, New York Branch, acting as Agent pursuant to this Agreement.
“Agreement” shall mean this Amended and Restated Participation and Servicing Agreement, the exhibits and schedules hereto and all amendments hereof and supplements hereto, as the same may by hereafter modified, amended or supplemented.
“Appraisal” shall mean an appraisal of the Mortgaged Property conducted in accordance with the standards of the Appraisal Institute by an appraiser that is a member in good standing of the Appraisal Institute and that is certified by such appraiser as having been prepared 

3

in accordance with the requirements of the Standards of Professional Practice of the Appraisal Institute with an “MAI” designation and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation, as well as FIRREA.
“Borrower” shall have the meaning assigned to such term in the recitals.
“Business Day” shall mean any day that is not a Saturday or Sunday, and that is not a legal holiday in New York, New York, or any other city which serves as the principal place of business for Agent or any successor thereto nor a day which banking institutions or savings associations in any of the foregoing cities are closed for business.
“Common Control Party” shall have the meaning given to such term in the definition of “Affiliate.”
“Control” of any Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ability to exercise voting power, by contract or otherwise; provided that for purposes of the definition of “Qualified Transferee”, the term Control shall, in addition to the foregoing, require the possession, directly or indirectly, of more than 50% of the beneficial ownership interests in such Person.  For the avoidance of doubt, a Person shall be deemed to be Controlled by Qualified Transferees for purposes of the definition of “Qualified Transferee” even if the Qualified Transferee that directly or indirectly possesses the power to cause the direction of management or policies of such Person is a different Person than, or is only one of, the Qualified Transferees that own (directly or indirectly) more than 50% of the beneficial interest in such Person.  The terms “Controlled by,” “Controlling” and “under common Control with” shall have the respective correlative meaning thereto.  
“Costs and Expenses” shall mean each of the following costs and expenses, in each case, (a) if the Mortgage Loan is in existence (i.e., has not been foreclosed or a deed-in-lieu accepted) to the extent such costs and expenses are required to be paid or reimbursed by Borrower under the Loan Documents and Borrower fails to timely make such payment or reimbursement pursuant to the Loan Documents and (b) if Lender has acquired the Mortgaged Property, to the extent the costs and expenses would have qualified under (a) if the Mortgage Loan were still in existence: all reasonable and out of pocket costs, fees, expenses, interest, payments, losses, liabilities, judgments and/or causes of action reasonably suffered or actually incurred or reasonably paid by Agent or a Holder pursuant to or in connection with the Mortgage Loan, the Loan Documents (not including any Servicing Fees, Special Servicing Fees, workout fees, liquidation fees or additional servicing compensation unless (except in the case of “regular” periodic Servicing Fees) paid to a Person not an Affiliate of a Holder; but provided that all actual out-of-pocket 

4

expenses of Agent in connection with enforcement and workout of the Mortgage Loan shall be Costs and Expenses) the Mortgaged Property, this Agreement or otherwise in connection with the enforcement of the Mortgage Loan in accordance with this Agreement, including, without limitation, reasonable attorneys’ fees and disbursements, taxes, assessments, insurance premiums and other protective advances as more particularly provided in the Loan Documents; provided, however, that neither (i) the costs and expenses relating to the origination of the Mortgage Loan, nor (ii) the day to day customary and usual, ordinary costs of servicing and administration of the Mortgage Loan, other than responding to consent requests from Borrower, shall be “Costs and Expenses” hereunder.
“Eligibility Requirements” means, with respect to any Person, that such Person (i) has total assets (in name or under management or advisement), including irrevocable capital commitments, in excess of $500,000,000, and (except with respect to a pension advisory firm, asset manager, registered investment advisor or manager or similar fiduciary) either (x) capital/statutory surplus or shareholder’s equity of at least $200,000,000 or (y) market capitalization of at least $350,000,000, and (ii) is regularly engaged in the business of making or owning (or, in the case of a pension advisory firm, asset manager, registered investment advisor or manager or similar fiduciary, regularly engaged in managing investments in) commercial real estate mortgage or mezzanine loans or interests therein, originating preferred equity investments,  owning or operating commercial properties or making investments in commercial real estate.
“Holder” shall have the meaning assigned to it in the introductory paragraph of this Agreement.
“Loan Agreement” shall have the meaning assigned to it in the recitals. 
“Loan Documents” shall mean the Mortgage, the Loan Agreement, the Note, and all other documents evidencing or securing the Mortgage Loan, including, without limitation, all guaranties and indemnities, as same may be amended, modified or restated in accordance with this Agreement.
“Material Adverse Effect” shall mean any event, development or circumstance that has or causes a material adverse effect on (a) the business operations, economic performance, assets, financial condition, equity, contingent liabilities, material agreements or results of operations of Borrower, Guarantor and/or the Mortgaged Property, (b) the enforceability or validity of any material Mortgage Loan Document, the perfection or priority of any Lien created under any Mortgage or affecting any material portion of the Mortgaged Property, or the rights and 

5

remedies of Agent and/or the Holders under any material Mortgage Loan Document, or (c) the value of, or cash flow from, the Mortgaged Property.
“Mortgage” shall have the meaning assigned to such term in the Recitals. 
“Mortgage Loan” shall have the meaning assigned to such term in the recitals.
“Mortgage Loan Principal Balance” shall mean, at any date of determination, the outstanding principal balance of the Mortgage Loan.
“Mortgaged Property” shall have the meaning assigned to such term in the Recitals.
“Non-Exempt Person” shall mean any Person other than a Person who is either (i) a U.S. Person or (ii) has delivered to (or has on file with) Agent for the relevant year such duly-executed form(s) or statement(s) which may, from time to time, be prescribed by law and which, pursuant to applicable provisions of (A) any income tax treaty between the United States and the country of residence of such Person, (B) the Code or (C) any applicable rules or regulations in effect under clauses (A) or (B) above, permit Agent to make such payments free of any obligation or liability for withholding.
“Non-Recoverable Advance” shall mean any portion of a Servicing Advance previously made or proposed to be made which, in the case of a Servicing Advance previously made, has not been previously reimbursed to Agent and which, in the reasonable business judgment of Agent taking into account amounts that may be collected or realized on the Mortgaged Property prior to final liquidation and liquidation proceeds, will not, or, in the case of a proposed Servicing Advance, would not, be ultimately recoverable together with interest thereon at a per annum rate equal to the Prime Rate (compounded monthly on each Remittance Date) from amounts to be deposited with Agent under the terms of this Agreement.  The judgment or determination by Agent as the case may be, that it has made a Non-Recoverable Advance or that any proposed Servicing Advance, if made, would constitute a Non-Recoverable Advance shall be evidenced by a certificate of an officer of such party delivered to the Holders, which in each case sets forth such judgment or determination and the procedures and considerations of Agent forming the basis of such determination (including, but not limited to, information selected by the person making such judgment or determination in its good faith discretion, such as related income and expense statements, rent rolls, occupancy status, property inspections, Agent inquiries, third party engineering and environmental reports, and an Appraisal or any updated Appraisal thereof conducted within the past 12 months) and copies of such documents are to be included with the certificate of an officer.

6

“Non-Related Holder” means each Holder other than a Related A-2 Holder.
“Note” shall have the meaning assigned to such term in the recitals.
“Original A-2 Participation Interest” shall have the meaning assigned to it in the recitals. 
“OFAC List” shall mean the list of specially designated nationals and blocked Persons subject to financial sanctions that is maintained by the U.S. Treasury Department, Office of Foreign Assets Control and accessible through the internet website www.treas.gov/ofac/t11sdn.pdf, as amended or supplemented from time to time. 
“Original Loan” shall have the meaning assigned to it in the recitals. 
“Original Loan Agreement” shall have the meaning assigned to it in the recitals.
“Original Participation Agreement” shall have the meaning assigned to it in the recitals. 
“Original Purchase Date” shall mean July 27, 2017.
“Other Charges” shall mean all amounts referred to as “other charges” in the Loan Agreement.
“Participation” shall have the meaning assigned to such term in the recitals.
“Participation Principal Balance” shall mean, at any time, the then-outstanding principal balance of the applicable Participation, which shall equal the initial principal balance of such Participation, less any payments of principal thereon received by the Holder thereof The aggregate Participation Principal Balances shall equal the Mortgage Loan Principal Balance.
“Participation A-1” means the “Participation A-1” issued under the Original Participation Agreement and hereby renewed under this Agreement.
“Participation A-2” means the Original A-2 Participation Interest issued under the Original Participation Agreement and hereby renewed under this Agreement.
“Participation Certificate” means the certificate in the form of Exhibit D, evidencing Participation A-1 or Participation A-2.

