Document:

Loan Agreement dated July 15, 2004 with 515/555 Flower Associates LLC

 Exhibit 10.19 
  
 LOAN AGREEMENT 
  
 Dated as of July 15, 2004 
  
 by and among 
  
 515/555 FLOWER ASSOCIATES, LLC 
 as Borrower, 
  
 CITIGROUP GLOBAL MARKETS REALTY CORP. 
 as Agent, 
  
 LASALLE BANK NATIONAL ASSOCIATION 
 as Collateral Agent 
  
 and 
  
 Each Lender Signatory hereto 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I.
	  	 CERTAIN DEFINITIONS
	  	1
	 Section 1.1.
	  	 Definitions
	  	1
			
	 ARTICLE II.
	  	 GENERAL TERMS
	  	29
	 Section 2.1.
	  	 The Loan
	  	29
	 Section 2.2.
	  	 Use of Proceeds
	  	29
	 Section 2.3.
	  	 Security for the Loan
	  	29
	 Section 2.4.
	  	 Borrower’s Note
	  	29
	 Section 2.5.
	  	 Principal and Interest; Exit Fee
	  	30
	 Section 2.6.
	  	 Voluntary Prepayment
	  	30
	 Section 2.7.
	  	 Mandatory Prepayment; Capital Events; Certain Transfers
	  	31
	 Section 2.8.
	  	 Application of Payments After Event of Default
	  	31
	 Section 2.9.
	  	 Method and Place of Payment From the Collection Account to Agent
	  	32
	 Section 2.10.
	  	 Taxes
	  	32
	 Section 2.11.
	  	 Release of Collateral
	  	32
	 Section 2.12.
	  	 Central Cash Management
	  	33
	 Section 2.13.
	  	 Reserve Account
	  	39
	 Section 2.14.
	  	 Additional Provisions Relating to the Collection Account and the Reserve Account
	  	43
	 Section 2.15.
	  	 Security Agreement
	  	44
	 Section 2.16.
	  	 Mortgage Recording Taxes
	  	46
	 Section 2.17.
	  	 Extension Option
	  	46
	 Section 2.18.
	  	 General Collateral Agent Provisions
	  	47
	 Section 2.19.
	  	 Approved Junior Mezzanine Loan
	  	50
			
	 ARTICLE III.
	  	 CONDITIONS PRECEDENT
	  	51
	 Section 3.1.
	  	 Conditions Precedent to Closing
	  	51
	 Section 3.2.
	  	 Execution and Delivery of Agreement
	  	55
			
	 ARTICLE IV.
	  	 REPRESENTATIONS AND WARRANTIES
	  	55
	 Section 4.1.
	  	 Representations and Warranties as to Borrower
	  	55
	 Section 4.2.
	  	 Representations and Warranties as to the Mortgaged Property
	  	60
	 Section 4.3.
	  	 Survival of Representations
	  	63
			
	 ARTICLE V.
	  	 AFFIRMATIVE COVENANTS
	  	64
	 Section 5.1.
	  	 Affirmative Covenants
	  	64
			
	 ARTICLE VI.
	  	 NEGATIVE COVENANTS
	  	89
	 Section 6.1.
	  	 Negative Covenants
	  	89
			
	 ARTICLE VII.
	  	 EVENT OF DEFAULT
	  	92
	 Section 7.1.
	  	 Event of Default
	  	92
	 Section 7.2.
	  	 Remedies.
	  	94
	 Section 7.3.
	  	 Remedies Cumulative
	  	94

  

 i 

					
	 Section 7.4.
	  	 Default Administration Fee
	  	95
	 Section 7.5.
	  	 Curative Advances
	  	95
			
	 ARTICLE VIII.
	  	 MISCELLANEOUS
	  	95
	 Section 8.1.
	  	 Survival
	  	95
	 Section 8.2.
	  	 Agent’s Discretion
	  	95
	 Section 8.3.
	  	 Governing Law
	  	96
	 Section 8.4.
	  	 Modification, Waiver in Writing
	  	96
	 Section 8.5.
	  	 Delay Not a Waiver
	  	96
	 Section 8.6.
	  	 Notices
	  	97
	 Section 8.7.
	  	 TRIAL BY JURY
	  	97
	 Section 8.8.
	  	 Headings
	  	97
	 Section 8.9.
	  	 Assignment
	  	97
	 Section 8.10.
	  	 Severability
	  	98
	 Section 8.11.
	  	 Preferences
	  	98
	 Section 8.12.
	  	 Waiver of Notice
	  	98
	 Section 8.13.
	  	 Failure to Consent
	  	99
	 Section 8.14.
	  	 Schedules Incorporated
	  	99
	 Section 8.15.
	  	 Offsets, Counterclaims and Defenses
	  	99
	 Section 8.16.
	  	 No Joint Venture or Partnership
	  	99
	 Section 8.17.
	  	 Waiver of Marshalling of Assets Defense
	  	99
	 Section 8.18.
	  	 Waiver of Counterclaim
	  	99
	 Section 8.19.
	  	 Conflict; Construction of Documents
	  	100
	 Section 8.20.
	  	 Brokers and Financial Advisors
	  	100
	 Section 8.21.
	  	 Counterparts
	  	100
	 Section 8.22.
	  	 Estoppel Certificates
	  	100
	 Section 8.23.
	  	 Payment of Expenses
	  	100
	 Section 8.24.
	  	 Non-Recourse
	  	101
			
	 ARTICLE IX.
	  	 THE AGENT
	  	103
	 Section 9.1.
	  	 Appointment, Powers and Immunities
	  	103
	 Section 9.2.
	  	 Reliance by Agent
	  	103
	 Section 9.3.
	  	 Defaults
	  	104
	 Section 9.4.
	  	 Rights as a Lender
	  	104
	 Section 9.5.
	  	 Indemnification
	  	104
	 Section 9.6.
	  	 Non-Reliance on Agent and Other Lenders
	  	104
	 Section 9.7.
	  	 Failure to Act
	  	105
	 Section 9.8.
	  	 Resignation of Agent
	  	105
	 Section 9.9.
	  	 Agency Fee
	  	105
	 Section 9.10.
	  	 Consents under Loan Documents
	  	105
	 Section 9.11.
	  	 Notices, Reports and Other Communications
	  	105

  
 SCHEDULES 
  

					
	1	  	–	  	 Affiliate Transactions as of Closing

	2	  	–	  	 Operations and Maintenance Plan

	3	  	–	  	 Excluded Leases

  

 ii 

 LOAN AGREEMENT 
  
 THIS LOAN AGREEMENT, made as of July 15, 2004, is by and among 515/555 FLOWER
ASSOCIATES, LLC, a Delaware limited liability company, having an address at c/o Thomas Properties Group, LLC, 515 South Flower Street, Sixth Floor, Los Angeles, California 90071 (“Borrower”); each of the
financial institutions signatory hereto that is identified as a “Lender” on the signature pages hereto or that, pursuant to Section 8.9 hereof, shall become a “Lender” hereunder (individually, a
“Lender”, and collectively, the “Lenders”); CITIGROUP GLOBAL MARKETS REALTY CORP., a New York corporation, having an
address at 388 Greenwich Street, 11th Floor, New York, New York 10013 as agent for the Lenders (in such capacity together with its successors in such capacity, the “Agent”); and LASALLE
BANK NATIONAL ASSOCIATION, a national banking association, having an address at 135 South LaSalle Street, Suite 1625, Chicago, Illinois 60603, as a “bank” (as defined in
Section 9-102(a)(8) of the UCC), as a “securities intermediary” (as defined in Section 8-102(a)(14) of the UCC) and as collateral agent for the Lenders (as used herein, “Collateral Agent” shall refer to LaSalle Bank
National Association in each such capacity as the context requires together with any successor thereto). 
  
 RECITALS 
  
 WHEREAS, Borrower desires to obtain from the initial Lender the Loan in an amount equal to the Loan Amount (each as hereinafter defined) to refinance the Mortgaged Property (as hereinafter defined) and to pay certain
other fees and expenses; 
  
 WHEREAS, the initial Lender is
unwilling to make the Loan unless Borrower joins in the execution and delivery of this Agreement, the Note and the Loan Documents (each as hereinafter defined) to which it is a party which shall establish the terms and conditions of, and provide
security for, the Loan; 
  
 WHEREAS, Borrower has agreed to
establish certain accounts and to grant to the Agent on behalf of, and for the benefit of, the Lenders, a security interest therein upon the terms and conditions of the security agreement set forth in Section 2.15; and 
  
 WHEREAS, LaSalle Bank National Association, in its capacity as collateral
agent, bank and securities intermediary is willing to join in this Agreement in such capacities. 
  
 NOW, THEREFORE, in consideration of the making of the Loan by the Lenders and for other good and valuable consideration, the mutual receipt and legal
sufficiency of which are hereby acknowledged, the parties hereby covenant, agree, represent and warrant as follows: 
  
 ARTICLE I. 
 CERTAIN DEFINITIONS 
  
 Section 1.1. Definitions. For all purposes of this Agreement: (1) the capitalized
terms defined in this Article 1 have the meanings assigned to them in this Article 1 and include the plural as well as the singular; (2) all accounting terms have the meanings assigned to them in accordance with GAAP (as hereinafter
defined); (3) the words “herein”, “hereof”, and “hereunder” and other 

  

 1 

 
words of similar import refer to this Agreement as a whole and not to any particular Article, Section, or other subdivision; and (4) the following terms have
the following meanings: 
  
 “Accepted
Practices” means such customary practices as commercial mortgage collateral agents or banks would follow in the normal course of their business in performing administrative and custodial duties with respect to collateral which is
generally similar to the Account Collateral; provided, however, that “Accepted Practices” shall not be deemed to include any custodial practices now followed by Collateral Agent for any such collateral held for its own
account to the extent that such practices are more stringent than the practices followed by commercial mortgage collateral agents or banks generally. 
  
 “Account Collateral” has the meaning set forth in Section 2.15(a) hereof. 
  
 “Accounts” means all accounts (as defined in the
relevant UCC), now owned or hereafter acquired by Borrower, and arising out of or in connection with, the operation of the Mortgaged Property and all other accounts described in the Management Agreement and all present and future accounts
receivable, inventory accounts, chattel paper, notes, insurance policies, Instruments, Documents or other rights to payment and all forms of obligations owing at any time to Borrower thereunder, whether now existing or hereafter created or otherwise
acquired by or on behalf of Borrower, and all Proceeds thereof and all liens, security interests, guaranties, remedies, privileges and other rights pertaining thereto, and all rights and remedies of any kind forming the subject matter of any of the
foregoing. 
  
 “Adjusted Operating
Expenses” means, as of any date of calculation, the Operating Expenses with respect to the Mortgaged Property during the most recent twelve (12) month period for which such information was furnished to the Agent pursuant to Section
2.12(e)(v) hereof, as the same are adjusted by Agent as necessary to reflect 
  
 (1) expenses for management fees equal to the greater of actual management fees and 3.00% of Gross Revenues, and 
  
 (2) material increases in future Operating Expenses and
increases in over-all actual Operating Expenses from amounts set forth in the Operating Budget as reasonably determined by the Agent. 
  
 “Adjusted Operating Revenue” means, as of any date of calculation, the sum of (A) the Operating Revenues reasonably projected by
Borrower to be received with respect to the Mortgaged Property on a pro forma basis based upon the current annualized rent roll reflecting the base rent portion of the Rents and recoveries due pursuant to Leases (other than Excluded Leases) which
are currently paying and (B) any other income deemed recurring by Agent (which shall exclude interest income) with respect to the Mortgaged Property during the most recent twelve (12) month period for which such information was furnished to the
Agent pursuant to Section 2.12(e)(v) hereof, as the same are adjusted by the Agent as necessary 
  
 (i) to reflect a reduction of above market Rents to market as reasonably determined by the Agent, and 
  

 2 

 (ii) to exclude Rents and recoveries attributable to space that the Agent reasonably
believes will become vacant or to space occupied by any tenant that the Agent reasonably believes will suffer a material credit impairment during such period. 
  

“Adjusted Property Net Cash Flow” for the Mortgaged Property for any period shall mean the amount by which Adjusted Operating
Revenues exceeds Adjusted Operating Expenses for such period. 
  
 “Affiliate” of any specified Person means any other Person controlling or controlled by or under common control with such specified Person. For the purposes of this definition, “control” when used with
respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities or other beneficial interests, by contract or otherwise; and the terms
“controlling” and “controlled” have the meanings correlative to the foregoing. 
  
 “Agent” has the meaning provided in the first paragraph of this Agreement. 
  
 “Agreement” means this Loan Agreement, together with
the Schedules and Exhibits hereto, as the same may from time to time hereafter be modified, supplemented or amended. 
  
 “Application Letter” means the letter dated March 11, 2004, between TPG Plaza Investments, LLC and the initial Lender. 

 
 “Appraisal” means an appraisal with respect to the
Mortgaged Property prepared by an Appraiser in accordance with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation, in compliance with the requirements of Title 11 of the Financial Institution Reform, Recovery and
Enforcement Act and utilizing customary valuation methods such as the income, sales/market or cost approaches. 
  
 “Appraiser” means a nationally recognized MAI appraiser selected by Borrower and reasonably approved by the Agent. 
  
 “Approved Junior Mezzanine Borrower”,
“Approved Junior Mezzanine Lender” and “Approved Junior Mezzanine Loan” have the respective meanings given to such terms in the Mezzanine Loan Agreement. 
  
 “Assignment of Rents and Leases” means, with respect
to the Mortgaged Property, an Assignment of Rents and Leases, dated as of the Closing Date, granted by Borrower to Agent for the benefit of the Lenders with respect to the Leases, as same may thereafter from time to time be supplemented, amended,
modified or extended by one or more agreements supplemental thereto. 
  
 “Basic Carrying Costs” means the following costs with respect to the Mortgaged Property: (i) Impositions and (ii) insurance premiums for policies of insurance required to be maintained by Borrower pursuant to this
Agreement or the other Loan Documents. 
  

 3 

 “Base CPI” means the Consumer Price Index for the calendar month immediately
preceding the calendar month in which the Closing Date occurs. 
  
 “Basis” means, with respect to the Mortgaged Property, as of any date of determination, the sum of: 
  
 (i) $97,943,672 (which amount equals the $14,850,000 initial capital account of Kings Capital Portfolio #9, LLC, plus the $150,000 equity
capital contribution of Kenneth A. Picerne Trust Dated June 4, 1999 and the equity capital contribution of Borrower’s other principals as of the Closing Date, plus the Origination Fees paid pursuant to the Loan, plus the costs of any interest
rate cap obtained by Borrower pursuant to the Loan Documents, less any equity cash-out resulting from the funding of the Loan on the Closing Date); 
  
 (ii) the Loan Amount, minus any portion of the Loan proceeds remitted to the Interest Reserve Account on the Closing Date and remaining on
deposit in the Interest Revenue Account on such date (excluding any reinvestment income thereon); 
  
 (iii) any equity capital contribution of Borrower’s principals made to Borrower after the Closing Date, including the Origination
Fees paid pursuant to the Mezzanine Loan Agreement, the costs of any interest rate cap obtained by Mezzanine Borrower pursuant to the Mezzanine Loan Agreement, and the first $15,000,000 of funds remitted to the Cash Flow Sweep Account and
subsequently applied to pay Capital Improvement Costs (but specifically excluding (A) all additional funds after the first $15,000,000 remitted to the Cash Flow Sweep Account and subsequently applied to pay Capital Improvement Costs, and (B) any
funds remitted to the Cash Flow Sweep Account and subsequently applied to make interest payments on the Loan or the Mezzanine Loan); 
  
 (iv) any funds withdrawn from the Interest Reserve Account and applied to make interest payments on the Loan or the Mezzanine Loan; and

  
 (v) the sum of (1) the Mezzanine Loan
Principal Indebtedness plus (2) the proceeds of any Approved Junior Mezzanine Loan applied to pay Capital Improvement Costs, Leasing Commissions or TI Costs at the Mortgaged Property. 
  
 “Borrower” has the meaning provided in the first paragraph of this Agreement. 
  
 “Borrower’s Operating Account” shall mean an
account established by Borrower into which disbursements from the Other Property Expenses Account are made, at a financial institution selected by Borrower and reasonably acceptable to Lender (initially City National Bank). 
  
 “Business Day” means any day other than a Saturday, a
Sunday or a day on which commercial banks in the State of New York, California or Illinois are authorized or obligated by law, governmental decree or executive order to be closed. When used with respect to an Interest Determination Date,
“Business Day” shall mean any day other than a Saturday, a Sunday or a day on which banks in London, England are closed for interbank or foreign exchange transactions. 
  

 4 

 “CALSTRS” means the California State Teachers’ Retirement System.

  
 “Capital Budget” means Borrower’s
$112,000,000 budget of Capital Improvement Costs for the Renovation of the Mortgaged Property, in the form approved by Mezzanine Lender on the Closing Date, together with such amendments to such budget as may be approved by the Mezzanine Lender in
accordance with the Mezzanine Loan Agreement. 
  
 “Capital Event” means any transfer, sale, assignment, conveyance, liquidation, disposition (other than a Taking) or refinancing of the Mortgaged Property and “Capital Events” shall have a meaning
correlative to the foregoing. 
  
 “Capital Event
Proceeds” means any cash proceeds of a Capital Event received by Borrower net of any cash prorations, adjustments and credits with respect to such Capital Event and net of reasonable third-party expenses paid in connection with such
Capital Event. 
  
 “Capital Improvement
Costs” means costs incurred or to be incurred in connection with replacements and capital repairs made to the Mortgaged Property (including direct and indirect costs as stipulated under the Capital Budget approved by the Mezzanine
Lender). 
  
 “Cash Flow Sweep Account” has
the meaning set forth in Section 2.13(c) hereof. 
  
 “Chattel Paper” means all of Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under all “chattel paper” as defined in the UCC (whether tangible chattel paper or
electronic chattel paper). 
  
 “Closing
Date” means the date of the funding of the Loan. 
  
 “Code” means the Internal Revenue Code of 1986, as amended, and as it may be further amended from time to time, any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant
thereto in temporary or final form. 
  
 “Collateral” means, collectively, the Land, Improvements, Leases, Rents, Personalty, and all Proceeds, and (to the full extent assignable) Permits, which is or hereafter may become subject to a Lien in favor of the
Agent on behalf of the Lenders as security for the Loan (whether pursuant to the Mortgage, any other Loan Document or otherwise), all whether now owned or hereafter acquired and all other property which is or hereafter may become subject to a Lien
in favor of the Agent on behalf of the Lenders as security for the Loan and including all property of any kind described as part of the Mortgaged Property under the Mortgage. 
  
 “Collateral Agent” has the meaning specified in the introductory paragraph of this Agreement.

  
 “Collateral Assignment of Hedge” means
the Collateral Assignment of Hedge, dated as of the applicable date and executed by Borrower, the Agent and the hedge counterparty. 
  

 5 

 “Collateral Security Instrument” means any right, document or instrument, other
than the Mortgage, given as security for the Loan, including, without limitation, the Assignment of Rents and Leases, the Collateral Assignment of Hedge, the Note Pledge Agreement and the Contract Assignment. 
  
 “Collection Account” has the meaning set forth in
Section 2.12(a) hereof. 
  
 “Collection
Period” means, with respect to any Payment Date, the period commencing on and including the eleventh (11th) day in the month preceding the month in which such Payment Date occurs through and including the tenth (10th) day in the month
in which such Payment Date occurs; provided, however, that in the case of the first Payment Date, the “Collection Period” shall commence on the Closing Date. 
  
 “Condemnation Proceeds” means, in the event of a Taking with respect to the Mortgaged Property, the
proceeds in respect of such Taking less any reasonable third party out-of-pocket expenses incurred in collecting such proceeds. 
  
 “Construction Consultant” means Inspection and Valuation International, Inc., a New York corporation, or such other construction
consultant as Mezzanine Lender shall select. 
  
 “Consumer Price Index” means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the United States Department of Labor, in the area where the Mortgaged Property is located,
All Items (1982-84 = 100), or any successor index thereto, appropriately adjusted and if such Consumer Price Index ceases to be published and there is no successor thereto, such other index as Agent and Borrower shall mutually agree upon.

  
 “Contingent Obligation” means, as used
in the definition of Other Borrowings, without duplication, any obligation of Borrower guaranteeing any indebtedness, leases, dividends or other obligations (“primary obligations”) of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly. Without limiting the generality of the foregoing, the term “Contingent Obligation” shall include any obligation of Borrower: 
  
 (i) to purchase any such primary obligation or any property
constituting direct or indirect security therefor; 
  
 (ii) to advance or supply funds (x) for the purchase or payment of any such primary obligation or (y) to maintain working capital or equity capital of the primary obligor; 
  
 (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to make payment of such primary obligation; or 
  
 (iv) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof. 
  

 6 

 The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the
primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming Borrower is required to perform thereunder) as determined by Agent
in good faith. 
  
 “Contract Assignment”
means, with respect to the Mortgaged Property, the Assignment of Contracts, Licenses, Permits, Agreements, Warranties and Approvals, dated as of the Closing Date and executed by Borrower. 
  
 “Contracts” means the Management Agreement and all other agreements to which Borrower is a party or
which are assigned to Borrower by the Manager in the Management Agreement and which are executed in connection with the construction, operation and management of the Mortgaged Property (including, without limitation, agreements for the sale, lease
or exchange of goods or other property and/or the performance of services by it, in each case whether now in existence or hereafter arising or acquired) as any such agreements have been or may be from time to time amended, supplemented or otherwise
modified. 
  
 “Debt Service Coverage Test”
means, as of any date of calculation with respect to the Mortgaged Property, a test which shall be satisfied if the Adjusted Property Net Cash Flow is at least equal to the product of 1.20x and the Loan Debt Service. The Debt Service Coverage Test
shall be calculated no less than monthly by the Agent (using in the Market Constant calculation the interest rate on the Loan for the related Interest Accrual Period) based upon the Adjusted Property Net Cash Flow computed quarterly by the Agent
from the most recent Quarterly Statement delivered by Borrower. If on any given calculation date, (a) the Debt Service Coverage Test has been satisfied and the Debt Service Coverage Test was not satisfied on the immediately preceding calculation
date, or (b) the Debt Service Coverage Test has not been satisfied and the Debt Service Coverage Test was satisfied on the immediately preceding calculation date, then the Agent shall promptly inform Collateral Agent and Borrower of such
satisfaction or non-satisfaction. 
  
 “Deed of Trust
Trustee” means the trustee under the Mortgage that constitutes a “deed of trust” under applicable law. 
  
 “Default” means the occurrence of any event which, but for the giving of notice or the passage of time, or both, would be an Event
of Default. 
  
 “Default Administration
Fee” means an amount equal to the product of (x) 0.5% and (y) the Principal Indebtedness as of the date the Default Administration Fee becomes payable; provided, however, that if prior to the expiration of the Default
Refinance Period, Borrower fully repays the Indebtedness, then the amount of the Default Administration Fee shall be reduced by the amount of the Exit Fee, regardless of whether payment of the Exit Fee is waived by Agent hereunder. 
  
 “Default Rate” means the per annum interest rate
equal to the lesser of (a) 5.0% per annum in excess of the rate otherwise applicable hereunder and (b) the maximum rate allowable by applicable law. 
  

 7 

 “Default Refinance Period” means the period that commences as of the date the
Default Administration Fee becomes payable hereunder, and ends on the date that is ninety (90) days thereafter; provided, however, that if Borrower has not fully repaid the Indebtedness on or prior to such ninetieth (90th) day, but Borrower has used
commercially reasonable and diligent efforts to obtain a refinance loan, and delivers to Agent, on or before such ninetieth (90th) day, a fully-executed copy of a binding loan commitment from a bank or other bona fide commercial lender pursuant to
which such bank or commercial lender has committed to make a loan to Borrower in an amount that is no less than the then-outstanding Indebtedness, then the Default Refinance Period shall be extended by thirty (30) days. 
  
 “Deficient Amount” has the meaning set forth in
Section 5.1(x)(iv)(B). 
  
 “Demand
Note” shall mean that certain Demand Note, dated of even date herewith, executed by TPG/CALSTRS to Guarantor, in the original principal amount of $10,000,000, payable upon demand from Guarantor to TPG/CALSTRS, in the event that
Guarantor defaults in its payment obligations under the Guaranty of Non-Recourse Obligations. 
  
 “Deposit Account” means all of Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under all “deposit accounts” as defined in the UCC.

  
 “Disclosure Certificate” has the
meaning set forth in Section 5.1(w). 
  
 “Disclosure Documents” has the meaning set forth in Section 5.1(w). 
  
 “Documents” means all of Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under all
“documents” as defined in the UCC (whether negotiable or non-negotiable) or other receipts covering, evidencing or representing goods. 
  
 “Eligible Account” means a separate and identifiable account from all other funds held by the holding institution that is: (i) an
account maintained with a federal or state chartered depository institution or trust company whose (1) commercial paper, short-term debt obligations or other short-term deposits are rated by the Rating Agencies not less than “A-1”(or the
equivalent), if the deposits are to be held in the account for thirty (30) days or less or (2) long-term unsecured debt obligations are rated at least “AA-” (or the equivalent), if the deposits are to be held in the account more than
thirty (30) days or (ii) a segregated trust account maintained with the corporate trust department of a federal or state chartered depository institution or trust company subject to regulations regarding fiduciary funds on deposit similar to Title
12 of the Code of Federal Regulations Section 9.10(b) which, in either case, has corporate trust powers, acting in its fiduciary capacity. An Eligible Account shall not be evidenced by a certificate of deposit, passbook, other instrument or any
other physical indicia of ownership. Following a downgrade, withdrawal, qualification or suspension of such institution’s rating, each account must promptly (and in any case within not more than thirty (30) calendar days) be moved to a
qualifying institution or to one or more segregated trust accounts in the trust department of such institution, if permitted. 
  
 “Engineer” means an Independent engineer selected by Borrower and reasonably approved by Agent. 
  

 8 

 “Engineering Report” means the structural engineering reports with respect to the
Mortgaged Property prepared by an Engineer and delivered to Agent in connection with the Loan and any amendments or supplements thereto delivered to Agent. 
  
 “Environmental Auditor” means an Independent environmental auditor selected by Borrower and reasonably approved by Agent.

  
 “Environmental Claim” means any
notice, notification, request for information, claim, administrative, regulatory or judicial action, suit, judgment, demand or other written communication (whether written or oral) by any Person or Governmental Authority alleging or asserting
liability with respect to Borrower or the Mortgaged Property (whether for damages, contribution, indemnification, cost recovery, compensation, injunctive relief, investigatory, response, remedial or cleanup costs, damages to natural resources,
personal injuries, fines or penalties) arising out of, based on or resulting from (i) the presence, Use or Release into the environment of any Hazardous Substance at any location (whether or not owned, managed or operated by Borrower) that affects
Borrower or the Mortgaged Property, (ii) any fact, circumstance, condition or occurrence forming the basis of any violation, or alleged violation, of any Environmental Law or (iii) any alleged injury or threat of injury to human health, safety or
the environment. 
  
 “Environmental Indemnity
Agreement” means the Environmental Indemnity Agreement dated as of the Closing Date, from Borrower and the Guarantor, as indemnitor, to the Lenders, Agent and Collateral Agent, as indemnitees. 
  
 “Environmental Laws” means any and all present and
future federal, state or local laws, statutes, ordinances, rules or regulations, or any judicial interpretation thereof, any judicial or administrative orders, decrees or judgments thereunder issued by a Governmental Authority, and any permits,
approvals, licenses, registrations, filings and authorizations, in each case as now or hereafter in effect, relating to the environment, human health or safety, or the Release or threatened Release of Hazardous Substances or otherwise relating to
the Use of Hazardous Substances. 
  
 “Environmental
Reports” means a “Phase I Environmental Site Assessment” (and, if such Phase I Environmental Site Assessment identifies any recognized environmental conditions requiring further investigation, a “Phase II Environment Site
Assessment” with respect to such recognized environmental conditions) as referred to in the ASTM Standards on Environmental Site Assessments for Commercial Real Estate, E 1527-2000 and an asbestos inspection report, with respect to the
Mortgaged Property, prepared by an Environmental Auditor and delivered to Agent and any amendments or supplements thereto delivered to Agent. 
  
 “EO13224” has the meaning set forth in Section 4.1(v) hereof. 
  
 “Equipment” means all of Borrower’s right, title and interest, whether now owned or hereafter
acquired, in, to and under (i) all “equipment” as defined in the UCC, and (ii) all of the following (regardless of how classified under the UCC): all building materials, construction materials, personal property constituting furniture,
fittings, appliances, apparatus, leasehold improvements, machinery, devices, interior improvements, appurtenances, equipment, 

  

 9 

 
plant, furnishings, fixtures, computers, electronic data processing equipment, telecommunications equipment and other fixed assets now owned or hereafter
acquired by Borrower, and all Proceeds of (i) and (ii) and as well as all additions to, substitutions for, replacements of or accessions to any of the items recited as aforesaid and all attachments, components, parts (including spare parts) and
accessories, whether installed thereon or affixed thereto, all regardless of whether the same are located on such Mortgaged Property or are located elsewhere (including, without limitation, in warehouses or other storage facilities or in the
possession of or on the premises of a bailee, vendor or manufacturer) for purposes of manufacture, storage, fabrication or transportation and all extensions and replacements to, and proceeds of, any of the foregoing. 
  
 “ERISA” means the Employee Retirement Income Security
Act of 1974, as amended from time to time, and the regulations promulgated thereunder. Section references to ERISA are to ERISA, as in effect at the date of this Agreement and, as of the relevant date, any subsequent provisions of ERISA, amendatory
thereof, supplemental thereto or substituted therefor. 
  
 “ERISA Affiliate” means any corporation or trade or business that is a member of any group of organizations (i) described in Section 414(b) or (c) of the Code of which Borrower is a member and (ii) solely for
purposes of potential liability under Section 302(c)(11) of ERISA and Section 412(c)(11) of the Code and the lien created under Section 302(f) of ERISA and Section 412(n) of the Code, described in Section 414(m) or (o) of the Code of which Borrower
is a member. 
  
 “Event of Default” has
the meaning set forth in Section 7.1 hereof. 
  
 “Excluded Leases” means the leases described on Schedule 3 attached hereto. 
  
 “Exit Fee” means 0.25% of the Loan Amount, which amount shall be due and payable upon the earlier to occur of full repayment of
the Loan and the Maturity Date (whether by acceleration or otherwise); provided, however, that notwithstanding the foregoing, in the event the initial Lender provides the funds for a refinancing of the Loan in an amount no less than
$200,000,000, then the Exit Fee shall be waived. 
  
 “Expense Deposit” means $300,000. 
  
 “Extension Conditions,” “Extension Fee,” “Extension Notice,” and “Extension Option” have the respective meanings set forth in Section 2.17(a) hereof.

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

  

 10 

 
date) or such other fiscal year of Borrower as Borrower may select from time to time with the prior consent of Agent. 
  
 “Fund” has the meaning set forth in the definition of
“Permitted Investments”. 
  
 “GAAP” means generally accepted accounting principles as required by the National Council for Real Estate Fiduciaries in the United States of America as of the date of the applicable financial report. 
  
 “General Intangibles” means all of Borrower’s
right, title and interest, whether now owned or hereafter acquired, in, to and under (i) all “general intangibles” as defined in the relevant UCC, now owned or hereafter acquired by Borrower and (ii) all of the following (regardless of how
characterized): all agreements, covenants, restrictions or encumbrances affecting the Mortgaged Property or any part thereof. 
  
 “Governmental Authority” means any national or federal government, any state, regional, local or other political subdivision
thereof with jurisdiction and any Person with jurisdiction exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
  
 “Gross Revenue” means, for any period, the total dollar amount of all income and receipts received
by, or for the account of, Borrower in the ordinary course of business with respect to the Mortgaged Property, but excluding Loss Proceeds (other than the proceeds of business interruption insurance or the proceeds of a temporary Taking in lieu of
Rents). 
  
 “Guarantor” means 505 Flower
Associates, LLC, a Delaware limited liability company. 
  
 “Guaranty of Non-Recourse Obligations” means, with respect to the Loan, the Guaranty of Non-Recourse Obligations guaranteeing the exceptions to the nonrecourse provisions of the Loan Documents for which liability is
retained as described in Section 8.24 hereof from the Guarantor to the Agent for the benefit of the Lenders. 
  
 “Hazardous Substance” means, collectively, (i) any petroleum or petroleum products or waste oils, explosives, radioactive
materials, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls (“PCBs”), lead in drinking water, lead-based paint and radon, (ii) any chemicals or other materials or substances which are now or hereafter
become defined as or included in the definitions of “hazardous substances”, “hazardous wastes”, “hazardous materials”, “extremely hazardous wastes”, “restricted hazardous wastes”, “toxic
substances”, “toxic pollutants”, “contaminants”, “pollutants” or words of similar import under any Environmental Law and (iii) any other chemical or any other hazardous material or substance, exposure to which is
now or hereafter prohibited, limited or regulated under any Environmental Law. 
  
 “Impositions” means all taxes (including, without limitation, all real estate, ad valorem, sales (including those imposed on lease rentals), use, single business, gross receipts, value added,
intangible transaction privilege, privilege or license or similar taxes), assessments (including, without limitation, all assessments for public improvements or benefits, whether or 

  

 11 

 
not commenced or completed within the term of the Loan), ground rents, water, sewer or other rents and charges, excises, levies, governmental fees
(including, without limitation, license, permit, inspection, authorization and similar fees), and all other governmental charges, in each case whether general or special, ordinary or extraordinary, foreseen or unforeseen, in respect of the Mortgaged
Property (including all interest and penalties thereon), accruing during or in respect of the term hereof and which may be assessed against or imposed on or in respect of or be a Lien upon (1) Borrower (including, without limitation, all income,
franchise, single business or other taxes imposed on Borrower for the privilege of doing business in the jurisdiction in which the Mortgaged Property, or any other collateral delivered or pledged to Agent in connection with the Loan, is located) or
Lenders, or (2) the Mortgaged Property, or any other collateral delivered or pledged to Lenders in connection with the Loan, or any part thereof or any Rents therefrom or any estate, right, title or interest therein, or (3) any occupancy, operation,
use or possession of, or sales from, or activity conducted on, or in connection with the Mortgaged Property or the leasing or use of the Mortgaged Property or any part thereof, or the acquisition or financing of the acquisition of the Mortgaged
Property by Borrower. 
  
 “Improvements”
means all buildings, structures, fixtures and improvements now or hereafter owned by Borrower of every nature whatsoever situated on any Land constituting part of the Mortgaged Property (including, without limitation, all gas and electric fixtures,
radiators, heaters, engines and machinery, boilers, ranges, elevators and motors, plumbing and heating fixtures, carpeting and other floor coverings, water heaters, awnings and storm sashes, and cleaning apparatus which are or shall be affixed to
the Land or said buildings, structures or improvements and including any additions, enlargements, extensions, modifications, repairs or replacements thereto). 
  

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

  
 “Indemnified Parties” has the meaning
set forth in Section 5.1(i). 
  
 “Independent” means, when used with respect to any Person, a Person that (i) does not have any direct financial interest or any material indirect financial interest in Borrower or in any Affiliate of Borrower, and
(ii) is not connected with Borrower or any Affiliate of Borrower as an officer, employee, trustee, partner, director or person performing similar functions. 
  
 “Index Maturity” has the meaning set forth in the definition of LIBOR. 
  
 “Instruments” means all of Borrower’s right,
title and interest, whether now owned or hereafter acquired, in, to and under all “instruments” as defined in the UCC. 
  
 “Insurance Escrow Account” has the meaning set forth in Section 2.13(b). 
  
 “Insurance Premiums” has the meaning set forth in
Section 5.1(x)(iii). 
  

 12 

 “Insurance Proceeds” means, in the event of a casualty with respect to the
Mortgaged Property, the proceeds received under any insurance policy applicable thereto. 
  
 “Insurance Requirements” means all material terms of any insurance policy required pursuant to this Agreement or the Mortgage and all material regulations, rules and other requirements of the
National Board of Fire Underwriters or such other body exercising similar functions applicable to or affecting the Mortgaged Property or any part thereof or any use or condition thereof. 
  
 “Insured Casualty” has the meaning set forth in Section 5.1(x)(iv)(B). 
  
 “Intellectual Property” means all of Borrower’s
right, title and interest, whether now owned or hereafter acquired, in, to and under the trademark licenses, trademarks, rights in intellectual property, trade names, service marks and copyrights, copyright licenses, patents, patent licenses or the
license to use intellectual property such as computer software owned or licensed by Borrower or other proprietary business information relating to Borrower’s policies, procedures, manuals and trade secrets. 
  
 “Intercreditor Agreement” means, as applicable, (x)
prior to any Approved Junior Mezzanine Loan having been obtained, the Intercreditor Agreement, dated as of the applicable date, by and among the Agent on behalf of the Lenders and the Mezzanine Lender or (y) after any Approved Junior Mezzanine Loan
shall have been obtained, the Intercreditor Agreement, dated as of the applicable date, by and among the Agent on behalf of the Lenders, the Mezzanine Lender and the Approved Junior Mezzanine Lender and/or the Intercreditor Agreement, dated as of
the applicable date, between the Mezzanine Lender and the Approved Junior Mezzanine Lender. 
  
 “Interest Accrual Period” means, in connection with the calculation of interest accrued with respect to any Payment Date, the period commencing on and including the eleventh (11th) day in the
month preceding the month in which such Payment Date occurs through and including the tenth (10th) day in the month in which such Payment Date occurs; provided, however, that the first Interest Accrual Period for the Loan shall
commence on the Closing Date. 
  
 “Interest
Determination Date” means, in connection with the calculation of interest to accrue for any Interest Accrual Period, the second Business Day preceding the fifteenth (15th) day of the month in which such Interest Accrual Period
commences; provided, however, that the first Interest Determination Date for the Loan shall be the second Business Day preceding the Closing Date. 
  

“Interested Parties” has the meaning set forth in Section 5.1(w). 
  
 “Inventory” means all of Borrower’s right, title
and interest, whether now owned or hereafter acquired, in, to and under all “inventory” as defined in the UCC and shall include all Documents representing the same. 
  
 “Investment Property” means all of Borrower’s right, title and interest, whether now owned or
hereafter acquired, in, to and under all “investment property” as defined in the UCC. 
  

 13 

 “Interest Reserve Account” has the meaning set forth in Section 2.13(d).

  
 “Land” has the meaning provided in the
Mortgage. 
  
 “Leases” means all leases,
subleases, lettings, occupancy agreements, tenancies and licenses by Borrower as landlord of the Mortgaged Property or any part thereof now or hereafter entered into, and all amendments, extensions, renewals and guarantees thereof, and all security
therefor. 
  
 “Leasing Budget” means
Borrower’s $109,000,000 budget of Leasing Commissions and TI Costs for the Renovation of the Mortgaged Property in the form approved by Mezzanine Lender on the Closing Date, together with such amendments to such budget as may be approved by
Mezzanine Lender in accordance with the Mezzanine Loan Agreement. 
  
 “Leasing Commissions” means leasing commissions incurred by Borrower in connection with leasing the Mortgaged Property or any portion thereof (including renewals of existing Leases). 
  
 “Legal Requirements” means all governmental statutes,
laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities (including, without limitation, Environmental Laws) affecting Borrower or the Mortgaged Property or any part thereof or the construction,
use, alteration or operation thereof, or any part thereof (whether now or hereafter enacted and in force), and all permits, licenses and authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances
contained in any instruments, at any time in force affecting the Mortgaged Property or any part thereof (including, without limitation, any which may (i) require repairs, modifications or alterations in or to the Mortgaged Property or any part
thereof, or (ii) in any way limit the use and enjoyment thereof). 
  
 “Lender” has the meaning provided in the first paragraph of this Agreement. 
  
 “Letter of Credit Rights” means all of Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to
and under all “letter of credit rights” as defined in the UCC. 
  
 “LIBOR” means the rate per annum calculated as set forth below: 
  
 (i) On each Interest Determination Date, LIBOR will be determined on the basis of the offered rate for deposits of not less than U.S.
$1,000,000 for a period of one month (the “Index Maturity”), commencing on such Interest Determination Date, which appears on Dow Jones Market Service (formerly Telerate) Page 3750 as of 11:00 a.m., London time (or such other
page as may replace the Dow Jones Market Service (formerly Telerate) Page on that service for the purposes of displaying London interbank offered rates of major banks). If no such offered rate appears, LIBOR with respect to the relevant Interest
Accrual Period will be determined as described in (ii) below. 
  
 (ii) With respect to an Interest Determination Date on which no such offered rate appears on Dow Jones Market Service (formerly Telerate) Page 3750 as described in 

  

 14 

 
(i) above, LIBOR shall be the arithmetic mean, expressed as a percentage, of the offered rates for deposits in U.S. dollars for the Index Maturity which
appears on the Reuters Screen LIBO Page as of 11:00 a.m., London time, on such date. If, in turn, such rate is not displayed on the Reuters Screen LIBO Page at such time, then LIBOR for such date will be obtained from the preceding Business Day for
which the Reuters Screen LIBO Page displayed a rate for the Index Maturity. 
  
 (iii) If on any Interest Determination Date, Agent is required but unable to determine LIBOR in the manner provided in paragraphs (i) and (ii) above, LIBOR for the next Interest Accrual Period shall be determined from
such financial reporting service as Agent shall reasonably determine and use with respect to its other loan facilities on which interest is determined based on LIBOR. 
  
 All percentages resulting from any calculations of LIBOR referred to in this Agreement will be carried out to five decimal places and all
U.S. dollar amounts used in or resulting from such calculations will be rounded upwards to the nearest cent. 
  
 “Lien” means any mortgage, deed of trust, lien (statutory or other), pledge, hypothecation, assignment, security interest, or any
other encumbrance or charge on or affecting Borrower or the Mortgaged Property or any portion thereof, or any interest therein (including, without limitation, any conditional sale or other title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing, and mechanic’s, materialmen’s and other similar liens and encumbrances). 
  
 “Loan” means the loan made by Agent to Borrower pursuant to the terms of this Agreement. 
  
 “Loan Amount” means an amount equal to $200,000,000.

  
 “Loan Debt Service” means the sum of
(i) the product of the Market Constant and the Principal Indebtedness plus (ii) the product of the Mezzanine Loan Market Constant and the Mezzanine Loan Principal Indebtedness. 
  
 “Loan Documents” means this Agreement, the Note, the Contract Assignment, the Manager’s
Subordination, the Mortgage, the Assignment of Rents and Leases, the Environmental Indemnity Agreement, the Guaranty of Non-Recourse Obligations, the Collateral Assignment of Hedge, the Note Pledge Agreement, the Local Deposit Bank Agreements and
all other agreements, instruments, certificates and documents delivered by or on behalf of Borrower or an Affiliate of Borrower to evidence or secure the Loan as same may be amended or modified from time to time. 
  
 “Loan to Cost Test” means a test that shall be
satisfied if the outstanding Principal Indebtedness is less than 71% of Borrower’s Basis in the Mortgaged Property. 
  
 “Loan to Value Test” means a test that shall be satisfied if the sum of the outstanding Principal Indebtedness plus the
outstanding principal amount of the Approved Junior Mezzanine Loan is less than 75% of the value of the Mortgaged Property as determined by the Agent. 
  

 15 

 “Local Collection Account” has the meaning set forth in Section 2.12(a).

  
 “Local Deposit Bank” has the meaning
set forth in Section 2.12(a). 
  
 “Local Deposit
Bank Agreements” means the various account agreements, executed by Borrower, Agent and the Local Deposit Bank, governing the control and disposition of funds held in the Local Collection Account, the Parking Collection Account, the
Local Deposit Trust Account, the Security Deposit Account and Borrower’s Operating Account. 
  
 “Local Deposit Trust Account” has the meaning set forth in Section 2.12(a). 
  
 “Loss Proceeds” means Condemnation Proceeds and/or
Insurance Proceeds. 
  
 “Losses” has the
meaning set forth in Section 5.1(j). 
  
 “Management Agreement” means with respect to the Mortgaged Property, the Management Agreement entered into between Borrower and the Manager, or in such other form as may be reasonably approved by the Agent, as such
agreement may be amended, modified or supplemented and in effect from time to time. 
  
 “Manager” means Thomas Development Partners, L.P., a California limited partnership. 
  
 “Manager’s Subordination” means, with respect to the Mortgaged Property, the Manager’s Consent and Subordination of
Management Agreement, executed by the Manager, Borrower and the Agent, dated as of the Closing Date. 
  
 “Market Constant” means the higher of (a) the current annual interest rate on the Loan and (b) 8.00%. 
  
 “Material Adverse Effect” means a material adverse
effect upon (i) the business operations, properties, assets or condition (financial or otherwise) of Borrower, (ii) the ability of Borrower to perform, or of Agent to enforce, any of the Loan Documents or (iii) the aggregate value of the Mortgaged
Property. 
  
 “Maturity Date” means the
earlier of (a) the Original Maturity Date (i.e. the Payment Date in July, 2006) or if Borrower exercises the Extension Option pursuant to Section 2.17, the First Extended Maturity Date, the Second Extended Maturity Date or the Final Maturity
Date, as applicable, or (b) such earlier date on which the entire Loan is required to be paid in full, by acceleration or otherwise under this Agreement or any of the other Loan Documents. 
  
 “Mezzanine Borrower” means 515/555 Flower Mezzanine
Associates, LLC, a Delaware limited liability company, or its successor in interest. 
  
 “Mezzanine Lender” means Citigroup Global Markets Realty Corp., a New York corporation, and its permitted assigns. 
  

 16 

 “Mezzanine Loan” means the loan made pursuant to the Mezzanine Loan Agreement.

  
 “Mezzanine Loan Account” means such
account at such bank as Mezzanine Lender shall notify in writing to Borrower, Collateral Agent and the Agent. 
  
 “Mezzanine Loan Advance” has the meaning given to the term “Advance” in the Mezzanine Loan Agreement. 
  
 “Mezzanine Loan Advance Date” has the meaning given
to the term “Advance Date” in the Mezzanine Loan Agreement. 
  
 “Mezzanine Loan Agreement” means the Loan Agreement, dated as of the date hereof, by and between Mezzanine Borrower and Mezzanine Lender, as initial mezzanine lender. 
  
 “Mezzanine Loan Borrower’s Basis” has the
meaning given to the term “Borrower’s Basis” in the Mezzanine Loan Agreement. 
  
 “Mezzanine Loan Market Constant” has the meaning given to the term “Market Constant” in the Mezzanine Loan Agreement. 
  
 “Mezzanine Loan Principal Indebtedness” has the meaning given to the term “Principal
Indebtedness” in the Mezzanine Loan Agreement. 
  
 “Minimum CALSTRS Ownership Percentage” means 80%; provided, however, that in the event that Thomas Properties Group, LLC becomes a publicly-traded company, the Minimum CALSTRS Ownership Percentage shall be decreased
to 60%. 
  
 “Money” means all of
Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under (i) all “money” as defined in the UCC and (ii) all moneys, cash, or other items of legal tender generated from the use or operation of the
Mortgaged Property. 
  
 “Monthly Property
Expenses” means, with respect to any Payment Date, an amount equal to not less than 100% and up to 125% of the monthly Property Expenses projected by Borrower to be incurred during the applicable period commencing on such Payment Date
and ending on the next Payment Date as set forth in the Operating Budget for the applicable Fiscal Year; provided, however, that the Agent’s prior written consent shall be required for any amount greater than 125% of the projected
monthly amount in such Operating Budget for Property Expenses. 
  
 “Monthly Statement” has the meaning provided in Section 2.12(d). 
  
 “Mortgage” means, with respect to the Mortgaged Property, a first priority Deed of Trust, Assignment of Leases and Rents, Security
Agreement and Fixture Filing, dated as of the Closing Date, granted by Borrower to or for the benefit of Deed of Trust Trustee for the benefit of Agent with respect to the Mortgaged Property as security for the Loan, as same may 

  

 17 

 
thereafter from time to time be supplemented, amended, modified or extended by one or more agreements supplemental thereto. 
  
 “Mortgaged Property” means, at any time, the Land,
the Improvements, the Personalty, the Leases and the Rents, and all rights, titles, interests and estates appurtenant thereto, encumbered by, and more particularly described in, the Mortgage. 
  
 “Multiemployer Plan” means a multiemployer plan
defined as such in Section 3(37) of ERISA and which is covered by Title IV of ERISA (i) to which contributions have been, or were required to have been made by Borrower or any ERISA Affiliate or (ii) with respect to which Borrower could reasonably
be expected to incur liability. 
  
 “Net
Proceeds” means either (x) the purchase price (at foreclosure or otherwise) actually received by Agent from a third party purchaser with respect to the Mortgaged Property, as a result of the exercise by Agent of its rights, powers,
privileges and other remedies after the occurrence of an Event of Default or (y) in the event that Agent (or its nominee) or a Lender is the purchaser at foreclosure of the Mortgaged Property, the higher of (i) the amount of Agent’s or such
Lender’s credit bid or (ii) such amount as shall be determined in accordance with applicable law, and in either case minus all reasonable third party, out of pocket costs and expenses (including, without limitation, all attorneys’ fees and
disbursements and any brokerage fees, if applicable) incurred by Agent (and its nominee, if applicable) or such Lender in connection with the exercise of such remedies; provided, however, that such costs and expenses shall not be
deducted to the extent such amounts previously have been added to the Indebtedness in accordance with the terms of the Loan Documents or applicable law. 
  
 “Note” means the promissory note made by Borrower to initial Lender pursuant to this Agreement, as such note may be modified,
amended, supplemented or extended. 
  
 “Note Pledge
Agreement” means the Note Pledge Agreement, dated as of the date hereof, executed by Guarantor, Agent and Mezzanine Lender. 
  
 “OFAC” has the meaning set forth in Section 4.1(v) hereof. 
  
 “Officer’s Certificate” means a certificate delivered to Agent by Borrower which is signed by
an authorized officer of Borrower. 
  
 “On-going
Leasing Costs/TI Costs Account” has the meaning set forth in Section 2.13(a). 
  
 “Operating Budget” means, with respect to any Fiscal Year, the operating budget for the Mortgaged Property reflecting
Borrower’s projections of Gross Revenues and Property Expenses for the Mortgaged Property for such Fiscal Year on an annual and monthly basis and submitted by Borrower to Agent in accordance with the provisions of Section 5.1(r)(vi).

  
 “Operating Expenses” means, for any
period of calculation, all expenditures incurred and required to be expensed under GAAP during such period in connection with the ownership, operation, maintenance, repair and/or leasing of the Mortgaged Property. 

  

 18 

 
Notwithstanding the foregoing, Operating Expenses shall not include (a) Capital Improvement Costs, (b) any extraordinary items (unless Agent and Borrower
approve of the inclusion of such items as Operating Expenses), (c) depreciation, amortization and other non-cash charges or (d) any payments of principal or interest on the Indebtedness or otherwise payable to the holder of the Indebtedness.
Operating Expenses shall be calculated on the accrual basis of accounting. 
  
 “Operating Revenues” means, for any period, all regular ongoing income during such period from the operation of the Mortgaged Property that, in accordance with GAAP, is included in annual
financial statements as operating income. Notwithstanding the foregoing, Operating Revenues shall not include (a) any Loss Proceeds (other than business interruption proceeds or Condemnation Proceeds in connection with a temporary Taking and, in
either case, only to the extent allocable to such period or other applicable reporting period), (b) any proceeds resulting from the sale, exchange, transfer, financing or refinancing of the Mortgaged Property, (c) any Rent attributable to a Lease
either more than one month prior to the date on which the actual payment of Rent is required to be made thereunder, (d) any interest income from any source, or (e) any other extraordinary items as reasonably determined by Agent. Operating Revenues
shall be calculated on the accrual basis of accounting. 
  
 “Organizational Agreements” means the Certificate of Formation of Borrower, dated as of April 12, 2004, and the Amended and Restated Limited Liability Company Agreement of Borrower, dated as of July 15, 2004, in each
case, as amended or restated from time to time. 
  
 “Original Maturity Date” means the Payment Date occurring in July, 2006. 
  
 “Origination Fee” means the fee designated as such in the Application Letter payable to Agent on the Closing Date. 
  
 “Other Borrowings” means, with respect to Borrower,
without duplication (but not including the Indebtedness or any interest rate protection agreement entered into pursuant hereto) (i) all indebtedness of Borrower for borrowed money, (ii) all indebtedness of Borrower evidenced by a note, bond,
debenture or similar instrument, (iii) the face amount of all letters of credit issued for the account of Borrower and, without duplication, all unreimbursed amounts drawn thereunder, and obligations evidenced by bankers’ acceptances, (iv) all
indebtedness of Borrower secured by a Lien on any property owned by Borrower (whether or not such indebtedness has been assumed), (v) all Contingent Obligations of Borrower, (vi) liabilities and obligations for the payment of money relating to a
capitalized lease obligation or sale/leaseback obligation, (vii) liabilities and obligations representing the balance deferred and unpaid of the purchase price of any property or services, except those incurred in the ordinary course of
Borrower’s business that would constitute ordinarily a trade payable to trade creditors, and (viii) all payment obligations of Borrower under any interest rate protection agreement (including, without limitation, any interest rate swaps, caps,
floors, collars or similar agreements) and similar agreements. 
  
 “Other Property Expenses Account” has the meaning provided in Section 2.13(b). 
  

 19 

 “Parking Collection Account” has the meaning set forth in Section 2.12(a).

  
 “Payment Date” has the meaning
provided in Section 2.5(a). 
  
 “Payment Date
Statement” has the meaning provided in Section 2.12(d). 
  
 “Payment Intangibles” means all of Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to and under all “payment intangibles” as defined in the
UCC. 
  
 “PBGC” means the Pension Benefit
Guaranty Corporation established under ERISA, or any successor thereto. 
  
 “Permits” means all licenses, permits, variances and certificates required by Legal Requirements to be obtained by Borrower and used in connection with the ownership, operation, use or occupancy of the Mortgaged
Property (including, without limitation, business licenses, state health department licenses, licenses to conduct business and all such other permits, licenses and rights, obtained from any Governmental Authority or private Person concerning
ownership, operation, use or occupancy of the Mortgaged Property). 
  
 “Permitted Encumbrances” means, with respect to the Mortgaged Property, collectively, (i) the Lien created by the Mortgage, or any other Loan Documents of record, (ii) all Liens and other matters disclosed on the
Title Insurance Policy concerning the Mortgaged Property, (iii) Liens, if any, for Impositions imposed by any Governmental Authority not yet delinquent or being contested in good faith and by appropriate proceedings in accordance with the Mortgage,
(iv) mechanic’s or materialmen’s Liens, if any, being contested in good faith and by appropriate proceedings in accordance with the Mortgage, provided that no foreclosure has been commenced by the lien claimant, (v) rights of existing and
future tenants and residents as tenants only pursuant to Leases, and (vi) Liens for public utilities, which Liens and encumbrances referred to in clauses (i)-(vi) above do not materially and adversely affect (1) the ability of Borrower to pay in
full the Principal Indebtedness and interest thereon in a timely manner or (2) the use of the Mortgaged Property for the use currently being made thereof, the operation of the Mortgaged Property as currently being operated or the value of the
Mortgaged Property. 
  
 “Permitted Intercreditor
Transfer” means (x) the encumbrance, pledging, and hypothecation of and granting of a security interest in the ownership interests (including, but not limited to, equity, voting and/or beneficial ownership interests) in Borrower to
Mezzanine Lender in connection with the Mezzanine Loan, or in Mezzanine Borrower to Approved Junior Mezzanine Lender in connection with the Approved Junior Mezzanine Loan, or (y) any conveyance, assignment, sale or other disposition (directly or
indirectly) of such ownership interests in Borrower or Mezzanine Borrower effectuated in connection with a foreclosure on such pledge and hypothecation referred to in clause (x) (or sale in lieu thereof) or other exercise of remedies by Mezzanine
Lender or the Approved Junior Mezzanine Lender carried out pursuant to and in accordance with the Intercreditor Agreement and any subsequent conveyance, assignment, sale or other disposition (directly or indirectly) of such ownership interests in

  

 20 

 
Borrower or Mezzanine Borrower which conforms to the requirements of the Intercreditor Agreement. 
  
 “Permitted Investments” means any one or more of the
following obligations or securities acquired at a purchase price of not greater than par: 
  
 (i) obligations of, or obligations fully guaranteed as to payment of principal and interest by, the United States or any agency or
instrumentality thereof provided such obligations are backed by the full faith and credit of the United States of America; 
  
 (ii) obligations of the following United States of America government sponsored agencies: Federal Home Loan Mortgage Corp. (debt
obligations), the Farm Credit System (consolidated systemwide bonds and notes), the Federal Home Loan Banks (consolidated debt obligations), the Federal National Mortgage Association (debt obligations), the Financing Corp. (debt obligations), and
the Resolution Funding Corp. (debt obligations); 
  
 (iii) federal funds, unsecured certificates of deposit, time deposits, bankers’ acceptances and repurchase agreements with maturities of not more than 365 days of any bank, the short-term obligations of which are rated in the highest
short-term rating category by the Rating Agencies; 
  
 (iv) unsecured certificates of deposit, time deposits, federal funds or banker’s acceptances issued by any depository institution or trust company incorporated under the laws of the United States or of any state thereof and subject to
supervision and examination by federal and/or state banking authorities, which investments are fully insured by the Federal Deposit Insurance Corp.; 
  
 (v) debt obligations with maturities of not more than 365 days and rated by the Rating Agencies in its highest long-term unsecured rating
category; 
  
 (vi) commercial paper (including
both non-interest-bearing discount obligations and interest-bearing obligations payable on demand or on a specified date not more than one year after the date of issuance thereof) with maturities of not more than 270 days and that is rated by the
Rating Agencies in their highest short-term unsecured debt rating; 
  
 (vii) the Federated Prime Obligation Money Market Fund (the “Fund”) so long as the Fund is rated “AAAm” or “AAAm-G” (or the equivalent) by the Rating Agencies; 

 
 (viii) any other demand, money market or time deposit,
demand obligation or any other obligation, security or investment, which the Agent shall have approved in writing and for which, if the Loan has been included in a Secondary Market Transaction in which Securities are issued, Borrower shall have
delivered a Rating Confirmation; 
  
 provided, however, that (A) the
investments described in clauses (i) through (viii) above must have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if such investments have a variable rate of interest, such interest rate must be tied to a
single 

  

 21 

 
interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (C) such investments must not be subject to liquidation
prior to their maturity or have an “r” highlighter affixed to its rating; and provided, further, that, in the judgment of Agent, such instrument continues to qualify as a “cash flow investment” pursuant to Code
Section 860G(a)(6) earning a passive return in the nature of interest and that no instrument or security shall be a Permitted Investment if such instrument or security evidences (x) a right to receive only interest payments or (y) the right to
receive principal and interest payments derived from an underlying investment at a yield to maturity in excess of 120% of the yield to maturity at par of such underlying investment. 
  
 “Permitted Transfer” means (a) any Permitted Intercreditor Transfer or (b) any conveyance,
assignment or sale or other disposition (and not a mortgaging, encumbrance, pledging, hypothecation, or granting of a security interest)(directly or indirectly) of the voting and beneficial ownership interests in Borrower following which (1) CALSTRS
owns (directly or indirectly) the Minimum CALSTRS Ownership Percentage or more of such voting and beneficial ownership interests in Borrower and (2) Thomas Properties Group, LLC controls the operations and management of Borrower; provided,
that any such Transfer referred to above which takes the form of a Transfer of the equity ownership interests in Borrower or Mezzanine Borrower to a transferee which (collectively amongst itself and its Affiliates that own such equity ownership
interests) acquires (directly or indirectly) a greater than 49% ownership interest in Borrower or Mezzanine Borrower, or which acquires control over the operations and management of Borrower or Mezzanine Borrower, shall not be permitted unless
Borrower delivers to the Agent (1) a substantive non-consolidation opinion in form and substance acceptable to the Agent and the Rating Agencies and (2) if the Loan has been included in a Secondary Market Transaction in which Securities are issued,
a Rating Confirmation. Notwithstanding anything herein to the contrary, a Transfer of the equity ownership interest of Mezzanine Borrower in Borrower shall not be a Permitted Transfer. 
  
 “Person” means any individual, corporation, limited liability company, partnership, joint venture,
estate, trust, unincorporated association, any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such capacity on behalf of any of the foregoing. 
  
 “Personalty” means all right, title and interest of
Borrower in and to all Equipment, Inventory, Accounts, General Intangibles, Instruments, Investment Property, Receivables, Pledged Accounts, Deposit Accounts, Contracts and Intellectual Property and all other personal property as defined in the
relevant UCC, now owned or hereafter acquired by Borrower and now or hereafter affixed to, placed upon, used in connection with, arising from or otherwise related to the Mortgaged Property or which may be used in or relating to the planning,
development, financing or operation of such Mortgaged Property, including, without limitation, furniture, furnishings, equipment, machinery, money, insurance proceeds, accounts, contract rights, trademarks, goodwill, chattel paper, documents, trade
names, licenses and/or franchise agreements, rights of Borrower under leases of fixtures or other personal property or equipment, inventory, all refundable, returnable or reimbursable fees, deposits or other funds or evidences of credit or
indebtedness deposited by or on behalf of Borrower with any governmental authorities, boards, corporations, providers of utility services, public or private, including specifically, but 

  

 22 

 
without limitation, all refundable, returnable or reimbursable tap fees, utility deposits, commitment fees and development costs. 
  
 “Plan” means an employee benefit or other plan, other
than a Multiemployer Plan, that is covered by Title IV of ERISA or Section 302 of ERISA or Section 412 of the Code, and (i) was established or maintained by Borrower or any ERISA Affiliate during the five year period ended prior to the date of this
Agreement or to which Borrower or any ERISA Affiliate makes, is obligated to make or has, within the five year period ended prior to the date of this Agreement, been required to make contributions or (ii) with respect to which Borrower could
reasonably be expected to incur liability. 
  
 “Pledged
Accounts” means the Collection Account and the Reserve Account and any successor accounts thereto. 
  
 “Policies” has the meaning provided in Section 5.1(x)(iii). 
  
 “Principal Indebtedness” means the principal amount of the Loan outstanding as adjusted by each
increase (including for advances made by Lenders to protect the Collateral), or decrease in such principal amount of the Loan outstanding, whether as a result of prepayment or otherwise, from time to time. 
  
 “Proceeds” shall have the meaning given in the UCC
and, in any event, shall include, without limitation, all of Borrower’s right, title and interest in and to proceeds, product, offspring, rents, profits or receipts, in whatever form, arising from the Collateral. 
  
 “Prohibited Person” has the meaning provided in
Section 4.1(v). 
  
 “Property
Expenses” means, with respect to the Mortgaged Property, the following costs and expenses but only, in the case of costs and expenses in respect of goods and services, to the extent that they (x) are paid to Persons who are generally in
the business of providing such goods and services, (y) are customary for the types of goods or services provided in the geographical area in which such goods or services are provided and (z) do not constitute Capital Improvement Costs: 

 
 (i) Impositions; 
  
 (ii) insurance premiums for policies of insurance required
to be maintained by Borrower with respect to the Mortgaged Property pursuant to this Agreement or the other Loan Documents; 
  
 (iii) the cost of all electricity, oil, gas, water, steam, heat, ventilation, air conditioning and any other energy, utility or similar
item and overtime services with respect to the Mortgaged Property; 
  
 (iv) payments required under service contracts (including, without limitation, service contracts for heating, ventilation and air conditioning systems, elevators, landscape maintenance, pest extermination, security,
furniture, trash removal, answering service and credit checks); 
  

 23 

 (v) wages, benefits, payroll taxes, uniforms, the cost of cleaning supplies, insurance
costs and all related expenses for on-site maintenance personnel (including, without limitation, housekeeping employees, porters and general repair, maintenance and security employees), whether hired by Borrower, Manager, Collateral Agent or any
other Person; 
  
 (vi) costs required in
connection with the enforcement of any Lease (including, without limitation, reasonable attorneys’ fees, charges for lock changes and storage and moving expenses for furniture, fixtures and equipment); 
  
 (vii) advertising and rent-up expenses (including, without
limitation, leasing services, tenant rent concessions, promotions for existing and prospective tenants, banners and signs); 
  
 (viii) out-of-pocket cleaning, maintenance and repair expenses; 
  
 (ix) any expense the total cost of which is passed through to tenants pursuant to executed Leases;

  
 (x) legal, accounting, auditing and other
professional fees and expenses incurred in connection with the ownership, leasing and operation of the Mortgaged Property (including, without limitation, collection costs and expenses); 
  
 (xi) permits, licenses and registration fees and costs; 
  
 (xii) any expense necessary in order to prevent a breach
under a Lease; 
  
 (xiii) any expense necessary
in order to prevent or cure a violation of any Legal Requirement (including Environmental Law), regulation, code or ordinance; 
  
 (xiv) costs and expenses of any appraisals, valuations, surveys, inspections, environmental assessments or market studies; 
  
 (xv) costs and expenses of security and security systems
provided to and/or installed and maintained with respect to the Mortgaged Property; 
  
 (xvi) costs of title, UCC, litigation and other searches and costs of maintaining the Lien of the Mortgage thereon and the security
interest in any related Collateral; 
  
 (xvii)
fees and expenses of property managers contracted with by Borrower to perform management, administrative, payroll or other services in connection with the operation of the Mortgaged Property (including, without limitation, the fees and expenses owed
to Manager under the Management Agreement); 
  
 (xviii) any other costs and expenses contemplated by the Operating Budget and customarily incurred in connection with operating properties similar in type and character to the Mortgaged Property; and 
  

 24 

 (xix) any other category of property expense that is customary for a property of the type
and size as the Mortgaged Property and is reasonably approved by Agent on behalf of the Lenders. 
  
 “Qualified Interest Rate Cap Provider” means an interest rate cap counterparty either (x) whose long-term debt obligations are
rated by the Rating Agencies not lower than “AAA” (or the equivalent), or (y) whose long-term debt obligations are rated by the Rating Agencies not lower than “AA-” (or the equivalent) and whose short-term debt obligations are
rated by the Rating Agencies not lower than “A-1+” (or the equivalent). 
  
