Document:

Exhibit 10.20

 

OPEN-END MORTGAGE DEED, SECURITY AGREEMENT
AND ASSIGNMENT

 

 

THIS OPEN-END MORTGAGE DEED, SECURITY AGREEMENT
AND ASSIGNMENT, dated as of June 3, 2013 (herein the “Mortgage”), is made by NRFC CLINTON HOLDINGS, LLC,
being a Delaware limited liability company organized and existing under the laws of the State of Delaware having its chief executive
office and principal place of business at NorthStar Realty Finance, 399 Park Avenue, 18th floor, New York, New York 10022 Attn:
Ronald J. Lieberman, Esq., Executive Vice President

and General Counsel (“Mortgagor”), to WEBSTER
BANK, NATIONAL ASSOCIATION, a national association having an address at 145 Bank Street, Waterbury, Connecticut 06702, Attention:
Manager, Health Care Department (“Mortgagee”).

 

PRELIMINARY STATEMENT

 

Unless otherwise defined, capitalized words
and phrases used in this Mortgage have the meanings set forth in the introduction, this preliminary statement or in Article 1.
Any capitalized terms not otherwise defined in introduction, this preliminary statement or in Article 1 shall have the meanings
set forth in the “Loan Agreement” (as that term is defined in the next paragraph). All “Section” references
are to Sections of this Mortgage, unless otherwise noted.

 

THE CONDITION OF THIS DEED IS SUCH that Mortgagor
is borrowing on the date hereof from Mortgagee the principal amount of $7,875,000.00 (the “Loan”) pursuant to
the terms of a Commercial Loan Agreement between the Mortgagor, the Mortgagee and the Guarantors dated the date hereof (the “Loan
Agreement”), and Mortgagor is delivering to Mortgagee its Commercial Term Note dated the date hereof, in the original
principal amount of $7,875,000.00, bearing interest at the rates set forth therein, payable to Mortgagee or order and having a
maturity date of June 1, 2018, a copy of which Note is attached hereto as Schedule B. A copy of the Loan Agreement is on
file in the office of the Mortgagee at the address set forth above. The Commercial Term Note, together with any and all extensions,
renewals, substitutions, modifications or replacements thereof is hereinafter called the “Note”. This Mortgage
secures the payment of the indebtedness evidenced by the Note and the performance of the obligations of the Mortgagee set forth
in the Loan Agreement.

 

GRANTING CLAUSE

 

In order to secure the payment of the indebtedness
under the Note, any additional indebtedness under this Mortgage and the performance of the terms of this Mortgage, the Note and
the Loan Agreement, Mortgagor hereby GRANTS, with MORTGAGE COVENANTS, to Mortgagee and its successors and assigns, any and all
of Mortgagor's interest in the following described property, subject only to Permitted Encumbrances:

 

    	 

    	 

    

 

(a)          The
land with buildings and improvements, whether now existing or hereafter constructed or located thereon (the “Improvements”),
situated in Middlesex County, Connecticut, and commonly known as, and numbered, 89-91
East Main Street, Clinton, Connecticut (the “Land”), as more particularly described in Schedule A
attached hereto (the Land and the Improvements, together with any of the property described in the following Granting Clause constituting
real property, collectively, the “Property”);

 

(b)          All easements, covenants, agreements and rights which
are appurtenant to or benefit the Property;

 

(c)          All furnaces, ranges, heaters, plumbing goods, gas and
electric fixtures, screens, screen doors, mantels, shades, storm doors and windows, awnings, oil burners and tanks and other equipment,
gas and electric refrigerators and refrigerating systems, ventilating and air conditioning apparatus and equipment, door bell and
alarm systems, sprinkler and fire extinguishing systems and all other machinery, equipment, furniture, carpeting, appliances and
appurtenances of whatever kind or nature, including, without limitation, beds, furniture, equipment, inventory, goods and general
intangibles, including all rights in software, owned by Mortgagor, now or hereafter located on the Property, and used in the operation,
maintenance or occupation of the Property (collectively, the “Chattels”);

 

(d)          To the extent permitted by applicable law, all rents,
profits, proceeds and products of and from the Property and all Leases of the Property or portions thereof, now or hereafter existing,
as the same may be extended or renewed, all guarantees and security relating thereto and the present right (whether or not an Event
of Default shall occur and be continuing) to collect and receive all rents, income, and other sums payable or receivable thereunder
as rent or otherwise, subject to the terms and provisions of an Assignment of Leases and Rents of even date granted by the Mortgagor
in favor of the Mortgagee with respect to the Property such as rent, additional rent, damages, insurance payments, taxes, insurance
proceeds, condemnation awards, and payments with respect to options contained therein, and the right to bring proceedings for the
enforcement of any Lease and to do anything which any lessor is or may become entitled to do thereunder, but this Mortgage shall
not impair any obligation of Mortgagor under any Lease nor shall any such obligation be imposed upon Mortgagee;

 

(e)          All Contracts;

 

(f)          All funds held by Mortgagee as tax or insurance escrow
payments;

 

(g)          All proceeds received from the sale, exchange, collection
or other disposition of any of the foregoing collateral described in (a) through (f), including without limitation, equipment,
inventory, goods, documents, securities, accounts, chattel paper, software and general intangibles (as each of those terms is defined
in the UCC);

 

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all insurance proceeds relating to all or any portion of the foregoing collateral described in (a) through (f) and
all awards, damages, proceeds, and refunds from any state, local, federal or other taking of, and all municipal tax abatements
relating to, all or any portion of the Mortgaged Property described in clauses (a) through (f) and all accounts receivable, bank
debts and other forms of obligations belonging or owing to Mortgagor, whether arising from goods sold or services rendered by Mortgagor.

 

Mortgagor hereby Grants to Mortgagee a first
security interest in all the fixtures, equipment, general intangibles and personal property now
owned and hereafter acquired and as more fully described in clauses (a) through (g), and agrees that Mortgagee shall
have with respect thereto (in addition to its other rights and remedies), all rights and remedies of a secured party under the
UCC. This instrument is intended to take effect as a security agreement under the UCC and is to be filed in the real estate records
in lieu of a financing statement as a fixture filing pursuant to the UCC.

 

TO HAVE AND TO HOLD the Mortgaged Property,
now owned or hereafter acquired, unto Mortgagee, its successors and assigns, subject to the provisions of this Mortgage.

 

ARTICLE 1

 

Defined Terms

 

The following terms have the meanings set forth
below:

 

“Chattels” has the meaning set forth
in the Granting Clause.

 

“Contract” means every contract and
agreement, license, permit and approval and warranty and representation, to which Mortgagor is a party, relating to the use, operation,
management, construction, repair or service of the Mortgaged Property to the extent assignable.

 

“Events of Default” means the events
of default set forth in Section 3.1.

 

“Federal Bankruptcy Code” means The
Bankruptcy Reform Act of 1978, as amended.

 

“Grant” means create a security interest
in, mortgage, grant, bargain, sell, convey, assign and transfer.

 

“Improvements” has the meaning set
forth in the Granting Clause.

 

“Installment Payments” means the monthly
payments of principal and interest, or interest only, as the case may be, plus any other monthly payments as required to be made
on the Note.

 

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“Land” has the meaning set forth in
the Granting Clause.

 

“Leases” means all leases, subleases,
licenses tenancies and occupancies of the Property, or portions thereof, to which Mortgagor is a party, whether pursuant to a written
or oral agreement, now or hereafter existing, as the same may be extended or renewed.

 

“Lessees” means the lessees under
the Leases.

 

“Lien of this Mortgage”, “this
lien”, “lien hereof” and like terms mean the lien, security interest, title or other interest granted by this Mortgage
(including the after-acquired property clauses) or subsequently granted to Mortgagee pursuant hereto.

 

“Loan” has the meaning set forth in
the Preliminary Statement.

 

“Loan Documents” has the meaning set
forth in Section 2.15.

 

“Mortgage Covenants” has the meaning
set forth in General Statutes of Connecticut, Section 47-36i.

 

“Mortgaged Property” means all property
subject or intended to be subject to the lien of this Mortgage.

 

“Net Proceeds” has the meaning set
forth in Section 2.8.

 

“Permitted Encumbrances” means: any
easements, rights-of-way, encroachments, encumbrances, and other irregularities in title set forth in Schedule C, attached
hereto or as set forth on the Mortgagee’s Title Insurance Policy No. 4235670 issued by Chicago Title Insurance Company and
delivered to the Mortgagee on the date hereof.

 

“Person” means an individual, partnership,
corporation, trust, trustee, unincorporated association, syndicate, joint venture or organization, or a government or any department
or agency thereof.

 

“Property” has the meaning set forth
in the Granting Clause.

 

“Statutory Condition” has the meaning
set forth in General Statutes of Connecticut, Section 47-36j.

 

“Statutory Power of Sale” has the
meaning set forth in the General Statutes of Connecticut, if applicable.

 

“UCC” shall mean the Connecticut Uniform
Commercial Code, as amended.

 

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ARTICLE 2

 

Representations, Warranties and Covenants
of Mortgagor

 

Mortgagor represents, warrants, covenants and
agrees with Mortgagee as follows:

 

Section 2.1.   Title to the Mortgaged Property.
Mortgagor makes the Mortgage Covenants with the same effect as though they were herein set forth in full, except that the Property
is subject to Permitted Encumbrances. Mortgagor is and shall remain the owner of the Mortgaged Property, and will not permit to
be created thereon any liens, encumbrances, attachments, security interests, purchase money security interests, assignments, mortgages,
pledges, charges or other liens or encumbrances except Permitted Encumbrances. Mortgagor has full power and lawful authority to
Grant the Mortgaged Property to Mortgagee, will preserve its title to the Mortgaged Property, subject only to Permitted Encumbrances,
and will forever warrant and defend the Mortgaged Property to Mortgagee against the claims of all persons. This Mortgage constitutes
a valid first lien on the Mortgaged Property, subject only to Permitted Encumbrances.