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“Percentage Share” shall mean, with respect to any Holder as of any date, the ratio, expressed as a percentage, that (a) the Participation Principal Balance of the Participation held by such Holder bears to (b) the Mortgage Loan Principal Balances.
“Permitted Fund Manager” means any Person that on the date of determination is not subject to a Proceeding and is a Person that is a Qualified Transferee pursuant to clauses (b) or (d) of the definition thereof that is investing through a fund or funds with aggregate committed capital under management of at least $250,000,000.
“Person” shall mean any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.
“Prepayment” shall mean any payment of principal made by the Borrower with respect to the Mortgage Loan which is received in advance of its scheduled maturity date, whether made by reason of a casualty or condemnation, due to the acceleration of the maturity of the Mortgage Loan or otherwise.
“Prepayment Premium” shall mean any prepayment premium, yield maintenance or spread maintenance premium or similar fee required to be paid in connection with a Prepayment.
“Prime Rate” shall mean, for any day, the rate of interest for such day from time to time announced by Citibank, N.A., at its New York City Main Branch as its prime rate (being a base rate for calculating interest on certain loans), each change in any interest rate hereunder based on the Prime Rate to take effect at the time of such change in the prime rate.  The Prime Rate is not necessarily the lowest rate for commercial or other types of loans.
“Proceeding” shall have the meaning assigned to it in the definition of Prohibited Person.
“Prohibited Person” means (a) any Person identified on the OFAC List or any other Person with whom a U.S. Person may not conduct business or transactions by prohibition of Federal Law or Executive Order of the President of the United States of America or (b) any Person which is or has within the previous five (5) years been (i) the debtor in a voluntary or involuntary, of any case, proceeding or other action by or against either Borrower under any existing or future law of any jurisdiction relating to bankruptcy, insolvency, reorganization or relief of debtors (a “Proceeding”) (unless, with respect to an involuntary case, such involuntary Proceeding was dismissed within 180 days of the filing thereof), or (ii) an adverse party in any material litigation 

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or other material dispute resolution with Lender, other than in connection with a consensual foreclosure in which Lender was a party. 
“Pro Rata and Pari Passu Basis” shall mean (i) with respect to the Participations, the allocation of any particular payment, collection, cost, expense, liability or other amount among the Participations on a pro rata basis in accordance with the respective unpaid principal balances of the Participations, without any priority of any Participation over any other Participation; and (ii) with respect to the Holders, the allocation of any particular payment, collection, cost, expense, liability or other amount among the Holders on a pro rata basis in accordance with the respective unpaid principal balances of their Participations, without any priority of any Holder over any other Holder.

“Qualified Transferee” means any one or more of the following provided such Person is not a Prohibited Person:  
(a)    the Lender named in the first paragraph of this Agreement and its Affiliates;  
(b)    any bank, investment bank, insurance company, real estate investment trust, saving and loan association, trust company, commercial credit corporation, pension plan, pension fund, pension advisory firm, mutual fund, government entity or plan, investment company, money management firm, “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, as amended, or “institutional accredited investor” within the meaning of Regulation D under the Securities Act of 1933, as amended, and any institution similar to any of the foregoing, provided in each case under this clause (b) that such Person satisfies the Eligibility Requirements;
(c)    an investment fund, limited liability company, limited partnership or general partnership or similar Person (a “Permitted Investment Fund”) where (i) a Permitted Fund Manager acts (directly or indirectly) as general partner, managing member or fund manager, and (ii) (x) at least 50% of the equity interests in such investment vehicle are owned, directly or indirectly, by one or more of the following:  a Qualified Transferee (as defined under clauses (a), (b), (d), or (e) of this definition), an institutional “accredited investor”, within the meaning of Regulation D promulgated under the Securities Act of 1933, as amended, and/or a “qualified institutional buyer” or both within the meaning of Rule 144A promulgated under the Securities Exchange Act of 1934, as amended, provided such institutional “accredited investors” or “qualified institutional buyers” that are used to satisfy the 50% test set forth above in this clause (c) satisfy the financial tests in clause (i) of the definition of Eligibility Requirements, or (y) such Permitted Investment Fund satisfies the financial tests in clause (i) of the definition of Eligibility Requirements; 

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(d)    any Person(s) Controlling, Controlled by, or under common Control with any one or more of the Persons described in clauses (a), (b), or (c) of this definition; or
(e)    any Person approved in writing by Lender. 
“Remittance Date” shall have the meaning assigned to it in Section 4.01.
“Servicing Advance” shall mean each of the following costs and expenses, in each case, (a) if the Mortgage Loan is in existence (i.e., has not been foreclosed or a deed-in-lieu accepted) to the extent such costs and expenses are required to be paid or reimbursed by Borrower under the Loan Documents and Borrower fails to timely make such payment or reimbursement and (b) if Lender has acquired the Mortgaged Property, to the extent the costs and expenses would have qualified under (a) if the Mortgage Loan were still in existence: any and all customary and reasonable “out of pocket” costs and expenses incurred by Agent in the performance of its servicing obligations, including, but not limited to, the cost and expenses incurred in connection with (i) the preservation, restoration and protection of the Mortgaged Property which, in the judgment and discretion of such party (exercised in accordance with Accepted Servicing Practices), is necessary to prevent an immediate or material loss to the Holders’ interest in the Mortgaged Property, including costs and expenses necessary to preserve the priority of the Mortgage, (ii) the payment of ground rent, real estate taxes, assessments and other taxes and governmental charges that may be levied or assessed against the Borrower or the Mortgaged Property or revenues therefrom or which become liens on the Mortgaged Property, insurance premiums, and any other amounts necessary to preserve the priority of the lien created by the Mortgage or the value of the Mortgaged Property (to the extent not paid by Borrower), and (iii) any enforcement or judicial proceedings (including, without limitation, foreclosures), and including, but not limited to, court costs, attorneys’ fees and expenses, costs for third party experts, including environmental and engineering consultants.
“Taxes” shall mean any income or other taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature, now or hereafter imposed by any jurisdiction or by any department, agency, state or other political subdivision thereof or therein.
“Transfer” shall have the meaning assigned to such term in Section 8.01.
“Unanimous Consent Decision” shall have the meaning assigned to such term in Section 5.01.

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“U.S. Person” shall mean a citizen or resident of the United States, a corporation or partnership (except to the extent provided in applicable Treasury Regulations) created or organized in or under the laws of the United States, any State thereof or the District of Columbia, including any entity treated as a corporation or partnership for federal income tax purposes, or an estate whose income is subject to United States federal income tax regardless of its source, or a trust if a court within the United States is able to exercise primary supervision over the administration of such trust, and one or more United States fiduciaries have the authority to control all substantial decisions of such trust (or, to the extent provided in applicable Treasury Regulations, a trust in existence on August 20, 1996 which is eligible to elect to be treated as a U. S . Person).
1.02    Principles of Construction.  All references to sections and schedules are to sections and schedules in or to this Agreement unless otherwise specified.  Any reference in this Agreement or in any other Loan Document to any Loan Document shall be deemed to include references to such documents as the same may hereafter be amended, modified, supplemented, extended, replaced and/or restated from time to time (and, in the case of any note or other instrument, to any instrument issued in substitution therefor). Unless otherwise specified, the words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms of the terms so defined.
SECTION 2     
 
CREATION OF PARTICIPATIONS
2.01    Purchase and Sale.  On the Original Purchase Date, on the terms and conditions set forth herein, the Lender created Participation A-1 and Participation A-2, retained Participation A-1 and sold Participation A-2 to Initial A-2 Holder.  On the Original Purchase Date, Initial A-2 Holder paid for Participation A-2 by wire transfer to Lender of immediately available funds in an amount equal to the A-2 Purchase Price (which purchase is effective).  Lender delivered the A-2 Participation Certificate to the Initial A-2 Holder.  Each Holder is the owner of its respective Participation.  No Holder shall transfer its Participation, or any portion thereof, other than in accordance with Section 8 hereof.
2.02    Current Principal Balances.  The parties hereto acknowledge and agree that, as of the date hereof, Participation A-1 has a Participation Principal Balance of $56,835,869.68 and Participation A-2 has a Participation Principal Balance of $195,707,736.85.

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2.03    Ranking and Allocations.  Each Participation and the right of the applicable Holder to receive payments with respect thereto shall at all times be Pro Rata and Pari Passu with each other in accordance with their respective Percentage Shares, (a) except as specifically provided otherwise in this Agreement and (b) except that the right of any Related A-2 Holder to receive payment shall be subordinate to such right of the other Holder to the extent provided herein.  All interest, income, gain, profits and losses due to or incurred by the Holders with respect to the Mortgage Loan shall be apportioned among the Holders in proportion to their Percentage Shares in the Mortgage Loan, in each case to the extent accruing from and after the Original Purchase Date (a) except as specifically provided otherwise in this Agreement and (b) except that the right of any Related A-2 Holder to receive payment shall be subordinate to such right of the other Holder, to the extent provided herein.
2.04    Rate of Interest on, and Terms of, the Participations.  Subject to the provisions of this Agreement, from and after the Original Purchase Date, each Participation shall entitle the Holder thereof to (a) interest at the Applicable Interest Rate (as defined in the Loan Agreement) on its Participation and (b) its Percentage Share of any payments of principal collected on the Mortgage Loan, in each case net of any unpaid Costs and Expenses or required Servicing Advances.
SECTION 3     
 
APPOINTMENT OF AGENT; RESPONSIBILITIES OF AGENT
3.01    Appointment of Agent.  At all times from the date hereof throughout the term of the Mortgage Loan there shall be an Agent to administer and service (such servicing to include the duties of a “primary” servicer and those of a “special” servicer) the Mortgage Loan on the terms and conditions set forth herein and to take such actions in respect of the collateral for the Mortgage Loan as shall be specified herein and/or in the Loan Documents.  The initial Holders hereby appoint Lender as, and Lender hereby accepts such appointment and agrees to act as initial Agent hereunder on the terms and conditions set forth herein.  The Agent shall not be entitled to a fee for such services.
3.02    Authority of Agent.  Agent shall have such responsibilities as shall be set forth herein and as shall be delegated to Agent from time to time by the Holders pursuant to the terms and conditions of this Agreement.  By their execution of this Agreement, the Holders hereby authorize and direct Agent to act on their behalf in connection with the Mortgage Loan and the Loan Documents with respect to all rights and obligations of the originating lender pursuant to the terms of the Loan Agreement and other Loan Documents, subject to the limitations set forth in this 