 “Quarterly Statement” has the meaning provided in Section 2.12(e). 
  
 “Rating Agencies” means at least two of Fitch, Inc., Moody’s Investors Service, Inc. and Standard & Poor’s Ratings
Services (or, if a Secondary Market Transaction has occurred in which Securities have been issued, each of the foregoing that rated such Securities). 
  
 “Rating Confirmation” means the written confirmation of the Rating Agencies that a proposed action shall not, in and of itself,
result in the downgrading, withdrawal or qualification of the then-current ratings assigned to any of the Securities issued in connection with a Secondary Market Transaction. 
  
 “Real Estate Taxes Escrow Account” has the meaning provided in Section 2.13(b). 

 
 “Receivables” means all of Borrower’s right,
title and interest, whether now owned or hereafter acquired, in, to and under (i) any Accounts, Chattel Paper, Instruments, Payment Intangibles, Letter of Credit Rights, Documents, insurance policies, drafts, bills of exchange, trade acceptances,
notes or other indebtedness owing to Borrower from whatever source arising, (ii) to the extent not otherwise included above, (a) all income, Rents, issues, profits, revenues, deposits and other benefits from the Mortgaged Property and (b) all
receivables and other obligations now existing or hereafter arising, or created out of the sale, lease, sublease, license, concession or other grant of the right of the use and occupancy of property or rendering of services by Borrower or any
operator or manager of the Mortgaged Property or other commercial space located at the Mortgaged Property or acquired from others (including, without limiting the generality of the foregoing, from rental of space, halls, stores, and offices, and
deposits securing reservations of such space, exhibit or sales space of every kind, license, lease, sublease and concession fees and rentals, health club membership fees, food and beverage wholesale and retail sales of merchandise, service charges,
vending machine sales and proceeds, if any, from business interruption or other loss of income insurance, (iii) all of the books and records (whether in tangible, electronic or other form) now or hereafter maintained by or on behalf of Mortgagor in
connection with the operation of the Mortgaged Property or in connection with any of the foregoing and (iv) all Supporting Obligations and all liens and security interests securing any of the foregoing and all other rights, privileges and remedies
relating to any of the foregoing. 
  
 “Release” means any active or passive release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration into the indoor or outdoor 

  

 25 

 
environment (including, without limitation, the movement of Hazardous Substances through ambient air, soil, surface water, ground water, wetlands, land or
subsurface strata). 
  
 “Remedial Work”
has the meaning set forth in Section 5.1(d)(i). 
  
 “Renovation” means the general upgrade of the Mortgaged Property, the upgrades of the plaza level at the Mortgaged Property (including level A-lobby and level B-retail), the conversion of plaza level C to parking and
the build-out of the sixth floor office space. 
  
 “Rentable Square Footage” means 2,648,920 square feet (or such other amount of square feet as to which Borrower and the Agent shall mutually agree). 
  
 “Rents” means all income, rents, issues, profits, revenues (including all oil and gas or other
mineral royalties and bonuses), deposits (other than utility and security deposits) and other benefits from the Mortgaged Property. 
  
 “Replacement Reserve Account” has the meaning set forth in Section 2.13(a). 
  
 “Reserve Account” means the the Replacement Reserve
Account, the On-going Leasing Costs/TI Costs Account, the Real Estate Taxes Escrow Account, the Insurance Escrow Account, the Other Property Expenses Account, the Interest Reserve Account and the Cash Flow Sweep Account, collectively, and any
successor accounts to any of the foregoing. 
  
 “Second
Extended Maturity Date” has the meaning set forth in Section 2.17(a). 
  
 “Secondary Market Transaction” has the meaning set forth in Section 5.1(w). 
  
 “Securities” means mortgage pass-through certificates or other securities issued in a Secondary Market Transaction and evidencing
a beneficial interest in or secured in whole or in part by the Loan in a rated or unrated public offering or private placement. 
  
 “Security Deposit Account” has the meaning set forth in Section 2.12(a)(i). 
  
 “Seismic Study” means a study of the degree of
seismic activity in the area in which the Mortgaged Property is located (including the probable maximum loss in the event an earthquake were to occur) prepared by an Engineer and delivered to Agent in connection with the Loan and any amendments or
supplements thereto delivered to Agent. 
  
 “Single-Purpose Entity” means a Person, other than an individual, which (i) is formed or organized under the laws of a state of the United States or the District of Columbia solely for the purpose of acquiring and
directly holding an ownership interest in the Mortgaged Property, (ii) does not engage in any business unrelated to the Mortgaged Property, (iii) does not have any assets other than those related to its interest in the Mortgaged Property or any
indebtedness other than as permitted by this Agreement, the Mortgage or the other Loan Documents, (iv) has its own separate books and records and has its own accounts, in each case which are separate and apart from the books and records and accounts
of any other Person, (v) is subject to all of the limitations on powers set forth in the Organizational Agreement of Borrower and the Mezzanine Borrower as of the Closing Date, (vi) holds itself out as being a Person 

  

 26 

 
separate and apart from any other Person and (vii) has, or is controlled, directly or indirectly, by a Person that has, at least one independent director
that is not an employee, officer, director, or paid consultant of any Affiliate of such Person or of any principal or officer of such Person. 
  
 “Supporting Obligations” means all of Borrower’s right, title and interest, whether now owned or hereafter acquired, in, to
and under (i) all “supporting obligations” as defined in the UCC and (ii) any other guarantee, letter of credit, secondary obligation, right or privilege that supports or pertains to any of the Mortgaged Property. 
  
 “Survey” means a certified ALTA/ACSM survey of the
Mortgaged Property prepared by a registered Independent surveyor, containing the form of survey or certification provided to Borrower by the Agent and in form and content satisfactory to the Agent and the company issuing the Title Insurance Policy
for the Mortgaged Property. 
  
 “Taking”
means a taking or voluntary conveyance during the term hereof of all or part of the Mortgaged Property, or any interest therein or right accruing thereto or use thereof, as the result of, or in settlement of, any condemnation or other eminent domain
proceeding by any Governmental Authority affecting the Mortgaged Property or any portion thereof whether or not the same shall have actually been commenced. 
  
 “Terrorism Premium Cap” means, during any given calendar month, the product of $775,000, multiplied by a fraction, the numerator
of which is the Consumer Price Index for the immediately preceding calendar month, and the denominator of which is the Base CPI. 
  
 “TI Costs” means tenant improvement costs and allowances incurred by Borrower in connection with renewing existing Leases or
executing new Leases for space located in the Mortgaged Property. 
  
 “Title Insurance Policy” means a mortgagee’s title insurance policy or policies (i) issued by one or more title companies reasonably satisfactory to Agent which policy or policies shall be in form ALTA 1992
(with waiver of arbitration provisions) (with co-insurance or reinsurance as Agent may require reasonably satisfactory to Agent), naming Agent as the insured party for benefit of the Lenders, (ii) insuring the Mortgage as being a first and prior
lien upon the Mortgaged Property, (iii) showing no encumbrances against the Mortgaged Property (whether junior or superior to the Mortgage) which are not acceptable to Agent other than Permitted Encumbrances, (iv) in an amount acceptable to Agent
(but not more than the Loan Amount), and (v) otherwise in form and content reasonably acceptable to Agent. Such Title Insurance Policy shall include the following endorsements or affirmative coverages in form and substance reasonably acceptable to
Agent, to the extent available in the jurisdiction in which the Land is located: variable rate endorsement; survey endorsement; comprehensive endorsement; zoning (ALTA 3.1 with parking added) endorsement; first loss, last dollar and tie-in
endorsement; access coverage; separate tax parcel coverage; contiguity (if applicable) coverage; and such other endorsements as Agent shall reasonably require in order to provide insurance against specific risks identified by Agent in connection
with the Mortgaged Property. 
  

 27 

 “TPG/CALSTRS” means TPG/CALSTRS, LLC, a Delaware limited liability company.

  
 “Transaction” means the transactions
contemplated by the Loan Documents. 
  
 “Transaction
Costs” means all costs and expenses paid or payable by Borrower relating to the Transaction (including, without limitation, appraisal fees, legal fees and accounting fees and the costs and expenses described in Section 8.23).

  
 “Transfer” means the conveyance,
assignment, sale, mortgaging, encumbrance (other than a Permitted Encumbrance), pledging, hypothecation, granting of a security interest in, granting of options with respect to, or other disposition of (directly or indirectly, voluntarily or
involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) all or any portion of any legal or beneficial interest (a) in all or any portion of the Mortgaged Property; or (b) in the stock, partnership
interests, membership interests or other ownership interests in Borrower, and shall also include, without limitation to the foregoing, the following: an installment sales agreement wherein Borrower agrees to sell the Mortgaged Property or any part
thereof or any interest therein for a price to be paid in installments; an agreement by Borrower leasing all or a substantial part of the Mortgaged Property to one or more Persons pursuant to a single or related transactions, or a sale, assignment
or other transfer of, or the grant of a security interest in, Borrower’s right, title and interest in and to any Leases or any Rent; and any instrument subjecting the Mortgaged Property to a condominium regime or transferring ownership to a
cooperative corporation. 
  
 “TRIA” means
the Terrorism Risk Insurance Act of 2002. 
  
 “Treasury
Rate” means the yield on the U.S. Treasury issue (primary issue) with a maturity date closest to, but not later than, the tenth anniversary of the date on which such rate is calculated with such yield being based on the bid price for
such issue as reasonably determined by the Agent. 
  
 “UCC” means with respect to any Collateral, the Uniform Commercial Code as in effect from time to time in the State of New York; provided, that if by reason of mandatory provisions of law, the perfection or
the effect of perfection or non-perfection or priority of the security interest in any item or portion of the Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “UCC”
shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or priority. Wherever this agreement refers to terms as
defined in the UCC, if such term is defined in more than one Article of the UCC, the definition in Article 9 of the UCC shall control. 
  
 “UCC Searches” has the meaning set forth in Section 3.1(v) hereof. 
  
 “Use” means, with respect to any Hazardous Substance,
the generation, manufacture, processing, distribution, handling, use, treatment, recycling or storage of such Hazardous Substance or transportation of such Hazardous Substance in connection with or affecting Borrower or the Mortgaged Property.

  

 28 

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

  
 ARTICLE II. 
 GENERAL TERMS 
  
 Section 2.1. The Loan. 
  
 (a) Subject to the terms and conditions of this Agreement, the Lenders shall lend to Borrower on the Closing Date the Loan Amount. The proceeds of the
Loan shall be used solely for the purposes identified in Section 2.2 hereof. On the Closing Date, upon the satisfaction of the conditions set forth in Section 3.1, the Agent shall wire immediately available funds to an account
designated by Borrower in an amount equal to (x) the Loan Amount, less (y) the sum of (i) the Origination Fee, (ii) the deposits to the Interest Reserve Account, the Real Estate Taxes Escrow Account and the Insurance Escrow Account required to be
funded from Loan proceeds pursuant to Section 2.13, and (iii) the out-of-pocket expenses incurred by Agent in connection with the origination and funding of the Loan in excess of the Expense Deposit (including, but not limited to the
reasonable fees and expenses of Agent’s and Collateral Agent’s counsel). 
  
 (b) The Loan shall constitute one general obligation of Borrower to Lenders and shall be secured by the security interest in and Liens granted upon all of the Collateral, and by all other security interests and Liens
at any time or times hereafter granted by Borrower to Agent or to Collateral Agent on behalf of Lenders as security for the Loan. 
  
 Section 2.2. Use of Proceeds. Proceeds of the Loan shall be used only for the following purposes: (a) to refinance the Mortgaged Property, (b) to pay to Agent the
Origination Fee, (c) to make the required deposits to the Interest Reserve Account, the Real Estate Taxes Escrow Account and the Insurance Escrow Account, (d) to pay Transaction Costs (including the reasonable out of pocket expenses incurred by
Lenders in connection with the origination and funding of the Loan) and (e) to pay to counsel to each of Collateral Agent and the Agent their respective reasonable fees, expenses and disbursements. If any Loan proceeds remain after application
thereof as set forth in the preceding sentence, such excess proceeds may be used for the general corporate purposes of Borrower (including an equity cash out to the Borrower’s principals). 
  
 Section 2.3. Security for the Loan. The Note and Borrower’s obligations hereunder
and under all other Loan Documents shall be secured by (a) Liens upon the Mortgaged Property pursuant to the Mortgage, (b) the Contract Assignment, (c) the Manager’s Subordination, (d) the Assignment of Leases and Rents, (e) the Collateral
Assignment of Hedge, (f) the Note Pledge Agreement, and (g) all other security interests and Liens granted in this Agreement and in the other Loan Documents. 
  
 Section 2.4. Borrower’s Note. Borrower’s obligation to pay the principal of and interest on the Loan and all other amounts due under the Loan Documents
shall be evidenced initially by the Note, duly executed and delivered by Borrower on the Closing Date. The Note shall be payable 

  

 29 

 
as to principal, interest and all other amounts due under the Loan Documents, as specified in this Agreement, with a final maturity on the Maturity Date. The
initial Lender shall have the right to have the Note subdivided, by exchange for promissory notes of lesser denominations in the form of the initial Note, upon written request to Borrower and, in such event, Borrower shall promptly execute
additional or replacement Notes. At no time shall the aggregate original principal amount of the Note (or of such replacement Notes) exceed the Loan Amount. 
  
 Section 2.5. Principal and Interest; Exit Fee. 
  
 (a) Borrower shall pay to Agent interest on the Principal Indebtedness of the Loan from the Closing Date through the end of the Interest Accrual Period
following or during which the Loan is paid in full at the interest rate provided below in this Section 2.5. Interest on the Loan shall accrue on the Principal Indebtedness commencing on the Closing Date and shall be payable in arrears on the
eleventh (11th) day of the month following the month in which the Closing Date occurs and on the eleventh (11th) day of each and every month thereafter until such time as the Loan shall be repaid in full, unless, in any such case, such day is not a
Business Day, in which event such interest shall be payable on the first Business Day following such date (such date for any particular month, the “Payment Date”). The Agent and the Collateral Agent shall calculate LIBOR on
each Interest Determination Date for the related Interest Accrual Period and promptly communicate to Borrower such rate for such period. The entire outstanding Principal Indebtedness of the Loan and the Note, together with all accrued but unpaid
interest thereon and all other amounts due under the Loan Documents (including, without limitation, the Exit Fee), shall be due and payable by Borrower to the Lenders on the Maturity Date. Interest shall be computed on the basis of a 360 day year
and the actual number of days elapsed. 
  
 (b) For the initial
Interest Accrual Period, the Principal Indebtedness shall bear interest at a rate per annum equal to 3.13%. For each Interest Accrual Period thereafter, the Principal Indebtedness shall bear interest at a rate per annum equal to the sum of (x) LIBOR
determined as of the Interest Determination Date for such Interest Accrual Period plus (y) 1.75%. 
  
 (c) Borrower shall make principal payments on the Loan on each Payment Date in an amount equal to the amount, if any, required to be paid pursuant to
clause first of Section 2.12(b). 
  
 (d)
While an Event of Default has occurred and is continuing, Borrower shall pay to Agent interest at the Default Rate on any amount owing to the Lenders not paid when due until such amount is paid in full. 
  
 (e) On the Payment Date on which the Borrower pays the outstanding Principal
Indebtedness in whole, the Borrower shall pay to the Lender the Exit Fee. 
  
 Section 2.6. Voluntary Prepayment. 
  
 (a)
Borrower may not voluntarily prepay the Loan through and including the July, 2006 Payment Date. Thereafter, Borrower may voluntarily prepay the Loan in whole or in part on any Payment Date; provided, however, that, any such prepayment
shall be accompanied by an amount representing all accrued interest on the portion of the Loan being prepaid and other amounts then due under the Loan Documents (including, without limitation, the Exit Fee). 
  

 30 

 (b) In the event of any such voluntary prepayment, Borrower shall give Agent written notice (or
telephonic notice promptly confirmed in writing) of its intent to prepay, which notice shall be given at least thirty (30) days’ prior to the date upon which prepayment is to be made and shall specify the Payment Date on which such prepayment
is to be made and the amount of such prepayment (which shall not be less than $1,000,000). If any such notice is given, the amount specified in such notice shall be due and payable on the Payment Date specified therein (unless such notice is revoked
by Borrower prior to the date specified therein in which event Borrower shall immediately reimburse Agent for any out-of-pocket costs incurred in connection with the giving of such notice and its revocation). 
  
 Section 2.7. Mandatory Prepayment; Capital Events; Certain Transfers. 
  
 (a) Borrower shall not effect a Capital Event with respect to the Mortgaged
Property through and including the last Business Day of the Collection Period with respect to the July, 2006 Payment Date. Thereafter, Borrower may effect a Capital Event with respect to the Mortgaged Property on any Business Day on the condition
that the Capital Event Proceeds, or such portion thereof required to fully repay the Indebtedness (and, if necessary, any contributions from the principals of Borrower necessary to make the payments required hereunder), are deposited in the
Collection Account and applied on the date of deposit in the Collection Account to repay the Indebtedness in full (including (1) all accrued interest on the Principal Indebtedness through the end of the Interest Accrual Period during which such
deposit occurs, (2) the Exit Fee and (3) other amounts then due under the Loan Documents). Notwithstanding, the foregoing, Borrower may effect a Transfer (other than a Capital Event of a Mortgaged Property as provided in this Section 2.7(a)
or a Permitted Transfer), provided (1) if the Loan has not been included in a Secondary Market Transaction in which Securities are issued, Borrower obtains the prior written consent of the Agent or (2) if the Loan has been included in a Secondary
Market Transaction in which Securities were issued, Borrower shall have delivered to the Agent a Rating Confirmation and (3) Borrower pays all reasonable out-of-pocket expenses incurred by the Agent in connection with the transaction. 
  
 (b) Except as otherwise provided in Section 2.12(f) in the event Loss
Proceeds are required to be made available for restoration pursuant to Section 5.1(x) of this Agreement and excluding Loss Proceeds which Borrower is obligated to turn over to tenants or other third persons pursuant to applicable law, in the
event of a casualty or a Taking of the Mortgaged Property, in whole or in part, Borrower shall cause all such Loss Proceeds otherwise payable with respect to the Mortgaged Property to be deposited directly into the Collection Account in accordance
with Section 2.12(a)(iii) and shall on the Payment Date occurring immediately following the receipt of such Loss Proceeds, apply such portion of Loss Proceeds solely to make the payments required pursuant to item (iii) of clause
first of Section 2.12(b) of this Agreement. 
  
 (c)
Upon payment or prepayment of the Loan in full, Borrower shall pay to the Lenders, in addition to the amounts specified in Section 2.6, Section 2.7 and Section 2.12, as applicable, all other amounts then due and payable to the
Lenders pursuant to the Loan Documents. 
  
 Section 2.8. Application of
Payments After Event of Default. All proceeds relating to any repayments of the Loan after the Collateral Agent shall have received written notice of the 

  

 31 

 
occurrence of an Event of Default shall be applied by Agent, in Agent’s sole discretion, to amounts then outstanding under this Agreement (including,
without limitation, any unpaid fees of the Collateral Agent payable pursuant to the Fee Letter and any reasonable out-of-pocket costs and expenses of Collateral Agent and the Lenders, in that order, reimbursable pursuant to the terms of this
Agreement arising as a result of such repayment; any accrued and unpaid interest then payable with respect to the Loan or the portion thereof being repaid; any accrued and unpaid Exit Fee in respect of any such Principal Indebtedness being repaid;
the Principal Indebtedness or the portion thereof being repaid; and any other sums then due and payable to or for the benefit of Agent pursuant to this Agreement or any other Loan Document(s)). 
  

	Section	2.9. Method and Place of Payment From the Collection Account to Agent. 

  

(a) Except as otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Agent not later
than 2:00 p.m., New York City time, on the date when due and shall be made in lawful money of the United States of America by wire transfer in federal or other immediately available funds to its account at J.P. Morgan Chase Bank, New York, New York
(ABA No. 021-000-021, Account No. 066-612-187, Reference: Arco Plaza) and Agent shall disburse such payments to the Person entitled thereto on the Business Day of receipt of such payments (or the next Business Day if the payments are received after
2:00 p.m., New York City time on such Business Day) to the account designated by such Person in writing to Agent from time to time. Any funds received by Agent after such time shall, for all purposes hereof, be deemed to have been paid on the next
succeeding Business Day. Agent shall notify Borrower in writing of any changes in the account to which payments are to be made. All payments made by Borrower hereunder, or by Borrower under the other Loan Documents, shall be made irrespective of,
and without any deduction for, any set-offs or counterclaims. 
  
 (b) Except to the extent otherwise provided herein, (i) each payment or prepayment of principal of the Loan by Borrower shall be made to Agent for the account of the Lenders pro rata in accordance with the respective unpaid portion of the
Loan held by such Lenders and (ii) each payment of interest on the Loan by Borrower shall be made to Agent for the account of the Lenders pro rata in accordance with the amounts of interest on the portion of the Loan held by such Lenders then due
and payable to the respective Lenders. 
  
 Section 2.10. Taxes. All
payments made by Borrower under the Note and this Agreement to or for the benefit of Lenders shall be made free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies,
imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority (other than taxes imposed on the income of the Lenders). 
  
 Section 2.11. Release of Collateral. 
  
 (a) Notwithstanding any other provision of this Agreement or any other Loan
Document, upon the occurrence of a Capital Event with respect to the Mortgaged Property as described in Section 2.7(a) hereof, Agent, on behalf of the Lenders, shall, simultaneously with such Capital Event, release of record the Lien of the Mortgage
and UCC-1 financing statements 

  

 32 

 
and any other Liens in favor of the Lenders relating to the Mortgaged Property or the portion thereof affected by such Capital Event provided, however, that
the Agent shall not be required to release its Lien unless the Proceeds (or the requisite portion thereof) of such Capital Event are paid to Agent in full satisfaction of the Indebtedness as required hereunder. 
  
 (b) In the event Borrower satisfies the outstanding Indebtedness in full,
Agent and, at the written direction of Agent, Collateral Agent shall withdraw and hold uninvested for Borrower in an Eligible Account at LaSalle Bank National Association from the Business Day immediately preceding the date upon which the release of
funds is to be made to Borrower and release on the date on which the outstanding Indebtedness is repaid in full any and all amounts then on deposit in the Reserve Account and/or the Collection Account to Borrower. Upon repayment of the Loan and all
other amounts due hereunder and under the Loan Documents in full in accordance with the terms hereof and thereof, the Lenders shall, promptly after such payment, release or cause to be released all Liens with respect to all Collateral (including,
without limitation, terminating the tenant direction letters delivered pursuant to Section 2.12(a)) or, to the extent necessary to facilitate future savings of mortgage tax in states that impose mortgage taxes, assign such Liens to
Borrower’s new lender(s), provided that any such assignments shall be without recourse, representation, or warranty of any kind, except that Agent and each Lender shall represent and warrant (1) the then outstanding amount of the Principal
Indebtedness and (2) that such Liens have not been previously assigned by Agent or any Lender. 
  
 Section 2.12. Central Cash Management. 
  
 (a) Collection Account, Local Deposit Trust Account, Local Collection Account, Parking Collection Account and Security Deposit Account; Deposits to and Withdrawals from Collection Account, Local Deposit Trust
Account, Local Collection Account, Parking Collection Account and Security Deposit Account. 
  
 (i) On or before the Closing Date, Borrower shall establish and maintain with a financial institution acceptable to the Agent in its sole
reasonable discretion (a “Local Deposit Bank”), a local deposit trust account for the Mortgaged Property (a “Local Deposit Trust Account”), a local collection account for the Mortgaged Property (a
“Local Collection Account”), a Parking Collection Account for the Mortgaged Property (a “Parking Collection Account”), and a security deposit account for the Mortgaged Property (the
“Security Deposit Account”). Each of the Local Deposit Trust Account and the Security Deposit Account shall be an Eligible Account with a separate and unique identification number and entitled in the same name as the
Collection Account. Each of the Local Collection Account and the Parking Collection Account shall be a zero-balance Deposit Account with a separate and unique identification number and entitled in the same name as the Collection Account. On or
before the Closing Date, Borrower shall cause the Local Deposit Bank to deliver to Agent on behalf of the Lenders the Local Deposit Bank Agreements in form and substance acceptable to Agent (A) acknowledging Agent’s security interest in and
sole dominion and control over the Local Deposit Trust Account, the Local Collection Account and the Parking Collection Account, and (B) acknowledging Agent’s security interest in the Security Deposit Account and Borrower’s Operating
Account, and right, upon the occurrence and during the continuance of an Event of Default, to assert sole dominion and control over the Security Deposit Account and Borrower’s Operating Account. If any Lease requires that Borrower not commingle
the security deposit 

  

 33 

 
given by the tenant thereunder with any other funds, then Borrower shall establish and maintain a separate security deposit account for each such Lease in
accordance with the foregoing account requirements, all of which security deposit accounts shall be referred to herein, collectively, as the “Security Deposit Account.” On or before the Closing Date, Borrower shall establish
and maintain with the Collateral Agent a collection account (the “Collection Account”), which shall be an Eligible Account with a separate and unique identification number and entitled “Citigroup Global Markets Realty
Corp. as Agent, as secured party from 515/555 Flower Associates, LLC pursuant to a Loan Agreement dated as of July 15, 2004 among 515/555 Flower Associates, LLC, Citigroup Global Markets Realty Corp. as Agent and LaSalle Bank National Association as
Collateral Agent.” Not later than three (3) days after the Closing Date, Borrower shall deliver to each tenant under a Lease an irrevocable direction letter in a form approved by Agent requiring the tenant to pay all Rents and Money received
from Accounts or under Leases and derived from the Mortgaged Property and Proceeds thereof owed to Borrower directly to the Local Collection Account. Borrower shall provide to Agent proof of such delivery. In addition, Borrower shall deliver an
irrevocable direction letter in such form to each tenant under a new Lease entered into after the date hereof prior to the commencement of such Lease. If a tenant under a Lease forwards such Rents, Money or Proceeds to Borrower rather than directly
to the Local Collection Account, Borrower shall (i) deliver an additional irrevocable direction letter to the tenant and make other commercially reasonable efforts to cause the tenant to forward such Rents, Money or Proceeds directly to the Local
Collateral Account and (ii) immediately deposit or cause the Manager to deposit in the Local Collection Account such Rents, Money or Proceeds. At all times during this Agreement, Borrower shall deposit or cause Manager to deposit in the Security
Deposit Account all security deposits received from tenants at the applicable Mortgaged Property, by no later than the Business Day following the collection and receipt thereof. At all times during this Agreement, Borrower shall deposit or cause
Manager or Borrower’s parking operator to deposit in the Parking Collection Account all Gross Revenues from the Mortgaged Property allocable to parking fees and expenses. The Local Deposit Bank shall perform clearing house services with respect
to the Local Collection Account and the Parking Collection Account, and shall immediately transfer all cleared funds into the Local Deposit Trust Account. Subject to Section 2.12(a)(ii), Borrower shall sweep or cause to be swept on each
Business Day during a calendar month all Money on deposit in the Local Deposit Trust Account to the Collection Account. So long as no Event of Default shall have occurred and be continuing, Borrower and Manager shall be permitted on a monthly basis
with the prior written approval of the Agent to make withdrawals from the Security Deposit Account for the payment, application or return of security deposits in accordance with the Leases. Borrower shall not have any right to withdraw Money from
the Local Deposit Trust Account, the Local Collection Account, the Parking Collection Account, the Collection Account or the Security Deposit Account (except for security deposits as described above), which shall be under the sole dominion and
control and the “control” within the meaning of Sections 9-104 and 9-106 of the UCC, of the Agent. Any such Rents, Money or Proceeds held by Borrower or the Manager prior to deposit into the Collection Account shall be held in trust for
the benefit of the Agent and the Lenders. 
  
 (ii) In the event that Agent has notified the Collateral Agent and Borrower that an Event of Default has occurred and is continuing, 
  
 (A) all Rents and Money received from Accounts or under Leases and derived from the Mortgaged Property and all Proceeds thereof shall be
payable to Agent for the 

  

 34 

 
account of Lenders or as otherwise directed by Agent on behalf of Lenders (provided that such direction shall not result in the nonpayment of any outstanding
fees payable to the Collateral Agent pursuant to the Fee Letter), 
  
 (B) Agent on behalf of the Lenders shall make deposits, or cause deposits to be made, of such Rents, Money and Proceeds directly to the Collection Account, and Borrower shall cooperate (and shall cause the Manager to
cooperate) with Agent on behalf of the Lenders in the making of such deposits or causing such deposits to be made, 
  
 (C) Borrower shall not have any right to make or direct any withdrawals from the Collection Account or the Reserve Account without the
prior written consent of Agent on behalf of the Lenders, and 
  
 (D) proceeds on deposit in the Collection Account and the Reserve Account may be applied by Collateral Agent on behalf of the Lenders for the payment of the Indebtedness pursuant to Section 2.8 of this
Agreement. 
  
 (iii) So long as no Event of
Default shall have occurred and be continuing, Borrower shall deposit in the Collection Account: (a) as and when required by Section 2.7(b), Loss Proceeds received by Borrower and (b) simultaneously with the consummation of any Capital Event,
the Capital Event Proceeds resulting from such Capital Event and any contributions from Borrower’s principals required by Section 2.7(a) in connection with such Capital Event. 
  
 (b) Distribution of Cash. So long as the Collateral Agent shall not have received written notice from Agent on behalf
of the Lenders that an Event of Default has occurred and is continuing, the Collateral Agent shall hold uninvested for Borrower or the Lenders in an Eligible Account at LaSalle Bank National Association, the funds on deposit in the Collection
Account as of the close of business on the Business Day immediately preceding each Payment Date to such Payment Date and shall apply such funds on such Payment Date, in each case to the extent of the amounts set forth in the related Payment Date
Statement delivered by the Collateral Agent, as follows: 
  
 first, to the Real Estate Taxes Escrow Account and the Insurance Escrow Account, in that order, in the respective amounts required to be deposited therein as described in Section 2.13(b); 
  
 second, to the payment to the Agent of (i) the
interest then due and payable on the Note with respect to the related Interest Accrual Period, (ii) the Exit Fee and the Extension Fee, if any, then due and payable and (iii) the Principal Indebtedness in an amount equal to any amount to which the
Agent is then entitled pursuant to Sections 2.7(a) or 2.7(b) of this Agreement; 
  
 third, to the payment to the Collateral Agent of its fees then due and payable pursuant to the Fee Letter; 
  
 fourth, to the Other Property Expenses Account in the
amount, if any, required (or permitted) to be deposited therein as described in Section 2.13(b); 
  

 35 

 fifth, to the Replacement Reserve Account and the On-going Leasing Costs/TI Costs
Account in that order, in the respective amounts, if any, required to be deposited therein as described in Section 2.13(a); 
  
 sixth, to the payment of any outstanding indemnification payment to which an Indemnified Party is then entitled pursuant to
Sections 5.1(i) and 5.1(j); 
  
 seventh, to the Mezzanine Loan Account, in the amount of interest payments and any other amounts required to be paid pursuant to the Mezzanine Loan Agreement (including, without limitation, the fees and expenses of the Construction
Consultant, and fees incurred by Mezzanine Lender in connection with amendments or endorsements to Mezzanine Lender’s Eagle 9 insurance policy) on such Payment Date; 
  
 eighth, if the Agent shall have notified Borrower in writing that the Debt Service Coverage Test has
not been satisfied, then all remaining available funds, if any, shall be distributed to the Cash Flow Sweep Account until the date that the Debt Service Coverage Test has been satisfied; 
  
 ninth, if all remaining available funds are not on such Payment Date being distributed to the Cash
Flow Sweep Account pursuant to clause eighth above, then all remaining available funds, if any, shall be distributed either (i) to the account of the Approved Junior Mezzanine Lender if the Approved Junior Mezzanine Loan has been made
and is still outstanding, such funds to be held and disbursed by the Approved Junior Mezzanine Lender in accordance with the terms of the Approved Junior Mezzanine Loan, or (ii) otherwise, to Borrower. 
  
 (c) Permitted Investments. Borrower shall, or shall direct Collateral
Agent in writing to, invest and reinvest any balance in the Collection Account, from time to time in Permitted Investments; provided, however, that 
  
 (i) maturity of the Permitted Investments on deposit therein shall be at the discretion of Borrower, but in
any event no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn therefrom pursuant to Section 2.12(a) or 2.12(b) of this Agreement, 
  
 (ii) Collateral Agent has received written notice from Agent
that an Event of Default has occurred and is continuing Borrower shall not have any right to direct investment of the balance in the Collection Account, 
  
 (iii) such Permitted Investments shall be held in the name of Collateral Agent and shall be credited to the Collection Account, and

  
 (iv) no written investment direction is
provided to Collateral Agent by Borrower, Collateral Agent shall invest any balance in the Collection Account in an investment of the type described in clause (vii) of the definition of Permitted Investments. 
  
 Agent, the Lenders and Collateral Agent shall have no liability for any loss in investments
of funds in the Collection Account that are invested in Permitted Investments (unless, in the case of 

  

 36 

 
Collateral Agent, invested contrary to Borrower’s or Agent’s written direction) and no such loss shall affect Borrower’s obligation to fund,
or liability for funding, the Collection Account. All interest paid or other earnings on the Permitted Investments of funds deposited into the Collection Account made hereunder shall be deposited into the Collection Account. Borrower shall include
all earnings on the Collection Account as income of Borrower for federal and applicable state tax purposes. 
  
 (d) Monthly and Payment Date Statements. With respect to each Collection Period, Collateral Agent shall prepare and deliver, or shall cause to be
prepared and delivered, to Agent a statement no later than ten (10) Business Days after the end of such Collection Period setting forth the aggregate deposits to and withdrawals from the Collection Account and each account of the Reserve Account and
the opening and closing balances in such accounts (collectively, the “Monthly Statement”). With respect to each Payment Date and the related Collection Period and Interest Accrual Period, Collateral Agent shall prepare and
deliver, or shall cause to be prepared and delivered to Borrower and Agent, a statement (each, a “Payment Date Statement”) no later than the Business Day prior to such Payment Date with respect to each of the items below,
setting forth the following: 
  
 (i) the
aggregate deposits to the Collection Account during the related Collection Period for each type of deposit under this Agreement and the opening and closing balances in the Collection Account; 
  
 (ii) the amount of interest then due and payable on the Note
with respect to the Interest Accrual Period (including the applicable number of days and interest rate which were applied in determining such amount); 
  
 (iii) the amount of the Exit Fee and Extension Fee, if any, then due and payable; 
  
 (iv) the amount of the fees of the Collateral Agent and any
expenses payable to the Collateral Agent and any outstanding indemnification payment to which an Indemnified Party is then entitled under this Agreement; 
  
 (v) the following information with respect to the Principal Indebtedness in a format reasonably acceptable to Agent: (1) the Principal
Indebtedness as of the preceding Payment Date, (2) any principal payable to the Lenders pursuant to Sections 2.6, 2.7 or 2.12 on such Payment Date, and (3) the Principal Indebtedness on the current Payment Date (taking into
account such payments); and 
  
 (vi) the amount
withdrawn from or remitted to each account of the Reserve Account in accordance with Sections 2.12 and 2.13 and the amount remitted to Borrower. 
  

(e) Quarterly Statements. No later than thirty (30) days following the end of each of the months of December, March, June, and September,
beginning with the month ending at June 30, 2004, Borrower shall prepare and deliver to the Agent and the Collateral Agent a statement (each a “Quarterly Statement”) in hard copy and on diskette and/or a copy through
electronic mail, in form and substance reasonably satisfactory to Agent, setting forth with respect to the Mortgaged Property, 
  

 37 

 (i) a cash flow report detailing the Operating Revenues and the Operating Expenses, in
each case on a trailing twelve month basis, 
  
 (ii) a rent roll dated as of the last day of such quarter identifying each of the Leases by the term, renewal options (including rental base), suite number, rentable square feet, rental and other charges required to be paid, security
deposit paid, real estate taxes paid by tenants, common area charges paid by tenants, tenant pass-throughs, any rental concessions or special provisions or inducements, tenant sales (if the tenant is required to report sales to Borrower), rent
delinquencies, rent escalations (which may be contained in a document separate from the rent roll), amounts taken in settlement of outstanding arrears, collections of rent for more than one (1) month in advance, “non-competition”
provisions (restricting Borrower or any tenant), any defaults thereunder and any other information reasonably required by Lender; 
  
 (iii) a management report (including leasing updates and leasing prospects and Renovation progress) and an actual vacancy level for the
Mortgaged Property (expressing the level as a percentage) for the most recent date available, 
  
 (iv) year-to-date operating statements and capital expense reports prepared for each calendar month during each such quarter, each of
which shall include an itemization of actual (not pro forma) operating expenses and capital expenditures during the applicable period; and 
  
 (v) a comparison of the budgeted income and expenses with the actual income and expenses for such month and year to date, together with a
detailed explanation of any variances between budgeted and actual amounts that are in excess of the greater of: (1) $10,000, or (2) ten percent (10%) or more for each line item therein. 
  
 (f) Loss Proceeds. In the event of a casualty or Taking with respect to the Mortgaged Property, unless pursuant to
Section 5.1(x) of this Agreement or applicable law, the Loss Proceeds are to be made available to Borrower for restoration or to the tenants, all of Borrower’s interest in Loss Proceeds shall be paid directly to the Collection Account to
satisfy the requirements of Section 2.7(b). If the Loss Proceeds are to be made available for restoration pursuant to this Agreement or to the tenants pursuant to applicable law, such Loss Proceeds shall be held by the Collateral Agent in a
segregated interest-bearing Eligible Account in the name of the Collateral Agent on behalf of the Lenders to be opened by the Collateral Agent within three (3) Business Days after the Collateral Agent receives written notice of the necessity
therefor from the Agent, to be withdrawn by the Collateral Agent and held uninvested in a LaSalle Bank National Association account from the Business Day immediately preceding the date upon which payment to Borrower or to the tenants is to be made
to such payment date for delivery to Borrower or to the tenants from time to time to pay restoration costs pursuant to a schedule reasonably acceptable to Agent and Borrower. Funds on deposit in any such account opened by the Collateral Agent shall
be invested in Permitted Investments in the same manner and subject to the same restrictions as set forth in Section 2.12(c) with respect to the Collection Account (except that the maturity shall be not later than as necessary to satisfy the
schedule referred to in the preceding sentence). If any Loss Proceeds are received by Borrower, such Loss Proceeds shall be received in trust for the Lenders, shall be segregated from other funds of Borrower, and 

  

 38 

 
shall be forthwith paid to Collateral Agent to the extent necessary to comply with this Agreement. 
  
 (g) Collateral Agent’s Reliance. Collateral Agent may rely and
shall be protected in acting or refraining from acting upon any written notice, instruction or request furnished to it hereunder and reasonably believed by it to be genuine and to have been signed or presented by the proper party or parties.
Collateral Agent may rely on written notice from Agent as to the occurrence and continuance of an Event of Default, without further written notice by the Lenders to the contrary. 
  
 Section 2.13. Reserve Account. 
  
 (a) Replacement Reserve Account and On-going Leasing Costs/TI Costs Account. 
  
 (i) On or before the Closing Date, Borrower shall establish and maintain with the Collateral Agent two
separate accounts for Capital Improvement Costs, replacement reserves, Leasing Commissions and TI Costs, each of which shall be an Eligible Account and shall have the same title as the Collection Account, for the benefit of the Lenders until the
Loan is paid in full. The two accounts shall be designated the Replacement Reserve Account (the “Replacement Reserve Account”) and the On-going Leasing Costs/TI Costs Account (the “On-going Leasing Costs/TI Costs
Account”). On each Payment Date after the initial Payment Date as of which Borrower shall have satisfied the Debt Service Coverage Test, the Agent shall have the right to instruct the Collateral Agent in writing to deposit from the
Collection Account (or if the Agent has so instructed the Collateral Agent but the funds for such deposit are not available pursuant to Section 2.12(b), Borrower shall make a deposit of Borrower’s funds sourced from equity capital
contributions) in the Replacement Reserve Account, an amount acceptable to the Agent (which shall not exceed one-twelfth (1/12th) of the product of $0.25 and the Rentable Square Footage of the Mortgaged Property) and in the On-Going Leasing Costs/TI Costs Account, an amount acceptable to the Agent (which shall not exceed one-twelfth (1/12th) of the product of $1.50 and the Rentable Square Footage of the Mortgaged Property.) 
  
 (ii) Any and all Moneys remitted to the Replacement Reserve
Account, together with any Permitted Investments in which such Moneys are or will be invested or reinvested during the term of this Agreement, shall be held in the Replacement Reserve Account (A) to be withdrawn by Collateral Agent upon written
request by Borrower made not more than once each month in an amount not less than $50,000 and held uninvested for Borrower or the Lenders in an Eligible Account at LaSalle Bank National Association from the close of business on the Business Day
immediately preceding the date upon which payment is to be made to Borrower to such date, and either applied to pay directly, or deposited into Borrower’s Operating Account to pay or to reimburse Borrower for, replacement reserve costs
reasonably determined by Borrower or (B) for purposes otherwise requested by Borrower and reasonably approved by the Agent in writing. 
  
 (iii) Any and all Moneys remitted to the On-going Leasing Costs/TI Costs Account, together with any Permitted Investments in which such
Moneys are or will be invested or reinvested during the term of this Agreement, shall be held in the On-going Leasing Costs/TI Costs Account (A) to be withdrawn by Collateral Agent upon written request by Borrower made 

  

 39 

 
not more than once each month in an amount not less than $50,000 and held uninvested for Borrower or the Lenders in an Eligible Account at LaSalle Bank
National Association from the close of business on the Business Day immediately preceding the date upon which payment is to be made to Borrower to such date, and either applied to pay directly, or deposited into Borrower’s Operating Account to
pay or to reimburse Borrower for, Leasing Commissions and TI Costs incurred in connection with leasing activities relating to the Mortgaged Property after the Closing Date specified by Borrower in a written request delivered to Collateral Agent and
the Agent or (B) for purposes otherwise requested by Borrower and reasonably approved by the Agent in writing. 
  
 (iv) Not less than three (3) Business Days prior to the date on which Borrower desires to withdraw funds on deposit in the Replacement
Reserve Account or On-going Leasing Costs/TI Costs Account, in whole or in part, Borrower shall provide the Agent with written notice (with a copy to Collateral Agent) of such request (including therein a statement of the purpose for the withdrawal
and in the case of a reimbursement of Borrower, evidence that the related costs have been paid). 
  
 (b) Real Estate Taxes Escrow Account, Insurance Escrow Account, Other Property Expenses Account and Borrower’s Operating Account. On or before
the Closing Date, Borrower shall establish and maintain with the Collateral Agent three separate accounts for Property Expenses, each of which shall be an Eligible Account and shall have the same title as the Collection Account for the benefit of
the Lenders until the Loan is paid in full. The three accounts shall be designated the Real Estate Taxes Escrow Account (the “Real Estate Taxes Escrow Account”), the Insurance Escrow Account (the “Insurance Escrow
Account”) and the Other Property Expenses Account (the “Other Property Expenses Account”). On or before the Closing Date, Borrower shall establish and maintain the Borrower’s Operating Account with a
separate and unique identification number and entitled in the same name as the Collection Account. On the Closing Date, the initial Lender shall deposit out of the Loan proceeds $2,230,200 in the Real Estate Taxes Escrow Account and $1,629,420 in
the Insurance Escrow Account. Collateral Agent shall deposit from the Collection Account (or, if the funds for such deposit are not available pursuant to Section 2.12(b), Borrower shall make a deposit of Borrower’s funds sourced from
equity capital contributions), 
  
 (1) with
respect to each Payment Date, an amount equal to the Impositions portion of Monthly Property Expenses in the Real Estate Taxes Escrow Account, 
  
 (2) with respect to each Payment Date, an amount equal to the portion of Monthly Property Expenses equal to insurance premiums for
policies of insurance required to be maintained by Borrower with respect to the Mortgaged Property pursuant to this Agreement or the other Loan Documents in the Insurance Escrow Account and 
  
 (3) with respect to any Payment Date as of which remaining
available funds are not being remitted to Borrower pursuant to clause ninth of Section 2.12(b), the remainder of the Monthly Property Expenses in the Other Property Expenses Account. 
  
 Any and all Moneys remitted to the Real Estate Taxes Escrow Account, Insurance Escrow Account
or Other Property Expenses Account together with any Permitted Investments in which 

  

 40 

 
such Moneys are or will be invested or reinvested during the terms of this Agreement, shall be held in the Real Estate Taxes Escrow Account, Insurance Escrow
Account or Other Property Expenses Account, to be withdrawn and disbursed as provided below. 
  
 On each Payment Date on which funds are deposited in the Other Property Expenses Account as described above, Collateral Agent shall disburse into Borrower’s Operating Account funds from the Other Property
Expenses Account in an amount equal to the Property Expenses set forth in the Operating Budget that are currently due to be paid and not previously paid or reimbursed; provided that such disbursement shall be conditioned upon the receipt by
Collateral Agent, prior to such Payment Date, of an Officer’s Certificate certifying that the most recent disbursement from the Other Property Expenses Account to Borrower’s Operating Account has been used by Borrower in accordance with
this Agreement and the other Loan Documents, together with a copy of Borrower’s check register supporting such Officer’s Certificate. If there are any Property Expenses that are not set forth on the Operating Budget but that have been
approved by the Agent in writing, such approval not to be unreasonably withheld, Borrower may, prior to the Payment Date, make a written request to Collateral Agent and Agent to increase the disbursement being made from the Other Property Expenses
Account on the ensuing Payment Date to cover such unbudgeted items. In the event Borrower is entitled to the release of funds from the Other Property Expenses Account following the delivery of written confirmation from the Agent that the Debt
Service Coverage Test has been satisfied, Lenders and the Collateral Agent (upon receipt of written notice thereof from the Agent) shall release any and all amounts on deposit in the Other Property Expenses Account to Borrower’s Operating
Account on the Business Day on which Borrower satisfies such test. 
  
 Funds from
the Real Estate Taxes Escrow Account and Insurance Escrow Account shall be withdrawn by the Collateral Agent upon written request of Borrower delivered to Agent and Collateral Agent. Such written request by Borrower shall include copies of bills or
invoices for Impositions and insurance premiums toward which such funds are to be applied. The funds shall be withdrawn and held uninvested for Borrower or the Lenders in an Eligible Account at LaSalle Bank National Association from the close of
business on the Business Day immediately preceding the date upon which direct payment is to be made to such date, and applied directly by Collateral Agent to pay (x) any Impositions (in the case of the Real Estate Taxes Escrow Account), or (y) any
insurance premiums for policies of insurance required to be maintained by Borrower with respect to the Mortgaged Property pursuant to this Agreement or the other Loan Documents (in the case of the Insurance Escrow Account). 
  
 (c) Cash Flow Sweep Account. On or before the Closing Date, Borrower
shall establish and maintain with the Collateral Agent an account designated the Cash Flow Sweep Account (the “Cash Flow Sweep Account”) which shall be an Eligible Account and shall have the same title as the Collection
Account for the benefit of the Lenders until the Loan is paid in full. On any Payment Date as of which the Debt Service Coverage Test has not been satisfied, Agent shall deposit or cause to be deposited in the Cash Flow Sweep Account the remaining
available funds pursuant to clause eighth of Section 2.12(b). Any and all Moneys remitted to the Cash Flow Sweep Account, together with any Permitted Investments in which such Moneys are or will be invested or reinvested during
the term of this Agreement, shall be held in the Cash Flow Sweep Account, to be withdrawn by Collateral Agent and held uninvested for Borrower or 

  

 41 

 
the Lenders in an Eligible Account at LaSalle Bank National Association from the Business Day immediately preceding the date upon which payment is to be made
to such date, and either 
  
 (x) applied to pay
directly or reimburse Borrower for Capital Improvement Costs (other than the portion of the Capital Improvement Costs for which a Mezzanine Loan Advance was made under the Mezzanine Loan Agreement or for which the Approved Junior Mezzanine Loan was
funded), or 
  
 (y) applied to pay
interest on the Loan or the Mezzanine Loan then due and payable in the event sufficient funds are not available in the Collection Account and the Interest Reserve Account to make such payment. 
  
 (d) Interest Reserve Account. On or before the Closing Date, Borrower
shall establish and maintain with the Collateral Agent an account designated the Interest Reserve Account (the “Interest Reserve Account”), which shall be an Eligible Account and shall have the same title as the Collection
Account for the benefit of the Lenders until the Loan is paid in full. On the Closing Date, the initial Lender shall deposit out of the Loan proceeds $8,000,000 in the Interest Reserve Account. Any and all Moneys remitted to the Interest Reserve
Account, together with any Permitted Investments in which such Moneys are or will be invested or reinvested during the term of this Agreement, shall be held in the Interest Reserve Account, to be withdrawn by Collateral Agent upon written request of
Borrower or Mezzanine Borrower, as applicable, and held uninvested for Borrower or the Lenders in an Eligible Account at LaSalle Bank National Association from the close of business on the Business Day immediately preceding the date upon which
payment is to be made to such date, and applied on a Payment Date to pay interest then due and payable on the Loan in the event sufficient funds are not available in the Collection Account on such Payment Date to make such payment or to pay interest
then due and payable on the Mezzanine Loan in the event sufficient funds are not available in the Mezzanine Loan Account on such Payment Date to make such payments. 
  
 (e) Investment of Funds. All or a portion of any Moneys in the Reserve Account shall be invested and reinvested, so
long as Collateral Agent has not received written notice from Agent that an Event of Default has occurred and is continuing, by Collateral Agent in accordance with written instructions delivered by Borrower, or after Collateral Agent has received
written notice from Agent that an Event of Default has occurred and is continuing, by Agent, in one or more Permitted Investments. If no written investment direction is provided to Collateral Agent by Borrower, Collateral Agent shall invest such
Moneys in an investment of the type described in clause (vii) of the definition of Permitted Investments. Agent, the Lenders and Collateral Agent shall have no liability for any loss in investments of funds in the Reserve Account that are invested
in Permitted Investments (unless, in the case of Collateral Agent, invested contrary to Borrower’s or Agent’s written direction) and no such loss shall affect Borrower’s obligation to fund, or liability for funding, the Reserve
Account. So long as an Event of Default has not occurred and is not continuing, all such Permitted Investments shall be made in the name of Collateral Agent on behalf of the Lenders or as otherwise directed by Agent. Agent shall cause all income or
other gain from investments of Money held in the Reserve Account to be deposited in such respective account of the Reserve Account immediately upon receipt and any loss resulting from such investments shall be charged to such respective account of
the Reserve Account. Unless and until title to the funds therein shall have vested in any Person other than 

  

 42 

 
Borrower, Borrower shall include all such income or gain on any account of the Reserve Account as income of Borrower for federal and applicable state tax
purposes. 
  
 (f) Event of Default. After Collateral Agent
has received written notice from Agent that an Event of Default has occurred and is continuing, Borrower shall not be permitted to make any withdrawal(s) from the Reserve Account and Collateral Agent at the written direction of Agent may liquidate
any Permitted Investments of the amount on deposit in such account, withdraw and hold the proceeds of such liquidation uninvested for Lenders in a LaSalle Bank National Association account from the Business Day immediately preceding the date such
funds are to be used and use such amount on deposit in the Reserve Account on the succeeding Business Day to make payments on account of the Loan in accordance with the priorities set forth in Section 2.8. 
  
 Section 2.14. Additional Provisions Relating to the Collection Account and the Reserve
Account. 
  
 (a) The Collateral Agent covenants and agrees
that: (i) all securities or other property underlying any financial assets credited to any Pledged Account shall be registered in the name of the Collateral Agent, indorsed to the Collateral Agent or indorsed in blank or credited to another
securities account maintained in the name of the Collateral Agent and in no case will any financial asset credited to any Pledged Account be registered in the name of Borrower, payable to the order of Borrower or specially indorsed to Borrower
except to the extent the foregoing have been specially indorsed to the Collateral Agent or in blank; and (ii) all Permitted Investments and all other property delivered to the Collateral Agent pursuant to this Agreement will be promptly credited to
one of the Pledged Accounts. 
  
 (b) The Collateral Agent hereby
agrees that each item of property (whether investment property, financial asset, security, instrument, cash or otherwise) credited to any Pledged Account shall be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of
the UCC. 
  
 (c) If at any time the Collateral Agent shall receive
from the Agent an entitlement order (i.e. an order directing transfer or redemption of any financial asset relating to a Pledged Account) or any instruction (within the meaning of Section 9-104 of the UCC) originated by the Agent (i.e. an
instruction directing the disposition of funds in a Pledged Account), the Collateral Agent shall comply with such entitlement order or instruction without further consent by Borrower or any other Person. 
  
 (d) Regardless of any provision in any other agreement, for purposes of the
UCC, with respect to each Pledged Account, New York shall be deemed to be the bank’s jurisdiction (within the meaning of Section 9-304 of the UCC) and the securities intermediary’s jurisdiction (within the meaning of Section 8-110 of the
UCC). The Pledged Accounts shall be governed by the laws of the State of New York. 
  
 (e) Except for the claims and interest of the Agent and of Borrower in the Pledged Accounts, the Collateral Agent represents and warrants that it does not know of any Lien on or claim to, or interest in, any Pledged
Account or in any “financial asset” (as defined in 

  

 43 

 
Section 8- 102(a) of the UCC) credited thereto. If any Person asserts any Lien, encumbrance or adverse claim (including any writ, garnishment, judgment,
warrant of attachment, execution or similar process) against the Pledged Accounts or in any financial asset carried therein, the Collateral Agent will promptly notify the Agent and Borrower thereof. 
  
 Section 2.15. Security Agreement. 
  
 (a) Pledge of Account. To secure the full and punctual payment and
performance of all of the Indebtedness, Borrower hereby assigns, conveys, pledges and transfers to the Agent on behalf of the Lenders as secured party, and grants Agent on behalf of the Lenders a first and continuing security interest in and to, the
following property, whether now owned or existing or hereafter acquired or arising and regardless of where located (collectively, the “Account Collateral”): 
  
 (i) all of Borrower’s right, title and interest in
Borrower’s Operating Account, the Local Deposit Trust Account, the Local Collection Account, the Parking Collection Account, the Security Deposit Account, and the Pledged Accounts and all Money and Permitted Investments, if any, from time to
time deposited or held in Borrower’s Operating Account, the Local Deposit Trust Account, the Local Collection Account, the Parking Collection Account, the Security Deposit Account, and the Pledged Accounts or purchased with funds or assets on
deposit in Borrower’s Operating Account, the Local Deposit Trust Account, the Local Collection Account, the Parking Collection Account, the Security Deposit Account, and the Pledged Accounts; 
  
 (ii) all of Borrower’s right, title and interest in
interest, dividends, Money, Instruments and other property from time to time received, receivable or otherwise payable in respect of, or in exchange for, any of the foregoing until such time as such items are disbursed from Borrower’s Operating
Account, the Local Deposit Trust Account, the Local Collection Account, the Parking Collection Account, the Security Deposit Account, and the Pledged Accounts; and 
  
 (iii) to the extent not covered by clause (i) or (ii) above, all Borrower’s right, title
and interest in Proceeds of any or all of the foregoing until such time as such items are disbursed from Borrower’s Operating Account, the Local Deposit Trust Account, the Local Collection Account, the Parking Collection Account, the Security
Deposit Account and the Pledged Accounts. 
  
 (b)
Covenants. So long as any portion of the Indebtedness is outstanding, Borrower shall not open (or permit Collateral Agent to open) any account other than the Local Deposit Trust Account, the Local Collection Account, the Parking Collection
Account or the Collection Account for the deposit of Rents or Money received from Accounts or under Leases and derived from the Mortgaged Property and all Proceeds to pay amounts owing hereunder, other than any account for amounts required by law to
be segregated by Borrower. Borrower shall not have any right to withdraw Money from any Reserve Account, which shall be under the sole dominion and control, and the “control” within the meaning of Sections 9-104 and 9-106 of the UCC, of
the Agent. Agent, Borrower and Collateral Agent agree that Collateral Agent will comply with instructions originated by Agent directing disposition of the funds in each Reserve Account and 

  

 44 

 
the Collection Account without further consent by Borrower. The Account Collateral shall be subject to such applicable laws, and such applicable regulations
of the Board of Governors of the Federal Reserve System and of any other banking authority or Governmental Authority, as may now or hereafter be in effect, and to the rules, regulations and procedures of Collateral Agent relating to demand deposit
accounts generally from time to time in effect. 
  
 (c)
Financing Statements; Further Assurances. Borrower hereby authorizes the filing of any financing statements or continuation statements, and amendments to financing statements, in any jurisdictions and with any filing offices as the Agent may
determine, in its sole discretion, are necessary or advisable to perfect the security interest granted to the Agent in connection herewith. Such financing statements may describe the collateral in the same manner as described in any security
agreement or pledge agreement entered into by the parties in connection herewith or may contain an indication or description of collateral that describes such property in any other manner as the Agent may determine, in its sole discretion, is
necessary, advisable or prudent to ensure the perfection of the security interest in the collateral granted to the Agent in connection herewith, including, without limitation, describing such property as “all assets” or “all personal
property” whether now owned or hereafter acquired. From time to time, at the expense of Borrower, Borrower shall promptly execute and deliver all further instruments, and take all further action, that Agent may reasonably request, in order to
continue the perfection and protection of the pledge and security interest granted or purported to be granted hereby. 
  
 (d) Transfers and Other Liens. Borrower shall not sell or otherwise dispose of any of the Account Collateral other than pursuant to the terms of
this Agreement and the other Loan Documents, or create or permit to exist any Lien upon or with respect to all or any of the Account Collateral, except for the Lien granted to Agent, and the rights of the institution acting as Agent, under or as
contemplated by this Agreement. 
  
 (e) No Waiver. Every
right and remedy granted to Agent under this Agreement or by law may be exercised by Agent at any time and from time to time, and as often as Agent may deem it expedient. Any and all of Agent’s rights with respect to the pledge of and security
interest in the Account Collateral granted hereunder shall continue unimpaired, and to the extent permitted by law, Borrower shall be and remain obligated in accordance with the terms hereof, notwithstanding (i) any proceeding of Borrower under the
United States Bankruptcy Code or any bankruptcy, insolvency or reorganization laws or statutes of any state, (ii) the release or substitution of Account Collateral at any time, or of any rights or interests therein or (iii) any delay, extension of
time, renewal, compromise or other indulgence granted by Agent in the event of any Default with respect to the Account Collateral or otherwise hereunder. No delay or extension of time by Agent in exercising any power of sale, option or other right
or remedy hereunder, and no notice or demand which may be given to or made upon Borrower by Agent, shall constitute a waiver thereof, or limit, impair or prejudice Agent’s right, without notice or demand, to take any action against Borrower or
to exercise any other power of sale, option or any other right or remedy. 
  
 (f) Agent Appointed Attorney-In-Fact. Borrower hereby irrevocably constitutes and appoints Agent as Borrower’s true and lawful attorney-in-fact, with full power of substitution, at any time after the
occurrence and during the continuation of an Event of Default, to execute, acknowledge and deliver any instruments and to exercise and enforce every right, power, 

  

 45 

 
remedy, option and privilege of Borrower with respect to the Account Collateral, and do in the name, place and stead of Borrower, all such acts, things and
deeds for and on behalf of and in the name of Borrower with respect to the Account Collateral, which Borrower could or might do or which Agent may deem necessary or desirable to more fully vest in Agent the rights and remedies provided for herein
with respect to the Account Collateral and to accomplish the purposes of this Agreement. The foregoing powers of attorney are irrevocable and coupled with an interest and shall terminate upon repayment of the Indebtedness in full. 
  
 (g) Continuing Security Interest; Termination. This Section
2.15 shall create a continuing pledge of and security interest in the Account Collateral and shall remain in full force and effect until payment in full by Borrower of the Indebtedness. Upon payment in full by Borrower of the Indebtedness, Agent
shall return to Borrower such of the Account Collateral as shall not have been applied pursuant to the terms hereof, and shall execute such instruments and documents as may be reasonably requested by Borrower to evidence such termination and the
release of the pledge and lien hereof. 
  
 (h) Right of
Set-off. Collateral Agent waives any and all rights it may have at law or otherwise to set off or make any claim against the Account Collateral, except, with respect to any checks returned for insufficient funds, and the payment of Collateral
Agent’s fees and expenses due under this Agreement (including reasonable attorney fees and disbursements) for the maintenance of the Account Collateral. 
  
 Section 2.16. Mortgage Recording Taxes. The Lien to be created by the Mortgage is intended to encumber the Mortgaged Property to the full extent of the Loan
Amount. On the Closing Date, Borrower shall have paid all state, county and municipal recording and all other taxes imposed upon the execution and recordation of the Mortgage, if any. 
  
 Section 2.17. Extension Option. 
  
 (a) Borrower shall have the option (each, an “Extension Option”), to extend the Maturity Date of the Note from the Payment Date in
July, 2006 (the “Original Maturity Date”), to the Payment Date in July, 2007 (the “First Extended Maturity Date”), from the First Extended Maturity Date to the Payment Date in July, 2008 (the
“Second Extended Maturity Date”), and from the Second Extended Maturity Date to the Payment Date in July, 2009 (the “Final Maturity Date”), upon satisfaction of each of the following conditions (the
“Extension Conditions”): 
  
 (i) Borrower shall have given written notice (each, an “Extension Notice”) to the Agent and Collateral Agent not less than sixty (60) days prior to the Original Maturity Date, the First Extended Maturity Date or the
Second Extended Maturity Date, as applicable, of its election to exercise the first or the second or the third Extension Option, as the case may be; 
  
 (ii) no Default or Event of Default shall have occurred and be continuing on the Original Maturity Date, the First Extended Maturity Date
or the Second Extended Maturity Date, as applicable; 
  
 (iii) Borrower shall have paid to the Agent for the benefit of the Lenders on the First Extended Maturity Date a fee in connection with an extension to the Second Extended 

  

 46 

 
Maturity Date equal to the product of 0.125% and the Principal Indebtedness as of the First Extended Maturity Date, and on the Second Extended Maturity Date
a fee in connection with an extension to the Final Maturity Date equal to the product of 0.125% and the Principal Indebtedness as of the Second Extended Maturity (in each case, taking into account any principal payments made on either such date)
(each such fee, an “Extension Fee”) (i.e. no Extension Fee shall be due and payable on the Original Maturity Date in connection with an extension to the First Extended Maturity Date); and 
  
 (iv) Borrower shall have purchased an interest rate cap for
the term of the extension (or renewed the existing interest rate cap for such period) in each case from or with a Qualified Interest Rate Cap Counterparty, with a notional amount equal to the outstanding Principal Indebtedness and a strike rate
equal to 5.00% and pursuant to documentation acceptable to the Agent and delivered to the Agent a fully executed Collateral Assignment of Hedge. 
  
 (b) Borrower may revoke any Extension Notice by written notice (or telephonic notice promptly confirmed in writing) to the Agent on behalf of the Lenders
and to the Collateral Agent on or prior to the tenth (10th) Business Day prior to the Original Maturity Date, the First Extended Maturity Date or the Second Extended Maturity Date, as applicable; provided, however, that Borrower shall
pay the reasonable out-of-pocket costs incurred by the Agent and Collateral Agent in connection with the giving of any Extension Notice and its revocation. If the term of the Loan is extended pursuant to the provisions of this Section 2.17,
then all the other terms and conditions of the Loan Documents shall remain in full force and effect and unmodified. 
  

	Section	2.18. General Collateral Agent Provisions. 

  
 (a) Appointment. The Lenders hereby designate and appoint LaSalle Bank National Association as Collateral Agent on behalf of the Lenders under this
Agreement, and authorize LaSalle Bank National Association, as Collateral Agent for the Lenders, to take such actions on their behalf under the provisions of this Agreement and to exercise such powers and perform such duties as are expressly
delegated to Collateral Agent by the terms of this Agreement, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, Collateral Agent shall not have any duties
or responsibilities, except those expressly set forth herein, or any fiduciary relationship with the Lenders, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other
Loan Document or otherwise exist against Collateral Agent. 
  
 (b)
Collateral Agent’s Right to Perform. If an Event of Default shall have occurred and be continuing, then Collateral Agent may, but shall have no obligation to, itself perform, or cause performance of, such covenant or obligation giving
rise to such Event of Default. The reasonable fees and expenses of Collateral Agent incurred in connection therewith shall be payable by Borrower to Collateral Agent upon demand, which obligation shall be secured by all Collateral. 
  

 47 

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

  

 48 

 
signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel and other experts selected in good faith by Collateral
Agent. Collateral Agent may deem and treat the payee of the Note as the owner thereof for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been filed with Collateral Agent. Collateral Agent shall be
fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of Agent as it deems appropriate or it shall first be indemnified to its satisfaction
by Agent against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. Provided that Collateral Agent acts in accordance with Accepted Practices, Collateral Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this Agreement in accordance with a request of Agent, and such request and any action taken or failure to act pursuant thereto shall be binding upon Agent and all future holders of
the Note. All requests to Collateral Agent for wire transfers of funds, for transfers between accounts established pursuant to this Agreement or any other transfer not specifically described in this Agreement shall be in writing. 
  
 (g) Notice of Default. Collateral Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default hereunder unless Collateral Agent has received written notice from Agent referring to this Agreement, describing such Default or Event of Default and stating that such notice
is a “notice of default”. Collateral Agent shall take such action with respect to such Default or Event of Default as shall be directed by Agent, including any action under this Agreement. 
  
 (h) Non-Reliance on Collateral Agent. Neither Collateral Agent nor any
of its officers, directors, employees, agents, attorneys, attorneys-in-fact or Affiliates has made any representations or warranties to the Lenders and no act by Collateral Agent hereinafter taken (including any review of the affairs of Borrower)
shall be deemed to constitute any representation or warranty by Collateral Agent to the Lenders. Except for notices, reports and other documents expressly required to be furnished to Agent by Collateral Agent hereunder, Collateral Agent shall not
have any duty or responsibility to provide the Lenders with any credit or other information concerning the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of Borrower which may come into the
possession of Collateral Agent or any of its officers, directors, employees, agents, attorneys, attorneys-in-fact or Affiliates. 
  