 

Section 2.2.   Condition of Property. The Property
and Chattels are, and shall remain, in good repair, well maintained and in good working order, reasonable wear and tear expected.
Mortgagor will make all necessary repairs, replacements, additions and improvements which may be required to keep the Property
and Chattels in good repair and condition. Mortgagor will occupy the Property or use its commercially reasonable effort to cause
the Property to be occupied at all times. Mortgagor shall not cause or permit to be suffered any waste, destruction or loss to
the Property or Chattels or any part thereof.

 

Section 2.3.   Alterations of Mortgaged Property.
(a).Mortgagor may, at its expense, make additions to and alterations of the Property and Chattels, construct additional
Improvements and make substitutions and replacements for the Improvements and Chattels provided that (i) to the extent that
such improvements, substitutions or replacements cost in excess of $25,000 in any single occurrence and $50,000 in the aggregate
until the Note is fully paid, Mortgagee has given its prior written consent, provided that if Mortgagee has not responded within
15 business days, it will be deemed to have consented, (ii) the market value of the Property and the Chattels will not be
materially decreased, the character of the Property and Chattels will not be changed nor their usefulness adversely affected, (iii) the
work shall be expeditiously performed and completed in workmanlike manner, and in accordance with applicable laws, permits and
regulations, and (iv) no structural or exterior Improvements shall be demolished unless Mortgagor shall first have furnished
Mortgagee with security, reasonably satisfactory to Mortgagee, to assure rebuilding or repair of such Improvements to their original
condition, unless otherwise agreed, in writing, by Mortgagee. All additions, alterations, additional Improvements and Chattels,

 

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substitutions and replacements shall be part of the Mortgaged Property subject to the lien hereof.

 

(b)          Mortgagor may subdivide the Property as permitted by
applicable laws and regulations, including, without limitation, zoning regulations of the Town of Clinton, CT, provided that any
such subdivision shall be reasonably satisfactory to the Mortgagee and its counsel and that Mortgagor may not sell, transfer or
otherwise encumber in any way all or any portion of the Property except as permitted hereby.

 

Section 2.4.   After-acquired Property.
The interest of Mortgagor in all extensions, improvements, alterations and replacements of, and all additions and appurtenances
to, the Mortgaged Property, hereafter acquired by Mortgagor, without any further Grant by Mortgagor, shall immediately become part
of the Mortgaged Property and be subject to this lien with the same effect as though now owned by Mortgagor and specifically described
in the Granting Clause.

 

Section 2.5.   Insurance. (a) Mortgagor
will maintain insurance on the Mortgaged Property as follows:

 

(i)          Fire and extended coverage insurance, including
vandalism and malicious mischief, broadened to the so-called “ISO Special Form” (or its equivalent) coverage basis (including
if applicable, builder's risk, completed value non-reporting coverage including coverage for completion and occupancy) in an amount,
after application of any deductibles acceptable to Mortgagee, of not less than 100% of the full replacement value of the Mortgaged
Property at the time of issuance of such policy or policies and at each renewal date thereof, exclusive of land, excavations, foundations
and other items normally excluded from such policies, but in no event less than the original principal amount of the Note. The
amount of insurance shall be sufficient to prevent the Mortgagor from becoming a co-insurer of any loss. Insurance shall include
coverage for business interruption or loss of rents for all Leases for at least one year in the event of a casualty which coverage
shall increase in accordance with any increases in rents; and

 

(ii)         Comprehensive general public liability insurance
against claims for bodily injury, death or property damage occurring on or about the Property and adjoining streets and sidewalks,
in the minimum amounts of $3,000,000 for bodily injury or death to any one person, $3,000,000 for any one accident, and $3,000,000
for property damage; and

 

(iii)        Flood hazard insurance, as provided in Section
2.27 below, if the Property is in a flood hazard area as designated by the Federal Emergency Management Agency; and

 

(iv)         Boiler and machinery insurance if a boiler or a centralized
electrical apparatus which controls a heating and/or air conditioning system is located on the Property, in an amount equal to
the full replacement value of the Improvements or $1,000,000,

 

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whichever is greater. greater. Such insurance shall be written by
companies reasonably approved by Mortgagee and legally qualified to issue such insurance in Connecticut, and shall name Mortgagor
and Mortgagee as insured parties as their interests may appear.

 

(b)           Every policy shall bear a mortgagee endorsement in favor
of Mortgagee; and any loss under any policy shall be payable to Mortgagee to be held and applied pursuant to Section 2.8(b) and
(c). Mortgagee shall also be included as a named insured on liability coverage. Every policy shall provide that it will not be
canceled or materially modified except after thirty (30) days' written notice to Mortgagor and Mortgagee, and that it will not
be invalidated by any act or neglect of Mortgagor, nor by use of the Property or Chattels for purposes more hazardous than permitted
by the policy, nor by foreclosure or other proceedings relating to the Property, nor by a change in title to the Property or Chattels.

 

(c)           Mortgagor shall deliver to Mortgagee with this Mortgage
original duplicate policies of insurance satisfactory to Mortgagee. The policies shall be accompanied by proof that premiums were
paid for the current policy year and shall evidence the existence of all insurance required to be maintained hereunder. Not less
than thirty (30) days prior to the expiration of any such insurance, Mortgagor shall deliver to Mortgagee new policies of insurance.

 

Mortgagor shall not obtain separate insurance concurrent in form
or contributing in the event of loss with that required by this Section 2.5 unless Mortgagee is included as a named insured, with
loss payable as provided herein. Mortgagor shall immediately notify Mortgagee whenever any separate insurance is obtained and shall
deliver the separate policies to Mortgagee. If Mortgagor has in force a blanket policy providing coverage for the Mortgaged Property,
Mortgagee shall accept a certified copy of the policy, including all forms and endorsements applicable to the Mortgaged Property,
provided that the policy is written by a company reasonably approved by Mortgagee and legally qualified to issue such insurance
in Connecticut and complies with provisions of this Section 2.5. The certified copy of the blanket policy shall specify the coverage
and amounts applicable to the Mortgaged Property.

 

Section 2.6.   Liens; Taxes and Other Payments.
Mortgagor will cause to be done everything necessary to preserve the lien hereof without expense to Mortgagee, including paying
and discharging all claims and demands of mechanics, laborers, materialmen and others which, if unpaid, might create a lien on
the Mortgaged Property, and paying prior to when the same becomes delinquent (to the extent payment is not provided for in Section
2.7 hereof) all real and personal property taxes, assessments, charges, franchises, income, unemployment, old age benefits, withholding,
sales and other taxes assessed against the Mortgaged Property or Mortgagor, and all insurance premiums related to the Mortgaged
Property, subject, however, to Mortgagor’s right to contest the same by posting a bond or other security sufficient to cover
the amount of the contested obligation or claim provided no lien or other encumbrance is placed upon

 

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any of the Mortgaged Property.
Upon the request of Mortgagee, Mortgagor shall deliver to Mortgagee evidence of the payment by Mortgagor of all such items.

 

Section 2.7.   Tax and Insurance Escrow.
Mortgagee may, at its option, exercisable from time to time, following the occurrence of an Event of Default, require Mortgagor
to deposit, at the time of each Installment Payment, an additional amount equal to one twelfth (1/12th) of the amount estimated
by Mortgagee to be sufficient to pay all taxes, assessments against the Mortgaged Property, insurance premiums, or any other charges
which may be imposed upon or assessed against the Mortgaged Property, the Chattels or the Mortgage, or which may arise in respect
of the occupancy, use or possession of the Mortgaged Property or the Chattels. Such amounts shall be held by Mortgagee without
liability to pay interest thereon, and on or before the dates on which they would become delinquent shall be applied by Mortgagee
to the payment of such obligations as are determined by Mortgagee to be payable. If, within one month prior to the due date of
any such obligations, the amount on deposit shall be insufficient to pay the obligations in full, Mortgagor shall, within ten (10)
days after Mortgagee's demand, deposit with Mortgagee an amount sufficient to cover such deficiency.

 

Section 2.8.   Condemnation and Casualty. (a) Mortgagor
irrevocably assigns to Mortgagee all awards, compensation or payments to which Mortgagor may become entitled by reason of its interest
in the Property (i) if the Improvements or Chattels are damaged or destroyed by fire or other casualty or (ii) if title
to the Property or Chattels or any part thereof is taken in any eminent domain proceeding or other proceeding instituted by any
person having the power of eminent domain. All awards, compensation and payments (which, less expenses of collecting the same,
are herein called “Net Proceeds”) shall be applied pursuant to this Section 2.8. Mortgagor shall promptly give
Mortgagee notice of any fire or other casualty or any proposed taking of all or any portion of the Property or Chattels. Mortgagor
shall cooperate with Mortgagee in the negotiation of any proceeding and the amount of any awards, compensation or payments and
shall take any action relating thereto requested by Mortgagee. Mortgagor will permit Mortgagee, at Mortgagee's option (if no Event
of Default has occurred, after consultation with Mortgagor), to conduct the adjustment of each such award, compensation or payment
without the participation of Mortgagor. Mortgagor appoints Mortgagee as Mortgagor's attorney-in-fact, coupled with an interest,
to obtain, adjust and settle each such for award, compensation or payment and to endorse in favor of Mortgagee all drafts and other
instruments with respect thereto. This appointment, coupled with an interest, is irrevocable until this Mortgage is terminated
by written instrument executed by an authorized office of Mortgagee.