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Agreement.  Each of the Holders shall be bound by any acts of Agent taken within the scope of the authority granted to Agent under this Agreement.  From and after the date hereof, any security granted pursuant to the Mortgages or in any other Loan Document, any hedging arrangements entered into by the Borrower under the terms of the Loan Documents and any and all actions taken by Agent under this Agreement, the Loan Agreement or any other Loan Document shall be for the benefit of the Holders.  The Holders hereby agree that Borrower shall be required to and shall deal only with Agent.
3.03    Servicing of the Mortgage Loan.
(a)    Agent agrees to serve as the initial Mortgage Loan servicer and to perform customary commercial mortgage loan servicing as provided in this Agreement and Accepted Servicing Practices.
(b)    The Agent shall distribute (or cause to be distributed) to each Holder, in accordance with the wiring instructions set forth on Exhibit C, on the Remittance Date, all payments due to such Holder under its Participation in accordance with Sections 4.01 and 4.02  hereof.
3.04    Workout.  Subject to the terms and conditions of this Agreement and the obligation to act in accordance with Accepted Servicing Practices, if Agent, in connection with a workout or proposed workout of the Mortgage Loan, proposes to modify the terms thereof such that (i) the Mortgage Loan Principal Balance is decreased, (ii) the interest rate applicable to the Mortgage Loan is reduced, (iii) payments of interest or principal on the Mortgage Loan are waived, reduced or deferred (other than a deferral of principal resulting solely from the extension of the Maturity Date of the Mortgage Loan by the Agent pursuant to the terms of this Agreement) or (iv) any other adjustment is made to any of the payment terms of the Mortgage Loan (other than any extension of the Maturity Date), such events shall require the consent of each Holder other than Related A-2 Holders.  The economic effect of all waivers, reductions or deferrals of amounts due on the Mortgage Loan attributable to such workout shall be allocated to each Participation on a Pro Rata and Pan Passu Basis, and shall be borne by the Holders of each such Participation on a Pro Rata and Pan Passu Basis; provided, however, that in such circumstance any Related A-2 Holder will instead be subordinated to, and will bear such economic effect prior to, any other Holders.
3.05    Servicing Advances; Costs and Expenses.
(a)    If Agent determines that a Servicing Advance is reasonably necessary to protect the value or security of the Mortgage Loan or the Mortgaged Property, it shall notify all 

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Holders promptly upon making such determination.  Such notice shall identify the purpose of the Servicing Advance, the total amount thereof, and each Holder’s Percentage Share of such Servicing Advance.  The Related A-2 Holders shall have the option, but not the obligation, to make such Servicing Advance in its entirety, but if Related A-2 Holders elect not to do so, each Non-Related Holder shall, within two 2 Business Days of receipt of such notice, remit its share (based on each Non-Related Holder’s Percentage Share relative to the other Non-Related Holders (such Holder’s “Non-Related Percentage Share”) of such Servicing Advance to Agent for application to the Servicing Advance.  No Holder shall be required to make a Servicing Advance if Agent determines that such Servicing Advance would be a Non-Recoverable Advance.
(b)    If Borrower fails to reimburse in a timely manner any Costs and Expenses incurred by Agent while acting within the scope of the authority granted to it under this Agreement in connection with the Mortgage Loan, the enforcement thereof or the realization of the security therefor, Agent may, at its option (i) withhold the amount thereof from amounts otherwise distributable to any Related A-2 Holder and/or (ii) request reimbursement from any Non-Related Holder of such Holder’s Non-Related Percentage Share of such Costs and Expenses.  Any portion of such Costs and Expenses paid by or withheld from a Non-Related Holder shall be reimbursable to it out of collections from or on behalf of Borrower allocated to such reimbursement or from amounts otherwise distributable to any Related A-2 Holder, based on each Non-Related Holder’s Non-Related Percentage Share.
3.06    Exercise of Remedies by Agent.
(a)    Each of the Holders acknowledges that subject to the terms of this Agreement Agent may exercise or refrain from exercising any rights that Agent may have hereunder.
(b)    Each Holder agrees that Agent to the extent consistent with the terms of this Agreement, shall have the sole and exclusive authority with respect to the administration of, and exercise of rights and remedies with respect to, the Mortgage Loan, including, without limitation, the sole and exclusive authority (in each case, subject to Accepted Servicing Practices and the terms and conditions set forth in this Agreement, including all consent rights of the Holders) to (i) modify or waive any of the terms of the Loan Documents, (ii) consent to any action or failure to act by the Borrower or any party to the Loan Documents, (iii) [intentionally omitted] (iv) take legal action to enforce or protect the Holders’ interests with respect to the Mortgage Loan, (v) refrain from exercising any powers or rights under the Loan Documents, including the right at any time to call or waive any Events of Default, and/or (vi) accelerate or refrain from accelerating the Mortgage Loan or institute any foreclosure action.  Except as otherwise expressly provided in this 

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Agreement, no Holder shall have any voting, consent or other rights whatsoever with respect to Agent’s administration of, or exercise of its rights and remedies with respect to, the Mortgage Loan and hereby presently and irrevocably assigns and conveys to Agent, such rights.
(c)    Agent shall not have any duty to any Holder in connection with the administration of the Mortgage Loan except that in servicing the Mortgage Loan, Agent is required to act in accordance with Accepted Servicing Practices and this Agreement.  Each Holder expressly and irrevocably waives for itself and any Person claiming through or under any such Holder any and all rights that it may have under Section 1315 of the New York Real Property Actions and Proceedings Law or the provisions of any similar law that purports to give a junior loan participant the right to initiate any loan enforcement or foreclosure proceedings.  Notwithstanding the foregoing, Agent (whether in its capacity as such or as Lender or Holder) shall have no liability to a Related A-2 Holder except as provided in Section 6.01.
3.07    Additional Servicing Matters.
(a)    Agent shall administer the Mortgage Loan in a manner consistent with this Agreement, and shall not be liable to any Holder with respect to anything Agent may do or omit to do in relation to the Mortgage Loan, other than as expressly set forth in this Agreement.  Without limiting the generality of the foregoing, Agent (i) may consult with legal counsel, accountants and other experts reasonably selected by Agent and may rely on the advice of legal counsel, accountants and other experts (including those retained by the Borrower) and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts, (ii) may rely upon any notice, consent, certificate, instrument or other written communication or telephone conversation which Agent believes to be genuine and correct or to have been signed, sent or made by the proper Person and shall incur no liability under or in respect of this Agreement by acting upon any such notice, consent, certificate, instrument, writing or telephone conversation, and (iii) makes no warranty or representation to any Holder and shall not be responsible to any Holder for any statements, warranties or representations (whether written or oral) made in or in connection with this Agreement, except the representations and warranties expressly made herein.
(b)    In the event that title to the Mortgaged Property is acquired for the benefit of the Holders in foreclosure, by deed in lieu of foreclosure or upon abandonment or reclamation from bankruptcy, the deed or certificate of sale shall be taken in the name of Agent or its nominee on behalf of the Holders.  The Agent shall manage, conserve, protect and operate each such Mortgaged Property for the Holders solely for the purpose of its prompt disposition and sale in accordance with Accepted Servicing Practices.

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(c)    Agent shall be entitled to enter into any agreement with any independent contractor performing services for it related to its duties and obligations hereunder for indemnification of Agent by such independent contractor, and nothing in this Agreement shall be deemed to limit or modify such indemnification.
(d)    Agent shall utilize reasonable efforts, consistent with Accepted Servicing Practices, to obtain an offer to purchase the Mortgaged Property that will maximize the proceeds of disposition to the Holders (as a collective whole) if and when Agent determines that such disposition would be in the best economic interest of the Holders (as a collective whole).  No offer to purchase the Mortgaged Property shall, however, be accepted unless all Holders (other than Related A-2 Holders) consent in writing to such sale.
(e)    If Agent requests the consent of the Holders (other than Related A-2 Holders) to a sale of all or a portion of the Mortgaged Property for which consent is required pursuant to Section 3.07(d) above, and one or more Holders (other than a Related A-2 Holder) does not consent to such sale (such circumstance, a “Sale Deadlock”), then either consenting Holder(s) or the non-consenting Holder(s) (but not a Related A-2 Holder) may initiate a Buy /Sell, as set forth below.
(i)    Any of such Holders, excluding a Related A-2 Holder, (the “Offeror”) may deliver notice (a “Buy/Sell Notice”) to the other Holders (other than a Related A-2 Holder)(the “Offerees”) making a buy/sell offer in respect of all, but not less than all, of the right, title and interest held by the Offerees in the applicable Participations or in property acquired as a result of the ownership of the Participations (including direct or indirect interests in the Mortgaged Property or other collateral acquired as a result of ownership of the Participations, and record title to all of the foregoing, collectively “Mortgage Loan Interests”) for a specified price (the “Buy/Sell Purchase Price”), which will be enumerated in such Buy/Sell Notice as a dollar price for each percentage point of ownership in the Mortgage Loan, and shall include unpaid accrued interest to but not including the date of purchase.
(ii)    Within ten (10) business days (the “Decision Period”) after delivery of the Buy/Sell Notice, each Offeree (shall deliver to the Offeror a written notice specifying its irrevocable election either (i) to purchase at the Buy/Sell Purchase Price all, but not less than all, of the Mortgage Loan Interests of the Offeror (and to be the “Purchasing Holder”), or (ii) sell at the Buy/Sell Purchase Price all, but not less than all, of its Mortgage Loan Interests to the Offeror (and to be the “Selling Holder”).  If the Offeree fails to deliver 