 (i) Removal and Resignation. Collateral Agent shall have the right to resign as collateral agent hereunder and Agent shall have the right to remove
Collateral Agent as collateral agent hereunder, in each case upon thirty (30) days’ written notice to the other parties to this Agreement. In the event of such resignation or removal, Agent shall appoint a successor Collateral Agent with the
consent of Borrower (such consent not to be unreasonably withheld or delayed), or at Agent’s option in Agent’s sole and absolute discretion Agent may assume and perform the rights and obligations of Collateral Agent. No such removal of or
resignation by Collateral Agent shall become effective until a successor Collateral Agent shall have accepted such appointment (or Agent shall have determined to designate itself as Collateral Agent) and executed an instrument by which it shall have
assumed all of the rights and obligations of Collateral Agent hereunder. If no such successor Collateral Agent is appointed within sixty (60) days (or, if fees payable under the Fee Letter have not been paid, thirty (30) days) after receipt of

  

 49 

 
the resigning Collateral Agent’s notice of resignation or removal, the resigning Collateral Agent may petition a court for the appointment of a
successor Collateral Agent unless Agent elects, in its sole and absolute discretion, to assume the rights and obligations of Collateral Agent itself. In connection with any removal of or resignation by Collateral Agent, (A) the removed or resigning
Collateral Agent shall (1) duly assign, transfer and deliver to the successor Collateral Agent this Agreement and all Money and Permitted Investments held by it hereunder, (2) execute such financing statements and other instruments as may be
necessary to assign to the successor Collateral Agent the security interest existing in favor of the retiring Collateral Agent hereunder, and to otherwise give effect to such succession and (3) take such other actions as may be reasonably required
by Borrower, Agent or the successor Collateral Agent in connection with the foregoing and (B) the successor Collateral Agent shall establish in its name, as agent for the Lenders, as secured party, the Collection Account and Reserve Account as
Borrower is required to maintain pursuant to the terms of this Agreement. 
  
 (j) Individual Capacity. Collateral Agent and its Affiliates may make loans to, accept deposits from and generally engage in any kind of business with Borrower or any Affiliate, as though Collateral Agent were
not Collateral Agent hereunder, or under the other Loan Documents. 
  
 Section
2.19. Approved Junior Mezzanine Loan. 
  
 Subject to the
provisions of this Section 2.19, Borrower shall have the right, at no cost or expense to Lender, to obtain an additional junior mezzanine loan (the “Approved Junior Mezzanine Loan”) with respect to the Mortgaged Property. The
initial principal amount of the Approved Junior Mezzanine Loan shall not be greater than the lesser of (x) $25,000,000 and (y) the amount that when combined with the outstanding Principal Indebtedness and the outstanding Mezzanine Loan Principal
Indebtedness causes the aggregate amount of debt financing secured directly or indirectly by the Mortgaged Property to equal 80% of the Borrower’s Basis in the Mortgaged Property. The closing of the Approved Junior Mezzanine Loan shall be
subject to the following conditions precedent: (x) the Borrower shall have obtained the prior approval of the Mezzanine Lender with respect to the identity of the lender under the Junior Mezzanine Loan (the “Approved Junior Mezzanine
Lender”) and the terms of the Approved Junior Mezzanine Loan, such approval not to be unreasonably withheld or delayed, (y) if the Loan has been included in a Secondary Market Transaction in which Securities were issued, Borrower shall
have delivered to the Agent a Rating Confirmation and (z) the Borrower shall have paid all out-of-pocket expenses incurred by the Agent in connection with the transaction. In connection with any Junior Mezzanine Loan, 
  
 (i) the Approved Junior Mezzanine Loan shall be made to a
special purpose, bankruptcy remote entity (the “Junior Mezzanine Borrower”) pursuant to applicable Rating Agency criteria that owns directly or indirectly one hundred percent (100%) of the ownership interest in Mezzanine
Borrower and shall be secured principally by a pledge of one hundred percent (100%) of Approved Junior Mezzanine Borrower’s direct and indirect ownership interests in Mezzanine Borrower; 
  
 (ii) Borrower shall cooperate with all reasonable requests
of Agent in order to obtain the Approved Junior Mezzanine Loan and shall execute and deliver such documents in 

  

 50 

 
compliance therewith as shall reasonably be required by Agent and any Rating Agency (including, without limitation, the delivery of new substantive
non-consolidation legal opinions and the modification of organizational documents and Loan Documents); and 
  
 (iii) the Agent, Mezzanine Lender and the Junior Mezzanine Lender shall have entered into the Junior Intercreditor Agreement in a form
reasonably acceptable to the Agent. 
  
 ARTICLE III.

 CONDITIONS PRECEDENT 
  
 Section 3.1. Conditions Precedent to Closing. The obligation of the initial Lender to make the Loan is subject to the satisfaction by Borrower (and Guarantor,
where applicable) or waiver by Agent and initial Lender of the following conditions no later than the Closing Date: 
  
 (a) Loan Agreement. Borrower, Collateral Agent, Agent and initial Lender shall have executed and delivered this Agreement. Agent shall have
received the fully-executed Local Deposit Bank Agreements. 
  
 (b)
Note. Borrower shall have executed and delivered to initial Lender the Note. 
  
 (c) Environmental Indemnity Agreement; Guaranty of Non-Recourse Obligations; Interest Rate Cap. Borrower and Guarantor shall have executed and delivered the Environmental Indemnity Agreement to the Agent for
benefit of the Lenders. Guarantor shall have executed and delivered the Guaranty of Non-Recourse Obligations. Borrower shall have delivered to the Agent the interest rate cap in a form acceptable to the Agent from a Qualified Interest Rate Cap
Provider with a notional amount equal to the Loan Amount and a strike rate equal to 5.00% and the fully executed Collateral Assignment of Hedge. 
  
 (d) Opinions of Counsel. The initial Lender and Collateral Agent shall have received from counsel to Borrower and Guarantor legal opinions in form
and substance acceptable to Agent, with respect to corporate matters and with respect to substantive non-consolidation of Mezzanine Borrower, Manager and TPG/CALSTRS, on the one hand, and Borrower on the other, in the event of the bankruptcy of
Mezzanine Borrower, Manager or TPG/CALSTRS. Such legal opinions shall be addressed to Agent and its successors and assigns, dated the Closing Date, and in form and substance reasonably satisfactory to Agent and its counsel. 
  
 (e) Organizational Documents. The initial Lender shall have received
with respect to each of Borrower and the Guarantor its certificate of formation or certificate of incorporation, as applicable, as amended, modified or supplemented to the Closing Date, as filed with the Secretary of State in the jurisdiction of
organization and in effect on the Closing Date and certified to be true, correct and complete by the appropriate Secretary of State as of a date not more than ten (10) days prior to the Closing Date, together with, if available, a good standing
certificate from such Secretary of State and, for Borrower only, a good standing certificate from the Secretaries of State (or the equivalent thereof) of each other State in which Borrower is required to be qualified to transact business.

  
 (f) Certified Resolutions, etc. The initial Lender
shall have received a certificate of each of Borrower and the Guarantor dated the Closing Date, certifying (i) the names and true 

  

 51 

 
signatures of its incumbent officers authorized to sign the Loan Documents to which Borrower or the Guarantor is a party, (ii) the Organizational Agreements
of Borrower as in effect on the Closing Date, (iii) the resolutions of Borrower and the Guarantor, approving and authorizing the execution, delivery and performance of the Loan Documents to which it is a party, and (iv) that there have been no
changes in any Organizational Agreement since the date of execution or preparation thereof. 
  
 (g) Additional Matters. The Agent shall have received such other certificates, opinions, documents and instruments relating to the Loan as may have been reasonably requested by Agent. All corporate and other
organizational proceedings, all other documents (including, without limitation, all documents referred to herein and not appearing as exhibits hereto) and all legal matters in connection with the Loan shall be reasonably satisfactory in form and
substance to Agent. 
  
 (h) Transaction Costs. Borrower
shall have paid all Transaction Costs for which bills have been submitted in accordance with the provisions of Section 8.23. 
  
 (i) No Default or Event of Default. No Default or Event of Default shall have occurred and be continuing on the Closing Date. 
  
 (j) No Injunction. No law or regulation shall have been adopted, no
order, judgment or decree of any Governmental Authority shall have been issued, and no litigation shall be pending or threatened, which in the good faith judgment of the initial Lender would enjoin, prohibit or restrain, or impose or result in the
imposition of any material adverse condition upon, the making or repayment of the Loan or the consummation of the Transaction. 
  
 (k) Representations and Warranties. The representations and warranties herein and in the other Loan Documents shall be true and correct in all
material respects on the Closing Date. 
  
 (l) Survey;
Appraisal. Agent shall have received the Survey and the Appraisal with respect to the Mortgaged Property, which shall be in form and substance reasonably satisfactory to Agent. 
  
 (m) Engineering Report; Seismic Study; Operations and Maintenance Plan. Agent shall have received each of the
Engineering Report, the Seismic Study and an asbestos “operations and maintenance” plan with respect to the Mortgaged Property prepared by an Engineer, which Engineering Report shall be reasonably acceptable to Agent. 
  
 (n) Environmental Matters. Agent shall have received an Environmental
Report prepared by an Environmental Auditor with respect to the Mortgaged Property, which Environmental Report shall be reasonably acceptable to Agent. 
  
 (o) Financial Information. Agent shall have received reasonably acceptable financial information relating to the Mortgaged Property. Such
information shall include the following, to the extent reasonably available: 
  
 (i) operating statements for the current year (including actual to date information, an annual budget and trailing twelve month data in hard copy and on diskette) and 

  

 52 

 
for not less than the three preceding years (including tenant improvements costs, leasing commissions, capital reserves, major repairs, replacement items and
occupancy rates in hard copy and on diskette); 
  
 (ii) copies of Leases with respect to the tenants of the Mortgaged Property, a copy of the standard lease form, if any, and tenant lease abstracts, if available; 
  
 (iii) current property rent roll data on a tenant by tenant basis in hard copy (including name, square
footage, lease term, expiration date, renewal options, base rent per square foot, sales volume psf (if applicable), percentage rent terms (if applicable), additional rent clauses (including stops, offsets, and other special provisions), escalation
clauses for increase in operating expense, maintenance, insurance, real estate taxes and utilities, assignment, sublet and cancellation provisions and purchase options); 
  
 (iv) current real estate tax bills and historical real estate tax bills of record for the Mortgaged Property
for not less than the three preceding years; 
  
 (v) insurance certificates indicating the type and amount of coverage; and 
  
 (vi) the most recent annual financial statements and unaudited quarterly financial statements. 
  
 The annual financial statements relating to the Mortgaged Property shall be either (x)
audited by a “Big Four” accounting firm or another firm of certified public accountants reasonably acceptable to Agent or (y) done in accordance with agreed upon procedures reasonably acceptable to Agent to be performed by a “Big
Four” accounting firm or another firm of certified public accountants reasonably acceptable to Agent to create similar information. 
  
 (p) Capital Budget; Leasing Budget; Operating Budget; Personal Financial Statement. Agent shall have received the Capital Budget and the Leasing
Budget which shall have been approved by Mezzanine Lender. Agent shall have received Operating Budget for the Mortgaged Property for the following twelve months which is acceptable to the Agent. The Agent shall have received the financial statements
of Guarantor, which shall be acceptable to the Agent. 
  
 (q)
Site Inspection. Borrower shall have provided to Agent the opportunity to perform, or cause to be performed on its behalf, an on-site due diligence review of the Mortgaged Property to be refinanced with the Loan which inspection is
satisfactory to Agent in its sole discretion. 
  
 (r) Mortgaged
Property Documents. 
  
 (i) Mortgage;
Assignment of Rents and Leases. Borrower shall have executed and delivered to Agent the Mortgage and the Assignment of Rents and Leases with respect to the Mortgaged Property and such Mortgage and Assignment of Rents and Leases shall have been
filed of record in the appropriate filing office in the jurisdiction in which the Mortgaged Property is located or irrevocably delivered to a title agent for such recordation. 
  

 53 

 (ii) Financing Statements. Borrower shall have executed and delivered to Agent all
financing statements required by Agent pursuant hereto and such financing statements shall have been filed of record in the appropriate filing offices in each of the appropriate jurisdictions or irrevocably delivered to a title agent for such
recordation. 
  
 (iii) Management Agreement
and Manager’s Subordination. With respect to the Mortgaged Property, Agent shall have received the executed Management Agreement and the Manager shall have executed and delivered the Manager’s Subordination to Agent. 
  
 (iv) Contract Assignment. With respect to the
Mortgaged Property, Borrower shall have executed and delivered to Agent a Contract Assignment with respect to the Mortgaged Property. 
  
 (s) Opinions of Counsel. Agent shall have received from counsel to Borrower its legal opinion in form and substance satisfactory to Agent, as to
the enforceability of the Mortgage and Assignment of Rents and Leases, perfection of Liens and security interests and other matters referred to therein. The legal opinions will be addressed to Agent and Lenders and their successors and assigns,
dated the Closing Date, and in form and substance reasonably satisfactory to Agent and its counsel. 
  
 (t) Insurance. Agent shall have received certificates of insurance demonstrating insurance coverage in respect of the Mortgaged Property of types,
in amounts, with insurers and otherwise in compliance with the terms, provisions and conditions set forth in this Agreement. Such certificates shall indicate that Agent is a named additional insured and shall contain a loss payee endorsement in
favor of Agent with respect to the property policies required to be maintained under this Agreement. 
  
 (u) Title Insurance Policy. Agent shall have received an unconditional commitment (in form and substance reasonably satisfactory to Agent) to issue
the Title Insurance Policy covering the Mortgaged Property with an amount of insurance reasonably acceptable to Agent up to maximum coverage equal to the Loan Amount. 
  
 (v) Lien Search Reports. Agent shall have received satisfactory reports of UCC (collectively, the “UCC
Searches”), tax lien, judgment and litigation searches and title updates conducted by the companies issuing the Title Insurance Policy with respect to the Collateral, Borrower and each member of Borrower, such searches to be conducted
in each of the locations required by Agent. 
  
 (w) Consents,
Licenses, Approvals, etc. Agent shall have received copies of all consents, licenses and approvals, if any, required in connection with the execution, delivery and performance by Borrower and Collateral Agent, and the validity and
enforceability, of the Loan Documents, and such consents, licenses and approvals shall be in full force and effect. 
  
 (x) Additional Real Estate Matters. Agent shall have received such other real estate related certificates and documentation relating to the
Mortgaged Property as Agent may have reasonably requested. Such documentation shall include the following as requested by Agent and to the extent reasonably available: 
  
 (i) certificates of occupancy issued by the appropriate Governmental Authority of the jurisdiction in which
the Mortgaged Property is located reflecting, and consistent with, the use of the Mortgaged Property as of the Closing Date; 
  

 54 

 (ii) letters from the appropriate local Governmental Authority of the jurisdiction in
which the Mortgaged Property is located, certifying that the Mortgaged Property is in compliance with all applicable zoning laws, rules and regulations, or a zoning endorsement to the applicable Title Insurance Policy with respect to the Mortgaged
Property or an opinion of zoning counsel to such effect or a report from The Planning and Zoning Resources Corporation acceptable to the Agent; 
  
 (iii) abstracts of all Leases in effect at the Mortgaged Property and copies of such of the Leases as Agent may request (in addition to
the copies delivered above); 
  
 (iv) an
Officer’s Certificate certifying (A) the purchase price paid by Borrower for the Mortgaged Property under the purchase and sale agreement for the Mortgaged Property, and (B) any post-closing costs or expenses incurred by Borrower that increased
Borrower’s Basis in the Mortgaged Property; 
  
 (v) estoppel certificates in form and substance acceptable to Agent in respect of the following commercial tenants: ARCO; Bank of America, NA; DMJM Rottet; Paul Hastings Janofsky & Walker LLP and City National Bank; and 
  
 (vi) graphics (including interior and exterior photographs,
rental brochures and a competitive properties map) as required by Agent. 
  
 (y) Closing Statement. The Agent and Borrower shall have agreed upon a detailed closing statement from Borrower in a form reasonably acceptable to the Agent, which includes a complete description of
Borrower’s sources and uses of funds on the Closing Date. 
  
 (z) Loan to Value Test; Loan to Cost Test; Borrower’s Basis. The Borrower shall have delivered to the Agent written evidence of the Borrower’s Basis in the Mortgaged Property as of the Closing Date, which evidence shall be
acceptable to the Agent. The Agent shall have determined that the Loan to Value Test and the Loan to Cost Test are satisfied. 
  
 Section 3.2. Execution and Delivery of Agreement. The execution and delivery of this Agreement by each party to this Agreement shall be deemed to constitute the
satisfaction or waiver of the conditions set forth in Section 3.1. 
  
 ARTICLE IV. 
 REPRESENTATIONS AND WARRANTIES 
  

	Section	4.1. Representations and Warranties as to Borrower. Borrower represents and warrants that, as of the Closing Date: 

  
 (a) Organization. Borrower (i) is a duly organized and validly
existing limited liability company in good standing under the laws of the State of Delaware, (ii) has the requisite power and authority to own its properties (including, without limitation, the Mortgaged Property) 

  

 55 

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

  

 56 

 
a major portion of its assets or property. To the best knowledge of Borrower, no Person is contemplating the filing of any such petition against it.

  
 (g) Solvency. Giving effect to the transactions
contemplated hereby, the fair saleable value of Borrower’s assets exceeds and will, immediately following the making of the Loan, exceed Borrower’s total liabilities (including, without limitation, subordinated, unliquidated, disputed and
contingent liabilities). The fair saleable value of Borrower’s assets is and will, immediately following the making of the Loan, be greater than Borrower’s probable liabilities (including the maximum amount of its contingent liabilities on
its debts as such debts become absolute and matured). Borrower’s assets do not and, immediately following the making of the Loan will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be
conducted. Borrower does not intend to, and does not believe that it will, incur debts and liabilities (including, without limitation, contingent liabilities and other commitments) beyond its ability to pay such debts as they mature (taking into
account the timing and amounts to be payable on or in respect of obligations of Borrower). 
  
 (h) Other Debt. Borrower has not borrowed or received other debt financing whether unsecured or secured by the Mortgaged Property or any part thereof. 
  
 (i) Full and Accurate Disclosure. No statement of fact made by or on
behalf of Borrower in this Agreement or in any of the other Loan Documents contains any untrue statement of material fact or omits to state any material fact necessary to make statements contained herein or therein not misleading. To the best
knowledge of Borrower, there is no fact that has not been disclosed to Agent that is likely to result in a Material Adverse Effect, including without limitation, the terms and conditions of the purchase and sale agreement pursuant to which Borrower
acquired the Mortgaged Property. 
  
 (j) Financial
Information. All financial statements and other data concerning Borrower and the Mortgaged Property that has been delivered by or on behalf of Borrower to Agent is true, complete and correct in all material respects and has been prepared in
accordance with GAAP. Since the delivery of such data, except as otherwise disclosed in writing to Agent, there has been no change in the financial position of Borrower or the Mortgaged Property, or in the results of operations of Borrower, which
change results or is reasonably likely to result in a Material Adverse Effect. Borrower has not incurred any obligation or liability, contingent or otherwise, not reflected in such financial data, which is likely to have a Material Adverse Effect
upon its business operations or the Mortgaged Property. 
  
 (k)
Investment Company Act; Public Utility Holding Company Act. Borrower is not (i) an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of
1940, as amended, (ii) a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a “holding company” or a “subsidiary company” within the meaning of
the Public Utility Holding Company Act of 1935, as amended, or (iii) subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money in accordance with this Agreement. 
  
 (l) Compliance. Borrower is in compliance with all applicable Legal
Requirements, except for noncompliance that is not reasonably likely to have a Material Adverse Effect. 

  

 57 

 
Borrower is not in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority except for defaults or violations
which are not reasonably likely to have a Material Adverse Effect. 
  
 (m) Use of Proceeds; Margin Regulations. Borrower will use the proceeds of the Loan for the purposes described in Section 2.2. No part of the proceeds of the Loan will be used for the purpose of purchasing or acquiring any
“margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors, or
for any purposes prohibited by Legal Requirements. 
  
 (n)
Single-Purpose Entity. 
  
 (i) Borrower at
all times since its formation has been a duly formed and existing limited liability company under the laws of the State of its formation and a Single-Purpose Entity. 
  
 (ii) Borrower at all times since its formation has complied with the provisions of its Organizational
Agreement since such agreement was executed and delivered and the laws of the State of Delaware relating to limited liability companies. 
  
 (iii) All customary formalities regarding the limited liability company existence of Borrower have been observed at all times since the
Organizational Agreement was executed and delivered. 
  
 (iv) Borrower has at all times since it began maintaining such items accurately maintained its financial statements, accounting records and other limited liability company documents separate from those of its members, Affiliates of its
members and any other Person. Borrower has not at any time since its formation commingled its assets with those of its members, any Affiliates of its members, or any other Person. Borrower has at all times since establishing its own bank accounts
accurately maintained its own bank accounts and separate books of account. 
  
 (v) Borrower has at all times since receiving funds paid its own liabilities from its own separate assets. 
  
 (vi) Borrower has at all times since its formation identified itself in all dealings with the public, under its own name and as a separate
and distinct entity. Borrower has not at any time since its formation identified itself as being a division or a part of any other entity. Borrower has not at any time since its formation identified its members or any Affiliates of its members as
being a division or part of Borrower. 
  
 (vii)
Borrower is as of the date hereof adequately capitalized in light of the nature of its business. 
  
 (viii) Borrower has not at any time since its formation assumed or guaranteed the liabilities of its members (or any predecessor entity),
any Affiliates of its members, or any other Persons, except for liabilities relating to the Collateral. Borrower has not at any time since 

  

 58 

 
its formation acquired obligations or securities of its members (or any predecessor entity), or any Affiliates of its members or any other Person. Borrower
has not at any time since its formation pledged its assets for the benefit of any other entity (other than the Agent) or made loans or advances to its members (or any predecessor entity), or any Affiliates of its members or any other Person.

  
 (ix) Borrower has not at any time since its
formation entered into and was not a party to any transaction with its members (or any predecessor entity) or any Affiliates of its members, except for in the ordinary course of business of Borrower on terms which are no less favorable to Borrower
than would be obtained in a comparable arm’s length transaction with an unrelated third party (other than in connection with the execution by Borrower and Manager of the Management Agreement). 
  
 (o) No Defaults. No Default or Event of Default exists under or with
respect to any Loan Document. 
  
 (p) Plans and Welfare
Plans. The assets of Borrower are not treated as “plan assets” under regulations currently promulgated under ERISA. Each Plan, and, to the best knowledge of Borrower, each Multiemployer Plan, is in compliance in all material respects
with, and has been administered in all material respects in compliance with, its terms and the applicable provisions of ERISA, the Code and any other federal or state law, and no event or condition has occurred and is continuing as to which Borrower
would be under an obligation to furnish a report to Lender under Section 5.1(v)(i). Other than an application for a favorable determination letter with respect to a Plan, there are no pending issues or claims before the Internal Revenue
Service, the United States Department of Labor or any court of competent jurisdiction related to any Plan or Welfare Plan. No event has occurred, and there exists no condition or set of circumstances, in connection with any Plan or Welfare Plan
under which Borrower or, to the best knowledge of Borrower, any ERISA Affiliate, directly or indirectly (through an indemnification agreement or otherwise), is reasonably likely to be subject to any material risk of liability under Section 409 or
502(i) of ERISA or Section 4975 of the Code. No Welfare Plan provides or will provide benefits, including, without limitation, death or medical benefits (whether or not insured) with respect to any current or former employee of Borrower, or, to the
best knowledge of Borrower, any ERISA Affiliate beyond his or her retirement or other termination of service other than (i) coverage mandated by applicable law, (ii) death or disability benefits that have been fully provided for by fully paid up
insurance or (iii) severance benefits. 
  
 (q) Additional
Borrower UCC Information. Borrower’s organizational identification number is 3789285 and the full legal name of Borrower is as set forth on the signature pages hereof and Borrower has not done in the last five (5) years, and does not do,
business under any other name (including any trade-name or fictitious business name). 
  
 (r) Not Foreign Person. Borrower is not a “foreign person” within the meaning of § 1445(f)(3) of the Code. 
  

(s) Labor Matters. Borrower is not a party to any collective bargaining agreements. 
  

 59 

 (t) Pre-Closing Date Activities. Borrower has not conducted any business or other activity on or
prior to the Closing Date, other than in connection with the acquisition, management and ownership of the Mortgaged Property. 
  
 (u) No Bankruptcies or Criminal Proceedings Involving Borrower or Related Parties. No bankruptcy, insolvency, reorganization or comparable
proceedings have ever been instituted by or against Borrower, any Affiliate of Borrower, any Guarantor or any individual or entity owning, with his, her or its family members, 20% or more of the direct, or indirect beneficial ownership interests in
Borrower (each such Guarantor, individual, or entity being herein referred to as a “Principal”), and no such proceeding is now pending or contemplated. None of Borrower, any Principal, or to Borrower’s knowledge, any
other individual or entity directly or indirectly owning or controlling, or the family members of which own or control, any direct or indirect beneficial ownership interest in Borrower or in the Manager or asset manager for the Mortgaged Property,
have been charged, indicted or convicted, or are currently under the threat of charge, indictment or conviction, for any felony or crime punishable by imprisonment. 
  
 (v) No Prohibited Persons. Neither Borrower, Guarantor nor any of their respective officers, directors, shareholders,
partners, members or Affiliates, if applicable (including, without limitation, the indirect holders of equity interests in Borrower) is or will be an entity or person: (i) that is listed in the Annex to, or is otherwise subject to the provisions of
Executive Order 13224 issued on September 24, 2001 (“EO13224”); (ii) whose name appears on the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”) most current list of
“Specifically Designated National and Blocked Persons” (which list may be published from time to time in various mediums including, but not limited to, the OFAC website, http:www.treas.gov/ofac/t11sdn.pdf); (iii) who commits, threatens to
commit or supports “terrorism”, as that term is defined in EO13224; or (iv) who is otherwise affiliated with any entity or person listed above (any and all parties or persons described in clauses (i) through (iv) above are herein referred
to as a “Prohibited Person”). 
  
 Section 4.2.
Representations and Warranties as to the Mortgaged Property. Borrower hereby represents and warrants to the Agent that, as to the Mortgaged Property and the Mortgage, as of the Closing Date: 
  
 (a) Title to the Mortgaged Property. Borrower owns good, marketable
and insurable fee simple title to the applicable Land, free and clear of all Liens, other than the Permitted Encumbrances applicable to the Land. Borrower owns the other Mortgaged Property free and clear of any and all Liens, other than Permitted
Encumbrances. There are no outstanding options to purchase or rights of first refusal or restrictions on transferability affecting such Mortgaged Property. 
  
 (b) Utilities and Public Access. The Mortgaged Property has adequate rights of access to public ways and is served by water, electric, sewer,
sanitary sewer and storm drain facilities. All public utilities necessary to the continued use and enjoyment of the Mortgaged Property as presently used and enjoyed are located in the public right-of-way abutting the premises, and all such utilities
are connected so as to serve the Mortgaged Property without passing over other property except for land or easement areas of or available to the utility company providing such utility service. All roads necessary for the full utilization of the

  

 60 

 
Mortgaged Property for its current purpose have been completed and dedicated to public use and accepted by all Governmental Authorities or are the subject of
access easements for the benefit of the Mortgaged Property. 
  
 (c) Condemnation. No Taking has been commenced or, to the best of Borrower’s knowledge, is contemplated with respect to all or any portion of the Mortgaged Property or for the relocation of roadways providing access to the
Mortgaged Property. 
  
 (d) Compliance. The Mortgaged
Property is in compliance with all applicable Legal Requirements (including, without limitation, building and zoning ordinances and codes) and all applicable Insurance Requirements, except for noncompliance which is not reasonably likely to have a
Material Adverse Effect. 
  
 (e) Environmental Compliance.
Except for matters set forth in the Environmental Reports delivered to Agent in connection with the Loan (true, correct and complete copies of which have been provided to Agent by Borrower): 
  
 (i) Borrower is in full compliance with all applicable
Environmental Laws (which compliance includes, but is not limited to, the possession by Borrower or the Manager of all environmental, health and safety permits, licenses and other governmental authorizations required in connection with the ownership
and operation of the Mortgaged Property under all Environmental Laws), except for noncompliance which is not reasonably likely to have a Material Adverse Effect. 
  
 (ii) There is no Environmental Claim pending or, to the actual knowledge of Borrower, threatened, and no
penalties arising under Environmental Laws have been assessed, against Borrower or the Manager or, to the actual knowledge of Borrower, against any Person whose liability for any Environmental Claim Borrower or the Manager has or may have retained
or assumed either contractually or by operation of law, and no investigation or review is pending or, to the actual knowledge of Borrower, threatened by any Governmental Authority, citizens group, employee or other Person with respect to any alleged
failure by Borrower or the Manager or the Mortgaged Property to have any environmental, health or safety permit, license or other authorization required under, or to otherwise comply with, any Environmental Law or with respect to any alleged
liability of Borrower or the Manager for any Use or Release of any Hazardous Substances. 
  
 (iii) There are no present and, to the best of Borrower’s knowledge, there have been no past Releases of any Hazardous Substance that
are reasonably likely to form the basis of any Environmental Claim against Borrower, the Manager or against any Person whose liability for any Environmental Claim Borrower or the Manager has or may have retained or assumed either contractually or by
operation of law. 
  
 (iv) Without limiting the
generality of the foregoing, there is not present at, on, in or under the Mortgaged Property, PCB-containing equipment, asbestos or asbestos containing materials, underground storage tanks or surface impoundments for Hazardous Substances, lead in
drinking water (except in concentrations that comply with all Environmental Laws), or lead based paint, the presence of which is reasonably likely to result in a Material Adverse Effect. 
  

 61 

 (v) No liens are presently recorded with the appropriate land records under or pursuant
to any Environmental Law with respect to the Mortgaged Property and no Governmental Authority has been taking or, to the actual knowledge of Borrower, is in the process of taking any action that could subject the Mortgaged Property to Liens under
any Environmental Law. 
  
 (vi) There have been
no environmental investigations, studies, audits, reviews or other analyses conducted by or that are in the possession of Borrower in relation to the Mortgaged Property which have not been made available to the Agent. 
  
 (f) Mortgage and Other Liens. The Mortgage creates a valid and
enforceable first priority Lien on the Mortgaged Property described therein, as security for the repayment of the Indebtedness, subject only to the Permitted Encumbrances applicable to the Mortgaged Property. This Agreement creates a valid and
enforceable first priority Lien on all Account Collateral. Each Collateral Security Instrument establishes and creates a valid, subsisting and enforceable Lien on and a security interest in, or claim to, the rights and property described therein.
All property covered by any Collateral Security Instrument in which a security interest can be perfected by the filing of a financing statement is subject to a UCC financing statement filed and/or recorded, as appropriate (or irrevocably delivered
to an agent for such recordation or filing) in all places necessary to perfect a valid first priority Lien with respect to the rights and property that are the subject of such Collateral Security Instrument to the extent governed by the UCC.

  
 (g) Assessments. There are no pending nor, to the best
knowledge of Borrower, proposed special or other assessments for public improvements or otherwise affecting the Mortgaged Property, nor are there any contemplated improvements to the Mortgaged Property that may result in such special or other
assessments. 
  
 (h) No Joint Assessment; Separate Lots.
Borrower has not suffered, permitted or initiated the joint assessment of the Mortgaged Property (i) with any other real property constituting a separate tax lot, and (ii) with any portion of the Mortgaged Property which may be deemed to constitute
personal property, or any other procedure whereby the lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to the Mortgaged Property as a single lien. The Mortgaged Property is comprised of one
or more parcels, each of which constitutes a separate tax lot and none of which constitutes a portion of any other tax lot. 
  
 (i) No Prior Assignment. The Agent is the collateral assignee of Borrower’s interest under the Leases. There are no prior assignments of the
Leases or any portion of the Rent due and payable or to become due and payable which are presently outstanding. 
  
 (j) Permits; Certificate of Occupancy. Borrower has obtained all Permits necessary to the use and operation of the Mortgaged Property except where
the failure to obtain such Permits is not reasonably likely to have a Material Adverse Effect. The use being made of the Mortgaged Property is in conformity with the certificate of occupancy and/or such Permits for the Mortgaged Property and any
other restrictions, covenants or conditions affecting the Mortgaged Property. 
  

 62 

 (k) Flood Zone. Except as shown on the Survey, the Mortgaged Property described therein is not
located in a flood hazard area as defined by the Federal Insurance Administration. 
  
 (l) Physical Condition. Except as set forth in the Engineering Report, to the best knowledge of Borrower, the Mortgaged Property is free of structural defects and all building systems contained therein are in
good working order subject to ordinary wear and tear. 
  
 (m)
Security Deposits. Borrower and the Manager are in compliance with all Legal Requirements relating to all security deposits with respect to the Mortgaged Property, except where the failure to comply is not reasonably likely to result in a
Material Adverse Effect. 
  
 (n) Intellectual Property. All
material Intellectual Property that Borrower owns or has pending, or under which it is licensed, are in good standing and uncontested. There is no right under any Intellectual Property necessary to the business of Borrower as presently conducted or
as Borrower contemplates conducting its business. Borrower has not infringed, is not infringing, and has not received notice of infringement with respect to asserted Intellectual Property of others. There is no infringement by others of material
Intellectual Property of Borrower. 
  
 (o) No
Encroachments. Except as shown on the Survey, to the best knowledge of Borrower, (i) all of the Improvements which were included in determining the appraised value of the Mortgaged Property lie wholly within the boundaries and building
restriction lines of the Mortgaged Property, (ii) no improvements on adjoining properties encroach upon the Mortgaged Property, (iii) no easements or other encumbrances upon the Mortgaged Property encroach upon any of the Improvements, so as to
materially and adversely affect the value or marketability of the Mortgaged Property and (iv) all of the Improvements comply with all material requirements of any applicable zoning and subdivision laws and ordinances. 
  
 (p) Management Agreement. The Management Agreement is in full force
and effect. There is no default, breach or violation existing thereunder by Borrower or, to the best knowledge of Borrower, any other party thereto and no event (other than payments due but not yet delinquent) which, with the passage of time or with
notice and the expiration of any grace or cure period, would constitute a default, breach or violation by Borrower or, to the best knowledge of Borrower, any other party thereunder or entitle Borrower or, to the best knowledge of Borrower, any other
party thereto to terminate any such agreement. 
  
 (q)
Leases. The Mortgaged Property is not subject to any Leases other than the Leases described in the rent roll delivered to Agent in connection with the making of the Loan. No person has any possessory interest in the Mortgaged Property or
right to occupy the same except under and pursuant to the provisions of the Leases. The current Leases are in full force and effect and there are no defaults thereunder by either party and no conditions which with the passage of time and/or notice
would constitute defaults thereunder, except for such defaults as are not reasonably likely to result in a Material Adverse Effect. 
  
 Section 4.3. Survival of Representations. Borrower agrees that (i) all of the representations and warranties of Borrower set forth in Section 4.1 and
4.2 and in the other Loan Documents delivered on the Closing Date are made as of the Closing Date, and (ii) all representations and 

  

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warranties made by Borrower shall survive the delivery of the Note and making of the Loan and continue for so long as any amount remains owing to the Lenders
under this Agreement, the Note or any of the other Loan Documents; provided, however, that the representations set forth in Section 4.2(e) shall survive in perpetuity. All representations, warranties, covenants and agreements
made in this Agreement or in the other Loan Documents shall be deemed to have been relied upon by the Lenders and Collateral Agent notwithstanding any investigation heretofore or hereafter made by the Lenders and Collateral Agent or on their behalf.

  
 ARTICLE V. 
 AFFIRMATIVE COVENANTS 
  
 Section 5.1. Affirmative Covenants. Borrower covenants and agrees that, from the date hereof and until payment in full of the Indebtedness: 
  
 (a) Existence; Compliance with Legal Requirements: Insurance. Borrower
shall do or cause to be done all things necessary to preserve, renew and keep in full force and effect its existence as a limited liability company, rights, licenses, Permits and franchises necessary for the conduct of its business and comply with
all Legal Requirements and Insurance Requirements applicable to it and the Mortgaged Property, except for such non-compliance which is not reasonably likely to result in a Material Adverse Effect. Borrower shall at all times maintain, preserve and
protect all franchises and trade names and preserve all the remainder of its property necessary for the continued conduct of its business and keep the Mortgaged Property in good repair, working order and condition, except for reasonable wear and use
(and except for casualty losses as to which other provisions hereof shall govern), and from time to time make, or cause to be made, all reasonably necessary repairs, renewals, replacements, betterments and improvements thereto. Borrower shall or
shall cause its tenants to keep the Mortgaged Property insured at all times, by financially sound and reputable insurers, to such extent and against such risks, and maintain liability and such other insurance, as more fully provided in this
Agreement, and otherwise perform and comply with all obligations of Borrower under the Mortgage. 
  
 (b) Basic Carrying Costs and Other Claims. Borrower shall pay and discharge all Impositions, as well as all lawful claims for labor, materials and
supplies or otherwise when due and payable all as more fully provided in, and subject to any rights to contest contained in, the Mortgage. Borrower shall pay all Basic Carrying Costs with respect to Borrower and the Mortgaged Property in accordance
with the provisions of the Mortgage and this Agreement, subject, however, to Borrower’s rights to contest payment of Impositions in accordance with the Mortgage. Borrower’s obligation to pay Basic Carrying Costs pursuant to this Agreement
shall include, to the extent permitted by applicable law, Impositions resulting from future changes in law which impose upon a Lender an obligation to pay any property taxes on the Mortgaged Property or other Impositions. Borrower shall (x) pay its
trade payables within forty-five (45) days from the date such trade payables are incurred and (y) not permit its trade payables to exceed 2% of the Principal Indebtedness. 
  
 (c) Litigation. Borrower shall give prompt written notice to Agent of any litigation or governmental proceedings
pending or threatened (in writing) against Borrower, or the Mortgaged Property which is reasonably likely to have a Material Adverse Effect. 
  

 64 

 (d) Environmental Remediation. 
  
 (i) If any investigation, site monitoring, cleanup, removal, restoration or other remedial work of any kind
or nature is required pursuant to an order or directive of any Governmental Authority or under any applicable Environmental Law, because of or in connection with the current or future presence, suspected presence, Release or suspected Release of a
Hazardous Substance on, under or from the Mortgaged Property or any portion thereof (collectively, the “Remedial Work”), Borrower shall promptly commence and diligently prosecute to completion all such Remedial Work, and
shall conduct such Remedial Work in accordance with the National Contingency Plan promulgated under the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq., if applicable, and in accordance with other
applicable Environmental Laws. In all events, such Remedial Work shall be commenced within such period of time as required under any applicable Environmental Law; provided, however, that Borrower shall not be required to commence such
Remedial Work within the above specified time periods: (x) if prevented from doing so by any Governmental Authority, (y) if commencing such Remedial Work within such time periods would result in Borrower or such Remedial Work violating any
Environmental Law or (z) if Borrower, at its expense and after prior notice to Agent, is contesting by appropriate legal, administrative or other proceedings conducted in good faith and with due diligence the need to perform Remedial Work, as long
as (1) Borrower is permitted by the applicable Environmental Laws to delay performance of the Remedial Work pending such proceedings, (2) neither the Mortgaged Property nor any part thereof or interest therein shall be sold, forfeited or lost if
Borrower does not perform the Remedial Work being contested, and Borrower would have the opportunity to do so, in the event of Borrower’s failure to prevail in the contest, (3) the Lenders would not, by virtue of such permitted contest, be
exposed to any risk of any civil liability for which Borrower has not furnished additional security as provided in clause (4) below, or to any risk of criminal liability, and neither the Mortgaged Property nor any interest therein would be
subject to the imposition of any lien for which Borrower has not furnished additional security as provided in clause (4) below, as a result of the failure to perform such Remedial Work and (4) Borrower shall have furnished to the Agent
additional security in respect of the Remedial Work being contested and the loss or damage that may result from Borrower’s failure to prevail in such contest in such amount as may be reasonably requested by the Agent. 
  
 (ii) If requested by the Agent, all Remedial Work under
clause (i) above shall be performed by contractors, and under the supervision of a consulting Engineer, each approved in advance by the Agent which approval shall not be unreasonably withheld or delayed. Borrower shall pay all costs and
expenses reasonably incurred in connection with such Remedial Work. If Borrower does not timely commence and diligently prosecute to completion the Remedial Work, the Agent may (but shall not be obligated to), upon 30 days prior written notice to
Borrower of its intention to do so, cause such Remedial Work to be performed. Borrower shall pay or reimburse the Agent on demand for all expenses (including reasonable attorneys’ fees and disbursements, but excluding internal overhead,
administrative and similar costs of the Lenders) reasonably relating to or incurred by the Agent in connection with monitoring, reviewing or performing any Remedial Work in accordance herewith. 
  
 (iii) Borrower shall not commence any Remedial Work under
clause (i) above, nor enter into any settlement agreement, consent decree or other compromise relating to any 

  

 65 

 
Hazardous Substances or Environmental Laws without providing notice to the Agent as provided in Section 5.1(f). Notwithstanding the foregoing, if the
presence or threatened presence of Hazardous Substances on, under, about or emanating from the Mortgaged Property poses an immediate threat to the health, safety or welfare of any Person or the environment, or is of such a nature that an immediate
response is necessary or required under applicable Environmental Law, Borrower may complete all necessary Remedial Work. In such events, Borrower shall notify Agent as soon as practicable and, in any event, within three Business Days, of any action
taken. 
  
 (e) Environmental Matters: Inspection.

  
 (i) Borrower shall not permit a Hazardous
Substance to be present on, under or to emanate from the Mortgaged Property, or migrate from adjoining property controlled by Borrower onto or into the Mortgaged Property, except under conditions permitted by applicable Environmental Laws and, in
the event that such Hazardous Substances are present on, under or emanate from the Mortgaged Property, or migrate onto or into the Mortgaged Property, Borrower shall cause the removal or remediation of such Hazardous Substances, in accordance with
this Agreement and Environmental Laws (including, where applicable, the National Contingency Plan promulgated pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42, U.S.C. § 9601 et seq. ), either on its own
behalf or by causing a tenant or other party primarily at fault to perform such removal and remediation. Borrower shall use commercially reasonable efforts to prevent, and to seek the remediation of, any migration of Hazardous Substances onto or
into the Mortgaged Property from any adjoining property. 
  
 (ii) Upon reasonable prior written notice, the Agent shall have the right, except as otherwise provided under Leases, at all reasonable times during normal business hours to enter upon and inspect all or any portion
of the Mortgaged Property, provided that such inspections shall not unreasonably interfere with the operation or the tenants, residents or occupants of the Mortgaged Property. If the Agent has reasonable grounds to suspect that Remedial Work
may be required, the Agent shall notify Borrower and, thereafter, may select a consulting Engineer to conduct and prepare reports of such inspections (with notice to Borrower prior to the commencement of such inspection). Borrower shall be given a
reasonable opportunity to review any reports, data and other documents or materials reviewed or prepared by the Engineer, and to submit comments and suggested revisions or rebuttals to same. The inspection rights granted to the Agent in this
Section 5.1(e) shall be in addition to, and not in limitation of, any other inspection rights granted to the Agent in this Agreement, and shall expressly include the right (if the Agent reasonably suspects that Remedial Work may be required)
to conduct soil borings, establish ground water monitoring wells and conduct other customary environmental tests, assessments and audits. 
  
 (iii) Borrower agrees to bear and shall pay or reimburse the Lenders on demand for all sums advanced and reasonable expenses incurred
(including reasonable attorneys’ fees and disbursements, but excluding internal overhead, administrative and similar costs of the Lenders) reasonably relating to, or incurred by Lenders in connection with, the inspections and reports described
in this Section 5.1(e) (to the extent such inspections and reports relate to the Mortgaged Property) in the following situations: 
  
 (x) If the Agent has reasonable grounds to believe, at the time any such inspection is ordered, that there exists an occurrence or
condition that could lead to an Environmental Claim; 
  

 66 

 (y) If any such inspection reveals an occurrence or condition that is reasonably likely
to lead to an Environmental Claim; or 
  
 (z) If
an Event of Default with respect to the Mortgaged Property exists at the time any such inspection is ordered, and such Event of Default relates to any representation, covenant or other obligation pertaining to Hazardous Substances, Environmental
Laws or any other environmental matter. 
  
 (iv)
Attached hereto as Schedule 2 is a true, correct and complete copy of the operations and maintenance plan to operate and maintain the Mortgaged Property in compliance with Environmental Laws and in such a manner as to minimize the risks posed
by such Hazardous Substances (including asbestos) as may exist at the Mortgaged Property (the “O&M Plan”). Borrower shall at all times diligently implement the O&M Plan. The O&M Plan and its implementation shall
be in all respects satisfactory to Agent in its reasonable discretion. 
  
 (f) Environmental Notices. Borrower shall promptly provide notice to Agent of: 
  
 (i) any Environmental Claim asserted by any Governmental Authority with respect to any Hazardous Substance on, in, under or emanating from
the Mortgaged Property, which might involve remediation cost or liability greater than $25,000; 
  
 (ii) any proceeding, investigation or inquiry commenced or threatened in writing by any Governmental Authority, against Borrower, with
respect to the presence, suspected presence, Release or threatened Release of Hazardous Substances from or onto, in or under any property not owned by Borrower (including, without limitation, proceedings under the Comprehensive Environmental
Response, Compensation, and Liability Act, as amended, 42 U.S.C. §9601, et seq.), which might involve remediation cost or liability greater than $25,000; 
  
 (iii) all Environmental Claims asserted or threatened against Borrower, against any other party occupying
the Mortgaged Property or any portion thereof which become known to Borrower or against the Mortgaged Property, which might involve remediation cost or liability greater than $25,000; 
  
 (iv) the discovery by Borrower of any occurrence or condition on the Mortgaged Property or on any real
property adjoining or in the vicinity of the Mortgaged Property which could involve remediation cost or liability greater than $25,000; 
  
 (v) the commencement or completion of any Remedial Work; and 
  
 (vi) any of the foregoing clauses (i) – (v) that a tenant notifies to Borrower under a Lease with
respect to such tenant. 
  
 (g) Copies of Notices. Borrower
shall transmit to the Agent copies of any citations, orders, notices or other written communications received from any Person and any notices, 

  

 67 

 
reports or other written communications submitted to any Governmental Authority with respect to the matters described in Section 5.1(f). 

 
 (h) Environmental Claims. The Agent may join and participate in, as
a party if the Agent so determines, any legal or administrative proceeding or action concerning the Mortgaged Property or any portion thereof under any Environmental Law, if, in the Agent’s reasonable judgment, the interests of the Lenders
shall not be adequately protected by Borrower; provided, however, that the Lenders shall not participate in day-to-day decision making with respect to environmental compliance. Borrower shall pay or reimburse the Lenders on demand for
all reasonable sums advanced and reasonable expenses incurred (including reasonable attorneys’ fees and disbursements, but excluding internal overhead, administrative and similar costs of the Lenders) by the Lenders in connection with any such
action or proceeding. 
  
 (i) Environmental
Indemnification. Borrower shall indemnify, reimburse, defend, and hold harmless the Agent, each Lender, the Collateral Agent and each of its respective parents, subsidiaries, Affiliates, shareholders, directors, officers, employees,
representatives, agents, successors, assigns and attorneys (collectively, the “Indemnified Parties”) for, from, and against all demands, claims, actions or causes of action, assessments, losses, damages, liabilities, costs
and expenses (including, without limitation, interest, penalties, reasonable attorneys’ fees, disbursements and expenses, and reasonable consultants’ fees, disbursements and expenses (but excluding internal overhead, administrative, lost
opportunity and similar costs of the Lenders and the Collateral Agent)), asserted against, resulting to, imposed on, or incurred by any Indemnified Party, directly or indirectly, in connection with any of the following (except to the extent same are
directly and solely caused by the gross negligence or willful misconduct of any Indemnified Party and except that any Indemnified Party shall not be indemnified against claims resulting from actions taken or events occurring with respect to the
Mortgaged Property after the Agent forecloses its Lien or security interest upon the Mortgaged Property or accepts a deed in lieu of foreclosure or is a so-called “mortgagee-in-possession” unless and to the extent such indemnification
relates to any of the following which occurred while Borrower owned the Mortgaged Property): 
  
 (i) events, circumstances, or conditions which form the reasonable basis for an Environmental Claim; 
  
 (ii) any pollution or threat to human health or the
environment that is related in any way to Borrower’s or any previous owner’s or operator’s management, use, control, ownership or operation of the Mortgaged Property (including, without limitation, all on-site and off-site activities
involving Hazardous Substances), and whether occurring, existing or arising prior to or from and after the date hereof, and whether or not the pollution or threat to human health or the environment is described in the Environmental Reports;

  
 (iii) any Environmental Claim against any
Person whose liability for such Environmental Claim Borrower has or may have assumed or retained either contractually or by operation of law; or 
  
 (iv) the breach of any representation, warranty or covenant set forth in Section 4.2(e) and Sections 5.1(d) through
5.1(i), inclusive. 
  

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 The provisions of and undertakings and indemnification set forth in this Section 5.1(i) shall survive the
satisfaction and payment of the Indebtedness and termination of this Agreement. 
  
 (j) General Indemnity. 
  
 (i) Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties for, from and against any and all claims, suits, liabilities (including, without
limitation, strict liabilities), administrative and judicial actions and proceedings, obligations, debts, damages, losses, costs, expenses, fines, penalties, charges, fees, expenses, judgments, awards, amounts paid in settlement, and litigation
costs, of whatever kind or nature and whether or not incurred in connection with any judicial or administrative proceedings (including, but not limited to, reasonable attorneys’ fees and other reasonable costs of defense) (the
“Losses”) imposed upon or incurred by or asserted against any Indemnified Parties (except to the extent same are directly and solely caused by the gross negligence or willful misconduct of any Indemnified Party) and directly
or indirectly arising out of or in any way relating to any one or more of the following: 
  
 (A) ownership of the Note, any of the other Loan Documents or the Mortgaged Property or any interest therein or receipt of any Rents or
Accounts; 
  
 (B) any untrue statement of any
material fact contained in any information concerning Borrower, the Mortgaged Property or the Loan or the omission to state therein a material fact required to be stated in such information or necessary in order to make the statements in such
information or in light of the circumstances under which they were made not misleading; 
  
 (C) any and all lawful action that may be taken and is taken by the Lender in connection with the enforcement of the provisions of this
Agreement, the Note or any of the other Loan Documents, whether or not suit is filed in connection with same, or in connection with Borrower or any Affiliate of Borrower becoming a party to a voluntary or involuntary federal or state bankruptcy,
insolvency or similar proceeding; 
  
 (D) any
accident, injury to or death of persons or loss of or damage to property occurring in, on or about the Mortgaged Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways;

  
 (E) any use, nonuse or condition in, on or
about the Mortgaged Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; 
  
 (F) any failure on the part of Borrower to perform or be in compliance with any of the terms of this Agreement or any of the other Loan
Documents; 
  
 (G) performance of any labor or
services or the furnishing of any materials or other property in respect of the Mortgaged Property or any part thereof pursuant to provisions of this Agreement; 
  

 69 

 (H) the failure of Borrower to file timely with the Internal Revenue Service an accurate
Form 1099-B, Statement for Recipients of Proceeds from Real Estate, Broker and Barter Exchange Transactions, which may be required in connection with this Agreement; 
  
 (I) any failure of the Mortgaged Property to be in compliance with any Legal Requirement; 
  
 (J) the enforcement by any Indemnified Party of the
provisions of this Section 5.1(j); and 
  
 (K) any and all claims and demands whatsoever which may be asserted against the Lenders by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants, or agreements contained in any
Lease. 
  
 Any amounts payable to an Indemnified Party by reason of the
application of this Section 5.1(j)(i) shall become due and payable ten (10) days after written demand and shall bear interest at the Default Rate from the tenth (10th) day after demand until paid. 
  
 (ii) Borrower shall, at its sole cost and expense, protect,
defend, indemnify, release and hold harmless the Indemnified Parties from and against any and all Losses imposed upon or incurred by or asserted against any of the Indemnified Parties and directly or indirectly arising out of or in any way relating
to any tax on the making and/or recording of this Agreement, the Note or any of the other Loan Documents. 
  
 (iii) Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties from and
against any and all Losses (including, without limitation, reasonable attorneys’ fees and costs incurred in the investigation, defense, and settlement of Losses incurred in correcting any prohibited transaction or in the sale of a prohibited
loan, and in obtaining any individual prohibited transaction exemption under ERISA that may be required, in the Lender’s reasonable discretion) that the Indemnified Parties may incur, directly or indirectly, as a result of a default under
Borrower’s covenants with respect to ERISA and employee benefits plans contained herein. 
  
 (iv) Promptly after receipt by an Indemnified Party under this Section 5.1(j) of notice of the making of any claim or the
commencement of any action, such Indemnified Party shall, if a claim in respect thereof is to be made by such Indemnified Party against Borrower under this Section 5.1(j), notify Borrower in writing, but the omission so to notify Borrower
will not relieve Borrower from any liability which it may have to any Indemnified Party under this Section 5.1(j) or otherwise unless and to the extent that Borrower did not otherwise possess knowledge of such claim or action and such failure
resulted in the forfeiture by Borrower of substantial rights and defenses. In case any such claim is made or action is brought against any Indemnified Party and such Indemnified Party seeks or intends to seek indemnity from Borrower, Borrower will
be entitled to participate in, and, to the extent that it may wish, to assume the defense thereof with counsel reasonably satisfactory to the Indemnified Party; and, upon receipt of notice from Borrower to such Indemnified Party of its election so
to assume the defense of such claim or action and only upon approval by the Indemnified Party of such counsel 

  

 70 

 
(such approval not to be unreasonably withheld or delayed), Borrower will not be liable to such Indemnified Party under this Section 5.1(j) for any
legal or other expenses subsequently incurred by such Indemnified Party in connection with the defense thereof. Notwithstanding the preceding sentence, each Indemnified Party will be entitled to employ counsel separate from such counsel for Borrower
and from any other party in such action if such Indemnified Party reasonably determines that a conflict of interest exists which makes representation by counsel chosen by Borrower not advisable. In such event, Borrower shall pay the reasonable fees
and disbursements of such separate counsel, subject to reimbursement of such costs if the Indemnified Party requiring such separate counsel is found not to be entitled to the indemnity protection of this Section 5.1(j). Borrower shall not,
without the prior written consent of an Indemnified Party, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought
hereunder (whether or not such Indemnified Party is an actual or potential party to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each Indemnified Party from all liability arising out of
such claim, action, suit or proceeding. Each Indemnified Party shall not enter into a settlement of or consent to the entry of any judgment with respect to any action, claim, suit or proceeding as to which an Indemnified Party would be entitled to
indemnification hereunder without the prior written consent of Borrower. 
  
 The
provisions of and undertakings and indemnification set forth in this Section 5.1(j) shall survive the satisfaction and payment of the Indebtedness and termination of this Agreement. 
  
 (k) Access to Mortgaged Property. Borrower shall permit agents,
representatives and employees of the Agent to inspect the Mortgaged Property or any part thereof at such reasonable times as may be requested by Agent upon reasonable advance written notice, subject, however, to the rights of Borrower and of the
tenants of the Mortgaged Property. 
  
 (l) Notice of
Default. Borrower shall promptly advise Agent in writing of any change in Borrower’s condition, financial or otherwise, that is reasonably likely to have a Material Adverse Effect, or of the occurrence of any Default or Event of Default.

  
 (m) Cooperate in Legal Proceedings. Except with respect
to any claim by Borrower, Mezzanine Borrower, the Guarantor or any of their Affiliates against the Agent or any Lender, Borrower shall reasonably cooperate with Agent with respect to any proceedings before any Governmental Authority that are
reasonably likely to in any way materially affect the rights of the Lenders hereunder or any rights obtained by the Lenders under any of the Loan Documents and, in connection therewith, shall not prohibit Agent, at its election, from participating
in any such proceedings. 
  
 (n) Perform Loan Documents.
Borrower shall observe, perform and satisfy all the terms, provisions, covenants and conditions required to be observed, performed or satisfied by it, and shall pay when due all costs, fees and expenses required to be paid by it, under the Loan
Documents. 
  
 (o) Insurance Benefits. Borrower shall
reasonably cooperate with Agent in obtaining for the Lenders the benefits of any Insurance Proceeds lawfully or equitably payable to Borrower 

  

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or Lenders in connection with the Mortgaged Property. Agent shall be reimbursed for any expenses reasonably incurred in connection therewith (including
reasonable attorneys’ fees and disbursements, but excluding internal overhead, administrative and similar costs of Agent) out of such Insurance Proceeds, all as more specifically provided in this Agreement. 
  
 (p) Further Assurances. Borrower shall, at Borrower’s sole cost
and expense: 
  
 (i) upon Agent’s reasonable
request therefor given from time to time, pay for (a) reports of UCC, tax lien, judgment and litigation searches with respect to Borrower, and (b) searches of title to the Mortgaged Property, each such search to be conducted by search firms
designated by Agent in each of the locations designated by Agent; 
  
 (ii) furnish to Agent all instruments, documents, certificates, title and other insurance reports and agreements, and each and every other document, certificate, agreement and instrument required to be furnished
pursuant to the terms of the Loan Documents; 
  
 (iii) execute and deliver to Agent such documents, instruments, certificates, assignments and other writings, and do such other acts necessary, to evidence, preserve and/or protect the Collateral at any time securing or intended to secure
the Note, as Agent may reasonably require (including, without limitation, tenant estoppel certificates, an amended or replacement Mortgage, UCC financing statements or Collateral Security Instruments); and 
  
 (iv) do and execute all and such further lawful and
reasonable acts, conveyances and assurances for the better and more effective carrying out of the intents and purposes of this Agreement and the other Loan Documents, as Agent shall reasonably require from time to time. 
  
 (q) Management of Mortgaged Property. 
  
 (i) The Mortgaged Property shall be managed at all times by
the Manager or another manager reasonably satisfactory to Agent, pursuant to a Management Agreement. Any such manager may be an Affiliate of Borrower, provided that: (a) the terms and conditions of such manager’s engagement are at arm’s
length, reasonable, competitive and customary in the applicable marketplace; and (b) Agent has approved such manager and such terms, which approval shall not be unreasonably withheld or delayed. Borrower shall cause the manager of the Mortgaged
Property to agree that such manager’s management agreement is subject and subordinate in all respects to the Lien of the Mortgage. A Management Agreement may be terminated (1) by Borrower at any time in accordance with the provisions of such
Management Agreement so long as a successor manager as specified below shall have been appointed and such successor manager has (i) entered into a Management Agreement, subject to any modifications approved by Agent, which approval shall not be
unreasonably denied, conditioned or delayed, and (ii) has executed and delivered the Manager’s Subordination to Agent, and (2) by Agent upon thirty (30) days’ prior written notice to Borrower and the Manager (a) upon the occurrence and
continuation of an Event of Default or (b) if the Manager commits any act which would permit termination under the Management Agreement (subject to any applicable notice, grace and cure periods provided in the Management Agreement) or (c) if a
change of majority control occurs with respect to the Manager. Borrower may from time to time appoint a successor 

  

 72 

 
manager to manage the Mortgaged Property with Agent’s prior written consent, such consent not to be unreasonably withheld. Notwithstanding the
foregoing, any successor manager selected hereunder by Agent or Borrower to manage the Mortgaged Property shall be a reputable management company having substantial experience in the management of real property of a similar type, size and quality in
the state in which the Mortgaged Property is located. Notwithstanding anything herein to the contrary, if the Loan has been included in a Secondary Market Transaction in which Securities are issued, neither the Agent or Borrower shall appoint a
successor or replacement manager, without first having obtained a Rating Confirmation. Borrower further covenants and agrees that any manager of Mortgaged Property shall at all times while any Indebtedness is outstanding maintain worker’s
compensation insurance as required by Governmental Authorities. 
  
 (ii) Borrower further covenants and agrees that the Mortgaged Property shall be operated pursuant to the Management Agreement and that Borrower shall: (w) promptly perform and/or observe all of the material covenants
and agreements required to be performed and observed by it under the Management Agreement and do all things reasonably necessary to preserve and to keep unimpaired its material rights thereunder; (x) promptly notify the Agent of any material default
under the Management Agreement of which it is aware; (y) promptly deliver to the Agent a copy of each financial statement, business plan, capital expenditures plan, notice and report received by it under the Management Agreement, including, but not
limited to, financial statements; and (z) promptly enforce the performance and observance of the covenants and agreements required to be performed and/or observed by the Manager under the Management Agreement. 
  
 (r) Financial Reporting. 
  
 (i) Borrower shall keep and maintain or shall cause to be
kept and maintained on a Fiscal Year basis in accordance with GAAP consistently applied, books, records and accounts reflecting in reasonable detail all of the financial affairs of Borrower and all items of income and expense in connection with the
operation of the Mortgaged Property and ownership of the Mortgaged Property and in connection with any services, equipment or furnishings provided in connection with the operation of the Mortgaged Property, whether such income or expense may be
realized by Borrower or by any other Person whatsoever. Agent shall have the right from time to time at all times during normal business hours upon reasonable prior written notice to Borrower to examine such books, records and accounts at the office
of Borrower or other Person maintaining such books, records and accounts and to make such copies or extracts thereof as Agent shall desire. During the continuation of an Event of Default (including, without limitation, an Event of Default resulting
from the failure of the Borrower to deliver any of the financial information required to be delivered pursuant to this Section 5.1(r)), Borrower shall pay any reasonable costs and expenses incurred by Agent to examine Borrower’s
accounting records, as Agent shall reasonably determine to be necessary or appropriate in the protection of the Lenders’ interest. 
  
 (ii) Borrower shall furnish to Agent annually, within ninety (90) days following the end of each Fiscal Year, a complete copy of
Borrower’s financial statements audited by a “Big Four” accounting firm or such other Independent certified public accountant acceptable to Agent in accordance with GAAP consistently applied covering Borrower’s 

  

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financial position and results of operations, for such Fiscal Year and containing a statement of revenues and expenses, a statement of assets and liabilities
and a statement of Borrower’s equity, all of which shall be in form and substance reasonably acceptable to Agent. Agent shall have the right from time to time to review and consult with respect to the auditing procedures used in the preparation
of such annual financial statements. Together with Borrower’s annual financial statements, Borrower shall furnish to Agent an Officer’s Certificate certifying as of the date thereof (x) that the annual financial statements present fairly
in all material respects the results of operations and financial condition of Borrower all in accordance with GAAP consistently applied, and (y) whether there exists an Event of Default or Default, and if such Event of Default or Default exists, the
nature thereof, the period of time it has existed and the action then being taken to remedy same. 
  
 (iii) Borrower shall furnish to Agent, within sixty (60) days following the end of each Fiscal Year quarter true, complete and correct
quarterly unaudited financial statements prepared with respect to Borrower for the fiscal quarter then ended, accompanied by an Officer’s Certificate certifying that such financial statements are true, complete and correct. 
  
 (iv) Borrower shall furnish to Agent, within fifteen (15)
Business Days after request, such further information with respect to the operation of the Mortgaged Property and the financial affairs of Borrower as may be reasonably requested by Agent, including all business plans prepared for Borrower.

  
 (v) Borrower shall furnish to Agent, within
fifteen (15) Business Days after request, such further information regarding any Plan or Multiemployer Plan and any reports or other information required to be filed under ERISA as may be reasonably requested by Agent in writing. 
  
 (vi) At least thirty (30) days prior to the end of each of
Borrower’s Fiscal Years, Borrower shall submit or cause to be submitted to Agent for its approval, such approval not to be unreasonably withheld or delayed, an Operating Budget for the next Fiscal Year for the Mortgaged Property. Until so
approved by Agent for the subsequent Fiscal Year, the Operating Budget approved by Agent for the preceding Fiscal Year shall remain in effect for purposes of Section 2.12; provided, that for so long as such prior Operating Budget
remains in effect, amounts set forth in the prior Operating Budget with respect to Property Expenses shall be deemed increased on a percentage basis by an amount equal to the greater of (x) actual increases then known to Borrower and (y) the
increase in the Consumer Price Index (expressed as a percentage) as measured over the calendar year that the prior Operating Budget was in effect. No more often that once per fiscal quarter, Borrower may submit an amendment to an Operating Budget
during the Fiscal Year covered by such Operating Budget. If Agent does not respond to Borrower’s request for approval of a new or amended Operating Budget within ten (10) days after Agent’s receipt of such request, Borrower may send a
second request for approval. Such second request shall contain on the face thereof, in large, bold and otherwise conspicuous font, the following notice: “TIME SENSITIVE BUDGET APPROVAL REQUEST. AGENT’S FAILURE TO RESPOND TO THIS REQUEST
WITHIN TEN (10) DAYS AFTER AGENT’S RECEIPT OF THE SAME SHALL BE DEEMED AN APPROVAL BY AGENT.” Provided that Borrower’s second request contains the above notice, Agent’s failure 

  

 74 

 
to respond to such request within ten (10) days after receipt of such second notice shall be deemed an approval by Agent. 
  
 (s) Operation of Mortgaged Property. Borrower shall cause the
operation of the Mortgaged Property to be conducted at all times in a manner consistent with at least the level of operation of the Mortgaged Property as of the Closing Date, including, without limitation, the following: 
  
 (i) to maintain or cause to be maintained the standard of
the Mortgaged Property at all times at a level not lower than that maintained by prudent managers of similar facilities or land in the region where the Mortgaged Property is located; 
  
 (ii) to operate or cause to be operated the Mortgaged Property in a prudent manner in compliance in all
material respects with applicable Legal Requirements and Insurance Requirements relating thereto and maintain or cause to be maintained all licenses, Permits and any other agreements necessary for the continued use and operation of the Mortgaged
Property; and 
  
 (iii) to maintain or cause to
be maintained sufficient Inventory and Equipment of types and quantities at the Mortgaged Property to enable Borrower to operate the Mortgaged Property and to comply in all material respects with all Leases affecting the Mortgaged Property.

  
 (t) Single-Purpose Entity. 
  
 (i) Borrower at all times will continue to be a duly formed
and validly existing limited liability company under the laws of the State of its formation and a Single-Purpose Entity. 
  
 (ii) Borrower shall at all times comply with the provisions of its Organizational Agreement and the laws of the State of its formation
relating to limited liability companies. 
  