 

(b)           If the Property or Chattels are destroyed or damaged
by fire or other casualty, the Net Proceeds payable by reason of the casualty shall be paid to Mortgagee. In its sole discretion,
Mortgagee may elect to (i) apply the Net Proceeds to prepay the Note in accordance with the terms of the Note, or (ii) hold
the Net Proceeds in escrow, require Mortgagor to promptly repair the damage to the Property and/or Chattels, in a workmanlike manner,
so as to restore the Mortgaged Property to its condition, use and market value immediately prior to such casualty, and release
the Net

 

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Proceeds as the work progresses in accordance with the provisions of subparagraph (d) of this Section 2.8. If an Event
of Default shall have occurred, the Net Proceeds shall be applied in accordance with Section 3.2. Notwithstanding the foregoing,
if the proceeds of the casualty or condemnation are less than $25,000 in any single occurrence and $50,000 in the aggregate until
the Note is fully paid, the Mortgagee shall disburse the funds directly to the Mortgagor for use in connection with restoration
of the Property.

 

(c)           If title to all or any portion of the Property or Chattels
is taken in any eminent domain or other proceeding, the Net Proceeds attributable to the Property and Chattels shall be paid to
Mortgagee. In its sole discretion, Mortgagee may elect to (i) apply the Net Proceeds to prepay the Note in accordance with
its terms, or (ii) hold the Net Proceeds in escrow, require Mortgagor, to the extent possible, to promptly repair the damage
to the Property and/or Chattels, in a workmanlike manner, so as to restore the Mortgaged Property to its condition, use and market
value immediately prior to such taking, and release the Net Proceeds as the work progresses in accordance with the provisions of
subparagraph (d) of this Section 2.8. If an Event of Default shall have occurred and be continuing, the Net Proceeds shall be applied
in accordance with Section 3.2. Notwithstanding the foregoing, if the proceeds of the casualty or condemnation are less than $25,000
in any single occurrence and $50,000 in the aggregate until the Note is fully paid, the Mortgagee shall disburse the funds directly
to the Mortgagor for use in connection with restoration of the Property.

 

(d)           If the Net Proceeds received by Mortgagee pursuant to
subparagraphs (b) or (c) above are made available to Mortgagor by Mortgagee for restoration, Mortgagor shall restore, repair, replace,
and rebuild (hereinafter referred to as “Restoration”) the Mortgaged Property as nearly as possible to its market
value, condition, use and character immediately prior to such damage or destruction. Mortgagee shall disburse portions of the Net
Proceeds from time to time as Restoration is performed, upon the following conditions:

 

(i)          No Event of Default shall have occurred and be
continuing hereunder;

 

(ii)         Approval by Mortgagee of plans and specifications
(if applicable), a budget, a construction contract and a building permit for the Restoration;

 

(iii)        Presentation to Mortgagee of a request for payment
signed by Mortgagor and specifying all work and costs for which payment is requested;

 

(iv)         Receipt by Mortgagee of a certificate from the
supervising architect or engineer for the Restoration that he/she has inspected the work for which payment is requested and that
such work has been completed in substantial accordance with the plans and specifications for the Restoration (which have been previously
submitted to and approved by Mortgagee, which approval shall not be unreasonably withheld), and that the costs to complete after
disbursement of the payment requested will not exceed the remaining Net Proceeds available;

 

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(v)          Receipt by Mortgagee of evidence from a title company
that no mechanics' or materialmen's liens or other encumbrances have been filed against the Mortgaged Property which have not been
released or bonded with security satisfactory to Mortgagee;

 

(vi)         Presentation to Mortgagee of releases or lien
waivers from all suppliers of services or materials stating that all bills for labor performed and/or materials used in the Restoration
prior to the date of the previous request for payment have been paid;

 

(vii)        In the event the Net Proceeds at any time shall
be insufficient to restore or rebuild the Property or Chattels, Mortgagor shall deposit promptly with Mortgagee funds which, together
with the Net Proceeds, shall be sufficient to restore and rebuild the Property and Chattels;

 

(viii)       In the event Mortgagor shall fail, within a
reasonable time, to complete the Restoration, Mortgagee, at its sole option and at Mortgagor's cost and expense (first using Net
Proceeds, if any, received by Mortgagor), may complete the Restoration or cause the Restoration to be completed for or on behalf
of Mortgagor and for such purposes may do all necessary acts; and

 

(ix)         If the Net Proceeds are made available by Mortgagee
for Restoration, any surplus which may remain out of the Net Proceeds after payment of the cost of Restoration shall, at the option
of Mortgagee, be applied to the indebtedness evidenced by the Note in accordance with its terms or be paid to any party entitled
thereto and under the conditions that Mortgagee may require.

 

(e)           Under no circumstances shall Mortgagee become obligated
to take any action to restore the Mortgaged Property or any portion thereof. Mortgagee shall not be obligated to see to the proper
application of any funds held and released pursuant to subparagraph (d) above.

 

Section 2.9.   Compliance with the Leases
and Contracts. Mortgagor is not in default under any Lease or Contract. Mortgagor will perform all obligations required
to be performed by it as lessor or landlord under the Leases, will compel performance by Lessees of all their obligations under
the Leases, and will give Mortgagee notice of all defaults under the Leases promptly after obtaining knowledge thereof. Mortgagor
will not take or omit to take any action, other than as permitted by a Lease, if the action or omission would release any Lessee
from its obligations under the Lease or result in the termination or modification of the Lease. Mortgagor will perform all obligations
required of it under any Contract. Mortgagor has entered into, or will cause the Lessee under the Operating Lease to enter into,
and will maintain in full force and effect, or cause the Lessee under the Operating Lease to maintain in full force and effect,
all Contracts necessary for the use, maintenance and operation of the Property and Chattels.

 

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Section 2.10.   Collection of Rents.
Mortgagor agrees not to collect or accept the payment of any rents or other income or profit from, or on account of, any Lease
or the use or occupation of the Property, more than thirty (30) days in advance of the time when such payment becomes due, unless
such amount is reserved by Mortgagor as a security deposit or is used by Mortgagor for the reasonable, necessary expenses (including
Installment Payments) relating to the Mortgaged Property.

 

Section 2.11.   Modification of the Leases
and Contracts. Mortgagor will not permit the material modification, cancellation or termination of any Lease or any Contract
and will not enter into any Lease, except on a form of lease previously approved by Mortgagee and in the ordinary course of business,
without the prior written consent of Mortgagee.

 

Section 2.12.   Assignment of Leases. (a)          Each
Lease shall be satisfactory to Mortgagee in form and substance and shall include a provision confirming that, unless Mortgagee
otherwise unilaterally elects in writing, the Lease is subordinate to the lien of this Mortgage and consenting to the assignment
of the Lease to Mortgagee made herein. Mortgagor will furnish to Mortgagee, upon its request, copies of each Lease and any other
information relating to each Lease and the Lessee thereunder. Mortgagor will, upon execution of this Mortgage, execute a written
notice to each Lessee directing the Lessee to pay directly rent to Mortgagee and shall deliver said notices to Mortgagee. Mortgagee
may (but shall not be obligated to) deliver said notices to the Lessees only after the occurrence of an Event of Default.

 

(b)          As further and additional security for the performance
of the terms and conditions of this Mortgage, Mortgagor hereby assigns, transfers and sets over to Mortgagee all rents, royalties,
issues, profits, revenues, income and other benefits to which Mortgagor may now or hereafter be entitled from the Mortgaged Property.
The rights, duties and obligations of the parties may be governed by an Assignment of Leases and Rents executed by Mortgagor and
Mortgagee and recorded in the Land Records of the jurisdiction where the Land is located.

 

Section 2.13. Compliance with Laws; Environmental
Laws.

 

(a)          Mortgagor will comply with, or cause to be complied
with, in all material respects, all (i) laws, statutes, ordinances, regulations, orders, rules, decrees and similar requirements
of federal, state, municipal and any other governmental authorities, and (ii) contracts, restrictions, and other instruments
which are recorded or of which Mortgagor has knowledge, which are applicable to Mortgagor or to the Mortgaged Property.

 

(b)          Mortgagor covenants and warrants that it will comply
with and conform to, and will exercise commercially reasonable efforts to require any and all Lessees and other users and occupants
of the Property to comply with and conform to, in all material respects, all applicable federal, state and local laws, ordinances,
rules and regulations of any governmental or regulatory authority relating to health and safety or pollution or

 

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protection of the
environment (collectively, “Environmental Laws”), including, without limitation, those relating to (i) the
transportation, storage, placement, handling, treatment, discharge, generation, manufacture, production or disposal (collectively,
“Treatment”) of any asbestos or any waste, substance or material containing asbestos, any oil or petroleum products,
lead paint or other material containing lead, urea formaldehyde, foam insulation, transformers or other equipment containing polychlorinated
biphenyls, flammable explosives, radioactive materials and any other hazardous, toxic or dangerous waste, substance or material
subject to regulation under the Clean Water Act, the Clean Air Act, the Comprehensive Environmental Response, Compensation and
Liability Act, the Resource Conservation and Recovery Act, the Superfund Amendment and Reauthorization Act, the Toxic Substances
Control Act, the Occupational Safety and Health Act, Title 22a of the Connecticut General Statutes (or Environmental Laws of any
other state in which the Land is located) and any other Environmental Law, now or hereafter in effect (each a “Contaminant”
and individually or collectively, “Contaminants”), and those relating to (ii) the spilling, leaking, migrating,
pumping, pouring, emitting, emptying, injecting, escaping, leaching, dumping, discharging or disposing into the environment or
existence in the water, soil or air of any Contaminant upon, in, from or affecting the Property and Chattels, whether sudden or
gradual, accidental or anticipated, threatened or occurring or of any other nature (collectively, a “Release”).