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such notice to the Offeror on or before the end of the Decision Period, the Offeree shall be deemed to have elected to be the Selling Holder.
(iii)    Any Related A-2 Holder shall be neither an Offeror nor an Offeree, and shall retain its A-2 Participation.
(iv)    The closing of the purchase and sale of a Holder’s Mortgage Loan Interests pursuant to the Buy/Sell Notice shall take place at 10:00 a.m., New York time, on the date specified by the Purchasing Holder, which date shall be no later than the tenth (10th) business day, and no earlier than the second (2nd) business day, after the end of the Decision Period (or on such other date as the Selling Holder and the Purchasing Holder mutually agree) (the “Closing Date”).  At the closing, (i) the Selling Holder(s) shall transfer and assign to the Purchasing Holder, without recourse, all of its Mortgage Loan Interests free and clear of all liens, claims, and encumbrances, and (ii) the Purchasing Holder shall pay the Buy/Sell Purchase Price by wire transfer of immediately available funds to the account designated by the Selling Holder.  At such closing, the Selling Holder shall execute and deliver such documents and instruments as the Purchasing Holder shall reasonably require in order to effect such transfer; provided that the Selling Holder shall not be required to give any representation or warranty other than as to (i) its ownership of its Mortgage Loan Interests, (ii) lack of liens, claims and encumbrances on its Mortgage Loan Interests, and (iii) authority to transfer its Mortgage Loan Interests.  Any such representations and warranties may be assigned by Purchasing Holder in connection with a resale of the purchased Mortgage Loan Interests or any interest therein.  Each Holder shall pay its own expenses incurred in connection with a transfer pursuant to this Section 3.07(e).
(v)    All interest and other charges accrued on the Selling Holder’s Mortgage Loan Interests for the period up to the Closing Date and paid under the related Loan Documents or deemed to have been paid out of income from the Mortgaged Property shall be for the account of the Selling Holder, regardless of whether received by the Closing Date.  All interest and other charges accruing after the Closing Date in respect of the Mortgage Loan Interests of the Selling Holder shall be for the account of the Purchasing Holder.
3.08    Actions Upon Actual Knowledge of Certain Matters.  Promptly after Agent acquires actual knowledge thereof, Agent will use reasonable efforts to give written notice to each Holder of any material Lien on the Mortgaged Property or any Event of Default under the Loan Agreement or any of the other Loan Documents, including, without, limitation, notice within two 

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(2) Business Days of if a regular monthly debt service payment is not made when due.  Agent agrees to consult with the Holders (other than Related A-2 Holders) in respect of any material remedial action to be taken in respect of any such Event of Default but shall not be required to follow any recommendations of the Holders except in the case of Unanimous Consent Decisions.
3.09    [Reserved].
3.10    Certain Actions.  If Agent shall have reasonable cause to believe that any legal action or proceeding related to the Mortgaged Property could, if adversely determined, result in a Material Adverse Effect, then, subject to any limitations set forth in the Loan Documents, Agent shall have the right to commence, appear in and defend such legal action or proceeding, and in connection therewith Agent may advance all reasonably necessary Costs and Expenses, for which Agent will be reimbursed in accordance with Section 3.05(b).  The parties hereto acknowledge and agree that Agent shall have the right, in its reasonable judgment, to determine whether a particular matter is “material” as such term is used in this Agreement and the Loan Documents.
3.11    Agent as Holder.  With respect to Agent’s ownership interest in the Mortgage Loan and the Loan Documents as A-1 Holder, Agent in its capacity as A-1 Holder shall have the rights and powers of a Holder under this Agreement and the Loan Documents as set forth herein and therein and may exercise the same as though it were not Agent hereunder.  Agent and its Affiliates may generally engage in any kind of business with Borrower, any of its Affiliates and/or subsidiaries and any Person who may do business with or own securities of Borrower, any of its Affiliates and/or subsidiaries, all as if the initial Holder were not Agent and without any duty to account therefor to the other Holders.
3.12    Change of Agent.  Lender may not resign as Agent except (i) with the consent of all Holders (if any) that are not Related A-2 Holders (unless such resignation is required by law or Lender’s institutional policy, in which case the successor Agent will be appointed by the Non-Related A-2 Holders) or (ii) by assignment of the rights and obligations of Agent in connection with the assignment of all or a portion of Participation A-1, in which case the successor Agent will be appointed by such assignee.  Upon appointment of a successor Agent in accordance with (i) or (ii) above, such successor agent shall succeed to the rights, power and duties of the “Agent” and the term “Agent” shall mean such successor agent effective upon its appointment, and the former Agent’s rights, power and duties as Agent shall be terminated, without any other or further act or deed on the part of such former Agent (except that the resigning or assigning Agent shall deliver any collateral for the Mortgage Loan then in its possession to the successor Agent).  The indemnity given any retiring Agent pursuant to this Agreement shall survive any resignation or assignment hereunder.  After any retiring Agent’s resignation or assignment hereunder as Agent, the 

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provisions of this Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent.  No Related A-2 Holder shall act as Agent.
SECTION 4     
 
COLLECTIONS; COLLECTION ACCOUNTS; PAYMENTS
4.01    Distributions.
(a)    Agent shall use reasonable efforts, consistent with Accepted Servicing Practices, to collect all payments called for under the terms and provisions of the Mortgage Loan.  Consistent with the foregoing, Agent may, in its discretion, waive any late payment charge or Default Interest, or both, in connection with any delinquent monthly debt service payment or any other Event of Default.
(b)    All amounts tendered by the Borrower or otherwise available for payment on the Mortgage Loan shall be applied and distributed by Agent as set forth in this Section 4.01 (and payments shall be made at such times as are set forth herein).  Payment shall first be made to Agent up to the amount of any unreimbursed Costs and Expenses paid by Agent with respect to the Mortgage Loan or the Mortgaged Property pursuant to this Agreement.  Any amounts paid by Borrower with respect to which Servicing Advances have been made, and any Default Interest, late payment charges, or other amounts paid by Borrower with as a result of its failure to comply with any term of the Loan Agreement, shall be applied to repay the Agent or the Holders, as applicable, for any unreimbursed Servicing Advances and Costs and Expenses; provided, however, that if the amount reimbursed by Borrower is insufficient to repay the Servicing Advances in full, then reimbursement to any Related A-2 Holder shall be subordinated to repayment of other Holders.
(c)    Agent shall make commercially reasonable efforts to collect all amounts due on the Mortgage Loan and to remit to each Holder its respective Percentage Share of such amounts (net of any expenses owed by the applicable Holder), each pursuant to the wire instructions provided by each Holder on Exhibit C hereto or in such other manner as is acceptable to each Holder; provided that any designated account is maintained at a commercial bank located in the United States of America.  Each payment interest and/or principal received from or on behalf of Borrower shall be distributed to the Holders no later than the Business Day following receipt thereof by Agent (each, a “Remittance Date”).

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4.02    Priority.  Unless an Event of Default shall have occurred and be continuing on the Mortgage Loan, payments of interest, principal, and other amounts due under the Mortgage Loan shall be distributed among Holders on a Pro Rata and Pari Passu Basis, and no portion of any Participation shall have priority or preference over any portion of any other Participation or security therefor, except as provided in this Agreement.  If an Event of Default shall have occurred and be continuing on the Mortgage Loan, amounts available for distribution thereafter, including the net proceeds of the collateral securing the Mortgage Loan, the net proceeds of casualty and title insurance policies and awards from condemnation shall be applied to the Participations, other than those held by Related A-2 Holders, on a Pro Rata and Pan Passu Basis and any remainder shall be distributed pro rata to the Related A-2 Holders.  If Agent or any nominee thereof acquires title to the Mortgaged Property, then all amounts derived from the operation and disposition of the Mortgaged Property shall be allocable among the Holders as set forth in the immediately preceding sentence.  Notwithstanding the foregoing, the rights of each Holder to distributions of any nature with respect to its Participation shall be subject to the rights of the Agent to payments and reimbursements pursuant to and in accordance with the terms of this Agreement.  Amounts applied to any particular Participation or allocated to any particular Holder in accordance with this Section 4 will be applied to interest, principal and other amounts due in respect of the Mortgage Loan in accordance with the Loan Documents and this Agreement.
4.03    Return of Funds.  If Agent holding or having distributed any amount received or collected in respect of the Mortgage Loan determines, or a court of competent jurisdiction orders, at any time that any amount received or collected in respect of the Mortgage Loan must, pursuant to any insolvency, bankruptcy, fraudulent conveyance, preference or similar law, be returned to the Borrower or paid to any Holder or any other Person, then, notwithstanding any other provision of this Agreement, Agent shall not be required to distribute any portion thereof to any Holder and any such Holder shall promptly on demand repay to Agent the portion thereof which shall have been theretofore distributed to the related Holder, together with interest thereon at such rate, if any, as Agent shall have been required to pay to the Borrower, the Holders or such other Person with respect thereto.  Each Holder agrees that if at any time it shall receive from any sources whatsoever any payment on account of the Mortgage Loan in excess of its distributable share thereof, it will promptly remit such excess to the Agent.  The Agent shall have the right to offset any amounts due hereunder from any Holder with respect to the Mortgage Loan against any future payments due to such Holder under the Mortgage Loan, provided, that the obligations of each Holder under this Section 4.03  are separate and distinct obligations from one another.  The obligations of each Holder under this Section 4.03 constitute absolute, unconditional and continuing obligations.