 (iii) Borrower shall observe all customary formalities regarding its existence. 
  
 (iv) Borrower shall accurately maintain its financial statements, accounting records and other limited liability company documents
separate from those of its members, Affiliates of its members and any other Person. Borrower shall not commingle its assets with those of its members, any Affiliates of its members, or any other Person. Borrower shall continue to accurately maintain
its own bank accounts and separate books of account. 
  
 (v) Borrower shall continue to pay its own liabilities from its own separate assets. 
  
 (vi) Borrower shall continue to identify itself in all dealings with the public, under its own name or trade names and as a separate and
distinct entity. Borrower shall not identify itself as being a division or a part of any other entity. Borrower shall not identify its members or any Affiliates of its members as being a division or part of Borrower. 
  

 75 

 (vii) Borrower shall continue to be adequately capitalized in light of the nature of its
business. 
  
 (viii) Borrower shall not assume or
guarantee the liabilities of its members (or any predecessor entity), any Affiliates of its members or any other Persons, except for liabilities relating to the Mortgaged Property. Borrower shall not acquire obligations or securities of its members
(or any predecessor entity), or any Affiliates of its members or any other Persons. Except for the Liens granted pursuant to the Loan Documents, Borrower shall not pledge its assets for the benefit of any other Person (other than the Agent) or make
loans or advances to its members (or any predecessor entity), or any Affiliates of its members or any other Persons. 
  
 (ix) Borrower shall not enter into or be a party to any transaction with its members (or any predecessor corporation, partnership or
limited liability company) or any Affiliates of its members, except for in the ordinary course of business on terms which are no less favorable to Borrower than would be obtained in a comparable arm’s length transaction with an unrelated third
party (other than in connection with the execution by Borrower and the Manager of the Management Agreement). 
  
 (u) ERISA. Borrower shall deliver to Agent as soon as possible, and in any event within ten days after Borrower knows or has reason to believe that
any of the events or conditions specified below with respect to any Plan or Multiemployer Plan has occurred or exists, an Officer’s Certificate setting forth details respecting such event or condition and the action, if any, that Borrower or
its ERISA Affiliate proposes to take with respect thereto (and a copy of any report or notice required to be filed with or given to PBGC by Borrower or an ERISA Affiliate with respect to such event or condition): 
  
 (i) any reportable event, as defined in Section 4043(b) of
ERISA and the regulations issued thereunder, with respect to a Plan, as to which PBGC has not by regulation waived the requirement of Section 4043(a) of ERISA that it be notified within thirty (30) days of the occurrence of such event (provided that
a failure to meet the minimum funding standard of Section 412 of the Code or Section 302 of ERISA, including, without limitation, the failure to make on or before its due date a required installment under Section 412(m) of the Code or Section 302(e)
of ERISA, shall be a reportable event regardless of the issuance of any waivers in accordance with Section 412(d) of the Code); and any request for a waiver under Section 412(d) of the Code for any Plan; 
  
 (ii) the distribution under Section 4041(c) of ERISA of a
notice of intent to terminate any Plan or any action taken by Borrower or an ERISA Affiliate to terminate any Plan; 
  
 (iii) the institution by PBGC of proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Plan, or the receipt by Borrower or any ERISA Affiliate of Borrower of a notice from a Multiemployer Plan that such action has been taken by PBGC with respect to such Multiemployer Plan; 
  
 (iv) the complete or partial withdrawal from a Multiemployer
Plan by Borrower or any ERISA Affiliate of Borrower that results in material liability under Section 4201 or 4204 of ERISA (including the obligation to satisfy secondary liability as a result of a 

  

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purchaser default) or the receipt by Borrower or any ERISA Affiliate of Borrower of notice from a Multiemployer Plan that it is in reorganization or
insolvency pursuant to Section 4241 or 4245 of ERISA or that it intends to terminate or has terminated under Section 4041A of ERISA; 
  
 (v) the institution of a proceeding by a fiduciary of any Multiemployer Plan against Borrower or any ERISA Affiliate of Borrower to
enforce Section 515 of ERISA, which proceeding is not dismissed within thirty (30) days; 
  
 (vi) the adoption of an amendment to any Plan that, pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA, would result in
the loss of tax-exempt status of the trust of which such Plan is a part if Borrower or an ERISA Affiliate of Borrower fails to timely provide security to the Plan in accordance with the provisions of said Sections; and 
  
 (vii) the imposition of a lien or a security interest in
connection with a Plan. 
  
 (v) Reserved. 
  
 (w) Secondary Market Transaction. Borrower acknowledges that Agent and
its successors and assigns may (i) sell the Loan to one or more investors as a whole loan, (ii) participate the Loan to one or more investors, (iii) deposit the Loan with a trust, which trust may sell certificates to investors evidencing an
ownership interest in the trust assets, or (iv) otherwise sell the Loan or interest therein to investors (the transactions referred to in clauses (i) through (iv) above are hereinafter each referred to as a “Secondary Market
Transaction”). Borrower shall cooperate with Agent in attempting to effect or effecting any such Secondary Market Transaction and shall cooperate in attempting to implement or implementing all requirements imposed by any Rating Agency
involved in any Secondary Market Transaction, including but not limited to, 
  
 (i) providing Agent an estoppel certificate and such information, legal opinions and documents (including updated non-consolidation opinions) relating to Borrower, the Guarantor, Mezzanine Borrower, the Mortgaged
Property and any tenants of the Mortgaged Property as Agent or the Rating Agencies or other Interested Parties (as defined below), may reasonably request in connection with such Secondary Market Transaction, including, without limitation, updated
financial information, appraisals, market studies, environmental reviews (Phase I’s and, if appropriate, Phase II’s), Mortgaged Property condition reports and other due diligence investigations together with appropriate verification of
such updated information and reports through letters of auditors and consultants, as of the closing date of the Secondary Market Transaction, 
  
 (ii) amending the Loan Documents and Organizational Agreement of Borrower, updating and/or restating officer’s certificates, title
insurance and other closing items, and providing updated representations and warranties in Loan Documents and such additional representations and warranties as may be required by Agent or the Rating Agencies, (including, without limitation, amending
Section 5.1(z)(ii) of this Agreement to establish the size of proposed Lease which requires the prior written consent of the Agent, provided such threshold shall not be more restrictive to Borrower than the standard set forth in the Mezzanine
Loan Agreement), 
  

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 (iii) participating in bank, investors and Rating Agencies’ meetings if requested by
Agent, 
  
 (iv) upon Agent’s request,
amending the Loan Documents (and updating and/or restating officer’s certificates, title insurance and other closing items in connection therewith) to divide the Loan into a first and a second mortgage loan, or into a one or more loans secured
by mortgages and by ownership interests in Borrower in whatever proportion Agent determines, which separated loans may have different interest rates and amortization schedules (but with aggregated financial terms which are equivalent to that of the
Loan prior to such separation, including, so long as an Event of Default has not occurred and is not continuing, a ratable allocation of prepayments among the Loan components) and thereafter to engage in separate Secondary Market Transactions with
respect to all or any part of the indebtedness and loan documentation, and 
  
 (v) reviewing the offering documents relating to any Secondary Market Transaction to ensure that all information concerning Borrower, the Guarantor, the Mortgaged Property, and the Loan is correct, and certifying to
the accuracy thereof. 
  
 Agent shall be permitted to share all such information
with the investment banking firms, Rating Agencies, accounting firms, law firms and other third-party advisory firms and trustees, purchasers, transferees, assignees, trustees, servicers and actual or potential investors involved with the Loan and
the Loan Documents or the applicable Secondary Market Transaction (collectively, “Interested Parties”). Lender and all of the aforesaid Interested Parties shall be entitled to rely on the information supplied by, or on behalf
of, Borrower. Lender may publicize the existence of the Loan in connection with its marketing for a Secondary Market Transaction or otherwise as part of its business development. Borrower shall provide such reasonable access to the Mortgaged
Property and personnel of the Manager and of Borrower’s constituent members and the business and operations of all of the foregoing as Lender or other Interested Parties may request in connection with any such Secondary Market Transaction.
Borrower understands that any such information may be incorporated into any offering circular, prospectus, prospectus supplement, private placement memorandum or other offering documents for any Secondary Market Transaction. Without limiting the
foregoing, Borrower and Guarantor shall provide in connection with each of (i) a preliminary and a final private placement memorandum or (ii) a preliminary and final prospectus or prospectus supplement, as applicable (the documents referred to in
the foregoing clauses (i) and (ii), collectively, the “Disclosure Documents”), an agreement certifying that Borrower and Guarantor have examined such Disclosure Documents specified by Agent and that each such Disclosure
Document, as it relates to Borrower, Guarantor, any Affiliates, the Mortgaged Property and Manager, does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the
light of the circumstances under which they were made, not misleading (a “Disclosure Certificate”). Borrower and Guarantor shall indemnify, defend, protect and hold harmless Agent, each Lender, its Affiliates, directors,
employees, agents and each Person, if any, who controls Agent, such Lender or any such Affiliate within the meaning of Section 15 of the Securities Act of 1933 or Section 20 of the Securities Exchange Act of 1934, and any other placement agent or
underwriter with respect to any Secondary Market Transaction from and against any losses, claims, damages, liabilities, costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) that arise out of or are
based upon any untrue 

  

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statement of any material fact contained in any Disclosure Certificate or other information or documents furnished by Borrower, Guarantor or their Affiliates
or in any representation or warranty of any Borrower contained herein or in the other Loan Documents or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated in such information or
necessary in order to make the statements in such information not materially misleading. In any Secondary Market Transaction, Agent may transfer its obligations under this Loan Agreement and under the other Loan Documents (or may transfer the
portion thereof corresponding to the transferred portion of the Indebtedness), and thereafter Agent shall be relieved of any obligations hereunder and under the other Loan Documents arising after the date of said transfer with respect to the
transferred interest. Each transferee investor shall become a “Lender” hereunder. The holders from time to time of the Loan and/or any other interest of the “Lender” under this Loan Agreement and the other Loan Documents may from
time to time enter into one or more co-lender or similar agreements in their discretion. Borrower acknowledges and agrees that such agreements, as the same may from time to time be amended, modified or restated, may govern the exercise of the powers
and discretionary authority of the Agent hereunder and under the other Loan Documents, but Borrower shall be entitled to rely upon any actions taken by Agent or the designated servicer(s) or agent(s) for Agent, whether or not within the scope of its
power and authority under such other agreements. The Agent shall be responsible for the payment of the reasonable out-of-pocket expenses incurred by the Borrower in complying with this Section 5.1(w). 
  
 (x) Insurance. 
  
 (i) Borrower, at its sole cost and expense, shall keep the
Improvements and Equipment insured (including, but not limited to, any period of renovation, alteration and/or construction) during the term of the Loan with the coverage and in the amounts required under this Agreement for the mutual benefit of
Borrower and Agent against loss or damage by fire, lightning, wind and such other perils as are customarily included in a standard “all-risk” form and against loss or damage by other risks and hazards covered by a standard extended
coverage insurance policy (including, without limitation, riot and civil commotion, vandalism, malicious mischief and such other coverages as may be reasonably required by Agent on the special form (also known as an all risk form)). Such insurance
shall be in an amount (i) equal to at least the greater of then full replacement cost of the Improvements and Equipment (exclusive of the cost of foundations and footings), without deduction for physical depreciation and the outstanding Principal
Indebtedness, and (ii) such that the insurer would not deem Borrower a co-insurer under said policies. The policies of insurance carried in accordance with this Section 5.1(x) shall contain the “Replacement Cost Endorsement” with a
no co-insurance provision. If terrorism coverage is excluded on an “all-risk” basis, then Borrower shall obtain coverage for “certified acts of terrorism” (as defined in TRIA) and “fire following” by endorsement to such
policy or by a separate policy in the standalone terrorism market. Such terrorism coverage shall be in an amount equal to the lesser of (A) the sum of the Principal Indebtedness and the Mezzanine Loan Principal Indebtedness, and (B) the amount of
terrorism insurance coverage that Borrower can purchase (using reasonably diligent efforts) for an annual premium equal to the Terrorism Premium Cap. If terrorism coverage is obtained, in whole or in part, through a blanket policy, then, with
respect to the blanket policy, the premium to be used in determining the amount of coverage that is required under clause (B) above shall be the portion of such blanket policy premium allocable to the Mortgaged Property as reasonably
determined by Borrower (and 

  

 79 

 
reasonably approved by Lender). By way of example, if Borrower has $250 million of terrorism insurance coverage on the Mortgaged Property carried under a
blanket insurance policy with an insurance premium equal to $750,000 per year (of which $350,000 is allocable to the Mortgaged Property as reasonably determined by Borrower (and reasonably approved by Lender)), then although it may cost Borrower an
additional $450,000 to purchase the full amount of terrorism insurance required under clause (A) above, because of the limitation under clause (B) above, Borrower would only be required to expend an additional $425,000 to obtain
whatever additional terrorism insurance is available for that premium. Notwithstanding the foregoing, Agent shall not unreasonably withhold its consent to reductions in the stated amounts and types of coverage required to be maintained by Borrower
hereunder if such levels of coverage or types of insurance, as determined by Agent in its sole discretion, (A) are not available at commercially reasonable rates (except for terrorism coverage, for which Borrower agrees that premiums for terrorism
coverage not in excess of the Terrorism Premium Cap are commercially reasonable), and (B) are not at the time commonly maintained for properties similar to the Mortgaged Property and located in or around the region in which the Mortgaged Property is
located. 
  
 (ii) Borrower, at its sole cost and
expense, for the mutual benefit of Borrower and Agent, shall also obtain and maintain or cause to be obtained and maintained during the entire term of the Loan the following policies of insurance: 
  
 (A) flood insurance, if any part of the Mortgaged Property
is located in an area identified by the Federal Emergency Management Agency as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968, the Flood Disaster Protection
Act of 1973 or the National Flood Insurance Reform Act of 1994 (and any amendment or successor act thereto) in an amount at least equal to the maximum limit of coverage available with respect to the Improvements and Equipment under said Act;

  
 (B) Comprehensive General Liability or
Commercial General Liability insurance, including a broad form comprehensive general liability endorsement and coverage for broad form property damage, contractual damages, personal injuries (including death resulting therefrom) and a liquor
liability endorsement if liquor is sold on the Mortgaged Property, containing minimum limits of liability of $1 million for both injury to or death of a person and for property damage per occurrence and $2 million in the aggregate for the Mortgaged
Property, and such other liability insurance reasonably requested by Agent; in addition, at least $75 million excess and/or umbrella liability insurance shall be obtained and maintained for any and all claims, including all legal liability imposed
upon Borrower and all court costs and attorneys’ fees incurred in connection with the ownership, operation and maintenance of the Mortgaged Property; 
  
 (C) business interruption insurance (including rental value) in an annual aggregate amount equal to the estimated gross revenues from the
Leases of the Mortgaged Property (including, without limitation, the loss of all Rents and additional Rents payable by all of the lessees under the Leases (whether or not such Leases are terminable in the event of a fire or casualty)), such
insurance to cover losses for a period of the longer of (x) one year (or, if the Loan has been included in a Secondary Market Transaction in which Securities are issued and the Rating Agencies so require, eighteen (18) months) after the date of the
fire or 

  

 80 

 
casualty in question or (y) the period from the time of loss until all repairs are fully completed with reasonable diligence and dispatch, plus an extended
period of indemnity commencing at the time repairs are completed for a period of not less than 180 days and to be increased or decreased, as applicable, from time to time during the term of the Loan if, and when, the gross revenues from the Leases
of the Mortgaged Property materially increase or decrease, as applicable (including, without limitation, increases from new Leases and renewal Leases entered into in accordance with the terms of this Agreement), to reflect all increased Rent and
increased additional Rent payable by all of the lessees under such renewal Leases and all Rent and additional Rent payable by all of the lessees under such new Leases; 
  
 (D) insurance against loss or damage from (x) leakage of sprinkler systems and (y) explosion of steam
boilers, air conditioning equipment, high pressure piping, machinery and equipment, pressure vessels or similar apparatus now or hereafter installed in the Improvements (without exclusion for explosions), covering all boilers or other pressure
vessels, machinery and equipment located in, on, or about the Improvements; coverage is required in an amount at least equal to the full replacement cost of such equipment and the building or buildings housing same and shall extend to electrical
equipment, sprinkler systems, heating and air conditioning equipment, refrigeration equipment and piping; 
  
 (E) worker’s compensation insurance coverage (in amounts not less than the statutory minimums for all persons employed by Borrower or
its tenants at the Mortgaged Property and in compliance with all other requirements of applicable local, state and federal law) and “Employers Liability” insurance in amounts not less than required by statute; 
  
 (F) during any period of repair or restoration,
builder’s “all risk” insurance in an amount equal to not less than the full insurable value of the Mortgaged Property against such risks (including, without limitation, fire and extended coverage and collapse of the Improvements to
agreed limits) as Agent may request, in form and substance acceptable to Agent; 
  
 (G) ordinance or law coverage to compensate for the cost of demolition, increased cost of construction, and loss to any undamaged portions
of the Improvements, if the current use of the Mortgaged Property or the Improvements themselves are or become “nonconforming” pursuant to the applicable zoning regulations, or full rebuildability following casualty is otherwise not
permitted under such zoning regulations; 
  
 (H)
if required by Agent as a result of the Mortgaged Property being located in an area with a high degree of seismic activity, earthquake damage insurance in an amount and form acceptable to Agent; and 
  
 (I) such other insurance as may from time to time be
reasonably required by Agent in order to protect its interests with respect to the Loan and the Mortgaged Property and to conform such requirements to then current standards for a Secondary Market Transaction in which Securities are issued.

  

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 (iii) All policies of insurance (the “Policies”) required
pursuant to this Section 5.1(x): 
  
 (A)
shall be issued by an insurer approved by Agent which has a claims paying ability rating of not less than “A” (or the equivalent) by Rating Agencies satisfactory to Agent (one of which shall be Standard & Poor’s Ratings Group) and
A:VII or better as to claims paying ability by AM Best; provided, however, that with respect to the portion of earthquake damage insurance coverage above $50,000,000, the insurer shall have a claims paying ability rating of not less
than “BBB”; and provided further that with respect to terrorism insurance, the insurer shall have a claims paying ability rating of not less than “AAA” for the first $100,000,000 of coverage, “A” for the next
$150,000,000 of coverage, and “BBB” for any additional coverage, 
  
 (B) shall name Agent as an additional insured and contain a standard noncontributory mortgagee clause and a Agent’s Loss Payable Endorsement, or their equivalents, naming Agent (and/or such other party as may be
designated by Agent) as the party to which all payments made by such insurance company shall be paid, 
  
 (C) shall be maintained throughout the term of the Loan without cost to Agent, 
  
 (D) shall contain such provisions as Agent deems reasonably
necessary or desirable to protect its interest (including, without limitation, endorsements providing that neither Borrower, Agent nor any other party shall be a co-insurer under said Policies and that Borrower shall endeavor to provide at least
thirty (30) days prior written notice of any modification, reduction or cancellation), 
  
 (E) shall contain a waiver of subrogation against Agent, 
  
 (F) shall be for a term of not less than one year, 
  
 (G) shall be issued by an insurer licensed in the state in
which the Mortgaged Property is located, 
  
 (H)
shall provide that Agent may, but shall not be obligated to, make premium payments to prevent any cancellation, endorsement, alteration or reissuance, and such payments shall be accepted by the insurer to prevent same, and 
  
 (I) shall be reasonably satisfactory in form and substance
to Agent and reasonably approved by Agent as to amounts, form, risk coverage, deductibles, loss payees and insureds to the extent not otherwise specified in this Section 5.1(x). 
  
 Copies of said Policies, certified as true and correct by Borrower, or insurance certificates thereof, shall be delivered to
Agent. At the expiration of each of the Policies, Borrower shall deliver to Agent satisfactory evidence of the renewal of each Policy as soon as possible. The insurance coverage required under this Section 5.1(x) may be effected under a
blanket policy or policies covering the Mortgaged Property and other property and assets not constituting a part of the Collateral; provided that any such blanket policy shall provide at least the same amount and form of protection as would a
separate policy insuring the Mortgaged Property individually, which amount shall not be less than the amount required pursuant to this Section 5.1(x) and which shall in any case comply in all 

  

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other respects with the requirements of this Section 5.1(x). Upon demand therefor, Borrower shall reimburse Agent for all of Agent’s or its
designee’s reasonable costs and expenses incurred in obtaining any or all of the Policies or otherwise causing the compliance with the terms and provisions of this Section 5.1(x), including (without limitation) obtaining updated flood
hazard certificates and replacement of any so-called “forced placed” insurance coverages to the extent Borrower was required to obtain and maintain any such Policy or Policies hereunder and failed to do so. Borrower shall pay the premiums
for such Policies (the “Insurance Premiums”) as the same become due and payable and shall furnish to Agent evidence of the renewal of each of the Policies with receipts for the payment of the Insurance Premiums or other
evidence of such payment reasonably satisfactory to Agent (provided, however, that Borrower is not required to furnish such evidence of payment to Agent in the event that such Insurance Premiums have been paid by Agent or the
Collateral Agent). If Borrower does not furnish such evidence and receipts, then Agent may procure, but shall not be obligated to procure, such insurance and pay the Insurance Premiums therefor, and Borrower agrees to reimburse Agent for the cost of
such Insurance Premiums promptly on demand. Within thirty (30) days after request by Agent, Borrower shall obtain such increases in the amounts of coverage required hereunder as may be reasonably requested by Agent, based on then industry-standard
amounts of coverage then being obtained by prudent owners of properties similar to the Mortgaged Property in the same applicable market region as the Mortgaged Property. Borrower shall give Agent prompt written notice if Borrower receives from any
insurer any written notification or threat of any actions or proceedings regarding the non-compliance or non-conformity of the Mortgaged Property with any insurance requirements. 
  
 (iv) If the Mortgaged Property shall be damaged or destroyed, in whole or in part, by fire or other
casualty, Borrower shall give prompt notice thereof to Agent. 
  
 (A) In case of loss covered by Policies, Agent may either (a) jointly with a Borrower settle and adjust any claim and agree with the insurance company or companies on the amount to be paid on the loss or (b) allow
Borrower to agree with the insurance company or companies on the amount to be paid upon the loss; provided, that Borrower may settle and adjust losses aggregating not in excess of $50,000, agree with the insurance company or companies on the
amount to be paid upon the loss and collect and receipt for any such Insurance Proceeds; provided, further, that if (x) at the time of the settlement of such claim an Event of Default has occurred and is continuing or (y) the Agent and
Borrower are unable to agree upon a joint settlement or (z) the Agent disapproves of Borrower’s proposed settlement with the insurance company, then Agent shall settle and adjust such claim without the consent of Borrower. In any such case
Agent shall and is hereby authorized to collect and receipt for any such Insurance Proceeds subject to and to the extent provided for in this Agreement. The reasonable out-of-pocket expenses incurred by Agent in the adjustment and collection of
Insurance Proceeds shall become part of the Indebtedness and be secured by the Mortgage and shall be reimbursed by Borrower to Agent upon demand therefor. 
  
 (B) In the event of any insured damage to or destruction of the Mortgaged Property or any part thereof (herein called an
“Insured Casualty”) where the aggregate amount of the loss, as reasonably determined by an Independent insurance adjuster, is 

  

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less than ten percent (10%) of the Principal Indebtedness, and if, in the reasonable judgment of Agent, the Mortgaged Property can be restored by not later
than the first to occur of (a) twelve (12) months of settlement of the claim and (b) the expiration of the business interruption insurance and, in any case, not later than six (6)months prior to the Maturity Date to an economic unit not less
materially valuable (including an assessment of the impact of the termination of any Leases due to such Insured Casualty) and not less useful than the same was prior to the Insured Casualty, or if Agent otherwise elects to allow a Borrower to
restore the Mortgaged Property, then, if no Event of Default shall have occurred and be continuing, the Insurance Proceeds (after reimbursement of any reasonable out-of-pocket expenses incurred by Agent in connection with the collection of any
applicable Insurance Proceeds) shall be made available to reimburse Borrower for the cost of restoring, repairing, replacing or rebuilding the Mortgaged Property or part thereof subject to the Insured Casualty, as provided for below. Borrower hereby
covenants and agrees to commence and diligently to prosecute such restoring, repairing, replacing or rebuilding. Borrower shall pay all out-of-pocket costs (and if required by Agent, Borrower shall deposit the total thereof with Agent in advance) of
such restoring, repairing, replacing or rebuilding in excess of the Insurance Proceeds made available pursuant to the terms hereof (the “Deficient Amount”). 
  
 (C) Except as provided above, the Insurance Proceeds collected upon any Insured Casualty shall, at the
option of Agent in its sole discretion, be applied to the payment of the Indebtedness as provided in Section 2.7(b) of this Agreement or applied to the cost of restoring, repairing, replacing or rebuilding the affected Mortgaged Property or
part thereof subject to the Insured Casualty, in the manner set forth below. 
  
 (D) In the event that Insurance Proceeds (after reimbursement of any reasonable expenses incurred by Agent in connection with the collection of any applicable Insurance Proceeds), if any, shall be made available to
Borrower for the restoring, repairing, replacing or rebuilding of any portion of the affected Mortgaged Property, Borrower covenants to restore, repair, replace or rebuild the same to be of at least comparable value as prior to such damage or
destruction, all to be effected in accordance with Legal Requirements and plans and specifications approved in advance by Agent, such approval not to be unreasonably withheld or delayed. 
  
 (E) In the event Borrower is entitled to reimbursement out of Insurance Proceeds, such proceeds shall be
held in an Eligible Account as provided in Section 2.12(f) and disbursed from time to time as the restoration progresses upon Agent being furnished with (1) evidence reasonably satisfactory to it (which evidence may include inspection(s) of
the work performed) that the restoration, repair, replacement and rebuilding covered by the disbursement has been completed in accordance with plans and specifications approved by Agent, (2) evidence reasonably satisfactory to it of the estimated
cost of completion of the restoration, repair, replacement and rebuilding, (3) funds, or, at Agent’s option, assurances reasonably satisfactory to Agent that such funds are available and sufficient in addition to the Insurance Proceeds to
complete the proposed restoration, repair, replacement and rebuilding, and (4) such architect’s certificates, waivers of lien, contractor’s sworn statements, title insurance endorsements, bonds and other evidences of cost, payment and
performance of the foregoing repair, restoration, replacement or rebuilding as Agent may reasonably require and approve. Agent may, in any event, require that all plans and specifications for such restoration, repair, replacement and 

  

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rebuilding be submitted to and reasonably approved by Agent prior to commencement of work. Agent may retain a construction consultant to inspect such work
and review Borrower’s request for payments and Borrower shall, on demand by Agent, reimburse Agent for the reasonable fees and disbursements of such consultant. No payment made prior to the final completion of the restoration, repair,
replacement and rebuilding shall exceed ninety percent (90%) of the hard construction costs value of the work performed from time to time (except for restoration work on a trade by trade basis or on an hourly basis for professional services in which
event, payment may be made in full upon the completion of such work); funds other than Insurance Proceeds shall be disbursed prior to disbursement of such proceeds; and, at all times, the undisbursed balance of such proceeds remaining in the
accounts of Agent, together with funds deposited for that purpose or irrevocably committed to the repayment of Agent by or on behalf of Borrower for that purpose, shall be at least sufficient in the reasonable judgment of Agent to pay for the cost
of completion of the restoration, repair, replacement or rebuilding, free and clear of all liens or claims for lien, except for Permitted Encumbrances. Any surplus which may remain out of Insurance Proceeds held by Agent after payment of such costs
of restoration, repair, replacement or rebuilding shall be paid to Borrower so long as no Event of Default has occurred and is continuing. 
  
 (v) Borrower shall not carry separate insurance, concurrent in kind or form or contributing in the event of loss, with any insurance
required under this Agreement that would be considered “co-insurance” or adversely affect the ability to collect under a policy of insurance required hereunder. 
  
 (y) Condemnation. 
  
 (i) Borrower shall promptly give Agent written notice of the actual or threatened commencement of any proceeding for a Taking and shall
deliver to Agent copies of any and all papers served in connection with such proceedings. Agent is hereby irrevocably appointed as Borrower’s attorney-in-fact, coupled with an interest, with exclusive power to collect, receive and retain any
Condemnation Proceeds for said Taking. With respect to any compromise or settlement in connection with such proceeding, Agent shall jointly with Borrower compromise and reach settlement unless at the time of such Taking an Event of Default has
occurred and is continuing and the Indebtedness has been accelerated, in which event Agent shall compromise and reach settlement without the consent of Borrower. Notwithstanding the foregoing provisions of this Section 5.1(y), Borrower is
authorized to negotiate, compromise and settle, without participation by Agent, Condemnation Proceeds of up to $1,000,000 in connection with any Taking. Notwithstanding any Taking, Borrower shall continue to pay the Indebtedness at the time and in
the manner provided for in this Agreement and the other Loan Documents and the Indebtedness shall not be reduced except in accordance therewith. 
  
 (ii) Borrower shall cause the Condemnation Proceeds to be paid directly to the Collection Account as provided in Section 2.7(b) of
this Agreement. Agent may, in its sole discretion, apply any such Condemnation Proceeds to the reduction or discharge of the Indebtedness (whether or not then due and payable). 
  
 (iii) With respect to a Taking in part, which shall mean any Taking which does not render the affected
Mortgaged Property physically or economically unsuitable in the 

  

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reasonable judgment of Agent for the use to which it was devoted prior to the Taking, Borrower shall cause the Condemnation Proceeds to be paid to Agent as
described above or deposited into the applicable account pursuant to the provisions of this Agreement, to be applied to the cost of repairing, replacing, restoring or rebuilding the affected Mortgaged Property as follows: 
  
 (A) Provided that Condemnation Proceeds shall be made
available to Borrower for the restoring, repairing, replacing or rebuilding of the affected Mortgaged Property, Borrower hereby covenants to restore, repair, replace or rebuild the same to be of at least comparable value and, to the extent
commercially practicable, of substantially the same character as prior to the Taking, all to be effected in accordance with applicable law and plans and specifications reasonably approved in advance by Agent. Borrower shall pay all costs (and if
required by Agent, Borrower shall deposit the total thereof with Agent in advance) of such restoring, repairing, replacing or rebuilding in excess of the Condemnation Proceeds made available pursuant to the terms hereof. 
  
 (B) The Condemnation Proceeds held by Agent shall be held in
an Eligible Account as provided in Section 2.12(f) and disbursed from time to time as the restoration progresses upon Agent being furnished with (1) evidence reasonably satisfactory to it (which evidence may include inspection(s) of the work
performed) that the restoration, repair, replacement and rebuilding covered by the disbursement has been completed in accordance with plans and specifications approved by Agent, (2) evidence reasonably satisfactory to it of the estimated cost of
completion of the restoration, repair, replacement and rebuilding, (3) funds, or, at Agent’s option, assurances satisfactory to Agent that such funds are available and sufficient in addition to the Condemnation Proceeds to complete the proposed
restoration, repair, replacement and rebuilding, and (4) such architect’s certificates, waivers of lien, contractor’s sworn statements, title insurance endorsements, bonds and other evidences of cost, payment and performance of the
foregoing repair, restoration, replacement or rebuilding as Agent may reasonably require and approve. Agent may, in any event, require that all plans and specifications for such restoration, repair, replacement and rebuilding be submitted to and
reasonably approved by Agent prior to commencement of work. Agent may retain a construction consultant to inspect such work and review any request by Borrower for payments and Borrower shall, on demand by Agent, reimburse Agent for the reasonable
fees and disbursements of such consultant. No payment made prior to the final completion of the restoration, repair, replacement and rebuilding shall exceed ninety percent (90%) of the hard construction costs value of the construction work performed
from time to time (except for restoration work on a trade by trade basis or on an hourly basis for professional services in which event, payment may be made in full upon the completion of such work); funds other than Condemnation Proceeds shall be
disbursed prior to disbursement of such proceeds; and at all times, the undisbursed balance of such proceeds remaining in the hands of Agent, together with funds deposited for that purpose or irrevocably committed to the repayment of Agent by or on
behalf of Borrower for that purpose, shall be at least sufficient in the reasonable judgment of Agent to pay for the cost of completion of the restoration, repair, replacement or rebuilding, free and clear of all liens or claims for lien. Any
surplus which may remain out of Condemnation Proceeds held by Agent after payment of such costs of restoration, repair, replacement or rebuilding shall be paid to Borrower so long as no Event of Default has occurred and is continuing. 
  

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 (C) If the affected Mortgaged Property is sold, through foreclosure or otherwise, prior
to the receipt by Agent of any such Condemnation Proceeds to which it is entitled hereunder, Agent shall have the right, whether or not a deficiency judgment on the Note shall have been sought, recovered or denied, to have reserved in any
foreclosure decree a right to receive said award or payment, or a portion thereof sufficient to pay the Indebtedness. In no case shall any such application reduce or postpone any payments otherwise required pursuant to this Agreement, other than the
final payment on the Note. 
  
 (z) Leases and Rents.

  
 (i) Borrower absolutely and unconditionally
assigns to Agent, Borrower’s right, title and interest in all current and future Leases and Rents as collateral for the Loan, it being intended by Borrower that this assignment constitutes a present, absolute assignment and not an assignment
for additional security only. Such assignment to Agent shall not be construed to bind Agent to the performance of any of the covenants, conditions or provisions contained in any such Lease or otherwise impose any obligation upon Agent. Borrower
shall execute and deliver to Agent such additional instruments, in form and substance reasonably satisfactory to Agent, as may hereafter be reasonably requested in writing by Agent to further evidence and confirm such assignment. Nevertheless,
subject to the terms of this Section 5.1(z), Agent grants to Borrower a license to lease, own, maintain, operate and manage the Mortgaged Property and to collect, use and apply the Rent, which license is revocable only upon the occurrence and
during the continuance of an Event of Default under this Agreement. Any portion of the Rents held by Borrower shall be held in trust for the benefit of Agent for use in the payment of the Indebtedness. Upon the occurrence of an Event of Default and
during the continuance thereof, the license granted to Borrower herein shall automatically be revoked, and Agent shall immediately be entitled to possession of all Rents, whether or not Agent enters upon or takes control of the Mortgaged Property.
Agent is hereby granted and assigned by Borrower the right, at its option, upon revocation of the license granted herein, to enter upon the Mortgaged Property in person, by agent or by court-appointed receiver to collect the Rents. Any Rents
collected after the revocation of the license shall be applied toward payment of the Indebtedness as set forth in Section 2.8 hereof. 
  
 (ii) All Leases entered into by Borrower shall provide for rental rates comparable to then-existing local market rates and terms and
conditions commercially reasonable and consistent with then-prevailing local market terms and conditions for similar type properties. With respect to any Lease for more than 100,000 square feet of the Mortgaged Property, Borrower shall not enter
into such Lease, unless Borrower shall have obtained the prior written consent of the Agent and, if the Loan has been included in a Secondary Market Transaction in which Securities were issued, a Rating Confirmation. Borrower shall furnish Agent
with (1) detailed term sheets in advance in the case of any Leases, modifications, amendments or renewals for which Agent’s consent is required and (2) in the case of any other Leases, executed copies of such Leases upon written request. All
renewals or amendments or modifications of Leases that do not satisfy the requirements of the first sentence of this Section 5.1(z)(ii) shall be subject to the prior approval of Agent. All Leases shall be written on the standard lease form
previously approved by Agent which form shall not be materially changed without Agent’s prior written consent which consent shall not be unreasonably 

  

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withheld. All Leases executed after the date hereof shall provide that they are subordinate to the Mortgage, and that the lessee agrees to attorn to Agent.
Borrower, 
  
 (A) shall observe and perform all
of the material obligations imposed upon the lessor under the Leases and shall not do or permit to be done anything to materially impair the value of the Leases as security for the Indebtedness; 
  
 (B) shall promptly send copies to Agent of all written
notices of default which Borrower shall send or receive thereunder; 
  
 (C) shall enforce all of the material terms, covenants and conditions contained in the Leases upon the part of the lessee thereunder to be observed or performed and shall effect a termination or diminution of the
obligations of tenants under leases, only in a manner that a prudent owner of a similar property to the Mortgaged Property would enforce such terms covenants and conditions or effect such termination or diminution in the ordinary course of business;

  
 (D) shall not collect any of the Rents more
than one (1) month in advance; 
  
 (E) shall not
execute any other assignment of lessor’s interest in the Leases or Rents; and 
  
 (F) shall not convey or transfer or suffer or permit a conveyance or transfer of the Mortgaged Property or of any interest therein so as
to effect a merger of the estates and rights of, or a termination or diminution of the obligations of, lessees thereunder. 
  
 (iii) Borrower shall deposit security deposits of lessees which are turned over to or for the benefit of Borrower or otherwise collected
by or on behalf of Borrower, into an Eligible Account with the same name as the Collection Account and shall not commingle such funds with any other funds of Borrower. Any bond or other instrument which Borrower is permitted to hold in lieu of cash
security deposits under any applicable Legal Requirements shall be maintained in full force and effect unless replaced by cash deposits as hereinabove described, shall, if permitted pursuant to Legal Requirements, name Agent as payee or mortgagee
thereunder (or at Agent’s option, be fully assignable to Agent) and shall, in all respects, comply with any applicable Legal Requirements and otherwise be reasonably satisfactory to Agent. Borrower shall, upon request, provide Agent with
evidence reasonably satisfactory to Agent of Borrower’s compliance with the foregoing. Upon the occurrence and during the continuance of any Event of Default, Borrower shall, upon Agent’s request, if permitted by any applicable Legal
Requirements, turn over to Agent the security deposits (and any interest theretofore earned thereon) with respect to all or any portion of the Mortgaged Property, to be held by Agent subject to the terms of the Leases. 
  
 (aa) Maintenance of Mortgaged Property. Borrower shall cause the
Mortgaged Property to be maintained in a good and safe condition and repair, subject to wear and tear and damage caused by casualty or condemnation. The Improvements and the Equipment shall not be removed, demolished or altered (except for normal
replacement of the Equipment, Improvements contemplated in an approved Operating Budget or pursuant to Leases in effect from time to time 

  

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or for removals, demolition or alterations that cost up to $1,000,000) without the consent of the Agent which consent shall not be unreasonably withheld.
Except with respect to an Insured Casualty which shall be governed by the terms and conditions provided herein, Borrower shall, or shall cause any tenants obligated under their respective Leases to, promptly repair, replace or rebuild any part of
the Mortgaged Property that becomes damaged, worn or dilapidated except where the failure to do so is not reasonably likely to have a Material Adverse Effect. Borrower shall complete and pay for any structure at any time in the process of
construction or repair on the Land. Borrower shall not initiate, join in, or consent to any change in any private restrictive covenant, zoning law or other public or private restriction, limiting or defining the uses which may be made of the
Mortgaged Property or any part thereof which can be reasonably likely to result in a Material Adverse Effect without consent of the Agent. If under applicable zoning provisions the use of all or any portion of the Mortgaged Property is or shall
become a nonconforming use, Borrower will not cause or permit such nonconforming use to be discontinued or abandoned if such discontinuance of abandonment would cause such nonconforming use to no longer be permitted without the express written
consent of the Agent. Borrower shall not (i) change the use of the Land in any material respect, (ii) permit or suffer to occur any waste on or to the Mortgaged Property or to any portion thereof or (iii) take any steps whatsoever to convert the
Mortgaged Property, or any portion thereof, to a condominium or cooperative form of management. 
  
 (bb) Taxes on Security. Borrower shall pay all taxes, charges, filing, registration and recording fees, excises and levies payable with respect to
the Note or the Lien created or secured by the Loan Documents, other than income, franchise and doing business taxes imposed on Agent or any Lender or Collateral Agent. If there shall be enacted any law (1) deducting the Loan from the value of the
Collateral for the purpose of taxation, (2) affecting Agent’s Lien on the Collateral or (3) changing existing laws of taxation of mortgages, deeds of trust, security deeds, or debts secured by realty, or changing the manner of collecting any
such taxes, Borrower shall promptly pay to Agent, on demand, all taxes, costs and charges for which Agent is or may be liable as a result thereof; provided, however, if such payment would be prohibited by law or would render the Loan
usurious, then instead of collecting such payment, Agent may declare all amounts owing under the Loan Documents to be immediately due and payable. 
  
 (cc) Qualified Interest Rate Cap Provider. If the rating of a Qualified Interest Rate Cap Provider that has provided an interest rate cap which
Borrower pledges to the Agent pursuant to the Collateral Assignment of Hedge falls below the rating criteria specified in the definition of a Qualified Interest Rate Cap Provider, then within ten (10) Business Days following written request from
Agent, the Borrower shall deliver to Agent a replacement interest rate cap satisfying all of the criteria set forth in Section 3.1 (as of the Closing Date) or Section 2.17 (as of any date the maturity of the Loan is extended), as
applicable. 
  
 ARTICLE VI. 
 NEGATIVE COVENANTS 
  
 Section 6.1. Negative Covenants. Borrower covenants and agrees that, until payment in full of the Indebtedness, it will not do, directly or indirectly, any of the
following unless Agent consents thereto in writing: 
  
 (a)
Liens on the Mortgaged Property. Incur, create, assume, become or be liable in any manner with respect to, or permit to exist, except as permitted by the Mortgage, any Lien with respect to the Mortgaged Property, except: (i) Liens in favor of
the Lenders and (ii) the Permitted Encumbrances. 
  

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 (b) Ownership and Transfer. Except as expressly permitted by or pursuant to this Agreement or the
other Loan Documents, own any property of any kind other than the Mortgaged Property, or Transfer the Mortgaged Property or any portion thereof. 
  
 (c) Other Borrowings. Incur, create, assume, become or be liable in any manner with respect to Other Borrowings. 
  
 (d) Dissolution; Merger or Consolidation. Dissolve, terminate,
liquidate, merge with or consolidate into another Person. 
  
 (e)
Change In Business. Cease to be a Single-Purpose Entity, or make any material change in the scope or nature of its business objectives, purposes or operations, or undertake or participate in activities other than the continuance of its
present business. 
  
 (f) Debt Cancellation. Cancel or
otherwise forgive or release any material claim or debt owed to Borrower by any Person, except for adequate consideration or in the ordinary course of Borrower’s business. 
  
 (g) Affiliate Transactions. Except as listed on Schedule 1, enter into, or be a party to, any transaction with
an Affiliate of Borrower, except in the ordinary course of business and on terms which are fully disclosed to Agent in advance and which are no less favorable to Borrower or such Affiliate than would be obtained in a comparable arm’s length
transaction with an unrelated third party (other than the Management Agreement). 
  
 (h) Creation of Easements. Except as expressly permitted by or pursuant to the Mortgage or this Agreement, create, or permit the Mortgaged Property or any part thereof to become subject to, any easement,
license or restrictive covenant, other than a Permitted Encumbrance, provided, that the consent of Agent shall not be unreasonably withheld or delayed to the extent that any such easement, license or restrictive covenant is reasonably necessary for
the continued use, enjoyment, access to or operation of the applicable Mortgaged Property. 
  
 (i) Misapplication of Funds. Distribute any Rents or Moneys received from Accounts in violation of the provisions of Section 2.12, or fail to pledge any security deposit to Agent, or misappropriate any
security deposit or portion thereof. 
  
 (j) Certain
Restrictions. Enter into any agreement that expressly restricts the ability of Borrower to enter into amendments, modifications or waivers of any of the Loan Documents. 
  
 (k) Assignment of Licenses and Permits. Assign or transfer any of its interest in any Permits pertaining to the
Mortgaged Property, or assign, transfer or remove or permit any other Person to assign, transfer or remove any records pertaining to the Mortgaged Property. 
  

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 (l) Place of Organization. Change its jurisdiction of organization, creation or formation, as
applicable, without giving Agent at least fifteen (15) days’ prior written notice thereof and promptly providing Agent such information as Agent may reasonably request in connection therewith. 
  
 (m) Leases. Enter into, amend or cancel Leases, except as permitted by
or pursuant to or would not result in a violation of this Agreement. 
  
 (n) Management Agreement. Except in accordance with this Agreement, (i) terminate or cancel the Management Agreement, (ii) consent to either the reduction of the term of or the assignment of the Management Agreement, (iii) increase
or consent to the increase of the amount of any charges under the Management Agreement, or (iv) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under, the Management Agreement in any material
respect. 
  
 (o) Plans and Welfare Plans. Knowingly engage
in or permit any transaction in connection with which Borrower or any ERISA Affiliate could be subject to either a material civil penalty or tax assessed pursuant to Section 502(i) or 502(1) of ERISA or Section 4975 of the Code, permit any Welfare
Plan to provide benefits, including without limitation, medical benefits (whether or not insured), with respect to any current or former employee of Borrower beyond his or her retirement or other termination of service other than (i) coverage
mandated by applicable law, (ii) death or disability benefits that have been fully provided for by paid up insurance or otherwise or (iii) severance benefits (unless such coverage is provided after notification of and with the reasonable approval of
Agent), permit the assets of Borrower to become “plan assets”, whether by operation of law or under regulations promulgated under ERISA or adopt, amend (except as may be required by applicable law) or increase the amount of any benefit or
amount payable under, or permit any ERISA Affiliate to adopt, amend (except as may be required by applicable law) or increase the amount of any benefit or amount payable under, any Plan or Welfare Plan, except for normal increases in the ordinary
course of business consistent with past practice that, in the aggregate, do not result in a material increase in benefits expense to Borrower or any ERISA Affiliate. 
  
 (p) Transfer of Ownership Interests. Permit any Transfer of a direct or indirect ownership interest or voting right
in Borrower (other than a Permitted Transfer). 
  
 (q)
Equipment and Inventory. Except pursuant to the Management Agreement, permit any Equipment owned by Borrower to be removed at any time from the Mortgaged Property unless the removed item is consumed or sold in the usual and customary course
of business, removed temporarily for maintenance and repair or, if removed permanently, replaced by an article of equivalent suitability and not materially less value, owned by Borrower free and clear of any Lien. 
  
 (r) [Intentionally Omitted] 
  
 (s) Management Fees. Pay Borrower or any Affiliate of Borrower any
management fees with respect to the Mortgaged Property except as contemplated by the Management Agreement. 
  

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 (t) Modification of Interest Rate Cap Agreement. Amend, modify, cancel or terminate any interest
rate cap entered into by Borrower pursuant to this Agreement or permit same to be amended, modified, cancelled or terminated; provided, however, that Borrower shall have the right to extend the term of any such interest rate cap. 
  
 (u) Prohibited Persons. With respect to Borrower, Guarantor and any of
their respective officers, directors, shareholders, partners, members or Affiliates, if applicable (including, without limitation, the indirect holders of equity interests in Borrower): (i) conduct any business, nor engage in any transaction or
dealing, with any Prohibited Person, including, but not limited to, the making or receiving of any contribution of funds, goods, or services, to or for the benefit of a Prohibited Person; or (ii) engage in or conspire to engage in any transaction
that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in EO13224. 
  
 ARTICLE VII. 
 EVENT OF DEFAULT

  
 Section 7.1. Event of Default. The occurrence of one or more of the
following events shall be an “Event of Default” hereunder: 
  
 (a) if on any Payment Date Borrower fails to pay any accrued and unpaid interest on the Loan then due and payable in accordance with the provisions hereof; 
  
 (b) if Borrower fails (a) to pay (1) the outstanding Indebtedness on the Maturity Date or (2) the fees and expenses then due
and payable to Collateral Agent pursuant to the Fee Letter on any Payment Date or (b) to deposit into the Collection Account, the amount required pursuant to Sections 2.7(a) or 2.7(b), respectively; 
  
 (c) if Borrower fails to make any required deposit to a Reserve Account or to
pay any other amount payable pursuant to this Agreement or any other Loan Document when due and payable in accordance with the provisions hereof or thereof, as the case may be, and such failure continues for ten (10) days after Agent delivers
written notice thereof to Borrower; 
  
 (d) if any representation
or warranty made herein or in any other Loan Document, or in any report, certificate, financial statement or other Instrument, agreement or document furnished by Borrower in connection with this Agreement, the Note or any other Loan Document
executed and delivered by any Borrower shall be false as of the date such representation or warranty was made (or if such representation or warranty relates to an earlier date, then as of such earlier date); 
  
 (e) if Borrower or the Guarantor makes an assignment for the benefit of
creditors; 
  
 (f) if a receiver, liquidator or trustee shall be
appointed for Borrower or the Guarantor or if Borrower or the Guarantor shall be adjudicated a bankrupt or insolvent, or if any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or
state law, shall be filed by or against, consented to, or acquiesced in by, Borrower or the Guarantor, or if any proceeding for the dissolution or liquidation of Borrower or the Guarantor shall be instituted; provided, however, that if
such appointment, adjudication, 

  

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petition or proceeding was involuntary and not consented to by Borrower or the Guarantor, upon the same not being discharged, stayed or dismissed within
ninety (90) days, or if Borrower or the Guarantor shall generally not be paying its debts as they become due; 
  
 (g) if Borrower attempts to delegate its obligations or assign its rights under this Agreement, any of the other Loan Documents or any interest herein or
therein, or if any Transfer occurs other than in accordance with or as permitted under this Agreement, and such delegation or assignment of rights or impermissible Transfer continues or is not corrected for five (5) Business Days after Lender
delivers written notice thereof to Borrower; 
  
 (h) if any
provision of the Organizational Agreement affecting the purpose for which Borrower is formed is amended or modified in any material respect which is reasonably likely to adversely affect the Lenders, Agent or Collateral Agent, or if Borrower fails
to perform or enforce the provisions of the Organizational Agreement and such failure has a Material Adverse Effect or attempts to dissolve Borrower without Agent’s consent; 
  
 (i) if an Event of Default as defined or described in the Note or any other Loan Document occurs, whether as to Borrower or
the Mortgaged Property or any portion thereof; 
  
 (j) if any of
the assumptions made with respect to Borrower and its Affiliates in that certain substantive non-consolidation opinion letter of even date herewith delivered by Fulbright & Jaworski L.L.P. in connection with the Loan is not true and correct in
all material respects; 
  
 (k) if Borrower fails to maintain any
insurance required to be maintained pursuant to Section 5.1(x) hereof; 
  
 (l) if, without the prior written consent of Agent, the Demand Note shall be terminated or cancelled, or otherwise modified, changed, supplemented, altered or amended, or if Guarantor shall waive or release any of its
rights or remedies under the Demand Note; or 
  
 (m) if Borrower
shall fail to perform any of the terms, covenants or conditions of this Agreement, the Note, the Mortgage or the other Loan Documents, other than as specifically otherwise referred to above in this definition of “Event of Default,” for ten
(10) days after notice to Borrower from Agent or its successors or assigns, in the case of any Default which can be cured by the payment of a sum of money (other than Events of Default pursuant to Sections 7.1(a) and 7.1(b) above as to
which the grace period, if any, set forth therein is applicable), or for thirty (30) days after notice from Agent or its successors or assigns, in the case of any other Default (unless a longer notice period is otherwise provided herein or in such
other Loan Document); provided, however, that if such non-monetary Default is susceptible of cure but cannot reasonably be cured within such thirty (30) day period and Borrower shall have commenced to cure such Default within such
thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for an additional sixty (60) days; 
  
 then, upon the occurrence of any such Event of Default and at any time thereafter, Agent or Collateral Agent or its successors or assigns,
may, in addition to any other rights or remedies available to it pursuant to this Agreement and the other Loan Documents, or at law or in equity, take such action, without further notice or demand, as Agent on behalf of the Lenders or its 

  

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successors or assigns, deems advisable to protect and enforce its rights against Borrower and in and to all or any portion of the Collateral (including,
without limitation, declaring the entire Indebtedness to be immediately due and payable) and may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower and/or the Collateral (including, without
limitation, all rights or remedies available at law or in equity). 
  
 Section
7.2. Remedies. 
  
 (a) Upon the occurrence of an Event of
Default, all or any one or more of the rights, powers, or other remedies available to Agent or Collateral Agent or the Lenders against Borrower under this Agreement or any of the other Loan Documents executed by or with respect to Borrower, or at
law or in equity may be exercised by Lenders at any time and from time to time, whether or not all or any portion of the Indebtedness shall be declared due and payable, and whether or not Agent shall have commenced any foreclosure proceeding or
other action for the enforcement of its rights and remedies under any of the Loan Documents with respect to all or any portion of the Collateral. Any such actions taken by Agent or Collateral Agent shall be cumulative and concurrent and may be
pursued independently, singly, successively, together or otherwise, at such time and in such order as Agent may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and
remedies of Agent and the Lenders permitted by law, equity or contract or as set forth herein or in the other Loan Documents. 
  
 (b) In the event of the foreclosure or other action by Agent or Collateral Agent to enforce Agent’s remedies in connection with all or any portion of
the Collateral, Agent shall apply all Net Proceeds received to repay the Indebtedness in accordance with Section 2.8, the Indebtedness shall be reduced to the extent of such Net Proceeds and the remaining portion of the Indebtedness shall
remain outstanding and secured by the Loan Documents, it being understood and agreed by Borrower that Borrower is liable for the repayment of all the Indebtedness; provided, however, that the Note shall be deemed to have been
accelerated only to the extent of the Net Proceeds actually received by Agent with respect to the Collateral and applied in reduction of the Indebtedness evidenced by the Note in accordance with the provisions of this Agreement, after payment by
Borrower of all Transaction Costs and costs of enforcement. 
  
 (c) Upon and during the continuation of an Event of Default, the Agent shall have the right, but not the obligation, with respect to any and all bankruptcy proceedings that are now or hereafter commenced in connection with the Mortgaged
Property, to (i) vote to accept or reject any plans of reorganization, (ii) vote in any election of a trustee, (iii) elect the treatment of secured claims as specified in Section 1111(b) of the Bankruptcy Code, and (iv) make any other
decisions requested of holders of claims or interests that Borrower would have had the right to do in such bankruptcy proceedings in the absence of an Event of Default. 
  
 Section 7.3. Remedies Cumulative. The rights, powers and remedies of Agent, Collateral Agent, or any Lender under this Agreement
shall be cumulative and not exclusive of any other right, power or remedy which Agent, Collateral Agent or any Lender may have against Borrower pursuant to this Agreement or the other Loan Documents executed by or with respect to Borrower, or
existing at law or in equity or otherwise. Agent or any Lender’s rights, powers and remedies may be pursued singly, concurrently or otherwise, at such time and in such order as 

  

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Agent may determine in Agent’s sole discretion. No delay or omission to exercise any remedy, right or power accruing upon an Event of Default shall
impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient. A waiver of any Default or Event of Default shall not
be construed to be a waiver of any subsequent Default or Event of Default or to impair any remedy, right or power consequent thereon. Notwithstanding any other provision of this Agreement, Agent for the benefit of the Lenders reserves the right to
seek a deficiency judgment or preserve a deficiency claim, in connection with the foreclosure of the Mortgage on the Mortgaged Property, to the extent necessary to foreclose on other parts of the Collateral. 
  
 Section 7.4. Default Administration Fee. At any time after the occurrence of an Event
of Default and the acceleration of the Indebtedness, as reimbursement and compensation for the additional internal expenditures, administrative expenses, fees and other costs associated with actions to be taken in connection with such Event of
Default, and regardless of whether Agent shall have commenced the exercise of any remedies pursuant to Section 7.2, the Default Administration Fee shall be payable by Borrower to Agent upon demand. 
  
 Section 7.5. Curative Advances. If any Event of Default occurs and is not cured by
Borrower after notice from the Agent, then Agent or Collateral Agent may expend such sums as either shall reasonably deem appropriate to cure or attempt to cure such Event of Default. Borrower shall immediately repay all such sums so advanced, which
sums shall immediately become part of the Indebtedness, bear interest at the Default Rate from the date advanced until the date repaid, and be secured by all Collateral. 
  
 ARTICLE VIII. 
 MISCELLANEOUS 
  
 Section 8.1. Survival. This Agreement and
all covenants, agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the execution and delivery of this Agreement, the making by the initial Lender of the Loan hereunder and the
execution and delivery by Borrower to the initial Lender of the Loan Documents, and shall continue in full force and effect so long as any portion of the Indebtedness is outstanding and unpaid. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the successors and assigns of such party. All covenants, promises and agreements in this Agreement contained, by or on behalf of Borrower, shall inure to the benefit of the respective successors
and assigns of Agent and each Lender. Nothing in this Agreement or in any other Loan Document, express or implied, shall give to any Person other than the parties and the holder of the Note and the other Loan Documents, and their legal
representatives, successors and assigns, any benefit or any legal or equitable right, remedy or claim hereunder. 
  
 Section 8.2. Agent’s Discretion. Whenever pursuant to this Agreement, Agent exercises any right given to it to approve or disapprove, or any arrangement or
term is to be satisfactory to Agent, the decision of Agent to approve or disapprove or to decide whether arrangements or terms are satisfactory or not satisfactory shall (except as is otherwise specifically herein provided) be in the sole discretion
of Agent and shall be final and conclusive. 
  

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 Section 8.3. Governing Law. 
  
 (a) This Agreement was negotiated in New York and made by the initial Lender and accepted by Borrower in the State of New
York, and the proceeds of the Note delivered pursuant hereto were disbursed from New York, which State the parties agree has a substantial relationship to the parties and to the underlying transaction embodied hereby, and in all respects (including,
without limitation, matters of construction, validity, performance, and maximum permissible rates of interest), this Agreement and the obligations arising hereunder shall be governed by, and construed in accordance with, the laws of the State of New
York applicable to contracts made and performed in such State and any applicable law of the United States of America. 
  
 (b) Any legal suit, action or proceeding against the Lenders or Borrower arising out of or relating to this Agreement may be instituted in any federal or
state court in New York, New York. Borrower hereby (i) irrevocably waives, to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to the laying of venue of any such suit, action or proceeding brought in
such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum, and (ii) irrevocably submits to the jurisdiction of any such court in any such suit, action or proceeding. Borrower does hereby
designate and appoint Corporation Services Company, whose address is 80 State Street, Albany, New York 12207-2543, as Borrower’s authorized agent to accept and acknowledge on its behalf service of any and all process which may be served in any
such suit, action or proceeding in any federal or state court in New York, New York, and agrees that service of process upon said agent at said address (or at such other office in the State of New York as may be designated by Borrower from time to
time in accordance with the terms hereof) with a copy to Borrower at its principal executive offices, and written notice of said service of Borrower mailed or delivered to Borrower in the manner provided herein shall be deemed in every respect
effective service of process upon Borrower, in any such suit, action or proceeding in the State of New York. Borrower (i) shall give prompt notice to Agent of any change in address of its authorized agent hereunder, (ii) may at any time and from
time to time designate a substitute authorized agent with an office in New York, New York (which office shall be designated as the address for service of process), and (iii) shall promptly designate such a substitute if its authorized agent ceases
to have an office in New York, New York or is dissolved without leaving a successor. 
  
 Section 8.4. Modification, Waiver in Writing. No modification, amendment, extension, discharge, termination or waiver of any provision of this Agreement or any other Loan Document, or consent or waiver referred to in any Loan
Document or consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in a writing signed by the party against whom enforcement is sought, and then such waiver or consent shall be effective only in the
specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to or demand on Borrower shall entitle Borrower to any other or future notice or demand in the same, similar or other circumstances.

  
 Section 8.5. Delay Not a Waiver. Neither any failure nor any delay on
the part of Agent or any Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under any other Loan Document, or any other instrument given as
security therefor, shall operate as or constitute a 

  

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waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or
privilege. In particular, and not by way of limitation, by accepting payment after the due date of any amount payable under this Agreement, the Note or any other Loan Document, Agent and each Lender shall not be deemed to have waived any right
either to require prompt payment when due of all other amounts due under this Agreement, the Note or the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount. 
  
 Section 8.6. Notices. All notices, consents, approvals and requests required or
permitted hereunder or under any other Loan Document shall be given in writing and shall be effective for all purposes if hand delivered or sent by (a) certified or registered United States mail, postage prepaid, or (b) expedited prepaid delivery
service, either commercial or United States Postal Service, with proof of attempted delivery, and by facsimile transmission, addressed if to Lender at its address set forth on the first page hereof, Attention: Michael J. Danberg, if to Collateral
Agent at its address set forth on the first page hereof, Attention: Thomas F. Quinlan, Jr., and if to Borrower at its addresses set forth on the first page hereof, Attention: John R. Sischo, or at such other address and Person as shall be designated
from time to time by any party hereto, as the case may be, in a written notice to the other parties hereto in the manner provided for in this Section 8.6. A notice shall be deemed to have been given: in the case of hand delivery, at the time of
delivery; in the case of registered or certified mail, when delivered or three Business Days after mailing; or in the case of expedited prepaid delivery and facsimile transmission, on the Business Day after the same was sent. A party receiving a
notice which does not comply with the technical requirements for notice under this Section 8.6 may elect to waive any deficiencies and treat the notice as having been properly given. 
  
 Section 8.7. TRIAL BY JURY. BORROWER, TO THE FULLEST EXTENT THAT IT MAY LAWFULLY DO SO, WAIVES TRIAL BY JURY IN ANY ACTION OR
PROCEEDING, INCLUDING, WITHOUT LIMITATION, ANY TORT ACTION, BROUGHT BY ANY PARTY HERETO WITH RESPECT TO THIS AGREEMENT, THE NOTE OR THE OTHER LOAN DOCUMENTS. 
  
 Section 8.8. Headings. The Article and Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of
this Agreement for any other purpose. 
  
 Section 8.9. Assignment.

  
 (a) Borrower may not sell, assign or transfer any interest in
the Loan Documents, or any portion of the foregoing (including, without limitation, Borrower’s rights, title, interests, remedies, powers and duties hereunder and thereunder) without Agent’s prior written consent. Each Lender shall have
the right to assign or participate this Agreement and/or its interest in any of the other Loan Documents and the obligations hereunder to any Person. In the event of an assignment by any Lender, (a) the assignee shall have, to the extent of such
assignment, the same rights, benefits and obligations as it would have if it were an original “Lender” hereunder; (b) the assignee shall be deemed for all purposes to be a “Lender” hereunder; and (c) upon any such substitution of
Lender, a replacement or addition “Lender signature page” shall be executed by the new Lender and attached to this Agreement and thereupon become a part of this Agreement. 
  

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 After the effectiveness of any assignment, the new Lender shall provide notice to Borrower of the identity, address and
other pertinent information pertaining to the new Lender. Notwithstanding anything in this Agreement to the contrary, after an assignment by any Lender, the “Lender” (prior to such assignment) shall continue to have the benefits of any
rights or indemnifications and shall continue to have the obligations contained herein which such Lender had during the period such party was a “Lender” hereunder. 
  
 (b) The Agent may from time to time elect to enter into a servicing agreement with a servicer, pursuant to which the
servicer shall be appointed to service and administer the Loan and the Account Collateral in accordance with the terms hereof and to exercise any and all other rights of the Lenders with respect to the Loan as set forth in such servicing agreement.
The Agent shall promptly notify the Borrower if the Agent shall elect to appoint or change the servicer, and all notices and other communications from the Borrower to the Agent shall be delivered to the servicer with a copy concurrently delivered to
the Agent, and any notice, direction or other communication from the servicer to the Borrower shall have the same force and effect as a notice, direction or communication from the Agent. The parties hereto acknowledge and agree that the servicer
shall be a third party beneficiary to this Agreement and the other Loan Documents. 
  
 Section 8.10. Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
  
 Section 8.11. Preferences. Agent and the Lenders shall have no obligation to marshal
any assets in favor of Borrower or any other party or against or in payment of any or all of the obligations of Borrower pursuant to this Agreement, the Note or any other Loan Document. The Lenders shall have the continuing and exclusive right to
apply or reverse and reapply any and all payments by Borrower to any portion of the obligations of Borrower hereunder, provided that such application or reapplication is performed by the Lenders in accordance with the terms of this Agreement or any
other applicable Loan Document. To the extent Borrower makes a payment or payments to Agent or any Lender for Borrower’s benefit, which payment or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds received, the obligations
hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Agent or such Lender. 
  
 Section 8.12. Waiver of Notice. Borrower shall not be entitled to any notices of any nature whatsoever from Agent, any Lender or
Collateral Agent except with respect to matters for which this Agreement or another Loan Document specifically and expressly provides for the giving of notice by Agent, such Lender and/or Collateral Agent to Borrower and except with respect to
matters for which Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. Except for notices required by applicable Legal Requirements that are not waivable by Borrower under such applicable Legal
Requirements, Borrower hereby 

  

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expressly waives the right to receive any notice from Agent, any Lender and Collateral Agent with respect to any matter for which this Agreement or the other
Loan Documents does not specifically and expressly provide for the giving of notice by Agent or such Lender or Collateral Agent to Borrower. 
  
 Section 8.13. Failure to Consent. If Borrower shall seek the approval by or consent of Agent or the Lenders hereunder or under the Note, or any of the other Loan
Documents, and Agent or the Lenders shall fail or refuse to give such consent or approval, then Borrower shall not be entitled to any damages for any withholding or delay of such approval or consent by Agent or the Lenders, it being intended that
Borrower’s sole remedy shall be to bring an action for an injunction or specific performance. 
  
 Section 8.14. Schedules Incorporated. The information set forth on the cover, heading and recitals hereof, and the Schedules attached hereto, are hereby incorporated herein as a part of this Agreement with the
same effect as if set forth in the body hereof. 
  
 Section 8.15. Offsets,
Counterclaims and Defenses. Any assignee of any Lender’s interest in and to this Agreement and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to this Agreement and
the other Loan Documents which Borrower may otherwise have against any assignor or this Agreement and the other Loan Documents. No such unrelated counterclaim or defense shall be interposed or asserted by Borrower in any action or proceeding brought
by any such assignee upon this Agreement or upon any other Loan Document. Any such right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrower. 

 
 Section 8.16. No Joint Venture or Partnership. Borrower, Agent and each Lender
intend that the relationship created hereunder be solely that of borrower and lender. Nothing herein is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and any Lender nor to grant
any Lender any interest in the Collateral other than that of secured party, mortgagee or lender. 
  