 

(c)          Immediately upon receipt of any Notice (as defined in
the next sentence), Mortgagor shall deliver to Mortgagee a complete copy of any written Notice or a complete report in writing
of the content of any other Notice. “Notice” shall mean any note, notice or report of any of the following, whether
received prior to or after the date of this Mortgage:

 

(i)          any suit, proceeding, investigation, order, consent
order, injunction, writ, award or action relating to or affecting or indicating the Treatment of any Contaminants upon, in, from
or which affects the Property and Chattels;

 

(ii)         any Release;

 

(iii)        any dispute relating to any Release or to Mortgagor's
or any other party's Treatment of any Contaminant upon, in, from or affecting the Property and Chattels;

 

(iv)         any claims by or against any insurer related to
or arising out of any Release or the Treatment of any Contaminant upon, in, from or affecting the Property and Chattels;

 

(v)          any recommendations or requirements of any governmental
or regulatory authority, insurer or board of underwriters relating to any Release or to any Treatment or Contaminant upon, in,
from or affecting the Property and Chattels;

 

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(vi)         the breach of any legal requirement related to
any Release or to the Treatment of Contaminants upon, in, from or affecting the Property and Chattels; or

 

(vii)        any Lessee, licensee, concessionaire, manager,
or other party or entity occupying or using the Property or Chattels or any part thereof having engaged in or engaging in the Treatment
of any Contaminant upon, in, from or affecting the Property and Chattels that is not in compliance with Environmental Law.

 

(d)          In the event that (i) Mortgagor causes, suffers
or permits, directly or indirectly, any Release, or (ii) any Release has occurred during the term of this Mortgage, then Mortgagor
shall immediately take all of the following actions: (A) notify all applicable governmental and regulatory authorities as
required by law; (B) notify all insurance carriers, if required by the policy; (C) notify Mortgagee as provided in Section
4.4; (D) devise a plan (the “Clean-up Plan”) for the assessment, clean-up, remediation and removal of the
Release and any contamination related to the Release, which Clean-up Plan, if required by any Environmental Law, must be approved
by applicable governmental and regulatory authorities, prior to any such clean-up, remediation or removal and provide a copy of
the Clean-up Plan to Mortgagee; (E) take all steps necessary or desirable in Mortgagor's reasonable judgment, and otherwise
in accordance with the Clean-up Plan, to clean up (or cause the responsible party to clean up) any such Release or any Contamination
related to such Release; (F) fully restore (or cause the responsible party to restore) the Property and the Chattels to their
condition prior to the Release; (G) allow Mortgagee to monitor and inspect all clean up and restoration related to such Release;
and (H) post a bond (or cause the responsible party to post a bond) with Mortgagee (drawn upon a company satisfactory to Mortgagee)
or deposit an amount of money in an escrow account under Mortgagee's name upon which bond or escrow Mortgagee may draw, and which
bond or escrow shall be in an amount sufficient in Mortgagee's reasonable judgment to meet all of Mortgagor's obligations under
this Section 2.13(d). Mortgagee shall have the right to draw against the bond or escrow in its discretion in the event that Mortgagor
does not meet its obligations under this Section 2.13(d), which amount shall be used therefor. In addition to the foregoing right
to draw against any bond or escrowed funds, Mortgagee, at its election and in its sole discretion, may (but shall not be obligated
to) otherwise cure any failure on the part of Mortgagor or any Lessee of the Property and Chattels to comply with any Environmental
Law, including, without limitation, taking any or all of the following actions:

 

(i)          arrange and pay for the assessment, clean up or
containment of Contaminants found on the Property and Chattels to the extent required by Environmental Law;

 

(ii)         pay on behalf of Mortgagor or any Lessee or other
occupant of the Property, any fines or penalties imposed by any governmental or regulatory authority in connection with such Contaminants;
and

 

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(iii)        make any other reasonable payment or perform
any other act which may prevent or abate a Release, facilitate the clean up thereof, or prevent a lien from attaching to the Mortgaged
Property.

 

Any partial exercise by Mortgagee of the remedies set forth in this
Section 2.13 or any partial undertaking on its part to cure Mortgagor's or Lessee's or any other occupant's failure to comply with
any Environmental Law, shall not obligate Mortgagee to complete the actions taken or to expend further sums to cure such noncompliance;
neither shall the exercise of any such remedies operate to place upon Mortgagee any responsibility for the operation, control,
care, management or repair of the Property or Chattels.

 

Any out of pocket amounts paid or costs incurred by Mortgagee as
a result of any of the above shall be a cost incurred for the protection of the Mortgaged Property,
including reasonable attorneys fees and court costs, and shall be immediately due and payable by Mortgagor, and until
paid shall be added to and become a part of the indebtedness and obligations secured by this Mortgage; and Mortgagee, by making
any such payment or incurring any such costs, shall be subrogated to any rights of Mortgagor or Lessee or any occupant of the Property
to seek reimbursement of such costs from any third parties, including, without limitation, any “responsible party” under
the Environmental Laws.

 

(e)          Mortgagor hereby indemnifies and agrees to defend Mortgagee
and hold Mortgagee and its officers, directors, shareholders, employees, agents, participants, and their respective heirs, successors
and assigns (collectively, “Indemnified Parties”) harmless from and against, and to pay and, if applicable, to
reimburse the Indemnified Parties with respect to, any and all claims, injuries, losses, costs, damages, liabilities and expenses
(including reasonable attorneys' fees and court costs) incurred by or asserted against the Indemnified Parties by reason of or
arising out of (and not resulting from Mortgagee’s gross negligence or willful misconduct): (i) the breach of any representation
or undertaking of Mortgagor under this Section 2.13, or (ii) the Treatment of any Contaminant by Mortgagor or by any Lessee,
licensee, concessionaire, manager, or other party occupying or using the Property or Chattels, or (iii) any release governed
by the terms of this Section 2.13. The foregoing indemnification shall survive the release or other discharge of this Mortgage.

 

(f)          Mortgagor, at the request of Mortgagee and at Mortgagor's
sole cost and expense, shall from time to time, hire such environmental engineering firms as may be satisfactory to Mortgagee to
perform environmental site assessments of the Property in order to determine Mortgagor's compliance with the terms of this Section
2.13. In addition, Mortgagee shall have the right, but not the obligation, to enter upon, inspect, monitor and conduct, at Mortgagor's
sole cost and expense, such reasonable environmental tests and surveys of the Property and Mortgagor's use of the Property as Mortgagee
deems appropriate in order to determine Mortgagor's compliance with the terms of this Section 2.13, but, prior to the occurrence
of an Event of Default, not more than once per year.

 

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(g)          Mortgagor hereby represents, warrants and confirms to
Mortgagee that: (i) Mortgagor is not engaged, has never been engaged and will not engage (except to remediate a Release) in
the Treatment of any Contaminants upon, in, from or affecting the Property; (ii) Mortgagor has complied and will comply with
all Environmental Laws in all material respects; (iii) to Mortgagor’s actual knowledge, there is no suit, claim, proceeding,
investigation, order, consent order, injunction, writ, award or action threatened, pending, or in effect, which relates to Releases
or the Treatment of any Contaminant upon, in, from or affecting the Property and which involves or affects Mortgagor or the Property
or Chattels; nor does Mortgagor know of any basis for any such suit, claim, proceeding, investigation, order, consent order, injunction,
writ, award or action; (iv) no governmental or regulatory authority, including, without limitation, the United States Environmental
Protection Agency and the Connecticut Department of Environmental Protection, has made a determination or finding that (A) Mortgagor
is a transporter of Contaminants; or (B) to Mortgagor’s actual knowledge, there has been any present Release; (v) to
Mortgagor's actual knowledge, after due diligence and investigation, no agent, Lessee, licensee, concessionaire, manager or other
party or entity occupying or using the Property or any part thereof has engaged, engages or will engage in the Treatment of any
Contaminant upon, in, from or affecting the Property, except to the extent that Contaminants are used, stored, transported and
disposed of by Mortgagor or Peregrine Way of CT, LLC in compliance with Environmental Law; and (vi) Mortgagor has not received
any Notice, and is not aware of the existence of any Notice. Mortgagor shall immediately notify Mortgagee in the event that any
of the representations set forth in this Section 2.13 (g) are no longer true in any material respect at any time.

 

(h)          Mortgagor covenants and agrees that all Leases, licenses
and agreements of any kind hereafter executed by Mortgagor which permit any party to occupy, possess, or use in any way the Property
or any part thereof, whether oral or written, shall include an express prohibition of the Treatment of any Contaminant upon, in,
from or affecting the Property, and the failure to comply with such prohibition shall expressly constitute a default under any
such Lease, license and agreement. All Leases, licenses and agreements to which Mortgagor is a party shall also expressly require
that the parties to such Leases, licenses and agreements shall deliver upon request estoppel certificates to Mortgagor and to Mortgagee
expressly stipulating whether any party to such Lease, license or agreement is engaged in or has engaged in the Treatment of any
Contaminant upon, in, from or affecting the Property, and whether such party has caused a Release and whether, to the best of its
knowledge, a Release has otherwise occurred. Notwithstanding the foregoing, Mortgagor and Peregrine Way of CT, LLC may use, store,
transport and dispose of Contaminants, provided that such use, storage and disposal is in compliance with Environmental Law.

 

(i)          The representations and undertakings of Mortgagor in
this Section 2.13 shall survive the expiration or termination of this Mortgage and shall survive in the event Mortgagee shall exercise
its rights under Article 3 hereof.

 

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Section 2.14.   Sale or Other Transfer. (a)           Mortgagor
will not, directly or indirectly, voluntarily or involuntarily, convey, transfer, assign or otherwise dispose of the Mortgaged
Property or any interest therein or in Mortgagor, except for the lease by Mortgagor to Peregrine Way of CT, LLC to operate as an
assisted living facility thereon and the related residents’ interests in connection therewith. Notwithstanding the foregoing,
NorthStar Realty Healthcare, LLC (“NRH”) shall be permitted, without the consent of the Bank, but following
written notification to the Bank, to transfer its ownership interests in the Borrower in favor of (i) NorthStar Healthcare Income,
Inc., a Maryland corporation, a public, non-traded real estate investment trust (“NHI”), or (ii) any Affiliate (as
such term is defined in the Loan Agreement) of NorthStar Realty Finance Corp., a Maryland corporation. There shall be no restrictions
on the ability of NRH to transfer its ownership interests in other entities in favor of NHI.