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SECTION 5     
 
VOTING; UNANIMOUS CONSENT
5.01    Unanimous Consent.  Agent shall obtain the written consent of each Holder (other than a Related A-2 Holder), prior to taking any of the following actions (each, a “Unanimous Consent Decision”):
(a)    any modification or waiver of a monetary term of the Mortgage Loan (except that Agent may waive any or all default interest and/or late fees in its sole discretion);
(b)    any modification or waiver of a material non-monetary term of the Mortgage Loan;
(c)    any modification or waiver that would result in (i) the extension (other than (A) in accordance with the Loan Documents or (B) for a period of no more than thirty (30) days) or acceleration of the Maturity Date, (ii) a reduction in the interest rate or the monthly debt service payment or Prepayment Premium payable on the Mortgage Loan or a loss of the right to receive any such payment of principal or interest (including, without limitation, any accrued interest) or any fee (other than one month’s late charge), (iii) a deferral or forgiveness of interest on or principal of the Mortgage Loan, or (iv) a discounted pay-off of the Mortgage Loan, or (v) an increase or reduction in the principal amount of the Mortgage Loan (other than an increase as a result of Servicing Advances);
(d)    any waiver of an Event of Default;
(e)    except as provided in Section 5.03 below, to accelerate the Maturity Date, commence foreclosure proceedings, accept the conveyance of title to the Mortgaged Property in lieu of foreclosure or otherwise, commence any proceedings to collect any amounts owing or claimed to be owing under any guaranty, appoint or request the appointment of a receiver for the Mortgaged Property, collect rents from the Mortgaged Property, take possession of the Mortgaged Property or otherwise exercise any enforcement remedies;
(f)    any release of the Borrower or any guarantor from liability with respect to the Mortgage Loan or any modification to, waiver of any provision of, or release of, any guaranty or indemnity agreement;

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(g)    any substitution or release of collateral for the Mortgage Loan, except as permitted by the Loan Documents without Holders’ consent;
(h)    any modification to the number or percentage of Holders required to make any determinations or receive any rights hereunder;
(i)    subordination of the Liens created by the Loan Documents to any other liens securing indebtedness of Borrower or otherwise; and
(j)    consent to any senior or subordinate financing and any loan that may replace it;
(k)    any waiver of or determination not to enforce a “due-on-sale” or “due-on-encumbrance” clause or any other restriction on the sale or transfer of the Mortgaged Property or any portion thereof (but not any sale or transfer of any REO Property) or on any transfer of any direct or indirect ownership interest in the Mortgage Loan Borrower;
(l)    the voting on any plan of reorganization, restructuring or similar plan in the bankruptcy of the Mortgage Loan Borrower; and
(m)    any other matter for which the approval or consent of the A-2 Holder is required hereunder, including, without limitation, the matters described in Section 3.07(d) hereof.
5.02    Action Notice.
(a)    Prior to taking any action or making any decision with respect to a Unanimous Consent Decision, Agent shall notify each Holder entitled to consent to such decision in writing of the proposed action (such notice, an “Action Notice”).  If the Holder fails to notify the Agent of its approval or disapproval of any such proposed action within ten (10) Business Days after delivery to the Holder by Agent of an Action Notice (which notice shall contain a legend, in conspicuous boldface type, substantially similar to the following: “THIS IS A REQUEST FOR ACTION APPROVAL.  IF THE HOLDER FAILS TO APPROVE OR DISAPPROVE THE ENCLOSED ACTION WITHIN TEN (10) BUSINESS DAYS, SUCH ACTION MAY BE DEEMED APPROVED.”), then upon the expiration of such ten (10) Business Day period, Agent shall contact the Holder by telephone or email at the notice address and, if no response to such telephone call or email is received within one (1) Business Day after such contact, such action by the Agent shall be deemed to have been approved by the Holder.

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(b)    In addition, unless there is at such time no Holder entitled to consent to the proposed Unanimous Consent Decision (other than A-1 Holder, and assuming that no portion of Participation A-1 has been transferred), Agent shall prepare a summary of such proposed action and an analysis of whether or not such action is reasonably likely to produce a greater recovery on a present value basis than not taking such action, setting forth the basis on which Agent made such determination, and shall provide to each Holder copies of such summary and other material documents and items reasonably necessary to make such determination by hard copy or electronic means on a timely basis, but in any event concurrently with, or prior to, the delivery of the Action Notice pursuant to Section 5.02(a).
5.03    Enforcement.  If an Event of Default shall occur and be continuing, and if at such time there are Holders of Participations other than Agent and Related A-2 Holders, Agent shall promptly prepare a summary of its proposed action in respect of such Event of Default and an analysis of whether or not such action is reasonably likely to produce a greater recovery on a present value basis than not taking such action, setting forth the basis on which Agent made such determination, and shall provide to each Holder (other than any Related A-2 Holder) copies of such summary by hard copy or electronic means on a timely basis.  If any such proposed action is disapproved by the any Holder (other than any Related A-2 Holder), Agent shall propose an alternate action (based on any counter-proposals received from the dissenting Holder or based on any alternate course of action that Agent may deem appropriate) until the approval of the other Holders (other than any Related A-2 Holder) is obtained; provided that if Agent and the Holders (other than any Related A-2 Holder) do not agree on a proposed course of action with respect to any Event of Default within the earlier of (i) thirty (30) days after the date on which Agent first proposed a foreclosure or other action pursuant to this Section 5.03 and (ii) ninety (90) days after the occurrence of such Event of Default, then Agent shall commence, prosecute and consummate a foreclosure action under the Loan Documents; provided that Agent and the other Holders (other than any Related A-2 Holder) may at any time agree on a different course of action.
5.04    Disputes.
(a)    Notwithstanding anything herein to the contrary, no advice, direction or objection from or by the Holders or any Holder, as contemplated by Section 5.01, may (and Agent shall ignore and act without regard to any such advice, direction or objection that Agent has determined, in its reasonable, good faith judgment, will) require or cause Agent to take any action or refrain from taking any action if taking or not taking such action, respectively, would violate any law of any applicable jurisdiction or violate any provisions of this Agreement (in the latter case, unless all parties, other than any Related A-2 Holder, agree to waive such provision).

23

(b)    Without limiting the obligations of Agent hereunder, no Holder shall owe any fiduciary duty to Agent or any other Holder.  The Holders will not have any liability to any non-consenting Holder (or non-voting Holder) for any action taken, or for refraining from the taking of any action pursuant to this Agreement or the giving of any consent or for errors in judgment.  By its acceptance of a Participation, each Holder will be deemed to have confirmed its understanding that (i) any Holders entitled to vote may vote in favor of, or refrain from voting in favor of, actions that favor the interests of such Holders or its Affiliates over the other Holders, (ii) a Holder may have special relationships and interests that conflict with the interest of the other Holders and each Holder will be deemed to have agreed to take no action against another Holder or any of its officers, directors, employees, principals or agents as a result of such a special relationships or conflicts, (iii) no Holder shall be liable by reason of its having acted or refrained from acting solely in its interest or in the interest of its Affiliates and (iv) no Holder shall be liable by reason of its having acted or refrained from acting solely in the interests of the related Holder or its Affiliates.
SECTION 6     
 
LIMITATION OF LIABILITY; INDEMNIFICATION
6.01    Limitation of Liability of Agent.  Agent, whether in such capacity or as Lender or Holder of Participation A-1, shall not have any liability to any Holder except with respect to losses actually suffered due to its (i) gross negligence, (ii) willful misconduct, (iii) failure to distribute to such Holder amounts required to be distributed to it under this Agreement and (iv) breach of any of its representations and warranties set forth in Section 7.01 (“Excepted Matters”).  Each Holder acknowledges that, subject to the terms of this Agreement, Agent has the rights set forth in this Agreement as rights of Agent, as Lender and A-1 Holder and may exercise, or omit to exercise, any rights that it may have under this Agreement in a manner that may be adverse to the interests of the other Holders, so long as such actions, if taken as Agent, are in accordance with Accepted Servicing Practices and the terms of this Agreement.  Notwithstanding the foregoing, however, Agent shall have no liability to any Related A-2 Holder other than for Excepted Matters (iii) and (iv).
6.02    Indemnification of Agent by Holders.  Each Holder severally agrees to indemnify Agent (to the extent not promptly reimbursed by Borrower) from and against such Holder’s Percentage Share of any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against Agent in any way relating to or arising out of the Loan Documents or any action taken or omitted by Agent under the Loan Documents; provided that no 

24

Holder shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from any of the Excepted Matters, as established by a final, non-appealable judgment by a court of competent jurisdiction, provided, however, that Agent shall have no liability to any Related A-2 Holder for any decision, action or failure to act other than a failure to distribute to such Related A-2 Holder amounts required hereby to be distributed to it.  Without prejudice to the survival of any other agreement of any Holder hereunder, the agreement and obligations of each Holder contained in this Section 6.02 shall survive the payment in full of principal, interest and all other amounts payable hereunder and under the other Loan Documents.
SECTION 7     
 
REPRESENTATIONS AND WARRANTIES
7.01    Representations of Lender.  Lender shall be liable to the A-2 Holder for its representations and warranties pursuant to this Section 7.01 notwithstanding any other limitations on its liability in this Agreement.  Lender, as originating lender, Agent, and Initial A1 Holder, represents and warrants to Initial A-2 Holder that the execution, delivery and performance of this Agreement is within its corporate powers, has been duly authorized by all necessary corporate action, and does not contravene Lender’s charter or any law or contractual restriction binding upon Lender, and that this Agreement is the legal, valid and binding obligation of Lender enforceable against the Lender in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), and except that the enforcement of rights with respect to indemnification and contribution obligations may be limited by applicable law.  Lender further represents and warrants to each initial Holder, that:
(a)    Lender is duly organized, validly existing and in good standing under the laws of all jurisdictions where so required to be.
(b)    Immediately prior to the execution and delivery of this Agreement, Lender was the sole legal owner and holder of the Mortgage Loan, free and clear of any lien, pledge, hypothecation, encumbrance or other adverse interest in the Mortgage Loan.
(c)    Lender has the right under its organizational documents and applicable law without the consent of any third party to enter into this Agreement and to sell the A-2 Participation to the Initial A-2 Holder.