 Section 8.17. Waiver of Marshalling of Assets Defense. To the fullest extent Borrower may legally do so, Borrower waives all rights to a marshalling of the assets of Borrower, and others with interests in
Borrower, and of the Collateral, or to a sale in inverse order of alienation in the event of foreclosure of the interests hereby created, and agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale in inverse
order of alienation, homestead exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of any Lender under the Loan Documents to a sale of any Collateral for the collection of the
Indebtedness without any prior or different resort for collection, or the right of any Lender to the payment of the Indebtedness out of the Net Proceeds of the Collateral in preference to every other claimant whatsoever. 
  
 Section 8.18. Waiver of Counterclaim. To the extent permitted by applicable law,
Borrower hereby waives the right to assert a counterclaim, other than compulsory counterclaim, in any action or proceeding brought against it by Agent or its agents. 
  

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 Section 8.19. Conflict; Construction of Documents. In the event of any conflict between the provisions of this
Agreement and the provisions of any of the other Loan Documents, the provisions of this Agreement shall prevail. The parties hereto acknowledge that they were represented by counsel in connection with the negotiation and drafting of the Loan
Documents and that the Loan Documents shall not be subject to the principle of construing their meaning against the party that drafted same. 
  
 Section 8.20. Brokers and Financial Advisors. Borrower and the initial Lender hereby represent that they have dealt with no financial advisors, brokers,
underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement (other than Secured Capital Corp, whose fees and expenses shall be paid exclusively by Borrower). Borrower and initial Lender hereby
agree to indemnify and hold the other and Collateral Agent harmless from and against any and all claims, liabilities, costs and expenses of any kind in any way relating to or arising from a claim by any other Person that such Person acted on behalf
of the indemnifying party in connection with the transactions contemplated herein. The provisions of this Section 8.20 shall survive the expiration and termination of this Agreement and the repayment of the Indebtedness. 
  
 Section 8.21. Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. 
  
 Section 8.22. Estoppel Certificates. Agent, Borrower and each Lender hereby agree at any time and from time to time upon not less than fifteen (15) days prior
written notice by Borrower or such Lender to execute, acknowledge and deliver to the party specified in such notice, a statement, in writing, certifying that this Agreement is unmodified and in full force and effect (or if there have been
modifications, that the same, as modified, is in full force and effect and stating the modifications hereto), and stating whether or not, to the knowledge of such certifying party, any Default or Event of Default has occurred and is then continuing,
and, if so, specifying each such Default or Event of Default; provided, however, that it shall be a condition precedent to any Lender’s obligation to deliver the statement pursuant to this Section 8.22, that such Lender
shall have received, together with Borrower’s request for such statement, an Officer’s Certificate stating that, to the knowledge of Borrower, no Default or Event of Default exists as of the date of such certificate (or specifying such
Default or Event of Default). 
  
 Section 8.23. Payment of Expenses.
Borrower shall pay all Transaction Costs, which shall include, without limitation, (a) reasonable out-of-pocket costs and expenses of Agent in connection with (i) the negotiation, preparation, execution and delivery of the Loan Documents and the
documents and instruments referred to therein; (ii) the creation, perfection or protection of Lenders’ Liens in the Collateral (including, without limitation, fees and expenses for title and lien searches or amended or replacement Mortgages,
UCC financing statements or Collateral Security Instruments, title insurance premiums and filing and recording fees, third party due diligence expenses for the Mortgaged Property plus travel expenses, accounting firm fees, costs of the Appraisals,
Environmental Reports (and an environmental consultant), and the Engineering Reports and costs and fees incurred in connection with arranging, setting up, servicing and maintaining the Account Collateral); (iii) the negotiation, preparation,
execution and delivery of any amendment, waiver, restructuring or consent relating to any of the Loan 

  

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Documents, and (iv) the preservation of rights under and enforcement of the Loan Documents and the documents and instruments referred to therein, including
any communications or discussions relating to any action that Borrower shall from time to time request Agent to take, as well as any restructuring or rescheduling of the Indebtedness, (b) the reasonable fees, expenses and other charges of counsel to
Agent in connection with all of the foregoing, (c) all reasonable fees and expenses of each of the servicer appointed pursuant to Section 8.9(b) and Collateral Agent and its respective counsel and (d) Agent’s (or, where reasonably deemed
necessary by Agent, any other Lender’s) reasonable out-of-pocket travel expenses in connection with site visits to the Mortgaged Property. 
  
 Section 8.24. Non-Recourse. Anything contained herein, in the Note or in any other Loan Document to the contrary notwithstanding, no recourse shall be had for the
payment of the principal or interest on the Loan or for any other Indebtedness, obligation or liability hereunder or under any other Loan Document or for any claim based hereon or thereon or otherwise in respect hereof or thereof against (i) any
agent, contractor, director, officer, member, consultant, manager, stockholder, subscriber to capital stock, incorporator, beneficiary, participant, trustee or advisor of Borrower, or any partner or member therein; (ii) any legal representative,
heir, estate, successor or assign of any thereof; (iii) any corporation (or any officer, director, employee or shareholder thereof), limited liability company (or member thereof), partnership (or any partner thereof), individual or entity to which
any ownership interest in Borrower shall have been directly or indirectly transferred; (iv) any purchaser of any asset of Borrower; or (v) any other Person (except Borrower), for any deficiency or other sum owing with respect to the Note or any
other Indebtedness, obligation or liability or arising under this Agreement or any Loan Document. It is understood that neither the Note nor any other Indebtedness, obligation or liability under or with respect to this Agreement and any other Loan
Document may be enforced against any Person described in clauses (i) through (v) above; provided, however, that the foregoing provisions of this paragraph shall not: 
  
 (A) prevent recourse to Borrower, the assets of Borrower,
the Mortgaged Property or any other instrument or document which is pledged by Borrower to the Lenders pursuant to the Loan Documents, including all Collateral; 
  
 (B) have any applicability whatsoever to the collateral pledged pursuant to the Collateral Security
Instruments or limit the liability of Guarantor under the Guaranty of Non-Recourse Obligations; or 
  
 (C) constitute a waiver, release or discharge of any indebtedness or obligation evidenced by the Note or secured by the Loan Documents,
and the same shall continue until paid or discharged in full; or 
  
 (D) prevent recourse to Borrower and Guarantor and their respective assets for repayment of the Indebtedness, and the Indebtedness shall be fully recourse to Borrower and the Guarantor, in the event that any petition
for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed (A) by Borrower or (B) against Borrower with the consent or acquiescence of Borrower or the Guarantor or their
respective Affiliates; or 
  

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 (E) prevent recourse to Borrower and Guarantor and their respective assets, and Borrower
and Guarantor shall be fully and personally liable, for any loss, costs, liability, damage or expense suffered or incurred by Agent or any Indemnified Party related to or arising from: 
  
 (1) any fraud, misappropriation or misapplication of funds (including Loss Proceeds or Rents) committed by
or on behalf of Borrower in contravention of the Loan Documents, or intentional misrepresentation contained in any Loan Documents or report furnished pursuant to any Loan Document; 
  
 (2) any Transfer in violation of the terms of the Loan Documents; 
  
 (3) violation of any of the terms, covenants and conditions
to maintain Borrower as a Single Purpose Entity; 
  
 (4) additional financing obtained by Borrower (whether secured or unsecured) in violation of the terms of the Loan Documents; 
  
 (5) actual physical waste to the Mortgaged Property; 
  
 (6) breach of any representation, warranty or covenant in this Agreement or the Environmental Indemnity
Agreement, concerning Environmental Laws and Hazardous Substances; 
  
 (7) any security deposits received by Borrower or Manager from tenants not being properly applied, returned to tenants when due or delivered to Agent, a receiver or a purchaser of the Mortgaged Property in the event
of a foreclosure sale upon such Person taking possession of the Mortgaged Property; 
  
 (8) any Legal Requirement mandating the forfeiture by Borrower of the Collateral or any portion thereof because of the conduct or
purported conduct of criminal activity by Borrower or any Affiliate in connection therewith; 
  
 (9) if any Lien is voluntarily placed on the Collateral or any portion thereof in contravention of the Loan Documents and such Lien is not
discharged and removed within ten (10) days after notice; 
  
 (10) Borrower or any Affiliate contesting or in any way interfering with, directly or indirectly (collectively, a “Contest”), any foreclosure action or sale commenced by Agent or with any other
enforcement of Agent’s rights, powers or remedies under any of the Loan Documents or under any document evidencing, securing or otherwise relating to any of the Collateral (whether by making any motion, bringing any counterclaim, claiming any
defense, seeking any injunction or other restraint, commencing any action seeking to consolidate any such foreclosure or other enforcement with any other action, or otherwise) (except this clause (10) shall not apply if Borrower or such Affiliate
successfully asserts a Contest and obtains a final non-appealable order as to same); 
  

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 (11) the cost of enforcement of any of Agent’s rights or remedies hereunder or under
any of the other Loan Documents, or costs incurred in any bankruptcy or similar proceeding which may be brought by or against Borrower, or any pledgor or Guarantor; or 
  
 (12) the failure to pay Impositions assessed against the Mortgaged Property to the extent there was
sufficient funds available to pay the same, or the failure to maintain insurance as required under the Loan Documents, or the failure to pay any deductible amount in respect of any insurance maintained in respect of the Mortgaged Property, or the
failure to pay and discharge any mechanic’s or materialmen’s Liens against the Mortgaged Property to the extent there was sufficient funds available to pay and discharge the same or the work relating to such Liens was not approved by Agent
in writing or permitted by the Loan Documents or the failure to pay brokerage commissions. 
  
 ARTICLE IX. 
 THE AGENT 
  
 Section 9.1. Appointment, Powers and Immunities. Each Lender hereby irrevocably appoints and authorizes Agent to act as its agent
hereunder and under the other Loan Documents with such powers as are specifically delegated to Agent by the terms of this Agreement and of the other Loan Documents, together with such other powers as are reasonably incidental thereto. Agent (which
term as used in this sentence and in Section 9.5 and the first sentence of Section 9.6 hereof shall include reference to its Affiliates and its own and its Affiliates’ officers, directors, employees and agents): (a) shall have no
duties or responsibilities to the Lenders except those expressly set forth in this Agreement and in the other Loan Documents, and shall not by reason of this Agreement or any other Loan Document be a trustee for any Lender; (b) shall not be
responsible to the Lenders for any recitals, statements, representations or warranties contained in this Agreement or in any other Loan Document, or in any certificate or other document referred to or provided for in, or received by any of them
under, this Agreement or any other Loan Document, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or any other document referred to or provided for herein or therein
or for any failure by Borrower, or any other Person to perform any of their obligations hereunder or thereunder; (c) shall not be required to initiate or conduct any litigation or collection proceedings hereunder or under any other Loan Document;
and (d) shall not be responsible to the Lenders for any action taken or omitted to be taken by it hereunder or under any other Loan Document or under any other document or instrument referred to or provided for herein or therein or in connection
herewith or therewith, except for its own gross negligence or willful misconduct. Agent may employ agents and attorneys-in-fact and shall not be responsible to the Lenders for the negligence or misconduct of any such agents or attorneys-in-fact
selected by it in good faith. 
  
 Section 9.2. Reliance by Agent. Agent
shall be entitled to rely upon any certification, notice or other communication (including, without limitation, any thereof by telephone, facsimile transmission, telex, electronic mail, or cable) believed by it to be genuine and correct and to have
been signed or sent by or on behalf of the proper Person or Persons, and upon advice and statements of legal counsel, independent accountants and other experts selected by Agent in good faith. As to any matters not expressly provided for by this
Agreement or any other Loan 

  

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Document, Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder or thereunder in accordance with the instructions
given by all of the Lenders, and such instructions of such Lenders and any action taken or failure to act pursuant thereto shall be binding on all of the Lenders. 
  
 Section 9.3. Defaults. Agent shall not be deemed to have knowledge or notice of the occurrence of a Default or Event of Default
unless Agent has received written notice from a Lender or Borrower specifying such Default and stating that such notice is a “Notice of Default”. In the event that Agent receives such a notice of the occurrence of a Default or Event of
Default, Agent shall give prompt notice thereof to the Lenders. Agent shall (subject to Section 9.7 hereof) take such action with respect to such Default or Event of Default as shall be directed by all Lenders, provided that,
unless and until Agent shall have received such directions, Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best
interest of the Lenders except to the extent that this Agreement expressly requires that such action be taken, or not be taken, only with the consent or upon the authorization of all of the Lenders. 
  
 Section 9.4. Rights as a Lender. With respect to the Loan made by it, Agent in its
capacity as a Lender hereunder shall have the same rights and powers hereunder as any other Lender and may exercise the same as though it were not acting as Agent, and the term “Lender” or “Lenders” shall, unless the context
otherwise indicates, include Agent in its individual capacity. Agent and its affiliates may (without having to account therefor to any Lender) lend money to, make investments in and generally engage in any kind of business with Borrower or any of
their Affiliates as if it were not acting as Agent, and Agent and its Affiliates may accept fees and other consideration from Borrower or such Affiliate for services in connection with this Agreement or otherwise without having to account for the
same to the Lenders. 
  
 Section 9.5. Indemnification. The Lenders agree to
indemnify Agent (to the extent not reimbursed by Borrower, but without limiting the obligations of Borrower under the Loan Documents) ratably in accordance with their respective interests in the Loan, for any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever that may be imposed on, incurred by or asserted against Agent (including by any Lender) arising out of or by reason of any
investigation in or in any way relating to or arising out of this Agreement or any other Loan Document or any other documents contemplated by or referred to herein or therein or the Transaction (including, without limitation, the costs and expenses
that Borrower is obligated to pay under the Loan Documents, but excluding, unless a Default or Event of Default has occurred and is continuing, normal administrative costs and expenses incident to the performance of its agency duties hereunder) or
the enforcement of any of the terms hereof or thereof or of any such other documents, provided that no Lender shall be liable for any of the foregoing to the extent they arise from the gross negligence or willful misconduct of the party to be
indemnified. 
  
 Section 9.6. Non-Reliance on Agent and Other Lenders. Each
Lender agrees and acknowledges that it has, independently and without reliance on Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own credit analysis of Borrower and its own decision to
enter into this Agreement and that it will, independently and without reliance upon Agent or any other Lender, and based on such 

  

 104 

 
documents and information as it shall deem appropriate at the time, continue to make its own analysis and decisions in taking or not taking action under this
Agreement or under any other Loan Document. Agent shall not be required to keep itself informed as to the performance or observance by Borrower of this Agreement or any of the other Loan Documents or to inspect the properties or books of Borrower or
any of their Affiliates. Except for notices, reports and other documents and information expressly required to be furnished to the Lenders by Agent hereunder, Agent shall not have any duty or responsibility to provide any Lender with any credit or
other information concerning the affairs, financial condition or business of Borrower or any of their Affiliates that may come into the possession of Agent or any of its Affiliates. 
  
 Section 9.7. Failure to Act. Except for action expressly required of Agent hereunder and under the other Loan Documents, Agent shall
in all cases be fully justified in failing or refusing to act hereunder and thereunder unless it shall receive further assurances to its satisfaction from the Lenders of their indemnification obligations under Section 9.5 hereof against any
and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. 
  
 Section 9.8. Resignation of Agent. Subject to the appointment and acceptance of a successor Agent as provided below, Agent may resign upon giving notice thereof to
the Lenders; provided, however, that such resignation shall not be effective until such time as the successor Agent is in place and shall deliver written notice of such appointment to Borrower. Upon any such resignation, the Lenders
shall have the right to appoint a successor Agent. If no successor Agent shall have been so appointed by the Lenders and shall have accepted such appointment within 30 days after the retiring Agent’s giving of notice of resignation, then the
retiring Agent may, on behalf of the Lenders appoint a successor Agent, that shall be a sophisticated financial institution. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed
to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations hereunder. After any retiring Agent’s resignation hereunder as Agent, the
provisions of this Article 9 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as Agent. 
  
 Section 9.9. Agency Fee. Each Lender will pay to Agent an agency fee as may be agreed upon between such Lender and Agent. Borrower
shall not be liable for the payment of such fee. 
  
 Section 9.10. Consents
under Loan Documents. Agent may consent to any modification, supplement or waiver under any of the Loan Documents, provided that, without the prior consent of each Lender, Agent shall not release any Collateral or otherwise terminate any
Lien under any Loan Document providing for collateral security, or agree to additional obligations being secured by such collateral security (unless the Lien for such additional obligations shall be junior to the Lien in favor of the Obligations),
except that no such consent shall be required, and Agent is hereby authorized, to release any Lien covering Collateral that is the subject of a disposition permitted hereunder. 
  
 Section 9.11. Notices, Reports and Other Communications. Agent shall provide, at its expense, copies of each notice, report,
document, correspondence or other written communication delivered to Agent by Borrower or any Affiliate of Borrower pursuant to any Loan Document, to 

  

 105 

 
each Lender identified in such notice, report, document, correspondence or other written communication or reasonably determined by Agent to be entitled
thereto or affected thereby, as soon as practicable after Agent’s receipt thereof. 
  
 [SIGNATURES FOLLOW ON NEXT PAGE] 
  

 106 

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

			
	AGENT AND INITIAL LENDER:
	
	 CITIGROUP GLOBAL MARKETS REALTY CORP.,
 a New York corporation

		
	By:	 	/s/    MICHAEL J.
DANBERG        
	 Name:
	 	Michael J. Danberg
	 Title:
	 	Authorized Agent
	
	BORROWER:
	
	 515/555 FLOWER ASSOCIATES, LLC,
 a Delaware limited liability company

		
	By:	 	/s/    JOHN R. SISCHO        
	 	 	John R. Sischo
	 	 	Vice President
	
	COLLATERAL AGENT:
	
	 LASALLE BANK NATIONAL ASSOCIATION,
 a national banking association (as Collateral Agent for the Lenders only)

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 Signature Page 1 

 SCHEDULE 1 
  

Affiliate Transactions as of Closing 
  

 Schedule 1 

 SCHEDULE 2 
  

Operations and Maintenance Plan 
  

 Schedule 2 

 SCHEDULE 3 
  

Excluded Leases 
  
 ARCO LEASE 
  
 Atlantic Richfield Plaza Office Building Lease between Shuwa, as Landlord, and Atlantic Richfield Company, a Delaware corporation (“ARCO”), as Tenant, dated September 16, 1986, as amended by
the following: 
  

	 	a.	Amendment to Office Lease (ARCO Plaza), dated May 31, 1995; 

  

	 	b.	Second Amendment to Lease, dated March 5, 1997; 

  

	 	c.	Letter Agreement amending lease, dated October 21, 1992; and 

  

	 	d.	Letter Agreement amending lease, dated June 2, 1990. 

  
 BANK OF AMERICA LEASES 
  

	1.	Atlantic Richfield Plaza, Plaza Pavilion Lease between Shuwa Investments Corporation “Landlord” and Bank of America National Trust and Savings Association
(“Bank of America”) “Tenant,” dated September 16, 1986. 

  

	2.	Atlantic Richfield Plaza Office Building Lease between Shuwa “Landlord” and Bank of America “Tenant”, dated September 16, 1986, as amended by the following:

  

	 	a.	First Amendment to Office Building Lease and to Guaranty Agreement dated September 13, 1989; 

  

	 	b.	Second Amendment to Office Building Lease and to Guaranty Agreement dated December 26, 1989; 

  

	 	c.	Third Amendment to Office Building Lease and to Guaranty Agreement dated January 19, 1990; 

  

	 	d.	Fourth Amendment to Office Building Lease and to Guaranty Agreement dated September 15, 1992; and 

  

	 	e.	Fifth Amendment to Lease dated September 11, 1998. 

  

 Schedule 3Loan Agreement dated July 15, 2004 with 515/555 Flower Mezzanine Associates LLC

 Exhibit 10.20 
  
 LOAN AGREEMENT 
  
 Dated as of July 15, 2004 
  
 between 
  
 515/555 FLOWER MEZZANINE ASSOCIATES, LLC 
 as Borrower 
  
 and 
  
 CITIGROUP GLOBAL MARKETS REALTY CORP. 
 as Lender 
  

 TABLE OF CONTENTS 
  

							
	 	  	 	  	Page

	 ARTICLE I CERTAIN DEFINITIONS
	  	1
				
	 	  	Section 1.1.	  	 Definitions
	  	1
		
	 ARTICLE II GENERAL TERMS
	  	25
				
	 	  	Section 2.1.	  	 The Loan
	  	25
	 	  	Section 2.2.	  	 Use of Proceeds
	  	26
	 	  	Section 2.3.	  	 Security for the Loan
	  	26
	 	  	Section 2.4.	  	 Borrower’s Note
	  	26
	 	  	Section 2.5.	  	 Principal and Interest; Exit Fee
	  	26
	 	  	Section 2.6.	  	 Voluntary Prepayment
	  	27
	 	  	Section 2.7.	  	 No Sale/Encumbrance; Mandatory Prepayment
	  	27
	 	  	Section 2.8.	  	 Application of Payments After Event of Default
	  	28
	 	  	Section 2.9.	  	 Method and Place of Payment
	  	28
	 	  	Section 2.10.	  	 Taxes
	  	28
	 	  	Section 2.11.	  	 Release of Collateral
	  	29
	 	  	Section 2.12.	  	 Central Cash Management
	  	29
	 	  	Section 2.13.	  	 Extension Option
	  	31
	 	  	Section 2.14.	  	 Security Agreement
	  	32
	 	  	Section 2.15.	  	 Junior Mezzanine Loan
	  	34
		
	 ARTICLE III CONDITIONS PRECEDENT
	  	35
				
	 	  	Section 3.1.	  	 Conditions Precedent to Effectiveness
	  	35
	 	  	Section 3.2.	  	 Advance Procedure
	  	39
	 	  	Section 3.3.	  	 Conditions Precedent to Advances
	  	42
	 	  	Section 3.4.	  	 Additional Provisions for Future Advances
	  	45
	 	  	Section 3.5.	  	 Form of Loan Documents and Related Matters
	  	47
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES
	  	47
				
	 	  	Section 4.1.	  	 Representations and Warranties as to Borrower
	  	47
	 	  	Section 4.2.	  	 Survival of Representations
	  	53
		
	 ARTICLE V AFFIRMATIVE COVENANTS
	  	53
				
	 	  	Section 5.1.	  	 Affirmative Covenants
	  	53
		
	 ARTICLE VI NEGATIVE COVENANTS
	  	73
				
	 	  	Section 6.1.	  	 Negative Covenants
	  	73

  

 i 

							
	 ARTICLE VII EVENT OF DEFAULT
	  	76
				
	 	  	Section 7.1.	  	 Event of Default
	  	76
	 	  	Section 7.2.	  	 Remedies
	  	79
	 	  	Section 7.3.	  	 Remedies Cumulative
	  	80
	 	  	Section 7.4.	  	 Default Administration Fee
	  	80
	 	  	Section 7.5.	  	 Curative Advances
	  	80
		
	 ARTICLE VIII MISCELLANEOUS
	  	81
				
	 	  	Section 8.1.	  	 Survival
	  	81
	 	  	Section 8.2.	  	 Lender’s Discretion
	  	81
	 	  	Section 8.3.	  	 Governing Law
	  	81
	 	  	Section 8.4.	  	 Modification, Waiver in Writing
	  	82
	 	  	Section 8.5.	  	 Delay Not a Waiver
	  	82
	 	  	Section 8.6.	  	 Notices
	  	82
	 	  	Section 8.7.	  	 TRIAL BY JURY
	  	83
	 	  	Section 8.8.	  	 Headings
	  	83
	 	  	Section 8.9.	  	 Assignment
	  	83
	 	  	Section 8.10.	  	 Severability
	  	83
	 	  	Section 8.11.	  	 Preferences
	  	84
	 	  	Section 8.12.	  	 Waiver of Notice
	  	84
	 	  	Section 8.13.	  	 Failure to Consent
	  	84
	 	  	Section 8.14.	  	 Schedules Incorporated
	  	84
	 	  	Section 8.15.	  	 Offsets, Counterclaims and Defenses
	  	84
	 	  	Section 8.16.	  	 No Joint Venture or Partnership
	  	85
	 	  	Section 8.17.	  	 Waiver of Marshalling of Assets Defense
	  	85
	 	  	Section 8.18.	  	 Waiver of Counterclaim
	  	85
	 	  	Section 8.19.	  	 Conflict; Construction of Documents
	  	85
	 	  	Section 8.20.	  	 Brokers and Financial Advisors
	  	85
	 	  	Section 8.21.	  	 Counterparts
	  	85
	 	  	Section 8.22.	  	 Estoppel Certificates
	  	86
	 	  	Section 8.23.	  	 Payment of Expenses
	  	86
	 	  	Section 8.24.	  	 Non-Recourse
	  	86
		
	 ARTICLE IX BANKRUPTCY
	  	89
				
	 	  	Section 9.1.	  	 Material Inducement
	  	89
	 	  	Section 9.2.	  	 No Fraudulent Intent
	  	89
	 	  	Section 9.3.	  	 No Bankruptcy Intent
	  	89
	 	  	Section 9.4.	  	 Agreement in Best Interests of Parties, Consideration
	  	90
	 	  	Section 9.5.	  	 Subsequent Bankruptcy: Waiver of Automatic Stay
	  	90
	 	  	Section 9.6.	  	 Waiver of Automatic and Supplemental Stays
	  	91
	 	  	Section 9.7.	  	 Approval Rights Regarding Bankruptcy Proceeding
	  	91
	 	  	Section 9.8.	  	 Covenant of Noninterference and Cooperation
	  	92

  

 ii 

 SCHEDULES 
  

					
	1	  	–	  	Major Decisions
	2	  	–	  	First Mortgage Loan Documents
	3	  	–	  	Construction Consulting and Project Management proposal of the Construction Consultant, dated as of June 3, 2004
	4	  	–	  	Form of Task Order
	5	  	–	  	Mezzanine Loan Advance Request Form
	6	  	–	  	Basis Calculation Worksheet
	7	  	–	  	Affiliate Transactions as of Closing

  

 iii 

 LOAN AGREEMENT 
  
 THIS LOAN AGREEMENT, dated as of July 15, 2004, between 515/555 FLOWER MEZZANINE
ASSOCIATES, LLC, a Delaware limited liability company, having an address at c/o Thomas Properties Group, LLC, 515 South Flower Street, Sixth Floor, Los Angeles, California 90071 (“Borrower”) and
CITIGROUP GLOBAL MARKETS REALTY CORP., a New York corporation, having an address at 388 Greenwich Street, 11th Floor, New York, New York 10013 (in such capacity
together with its successors and assigns in such capacity, the “Lender”). 
  
 RECITALS 
  
 WHEREAS, Borrower desires to obtain from Lender a series of loan advances (each, an “Advance” and collectively, the “Loan”) in an aggregate amount at any time
outstanding up to the Loan Amount secured by the equity interest in First Mortgage Borrower (as defined herein) to finance the Renovation of the Mortgaged Property, to make interest payments on the Loan and the First Mortgage Loan (as defined
herein), and, to the extent necessary, to pay certain other fees and expenses; 
  
 WHEREAS, the Lender is unwilling to make the Loan available unless Borrower and Guarantor join in the execution and delivery of this Agreement, the Note and the Loan Documents (each as hereinafter defined) to which
each of them is a party, which shall establish the terms and conditions of, and provide security for, the Loan; and 
  
 WHEREAS, Borrower has agreed to establish certain accounts and to grant to Lender a security interest therein upon the terms and conditions of the
security agreement set forth in Section 2.14; 
  
 NOW,
THEREFORE, in consideration of the making of the Loan by Lender and for other good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, the parties hereby covenant, agree, represent and warrant as
follows: 
  
 ARTICLE I 
 CERTAIN DEFINITIONS 
  
 Section 1.1. Definitions. For all purposes of this Agreement: (1) the capitalized terms defined in this Article I have the meanings assigned
to them in this Article I and include the plural as well as the singular; (2) all accounting terms have the meanings assigned to them in accordance with GAAP (as hereinafter defined); (3) the words “herein”, “hereof”, and
“hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section, or other subdivision; and (4) the following terms have the following meanings: 
  
 “Account Collateral” has the meaning set forth in
Section 2.14(a) hereof. 
  
 “Advance” has the meaning provided in the Recitals hereto. 
  

 1 

 “Advance Date” means any Business Day on which the Lender makes an Advance to
Borrower in accordance with the procedure set forth in Article III. 
  
 “Affiliate” of any specified Person means any other Person controlling or controlled by or under common control with such specified Person. For the purposes of this definition,
“control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities or other beneficial interests, by
contract or otherwise; and the terms “controlling” and “controlled” have the meanings correlative to the foregoing. 
  
 “Agreement” means this Loan Agreement, together with the Schedules and Exhibits hereto, as the same may from time to time
hereafter be modified, supplemented or amended. 
  
 “Appraisal” means an appraisal with respect to the Mortgaged Property prepared by an Appraiser in accordance with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation, in compliance
with the requirements of Title 11 of the Financial Institution Reform, Recovery and Enforcement Act and utilizing customary valuation methods such as the income, sales/market or cost approaches. 
  
 “Appraiser” means any nationally recognized MAI
appraiser selected by Borrower and acceptable to the Lender. 
  
 “Approved Junior Mezzanine Borrower”, “Approved Junior Mezzanine Lender” and “Approved Junior Mezzanine Loan” have the respective meanings set forth in Section 2.15(a).

  
 “Architects” means such architects or
engineering firms as shall be approved by Lender in its reasonable discretion. 
  
 “Architects’ Contracts” means the contracts and engineer design agreements between First Mortgage Borrower and Architects with respect to the Renovations. 
  
 “Bad Faith Filing” has the meaning set forth in
Section 9.5(a). 
  
 “Bank” means
LaSalle Bank National Association, or its successor in interest (or any other financial institution appointed by Lender and notified in writing to Borrower which delivers a collection account agreement in the form of the Collection Account Agreement
or another form acceptable to Lender). 
  
 “Bankruptcy
Action” means 
  
 (A) Borrower or
First Mortgage Borrower files a voluntary petition under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; 
  
 (B) any Related Party controlled, directly or indirectly, by Borrower, or by an Affiliate which controls, directly or indirectly,
Borrower, filing, or joining in the filing of, an involuntary petition against Borrower or First Mortgage Borrower under the 

  

 2 

 
Bankruptcy Code or any other Federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited petitioning creditors for any
involuntary petition against Borrower or First Mortgage Borrower from any Person; 
  
 (C) Borrower or First Mortgage Borrower filing an answer consenting to or otherwise colluding in or joining in any involuntary petition
filed against Borrower or First Mortgage Borrower (or any of its respective partners or members or Guarantor or any other party providing a guaranty or indemnity in connection with the Loan or First Mortgage Loan), by any other Person under the
Bankruptcy Code or any other Federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited petitioning creditors for any involuntary petition from any Person; 
  
 (D) any Related Party controlled, directly or indirectly, by Borrower or First Mortgage Borrower or by any
Affiliate which controls, directly or indirectly, Borrower or First Mortgage Borrower consenting to or otherwise colluding in or joining in an application for the appointment of a custodian, receiver, trustee or examiner for Borrower or First
Mortgage Borrower or any portion of the Collateral (unless such action is at the request of Lender or First Mortgage Lender) or an Affiliate of a Related Party voting adversely to Lender’s interest in any proceeding under the Bankruptcy Code or
any other Federal or state bankruptcy or insolvency law which involves Borrower, First Mortgage Borrower, the Collateral or the Mortgaged Property; or 
  
 (E) Mezzanine Borrower or First Mortgage Borrower making an assignment for the benefit of creditors, or admitting, in writing or in any
legal proceeding, its insolvency or inability to pay its debts as they become due. 
  
 “Bankruptcy Code” means Title 11, U.S.C.A., as amended from time to time or any successor statute thereto. 
  
 “Bankruptcy Court” has the meaning set forth in Section 9.5(a). 
  
 “Bankruptcy Filings” has the meaning set forth in
Section 9.7. 
  
 “Basis” means,
with respect to the Mortgaged Property, as of any date of determination, the sum of: 
  
 (i) $97,943,672 (which amount equals the $14,850,000 initial capital account of Kings Capital Portfolio #9, LLC, plus the $150,000 equity
capital contribution of Kenneth A. Picerne Trust Dated June 4, 1999 and the equity capital contribution of Borrower’s other principals as of the Closing Date, plus the Origination Fees paid pursuant to the First Mortgage Loan, plus the costs of
any interest rate cap obtained by First Mortgage Borrower pursuant to the First Mortgage Loan Documents, less any equity cash-out resulting from the funding of the First Mortgage Loan on the Closing Date), 
  
 (ii) the sum of the First Mortgage Loan Amount and the
outstanding Principal Indebtedness, minus any portion of the proceeds of the First Mortgage Loan remitted to 

  

 3 

 
the Interest Reserve Account on the Closing Date and remaining on deposit in the Interest Reserve Account on such date (excluding any reinvestment income
thereon), 
  
 (iii) any equity capital
contributions of Borrower’s principals made to Borrower after the Closing Date which Borrower in turn further contributes to the First Mortgage Borrower, including the Origination Fees paid pursuant to the Loan, the costs of any interest rate
cap obtained by Borrower pursuant to the Loan Documents, and the first $15,000,000 of funds remitted to the Cash Flow Sweep Account and subsequently applied to pay Capital Improvement Costs (but specifically excluding (A) all additional funds after
the first $15,000,000 remitted to the Cash Flow Sweep Account and subsequently applied to pay Capital Improvement Costs, and (B) any funds remitted to the Cash Flow Sweep Account and subsequently applied to make interest payments on the First
Mortgage Loan or the Loan), 
  
 (iv) any funds
withdrawn from the Interest Reserve Account and applied to make interest payments on the First Mortgage Loan or the Loan, and 
  
 (v) the proceeds of any Approved Junior Mezzanine Loan applied to pay Capital Improvement Costs, Leasing Commissions or TI Costs at the
Mortgaged Property. 
  
 “Borrower” has the
meaning provided in the first paragraph of this Agreement. 
  
 “Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in the State of New York, California or Illinois are authorized or obligated by law, governmental decree or executive
order to be closed. When used with respect to an Interest Determination Date, “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which banks in London, England are closed for interbank or foreign
exchange transactions. 
  
 “CALSTRS” means
the California State Teachers’ Retirement System. 
  
 “Capital Budget” means First Mortgage Borrower’s $112,000,000 budget of Capital Improvement Costs for the Renovation of the Mortgaged Property, excluding TI Costs, in the form approved by the Lender on the
Closing Date, together with such amendments to such budget as may be approved by the Lender in accordance with this Agreement. 
  
 “Capital Event” means any transfer, sale, assignment, conveyance, liquidation or disposition (other than a taking) of all or any
portion of the Mortgaged Property. 
  
 “Capital
Improvement Costs” means costs incurred or to be incurred in connection with replacements, capital repairs and renovations to be made to the Mortgaged Property (including direct and indirect costs as stipulated under the Capital Budget
approved by the Lender). 
  
 “Cash Flow Sweep
Account” has the meaning given to such term in the First Mortgage Loan Agreement. 
  

 4 

 “Change Order” means any written amendment or modification of the Renovation
Plan, the General Contract, the Architect’s Contract or any Major Subcontract. 
  
 “Closing Date” means the date on which this Agreement shall become effective pursuant to Section 3.1, such date being the date of this Agreement. 
  
 “Code” means the Internal Revenue Code of 1986, as
amended, and as it may be further amended from time to time, any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 
  
 “Collateral” means, collectively, the
“Collateral” (as such term is defined in the Pledge Agreement), the Mezzanine Loan Account, the Repositioning Costs Reserve Account and all other property which is or hereafter may become subject to a Lien in favor of Lender as security
for the Loan. 
  
 “Collateral Assignment of
Hedge” means the Collateral Agreement of Hedge, dated as of the applicable date and executed by Borrower, the Lender and the hedge counterparty. 
  
 “Collection Account Agreement” means with respect to the Mezzanine Loan Account and the Repositioning Costs Reserve Account, the
deposit account agreement, dated as of the applicable date and executed by Borrower, Lender and the Bank. 
  
 “Collection Period” means, with respect to any Payment Date, the period commencing on and including the eleventh (11th) day in the
month preceding the month in which such Payment Date occurs through and including the tenth (10th) day in the month in which such Payment Date occurs; provided, however, that in the case of the first Payment Date, the “Collection
Period” shall commence on the Closing Date. 
  
 “Commencement Date” means the Closing Date, 2004, or such other date upon which Borrower and Lender may mutually agree. 
  
 “Completion Date” means the date on which the Renovation shall be substantially complete in accordance with the Renovation Plans,
as evidenced by a certification from the Architects as required under Article III, and confirmed by the Construction Consultant, together with a TCO for the portion of Mortgaged Property subject to the Renovation that requires certificates of
occupancy prior to occupancy by tenants, which date shall not be later than the Maturity Date, as the same may extended hereunder. 
  
 “Construction Consultant” means Inspection and Valuation International, Inc., a New York corporation, or such other construction
consultant as the Lender shall select and notify Borrower that the Lender has appointed. 
  
 “Construction Contracts” means the General Contracts, the supportive Major Subcontracts, the Task Orders and the Consulting Contracts in connection with the Renovation of the Improvements.

  

 5 

 “Construction Documents” means the following documents in connection with the
work being performed on the Improvements, where applicable: 
  
 (i) Renovation Plans; 
  
 (ii) Architects’ Contracts; 
  
 (iii) Construction Contracts; 
  
 (iv)
designer’s certification of code and Americans with Disabilities Act compliance; 
  
 (v) Construction Timing; 
  
 (vi) moisture intrusion/mold action plan; 
  
 (vii) payment and performance bonds; 
  
 (viii) description and scope of the Renovation; 
  

(ix) professional qualifications of Architects and Engineer; and 
  
 (x) permits, approvals and licenses required for the Renovation. 
  
 “Construction Opinion Letter” means an opinion letter
delivered by Construction Consultant in connection with proposed amendments to the Capital Budget, based upon review of the Construction Documents, and consisting of the following sections: 
  

	 	A.	General Description 

  

	 	B.	Review of Borrower’s Direct Cost Budget 

  

	 	C.	Plan and Specification Development 

  

	 	D.	Construction Timing 

  

	 	E.	Permits and Approvals 

  

	 	F	Contracts and Agreements 

  

	 	G.	Outstanding Documentation and Issues for Resolution 

  
 “Construction Project Memorandum” means a memorandum delivered by Construction Consultant in connection with a review of either
(a) Consulting Contracts and/or Task Orders with consultants, together with a review of a corresponding project budget, for portions of the Renovation for which complete Construction Documents do not yet exist, or (b) new Task Orders and/or other
contracts pertaining to a portion of the Renovation covered by a previously issued Construction Opinion Letter. 
  
 “Construction Timing” means a construction progress schedule and a disbursement schedule, in form reasonably acceptable to Lender,
showing the progress of construction, the projected sequencing and completion time for uncompleted work, and the times and amounts for disbursements, all as of the date of such schedule, together with such updates as Lender may request. 

 

 6 

 “Consulting Contract” means any contract for consulting services in connection
with the Renovation of the Improvements. 
  
 “Consumer
Price Index” means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the United States Department of Labor, in the area where the Mortgaged Property is located, All Items (1982-84 = 100), or
any successor index thereto, appropriately adjusted and if such Consumer Price Index ceases to be published and there is no successor thereto, such other index as Lender and Borrower shall mutually agree upon. 
  
 “Contingent Obligation” means, as used in the
definition of Other Borrowings, without duplication, any obligation of Borrower guaranteeing any indebtedness, leases, dividends or other obligations (“primary obligations”) of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly. Without limiting the generality of the foregoing, the term “Contingent Obligation” shall include any obligation of Borrower, whether or not contingent:

  
 (i) to purchase any such primary obligation
or any property constituting direct or indirect security therefor; 
  
 (ii) to advance or supply funds (x) for the purchase or payment of any such primary obligation or (y) to maintain working capital or equity capital of the primary obligor; 
  
 (iii) to purchase property, securities or services primarily
for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation; or 
  
 (iv) otherwise to assure or hold harmless the owner of such primary obligation against loss in respect thereof. 
  
 The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated
or determinable amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming Borrower is required to perform
thereunder) as determined by Lender in good faith. 
  
 “Contractors’ Requisition Certifications” means certificates from the General Contractors, in the form of AIA Documents G702 (General Contractors’ application for payment as certified by the Architects) and
G703 (continuation sheet), or similar forms as may be reasonably approved by Lender, certifying as of the proposed Advance Date, (i) the Capital Improvement Costs and TI Costs which have been incurred by or on behalf of Borrower since the last such
certification (or if there has been no such prior certification, since the initial Advance Date), (ii) the progress made on the Renovation of the Mortgaged Property since the last such certification (or if there has been no such prior certification,
since the initial Advance Date) and (iii) estimated Capital Improvement Costs and TI Costs remaining to complete the Renovation of the Mortgaged Property; provided, however, that such Capital Improvement Costs 

  

 7 

 
and TI Costs are subject to verification by Lender and the Construction Consultant from time to time. 
  
 “Control Agreement” means that certain Control
Agreement, of even date herewith, by and among Borrower, First Mortgage Borrower and Lender. 
  
 “Default” means the occurrence of any event which, but for the giving of notice or the passage of time, or both, would be an Event of Default. 
  
 “Default Administration Fee” means an amount equal to
the product of (x) 0.5% and (y) the Principal Indebtedness as of the date the Default Administration Fee becomes payable; provided, however, that if prior to the expiration of the Default Refinance Period, Borrower fully repays the
Indebtedness, then the amount of the Default Administration Fee shall be reduced by the amount of the Exit Fee, regardless of whether payment of the Exit Fee is waived by Lender hereunder. 
  
 “Default Rate” means the per annum interest rate
equal to the lesser of (a) 5.0% per annum in excess of the rate otherwise applicable hereunder and (b) the maximum rate allowable by applicable law. 
  
 “Default Refinance Period” means the period that commences as of the date the Default Administration Fee becomes payable
hereunder, and ends on the date that is ninety (90) days thereafter; provided, however, that if Borrower has not fully repaid the Indebtedness on or prior to such ninetieth (90th) day, but Borrower has used commercially reasonable and diligent
efforts to obtain a refinance loan, and delivers to Lender, on or before such ninetieth (90th) day, a fully-executed copy of a binding loan commitment from a bank or other bona fide commercial lender pursuant to which such bank or commercial lender
has committed to make a loan to Borrower in an amount that is no less than the then-outstanding Indebtedness, then the Default Refinance Period shall be extended by thirty (30) days. 
  
 “Demand Note” shall mean that certain Demand Note, dated of even date herewith, executed by
TPG/CALSTRS to Guarantor, in the original principal amount of $10,000,000, payable upon demand from Guarantor to TPG/CALSTRS, in the event that Guarantor defaults in its payment obligations under the Guaranty of Non-Recourse Obligations. 

 
 “Disclosure Certificate” has the meaning set forth
in Section 5.1(t). 
  
 “Disclosure
Documents” has the meaning set forth in Section 5.1(t). 
  
 “Effective Net Rent” means, with respect to a proposed new Lease, the level annual payment over the term of such Lease, expressed in Dollars per square foot, that when discounted to present
value at a 10.00% per annum interest rate is the equivalent of the Net Present Value, provided, that with respect to a Lease with phased-in commencement dates, such level annual payment shall be calculated separately for each phase in and the Net
Effective Rent shall be the weighted average of all such calculations, weighted based on square footage. 
  
 “Eligible Account” means a separate and identifiable account from all other funds held by the holding institution that is: (i) an
account maintained with a federal or state 

  

 8 

 
chartered depository institution or trust company whose (1) commercial paper, short-term debt obligations or other short-term deposits are rated by the
Rating Agencies not less than “A-1”(or the equivalent), if the deposits are to be held in the account for thirty (30) days or less or (2) long-term unsecured debt obligations are rated at least “AA–” (or the equivalent), if
the deposits are to be held in the account more than thirty (30) days, or (ii) a segregated trust account maintained with the corporate trust department of a federal or state chartered depository institution or trust company subject to regulations
regarding fiduciary funds on deposit similar to Title 12 of the Code of Federal Regulations Section 9.10(b) which, in either case, has corporate trust powers, acting in its fiduciary capacity. An Eligible Account shall not be evidenced by a
certificate of deposit, passbook, other instrument or any other physical indicia of ownership. Following a downgrade, withdrawal, qualification or suspension of such institution’s rating, each account must promptly (and in any case within not
more than thirty (30) calendar days) be moved to a qualifying institution or to one or more segregated trust accounts in the trust department of such institution, if permitted. 
  
 “Engineer” means an Independent engineer selected by Borrower and approved by Lender. 
  
 “Engineering Report” means the structural engineering
reports with respect to the Mortgaged Property prepared by an Engineer and delivered to Lender in connection with the Loan and any amendments or supplements thereto delivered to Lender. 
  
 “Environmental Auditor” means an Independent environmental auditor selected by Borrower and approved
by Lender. 
  
 “Environmental Indemnity
Agreement” means the Environmental Indemnity Agreement, dated as of the Closing Date, from Borrower and Guarantor, as indemnitor, to the Indemnified Parties, as indemnitee. 
  
 “Environmental Laws” means any and all present and future federal, state or local laws, statutes,
ordinances or regulations or any judicial interpretation thereof, any judicial or administrative orders, decrees or judgments thereunder issued by a Governmental Authority, and any permits, approvals, licenses, registrations, filings and
authorizations, in each case as now or hereafter in effect, relating to the environment, human health or safety, or the Release or threatened Release of Hazardous Substances or otherwise relating to the Use of Hazardous Substances. 
  
 “Environmental Reports” means a “Phase I
Environmental Site Assessment” (and, if necessary, a “Phase II Environmental Site Assessment”) as referred to in the ASTM Standards on Environmental Site Assessments for Commercial Real Estate, E 1527-2000 and an asbestos inspection
report, with respect to the Mortgaged Property, prepared by an Environmental Auditor and delivered to Lender and any amendments or supplements thereto delivered to Lender. 
  
 “EO13224” has the meaning set forth in Section 4.1(z) hereof. 
  
 “ERISA” means the Employee Retirement Income Security
Act of 1974, as amended from time to time, and the regulations promulgated thereunder. Section references to 

  

 9 

 
ERISA are to ERISA, as in effect at the date of this Agreement and, as of the relevant date, any subsequent provisions of ERISA, amendatory thereof,
supplemental thereto or substituted therefor. 
  
 “ERISA Affiliate” means any corporation or trade or business that is a member of any group of organizations (i) described in Section 414(b) or (c) of the Code of which Borrower is a member and (ii) solely for
purposes of potential liability under Section 302(c)(11) of ERISA and Section 412(c)(11) of the Code and the lien created under Section 302(f) of ERISA and Section 412(n) of the Code, described in Section 414(m) or (o) of the Code of which Borrower
is a member. 
  
 “Event of Default” has
the meaning set forth in Section 7.1 hereof. 
  
 “Excusable Delay” means any of (i) strikes or lockouts; (ii) fire or other casualty; (iii) governmental preemption; (iv) breakdown, accident or other acts of God; (v) acts of war, terrorism, insurrection, civil
strife and commotion; (vi) failures of supply despite reasonable diligence of the Borrower; (vii) any enactment, promulgation or amendment of any statute, rule, order or regulation of any legislature or governmental agency or any department or
subdivision thereof; (viii) any litigation not caused by Borrower or any of Borrower’s Affiliates; or (ix) any other event that occurs after the Closing Date that is outside the reasonable control of the Borrower (excluding any event that with
reasonable diligence or investigation is knowable at the Closing Date) and, in each such case above, which shall make it physically impossible, unlawful or commercially impracticable to complete the act or event in question. 
  
 “Exit Fee” means 0.50% of the aggregate amount of
Advances made to the Borrower pursuant to this Agreement, which amount shall be due and payable upon the earlier to occur of full repayment of the Loan and the Maturity Date (whether by acceleration or otherwise); provided, however,
that notwithstanding the foregoing, in the event the Lender provides either (a) the funds for a refinancing of the First Mortgage Loan in an amount not less than $300,000,000, or (b) the funds for a refinancing of the Loan in any amount, then the
Exit Fee shall be waived. 
  
 “Extension
Conditions”, “Extension Fee”, “Extension Notice”, and “Extension Option” have the respective meanings set forth in Section 2.13(a) hereof. 
  
 “Final Maturity Date” and “First Extended
Maturity Date” have the respective meanings set forth in Section 2.13(a) hereof. 
  
 “First Mortgage” means the Mortgage, Assignment of Rents and Leases, Security Agreement and Fixture Filing constituting a First
Mortgage Loan Document referenced on Schedule 2 hereto. 
  
 “First Mortgage Assignment of Rents” means the Assignment of Leases and Rents constituting a First Mortgage Loan Document referenced on Schedule 2 hereto. 
  
 “First Mortgage Borrower” means 515/555 Flower
Associates, LLC, a Delaware limited liability company. 
  

 10 

 “First Mortgage Lender” means Citigroup Global Markets Realty Corp., a New York
corporation, and its successors and assigns. 
  
 “First
Mortgage Loan” means the loan from the First Mortgage Lender to First Mortgage Borrower pursuant to the First Mortgage Loan Documents. 
  
 “First Mortgage Loan Agreement” means the Loan Agreement constituting a First Mortgage Loan Document referenced on Schedule
2 hereto. 
  
 “First Mortgage Loan
Documents” means the promissory note, the mortgage and the other loan documents, entered into as of even date herewith, between the First Mortgage Lender and First Mortgage Borrower, a list of which is attached hereto as Schedule
2. 
  
 “First Mortgage Principal
Indebtedness” has the meaning given to the term “Principal Indebtedness” in the First Mortgage Loan Agreement. 
  
 “First Mortgage Rating Confirmation” means the written confirmation of the Rating Agencies that a proposed action shall not, in
and of itself, result in the downgrading, withdrawal or qualification of the then-current ratings assigned to any of the Securities (as such term is defined in the First Mortgage Loan Agreement) issued in connection with a Secondary Market
Transaction (as such term is defined in the First Mortgage Loan Agreement). 
  
 “Fiscal Year” means the 12-month period ending on December 31st of each year (or, in the case of the first fiscal year, such shorter period from the Closing Date through such date) or such
other fiscal year of Borrower as Borrower may select from time to time with the prior consent of Lender. 
  
 “Fund” has the meaning set forth in the definition of “Permitted Investments”. 
  
 “GAAP” means generally accepted accounting principles
as required by the National Council for Real Estate Fiduciaries in the United States of America as of the date of the applicable financial report. 
  
 “General Contracts” means the general construction contracts between the First Mortgage Borrower and the General Contractors for
Renovation of the Mortgaged Property which shall be an AIA stipulated sum agreement or guaranteed maximum price contract and shall be in form and substance reasonably acceptable to Borrower and Lender. 
  
 “General Contractors” means such construction
managers or general contractors as shall be approved by Lender in its reasonable discretion. 
  
 “Governmental Authority” means any national or federal government, any state, regional, local or other political subdivision thereof with jurisdiction and any Person with jurisdiction
exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
  

 11 

 “Gross Revenue” means, for any Collection Period, the total dollar amount of all
income and receipts received by, or for the account of, First Mortgage Borrower with respect to the Mortgaged Property. 
  
 “Guarantor” means 505 Flower Associates, LLC, a Delaware limited liability company. 
  
 “Guaranty of Nonrecourse Obligations” means, with
respect to the Loan, the Guaranty of Nonrecourse Obligations guaranteeing the exceptions to the nonrecourse provisions of the Loan Documents for which liability is retained as described in Section 8.24 hereof, from the Guarantor to Lender.

  
 “Hazardous Substance” means,
collectively, (i) any petroleum or petroleum products or waste oils, explosives, radioactive materials, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls (“PCBs”), lead in drinking water, lead-based paint
and radon, (ii) any chemicals or other materials or substances which are now or hereafter become defined as or included in the definitions of “hazardous substances”, “hazardous wastes”, “hazardous materials”,
“extremely hazardous wastes”, “restricted hazardous wastes”, “toxic substances”, “toxic pollutants”, “contaminants”, “pollutants” or words of similar import under any Environmental Law and
(iii) any other chemical or any other hazardous material or substance, exposure to which is now or hereafter prohibited, limited or regulated under any Environmental Law. 
  
 “Immediate Remedy Event” means the occurrence of any of the following: (a) any prior Event of
Default that has previously been cured by Borrower; (b) any event or condition that results in personal liability to Guarantor under Section 8.24; (c) any event or condition described in Sections 7.1(f), (g) or (h); (d)
Borrower’s failure timely to pay or cause to be paid real estate taxes and assessments due and payable on the Mortgaged Property in the event that insufficient funds are held by First Mortgage Lender in the Real Estate Taxes Escrow Account (as
defined in the First Mortgage Loan Agreement); (e) any event or condition that results or may result in the material impairment of the Collateral, the Mortgaged Property or the value thereof, or any event of condition where Lender believes that it
must take immediate corrective action to protect the value of the Mortgaged Property or the Collateral; or (f) the receipt of a notice from Approved Junior Mezzanine Lender that it intends to foreclose on its security interest in the membership
interests in Borrower, or the exercise of any such remedies by Approved Junior Mezzanine Lender. 
  
 “Impositions” means all taxes (including, without limitation, all real estate, ad valorem, sales (including those imposed on lease
rentals), use, single business, gross receipts, value added, intangible transaction privilege, privilege or license or similar taxes), assessments (including, without limitation, all assessments for public improvements or benefits, whether or not
commenced or completed within the term of the Loan), ground rents, water, sewer or other rents and charges, excises, levies, governmental fees (including, without limitation, license, permit, inspection, authorization and similar fees), and all
other governmental charges, in each case whether general or special, ordinary or extraordinary, foreseen or unforeseen, in respect of the Mortgaged Property (including all interest and penalties thereon), accruing during or in respect of the term
hereof and which may be assessed against or imposed on or in respect of or 

  

 12 

 
be a Lien upon (i) Borrower or First Mortgage Borrower (including, without limitation, all income, franchise, single business or other taxes imposed on First
Mortgage Borrower for the privilege of doing business in the jurisdiction in which the Mortgaged Property, or any other collateral delivered or pledged to Lender in connection with the Loan, is located) or Lender, (ii) the Mortgaged Property, or any
other collateral delivered or pledged to Lender in connection with the Loan, or any part thereof or any rents therefrom or any estate, right, title or interest therein, or (iii) any occupancy, operation, use or possession of, or sales from, or
activity conducted on, or in connection with the Mortgaged Property or the leasing or use of the Mortgaged Property or any part thereof, or the acquisition or financing of the acquisition of the Mortgaged Property by Borrower. 
  
 “Improvements” means all buildings, structures,
fixtures and improvements now or hereafter owned by Borrower of every nature whatsoever situated on any Land constituting part of the Mortgaged Property (including, without limitation, all gas and electric fixtures, radiators, heaters, engines and
machinery, boilers, ranges, elevators and motors, plumbing and heating fixtures, carpeting and other floor coverings, water heaters, awnings and storm sashes, and cleaning apparatus which are or shall be affixed to the Land or said buildings,
structures or improvements and including any additions, enlargements, extensions, modifications, repairs or replacements thereto). 
  
 “Indebtedness” means the Principal Indebtedness, together with all other obligations and liabilities due or to become due to
Lender pursuant hereto, under the Note or in accordance with any of the other Loan Documents, and all other amounts, sums and expenses paid by or payable to Lender hereunder or pursuant to the Note or any of the other Loan Documents. 
  
 “Indemnified Parties” has the meaning set forth in
Section 5.1(d). 
  
 “Independent”
means, when used with respect to any Person, a Person that (i) does not have any direct financial interest or any material indirect financial interest in Borrower or in any Affiliate of Borrower, and (ii) is not connected with Borrower or any
Affiliate of Borrower as an officer, employee, trustee, partner, director or person performing similar functions. 
  
 “Index Maturity” has the meaning set forth in the definition of LIBOR. 
  
 “Intercreditor Agreement” means the Intercreditor
Agreement, dated as of the applicable date, by and among the Lender, the First Mortgage Lender and, if applicable, the Junior Mezzanine Lender. 
  
 “Interest Accrual Period” means, in connection with the calculation of interest accrued with respect to any Payment Date, the
period commencing on and including the eleventh (11th) day in the month preceding the month in which such Payment Date occurs through and including the tenth (10th) day in the month in which such Payment Date occurs; provided, however,
that the first Interest Accrual Period for the Loan shall commence on the Closing Date. 
  
 “Interest Determination Date” means, in connection with the calculation of interest accrued for any Interest Accrual Period, the second Business Day preceding the fifteenth 

  

 13 

 
(15th) day of the month in which such Interest Accrual Period commences; provided, however, that the first Interest Determination Date for the
Loan shall be the second Business Day preceding the Closing Date. 
  
 “Interest Reserve Account” has the meaning given to such term in the First Mortgage Loan Agreement. 
  
 “Interested Parties” has the meaning set forth in Section 5.1(t). 
  
 “Junior Intercreditor Agreement” means the
Intercreditor Agreement, dated as of the applicable date, between the Lender and the Junior Mortgage Lender. 
  
 “Land” has the meaning given to such term in the First Mortgage. 
  
 “Leases” means all leases, subleases, lettings, occupancy agreements, tenancies and licenses by
Borrower as landlord of the Mortgaged Property or any part thereof now or hereafter entered into, and all amendments, extensions, renewals and guarantees thereof, and all security therefor. 
  
 “Leasing Budget” means First Mortgage Borrower’s
$109,000,000 budget of Leasing Commissions and TI Costs for the Renovation of the Mortgaged Property in the form approved by the Lender on the Closing Date, together with such amendments to such budget as may be approved by the Lender in accordance
with this Agreement. 
  
 “Leasing
Commissions” means leasing commissions incurred by First Mortgage Borrower in connection with leasing the Mortgaged Property or any portion thereof (including renewals of existing Leases). 
  
 “Leasing Guidelines” means, with respect to any
proposed Lease for less than 100,000 square feet, the guidelines that shall be deemed satisfied if such Lease conforms to the following: 
  
 (i) a term equal to five years or more; 
  
 (ii) Leasing Commissions and TI Costs equal to $63.50 per square foot or less; and 
  
 (iii) an Effective Net Rent equal to not less than $6.40 per
rentable square foot per year. 
  
 “Legal
Requirements” means all governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities (including, without limitation, Environmental Laws) affecting Borrower, First
Mortgage Borrower or the Mortgaged Property or any part thereof or the construction, use, alteration or operation thereof, or any part thereof (whether now or hereafter enacted and in force), and all permits, licenses and authorizations and
regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments, at any time in force affecting the Mortgaged Property or any part thereof (including, without limitation, any which 

  

 14 

 
may (i) require repairs, modifications or alterations in or to the Mortgaged Property or any part thereof, or (ii) in any way limit the use and enjoyment
thereof). 
  
 “Lender” has the meaning
provided in the first paragraph of this Agreement. 
  
 “LIBOR” means the rate per annum calculated as set forth below: 
  
 (i) On each Interest Determination Date, LIBOR will be determined on the basis of the offered rate for deposits of not less than U.S.
$1,000,000 for a period of one month (the “Index Maturity”), commencing on such Interest Determination Date, which appears on Dow Jones Market Service (formerly Telerate) Page 3750 as of 11:00 a.m., London time (or such other
page as may replace the Dow Jones Market Service (formerly Telerate) Page on that service for the purposes of displaying London interbank offered rates of major banks). If no such offered rate appears, LIBOR with respect to the relevant Interest
Accrual Period will be determined as described in (ii) below. 
  
 (ii) With respect to an Interest Determination Date on which no such offered rate appears on Dow Jones Market Service (formerly Telerate) Page 3750 as described in (i) above, LIBOR shall be the arithmetic mean,
expressed as a percentage, of the offered rates for deposits in U.S. dollars for the Index Maturity which appears on the Reuters Screen LIBO Page as of 11:00 a.m., London time, on such date. If, in turn, such rate is not displayed on the Reuters
Screen LIBO Page at such time, then LIBOR for such date will be obtained from the preceding Business Day for which the Reuters Screen LIBO Page displayed a rate for the Index Maturity. 
  
 (iii) If on any Interest Determination Date Lender is required but unable to determine LIBOR in the manner
provided in paragraphs (i) and (ii) above, LIBOR for the next Interest Accrual Period shall be determined from such financial reporting service as Lender shall reasonably determine and use with respect to its other loan facilities on which interest
is determined based on LIBOR. 
  
 All percentages resulting from any calculations
of LIBOR referred to in this Agreement will be carried out to five decimal places and all U.S. dollar amounts used in or resulting from such calculations will be rounded upwards to the nearest cent. 
  
 “Lien” means any mortgage, deed of trust, lien
(statutory or other), pledge, hypothecation, assignment, security interest, or any other encumbrance or charge on or affecting Borrower, First Mortgage Borrower or the Mortgaged Property or any portion thereof, or any interest therein (including,
without limitation, any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, the filing of any financing statement or similar instrument under the UCC or
comparable law of any other jurisdiction, domestic or foreign, and mechanic’s, materialmen’s and other similar liens and encumbrances). 
  
 “Loan” means the loan made by Lender to Borrower pursuant to the terms of this Agreement. 
  

 15 

 “Loan Amount” means an amount from time to time equal to the aggregate Advances
funded by the Lender pursuant to this Agreement in accordance with the procedure set forth in Article III; provided, that the maximum amount of Advances shall not exceed $125,000,000. 
  
 “Loan Documents” means this Agreement, the Note, the
Pledge Agreement, the Manager’s Consent, the Environmental Indemnity Agreement, the Guaranty of Non-Recourse Obligations, the Collection Account Agreement, the Collateral Assignment of Hedge, the Note Pledge Agreement, the Control Agreement and
all other agreements, instruments, certificates and documents delivered by or on behalf of Borrower or an Affiliate of Borrower to evidence or secure the Loan or otherwise in satisfaction of the requirements of this Agreement or the other documents
listed above as same may be amended or modified from time to time. 
  
 “Loan to Cost Test” means a test that shall be satisfied if the sum of (i) the outstanding First Mortgage Principal Indebtedness plus (ii) the outstanding Principal Indebtedness is less than 75% of Borrower’s
Basis in the Mortgaged Property. 
  
 “Loan to Value
Test” means a test, calculated commencing in the second year of the term of the Loan, and thereafter, that shall be satisfied if the sum of (i) the outstanding First Mortgage Principal Indebtedness plus (ii) the outstanding Principal
Indebtedness plus (iii) the outstanding principal amount of the Approved Junior Mezzanine Loan is less than 75% of the value of the Mortgaged Property as determined by the Lender. 
  
 “Losses” has the meaning set forth in Section 5.1(d) hereof. 
  
 “Major Decision” means any of the decisions set forth
on Schedule 1 hereto. 
  
 “Major General
Contractor” means any General Contractor that, together with its Affiliates, is party to one or more General Contracts which provide for total aggregate payments of $10,000,000 or more. 
  
 “Major Leases” means any Lease other than (i) a lease
for less than 100,000 square feet at the Mortgaged Property which conforms to the Leasing Guidelines or (ii) a Lease for less than 28,500 square feet at the Mortgaged Property (irrespective of whether such Lease referred to in this clause (ii)
satisfies the Leasing Guidelines). 
  
 “Major
Subcontract” means any subcontract for “HVAC”, electrical, structural, plumbing, flooring, drywall, windows or elevator-related work at the Mortgaged Property or any subcontract for another type of work which provides for
total payments of $250,000 or more. 
  
 “Major
Subcontractors” means any Person obligated to provide services to the Borrower under a Major Subcontract. 
  
 “Manager” means Thomas Development Partners, L.P., a California limited partnership. 
  

 16 

 “Manager’s Consent” means, with respect to the Mortgaged Property, the
Manager’s Consent Agreement, executed by the Manager, Borrower and Lender, dated as of the Closing Date. 
  
 “Material Adverse Effect” means a material adverse effect upon (i) the business operations, properties, assets or condition
(financial or otherwise) of Borrower or First Mortgage Borrower or the Mortgaged Property, (ii) the ability of Borrower or First Mortgage Borrower to perform, or of Lender to enforce, any of the Loan Documents or the First Mortgage Loan Documents,
respectively or (iii) the value of the Mortgaged Property. 
  
 “Maturity Date” means the earlier of (a) the Original Maturity Date (i.e. the Payment Date in July, 2006) or if Borrower exercises the Extension Option pursuant to Section 2.13, the First Extended Maturity
Date, the Second Extended Maturity Date or the Final Maturity Date, as applicable, (b) such earlier date on which the entire Loan is required to be paid in full, by acceleration or otherwise under this Agreement or any of the other Loan Documents.

  
 “Mezzanine Loan Account” has the
meaning provided in Section 2.12(a) hereof. 
  
 “Minimum CALSTRS Ownership Percentage” means 80%; provided, however, that in the event that Thomas Properties Group, LLC becomes a publicly-traded company, the Minimum CALSTRS Ownership Percentage shall be decreased
to 60%. 
  
 “Money” means all of
Borrower’s right, title and interest, whether now owned or hereafter acquired in, to and under (i) all “money” as defined in the UCC and (ii) all moneys, cash or other items of legal tender generated from the use or operation of the
Mortgaged Property. 
  
 “Monthly Project
Report” means the written report prepared on a monthly basis by the Construction Consultant, as such reports are described under Phases B and B1 of the Construction Consulting and Project Management proposal of the Construction
Consultant, dated as of June 3, 2004, attached here to as Schedule 3. The Monthly Project Report shall confirm that (i) all work has been performed substantially in accordance with the Renovation Plans (and no material changes have been made
to the Renovation Plans other than those changes consented to by Lender, (ii) all required building permits have been issued, (iii) except for permits and approvals previously delivered to Lender, all other permits and approvals required to have
been obtained by Borrower or Manager with respect to the Mortgaged Property on or before the date of each Advance, as required by applicable Legal Requirements, have been obtained and remain in full force and effect and (iv) the work is proceeding
in accordance with the Construction Timing and the Capital Budget and Leasing Budget. 
  
 “Mortgaged Property” means, at any time, the Land, the Improvements, the Personalty, the Leases and the Rents (as each such term is defined in the First Mortgage Loan Agreement), and all
rights, titles, interests and estates appurtenant thereto, encumbered by, and more particularly described in, the First Mortgage. 
  
 “Multiemployer Plan” means a multiemployer plan defined as such in Section 3(37) of ERISA to which contributions have been, or
were required to have been, made by Borrower or any ERISA Affiliate and which is covered by Title IV of ERISA. 
  