 

(b)          If Mortgagor shall make or permit any transfer, assignment
or disposition of any interest in the Mortgaged Property, Mortgagee shall have the right to deliver notices to, receive payments
from, give waivers or consents to, and otherwise deal with, the assignee or transferee as though the assignee or transferee were
Mortgagor hereunder, but without discharging Mortgagor from any liability hereunder or under the Note, and Mortgagor shall remain
primarily liable, as a principal and not as a surety, for the payment of the Note and the performance of its obligations hereunder.
Mortgagor hereby waives all suretyship or similar defenses which might otherwise be available to it. Mortgagee's dealing with an
assignee or transferee shall not be deemed a waiver of Mortgagor's obligations under Section 2.14(a).

 

Section 2.15.   Performance of Note, Mortgage
and Other Loan Documents. Mortgagor will perform, observe and comply with all provisions of the Note, the Loan Agreement,
this Mortgage, and every other document or instrument securing, evidencing or executed in connection with the Loan, including,
without limitation, any interest rate protection agreement or other interest hedging agreement (collectively, the “Loan
Documents”), and will promptly pay the principal, interest and all other sums which become due in connection with the
Note, the Loan Agreement, this Mortgage or any other Loan Document in accordance therewith.

 

Section 2.16.   Existence and Authority.
Mortgagor is duly established and validly existing under the laws of the state in which it is organized, as stated in the first
paragraph of this Mortgage, has full power to own the Mortgaged Property and conduct its business as now conducted and to enter
into and perform its obligations under this Mortgage, the Note and all other agreements of Mortgagor delivered in connection with
this Mortgage, and shall remain in good standing. The management (whether by change of manager(s) or members of the limited liability
company) and legal and beneficial ownership of Mortgagor shall not, except as otherwise provided in subparagraph (a) above, change
during the term of the Note without the prior written consent of Mortgagee. The execution and delivery of this Mortgage and of
any other instruments executed in connection herewith constitutes a representation by Mortgagor and the individual(s) signing this
Mortgage and said instruments that such execution and delivery are made with the authorization of Mortgagor, and that such execution
and

 

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delivery do bind Mortgagor and any successor to Mortgagor in accordance with the provisions of this Mortgage and the Note secured
hereby. If Mortgagor is a corporation, limited liability company, limited liability partnership, statutory trust or similar entity,
Mortgagor shall preserve and keep in force its existence in the state of organization specified in the first paragraph of this
Mortgage and Mortgagor shall not merge with any other entity or change its type of organization or change its state of organization.

 

Section 2.17.   Inspection; Books and Records.
Mortgagor will (i) keep records and books of accounts reflecting all its financial transactions, in accordance with generally
accepted accounting principles consistently applied and (ii) permit Mortgagee by its agents, accountants and attorneys, at
reasonable times and upon reasonable notice from time to time (at least annually), or at any time if an Event of Default shall
have occurred under this Mortgage, to visit and inspect the Mortgaged Property and examine Mortgagor's records and books of account,
to make abstracts and reproductions thereof and discuss with Mortgagor its affairs, finances and accounts.

 

Section 2.18.   Financial Information, Notices.
Mortgagor shall deliver to Mortgagee the financial, notifications and other information required pursuant to the terms of the Loan
Agreement.

 

Section 2.19   Appraisals; Value of Property.
Mortgagor shall permit Mortgagee to prepare or cause to be prepared, from time to time at the sole option and discretion of the
Mortgagee, appraisals of the Mortgaged Property, at Mortgagor's sole cost and expense,
and Mortgagor shall fully cooperate in connection with the preparation thereof.

 

Section 2.20.   Material Occurrence.
Mortgagor shall promptly notify Mortgagee of the occurrence of any event or events which may, individually or in the aggregate,
have a material adverse effect upon (i) Mortgagor's business, assets, condition (financial or otherwise) or operations, (ii) Mortgagor's
ability to carry out its obligations hereunder or (iii) the Mortgaged Property. If a material, adverse change occurs in Mortgagor's
business, assets, condition (financial or otherwise) or operations Mortgagor shall promptly take action to remedy the same to the
reasonable satisfaction of Mortgagee.

 

Section 2.21.   Further Assurances.
Mortgagor will, at its expense, cause to be done, executed, acknowledged and delivered such further acts, instruments and assurances
as may be reasonably required by Mortgagee for the better Granting of the Mortgaged Property hereby Granted or intended to be Granted,
or which Mortgagor may become bound to Grant to Mortgagee, or for carrying out the intentions of this Mortgage.

 

Section 2.22.   Recording. Mortgagor,
upon the execution and delivery of this Mortgage, and for supplements and amendments, promptly thereafter, shall cause this Mortgage,
each supplement and amendment hereto, and the financing statements pertaining to the Mortgaged Property (collectively, the “Recordable
Documents”), to be filed, registered and recorded as may be required by law to publish notice thereof and

 

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create, perfect
and protect the lien hereof upon the Mortgaged Property. Mortgagor, from time to time, shall cause to be performed any other act
required by law, and will cause to be executed all further instruments (including financing, continuation and similar statements)
reasonably requested by Mortgagee for the creation, perfection, publication and protection of Mortgagee's interest in the Mortgaged
Property, and will cause the same to be filed, registered and recorded as required by law. If Mortgagor shall fail to comply with
this Section 2.22, Mortgagee is hereby irrevocably authorized (but is not obligated), as agent and attorney-in-fact of Mortgagor,
to comply with this Section 2.22 (including the execution, delivery and filing of such instruments). Mortgagor will cause to be
paid (or will reimburse Mortgagee if it pays) all filing, registration and recording taxes and fees incident thereto and all expenses
(including Mortgagee's reasonable attorneys' fees, if any), taxes and other charges in connection with the preparation, execution,
delivery or acknowledgement of the Recordable Documents, any instruments of further assurance and the Note. The Mortgagee is expressly
authorized to authenticate and to file or communicate to a filing office a financing statement or other record identifying the
collateral subject to the liens and security interests granted in this Mortgage and any proceeds thereof or identifying such collateral
as “all personal property” or “all assets” of the Mortgagor and naming the Mortgagor as “debtor”
thereunder.

 

Section 2.23.   UCC Representations.
Mortgagor represents that Mortgagor's principal place of business is the address set forth in the introductory paragraph to this
Agreement and that Mortgagor has no other place of business. Mortgagor agrees to maintain complete and accurate records listing
and describing the personal property subject to the lien of this Mortgage and to deliver such records to Mortgagee from time to
time upon request of Mortgagee.

 

Section 2.24.   Mechanics' and Other Liens.
The Mortgagor shall cause the prompt (but in no event later than thirty (30) days after imposition), full and unconditional discharge
of all liens or pay, from time to time when the same shall become due, (or provide a bond issued by an insurer reasonably satisfactory
to the Mortgagee and in form and amount reasonably satisfactory to the Mortgagee), all claims and demands of mechanics, materialmen,
laborers and others which, if unpaid, might result in, or permit the creation of, a lien on the Mortgaged Property or any part
thereof, or on the revenues, rents, issues, income or profits arising therefrom and, in general, the Mortgagor shall do, or cause
to be done, at the cost of the Mortgagor and without expense to the Mortgagee, everything necessary to fully preserve the lien
of this Mortgage. In the event the Mortgagor fails to make payment of such claims and demands and a lien is attached to the Mortgaged
Property, or any part thereof, or on the revenues, rents, issues, income or profits arising therefrom, the Mortgagee may, but shall
not be obligated to, make payment thereof, and that Mortgagor shall, on demand, reimburse the Mortgagee for all sums so expended.

 

Section 2.25.   Costs of Defending and Upholding
the Lien. In the event that any litigation, action or proceeding is commenced to collect the Note or foreclose this Mortgage,
or in which the Mortgagee is made a party, or in which, or in which, in the

 

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opinion of the Mortgagee, it becomes necessary to protect,
sustain, defend or uphold the lien of this Mortgage, or which involves any controversy with respect to the Note, this Mortgage
or any other document securing the Note, the Mortgagor shall, on demand, reimburse the Mortgagee for all reasonable expenses (including,
without limitation, reasonable attorneys' fees and appellate attorneys' fees (including allocable costs of staff counsel)) incurred
by the Mortgagee in any such litigation, action or proceeding.

 

Section 2.26.   Costs of Enforcement.
The Mortgagor agrees to bear, pay and reimburse the Mortgagee for all expenses (including reasonable attorneys' fees and appellate
attorneys' fees (including but not limited to allocable costs of staff counsel)) or incidental to the enforcement, foreclosure,
compromise or settlement of this Mortgage or the Note, and for the curing thereof, or for defending or asserting the rights and
claims of the Mortgagee in respect thereof, by litigation or otherwise. All rights and remedies of the Mortgagee shall be cumulative
and may be exercised singly or concurrently.

 

Section 2.27.   Flood Insurance.
If, during origination or at any time during the life of the loan it is determined that all or a portion of the improvements situated
on the Mortgaged Property are located within an area designated as a Special Flood Hazard Area, the Mortgagor shall obtain and
maintain flood insurance with respect to the Mortgaged Property continuously during the life of the obligations secured by this
Mortgage in an amount equal to the full insurable value of the Mortgaged Property. In the event the Mortgagor fails to do so the
Bank shall obtain and maintain such flood insurance with respect to the Mortgaged Property continuously during the life of the
obligations secured by this Mortgage and the cost thereof shall be deemed an obligation secured
by this Mortgage and shall bear interest at the “Default Rate” as set forth in the Note.