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(d)    Lender has not dealt with any broker, investment banker, agent or other person, other than Initial A-2 Holder and its Affiliates, that may be entitled to any commission or compensation in connection with the consummation of any of the transactions contemplated hereby.
(e)    Exhibit B attached hereto accurately sets forth, as of the date hereof, the outstanding balance of principal and accrued interest of the Mortgage Loan and each Participation, and Exhibit E sets forth, as of the date hereof, the holder and contact information for Lender / Initial A-1 Holder.
7.02    Representations of Initial A-2 Holder.  The Initial A-2 Holder, as of the date hereof, hereby represents and warrants to, and covenants with Lender, as originating lender, Agent, and Initial A-1 Holder as to itself only, that:
(a)    It is duly organized, validly existing and in good standing under the laws of the State of Delaware.
(b)    The execution and delivery of this Agreement by Initial A-2 Holder, and performance of, and compliance with, the terms of this Agreement by Initial A-2 Holder, will not violate its organizational documents or constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, or result in the breach of, any material agreement or other instrument to which it is a party or that is applicable to it or any of its assets, in each case which materially and adversely affect its ability to carry out the transactions contemplated by this Agreement.
(c)    A-2 Holder has the right under its organizational documents and applicable law without the consent of any third party to enter into this Agreement and to purchase the A-2 Participation.
(d)    This Agreement is the legal, valid and binding obligation of A-2 Holder enforceable against A-2 Holder in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), and except that the enforcement of rights with respect to indemnification and contribution obligations may be limited by applicable law.
(e)    A-2 Holder is purchasing the A-2 Participation for its own account.

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(f)    A-2 Holder has not dealt with any broker, investment banker, agent or other person, other than Lender, Agent and their Affiliates, that may be entitled to any commission or compensation in connection with the consummation of any of the transactions contemplated hereby.
7.03    Independent Analyses of the Initial Holders.  Subject to the provisions of Sections  7.01 and 7.02, each Holder acknowledges that it has, independently and without reliance upon Lender, the Agent or any of their Affiliates and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to purchase the related Participation.  Except as expressly provided in this Agreement, each Holder hereby acknowledges that none of Lender, Agent or any Holder, subject to the representations and warranties set forth in this Agreement, shall have any responsibility for (i) the collectability of the Mortgage Loan, (ii) the validity, enforceability or legal effect of any of the Loan Documents or the title insurance policy or policies or any survey furnished to Lender in connection with the origination of the Mortgage Loan, (iii) the validity, sufficiency or effectiveness of the lien created or to be created by the Loan Documents, or (iv) the financial condition of the Borrower.
SECTION 8     
 
TRANSFERS
8.01    Transfer of Participations.
(a)    No Holder may sell, assign, transfer, pledge, syndicate, hypothecate, contribute, encumber, subparticipate or otherwise dispose of (each, a “Transfer”) any interest in its Participation except in accordance with the terms of this Agreement.  Any assignee of an interest (an “Assignee”), as a condition to such Transfer, shall assume all of the obligations of the transferring Holder pursuant to this Agreement and the Loan Documents, and shall make the representations and warranties made by the initial Holder of such Participation pursuant to this Agreement, each with respect to the Percentage Share that it is purchasing.
(b)    Lender shall only transfer its interest hereunder as permitted pursuant to Article XI of the Loan Agreement.  A-2 Holder shall not transfer its interest hereunder without the consent of Agent, which consent shall not be unreasonably withheld or delayed.
(c)    Notwithstanding the rights to Transfer contained herein, no Related A-2 Holder shall have any right to vote on or consent to any issue for which a voting, consent, or similar right is otherwise provided hereunder.

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(d)    Notwithstanding the foregoing, Initial A-2 Holder shall be permitted to sell all or any portion of the Participation  A-2 (such participation interest, the “Subject Interest”) to one or more Qualified Transferees.  In no way limiting the foregoing, if Initial A-2 Holder wishes to sell the Subject Interest for a price that is below the par value of the Participation A-2 but not less than 85% of the par value of the Participation A-2, it shall be permitted to do so, provided Initial A-2 Holder shall first notify Lender thereof and shall grant Lender a period of ten (10) Business Days in which to offer to acquire the Subject Interest by delivering written notice thereof, which notice shall include the price Lender is offering to pay for such Subject Interest.  If Initial A-2 Holder wishes to sell the Subject Interest to Lender at the price offered by Lender therefor, then Initial A-2 Holder shall sell, and Lender shall buy, the Subject Interest for such price within ten (10) Business Days thereafter.  If Initial A-2 Holder does not wish to sell the Subject Interest to Lender at the price offered by Lender, then Participation Holder will have the right, for a period of thirty (30) days thereafter, to sell the Subject Interest to one or more Qualified Transferees for a price that is greater than the price offered by Lender.  Following the expiration of such 30-day period, Initial A-2 Holder shall be required to re-offer the Subject Interest to Lender prior to any sale of such Subject Interest for a price that is below the par value of the Participation A-2 but not less than 85% of the par value of the Participation A-2.  In addition, if Initial A-2 Holder wishes to sell the Subject Interest for a price that is less than 85% of the par value of the Participation A-2, it shall be permitted to do so, provided Initial A-2 Holder shall first enter into and deliver to Lender a binding agreement with an unaffiliated third-party Qualified Transferee for such sale (the “Third Party Agreement”), which Third Party Agreement shall be terminable in the event Lender exercises its right of first refusal described below with respect to such sale.   Following its receipt of the Third Party Agreement, Lender shall have a period of ten (10) Business Days in which to offer to acquire the Subject Interest on the same terms and conditions set forth in the Third Party Agreement and, if Lender so elects, then Initial A-2 Holder shall sell, and Lender shall buy, the Subject Interest for the price set forth in the Third Party Agreement within ten (10) Business Days thereafter.  If Lender does not wish to acquire the Subject Interest on the same terms and conditions set forth in the Third Party Agreement, then Initial A-2 Holder will have the right to sell the Subject Interest pursuant to the Third Party Agreement.
8.02    Certain Rights and Restrictions.
(a)    Notwithstanding Section 8.01, each of the Holders agrees that each Transfer to be made by such Holder is subject to the following restrictions: (i) all such Transfers shall be made upon prior written notice to Agent and the other Holders, and (ii) the transferor and transferee shall execute an assignment and assumption agreement whereby such transferee is assigned and assumes all or a ratable portion, as the case may be, of the obligations of the transferring Holder hereunder with respect to its Participation from and after the date of such assignment (or, in the 

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case of a pledge, collateral assignment or other encumbrance of a Participation, solely as security for a loan to the related Holder, made by a third-party, whereby such Holder remains fully liable under this Agreement, such third party executes an agreement that such Holder shall be bound by the terms and provisions of this Agreement and the obligations of the related Holder hereunder on and after the date on which such Holder succeeds to the rights of the related Holder by foreclosure or otherwise).
(b)    Upon the consummation of a Transfer by way of assignment of 100% of its Percentage Share of Participation, the transferee shall be a Holder with respect to the applicable Participation for all purposes under this Agreement with all of the rights, interests and obligations related thereto and the transferring Person shall be released from all liability arising under this Agreement with respect to the related Participation (or the portion thereof that was the subject of such Transfer), arising after the effective date of such Transfer.
(c)    If a Holder Transfers by assignment less than 100% of its Percentage Share in a Participation, then the transferee shall be a Holder with respect to the applicable Participation for all purposes under this Agreement with all of the rights, interests and obligations related thereto except that no transferee that is a Related A-2 Holder shall have any right to vote on any decision, including any Unanimous Consent Decision or any other right or priority that, pursuant to this Agreement, is not granted to a Related A-2 Holder.
SECTION 9     
 
MISCELLANEOUS
9.01    No Creation of a Partnership or Exclusive Purchase Right.  Nothing contained in this Agreement, and no action taken pursuant hereto, shall be deemed to constitute the arrangement between Agent and the Holders of a partnership, association, joint venture or other entity.  None of the Holders shall have any obligation whatsoever to offer to any other Holder the opportunity to purchase notes or participation interests relating to any future loans originated by such Holder or any of its Affiliates, and if such Holder chooses to offer to any other Holder the opportunity to purchase notes or any participation interests in any future mortgage loans originated by such Holder or its Affiliates, such offer shall be at such purchase price and interest rate as such Holder chooses, in its sole and absolute discretion.  No Holder shall have any obligation whatsoever to purchase from any other Holder any notes or participation interests in any future loans originated by any other Holder or any of its Affiliates.

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9.02    Not a Security.  No Participation shall be deemed to be a security within the meaning of the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.
9.03    Other Business Activities of Agent and Holders.  Agent and each Holder acknowledge that Agent and each other Holder, respectively, may make loans or otherwise extend credit to, and generally engage in any kind of business with, any Borrower Related Party, and receive payments on such other loans or extensions of credit to any Borrower Related Party and otherwise act with respect thereto freely and without accountability in the same manner as if this Agreement and the transactions contemplated hereby were not in effect.
9.04    No Pledge or Loan.  This Agreement shall not be deemed to represent a pledge of any interest in the Mortgage Loan by Lender to any other Holder, or a loan from any Holder to Lender. If any such property or the proceeds thereof shall be applied in reduction of the Mortgage Loan Principal Balance, then each Holder shall be entitled to receive its share of such application in accordance with the terms of this Agreement.
9.05    Governing Law; Waiver of Jury Trial.  THIS AGREEMENT AND THE RESPECTIVE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CHOICE OF LAW RULES THEREOF OTHER THAN THE PROVISIONS OF SECTION 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS GUARANTEE.  EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.
9.06    Modifications.  This Agreement shall not be modified, cancelled or terminated except by an instrument in writing signed by the parties hereto.  The party seeking modification of this Agreement shall be solely responsible for any and all reasonable and customary expenses that may arise in order to modify this Agreement.
9.07    Successors and Assigns; Third Party Beneficiaries.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns; provided, that no successors or assigns of Lender shall have any liability for a breach of representation or warranty set forth in this Agreement.  None of the provisions of this Agreement shall be for the benefit of or enforceable by any Person not a party hereto.