 17 

 “Net Present Value” means, with respect to a proposed new Lease, an amount equal
to the discounted present value as of the Lease commencement date of the net Rents over the term of the Lease (taking into account free Rent and contractual Rent steps), using a 10.00% per annum discount rate and monthly discounting, minus any
up-front Leasing Commissions and TI Costs incurred in connection with such new Lease. 
  
 “Net Proceeds” means either (x) the purchase price (at foreclosure or otherwise) actually received by Lender from a third party purchaser with respect to the Collateral, as a result of the
exercise by Lender of its rights, powers, privileges and other remedies after the occurrence of an Event of Default or (y) in the event that Lender (or its nominee) is the purchaser at foreclosure of the Collateral, the higher of (i) the amount of
Lender’s credit bid or (ii) such amount as shall be determined in accordance with applicable law, and in either case minus all reasonable third party, out of pocket costs and expenses (including, without limitation, all attorneys’ fees and
disbursements and any brokerage fees, if applicable) incurred by Lender (and its nominee, if applicable) in connection with the exercise of such remedies; provided, however, that such costs and expenses shall not be deducted to the
extent such amounts previously have been added to the Indebtedness in accordance with the terms of the Loan Documents or applicable law. 
  
 “Note” means the promissory note made by Borrower to Lender pursuant to this Agreement, as such note may be modified, amended,
supplemented or extended. 
  
 “Note Pledge
Agreement” means the Note Pledge Agreement, dated as of the date hereof, executed by Guarantor, Lender and First Mortgage Lender. 
  
 “OFAC” has the meaning set forth in Section 4.1(z) hereof. 
  
 “Officer’s Certificate” means a certificate delivered to Lender by Borrower which is signed by
an authorized officer of Borrower. 
  
 “Operating
Budget” means, with respect to any Fiscal Year, the operating budget for the Mortgaged Property reflecting First Mortgage Borrower’s projections of Gross Revenues and Property Expenses (as each such term is defined in the First
Mortgage Loan Agreement) for the Mortgaged Property for such Fiscal Year on an annual and monthly basis and submitted or caused to be submitted by Borrower to Lender in accordance with the provisions of this Agreement. 
  
 “Operating Expenses” means, for any period of
calculation, all expenditures incurred and required to be expensed under GAAP during such period in connection with the ownership, operating, maintenance, repair and/or leasing of the Mortgaged Property. Notwithstanding the foregoing, Operating
Expenses shall not include (a) Capital Improvement Costs, (b) any extraordinary items (unless Lender and Borrower approve of the inclusion of such items as Operating Expenses), (c) depreciation, amortization and other non-cash charges or (d) any
payments of principal or interest on the Indebtedness or otherwise payable to the holder of the Indebtedness. Operating Expenses shall be calculated on the accrual basis of accounting. 
  
 “Operating Revenues” means, for any period, all regular ongoing income during such period from the
operation of the Mortgaged Property that, in accordance with GAAP, is 

  

 18 

 
included in annual financial statements as operating income. Notwithstanding the foregoing, Operating Revenues shall not include (a) any Loss Proceeds (as
such term is defined in the First Mortgage Loan Agreement) (other than business interruption proceeds or Condemnation Proceeds (as such term is defined in the First Mortgage Loan Agreement) in connection with a temporary Taking (as such term is
defined in the First Mortgage Loan Agreement) and, in either case, only to the extent allocable to such period or other applicable reporting period), (b) any proceeds resulting from the sale, exchange, transfer, financing or refinancing of the
Mortgaged Property, (c) any Rent attributable to a Lease more than one month prior to the date on which the actual payment of Rent is required to be made thereunder, (d) any interest income from any source, or (e) any other extraordinary items as
reasonably determined by Lender. Operating Revenues shall be calculated on the accrual basis of accounting. 
  
 “Organizational Agreements” means the Certificate of Formation of Borrower, dated as of April 12, 2004, and the Limited Liability
Company Agreement of Borrower, dated as of April 12, 2004, in each case, as amended or restated from time to time. 
  
 “Original Maturity Date” means the Payment Date occurring in July, 2006. 
  
 “Origination Fee” means an amount equal to one
percent (1.00%) of each Advance, payable on each Advance Date. 
  
 “Other Borrowings” means, with respect to Borrower, without duplication (but not including the Indebtedness or any interest rate protection agreement entered into pursuant hereto) (i) all indebtedness of Borrower for
borrowed money, (ii) all indebtedness of Borrower evidenced by a note, bond, debenture or similar instrument, (iii) the face amount of all letters of credit issued for the account of Borrower and, without duplication, all unreimbursed amounts drawn
thereunder, and obligations evidenced by bankers’ acceptances, (iv) all indebtedness of Borrower secured by a Lien on any property owned by Borrower (whether or not such indebtedness has been assumed), (v) all Contingent Obligations of
Borrower, (vi) liabilities and obligations for the payment of money relating to a capitalized lease obligation or sale/leaseback obligation, (vii) liabilities and obligations representing the balance deferred and unpaid of the purchase price of any
property or services, except those incurred in the ordinary course of business that would constitute ordinarily a trade payable to trade creditors, and (viii) all payment obligations of Borrower under any interest rate protection agreement
(including, without limitation, any interest rate swaps, caps, floors, collars or similar agreements) and similar agreements. 
  
 “Other Property Expenses Account” has the meaning given to such term in the First Mortgage Loan Agreement. 
  
 “Payment Date” has the meaning set forth in
Section 2.5(a) hereof. 
  
 “PBGC”
means the Pension Benefit Guaranty Corporation established under ERISA, or any successor thereto. 
  
 “Permitted Encumbrances” has the meaning given to such term in the First Mortgage Loan Agreement. 
  

 19 

 “Permitted Intercreditor Transfer” means (x) the encumbrance, pledging, and
hypothecation of and granting of a security interest in the ownership interests (including, but not limited to, equity, voting and/or beneficial ownership interests) in Borrower to the Junior Mezzanine Lender in connection with the Junior Mezzanine
Loan or (y) any conveyance, assignment, sale or other disposition (directly or indirectly) of such ownership interests in Borrower effectuated in connection with a foreclosure on such pledge and hypothecation referred to in clause (x) (or sale in
lieu thereof) or other exercise of remedies by Junior Mezzanine Lender carried out pursuant to and in accordance with the Junior Intercreditor Agreement and any subsequent conveyance, assignment, sale or other disposition (directly or indirectly) of
such ownership interests in Borrower which conforms to the requirements of the Junior Intercreditor Agreement. 
  
 “Permitted Investments” means any one or more of the following obligations or securities acquired at a purchase price of not
greater than par: 
  
 (i) obligations of, or
obligations fully guaranteed as to payment of principal and interest by, the United States or any agency or instrumentality thereof provided such obligations are backed by the full faith and credit of the United States of America; 
  
 (ii) obligations of the following United States of America
government sponsored agencies: Federal Home Loan Mortgage Corp. (debt obligations), the Farm Credit System (consolidated systemwide bonds and notes), the Federal Home Loan Banks (consolidated debt obligations), the Federal National Mortgage
Association (debt obligations), the Financing Corp. (debt obligations), and the Resolution Funding Corp. (debt obligations); 
  
 (iii) federal funds, unsecured certificates of deposit, time deposits, bankers’ acceptances and repurchase agreements with maturities
of not more than 365 days of any bank, the short-term obligations of which are rated in the highest short-term rating category by the Rating Agencies; 
  
 (iv) unsecured certificates of deposit, time deposits, federal funds or banker’s acceptances issued by any depository institution or
trust company incorporated under the laws of the United States or of any state thereof and subject to supervision and examination by federal and/or state banking authorities, which investments are fully insured by the Federal Deposit Insurance
Corp.; 
  
 (v) debt obligations with maturities
of not more than 365 days and rated by the Rating Agencies in its highest long-term unsecured rating category; 
  
 (vi) commercial paper (including both non-interest-bearing discount obligations and interest-bearing obligations payable on demand or on a
specified date not more than one year after the date of issuance thereof) with maturities of not more than 270 days and that is rated by the Rating Agencies in their highest short-term unsecured debt rating; 
  
 (vii) (the Federated Prime Obligation Money Market Fund (the
“Fund”) so long as the Fund is rated “AAAm” or “AAAm-G” (or the equivalent) by the Rating Agencies; 
  

 20 

 (viii) any other demand, money market or time deposit, demand obligation or any other
obligation, security or investment, which Lender shall have approved in writing and for which, if the Loan has been included in a Secondary Market Transaction in which Securities are issued, Borrower shall have delivered a Rating Confirmation;

  
 provided, however, that (A) the investments described in clauses
(i) through (viii) above must have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a
fixed spread (if any) and must move proportionately with that index, and (C) such investments must not be subject to liquidation prior to their maturity or have an “r” highlighter affixed to its rating; and provided, further,
that, in the judgment of Lender, such instrument continues to qualify as a “cash flow investment” pursuant to Code Section 860G(a)(6) earning a passive return in the nature of interest and that no instrument or security shall be a
Permitted Investment if such instrument or security evidences (x) a right to receive only interest payments or (y) the right to receive principal and interest payments derived from an underlying investment at a yield to maturity in excess of 120% of
the yield to maturity at par of such underlying investment. 
  
 “Permitted Transfer” means (a) any Permitted Intercreditor Transfer or (b) any conveyance, assignment or sale or other disposition (and not a mortgaging, encumbrance, pledging, hypothecation, or granting of a
security interest)(directly or indirectly) of the voting and beneficial ownership interests in Borrower or the Approved Junior Mezzanine Borrower following which (1) CALSTRS owns (directly or indirectly) the Minimum CALSTRS Ownership Percentage or
more of such voting and beneficial ownership interests in Borrower and (2) Thomas Properties Group, LLC controls the operations and management of Borrower; provided, that any such Transfer referred to above which takes the form of a Transfer
of the equity ownership interests in Borrower or the Approved Junior Mezzanine Borrower to a transferee which (collectively amongst itself and its Affiliates that own such equity ownership interests) acquires (directly or indirectly) a greater than
49% ownership interest in Borrower or the Approved Junior Mezzanine Borrower, or which acquires control over the operations and management of Borrower or the Approved Junior Mezzanine Borrower, shall not be permitted unless Borrower delivers to the
Lender (1) a substantive non-consolidation opinion in form and substance acceptable to the Lender and the Rating Agencies, and (2) if the Loan has been included in a Secondary Market Transaction in which Securities are issued, a Rating Confirmation.
Notwithstanding anything herein to the contrary, after the consummation of an Approved Junior Mezzanine Loan, a Transfer of the equity ownership interest of the Approved Junior Mezzanine Borrower in Borrower shall not be a Permitted Transfer.

  
 “Person” means any individual,
corporation, limited liability company, partnership, joint venture, estate, trust, unincorporated association, any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such capacity
on behalf of any of the foregoing. 
  
 “Plan” means an employee benefit or other plan, other than a Multiemployer Plan, that is covered by Title IV of ERISA or Section 302 of ERISA or Section 412 of the Code, and (i) was established or maintained by
Borrower or any ERISA Affiliate during the five year period ended prior to the date of this Agreement or to which Borrower or any ERISA Affiliate 

  

 21 

 
makes, is obligated to make or has, within the five year period ended prior to the date of this Agreement, been required to make contributions or (ii) with
respect to which Borrower could reasonably be expected to incur liability. 
  
 “Pledge Agreement” means the Pledge Agreement from Borrower to Lender, dated as of the Closing Date, as same may thereafter from time to time be supplemented, amended, modified or extended by
one or more agreements supplemental thereto. 
  
 “Preliminary Construction Opinion Letter” has the meaning set forth in Section 3.1(v). 
  
 “Principal Indebtedness” means the principal amount of the Loan outstanding as adjusted by each increase (including for advances
made by Lender to protect the Collateral), or decrease in such principal amount of the Loan outstanding, whether as a result of prepayment or otherwise, from time to time. 
  
 “Proceeds” shall have the meaning given in the UCC and, in any event, shall include, without
limitation, all of Borrower’s right, title and interest in and to proceeds, product, offspring, rents, profits or receipts, in whatever form, arising from the Collateral. 
  
 “Prohibited Person” has the meaning provided in Section 4.1(z). 
  
 “Qualified Interest Rate Cap Provider” means an
interest rate cap counterparty either (x) whose long-term debt obligations are rated by the Rating Agencies not lower than “AAA” (or the equivalent), or (y) whose long-term debt obligations are rated by the Rating Agencies not lower than
“AA-” (or the equivalent) and whose short-term debt obligations are rated by the Rating Agencies not lower than “A-1+” (or the equivalent). 
  

“Quarterly Statement” has the meaning provided in Section 2.12(d). 
  
 “Rating Agencies” means at least two of Fitch, Inc.,
Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services (or, if a Secondary Market Transaction has occurred in which Securities have been issued, each of the foregoing that rated such Securities). 
  
 “Rating Confirmation” means the written confirmation
of the Rating Agencies that a proposed action shall not, in and of itself, result in the downgrading, withdrawal or qualification of the then-current ratings assigned to any of the Securities issued in connection with a Secondary Market Transaction.

  
 “Related Party” means any direct or
indirect partner, member, shareholder, principal, Affiliate, employee, officer, director, agent or representative of Borrower. 
  
 “Release” means any active or passive release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge,
dispersal, leaching or migration into the indoor or outdoor environment (including, without limitation, the movement of Hazardous Substances through ambient air, soil, surface water, ground water, wetlands, land or subsurface strata). 
  

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 “Renovation” means the general upgrade of the Mortgaged Property, the upgrades of
the plaza level at the Mortgaged Property (including level A-lobby and level B-retail), the conversion of plaza level C at the Mortgaged Property to parking and the build-out of the sixth floor office space at the Mortgaged Property, as described in
the Capital Budget and the Leasing Budget. 
  
 “Renovation Plans” means the final plans and specifications for Renovation of the Mortgaged Property, including all supporting engineering calculations and documents, as approved by Lender, and all amendments thereto
approved in accordance with this Agreement. 
  
 “Rents” means all income, rents, issues, profits, revenues (including all oil and gas or other mineral royalties and bonuses), deposits (other than utility and security deposits) and other benefits from the Mortgaged
Property. 
  
 “Repositioning Costs Reserve
Account” has the meaning given to such term Section 2.12(b). 
  
 “Second Extended Maturity Date” has the meaning set forth in Section 2.13(a). 
  
 “Secondary Market Transaction” has the meaning set forth in Section 5.1(t). 
  
 “Securities” means mortgage pass-through certificates
or other securities issued in a Secondary Market Transaction and evidencing a beneficial interest in or secured in whole or in part by the Loan in a rated or unrated public offering or private placement. 
  
 “Seismic Study” means a study of the degree of
seismic activity in the area in which the Mortgaged Property is located (including the probable maximum loss in the event an earthquake were to occur) prepared by an Engineer and delivered to Lender in connection with the Loan and any amendments or
supplements thereto delivered to Lender. 
  
 “Single-Purpose Entity” means a Person, other than an individual, which (i) is formed or organized under the laws of a state of the United States or the District of Columbia solely for the purpose of acquiring and
directly holding an ownership interest in the limited liability company which owns the Mortgaged Property, (ii) does not engage in any business unrelated to the Mortgaged Property, (iii) does not have any assets other than those related to its
limited liability company interest in the limited liability company which owns the Mortgaged Property or any indebtedness other than as permitted by this Agreement or the other Loan Documents, (iv) has its own separate books and records and has its
own accounts and operations, in each case which are separate and apart from the books, records, accounts and operations of any Affiliate or other Person, (v) holds itself out as being a Person separate and apart from any other Person, (vi) is
subject to all of the limitations on powers set forth in the Organizational Agreements of Borrower and the organizational documentation of First Mortgage Borrower as of the Closing Date and (vii) provides for the inclusion of at least one
“independent director” or “independent manager” (as such term is defined in the Organizational Agreements of Borrower). 
  
 “Standstill Period” shall mean the period of time commencing with the occurrence of an Event of Default, and ending on the
ninetieth (90th) calendar day thereafter. 
  

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 “Survey” means a certified ALTA/ACSM survey of the Mortgaged Property prepared by
a registered Independent surveyor. 
  
 “Task
Order” shall mean a Task Order in the form attached hereto as Schedule 4, executed by First Mortgage Borrower and the Task Order Third Party. 
  
 “Task Order Third Party” shall mean, with respect to a Task Order, the contractor or consultant that
is a party to the Task Order. 
  
 “Task Order Threshold
Condition” shall mean that the making of an Advance satisfies the following two conditions: (a) the amount of such Advance allocable to Capital Improvements Costs and/or TI Costs incurred pursuant to Task Orders does not exceed
$100,000; and (b) the amount of such Advance, together with all prior Advances, allocable to Capital Improvements Costs and/or TI Costs incurred pursuant to Task Orders for which Lender has not received subsequent invoices and evidence of payment
thereof does not exceed $250,000. 
  
 “TCO” means a temporary certificate of occupancy with respect to the Mortgaged Property. 
  
 “TI Costs” means tenant improvement costs and allowances incurred by First Mortgage Borrower in connection with renewing existing
Leases or executing new Leases for space located in the Mortgaged Property. 
  
 “Title Insurance Policy” means a mortgagee’s title insurance policy or policies (a) issued by one or more title companies reasonably satisfactory to Lender which policy or policies shall
be on ALTA Form 1992 (with waiver of arbitration provisions), (b) showing First Mortgage Borrower as holding good and marketable fee simple absolute title to the Mortgaged Property with no encumbrances against the Mortgaged Property which are not
acceptable to the Lender, and (c) otherwise in form and content reasonably acceptable to Lender. 
  
 “TPG/CALSTRS” means TPG/CALSTRS, LLC, a Delaware limited liability company. 
  
 “Transaction” means the transaction contemplated by
the Loan Documents. 
  
 “Transaction
Costs” means all costs and expenses paid or payable by Borrower relating to the Transaction (including, without limitation, appraisal fees, legal fees and accounting fees and the costs and expenses described in Section 8.23).

  
 “Transfer” means the conveyance,
assignment, sale, mortgaging, encumbrance, pledging, hypothecation, granting of a security interest in, granting of options with respect to, or other disposition of (directly or indirectly, voluntarily or involuntarily, by operation of law or
otherwise, and whether or not for consideration or of record) all or any portion of any legal or beneficial interest (a) in all or any portion of the Mortgaged Property; or (b) in the stock, partnership interests, membership interests or other
ownership interests in First Mortgage Borrower or Borrower and shall also include, without limitation to the foregoing, the following: an installment sales agreement wherein Borrower agrees to sell the Mortgaged Property or any 

  

 24 

 
part thereof or any interest therein for a price to be paid in installments; an agreement by Borrower leasing all or a substantial part of the Mortgaged
Property to one or more Persons pursuant to a single or related transactions, or a sale, assignment or other transfer of, or the grant of a security interest in, Borrower’s right, title and interest in and to any Leases or any Rent; and any
instrument subjecting the Mortgaged Property to a condominium regime or transferring ownership to a cooperative corporation. 
  
 “UCC” means with respect to any Collateral, the Uniform Commercial Code as in effect from time to time in the State of New York;
provided, that if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection or priority of the security interest in any item or portion of the Collateral is governed by the Uniform Commercial Code
as in effect in a jurisdiction other than the State of New York, “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection
or non-perfection or priority. Wherever this agreement refers to terms as defined in the UCC, if such term is defined in more than one Article of the UCC, the definition in Article 9 of the UCC shall control. 
  
 “UCC Searches” has the meaning set forth in
Section 3.1(n) hereof. 
  
 “Welfare
Plan” means an employee welfare benefit plan as defined in Section 3(1) of ERISA established or maintained by Borrower or any ERISA Affiliate or that covers any current or former employee of Borrower or any ERISA Affiliate. 

 
 ARTICLE II 
 GENERAL TERMS 
  
 Section 2.1. The Loan. 
  
 (a) Subject to the terms and conditions of this Agreement, on each Advance Date, the Lender shall lend to Borrower an Advance on account of the Loan Amount. The proceeds of the Loan shall be used solely for the purposes identified in
Section 2.2 hereof. On each Advance Date, upon the satisfaction of the applicable conditions set forth in Article III, the Lender shall wire transfer in immediately available funds to the Repositioning Costs Reserve Account the portion
of such Advance which is to be applied to pay Capital Improvement Costs, Leasing Commissions and TI Costs and to the Interest Reserve Account the portion of such Advance which is to be applied to pay interest on the First Mortgage Loan and shall be
deemed to have made an Advance in the amount necessary to pay interest on the Loan, in each case, less the related Origination Fee. Borrower shall not be permitted to borrow, repay and reborrow under this Agreement. Borrower may not receive:

  
 (i) more than one Advance during any calendar
month to be applied to Capital Improvement Costs, Leasing Commissions and TI Costs; 
  
 (ii) an Advance in an amount less than $1,000,000 (except to make interest payments on the Loan and the First Mortgage Loan); 

 

 25 

 (iii) an Advance which would cause the Loan to Cost Test not to be satisfied or,
commencing in the second year of the Loan term and thereafter, the Loan to Value Test not to be satisfied; 
  
 (iv) any Advance on account of any Lease which has not been executed; 
  
 (v) an Advance if a Default or an Event of Default has occurred and is continuing; or 
  
 (vi) an Advance to pay interest on the First Mortgage Loan
or the Loan, if any funds are on deposit in the Interest Reserve Account. 
  
 (b) The Loan shall constitute one general obligation of Borrower to Lender and shall be secured by the security interest in and Liens granted upon all of the Collateral, and by all other security interests and Liens
at any time or times hereafter granted by Borrower to Lender as security for the Loan. 
  
 Section 2.2. Use of Proceeds. Proceeds of the Loan shall be used only for the following purposes: (a) to finance a portion of the Renovation of the Mortgaged Property and Leasing Commissions and TI Costs
related thereto and, to the extent necessary, to make interest payments on the Loan and the First Mortgage Loan and (b) to pay the reasonable out of pocket expenses incurred by Lender in connection with the Loan. 
  
 Section 2.3. Security for the Loan. The Note and Borrower’s
obligations hereunder and under all other Loan Documents shall be secured by (a) Liens upon the Collateral pursuant to the Pledge Agreement and (b) all other security interests and Liens granted in this Agreement and in the other Loan Documents.

  
 Section 2.4. Borrower’s Note. Borrower’s
obligation to pay the principal of and interest on the Loan and all other amounts due under the Loan Documents shall be evidenced initially by the Note, duly executed and delivered by Borrower and registered in the name of Lender on the Closing
Date. The Note shall be payable as to principal, interest and all other amounts due under the Loan Documents, as specified in this Agreement, with a final maturity on the Maturity Date. Lender shall have the right to have the Note subdivided, by
exchange for promissory notes of lesser denominations in the form of the initial Note, upon written request to Borrower and, in such event, Borrower shall promptly execute additional or replacement Notes. At no time shall the aggregate original
principal amount of the Note (or of such replacement Notes) exceed the Loan Amount. 
  
 Section 2.5. Principal and Interest; Exit Fee. 
  
 (a) Borrower shall pay to Lender interest on the Principal Indebtedness of the Loan from the Closing Date through the end of the Interest Accrual Period following or during which the Loan is paid in full at the
interest rate provided below in this Section 2.5. Interest on the Loan shall accrue on the Principal Indebtedness commencing on the Closing Date and shall be payable in arrears on the eleventh (11th) day of the month following the month in
which the Closing Date occurs and on the eleventh (11th) day of each and every month thereafter until such time as the Loan shall be repaid in full, unless, in any such case, such day is not a Business Day, 

  

 26 

 
in which event such interest shall be payable on the first Business Day following such date (such date for any particular month, the “Payment
Date”). Lender or its designee shall calculate LIBOR on each Interest Determination Date for the related Interest Accrual Period and notify Borrower of such rate for such period and the amount of interest due and payable on the related
Payment Date. The entire outstanding Principal Indebtedness of the Loan and the Note, together with all accrued but unpaid interest thereon and all other amounts due under the Loan Documents (including, without limitation, the Exit Fee), shall be
due and payable by Borrower to Lender on the Maturity Date. Interest shall be computed on the basis of a 360 day year and the actual number of days elapsed. 
  
 (b) For each Interest Accrual Period, the Principal Indebtedness shall bear interest at a rate per annum equal to the sum of (x) LIBOR determined as of
the Interest Determination Date for such Interest Accrual Period plus (y) 4.50%. 
  
 (c) While an Event of Default has occurred and is continuing, Borrower shall pay to Lender interest at the Default Rate on any amount owing to Lender not paid when due until such amount is paid in full. 
  
 (d) On the Payment Date on which Borrower pays the outstanding Principal
Indebtedness in whole, Borrower shall pay to the Lender the Exit Fee. 
  
 Section 2.6. Voluntary Prepayment. 
  
 (a)
Borrower may not voluntarily prepay the Loan through and including the July, 2006 Payment Date. Thereafter, Borrower may voluntarily prepay the Loan in whole or in part on any Payment Date; provided, however, that, any such prepayment
shall be accompanied by an amount representing all accrued interest on the portion of the Loan being prepaid and other amounts then due under the Loan Documents (including, without limitation, the Exit Fee). 
  
 (b) In the event of any such voluntary prepayment, Borrower shall give Lender
written notice (or telephonic notice promptly confirmed in writing) of its intent to prepay, which notice shall be given at least thirty (30) days’ prior to the date upon which prepayment is to be made and shall specify the Payment Date on
which such prepayment is to be made and the amount of such prepayment (which shall not be less than $100,000). If any such notice is given, the amount specified in such notice shall be due and payable on the date specified therein (unless such
notice is revoked by Borrower prior to the date specified therein in which event Borrower shall immediately reimburse Lender for any costs incurred in connection with the giving of such notice and its revocation). 
  
 Section 2.7. No Sale/Encumbrance; Mandatory Prepayment. 
  
 (a) Borrower shall not permit First Mortgage Borrower to effect a Transfer of
the Mortgaged Property prior to the last Business Day of the Collection Period with respect to the July, 2006 Payment Date. Thereafter, Borrower may permit First Mortgage Borrower to effect a Transfer of the Mortgaged Property on any Business Day on
the condition that with respect to any Transfer of the Mortgaged Property the net sale proceeds (in excess of amounts required to repay the First Mortgage Loan in full) (and, if necessary, any contributions from the principals of Borrower necessary
to make the payments required hereunder) are deposited in the 

  

 27 

 
Mezzanine Loan Account and applied on the date of deposit in the Mezzanine Loan Account to repay the Indebtedness in full (including (1) all accrued interest
on the Principal Indebtedness through the end of the Interest Accrual Period during which such deposit occurs, (2) the Exit Fee and (3) other amounts then due under the Loan Documents). 
  
 (b) Borrower shall not, without the prior written consent of Lender, which consent may be withheld in Lender’s sole
discretion, (x) consummate a Transfer or permit a Transfer to occur with respect to an ownership interest in First Mortgage Borrower or (y) other than in the case of a Permitted Transfer, consummate a Transfer or permit a Transfer to occur with
respect to an ownership interest in Borrower. 
  
 (c) Upon payment
or prepayment of the Loan in full, Borrower shall pay to Lender, in addition to the amounts specified in Section 2.6, Section 2.7 and Section 2.12, as applicable, all other amounts then due and payable to Lender pursuant to the
Loan Documents. 
  
 Section 2.8. Application of Payments After
Event of Default. All proceeds on deposit in the Mezzanine Loan Account and the Repositioning Costs Reserve Account or relating to any repayments of the Loan after an Event of Default shall have occurred and be continuing shall be applied by
Lender, in Lender’s sole discretion, to amounts then outstanding under this Agreement (including, without limitation, any out-of-pocket costs and expenses of Lender reimbursable pursuant to the terms of this Agreement or the other Loan
Documents arising as a result of such repayment, any accrued and unpaid interest then payable with respect to the Loan or the portion thereof being repaid, the Exit Fee, the outstanding Principal Indebtedness or the portion thereof being repaid and
any other sums then payable to or for the benefit of Lender pursuant to this Agreement or any other Loan Document(s)). 
  
 Section 2.9. Method and Place of Payment. Except as otherwise specifically provided herein, all payments and prepayments under this Agreement and
the Note shall be made to Lender not later than 2:00 p.m., New York City time, on the date when due and shall be made in lawful money of the United States of America by wire transfer in federal or other immediately available funds to any account
designated by Lender in writing, which account initially shall be at JPMorgan Chase Bank, New York, New York (ABA No. 021-000-021, Account No. 066-612-187, Reference: Arco Plaza). Any funds received by Lender after such time shall, for all purposes
hereof, be deemed to have been paid on the next succeeding Business Day. All payments made by Borrower hereunder, or by Borrower under the other Loan Documents, shall be made irrespective of, and without any deduction for, any set-offs or
counterclaims. 
  
 Section 2.10. Taxes. All payments made
by Borrower under the Note and this Agreement to or for the benefit of Lender shall be made free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties,
charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority (other than taxes imposed on the income of Lender). 
  

 28 

 Section 2.11. Release of Collateral. 
  
 (a) Upon repayment of the Loan and all other amounts due hereunder and under the Loan Documents in full in accordance with
the terms hereof and thereof, Lender shall, with reasonable promptness after such payment, release or cause to be released all Liens with respect to all Collateral. 
  
 (b) In the event Borrower satisfies the outstanding Indebtedness in full (whether in connection with a Transfer of the
Mortgaged Property or otherwise), Lender shall withdraw and release to Borrower on the date on which the outstanding Indebtedness is repaid in full any and all amounts then on deposit in the Mezzanine Loan Account and the Repositioning Costs Reserve
Account . 
  
 Section 2.12. Central Cash Management.

  
 (a) Mezzanine Loan Account. On or before the Closing
Date, Borrower shall establish and maintain with the Bank a mezzanine loan account (the “Mezzanine Loan Account”), which shall be an Eligible Account with a separate and unique identification number and entitled
“Citigroup Global Markets Realty Corp. as Agent, as secured party from 515/555 Flower Mezzanine Associates, LLC, pursuant to a Loan Agreement, dated as of July 15, 2004, between 515/555 Flower Mezzanine Associates, LLC, and Citigroup Global
Markets Realty Corp.” and execute and deliver the Collection Account Agreement. Borrower shall not have any right to withdraw Money from the Mezzanine Loan Account, which shall be under the sole dominion and control, and the “control”
within the meaning of Sections 9-104 and 9-106 of the UCC, of the Lender. So long as an Event of Default has not occurred and is not continuing, the funds on deposit in the Mezzanine Loan Account on each Payment Date shall be applied on such Payment
Date by Lender, as follows: 
  
 first, to
the payment to the Lender of (i) the interest then due and payable on the Note with respect to the related Interest Accrual Period, (ii) the Exit Fee and the Extension Fee, if any, then due and payable and (iii) the Principal Indebtedness in an
amount equal to any amount to which the Lender is then entitled pursuant to Section 2.7(a) of this Agreement; and 
  
 second, to the Construction Consultant of its fees and expenses for which bills have been submitted, and to Lender for any fees
incurred by Lender in connection with amendments or endorsements to Lender’s Eagle 9 insurance policy. 
  
 (b) Repositioning Costs Reserve Account. On or before the Closing Date, Borrower shall establish and maintain with the Bank, for the benefit of
Lender until the Loan is paid in full, an account for the Capital Improvement Costs, Leasing Commissions and TI Costs to be incurred by First Mortgage Borrower in connection with the Renovation (the “Repositioning Costs Reserve
Account”). The Repositioning Costs Reserve Account shall be an Eligible Account, shall have a separate and unique identification number and shall have the same title as the Mezzanine Loan Account. Upon Borrower’s withdrawal of any
funds from the Repositioning Costs Reserve Account, Borrower shall contribute the same to First Mortgage Borrower and shall cause First Mortgage Borrower to use such funds in accordance with the Loan Documents and the First Mortgage Loan Documents.
Borrower’s right to withdraw funds 

  

 29 

 
from the Repositioning Costs Reserve Account shall be subject to and conditioned upon satisfaction of the following: (i) no Default or Event of Default shall
have occurred and be continuing; and (ii) the Bank and Lender shall have received the following: (A) a written request by Borrower for a withdrawal of funds from the Repositioning Costs Reserve Account, which notice shall set forth the amount of
funds requested by Borrower to be withdrawn; (B) a certification executed by Borrower in which Borrower certifies that such requested funds are needed by First Mortgage Borrower to pay for Capital Improvement Costs, Leasing Commissions and/or TI
Costs in connection with the Renovation that have already been incurred by First Mortgage Borrower, or that will be incurred by First Mortgage Borrower within five (5) Business Days following the delivery of such certificate, and (C) a certification
by Borrower that all prior funds that have been withdrawn by Borrower from the Repositioning Costs Reserve Account (other than those funds withdrawn within five (5) Business Days prior to the delivery of the subject request) have been used by First
Mortgage Borrower for the payment of Capital Improvement Costs, Leasing Commissions and/or TI Costs in connection with the Renovation. With respect to funds to be withdrawn from the Repositioning Costs Reserve Account by Borrower within five (5)
Business Days after the date that an Advance is deposited into the Repositioning Costs Reserve Account, the requirements of clauses (A) through (C) may be set forth in the request for Advance itself. The Bank shall disburse funds to Borrower on the
next Business Day following the satisfaction of the foregoing requirements in an amount equal to the amount requested by Borrower; provided, however, that in the event that clause (C) above is not satisfied, then the amount of the
disbursement shall be equal to the amount requested by Borrower, less the amount of prior funds that have been withdrawn by Borrower from the Repositioning Costs Reserve Account (other than those funds withdrawn within five (5) Business Days prior
to the delivery of the subject request), and that have not been used by First Mortgage Borrower for the payment of Capital Improvement Costs, Leasing Commissions or TI Costs in connection with the Renovation. 
  
 (c) Permitted Investments. Lender or its designee shall invest and
reinvest any balance in the Mezzanine Loan Account and the Repositioning Costs Reserve Account, from time to time in Permitted Investments; provided, however, that 
  
 (i) the maturity of the Permitted Investments on deposit therein shall be no later than the Business Day
immediately preceding the date on which such funds are required to be withdrawn therefrom pursuant to this Agreement, and 
  
 (ii) all such Permitted Investments shall be held in the name of Lender. 
  
 Lender shall have no liability for any loss in investments of funds in the Mezzanine Loan Account or the Repositioning Costs Reserve Account
that are invested in Permitted Investments. All interest paid or other earnings on the Permitted Investments of funds deposited into the Mezzanine Loan Account and the Repositioning Costs Reserve Account made hereunder shall be deposited into the
Mezzanine Loan Account and the Repositioning Costs Reserve Account, as applicable. Borrower shall include all earnings on the Mezzanine Loan Account and the Repositioning Costs Reserve Account as income of Borrower for federal and applicable state
tax purposes. 
  

 30 

 (d) Quarterly Statements. No later than thirty (30) days following the end of each of the months
of December, March, June, and September, beginning with the month ending at June 30, 2004, Borrower shall prepare and deliver to the Lender a statement (each, a “Quarterly Statement”) in hard copy and on diskette and/or a
copy through electronic mail, in form and substance reasonably satisfactory to Lender, setting forth with respect to the Mortgaged Property: 
  
 (i) a cash flow report (on a cash basis) detailing the Operating Revenues and the Operating Expenses, in each case on a trailing twelve
month basis, 
  
 (ii) a rent roll dated as of the
last day of such quarter identifying each of the Leases by the term, renewal options (including rental base), suite number, rentable square feet, rental and other charges required to be paid, security deposit paid, real estate taxes paid by tenants,
common area charges paid by tenants, tenant pass-throughs, any rental concessions or special provisions or inducements, tenant sales (if the tenant is required to report sales to Borrower), rent delinquencies, rent escalations (which may be
contained in a document separate from the rent roll), amounts taken in settlement of outstanding arrears, collections of rent for more than one (1) month in advance, “non-competition” provisions (restricting Borrower or any tenant), any
defaults thereunder and any other information reasonably required by Lender; 
  
 (iii) a management report (including leasing updates and leasing prospects and Renovation progress) and an actual vacancy level for the Mortgaged Property (expressing the level as a percentage) for the most recent
date available, 
  
 (iv) year-to-date operating
statements and capital expense reports prepared for each calendar month during each such quarter, each of which shall include an itemization of actual (not pro forma) operating expenses and capital expenditures during the applicable period; and

  
 (v) a comparison of the budgeted income and
expenses with the actual income and expenses for such month and year to date, together with a detailed explanation of any variances between budgeted and actual amounts that are in excess of the greater of: (1) $10,000, or (2) ten percent (10%) or
more for each line item therein. 
  
 Section 2.13. Extension
Option. 
  
 (a) Borrower shall have the option (each, an
“Extension Option”), to extend the Maturity Date of the Note from the Payment Date in July, 2006 (the “Original Maturity Date”), to the Payment Date in July, 2007 (the “First Extended
Maturity Date”), from the First Extended Maturity Date to the Payment Date in July, 2008 (the “Second Extended Maturity Date”) and from the Second Extended Maturity Date to the Payment Date in July, 2009 (the
“Final Maturity Date”), upon satisfaction of each of the following conditions (the “Extension Conditions”): 
  
 (i) Borrower shall have given written notice (each, an “Extension Notice”) to the Lender not less than sixty (60)
days prior to the Original Maturity Date, the First 

  

 31 

 
Extended Maturity Date or the Second Extended Maturity Date, as applicable, of its election to exercise the first, the second or the third Extension Option,
as the case may be; 
  
 (ii) no Default or Event
of Default shall have occurred and be continuing on the Original Maturity Date, the First Extended Maturity Date or the Second Extended Maturity Date, as applicable; 
  
 (iii) Borrower shall have paid to Lender on the First Extended Maturity Date a fee in connection with an
extension to the Second Extended Maturity Date equal to the product of 0.125% and the Principal Indebtedness as of the First Extended Maturity Date and on the Second Extended Maturity Date a fee in connection with an extension to the Final Extended
Maturity Date equal to the product of 0.125% and the Principal Indebtedness as of the Second Extended Maturity Date, (in each case, taking into account any principal payments made on such date) (each such fee, an “Extension
Fee”) (i.e. no Extension Fee shall be due and payable on the Original Maturity Date in connection with an extension to the First Extended Maturity Date); 
  
 (iv) Borrower shall have purchased an interest rate cap for the term of the extension (or renewed the
existing interest rate cap for such period) in each case from or with a Qualified Interest Rate Cap Counterparty, with a notional amount equal to the outstanding Principal Indebtedness and a strike rate equal to 5.00% and pursuant to documentation
acceptable to the Lender and delivered to the Lender a fully executed Collateral Assignment of Hedge; and 
  
 (v) with respect to the third Extension Option only, Borrower shall be in compliance with the Loan to Value Test. 
  
 (b) In the event Borrower has timely given the Extension Notice for the third
Extension Option to the Lender, the Lender shall be required to notify Borrower by not later than the Payment Date prior to the Second Extended Maturity Date, of Borrower’s compliance or non-compliance with the Loan to Value Test. Borrower may
make a voluntary prepayment of the Loan on the Second Extended Maturity Date, in order to be in compliance with the Loan to Value Test on such date (including from equity capital contributions from its principals). 
  
 (c) Borrower may revoke any Extension Notice by written notice (or telephonic
notice promptly confirmed in writing) to the Lender on or prior to the tenth (10th) Business Day prior to the Original Maturity Date, the First Extended Maturity Date or the Second Extended Maturity Date, as applicable; provided,
however, that Borrower shall pay the reasonable out-of-pocket costs incurred by the Lender in connection with the giving of any Extension Notice and its revocation. If the term of the Loan is extended pursuant to the provisions of this
Section 2.13, then all the other terms and conditions of the Loan Documents shall remain in full force and effect and unmodified. 
  
 Section 2.14. Security Agreement. 
  
 (a) Pledge of Accounts. To secure the full and punctual payment and performance of all of the Indebtedness, Borrower hereby assigns, conveys,
pledges and transfers to Lender as secured party and grants Lender a first and continuing security interest in and to, the 

  

 32 

 
following property, whether now owned or existing or hereafter acquired or arising and regardless of where located (collectively, the “Account
Collateral”): 
  
 (i) all of
Borrower’s right, title and interest in the Mezzanine Loan Account, the Repositioning Costs Reserve Account and all Money and Permitted Investments, if any, from time to time deposited or held in the Mezzanine Loan Account or the Repositioning
Costs Reserve Account or purchased with funds or assets on deposit in the Mezzanine Loan Account or the Repositioning Costs Reserve Account ; 
  
 (ii) all of Borrower’s right, title and interest in interest, dividends, Money, Instruments and other property from time to time
received, receivable or otherwise payable in respect of, or in exchange for, any of the foregoing until such time as such items are disbursed from the Mezzanine Loan Account or the Repositioning Costs Reserve Account ; and 
  
 (iii) to the extent not covered by clause (i) or (ii) above,
all Borrower’s right, title and interest in Proceeds of any or all of the foregoing until such time as such items are disbursed from the Mezzanine Loan Account or the Repositioning Costs Reserve Account . 
  
 (b) Financing Statements; Further Assurances. Borrower hereby
authorizes the filing of any financing statements or continuation statements, and amendments to financing statements, in any jurisdictions and with any filing offices as the Lender may determine, in its sole discretion, are necessary or advisable to
perfect the security interest granted to the Lender in connection herewith. Such financing statements may describe the collateral in the same manner as described in any security agreement or pledge agreement entered into by the parties in connection
herewith or may contain an indication or description of collateral that describes such property in any other manner as the Lender may determine, in its sole discretion, is necessary, advisable or prudent to ensure the perfection of the security
interest in the collateral granted to the Lender in connection herewith, including, without limitation, describing such property as “all assets” or “all personal property” whether now owned or hereafter acquired. From time to
time, at the expense of Borrower, Borrower shall promptly execute and deliver all further instruments, and take all further action, that Lender may reasonably request, in order to continue the perfection and protection of the pledge and security
interest granted or purported to be granted hereby. 
  
 (c)
Transfers and Other Liens. Borrower shall not sell or otherwise dispose of any of the Account Collateral other than pursuant to the terms hereof, or create or permit to exist any Lien upon or with respect to all or any of the Account
Collateral, except for the Lien granted to Lender under this Agreement. 
  
 (d) No Waiver. Every right and remedy granted to Lender under this Agreement or by law may be exercised by Lender at any time and from time to time, and as often as Lender may deem it expedient. Any and all of Lender’s rights
with respect to the pledge of and security interest in the Account Collateral granted hereunder shall continue unimpaired, and to the extent permitted by law, Borrower shall be and remain obligated in accordance with the terms hereof,
notwithstanding (i) any proceeding of Borrower under the United States 

  

 33 

 
Bankruptcy Code or any bankruptcy, insolvency or reorganization laws or statutes of any state, (ii) the release or substitution of Account Collateral at any
time, or of any rights or interests therein or (iii) any delay, extension of time, renewal, compromise or other indulgence granted by Lender in the event of any Default with respect to the Account Collateral or otherwise hereunder. No delay or
extension of time by Lender in exercising any power of sale, option or other right or remedy hereunder, and no notice or demand which may be given to or made upon Borrower by Lender, shall constitute a waiver thereof, or limit, impair or prejudice
Lender’s right, without notice or demand, to take any action against Borrower or to exercise any other power of sale, option or any other right or remedy. 
  

(e) Lender Appointed Attorney-In-Fact. Borrower hereby irrevocably constitutes and appoints Lender as Borrower’s true and lawful
attorney-in-fact, with full power of substitution, at any time after the occurrence and during the continuation of an Event of Default, to execute, acknowledge and deliver any instruments and to exercise and enforce every right, power, remedy,
option and privilege of Borrower with respect to the Account Collateral, and do in the name, place and stead of Borrower, all such acts, things and deeds for and on behalf of and in the name of Borrower with respect to the Account Collateral, which
Borrower could or might do or which Lender may deem necessary or desirable to more fully vest in Lender the rights and remedies provided for herein with respect to the Account Collateral and to accomplish the purposes of this Agreement. The
foregoing powers of attorney are irrevocable and coupled with an interest and shall terminate upon repayment of the Indebtedness in full. 
  
 (f) Continuing Security Interest; Termination. This Section 2.14 shall create a continuing pledge of and security interest in the Account
Collateral and shall remain in full force and effect until payment in full by Borrower of the Indebtedness. Upon payment in full by Borrower of the Indebtedness, Borrower shall be entitled to the return, upon its request and at its expense, of such
of the Account Collateral as shall not have been sold or otherwise applied pursuant to the terms hereof. 
  
 Section 2.15. Junior Mezzanine Loan. Subject to the provisions of this Section 2.15, Borrower shall have the right, at no cost or expense to
Lender, to obtain an additional junior mezzanine loan (the “Approved Junior Mezzanine Loan”) with respect to the Mortgaged Property. The initial principal amount of the Approved Junior Mezzanine Loan shall not be greater than
the lesser of (x) $25,000,000 and (y) the amount that when combined with the outstanding Principal Indebtedness and the outstanding First Mortgage Principal Indebtedness causes the aggregate amount of debt financing secured directly or indirectly by
the Mortgaged Property to equal 80% of Borrower’s Basis in the Mortgaged Property. The closing of the Approved Junior Mezzanine Loan shall be subject to the following conditions precedent: (x) Borrower shall have obtained the prior approval of
the Lender with respect to the identity of the Lender under the Junior Mezzanine Loan (the “Approved Junior Mezzanine Lender”) and the terms of the Approved Junior Mezzanine Loan, such approval not to be unreasonably withheld
or delayed, (y) if the First Mortgage Loan has been included in a Secondary Market Transaction (as such term is defined in the First Mortgage Loan Agreement) in which Securities (as such term is defined in the First Mortgage Loan Agreement) were
issued, First Mortgage Borrower shall have delivered to First Mortgage Lender a First Mortgage Rating Confirmation and (z) Borrower shall have paid all out-of-pocket expenses incurred by the Lender in connection with the transaction. In connection
with any Junior Mezzanine Loan, 
  

	 	(i)	the Approved Junior Mezzanine Loan shall be made to a special purpose, bankruptcy remote entity (the “Approved Junior Mezzanine Borrower”) pursuant to
applicable Rating Agency criteria that owns directly or indirectly one hundred percent (100%) of the ownership interest in the Borrower and shall be secured principally by a pledge of one hundred percent (100%) of Approved Junior Mezzanine
Borrower’s direct and indirect ownership interests in Mezzanine Borrower; 

  

 34 

	 	(ii)	Borrower shall cooperate with all reasonable requests of Lender in order to obtain the Approved Junior Mezzanine Loan and shall execute and deliver such documents in compliance
therewith as shall reasonably be required by Lender and any Rating Agency (including, without limitation, the delivery of new substantive non-consolidation legal opinions and the modification of organizational documents and Loan Documents); and

  

	 	(iii)	the First Mortgage Lender, the Lender and the Junior Mezzanine Lender shall have entered into the Intercreditor Agreement and the Lender and the Junior Mezzanine Lender shall have
entered into the Junior Intercreditor Agreement, each in a form reasonably acceptable to the Lender. 

  
 ARTICLE III 
 CONDITIONS PRECEDENT 
  
 Section 3.1. Conditions Precedent to Effectiveness. This Agreement
shall become effective on the date that all of the following conditions shall have been satisfied (or waived in accordance with Section 8.4) (the “Closing Date”): 
  
 (a) Loan Documents; First Mortgage Loan Documents; UCC Insurance
Policy. Each of Borrower, Manager and Guarantor, shall have executed and delivered the respective Loan Documents to which it is a party to Lender. Lender shall have received the fully executed First Mortgage Loan Documents in form and substance
satisfactory to Lender. Lender shall have received from a title insurance company acceptable to the Lender the UCC insurance policy with respect to the creation, attachment and perfection of the security interests pledged to the Lender under and
pursuant to the Pledge Agreement and evidence that such UCC insurance policy has been paid for in full. 
  
 (b) Opinions of Counsel. Lender shall have received from counsel to Borrower, Guarantor and Manager legal opinions with respect to corporate and
security interest matters and with respect to substantive non-consolidation of Approved Junior Mezzanine Borrower, Manager and TPG/CALSTRS on the one hand, and Borrower on the other, in the event of the bankruptcy of Approved Junior Mezzanine
Borrower, Manager or TPG/CALSTRS. Such legal opinions shall be addressed to Lender and its successors and assigns, dated the Closing Date, and in form and substance satisfactory to Lender and its counsel. 
  
 (c) Formation Documents. Lender shall have received with respect to
each of Borrower, Guarantor and Manager its certificate of limited partnership or formation or certificate of incorporation, as applicable, as amended, modified or supplemented to the Closing Date, as 

  

 35 

 
filed with the Secretary of State in the jurisdiction of organization and in effect on the Closing Date and certified to be true, correct and complete by the
appropriate Secretary of State as of a date not more than ten (10) days prior to the Closing Date, together with a good standing certificate from such Secretary of State and a good standing certificate from the Secretaries of State (or the
equivalent thereof) of each other State in which such party is required to be qualified to transact business. 
  
 (d) Certified Organizational Agreements and Resolutions, Etc. Lender shall have received a certificate of Borrower, the Guarantor, and Manager
dated the Closing Date, certifying (i) the names and true signatures of its incumbent officers authorized to sign the Loan Documents to which Borrower, the Guarantor, and Manager is a party, (ii) the Organizational Agreements of Borrower as in
effect on the Closing Date, (iii) the resolutions of Borrower and the Guarantor, approving and authorizing the execution, delivery and performance of the Loan Documents to which it is a party, and (iv) that there have been no changes in the
Organizational Agreements since the date of execution thereof. 
  
 (e) No Default or Event of Default. No Default or Event of Default shall have occurred and be continuing. 
  
 (f) No Injunction. No law or regulation shall have been adopted, no order, judgment or decree of any Governmental Authority shall have been issued,
and no litigation shall be pending or threatened, which in the good faith judgment of Lender would enjoin, prohibit or restrain, or impose or result in the imposition of any material adverse condition upon, the making or repayment of the Loan or the
consummation of the Transaction. 
  
 (g) Representations and
Warranties. The representations and warranties herein and in the other Loan Documents shall be true and correct. 
  
 (h) Mortgaged Property Deliveries. Lender shall have received the Survey, the Appraisal, the Engineering Report, the Environmental Report, the
Seismic Study and the asbestos “operations and maintenance” plan with respect to the Mortgaged Property, each of which shall be in form and substance satisfactory to Lender. 
  
 (i) Financial Information; Operating Budget; Personal Financial Statement. Lender shall have received the financial
statements of Guarantor, each of which shall be acceptable to the Lender, and acceptable financial information relating to the Mortgaged Property. Such information shall include the following, to the extent reasonably available: 
  
 (i) operating statements for the current year (including
actual to date information, an annual budget and trailing twelve month data in hard copy and on diskette) and for not less than the three preceding years (including tenant improvements costs, leasing commissions, capital reserves, major repairs,
replacement items and occupancy rates in hard copy and on diskette); 
  
 (ii) copies of Leases with respect to the tenants of the Mortgaged Property, a copy of the standard lease form, if any, and tenant lease abstracts, if available; 
  

 36 

 (iii) current property rent roll data on a tenant by tenant basis in hard copy (including
name, square footage, lease term, expiration date, renewal options, base rent per square foot, sales volume psf (if applicable), percentage rent terms (if applicable), additional rent clauses (including stops, offsets, and other special provisions),
escalation clauses for increase in operating expense, maintenance, insurance, real estate taxes and utilities, assignment, sublet and cancellation provisions and purchase options); 
  
 (iv) current real estate tax bills and historical real estate tax bills of record for the Mortgaged Property
for not less than the three preceding years; 
  
 (v) insurance certificates indicating the type and amount of coverage; and 
  
 (vi) the most recent annual financial statements and unaudited quarterly financial statements. 
  
 The annual financial statements relating to the Mortgaged Property shall be either (x)
audited by a “Big Four” accounting firm or another firm of certified public accountants reasonably acceptable to Lender (including RBZ, LLP) or (y) done in accordance with agreed upon procedures reasonably acceptable to Lender to be
performed by a “Big Four” accounting firm or another firm of certified public accountants reasonably acceptable to Lender (including RBZ, LLP) to create similar information. 
  
 (j) Pro Forma Financial Statements; Operating Budget. Lender shall have received (i) the initial pro forma financial
statement for the Mortgaged Property for the following twelve months, (ii) a financial statement that forecasts projected revenues and operating expenses for not less than three years, and (iii) the Operating Budget for the current Fiscal Year which
Operating Budget shall be acceptable to the Lender. 
  
 (k)
Site Inspection. Lender shall have performed, or caused to be performed on its behalf, an on-site due diligence review of the Mortgaged Property which inspection is satisfactory to Lender in its sole discretion. 
  
 (l) Financing Statements. Borrower shall have approved for filing all
financing statements required by Lender pursuant hereto and such financing statements shall have been filed of record in the appropriate filing offices in each of the appropriate jurisdictions or irrevocably delivered to a title agent for such
recordation. 
  
 (m) Title Insurance Policy. Lender shall
have received an unconditional commitment (in form and substance reasonably satisfactory to Lender) to issue the Title Insurance Policy covering the Mortgaged Property. 
  
 (n) Lien Search Reports. Lender shall have received satisfactory reports of UCC (collectively, the “UCC
Searches”), tax lien, judgment and litigation searches and title updates conducted by search firms and/or title companies acceptable to Lender with respect to the Collateral, Borrower, the Mortgaged Property and the Guarantor, such
searches to be conducted in each of the locations as Lender shall reasonably require. 
  

 37 

 (o) Consents, Licenses, Approvals, etc. Lender shall have received copies of all consents,
licenses and approvals, if any, required in connection with the execution, delivery and performance by Borrower, and the validity and enforceability, of the Loan Documents, and such consents, licenses and approvals shall be in full force and effect.

  
 (p) Additional Real Estate Matters. Lender shall have
received such other real estate related certificates and documentation relating to the Mortgaged Property as may have been requested by Lender, to the extent reasonably available: 
  
 (i) certificates of occupancy (or building permit) and utility company approval letters issued by the
appropriate Governmental Authority of the jurisdiction in which the Mortgaged Property is located reflecting, and consistent with, the use of the Mortgaged Property; 
  
 (ii) letters from the appropriate local Governmental Authority of the jurisdiction in which the Mortgaged
Property is located, certifying that the Mortgaged Property is in compliance with all applicable zoning laws, rules and regulations, or a zoning endorsement to the applicable Title Insurance Policy with respect to the Mortgaged Property or an
opinion of zoning counsel to such effect or a report from The Planning and Zoning Resources Corporation to such effect; 
  
 (iii) abstracts of all Leases in effect at the Mortgaged Property and copies of such of the Leases as Lender may request; and 

 
 (iv) estoppel certificates in form and substance
acceptable to Lender in respect of the tenants at the Mortgaged Property. 
  
 (q) Additional Matters. Lender shall have received such other certificates, opinions, documents and instruments relating to the Loan as may have been reasonably requested by Lender. All corporate and other
organizational proceedings, all other documents (including, without limitation, all documents referred to herein and not appearing as exhibits hereto) and all legal matters in connection with the Loan shall be reasonably satisfactory in form and
substance to Lender. 
  
 (r) Transaction Costs. Borrower
shall have paid all Transaction Costs for which bills have been submitted in accordance with the provisions of Section 8.23. 
  
 (s) Insurance. Lender shall have received certificates of insurance demonstrating insurance coverage in respect of the Mortgaged Property of types,
in amounts, with insurers and otherwise in compliance with the terms, provisions and conditions set forth in this Agreement. Such certificates shall indicate that Lender is a named additional insured and shall contain a loss payee endorsement in
favor of Lender with respect to the property policies required to be maintained under this Agreement. 
  
 (t) Material Adverse Effect. The Lender has determined that no event or condition has occurred that is reasonably likely to result in (x) a
Material Adverse Effect or (y) a material adverse change in the principals of Borrower or market conditions generally. 
  

 38 

 (u) Completed Construction Documents. The Lender and the Construction Consultant shall have
received from Borrower all items on the Lender’s project review checklist, which items shall be acceptable to the Lender, in connection with completed work. Such items shall include, without limitation, the Construction Documents. 

 
 (v) Preliminary Evaluation of the Capital Budget. The Construction
Consultant shall have provided to the Lender, to the extent available, a preliminary evaluation of the preliminary Capital Budget (including, without limitation, the related cost estimates (including quantities and unit costs)), Construction
Documents and the Construction Timing, which preliminary evaluation shall include the Construction Consultant’s certification that, in its reasonable opinion, the preliminary Capital Budget is adequate to complete the Renovation, and the
Renovation can be completed in the time frame described in the preliminary Construction Timing, based on the preliminary Renovation Plans and the Capital Budget, and shall be acceptable to the Lender (the “Preliminary Construction Opinion
Letter”). 
  
 Section 3.2. Advance Procedure.

  
 (a) Request for Advance. Not less than ten (10)
Business Days prior to the proposed Advance Date, Borrower shall deliver to the Lender in writing (with copies to the Lender’s servicer and the Construction Consultant) a written request for an Advance substantially in the form of Schedule
5 attached hereto, which contains the following: 
  
 (i) the proposed Advance Date, the aggregate amount of funds proposed to be made available by the Lender to the Borrower on such Advance Date, and the application of such funds to Capital Improvement Costs, Leasing Commissions, TI Costs and
interest payments on the Loan; 
  
 (ii)
Borrower’s certification as to the following: 
  
 (A) with respect to Capital Improvements Costs toward which the Advance is to be applied, that such Capital Improvement Costs are consistent with the Capital Budget (including a tracking report demonstrating the comparison of such Capital
Improvement Costs to the Capital Budget); 
  
 (B)
with respect to TI Costs toward which the Advance is to be applied, that such TI Costs relate to executed Leases and are consistent with the Leasing Budget (including a tracking report demonstrating the comparison of such TI Costs to the Leasing
Budget); 
  
 (C) with respect to Capital
Improvements Costs and/or TI Costs that are being incurred pursuant to a Task Order, that such Capital Improvements Costs and/or TI Costs will be due and owing by First Mortgage Borrower to the Task Order Third Party within thirty (30) days after
the applicable Advance Date; 
  
 (D) with respect
to Leasing Commissions toward which the Advance is to be applied, that such Leasing Commissions relate to Leases that have been executed by First Mortgage Borrower and the tenant named thereunder, or that Borrower reasonably believes will be
executed within thirty (30) days following 

  

 39 

 
the applicable Advance Date, and which are consistent with the Leasing Budget (including a tracking report demonstrating the comparison of such Leasing
Commissions to the Leasing Budget); and 
  
 (E)
with respect to any Advance for Capital Improvement Costs, Leasing Commissions and/or TI Costs, that the portion of the Advance allocable to such work will be applied in a timely manner by First Mortgage Borrower to the payments required for the
performance of such work; and 
  
 (iii)
Borrower’s delivery of the following documentation: 
  
 (A) with respect to Capital Improvement Costs and/or TI Costs being incurred pursuant to a General Contract or a subcontract (but not pursuant to a Task Order), supporting back up documentation (including invoices and
Contractors’ Requisition Certifications) with respect to such Capital Improvement Costs and/or TI Costs; 
  
 (B) with respect to Capital Improvement Costs and/or TI Costs being incurred pursuant to a Task Order, a fully-executed Task Order;

  
 (C) with respect to Leasing Commissions, a
fully-executed leasing commission agreement with a commercial real estate leasing broker and, if received by Borrower prior to its request for the subject Advance, an invoice from such broker setting forth the Leasing Commissions due under such
leasing commission agreement; and 
  
 (D) a copy
of Borrower’s check register showing all payments made by Borrower since the prior Advance request for Capital Improvement Costs, Leasing Commissions and TI Costs; 
  
 (iv) Borrower’s certification that all related partial and final waivers of Lien with respect to
Capital Improvement Costs and TI Costs funded from prior Advances have been obtained (including attaching copies of same); 
  
 (v) invoices for, and evidence of payment of, Leasing Commissions to the extent that any prior Advances were applied toward the payment
thereof; 
  
 (vi) invoices for, and evidence of
payment of, Capital Improvement Costs and/or TI Costs that were incurred pursuant to Task Orders to the extent that any prior Advances were applied toward the payment thereof; 
  
 (vii) upon the completion of the tenant improvements in connection with any Lease, a memorandum of lease
commencement executed by First Mortgage Borrower and the tenant under such Lease, which memorandum shall include a certification by such tenant that all tenant improvements have been completed in accordance with the requirements of such Lease;

  
 (viii) a Basis calculation worksheet in the
form attached hereto as Schedule 6; 
  

 40 

 (ix) an “owner’s sworn statement” certifying that Borrower is in
compliance with the affirmative covenants and the negative covenants set forth in this Agreement; 
  
 (x) a certification on behalf of Borrower, that (i) the representations and warranties in this Agreement are true and correct on such
Advance Date as if made on such date both before and after giving effect to the Advance (or are true and correct after giving effect to the information contained on a schedule attached to such certificate, if any, provided by Borrower), (ii) no
Default or Event of Default has occurred and is continuing on such Advance Date, (iii) the Borrower is in good standing in its jurisdiction of formation, and (iv) there have been no changes in the Organizational Agreements since the most recent
certification thereof (or if there have been changes, certifying as to the changes); and 
  
 (xi) evidence reasonably satisfactory to Lender that First Mortgage Borrower has spent on Capital Improvement Costs (from First Mortgage
Borrower’s own funds or from disbursements to First Mortgage Borrower from the Cash Flow Sweep Account (but excluding any funds from any Advance)) an amount equal to 30% of the aggregate Capital Improvement Costs incurred by First Mortgage
Borrower at the time of such request for Advance. 
  
 (b) Within
ten (10) Business Days after receipt by the Lender of a written request for Advance that contains all required items contained in Section 3.2(a), or, if applicable, within twenty (20) Business Days after receipt by Lender (in accordance with
Section 5.1(y)) of a complete set of Construction Documents with respect to the portion of the Renovation toward which the requested Advance is to be applied, whichever is later, Lender shall fund the requested Advance; provided, the
Lender shall have concurred in Borrower’s statements contained in the written request for Advance that the Capital Improvement Costs to be funded with the proceeds of the Advance are consistent with the Capital Budget and the Leasing
Commissions and TI Costs to be funded with the proceeds of the Advance are consistent with the Leasing Budget. The amount funded by the Lender shall equal 100% of the Leasing Commissions and TI Costs and 70% of the Capital Improvement Costs
referenced on Borrower’s written request for an Advance which amount shall be funded to the Repositioning Costs Reserve Account in accordance with Section 2.1(a) of this Agreement; provided, however, that if immediately
following the Advance, the Task Order Threshold Condition would not be satisfied, then Lender shall reduce the amount of the Advance allocable to the payment of Task Orders by the amount required to satisfy the Task Order Threshold Condition. In the
event, after the proceeds of the First Mortgage Loan disbursed to the Interest Reserve Account on the Closing Date have been reduced to zero, (x) the funds on deposit in the Collection Account on a Payment Date are not sufficient to pay interest on
the First Mortgage Loan or the funds on deposit in the Mezzanine Loan Account on a Payment Date are not sufficient to pay interest on the Loan and (y) the funds on deposit in the Cash Flow Sweep Account are not sufficient to make either such
payment, then on such Payment Date, the Lender shall make an Advance in the amount necessary to pay interest on the Loan and/or interest on the First Mortgage Loan, provided, that such Advance shall not cause the Loan to Value Test, if
applicable, or the Loan to Cost Test not to be satisfied. 
  

 41 

 (c) The obligation of the Lender to make any Advances to Borrower from time to time as set forth above in
this Section 3.2 shall be subject to the satisfaction of the conditions precedent contained in Sections 3.3 and 3.4 below as of each related Advance Date. 
  
 (d) No Advance shall be made for any portion of the Renovation in excess of the budgeted amount for such portion of the
Renovation set forth in the Capital Budget and the Leasing Budget. Lender shall not be required to disburse any portion of any Advance, for labor, materials or services during any stage of construction of the Improvements, which exceeds the
applicable percentage of completion of the relevant portion of the Renovation as approved by the Construction Consultant. 
  
 Section 3.3. Conditions Precedent to Advances. Advances shall be made on an Advance Date that all of the following conditions shall have been
satisfied (or waived in accordance with Section 8.4): 
  
 (a) Cooperation with Site Visit; Monthly Project Report. Borrower shall have cooperated with the Construction Consultant to permit reasonable access to the Mortgaged Property for site visits during each month in order to inspect the
portion of the Mortgaged Property affected by the Renovation and facilitate the preparation and delivery to the Lender of the Monthly Project Report and, if necessary, a Construction Opinion Letter or Construction Project Memorandum. The Lender
shall not have received a Monthly Project Report, a Construction Opinion Letter or a Construction Project Memorandum from the Construction Consultant that is not acceptable to the Lender, it being understood and agreed that the Monthly Project
Report shall be a retroactive analysis of Advances funded in previous months and the Construction Consultant’s confirmation of the items submitted pursuant to Section 3.2(a) for a proposed Advance in the current month shall not delay or
prevent an Advance to be made in the month in which the Monthly Project Report is being delivered. 
  
 (b) No Default or Event of Default. No Default or Event of Default shall have occurred and be continuing. 
  
 (c) Representations and Warranties. The representations and warranties
herein and in the other Loan Documents and First Mortgage Loan Documents shall be true and correct. 
  
 (d) Status of Title. Borrower shall have delivered to Lender, at Borrower’s sole cost and expense, such evidence from the title company
issuing the Title Insurance Policy as Lender shall reasonably require, confirming (in such form as Lender shall reasonably require) that a search of the public records discloses no matter of record constituting an exception to First Mortgage
Lender’s title other than the Permitted Encumbrances (including, without limitation, judgments, liens, mechanics liens, outstanding taxes, assessments or water rents, financing documents or title retention agreements filed and/or recorded
against Borrower, First Mortgage Borrower or the Mortgaged Property or any part thereof). 
  
 (e) No Damage. Neither the Mortgaged Property nor any Equipment of a material nature shall have suffered any significant damage (i.e. damage costing in excess of $1,000,000 to repair) by fire or other casualty
loss that has not been completely repaired and 

  

 42 

 
restored to its original or better condition or is not in good faith being repaired and restored and for which adequate funds (in Lender’s reasonable
judgment) are or will be available. 
  