 

ARTICLE 3

 

Events of Default and Remedies

 

Section 3.1.   Events of Default.
If any of the following Events of Default shall happen:

 

(a)          if default shall be made in any payment of any
principal, premium or interest on the Note, prior to the same becoming delinquent in accordance with the terms thereof, whether
at maturity or by acceleration or as part of any prepayment or otherwise, as provided in the Note and this Mortgage or in the payment
of any other amount due under any of the Loan Documents, after giving effect to any applicable cure or grace period; or

 

(b)          if a default shall be made in the performance
of any covenant, condition or agreement contained in any Permitted Encumbrance, and such default shall have continued for thirty
(30) days after notice thereof is sent by Mortgagee to

 

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Mortgagor, provided that the Mortgagor has promptly notified the Mortgagee
thereof in accordance with the terms of the Loan Documents; or

 

(c)          if any representation or warranty of Mortgagor
set forth in this Mortgage, the Note or any other Loan Documents, or in any notice, certificate, demand or request delivered to
Mortgagee pursuant to this Mortgage, the Note or any other Loan Documents, shall prove to be incorrect or misleading in any material
and adverse respect as of the time when made; or

 

(d)          if default shall be made, in any material respect,
in the observance or performance of any covenant or agreement contained in Article 2 of this Mortgage; or

 

(e)          if default shall be made, in any material respect,
in the due observance or performance of any other material condition or agreement of Mortgagor contained herein or in the Note
and not otherwise a default hereunder, and such default shall have continued for thirty (30) days after notice thereof is sent
by Mortgagee to Mortgagor, provided that the Mortgagor has promptly notified the Mortgagee thereof in accordance with the terms
of the Loan Documents; or

 

(f)          if all or any material part of the Property is
taken in any eminent domain or other proceeding or if the value of the Property shall be materially impaired thereby, either temporarily
for a period in excess of ninety (90) days or permanently; or

 

(g)          if the Property is demolished, removed, substantially
altered (except with the written consent of Mortgagee), abandoned or materially destroyed or damaged by fire or other casualty
(unless restoration is proceeding pursuant to Section 2.8); or

 

(h)          the occurrence of an event which, pursuant to
the terms of the Loan Agreement or any of the other Loan Documents, is deemed to constitute an Event of Default thereunder or hereunder
after giving effect to any applicable notice or grace period;

 

then, upon and after the occurrence thereof:

 

I.          Notwithstanding anything contained in the Note, at the
option of Mortgagee and without the requirement of notice to Mortgagor, the entire unpaid principal amount of the Note, accrued
but unpaid interest thereon and all other amounts owing pursuant to the other Loan Documents shall become immediately due and payable,
and/or

 

II.         To the extent permitted by applicable law, Mortgagee
personally, or by its agents or attorneys, may enter the Mortgaged Property, take possession thereof and exclude Mortgagor, its
agents and servants therefrom; and may use, lease, operate,

 

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manage and control the Mortgaged Property and conduct the business
of Mortgagor at the Mortgaged Property, to the extent permitted by law, may maintain and restore the Mortgaged Property, may insure
and reinsure the Mortgaged Property and may make all necessary and proper repairs, replacements and any useful additions and improvements
thereto, all as Mortgagee may deem advisable. Whether or not Mortgagee shall have entered or taken possession of the Mortgaged
Property, to the extent permitted by applicable law, Mortgagee shall be entitled to collect and receive all rents, profits and
other income of the Mortgaged Property. The moneys so received shall be applied in the order of priority set forth in Section 3.2.
Mortgagor shall pay to Mortgagee the expenses of conducting the business of the Mortgaged Property and of all maintenance, replacements,
additions and improvements and taxes, assessments, insurance and prior or other charges upon the Mortgaged Property, as well as
reasonable compensation for the services of attorneys (including compensation and expenses in connection with any appeal), servants
and agents engaged and employed by Mortgagee, and all such amounts shall be secured by this Mortgage, and/or

 

III.        To the extent permitted by law, Mortgagee may, with
or without entry or taking possession, personally or by its agents or attorneys, sell all or any of the Mortgaged Property, as
an entirety or in parcels, and all interest therein, including any right of redemption, at one or more private or public sales
and at such times and places and upon such terms as Mortgagee may specify in the notice of sale to be given to Mortgagor or as
may be required by law. Mortgagee may conduct any number of such sales from time to time. The power of sale shall not be exhausted
by any one or more such sales, but shall continue unimpaired until all of the Mortgaged Property shall have been sold or the Note
and all indebtedness of Mortgagor secured hereby paid. Mortgagee shall also have any available STATUTORY POWER OF SALE, and/or

 

IV.         Mortgagee may take all steps it deems necessary
to protect and enforce its rights and remedies provided hereby or by applicable law, whether by action or proceeding in equity
or at law (for complete or partial foreclosure of this Mortgage or for the specific performance of any provision of the Note or
this Mortgage or in aid of the performance of any power herein granted or for the enforcement of any other appropriate legal or
equitable remedy), and/or

 

V.          Mortgagee shall have all the rights and remedies
of a secured party under the UCC with respect to any portions of the Mortgaged Property which are governed by the UCC.

 

Section 3.2.   Application of Proceeds.
The proceeds of any sale made by virtue of this Article 3, and any other sums which may be held by Mortgagee as part of the Mortgaged
Property, shall be applied in the following order: First, to the payment of the reasonable costs and expenses of Mortgagee
in enforcing the provisions of this Mortgage and the Note or any other Loan Document and enforcing its remedies thereunder and
hereunder and the costs and expenses of the sale and of any judicial proceeding wherein the sale may be made, including reasonable
attorneys' fees and expenses; Second, to the payment of amounts then owing on the Note in such order as

 

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Mortgagee shall
determine; Third, to the payment of any other sums secured by this Mortgage; and Fourth, to the payment of the surplus
to any person entitled thereto.

 

Section 3.3.   Purchase by Mortgagee.
Upon any sale made under this Article 3 (whether under any power of sale herein granted or by virtue of judicial proceedings or
of a judgment or decree of foreclosure and sale), Mortgagee may bid for and acquire the Mortgaged Property or any part thereof
and pay the purchase price by crediting the indebtedness of Mortgagor hereby secured with the net proceeds of sale after deduction
of all costs, expenses and other charges to be paid from the sale proceeds as provided for in this Mortgage (the “Sale
Net Proceeds”). The person making the sale shall accept the settlement without requiring production of the Note, and the
indebtedness secured by this Mortgage shall be deemed credited with the Sale Net Proceeds. Mortgagee, upon acquiring the Mortgaged
Property or any part thereof, shall be entitled to hold, deal with and sell the same in any manner permitted by law.

 

Section 3.4.   Receivers. After
the happening of any Event of Default, and immediately upon commencement of any legal proceeding by Mortgagee for or in aid of
enforcement of the Note or of this Mortgage, Mortgagor covenants and agrees that, to the extent permitted by law, and subject to
the discretion of a court having jurisdiction thereover, Mortgagee shall be entitled to the appointment of one or more receivers
of the Mortgaged Property without: (a) notice to Mortgagor, (b) regard
to whether Mortgagor has committed waste or permitted deterioration of the Property, (c) regard
to the adequacy of the security pursuant to this Mortgage, and (d) regard to the solvency of Mortgagor
or any other person, firm or corporation who or which may be liable for the payment of the Loan or other obligations under the
Loan Documents. Mortgagor hereby irrevocably consents to such appointment.

 

Section 3.5.   Remedies Cumulative.
No remedy herein shall be exclusive of any other remedy, and each remedy shall be cumulative and in addition to every other remedy
given hereunder or existing at law or in equity; every power and remedy given by this Mortgage to Mortgagee may be exercised from
time to time and as often as may be deemed necessary by Mortgagee. Mortgagee's delay or failure to exercise any of its rights or
powers contained herein or in the Note, upon any Event of Default, shall not impair such rights or powers or be construed as a
waiver of such Event of Default or an acquiescence therein.

 

Section 3.6.   Waiver of Rights.
Mortgagor will not claim, take or accept any benefit of any stay, extension or moratorium law which may affect the terms of this
Mortgage, or of any law providing for the valuation or appraisal of the Mortgaged Property prior to any sale thereof; nor claim
or exercise any right to redeem the property sold or to be sold. Mortgagor, to the extent permitted by applicable law, hereby waives
all benefit of any such law and covenants not to hinder or delay the execution of any power or remedy herein granted or available
at law or in equity to Mortgagee, and will suffer and permit the execution of every power and remedy as though no such law existed.
Mortgagor waives all right to have the Mortgaged Property marshaled upon any sale hereunder or foreclosure hereof. Mortgagor waives
notice of non-payment,

 

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demand, presentment, protest and all forms of demand and notice with respect to its obligations under the
Note and this Mortgage and with respect to the Mortgaged Property.

 

Section 3.7.   Performance by Mortgagee.
If Mortgagor shall not cause to be performed any obligation contained herein then, after ten (10) days' notice from Mortgagee,
Mortgagee may, but shall NOT be required to, perform and make advances to perform said obligations. All sums so advanced shall
be added to the principal due on the Note and shall be secured by the lien hereof. Mortgagor will repay on demand all sums so advanced
with interest at the default interest rate charged under the Note from the dates of the advances. If Mortgagor shall fail to repay
any sums so advanced, Mortgagee may apply any payments made under the Note to repay the advances plus interest at the default interest
rate under the Note, any balance to be applied to the payments due under the Note.

 

Section 3.8.   Late Charges. Mortgagee
may collect a late charge equal to five (5%) percent of any installment of principal or interest, or of any other amount due to
the Mortgagee which is not paid within ten (10) days of the due date thereof, provided, however, that the late charge will accrue
on the final payment due under the Note only after the expiration of thirty (30) days, to defray the extra expense involved in
handling such delinquent payment. The minimum late charge shall be Fifty ($50.00) Dollars.

 

ARTICLE 4

 

Miscellaneous

 

Section 4.1   Satisfaction. If the
Note shall have become due and payable (by maturity or acceleration), and Mortgagor shall have paid the full amount thereof and
all other sums secured hereby, then, at the expense of Mortgagor, Mortgagee shall execute and deliver to Mortgagor such instruments
as shall be required to discharge this lien.