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9.08    Counterparts. This Agreement may be executed in any number of counterparts and all of such counterparts shall together constitute one and the same instrument.
9.09    Captions.  The titles and headings of the paragraphs of this Agreement have been inserted for convenience of reference only and are not intended to summarize or otherwise describe the subject matter of the paragraphs and shall not be given any consideration in the construction of this Agreement.
9.10    Notices.  All notices required hereunder shall be given by (i) telephone (confirmed in writing) or shall be in writing and personally delivered, (ii) sent by facsimile transmission or electronic mail if the sender on the same day sends a confirming copy of such notice by reputable overnight delivery service (charges prepaid), (iii) reputable overnight delivery service (charges prepaid) or (iv) certified United States mail, postage prepaid return receipt requested, and addressed to the respective parties at their addresses set forth on Exhibit E hereto, or at such other address as any party shall hereafter inform the other party by written notice given as aforesaid.  All written notices so given shall be deemed effective upon receipt or, if mailed, upon the earlier to occur of receipt or the expiration of the fourth (4th) day following the date of mailing.
9.11    Reports to the Holders.  Agent shall provide to each Holder, other than a Related A-2 Holder (a) a summary of the current status of principal and interest payments on the Mortgage Loan, (b) copies of the Borrower’s current financial statements, to the extent in its possession, (c) copies of all reports, statements, certificates, budgets and other information delivered by the Borrower under the Loan Documents, (d) current information, if any, as to the value of the Mortgaged Property, to the extent in its possession, (e) agreements that govern the administration of the Mortgage Loan, (f) copies of any default or acceleration notices sent to the Borrower with respect to the Mortgage Loan and all material correspondence related thereto, (g) notices delivered to Agent by the Borrower, and (h) other information with respect to the Borrower or the Mortgage Loan, as may be reasonably requested by any such Holder, to the extent in the Agent’s possession or reasonably obtainable, in each case at the sole cost and expense of the requesting Holder (with respect to all third party out-of-pocket and the reasonable administrative and photocopying costs).
9.12    Custody of Loan Documents.  The originals of all of the Loan Documents will be held by Agent on behalf of all of the Holders.
9.13    Registration of Transfers.  Agent shall maintain a register on which it will record the names and addresses of, and wire transfer instructions for, the Holders from time to time, to the extent such information is provided in writing to it by the Holders.  Any transfer of a Participation hereunder shall be recorded on such register.

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9.14    Termination.  This Agreement and the respective obligations and responsibilities under this Agreement of the parties hereto shall terminate upon (a) mutual agreement by the parties hereto, evidenced in writing; (b) thirty (30) days after all Participations are paid in full; or (c) payment (or provision for payment) to the Holders of all amounts held by or on behalf of Agent, as applicable, to be so paid on the last Remittance Date following final payment or other liquidation (or any advance with respect thereto) of the Mortgage Loan or the Mortgaged Property; provided, however, that in no event shall the arrangement created hereby continue beyond the expiration of 21 years from the death of the last survivor of the descendants of Joseph P. Kennedy, the late Ambassador of the United States to the Court of St. James, living on the date hereof
9.15    Withholding Taxes.
(a)    If Agent or the Borrower shall be required by law to deduct and withhold Taxes from interest, fees or other amounts payable to any Holder with respect to the Mortgage Loan as a result of such Holder constituting a Non-Exempt Person, Agent shall be entitled to do so with respect to such Holder’s interest in such payment (all withheld amounts being deemed paid to such Holder), provided that Agent shall furnish any such Holder with a statement setting forth the amount of Taxes withheld, the applicable rate and other information which may reasonably be requested for purposes of assisting such Holder to seek any allowable credits or deductions for the Taxes so withheld in each jurisdiction in which such Holder is subject to tax.
(b)    Each other Holder shall and hereby agrees to indemnify Agent against and hold Agent harmless from and against any Taxes, interest, penalties and attorneys’ fees and disbursements arising or resulting from any failure of Agent to withhold Taxes from payment made to any Holder in reliance upon any representation, certificate, statement, document or instrument made or provided by such Holder to Agent in connection with the obligation of Agent to withhold Taxes from payments made to such Holder, it being expressly understood and agreed that (i) Agent shall be absolutely and unconditionally entitled to accept any such representation, certificate, statement, document or instrument as being true and correct in all respects and to fully rely thereon without any obligation or responsibility to investigate or to make any inquiries with respect to the accuracy, veracity, correctness or validity of the same and (ii) any other Holder shall, upon request of Agent and at its sole cost and expense, defend any claim or action relating to the foregoing indemnification using counsel reasonably satisfactory to Agent.
(c)    Each Holder represents to Agent (for the benefit of the Borrower) that it is not a Non-Exempt Person and that neither Agent nor the Borrower is obligated under applicable law to withhold Taxes on sums paid to it with respect to the Mortgage Loan or otherwise pursuant 

32

to this Agreement.  Contemporaneously with the execution of this Agreement and from time to time as necessary during the term of this Agreement, each other Holder shall deliver to Agent, evidence satisfactory to Agent substantiating that it is not a Non-Exempt Person and that Agent is not obligated under applicable law to withhold Taxes on sums paid to it with respect to the Mortgage Loan or otherwise under this Agreement.  Without limiting the effect of the foregoing, (a) if any other Holder is created or organized under the laws of the United States, any state thereof or the District of Columbia, it shall satisfy the requirements of the preceding sentence by furnishing to Agent an Internal Revenue Service Form W-9 and (b) if such Holder is not created or organized under the laws of the United States, any state thereof or the District of Columbia, and if the payment of interest or other amounts by the Borrower is treated for United States income tax purposes as derived in whole or part from sources within the United States, such other Holder shall satisfy the requirements of the preceding sentence by furnishing to Agent Internal Revenue Service Form W-8ECI or Form W-8BEN, or successor forms, as may be required from time to time, duly executed by such other Holder, as evidence of such other Holder’s exemption from the withholding of United States tax with respect thereto.  Agent shall not be obligated to make any payment hereunder to any Holder in respect of its Participation or otherwise until such other Holder shall have furnished to Agent the requested forms, certificates, statements or documents.
[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

33

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
ORIGINATING LENDER, AGENT AND 
A-1 HOLDER:
BANK OF CHINA, NEW YORK BRANCH
By:    /s/ Raymond L. Qiao     
    Name: Raymond L. Qiao 
    Title: Chief Lending Officer
Signatures continue on following page

S-1

INITIAL A-2 HOLDER:
ALEXANDER’S OF REGO PARK II 
PARTICIPATING LENDER LLC
By:    /s/ Alan J. Rice     
    Name: Alan J. Rice
    Title: Authorized Signatory

S-2

EXHIBIT A
Original Loan Documents
		
	1.
	Amended and Restated Loan and Security Agreement

		
	2.
	Second Amended and Restated Promissory Note

		
	3.
	Second Amended and Restated Mortgage Assignment of Leases and Rents and Security Agreement

		
	4.
	Section 255 Affidavit (Mortgage)

		
	5.
	Amended and Restated Assignment of Leases and Rents

		
	6.
	Section 255 Affidavit (ALR)

		
	7.
	Amended and Restated Guaranty of Recourse Carveouts

		
	8.
	Amended and Restated Environmental Indemnity Agreement

		
	9.
	Amended and Restated Assignment, Consent and Subordination of Management Agreement

		
	10.
	Amended and Restated Assignment of Contracts, Licenses and Permits

		
	11.
	UCC-1 Financing Statements - Queens County, NY

		
	12.
	UCC-1 Financing Statements - Delaware Secretary of State

		
	13.
	Settlement Statement

		
	14.
	Certificate of Mortgage Borrower

		
	15.
	W-9 Form

Exhibit A

EXHIBIT B
OUTSTANDING PRINCIPAL BALANCE AND ACCRUED INTEREST
Amounts as of December 12, 2018, before application of payment due on such date.
Outstanding Principal:    $252,543,606.53 
Accrued Interest 
11/30/18 through 12/12/18    $353,109.00

Exhibit B

EXHIBIT C

Exhibit C – Page 1

Exhibit C – Page 2

EXHIBIT D
FORM OF PARTICIPATION CERTIFICATE
(see below)

Exhibit D – Page 1

AMENDED AND RESTATED 
PARTICIPATION A-1 CERTIFICATE
CERTIFICATE NO. A-1(2)
Evidencing a participation interest created by the Amended and Restated Participation Agreement (as defined below) in the Mortgage Loan in the original principal amount specified below originally made by Bank of China, New York Branch, to Rego II Borrower LLC, a Delaware limited liability company on December 12, 2018.
	
		
	Initial First Mortgage Loan Principal Balance:
	$275,000,000.00

	Mortgage Loan Principal Balance as of December 12, 2018
	$252,543,606.53

	Percentage Interest in Mortgage Loan Represented by Participation A- 1:
	22.5054%

	Initial Principal Balance of this  
Participation A-1 Certificate:
	$56,835,869.68

	Participation A-1 Interest Rate
	LIBOR plus 1.35%

	Percentage Interest in Participation A-1 represented by this Certificate
	100%

THIS CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS PARTICIPATION A-1 CERTIFICATE WITHOUT SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION WHICH DOES NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE PROVISIONS OF SECTION 8 OF THE PARTICIPATION AGREEMENT (AS DEFINED HEREIN).