 (f) No
Condemnation. No condemnation of all or a significant part of the Mortgaged Property or adverse zoning or usage change proceedings materially adversely affecting the use of the Mortgaged Property shall have been commenced with respect to the
Mortgaged Property, or threatened pursuant to a written notice from the applicable Governmental Authority, other than any usage changes as are contemplated by this Agreement or any change in zoning or a proceeding to change the zoning that by its
terms permits the continued use and occupancy of the Mortgaged Property in perpetuity in accordance with the certificate of occupancy therefor, including reconstruction of substantially all the improvements then situated on the Mortgaged Properties
upon any casualty thereto in whole or in part. 
  
 (g) Evidence
of Compliance and Good Workmanship. Lender, its servicer and the Construction Consultant shall each have received such certifications and documentation from Borrower, the General Contractors and the Architects as it may reasonably require to
demonstrate that (i) the portion of the Renovation toward which the Advance will be applied has been prosecuted in all respects substantially in accordance with the Renovation Plans, and (ii) all Renovation has been accomplished in a good and
workmanlike manner to a stage of completion warranting the Advance being requested. The certificates and documents must be in all respects reasonably satisfactory to Lender and its servicer. 
  
 (h) Partial Lien Waivers. To the extent applicable, Lender and the
Construction Consultant shall have received partial lien waivers from any contractor, subcontractor or material supplier providing work, labor or services paid with a prior Advance with respect to such work, labor or services, as the case may be,
and immediately following the final payment to any contractor, subcontractor or material supplier, a copy of a general release and final waiver of lien from such contractor, subcontractor or material supplier, as the case may be. 
  
 (i) Transaction Costs. Borrower shall have paid all Transaction Costs
for which bills have been submitted in accordance with the provisions of Section 8.23. 
  
 (j) No Amendment of Capital Budget, the Leasing Budget or Construction Documents. Neither the Capital Budget, the Leasing Budget nor the Construction Documents shall have been amended or modified without the
prior written consent of Lender. Notwithstanding the foregoing, Lender acknowledges that, as of the Closing Date, the Leasing Budget and Capital Budget are preliminary estimates made by Borrower and Borrower’s consultants. The provisions as per
Section 5.1(aa) of this Agreement will govern for proposed amendments to the Leasing Budget and Capital Budget, respectively. 
  
 (k) Interest Rate Cap. Borrower shall have delivered to the Lender the interest rate cap in a form acceptable to the Lender from a Qualified
Interest Rate Cap Provider with a notional amount equal to the outstanding Principal Indebtedness (including the requested Advance) and a strike rate equal to 5.00% and the fully executed Collateral Assignment of Hedge. 
  

 43 

 (l) Final Advance. In the case of the final Advance, the Lender shall have received: 

 
 (i) advice from the Construction Consultant and the
Architects to the effect that performance of the Renovation has been completed, and any necessary utilities have been finished and made available for use, in each case substantially in accordance with the Renovation Plans, except to the extent of
minor details not material to the use or occupancy of the Improvements, and that the Construction Consultant has received satisfactory evidence of the approval by all applicable Governmental Authorities of the Improvements for permanent occupancy
(other than tenant improvements not yet completed); 
  
 (ii) a current final “as-built” survey of the Land showing all Improvements thereon; 
  
 (iii) a copy of the TCO or permanent certificate of occupancy received by Borrower or Manager from the appropriate Governmental
Authorities which have approved the Improvements or occupied tenant improvements for occupancy; 
  
 (iv) “as-built” plans for the improvements which are substantially reflective of the physical condition of the Mortgaged
Property prepared by the Architects; 
  
 (v) an
Engineering Report with respect to the Mortgaged Property prepared by the Engineer, which Engineering Report shall be reasonably acceptable to the Lender; and 
  

(vi) a final Title Insurance Policy date-down. 
  

(m) Material Adverse Effect. The Lender has determined that no event or condition has occurred that is reasonably likely to result in (x) a
Material Adverse Effect or (y) a material adverse change in the principals of Borrower or market conditions generally. 
  
 (n) Terrorism Insurance. Borrower has provided Lender with evidence reasonably satisfactory to Lender that First Mortgage Borrower has obtained
terrorism insurance in the amounts required pursuant to Section 5.1(x) of the First Mortgage Loan Agreement. 
  
 (o) Architects, General Contractors, Renovation Plans and Letter Agreements. Borrower acknowledges that as of the Closing Date, the Borrower has
not submitted to Lender, and Lender has not approved, any of the following: 
  
 (i) the identities of the Architects or the Architects’ Contracts, 
  
 (ii) the identities of the General Contractors or the General Contracts, 
  
 (iii) the Renovation Plans (other than those addressed by the Preliminary Construction Opinion Letter), and

  

 44 

 (iv) the letter agreements pursuant to the provisions of which the Architects, the
General Contractors, the subcontractors and materialmen under the Major Subcontracts and the Task Orders Third Parties shall have agreed to perform their respective contracts at no additional cost or expense for the benefit of Lender or its nominee
or wholly-owned subsidiary, in the event of a Default under the Loan Documents or a foreclosure of the First Mortgage. 
  
 It shall be a condition precedent to the making of any Advances by Lender to Borrower that Lender shall have approved (such approval not to be
unreasonably withheld or delayed) the identity of the Architects, the General Contractors and the consultants under Consulting Contracts, and that Lender shall have received and approved (such approval not to be unreasonably withheld or delayed), to
the extent applicable to the subject requested Advance, the Architects’ Contracts, the General Contracts, the Consulting Contracts, the complete (and non-preliminary) Renovation Plans applicable to the Advance, proposed amendments to the
Capital Budget and Leasing Budget, the Construction Timing and the letter agreements pursuant to the provisions of which the Architects, the General Contractors, the subcontractors and materialmen under the Major Subcontracts and the Task Orders
Third Parties shall have agreed to perform their respective contracts at no additional cost or expense for the benefit of Lender or its nominee or wholly-owned subsidiary, in the event of a Default under the Loan Documents or a foreclosure of the
First Mortgage. Additionally, prior to Lender making any Advances, (1) Lender shall have received from the Construction Consultant an acceptable Construction Opinion Letter or Construction Project Memorandum (if applicable) with respect to the
portion of the Renovation of the Mortgaged Property toward which the subject Advance will be applied, and (2) Borrower shall have caused each Major General Contractor to provide payment and performance bonds, with a dual obligee rider in favor of
Lender, in form and substance approved by Lender, and issued by a surety or sureties approved by Lender, in an aggregate amount approved by Lender, and assuring completion of the portion of the Renovation toward which the subject Advance will be
applied in accordance with Construction Contracts entered into between such Major General Contractor and Borrower and in accordance with the Renovation Plans; provided, however, that payment and performance bonds shall not be required if Lender
determines in its reasonable discretion that requiring Borrower to obtain the same would not be commercially reasonable. 
  
 Section 3.4. Additional Provisions for Future Advances. 
  
 (a) Borrower agrees that all necessary state, local and federal permits required or needed for the Renovation at the Mortgaged Property have been obtained
or will be obtained in a timely manner and that the renovated Improvements, when completed, shall be in compliance with all applicable Legal Requirements. 
  
 (b) Borrower agrees that the initial phase of the Renovation shall be commenced on or before the Commencement Date, and once the Renovation has been
commenced, the Renovation shall be prosecuted with diligence and continuity giving account to Excusable Delay, in a good and workmanlike manner and completed substantially in accordance with the Renovation Plans free and clear of Liens of any kind
except those in favor of Lender and First Mortgage Lender, other than the Permitted Encumbrances. Borrower further agrees to 

  

 45 

 
keep Lender informed, from time to time, as to all matters of concern regarding the performance and progress of the Renovation. 
  
 (c) Borrower shall permit Lender, Construction Consultant and/or their
representatives to enter upon the Mortgaged Property, upon reasonable advance notice (which may be oral) and during normal business hours, to inspect the Renovation and the Improvements and all materials to be used in the completion thereof, and to
examine all Renovation Plans as well as detailed plans and shop drawings and, in furtherance of but without limiting any of the other provisions of this clause, Borrower and its contactors shall meet at the Mortgaged Property (or by telephonic
conference) from time to time, upon reasonable advance request by Lender, during the period of performance of the Renovation, to discuss the progress of the Renovation. 
  
 (d) Borrower shall deliver to Lender, on demand, certified copies of contracts, bills of sale, statements, or receipted
vouchers or agreements under which Borrower claims title to any materials, fixtures or articles constituting part of the Improvements. 
  
 (e) Borrower shall correct any structural defect in the Improvements or any departure from the Renovation Plans which has not been approved by Lender or
Construction Consultant on Lender’s behalf. 
  
 (f) Following
any Default, Borrower shall promptly comply, and cause any contractor or subcontractor to promptly comply, with reasonable instructions of Lender or Construction Consultant relating to the performance of the Renovation in accordance with any
Construction Document and the Renovation Plans. 
  
 (g) Borrower
shall pay or cause to be paid all obligations incurred for the cost of the Renovation (whether or not the monies available under this Agreement shall be sufficient for said purpose) pursuant to purchase orders for each of such items. 
  
 (h) Borrower shall furnish or cause to be furnished to Lender and
Construction Consultant from time to time (but not less frequently than once a month) (i) a list of all unpaid bills with respect to work, labor or services or materials, supplies or equipment relating to the Renovation, (ii) list of all contractors
and subcontractors with whom Borrower has contracted or intends to contract for the performing of any work, labor or services or the furnishing of any materials, supplies or equipment in connection with the Renovation at the Mortgaged Property
together with copies of such contracts and (iii) Borrower’s budgets and revisions thereof showing the estimated costs of the Renovation and the funds that shall be required, at any given time, to complete and pay for such Renovation, labor,
services, materials, supplies or equipment (including a construction timeline showing the estimated time periods within which each phase of each item of the Renovation shall be completed). 
  
 (i) Borrower shall furnish to Lender and Construction Consultant (a) before
commencing any portion of the Renovation, copies of all permits and other governmental approvals necessary in order to commence such Renovation; and (b) within thirty (30) days or such longer period of time as may be caused by municipal or other
governmental delay after completion of the Renovation and in any event prior to requesting the final Advance hereunder, a 

  

 46 

 
copy of any final approvals and any other necessary certificates, licenses, consents and other approvals of Governmental Authorities. 
  
 Section 3.5. Form of Loan Documents and Related Matters. All of the
Loan Documents, whether or not referred to in this Article III, unless otherwise specified, shall be delivered to Lender, and shall be satisfactory in form and substance to Lender in its sole discretion (unless the form thereof is prescribed
herein). The execution and delivery by Borrower of this Agreement shall constitute a representation and warranty by Borrower to Lender that all of the conditions required to be satisfied under Section 3.1 in connection with the making of the
Loan have been satisfied or waived in accordance with Section 8.4. 
  
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES 
  
 Section 4.1. Representations and Warranties as to Borrower. Borrower
represents and warrants that, as of each Advance Date: 
  
 (a)
Organization. Borrower (i) is a duly organized and validly existing limited liability company in good standing under the laws of the State of Delaware, (ii) has the requisite power and authority to own its properties (including, without
limitation, the Collateral) and to carry on its business as now being conducted and is qualified to do business in the jurisdiction in which the Mortgaged Property is located, and (iii) has the requisite power to execute and deliver, and perform its
obligations under, this Agreement, the Note and all of the other Loan Documents to which it is a party. 
  
 (b) Authorization; No Conflict; Consents and Approvals. The execution and delivery by Borrower of this Agreement, the Note and each of the other
Loan Documents, Borrower’s performance of its obligations hereunder and thereunder and the creation of the security interests and Liens provided for in this Agreement and the other Loan Documents to which it is a party (i) have been duly
authorized by all requisite limited liability company action on the part of Borrower, (ii) will not violate any provision of any Legal Requirements, any order of any court or other Governmental Authority, the Organizational Agreements or any
indenture or material agreement or other instrument to which Borrower is a party or by which Borrower is bound, and (iii) will not be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under,
or result in the creation or imposition of any Lien of any nature whatsoever upon any of the property or assets of Borrower pursuant to, any such indenture or material agreement or instrument. Other than those obtained or filed on or prior to the
Closing Date, Borrower is not required to obtain any consent, approval or authorization from, or to file any declaration or statement with, any Governmental Authority or other agency in connection with or as a condition to the execution, delivery or
performance of this Agreement, the Note or the other Loan Documents executed and delivered by Borrower. 
  
 (c) Enforceability. This Agreement, the Note and each other Loan Document executed by Borrower or any other party in connection with the Loan, is
the legal, valid and binding obligation of Borrower, enforceable against such Person in accordance with its terms, subject to bankruptcy, insolvency, and other limitations on creditors’ rights generally and to equitable principles. This
Agreement, the Note and such other Loan Documents are not subject 

  

 47 

 
to any right of rescission, set-off, counterclaim or defense by Borrower (including the defense of usury), and Borrower has not asserted any right of
rescission, set-off, counterclaim or defense with respect thereto. 
  
 (d) Litigation. There are no actions, suits, investigations or proceedings at law or in equity by or before any Governmental Authority or other agency now pending and served or, to the best knowledge of Borrower, threatened against
Borrower, First Mortgage Borrower, the Mortgaged Property or any Collateral, which actions, suits or proceedings, if determined against Borrower or such Collateral, are reasonably likely to result in a Material Adverse Effect. 
  
 (e) Agreements. Each of Borrower and First Mortgage Borrower is not in
default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument to which it is a party or by which Borrower, First Mortgage Borrower, the Mortgaged Property or any
Collateral is bound which is reasonably likely to have a Material Adverse Effect. Each of Borrower and First Mortgage Borrower is not a party to any agreement or instrument or subject to any restriction by which it or its assets are bound which is
reasonably likely to have a Material Adverse Effect. 
  
 (f) No
Bankruptcy Filing. Borrower is not contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of its assets or property. To the best knowledge of
Borrower, no Person is contemplating the filing of any such petition against it. 
  
 (g) Solvency. Giving effect to the transactions contemplated hereby, the fair saleable value of Borrower’s and First Mortgage Borrower’s assets exceeds and will, immediately following the making of
the Loan, exceed Borrower’s total and First Mortgage Borrower’s total liabilities (including, without limitation, subordinated, unliquidated, disputed and contingent liabilities). The fair saleable value of Borrower’s and First
Mortgage Borrower’s assets is and will, immediately following the making of the Loan, be greater than Borrower’s and First Mortgage Borrower’s probable liabilities (including the maximum amount of its contingent liabilities on its
debts as such debts become absolute and matured). Each of Borrower’s and First Mortgage Borrower’s assets do not and, immediately following the making of the Loan will not, constitute unreasonably small capital to carry out its business as
conducted or as proposed to be conducted. Borrower and First Mortgage Borrower does not intend to, and does not believe that it will, incur debts and liabilities (including, without limitation, contingent liabilities and other commitments) beyond
its ability to pay such debts as they mature (taking into account the timing and amounts to be payable on or in respect of obligations of Borrower) and First Mortgage Borrower. 
  
 (h) Other Debt. Except as disclosed in writing to Lender, Borrower has not borrowed or received other debt financing
whether unsecured or secured by the Mortgaged Property or any part thereof. 
  
 (i) Full and Accurate Disclosure. No statement of fact made by or on behalf of Borrower in this Agreement or in any of the other Loan Documents contains any untrue statement of a material fact or omits to state
any material fact necessary to make statements 

  

 48 

 
contained herein or therein not misleading. To the best knowledge of Borrower, there is no fact which has not been disclosed to Lender which is likely to
result in a Material Adverse Effect. All of the representations and warranties made by or on behalf of Borrower or First Mortgage Borrower in this Agreement and the other Loan Documents or any document or instrument delivered to the Lender pursuant
to or in connection with any of such Loan Documents are true and correct in all material respects as of the date hereof, and, neither Borrower nor First Mortgage Borrower has failed to disclose such information as is necessary to make such
representations and warranties not misleading in any material respect, including without limitation, the terms and conditions of the purchase and sale agreement pursuant to which First Mortgage Borrower acquired the Mortgaged Property. 

 
 (j) Financial Information. All financial data concerning Borrower
and the Mortgaged Property that has been delivered by or on behalf of Borrower to Lender is true, complete and correct in all material respects and has been prepared in accordance with GAAP. Since the delivery of such data, except as otherwise
disclosed in writing to Lender, there has been no change in the financial position of Borrower or the Mortgaged Property, or in the results of operations of Borrower, which change results or is reasonably likely to result in a Material Adverse
Effect. Each of Borrower and First Mortgage Borrower has not incurred any obligation or liability, contingent or otherwise, not reflected in such financial data which is likely to have a Material Adverse Effect upon its business operations or the
Mortgaged Property. 
  
 (k) Investment Company Act; Public
Utility Holding Company Act. Each of Borrower and First Mortgage Borrower is not (i) an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of
1940, as amended, (ii) a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a “holding company” or a “subsidiary company” within the meaning of
the Public Utility Holding Company Act of 1935, as amended, or (iii) subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money in accordance with this Agreement. 
  
 (l) Compliance. Each of Borrower and First Mortgage Borrower is in
compliance with all applicable Legal Requirements, except for noncompliance which is not reasonably likely to have a Material Adverse Effect. Each of Borrower and First Mortgage Borrower is not in default or violation of any order, writ, injunction,
decree or demand of any Governmental Authority, except for defaults or violations which are not reasonably likely to have a Material Adverse Effect. 
  
 (m) Use of Proceeds; Margin Regulations. Borrower will use the proceeds of the Loan for the purposes described in Section 2.2. No part of
the proceeds of the Loan will be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose which would be
inconsistent with such Regulation U or any other Regulations of such Board of Governors, or for any purposes prohibited by Legal Requirements. 
  

 49 

 (n) Single-Purpose Entity. 
  
 (i) Borrower at all times since its formation has been a duly formed and existing limited liability company
and a Single-Purpose Entity. 
  
 (ii) Borrower at
all times since its formation has complied with the provisions of its Organizational Agreements and the laws of the State of its organization or formation relating to limited liability companies. 
  
 (iii) All customary formalities regarding the limited
liability company existence of Borrower have been observed at all times since the Organizational Agreements were executed and delivered. 
  
 (iv) Borrower has at all times since it began maintaining such items accurately maintained its financial statements, accounting records
and other limited liability company documents separate from those of its members, Affiliates of its members, and any other Person. Borrower has not at any time since its formation commingled its assets with those of its members, any Affiliates of
its members, or any other Person. Borrower has at all times since establishing its own bank accounts accurately maintained its own bank accounts and separate books of account. 
  
 (v) Borrower has at all times since receiving funds paid its own liabilities from its own separate assets.

  
 (vi) Borrower has at all times since its
formation identified itself in all dealings with the public, under Borrower’s own name and as a separate and distinct entity. Borrower has not at any time since its formation identified itself as being a division or a part of any other entity.
Borrower has not at any time since its formation identified its members or any Affiliates of its members as being a division or part of Borrower. 
  
 (vii) Borrower is as of the date hereof adequately capitalized in light of the nature of its business. 
  
 (viii) Borrower has not at any time since its formation
assumed or guaranteed the liabilities of its members (or any predecessor entity), any Affiliates of its members, or any other Persons, except for liabilities relating to the Collateral and except as permitted by or pursuant to this Agreement.
Borrower has not at any time since its formation acquired obligations or securities of its members (or any predecessor entity), or any Affiliates of its members or any other Person (other than the First Mortgage Borrower and Borrower). Borrower has
not at any time since its formation made loans to its members (or any predecessor entity), or any Affiliates of its members or any other Person. 
  
 (ix) Borrower has not at any time since its formation entered into and was not a party to any transaction with its members (or any
predecessor entity) or any Affiliates of its members, except for in the ordinary course of business of Borrower on terms which are no less favorable to Borrower than would be obtained in a comparable arm’s length transaction with an unrelated
third party. 
  

 50 

 (o) No Defaults. No Default or Event of Default exists under or with respect to any Loan Document.

  
 (p) Title; Liens. Borrower is the sole owner and holder
of the Collateral (as such term is defined in the Pledge Agreement) and has good and marketable title thereto, free of all Liens (other than the Liens in favor of Lender). Each Pledge Agreement establishes and creates a valid, subsisting and
enforceable Lien on and a security interest, or claim to, the rights and property described therein. All property covered by any Pledge Agreement is subject to a UCC financing statement filed and/or recorded, as appropriate (or irrevocably delivered
to an agent for such recordation or filing) in all places necessary to perfect a valid first priority Lien with respect to the rights and property that are the subject of such Pledge Agreement to the extent governed by the UCC. 
  
 (q) Plans and Welfare Plans. The assets of Borrower are not treated as
“plan assets” under regulations currently promulgated under ERISA. Each Plan, and, to the best knowledge of Borrower, each Multiemployer Plan, is in compliance in all material respects with, and has been administered in all material
respects in compliance with, its terms and the applicable provisions of ERISA, the Code and any other federal or state law, and no event or condition has occurred and is continuing as to which Borrower would be under an obligation to furnish a
report to Lender under Section 5.1(u)(i). Other than an application for a favorable determination letter with respect to a Plan, there are no pending issues or claims before the Internal Revenue Service, the United States Department of Labor
or any court of competent jurisdiction related to any Plan or Welfare Plan. No event has occurred, and there exists no condition or set of circumstances, in connection with any Plan or Welfare Plan under which Borrower or, to the best knowledge of
Borrower, any ERISA Affiliate, directly or indirectly (through an indemnification agreement or otherwise), is reasonably likely to be subject to any material risk of liability under Section 409 or 502(i) of ERISA or Section 4975 of the Code. No
Welfare Plan provides or will provide benefits, including, without limitation, death or medical benefits (whether or not insured) with respect to any current or former employee of Borrower, or, to the best knowledge of Borrower, any ERISA Affiliate
beyond his or her retirement or other termination of service other than (i) coverage mandated by applicable law, (ii) death or disability benefits that have been fully provided for by fully paid up insurance or (iii) severance benefits. 

 
 (r) Additional Borrower UCC Information. Borrower’s
organizational identification number is 3789290 and the full legal name of Borrower is as set forth on the signature pages hereof and Borrower has not done in the last five (5) years, and does not do, business under any other name (including any
trade-name or fictitious business name). 
  
 (s) Tax
Filings. Each of Borrower and First Mortgage Borrower has filed all federal, state and local tax returns required to be filed and have paid or made adequate provision for the payment of all federal, state and local taxes, charges and assessments
payable by such Person. Each of Borrower and First Mortgage Borrower believes that its tax returns properly reflect the income and taxes of such Person, for the periods covered thereby. 
  
 (t) Environmental Compliance. Neither Borrower nor the Mortgaged Property is subject to any applicable Environmental
Law requiring the performance of Hazardous Substances site assessments, or the removal or remediation of Hazardous Substances, 

  

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or the giving of notice to any governmental agency or the recording or delivery to other Persons of an environmental disclosure document or statement, in
each case by virtue of the transactions set forth herein and contemplated hereby, or as a condition to the recording of the Loan Documents or to the effectiveness of any other transactions contemplated hereby. 
  
 (u) Pre-Closing Date Activities. Borrower has not conducted any
business or other activity on or prior to the Closing Date, other than in connection with the acquisition of the membership interest in the limited liability company that owns the Mortgaged Property. 
  
 (v) Ownership. Borrower is the sole member of First Mortgage Borrower,
and no other Person owns any legal, equitable or beneficial interest in First Mortgage Borrower. 515/555 Flower Junior Mezzanine Associates, LLC is the sole member of Borrower and no other Person owns any legal, equitable or beneficial interest in
Borrower. 
  
 (w) First Mortgage Loan Documents. Borrower
hereby restates and reaffirms each of the representations and warranties made by First Mortgage Borrower set forth in the First Mortgage Loan Documents as if the same were more fully set forth herein and were made to the Lender. 
  
 (x) Leases. The Mortgaged Property is not subject to any Leases other
than the Leases described in the rent roll delivered to Lender in connection with the making of the Loan. No person has any possessory interest in the Mortgaged Property or right to occupy the same except under and pursuant to the provisions of the
Leases. The current Leases are in full force and effect and there are no defaults thereunder by either party and no conditions which with the passage of time and/or notice would constitute defaults thereunder, except for such defaults as are not
reasonably likely to result in a Material Adverse Effect. 
  
 (y)
No Bankruptcies or Criminal Proceedings Involving Borrower or Related Parties. No bankruptcy, insolvency, reorganization or comparable proceedings have ever been instituted by or against Borrower, any Affiliate of Borrower, Guarantor or any
individual or entity owning, with his, her or its family members, 20% or more of the direct, or indirect beneficial ownership interests in Borrower (each such Guarantor, individual, or entity being herein referred to as a
“Principal”), and no such proceeding is now pending or contemplated. None of Borrower, any Principal, or to Borrower’s knowledge, any other individual or entity directly or indirectly owning or controlling, or the family
members of which own or control, any direct or indirect beneficial ownership interest in Borrower or in the Manager or asset manager for the Mortgaged Property, have been charged, indicted or convicted, or are currently under the threat of charge,
indictment or conviction, for any felony or crime punishable by imprisonment. 
  
 (z) No Prohibited Persons. Neither Borrower, Guarantor nor any of their respective officers, directors, shareholders, partners, members or Affiliates, if applicable (including, without limitation, the indirect
holders of equity interests in Borrower) is or will be an entity or person: (i) that is listed in the Annex to, or is otherwise subject to the provisions of Executive Order 13224 issued on September 24, 2001 (“EO13224”); (ii)
whose name appears on the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”) most current list of “Specifically Designated National and Blocked Persons” (which list may be published
from time to time in various mediums including, but not limited to, the OFAC website, 

  

 52 

 
http:www.treas.gov/ofac/t11sdn.pdf); (iii) who commits, threatens to commit or supports “terrorism”, as that term is defined in EO13224; or (iv)
who is otherwise affiliated with any entity or person listed above (any and all parties or persons described in clauses (i) through (iv) above are herein referred to as a “Prohibited Person”). 
  
 (aa) Capital Budget. The Capital Budget and the Leasing Budget are, in
the absence of unusual or extraordinary conditions, adequate for the Renovation and the lease-up of the Mortgaged Property. Borrower has no knowledge of any circumstances existing or likely to occur that might result in a material change in the
Capital Budget or the Leasing Budget. 
  
 (bb) Material
Contracts. Any Architects’ Contracts, General Contracts and Major Subcontracts executed and delivered prior to the Closing are unmodified and in full force and effect and no default exists thereunder and all conditions to the effectiveness
or continuing effectiveness thereof required to be satisfied by the date hereof have been satisfied. 
  
 Section 4.2. Survival of Representations. Borrower agrees that (i) all of the representations and warranties of Borrower set forth in Section
4.1 and in the other Loan Documents delivered on the Closing Date are made as of the Closing Date, and (ii) all representations and warranties made by Borrower shall survive the delivery of the Note and making of the Loan and continue for so
long as any amount remains owing to Lender under this Agreement, the Note or any of the other Loan Documents. All representations, warranties, covenants and agreements made in this Agreement or in the other Loan Documents shall be deemed to have
been relied upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf. 
  
 ARTICLE V 
 AFFIRMATIVE COVENANTS

  
 Section 5.1. Affirmative Covenants. Borrower
covenants and agrees that, from the date hereof and until payment in full of the Indebtedness: 
  
 (a) Existence; Compliance with Legal Requirements. Borrower shall do or cause to be done all things necessary to preserve, renew and keep in full force and effect its and First Mortgage Borrower’s
existence, rights, licenses, Permits and franchises necessary for the conduct of their respective businesses and comply with all Legal Requirements applicable to it. Borrower shall and shall cause First Mortgage Borrower to at all times maintain,
preserve and protect all franchises and trade names and preserve all the remainder of its and First Mortgage Borrower’s property necessary for the continued conduct of its and First Mortgage Borrower’s business. Borrower covenants and
agrees to give the Lender prompt notice of any non-compliance with such Legal Requirements and of any notice of non-compliance therewith which it or First Mortgage Borrower receives or any threatened or pending proceedings in respect thereto or with
respect to the Mortgaged Property (including, without limitation, changes in zoning) of which First Mortgage Borrower or Borrower receives notice. If at any time while the Loan is outstanding, any authorization, consent, approval, permit or license
from any officer, agency or instrumentality of any government shall become necessary or required in order that Borrower may fulfill any of its obligations hereunder, Borrower will immediately take or cause to be taken all steps necessary to obtain
such authorization, consent, approval, permit or license 

  

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and furnish the Lender with evidence thereof. Notwithstanding the foregoing, Borrower shall have the right to contest the applicability of any Legal
Requirement subject to the terms and conditions of the First Mortgage Loan Documents so long as First Mortgage Borrower is in good faith, and by proper legal proceedings, diligently contesting the application thereof, provided no Event of Default
shall exist and be continuing hereunder, and Borrower provides evidence to the Lender that First Mortgage Borrower is otherwise fully complying with each of the conditions set forth in the First Mortgage Loan Documents applicable to such contest.
Borrower shall promptly notify the Lender of the commencement of any contest or similar proceeding hereunder. Notwithstanding the foregoing, Borrower shall cause First Mortgage Borrower promptly to comply with any contested Legal Requirement, and
compliance therewith shall not be deferred, if First Mortgage Borrower or the First Mortgage Lender may be subject to civil or criminal charges or damages a result thereof. If such action or proceeding is terminated or discontinued adversely to
First Mortgage Borrower, then, Borrower shall, upon written demand, deliver to the Lender reasonable evidence of compliance by First Mortgage Borrower with such contested Legal Requirement. 
  
 (b) Taxes. 
  
 (i) Borrower shall file or cause to be filed all federal,
state and local tax returns required to be filed and shall pay or make adequate provision for the payment of all federal, state and local taxes, charges and assessments payable by it and First Mortgage Borrower with respect to the Collateral.

  
 (ii) Borrower shall cause First Mortgage
Borrower to pay all Impositions, to pay all claims for labor, material or supplies that if unpaid or unbonded might by law become a lien or charge upon any of its property (including the Mortgaged Property), and to keep the Mortgaged Property free
from all Liens (other than the lien of the First Mortgage Loan Documents and the permitted encumbrances thereunder), and shall in any event cause the prompt, full and unconditional discharge of all Liens imposed upon the Mortgaged Property or any
portion thereof within thirty (30) Business Days after receiving written notice (whether from First Mortgage Lender, the Lender or any other Person) of the filing thereof; subject in each case to First Mortgage Borrower’s right to contest the
same as permitted in but subject to the conditions set forth in the Mortgage Loan Documents so long as no Event of Default has occurred. In the event that First Mortgage Borrower elects to commence any contest or similar proceeding with respect to
any such Impositions, Liens or other claims described herein, Borrower shall provide prompt written notice thereof to the Lender together with such evidence as the Lender may reasonably require showing First Mortgage Borrower’s satisfaction of
the requirements set forth in the First Mortgage Loan Documents to First Mortgage Borrower conducting such contest. Notwithstanding the foregoing, Borrower shall cause First Mortgage Borrower promptly to pay any contested Imposition, Lien or claim
and the payment thereof shall not be deferred, if First Mortgage Lender or First Mortgage Borrower may be subject to civil or criminal damages as a result thereof. If such action or proceeding is terminated or discontinued adversely to First
Mortgage Borrower, then First Mortgage Borrower shall deliver to the Lender reasonable evidence of payment of such contested Imposition or Lien. 
  

 54 

 (c) Litigation. Borrower shall give prompt written notice to Lender of any litigation or
governmental proceedings or investigations pending or threatened (in writing) against Borrower, First Mortgage Borrower or the Mortgaged Property. 
  
 (d) General Indemnity. 
  
 (i) Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless the Lender and its parents,
subsidiaries, Affiliates, shareholders, directors, officers, employees, representatives, agents, successors, assigns and attorneys (collectively, the “Indemnified Parties”) for, from and against any and all claims, suits,
liabilities (including, without limitation, strict liabilities), administrative and judicial actions and proceedings, obligations, debts, damages, losses, costs, expenses, diminutions in value, fines, penalties, charges, fees, expenses, judgments,
awards, amounts paid in settlement, and litigation costs, of whatever kind or nature and whether or not incurred in connection with any judicial or administrative proceedings (including, but not limited to, reasonable attorneys’ fees and other
reasonable costs of defense) (the “Losses”) imposed upon or incurred by or asserted against any Indemnified Parties (except to the extent same are directly and solely caused by the fraud, bad faith, gross negligence or
willful misconduct of any Indemnified Party), and directly or indirectly arising out of or in any way relating to any one or more of the following: 
  
 (A) ownership of the Note, any of the other Loan Documents, or any interest therein; 
  
 (B) any amendment to, or restructuring of, the Indebtedness,
and the Note, or any of the other Loan Documents; 
  
 (C) any and all lawful action that may be taken by Lender in connection with the enforcement of the provisions of this Agreement, the Note or any of the other Loan Documents, whether or not suit is filed in connection with same, or in
connection with Borrower or any Affiliate of Borrower becoming a party to a voluntary or involuntary federal or state bankruptcy, insolvency or similar proceeding; 
  
 (D) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about
the Mortgaged Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; 
  
 (E) any use, nonuse or condition in, on or about the Mortgaged Property or any part thereof or on the adjoining sidewalks, curbs, adjacent
property or adjacent parking areas, streets or ways; 
  
 (F) any failure on the part of Borrower to perform or be in compliance with any of the terms of this Agreement or any of the other Loan Documents; 
  

 55 

 (G) performance of any labor or services or the furnishing of any materials or other
property in respect of the Mortgaged Property or any part thereof; 
  
 (H) the failure of Borrower to file timely with the Internal Revenue Service an accurate Form 1099-B, Statement for Recipients of Proceeds from Real Estate, Broker and Barter Exchange Transactions, which may be
required in connection with this Agreement; 
  
 (I) any failure of the Mortgaged Property to be in compliance with any Legal Requirement; 
  
 (J) the enforcement by any Indemnified Party of the provisions of this Section 5.1(d); 
  
 (K) any and all claims and demands whatsoever which may be
asserted against Lender by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants, or agreements contained in any Lease; or 
  
 (L) any untrue statement or alleged untrue statement of any material fact contained in any information
concerning Borrower, the Mortgaged Property or the Loan or the omission or alleged omission to state therein a material fact required to be stated in such information or necessary in order to make the statements in such information in light of the
circumstances under which they were made not misleading. 
  
 Any amounts payable
to an Indemnified Party by reason of the application of this Section 5.1(d)(i) shall become due and payable ten (10) days after written demand and shall bear interest at the Default Rate from the tenth (10th) day after demand until paid.

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

 56 

 (iv) Promptly after receipt by an Indemnified Party under this Section 5.1(d) of
notice of the making of any claim or the commencement of any action, such Indemnified Party shall, if a claim in respect thereof is to be made by such Indemnified Party against Borrower under this Section 5.1(d), notify Borrower in writing,
but the omission so to notify Borrower will not relieve Borrower from any liability which it may have to any Indemnified Party under this Section 5.1(d) or otherwise unless and to the extent that Borrower did not otherwise possess knowledge
of such claim or action and such failure resulted in the forfeiture by Borrower of substantial rights and defenses. In case any such claim is made or action is brought against any Indemnified Party and such Indemnified Party seeks or intends to seek
indemnity from Borrower, Borrower will be entitled to participate in, and, to the extent that it may wish, to assume the defense thereof with counsel reasonably satisfactory to the Lender; and, upon receipt of notice from Borrower to such
Indemnified Party of its election so to assume the defense of such claim or action and only upon approval by the Indemnified Party of such counsel (such approval not to be unreasonably withheld or delayed), Borrower will not be liable to such
Indemnified Party under this Section 5.1(d) for any legal or other expenses subsequently incurred by such Indemnified Party in connection with the defense thereof. Notwithstanding the preceding sentence, each Indemnified Party will be
entitled to employ counsel separate from such counsel for Borrower and from any other party in such action if such Indemnified Party reasonably determines that a conflict of interest exists which makes representation by counsel chosen by Borrower
not advisable. In such event, Borrower shall pay the reasonable fees and disbursements of such separate counsel, subject to reimbursement of such costs if the Indemnified Party requiring such separate counsel is found by a court of competent
jurisdiction not to be entitled to the indemnity protection of this Section 5.1(d). Borrower shall not, without the prior written consent of an Indemnified Party, settle or compromise or consent to the entry of any judgment with respect to
any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not such Indemnified Party is an actual or potential party to such claim or action) unless such settlement,
compromise or consent includes an unconditional release of each Indemnified Party from all liability arising out of such claim, action, suit or proceeding. Each Indemnified Party shall not enter into a settlement of or consent to the entry of any
judgment with respect to any action, claim, suit or proceeding as to which an Indemnified Party would be entitled to indemnification hereunder without the prior written consent of Borrower. 
  
 The provisions of and undertakings and indemnification set forth in this Section
5.1(d) shall survive the satisfaction and payment of the Indebtedness and termination of this Agreement. 
  
 (e) Access to Mortgaged Property. Borrower shall permit agents, representatives and employees of Lender to inspect the Mortgaged Property or any
part thereof at such reasonable times as may be requested by Lender upon reasonable advance written notice, subject, however, to the rights of the tenants of the Mortgaged Property. 
  
 (f) Notice of Default. Borrower shall promptly advise Lender in writing of any change in Borrower’s or First
Mortgage Borrower’s condition, financial or otherwise, which is reasonably likely to have a Material Adverse Effect, or of the occurrence of any Default or Event of Default or any “Event of Default” as such term is defined in the
First Mortgage Loan 

  

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Documents. Borrower will, promptly upon becoming aware thereof, notify the Lender in writing of the occurrence of any material default under any Lease, the
intention of any tenant under a Lease to withhold any fixed or base rent or the actual withholding thereof, or any bankruptcy, insolvency or cessation of operations by any tenant under a Lease. 
  
 (g) Cooperate in Legal Proceedings. Except with respect to any claim
by Borrower, First Mortgage Borrower, Guarantor or any of their Affiliates against the Lender, Borrower shall reasonably cooperate with Lender with respect to any proceedings before any Governmental Authority which that are reasonably likely to in
any way materially affect the rights of Lender hereunder or any rights obtained by Lender under any of the Loan Documents and, in connection therewith, shall not prohibit Lender, at its election, from participating in any such proceedings.

  
 (h) Perform Loan Documents. Borrower shall observe,
perform and satisfy all the terms, provisions, covenants and conditions required to be observed, performed or satisfied by it, and shall pay when due all costs, fees and expenses required to be paid by it, under the Loan Documents and shall cause
First Mortgage Borrower to observe, perform and satisfy all the terms, provisions, covenants and conditions required to be observed, performed or satisfied by it and to pay when due all costs, fees and expenses required to be paid by it, under the
First Mortgage Loan Documents. 
  
 (i) Further Assurances.
Borrower shall, at Borrower’s sole cost and expense: 
  
 (i) upon Lender’s reasonable request therefor given from time to time, pay for (a) reports of UCC, tax lien, judgment and litigation searches with respect to Borrower, and (b) searches of title to the Mortgaged
Property, each such search to be conducted by search firms designated by Lender in each of the locations designated by Lender; 
  
 (ii) furnish to Lender all instruments, documents, certificates, title and other insurance reports and agreements, and each and every
other document, certificate, agreement and instrument required to be furnished pursuant to the terms of the Loan Documents or reasonably necessary to evidence, preserve and/or protect the Collateral at any time securing or intended to secure the
Note; 
  
 (iii) execute and deliver to Lender
such documents, instruments, certificates, assignments and other writings, and do such other acts necessary, to evidence, preserve and/or protect the Collateral at any time securing or intended to secure the Note, as Lender may reasonably require
(including, without limitation, an amended or replacement, UCC financing statement or collateral security instrument); and 
  
 (iv) do and execute all and such further lawful and reasonable acts, conveyances and assurances for the better and more effective carrying
out of the intents and purposes of this Agreement and the other Loan Documents, as Lender shall reasonably require from time to time. 
  

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 (j) Management of Mortgaged Property. 
  
 (i) The Mortgaged Property shall be managed at all times by
the Manager or another manager approved by Lender, pursuant to the Management Agreement. The Management Agreement may be terminated (1) by the First Mortgage Borrower at any time in accordance with the provisions of the Management Agreement so long
as a successor manager as specified below shall have been appointed and such successor manager has (i) entered into a management agreement substantially in the form of the Management Agreement entered into by the previous manager, subject to any
modifications approved by Lender, and (ii) executed and delivered the Manager’s Consent to Lender, and (2) subject to the provisions of the First Mortgage Loan Documents, by Lender upon thirty (30) days’ prior written notice to Borrower
and the Manager (a) upon the occurrence and continuation of an Event of Default or (b) if the Manager commits any act which would permit termination under the Management Agreement (subject to any applicable notice, grace and cure periods provided in
the Management Agreement) or (c) if a change of majority control occurs with respect to the Manager. Notwithstanding the foregoing, any successor manager selected hereunder by Lender or Borrower to manage the Mortgaged Property shall be a reputable
management company having substantial experience in the management of real property of a similar type, size and quality in the state in which the Mortgaged Property is located. Borrower further covenants and agrees that any manager of the Mortgaged
Property shall at all times while any Indebtedness is outstanding maintain worker’s compensation insurance as required by Governmental Authorities. 
  
 (ii) Borrower further covenants and agrees that it shall cause the Mortgaged Property to be operated pursuant to the Management Agreement
and that Borrower shall: (w) cause First Mortgage Borrower to promptly perform and/or observe all of the material covenants and agreements required to be performed and observed by it under the Management Agreement and do all things reasonably
necessary to preserve and to keep unimpaired its material rights thereunder; (x) promptly notify the Lender of any material default under the Management Agreement of which it is aware; (y) promptly deliver to Lender a copy of each financial
statement, business plan, capital expenditures plan, notice and report received by it under the Management Agreement, including, but not limited to, financial statements; and (z) promptly enforce the performance and observance in all material
respects of the covenants and agreements required to be performed and/or observed by the Manager under the Management Agreement. 
  
 (k) Financial Reporting. 
  
 (i) Borrower shall keep and maintain or shall cause to be kept and maintained on a Fiscal Year basis in accordance with GAAP consistently
applied, books, records and accounts reflecting in reasonable detail all of the financial affairs of Borrower. Lender shall have the right from time to time at all times during normal business hours upon reasonable prior written notice to Borrower
and First Mortgage Borrower to examine such books, records and accounts at the office of Borrower and First Mortgage Borrower or other Person maintaining such books, records and accounts and to make such copies or extracts thereof as Lender shall
desire. During the continuation of an uncured Event of Default, Borrower shall pay any reasonable costs and expenses incurred by Lender to 

  

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examine Borrower’s and First Mortgage Borrower’s accounting records, as Lender shall reasonably determine to be necessary or appropriate in the
protection of Lender’s interest. 
  
 (ii)
Borrower shall furnish to Lender annually, within ninety (90) days following the end of each Fiscal Year, a complete copy of Borrower’s financial statements (certified by Borrower (or, following the occurrence and during the continuance of an
Event of Default or if required by the Lender after the Loan has been included in a Secondary Market Transaction in which Securities are issued, audited by a “Big Four” accounting firm or an Independent certified public accountant
acceptable to Lender, (including RBZ, LLP) covering Borrower’s financial position and results of operations, for such Fiscal Year and containing a statement of revenues and expenses, a statement of assets and liabilities and a statement of
Borrower’s equity, all of which shall be in form and substance reasonably acceptable to Lender. Lender shall have the right from time to time to review the auditing procedures used in the preparation of such annual financial statements and to
request additional procedures. Together with Borrower’s annual financial statements, Borrower shall furnish to Lender an Officer’s Certificate certifying as of the date thereof (x) that the annual financial statements present fairly in all
material respects the results of operations and financial condition of Borrower all in accordance with GAAP consistently applied, and (y) whether there exists an Event of Default or Default, and if such Event of Default or Default exists, the nature
thereof, the period of time it has existed and the action then being taken to remedy same. 
  
 (iii) Borrower shall furnish to Lender, within sixty (60) days following the end of each Fiscal Year quarter true, complete and correct
quarterly unaudited financial statements prepared with respect to Borrower for the fiscal quarter then ended, accompanied by an Officer’s Certificate certifying that such financial statements are true, complete and correct. 
  
 (iv) Borrower shall cause First Mortgage Borrower to deliver
to Lender copies of all financial reports prepared by First Mortgage Borrower pursuant to the First Mortgage Loan Documents and delivered to the First Mortgage Lender thereunder. 
  
 (v) Borrower shall furnish to Lender, within fifteen (15) Business Days after request, such further
information with respect to the operation of the Mortgaged Property, the Loan and the financial affairs of Borrower and First Mortgage Borrower as may be reasonably requested by Lender, including all business plans prepared for Borrower and First
Mortgage Borrower. 
  
 (vi) Borrower shall
furnish to Lender, within fifteen (15) Business Days after request, such further information regarding any Plan or Multiemployer Plan and any reports or other information required to be filed under ERISA as may be reasonably requested by Lender.

  
 (vii) At least thirty (30) days prior to the
end of each of Borrower’s Fiscal Years, Borrower shall submit or cause to be submitted to Lender for its approval, such approval not to be unreasonably withheld or delayed, the Operating Budget for the next Fiscal Year for the Mortgaged
Property. Until so approved by Lender for the subsequent 

  

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Fiscal Year, the Operating Budget approved by Lender for the preceding Fiscal Year shall remain in effect for purposes of Section 2.12;
provided, that for so long as such prior Operating Budget remains in effect, amounts set forth in the prior Operating Budget with respect to Property Expenses shall be deemed increased on a percentage basis by an amount equal to the greater
of (x) actual increases then known to Borrower and (y) the increase in the Consumer Price Index (expressed as a percentage) as measured over the calendar year that the prior Operating Budget was in effect. No more often that once per fiscal quarter,
Borrower may submit an amendment to an Operating Budget during the Fiscal Year covered by such Operating Budget. If Lender does not respond to Borrower’s request for approval of a new or amended Operating Budget within ten (10) days after
Lender’s receipt of such request, Borrower may send a second request for approval. Such second request shall contain on the face thereof, in large, bold and otherwise conspicuous font, the following notice: “TIME SENSITIVE BUDGET
APPROVAL REQUEST. LENDER’S FAILURE TO RESPOND TO THIS REQUEST WITHIN TEN (10) DAYS AFTER LENDER’S RECEIPT OF THE SAME SHALL BE DEEMED AN APPROVAL BY LENDER.” Provided that Borrower’s second request contains the above notice,
Lender’s failure to respond to such request within ten (10) days after receipt of such second notice shall be deemed an approval by Lender. 
  
 (viii) Borrower shall not permit First Mortgage Borrower to deposit in the Other Property Expenses Account on a Payment Date pursuant to Section
2.12(a) of the First Mortgage Loan Agreement more than 110% of monthly Property Expenses (as such term is defined in the First Mortgage Loan Agreement) projected by First Mortgage Borrower to be incurred during the applicable period commencing
on such Payment Date and ending on the next Payment Date as set forth in the Operating Budget for the applicable Fiscal Year without the prior consent of the Lender. 
  
 (l) Single-Purpose Entity. 
  

(i) Borrower at all times will continue to be a duly formed and validly existing limited liability company under the laws of the State
of its formation and a Single-Purpose Entity. 
  
 (ii) Borrower shall at all times comply with the provisions of its Organizational Agreements and the laws of the State of its formation relating to limited liability companies. 
  
 (iii) Borrower shall observe all customary formalities regarding its existence. 
  
 (iv) Borrower shall accurately maintain its financial
statements, accounting records and other corporate documents separate from those of its members or shareholders, Affiliates of its members or shareholders and any other Person. Borrower shall not commingle its assets with those of its members or
shareholders, any Affiliates of its members or shareholders, or any other Person. Borrower shall continue to accurately maintain its own bank accounts and separate books of account. 
  

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 (v) Borrower shall continue to pay its own liabilities from its own separate assets.

  
 (vi) Borrower shall continue to identify
itself in all dealings with the public, under its own name or trade names and as a separate and distinct entity. Borrower will not identify itself as being a division or a part of any other entity. Borrower will not identify its members or any
Affiliates of its members as being a division or part of Borrower. 
  
 (vii) Borrower shall continue to be adequately capitalized in light of the nature of its business. 
  
 (viii) Borrower shall not assume or guarantee the liabilities of its members (or any predecessor entity), any Affiliates of its members or
any other Persons, except for liabilities relating to the Mortgaged Property and except as permitted by or pursuant to this Agreement. Borrower shall not acquire obligations or securities of its members (or any predecessor entity), or any Affiliates
of its members or any other Person (other than First Mortgage Borrower). Borrower shall not make loans to its members (or any predecessor entity), or any Affiliates of its members or any other Person. 
  
 (ix) Borrower shall not enter into or be a party to any
transaction with its members (or any predecessor entity) or any Affiliates of its members, except for in the ordinary course of business on terms which are no less favorable to Borrower than would be obtained in a comparable arm’s length
transaction with an unrelated third party. 
  
 (m) ERISA.
Borrower shall deliver to Lender as soon as possible, and in any event within ten days after Borrower knows or has reason to believe that any of the events or conditions specified below with respect to any Plan or Multiemployer Plan has occurred or
exists, an Officer’s Certificate setting forth details respecting such event or condition and the action, if any, that Borrower or its ERISA Affiliate proposes to take with respect thereto (and a copy of any report or notice required to be
filed with or given to PBGC by Borrower or an ERISA Affiliate with respect to such event or condition): 
  
 (i) any reportable event, as defined in Section 4043(b) of ERISA and the regulations issued thereunder, with respect to a Plan, as to
which PBGC has not by regulation waived the requirement of Section 4043(a) of ERISA that it be notified within thirty (30) days of the occurrence of such event (provided that a failure to meet the minimum funding standard of Section 412 of the Code
or Section 302 of ERISA, including, without limitation, the failure to make on or before its due date a required installment under Section 412(m) of the Code or Section 302(e) of ERISA, shall be a reportable event regardless of the issuance of any
waivers in accordance with Section 412(d) of the Code); and any request for a waiver under Section 412(d) of the Code for any Plan; 
  
 (ii) the distribution under Section 4041 of ERISA of a notice of intent to terminate any Plan or any action taken by Borrower or an ERISA
Affiliate to terminate any Plan; 
  

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 (iii) the institution by PBGC of proceedings under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan, or the receipt by Borrower or any ERISA Affiliate of Borrower of a notice from a Multiemployer Plan that such action has been taken by PBGC with respect to such Multiemployer
Plan; 
  
 (iv) the complete or partial withdrawal
from a Multiemployer Plan by Borrower or any ERISA Affiliate of Borrower that results in material liability under Section 4201 or 4204 of ERISA (including the obligation to satisfy secondary liability as a result of a purchaser default) or the
receipt by Borrower or any ERISA Affiliate of Borrower of notice from a Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA or that it intends to terminate or has terminated under Section 4041A of
ERISA; 
  
 (v) the institution of a proceeding by
a fiduciary of any Multiemployer Plan against Borrower or any ERISA Affiliate of Borrower to enforce Section 515 of ERISA, which proceeding is not dismissed within thirty (30) days; 
  
 (vi) the adoption of an amendment to any Plan that, pursuant to Section 401(a)(29) of the Code or Section
307 of ERISA, would result in the loss of tax-exempt status of the trust of which such Plan is a part if Borrower or an ERISA Affiliate of Borrower fails to timely provide security to the Plan in accordance with the provisions of said Sections; and

  
 (vii) the imposition of a lien or a security
interest in connection with a Plan. 
  
 (n) Environmental
Events. 
  
 (i) Borrower will promptly give
notice to the Lender 
  
 (1) upon Borrower
obtaining knowledge of any potential or known Release, or threat of Release, of any Hazardous Substances in any material respect at or from the Mortgaged Property; 
  
 (2) of any violation of any Environmental Law that First Mortgage Borrower reports in writing or is
reportable by such Person in writing (or for which any written report supplemental to any oral report is made) to any federal, state or local environmental agency; and 
  
 (3) upon becoming aware thereof, of any inquiry, proceeding, investigation, or other action, including a
notice from any agency of potential environmental liability, of any federal, state or local environmental agency or board, that in either case involves the Mortgaged Property or has the potential to materially adversely affect the assets,
liabilities, financial conditions or operations of Borrower or First Mortgage Borrower or the Lender’s liens or security title on the Collateral pursuant to the Loan Documents. 
  

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 (ii) Borrower will not permit First Mortgage Borrower to do any of the following:

  
 (1) use any of the Mortgaged Property or any
portion thereof as a facility for the handling, processing, storage or disposal of Hazardous Substances, except for small quantities of Hazardous Substances used in the ordinary course of business and in compliance with all applicable Environmental
Laws and the presence of asbestos or asbestos containing materials located in the improvements as of the date hereof which are to be maintained, contained and removed in accordance with the terms of the First Mortgage Loan Documents and this
Agreement, 
  
 (2) cause or permit to be located
on the Mortgaged Property any underground tank or other underground storage receptacle for Hazardous Substances except in full compliance with Environmental Laws, 
  
 (3) generate any Hazardous Substances on the Mortgaged Property, 
  
 (4) conduct any activity at the Mortgaged Property or use
the Mortgaged Property in any manner so as to cause a Release of Hazardous Substances on, upon or into the Mortgaged Property or any surrounding properties or any threatened Release of Hazardous Substances which might give rise to liability under
any Environmental Law, or 
  
 (5) directly or
indirectly transport or arrange for the transport of any Hazardous Substances (except in compliance with all Environmental Laws). 
  
 (iii) Borrower shall, if any Release or disposal of Hazardous Substances shall occur or shall have occurred on the Mortgaged Property
(including without, limitation, any such Release or disposal occurring prior to the acquisition of such Mortgaged Property by First Mortgage Borrower), cause First Mortgage Borrower to cause the prompt containment and removal of such Hazardous
Substances and remediation of the Mortgaged Property in full compliance with all applicable laws and regulations and to the reasonable satisfaction of the Lender; provided, that Borrower shall be deemed to be in compliance with Environmental
Laws for the purpose of this subparagraph (iii) so long as First Mortgage Borrower or a responsible third party with sufficient financial resources is taking reasonable action to remediate or manage any event of noncompliance to the satisfaction of
the Lender and no action shall have been commenced by any enforcement agency. The Lender may engage its own Environmental Auditor to review the environmental assessments and Borrower’s compliance with the covenants contained herein. 

 
 (o) Environmental Matters. At any time after an Event of Default
shall have occurred hereunder, or, whether or not an Event of Default shall have occurred, at any time that the Lender shall have reasonable grounds to believe that a Release or threatened Release of Hazardous Substances may have occurred, relating
to the Mortgaged Property, or that the Mortgaged Property is not in compliance with the Environmental Laws, the Lender may at its election obtain such environmental assessments of the Mortgaged Property prepared by an Environmental Auditor as may be
necessary or advisable for the purpose of evaluating or confirming (i) whether any Hazardous Substances are present in the soil or water at or adjacent 

  

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to the Mortgaged Property and (ii) whether the use and operation of the Mortgaged Property comply with all Environmental Laws. Environmental assessments may
include detailed visual inspections of the Mortgaged Property (including, without limitation, any and all storage areas, storage tanks, drains, dry wells and leaching areas), and the taking of soil samples, as well as such other investigations or
analyses as are necessary or appropriate for a complete determination of the compliance of the Mortgaged Property and the use and operation thereof with all applicable Environmental Laws. All such environmental assessments shall be at the sole cost
and expense of the Borrower. 
  
 (p) Insurance. 

 
 (i) Borrower will cause First Mortgage Borrower, at its
expense, to procure and maintain the insurance policies required by the First Mortgage Loan Documents. Each commercial general liability or umbrella liability policy with respect to the Mortgaged Property shall name the Lender as an additional
insured and shall contain a cross liability/severability endorsement. Borrower shall deliver duplicate originals or certified copies of all such policies to the Lender, and Borrower shall promptly furnish to the Lender all renewal notices and
evidence that all premiums or portions thereof then due and payable have been paid. At least 30 days prior to the expiration date of all such policies, Borrower shall deliver to the Lender evidence of continued coverage, including a certificate of
insurance, as may be reasonably satisfactory to the Lender. 
  
 (ii) In the event of any loss or damage to the Mortgaged Property, Borrower shall cause First Mortgage Borrower to give prompt written notice to the insurance carrier and the Lender. The Lender acknowledges that First
Mortgage Borrower’s rights to any insurance proceeds are subject to the terms of the First Mortgage Loan Documents. Subject to the rights of the First Mortgage Lender contained in the First Mortgage Loan Documents, Borrower may not and shall
not permit First Mortgage Borrower to settle, adjust or compromise any claim under such insurance policies without the prior written consent of the Lender; provided, further, that Borrower may permit First Mortgage Borrower to make
proof of loss and adjust and compromise any claim under casualty insurance policies which is of an amount less than $10,000 so long as no Default or Event of Default has occurred. Any proceeds of such claim which are not used to reconstruct or
repair the Mortgaged Property, or applied to the balance of the loan evidenced by the First Mortgage Loan Documents, shall be paid to the Lender and applied to the payment of the Indebtedness. 
  
 (iii) In the event that First Mortgage Borrower is permitted
pursuant to the terms of the First Mortgage Loan Documents to reconstruct, restore or repair the Mortgaged Property following a casualty to any portion of the Mortgaged Property, Borrower shall cause First Mortgage Borrower to promptly and
diligently repair and restore the Mortgaged Property in the manner and within the time periods required by the First Mortgage Loan Documents, the Leases and any other agreements affecting the Mortgaged Property. In the event that First Mortgage
Borrower is permitted pursuant to terms of the First Mortgage Loan Documents to elect to not reconstruct, restore or repair the Mortgaged Property following a casualty to any portion of the Mortgaged Property, 

  

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Borrower shall not permit First Mortgage Borrower to elect not to reconstruct, restore or repair the Mortgaged Property without the prior written consent of
the Lender. 
  
 (q) Condemnation. In the event that all or
any portion of the Mortgaged Property shall be damaged or taken through condemnation (which term shall include any damage or taking by any governmental authority, quasi-governmental authority, any party having the power of condemnation, or any
transfer by private sale in lieu thereof), or any such condemnation shall be threatened, Borrower shall give prompt written notice to the Lender. The Lender acknowledges that First Mortgage Borrower’s rights to any condemnation award is subject
to the terms of the First Mortgage Loan Documents. Subject to the rights of the First Mortgage Lender contained in the First Mortgage Loan Documents, Borrower may not and shall not permit First Mortgage Borrower to settle or compromise any claim,
action or proceeding relating to such damage or condemnation without the prior written consent of the Lender; provided, further, that Borrower may permit First Mortgage Borrower to settle, adjust and compromise any such claim, action
or proceeding which is of an amount less than $1,000,000 so long as no Default or Event of Default has occurred. Any proceeds, award or damages from such damage or condemnation which are not used to reconstruct or repair the Mortgaged Property, or
applied to the balance of the loan evidenced by the First Mortgage Loan Documents, shall be paid to the Lender and applied to the payment of the Indebtedness. In the event that First Mortgage Borrower is permitted pursuant to the terms of the First
Mortgage Loan Documents to reconstruct, restore or repair the Mortgaged Property following a condemnation of any portion of the Mortgaged Property, Borrower shall cause First Mortgage Borrower to promptly and diligently repair and restore the
Mortgaged Property in the manner and within the time periods required by the First Mortgage Loan Documents, the Leases and any other agreements affecting the Mortgaged Property. In the event that First Mortgage Borrower is permitted pursuant to the
terms of the Mortgage to elect not to reconstruct, restore or repair the Mortgaged Property following a condemnation of any portion of the Mortgaged Property, Borrower shall not permit First Mortgage Borrower to elect not to reconstruct, restore or
repair the Mortgaged Property without the prior written consent of the Lender. 
  
 (r) Preservation and Maintenance. 
  
 (i) Borrower 
  
 (1) shall not permit or commit, and shall not permit First Mortgage Borrower to permit or commit, waste, impairment, or deterioration of the Mortgaged Property or permit First Mortgage Borrower to abandon the Mortgaged Property, 

 
 (2) shall cause First Mortgage Borrower to restore or
repair promptly and in a good and workmanlike manner all or any part of the Mortgaged Property in the event of any damage, injury or loss thereto, to the equivalent of its condition prior to such damage, injury or loss, or such other condition as
the Lender may approve in writing, 
  
 (3) shall
cause First Mortgage Borrower to keep the Mortgaged Property, including the improvements and any fixtures, equipment, machinery and 

  

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personal property, in good order, repair and tenantable condition (subject to ordinary wear and tear) and shall replace fixtures, equipment, machinery and
personal property on the Mortgaged Property when necessary to keep such items in good order, repair, and tenantable condition, and 
  
 (4) shall cause First Mortgage Borrower to keep all trademarks, tradenames, servicemarks and licenses and permits necessary for the use
and occupancy of the Mortgaged Property in good standing and in full force and effect. Neither Borrower, First Mortgage Borrower nor any tenant or other Person shall remove, demolish or alter any improvements now existing or hereafter erected on the
Mortgaged Property or any other fixtures, equipment, machinery or personal property in or on the Mortgaged Property except when incident to the replacement of fixtures, equipment, machinery or other personal property with items of like kind and
value. 
  
 In the event that First Mortgage Borrower shall remove any asbestos or
asbestos-containing materials after the date hereof, such removal shall be performed in accordance with all applicable laws and, upon the request of the Lender, Borrower shall provide evidence of such compliance to the Lender. 
  
 (ii) Provided that no Event of Default shall have occurred
and be continuing hereunder, Borrower may permit First Mortgage Borrower to undertake any alteration, improvement, demolition or removal of Mortgaged Property or any portion thereof (an “Alteration”) so long as such
Alteration 
  
 (1) is performed strictly in
compliance with the terms and conditions of the First Mortgage Loan Documents, 
  
 (2) is permitted by the Leases, 
  
 (3) shall not materially adversely effect the value of the Mortgaged Property taken as a whole or materially reduce the income from the
level available immediately prior to commencement of such Alteration, 
  
 (4) shall not have a Material Adverse Effect, and 
  
 (5) was approved as a part of the current Operating Budget. Any other Alteration shall require the prior written consent of the Lender.

  
 All work performed in connection with any Alteration shall be performed in
accordance with all applicable laws. Borrower shall cause First Mortgage Borrower to provide to the Lender such evidence as the Lender may reasonably require to evidence First Mortgage Borrower’s compliance with the terms of this Agreement in
connection with any Alteration. 
  
 (iii)
Borrower shall cause First Mortgage Borrower to comply with, observe and perform in all material respects all zoning and other laws affecting the Mortgaged Property, all agreements and other covenants affecting the Mortgaged Property (including
without limitation the First Mortgage Loan Documents), and all licenses and permits affecting the Mortgaged Property. 
  

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 (s) Leases and Rents. 
  
 (i) All Leases entered into by First Mortgage Borrower shall provide for rental rates comparable to
then-existing local market rates and terms and conditions commercially reasonable and consistent with then-prevailing local market terms and conditions for similar type properties, including commercially reasonable leasing commissions. Borrower
shall not enter into a Major Lease without the prior written consent of the Lender, which consent shall not be unreasonably withheld or delayed. Borrower shall furnish Lender with (1) detailed term sheets in advance in the case of any Leases,
modifications, amendments or renewals for which Lender’s consent is required and (2) in the case of any other Leases, executed copies of such Leases upon written request. All renewals or amendments or modifications of Leases that do not satisfy
the requirements of the first sentence of this Section 5.1(s)(i) shall be subject to the prior approval of Lender. All Leases shall be written on the standard lease form previously approved by Lender which form shall not be materially changed
without Lender’s prior written consent. All Leases executed after the date hereof shall provide that they are subordinate to the First Mortgage, and that the lessee agrees to attorn to First Mortgage Lender. Borrower shall, or shall cause First
Mortgage Borrower to, 
  
 (A) observe and perform
all of the material obligations imposed upon the lessor under the Leases and shall not do or permit to be done anything to materially impair the value of the Leases as security for the Indebtedness; 
  
 (B) promptly send copies to Lender of all written notices of
default which First Mortgage Borrower shall send or receive thereunder; 
  
 (C) enforce all of the material terms, covenants and conditions contained in the Leases upon the part of the lessee thereunder to be observed or performed and shall effect a termination or diminution of the
obligations of tenants under leases, only in a manner that a prudent owner of a similar property to the Mortgaged Property would enforce such terms covenants and conditions or effect such termination or diminution in the ordinary course of business;

  
 (D) not collect any of the Rents more than
one (1) month in advance; 
  
 (E) not execute any
other assignment of lessor’s interest in the Leases or Rents; and 
  
 (F) not convey or transfer or suffer or permit a conveyance or transfer of the Mortgaged Property or of any interest therein so as to effect a merger of the estates and rights of, or a termination or diminution of the
obligations of, lessees thereunder. 
  
 (ii)
Borrower shall cause First Mortgage Borrower to deposit security deposits of lessees which are turned over to or for the benefit of First Mortgage Borrower or otherwise collected by or on behalf of First Mortgage Borrower into one or more Eligible
Accounts in accordance with the First Mortgage Loan Agreement, and not to commingle such funds with any other funds of First Mortgage Borrower. Any bond or other 

  

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instrument which First Mortgage Borrower is permitted to hold in lieu of cash security deposits under any applicable Legal Requirements shall be maintained
in full force and effect unless replaced by cash deposits as hereinabove described, shall, if permitted pursuant to Legal Requirements, name Lender as payee or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender) and
shall, in all respects, comply with any applicable Legal Requirements and otherwise be reasonably satisfactory to Lender. Borrower shall, upon request, provide Lender with evidence reasonably satisfactory to Lender of Borrower’s compliance with
the foregoing. 
  