 

Section 4.2   Future Advances. This
Mortgage is an Open-End Mortgage and the holder hereof shall have all of the rights, powers and privileges to which the holder
thereof is entitled under law, and if further advances are made to Mortgagor by Mortgagee at any time prior to the full payment
of this Mortgage, such advances, with interest thereon, shall be secured by this Mortgage with the same priority as the initial
advance of principal under the Note when evidenced by promissory notes stating that such notes are secured hereby. At no time shall
the principal amount of indebtedness secured by this Mortgage exceed the original amount of the Note nor shall the maturity of
such further advances secured hereby extend beyond the time of repayment of the Note.

 

Section 4.3.   Illegal Provision; Conflicts.
If any provision contained herein or in the Note or any other Loan Document shall be held invalid, illegal or unenforceable, such
invalidity, illegality or unenforceability shall not affect any other provision hereof,

 

    	23

    	 

    

 

and this Mortgage shall be construed as
if such provision had not been contained herein. If the terms of this Mortgage shall conflict with the provisions of any other
Loan Document, the terms of this Mortgage shall govern.

 

Section 4.4.   Notices; Modification; Waiver.
All notices, demands and other communications made pursuant to this Mortgage shall be in writing. Any notice to Mortgagor or Mortgagee
shall be deemed to have been given if mailed, by certified or registered mail, postage prepaid, return receipt requested, or if
delivered by nationally recognized, overnight air courier service, return receipt requested, charges prepaid, to the Mortgagor
at the address of the Mortgagor appearing in the first paragraph of this Mortgage with copies to:

 

NorthStar Realty Healthcare, LLC

2 Bethesda Metro Center, Suite 1300

Bethesda, MD 20814

Attn: Doug Bath, Chief Investment Officer

 

and to

 

Arent Fox LLP

1717 K Street, N.W.

Washington, DC 20036-5342

Attn: Kimberly Wachen, Esq.

Fax: (202) 857-6395

 

and tothe Mortgagee addressed to

 

Webster Bank

National Association

145 Bank Street, Waterbury

Connecticut 06702

 

with a copy to

 

Manager, Hartford Commercial Department

Webster Bank, National Association

CityPlace II

185 Asylum Street

Hartford, Connecticut 06103

 

or at such other address as such party shall
have specified by notice to the other party. This Mortgage may not be modified except by a written instrument executed by Mortgagor
and Mortgagee. No requirement contained in this Mortgage may be waived unless such waiver is contained in a writing signed by Mortgagee,
nor shall any waiver be deemed a waiver of any subsequent default of Mortgagor.

 

    	24

    	 

    
 

Section 4.5.   Maximum Interest Payable.
It is the intention of parties hereto to comply strictly with all applicable usury laws; and, accordingly, in no event and upon
no contingency shall Mortgagee be entitled to receive, collect, or apply as interest, any interest, fees, charges, or other payments
equivalent to interest, in excess of the maximum amount which may be charged from time to time under applicable law; and, in the
event that any party ever receives, collects, or applies as interest any such excess, such amount which would be excessive interest
shall be applied to the reduction of the principal amount of the indebtedness evidenced hereby; and, if the principal amount of
the indebtedness evidenced hereby and all interest thereon is paid in full, any remaining excess shall forthwith be paid to Mortgagor
or other party lawfully entitled thereto. In determining whether or not the interest paid or payable, under any special contingency,
exceeds the maximum which may be lawfully charged, Mortgagor and Mortgagee shall, to the maximum extent permitted under applicable
law, characterize any non-principal payment as an expense, fee or premium, rather than as interest. Any provision hereof or of
any other agreement between the parties hereto that operates to bind, obligate, or compel Mortgagor to pay interest in excess of
such maximum rate, shall be construed to require the payment of the maximum rate only.

 

Section 4.6.   Counterparts. This
Mortgage may be executed in any number of counterparts and each shall be deemed to be an original. All such counterparts shall
constitute but one and the same instrument.

 

Section 4.7.   Successors and Assigns.
All provisions of this Mortgage shall be binding upon Mortgagor and its successors and assigns and shall inure to the benefit of
Mortgagee and its successors and assigns. This provision shall not in any way be deemed a waiver by Mortgagee of any Event of Default
provided for in this Mortgage. Mortgagee may assign all or any portion of this Loan or participate all or any portion of the Loan.

 

Section 4.8.   Indemnification.
Mortgagor shall indemnify, defend, and hold Mortgagee harmless of and from any claim (as well as from attorneys' reasonable fees
and expenses in connection therewith) brought or threatened against Mortgagee by Mortgagor, any Guarantor or endorser of the Note,
or any other person on account of the Mortgaged Property or on account of Mortgagee's relationship with Mortgagor or on account
of Mortgagee's relationship with any Guarantor or endorser of the Note. This indemnification shall survive payment of the Note
or termination, release or discharge executed by Mortgagee in favor of Mortgagor.

 

Section 4.9.   Headings. The headings
have been inserted for convenient reference and shall not define, limit or expand the express provisions of this Mortgage.

 

Section 4.10.   Governing Law. This
Mortgage shall be governed by the laws of the State of Connecticut .

 

    	25

    	 

    

 

 

Section 4.11 Waiver of Notices; Waiver
of Jury Trial. MORTGAGOR AGREES THAT THIS IS A COMMERCIAL TRANSACTION AND NOT A CONSUMER TRANSACTION, AND WAIVES ANY
RIGHT TO A NOTICE AND HEARING UNDER CHAPTER 903a OF THE CONNECTICUT GENERAL STATUTES, AS AMENDED, OR OTHER STATUTE OR STATUTES
AFFECTING PREJUDGMENT REMEDIES AND AUTHORIZES MORTGAGEE'S ATTORNEY TO ISSUE A WRIT FOR A PREJUDGMENT REMEDY WITHOUT COURT ORDER,
PROVIDED THE COMPLAINT SHALL SET FORTH A COPY OF THIS WAIVER. FURTHER, TO THE EXTENT ALLOWED UNDER APPLICABLE LAW, MORTGAGOR HEREBY
WAIVES DEMAND, PRESENTMENT FOR PAYMENT, PROTEST, NOTICE OF PROTEST, NOTICE OF DISHONOR, DILIGENCE IN COLLECTION, NOTICE OF NONPAYMENT
OF THIS MORTGAGE AND ANY AND ALL NOTICES OF A LIKE NATURE AND ALSO WAIVES TRIAL BY JURY.

 

Section 4.12.   Defeasance. The
condition of this Mortgage is such that whereas Mortgagor is indebted to Mortgagee in the outstanding principal amount evidenced
by the Note; therefore, if the principal, interest and all other sums which become due under the Note in accordance with this Mortgage
and the Note and any additional notes, including extensions or renewals thereof, which may be executed in accordance with the terms
of the Loan Documents and secured by this Mortgage are well and truly paid, and the provisions contained in the Note and all such
other notes are fully kept and performed, then this Mortgage shall become null and void; otherwise it shall remain in full force
and effect.

 

Section 4.13.   Incorporated Schedules.
Schedule A, Schedule B and Schedule C are hereby incorporated by reference in this Mortgage.

 

 

THE BALANCE OF THIS PAGE
IS INTENTIONALLY LEFT BLANK

SIGNATURE PAGES TO FOLLOW

 

    	26

    	 

    

 

IN
WITNESS WHEREOF, Mortgagor has caused this Mortgage to be executed under seal and delivered as of the date first above
written.

 

 

 

	 	NRFC CLINTON HOLDINGS, LLC,
	 	a Delaware limited liability company
	 	 	 	 	 	 	 	 
	 	By:	NORTHSTAR REALTY HEALTHCARE, LLC,
	 	 	a Delaware limited liability company
	 	 	 	 	 	 	 	 
	 	 	By:	NRFC HEALTHCARE HOLDING
	 	 	 	COMPANY, LLC,
	 	 	 	a Delaware limited liability company
	 	 	 	 	 	 	 	 
	 	 	 	By:	NRFC SUB-REIT CORP.,
	 	 	 	 	a Maryland corporation
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	/s/ Ronald J. Lieberman
	 	 	 	 	 	Name:  	Ronald J. Lieberman
	 	 	 	 	 	Title:	  Executive Vice President 
	 	 	 	 	 	 	& General
CounselExhibit 10.21

 

ASSIGNMENT
OF LEASES AND RENTS

 

 

THIS
ASSIGNMENT made as of this 3rd day of June, 2013 by NRFC CLINTON HOLDINGS, LLC, a Delaware
limited liability company with an address at c/o NorthStar Realty Finance, 399 Park Avenue, 18th floor, New York, New York 10022
Attn: Ronald J. Lieberman, Esq., Executive Vice President and General Counsel (“Mortgagor”), to WEBSTER BANK,
NATIONAL ASSOCIATION, a national bank having its principal place of business at 145 Bank Street, Waterbury, Connecticut (hereinafter
called “Mortgagee”).

 

WHEREAS,
Mortgagor is the present owner of the property described in Schedule “A” attached hereto (hereinafter
called the “Property”); and

 

WHEREAS,
Mortgagee holds or is about to become the holder of a mortgage dated as of the date hereof, executed by Mortgagor encumbering said
Property (the “Mortgage”), securing payment of a note to Lender from Mortgagor in the principal sum of
$7,875,000 (the “Note”) (the loan which is the subject of the Note is hereinafter referred to as the “Loan”);
and

 

WHEREAS, part
or all of said Property has been or will be leased pursuant to the lease identified in Schedule B; and

 

WHEREAS, Mortgagee,
as a condition of making the Loan, has required an assignment of said leases and the rentals from the Property to Mortgagee.