Exhibit D – Page 2

WITHOUT LIMITING ANY OF THE OBLIGATIONS OF ANY OF THE PARTIES UNDER THE PARTICIPATION AGREEMENT, THIS PARTICIPATION A-1 CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR AN INTEREST IN BANK OF CHINA, NEW YORK BRANCH, OR ANY OF ITS AFFILIATES. NEITHER THIS PARTICIPATION A-1 CERTIFICATE NOR THE MORTGAGE LOAN IS GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES OR ANY OTHER PERSON. DISTRIBUTIONS IN REDUCTION OF THE PRINCIPAL BALANCE OF THIS PARTICIPATION A-1 CERTIFICATE MAY BE MADE AS SET FORTH IN THE PARTICIPATION AGREEMENT. ACCORDINGLY, THE OUTSTANDING PRINCIPAL BALANCE OF THIS PARTICIPATION A-1 CERTIFICATE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE.
This certifies that BANK OF CHINA, NEW YORK BRANCH is the registered owner of 100% of Participation A-1 in the Mortgage Loan created pursuant to the Amended and Restated Participation Agreement dated as of December 12, 2018 (as amended, restated, supplemented, or otherwise modified from time to time, the “Participation Agreement”), among BANK OF CHINA, NEW YORK BRANCH, as Agent, Lender, and Initial A-1 Holder, and ALEXANDER’S OF REGO PARK II PARTICIPATING LENDER LLC as Initial A-2 Holder.
This Participation A-1 Certificate is subject to the terms, provisions and conditions of the Participation Agreement, as to which the Holder of this Participation A-1 Certificate, by virtue of the acceptance hereof, assents and by which such Holder is bound. To the extent not defined herein, capitalized terms used herein have the respective meanings assigned in the Participation Agreement.
The ownership of an interest in Participation A-1 shall be registered on a record of ownership maintained by Agent on behalf of Lender as holder of legal title to the Mortgage Loan. The right to the principal of, and stated interest on, this Participation A-1 Certificate may be transferred only if the transfer is registered on such record of ownership and the transferee is identified as the owner of an interest in the obligation. Agent shall be entitled to treat the registered holder of this Participation A-1 Certificate as the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or other claim or interest in this Participation A-1 Certificate on the part of any other person or entity.
On each Remittance Date, Agent shall distribute to the Person in whose name this Participation A-1 Certificate is registered at the close of business on the last Business Day of the month immediately preceding the month of such distribution (the “Record Date”) amount required to be distributed to the Participation A-1 Holder on such date pursuant to Section 4 of the 

Exhibit D – Page 3

Participation Agreement. All distributions made under the Participation Agreement will be made by wire transfer in immediately available funds to the account of the Person entitled thereto at a bank or other entity having appropriate facilities therefor, if such Participation A-1 Holder shall have provided the Agent with wiring instructions no later than five (5) Business Days prior to the Remittance Date for such distribution (which wiring instructions may be in the form of a standing order applicable to all subsequent distributions as well), or otherwise by check mailed to the address of such Participation A-1 Holder appearing in the records of Agent. Notwithstanding the above, the final distribution on this Participation A-1 Certificate will be made after due notice by Agent of the pendency of such distribution and only upon presentation and surrender of this Participation A-1 Certificate at the offices of Agent or such other location as may be specified in such notice.
Unless this Participation A-1 Certificate has been executed by the Holder of legal title to the Mortgage Loan, by manual signature, this Participation A-1 Certificate shall not be entitled to any benefit under the Participation Agreement or be valid for any purpose.
The registered Holder hereof, by its acceptance hereof, agrees that it will look solely to the Mortgage Loan (to the extent of its rights therein), for distributions hereunder. The foregoing sentence is not intended to conflict with any rights granted to Holders under the Participation Agreement.
This Participation A-1 Certificate shall be construed in accordance with the internal laws of the State of New York applicable to agreements made and to be performed in said State, and the obligations, rights and remedies of tine Holder hereof shall be determined in accordance with such laws
This Participation A-1 Certificate amends and restates in its entirety the original Participation A-1 Certificate dated as of July 27, 2017 issued in connection with the Original Participation Agreement as CERTIFICATE NO. A-1(1).
WHEREOF, the holder of legal title to the Mortgage Loan has caused this Participation A-1 Certificate to be duly executed.
BANK OF CHINA, NEW YORK BRANCH
	
		
	By:
	 

Exhibit D – Page 4

	
		
	Name:
	 

	Title:
	 

	Date:
	 

Exhibit D – Page 5

AMENDED AND RESTATED  
PARTICIPATION A-2 CERTIFICATE
CERTIFICATE NO. A-2(2)
Evidencing a participation interest created by the Amended and Restated Participation Agreement (as defined below) in the Mortgage Loan in the original principal amount specified below originally made by Bank of China, New York Branch, to Rego II Borrower LLC, a Delaware limited liability company on December 12, 2018.
	
		
	Initial First Mortgage Loan Principal Balance:
	$275,000,000.00

	Mortgage Loan Principal Balance as of December 12, 2018
	$252,543,606.53

	Percentage Interest in Mortgage Loan Represented by Participation A- 2:
	77.4946%

	Initial Principal Balance of this  
Participation A-2 Certificate:
	$195,707,736.85

	Participation A-2 Interest Rate
	LIBOR plus 1.35%

	Percentage Interest in Participation A-2 represented by this Certificate
	100%

THIS CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS PARTICIPATION A-2 CERTIFICATE WITHOUT SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION WHICH DOES NOT REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE PROVISIONS OF SECTION 8 OF THE PARTICIPATION AGREEMENT (AS DEFINED HEREIN).

Exhibit D – Page 6

WITHOUT LIMITING ANY OF THE OBLIGATIONS OF ANY OF THE PARTIES UNDER THE PARTICIPATION AGREEMENT. THIS PARTICIPATION A-2 CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR AN INTEREST IN BANK OF CHINA, NEW YORK BRANCH, OR ANY OF ITS AFFILIATES. NEITHER THIS PARTICIPATION A-2 CERTIFICATE NOR THE MORTGAGE LOAN IS GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES OR ANY OTHER PERSON. DISTRIBUTIONS IN REDUCTION OF THE PRINCIPAL BALANCE OF THIS PARTICIPATION A-2 CERTIFICATE MAY BE MADE AS FORTH IN THE PARTICIPATION AGREEMENT. ACCORDINGLY, THE OUTSTANDING PRINCIPAL BALANCE OF THIS PARTICIPATION A-2 CERTIFICATE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE.
This certifies that ALEXANDER’S OF REGO PARK II PARTICIPATING LENDER LLC is the registered owner of 100% of Participation A-2 in the Mortgage Loan created pursuant to the Amended and Restated Participation Agreement dated as of December 12, 2018 (as amended, restated, supplemented, or otherwise modified from time to time, the “Participation Agreement”), among BANK OF CHINA, NEW YORK BRANCH, as Agent, Lender, and Initial A-1 Holder, and ALEXANDER’S OF REGO PARK II PARTICIPATING LENDER LLC as Initial A-2 Holder.
This Participation A-2 Certificate is subject to the terms, provisions and conditions of the Participation Agreement, as to which the Holder of this Participation A-2 Certificate, by virtue of the acceptance hereof, assents and by which such Holder is bound. To the extent not defined herein, capitalized terms used herein have the respective meanings assigned in the Participation Agreement.
The ownership of an interest in Participation A-2 shall be registered on a record of ownership maintained by Agent on behalf of Lender as holder of legal title to the Mortgage Loan. The right to the principal of, and stated interest on, this Participation A-2 Certificate may be transferred only if the transfer is registered on such record of ownership and the transferee is identified as the owner of an interest in the obligation. Agent shall be entitled to treat the registered holder of this Participation A-2 Certificate as the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or other claim or interest in this Participation A-2 Certificate on the part of any other person or entity.
On each Remittance Date, Agent shall distribute to the Person in whose name this Participation A-2 Certificate is registered at the close of business on the last Business Day of the month immediately preceding the month of such distribution (the “Record Date”) amount 

Exhibit D – Page 7

required to be distributed to the Participation A-2 Holder on such date pursuant to Section 4 of the Participation Agreement. All distributions made under the Participation Agreement will be made by wire transfer in immediately available funds to the account of the Person entitled thereto at a bank or other entity having appropriate facilities therefor, if such Participation A-2 Holder shall have provided the Agent with wiring instructions no later than five (5) Business Days prior to the Remittance Date for such distribution (which wiring instructions may be in the form of a standing order applicable to all subsequent distributions as well), or otherwise by check mailed to the address of such Participation A-2 Holder appearing in the records of Agent. Notwithstanding the above, the final distribution on this Participation A-2 Certificate will be made after due notice by Agent of the pendency of such distribution and only upon presentation and surrender of this Participation A-2 Certificate at the offices of Agent or such other location as may be specified in such notice.
Unless this Participation A-2 Certificate has been executed by the Holder of legal title to the Mortgage Loan, by manual signature, this Participation A-2 Certificate shall not be entitled to any benefit under the Participation Agreement or be valid for any purpose.
The registered Holder hereof, by its acceptance hereof, agrees that it will look solely to the Mortgage Loan (to the extent of its rights therein), for distributions hereunder.  The foregoing sentence is not intended to conflict with any rights granted to Holders under the Participation Agreement.
This Participation A-2 Certificate shall be construed in accordance with the internal laws of the State of New York applicable to agreements made and to be performed in said State, and the obligations, rights and remedies of the Holder hereof shall be determined in accordance with such laws.
This Participation A-2 Certificate amends and restates in its entirety the original Participation A-2 Certificate dated as of July 27, 2017 issued in connection with the Original Participation Agreement as CERTIFICATE NO. A-2(1).
WHEREOF, the holder of legal title to the Mortgage Loan has caused this Participation A-2 Certificate to be duly executed.
BANK OF CHINA, NEW YORK BRANCH
	
		
	By:
	 

Exhibit D – Page 8

	
		
	Name:
	 

	Title:
	 

	Date:
	 

Exhibit D – Page 9

EXHIBIT E
Notice Address
	
		
	LENDER:
	BANK OF CHINA, NEW YORK BRANCH
7 Bryant Park
1045 Avenue of the Americas
13th Floor
New York, New York 10018
Attention: Raymond L. Qiao
Chief Lending Officer
Tel: +1 (646) 231 3149
Email: lquiao@bocusa.corn

	
		
	INITIAL A-2 HOLDER
	ALEXANDER’S OF REGO PARK II PARTICIPATING
LENDER LLC
c/o Alexander’s, Inc.
210 Route 4 East
Paramus, New Jersey 07652
Attention: Chief Financial Officer
Facsimile No.: (201) 843-2198

Exhibit E

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