 (t) Secondary Market Transaction.
Borrower acknowledges that Lender and its successors and assigns may (i) sell the Loan to one or more investors as a whole loan, (ii) participate the Loan to one or more investors, (iii) deposit the Loan with a trust, which trust may sell
certificates to investors evidencing an ownership interest in the trust assets, or (iv) otherwise sell the Loan or interest therein to investors (the transactions referred to in clauses (i) through (iv) above are hereinafter each
referred to as a “Secondary Market Transaction”). Borrower shall cooperate with Lender in attempting to effect or effecting any such Secondary Market Transaction and shall cooperate in attempting to implement or implementing
all requirements imposed by any Rating Agency involved in any Secondary Market Transaction, including but not limited to, 
  
 (i) providing Lender an estoppel certificate and such information, legal opinions and documents (including updated non-consolidation
opinions) relating to Borrower, the Guarantor, the Mortgaged Property and any tenants of the Mortgaged Property as Lender or the Rating Agencies or other Interested Parties (as defined below), may reasonably request in connection with such Secondary
Market Transaction, including, without limitation, updated financial information, appraisals, market studies, environmental reviews (Phase I’s and, if appropriate, Phase II’s), Mortgaged Property condition reports and other due diligence
investigations together with appropriate verification of such updated information and reports through letters of auditors and consultants, as of the closing date of the Secondary Market Transaction, 
  
 (ii) amending the Loan Documents and Organizational
Agreements of Borrower, updating and/or restating officer’s certificates, title insurance and other closing items, and providing updated representations and warranties in Loan Documents and such additional representations and warranties as may
be required by Lender or the Rating Agencies, 
  
 (iii) participating in bank, investors and Rating Agencies’ meetings if requested by Lender, 
  
 (iv) upon Lender’s request, amending the Loan Documents (and updating and/or restating officer’s certificates, title insurance
and other closing items in connection therewith) to divide the Loan into a first and a second mortgage loan, or into a one or more loans secured by mortgages and by ownership interests in Borrower in whatever proportion Lender determines, which
separated loans may have different interest rates and amortization schedules (but with aggregated financial terms which are equivalent to that of the Loan prior to such separation, including, so long as an Event of Default has 

  

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not occurred and is not continuing, a ratable allocation of prepayments among the Loan components) and thereafter to engage in separate Secondary Market
Transactions with respect to all or any part of the indebtedness and loan documentation, and 
  
 (v) reviewing the offering documents relating to any Secondary Market Transaction to ensure that all information concerning Borrower, the
Guarantor, the Mortgaged Property, and the Loan is correct, and certifying to the accuracy thereof. 
  
 Lender shall be permitted to share all such information with the investment banking firms, Rating Agencies, accounting firms, law firms and other third-party advisory firms and trustees, purchasers, transferees,
assignees, trustees, servicers and actual or potential investors involved with the Loan and the Loan Documents or the applicable Secondary Market Transaction (collectively, “Interested Parties”). Lender and all of the
aforesaid Interested Parties shall be entitled to rely on the information supplied by, or on behalf of, Borrower. Lender may publicize the existence of the Loan in connection with its marketing for a Secondary Market Transaction or otherwise as part
of its business development. Borrower shall provide such reasonable access to the Mortgaged Property and personnel of the Manager and of Borrower’s constituent members and the business and operations of all of the foregoing as Lender or other
Interested Parties may request in connection with any such Secondary Market Transaction. Borrower understands that any such information may be incorporated into any offering circular, prospectus, prospectus supplement, private placement memorandum
or other offering documents for any Secondary Market Transaction. Without limiting the foregoing, Borrower and Guarantor shall provide in connection with each of (i) a preliminary and a final private placement memorandum or (ii) a preliminary and
final prospectus or prospectus supplement, as applicable (the documents referred to in the foregoing clauses (i) and (ii), collectively, the “Disclosure Documents”), an agreement certifying that Borrower and Guarantor have
examined such Disclosure Documents specified by Lender and that each such Disclosure Document, as it relates to Borrower, Guarantor, any Affiliates, the Mortgaged Property and Manager, does not contain any untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading (a “Disclosure Certificate”). Borrower and Guarantor shall indemnify,
defend, protect and hold harmless Lender, its Affiliates, directors, employees, agents and each Person, if any, who controls Lender or any such Affiliate within the meaning of Section 15 of the Securities Act of 1933 or Section 20 of the Securities
Exchange Act of 1934, and any other placement agent or underwriter with respect to any Securitization or Secondary Market Transaction from and against any losses, claims, damages, liabilities, costs and expenses (including, without limitation,
reasonable attorneys’ fees and disbursements) that arise out of or are based upon any untrue statement of any material fact contained in any Disclosure Certificate or other information or documents furnished by Borrower, Guarantor or their
Affiliates or in any representation or warranty of any Borrower contained herein or in the other Loan Documents or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated in such
information or necessary in order to make the statements in such information not materially misleading. In any Secondary Market Transaction, Lender may transfer its obligations under this Loan Agreement and under the other Loan Documents (or may
transfer the portion thereof corresponding to the transferred portion of the Indebtedness), and thereafter Lender shall be relieved of any obligations hereunder and under the other Loan Documents arising after the date of said transfer with respect
to the transferred interest. Each transferee investor shall become a 

  

 70 

 
“Lender” hereunder. The holders from time to time of the Loan and/or any other interest of the “Lender” under this Loan Agreement and the
other Loan Documents may from time to time enter into one or more co-lender or similar agreements in their discretion. Borrower acknowledges and agrees that such agreements, as the same may from time to time be amended, modified or restated, may
govern the exercise of the powers and discretionary authority of the Lender hereunder and under the other Loan Documents, but Borrower shall be entitled to rely upon any actions taken by Lender or the designated servicer(s) or agent(s) for Lender,
whether or not within the scope of its power and authority under such other agreements. The Lender shall be responsible for the payment of the reasonable out-of-pocket expenses incurred by the Borrower in connection with complying with this
Section 5.1(t). 
  
 (u) Qualified Interest Rate Cap
Provider. If the rating of a Qualified Interest Rate Cap Provider that has provided an interest rate cap which Borrower pledges to the Lender pursuant to the Collateral Assignment of Hedge falls below the rating criteria specified in the
definition of a Qualified Interest Rate Cap Provider, then within ten (10) Business Days following written request from Lender, the Borrower shall deliver to Lender a replacement interest rate cap satisfying all of the criteria set forth in
Section 3.1 (as of the Closing Date). 
  
 (v) Prohibited
Person. Borrower shall deliver (from time to time) to Lender any certification or other evidence as may be requested by Lender in its sole and absolute discretion, confirming that: (i) neither Borrower, Guarantor nor their respective officers,
directors, members or Affiliates, if applicable (including, without limitation, the indirect holders of equity interests in Borrower) is a Prohibited Person; and (ii) neither Borrower, Guarantor nor their respective shareholders, partners, members
or Affiliates, if applicable (including, without limitation, the indirect holders of equity interests in Borrower) has engaged in any business, transaction or dealings with a Prohibited Person, including, but not limited to, the making or receiving
of any contribution of funds, goods, or services, to or for the benefit of a Prohibited Person. 
  
 (w) Construction Period. Borrower shall cause the Renovation to be commenced on the Commencement Date, and shall thereafter diligently prosecute
such Renovation to completion on or prior to the Completion Date, subject to Excusable Delays. 
  
 (x) Construction Consultant’s Inspections. Lender may require an inspection upon reasonable notice and at reasonable times of the Mortgaged Property and Improvements by the Construction Consultant (a)
prior to each Advance disbursement, (b) at least once each month during the course of construction, whether or not any Advance disbursement is to be made for such month, (c) upon completion of the Renovation of the Improvements, and (d) at least
annually thereafter so long as any of Borrower’s obligations hereunder have not been satisfied or the Loan or any part thereof remains outstanding, and for any applicable statute of limitations period thereafter. Borrower shall pay the fees and
costs of the Construction Consultant for its inspections; provided, however, that if Lender or the Construction Consultant reasonably determines that extra services will be required in connection with any such inspection due to
noncompliance with the Renovation Plans, or deviations from acceptable construction practices, then Borrower shall pay the costs of all such extra services at the reasonable hourly rate then charged by the Construction Consultant. 
  

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 (y) Construction Opinion Letters; Construction Project Memoranda. 
  
 (i) In connection with any proposed amendment to the Capital
Budget by Borrower, Borrower shall provide Lender and Construction Consultant with Construction Documents, together with a written letter requesting Construction Consultant to review such Construction Documents. Within twenty (20) Business Days
after receipt of a complete set of Construction Documents with respect to a portion of the Renovation, Construction Consultant shall deliver a Construction Opinion Letter to Lender. Borrower shall continue to submit all Task Orders and subcontracts
to Construction Consultant in connection with the portion of the Renovation covered by a previously delivered Construction Opinion Letter. Upon receipt of the same, Construction Consultant shall deliver to Lender (in Lender’s reasonable
discretion) either an updated Construction Opinion Letter within twenty (20) Business Days, or a Construction Project Memorandum within ten (10) Business Days. 
  

(ii) Upon execution of the same, Borrower shall provide Lender and Construction Consultant with all Consulting Contracts, Task Orders
and other contracts in connection with indirect costs (i.e. soft costs) for which complete Construction Documents do not yet exist. Within ten (10) Business Days after receipt of the same, Construction Consultant shall deliver to Lender a
Construction Project Memorandum. 
  
 (z) Stored Materials.
Any requests for disbursements which in whole or in part relate to materials, equipment or furnishings which are owned by Borrower and are not incorporated into the Mortgaged Property as of the date of the request for disbursement, but are to be
temporarily stored at the Mortgaged Property, shall be subject to approval by Lender in its sole discretion for disbursement (subject to satisfaction of the other disbursement conditions set forth herein) to the extent such request relates to such
stored materials, and shall be subject to receipt by Lender of: 
  
 (i) proof satisfactory to Lender that such stored materials are included within the coverages of insurance policies carried by Borrower or proof of other insurance which has been approved by Lender; 
  
 (ii) evidence satisfactory to Lender that the ownership of
such materials is vested in Borrower and such ownership is free of any Liens and claims of third parties; 
  
 (iii) evidence satisfactory to Lender that such materials are protected against theft or damage; and 
  
 (iv) certification of Borrower and Construction Consultant
that such materials stored at the Mortgaged Property have been inspected by Borrower and Construction Consultant and that such materials are the same materials as described in Borrower’s draw request certification. 
  
 Lender may require a separate security agreement and UCC financing statements
to cover any such materials, equipment or furnishings so stored at the Mortgaged Property and such other information and assurances as Lender may require. 
  

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 (aa) Capital Budget; Leasing Budget. Borrower shall not expend any funds in a line item of the
Capital Budget and the Leasing Budget except for its intended purpose without Lender’s prior written consent, which consent may be withheld in Lender’s reasonable discretion. In the event Borrower desires to amend, modify or otherwise
change the Capital Budget or Leasing Budget, a request for approval of any change shall be submitted to the Lender as part of a certified revised Capital Budget or Leasing Budget signed by Borrower and the Guarantor, and, where applicable, the
Architects, General Contractors and any sureties. Any reallocation of amounts between cost items and any allocation of any contingency to any specific cost item shall require the prior written approval of the Lender. As conditions to its approval,
Lender may require evidence reasonably satisfactory to it of the reasons for the proposed change. Lender’s approval of any modifications to the Capital Budget in connection with new Construction Contracts that are let by Borrower, and/or
existing Construction Contracts that are modified, will be conditioned upon the Construction Consultant’s review of the relevant Construction Documents, and delivery of an acceptable Construction Opinion Letter or Construction Project
Memorandum, as applicable. Lender’s approval of any modifications to the Leasing Budget will be based upon the TI Costs required under new Leases approved by Lender in accordance with Section 5.1(s), and the leasing commissions incurred
in connection with such new Leases. 
  
 (bb) Cost Overruns;
Cost Savings. Lender and its servicer shall be kept fully advised as to any and all material cost overruns and material cost savings with respect to the Renovation. Within five (5) days of becoming aware of such material cost overruns or
material cost savings, Borrower shall provide Lender and its servicer with all available information and documentation regarding such cost overruns and cost savings and an explanation as to how such cost overruns shall be paid for or cost savings
reallocated. No portion of the Capital Budget and the Leasing Budget (other than the “contingency” line item) may be used for payment of any cost overruns. In the event of an occurrence of a material cost overrun, Lender may require
Borrower to escrow the funds necessary to pay for same. Cost savings shall be reallocated to reduce the Capital Budget and the Leasing Budget Project Costs. 
  
 ARTICLE VI 
 NEGATIVE COVENANTS

  
 Section 6.1. Negative Covenants. Borrower covenants
and agrees that, until payment in full of the Indebtedness, it will not do, directly or indirectly, any of the following unless Lender consents thereto in writing: 
  
 (a) Liens on the Collateral. Incur, create, assume, become or be liable in any manner with respect to, or permit to
exist, any Lien with respect to the Collateral, except Liens in favor of Lender. 
  
 (b) Ownership and Transfer. Except as expressly permitted by or pursuant to this Agreement or the Loan Documents (including a Permitted Transfer), own any property of any kind other than the Collateral, or
Transfer or permit a Transfer of the Collateral or an interest therein. 
  

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 (c) Other Borrowings. Incur, create, assume, become or be liable in any manner with respect to
Other Borrowings. 
  
 (d) Dissolution; Merger or
Consolidation. Dissolve, terminate, liquidate, merge with or consolidate into another Person. 
  
 (e) Change In Business. Cease to be a Single-Purpose Entity, or make any material change in the scope or nature of its business objectives,
purposes or operations, or undertake or participate in activities other than the continuance of its present business. 
  
 (f) Debt Cancellation. Cancel or otherwise forgive or release any material claim or debt owed to Borrower by any Person, except for adequate
consideration or in the ordinary course of Borrower’s business. 
  
 (g) Affiliate Transactions. Except as listed on Schedule 7, enter into, or be a party to, any transaction with an Affiliate of Borrower, except in the ordinary course of business and on terms which are fully disclosed to
Lender in advance and are no less favorable to Borrower or such Affiliate than would be obtained in a comparable arm’s length transaction with an unrelated third party. 
  
 (h) Major Decision. Make or execute or cause First Mortgage Borrower to make or execute a Major Decision. 

 
 (i) Misapplication of Funds. Distribute any Moneys received from
First Mortgage Borrower in violation of the provisions of Section 2.12. 
  
 (j) Certain Restrictions. Enter into any agreement which expressly restricts the ability of Borrower to enter into amendments, modifications or waivers of any of the Loan Documents. 
  
 (k) Place of Organization. Change its jurisdiction of organization,
creation or formation, as applicable, without in each case giving Lender at least fifteen (15) days’ prior written notice thereof and promptly providing Lender such information as Lender may reasonably request in connection therewith.

  
 (l) Management Agreement. Except in accordance with
this Agreement, authorize, cause, permit or suffer First Mortgage Borrower to (i) terminate or cancel the Management Agreement, (ii) consent to either the reduction of the term of or the assignment of the Management Agreement, (iii) increase or
consent to the increase of the amount of any charges under the Management Agreement, or (iv) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under, the Management Agreement in any material
respect. 
  
 (m) Plans and Welfare Plans. Knowingly engage
in or permit any transaction in connection with which Borrower or any ERISA Affiliate could be subject to either a material civil penalty or tax assessed pursuant to Section 502(i) or 502(1) of ERISA or Section 4975 of the Code, permit any Welfare
Plan to provide benefits, including without limitation, medical benefits (whether or not insured), with respect to any current or former employee of Borrower 

  

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beyond his or her retirement or other termination of service other than (i) coverage mandated by applicable law, (ii) death or disability benefits that have
been fully provided for by paid up insurance or otherwise or (iii) severance benefits (unless such coverage is provided after notification of and with the reasonable approval of Lender), permit the assets of Borrower to become “plan
assets”, whether by operation of law or under regulations promulgated under ERISA or adopt, amend (except as may be required by applicable law) or increase the amount of any benefit or amount payable under, or permit any ERISA Affiliate to
adopt, amend (except as may be required by applicable law) or increase the amount of any benefit or amount payable under, any Plan or Welfare Plan, except for normal increases in the ordinary course of business consistent with past practice that, in
the aggregate, do not result in a material increase in benefits expense to Borrower or any ERISA Affiliate. 
  
 (n) First Mortgage Loan Agreement. Authorize, cause, permit or suffer the modification, amendment, supplementation or termination of the First
Mortgage Loan Documents. 
  
 (o) Leases. Enter into, amend
or cancel Leases, except as permitted by or pursuant to, or as would not result in a violation of, this Agreement. 
  
 (p) Prohibited Persons. With respect to Borrower and any of its officers, directors, shareholders, partners, members or Affiliates, if applicable
(including, without limitation, the indirect holders of equity interests in Borrower): (i) conduct any business, nor engage in any transaction or dealing, with any Prohibited Person, including, but not limited to, the making or receiving of any
contribution of funds, goods, or services, to or for the benefit of a Prohibited Person; or (ii) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the
prohibitions set forth in EO13224. 
  
 (q) Capital Budget;
Leasing Budget. Amend, modify or otherwise change the Capital Budget or Leasing Budget, except in accordance with the procedures set forth in Section 5.1(aa). 
  
 (r) Renovation Plans, General Contracts or Major Subcontract. Amend, modify or otherwise change the Renovation Plans,
the General Contracts or any Major Subcontract. 
  
 (s)
Approved Contracts Only. Execute any contract with the General Contractors or any Major Subcontractor or become a party to any arrangement for the performance of work with respect to the Mortgaged Property with the General Contractors or any
Major Subcontractor, except as may be approved by Lender. 
  
 (t)
Modification of Interest Rate Cap Agreement. Amend, modify, cancel or terminate any interest rate cap entered into by Borrower pursuant to this Agreement or permit same to be amended, modified, cancelled or terminated; provided, however, that
Borrower shall have the right to extend the term of any such interest rate cap. 
  

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 (u) Change Orders. Amend or modify the Renovation Plans, the General Contracts, the
Architects’ Contracts or any Major Subcontract, except in accordance with the following procedures: 
  
 (i) Materiality. All Change Orders involving increases of One Hundred Thousand Dollars ($100,000) or more for any single item, or
following an aggregate amount of non-material individual Change Orders of more than One Million Dollars ($1,000,000), all Change Orders thereafter, shall be subject to Lender’s prior written approval, such approval not to be unreasonably
withheld or delayed, it being understood that Change Orders in an amount less than $100,000 prior to the $1,000,000 threshold being met shall not require such prior written approvals and shall be deemed approved. Lender may require such documents
and other supporting materials to be delivered to Lender as a condition to its approval of any Change Order as Lender may elect, in its reasonable discretion. Borrower shall deliver to Lender copies of each Change Order. 
  
 (ii) Contents of Change Order Requests. Requests for
approval shall be submitted on a Change Order form reasonably acceptable to Lender signed by Borrower and the Architects, General Contractors, Major Subcontractors, any sureties and the Guarantor, accompanied by working drawings and a written
narrative of the proposed change. Lender shall not be required to consider approval of any change unless all other approvals that are required from other Persons have been obtained. As conditions to its approval, (a) Lender may require satisfactory
evidence of the cost and of the time necessary to complete the proposed change, and (b) to the extent Lender determines that the proposed change may result in any increased cost, Lender may make written demand upon Borrower to deliver the amount of
the increased costs to Lender. Lender is not under any duty to review or inform Borrower of the quality or suitability of the Renovation Plans, the General Contracts, the Architects’ Contracts or any Major Subcontract or any changes thereto.

  
 ARTICLE VII 
 EVENT OF DEFAULT 
  
 Section 7.1. Event of Default. The occurrence of one or more of the following events shall be an “Event of Default”
hereunder: 
  
 (a) if on any Payment Date Borrower fails to pay
any accrued and unpaid interest on the Loan then due and payable in accordance with the provisions hereof; 
  
 (b) if Borrower fails to pay the outstanding Indebtedness on the Maturity Date; 
  
 (c) if Borrower fails to pay any other amount payable pursuant to this Agreement or any other Loan Document when due and
payable in accordance with the provisions hereof or thereof, as the case may be, and such failure continues for ten (10) days after Lender delivers written notice thereof to Borrower; 
  
 (d) if any representation or warranty made herein or in any other Loan Document, or in any report, certificate, financial
statement or other Instrument, agreement or 

  

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document furnished by Borrower in connection with this Agreement, the Note or any other Loan Document shall be false in any material respect as of the date
such representation or warranty was made; 
  
 (e) if a
“Default” or an “Event of Default” as defined in any of the First Mortgage Loan Documents occurs; 
  
 (f) if Borrower or Guarantor makes an assignment for the benefit of creditors; 
  
 (g) if a receiver, liquidator or trustee shall be appointed for Borrower or Guarantor or if Borrower or Guarantor shall be
adjudicated a bankrupt or insolvent, or if any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by or against, consented to, or acquiesced in by, Borrower
or Guarantor, or if any proceeding for the dissolution or liquidation of Borrower or Guarantor shall be instituted; provided, however, that if such appointment, adjudication, petition or proceeding was involuntary and not consented to
by Borrower or Guarantor, upon the same not being discharged, stayed or dismissed within ninety (90) days, or if Borrower or Guarantor shall generally not be paying its debts as they become due; 
  
 (h) if Borrower attempts to delegate its obligations or assign its rights
under this Agreement, any of the other Loan Documents or any interest herein or therein, or if any Transfer occurs other than in accordance with this Agreement and such delegation or assignment of rights or impermissible Transfer continues or is not
corrected for five (5) Business Days after Lender delivers written notice thereof to Borrower; 
  
 (i) if any provision of the Organizational Agreements affecting the purpose for which Borrower is formed is amended or modified in any material respect which may adversely affect Lender, or if Borrower or its members
fail to perform or enforce the provisions of the Organizational Agreements and such failure has a Material Adverse Effect or attempt to dissolve or merge Borrower without Lender’s consent; 
  
 (j) if an Event of Default as defined or described in any Loan Document
occurs; 
  
 (k) if there shall remain in force, undischarged,
unsatisfied and unstayed, for more than 30 days, whether or not consecutive, any uninsured final judgment against Borrower or Guarantor that, with other outstanding uninsured final judgments, undischarged (and not bonded), against such Persons
exceeds in the aggregate $500,000; 
  
 (l) if any of the
assumptions made with respect to Borrower and its Affiliates in that certain substantive non-consolidation opinion letter of even date herewith delivered by Fulbright & Jaworski L.L.P. in connection with the Loan is not true and correct in all
material respects; or 
  
 (m) Borrower shall be in default or in
breach of any term of the General Contracts or any Material Subcontract (after any requisite notice or cure periods contained therein) and such default is reasonably likely to have a Material Adverse Effect; 
  

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 (n) if a Lien for the performance of work, the supply of materials or otherwise, shall be filed against
the Mortgaged Property and such Lien remains unsatisfied or unbonded for a period of sixty (60) days after notice of filing thereof, provided that within said sixty (60) day period the Mortgaged Property is not the subject of any writ, levy,
execution or sequestration; 
  
 (o) if construction of the
Renovation is not carried on with reasonable dispatch or at any time is discontinued for a period of ten (10) or more Business Days for any reasons, other than Excusable Delay; 
  
 (p) if the Renovation of the Mortgaged Property (i) in the reasonable judgment of Lender and the Construction Consultant is
not or cannot be completed on a Lien-free basis on or before the Completion Date, subject to Permitted Encumbrances, Excusable Delay not exceeding forty-five (45) days in the aggregate and any right to contest set forth in the Mortgage, or (ii) is
not completed Lien-free, subject to Permitted Encumbrances, on or before the Completion Date; 
  
 (q) Borrower fails to use diligent efforts to, within five (5) Business Days of written request, furnish to Lender or the Construction Consultant copies of the plans or other items reasonably requested by Lender or
the Construction Consultant in connection with the preparation of the Monthly Project Reports, Construction Opinion Letters or Construction Project Memoranda, or to permit access to the Mortgaged Property in accordance with this Agreement; provided,
however, that if in Lender’s commercially reasonable judgment, Lender determines that, despite Borrower’s diligent efforts, Borrower is unable to furnish such items, then Borrower’s failure to furnish the same shall not constitute an
Event of Default; 
  
 (r) if, without the prior written consent of
Lender, the Demand Note shall be terminated or cancelled, or otherwise modified, changed, supplemented, altered or amended, or if Guarantor shall waive or release any of its rights or remedies under the Demand Note; or 
  
 (s) if Borrower shall continue to fail to perform any of the terms, covenants
or conditions of this Agreement or the other Loan Documents, other than as specifically otherwise referred to in this definition of “Event of Default,” for ten (10) days after notice to Borrower from Lender or its successors or assigns, in
the case of any Default which can be cured by the payment of a sum of money (other than Events of Default pursuant to clauses (a) and (b) above as to which the grace period, if any, set forth therein is applicable), or for thirty (30)
days after notice from Lender or its successors or assigns, in the case of any other Default (unless a longer notice period is otherwise provided herein or in such other Loan Document); provided, however, that if such non-monetary
Default is susceptible of cure but cannot reasonably be cured within such thirty (30) day period and Borrower shall have commenced to cure such Default within such thirty (30) day period and thereafter diligently and expeditiously proceeds to cure
the same, such thirty (30) day period shall be extended for an additional sixty (60) days; 
  
 then, upon the occurrence of any such Event of Default and at any time thereafter, Lender or its successors or assigns, may, in addition to any other rights or remedies available to it pursuant to this Agreement or
the other Loan Documents, or at law or in equity, take such action, without further notice or demand, as Lender or its successors or assigns, deems advisable to protect and 

  

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enforce its rights against Borrower and in and to all or any portion of the Collateral (including, without limitation, declaring the entire Indebtedness to
be immediately due and payable) and may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower and/or the Collateral (including, without limitation, in either case, all rights or remedies available
at law or in equity). 
  
 Section 7.2. Remedies.

  
 (a) Upon the occurrence of an Event of Default, all or any one
or more of the rights, powers, or other remedies available to Lender against Borrower under this Agreement or any of the other Loan Documents executed by or with respect to Borrower or at law or in equity may be exercised by Lender at any time and
from time to time, whether or not all or any portion of the Indebtedness shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action for the enforcement of its rights and remedies
under any of the Loan Documents with respect to all or any portion of the Collateral. Any such actions taken by Lender shall be cumulative and concurrent and may be pursued independently, singly, successively, together or otherwise, at such time and
in such order as Lender may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and remedies of Lender permitted by law, equity or contract or as set forth herein or in
the other Loan Documents. 
  
 (b) In the event of the foreclosure
or other action by Lender to enforce Lender’s remedies in connection with all or any portion of the Collateral, Lender shall apply all Net Proceeds received to repay the Indebtedness in accordance with Section 2.8, the Indebtedness shall
be reduced to the extent of such Net Proceeds and the remaining portion of the Indebtedness shall remain outstanding and secured by the Loan Documents, it being understood and agreed by Borrower that Borrower is liable for the repayment of all the
Indebtedness; provided, however, that the Note shall be deemed to have been accelerated only to the extent of the Net Proceeds actually received by Lender with respect to the Collateral and applied in reduction of the Indebtedness
evidenced by the Note in accordance with the provisions of the Note, after payment by Borrower of all Transaction Costs and costs of enforcement. 
  
 (c) Notwithstanding anything in this Article VII to the contrary, upon an Event of Default, Lender shall in no event during the Standstill Period
exercise its remedies hereunder or under any other Loan Document that would result in (i) legal action by Lender to collect unpaid sums from Borrower, (ii) the taking of possession, or the sale or foreclosure, by Lender of all or any portion of the
Collateral, or (iii) the exercise by Lender of Borrower’s equity rights in the Collateral; provided that such restrictions on Lender’s remedies shall be conditioned upon the satisfaction of all of the following conditions: 
  
 (i) no Immediate Remedy Event shall have occurred;

  
 (ii) from and after such Event of Default,
Borrower shall not have made any payments whatsoever to any other creditors of Borrower or any other Persons other than the payments required to be made to First Mortgage Lender under the First Mortgage Loan; 
  

 79 

 (iii) no other creditor of Borrower (other than First Mortgage Lender in its capacity to
creditor to First Mortgage Borrower) shall become senior to Lender in priority of payment, and no lien of any other creditor of Borrower (other than First Mortgage Lender in its capacity to creditor to First Mortgage Borrower) shall become senior in
priority to Lender’s lien on the Collateral; and 
  
 (iv) the loan documents evidencing and securing the Approved Junior Mezzanine Loan shall contain a provision substantially similar to this Section 7.2(c). 
  
 Nothing in this Section 7.2(c) shall in any way restrict or prohibit Lender from (w) accelerating the Indebtedness, (x) applying for
the appointment of a receiver, trustee, liquidator or conservator of the Collateral, (y) applying against the Indebtedness any funds then deposited with Lender in any reserves or escrow accounts, or (z) demanding Borrower to pay Lender’s costs
of enforcement as a result of such Event of Default. If at any time, less than all of the conditions set forth in clauses (i) through (iv) above are satisfied, or at any time following the expiration of the Standstill Period, Lender shall have the
unrestricted right to exercise all or any one or more of the rights, powers, or other remedies available to Lender against Borrower under this Agreement or any of the other Loan Documents, or otherwise permitted under applicable law. 
  
 Section 7.3. Remedies Cumulative. The rights, powers and remedies of
Lender under this Agreement shall be cumulative and not exclusive of any other right, power or remedy which Lender may have against Borrower pursuant to this Agreement or the other Loan Documents executed by or with respect to Borrower or existing
at law or in equity or otherwise. Lender’s rights, powers and remedies may be pursued singly, concurrently or otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion. No delay or omission to exercise
any remedy, right or power accruing upon an Event of Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed
expedient. A waiver of any Default or Event of Default shall not be construed to be a waiver of any subsequent Default or Event of Default or to impair any remedy, right or power consequent thereon. Notwithstanding any other provision of this
Agreement, Lender reserves the right to seek a deficiency judgment or preserve a deficiency claim, in connection with the foreclosure of the Mortgage on the Mortgaged Property, to the extent necessary to foreclose on other parts of the Collateral.

  
 Section 7.4. Default Administration Fee. At any time
after the occurrence of an Event of Default and the acceleration of the Indebtedness, as reimbursement and compensation for the additional internal expenditures, administrative expenses, fees and other costs associated with actions to be taken in
connection with such Event of Default, and regardless of whether the Lender shall have commenced the exercise of any remedies pursuant to Section 7.2, the Default Administration Fee shall be payable by Borrower to the Lender upon demand.

  
 Section 7.5. Curative Advances. If any Event of Default
occurs and is not cured by Borrower after notice from Lender, then Lender may expend such sums as it shall reasonably deem appropriate to cure or attempt to cure such Event of Default. Borrower shall immediately repay all such sums so advanced,
which sums shall immediately become part of the 

  

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Indebtedness, bear interest at the Default Rate from the date advanced until the date repaid, and be secured by all Collateral. 
  
 ARTICLE VIII 
 MISCELLANEOUS 
  
 Section 8.1. Survival. This Agreement and all covenants, agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the execution and delivery of this
Agreement, the making by Lender of the Loan hereunder and the execution and delivery by Borrower to Lender of the Loan Documents, and shall continue in full force and effect so long as any portion of the Indebtedness is outstanding and unpaid.
Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party. All covenants, promises and agreements in this Agreement contained, by or on behalf of Borrower,
shall inure to the benefit of the respective successors and assigns of Lender. Nothing in this Agreement or in any other Loan Document, express or implied, shall give to any Person other than the parties and the holder of the Note and the other Loan
Documents, and their legal representatives, successors and assigns, any benefit or any legal or equitable right, remedy or claim hereunder. 
  
 Section 8.2. Lender’s Discretion. Whenever pursuant to this Agreement, Lender exercises any right given to it to approve or disapprove, or any
arrangement or term is to be satisfactory to Lender, the decision of Lender to approve or disapprove or to decide whether arrangements or terms are satisfactory or not satisfactory shall (except as is otherwise specifically herein provided) be in
the sole discretion of Lender and shall be final and conclusive. 
  
 Section 8.3. Governing Law. 
  
 (a) This Agreement
was negotiated in New York and made by Lender and accepted by Borrower in the State of New York, and the proceeds of the Note delivered pursuant hereto were disbursed from New York, which State the parties agree has a substantial relationship to the
parties and to the underlying transaction embodied hereby, and in all respects (including, without limitation, matters of construction, validity, performance, and maximum permissible rates of interest), this Agreement and the obligations arising
hereunder shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts made and performed in such State and any applicable law of the United States of America. 
  
 (b) Any legal suit, action or proceeding against Lender or Borrower arising
out of or relating to this Agreement shall be instituted in any federal or state court in New York, New York. Borrower hereby (i) irrevocably waives, to the fullest extent permitted by applicable law, any objection which it may now or hereafter have
to the laying of venue of any such suit, action or proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum, and (ii) irrevocably submits to the jurisdiction of any
such court in any such suit, action or proceeding. Borrower does hereby designate and appoint Corporation Services Company, whose address is 80 State Street, Albany, New York 12207-2543, as Borrower’s authorized agent to accept and acknowledge
on its behalf service of any and all process which may be served in any such suit, action or proceeding in any 

  

 81 

 
federal or state court in New York, New York, and agrees that service of process upon said agent at said address (or at such other office in the State of New
York as may be designated by Borrower from time to time in accordance with the terms hereof) with a copy to Borrower at its principal executive offices, and written notice of said service of Borrower mailed or delivered to Borrower in the manner
provided herein shall be deemed in every respect effective service of process upon Borrower, in any such suit, action or proceeding in the State of New York. Borrower (i) shall give prompt notice to Lender of any change in address of its authorized
agent hereunder, (ii) may at any time and from time to time designate a substitute authorized agent with an office in New York, New York (which office shall be designated as the address for service of process), and (iii) shall promptly designate
such a substitute if its authorized agent ceases to have an office in New York, New York or is dissolved without leaving a successor. 
  
 Section 8.4. Modification, Waiver in Writing. No modification, amendment, extension, discharge, termination or waiver of any provision of this
Agreement or any other Loan Document, or consent or waiver referred to in any Loan Document or consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in a writing signed by the party against whom
enforcement is sought, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to or demand on Borrower shall entitle Borrower
to any other or future notice or demand in the same, similar or other circumstances. 
  
 Section 8.5. Delay Not a Waiver. Neither any failure nor any delay on the part of Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising any right, power,
remedy or privilege hereunder, or under any other Loan Document, or any other instrument given as security therefor, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise,
or the exercise of any other right, power, remedy or privilege. In particular, and not by way of limitation, by accepting payment after the due date of any amount payable under this Agreement, the Note or any other Loan Document, Lender shall not be
deemed to have waived any right either to require prompt payment when due of all other amounts due under this Agreement, the Note or the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount.

  
 Section 8.6. Notices. All notices, consents, approvals
and requests required or permitted hereunder or under any other Loan Document shall be given in writing and shall be effective for all purposes if hand delivered or sent by (a) certified or registered United States mail, postage prepaid, or (b)
expedited prepaid delivery service, either commercial or United States Postal Service, with proof of attempted delivery, and by facsimile transmission, addressed if to Lender at its address set forth on the first page hereof, Attention: Michael J.
Danberg, and if to Borrower at its address set forth on the first page hereof, Attention: John R. Sischo, or at such other address and Person as shall be designated from time to time by any party hereto, as the case may be, in a written notice to
the other parties hereto in the manner provided for in this Section 8.6. A notice shall be deemed to have been given: in the case of hand delivery, at the time of delivery; in the case of registered or certified mail, when delivered or three
(3) Business Days after mailing; or in the case of expedited prepaid delivery and facsimile transmission, on the Business Day after the same was sent. A party receiving a notice which does not comply with 

  

 82 

 
the technical requirements for notice under this Section 8.6 may elect to waive any deficiencies and treat the notice as having been properly given.

  
 Section 8.7. TRIAL BY JURY. BORROWER, TO THE
FULLEST EXTENT THAT IT MAY LAWFULLY DO SO, WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING, INCLUDING, WITHOUT LIMITATION, ANY TORT ACTION, BROUGHT BY ANY PARTY HERETO WITH RESPECT TO THIS AGREEMENT, THE NOTE OR THE OTHER LOAN DOCUMENTS.

  
 Section 8.8. Headings. The Article and Section headings
in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
  
 Section 8.9. Assignment. 
  
 (a) Borrower may not sell, assign or transfer any interest in the Loan Documents, any Collateral, or any portion of either of the foregoing (including,
without limitation, Borrower’s rights, title, interests, remedies, powers and duties hereunder and thereunder) without Lender’s prior written consent. Lender shall have the right to assign or participate this Agreement and/or its interest
in any of the other Loan Documents and the obligations hereunder to any Person. In the event of an assignment by Lender, (a) the assignee shall have, to the extent of such assignment, the same rights, benefits and obligations as it would have if it
were an original “Lender” hereunder; (b) the assignee shall be deemed for all purposes to be a “Lender” hereunder; and (c) upon any such substitution of Lender, a replacement or addition “Lender signature page” shall be
executed by the new Lender and attached to this Agreement and thereupon become a part of this Agreement. After the effectiveness of any assignment, the new Lender shall provide notice to Borrower of the identity, address and other pertinent
information pertaining to the new Lender. Notwithstanding anything in this Agreement to the contrary, after an assignment by any Lender, the “Lender” (prior to such Assignment) shall continue to have the benefits of any rights or
indemnifications and shall continue to have the obligations contained herein which such Lender had during the period such party was a “Lender” hereunder. 
  
 (b) The Lender may from time to time elect to enter into a servicing agreement with a servicer, pursuant to which the
servicer shall be appointed to service and administer the Loan and the Account Collateral in accordance with the terms hereof and to exercise any and all other rights of the Lenders with respect to the Loan as set forth in such servicing agreement.
The Lender shall promptly notify Borrower if the Lender shall elect to appoint or change the servicer, and all notices and other communications from Borrower to the Lender shall be delivered to the servicer with a copy concurrently delivered to the
Lender, and any notice, direction or other communication from the servicer to Borrower shall have the same force and effect as a notice, direction or communication from the Lender. The parties hereto acknowledge and agree that the servicer shall be
a third party beneficiary to this Agreement and the other Loan Documents. 
  
 Section 8.10. Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any 

  

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provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
  
 Section 8.11. Preferences. Lender shall have no obligation to marshal any assets in favor of Borrower or any other party or against or in payment
of any or all of the obligations of Borrower pursuant to this Agreement or any other Loan Document. Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the
obligations of Borrower hereunder, provided that such application or reapplication is performed by Lender in accordance with the terms of this Agreement or any other applicable Loan Document. To the extent Borrower makes a payment or payments
to Lender for Borrower’s benefit, which payment or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds received, the obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect,
as if such payment or proceeds had not been received by Lender. 
  
 Section 8.12. Waiver of Notice. Borrower shall not be entitled to any notices of any nature whatsoever from Lender except with respect to matters for which this Agreement or another Loan Document specifically and expressly provides
for the giving of notice by Lender to Borrower and except with respect to matters for which Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. Except for notices required by applicable Legal
Requirements, Borrower hereby expressly waives the right to receive any notice from Lender with respect to any matter for which this Agreement or the other Loan Documents does not specifically and expressly provide for the giving of notice by Lender
to Borrower. 
  
 Section 8.13. Failure to Consent. If
Borrower shall seek the approval by or consent of Lender hereunder or under the Note, or any of the other Loan Documents and Lender shall fail or refuse to give such consent or approval, then Borrower shall not be entitled to any damages for any
withholding or delay of such approval or consent by Lender, it being intended that Borrower’s sole remedy shall be to bring an action for an injunction or specific performance, which remedy for injunction or specific performance shall be
available only in those cases where Lender has expressly agreed hereunder or under any of the other Loan Documents not to unreasonably withhold or delay its consent or approval. 
  
 Section 8.14. Schedules Incorporated. The information set forth on the cover, heading and recitals hereof, and the
Schedules attached hereto, are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof. 
  
 Section 8.15. Offsets, Counterclaims and Defenses. Any assignee of Lender’s interest in and to this Agreement and the other Loan Documents
shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to this Agreement and the other Loan Documents which Borrower may otherwise have against any assignor or this Agreement and the other Loan Documents. No
such unrelated counterclaim or defense shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon this Agreement or upon any other Loan Document. Any such right to interpose or assert 

  

 84 

 
any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrower. 
  
 Section 8.16. No Joint Venture or Partnership. Borrower and Lender
intend that the relationship created hereunder be solely that of borrower and lender. Nothing herein is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender nor to grant Lender
any interest in the Collateral other than that of secured party, mortgagee or lender. 
  
 Section 8.17. Waiver of Marshalling of Assets Defense. To the fullest extent Borrower may legally do so, Borrower waives all rights to a marshalling of the assets of Borrower, and others with interests in
Borrower, and of the Collateral, or to a sale in inverse order of alienation in the event of foreclosure of the interests hereby created, and agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale in inverse
order of alienation, homestead exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents to a sale of any Collateral for the collection of the
Indebtedness without any prior or different resort for collection, or the right of Lender to the payment of the Indebtedness out of the Net Proceeds of the Collateral in preference to every other claimant whatsoever. 
  
 Section 8.18. Waiver of Counterclaim. To the extent permitted by
applicable Legal Requirements, Borrower hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Lender or its agents. 
  
 Section 8.19. Conflict; Construction of Documents. In the event of any
conflict between the provisions of this Agreement and the provisions of any of the other Loan Documents, the provisions of this Agreement shall prevail. The parties hereto acknowledge that they were represented by counsel in connection with the
negotiation and drafting of the Loan Documents and that the Loan Documents shall not be subject to the principle of construing their meaning against the party which drafted same. 
  
 Section 8.20. Brokers and Financial Advisors. Borrower and Lender hereby represent that they have dealt with no
financial advisors, brokers, underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement (other than Secured Capital Corp, whose fees and expenses shall be paid exclusively by the Borrower).
Borrower and Lender hereby agree to indemnify and hold the other harmless from and against any and all claims, liabilities, costs and expenses of any kind in any way relating to or arising from a claim by any Person that such Person acted on behalf
of the indemnifying party in connection with the transactions contemplated herein. The provisions of this Section 8.20 shall survive the expiration and termination of this Agreement and the repayment of the Indebtedness. 
  
 Section 8.21. Counterparts. This Agreement may be executed in any
number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. 
  

 85 

 Section 8.22. Estoppel Certificates. Lender and Borrower each hereby agrees at any time and from
time to time upon not less than fifteen (15) days prior written notice by Borrower or Lender to execute, acknowledge and deliver to the party specified in such notice, a statement, in writing, certifying that this Agreement is unmodified and in full
force and effect (or if there have been modifications, that the same, as modified, is in full force and effect and stating the modifications hereto), and stating whether or not, to the knowledge of such certifying party, any Default or Event of
Default has occurred and is then continuing, and, if so, specifying each such Default or Event of Default; provided, however, that it shall be a condition precedent to Lender’s obligation to deliver the statement pursuant to this
Section 8.22, that Lender shall have received, together with Borrower’s request for such statement, an Officer’s Certificate stating that, to the knowledge of Borrower, no Default or Event of Default exists as of the date of such
certificate (or specifying such Default or Event of Default). 
  
 Section 8.23. Payment of Expenses. Borrower shall pay all Transaction Costs, which shall include, without limitation, (a) Lender’s reasonable out-of-pocket costs and expenses in connection with (i) the negotiation, preparation,
execution and delivery of the Loan Documents and the documents and instruments referred to therein (including, without limitation, the preparation of the Intercreditor Agreement after the Closing Date); (ii) the creation, perfection or protection of
Lender’s Liens in the Collateral (including, without limitation, fees and expenses for title and lien searches, UCC filing fees, third party due diligence expenses for the Mortgaged Property plus travel expenses, accounting firm fees, costs of
the Appraisals, Environmental Reports (and an environmental consultant), and the Engineering Reports); (iii) the negotiation, preparation, execution and delivery of any amendment, waiver or consent relating to any of the Loan Documents; and (iv) the
preservation of rights under and enforcement of the Loan Documents and the documents and instruments referred to therein, including any communications or discussions relating to any action that Borrower shall from time to time request Lender to
take, as well as any restructuring or rescheduling of the Indebtedness, (b) the reasonable fees, expenses and other charges of counsel to Lender in connection with all of the foregoing, (c) Lender’s reasonable out-of-pocket travel expenses in
connection with site visits to the Mortgaged Property and (d) the reasonable fees and expenses of the Lender’s servicer appointed pursuant to Section 8.9(b) and of the Construction Consultant. 
  
 Section 8.24. Non-Recourse. Anything contained herein, in the Note or
in any other Loan Document to the contrary notwithstanding, no recourse shall be had for the payment of the principal or interest on the Loan or for any other Indebtedness, obligation or liability hereunder or under any other Loan Document or for
any claim based hereon or thereon or otherwise in respect hereof or thereof against (i) any partner, agent, contractor, director, officer, member, consultant, manager, stockholder, subscriber to capital stock, incorporator, beneficiary, participant,
trustee or advisor of Borrower, any partner or member in Borrower, or any partner or member therein; (ii) any legal representative, heir, estate, successor or assign of any thereof; (iii) any corporation (or any officer, director, employee or
shareholder thereof), limited liability company (or member thereof), partnership (or any partner thereof), individual or entity to which any ownership interest in Borrower shall have been directly or indirectly transferred; (iv) any purchaser of any
asset of Borrower; or (v) any other Person (except Borrower), for any deficiency or other sum owing with respect to the Note or any other Indebtedness, obligation or liability or arising under this Agreement or any Loan Document. It is understood
that neither the Note nor any other Indebtedness, obligation or liability under or with respect to this Agreement 

  

 86 

 
and any other Loan Document may be enforced against any Person described in clauses (i) through (v) above; provided, however,
that the foregoing provisions of this paragraph shall not: 
  
 (A) prevent recourse to Borrower, the assets of Borrower, or any other instrument or document which is pledged by Borrower to Lender pursuant to the Loan Documents, including all Collateral; 
  
 (B) have any applicability whatsoever to the Guaranty of
Non-Recourse Obligations or the Environmental Indemnity Agreement or the liability of Guarantor thereunder; or 
  
 (C) constitute a waiver, release or discharge of any indebtedness or obligation evidenced by the Note or secured by the Loan Documents,
and the same shall continue until paid or discharged in full; or 
  
 (D) prevent recourse to Borrower and the Guarantor and their respective assets for repayment of the Indebtedness, and the Indebtedness shall be fully recourse to Borrower and the Guarantor, if a Bankruptcy Action
occurs; 
  
 (E) prevent recourse to Borrower and
Guarantor and their respective assets, and Borrower and Guarantor shall be fully and personally liable, for any loss, costs, liability, damage or expense suffered or incurred by Lender or any Indemnified Party related to or arising from: 

 
 (1) any fraud, misappropriation or misapplication of
funds (including Loss Proceeds or Rents) committed by or on behalf of Borrower or First Mortgage Borrower in contravention of the First Mortgage Loan Documents or the Loan Documents, or intentional misrepresentation contained in any Loan Document or
report furnished pursuant to any Loan Document; 
  
 (2) any Transfer in violation of the terms of the Loan Documents; 
  
 (3) violation of any of the terms, covenants and conditions to maintain Borrower as a Single Purpose Entity or breach of any of the assumptions set forth in the substantive non-consolidation legal opinion delivered in
connection with the closing of the Loan; 
  
 (4)
additional financing obtained by Borrower (whether secured or unsecured) in violation of the terms of the Loan Documents; 
  
 (5) actual physical waste to, or willful destruction of, the Mortgaged Property; 
  
 (6) breach of any representation, warranty or covenant in
this Agreement or the Environmental Indemnity Agreement, concerning Environmental Laws and Hazardous Substances; 
  

 87 

 (7) any security deposits received by Borrower or any Related Party from tenants not
being properly applied, returned to tenants when due or delivered to Lender, a receiver or a purchaser of the Mortgaged Property in the event of a foreclosure sale upon such Person taking possession of the Mortgaged Property; 
  
 (8) Borrower or Guarantor raising any defense regarding
enforcement of creditor’s rights based on the structure of the Loan (e.g. equitable subordination or fraudulent conveyance or the making of a claim by Borrower or any member of Borrower that Borrower is a joint venturer with or a partner of
Lender in connection with the Mortgaged Property or any of the transactions contemplated by this Agreement, the Note or any of the other Loan Documents); 
  
 (9) any Legal Requirement mandating the forfeiture by Borrower or First Mortgage Borrower of the Mortgaged Property or the Collateral, or
any portion thereof because of the conduct or purported conduct of criminal activity by Borrower, First Mortgage Borrower or any Related Party in connection therewith; 
  
 (10) if any Lien is voluntarily placed on the Mortgaged Property or the Collateral or any portion of either
in contravention of the Loan Documents or the First Mortgage Loan Documents and such Lien is not discharged and removed within ten (10) days after notice; 
  
 (11) Borrower or any Related Party controlled by Borrower or by any Affiliate which controls Borrower contesting or in any way interfering
with, directly or indirectly (collectively, a “Contest”), any foreclosure action or UCC sale commenced by Lender or with any other enforcement of Lender’s rights, powers or remedies under any of the Loan Documents or
under any document evidencing, securing or otherwise relating to any of the Collateral (whether by making any motion, bringing any counterclaim, claiming any defense, seeking any injunction or other restraint, commencing any action seeking to
consolidate any such foreclosure or other enforcement with any other action, or otherwise) (except this clause (11) shall not apply if Borrower or such Related Party successfully asserts a Contest and obtains a final non-appealable order as to
same); 
  
 (12) the cost of enforcement of any of
Lender’s rights or remedies hereunder or under any of the other Loan Documents, or costs incurred in any bankruptcy or similar proceeding which may be brought by or against Borrower, First Mortgage Borrower or Guarantor; 
  
 (13) the failure to pay Impositions assessed against the
Mortgaged Property to the extent there was sufficient funds available to pay the same, or the failure to maintain insurance as required under the 

  

 88 

 
documents evidencing and securing the First Mortgage Loan, or the failure to pay any deductible amount in respect of any insurance maintained in respect of
the Mortgaged Property, or the failure to pay and discharge any mechanic’s or materialman’s Liens against the Mortgaged Property to the extent there was sufficient funds available to pay and discharge the same or the work relating to such
Liens was not approved by Lender in writing or permitted by the Loan Documents or the failure to pay brokerage commissions; 
  
 (14) the failure to permit on-site inspections of the Mortgaged Property or to provide financial reports and information as required by
this Agreement; 
  
 (15) the failure to obtain
Lender’s written consent, to the extent Lender’s consent is required, to any modification, amendment, extension, renewal or replacement of any of the Leases, or 
  
 (16) the failure to obtain Lender’s written consent to any modification, amendment, extension, renewal
or replacement of Borrower’s Organizational Agreements or First Mortgage Borrower’s organizational documents. 
  
 ARTICLE IX 
 BANKRUPTCY.

  
 Section 9.1. Material Inducement. Borrower
acknowledges and agrees that the representations, warranties, covenants and agreements contained in this Section 9.1 constitute a material inducement to Lender to enter into this Agreement, the other Loan Documents and the transactions
contemplated hereby and thereby and that without the inclusion of this Section 9.1 herein Lender would not have entered into this Agreement and the other Loan Documents. 
  
 Section 9.2. No Fraudulent Intent. Borrower acknowledges, warrants, represents and agrees that neither the execution
and delivery of this Agreement and the other Loan Documents nor the performance of any actions required hereunder or thereunder is being consummated by the Borrower, the First Mortgage Borrower or Guarantor with or as a result of any actual intent
by such Persons, or any of them, to hinder, delay or defraud any entity to which such Persons, or any of them, are now or will hereafter become indebted. 
  
 Section 9.3. No Bankruptcy Intent. Borrower represents, covenants and agrees that none of Borrower, First Mortgage Borrower or Guarantor has any
intent (a) to file any voluntary petition in bankruptcy under any Chapter of the Bankruptcy Code or in any manner to. seek relief, protection, reorganization, liquidation, dissolution or similar relief for debtors under any local, state, federal or
other insolvency laws or laws providing for relief of debtors, or in equity, or directly or indirectly to cause any of the other of such Persons to file any such petition or to seek any such relief, either at the present time, or at any time
hereafter, or (b) directly or indirectly to cause any involuntary petition under any Chapter of the Bankruptcy Code to be filed against any of such Persons or directly or indirectly to cause any of such Persons to become the 

  

 89 

 
subject of any dissolution, liquidation or insolvency proceeding or any other proceeding pursuant to any local, state, federal, or other insolvency laws or
laws providing for relief of debtors, or in equity, either at the present time, or at any time hereafter, or (c) directly or indirectly to cause the Mortgaged Property, the Collateral or any portion thereof or any interest of such Persons in the
Mortgaged Property or the Collateral to become the property of any bankruptcy estate or the subject of any local, state, federal or other bankruptcy, dissolution, liquidation or insolvency proceedings, either at the present time or at any time
hereafter. 
  
 Section 9.4. Agreement in Best Interests of
Parties, Consideration. Borrower acknowledges and agrees that (a) the transactions evidenced by this Agreement and the other Loan Documents are in the best interests of itself and Guarantor and the creditors of such Persons, and (b) the benefit
to inure to such Persons pursuant to this Agreement and the other Loan Documents constitute substantially more than “reasonable equivalent value” (as such term is used in Section 548 of the Bankruptcy Code) and “fair
consideration” (as such term is defined and used in the New York Debtor and Creditor Law Section 272279), in exchange for the benefits to be provided by such Persons to the Lender pursuant to this Agreement and the other Loan Documents.

  
 Section 9.5. Subsequent Bankruptcy: Waiver of Automatic
Stay. 
  
 (a) It is expressly agreed and understood by the
parties hereto that, in the event First Mortgage Borrower, Borrower or the Collateral, or any portion thereof, shall be or become the subject of any bankruptcy proceeding or the property of any bankruptcy estate, the United States Bankruptcy Court
for the Southern District of New York, (hereinafter referred to as the “Bankruptcy Court”) shall have the sole and exclusive jurisdiction of such bankruptcy proceeding. The parties hereto hereby further acknowledge and agree
that any voluntary bankruptcy petition filed by First Mortgage Borrower or Borrower, or any involuntary bankruptcy petition caused to be filed by First Mortgage Borrower, Borrower or any Affiliate thereof against First Mortgage Borrower or Borrower
(any such bankruptcy filing being hereinafter referred to as a “Bad Faith Filing”), or any other action by Borrower or such Persons, or any of them, to attempt in any manner to hinder, delay, impede, stay, void, rescind or
nullify any lawful action taken by Lender to exercise its rights and remedies under this Agreement or any of the other Loan Documents, or at law or in equity, from and after the date hereof, or pursuant to any bankruptcy, insolvency, reorganization,
liquidation, dissolution or similar proceedings, would be in bad faith and contrary to the purposes of the bankruptcy laws, would be for the sole purpose of delaying, inhibiting or interfering with the exercise by Lender of its rights and remedies
under this Agreement and the Loan Documents and would, in and of itself, constitute “cause” for relief from the automatic stay pursuant to the provisions of Section 362(d)(1) of the Bankruptcy Code. Without limitation of the foregoing, the
parties hereto hereby further acknowledge and agree that, in the event of any Bad Faith Filing by or against First Mortgage Borrower, Borrower, or their respective successors, successors-in-interest or assigns, Lender shall be entitled to obtain
upon ex parte application therefor, and without further notice or action of any kind or nature whatsoever, (i) an order from the Bankruptcy Court prohibiting the use of Lender’s “cash collateral” (as such term is defined in Section
363 of the Bankruptcy Code) in connection with the Loan, and (ii) an order from the Bankruptcy Court granting immediate relief from the automatic stay pursuant to Section 362 of the Bankruptcy Code so as 

  

 90 

 
to permit Lender to exercise all of its rights and remedies pursuant to this Agreement, the Loan Documents, and at law and in equity. 
  
 (b) Borrower shall not directly or indirectly oppose or otherwise defend
against Lender’s effort to obtain relief from the stay pursuant to Section 9.5(a), above, and covenant and agree that Lender shall be entitled to the lifting of the stay pursuant to Section 9.5(a), above, without the necessity of
an evidentiary hearing and without the necessity or requirement that Lender establish or prove the value of the Collateral, the lack of adequate protection of Lender’s interest in the Collateral, the lack of any reasonable prospect of
reorganization with respect either to First Mortgage Borrower, Borrower or the Collateral, or Borrower’s lack of equity in the Collateral. 
  
 (c) The waiver by Borrower of the Section 362 automatic stay contained in the Bankruptcy Code pursuant to Section 9.5(a) and (b) above, and
the waiver of the Section 362 automatic and Section 105 supplemental stay contained in the Bankruptcy Code pursuant to Section 9.6, below, shall be unconditional and absolute, and Borrower hereby agrees not to directly or indirectly maintain
before any court that such waiver of the automatic stay and supplemental stay should not be strictly enforced. 
  
 Section 9.6. Waiver of Automatic and Supplemental Stays. Borrower hereby represents, covenants and agrees, in the event of the filing of any
voluntary or involuntary petition in bankruptcy by or against First Mortgage Borrower or Borrower, not to assert or request any other party to assert that the automatic stay provided by Section 362 of the Bankruptcy Code shall operate or be
interpreted to stay, interdict, condition, reduce or inhibit the ability of Lender to enforce any rights it has by virtue of this Agreement or the Loan Documents, or any other rights Lender has, whether now or hereafter acquired, against First
Mortgage Borrower, Borrower or any Collateral; and further, in the event of the filing of any voluntary or involuntary petition in bankruptcy by or against First Mortgage Borrower or Borrower, not to seek a supplemental stay or any other relief,
whether injunctive or otherwise, pursuant to Section 105 of the Bankruptcy Code or any other provision of the Bankruptcy Code, to stay, interdict, condition, reduce or inhibit the ability of Lender to enforce any rights it has by virtue of this
Agreement or the Loan Documents, or at law or in equity, or any other rights Lender has, whether now or hereafter acquired against First Mortgage Borrower, Borrower or any Collateral. The parties hereto acknowledge that the waivers in this Section
with respect to an involuntary petition shall not be effective until the occurrence of an Event of Default. 
  
 Section 9.7. Approval Rights Regarding Bankruptcy Proceeding. Upon the occurrence and during the continuance of any Bankruptcy Filing, all rights
of Borrower to exercise its voting interests in First Mortgage Borrower shall automatically terminate and cease to exist and all such rights shall thereupon be automatically vested in Lender who shall thereupon have the sole and exclusive right to
exercise such Voting Interests. Without limiting the foregoing, in the event of a Bad Faith Filing or any other voluntary or involuntary bankruptcy filing or any other insolvency proceeding of any kind under local, state, federal or other insolvency
laws involving First Mortgage Borrower and Borrower, or both of them, or any of their properties (collectively the “Bankruptcy Filings”) Borrower acknowledges and agrees to recognize the rights and powers granted to Lender in
this Section 9.7 and agrees not to oppose or object on any basis whatsoever to the exercise by Lender of such rights in connection with the 

  

 91 

 
Bankruptcy Filings. Further, upon the commencement of one or more Bankruptcy Filings, Borrower covenants and agrees: (i) not to propose, approve, vote for,
or acquiesce in a plan of reorganization concerning First Mortgage Borrower or Borrower, or both of them, without the consent of Lender; (ii) not to challenge or object on any basis whatsoever to the standing of Lender to be recognized as a creditor
and/or party-in-interest in the Bankruptcy Filings; and (iii) not to violate or breach any of the covenants or agreements contained in any of the Loan Documents. 
  
 Section 9.8. Covenant of Noninterference and Cooperation. 
  
 (a) Borrower covenants and agrees that it shall not take any action of any
kind or nature whatsoever, either directly or indirectly, to oppose, impede, obstruct, hinder, frustrate, enjoin or otherwise interfere with the exercise by Lender of any of Lender’s rights and remedies against or with respect to the Loan, the
Collateral, this Agreement or the other Loan Documents (including specifically, but without limitation, those rights and remedies contained in this Section 9), at law or in equity, and shall not, either directly or indirectly cause any other
Person to take any of the foregoing actions. 
  
 (b) Borrower
covenants and agrees to cooperate fully and completely with the exercise by Lender of any of Lender’s rights and remedies against or with respect to the Collateral, this Agreement or the other Loan Documents (including specifically, but without
limitation, those rights and remedies contained in this Section 9). 
  
 (c) Borrower covenants and agrees that any violation of either Section 9.8(a) or (b), above, will constitute an act of bad faith undertaken with intent to hinder, delay and defraud Lender. 
  
 [SIGNATURES FOLLOW ON NEXT PAGE] 
  

 92 

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

			
	LENDER:
	
	CITIGROUP GLOBAL MARKETS REALTY CORP.,
a New York corporation
		
	By:	 	/s/    MICHAEL J.
DANBERG        
	 Name:
	 	Michael J. Danberg
	 Title:
	 	Authorized Agent
	
	BORROWER:
	
	515/555 FLOWER MEZZANINE ASSOCIATES, LLC,
a Delaware limited liability company
		
	By:	 	/s/    JOHN R. SISCHO        
	 	 	John R. Sischo
	 	 	Vice President

  

 Signature Page 1 

 SCHEDULE 1 
  

Major Decisions 
  
 “Major Decision” means 
  
 (i) The payment of any Mortgaged Property expense by Borrower or First Mortgage Borrower to an Affiliate of such Person or the entering into of any
contractual obligation with such Affiliate other than pursuant to the Management Agreement; 
  
 (ii) A distribution to any member of Borrower of any property, whether in cash or otherwise; 
  
 (iii) The making of any prepayment of the First Mortgage Loan; 
  
 (iv) Any refinancing of the First Mortgage Loan or the Mortgaged Property or any portion thereof; 
  
 (v) Any replacement of the Manager (or any successor property manager) or any
replacement, amendment, modification, termination or waiver of the Management Agreement or any other property management agreement for the Mortgaged Property; 
  

(vi) Any amendment of any First Mortgage Loan Document; 
  
 (vii) Any selection of a leasing or sales broker for the Mortgaged Property, the terms of any brokerage agreement with any such broker, or the payment of
any brokerage commission to any such leasing or sales broker; 
  
 (viii) The Borrower’s or the First Mortgage Borrower’s entering into any contractual obligation, other than contracts entered into by the Borrower in the ordinary course of the Borrower’s or the First Mortgage Borrower’s
business and requiring total payments of less than $250,000; 
  
 (ix) Except as set forth in the Operating Budget, any (A) improvement, renovation or refurbishment of the Mortgaged Property; (B) removal, demolition or material alteration (other than routine replacement of equipment) of the improvements
or the equipment on the Mortgaged Property or (C) increase in the square footage or gross leasable area of the improvements on the Mortgaged Property if any of the expenses in connection therewith are paid or incurred by the Borrower; 
  
 (x) Any material change in the present method of conducting the business of
the Borrower or the First Mortgage Borrower; 
  
 (xi) The issuance
of any membership interests or other equity interests in First Mortgage Borrower, Borrower or its managing member other than as outstanding on the Closing Date; 
  

 Schedule 1 

 (xii) Any change in the method of accounting used by the Borrower or First Mortgage Borrower (i.e. cash,
accrual or tax basis); 
  
 (xiii) The institution of any material
legal proceeding in the name of Borrower or First Mortgage Borrower or settlement of any claim or confession of any judgment against the Borrower or First Mortgage Borrower; 
  
 (xiv) Election of a new managing member of Borrower or replacement of the managing member of Borrower as of the Closing
Date; 
  
 (xv) In the case of a casualty or condemnation, any
determination to restore the Mortgaged Property, except as required by the First Mortgage Loan Documents; 
  
 (xvi) Entry into or renewal of or amendment or modification of or waiver of any rights under any Lease for the Mortgaged Property or any portion thereof,
or the acceptance of any buy out or similar action for any Lease (other than as provided in Section 5.1(s)); 
  
 (xvii) Borrower’s or First Mortgage Borrower’s entering into any contractual obligation other than in the ordinary course of Borrower’s or
First Mortgage Borrower’s business and on prevailing market terms; 
  
 (xviii) Borrower’s or First Mortgage Borrower’s guaranteeing the obligations of any Person or lending money to any Person; 
  
 (xix) Borrower’s or First Mortgage Borrower’s incurrence of any indebtedness other than the Loan and the First Mortgage Loan, respectively;

  
 (xx) The approval of any Operating Budget and any amendments
or modifications thereto; 
  
 (xxi) Causing Borrower or First
Mortgage Borrower to be a party to any dissolution, liquidation, winding up consolidation or merger; 
  
 (xxii) Permitting First Mortgage Borrower to apply any revenue of the Mortgaged Property for any expenses other than as set forth in the Operating Budget;
and 
  
 (xxiii) (A) The filing of any voluntary petition in
bankruptcy on behalf of Borrower or First Mortgage Borrower, (B) the consenting to the filing of any involuntary petition in bankruptcy against Borrower or First Mortgage Borrower, (C) the filing of any petition seeking, or consenting to, the
reorganization or relief under any applicable federal or state law relating to bankruptcy or insolvency, (D) the consenting to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of Borrower or
First Mortgage Borrower or a substantial part of its property, (E) the making of any assignment for the benefit of creditors, (F) the admission in writing of Borrower or First Mortgage Borrower’s inability to pay its debts generally as they
become due or (G) the taking of any action by Borrower or First Mortgage Borrower in furtherance of any such action. 
  

 Schedule 1 

 SCHEDULE 2 
  

First Mortgage Loan Documents 
  
 Loan Agreement 
  
 Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing 
  
 Assignment of Contracts, Licenses, Permits, Agreements, Warranties and Approvals 
  

Promissory Note 
  
 Manager’s Consent and Subordination of Management Agreement 
  
 Assignment of Rents and Leases 
  
 Environmental
Indemnity Agreement 
  
 Guaranty of Non-Recourse Obligations 
  
 Collateral Assignment of Hedge Agreement 
  
 Note Pledge Agreement 
  
 Local Deposit Bank Agreements 
  
 UCC-1 Financing Statement 
  

 Schedule 2 

 SCHEDULE 3 
  

Construction Consulting and Project Management proposal 
 of the Construction Consultant 
  

 Schedule 3 

 SCHEDULE 4 
  

Form of Task Order 
  

 Schedule 4 

 SCHEDULE 5 
  

Mezzanine Loan Advance Request Form 
  

 Schedule 5 

 SCHEDULE 6 
  

Basis Calculation Worksheet 
  

 Schedule 6 

 SCHEDULE 7 
  

Affiliate Transactions as of Closing 
  

 Schedule 7

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