 

NOW THEREFORE,
in consideration of the making of said mortgage Loan and of the sum of One Dollar ($1.00) and other good and valuable consideration,
receipt of which is hereby acknowledged by Mortgagor,

 

1.          Assignment.
Subject to the provisions of this Assignment, to the extent permitted by applicable law, Mortgagor hereby assigns, transfers and
sets over to Mortgagee the lease or leases identified in Schedule “B” attached hereto, if any,
and whether or not so identified, any and all leases, rentals or occupancy agreements for the use and occupancy of any part or
all of said Property which are now in existence or which may exist at any time or times in the future during the term of this Assignment,
and any renewals or extensions thereof, whether or not recorded (all of which present and future leases, rentals and occupancy
agreements, whether or not identified in Schedule “B”, are made subject to this Assignment and are hereinafter
referred to and included in this agreement within the term “leases”), intending hereby to assign to Mortgagee
all of the Mortgagor’s interest in said leases, and to the extent permitted by applicable law, all rents, income and profits
arising therefrom. Mortgagor acknowledges and agrees that any and all lease termination payments
made by tenants identified in Schedule “B” attached hereto, and whether or not so identified, shall be
paid directly to Mortgagee by any tenant making such termination payment, and after an Event of Default that has not been waived
or cured with the written consent of the Mortgagee, such termination payments shall be applied by Mortgagee as provided in the
loan documents executed in connection herewith; otherwise, such termination payments shall be held by Mortgagee and applied to
pay brokerage commissions and tenant fit-up work for new tenants under leases approved by Mortgagee.

 

    	 

    	 

    

2.          Obligations
Secured. This Assignment is given as security for (a) payment of any and all indebtedness due Mortgagee which is secured
by the aforesaid Mortgage or as such indebtedness on said Mortgage may be modified (all of which are hereinafter referred to and
included within the term “Mortgage”); (b) payment of all other sums with interest thereon becoming due and payable
under the provisions hereof or under the provisions of the Mortgage, the Note (or any other note evidencing the Loan), the Commercial
Loan Agreement and the other loan documents of even date herewith (which Mortgage, Note, Commercial Loan Agreement and other loan
documents are individually and collectively referred to herein as the “Loan Documents”); and (c) performance
and discharge of any and all obligations, covenants, representations and agreements of Mortgagor contained herein and in the Mortgage,
the Note secured thereby, the Commercial Loan Agreement, the other Loan Documents and any other instrument evidencing or securing
the Loan.

 

3.          Representation
by Mortgagor. Mortgagor hereby represents, to the best of its knowledge, that, as to the lease identified
in Schedule “B”, as follows: (a) the lease is valid and enforceable; (b) the terms thereof
are as set forth in the copy of said lease delivered to Mortgagee; (c) to the best of the Mortgagor’s knowledge, except
as disclosed in an estoppel delivered to Mortgagee, neither landlord nor tenant under said lease are not in default in any respect
thereunder; (d) neither the lease nor any rents thereunder are subject to any assignment by Mortgagor other than to Mortgagee;
(e) other than as set forth in any such lease, no rent has been anticipated or prepaid by more than thirty (30) days prior
to due date or accrual; (f) other than as disclosed to Mortgagee, in writing, the tenant has claimed any defense, offset or
counterclaim affecting the payment of rent or performance of the tenant’s other obligations thereunder; and (g) Mortgagor
has good right and authority to assign the same to Mortgagee.

 

4.          Covenants
by Mortgagor. Mortgagor hereby covenants and agrees that, as to all present and future leases, it
will not, without Mortgagee’s prior written consent: (a) other than as contemplated within any such leases, accept any
prepayment of rent more than thirty (30) days prior to due date or accrual; (b) reduce the rent (except in connection with
an extension of the term of the applicable lease) or otherwise amend, modify or alter said lease in any material way; (c) surrender,
cancel or terminate the same; (d) pledge, mortgage or assign any lease or rent thereunder as security for any obligation;
(e) assign any lease or rent thereunder except in connection with a conveyance of said Property and then only if expressly
made subject to this Assignment; (f) knowingly violate or default in performance of any material provision thereof; (g) knowingly
consent to or permit any violation, default, cancellation, surrender, termination, abandonment, assignment or subletting of its
lease by any tenant (except as to any assignment or subletting which does not require Mortgagor’s consent or to which Mortgagor’s
consent is not required under the terms of the applicable lease).

 

5.          Additional
Covenants by Mortgagor. Mortgagor hereby covenants and agrees that as to all present and future leases,
it will: (a) deliver to Mortgagee executed or conformed copies of all leases or other instruments affecting said Property
on request by Mortgagee: (b) give prompt notice to Mortgagee of any material alleged default by either Mortgagor or tenant
under any lease, with a copy of any notice of alleged default given by either Mortgagor or tenant; (c) enforce, short of termination
of the lease, the performance of all obligations of the tenant, at Mortgagor’s expense.

 

6.          Rent Payment to Mortgagor.
So long as there has been no Event of Default (as defined in the Mortgage) in any payment or obligation secured hereby, Mortgagor
may receive, collect and enjoy the rents, income and
profits from said Property, but as a trust fund for payment of

    	2

    	 

    

the mortgage principal and interest, taxes, assessments, insurance
premiums, and maintenance and utility charges relating to said Property before using the same for any other purposes.

 

7.          Mortgagee’s Rights.
Upon or at any time after and during the continuance of an Event of Default, Mortgagee may, at its option, enter upon the Property,
collect and receive any and all rents or income therefrom, take possession of the Property, operate and manage the same, make repairs
and alterations and do all things that Mortgagor might do with respect to said Property, without limitation.

 

8.          Rent
Payment to Mortgagee. Upon and during the continuance of any Event of Default, written demand on any tenant by Mortgagee
for payment of rent to Mortgagee shall be sufficient warrant to said tenant to pay rent to Mortgagee without necessity for consent
by Mortgagor, or evidence of a default by Mortgagor, and Mortgagor hereby directs and requires all tenants on said Property to
honor this Assignment and comply with any such demand by Mortgagee until written notice by Mortgagee to the tenant to resume rent
payments to Mortgagor.

 

9.          Application of Rents.
Mortgagee may apply any rents received by it hereunder to the payment of (a) all proper expenses pertaining to the operation
and management of the Property, including, without limitation, taxes, assessments, liens, insurance premiums, repairs and alterations,
with interest, and (b) the obligations secured hereby and all costs and reasonable attorney’s fees, in such manner and
order of priority as Mortgagee may in its sole discretion determine, any law or custom to the contrary notwithstanding.

 

10.         Indemnity. Mortgagor
hereby indemnifies and agrees to save Mortgagee harmless from any liability or expense properly incurred by Mortgagee hereunder
or under any lease (excepting only any liability or expense resulting directly from Mortgagor’s gross negligence or willful
misconduct), and agrees to reimburse Mortgagee for any such expense, with interest, on demand.

 

11.         Effect. Any action
by Mortgagee hereunder shall not constitute a waiver of or be deemed to cure any default by Mortgagor under any note, mortgage
or other instrument, and shall not affect or prejudice any other rights or remedies of Mortgagee, which may be exercised by Mortgagee
prior to, concurrently with or subsequent to action hereunder; and any action by Mortgagee under any note, mortgage or other instrument,
or the release of any party liable thereunder, or any extension or indulgence with respect thereto, shall not affect or prejudice
Mortgagee’s rights hereunder. Nothing herein or action by Mortgagee hereunder shall diminish Mortgagor’s obligations
under any lease or impose any obligation upon Mortgagee with respect thereto.

 

12.         Assignment by Mortgagee;
Foreclosure. Mortgagee may assign the Mortgagor’s interest in said leases to any subsequent holder of said mortgage
or to any party who acquires title to said Property in foreclosure. No assignee of the Mortgagee’s interest in said leases
after a foreclosure of said mortgage shall be liable to account to Mortgagor for any rents or income thereafter accruing.

 

13.         Default. Any default
by Mortgagor hereunder not cured within any applicable grace period, or any breach or violation of any representation or covenant
herein, shall, if not cured within thirty (30) days after notice thereof
shall have been given to Mortgagor, at the option of Mortgagee constitute an Event of Default under the Commercial Loan Agreement
by and among the Mortgagor, the Mortgagee and other parties thereto of even date herewith and under the Mortgage,

    	3

    	 

    

as if the provisions
hereof were fully set forth in said Commercial Loan Agreement and said Mortgage, entitling Mortgagee to all rights and remedies
therein contained.

 

14.         Termination. This
Agreement shall continue in full force and effect until full payment of all indebtedness secured hereby, as evidenced by the recording
of a full release of the Mortgage without the recording on the same date of another mortgage securing the Loan or a modification
or amendment thereto to Mortgagee affecting said Property, at which time this Assignment shall terminate and be void and of no
effect without necessity for any further instrument.

 

15.          Succession. This
Assignment is binding upon Mortgagor and any subsequent owner of said Property or any part thereof, and is binding upon and inures
to the benefit of Mortgagee, its successors and assigns, and any subsequent holder of said Mortgage.

 

 

THE
BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK

SIGNATURE PAGES TO FOLLOW

 

 

    	4

    	 

    

IN
WITNESS WHEREOF, Mortgagor has caused this Assignment to be executed, sealed and delivered the day and year first above
written.

 

Signed, Sealed and Delivered

in
the Presence of

 

	 	 	NRFC CLINTON HOLDINGS, LLC
	 	 	a Delaware limited liability company
	 	 	 	 	 	 	 	 
	 	 	By:	NORTHSTAR REALTY HEALTHCARE,
LLC,
	 	 	 	a Delaware limited liability company
	 	 	 	 	 	 	 	 
	 	 	 	By:	NRFC HEALTHCARE HOLDING
	 	 	 	 	COMPANY, LLC,
	 	 	 	 	a Delaware limited liability company
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	NRFC SUB-REIT CORP.,
	 	 	 	 	 	a Maryland corporation
	 	 	 	 	 	 	 	 
	 	 	 	 	 	By:	/s/ Ronald J. Lieberman
	 	 	 	 	 	 	Executive Vice President,
	 	 	 	 	 	 	General Counsel and
	 	 	 	 	 	 	Secretary

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